Notes to the Financial Statementsfor the year ended 30 June 2006

32. Explanatory statement

Significant variations between estimates and actual results for income and expense are shown below. Significant variations are considered to be those greater than 10 per cent and $100,000.

  1. Significant variances between estimated and actual result for 2006

    2006
    Actual
    $’000
    2006
    Estimate
    $’000
    2006
    Variation
    $’000

    Income
    User charges and fees
    1,532
    1,810
    (278)

    Expenses
    Employee benefits expense
    3,041
    3,937
    (896)
    Supplies and services
    3,789
    2,339
    1,450

    User charges and fees

    As the costs of gas access related functions are recovered from industry and activity in this area was lower than originally budgeted, less was recovered.

    Employee benefit expense

    The Authority’s organisational structure was approved in August 2005. The variance reflects the time delay in getting the approval and appointing personnel to approved positions.

    Supplies and Services

    Increased activity in relation to electricity access in assessing Western Power’s access arrangement and implementing the electricity licensing regime occurred during the year. This expenditure was funded by supplementary funding of $1.120 million in 2005-06 which had been deferred from the previous year.

  2. Significant variances between actual revenues and expenditures for the financial year and revenues and expenditures for the immediately preceding financial year

    2006 Actual $’000
    2005 Actual $’000
    Variation $’000

    Income
    User charges and fees
    1,532
    2,269
    (737)

    Expenses
    Employee benefits expense
    3,041
    2,645
    396
    Supplies and services
    3,789
    3,411
    378

    User charges and fees

    The costs of gas access related functions are recovered from industry. There was reduced activity in this area for 2005-06 compared to the previous year.

    Employee benefit expense

    The Authority’s organisational structure was approved in August 2005. The variance reflects the anticipated costs of additional employees.

    Supplies and Services

    Activity in relation to electricity access in assessing Western Power’s access arrangement was an additional workload on the Authority in 2005-06.