Small Business Development Corporation

Transcription

1 Division 67 Part 15 Small Business Development Corporation Minister for Emergency Services; Corrective Services; Small Business; Veterans Appropriations, Expenses and Cash Assets d DELIVERY OF SERVICES Item 105 Net amount appropriated to deliver services... 11,402 11,544 12,780 11,751 12,129 12,357 12,589 Amount Authorised by Other Statutes - Salaries and Allowances Act Total appropriations provided to deliver services... 11,645 11,791 13,027 12,005 12,389 12,617 12,849 CAPITAL Item 160 Capital Appropriation TOTAL APPROPRIATIONS... 11,705 11,851 13,087 12,065 12,449 12,677 12,909 EXPENSES Total Cost of Services... 13,875 13,995 14,185 13,796 14,662 15,373 13,342 Net Cost of Services (a)... 13,502 13,685 13,903 13,514 14,380 15,091 13,060 CASH ASSETS (b)... 1,259 2,215 1,410 1,144 1,060 1,016 1,000 (a) Represents Total Cost of Services (expenses) less retained revenues applied to the agency s services. Reconciliation to the Total appropriations provided to deliver services includes adjustments related to movements in cash balances and other accrual items such as resources received free of charge, receivables, payables and superannuation. (b) As at 30 June each financial year. Spending Changes All recurrent spending changes, other than cashflow timing changes and non-discretionary accounting adjustments, impacting on the agency s Income Statement since presentation of the to Parliament on 8 May 2014, are outlined below: d Aboriginal Business Program... Business Migration Program... Payroll Tax Exemption... Royalties for Regions - Regional Buy Local Initiatives Stage 2 and 3... Small Business Centre Program... Workforce Renewal Policy (34) (260) (260) (260) (260) (980) (500) - 2, (9) (74) (152) (234) (320) Significant Issues Impacting the Agency The Alternative Dispute Resolution (ADR) service provides hands-on, timely assistance to help small business operators resolve disputes quickly and inexpensively. The ADR service was recognised in the Productivity Commission s 2014 report into Access to Justice as a model in providing non-litigious, cheaper and quicker resolution of small business disputes. 745

2 The Corporation continues to provide State Nominations for business migrants in a range of business and investment visa categories. Business migrants make a significant contribution to the State economy, bringing in new capital, establishing or reinvesting in local businesses, generating new jobs, developing new export opportunities and investing in Treasury bonds. The Business Migration program is forecast to deliver over $1 billion in new capital into Western Australia over the forward estimates. Following a comprehensive independent review of the Small Business Centre program undertaken during, the Corporation began transitioning its third party service delivery model into the new Business Local program. Commencing on 1 July 2015, the new model will see suitably qualified and experienced advisers providing a range of business services in 12 service delivery areas across the State (including nine in the regions). It is expected that the program will support an increased level of higher quality business start-ups, stronger business foundations, more profitable businesses with increased turnover, and employment opportunities throughout the State. Through the Regional Buy Local Initiatives program, the Corporation is supporting small businesses in the regions to build their capacity in order to take advantage of opportunities to supply major government and commercial projects. The program comprises a suite of capacity building support services designed to improve the competitive performance and resilience of regional small businesses, with a focus on tendering, building online capacity and accessing supply chains. This is expected to contribute to the broader economic development of the regions by enhancing the ongoing viability of regional businesses and local communities. The Corporation continued to influence small business policy development at all levels of government through contributing to major policy and legislative reviews at both the State and Federal level and influencing regulatory settings to minimise the compliance burden on small business operators. During, the Corporation actively contributed to the State s Reinvigorating Regulatory Reform agenda and provided submissions in relation to competition policy, unfair contract terms, work health and safety, personal property securities, retail trade, workplace relations, planning regulations, workers compensation, small business tax impediments, and contracts in the construction industry. Resource Agreement The following performance information (financial and non-financial) is the subject of a Resource Agreement signed by the Minister, Accountable Authority and Treasurer under Part 3, Division 5 of the Financial Management Act Outcomes, Services and Key Performance Information Relationship to Government Goals Broad government goals are supported at agency level by specific outcomes. Agencies deliver services to achieve these outcomes. The following table illustrates the relationship between the agency s service and desired outcome, and the government goal it contributes to. The key effectiveness indicators measure the extent of impact of the delivery of services on the achievement of desired outcomes. The key efficiency indicators monitor the relationship between the service delivered and the resources used to produce the service. Government Goal Desired Outcome Service Financial and Economic Responsibility: Responsibly managing the State s finances through the efficient and effective delivery of services, encouraging economic activity and reducing regulatory burdens on the private sector. Service Summary Development of new and existing Small Business in Western Australia. 1. Information, Guidance, Referral and Business Development Services Expense d 1. Information, Guidance, Referral and Business Development Services... 13,875 13,995 14,185 13,796 14,662 15,373 13,342 Total Cost of Services... 13,875 13,995 14,185 13,796 14,662 15,373 13,

