10 December 2010
TREASURY PORTFOLIO AGENCY FINANCIAL MANAGEMENT REPORT – October 2010
Recommendation/s
That the Board note the financial performance of Treasury portfolio agencies for October 2010.	

Key Points
[This section is removed under section 47E(d)]

•	The Australian Prudential Regulation Authority (APRA) is budgeting for an operating deficit in 2010-11.  The operating deficit has been approved by the Finance Minister.
•	The Inspector General of Taxation has sought approval to budget for an operating loss of $0.5m in 2010-11.  As yet, this loss has not been approved.
•	All other agencies are budgeting for a break even operating result or an operating surplus in 2010-11.
•	There are no other significant issues with the October 2010 financial performance of Treasury portfolio agencies.

Chief Financial Officer		

Distribution: Executive Board and SES
Financial implications: nil
Consultation: Treasury portfolio agencies
Timing: n/a
Communication strategy: n/a

Australian Bureau of Statistics (ABS)

Comments:
The ABS has an operating surplus of $10.6 million at 31 October 2010.  This is mainly due to the ABS recognising appropriation revenue equally each month.  However, their expenses will be significantly greater in the second half of 2010-11 due to the ramp up towards the 2011 Census.
The ABS has an underspend in capital expenditure of $3.4 million which is due to a timing variance only.
.

Australian Competition and Consumer Commission (ACCC)

Comments:
There are no issues of concern.

Australian Office of Financial Management (AOFM)

Comments:
The AOFM has an operating surplus of $0.8 million at 31 October 2010.
Actual expenses are $0.7 million less than budget.

•	Employee expenses are less than budget due to lower than planned staffing levels.  The AOFM has recently recruited several officers with most commencing in January 2011.
•	Supplier expenses are less than budget due to lower than expected syndication fees for the issuance of Treasury Indexed Bonds.  The AOFM in its budget made an allowance for fees on an issuance of up to $3 billion of Treasury Indexed Bonds.  The AOFM issued $1.25 billion in September 2010.

Australian Prudential Regulation Authority (APRA)

Comments:
APRA has approval to budget for an operating deficit of $11.5 million in 2010-11, which relates to changes in the expenditure profile of their global financial crisis funding..

Australian Securities and Investments Commission (ASIC)

Comments:
[This section is removed under section 47E(d)]

Australian Taxation Office (ATO)

Comments:
The ATO has an operating surplus of $32.6 million which is greater than the budgeted surplus by $16.0 million.  The underspend is due to delays in recruitment processes.  The ATO expects to finish 2010-11 in line with budget.
The ATO has an underspend in capital of $6.6 million.  The ATO intends to seek approval to move surplus capital budget funding from 2010-11 into 2011-12. 

Corporations and Markets Advisory Committee (CAMAC)

Comments:
There are no issues of concern.

Commonwealth Grants Commission (CGC)

Comments:
In 2010-11 the CGC’s funding has reduced from $7.3 million to $5.3 million due to supplementary terms of reference funding terminating in 2009-10.

[This section is redacted under section 47E(d)]

Inspector General of Taxation (IGT)

Comments:

•	The Inspector General of Taxation has sought approval to budget for an operating loss of $0.5m in 2010-11.  As yet, this loss has not been approved, but the YTD position is a small surplus.

National Competition Council (NCC)

Comments:
There are no issues of concern at this stage.

Office of the Auditing and Assurance Standards Board (AUASB)

Comments:
There are no issues of concern at this stage.
The AUASB has an actual operating surplus of $1.3 million at 31 October 2010.  This is due to the AUASB recognising their full 2010-11 appropriation in their October financial results.

Office of the Australian Accounting Standards Board (AASB)

Comments:
There are no issues of concern at this stage.
The AASB has an actual operating surplus of $2.8 million at 31 October 2010.  This is due to the AASB recognising their full 2010-11 appropriation in their October financial results.

Productivity Commission (PC)

Comments:
The PC has an actual operating surplus of $0.9 million at 31 October 2010.
The PC expects to incur additional expenses in the second half of 2010-11 relating to the study into emissions reduction policies in key economies, for which they received additional funding in the 2010-11 MYEFO.
The PC has an underspend in capital expenditure which is due to a timing issue.  Capital expenditure associated with the Melbourne office relocation will be incurred in the new year .

Royal Australian Mint (RAM)

Comments:
There are no significant issues of concern at this stage.