Note 19: Explanation of major variances against budget

Explanations for major variances from the Office's forecast figures in the Annual Plan 2009/10 are as follows:

Statement of comprehensive income

Audit fee revenue and other income was higher than forecast due to a higher level of completion of arrears audits, unbudgeted revenue received for certain inquiries, and increases to fee and overhead contribution revenue being higher than budgeted due to changes in audit hours.

Total expenditure was lower than budgeted due to a number of factors including timing of professional development, reprioritisation of the performance audits programme, savings made from moving to electronic distribution of some Office reports and savings made in general administrative costs including less recruitment due to lower staff turnover, lower IT costs arising from contract reviews and travel savings.

Statement of financial position

Current assets are higher than forecast which is mainly due to a higher cash balance arising from the operating surplus for the year. Debtors are also higher than forecast due to the timing of audit fee invoicing.

Current liabilities are higher than forecast, which is mainly attributable to the provision for repayment of surplus to the Crown and higher employee liabilities including annual leave and accrued salaries.