Financial Summary 2008-09

During 2008-09 the Queensland Police Service received $1 520.7 million for the delivery of policing services to the Queensland community. At the end of the 2008-09 financial year the Service was in a sound financial position, achieving an operating surplus of $0.188 million. This financial summary provides a snapshot of the income, expenditure, assets and liabilities for the 2008-09 financial year and can be read in conjunction with the following financial statements.

The table below provides a summary of comparative financial results over the last five-years.

Financial performance

Income

For the 2008-09 financial year, the Service received income of $1 520.7 million, an increase of $104.0 million (7.3%) compared to 2007-08. This increase comprised an additional $98.2 million being received from State Government contributions, an $8.1 million increase in user charges, a decrease in grants and contributions of $7.1 million

Expenditure

For the 2008-09 financial year, the Service’s total expenditure was $1 520.5 million, which was an increase of $104.3 million (7.4%) compared to 2007-08. This increase comprised a $94 million increase in employee expenses, an additional $4 million in supplies and services and increased depreciation expenses of $6 million. The increase in employee expenses is mainly attributed to enterprise bargaining agreements and the recruitment of additional police officers—in the 2008-09 Budget, the State Government committed to recruit 200 more police.

Budget Appropriation

The 2008-09 Queensland Police budget delivered on the Government’s commitment to the safety and security of Queensland by putting more police on the frontline, targeting crime and deterring irresponsible behaviours. The funding contribution to Queensland Police by the State Government increased by 7.3% from 2007-08.

The below table represents the 2008-09 funding appropriated by State Government and the expenditure for each output category.

In addition to the State contribution, the Service receives revenue from other sources including user charges, grants and contributions, other revenues and gains on the sale of property, plant and equipment. This additional revenue was used to fund the $73.1 million shortfall between the State contribution and QPS expenditure for 2008-09.

The Service delivers its services across four output areas as outlined in the table above. The costs for corporate resource management are proportionally spread across each output for the purpose of determining the full cost of each deliverable.

Financial position

Assets

As at 30 June 2009, total assets were valued at $1 935.6 million, which amounted to an increase of $97.8 million from the previous year. This change was largely the result of an increase of $170.5 million in property, plant and equipment, an increase of $29.5 million in receivables, an increase of $7.6 million in other current assets and a decrease in cash and cash equivalents of $114.8 million. Of this reduction in cash and cash equivalents, $90.7 million is attributed to the payment of the Annual Leave Central Scheme liability to Queensland Treasury in September 2008.

Liabilities

As at 30 June 2009, total liabilities were valued at $113.3 million, a decrease of $96.2 million from the previous year. This change was the result of a decrease in payables and other current liabilities. Of this reduction, $59.5 million is attributed to the transfer of annual leave liabilities to Queensland Treasury as a result of the introduction of the Annual Leave Central Scheme.

Net Assets

The net asset position of the Service (assets minus liabilities) at the end of 2008-09 was $1 822.3 million. This was an increase of $194.0 million on the 2007-08 net asset position, which represents the increase in total assets of $97.8 million together with the reduction of liabilities of 96.2 million.

Costs and risks in relation to liabilities and contingent liabilities

Liabilities

Total liabilities for the Service were valued at $113.3 million as at 30 June 2009. To minimise exposure to liquidity risk arising from these liabilities, the Service uses a liquidity management strategy. This ensures sufficient funds are available to meet employee and supplier obligations as they fall due.

The Queensland Police Service has not undertaken any borrowings from Queensland Treasury Corporation in 2008-09 and therefore any risks in relation to liquidity risk or market risk are minimal.

A more comprehensive analysis regarding the Service’s costs and risks in relation to its liabilities is set out in the financial statements (note 30).

Contingent liabilities

The Queensland Police Service’s exposure to contingent liabilities comprises litigation in process and native title claims over departmental land.

As at 30 June 2009, thirty-four litigation cases were filed and in progress with the Queensland Police Service named as the defendant. The Service has implemented a contingent liability management system to actively manage litigation cases and to minimise the costs associated with these cases.

With regard to native title claims over departmental land, the Service’s exposure to liability claims is considered to be minimal as most of the affected land are Reserves or community infrastructure developed in accordance with the gazetted purpose of the Reserves.

A more comprehensive analysis regarding the Service’s costs and risks in relation to its contingent liabilities is set out in the financial statements (note 28).

Police dogs have become an integral part of modern policing. Police dogs are trained to locate offenders and drugs, and provide options for the use of force.