Australian Office of Financial Management
- Outcomes and output groups
- Changes to outcomes and outputs
- Outcome 1 - Description
- Outcome 1 - Resourcing
- Outcome 1 - Contribution of outputs
- Performance information for Outcome 1
- Evaluations
Section 2: Outcomes and outputs information
Outcomes and output groups
The map below shows the relationship between Government outcomes and the contributing outputs for the Australian Office of Financial Management (AOFM). Financial detail for Outcome 1 by output appears in Table 2.1 while non-financial information for Outcome 1 appears in Table 2.2.
Map 2: Outcomes and output groups
Changes to outcomes and outputs
There are no proposed changes to the outcome or outputs since the previous year.
Outcome 1 - Description
To enhance the Commonwealth's capacity to manage its net debt portfolio, offering the prospect of savings in debt servicing costs and an improvement in the net worth of the Commonwealth over time.
Measures affecting Outcome 1
There are no measures for the AOFM in the 2002-03 Budget.
Outcome 1 - Resourcing
Table 2.1 shows how the 2002-03 appropriations translate to total resourcing for Outcome 1, including administered and departmental appropriations, revenue from other sources and the total price of outputs.
Table 2.1: Total resources for Outcome 1 ($'000)
(1) C1, E1 and I1 show the links back to Table 1.1.
Outcome 1 - Contribution of outputs
The AOFM has a single output - debt management. The AOFM's debt management operations include the issue of various borrowing instruments, liquidity management and investment activities, the strategic formulation and undertaking of portfolio management, including through swap transactions, and the administration of the Commonwealth debt portfolio.
Notwithstanding surplus funding positions in recent years, the AOFM has undertaken modest issuance programmes directed at maintaining the liquidity and efficiency of Commonwealth Government securities market and the viability of supporting infrastructure. Integral to the continuing efficient management of its funding risk, the AOFM's specific objective for its major debt instrument, Treasury Bonds, remains building and maintaining liquidity in key benchmark lines over a yield curve extending to around 12-13 years.
Debt portfolio management operations are framed by reference to a defined portfolio benchmark that serves as a target for the composition of the Commonwealth debt portfolio. The analytical framework underpinning the benchmark assesses the trade-off between the long-term expected cost and risk of different portfolio structures, thus allowing informed and consistent decisions about the nature of Commonwealth market exposures.
Debt administration is undertaken by the AOFM in conformity with legislative requirements and in compliance with applicable accounting standards.
Performance information for Outcome 1
Table 2.2: Performance information for Outcome 1
Evaluations
Performance with regard to producing the debt management output is currently evaluated using benchmark analysis and regular review of the broader risk management framework to ensure that it remains appropriate in the light of Commonwealth operations and market conditions. Results of evaluations will be presented, as appropriate, in the AOFM's Annual Report.
