ATTACHMENT D: Management Discussion & Analysis (Territorial) 2020-21

Statement of Income and Expenses on Behalf of the Territory

The Management Discussion and Analysis is based on the Territorial audited annual financial statements for 2019-20 and 2020-21 and 2020-21 Budget.

Total Income

Components of Income

Figure 5: Sources of Territorial Income identifies major components of income for 2020-21. Total income was $208.9m, comprising payments for expenses on behalf of the Territory of $200.4m, fees and fines of $6.1m and other revenue of $2.5m.

Figure 5: Sources of Territorial Income

Comparison to Original Budget

Territorial income for 2020-21 totalled $208.9m and was $5.1m, or 2.4% lower than the 2020-21 original budget of $214.0m. This is mainly due to lower Payment for Expenses on behalf of Territory (EBT) ($4.5m) associated with $4.1m transfer of funding from 2020-21 to 2021-22 year relating to delays in delivery of various ACT Policing initiatives ($1.8m) including Boosting Police for a Growing City ($0.5m), COVID-19 Public Health Response ($0.4m), Strategic Accommodation for ACT Policing Feasibility Study ($0.4m); and longer than expected lease negotiations associated with the Relocation of ACT Policing’s Traffic Operations Centre ($0.4m). In addition, there was lower than anticipated activity under the Implementing the Commonwealth Redress Scheme for Institutional Child and Sexual Abuse initiative ($1.6m), transfer of $0.7m for gaming machines initiatives to align payments with actual deliverables in early 2021-22; and $1.5m savings from the Gaming machine authorisation surrender incentive. Under the COVID-19 Economic Survival Package, gaming machine licensees could access $15,000 cash payments per surrendered gaming machine authorisation. The incentive finished on 30 June 2021 with unspent funding not drawn down.

This decrease in EBT is partially offset by additional appropriation ($1.1m) provided to meet increased demand for the Victims of Crime Financial Assistance Scheme payments.

In addition, lower Court-imposed fees, fines and levies ($0.4m) and insurance recovery ($0.2m) also contributed to the total income being lower than the original budget.

 

Comparison to 2019-20 Income

Territorial income of $208.9m for 2020-21 was $8.8m, or 4.4% higher than 2019-20, which is predominantly due to higher Payments for Expenses on behalf of the Territory mainly relating to new budget initiatives ($6.7m) such as COVID-19 Public Health Response; Gaming Machine Authorisation Surrender Incentive; Police, Ambulance and Clinician Early Response (PACER) and other initiatives. Also, there was additional funding transferred from the prior year’s ACT Policing initiatives ($2.8m), partially offset by lower Other Revenue mainly relating to clubs contribution to Diversification and Sustainability Support Fund (DSSF) not being required in 2020-21 due to COVID- 19 ($0.9m).

 

Total Expenses

Components of Expenses

Figure 6: Sources of Territorial Expenses identifies major components of actual expenses for 2020-21. Total expenses were $211.5m, comprising Supplies and Services ($187.8m), Transfers to Government ($8.6m), Grants to racing industry ($7.7m), Subsidies to clubs ($2.7m), Depreciation ($3.1m), Employee expenses ($1.2m) and other expenses ($0.5m).

Figure 6: Sources of Territorial Expenses

Comparison to Original Budget

Total expenses in 2020-21 were $211.5m, which is $5.7m, or 2.6% lower than the original

2020-21 budget of $217.2m. This was mainly due to lower expenses associated with the transfer of funding from 2020-21 to 2021-22 year relating to delays in delivery of various ACT Policing initiatives ($1.8m), lower than anticipated activity under the Implementing the Commonwealth Redress Scheme for Institutional Child and Sexual Abuse initiative ($1.6m), transfer of $0.7m for gaming machines initiatives to align payments with actual deliverables in early 2021-22 year; and $1.5m savings from the Gaming machine authorisation surrender incentive.

 

Comparison to 2019-20 Expenses

Total 2020-21 expenses of $211.5m were $8.0m, or 3.9% higher than in 2019-20. This was predominately due to higher ACT Policing payments for the ACT Police Service Model; COVID-19 Public Health Response; Police, Ambulance and Clinician Early Response (PACER); partially offset by lower victims of crime payments.