Civil Aviation Safety Authority
Section 3: 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 operating result for 2006-07. This result is an increase of $2.5m from last year's operating deficit which can be attributed to the funding of the Long Term Funding Strategy. Total revenues are estimated to be $122.7m, an increase of $3.8m from Budget. The increase is primarily as a result of increased funding from the Airspace management reform measure disclosed since the 2006-07 Budget ($2.0m), regulatory services ($1.5m) and miscellaneous income ($0.3m).
Chart 3.1 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 3.1: Revenue
Total expenditure in 2006-07 is estimated to be $122.7m, an increase of $2.1m from the 2005 06 actual result. The increase is primarily as a result of the expenditure associated with the Airspace management reform measure disclosed since the 2006-07 Budget and producing security identification cards.
Budgeted departmental balance sheet
CASA's budgeted asset position of $62.1m represents a decrease of $5.4m from the 2005 06 actual. This is represented by a reduction in financial assets of $7.7m (decrease in cash of $5.2m, investments of $1.0m and accrued expenses of $1.7m, and an increase in receivables of $0.2m). This is partly offset by an increase in non-financial assets by $2.2m.
Chart 3.2: Budgeted assets for 2006-07
CASA's liabilities of $31.1m represents a decrease of $5.4m from the 2005 06 actual. This is represented by a decrease of $5.9m in employee leave entitlements and in lease commitments of $0.5m, offset by an increase in creditors and other provisions of $1.0m. CASA'S primary liability continues to be accrued employee leave entitlements of $18.6m.
Chart 3.3: Budgeted liabilities for 2006-07
Table 3.5: Departmental capital budget statement
Table 3.6: Departmental property, plant, equipment and intangibles - summary of movement (Budget year 2006-07)
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 the 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.