2011-2012

National Health and Medical Research Council

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National Health and Medical Research Council

Section 1: Agency Overview and Resources

1.1 Strategic Direction

The National 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 Research Council 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 Financial Management and Accountability Act (1997).

Agency Outcomes:

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 for ethics in health and the promotion of public health.

1.2 Agency Resource Statement

The Agency Resource Statement details the resourcing for the National Health and Medical Research Council at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2011-12 Budget year, including variations through Appropriation Bills No.3 and No.4, special appropriations and special accounts. Top of page

Table 1.1: National Health and Medical Research Council resource statement — Additional estimates for 2011-12 as at Additional Estimates February 2012

	Estimate as at budget 2011-12 $'000	Proposed additional estimates 2011-12 $'000	Total estimate at AEs 2011-12 $'000	Total available appropriation 2010-11 $'000
Ordinary annual services
Departmental appropriation
Prior year departmental appropriation1,2	18,935	-	18,935	19,527
Departmental appropriation3,4	41,630	-	41,630	39,385
s31 Relevant agency receipts	3,150	-	3,150	2,969
Total	63,715	-	63,715	61,881
Administered resources3
Outcome 1	756,891	-	756,891	715,479
Total	756,891	-	756,891	715,479
Total ordinary annual services	820,606	-	820,606	777,360
Other services5
Departmental non-operating
Equity injections	-	-	-	350
Total	-	-	-	350
Total other services	-	-	-	350
Total available annual appropriations	820,606	-	820,606	777,710
Total appropriations excluding Special Accounts	820,606	-	820,606	777,710
Special Accounts
Opening balance3,6	314,463	-	314,463	325,816
Appropriation receipts	746,075	-	746,075	715,479
Non-appropriation receipts to Special Accounts	11,000	-	11,000	27,352
Total Special Accounts	1,071,538	-	1,071,538	1,068,647
Total resourcing	1,892,144	-	1,892,144	1,846,357
Less appropriations drawn from annual or special appropriations above and credited to Special Accounts and/or CAC Act bodies through annual appropriations	(746,075)	-	(746,075)	(715,479)
Total net resourcing for NHMRC	1,146,069	-	1,146,069	1,130,878

1 - Estimated adjusted balance carried from previous year for annual appropriations.
2 - The estimate at Budget has been revised to reflect the 2010-11 Annual Report.
3 - Appropriation Bill (No.1 & 3) 2011-12.
4 - Includes an amount of $0.100m in 2011-12 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'.
5 - Appropriation Bill (No.2 & 4) 2011-12.
6 - For further information on special accounts see Table 3.1.1.

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1.3 Agency Measures Table

Table 1.2 summarises new Government measures taken since the 2011-12 Budget.

Table 1.2: Agency 2011-12 Measures since Budget

	Program	2011-12 $'000	2012-13 $'000	2013-14 $'000	2014-15 $'000
Other Portfolio Measures1
Hendra virus research- support (Department of Agriculture, Fisheries and Forestry)National Health and Medical Research Council
Departmental expenses	1.1	-	-	-	-
Total		-	-	-	-

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1 - NHMRC is not the lead agency for this measure. The full measure description and package details appear in the 2011-12 MYEFO.

1.4 Additional Estimates and Variations

The following tables detail the changes to the resourcing for the National Health and Medical Research Council at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2011-12 Budget in Appropriation Bills No.3 and No.4. Table 1.4 details Additional Estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2011-12 Budget

This table is not applicable to NHMRC.

Table 1.4: Additional estimates and variations to outcomes from other variations

	2011-12 $'000	2012-13 $'000	2013-14 $'000	2014-15 $'000
Program 1.1: Health and medical research
Changes to administered appropriations
Appropriation Bill No. 3
Price parameter adjustments1	-	758	772	-
	-	758	772	-
Changes to departmental appropriations
Appropriation Bill No. 3
Price parameter adjustments1	-	40	80	40
Efficiency dividend adjustments1		(1,058)	(1,063)	(1,099)
	-	(1,018)	(983)	(1,059)

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1 - See explanation in glossary.

1.5 Breakdown of Additional Estimates by Appropriation Bill

The following tables detail the Additional Estimates sought for the National Health and Medical Research Council through Appropriation Bills No.3 and No.4.

