Jump to Content

Section 5 : Budgeted Financial Statements

  • 5.1 Analysis of budgeted financial statements
  • 5.2 Budgeted financial statements tables
  • 5.3 Notes to the financial statements
  • 5.1 Analysis of budgeted financial statements

    An analysis of DOTARS budgeted financial statements, as reflected in the budgeted departmental financial statements and administered schedules for 2005-06, is provided below.

    Departmental

    Statement of Financial Performance

    DOTARS is budgeting for a break even operating result for 2005-06. The estimated actual operating result for 2004-05 is a surplus of $17.3m, attributable to reduced expenses to provide for DOTARS internally funded capital programme and lower than anticipated general expenses.

    Total revenue in 2005-06 is estimated to be $206.8m, an increase of $4.7m from the 2004-05 estimated actual. The increase is primarily as a result of the net increase in funding from measures disclosed in the 2005-06 Budget ($3.5m) (details are provided at Section 2, Table 2.2).

    Total expenses are estimated to be $206.8m, an increase of $22.0m from the 2004-05 estimated actual. The increase is primarily due to the full year impact in 2005-06 of initiatives funding in 2004-05 together with those funded in the Budget.

    Chart 5.1: Total departmental expenses

    Chart 5.1: Total departmental expenses

    (click on the image to view the larger version)

    The significant drop in expenses from 2003 04 to 2004-05 largely reflects two factors:

    • expenses associated with the provision of services to the Indian Ocean Territories, which were transferred from departmental to administered appropriation, and
    • the one-off impact in 2003 04 of expenses related to the recognition of a provision for asbestos-related disease claims.

    Statement of Financial Position

    The DOTARS budgeted net asset position of $101.6m represents an increase of $73.5m from the 2004-05 estimated actual. The increase is primarily attributable to the transfer of a provision for asbestos related disease claims to the Department of Employment and Workplace Relations on 1 July 2005 ($63.4m) and the projected operating surplus in 2004-05 ($17.3m).

    Total assets are expected to increase by $10.3m to $139.2m, reflecting a projected increase in receivables of $5.0m to $83.2m, due to increases in appropriation receivable, and a projected increase in intangibles of $6.5m to $18.5m, due primarily to information technology investment flowing from new measures.

    Chart 5.2: Budgeted assets for 2005-06

    Chart 5.2: Budgeted assets for 2005-06

    (click on the image to view the larger version)

    The DOTARS primary liability continues to be accrued employee leave entitlements of $29.1m. The liability is estimated to increase by around $1.0m during 2005-06.

    Administered

    Budgeted Revenue and Expenses

    DOTARS will receive appropriation revenue of $4 027.0m for payments it will administer on behalf of the government, representing an increase of $241.6m from the 2004-05 estimated actual. The increase is largely due to:

    • measures disclosed in the 2005-06 Budget ($13.6m) (details are provided at Section 2, Table 2.2)
    • movement of funding for programmes between years, resulting in a lower level of expenses in 2004-05 ($148.0m) and higher expenses in 2005-06 ($33.3m) (details are provided at Section 2, Table 2.4), and
    • general changes in the funding profile of several administered programmes.

    DOTARS will also administer the collection of taxes, fees and fines, other non-taxation revenue and interest and dividends estimated at $250.3m, representing a decrease of $17.7m from the 2004-05 estimated actual. The decrease is primarily due to:

    • reduced revenue from Dairy Regional Assistance Programme reimbursements ($5.1m) and land acquisitions for Sydney Airport ($3.4m), and
    • reduced revenue from dividends received from the Australian Rail Track Corporation ($7.0m) and Airservices Australia ($6.5m).

    The decrease in revenue is partially offset by increased levies collected under the Stevedoring Levy (Collection) Act 1998 ($1.6m); Marine Navigation Levy Collection Act 1989 ($1.3m); Marine Navigation (Regulatory Functions) Levy Collection Act 1991 ($1.6m).

    Administered expenses, such as for grants and subsidies programmes, are budgeted at $3 990.1m, representing an increase of $219.6m from the 2004-05 estimated actual and will be incurred for the programmes set out at Section 3, Table 3.2.1 for Outcome 1 and Table 3.2.2 for Outcome 2. The decrease is due to the activities outlined above.

