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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 CASA's budgeted financial statements, as reflected in the budgeted departmental financial statements for 2006-07, is provided below.

    Budgeted departmental income statement

    CASA is budgeting for a breakeven position for the 2006-07 financial year. This result is an increase of $2.5m from last year's operating deficit which can be attributed to the funding of the LTFS. Total revenue in 2006-07 is estimated to be $ 118.9m, this is an increase of $0.9m from the 2005-06 estimated actual, reflected by an increase in special appropriations of $0.6m and interest from bank deposits of $0.3m. Bill 1 appropriations will remain unchanged at $40.5m.

    Chart 5.1 illustrates CASA's move towards self-sustainability through increased revenue from independent sources and a reduction in government appropriations. The sharp decrease in appropriations in 2005-06 reflects a reduction in Bill 1 appropriations offset by an increase in regulatory service fees, while the decrease in appropriations in 2008-09 reflects a reduction in the rate of aviation fuel excise.

    Chart 5.1: Revenue


    (click on the image to view the larger version)

    Total expenditure in 2006-07 is estimated to be $118.9m, a decrease of $1.6m from the 2005 06 estimated actual. The decrease is attributable to a reduction of $6.2m in supplier expenses, due primarily to the realisation of efficiencies from:

    • The successful completion of the CASA Improvement programme in 2005-06, and
    • Centralising processing for CASA permissions.

    In 2006-07 CASA will see a reduction in full time equivalent employees and an increase in employee expenses of $3.9m. This disparity is explained by:

    • A move to increase CASA's focus on core operational activities, which will see an increase in the ratio of technical to non-technical staff,
    • Increases in salary through the certified agreement which will be offset by productivity gains, and
    • An increase in workers compensation premium.

    Budgeted departmental balance sheet

    CASA's budgeted net asset position of $62.1m represents a decrease of $1.5m from the 2005 06 estimated actual. This is represented by a decrease in intangibles of $2.1m (depreciation/amortisation of information technology assets replaced in 2005-06), a decrease in cash of $0.9m (purchase of infrastructure, plant and equipment), which results in a $1.4m increase in infrastructure, plant and equipment.

    Chart 5.2: Budgeted Assets for 2006-07


    (click on the image to view the larger version)

    CASA's liabilities of $31.3m represents a decrease of $1.5m from the 2005-06 estimated actual. This is represented by a decrease of $1.7m (finalisation of lease commitments for desktop and mainframe IT equipment), offset by a slight increase in employee leave entitlements and creditors. CASA'S primary liability continues to be accrued employee leave entitlements of $20.6m.

    Chart 5.3: Budgeted Liabilities for 2006-07


    (click on the image to view the larger version)

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    5.2 Budgeted financial statements tables

    Table 5.1: Budgeted departmental income statement (for period ended 30 June)

    Table 5.2: Budgeted departmental balance sheet (as at 30 June)

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

    Table 5.4: Departmental statement of changes in equity - summary of movement (Budget year 2006-07)

    Table 5.5: Departmental capital budget statement

    Table 5.6: Departmental property, plant, equipment and intangibles - summary of movement (Budget year 2006-07)

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    5.3 Notes to the financial statements

    1. Accounting policy

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

      • the Finance Minister's Orders
      • Australian Accounting Standards, including AEIFRS adjustments
      • 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 and used by CASA in producing its outputs and include:

      • computers, plant and equipment used in producing 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.

      CASA has no administered items.

    3. Departmental revenue

      Appropriations - represents the purchase of outputs from CASA by the government and is recognised to the extent that it has been received by CASA's bank account.

      Revenue from other sources - represents sales of goods and services and interest revenue which is recognised at the time that it is imposed on customers.

    4. Departmental expenses

      Employee expenses - represents payments and net increases in entitlements to employees for services rendered in the financial year.

      Supplier's expenses - represents payments made to suppliers for goods and services used in providing CASA's outputs.

      Depreciation and amortisation expenses - depreciable plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life to CASA using straight-line calculation method.

    5. Net surplus or deficit attributable to the Australian Government

      CASA has budgeted for a breakeven position in 2006-07.

    6. Departmental assets - financial assets

      The primary financial asset relates to cash. Financial assets are used to fund CASA's capital replacements, employee entitlements, creditors and to provide working capital.

    7. Departmental assets - non-financial assets

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

    8. Departmental liabilities - interest bearing liabilities

      CASA's desktop and mainframe IT environment is provided under lease, in accordance with the Government's IT outsourcing arrangements.

    9. Departmental liabilities - provisions and payables

      Provision has been made for CASA's 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 than the amount which employees are entitled each year.

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

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