19 Explanation of Major Variances
Statement of Comprehensive Income
The following major variations occurred in the Statement of Comprehensive Income between the 2011/12 Actuals and 2010/11 Actuals:
- The establishment of the Mixed Ownership Model in December 2011 has increased operational costs significantly in 2011/12 ($10.137 million).
- The provision of shared support services to Central Agencies began in March 2012. This resulted in increased revenue and expenses in 2011/12 ($2.310 million).
The following major budget variations occurred between the 2011/12 Actuals and the 2011/12 Supplementary Estimates budgets:
- The majority of the current year variance in expenditure and revenue relates to the multi-year funding provided for the Mixed Ownership Model ($20.163 million). The uncertain timing of this work programme means that this funding will be transferred to future periods.
- In addition, approval has been given to transfer up to $7.236 million of operational funding into 2012/13. These approvals are detailed under each output in the Statement of Objectives and Service Performance section of this report.
Statement of Financial Position
The following major variations occurred in the Statement of Financial Position between the 2011/12 Actuals and 2010/11 Actuals:
- The increase in debtors and receivables reflects the charges between agencies for new shared services provided through the Treasury from March 2012.
- Shared services assets were transferred to the Treasury in 2012 increasing the non-current assets balance.
The following major budget variations occurred between the 2011/12 Actuals and the 2011/12 Supplementary Estimates budgets:
- Supplementary Estimates capital expenditure on IT assets was expected to be higher following the integration of CASS. More of this work will now be completed in 2012/13.
- Increased operational activity has increased payables year on year and against the Supplementary Estimates budget.
