Annual Report 2016–17: 4. Financials

Our financial report for 2016–17.

[toc]

Financial performance

The DTA recorded an operating surplus of $6.4 million in 2016–17, excluding the change in the asset revaluation reserve, driven by the Trusted Digital Identity second pass business case underspend. This compares with a surplus of $1.9 million in 2015–16.

Under the Administrative Arrangements Order (AAO) of 27 October 2016, responsibilities for the whole of government ICT and ICT procurement policy and services transferred from the Department of Finance to the DTA.

The DTA established an ICT Procurement Special Account in June 2017 as a result of the transfer. The final balance of the special account, relating to the ICT functions specified in the AAO, was transferred from the Department of Finance’s Coordinated Procurement Contracting Special Account during the first quarter of 2017–18.

The DTA’s 2016–17 financial statements are presented in the Financial statements section.

The Australian National Audit Office issued an unmodified audit report on 18 September 2017.

**Table 1** Resource statement
Ordinary annual services¹
	Actual available appropriation for 2016–17 $’000 (a)	Payments made for 2016–17 $’000 (b)	Remaining balance 2016–17 $’000 (a) - (b)
Prior year departmental appropriation	9,411	9,411	-
Departmental appropriation²	45,217	29,493	15,724
s. 74 retained revenue receipts	15,414	15,414	-
s. 75 transfers	3,075	3,075	-
Total	73,117	57,393	15,724
Total ordinary annual services	73,117	57,393
Total net resourcing for DTA	73,117	57,393
Appropriation Act (No.1) 2016–17 and Appropriation Act (No.3) 2016–17.

**Table 2** Expenses for Outcome 1
Outcome 1: To improve the user experience for all Australians accessing government information and services by leading the design, development and continual enhancement of whole-of-government service delivery policies and standards, platforms and joined-up services.
Program 1.1: The Digital Transformation Agency
	Budget¹ 2016–17 $’000 (a)	Actual expenses 2016–17 $’000 (b)	Variation 2016–17 $’000 (a) - (b)
Departmental expenses
Departmental appropriation²	67,646	56,190	11,456
Expenses not requiring appropriation in the budget year	393	1,729	(1,336)
Total for program 1.1	68,039	57,919	10,120
Total expenses for Outcome 1	68,039	57,919	10,120
	2015-16	2016–17
Average staffing level (number)	37	109
Full-year budget, including any subsequent adjustment made to the 2016–17 Budget at Additional Estimates. Departmental appropriation combines ordinary annual services (Appropriation Act Nos 1 and 3) and retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

Purchasing and procurement

The DTA’s purchasing activities were undertaken in accordance with the Public Governance Performance and Accountability Act 2013 (PGPA Act), Commonwealth Procurement Rules and the Indigenous Procurement Policy.

The CEO’s Accountable Authority Instructions (AAIs) support these principles by providing further direction to DTA officials when conducting procurements on behalf of the Agency.

The AAIs are based on the principles of a competitive, non-discriminatory procurement processes, proper use of government resources, and making decisions in an accountable and transparent manner.

DTA also has a centralised procurement team to provide guidance and advice for DTA officials undertaking procurement activities.

Consultancies

The DTA engages consultants where specialist or technical expertise is required. Consultants are typically engaged to:

investigate or diagnose a defined issue or problem
carry out independent reviews or evaluations
provide objective advice
provide recommendations to assist in decision making.

The engagement of consultants is assessed to ensure value for money and compliance with the PGPA Act, the Commonwealth Procurement Rules (CPRs) and AAIs.

During 2016–17, 13 new consultancy contracts were entered into involving a total actual expenditure of $1,941,298. In addition, one ongoing consultancy contract was active during the period involving a total actual expenditure of $13,200.

Annual reports contain information about actual expenditure on consultancy contracts. Information on the value of the contracts is available on the AusTender website: www.tenders.gov.au

There were no instances of contracts that precluded the Auditor-General from accessing the contractor’s premises (17AG(8)).

In 2016–17, the DTA published the following on the AusTender website:

details of publicly available business opportunities with a value of $80,000
or more
details of all contracts awarded with a value of $10,000 or more.

By publishing on AusTender, the DTA ensures that information is available to industry, including small and medium enterprises (SMEs) while simplifying the way business interacts with government online.

There were no contracts in 2016–17 that were exempt from being reported on AusTender.

