Department of Sustainability, Environment, Water, Population and Communities

Stakeholder relations

Public affairs

The Public Affairs section supports the department to deliver policies and programs by providing strategic communications advice to business teams and the minister and parliamentary secretary. Effective communications is essential to the successful delivery of the government’s policies and programs.

All communications activities—including media and issues management, advertising, media monitoring, publication development, multimedia, market research, and social media—are managed through the Public Affairs section.

The department is committed to exploring innovative channels to communicate with its stakeholders. The portfolio websites continue to be a primary source of information and traditional media is complemented with the use of social media such as Twitter, YouTube and Facebook.

The department continues to consider environmentally sustainable approaches in the development of all communication products. All printed products, such as booklets, banners, and fact sheets, are produced using paper that complies with international environmental standards. Further information on advertising and marketing expenditure is at Appendix 4.

Online information

The department’s websites are the primary communication tool for its national and global audiences, providing continuous access to services and information.

The department continues to improve access to online information. For example, in August 2012 a major project commenced to build and migrate the majority of its online content into a new content management system (CMS). The CMS will enable the department to more effectively manage its websites, ensuring that it is easier for stakeholders to search for and locate information.

Ministerial and parliamentary services

The Parliamentary Services section manages parliamentary business for the portfolio including the coordination of ministerial correspondence, ministerial briefings, questions on notice and Senate estimates.

The section records, performs quality assurance checks on, and tracks documents flowing between the department and the offices of the minister and parliamentary secretary. The section also provides advice to portfolio line areas on ministerial and parliamentary matters.

In 2012–13 the department prepared 1549 briefing submissions for the minister and the parliamentary secretary.

There were 47 116 items of correspondence received by the minister and the parliamentary secretary and registered on the department’s database. The following table outlines statistics on ministerial correspondence over the past five years.

Table 10: Number of ministerial correspondence items over the past five years

Year	Number of correspondence items
2008–09	19 472
2009–10	26 254
2010–11	11 459
2011–12	15 243
2012–13	47 116

Note:
The minister received large levels of correspondence in 2012–13 regarding a container deposit scheme, the Tarkine region of Tasmania and the proposed Carmichael coal mine in Queensland. Correspondence on these issues largely contributed to the significant increase in correspondence for 2012–13 comparative to previous years.

Community information

The department maintained an in-house Community Information Unit that receives requests for information and feedback on the department’s services. The unit also manages the department’s web-based education centre, the distribution of departmental publications and the publications shopfront.

In 2012–13 the Community Information Unit responded to 16 783 enquiries from the Australian community; 43.4 per cent about grant and funding programs and 56.6 per cent seeking general information about the department and its programs. The unit managed the distribution of 20 770 publications, and 3216 people visited the publications shopfront.

Service charter

The department’s Service Charter 2011–14 sets out the standards of service clients can expect and how to give feedback on performance. The charter is available at: www.environment.gov.au/about/publications/charter.html or in hard copy by contacting the Community Information Unit toll free on 1800 803 772.

The client service officer can be contacted at:

Client Service Officer
Department of the Environment
GPO Box 787 Canberra ACT 2601
Phone: [phone]
Toll free: 1800 803 772
Fax: [phone]
Email: [e-mail]

Inquiries and complaints

The department’s client service officer received 12 enquiries in 2012–13. Of these, four were not related to the department and eight were complaints related to the department’s policies and programs. Requests for information and assistance were forwarded to the appropriate work area for action.

Feedback on performance of service delivery

The department did not receive any feedback about its service delivery standards through the client service officer in 2012–13.

Support for environment, heritage and sustainability organisations

Register of environmental organisations

The Register of Environmental Organisations is a Commonwealth tax deductibility scheme for environmental organisations enabled under the Income Tax Assessment Act 1997. It allows eligible organisations to be endorsed as deductible gift recipients by the Australian Taxation Office.

In order for an organisation to be entered onto the register they must have a principal purpose of either:

• 
  the protection and enhancement of the natural environment or of a significant aspect of the natural environment, or
  
• 
  the provision of information or education, or the carrying on of research, about the natural environment or a significant aspect of the natural environment.
  

During 2012–13 the minister and the assistant treasurer approved the entry of 17 organisations and their public funds onto the register. At 30 June 2013 the register contained over 560 environmental organisations.

