NHMRC
National Health and Medical Research Council
Agency Resources and
Planned Performance
1
NHMRC
National Health and Medical Research Council
Health and Ageing Portfolio Agency
Section 1:Agency Overview and Resources
1.1:Strategic Direction Statement...... 504
1.2:Agency Resource Statement...... 505
1.3:Budget Measures...... 506
Section 2:Outcomes and Planned Performance
2.1:Outcomes and Performance Information...... 507
Section 3:Explanatory Tables and Budgeted Financial Statements
3.1:Explanatory Tables...... 512
3.2:Budgeted Financial Statements...... 513
1
NHMRC
NHMRC - Agency Budget Statements – Agency Overview and Resources
Section 1:Agency Overview and Resources
1.1 Strategic Direction Statement
TheNational Health and Medical Research Council (NHMRC) is the Australian Government’s key agency for managing investment in health and medical research. NHMRC is also responsible for developing evidence-based health advice for the Australian community, health professionals and governments, and for providing advice on ethical practice in health care and in the conduct of health and medical research.
The role and functions of NHMRC are set out in the National Health and Medical ResearchCouncil Act (1992). NHMRC also has statutory obligations under the Prohibition of Human Cloning for Reproduction Act (2002) and the Research Involving Human Embryos Act (2002). NHMRC is prescribed as an agency under the FinancialManagement and Accountability Act (1997).
1.2 Agency Resources
Table 1.2.1shows the total resources from all origins. The table summarises how resources will be applied by outcome and by Departmental classifications.
Table 1.2.1NHMRC Resource Statement – Budget Estimates for 2013-14 as at Budget May 2013
Estimateof prior year amounts available in
2013-14
$'000 / Proposedat Budget
2013-14
$'000 / Total estimate
2013-14
$'000 / Estimatedavailable
appropriation
2012-13
$'000
Ordinary annual services1
Departmental appropriation
Prior year departmentalappropriation2 / 13,005 / - / 13,005 / 16,369
Departmental appropriation3 / - / 40,273 / 40,273 / 39,944
s31 Relevant agency receipts / - / 3,150 / 3,150 / 3,150
Total / 13,005 / 43,423 / 56,428 / 59,463
Administered resources1
Outcome 1 / - / 783,640 / 783,640 / 697,165
Total / - / 783,640 / 783,640 / 697,165
Total ordinary annual services / 13,005 / 827,063 / 840,068 / 756,628
Other services - Bill 24
Departmental non-operating
Equity injections / - / - / - / -
Total / - / - / - / -
Total other services / - / - / - / -
Total available annual appropriations / 13,005 / 827,063 / 840,068 / 756,628
Total appropriations excluding
Special Accounts / 13,005 / 827,063 / 840,068 / 756,628
Special Accounts
Opening balance5 / 206,764 / - / 206,764 / 267,396
Appropriation receipts6 / - / 771,187 / 771,187 / 689,326
Non-appropriation receipts to Special Accounts / - / 11,050 / 11,050 / 11,050
Total Special Accounts / 206,764 / 782,237 / 989,001 / 967,772
Total resourcing / 219,769 / 1,609,300 / 1,829,069 / 1,724,400
Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Actbodies through annual appropriations / - / (771,187) / (771,187) / (689,326)
Total net resourcing for NHMRC / 219,769 / 838,113 / 1,057,882 / 1,035,074
Notes:
All figures are GST exclusive.
1 Appropriation Bill (No.1) 2013-14.
2Estimated adjusted balance carried from previous year for annual appropriations.
3Includes an amount of $.082m in 2013-14 for the Departmental Capital Budget (refer to Table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'.
4 Appropriation Bill (No.2) 2013-14.
5Estimated opening balance for special accounts. For further information on special accounts see Table 3.1.2.
6Appropriation receipts from NHMRC annual and special appropriations for 2013-14 included above.
1.3 Budget Measures
Budget measures relating to NHMRC are detailed in Budget Paper No. 2 and are summarised below.
