DEPARTMENT OF FISHERIES ANNUAL REPORT TO THE ...

SUMMARy OF THE yEAR � FINANCIAL OvERvIEw
The cost of services is three per cent more
than last year ($71.8m in 2010/11; $69.5m in
2009/10). This cost includes depreciation and non
cash items consumed in delivering services.
The $18m increase in the Department’s total
cost of services over the last five years ($71.9m
in 2010/11; $53.8m in 2006/07) has been
significantly impacted by major financial movements
illustrated in Figure 2b.
The figure shows the total cost of services in
2006/07 and the major financial movements that
have contributed to the cumulative increase in the
total cost of services ending in 2010/11.
Major policy decisions, an increase on
demand for services, and cost escalations from
Consumer Price Index-related increases and award
adjustments are the largest contributors to the
overall change in total cost of services.
The introduction of the Recreational Fishing
from Boat Licence in 2010 has resulted in
additional activity in the area of recreational fishing.
This has further contributed to the increase in the
total cost of services for 2010/11 under major
financial movement ‘Major policy decisions’ (see
Figure 2b and Table 2b) although recreational
licence fees help recover a proportion of the
increase in costs for the related activities.
See also Figure 2c and Table 2c for the list of
major policy decisions that have impacted on total
cost of services since 2006/07.
Figure 2b. Summary of major financial movements between total cost of services
in 2006/07 and 2010/11
$' 000
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
table 2b.
53,799
Total cost of
services 2006/07
-3,051
One-off expenditure
decrease from
2006/07
-2,032
Shared services
and other
savings harvests
9,095
Major policy
decisions (a)
3,383
Cost escalation
and award
adjustments (b)
MAJOR FINANCIAL MOVEMENTS
2,200
One-off increase
in employee
long service leave
entitlements (c)
8,497 71,891
Services offset
by revenue and
othercosts
SummAry of mAJor fINANcIAl movemeNtS BetweeN totAl
coSt of ServIceS IN 2006/07 ANd 2010/11
$’000
Major policy decisions (a) 9,095
Cost escalation and award adjustments (b) 3,383
One-off increase in employee long service leave entitlements (c) 2,200
Services offset by revenue and other costs
Less
8,497
One-off expenditure decrease from 2006/07 (3,051)
Shared services and other savings harvests (2,032)
totAl 18,092
(a) See Table 1C for a list of policy decisions implemented over the last five years.
(b) Cost escalations are mainly due to non salary related costs whilst award
adjustments have increased salary costs.
(c) See also notes with respect to Figure 21 ‘Employee Benefits Provision Ratio’.
Total cost
of services
2010/11
19