Note 21: Explanation of significant variances against the Main Estimates

Explanations for major variances from the Office's Main Estimates figures in our Annual Plan 2013/14 are as follows:

Statement of comprehensive income

Actual audit fee revenue was higher than the Main Estimates by $3.9 million, with the increase mainly due to changes in the split of fee revenue across financial years, and additional work completed by contracted audit service providers.

Operating costs were higher than the Main Estimates by $3 million, also a reflection of higher contracted audit service provider revenue.

Statement of financial position

Non-current assets were lower than the Main Estimates by $0.696 million, as the actual costs of the Office's Wellington fitout were lower than originally forecast.

Current liabilities were lower than the Main Estimates by $0.993 million, mainly due to lower employee entitlements, a result of reduced leave balances.

Net assets are $0.452 million higher than forecast, due to the establishment of the memorandum account as outlined in Note 20.