3 Outcomes and Key Effectiveness Indicators (a) d Target Note Outcome: Development of new and existing Small Business in Western Australia: A random sample of clients was asked to rate the usefulness of the information/guidance provided to them by the Small Business Development Corporation: Very or somewhat useful... 93% 90% 93% 93% Not very or not at all useful... 6% nil 5% 5% Neutral... 1% 10% 2% 2% (a) Further detail in support of the key effectiveness indicators is provided in the agency s Annual Report. Services and Key Efficiency Indicators (a) 1. Information, Guidance, Referral and Business Development Services Provision of specialised information, referral, and business facilitation services for the effective development of enterprises in Western Australia. d Target Note Total Cost of Service... 13,875 13,995 14,185 13,796 Less Income Net Cost of Service... 13,502 13,685 13,903 13,514 Employees (Full Time Equivalents) Efficiency Indicators Average Cost per Direct Client Contact/Equivalent (b)... $23.36 $25.12 $24.26 $ Average Cost per Indirect Client Contact (c)... $2.65 $3.01 $2.77 $2.75 Average Cost per Small Business Centre Client Contact (d)... $ $ $ $ Cost per Unit of Policy Advice (e)... $1,270,455 $1,245,769 $1,296,758 $1,297,538 (a) Further detail regarding efficiency indicators is provided in the agency's Annual Report. (b) Direct client contacts have contacted the Corporation for guidance or information either by a personal visit, by telephone or have visited the Corporation s websites for four minutes or more, or have downloaded a license pack from the Business License Finder. Direct client contacts also include the Corporation's workshop attendees. (c) Indirect client contacts are exposed to a range of advisory, information, referral and business services that would impact on their growth and business development. These include attendees at award functions, expos or other forums, which the Corporation has organised, has been the major sponsor where the focus has been on business development, or where the Corporation's representative has given an address on small business matters. This also includes Corporation s websites visits between two and four minutes. (d) A network of 25 Small Business Centres operated during. Effective from 1 July 2015 the Small Business Centre program will be replaced by the Business Local program, which will see small business services delivered in 12 key service delivery areas across the State (including nine in regional areas). (e) Policy advice includes policy submissions, investigative research, ministerial correspondence, industry liaison and small business sector advocacy. Explanation of Significant Movements (Notes) 1. The reduction between the d and the Target relates to the transfer of the Buy Local program and associated funding to the revised Business Local program. 747

4 Asset Investment Program d Total Cost d Expenditure to d Expenditure COMPLETED WORKS Furniture and Office Equipment Replacement Program... Program... Program... NEW WORKS Furniture and Office Equipment Replacement Program... Program... Program... Program... Total Cost of Asset Investment Program FUNDED BY Capital Appropriation Drawdowns from the Holding Account Internal Funds and Balances Total Funding Financial Statements Income Statement Income Service appropriations are estimated to decrease by $1 million in the compared to the d. This is mainly due to the discontinuation of funding for the Aboriginal Business program and the reduction in funding to the Small Business Centre/Business Local program. In addition, the Corporation will return $0.3 million to the Consolidated Account as a result of payroll tax exemption. The income from Royalties for Regions is estimated to increase by $0.6 million from the d to the. This increase is related to additional funding provided for the Regional Buy Local Initiatives Stage 2 and

