CHAPTER 10 | accountability and management

Corporate Management

Financial performance

Revenue from ordinary activities was $10.520 million in 2003–04.

The office received $9.462 million in direct revenue from departmental appropriation, amounting to $0.995 million more than that received in 2002–03. The additional revenue was provided to increase the office's capacity to handle law enforcement complaints and complex investigations.

Total expenses for the office were $10.563 million, leading to a deficit in 2003–04 of $0.043 million, primarily due to a write-down of the complaints management system.

Financial position

The office's total equity—that is, the sum of the office's assets less its liabilities—increased by $0.387 million due mainly to an equity injection in the 2003–04 year.

Assets may be broken down into four main categories:

• cash
• infrastructure, plant and equipment
• intangibles (non-physical assets such as software)
• receivables (amounts due to be paid to the office).

'Other non-financial assets' relates to prepayments.

The office's total assets increased to $3.731 million in 2003–04 from $2.193 million in 2002–03. The increase in financial assets arose from accumulated cash reserves. The proportion of each type of asset held during 2003–04 is set out in Figure 10.1.

Financial assets

The Statement of Financial Position shows cash holdings of $2.477 million. This compares with the $1.051 million held in 2002–03. The increase in cash holding is primarily due to:

• putting aside cash at year end to meet current obligations, employee entitlements and the replacement of infrastructure, plant and equipment, and intangibles
• the equity injection
• timing differences.

Non-financial assets

The office's non-financial assets decreased to $0.870 million in 2003–04 from $1.017 million in 2002–03, primarily due to the write-down of intangibles.

Liabilities

Total liabilities increased by $1.151 million to $3.477 million in 2003–04 compared to $2.327 million in 2002–03. The major increase related to employee entitlements and creditors.

Factors affecting future performance

In the 2004–05 Budget, the government provided additional funding of $7.061 million over four years to establish new roles for the office, for expanded delivery of Ombudsman services in regional and remote areas, for improved oversight of surveillance devices, and as partial funding of Comcover premiums.

Cash held will be used largely for implementing a new complaints management system and related electronic data management, as well as for replacing aged desktop information technology equipment.

Consulting and contracting services

The Ombudsman's office is committed to achieving the best value for money in its procurement practices. Purchasing practices and procedures are consistent with the Commonwealth Procurement Guidelines and are set out in the Ombudsman's Chief Executive Instructions.

There were nine consultancy service contracts let during 2003–04 with a value of $10,000 or more. The total expenditure on these consultancy contracts was $278,565. Services included provision of two client satisfaction surveys, investigation of decisions under the Freedom of Information Act 1982, and a risk assessment of occupational health and safety within the office. Details are available at www.ombudsman.gov.au.