Portfolio Budget Statements 2012-13 - AIC

Australian Institute of Criminology

Section 1: Agency overview and resources

1.1Strategic direction statement

The Australian Institute of Criminology (AIC) is Australia’s leading national research and knowledge centre on crime and justice. The AIC undertakes and communicates evidence-based research to inform policy and practice. All work undertaken seeks to promote justice and reduce crime.

Much of the AIC’s work falls under the Australian Government’s national research priority area of safeguarding Australia, and in particular the fourth priority goal of protecting Australia from terrorism and crime. It also contributes to the goal of strengthening Australia’s social and economic fabric under priority area 2, promoting and maintaining good health. Research undertaken by the AIC and research funded by the AIC through its research grants program is policy-oriented and has potential for application in multiple jurisdictions and/or nationally.

The AIC’s work includes specialised national monitoring programs on key areas of crime and justice that are vital for policy makers and practitioners to manage, evaluate and respond effectively and efficiently to crime and justice problems. These unique datasets are used to monitor trends in offending, the changing profile of offenders and victims, and the circumstances of the crimes. The national monitoring programs and regular reports produced by the AIC include:

•trafficking in persons

•deaths in custody

•fraud against the Commonwealth

•drug use and socio-demographics of police detainees

•homicide, and

•armed robbery.

The AIC also undertakes research projects that investigate other areas of concern to policy makers and practitioners within the major theme areas of:

•transnational and organised crime

•cybercrime

•economic and high-tech crime

•the criminal justice system

•violent crime

•environmental and resource crime

•alcohol and illicit drugs

•crime prevention and capacity building, and

•crime and the community (including crime in diverse and Indigenous communities).

The AIC works cooperatively with, and undertakes research for, other Commonwealth, state and territory agencies. State and territory agencies provide substantial in-kind support to the research undertaken by the AIC.

The AIC provides access to information that supports the AIC’s broad range of stakeholders. Through publications, the AIC’s website, information services, national conferences and roundtables, the AIC disseminates information about the nature and extent of crime, emerging trends, and effective responses to promote justice and reduce crime.

The AIC continues to provide research grants, from a budget supported by state and territory governments, relevant to public policy of the jurisdictions in areas of law, police, judiciary, corrections, mental health, social welfare, education and related fields.

The AIC also manages the Australian Crime and Violence Prevention Awards, which are designed to reward good practice in the prevention or reduction of violence and other types of crime in Australia. The awards also encourage public initiatives at the grassroots level, and assist governments to identify and develop practical projects that will reduce violence and other types of crime in the community.

The high level of appropriation efficiency measures over the past few years have resulted in the AIC making a number of changes to the delivery schedule of some programs and reallocating some resources to ensure the AIC continues to meet key research priorities.

1.2Agency resource statement

Table 1.1 shows the total resources from all sources.

Table 1.1: Agency resource statement—Budget estimates for 2012–13 as at Budget May 2012

Estimate of
prior year / Actual
amounts / + / Proposed / = / Total / available
available in / at Budget / estimate / appropriation
2012–13 / 2012–13 / 2012–13 / 2011–12
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL SERVICES1
Departmental appropriation
Departmental appropriation2 / – / 5,358 / 5,358 / 5,462
Total ordinary annual services / – / 5,358 / 5,358 / 5,462
Total available annual
appropriations / – / 5,358 / 5,358 / 5,462
SPECIAL ACCOUNTS
Opening balance3 / – / 5,842 / 5,842 / –
Appropriation receipts4 / – / 263 / 263 / 258
Non-appropriation receipts to
special accounts / – / 3,052 / 3,052 / 10,641
Total special accounts / – / 9,157 / 9,157 / 10,899
Total resourcing / – / 14,515 / 14,515 / 16,361
Less appropriations drawn from
annual appropriations above and
credited to special accounts / – / (263) / (263) / (258)
Total net resourcing for agency / – / 14,252 / 14,252 / 16,103

All figures are GST exclusive.

1. Appropriation Bill (No. 1) 2012–13.

2. Includes an amount of $0.024m in 2012–13 for the departmental capital budget (seeTable3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

3. Estimated opening balance for special accounts (less ‘special public money’ held in accounts such asOther Trust Moneys accounts, Services for Other Governments and Non-Agency Bodies accounts, or Services for Other Entities and Trust Moneys accounts). For further information on special accounts, see Table 3.1.2.