During 2011–12 approximately $130 million in donations (the latest information available) were made to deductible gift recipient environmental organisations to assist the protection and enhancement of the natural environment.

International policy advice

In addition to involvement in issue-specific international forums, the department participated in a number of multilateral and regional meetings in 2012–13.

United Nations Environment Programme

The mandate of the United Nations Environment Programme (UNEP) was reinvigorated after the United Nations Conference on Sustainable Development (Rio+20). It is now working to be more widely recognised as the authoritative advocate for the global environment and as setting the global environmental agenda and promoting coherent implementation of the environmental dimension of sustainable development within the United Nations system. The department led Australia’s delegation to the first universal session of UNEP’s Governing Council (since renamed the United Nations Environment Assembly of UNEP) in Nairobi, Kenya, in February 2013. Both the meeting and the associated ministerial-level consultations agreed to implement key recommendations from Rio+20. Further information on the meeting is at: www.unep.org/GC/GC27/Docs/Proceedings/K1350945.pdf.

Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services

The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) was established in April 2012 as a global assessment mechanism designed to bring together, synthesise and analyse biodiversity information for decision making. The department led Australia’s delegation to the first plenary meeting of the platform in Bonn, Germany from 21 to 26 January 2013. Key decisions included election of officers of the bureau and members of the interim Multidisciplinary Expert Panel and agreement on an ambitious intersessional agenda to progress development of the initial work program. A report of the meeting is available at: www.ipbes.net.

East Asia Summit—environment stream

The East Asia Summit (EAS) was established in 2005 as a forum of national leaders for strategic dialogue and action on key challenges facing the region. The department leads Australia’s engagement in the environment stream of the EAS. It represented Australia at the EAS senior officials’ meeting in Siem Reap, Cambodia, in August 2012 and at the third EAS environment ministers’ meeting in Bangkok, Thailand in September 2012. Australian initiatives on environmentally sustainable cities and
climate change adaptation attracted significant support.

East Asia Summit—High-level Seminar on Environmentally Sustainable Cities

The department co-organised (with the governments of Japan, Indonesia, Vietnam and the Republic of Korea) the fourth East Asia Summit High-level Seminar on Environmentally Sustainable Cities from 21 to 22 March 2013 in Hanoi, Vietnam.
Over 200 stakeholders from government, international organisations, non-government organisations, educational institutions and consultants attended to discuss current issues and explore opportunities for collaborative actions. The seminar focused on solid waste management, urban water and sanitation and adaptation and resilience to climate change. A summary of the meeting is available at: www.hls-esc.org.

Free trade agreements

The department works in the bilateral and multilateral trade and environment arena through its input into negotiations of Australia’s free trade agreements. In particular, the department has been involved in negotiations related to the Trans-Pacific Partnership (TPP). The TPP is the government’s highest regional trade negotiation priority. Its parties include Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States of America and Vietnam. While the Department of Foreign Affairs and Trade has the lead on trade agreements, the department provides advice and input on those issues related to its portfolio interests.

Convention on Biological Diversity

Australia participated in the 11th Conference of Parties (COP11) to the Convention on Biological Diversity in Hyderabad, India from 8 to 19 October 2012. The key outcome was a series of commitments to help support states deliver their commitments under the Strategic Plan for Biodiversity 2011 to 2020 and its Aichi targets. Among other things, parties committed by 2015 to: doubling financial flows to developing countries from a variety of sources (not just overseas development aid); including biodiversity in their national priorities or development plans; reporting on domestic biodiversity funding and gaps; and establishing national financial plans for biodiversity.

Annual bilateral discussions on environment with New Zealand

The annual discussions were held in Sydney from 23 to 24 October 2012. The department and the New Zealand Ministry for Environment continue to work closely to progress shared priorities. The next meeting will take place in New Zealand in November 2013.

International Whaling Commission

Australia participated in the 64th annual meeting of the International Whaling Commission in Panama in July 2012. Overall, the meeting was successful in advancing Australia’s commission-endorsed conservation and governance reform objectives. The outcomes will result in a greater focus on cetacean (whale, dolphin and porpoise) conservation and improve the transparency and accountability of the commission in line with best practice approaches in other intergovernmental organisations.

Pacific Regional Environment Program

The department led Australia’s delegation to the 23rd annual South Pacific Regional Environment Programme meeting in Noumea, New Caledonia in September 2012. The meeting noted many major commitments to better protect and manage the Pacific Ocean, adopted a series of Marine Species Action Plans and, in recognising the increasing problems of waste and pollution, endorsed the Pacific Regional E-waste strategy and action plan.

