Australian Institute of Criminology

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Financial performance

Overview

The appropriation efficiency measures experienced by the AIC over the past few years resulted in a number of changes to the delivery of outcomes in 2013–14. These included:

  • a significant restructure of the DUMA program and reductions in the amount of data collected; and
  • a review of the Research Program structure, including the expertise and skillsets required within the research teams, along with a realignment of research priorities across these teams.

In accordance with the Commonwealth Government’s net cash appropriation arrangements, the AIC’s operating result for 2013–14 was a deficit of $294,777 (2012–13: deficit of $300,662) against a revised budget deficit position of $305,000 published in the AIC’s Portfolio Budget Statements 2014–15. This deficit position includes depreciation expenses of $98,854 (2012–13: $93,893). The operating loss is covered in full by the AIC’s cash reserves.

In 2012–13, the AIC sought and received approval by the Finance Minister to extend the amount of the AICs operating loss in excess of depreciation. The additional loss position was approved and covered five financial years to 2016–17 to allow the expenditure of cash reserves tied to the CRG program. For 2013–14, an additional $200,000 operating loss was approved.

See Table 12 for a summary of budgeted and actual expenses for 2013–14.

Operating revenue

The total operating revenue was $8,840,974 (2012–13: $8,375,126) and comprised:

  • government appropriations of $5,355,000;
  • sale of goods and rendering of services of $2,274,651;
  • royalties of $56,429; and
  • other revenue of $1,116,894.

Revenue from government appropriations increased by a net amount of $44,000 (less than 1%) from 2012–13. The increase is the net effect of appropriation indexation and a series of efficiency dividends over prior years.

Revenues from the rendering of services increased by $711,918 from 2012–13. The increase was due to an increase in fee-for-service research projects at both Commonwealth and state/territory levels, along with increased income levels associated with the AIC running three large-scale external conferences during the year (the scale and number of conference events vary from year to year).

Operating expenditure

The total operating expense was $9,135,751 (2012–13: $8,675,788) and comprised:

  • employee costs of $4,899,792;
  • supplier expenses of $2,892,341;
  • grants expenses of $1,244,764; and
  • depreciation and amortisation of $98,854.
Table 12: 2013–14 income statement budget, and actual and 2014–15 income statement budget
2013–14 2013–14 Variation 2014–15
Budget Actual (column 2–column 1) Budget
$’000 $’000 $’000 $’000
Expenses
Employee benefits 4,634 4,900 266 5,146
Supplier expenses 2,368 2,892 524 2,606
Grants 1,100 1,245 145 1,300
Depreciation and amortisation 105 99 (6) 105
Total expenses 8,207 9,136 929 9,157
Income
Own-source revenue
Sale of goods and rendering of services 1,800 2,275 475 2,211
Royalties 40 56 16 50
Other 707 1,117 410 1,230
Total own-source revenue 2,547 3,448 901 3,491
Gains
Other - 38 (38) 37
Total gains - 38 (38) 37
Total own-source income 2,547 3,486 939 3,528
Net cost of services 5,660 5,650 (10) 5,629
Revenue from government 5,355 5,355 - 5,324
Surplus (deficit) attributable to the Commonwelath Government (305) (295) (10) (305)

Employee expenditure decreased by $105,109 from 2012–13 as a result of a decline in average staffing level (ASL) and a change in the mix of staff. ASL decreased to 45.26 in 2013–14 (2012–13: 48.5) as a result of staff reductions in the second half of 2012–13 to meet a lower funding position. This was subsequently affected by delayed recruitment processes in 2013–14 as a result of the Commonwealth Government’s introduction of recruitment restrictions in October 2013.

The AIC staffing level subsequently increased to 49.87 ASL as at 30 June 2014 as a result of the need to recruit staff to manage increased fee-for-service contracted research, but is budgeted to settle around 47 ASL throughout 2014–15. This level of staffing is expected to be maintained through fee-for-service research project work, complementing the AIC’s appropriation funding research and dissemination priorities.

Supplier expenses increased by $696,196 from 2012–13 as a result of increases in contractor and travel expenditure associated with fee-for-service research projects. The increase in expenditure was also significantly impacted by the level of conference expenses for the year associated with the AIC running three large-scale external conferences during the year.

There was also a decrease in grants expenditure of $126,208 from 2012–13, which was more a result of timing than any change to the size of the grant programs.

Balance sheet

Net asset position

The net asset position at 30 June 2014 was $2,096,512 (2012–13: $2,367,289).

Total assets

Total assets as at 30 June 2014 were $6,063,712 (2012–13: $5,989,173). The small increase in assets was due primarily to an increase in trade and other receivables.

Total liabilities

Total liabilities at 30 June 2014 were $3,967,200 (2012–13: $3,621,884). The difference is due to increases in the level of suppliers payable and unearned income recognised under the AIC’s secretariat contracts. Major liabilities include prepayments received/unearned income of $2,269,501 and employee provisions of $928,913.

For detailed analysis, please refer to AIC Financial Statements.