Australian Maritime Safety Authority
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the Budget year 2009-10. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government indigenous expenditure.
3.1: Explanatory tables
3.1.1: Movement of administered funds between years
AMSA does not receive administered funds.
3.1.2: Special Accounts
AMSA does not maintain Special Accounts.
3.1.3: Australian Government Indigenous Expenditure
AMSA has no Australian Government Indigenous Expenditure to report.
3.2: Budgeted financial statements
3.2.1: Differences in agency resourcing and financial statements
AMSA does not have any significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards (AAS) and Government Finance Statistics (GFS).
3.2.2: Analysis of budgeted financial statements
AMSA is budgeting for a net deficit of $11.8m in 2009-10, which reflects the potential impact on AMSA levy revenue and fee for service revenue of the Global Financial Crisis. The current downturn in the shipping industry, particularly in the commodities sector, is anticipated to lead to a lowering of shipping activity. This is expected to reduce the rate of growth in levy payments because of a smaller population of ships making less frequent visits to Australian ports. It also is likely to reduce the demand for AMSA's fee based maritime services. AMSA will draw upon its accumulated surplus and cash reserves to offset the shortfall in levy and fee for service revenue.
AMSA's main revenue source is from government funding. This includes levies collected from the shipping industry and appropriated under Section 48 of the AMSA Act as Special Appropriations to fund AMSA's ship safety and environment protection functions and Community Service Obligation funding for search and rescue functions. AMSA has two lesser revenue sources from the sale of goods and services and from interest. In 2009-10, AMSA estimates receiving total revenue of $121.1m compared to $123.4m in the 2008-09 Budget, as summarised in the table below:
AMSA Revenue comparison
AMSA Revenue Sources
|Special Appropriations of levies collected from the shipping industry||$65.9m||$64.1m|
|Annual departmental appropriation for search and rescue functions||$40.5m||$39.8m|
|Annual departmental appropriation for search and rescue response||$9.8m||$13.0m|
|Revenue from independent sources (fees and charges and interest)||$4.9m||$6.5m|
Revenue from government: levy funding
AMSA has three levies corresponding to its key ship safety and environment functions:
- Regulatory Functions Levy funds ship safety and environment protection regulation;
- Marine Navigation Levy funds the national network of marine aids to navigation, and
- Protection of the Sea Levy funds pollution and emergency response services.
In 2009-10, levy revenue is estimated to total $65.9m, which is $1.8m higher than $64.1m in the 2008-09 Budget, mainly resulting from the increased levy collection of $4.3m anticipated from the proposed rise in the rate of the Protection of the Sea Levy required to fund the National Maritime Emergency Response Arrangements. This will be mostly offset by a decline expected in the collection of the Marine Navigation and Regulatory Functions levies reflecting a reduced level of shipping activity expected from lower demand forecast in commodity exports.
AMSA plans to phase-in the final required increase in the Protection of the Sea Levy to recover the full cost of the National Maritime Emergency Response Arrangements in 2009-10. This will involve a proposed increase to the levy rate from 9.6 to 11.25 cents per net registered ton. The change in the levy rate will require the amendment of regulations made pursuant to the Protection of the Sea (Shipping Levy) Act 1981 and is subject to the usual regulatory approval process.
Revenue from government: Community Service Obligation funding
AMSA receives an annual departmental appropriation for providing a search and rescue co-ordination service to the community, which is estimated at $40.5m in 2009-10. AMSA also receives an annual departmental appropriation to cover the cost of search and rescue incidents (mainly aircraft/helicopter hire) estimated at $9.8m in 2009-10.
Appropriation comparison between 2009-10 and 2008-09
The table below compares the appropriations in the 2009-10 and the 2008-09 Budgets:
|Appropriation Bill No. 1|
|Australian Search and Rescue Function||40,473||39,763|
|Australian Search and Rescue Response||9,843||13,061|
|Marine Navigation Levy||20,187||21,397|
|Regulatory Functions Levy||27,527||28,812|
|Protection of the Sea Levy||18,147||13,888|
Revenue from independent sources: sale of goods and services and interest
AMSA may make determinations fixing charges under section 47 of the AMSA Act, which requires these fees and charges to be reasonably related to the costs incurred by AMSA in their provision. AMSA has a range of services with charges based on the average cost of delivering a specific service or the time taken to deliver the service multiplied by a standard hourly rate and may include waiting time, travelling expenses and cancellation fees. These services include: inspection of ships, cargo, and ships' safety equipment; activities involved with issuing certificates of competency to seafarers, including conducting oral practical examinations for navigating and engineering officers and assessing sea time prerequisites for qualifications; issuing and renewing coastal pilot licences; and services provided by the Australian Shipping Registration Office.
In 2009-10, AMSA's total estimated revenue from independent sources is $4.9m ($6.5m in 2008-09). This includes the sale of goods and services amounting to $3.9m ($4.8m in 2008-09) and interest of $1.0m ($1.7m in 2007-08). The lower interest accrual results from the reduction in cash reserves, which are to be used to offset the anticipated decline in levy revenue and fee based maritime services due to the impact of the Global Financial Crisis.
Resources for AMSA's output groups
Chart 3.2.1 shows the resources allocated to AMSA's two subprograms since 2005-06:
Chart 3.2.1: Trends in Resources for AMSA Subprograms
(click on the image to view the larger version)
Chart 3.2.2 shows the overall trend in AMSA's revenue and expenses since 2005-06. The rise in revenue and expenses since 2005-06 results from two influences. The first is the Budget measures in 2004-05 and 2005-06 allocating additional funding to enhance AMSA's search and rescue capability. The second is the rise in levy revenue required to fully recover the costs of AMSA's functions in providing emergency response services under the National Maritime Emergency Response Arrangements. AMSA budgeted for a deficit in 2006-07 to 2008-09 to support the proposed staged increase in the levy revenue required to fund the National Maritime Emergency Response Arrangements, with the aim of achieving full cost recovery from the shipping industry in 2009-10. AMSA has been drawing upon its accumulated surplus and cash reserves to cover the deficit years.
Chart 3.2.2: AMSA Revenue and expenses
(click on the image to view the larger version)
3.2.3: Budgeted financial statements tables
Table 3.2.4: Departmental statement of changes in equity - summary of movement (Budget year 2009-10)
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 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 AMSA that are used in producing its outcomes and include:
- infrastructure, plant and equipment used in providing goods and services;
- liabilities for employee entitlements;
- revenue from appropriations or independent sources in payment for outcomes; and
- employee, supplier and depreciation expenses incurred in providing agency outcomes.
AMSA has no administered items.
3. Departmental expenses - employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
4. Departmental expenses - suppliers
Payments to suppliers for goods and services used in providing agency outcomes.
5. 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 AMSA, using the straight-line calculation method.
6. Departmental revenue
Revenue from government represents the purchase of outcomes from AMSA by the government and is recognised to the extent that it has been received into AMSA'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.
7. Departmental assets - financial assets
The primary financial asset relates to receivables. Financial assets are used to fund AMSA's capital program, employee entitlements, creditors and to provide working capital.
8. Departmental assets - non-financial assets
These items represent future economic benefits that AMSA will consume in producing outcomes. 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 AMSA'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.