Revenue received from ordinary activities was $12.762 million in 2004–05.
The office received $11.480 million in appropriation revenue, amounting to $2 million more than received in 2003–04. The additional revenue was provided to strengthen the Ombudsman's capacity to:
Total expenses for the office were $12.342 million leading to a surplus in 2004–05 of $0.420 million, primarily due to the delays involved in the development of additional activities above.
The office's total equity—that is, sum of the office's assets less its liabilities—has increased by $0.519 million, due mainly to a surplus in the 2004–05 year and an increase in the asset revaluation reserve.
Assets may be broken down into four main categories:
'Other non-financial assets' relate to prepayments.
The office's total assets increased to $3.965 million in 2004–05 from $3.731 million in 2003–04. The increases arose primarily from the implementation of a new complaints management system and related electronic data management, and the replacement of aged desktop information technology equipment (Infrastructure, Plant and Equipment). The proportion of each type of asset held during 2004–05 is set out in Figure 9.1.
The Statement of Financial Position shows cash holdings of $2.157 million. This compares with the $2.477 million held in 2003–04. The decrease in cash holding is primarily due to purchases of Infrastructure, Plant and Equipment. The office also drew on its Appropriation Receivable to fund these purchases.
The office's non-financial assets increased to $1.668 million in 2004–05 from $0.870 million in 2003–04, primarily due to purchases of Infrastructure, Plant and Equipment. The purchases were for implementing a new complaints management system and related electronic data management, and replacing aged desktop information technology equipment.
Total liabilities decreased by $0.285 million, to $3.193 million in 2004–05 compared to $3.477 million in 2003–04. The decrease in liabilities was primarily due to a reduction in employee accruals and creditors.
Factors affecting future performance
In the 2005–06 Budget, we received additional funding of $0.770 million over four years to:
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. The main categories of contracts relate to information technology, financial services, human resources services, and policy, governance and legal advice.
During 2004–05, five new consultancy contracts with a value of $10,000 or more were entered into to the value of $145,936. Of this amount, $122,009 was actually expended in the reporting year. In addition, one ongoing consultancy contract was active in 2004–05, involving total actual expenditure of $990. (The total expenditure of this consultancy was $26,464.) See Appendix 4 for details of new consultancy contracts. (Details are also available at www.ombudsman.gov.au.)
Total actual expenditure for new and existing consultancies in 2003–04 was $278,565 (nine new consultancies) and in 2002–03 was $98,562 (two new consultancies).
Competitive tendering and contracting
In 2004–05, we continued to outsource activities relating to the provision of financial services and payroll and recruitment services as follows:
Contracts with DuesburysNexia and Rel Corp Management provide for the Auditor-General to have access to a contractor's premises.