Convention on International Trade in Endangered Species of Wild Fauna and Flora

The department led Australia’s delegation to the 16th meeting of the Conference of the Parties (CoP16) to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) in Bangkok, Thailand from 3 to 14 March 2013. Key outcomes included the adoption of several significant decisions to improve the regulation of trade in marine species, including the Appendix II listing of five shark and two manta ray species; 83 amendments to Appendices I and II, including the delisting of eight endemic Australian species (seven extinct species and one invalid taxon) and the transfer of the freshwater sawfish from Appendix II to Appendix I; 11 changes to species annotations; and unprecedented support for addressing illegal wildlife trade. Further information on the meeting is available at: www.cites.org/eng/cop/index.php.

The department also represented the Oceania region at the 62nd, 63rd and 64th meetings of the CITES Standing Committee (Geneva, Switzerland, 23 to 27 July 2012; and Bangkok, Thailand, 2 and 14 March 2013). Key outcomes of the meetings included the adoption of actions to address the escalating illegal trade in elephant ivory and rhinoceros horn. Further information on the meetings is available at: www.cites.org/eng/com/sc/index.php.

Procurement

Purchasing

The department’s procurement guidelines are set out in the Chief Executive Instructions. They comply with the Commonwealth Procurement Rules, which are underpinned by the core principle of value for money. The department advertises tender opportunities through the AusTender website. The department’s Annual Procurement Plan for 2012–13 was published in June 2012 on AusTender and updated throughout the year. The Annual Procurement Plan for 2013–14 was published on AusTender in June 2013.

Reporting

The department met the requirement to report on the AusTender website all contracts entered into in 2012–13 with a value of $10 000 or more. The department met the requirement to report on the Senate Order on Departmental and Agency Contracts.

Consultancy services

During 2012–13, 99 new consultancy contracts were entered into involving total actual expenditure of $7.82 million. In addition, 36 ongoing consultancy contracts were active during the 2012–13 year, involving total actual expenditure of $3.06 million. Information on contracts and consultancies is available through the AusTender website.

Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website at: www.tenders.gov.au.

The department engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice, information or creative solutions to assist in the department’s decision making.

Prior to engaging consultants, the department takes into account the skills

and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the Financial Management and Accountability Act 1997 and related regulations including the Commonwealth Procurement Rules and relevant internal policies.

Exempt contracts

During 2012–13 there were no standing offers or contracts in excess of $10 000 (inclusive of GST) exempted by the chief executive from being published on AusTender under the Freedom of Information Act 1982.

Australian National Audit Office access clauses

During 2012–13 there were no standing offers or contracts in excess of $100 000 (inclusive of GST) that did not provide for the Auditor-General to have access to the contractor’s premises.

Economic indicators

The following tables summarise economic indicators for the department. The first relates to departmental funds and the other relates to administered funds.

Table 11: Departmental funds

Indicator	2012–13	2011–12	Change (%)^1
	$000	$000
Operating statement
Total expenses^1	589 636	686 320	(14%)
Total own-source income^1	110 781	91 273	21%
Net cost of service	478 855	595 047	(20%)
Economic viability
Total assets^2	498 403	510 359	(2%)
Total liabilities^2	529 894	552 465	(4%)

Notes:

1. Refer to the Financial performance of departmental activities for further information on the variation.

2. The department ended the year with total liabilities exceeding total assets. This does not make the department insolvent and has no bearing on whether the department’s debts will be paid, as the department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the department’s debts. Further detail is provided in the department’s 2012–13 financial statements at Note 1.22.

Table 12: Administered funds

Indicator	2012–13	2011–12	Change (%)^3, 4
	$000	$000
Operating statement
Total expenses	968 199	888 298	9%
Total own-source income^3	161 766	78 293	107%
Net cost of service	806 433	810 005	(0.4%)
Economic viability
Total assets	2 993 130	3 044 922	(2%)
Total liabilities^4	30 224	42 049	(28%)

Notes:

3. Refer to the Financial performance of administered activities for further information on the variation.

4. Refer to the Administered financial position for further information on the variation.

Financial performance

This section highlights the department’s financial performance during 2012–13 for both departmental and administered activities.

