Financial summary
This financial overview is a summary of the financial performance and position of the Commission.
The Commission’s financial reporting framework
A comprehensive set of 2016-17 financial statements covering all aspects of the Commission’s activities commences on page 75. These statements include explanatory notes and comparative figures for 2015-16.
Internal audits are performed by the Finance Manager to ensure efficiency and economy of systems and to identify financial, operational and business continuity risks. Audit results are duly reported to the Commissioner and Registrar to determine whether any remedial actions are required and to establish compliance with statutory requirements and best practice.
Operating result
The operating result for 2016-17 was a surplus of $0.279 million.
Summarised statement of comprehensive income
Summary statement	
30 Jun 2017	
30 Jun 2016	

$000	
$000	

Income	
4,119	
4,108	

Less: expenses	
3,840	
3,834	

Operating result for financial year – surplus	
279	
274	

Adjusted operating result for 2016-17
Explanation	
30 Jun 2017
$000	

Operating result for financial year – surplus	
279	

Less adjustment – note 3 prior year claim (long service leave)	
(24)	

Less adjustment – notes 11 & 12 – net capital expenditure	
(37)	

Adjusted operating result for financial year – surplus	
218	

	Income
Income by type	
30 Jun 2017	
30 Jun 2016 	

$000	
$000	

Queensland State Government funding	
1,630	
1,600	

Australian Government funding	
1,800	
1,800	

Doomadgee funding - (QLD State)	
626	
626	

Other revenue – note 3 of financial statements	
63	
82	

Total	
4,119	
4,108	

The movement in the Commission’s other revenue is primarily related to one-off recoupments of prior year expenses. In 2016-17, the Commission recouped prior year long service leave expenditure for Local Commissioners of $24,000, whilst 2015-16 included recoupment of communication costs of $52,000.
Expenses
Expenses by type	
30 Jun 2017	
30 Jun 2016 	

$000	
$000	

Employee expenses	
2,795	
2,802	

Supplies and services	
954	
972	

Depreciation and amortisation	
49	
18	

Other expenses	
42	
42	

Total	
3,840	
3,834	

The Commission’s employee expenses decreased marginally in 2016-17. Increases due to wage rises, new remuneration guidelines and increments were compensated by reduced costs due to cancellations in scheduled conferencing in some communities, changes in operational processes and vacancies.
Supplies and services expenditure decreased in 2016-17 mainly due to operational savings related to staff travel and reduced information technology and communications costs due to rationalisation of services, transitioning of services in-house and renegotiation of contracts.
Depreciation and amortisation expenditure increased in 2016-17 due to the full year effect of the amortisation of the Commission’s CRM software and new plant and equipment costs incurred in 2016-17.	

Table 10: Expenses by category and percentage of total expenditure 1 July 2016 to 30 June 2017.
Category	
Percentage	

Employee salaries – FRC staff	
50.0%	

Employee salaries – Local Commissioners	
10.0%	

Employee on costs – FRC staff	
10.0%	

Employee on costs – Local Commissioners	
2.0%	

Other employment costs	
1.0%	

Communications	
1.0%	

Internet & IT	
5.0%	

Motor vehicle	
1.0%	

Property	
6.0%	

Travel	
6.0%	

General operating	
6.0%	

Other expenses	
2.0%	

Total	
100.0%	

Remote location and Cairns registry expenditure

Table 11: Operating costs by remote location
1 July 2016 to 30 June 2017.
Community	
Qtr 1	
Qtr 2	
Qtr 3	
Qtr 4	

Aurukun	
124K	
117K	
119K	
118K	

Coen	
39K	
34K	
29K	
52K	

Doomadgee	
148K	
136K	
145K	
215K	

Hope Vale	
75K	
72K	
65K	
98K	

Mossman Gorge	
39K	
38K	
36K	
47K	

TOTAL	
425K	
397K	
394K	
530K	

Table 12: Quarterly operating costs, Cairns registry
1 July 2016 to 30 June 2017.
Community	
Qtr 1	
Qtr 2	
Qtr 3	
Qtr 4	

Corporate Services	
245K	
221K	
226K	
263K	

Operations	
246K	
213K	
257K	
263K	

Gov/Board Reporting	
36K	
36K	
36K	
36K	

Other Expenditure	
0K	
2K	
6K	
7K	

TOTAL	
527K	
472K	
525K	
569K	

	Statement of financial position
Total assets at 30 June 2017 consisted of current assets of cash, prepayments and receivables in addition to non-current plant and equipment and intangible assets.
Total liabilities as at 30 June 2017 consisted of payables and accrued employee benefits.
Statement of financial position	
30 Jun 2017	
30 Jun 2016 	

$000	
$000	

Current assets	
1,697	
1,423	

Non-current assets	
60	
65	

Total assets	
1,757	
1,488	

Current liabilities	
325	
335	

Total liabilities	
325	
335	

Net assets	
1,432	
1,153	

Total equity	
1,432	
1,153	

Cash flow statement
The cash flow statement shows the nature and amount of the Commission’s cash inflows and outflows from all activities.
Cash flow statement	
30 Jun 2017	
30 Jun 2016 	

$000	
$000	

Operating activities	
394	
273	

Investing activities	
(34)	
(83)	

Net increase/(decrease) in cash held	
360	
190	

Cash at beginning of financial year	
1,275	
1,085	

Cash at end of financial year	
1,635	
1,275	

Budget to actual comparative Statement of Comprehensive Income 
for the year ended 30 June 2017
		Original 
Budget 2017	Actual
2017	Variance
Budget to Actual	
	Notes	$000	$000	$000	
Income from continuing operations					
Grants and other contributions		4,056	4,056	-	
Other revenue	1	38	63	25	
Total income from continuing operations		4,094	4,119	25	
Expenses from continuing operations					
Employee expenses	2	3,187	2,795	(392)	
Supplies and services	3	982	954	(28)	
Depreciation and amortisation	4	42	49	7	
Other expenses		42	42	-	
Total expenses from continuing operations		4,253	3,840	(413)	
Operating result from continuing operations		(159)	279	438	
Total other comprehensive income		-	-	-	
Total comprehensive income		(159)	279	438	

Explanatory notes
1.	Other revenue - Recoupment of prior year long service leave expenditure.

2.	Employee expenses - Delay in recruitment of second Deputy Commissioner originally planned for 2017 together with reduced costs due to changes in operational processes, Local Commissioner absences, reduced scheduled conferencing in communities and vacancies.

3.	Supplies and services - Savings were made in the areas of staff travel largely due to commercial flights being available in lieu of charters and cancellation of scheduled conferences in some communities; information technology due to transitioning certain services in-house and more efficient use of technology and communications costs due to the renegotiation of contracts and rationalisation of services.

4.	Depreciation and amortization - Depreciation on new plant and equipment purchased during 2016-17.