Table 1.3.1:NHMRC Budget Measures
Part 1: Measures announced since the 2012-13 MYEFO
Program / 2012-13 / 2013-14 / 2014-15 / 2015-16 / 2016-17$'000 / $'000 / $'000 / $'000 / $'000
Acute rheumatic fever vaccine - research
National Health and Medical Research Council
Administered expenses / 1.1 / - / 600 / 730 / - / -
Departmental expenses / - / 33 / 60 / - / -
Total / - / 633 / 790 / - / -
Other Portfolio Measures
A Plan for Australian Jobs - Clinical Trials Reform in Australia
National Health and Medical Research Council
Administered expenses / 1.1 / - / 680 / 306 / 281 / 284
Departmental expenses / - / 442 / 759 / 768 / 774
Total / - / 1,122 / 1,065 / 1,049 / 1,058
Part 2: MYEFO measures not previously reported in a portfolio statement
Whole of Government MeasuresTargeted savings - public service efficiencies1
National Health and Medical Research Council
Departmental expenses / 1.1 / (533) / (698) / (699) / (703) / (688)
Total / (533) / (698) / (699) / (703) / (688)
1 Measure reported incudes amounts previously reported in the Health and Ageing 2012-13 Portfolio Additional Estimate Statements (page 25).
Section 2: Outcomes and Planned Performance
2.1Outcomes and Performance Information
Outcome 1 –Improved health and medical knowledge, including through funding research, translating research findings into evidence-based clinical practice, administering legislation governing research, issuing guidelines and advice forethicsin health and the promotion of public health
Outcome Strategy
The Australian Government, through NHMRC, invests in health and medical research that is undertaken within a wellestablished ethical framework, to address national health priorities and improve the health status of all Australians.
Health and medical research is vital in driving improvements throughout the health system. It also supports the development of rigorous, evidencebased advice for both health practitioners and the Australian community.
The Australian Government, through NHMRC, will build Australia’s research capacity and international standing by investing in innovative research, and the individuals and facilities needed to support such research. NHMRC’s work will also facilitate the translation of evidence derived from health and medical research into practices and systems designed to prevent illness and improve public health.
It can take more than 20 years for knowledge, created through research, to be translated into health interventions and applied in clinical settings.[1] This means that the Government’s investment in health and medical research produces benefits for the Australian community well into the future.
NHMRC will maximise this investment through collaboration with regional neighbours to address common health challenges and, more widely, to facilitate access by Australian researchers and health professionals to sources of international funding and the best collaborative networks and research facilities. Engaging with international research partners provides opportunities for Australia to be involved in developing international policies and initiatives in research governance, and explore emerging fields of health and medical research for the benefit of all Australians. The NHMRC Strategic Plan 2013-2015[2]identifies the priorities for NHMRC to achieve these outcomes.
NHMRCBudgeted Expenses and Resources
Table 2.1.1 provides an overview of the total expenses for NHMRC by Program.
Table 2.1.1: Budgeted Expenses and Resources for NHMRC
2012-13Estimatedactual$'000 / 2013-14Budget
$'000 / 2014-15Forwardyear 1
$'000 / 2015-16Forwardyear 2
$'000 / 2016-17Forwardyear 3
$'000
Program 1.1: Health and medical research
Administered expenses
Ordinary annual services / 697,165 / 783,640 / 872,259 / 811,845 / 826,458
to the Medical Research Endowment Account / (689,326) / (771,187) / (859,870) / (800,222) / (814,627)
Special accounts
Medical Research Endowment Account / 761,008 / 858,576 / 930,902 / 859,737 / 839,792
Departmental expenses
Departmental appropriation1 / 43,013 / 43,341 / 43,939 / 44,228 / 44,653
Expenses not requiring appropriation in the budget year2 / 1,901 / 1,901 / 1,901 / 1,901 / 1,901
Operating deficit (surplus) / 1,400 / 1,400 / 1,400 / - / -
Total for Program 1.1 / 815,161 / 917,671 / 990,531 / 917,489 / 898,177
Total expenses for Outcome 1 / 815,161 / 917,671 / 990,531 / 917,489 / 898,177
2012-13 / 2013-14
Average staffing level (number) / 215 / 217
1Departmental appropriation combines "Ordinary annual services (Appropriation Bill No 1)" and "Revenue from independent sources (s31)".
2Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.
1
NHMRC
NHMRC - Agency Budget Statements – Agency Overview and Resources
Program1.1: Health and medical research
Program Objectives
Support high quality health and medical research
In 2013-14, NHMRC will implement two new measures to support essential research in Australia.
Over 4 years, NHMRC will, in conjunction with the Department of Innovation, Industry, Climate Change, Science, Research and Tertiary Education (DIICCSRTE) and agencies within the Health Portfolio, conduct work to better support the clinical trials sector in Australia. This work will build on that previously completed in response to the recommendations of the Clinical Trials Action Group Report. It will enable NHMRC to work with the states and territories and other stakeholders on the continued implementation of a nationally consistent approach to streamlining research governance and ethics review arrangements for clinical trials in the public and private sectors.
In addition, NHMRC will develop education, guidance and support for clinical trials proponents for the preparation and submission of applications for ethics and governance approval. Finally, the initiative will allow NHMRC in conjunction with DIICCSRTE to work on the development of a national interactive portal to enable greater participation and engagement in clinical trials.
In recognition that Australia has the highest documented rate of Group A Streptococcus (GAS disease) internationally,[3]NHMRC will also implement a new initiative conjointly with its counterpart, the Health Research Council (HRC) of New Zealand to develop a vaccine.One of the critical impacts of GAS disease for affected Indigenous peoples is its contribution to their burden of shorter lifespan. An effective vaccine would contribute to the overall efforts in the Australian health sector to Close the Gap.
The Australian Government, through NHMRC, will build Australia’s research capacity and international standing by supporting both people and facilities undertaking innovative research. Through the Medical Research Endowment Account,[4] NHMRC will award grants through a number of funding schemes to support research in all areas of health, targeting special areas of need such as Aboriginal and Torres Strait Islander health.
Support the translation of health and medical research
The Australian Government recognises the importance of translating research to driveimprovements throughout the health system. In 2013-14, NHMRC will commence work with its new Research Translation Faculty to identify the most important evidence gaps in major health issues and develop evidence-based actions to address them. NHMRC will also develop evidence-based health advice and guidelines in areas such as lead (safe blood levels),alternative therapies, windfarms and health, and genomics.
Promote the highest ethical standards in health and medical research
The Australian Government is committed to ensuring that the health and medical research undertaken in Australia is of the highest ethical standard. In 2013-14, NHMRC will monitor funding recipients to ensure they comply with the Australian Code for the Responsible Conduct of Research (2007). NHMRC will advise human research ethics committees that undertake the ethical review of research involving humans and monitor the conduct of research, as well as provide advice to institutions and researchers. NHMRC will also encourage the continued uptake of the National Approach to Single Ethical Review initiative (formerly known as theHarmonisation of Multi-centre Ethical Review (HoMER)) within public and private hospitals and in universities.NHMRC will revise sections of the National Statement on Ethical Conduct in Human Research 2007, Part B of the Ethical Guidelines on the use of Assisted Reproductive Technology in Clinical Practice and Research, June 2007 and finalise the revision of the Australian Code of Practice for the Care and Use of Animals for Scientific Purposes, 2004.
NHMRC will continue to administer the Research Involving Human Embryos Act (2002) and the Prohibition of Human Cloning for Reproduction Act (2002). These Acts prohibit certain practices, including human cloning for reproduction and restrict other practices relating to reproductive technology and research.