Table 1.5: Appropriation Bill (No. 3) 2011-12

	2010-11 Available $'000	2011-12 Budget $'000	2011-12 Revised $'000	Additional estimates $'000	Reduced estimates $'000
Administered Items
Outcome 1
Health and medical research	715,479	756,891	756,891	-	-
Departmental Items
Outcome 1
Health and medical research	39,385	41,630	41,630	-	-
Total Appropriation Bill No. 3 (Administered and Departmental)	754,864	798,521	798,521	-	-

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Section 2: Revisions to Agency Resources and Planned Performance

2.1 Resources and Performance Information

The National Health and Medical Research Council works to achieve one outcome specified by government. There have been no changes to the performance information since the 2011-12 Health and Ageing Budget Statements (PBS). Refer to page 703 of the PBS for current performance information.

Table 2.1: Budgeted Expenses and Resources for Outcome 1

	2010-11 Actuals $'000	2011-12 Revised Budget $'000	2012-13 Forward year 1 $'000	2013-14 Forward year 2 $'000	2014-15 Forward year 3 $'000
Program 1.1: Health and medical research
Administered expenses
Ordinary annual services	715,479	756,891	772,981	786,987	801,929
to the Medical Research Endowment Account	(715,479)	(746,075)	(761,957)	(775,748)	(790,508)
Special accounts
Medical Research Endowment Account	752,710	804,472	835,308	858,073	857,415
Departmental expenses
Departmental appropriation1	44,680	44,680	43,624	43,841	44,178
Expenses not requiring appropriation in the budget year2	1,792	1,901	1,901	1,901	1,901
Operating deficit (surplus)	1,400	1,400	1,400	1,400	1,400
Total for Program 1.1	797,437	863,269	893,257	916,454	916,315

1 - Departmental appropriation combines 'Ordinary annual services (Appropriation Bill No 1)' and 'Revenue from independent sources (s31)'.
2 - 'Expenses not requiring appropriation in the Budget year' is made up of depreciation expense, amortisation expense, make good expense and audit fees.

	Budget 2011-12	Revised 2011-12
Average staffing level (number)	220	220

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Section 3: Explanatory Tables and Budgeted Financial Statements

3.1 Explanatory Tables

Estimates of special account flows

Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the National Health and Medical Research Council. The corresponding table in the 2011-12 PB Statements is Table 3.1.1.

Table 3.1.1: Estimates of special account flows

	Outcome	Opening balance 2011-12 2010-11 $'000	Appropriation receipts 2011-12 2010-11 $'000	Other receipts 2011-12 2010-11 $'000	Payments 2011-12 2010-11 $'000	Closing balance 2011-12 2010-11 $'000
Medical Research	1	314,463	746,075	51,000	844,472	267,066
Endowment Account1(A)		325,816	715,479	27,352	754,184	314,463
Total Special Accounts
2011-12 Estimate		314,463	746,075	51,000	844,472	267,066
Total Special Accounts
2010-11 actual		325,816	715,479	27,352	754,184	314,463

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(A) = Administered.
1 - National Health and Medical Research Council Act 1992 - s21 FMA Act.

3.2 Budgeted Financial Statements

An analysis of the major changes to the department’s budgeted financial statements compared to the Portfolio Budget Statement (PBS) is outlined below.

Departmental financial statements

Comprehensive Income Statement

Revenue from Government is expected to remain at $41.530 million for 2011-12. The Departmental Capital appropriation will remain at $0.100 million for 2011-12.

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 over the forward estimates.

Table 3.2.1: Budgeted departmental Comprehensive Income Statement (Showing Net Cost of Services) for the period ended 30 June

	Actual 2010-11 $'000	Revised budget 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Expenses
Employee benefits	23,527	24,032	23,983	24,070	24,543
Supplier	19,272	22,148	21,141	21,271	21,135
Depreciation and amortisation	1,639	1,801	1,801	1,801	1,801
Other	289	-	-	-	-
Total expenses	44,727	47,981	46,925	47,142	47,479
LESS: OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services	2,969	3,150	3,150	3,150	3,150
Total revenue	2,969	3,150	3,150	3,150	3,150
Gains
Other gains	153	100	100	100	100
Total gains	153	100	100	100	100
Total own-source income	3,122	3,250	3,250	3,250	3,250
Net cost of (contribution by) services	41,605	44,731	43,675	43,892	44,229
Revenue from Government	39,385	41,530	40,474	40,691	41,028
Surplus (Deficit)	(2,220)	(3,201)	(3,201)	(3,201)	(3,201)
Surplus (Deficit) attributable to the Australian Government	(2,220)	(3,201)	(3,201)	(3,201)	(3,201)
Other Ccomprehensive Income
Changes in asset revaluation
reserves	-	-	-	-	-
Total other comprehensive
income	-	-	-	-	-
Total comprehensive income attributable to the Australian Government	(2,220)	(3,201)	(3,201)	(3,201)	(3,201)
Note: Reconciliation of comprehensive income attributable to the agency
Total comprehensive income (loss) attributable to the Australian Government	(2,220)	(3,201)	(3,201)	(3,201)	(3,201)
plus non-appropriated expenses depreciation and amortisation expenses	1,639	1,801	1,801	1,801	1,801
Total comprehensive income (loss) attributable to the agency	(581)	(1,400)	(1,400)	(1,400)	(1,400)