4. Appropriation receipts from AIC annual appropriations for 2012–13 included above.

1.3Budget measures

Table 1.2: Measures announced between 2011–12 Budget and 2012–13 Budget but not yet reported in a subsequent portfolio statement

2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
Program / $’000 / $’000 / $’000 / $’000 / $’000
Expense measures
Reducing the cost of government administration—one-off efficiency dividend / 1.1
Departmental expenses / – / (137) / (137) / (139) / (140)
Total expense measures / – / (137) / (137) / (139) / (140)
Capital measures
Departmental capital budgets—savings / 1.1
Departmental capital / – / (6) / (6) / (6) / (6)
Total capital measures / – / (6) / (6) / (6) / (6)

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

The AIC’s outcome is described below together with its related program, specifying the performance indicators and targets used to assess and monitor the performance of the AICin achieving government outcomes.

Outcome 1 strategy

The main focus of the AIC is on the conduct of research that is relevant to crime and justice policy and practice. As a national knowledge centre, the AIC disseminates its own research as well as other national and international information relevant to crime and justice. The AIC also funds criminological research through the Criminology Research Grants program.

Outcomes are achieved by:

•undertaking impartial and contemporary policy-relevant research

•keeping the minister fully informed of the AIC’soutcomes and publications

•working cooperatively with the Attorney-General’s Department, portfolio agencies, state and territory criminal justice agencies and other stakeholders

•producing and disseminating crime and justice research and other information to policymakers, researchers, law enforcement and other practitioners, the academic community and the general public across Australia and internationally

•maintaining and producing research information of value to key stakeholders from ongoing monitoring programs and other research data collections

•determining priorities and making grants under the Criminology Research Grants programin consultation with Australian governments, and

•providing moneys to facilitate the conduct of, or otherwise supporting, impartial and policy-relevant research.

Outcome 1 expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: Informed crime and justice policy and practice in Australia by undertaking, funding and disseminating policy-relevant research of national significance; and through the generation of a crime and justice evidence base and national knowledge centre / 2011–12
Estimated / 2012–13
actual / Estimated
expenses / expenses
$’000 / $’000
Program 1.1: Australian Institute of Criminology
Departmental expenses
Departmental appropriation1 / 5,432 / 5,334
Special accounts / 4,621 / 3,052
Expenses not requiring appropriation in the budget year2 / 173 / 105
Total expenses for Outcome 1 / 10,226 / 8,491
2011–12 / 2012–13
Average staffing level (number) / 48 / 49

Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change.

1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue from independent sources (s31)’.

2. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and a loss resulting from increases to employee expenses due to a decrease in the government bond rate.

Contributions to Outcome 1

Program 1.1: Australian Institute of Criminology
Program 1.1 objective
The primary objective of program 1.1 is to inform policy and practice that seeks to reduce crime and promote justice, through research and the dissemination of information. This also includes the support of research which is relevant to current and future public policy issues and the funding of quality criminological research through an annual research grants program. Its secondary objective is to maintain a comprehensive and focused collection in the field of criminal justice in Australia
and to ensure that the AIC’s researchers and stakeholders have access to the most up-to-date and relevant information.
Program 1.1 expenses
Budget expenditure shows a reduction in 2012–13 from 2011–12 as a direct consequence of areduction in expenditure on grant programs for 2012–13. Grant expenditure for 2011–12 was unusually high as a result of prior year delays in these programs.
Expenditure also reduces slightly in the forward years due to government
efficiency measures and the AIC having a slightly reduced level of own-source income from2011–12.
2011–12 / 2013–14 / 2014–15 / 2015–16
Revised / 2012–13 / Forward / Forward / Forward
budget / Budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Special account expenses
Criminology Research Special Account / 4,621 / 3,052 / 2,547 / 2,027 / 2,027
Annual departmental expenses
Departmental items / 5,432 / 5,334 / 5,343 / 5,390 / 5,444
Expenses not requiring appropriation in
the budget year1 / 173 / 105 / 105 / 105 / 105
Total program expenses / 10,226 / 8,491 / 7,995 / 7,522 / 7,576

1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and a loss resulting from increases to employee expenses due to a decrease in the government bond rate.

