Report on financial performance

Departmental operating result

The department demonstrated strong financial performance in 2014–15. The financial statements reported an operating deficit of $106.9 million, including depreciation and amortisation expenses of $147.5 million.

Revenue

The department reported $1428.5 million of revenue in the Statement of Comprehensive Income, comprised of:

$1304.0 million of appropriation revenue from government; and
$124.5 million of own source income including gains.

This represents a decrease of $8 million over 2013–14. The main factors contributing to this movement were a decrease in appropriation revenue from realising efficiencies offset by foreign exchange gains on overseas bank accounts.

The department also reported $473.7 million of other comprehensive income arising from asset revaluation movements in the Statement of Financial Position. This is recorded directly as equity and is not incorporated into the departmental operating result.

Expenses

The department reported $1535.4 million of expenses in the Statement of Comprehensive Income. This represents an increase of $6.3 million over 2013–14.

The main factors contributing to the movement in 2014–15 were:

the impact of the decrease in the value of the Australian dollar, particularly for contracts denominated in US dollars; and
writedown and impairments of assets after a review of asset holdings including Assets Under Construction.

Horizontal area graph showing departmental expenses 2014–15 — **Figure 38:** Departmental expenses, 2014–15

Assets and liabilities

The department reported a strong net asset position of $3728.1 million in the Statement of Financial Position, with liabilities equating to only 10 per cent of the total asset base.

This is an increase of $434.3 million over 2013–14. The main factor contributing to the movement in 2014–15 was the significant increase in the value of Land and Buildings upon revaluation.

Administered program performance

The aid program continued its focus on promoting economic growth, reducing poverty and lifting living standards in the Indo–Pacific region, providing predictability to partner governments and organisations. Program changes were implemented in consultation with partners.

The department’s 2014–15 administered revenues were $897.3 million, which is $381.9 million greater than 2013–14. The movement is due predominantly to increases in passport revenue and gains from the changes in valuation at year end for International Development Association and Asian Development Fund subscriptions.

The department’s 2014–15 administered expenses were $4807.2 million, an increase of $144.9 million over 2013–14. The majority of this was due to increases in international development assistance expenses, offset by a reduction in the loss in measuring financial liabilities at fair value.