This section provides an overview of the ARC’s financial performance during 2017–18 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 Australian National Audit Office unqualified audit opinion for the statements
- a statement from the CEO and Acting Chief Financial Officer that the statements comply with the PGPA Act.
The ARC Resource Statement is presented in Appendix 4, Table A3, followed by the ARC Expenses by Outcome table, Table A4.
The ARC’s total appropriated resources for 2017–18 were $789.7 million. This comprised:
- $764.6 million for the administered appropriation ($758.1 million special appropriation for the NCGP and $6.5 million for the annual administered appropriation)
- $25.1 million for the departmental appropriation ($23.2 million for operating expenses, $1.2 million for the Departmental Capital Budget and $0.7 million for an equity injection).
Departmental activities include assets, liabilities, revenues and expenses that the ARC controls directly and uses to produce outcomes on behalf of the Australian Government.
Figure 7 outlines the ARC’s departmental financial performance over the past five years and the current budget for 2018–19. Expenditure and Government revenue was consistent over the 2012–13 to 2014–15 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 NISA.
For 2017–18 the ARC recorded an operating deficit of $1.4 million. If the depreciation and amortisation expenditure is excluded to account for the net cash arrangements, this results in a $2.2 million surplus. This is mainly attributable to the $2 million received from the Department of Defence for the administration of the PFAS Remediation Research Program.
Administered activities include assets, liabilities, revenues and expenses that are managed by the ARC on behalf of the Australian Government, which includes grants and supplier costs.
Figure 8 outlines the ARC’s administered financial expenditure over the past five years and the budget for 2018–19. The expenditure fluctuates from year to year and reflects the Government’s priorities and also the timing of when expenditure has been recognised.