Program 1.1 deliverables
Deliverables for program 1.1 include:
•undertaking impartial and policy-relevant research of the highest standard on crime and criminal justice
•working cooperatively with the Attorney-General’s Department, portfolio and other federal agencies, and state and territory government agencies in the AIC’s role as the Australian Government’s national research centre on crime and justice
•administering an effective and efficient annual grants program that results in policy-relevant research, and
•actively disseminating research findings to policy makers, practitioners and the general public across Australia and internationally in a timely manner.
Program 1.1 key performance indicators
•100% of trends and issues papers and research and public policy papers are peer reviewed. This ensures the quality of the research outputs by the AIC.
•The volume of research and its appropriateness as agreed with the minister.
•The Attorney-General’s Department and key stakeholders are satisfied with the AIC’s responsiveness to requests for assistance in priority areas.
•Research activities under the national research priorities are reported in the annual report.
•Quantity of publications, roundtables and conferences as agreed by the minister.
•Criminology Research Grants program funds are used to support research that is relevant to current and future public policy issues and that produces research reports of value to government and other stakeholders.
•All publications are placed on the AIC’s website within 24 hours of release and 90% of routine alerting to subscribers and listservs is complete within two days of publication release.
•Implementation of Gov 2.0 measures.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of the AIC’s finances for the 2012–13budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations, program expenses and special accounts.

3.1Explanatory tables

3.1.1Movement of administered funds between years

The AIC has no administered funds.

3.1.2Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister’s Determination under the Financial Management and Accountability Act 1997or under separate enabling legislation. Table3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the AIC.

Table 3.1.2: Estimates of special account flows and balances

Opening / Closing
balance / Receipts / Payments / Adjustments / balance
2012–13 / 2012–13 / 2012–13 / 2012–13 / 2012–13
2011–12 / 2011–12 / 2011–12 / 2011–12 / 2011–12
Outcome / $’000 / $’000 / $’000 / $’000 / $’000
Criminology Research / 1 / 5,842 / 3,315 / 3,329 / – / 5,828
Special Account (D)1 / 1 / – / 10,899 / 5,057 / – / 5,842
Total special accounts 2012–13 Budget estimate / 5,842 / 3,315 / 3,329 / – / 5,828
Total special accounts 2011–12 estimated actual / – / 10,899 / 5,057 / – / 5,842

(D) = Departmental.

1. The Criminology Research Special Account is established under section 46 of the Criminology Research Act 1971 (CR Act) for the purposes of section 21 of the Financial Management and Accountability Act 1997. Funds received into the special account include all funds paid to the AIC in relation to the performance of any of its functions, or exercising any of its powers, under the CR Act. This also includes amounts appropriated for the purposes of the account and amounts paid by a state or territory to the AIC. The AIC can expend funds from the special account in relation to its functions as set out in section 6 of the CR Act, including the payment of grants, remuneration and allowances and costs of administering the special account.

3.1.3Australian Government Indigenous expenditure

The AIC has no Indigenous-specific expenses.

3.2Budgeted financial statements

3.2.1Differences in agency resourcing and financial statements

The AIC has total resources available of $14.539m for the 2012–13 budget year (see Table 1.1). This amount is significantly more than the revenue shown in Table 3.2.1 as a result of the high level of the AIC’s special account balance of $5.842mbrought forward from 2011–12. See section 3.1.2 for more information on the special account.

3.2.2Analysis of budgeted financial statements

Income statement

Revenue from government has decreased from the prior year by $0.098m to $5.334m. This is due to the one-off 2.5% increase in the efficiency dividend, offset partially by the year-on-year indexation of the appropriation.

The AIC’s own-source revenue for 2012–13 is reported as decreasing by $1.569m to $3.052m, principally because:

•funds available for grants are not recognised as revenue until the grants are awarded.During the course of 2012–13 grants revenue will increase as grants are awarded and will be matched by an equal expense, and

•the value of externally funded research and related activities is less than that of the prior year by $0.161m.The budget is based on contracts secured as well as a prudent forecast of likely additional contracts.

The AIC’s expenses have reduced from the prior year by $1.735m as a direct consequence of the reduction in income. This has occurred predominantly in the following areas:

•supplier expenses reduced by $0.610m, and

•grants expenses reduced by $1.415m. Expenditure varies from year to year based on the level of grant funding awarded and the related grant terms. In 2011–12 expenditure was also higher than normal as a result of delays in the novation of grant agreements for the National Drug Law Enforcement Research Fund program during 2010–11 following the transfer of this program to the AIC on 1 July 2010.

Balance sheet

The AIC has a $2.400m prepayment received/unearned income balance representing as yet undistributed grants funds as well as payments received in advance for contracted research work. The AIC’s employee provisions of $0.950m are fully funded by cash reserves.

