Financial summary 2009-10

During 2009-10 the Queensland Police Service received $1 673.9 million for the delivery of policing services to the Queensland community. At the end of the 2009-10 financial year the Service was in a sound financial position, achieving an operating surplus from continuing operations of $1.726 million. This financial summary provides a snapshot of the income, expenditure, assets and liabilities for the 2009-10 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 from continuing operations

For the 2009-10 financial year, the Service received income from continuing operations of $1 673.9 million, an increase of $153.9 million (10.1%) compared to 2008-09. This increase comprised of an additional $153.1 million being received from State Government contributions, a $4.7 million increase in user charges, a decrease in grants and other contributions of $2.9  million and a decrease of $2.3 million in other revenues.

Expenses from continuing operations

For the 2009-10 financial year, the Service’s total expenditure from continuing operations was $1 672.1 million, an increase of $145.2 million (9.5%) compared to 2008-09. This increase comprised of a $108 million increase in employee expenses, an additional $23 million in supplies and services and a $14 million increase in other expenses. The increase in employee expenses is mainly attributed to enterprise bargaining agreements and the recruitment of additional personnel.

Budget appropriation

The 2009-10 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 10.6% from 2008-09.

The below table represents the 2009-10 funding appropriated by State Government and the expenditure for each major departmental service (Outputs).

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 and revaluation of property, plant and equipment. This additional revenue was used to fund the $71.6 million variance between the State contribution and QPS expenditure for 2009-10.

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

Financial position

Assets

As at 30 June 2010, total assets were valued at $1 911.5 million, which represents a decrease of $21 million (1.1%) from the previous year. This change was largely the result of a decrease of $18.7 million in property, plant and equipment, an increase of $12.8 million in receivables, an increase of $2.3 million in other current assets and a decrease in cash and cash equivalents of $18.2 million.

Liabilities

As at 30 June 2010, total liabilities were valued at $132.5 million, an increase of $29.1 million from the previous year. This change was the result of an increase in payables of $1.3 million, an increase of accrued employee benefits of $4.4 million and an increase in other current liabilities of $23.5 million. Of this increase in other current liabilities, $16.1 million is attributed to an equity withdrawal payable to Queensland Treasury

Net Assets

The net asset position of the department (assets minus liabilities) at the end of 2009-10 was $1 779 million. This was a decrease of $50.1 million on the 2008-09 net asset position which represents the decrease in total assets of $21 million together with the increase of liabilities of $29.1 million.

Costs and risks in relation to liabilities and contingent liabilities

Liabilities

Total liabilities for the Service were valued at $132.5 million as at 30 June 2010. 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 2009-10 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 2010, thirty-five 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 is community infrastructure developed in accordance with the gazetted purpose of the Reserve.

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).

Chief Finance Officer (CFO) Statement

For the financial year ended 30 June 2010, the Queensland Police Service acknowledges the minimum responsibilities of the Chief Finance Officer as specified under section 77(1)(b) of the Financial Accountability Act 2009. The Chief Finance Officer provided a statement to the Accountable Officer prior to certification of the 2009-10 financial statements, regarding the efficiency, effectiveness and economical operations of financial internal controls operating within the department.