    Chart 5.3: Total administered expenses

    Chart 5.3: Total administered expenses

    (click on the image to view the larger version)

    Budgeted Assets and Liabilities

    Total assets are expected to increase by $56.6m to $1 073.3m from the 2004-05 estimated actual. The increase relates mainly to non-financial assets due primarily to the asset acquisitions associated with the Indian Ocean Territories programme ($66.6m) and Sydney West Airports - land acquisition and works ($2.8m) programmes. This increase is partially offset by depreciation charges for the year ($13.4m).

    Total liabilities are expected to decline by $42.0m, from the 2004-05 estimated actual to $10.6m. The decrease primarily reflects the reduction in payables attributable to MIFCo ($32.4m) and the Local Government Financial Assistance Grants programme ($9.6m).

    Back to Top   

    5.2 Budgeted financial statements tables

    Table 5.1: Budgeted departmental statement of financial performance (for period ended 30 June)

    Table 5.2: Budgeted departmental statement of financial position (as at 30 June)

    Table 5.3: Budgeted departmental statement of cash flows (for the period ended 30 June)

    Table 5.4: Departmental capital budget statement

    Table 5.5: Departmental property, plant, equipment and intangibles - summary of movement (Budget year 2005-06)

    Table 5.6: Schedule of budgeted revenue and expenses administered on behalf of government (for the period ended 30 June)

    Table 5.7: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

    Table 5.8: Schedule of budgeted administered cash flows (for the period ended 30 June)

    Table 5.9: Schedule of administered capital budget

    Table 5.10: Schedule of property, plant, equipment and intangibles - summary of movement (Budget year 2005-06)

    Back to Top   

    5.3 Notes to the financial statements

    1. Accounting policy

      The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with:

      • the Finance Minister's Orders
      • Australian Accounting Standards
      • Other authoritative pronouncements of the Australian Accounting Standards Board, and
      • The Consensus Views of the Urgent Issues Group.

    2. Departmental and administered items

    Agency assets, liabilities, revenues and expenses are those items that are controlled by DOTARS that are used by DOTARS in producing its outputs and include:

    • computers, plant and equipment used in providing goods and services
    • liabilities for employee entitlements
    • revenue from appropriations or independent sources in payment for outputs, and
    • employee, supplier and depreciation expenses incurred in providing agency outputs.

    Administered items are those items incurred in providing programmes that are controlled by the government and managed, or oversighted, by the department on behalf of the government. Administered expenses included grant payments and subsidies, and administered revenues include levies, fees and fines.

    1. Departmental revenue

      Revenue from government represents the purchase of outputs from DOTARS by the government and is recognised to the extent that it has been received into DOTARS bank account.

      Revenue from other sources, representing sales from goods and services, is recognised at the time that it is imposed on customers.

    2. Departmental expenses - employees

      Payments and net increases in entitlements to employees for services rendered in the financial year.

    3. Departmental expenses - suppliers

      Payments to suppliers for goods and services used in providing agency outputs.

    4. Departmental expenses - depreciation and amortisation

      Depreciable property plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life to the department, using straight-line calculation method.

    5. Departmental assets - financial assets

      The primary financial asset relates to receivables. Financial assets are used to fund DOTARS capital programme, employee entitlements, creditors and to provide working capital.

    6. Departmental assets - non-financial assets

      These items represent future economic benefits that the department will consume in producing outputs. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.

    7. Departmental liabilities - interest bearing liabilities

      Property lease incentives that DOTARS has received. These incentives are written-off over the life of the lease.

    8. Departmental liabilities - provisions and payables

      Provision has been made for DOTARS liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave. No provision has been made for sick leave because the level of sick leave taken is less on average than the amount which employees are entitled to each year.

      Provision has also been made for unpaid supplier expenses as at balance date.

    9. Administered revenue

      Details of the range of taxation and non-taxation revenue collected by DOTARS are provided at Appendix 5.1.

    10. Administered expenses

      The majority of DOTARS administered programmes are classified as grants, the most significant being: Local Government Financial Assistance Grants; AusLink; Natural Disaster Relief Arrangements; and Regional Partnerships.

    11. Administered assets - financial assets

      Comprise primarily the Australian Government's investments in portfolio agencies.

    Appendix 5.1: Administered receipts (other than appropriations)

    Back to Top   

    [ Prev. ] [ Index ] [ Next ]