DTA supports small business participation in the Commonwealth Government Procurement market. SMEs and small enterprise participation statistics are available on the Department of Finance’s website at http://www.finance.gov.au/procurement/statistics-on-commonwealth-purchasing-contracts/

The DTA procurement practices support SMEs by adopting whole of government solutions to simplify interactions with SMEs. This includes using the Commonwealth Contracting Suite for low-risk procurements valued under $200,000. This reduces process costs for SMEs by creating contracting consistency and simplifying liability, insurance and indemnity requirements.

DTA recognises the importance of ensuring that small businesses are paid on time. DTA applies the Government’s Supplier Pay on Time or Pay Interest Policy to pay invoices no later than 30 days following the receipt of a correctly rendered tax invoice valued at $1 million or less.

Advertising and market research

During 2016–17, DTA did not undertake any advertising campaigns. DTA did make payments for market research services as shown below.

Firm	Service Provided	2016–17 Payments made in $ (incl. GST)
Farron Research	User Research and testing sessions	28,824
Ogilvy	Immersion workshops, stakeholder research and communications review	50,320
Ogilvy	Retrospective Social listening analysis report	15,000
Farron Research	User Research and testing sessions	31,358
The Knowledge Warehouse (TKW Research Group)	Healthcare User Research	42,914
Red Rollers	User Research and testing sessions	41,250
Department of Human Services	User Research and testing sessions	21,660
Paper Giant	User Research and testing sessions	99,088

Financial statements

for the period ending 30 June 2017

Read the full text version of the Independent Auditor’s report.

Page 1 of the Independent Auditor's report from the Australian National Audit Office.

Page 2 of the Independent Auditor's report from the Australian National Audit Office.

Digital Transformation Agency
Statement by the Chief Executive Officer and Acting Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2017 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Digital Transformation Agency will be able to pay its debts as and when they fall due.

Gavin Slater Chief Excecutive Officer's signature

Gavin Slater
Chief Executive Officer
18 September 2017

Sarah Johnston Acting Chief Finance Officer's signature

Sarah Johnston
Acting Chief Finance Officer
18 September 2017

Digital Transformation Agency
Statement of Comprehensive Income

for the period ending 30 June 2017

	Notes	2017 $’000	2016 $’000	Original Budget $’000
Net cost of services
Expenses
Employee benefits	1.1A	17,207	6,633	10,487
Suppliers	1.1B	39,560	20,423	24,404
Depreciation and amortisation	2.2A	1,138	848	208
Write-down and impairment of assets	2.2A	3	957	-
Finance costs	2.4A	11	-	-
Total expenses		57,919	28,861	35,099
Own-source revenue
Contributions	1.2A	10,000	-	-
Rendering of Services		5,431	-	-
Resources received free of charge	1.2B	577	261	185
Total own-source revenue		16,008	261	185
Net cost of service		41,911	28,600	34,914
Revenue from Government		48,292	30,525	34,706
Surplus/(Deficit) attributable to the Australian Government		6,381	1,925	(208)
Other comprehensive income
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus		239	-	-
Total comprehensive income/(loss) attributable to the Australian Government		6,620	1,925	(208)
The above statement should be read in conjunction with the accompanying notes.

Digital Transformation Agency
Statement of Financial Position

as at 30 June 2017

	Notes	2017 $’000	2016 $’000	Original Budget $’000
Assets
Financial Assets
Cash		557	145	250
Trade and other receivables	2.1A	21,129	10,451	621
Total financial assets		21,686	10,596	871
Non-financial Assets
Leasehold improvements	2.2A	2,063	1,461	-
Plant and equipment	2.2A	647	572	1,179
Intangibles	2.2A	-	364	-
Prepayments		595	348	202
Total non-financial assets		3,305	2,745	1,381
Total assets		24,991	13,341	2,252
Liabilities
Payables
Suppliers	2.3A	4,896	5,926	410
Other payables	2.3B	1,196	210	-
Total payables		6,092	6,136	410
Provisions
Employee provisions	4.1A	6,313	1,463	1,257
Make good provisions	2.4A	549	325	-
Total provisions		6,862	1,788	1,257
Total liabilities		12,954	7,924	1,667
Net assets		12,037	5,417	585
Equity
Contributed equity		3,492	3,492	906
Asset revaluation reserve		239	-	-
Retained surplus (Accumulated deficit)		8,306	1,925	(321)
Total equity		12,037	5,417	585
The above statement should be read in conjunction with the accompanying notes.

