Note 20: Explanation of major variances against budget

Explanations for major variances from the Office's forecast figures in our Annual Plan 2011/12 are as follows:

Statement of comprehensive income

Operating costs were lower than forecast, mainly due to the overall efficiencies arising from a high volume audit year. The forecast reflects the revenue dependent appropriation.

Depreciation and amortisation expense was lower than forecast as capital expenditure on intangible assets did not occur as planned.

Statement of changes in taxpayers' funds

In 2011, Parliament approved a capital contribution of $2.2 million to fund the fitout of the Office's Wellington premises, and this was reflected in the main estimates for 2011/12. However, the fitout will now take place in 2012/13.

Statement of financial position

Current assets are higher than forecast, which is mainly due to a higher cash balance arising from the operating surplus for the year. Debtors and other receivables are also higher than forecast and work in progress lower than forecast due to the timing of audit fee invoicing.

Current liabilities are higher than forecast, which is attributable to the provision for repayment of surplus to the Crown and higher payables due to the timing of payments at the end of the financial year.