Program 1.1: Deliverables
Qualitative Deliverable for Program 1.1
Support high quality health and medical research
Qualitative Deliverable / 2013-14 Reference Point or TargetFunding provided for high quality research into Australian health problems / Use of targeted and urgent calls to support research into specific health problems
QuantitativeDeliverables for Program 1.1
Support high quality health and medical research
Quantitative Deliverables / 2012-13 Revised Budget / 2013-14 BudgetTarget / 2014-15 Forward
Year1 / 2015-16 Forward
Year2 / 2016-17 Forward
Year3
Percentage of total Medical Research Endowment Account funding to the NHMRC Project Grant scheme / 50% / 50% / 50% / 50% / 50%
Percentage of annual research budget awarded to Indigenous health research / >5% / >5% / >5% / >5% / >5%
Program 1.1: Key Performance Indicators
QualitativeKey Performance Indicators for Program 1.1
Support high quality health and medical research
Qualitative Indicator / 2013-14 Reference Point or TargetPeriodic review of established funding schemes to determine strengths and identify where improvements can be made / Completed reviews are presented to Research Committee for consideration, and implemented according to established timelines
Promote the highest ethical standards in health and medical research
Qualitative Indicator / 2013-14 Reference Point or TargetNational adoption of the National Approach to Single Ethical Review initiative (formerly known as HoMER) / Increased uptake of the National Approach to Single Ethical Review certification by Human Research Ethics Committees.
QuantitativeKey Performance Indicators for Program 1.1
Support the translation of health and medical research
QuantitativeIndicator / 2012-13 Revised Budget / 2013-14 Budget
Target / 2014-15 Forward
Year 1 / 2015-16 Forward
Year 2 / 2016-17 Forward
Year 3
Citation rate (number of citations divided by the number of scientific publications in a given time period) of journal articles resulting from NHMRC funded research[5] / >50% / >50% / >50% / >50% / >50%
Promote the highest ethical standards in health and medical research
QuantitativeIndicator / 2012-13 Revised Budget / 2013-14 Budget
Target / 2014-15 Forward
Year 1 / 2015-16 Forward
Year 2 / 2016-17 Forward
Year 3
Percentage of researcher and institutional compliance with ethics codesand human embryo licensing conditions / 100% / 100% / 100% / 100% / 100%
Section 3:Explanatory Tables and Budgeted Financial Statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013-14 Budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.
3.1Explanatory Tables
3.1.1Movement of administered funds between years
Table 3.1.1: Movement of Administered Funds between Years1
2012-13 / 2013-14 / 2014-15 / 2015-16 / 2016-17$'000 / $'000 / $'000 / $'000 / $'000
Outcome 1
1.1 / Health and medical research2 / (74,300) / - / 74,300 / - / -
Total movement of administeredfunds / (74,300) / - / 74,300 / - / -
1Figures displayed as a negative (-) represent a decrease in funds and a positive reflect an increase in funds.
2The movement of funds for NHMRC reflects an administrative change to payment arrangements.The change to the timing of grant payments has no impact on the current level of grant funding or existing funding commitments, nor does it impact upon individual research projects or researchers.
3.1.2Special Accounts
Table 3.1.2: Estimates of Special Account Flows and Balances - NHMRC
Outcome / Openingbalance2013-14
2012-13
$'000 / Appropriationreceipts
2013-14
2012-13
$'000 / Otherreceipts
2013-14
2012-13
$'000 / Payments
2013-14
2012-13
$'000 / Closingbalance
2013-14
2012-13
$'000
Medical Research / 1 / 206,764 / 771,187 / 51,050 / 898,576 / 130,425
Endowment Account1 (A) / 267,396 / 689,326 / 51,050 / 801,008 / 206,764
Total Special Accounts
2013-14 Estimate / 206,764 / 771,187 / 51,050 / 898,576 / 130,425
Total Special Accounts
2012-13 estimate actual / 267,396 / 689,326 / 51,050 / 801,008 / 206,764
Notes:
D = Departmental; A = Administered.
1National Health and Medical Research Council Act 1992 - s21 FMA Act.
3.1.3Australian Government Indigenous Expenditure (AGIE)
Outcome / Appropriations / Other / TotalBill No. 1
$'000 / Bill No. 2
$'000 / Specialappropriations
$'000 / Totalappropriations
$'000 / $'000 / $'000
National Health and Medical Research Council
Administered 2013-14 / 47,093 / - / - / 47,093 / - / 47,093
Administered 2012-13 / 41,741 / - / - / 41,741 / - / 41,741
Departmental 2013-14 / 308 / - / - / 308 / - / 308
Departmental 2012-13 / 294 / - / - / 294 / - / 294
Total outcome 2013-14 / 47,401 / - / - / 47,401 / - / 47,401
Total outcome 2012-13 / 42,035 / - / - / 42,035 / - / 42,035
Total AGIE 2013-14 / 47,401 / - / - / 47,401 / - / 47,401
Total AGIE 2012-13 / 42,035 / - / - / 42.035 / - / 42.035
3.2Budgeted Financial Statements
3.2.1Differences in agency resourcing and financial statements
Section 3.2.1 is not applicable to NHMRC.