Digital Transformation Agency
Statement of Changes in Equity

for the period ending 30 June 2017

	2017 $’000	2016 $’000	Original Budget $’000
Total equity - opening balance
Balance carried forward from previous period
Contributed equity	3,492	-	906
Asset revaluation reserve	-	-	-
Retained earnings	1,925	-	(113)
Adjusted opening balance	5,417	-	(113)
Comprehensive income
Retained earnings
Surplus/(Deficit) for the period	6,381	1,925	(208)
Asset revaluation reserve
Other comprehensive income	239	-	-
Total comprehensive income	6,620	1,925	(208)
Contributed equite
Transactions with owners - contributed equity
Distributions to owners
Returns of capital:
Return of Appropriation (equity injection)	-	(2,226)	-
Contributions by owners
Restructuring¹	-	1,992	-
Appropriation (equity injection)	-	2,226	-
Departmental Capital Budget (DCB)	-	1,500	-
Total transactions with owners	-	3,492	-
Total equity
Contributed equity	3,492	3,492	906
Asset revaluation reserve	239	-	-
Retained earnings	8,306	1,925	(321)
Closing balance as at 30 June	12,037	5,417	585
In 2017 a restructure with Department of Finance for the transfer to DTA of whole of government ICT and ICT procurement policy and services functions occurred with a nil impact on the DTA’s equity balance, see note 6.1. Accounting Policy Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year. Restructuring of Administrative Arrangements Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity. Other Distributions to Owners The Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. The above statement should be read in conjunction with the accompanying notes.

Digital Transformation Agency
Cash Flow Statement

for the period ended 30 June 2017

Operating activities
	Notes	2017 $’000	2016 $’000	Original Budget $’000
Cash received
Appropriations		42,391	21,259	34,424
Contributions		10,000	-	-
Net GST received		3,294	778	268
Sale of goods and rendering of services		5,414	-	-
Total cash received		61,099	22,037	34,692
Cash used
Employees		16,153	10,575	10,468
Suppliers		43,532	9,847	24,224
Total cash used		59,685	20,422	34,692
Net cash from operating activities		1,414	1,615	-
Investing activities
Cash used
Purchase of property, plant and equipment	2.2A	1,002	2,970	-
Total cash used		1,002	2,970	-
Net cash used by investing activities		(1,002)	(2,970)	-
Financing activities
Cash received
Contributed equity
Departmental capital budget		-	1,500	-
Total cash received		-	1,500	-
Net cash from financing activities		-	1,500	-
Net increase in cash held		412	145	-
Cash and cash equivalents at the beginning of the reporting period		145	-	250
Cash and cash equivalents at the end of the reporting period		557	145	250
The above statement should be read in conjunction with the accompanying notes.

Digital Transformation Agency
Notes to and forming part of the financial statements

for the period ended 30 June 2017

Overview

Basis of preparation of the financial statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and
Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

New Australian accounting standards

All new, revised or amended standards and interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material financial impact on the DTA’s financial statements.

Taxation

The DTA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

Events after the reporting period

There are no known events occurring after the reporting period that could impact on the financial statements.

Revenue from Government

Amounts appropriated for departmental ordinary annual services for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when DTA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

	2017 $’000	2016 $’000
Note 1.1A: Employee benefits
Wages and salaries	11,529	4,961
Superannuation
Defined contribution plans	1,247	620
Defined benefit plans	887	245
Leave and other entitlements	2,774	755
Separation and redundancies	564	5
Other	206	47
Total employee benefits	17,207	6,633
Accounting Policy Accounting policies for employee related expenses is contained in the People and Relationships section.