5 INCOME STATEMENT (a) (Controlled) d COST OF SERVICES Expenses Employee benefits (b)... 6,131 6,235 6,340 6,320 6,541 6,628 6,690 Grants and subsidies (c)... 3,681 3,804 3,830 3,530 3,586 3,668 3,760 Supplies and services... 2,300 2,272 2,212 2,336 2,887 3,390 1,233 Accommodation... 1,066 1,098 1,110 1,147 1,185 1,226 1,268 Depreciation and amortisation Other expenses TOTAL COST OF SERVICES... 13,875 13,995 14,185 13,796 14,662 15,373 13,342 Income Sale of goods and services Other revenue Total Income NET COST OF SERVICES... 13,502 13,685 13,903 13,514 14,380 15,091 13,060 INCOME FROM STATE GOVERNMENT Service appropriations... 11,645 11,791 13,027 12,005 12,389 12,617 12,849 Resources received free of charge Royalties for Regions Fund: Regional Community Services Fund , ,256 1,716 2,224 - TOTAL INCOME FROM STATE GOVERNMENT... 11,828 13,501 13,881 13,451 14,295 15,031 13,039 SURPLUS/(DEFICIENCY) FOR THE PERIOD... (1,674) (184) (22) (63) (85) (60) (21) (a) Full audited financial statements are published in the agency s Annual Report. (b) The Full Time Equivalents for, d and are 55, 54 and 55 respectively. In some cases the figures for and may differ from previously published figures due to changes in calculation methodology. (c) Refer to the Details of Controlled Grants and Subsidies table below for further information. DETAILS OF CONTROLLED GRANTS AND SUBSIDIES d Small Business Centre/Business Local Program - Operational Grants (a)... 3,681 3,804 3,830 3,530 3,586 3,668 3,760 TOTAL... 3,681 3,804 3,830 3,530 3,586 3,668 3,760 (a) Effective from 1 July 2015 the Small Business Centre program will be replaced by the Business Local program. 749

6 STATEMENT OF FINANCIAL POSITION (a) (Controlled) d CURRENT ASSETS Cash assets... 1,157 2,179 1,308 1, Restricted cash Holding account receivables Receivables Other Total current assets... 1,583 2,594 1,613 1,430 1,341 1,289 1,273 NON-CURRENT ASSETS Holding account receivables Property, plant and equipment Intangibles Total non-current assets ,074 TOTAL ASSETS... 2,173 3,471 2,387 2,279 2,265 2,288 2,347 CURRENT LIABILITIES Employee provisions... 1,230 1,040 1,067 1,067 1,067 1,067 1,067 Payables Other Total current liabilities... 1,568 1,514 1,659 1,554 1,565 1,588 1,608 NON-CURRENT LIABILITIES Employee provisions Other Total non-current liabilities TOTAL LIABILITIES... 1,783 1,819 1,959 1,854 1,865 1,888 1,908 EQUITY Contributed equity... 1,179 1,239 1,239 1,299 1,359 1,419 1,479 Accumulated surplus/(deficit)... (789) 413 (811) (874) (959) (1,019) (1,040) Total equity , TOTAL LIABILITIES AND EQUITY... 2,173 3,471 2,387 2,279 2,265 2,288 2,347 (a) Full audited financial statements are published in the agency s Annual Report. 750

7 STATEMENT OF CASHFLOWS (a) (Controlled) d CASHFLOWS FROM STATE GOVERNMENT Service appropriations... 11,550 11,696 12,932 11,850 12,234 12,462 12,694 Capital appropriation Holding account drawdowns Royalties for Regions Fund: Regional Community Services Fund , ,256 1,716 2,224 - Net cash provided by State Government... 11,670 13,526 13,716 13,226 14,070 14,806 12,814 CASHFLOWS FROM OPERATING ACTIVITIES Payments Employee benefits... (6,067) (6,187) (6,292) (6,272) (6,493) (6,577) (6,639) Grants and subsidies... (3,745) (3,804) (3,830) (3,530) (3,586) (3,668) (3,760) Supplies and services... (2,240) (2,322) (1,772) (2,380) (2,727) (3,279) (1,103) Accommodation... (1,071) (1,098) (1,110) (1,147) (1,185) (1,226) (1,268) Other payments... (1,343) (1,167) (1,184) (955) (955) (892) (852) Receipts Sale of goods and services GST receipts Other receipts Net cash from operating activities... (13,324) (13,588) (13,276) (13,372) (14,034) (14,730) (12,710) CASHFLOWS FROM INVESTING ACTIVITIES Purchase of non-current assets... (30) (126) (289) (120) (120) (120) (120) Net cash from investing activities... (30) (126) (289) (120) (120) (120) (120) NET INCREASE/(DECREASE) IN CASH HELD... (1,684) (188) 151 (266) (84) (44) (16) Cash assets at the beginning of the reporting period... 2,943 2,403 1,259 1,410 1,144 1,060 1,016 Cash assets at the end of the reporting period... 1,259 2,215 1,410 1,144 1,060 1,016 1,000 (a) Full audited financial statements are published in the agency s Annual Report. 751

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