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Section 5 : Budgeted Financial Statements


An analysis of CASA's budgeted financial statements, as reflected in the budgeted departmental financial statements for 2007-08, is provided below.

Budgeted departmental income statement

CASA is budgeting for a breakeven position for the 2007-08 financial years. This result is a decrease of $9.7m from the 2006-07 estimated surplus. Total revenue in 2007-08 is estimated to be $138.6m, an increase of $14.7m from the 2006-07 estimated actual revenue. The increase reflects the implementation of the LTFS and regulatory service fees ($5.8m), funding for new measures ($4.1m), funding for airspace regulation (2.6m), funding from a purchaser-provider arrangement ($2.2m). Bill 1 appropriations, excluding funding for new measures, has decreased by $0.1m to $40.4m.

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 expenses and borrowing costs in 2007-08 are estimated to be $138.6m, an increase of $24.4m from the 2006-07 estimated actual. The overall increase is attributable to:

  • Employee expenses increasing by $4.7m,
  • Supplier expenses increasing by $19.1m and
  • Depreciation and amortisation expenses increasing $0.6m.

In 2007-08 CASA will see an increase in full time equivalent employees due to the introduction of new budget measures.

Budgeted departmental balance sheet

CASA's budgeted total assets of $75.2m in 2007-08 represents an increase of $3.4m from the 2006-07 estimated closing position. This is represented by an increase in financial assets of $0.8m and non-financial assets (infrastructure, plant and equipment and software) of $2.6m.

Chart 5.2: Budgeted Assets for 2007-08

(click on the image to view the larger version)

CASA's budgeted liabilities of $33.4m in 2007-08 represent an increase of $2.3m from the 2006-07 estimated closing position. This is represented by an increase of $1.4m in finance leases and $0.9m in provisions and creditors (including employee entitlements and supplier payables). CASA'S primary liability continues to be accrued employee salary and leave entitlements of $19.2m.

Chart 5.3: Budgeted Liabilities for 2007-08

(click on the image to view the larger version)


Table 5.1: Budgeted departmental income statement (for the 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 2007-08)

Table 5.5: Departmental capital budget statement

Table 5.6: Departmental property, plant, equipment and intangibles - summary of movement (Budget year 2007-08)


  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 into CASA's bank account.

    Revenue from other sources, representing sales from goods and services, is recognised when:
    • the risks and rewards of ownership have been transferred to the buyer
    • the seller retains no managerial involvement nor effective control over the goods
    • the revenue and transaction costs incurred can be reliably measured, and
    • it is probable that the economic benefits associated with the transaction will flow to the Entity.

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

    Supplier 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 2007-08.

  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.

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

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Budget 2006-07