Note 1.1B: Suppliers
Goods and services supplied or rendered
Consultants, contractors and legal	24,725	9,037
Information technology and communication	3,421	2,163
Payments to other government agencies¹	3,002	60
Secondments	2,331	4,914
Training, recruitment and other staff costs	1,471	492
Travel	1,366	1,033
Other	1,526	1,395
Total goods and services supplied or rendered	37,842	19,094
Goods supplied	414	739
Services rendered	37,428	18,355
Total goods and services supplied or rendered	37,842	19,094
Other suppliers
Operating lease rentals	1,665	1,261
Workers compensation expenses	53	68
Total other supplier expenses	1,718	1,329
Total suppliers	39,560	20,423
Leasing commitments
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within 1 year	2,134	1,242
Between 1 to 5 years	2,391	3,003
Total operating lease commitments	4,525	4,245
Relates to collaboration with other government agencies on digital capability design. Note: Commitments are GST inclusive where relevant. Operating lease commitment - leases for office accommodation Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions in the lease agreements. The three leases entered into by the DTA all have renewal options which vary from 1 to 5 years. Accounting Policy Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Own-Source Revenue	2017 $’000	2016 $’000
Note 1.2A: Contributions
Contribution from PM&C¹	10,000	-
Total Contributions	10,000	-
PM&C transferred $10 million to the DTA in 2016–17. PM&C was reimbursed for this transfer through the Trusted Digital Identity expense measure in the 2016–17 Mid-Year Economic and Fiscal Outlook (MYEFO).

Note 1.2B: Resources received free of charge
Audit fee	58	60
Secondments	519	-
Assets received free of charge	-	201
Total resources received free of charge	577	261
Accounting Policy Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Services receivables
	2017 $’000	2016 $’000
Note 2.1A: Trade and Other Receivables
Services rendered	3,838	623
Total goods and services receivables	3,838	623
Appropriations receivables
Existing programs	15,167	9,266
Total appropriations receivable	15,167	9,266
Other receivables
Statutory receivables	317	399
Other receivables	1,807	163
Total other receivables	2,124	562
Total trade and other receivables	21,129	10,451
Credit terms for goods and services were within 30 days (2016: 30 days). Receivables have been assessed for impairment at the end of each reporting period. No allowance has been made as at 30 June 2017 (2016: nil). Accounting Policy Loans and Receivables Trade receivables, loans and other receivables that have fixed or determinable payments and that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment.

	2017 $’000	2016 $’000
Note 2.3A: Suppliers
Trade creditors and accruals	4,896	5,926
Total suppliers	4,896	5,926
Settlement is usually made within 30 days.

Note 2.3B: Other payables
Unearned revenue	765	-
Salaries and wages	158	46
Superannuation	27	7
Lease liability	23	19
Statutory payable	54	15
Other	169	123
Total other payables	1,196	210

	2017 $’000	2016 $’000
Note 2.4A: Provision for Make Good Obligations
As at 1 July 2016	325	-
Additional provisions made	213	325
Unwinding of discount or change in discount rate	11	-
Total as at 30 June 2017	549	325
The DTA has entered into three lease arrangements (one under a Memorandum of Understanding agreement) for the leasing of premises. These arrangements have provisions requiring the DTA to restore the premises to the original condition at the conclusion of the lease. Accounting Policy Provision for the restoration of leased premises (make good) is based on future obligations relating to the underlying assets. The provision is disclosed at the present value of the obligation utilising the appropriate Government bond rate.

Departmental
	Appropriation Act	PGPA Act			Appropriation applied in 2017 (current and prior years)¹	Variance²
	Annual Appropriation	Section 74 receipts	Section 75 Transfers	Total appropriation
	$’000	$’000	$’000	$’000	$’000	$’000
Ordinary annual services	45,217	15,414	3,075	63,706	(57,393)	6,313
Total departmental	45,217	15,414	3,075	63,706	(57,393)	6,313
The Department of Employment (shared services, previously the Shared Service Centre) spent money from the Consolidated Revenue Fund (CRF) on behalf of DTA. The variance in departmental ordinary annual services is mainly attributable to underspend on the Trusted Digital Identity second pass business case which was funded in MYEFO.

Departmental
	Appropriation Act	PGPA Act			Appropriation applied in 2016 (current and prior years)¹	Variance²
	Annual Appropriation	Section 74 receipts	Section 75 Transfers	Total appropriation
	$’000	$’000	$’000	$’000	$’000	$’000
Ordinary annual services	30,011	-	514	30,525	(20,715)	9,810
Capital Budget³	1,500	-	-	1,500	(1,500)	-
Other services
Equity injections⁴	2,226	-	-	2,226	-	2,226
Total departmental	33,737	-	514	34,251	(22,215)	12,036
In 2016 the Shared Service Centre spent money from the Consolidated Revenue Fund (CRF) on behalf of DTA. The variance in departmental ordinary annual services is mainly attributable to undrawn current year appropriations due a higher than expected accrued expense balance. Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts. The comparative year Equity injection is shown exclusive of the Section 51 Permanent Quarantine, which has reduced contributed equity by $2.226 million.

