Department of Infrastructure, Transport, Regional Development and Local Government
SECTION 3: EXPLANATORY TABLES AND BUDGETED FINANCIAL STATEMENTS
3.1: Explanatory Tables
3.1.1: Special Accounts
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department. The corresponding table in the 2008-09 Portfolio Budget Statements (PBS) is Table 3.1.3.
Table 3.1.1: Estimates of Special Account flows
3.1.2: Estimates of variations to Average Staffing Level
Changes in Average Staffing Level (ASL) are presented in the 2008-09 Portfolio Additional Estimates Statements (PAES) at the whole of agency level to demonstrate any movements since Budget. The ASL figures for Budget were reported in the 2008-09 PBS in each Agency Outcome Resourcing Table.
Table 3.1.2: Average Staffing Level
3.2: Budgeted Financial Statements
3.2.1: Analysis of budgeted financial statements
An analysis of the Departments budgeted financial statements, as reflected in the budgeted departmental financial statements and administered schedules for 2008-09, is provided below.
Budgeted departmental income statement
The Department is budgeting for approved operating losses in 2008-09 and 2009-10. The losses are attributable to costs associated with planned, but non-ongoing, National Office leasehold improvements.Total expenses are estimated to be $247.4m in 2008-09, an increase of $8.9m from Budget. The increase is primarily due to measures announced since the 2008-09 Budget ($8.2m) and the net impact of the transfer of functions from the Department of Environment, Water, Heritage and the Arts ($0.7m).
Chart 3.1: Total departmental expenses
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.
The increase in expenses between 2004-05 and 2005-06 largely reflects measures associated with transport security activities. The subsequent increase in 2007-08 reflects the impact of measures announced in the 2007-08 Budget.Budgeted departmental balance sheet
The Departments major investments are in land and buildings ($39.4m) and intangibles ($18.6m). The Departments primary liability continues to be accrued employee leave entitlements estimated to be $36.1m.
AdministeredSchedule of budgeted income and expenses administered on behalf of government
The Department administers the collection of taxes, fees and fines, other non-taxation revenue and interest and dividends estimated at $223.2m, representing a decrease of $4.9m from Budget. The decrease is primarily due to dividends received from Airservices Australia ($9.9m), partially offset by increased revenue from levies collected under the Oil Pollution Compensation Fund ($2.5m) and fees collected for airport land tax equivalents ($2.5m).
Administered expenses, such as for grants and subsidies programs, are budgeted at $6 411.5m, representing an increase of $677.1m from Budget and will be incurred for the programs set out at Section 2, Table 2.2 for Outcome 1, Table 2.4 for Outcome 2 and Table 2.6 for Outcome 3. The increase is due to:
- the movement of funds between years for administered expense programs ($25.1m);
- the inclusion of payments to Portfolio CAC Act bodies in the Infrastructure Portfolio, relating to Special Appropriations, which were not reported in the 2008-09 PBS ($237.2m);
- recognition of expenses associated with prepayments made in 2005-06 and 2006-07 ($85.5m);
- changes in the funding profile of several administered expense programs ($21.3m); and
- the impact of measures announced since the 2008-09 Budget ($308.0m).
Chart 3.2: Total administered expenses
Schedule of budgeted assets and liabilities administered on behalf of government
Total assets are expected to decrease by $1 033.1m to $2 400.5m from the 2007-08 actual result. The decrease mainly relates to the expensing of prepayments associated with the AusLink program ($1 021.5m) and a reduction in receivables due to loan repayments ($9.0m).
3.2.3: Budgeted financial statements tables
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
3.2.4: 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 Ministers 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 the Department and are used by the Department 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 programs that are controlled by government and managed, or oversighted, by the Department on behalf of government. Administered expenses included grant payments and subsidies, and administered revenues include levies, fees and fines.
3. Departmental revenue
Revenue from government represents the purchase of outputs from the Department by government and is recognised to the extent that it has been received into the Departments 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 Department.
4. Departmental expenses - employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
5. Departmental expenses - suppliers
Payments to suppliers for goods and services used in providing agency outputs.
6. Departmental expenses - depreciation and amortisation
Depreciable infrastructure, plant and equipment, buildings and intangible assets are writtenoff to their estimated residual values over their estimated useful life to the Department, using the straight-line calculation method.
7. Departmental assets - financial assets
The primary financial asset relates to receivables. Financial assets are used to fund the Departments capital program, employee entitlements, creditors and to provide working capital.
8. 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.
9. Departmental liabilities - provisions and payables
Provision has been made for the Departments 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.
10. Administered revenue
Details of the range of taxation and non-taxation revenue collected by the Department are provided at Appendix 3.2.1.
11. Administered expenses
The majority of the Departments administered programs are classified as grants, the most significant being the Local Government Financial Assistance Grants and AusLink programs.
12. Administered assets - financial assets
Comprise primarily the Australian Governments investments in portfolio agencies.
Appendix 3.2.1: Administered income
Appendix 3.2.2: Administered loan repayments