Output Six: Intelligence
Price to Government
| Adjusted Budget Estimate | Revised Estimate | Projected Result | Actual Result | Variation | |
|---|---|---|---|---|---|
| 2002-03 | 2002-03 | 2002-03 | 2002-03 | ||
| $'000 | $'000 | $'000 | $'000 | $'000 | |
| Operating Expenses | |||||
| Employees - Military | 46,953 | 47,730 | 35,238 | 42,566 | 7,328 |
| Employees - Civilian | 107,742 | 121,262 | 125,222 | 124,532 | -690 |
| Sub-total Employees | 154,695 | 168,993 | 160,460 | 167,098 | 6,638 |
| Suppliers - Non-inventory | 120,490 | 125,461 | 110,932 | 100,193 | -10,739 |
| Suppliers - Inventory | 169 | 466 | 445 | 794 | 349 |
| Sub-total Suppliers | 120,659 | 125,927 | 111,377 | 100,987 | -10,390 |
| Depreciation and amortisation | 51,386 | 41,382 | 79,966 | 40,177 | -39,790 |
| Value of assets sold | - | - | - | 5,849 | 5,849 |
| Write down of assets (includes net losses on sale of assets and net foreign exchange losses) | -860 | 1,565 | 1,932 | 8,616 | 6,684 |
| Other expenses (includes borrowing cost expense and grants) | 249 | 339 | 390 | 9,868 | 9,478 |
| Total Operating Expenses From Ordinary Activities | 326,129 | 338,207 | 354,125 | 332,595 | -21,530 |
| Revenues | |||||
| Assets now recognised | 345 | -3,172 | -3,423 | -4,179 | -756 |
| Revenue from sale of assets | - | -185 | - | -5,825 | -5,825 |
| Other revenues | -3,506 | -3,610 | -8,393 | -5,607 | 2,786 |
| Total Own Source Revenues | -3,161 | -6,967 | -11,816 | -15,611 | -3,795 |
| Price to Government for Output Six | 322,968 | 331,240 | 342,309 | 316,984 | -25,325 |
Explanation Of Significant Variation
The overall price of Output Six was $25m lower than the 2002-03 projected result, representing a decrease of seven per cent. The variations were due to:
- an increase in military employee expenses (+$7m) which reflects an underestimation of the per capita rates which have been corrected in future years;
- a decrease in suppliers non-inventory expenses (-$11m) due to:
- accounting adjustments due to a correction of data reported in 2001-02 (-$20m);
- an increase in attributed costs for major capital equipment projects (+$5m);
- a revision to the budgeted requirement for intelligence activities (+$5m); and
- other minor variations due to departmental attributions and attribution rule changes (-$1m);
- a net reduction in depreciation expenses (-$40m) due to a refinement of attribution rules to reflect a move from a generic rule to a more output-specific attribution of costs;
- an increase in the value of assets sold (+$6m) due to the Minister for Finance's new requirement in 2002-03 for Defence to separately disclose the value of both the assets sold and the revenue proceeds;
- a net increase in write down of assets expenses (+$7m) due to adjustments in asset-under-construction accounts to reflect the true position of those accounts;
- an increase in other expenses (+$9m) due to recognition of Defence's potential liability for compensation claims arising from asbestos exposure that was identified in a recent whole-of-government actuarial report;
- an increase in revenue from sale of assets (-$6m) due to the Minister for Finance's new requirement in 2002-03 for Defence to separately disclose the value of both the assets sold and the revenue proceeds; and
- a decrease in other revenue (+$3m) due to other net variations including attributed revenue from other agencies.