	2017 $’000	2016 $’000
Authority
Departmental¹
Appropriation Act (No. 1) 2015-16	-	7,896
Appropriation Act (No. 1) 2015-16 - cash held by the department	-	145
Appropriation Act (No. 3) 2015-16	-	1,370
Appropriation Act (No. 1) 2016–17	8,406	-
Appropriation Act (No. 1) 2016–17 - cash held by the department	557	-
Appropriation Act (No. 3) 2016–17	6,761	-
Total departmental	15,724	9,411
Appropriations reduced under section 51 of the PGPA Act in 2016 included equity injection of $2.226 million. No amounts were reduced in 2017.

	2017 $’000	2016 $’000
Note 4.1A: Employee Provisions
Leave	6,313	1,463
Total employee provisions	6,313	1,463
Accounting Policy Liabilities for ‘short-term employee benefits’ and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. Leave The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the DTA’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination. The provision is disclosed at the present value of the obligation using the short hand method that utilises the appropriate Government bond rate. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the DTA is estimated to be less than the annual entitlement for sick leave. Superannuation The DTA’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes. The DTA makes employer contributions to the employees’ superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. The DTA accounts for the contributions as if they were contributions to defined contribution plans.

	2017 $’000	2016 $’000
Short-term employee benefits	1,716	1,747
Post-employment benefits	245	254
Other long-term employee benefits	226	129
Termination benefits	414	-
Total key management personnel remuneration expenses^1,2,3	2,601	2,130
The DTA has determined the KMP to be the Chief Executive Officer (CEO) and 4 Executive Officers as at 30 June 2017. This executive team in 2015-16 included 9 officers until the DTA was restructured from October 2016 on transition from the Digital Transformation Office (DTO). The total number of KMP that are included in the above table is 12 (2016: 11) representing the people who individually occupied the KMP positions during the year. The above KMP remuneration excludes the remuneration and other benefits of the Portfolio Ministers. The Portfolio Ministers’ remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

	2017 $’000	2016 $’000
Note 5.2A: Categories of Financial Instruments
Financial Assets
Held-to-maturity investments
Cash and cash equivalents	557	145
Total held-to-maturity investments	557	145
Loans and receivables
Goods and services receivables	3,838	623
Total loans and receivables	3,838	623
Total financial assets	4,395	768
Financial Liabilities
Financial liabilities measured at amortised cost
Trade creditors and accruals	4,896	5,926
Total financial liabilities measured at amortised cost	4,896	5,926
Total financial liabilities	4,896	5,926
Note 5.2B: Net Gains or Losses on Financial Assets and Liabilities The DTA has no gains or losses on financial instruments. Accounting Policy Financial assets The DTA classifies its financial assets in the following categories: held-to-maturity investments; and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date. Financial Liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

	2017	2016
	Transfer from Department of Finance $’000	Set up of DTO from PM&C¹ $’000	GOV 2.0 from Finance² $’000
Functions assumed
Assets recognised
Appropriation receivable	3,088	-	431
Accounts receivable	356	-	-
Plant and equipment	-	989	-
Intangibles- internally generated	-	-	841
Other non-financial assets (prepayments)	-	-	162
Total assets recognised	3,444	989	1,434
Liabilities recognised
Employee provisions	2,637	-	431
Unearned revenue	807	-	-
Total liabilities recognised	3,444	-	431
Net assets recognised	-	989	1,003
Income Assumed
Recognised by DTA	713	-	-
Recognised by Department of Finance	972	-	-
Total income assumed	1,685	-	-
Expenses assumed
Recognised by DTA	3,528	-	1,836
Recognised by Department of Finance	3,793	-	331
Total expenses assumed	7,321	-	2,167
During 2016, PM&C relinquished $0.989 million in plant and equipment to assist with the establishment of the then Digital Transformation Office (DTO) as its own Executive Agency on 1 July 2015. Also in 2016, as part of the Administrative Arrangement Orders issued by the Government on 21 September 2015, the Gov 2.0 function (and associated assets and liabilities) was transferred from the Department of Finance.

