Chief Finance Officer's report
Contents
This financial summary provides an overview of the department's financial results for 2016–17. A comprehensive set of financial statements covering all of the department's activities is provided in this report.
The department recorded an operating surplus of $179 million for the 2016–17 financial year. Following table summarises the financial results of the department's operations for 2016–17 and 2015–16.
Financial performance
Summary of financial results of the department's operations
| Category | 2016–17 $'000 | 2015–16 $'000 |
|---|---|---|
| Total income | 5,776,159 | 7,565,994 |
| Total expenses | 5,596,725 | 5,548,281 |
| Operating result for the year | 179,434 | 2,017,713 |
Income
Total income for the year was $5.776 billion. This included appropriation revenue from the Queensland Government of $4.772 billion, user charges of $732 million and grants and contributions of $233 million.
The department's total income and operating result have decreased in 2016–17, mainly due to a reduction in asset revaluation increments of $1.790 billion.
Income by category for the year ended 30 June 2017
| Category | Income % |
|---|---|
| Appropriation revenue | 83% |
| User charges and fees | 13% |
| Grants and other contributions | 4% |
| Other revenue | 0.62% |
| Gains on disposal and revaluation of assets | 0.07% |
Expenses
Total expenses for the department were $5.597 billion and were higher than 2015–16 by $48 million. Supplies and services is our largest spend category accounting for 58 per cent of total expenditure. Payments to operators of rail, bus, air and ferry services represents approximately 41 per cent of total spend.
Total capital expenditure in 2016–17 was $2.40 billion.
Expenses by category for the year ended 30 June 2017
| Category | Expenses % |
|---|---|
| Supplies and services | 58% |
| Depreciation and amortisation | 18% |
| Grants and subsidies | 11% |
| Employee expenses | 10% |
| Other expenses | 2% |
| Finance and borrowing costs | 2% |
| Income tax equivalent expense | 0.26% |
| Impairment losses | 0.04% |
Financial position
The net assets position reported in the financial statements shows the net worth of the department. At 30 June 2017, this was $65.540 billion. Table below summarises the department's financial position for 2016–17 and 2015–16.
Summary of financial position – Assets and liabilities
| Category | 2016–17 $'000 | 2015–16 $'000 |
|---|---|---|
| Total assets | 67,731,350 | 69,443,798 |
| Total liabilities | 2,191,415 | 2,135,749 |
| Total equity | 65,539,935 | 67,308,049 |