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

	Actual 2010-11 $'000	Revised budget 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Assets
Financial assets
Cash and cash equivalents	279	279	279	279	279
Receivables	19,913	16,930	15,430	13,930	13,930
Total financial assets	20,192	17,209	15,709	14,209	14,209
Non-financial assets
Property, plant and equipment	6,477	5,453	4,350	3,246	2,142
Inventories	400	400	400	400	400
Intangibles	4,745	5,651	5,134	4,619	4,109
Other	90	90	90	90	90
Total non-financial assets	11,712	11,594	9,974	8,355	6,741
Total assets	31,904	28,803	25,683	22,564	20,950
Liabilities
Payables
Suppliers	4,514	4,514	4,514	4,514	4,514
Other payables	3,611	2,857	2,857	2,857	2,857
Total payables	8,125	7,371	7,371	7,371	7,371
Provisions
Employees	4,533	5,287	5,287	5,287	5,287
Other provisions	485	485	485	485	485
Total provisions	5,018	5,772	5,772	5,772	5,772
Total liabilities	13,143	13,143	13,143	13,143	13,143
Net Assets	18,761	15,660	12,540	9,421	7,807
Equity
Contributed equity	5,194	5,294	5,375	5,457	5,644
Retained surpluses or accumulated deficits	13,567	10,366	7,165	3,964	2,163
Total equity	18,761	15,660	12,540	9,421	7,807

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Table 3.2.3: Departmental statement of changes in equity — summary of movement (2011-12)

	Retained earnings $'000	Asset revaluation reserve $'000	Other reserves $'000	Contributed equity/ capital $'000	Total equity $'000
Opening balance as at 1 July 2011
Balance carried forward from previous period	13,567	-	-	5,194	18,761
Surplus (deficit) for the period	(3,201)	-	-	-	(3,201)
Appropriation (equity injection)	-	-	-	-	-
Capital budget - Bill 1 (DCB)1	-	-	-	100	100
Estimated closing balance as at 30 June 2012	10,366	-	-	5,294	15,660

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1 - DCB = Departmental Capital Budgets.

Table 3.2.4: Budgeted departmental statement of cash flows for the period ended 30 June

	Actual 2010-11 $'000	Revised budget 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Operating Activities
Cash received
Goods and services	3,944	3,150	3,150	3,150	3,150
Appropriations	39,820	45,406	42,875	42,092	41,028
Net GST received	1,170	1,500	1,500	1,500	1,500
Total cash received	44,934	50,056	47,525	46,742	45,678
Cash used
Employees	23,178	26,138	25,907	24,070	24,543
Suppliers	20,634	22,335	21,518	22,572	21,135
Total cash used	43,812	48,473	47,425	46,642	45,678
Net cash from (or used by) operating activities	1,122	1,583	100	100	-
Investing Activities
Cash used
Purchase of property, plant and equipment	1,629	1,683	181	182	187
Total cash used	1,629	1,683	181	182	187
Net cash from (or used by) investing activities	(1,629)	(1,683)	(181)	(182)	(187)
Financing Activities
Cash received
Appropriations - contributed equity	350	100	81	82	187
Total cash received	350	100	81	82	187
Net cash from (or used by) financing activities	350	100	81	82	187
Net increase (or decrease) in cash held	(157)	-	-	-	-
Cash and cash equivalents at the beginning of the reporting period	436	279	279	279	279
Cash and cash equivalents at the end of the reporting period	279	279	279	279	279

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Table 3.2.5: Capital Budget Statement — Departmental

	Actual 2010-11 $'000	Revised budget 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Capital Appropriations
Capital budget - Bill 1 (DCB)	-	100	81	82	187
Equity injections - Bill 2	350	-	-	-	-
Total capital appropriations	350	100	81	82	187
Total new capital appropriations represented by:
Purchase of non-financial assets	350	100	81	82	187
Total items	350	100	81	82	187
Purchase of non-financial assets
Funded by capital appropriations	350	-	-	-	-
Funded by capital appropriation - DCB1	-	100	81	82	187
Funded internally from Departmental resources	1,279	1,583	100	100	-
Total acquisitions of non-financial assets	1,629	1,683	181	182	187
Reconciliation of cash used to acquire assets to asset movement table
Total purchases	1,629	1,683	181	182	187
Total cash used to acquire assets	1,629	1,683	181	182	187

1 - Departmental Capital Budgets (DCB).