Financial performance of departmental activities

The department’s departmental financial performance for 2012–13 is summarised in the table below. Departmental resourcing includes assets, liabilities, revenues and expenses that the department controls directly and uses to produce outcomes on behalf of the Government.

Table 13: Departmental financial performance

Departmental		2012–13 Actuals	2011–12 Actuals	Variance
		$000	$000	$000
Outcome 1	Income	151 326	140 433	10 893
	Expenses	151 845	143 791	8054
	Surplus/(deficit)	(519)	(3358)	2839
Outcome 2	Income	53 939	49 893	4046
	Expenses	56 383	51 149	5234
	Surplus/(deficit)	(2444)	(1256)	(1188)
Outcome 3	Income	147 291	132 182	15 109
	Expenses	185 027	246 005	(60 978)
	Surplus/(deficit)	(37 736)	(113 823)	76 087
Outcome 4	Income	84 766	114 684	(29 918)
	Expenses	81 142	115 335	(34 193)
	Surplus/(deficit)	3624	(651)	4275
Outcome 5	Income	95 439	100 708	(5269)
	Expenses	102 583	108 919	(6336)
	Surplus/(deficit)	(7144)	(8211)	1067
Outcome 6	Income	12 925	19 624	(6699)
	Expenses	12 656	21 121	(8465)
	Surplus/(deficit)	269	(1497)	1766
Total departmental	Income	545 686	557 524	(11 838)
	Expenses	589 636	686 320	(96 684)
	Surplus/(deficit)	(43 950)	(128 796)	84 846

Notes:

2012–13 Actuals Actual income and expenses for 2012–13

2011–12 Actuals Actual income and expenses for 2011–12
Variance The difference between the actual results for 2012–13 and 2011–12
(i.e. 2012–13 Actuals minus 2011–12 Actuals)
Table 14: Comparison of departmental financial performance with previous year

Outcome		Expenses
Outcome 1	Income increased in 2012–13 by $10.89 million mainly due to: An increase of $38.49 million in funding to support the Sustainable Management of Natural Resources and the Environment program. A decrease of $27.06 million in funding for the Environmental Information and Research program. A decrease of $2.11 million in funding for the Carbon Pollution Reduction – Land Sector Initiatives program.	Expenses increased in 2012–13 by $8.05 million mainly due to: An increase of $2.53 million for payments relating to the department’s voluntary redundancy program. An increase of $2.39 million for the whale and marine mammal research program being conducted in liaison with the Australian Antarctic Division. An increase of $1.52 million in depreciation and amortisation charges.
Outcome 2	Income increased in 2012–13 by $4.05 million mainly due to: An increase of $2.48 million for the Equivalent Carbon Price Program and the Ozone Depleting Substances and Synthetic Greenhouse Gas Destruction Program. An increase in funding of $1.59 million to support the Sustainable Communities program. An increase of $5.16 million in relation to the operation of the Ozone Protection and Synthetic Greenhouse Gas Special Account. A $4.31 million reduction in income following the transfer of the Housing Supply and Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011.	Expenses increased by $5.23 million in 2012–13 mainly due to: A $5.16 million increase in employee expenses relating to the Sustainability Communities Program, the Equivalent Carbon Price Program and the Ozone Depleting Substances and Synthetic Greenhouse Gas Destruction Program. An increase of $4.42 million in support of the national air pollutant emission reduction strategies. A $4.3 million reduction in expenses following the transfer of the Housing Supply and Affordability function to the Department of Families, Housing, Community Services and Indigenous Affairs and the Department of the Treasury due to a restructuring of administrative arrangements on 14 December 2011.
Outcome 3	Income increased in 2012–13 by $15.11 million mainly due to: A $6.29 million increase in revenue from air charter services provided by the Australian Antarctic Division. $5.15 million contract settlement. A $1.25 million increase in revenue for scientific activities conducted by the AAD on behalf of and in conjunction with other organisations. A $3.27 million gain resulting from the decrease in the Antarctic restitution obligation provisions, following the increase in the 10 year Australian Government bond rate, which is used to discount the provision for accounting purposes.	Expenses decreased in 2012–13 by $60.98 million mainly due to: The net decrease in expenses relating to the Antarctic restitution obligations. The expense fell by $54.58 million, reflecting the changes to the 10 year Australian Government bond rate, which is used to discount the provision for accounting purposes. A $14.35 million decrease in costs associated with the early termination of a contract in the 2011–12 financial year. A $6.33 million increase in operational costs associated with an increase in air charter services provided. A $3.65 million increase in costs to extend the life of the aging resupply ship, the Aurora Australis.
Outcome 4	Income decreased in 2012–13 by $29.92 million mainly due to: The reclassification of the Commonwealth’s contribution of $18.74 million to the Murray–Darling Basin Authority, as administered funding. A decrease of $7.83 million in funding for the Office of Water Science. A decrease of $2.65 million in funding for the Water Reform program.	Expenses decreased in 2012–13 by $34.19 million mainly due to: The reclassification of the Commonwealth’s contribution of $18.74 million to the Murray–Darling Basin Authority, as administered funding. A $10.73 million decrease in costs associated with the Office of Water Science. The 2011–12 result included the costs of establishing the Office. A $5.95 million decrease in operational costs due to savings measures.
Outcome 5	Income decreased in 2012–13 by $5.27 million due to: A decrease of $3.56 million in funding for the Environment Protection and Heritage Conservation programs. A decrease of $1.83 million in revenue relating primarily to work on the Kokoda Initiative.	Expenses decreased in 2012–13 by $6.34 million mainly due to reduced funding and cost saving activities for the Environment Protection and Heritage Conservation programs.
Outcome 6	Income decreased in 2012–13 by $6.70 million mainly due to decreased funding for the Commonwealth Environmental Water Office.	Expenses decreased in 2012–13 by $8.47 million primarily as a result of the decreased funding for the Commonwealth Environmental Water Office and other cost saving activities.

