DMO financial summary
The total net resourcing available to the DMO in 2014–15, as published in the Portfolio
Budget Statements 2015–16, was $12,890m. This comprised:
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payment from Defence: $11,712.2 millon
special account opening balance: $297.1 million
appropriation receipts: $879.7 million
non-appropriation receipts: $0.9 million.
During the course of a financial year, the DMO budget may vary for a number of reasons,
such as changes in demand by Defence, foreign exchange fluctuations or reprogramming of
cash flow to meet contractual obligations.
Table 6.1 reflects the financial resource position taking all of these factors into consideration
as at 30 June 2015. Reported appropriation revenue in the financial statements is
$879.6 million. The 2014–15 total actual resourcing was higher than the estimate above
largely due to an increase in non-appropriation receipts of $338.3 million and appropriation
receipts from other agencies (Defence) of $159.4 million. This is offset by a prior period
adjustment decreasing the opening balance of the special account by $55.3 million, resulting
in total resourcing of $13,332.2 million.
The DMO made payments of $13,116.0 million in 2014–15, resulting in a special account
closing balance of $216.2 million as at 30 June 2015. The special account balance remains
within the Official Public Account, providing the flexibility to meet cash flow requirements
across financial years to align with capability delivery across DMO programmes.
Special accounts
The Defence Materiel Special Account is the main operating account from which most
business activities are conducted.
All sources of revenue, including direct appropriation, related party appropriation (revenue
from Defence) and other non-appropriation sources of revenue are recorded in the special
account. These amounts remain in the special account even if not fully used in the budget
year. They are held as an appropriation receivable in the Official Public Account and are
available to meet future expenditure requirements and liabilities when they fall due.
Web table 6.1 Actual special accounts cash flows and balances
Operating performance
The DMO budgeted for a break-even result in the Portfolio Additional Estimates Statements
2014–15. This reflects the model under which the DMO is funded for the activity it performs.
Web table 6.2 Statement of Comprehensive Income for the period ended 30 June 2015
Explanations for major variations—income statement
The DMO achieved an operating surplus of $83 million. This is less than 0.7 per cent of total
budgeted expenses. The main reasons for this surplus were lower than budgeted civilian
workforce numbers and lower than expected per capita costs.
Financial position
Web table 6.3 Balance Sheet as at 30 June 2015
Explanation for major variations—balance sheet
The variations between the revised budget and the actual result for 2014–15 in the balance
sheet mainly reflect:
 an increase in assets of $1,371 million, mainly representing an increase in other nonfinancial assets
 a increase in liabilities of $1,235 million, mainly representing a increase in unearned
income
 an increase in equity representing the operating surplus.
Cash flow
Web table 6.4 Cash Flow Statement for the period ended 30 June 2015
The variations in the cash flow statement are consistent with the variations in the income
statement and balance sheet. As at 30 June 2015, the DMO had a cash-at-bank balance of
$32.6 million.
Administered schedules
Web table 6.5 Income and expenses administered on behalf of the Government for the
period ended 30 June 2015
Web table 6.6 Assets and liabilities administered on behalf of the Government as at 30
June 2015
Web table 6.7 Administered cash flows for the period ended 30 June 2015