3.2 FINANCIAL PERFORMANCE

This section provides an overview of the ARC's financial performance during 2018–19 for both departmental and administered activities. It should be read in conjunction with the information on financial performance provided in Part 5, which includes:

  • the ARC's financial statements
  • the ANAO unqualified audit opinion for the statements
  • a statement from the CEO and Chief Financial Officer that the statements comply with the PGPA Act.

The ARC Resource Statement is presented in Appendix 4, Table A4, followed by the ARC Expenses for Outcome 1 table, Table A5.

The ARC's total appropriated resources for 2018–19 were $796.7 million. This comprised:

  • $774.0 million for the administered appropriation ($766.4 million special appropriation, including the special account, for the NCGP and $7.6 million for the annual administered appropriation)
  • $22.7 million for the departmental appropriation ($21.5 million for operating expenses and $1.2 million for the Departmental Capital Budget).

Departmental activities include assets, liabilities, revenues and expenses that the ARC controls directly and uses to produce outcomes on behalf of the Australian Government.

For 2018–19 the ARC recorded an operating deficit of $2.3 million compared to the original budget position of $3.1 million. If the depreciation and amortisation expenditure is excluded to account for the net cash arrangements, this results in a $1.0 million surplus (original budgeted position was $0).

Figure 7 outlines the ARC's departmental financial performance over the past five years and the current budget for 2019–20. Expenditure and Government revenue were consistent over the 2014–15 to 2018–19 financial years. The increase in 2015–16 and 2016–17 expenditure mainly reflected the 2015–16 Mid-Year Economic and Fiscal Outlook measures relating to the National Innovation and Science Agenda. The increase in 2017–18 income reflected funding received for the administration of the PFAS Remediation Research Program.

Figure 7: Departmental financial performance, 2014–15 to 2019–20

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Administered activities include assets, liabilities, revenues and expenses that are managed by the ARC on behalf of the Australian Government, including grants and supplier costs.

Figure 8 outlines the ARC's administered financial expenditure over the past five years and the budget for 2019–20. The expenditure fluctuates from year to year and reflects the Government's priorities and also the timing of when expenditure has been recognised.

Figure 8: Administered financial performance, 2014–15 to 2019–20

partnered in the development of guides supporting the implementation of the Australian Code for the Responsible Conduct of Research.