Cash Flow Statement

For the year ended 30 June 2007

	Notes	2007 Budget $’000	2007 Actual $’000	2006 Actual $’000
Cash flows from operating activities
Cash inflows
Appropriation receipts - recurrent		719,025	721,190	694,896
Appropriation receipts - capital		18,596	16,237	23,342
Receipts from special capital investment funds		6,202	6,209	10,764
Grants		2,655	3,300	4,477
Sales of goods and services		33,966	27,755	26,011
Fees and fines		300	338	318
GST receipts		21,831	22,573	22,715
Interest received		1,563	2,325	1,755
Other cash receipts		4,972	24,011	16,423
Total cash inflows		809,110	823,938	800,701
Cash outflows
Employee entitlements		507,176	509,159	491,141
GST payments		21,831	20,591	22,752
Grants and subsidies		96,136	93,276	87,574
Other cash payments		176,031	171,168	183,946
Total cash outflows		801,174	794,194	785,413
Net cash from/(used by) operating activities	11.2	7,936	29,744	15,288
Cash flows from investing activities
Cash inflows
Proceeds from the disposal of assets		-	82	588
Total cash inflows		-	82	588
Cash outflows
Payments for acquisition of non-financial assets		14,401	17,074	34,330
Total cash outflows		14,401	17,074	34,330
Net cash from/(used by) investing activities		(14,401)	(16,992)	(33,742)
Net increase/(decrease) in cash held		(6,465)	12,752	(18,454)
Cash at the beginning of the reporting period		43,701	48,317	66,771
Cash at the end of the reporting period	11.1	37,236	61,069	48,317

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The above Cash Flow Statement should be read in conjunction with the accompanying notes.

Budget information refers to original estimates and has not been subject to audit.

Explanation of major variances between budget and actual

Appropriation revenue - capital variance is a result of a section 8A Public Account Act 1986 carried forward. This revenue has been recorded as revenue received in advance.
Grants variance is a result of the timing of revenue from the Australian Government which was budgeted for in 2005-06 but not recognised until 2006-07.
Sales of goods and services and other revenue variance is largely due to higher than expected school-based revenue. In addition, the budget figures include all school-based revenue against sales of goods and services, whereas the financial statements split the revenue between sales of goods and services and other revenue.
Interest variance is higher than expected interest earned on school bank accounts.
Other revenue variance is also due to the first time recognition of the Allport Library and Museum of Fine Arts heritage asset collection of $29.5 million.
Depreciation and amortisation variance is due to a valuation error identified in 2005-06 and subsequent adjustments which has resulted in a higher asset base. This increased the actual depreciation charge. This issue has been addressed in the 2007-08 Budget figures and subsequent estimates.
Cash and deposits variance is a result of the higher than expected balance of school bank accounts. The department’s operating account is also higher than expected due to section 8A carry forwards held in this account. The 2007-08 Budget has been increased.
Receivables variance is due to the improved recognition in prior years of the departmental and school-based debts and subsequent recording in the department’s financial system. This has resulted in a more reliable budget basis. This has been addressed in the 2007-08 Budget figures and subsequent estimates.
Assets held for sale variance is due to:
- some properties could not be sold and have subsequently been leased to external parties
- a review of assets held for sale and whether the asset would be sold within 12 months.
This has resulted in a number of these assets being reclassified back to land and building.
Land and buildings variance is due to a valuation error identified in 2005-06 and subsequent adjustment of these assets. This issue has been addressed in the 2007-08 Budget figures and subsequent estimates.
Heritage assets variance is due to the first time recognition and inclusion of the Allport Library and Museum of Fine Arts.
Other assets variance is a result of lower than budgeted GST collections for the month of June 2007.
Other liabilities variance is due to the different presentation of payroll tax on employee liabilities in the budget compared to the financial statements. This has been addressed in the 2007-08 Budget figures and subsequent estimates.

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