Explanations of major variances	Affected line items
Statement of Comprehensive Income
Total expenses for 2016–17 were $57.9 million, an increase of $22.8 million compared to the original budget. This variance reflects additional expenditure for: Additional measures announced in the 2016–17 Mid-Year Economic and Fiscal Outlook (MYEFO) including employee benefits ($3.9 million) and suppliers($11.5 million) of which the Trusted Digital Identity measure was the largest component; and The Administrative Arrangements Order (AAO) of 27 October 2016, whereby responsibilities for whole of government ICT and ICT procurement policy and services transferred from the Department of Finance to DTA, including employee benefits expenditure of $3.3 million and suppliers of $0.8m.	Employees and Suppliers
Total own-source income for 2016–17 was $16.0 million, an increase of $15.8 million compared to the original budget. This increase in revenue is due to additional rendering of services from the AAO of 27 October 2016 and the contribution revenue from PM&C for the Trusted Digital Identity measure. Details regarding the contribution were disclosed in the measure published in the 2016–17 MYEFO.	Contributions and Rendering of Services
Revenue from Government for 2016–17 was $48.3 million, an increase of $13.6 million compared to the original budget. This increase relates to the AAO of 27 October 2016 and from measures including the Trusted Digital Identity measure.	Revenue from Government
Statement of Financial Position
The change in the actual balance sheet position as at 30 June 2017 compared to the original budget reflects the additional activities transferred to DTA from Department of Finance following the AAO of 26 October 2017.	All
Statement of Cash Flows
The $26.4 million increase in cash received compared to the original budget relates the AAO of 26 October 2016, a contribution from PM&C and new measure including the Trusted Digital Identity measure.	Appropriation, Contributions and Rendering of services
The $25.0 million increase in cash used compared to the original budget relates to additional expenditure as a consequence of the AAO of 26 October 2016, PM&C contribution and the Trusted Digital Identity measure.	Employees and Suppliers
The $1.0 million increase in property, plant and equipment expenditure compared to the original budget relates to increased investment in leasehold improvements and plant and equipment purchases to support the increasing size of the agency.	Purchase of property, plant and equipment

Annual Report 2016–17: 4. Financials

Financial performance

Purchasing and procurement

Consultancies

Advertising and market research

Financial statements

Digital Transformation Agency Statement by the Chief Executive Officer and Acting Chief Finance Officer

Digital Transformation Agency Statement of Comprehensive Income

Digital Transformation Agency Statement of Financial Position

Digital Transformation Agency Statement of Changes in Equity

Accounting Policy

Equity injections

Restructuring of Administrative Arrangements

Other Distributions to Owners

Digital Transformation Agency Cash Flow Statement

Digital Transformation Agency Notes to and forming part of the financial statements

Overview

New Australian accounting standards

Taxation

Events after the reporting period

Revenue from Government

1. Financial Performance

1.1 Expenses

Accounting Policy

Operating lease commitment - leases for office accommodation

Accounting Policy

1.2 Own-Source Revenue and Gains

Accounting Policy

2. Financial Position

2.1 Financial Assets

Accounting Policy

Loans and Receivables

2.2 Non-Financial Assets

Accounting policy

Asset recognition threshold

Intangibles

Revaluations

Depreciation

Impairment

2.3 Payables

2.4 Other Provisions

Accounting Policy

3. Funding

3.1 Appropriations

4. People and Relationships

4.1 Employee Provisions

Accounting Policy

Leave

Superannuation

4.2 Key Management Personnel Remuneration

Note 4.2A: Key Management Personnel Remuneration

4.3 Related Party Disclosures

Related party relationships:

Transaction with related parties:

5. Managing Uncertainties

5.1 Contingent Asset and Liabilities

Accounting Policy

5.2 Financial Instruments

Note 5.2B: Net Gains or Losses on Financial Assets and Liabilities

Accounting Policy

Financial assets

Financial Liabilities

6. Other Information

6.1 Restructuring

Note 6.1A: Restructuring

6.2 Budgetary Explanation of Major Variances

Note 6.2A: Budgetary Reporting

Get in touch

Digital Transformation Agency
Statement by the Chief Executive Officer and Acting Chief Finance Officer

Digital Transformation Agency
Statement of Comprehensive Income

Digital Transformation Agency
Statement of Financial Position

Digital Transformation Agency
Statement of Changes in Equity

Digital Transformation Agency
Cash Flow Statement

Digital Transformation Agency
Notes to and forming part of the financial statements