Overview

In 2018-19, the department recorded income of $93.956 million, an increase of $6.52 million compared to 2017-18. The NT Government is a signatory to a National Environmental Biosecurity Response Agreement that enables a cost-sharing arrangement to an emergency pest or disease response. In 2018, citrus canker was detected and declared a plant pest in the NT, prompting a national response. The department recognised approximately $6.2 million in grant revenue from cost-sharing jurisdictions as a result of the citrus canker incursion.

The department’s main source of income, output appropriation, remained relatively equal to the prior year at 74 per cent of total income, dropping by $67,000 from the previous year. Commonwealth appropriation fell by $1.4 million compared to the previous year, primarily due to the cessation of the Banana Freckle Eradication Program, resulting in a corresponding drop in national partnership funding.

Sales of goods and services and miscellaneous revenue were higher than the previous year by $0.69 million and $0.32 million, respectively. This is due to one-off reimbursements received in 2018-19 and timing of externally funded project agreements completed or commencing during the year, offset against decreases in other sales and regulation fees collected. Auction proceeds from sales of obsolete farm plant and equipment generated a gain of $0.1 million in 2018-19.

The department also recognised goods and services received free of charge, a notional shared service provided by the Department of Corporate and Information Services (DCIS), which increased by $0.32 million compared to the previous year.

Total expenses for the 2018-19 year at $100.794 million were approximately $10.7 million greater than in 2017-18.

Employee expenses increased by approximately $6.5 million, primarily attributed to the personnel recruited for the citrus canker response. While the department implemented a recruitment strategy to monitor the employee staffing cap during the year, the enterprise bargaining agreement, redundancy payouts, the Recfishing Futures Program and the Hydraulic Fracturing Inquiry Implementation initiative also contributed to increases compared to the previous year. On average, full-time equivalent (FTE) numbers sourced from appropriated funds remained consistent, dropping slightly, with an increase of approximately 50 FTE from externally funded programs, in comparison to the previous year.

Purchases of goods and services similarly increased by approximately $4.6 million in 2018-19. Expenses related to externally funded projects account for $2.97 million of this increase, with citrus canker and the former Rum Jungle mine site being the main contributors. Timing of the geophysical acquisition survey, the Recfishing Futures Program and Hydraulic Fracturing Inquiry Implementation initiative expenses were offset against decreases in other areas of the department’s account for appropriation spending.

Repairs and maintenance decreased, compared to the previous year, by $0.9 million as the reduction in the Berrimah Farm footprint correlated to a decrease in maintenance required.

Other administrative expenses refers to notional goods and services received free of charge from DCIS that increased $0.32 million compared to the previous year, primarily due to the new property leased by the Fisheries Division. Depreciation expense remained on par with the previous year.

Grant expenditure rose by $0.137 million due to the timing of grant programs or different grant initiatives paid in either year’s account for the variance. A full list of grants paid in 2018-19 can be found in Chapter 7 Appendices.

Overall, the department recorded a net deficit of $6.838 million in 2018-19 compared to $2.667 million in 2017-18.

The department’s overall equity position rose by $4 million compared to the prior year. Cash increased significantly due to receipts of Mining Levy held in trust and a cash injection from the Department of Treasury and Finance. Receivables were higher than in the previous year due to collectibles in relation to citrus canker. Depreciation offset by infrastructure works, primarily for research farms and office refurbishments, transferred in during the year is attributed to the overall decrease in property, plant and equipment.

Deposits held refers to amounts held in trust (Note 25) for which the increase is mainly due to collection of mining levies. All other provisions and liabilities remained at similar levels to the previous year.