2.4 In-year Budget Expenditure Variance

Estimate $m

Actual $m

Variance $m

Variance Factor

Explanation

FMS

The underspend reflects the incorrect programming of a lump sum payment to the Alliance Industry Participants to escalate contract prices from base date of September 2004 to effective date May 2007. This has remained a variance for most of the financial year. This variance aside, the Alliance reported a slight overspend of $1.6m due to effort required to correct minor problems with the final release of the Combat System Management software and additional integration testing.

Overseas Industry

1.6

Local Industry

Brought Forward

Cost Savings

FOREX Variation

(17.5)

Commonwealth Delays

39.5

23.5

(16.0)

Total Variance