FINANCIAL STATEMENTS

Summary of financial performance

In 2012–13, additional funding was provided to the Department of Immigration and Citizenship for the operations of the Authority. This was reflected as a measure in the 2012–13 Budget.

The total appropriation for services for the Authority was $5.65 million in 2012–13. This figure included revenue generated from the sale of goods and rendering of services.

The Department of Immigration and Citizenship has prepared financial statements in accordance with the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, including the Australian Accounting Standards. The accounts have been audited by the Australian National Audit Office and will be reported in the Department of Immigration and Citizenship Annual Report 2012–13. The financial transactions relating to the Authority have been included in the department’s financial results.

While not reported separately for audit purposes, the revenue and expenditure data relating to the Authority has been separately monitored and an income statement for the year ended 30 June 2013 has been provided at Table 14. As shown in the table, the operating result was a deficit of $623 000.

 

 

Income statement

Table 14: Income statement for the Authority, 2012–13

 

2012
$’000

2013
$’000

Revenue

Appropriation from Government

5,641

5,852

Sale of goods and rendering of services

9

11

Total revenue

5,650

5,863

 

Expenditure

Employee expenses

3,471

3,457

Depreciation and amortisation expense

344

328

Supplier expense

2,458

2,393

Total expenses

6,273

6,178

 

Operating Result (Deficit)/Surplus

(-623)

(-315)
 
 
Note: This deficit can be attributed in part to approximately $344 000 in depreciation for which the Authority is not funded. The more significant factor is $426 000 in litigation costs which is an increase of approximately 500 per cent on the previous year.

While slightly fewer persons exercised their right to appeal, a number of matters carried over from the previous year. Most appeals were to the AAT. Review by the AAT is de novo. Factors contributing to costs included:

  • the length of matters with some spanning the full year
  • the number of hearings—some involving multiple directions hearings, conferences and conciliation
  • the large volume of evidence from some appellants, requiring careful consideration
  • the number of complainants about the appellants concerned (and the number of witness statements required)
  • privacy-related allegations made by one of the complainants
  • the amount of additional evidence required, including some witness statements requiring an interpreter
  • the detail required in facts and contentions
  • the extensive number of files relating to the parties involved in some complaints
  • changes in representation by appellants, causing delays to allow time for representatives to familiarise themselves with the matter
  • non-attendance of appellants at hearings, resulting in further delays.

Tables 15 and 16 below show the breakdown of litigation costs incurred in 2012–13. Costs of litigation before the AAT are not recoverable, with each party having to bear its own costs regardless of the outcome of the appeal.

Table 15: Sanction-related litigation (see page 26)

Representation

Cost

Win

Loss

Ongoing

Unrepresented

$229 561

2

1

2

Represented

$146 656

2

0

3*

Totals

$376 217

4

1

5
Note: Includes one win finalised on 4 July 2013.

Table 16: Registration refusal related litigation (see page 12)

Representation

Cost

Win

Loss

Ongoing

Unrepresented

$20 852

1

1

2

Represented

$6 182

1

0

0

Totals

$27 034

2

1

2
Note: There was an additional $22 913 in litigation costs relating to miscellaneous matters finalised in the Authority’s favour.

 

Administered revenue

Administered revenues are revenues relating to the course of ordinary activities performed by the department on behalf of the Australian Government.

Administered revenue collections are transferred to the Official Public Account maintained by the Department of Finance and Deregulation.

The charge payable by an individual applying for registration as a migration agent is administered revenue. The fee is set in accordance with the Migration Agents Registration Application Charge Act 1997.

Administered revenue generated from migration agent registration application fees amounted to $6.87 million for the financial year 2012–13.