3.2.2Analysis of budgeted financial statements
An analysis of NHMRC’s budgeted financial statements for 2013-14 is set out below.
Departmental Resources
Comprehensive Income Statement (Showing Net Cost of Services)
Revenue and expenditure for2013-14 is expected to be in line with Government forecasts, with Employee expenses to be approximately 54% of total expenditure.
Balance Sheet
The Receivables include funding for the Australia Research Fellowship scheme appropriated in 2006-07 which will be drawn down annually to facilitate the approved $1.400 million loss per annum until 30 June 2015.
Administered Resources
The Administered accounts are used as a mechanism to transfer most of the funds to NHMRC’s Special Account (Medical Research Endowment Account). In 2013-14 the transfer to the Special Account is expected to be $771.187 million. The balance of the Administered Appropriation in 2013-14 will be used to fund new measures ($1.280 million) and programs transferred from Department of Health and Ageing ($11.173 million) in the 2011-12 Budget.
In 2012-13 an initiative to change grant funding payments from quarterly in advance to monthly in arrears resulted in a re-profiling of $74.3 million from 201213 to 2014-15.
Expenditure in 2013-14 and forward estimates is expected to be greater than the Administered Appropriations and funds will be drawn down from the Medical Research Endowment Account.
3.2.3 Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of services)
(for the period ended 30June)
2012-13$'000 / Budgetestimate
2013-14$'000 / Forwardestimate
2014-15$'000 / Forwardestimate
2015-16$'000 / Forwardestimate
2016-17$'000
EXPENSES
Employee benefits / 24,933 / 25,099 / 25,320 / 25,564 / 25,764
Supplier expenses / 19,580 / 19,742 / 20,119 / 18,764 / 18,989
Depreciation and amortisation / 1,801 / 1,801 / 1,801 / 1,801 / 1,801
Total expenses / 46,314 / 46,642 / 47,240 / 46,129 / 46,554
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services / 3,150 / 3,150 / 3,150 / 3,150 / 3,150
Total revenue / 3,150 / 3,150 / 3,150 / 3,150 / 3,150
Gains
Other / 100 / 100 / 100 / 100 / 100
Total gains / 100 / 100 / 100 / 100 / 100
Total own-source income / 3,250 / 3,250 / 3,250 / 3,250 / 3,250
Net cost of (contribution by)services / 43,064 / 43,392 / 43,990 / 42,879 / 43,304
Revenue from Government / 39,863 / 40,191 / 40,789 / 41,078 / 41,503
Surplus (Deficit) / (3,201) / (3,201) / (3,201) / (1,801) / (1,801)
Surplus (Deficit) attributable tothe Australian Government / (3,201) / (3,201) / (3,201) / (1,801) / (1,801)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves / - / - / - / - / -
Total other comprehensive income / - / - / - / - / -
Total comprehensive incomeattributable to the Australian Government / (3,201) / (3,201) / (3,201) / (1,801) / (1,801)
Note: Reconciliation of comprehensive income attributable to the agency
2012-13 / 2013-14 / 2014-15 / 2015-16 / 2016-17
$'000 / $'000 / $'000 / $'000 / $'000
Total comprehensive income(loss) attributable to the Australian Government / (3,201) / (3,201) / (3,201) / (1,801) / (1,801)
plus non-appropriated expensesdepreciation and amortisationexpenses / 1,801 / 1,801 / 1,801 / 1,801 / 1,801
Total comprehensive income (loss) attributable to the agency / (1,400) / (1,400) / (1,400) / - / -
Table 3.2.2: Budgeted Departmental balance sheet (as at 30 June)