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Table 3.2.6: Statement of Asset Movements (2011-12)

	Buildings $'000	Other property plant & equipment $'000	Intangibles $'000	Total $'000
As at 1 July 2011
Gross book value	-	8,435	6,574	15,009
Accumulated depreciation/amortisation and impairment	-	1,958	1,829	3,787
Opening net book balance	-	6,477	4,745	11,222
Capital Asset Additions
Estimated expenditure on new or replacement assets
By purchase - appropriation equity	-	-	100	100
By purchase - appropriation ordinary annual services	-	80	1,503	1,583
Sub-total	-	80	1,603	1,683
Other movements
Depreciation/amortisation expense	-	1,104	697	1,801
Disposals	-	-	-	-
Other	-	-	-	-
As at 30 June 2012
Gross book value	-	8,515	8,177	16,692
Accumulated depreciation/amortisation and impairment	-	3,062	2,526	5,588
Closing net book balance	-	5,453	5,651	11,104

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Schedule of Administered Activity

Income

The Administered accounts are used as a mechanism to move most of the funds to NHMRC’s Special Account (Medical Research Endowment Account) apart from $10.816 million funding related to the transferred programs (2011-12 PBS). Expenditure estimates for the Medical Research Endowment Account have increased slightly compared to the 2011-12 PBS (from $791,141 million to $804,472 million), largely due to growth in the value of grant announcements.

Expenditure in 2011-12 and forward estimates is expected to be greater than the Administered appropriations and funds will be drawn down from the Medical Research Endowment Account.

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

	Actual 2010-11 $'000	Budget estimate 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Income Administered on Behalf of Government
Recoveries	6,499	7,000	5,000	5,000	5,000
Other non-tax revenue	20,853	4,000	1,800	1,300	500
Total income administered on behalf of Government	27,352	11,000	6,800	6,300	5,500
Expenses Administered on Behalf of Government
Grants - MREA	752,710	804,472	835,308	858,073	857,415
Grants - other	-	10,816	11,024	11,239	11,421
Total expenses administered on behalf of Government	752,710	815,288	846,332	869,312	868,836

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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

	Actual 2010-11 $'000	Budget estimate 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Assets Administered on Behalf of Government
Financial assets
Cash and cash equivalents	2,812	2,812	2,812	2,812	2,812
Receivables	3,721	4,196	4,196	4,196	4,196
Total financial assets	6,533	7,008	7,008	7,008	7,008
Total assets administered on behalf of Government	6,533	7,008	7,008	7,008	7,008
Liabilities Administered on Behalf of Government
Payables
Grants	11,783	11,783	11,783	11,783	11,783
Total payables	11,783	11,783	11,783	11,783	11,783
Total liabilities administered on behalf of Government	11,783	11,783	11,783	11,783	11,783

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Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

	Actual 2010-11 $'000	Budget estimate 2011-12 $'000	Forward estimate 2012-13 $'000	Forward estimate 2013-14 $'000	Forward estimate 2014-15 $'000
Operating Activities
Cash received
Sales of goods and services	28,793	11,000	6,800	6,300	5,500
Net GST received	37,325	40,000	40,000	40,000	40,000
Total cash received	66,118	51,000	46,800	46,300	45,500
Cash used
Grant payments - MREA	754,184	804,472	835,308	858,073	857,415
Grant payments - other	-	10,816	11,024	11,239	11,421
Net GST paid	39,334	40,000	40,000	40,000	40,000
Total cash used	793,518	855,288	886,332	909,312	908,836
Net cash from (or used by) operating activities	(727,400)	(804,288)	(839,532)	(863,012)	(863,336)
Net increase (or decrease) in cash held	(727,400)	(804,288)	(839,532)	(863,012)	(863,336)
Cash at beginning of the reporting period	1,930	2,812	2,812	2,812	2,812
Cash from Official Public Account for: - appropriations	728,282	804,288	839,532	863,012	863,336
Cash at end of reporting period	2,812	2,812	2,812	2,812	2,812

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