3.2 Budgeted Financial Statements The agency resource statement 1.1) provides a consolidated view of the resources available to the office in 2014-15. This includes equity injections (provided as Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14. 3.2.2 Analysis of Budgeted Financial Statements Departmental Income Statement The OCO is budgeting for a operating result after adjustments for unfunded depreciation and amortisation expense in 2014-15 and the forward years. Revenue from government (appropriation funding) has decreased from $18.0 million in 2013-14 to $17.2 million in 2014-15. This reduction is the combined effect of targeted savings and changes in price and wage indices and the impact of the increased efficiency dividend. Supplier and employee expenses will reduce in line with the reduced appropriation consistent with government policy to reduce spending on items such as travel, advertising and printing and the implementation of more efficient management structures. Balance Sheet The OCO’s budgeted net asset position at 30 June 2015 will be $4.8 million (2013–14: $4.7 million). The main payables and provisions are expected to remain at around the current levels with the primary liability continuing to be accrued employee entitlements. Statement of Changes in Equity The statement of changes in equity shows the expected movements in equity over the 2014–15 year. The retained earnings portion of equity will reduce as a result of the net cash appropriations not providing revenue to fund the depreciation expense. This is offset by an increase in contributed equity where the funding for the OCO’s departmental capital budget is recorded.
3.2 Budgeted Financial Statements The agency resource statement 1.1) provides a consolidated view of the resources available to the office in 2014-15. This includes equity injections (provided as Departmental Capital Budget) and appropriations receivable. The Comprehensive Income Statement (Table 3.2.1) shows only the operating appropriation provided in 2013-14. 3.2.2 Analysis of Budgeted Financial Statements Departmental Income Statement The OCO is budgeting for a operating result after adjustments for unfunded depreciation and amortisation expense in 2014-15 and the forward years. Revenue from government (appropriation funding) has decreased from $18.0 million in 2013-14 to $17.2 million in 2014-15. This reduction is the combined effect of targeted savings and changes in price and wage indices and the impact of the increased efficiency dividend. Supplier and employee expenses will reduce in line with the reduced appropriation consistent with government policy to reduce spending on items such as travel, advertising and printing and the implementation of more efficient management structures. Balance Sheet The OCO’s budgeted net asset position at 30 June 2015 will be $4.8 million (2013–14: $4.7 million). The main payables and provisions are expected to remain at around the current levels with the primary liability continuing to be accrued employee entitlements. Statement of Changes in Equity The statement of changes in equity shows the expected movements in equity over the 2014–15 year. The retained earnings portion of equity will reduce as a result of the net cash appropriations not providing revenue to fund the depreciation expense. This is offset by an increase in contributed equity where the funding for the OCO’s departmental capital budget is recorded.