Estimatedactual2012-13$'000 / Budgetestimate
2013-14$'000 / Forwardestimate
2014-15$'000 / Forwardestimate
2015-16$'000 / Forwardestimate
2016-17$'000
ASSETS
Financial assets
Cash and cash equivalents / 343 / 343 / 343 / 343 / 343
Receivables / 13,745 / 12,426 / 12,714 / 13,143 / 13,686
Total financial assets / 14,088 / 12,769 / 13,057 / 13,486 / 14,029
Non-financial assets
Property, plant and equipment / 6,166 / 5,062 / 3,958 / 2,854 / 1,750
Inventories / 245 / 245 / 245 / 245 / 245
Intangibles / 5,016 / 4,501 / 3,990 / 3,478 / 2,969
Other / 94 / 94 / 94 / 94 / 94
Total non-financial assets / 11,521 / 9,902 / 8,287 / 6,671 / 5,058
Total assets / 25,609 / 22,671 / 21,344 / 20,157 / 19,087
LIABILITIES
Payables
Suppliers / 3,461 / 3,461 / 3,461 / 3,461 / 3,461
Other payables / 2,669 / 2,291 / 1,989 / 1,747 / 1,554
Total payables / 6,130 / 5,752 / 5,450 / 5,208 / 5,015
Provisions
Employees / 5,913 / 6,448 / 7,013 / 7,658 / 8,367
Other provisions / 600 / 624 / 649 / 675 / 702
Total provisions / 6,513 / 7,072 / 7,662 / 8,333 / 9,069
Total liabilities / 12,643 / 12,824 / 13,112 / 13,541 / 14,084
Net Assets / 12,966 / 9,847 / 8,232 / 6,616 / 5,003
EQUITY
Contributed equity / 5,275 / 5,357 / 5,543 / 5,728 / 4,801
Retained surpluses oraccumulated deficits / 7,691 / 4,490 / 2,689 / 888 / 202
Total equity / 12,966 / 9,847 / 8,232 / 6,616 / 5,003
Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2013-14)
Retainedearnings$'000 / Assetrevaluationreserve$'000 / Otherreserves
$'000 / Contributedequity/capital$'000 / Totalequity
$'000
Opening balance as at 1 July 2013
Balance carried forward fromprevious period / 7,691 / - / - / 5,275 / 12,966
Surplus (deficit) for the period / (3,201) / - / - / - / (3,201)
Appropriation (equity injection) / - / - / - / - / -
Capital budget - Bill 1 (DCB) / - / - / - / 82 / 82
Other movements / - / - / - / -
Estimated closing balanceas at 30 June 2014 / 4,490 / - / - / 5,357 / 9,847
DCB = Departmental Capital Budget.
Table 3.2.4: Budgeted Departmental statement of cash flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash received
Goods and services / 3,150 / 3,150 / 3,150 / 3,150 / 3,150
Appropriations / 43,755 / 41,232 / 40,479 / 40,690 / 40,643
Net GST received / 1,500 / 1,500 / 1,500 / 1,500 / 1,500
Total cash received / 48,405 / 45,882 / 45,129 / 45,340 / 45,293
Cash used
Employees / 26,574 / 24,564 / 24,755 / 23,963 / 25,055
Suppliers / 19,934 / 21,218 / 20,374 / 21,377 / 20,238
Total cash used / 46,508 / 45,782 / 45,129 / 45,340 / 45,293
Net cash from (or used by)operating activities / 1,897 / 100 / - / - / -
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment / 1,978 / 182 / 186 / 185 / 188
Total cash used / 1,978 / 182 / 186 / 185 / 188
Net cash from (or used by)investing activities / (1,978) / (182) / (186) / (185) / (188)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity / 81 / 82 / 186 / 185 / 188
Total cash received / 81 / 82 / 186 / 185 / 188
Net cash from (or used by)financing activities / 81 / 82 / 186 / 185 / 188
Net increase (or decrease)in cash held / - / - / - / - / -
Cash and cash equivalents at thebeginning of the reporting period / 343 / 343 / 343 / 343 / 343
Cash and cash equivalents at the end of the reporting period / 343 / 343 / 343 / 343 / 343
Table 3.2.5: Capital budget statement