Financial performance of administered activities

The financial performance of the department’s administered activities for 2012–13 is summarised in the table below. Administered items are assets, liabilities, revenues and expenses that are controlled by the Government but managed or overseen by the department on behalf of the Government.

Table 15: Administered financial performance

Administered		2012–13 Actuals	2011–12 Actuals	Variance
		$000	$000	$000
Outcome 1	Income	1041	877	164
	Expenses	306 971	316 024	(9 053)
	Surplus/(deficit)	(305 930)	(315 147)	9 217
Outcome 2	Income	110 537	12 062	98 475
	Expenses	25 011	89 692	(64 681)
	Surplus/(deficit)	85 526	(77 630)	163 156
Outcome 3	Income	0	0	0
	Expenses	12	12	0
	Surplus/(deficit)	(12)	(12)
Outcome 4	Income	49 888	64 794	(14 906)
	Expenses	608 639	460 945	147 694
	Surplus/(deficit)	(558 751)	(396 151)	(162 600)
Outcome 5	Income	300	560	(260)
	Expenses	12 140	12 612	(472)
	Surplus/(deficit)	(11 840)	(12 052)	212
Outcome 6	Income	0	0	0
	Expenses	15 426	9013	6413
	Surplus/(deficit)	(15 426)	(9013)	(6413)
Total administered	Income	161 766	78 293	83 473
	Expenses	968 199	888 298	79 901
	Surplus/(deficit)	(806 433)	(810 005)	3 572

Notes:

2012–13 Actuals Actual income and expenses for 2012–13

2011–12 Actuals Actual income and expenses for 2011–12
Variance
The difference between the actual results for 2012–13 and 2011–12
(i.e. 2012–13 Actuals minus 2011–12 Actuals)
Table 16: Comparison of administered financial performance with previous year

