Section 3: Outcomes
General government sector agencies are required to plan, budget and report under an outcomes structure. Agencies produce outputs (departmental items) and also administer items on behalf of the Government (administered items).
This section explains how the resources identified in Section 2 will be used to deliver outputs and administered items for the Australian Office of Financial Management.
3.1 Summary of outcomes and contribution to outcomes
The AOFM delivers a single output — debt management — with a single outcome. The relationship between the activities of the AOFM and its outcome/output structure is summarised in Figure 2.
Figure 2: Contributions to outcomes
The AOFM has not made any changes to its outcome or output structure since the Portfolio Budget Statements 2006-07.
3.2 Outcome resources and performance information
3.2.1 Outcome 1 resourcing
Table 3.1: Total resources for Outcome 1
- The AOFM draws administered appropriations to make term deposit investments with the Reserve Bank of Australia. These deposits are used to manage the daily variations in the Commonwealth’s cash balances in the Official Public Account (OPA). The cash flows into and out of the OPA are highly variable from day to day and so in consequence are the number, size and timing of term deposits. These deposits are financing transactions and represent the most significant component of the special appropriations ($232.9 billion in each year).
3.2.2 Measures affecting Outcome 1
The AOFM does not have any 2007-08 Budget measures.
3.2.3 Contributions to achievement of Outcome 1
The AOFM produces its output — debt management — through the issuance of Treasury Bonds and the execution of interest rate swaps. It also undertakes risk management activities, compliance activities, financial reporting, debt administration and the monitoring of conditions in Treasury bond and futures markets. Debt management activities comply with applicable legislative requirements and accounting standards.
3.2.4 Performance information for Outcome 1
Performance information for administered items, individual outputs and output groups relating to the Australian Office of Financial Management are summarised in Table 3.2.
Table 3.2: Performance information for Outcome 1
3.2.5 Evaluations for Outcome 1
Feedback is sought on a regular basis from financial markets and key clients on the effectiveness of debt issuance and the efficiency of the Commonwealth Government Securities bond and futures markets. The appropriateness of the benchmark portfolio is also reviewed regularly. Results are presented in the AOFM’s Annual Report.