Appendix 6: Explanation of Program Budget Variance

This appendix is in reference to the Appropriation Program Expenditure Table 2-1 on page 15 and provides additional information on the reason for the variances for each program area's expenditure as compared to budget allocations.

During 2012 - 2013, the TSRA operated under a program structure which was focused on the delivery of outcomes and realisation of measurable benefits against the Torres Strait and Northern Peninsula Area Regional Plan 2009 - 2029 and the Torres Strait Development Plan 2009 - 2013.

Table 2-1 on page 15 provides actual program spend for 2012 - 2013 compared to budget allocations from appropriation. The actual 2012 - 2013 program spend from appropriation totalled $37.536 million compared to a budget allocation of $41.377 million, resulting in a variance ($3.841 million).

In the main, the variances can be attributed to a delay in the phased approach to establishing a formalised fisheries program during the reporting period and a reduction in CDEP activity in the latter part of the reporting period. Where possible, other program underspends were identified early and reallocated to initiatives that could not be funded earlier in the year or allocated toward planned capital expenditure in the out years.

The following programs recorded variances against budget for the financial year 2012 - 2013.

Table 6-4 Program Budget Variance (unaudited)

Program Variance $'000's
Culture Art and Heritage -176
Economic Development -1,704
Environmental Management 1 -1,649
Governance and leadership -355
Native Title 12
Healthy Communities 71
Safe Communities -40

1 Includes fisheries.

An aerial photo of an island