Outcome	Income	Expenses
Outcome 1	The small increase in income of $0.17 million in 2012–13 related mainly to the Caring for our Country initiative.	The decrease by $9.05 million in expenses in 2012–13 was the net result of the movement in several grant programs including: A decrease of $23.19 million under the Caring for our Country Programs. A decrease of $10.74 million under the Biodiversity Fund. A decrease of $2.62 million under the Environmental Stewardship Program. An increase of $18.16 million under the Tasmanian Forests Intergovernmental Agreement. An increase of $2.13 million for the Community Infrastructure Grants – Cumberland Plains program. An increase of $1.28 million for the Indigenous Carbon Farming Fund. An increase of $1.51 million for the National Wildlife Corridor Plan. An increase of $3.74 million for the Regional Natural Resources Management Planning for Climate Change initiative.
Outcome 2	The increase by $98.48 million in income in 2012–13 was primarily the result of the imposition of Carbon Charges prescribed by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislation which commenced on 1 July 2012.	The decrease of $64.68 million in expenses in 2012–13 was primarily the result of: A decrease of $79.24 million relating to the Housing Affordability Fund following the transfer of the function to the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) on the restructure of administrative arrangements on 14 December 2011. An increase of $5.59 million in expenditure from the Ozone Protection and Synthetic Greenhouse Gas special account. An increase of $8.74 million for the Suburban Jobs Program to support local jobs.
Outcome 3	Not applicable.	This item represents depreciation of the Antarctic Heritage Collection.
Outcome 4	The decrease by $14.91 million in income in 2012–13 was primarily the result of: An increase of $19.54 million relating to water entitlements received under the Sustainable Rural Water Use and Infrastructure Program. A decrease of $23.62 million relating to the change in the Commonwealth Government’s interest in the River Murray Operations Joint Venture. A decrease of $5.31 million for the Water Smart Australia initiative. A decrease of $4.21 million for the Living Murray Initiative. A decrease of $1.61 million for the Water Efficiency and Labelling Standards Account.	The increase by $147.69 million in expenses in 2012–13 was primarily the result of: An increase of $225.43 million for the Restoring the Balance in the Basin initiative. The Commonwealth’s contribution of $19.32 million to the Murray–Darling Basin Authority which was previously classified as departmental funding. A decrease of $34.35 million for the National Water Security Plan – Cities and Towns initiative. A decrease of $12.71 million for the Sustainable Rural Water Use and Infrastructure Program. A decrease of $24.62 million for the National Urban Water and Desalination Plan. A decrease of $16.19 million for the Water Smart Australia initiative. The cessation of funding for the Murray Environmental Flows initiative resulting in a decrease of $7.50 million and the Green Precincts initiative resulting in a decrease of $2.43 million.
Outcome 5	There was a small net decrease of $0.26 million in income in 2012–13, following small declines in fees relating to the Indigenous Heritage program $0.22 million and the National Historic Sites Program $0.11 million, partially offset by an increase in Environmental Regulation fees and penalties of $0.11 million.	The decrease in expenses of $0.472 million in 2012–13 was primarily the result of : A decrease in expenditure of $1.7 million under National Historic Sites Program. An increase of $0.86 million in Community Heritage Grants. Increased expenditure of $0.36 million under the Sustainable Australia Regional Development initiative.
Outcome 6	There was no revenue recorded against Outcome 6 in 2012–13.	The increase of $6.41 million in 2012–13 represents the increase in expenditure from the Commonwealth Environmental Water Holder special account, used to manage the Commonwealth’s environmental water holdings.

Financial position

Table 17: Departments’ financial position

	2012–13	2011–12	Variance
	$000	$000	$000
Total assets	498 403	510 359	(11 956)
Total liabilities	529 894	552 465	(22 571)
Total equity	(31 491)	(42 106)	10 615

Total assets

During 2012–13 the total asset base controlled by the department, decreased by $12.0 million to $498.4 million. The decrease is mainly attributable to depreciation on buildings, property, plant and equipment.

Total liabilities

Total liabilities managed by the department decreased by $22.6 million during 2012–13 to $529.9 million as at 30 June 2013. This is mainly due to the change in the long term discount rates used to calculate the department’s provisions.

Total equity

The department ended the year with total liabilities exceeding total assets, primarily as a result of changes in provisions. This is reflected in the shortfall in total equity of $31.5 million. This does not make the department insolvent and has no bearing on whether the department’s debts will be paid, as the department is part of the legal entity that is the Australian Government, which is ultimately responsible for all the department’s debts. Further detail is provided in the department’s 2012–13 financial statements at Note 1.22.

Asset management

The department’s assets are located throughout Australia, with the majority located in the Australian Antarctic Territory and managed by the Australian Antarctic Division. The Australian Antarctic Division manages and maintains Australia’s Antarctic stations, Casey, Davis and Mawson and a research station on sub-Antarctic Macquarie Island. The Australian Antarctic Division has in place an asset management plan for each station.

Table 18: Administered schedule of assets and liabilities

	2012–13	2011–12	Variance
	$000	$000	$000
Total assets	2 993 130	3 044 922	(51 792)
Total liabilities	30 224	42 049	(11 825)

Total assets

The assets administered on behalf of the Australian Government consist primarily of water entitlements held to achieve the government’s environmental policy objectives, the Australian Government’s interest in the net assets of the Director of National Parks (DNP) and the Sydney Harbour Federation Trust (SHFT) and the Australian Government’s share of the jointly controlled assets held in the River Murray Operations (RMO) and Living Murray Initiative (LMI) joint ventures.