3.2.3Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services)
(for the period ended 30June)

Estimated / Budget / Forward / Forward / Forward
actual / estimate / estimate / estimate / estimate
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 4,818 / 5,108 / 4,597 / 4,735 / 4,876
Supplier expenses / 3,255 / 2,645 / 2,393 / 2,292 / 2,195
Grants / 2,048 / 633 / 900 / 390 / 400
Depreciation and amortisation / 105 / 105 / 105 / 105 / 105
Total expenses / 10,226 / 8,491 / 7,995 / 7,522 / 7,576
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services / 2,635 / 2,474 / 1,800 / 1,675 / 1,675
Royalties / 56 / 40 / 40 / 40 / 40
Other / 1,930 / 538 / 707 / 312 / 312
Total own-source revenue / 4,621 / 3,052 / 2,547 / 2,027 / 2,027
Total own-source income / 4,621 / 3,052 / 2,547 / 2,027 / 2,027
Net cost of (contribution by)
services / 5,605 / 5,439 / 5,448 / 5,495 / 5,549
Revenue from government / 5,432 / 5,334 / 5,343 / 5,390 / 5,444
Surplus (deficit) attributable to
the Australian Government / (173) / (105) / (105) / (105) / (105)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus / – / – / – / – / –
Total other comprehensive income / – / – / – / – / –
Total comprehensive income (loss) / (173) / (105) / (105) / (105) / (105)
Total comprehensive income (loss)
attributable to the Australian
Government / (173) / (105) / (105) / (105) / (105)
Note: Impact of net cash appropriation arrangements
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income (loss)
less depreciation/amortisation
expenses previously funded through
revenue appropriations / (68) / – / – / – / –
Plus depreciation/amortisation expenses
previously funded through revenue
appropriations1 / (105) / (105) / (105) / (105) / (105)
Total comprehensive income (loss)
as per the statement of
comprehensive income / (173) / (105) / (105) / (105) / (105)

Prepared on Australian Accounting Standards basis.

1.From 2010–11, the government introduced net cash appropriation arrangements where Bill 1 revenue appropriations for the depreciation and amortisation expenses of Financial Management and Accountability Act 1997 agencies were replaced with a separate capital budget provided through Bill 1 equity appropriations. See Table 3.2.5 for more information on the departmental capital budget.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Estimated / Budget / Forward / Forward / Forward
actual / estimate / estimate / estimate / estimate
2011–12 / 2012–13 / 2013–14 / 2014–15 / 2015–16
$’000 / $’000 / $’000 / $’000 / $’000
ASSETS
Financial assets
Cash and cash equivalents / 5,448 / 5,434 / 4,974 / 3,474 / 3,474
Trade and other receivables / 310 / 310 / 310 / 310 / 310
Total financial assets / 5,758 / 5,744 / 5,284 / 3,784 / 3,784
Non-financial assets
Property, plant and equipment / 396 / 315 / 234 / 153 / 72
Other non-financial assets / 200 / 200 / 200 / 200 / 200
Total non-financial assets / 596 / 515 / 434 / 353 / 272
Total assets / 6,354 / 6,259 / 5,718 / 4,137 / 4,056
LIABILITIES
Payables
Suppliers / 264 / 250 / 250 / 250 / 250
Accrued expenses / 250 / 250 / 250 / 250 / 250
Prepayment received/unearned income / 2,400 / 2,400 / 2,000 / 500 / 500
Total payables / 2,914 / 2,900 / 2,500 / 1,000 / 1,000
Provisions
Employee provisions / 950 / 950 / 890 / 890 / 890
Total provisions / 950 / 950 / 890 / 890 / 890
Total liabilities / 3,864 / 3,850 / 3,390 / 1,890 / 1,890
Net assets / 2,490 / 2,409 / 2,328 / 2,247 / 2,166
EQUITY
Parent entity interest
Contributed equity / 1,062 / 1,086 / 1,110 / 1,134 / 1,158
Reserves / 755 / 755 / 755 / 755 / 755
Retained surplus
(accumulated deficit) / 673 / 568 / 463 / 358 / 253
Total parent entity interest / 2,490 / 2,409 / 2,328 / 2,247 / 2,166
Total equity / 2,490 / 2,409 / 2,328 / 2,247 / 2,166

Prepared on Australian Accounting Standards basis.