Defence Materiel Organisation
Notes to and forming part of the Financial Statements
for the period ended 30 June 2008

Note 19: Reporting of Outcomes

Note 19A: Net Cost of Outcome Delivery

  Outcome 1 Total
  2008 2007 2008 2007
  $'000 $'000 $'000 $'000
Departmental 8,441,480 8,088,872 8,441,480 8,088,872
Total expenses 8,441,480 8,088,872 8,441,480 8,088,872
Costs recovered from provision of goods and services to the non Government sector        
Departmental 101,642 100,567 101,642 100,567
Total costs recovered 101,642 100,567 101,642 100,567
Other external revenues        
Departmental        
Goods and services income from related entities 8,249,525 7,938,588 8,249,525 7,938,588
Other - 157 - 157
Total Departmental 8,249,525 7,938,745 8,249,525 7,938,745
Total other external revenues 8,249,525 7,938,745 8,249,525 7,938,745
Net cost/(contribution) of outcome 90,313 49,560 90,313 49,560
Note 19B: Major Classes of Departmental Income and Expenses by Output Group- Outcome 1

  Output 1.1 Output 1.2 Output 1.3 Outcome 1 Total
  2008 2007 2008 2007 2008 2007 2008 2007
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Departmental expenses                
Employees 300,368 211,499 133,410 172,062 25,214 25,701 458,992 409,262
Suppliers 3,635,678 3,749,446 4,305,974 3,896,127 35,114 23,727 7,976,766 7,669,300
Depreciation and amortisation - - 4,936 6,954 27 10 4,963 6,964
Other - - 759 3,368 - (22) 759 3,346
Total departmental expenses 3,936,046 3,960,945 4,445,079 4,078,511 60,355 49,416 8,441,480 8,088,872
Departmental Income                
Revenues from government - - - - 93,256 46,120 93,256 46,120
Sale of goods and services 3,908,116 3,939,744 4,352,925 3,998,786 1,877 58 8,262,918 7,938,588
Other revenues - - 75,322 88,080 1,120 411 76,442 88,491
Other gains 27,930 21,201 16,462 21,710 7,053 6,843 51,445 49,754
Total departmental income 3,936,046 3,960,945 4,444,709 4,108,576 103,306 53,432 8,484,061 8,122,953

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

The only shared element within the output structure relates to resources received free of charge from Defence ($37.238m). This element has been attributed directly to Output 3 in accordance with advice from Defence and to Outputs 1 and 2 in accordance with the Service Fee charged by DMO.