In addition to the purchase of water entitlements by the department on behalf of the Australian Government, water entitlements have been acquired under the Federal Financial Relations (FFR) Framework, in accordance with the terms and conditions of payments made by the Treasury for the National Partnership on Water for the Future. Water entitlements have also been acquired as a result of water savings from projects funded to improve the efficiency of water use, under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP).

During 2012–13 the total asset base administered by the department, decreased by $51.8 million to $2,993.1 million. The value of water entitlements was impaired by $343.3 million, reflecting the lower market prices since the time of acquisition, as evidenced by state government water trading registers. Water entitlements of
$269.0 million were acquired during the year. Taxation receivable increased by $22.8 million following the imposition of Carbon Charges prescribed by the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 and associated legislation. Remaining variations relate to movements in the recorded values of DNP, SHFT and RMO and in operational trade and other receivables.

Total liabilities

Total liabilities administered by the department, consisting of suppliers and grants payable, decreased by $11.8 million during 2012–13, to $30.2 million as at 30 June 2013, consistent with the status of grant activity.

Asset management

The department’s water holdings are recorded on the respective state government water trading registers and being classified as indefinite life intangible assets, are subject to annual impairment testing in accordance with Australian Accounting Standards Board (AASB) 138 Intangible Assets.

Spatial reporting

Table 19 provides a summary of expenditure by program disaggregated between regional Australia, non-regional and non-specific location for the 2012–13 annual actual expenses for the Sustainability, Environment, Water, Population and Communities portfolio.

Table 19: 2012–13 Expenditure disaggregated for Sustainability, Environment, Water, Population and Communities Portfolio

Program	Category	Budget	Actual
		Estimate^1	Expenses^1
		2012–13	2012–13	Variation
		$m	$m	$m
		(a)	(b)	(a-b)
Department of Sustainability, Environment, Water, Population and Communities
Program 1.1 – Sustainable Management of Natural Resources and the Environment^2	Regional	215	175	40^3
	Non-regional	-	78	(78)^3
	Non-specific	39	-	39^3
Program 1.3 – Carbon Pollution Reduction - Land Sector Initiatives^4	Regional	34	17	17^5
	Non-regional	-	8	(8)^5
	Non-specific	-	-	-
Program 4.1 – Water Reform^6	Regional	520	403	117^7
	Non-regional	63	101	(38)^7
	Non-specific	36	-	36^7
Other programs	Regional	37	32	5
	Non-regional	35	48	(13)
	Non-specific	20		20
Total – Department of Sustainability, Environment, Water, Population and Communities	Regional	806	627	179
	Non-regional	98	235	(137)
	Non-specific	95	-	95
Total – Sustainability, Environment, Water, Population and Communities Portfolio	Regional	806	627	179
	Non-regional	98	235	(137)
	Non-specific	95	-	95

1. Budget Estimates used for spatial reporting were derived from the 2012–13 Portfolio Budget Statements for the Sustainability, Environment, Water, Population and Communications Portfolio. Actual expenses for 2012–13 have been geospatially categorised and disclosed appropriately. Actual expenditure is subject to a competitive selection process. In addition, actual payments may be made to an administrative site before being distributed more widely around Australia. The classification between regional and non-regional locations, therefore result in offsetting variations between budget and actual expenditure.

2. This includes Caring for our Country, Working on Country and the Environmental Stewardship Program.

3. Refer to footnote 1 as above. The overall net effect of the variation is immaterial.

4. This does not include the Department of Agriculture, Fisheries and Forestry’s Landcare component of the Caring for our Country program.

5. Refer to footnote 1 as above. The overall net effect of the variation is not material.

6. The Water Reform include the expenditure for water entitlement purchases.

7. Refer to footnote 1 as above. The variation is primarily due to the capitalisation of water entitlements acquired under the Sustainable Rural Water Use and Infrastructure Program (SRWUIP). As part of the SRWUIP funding arrangement, the Australian Government acquires a share of the water saving in the form of a water entitlement, for use in delivering the government’s environmental watering objectives. The value of these water entitlements are offset against the SRWUIP grant expenses.