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Australian Transport Safety Bureau

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

ATSB does not receive administered funds.

3.1.2: Special Accounts

ATSB does not maintain Special Accounts.

3.1.3: Australian Government Indigenous Expenditure

ATSB has no Australian Government Indigenous Expenditure to report.

3.2: Budgeted financial statements

3.2.1: Differences in agency resourcing and financial statements

The ATSB 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

Budgeted departmental comprehensive income statement 

The ATSB is budgeting for a breakeven position in each of the budget and forward years.

Revenue

Net appropriation revenue of $22.3m will be provided to the new ATSB in 2009-10. This includes an appropriation of $1.9m from the continuing Indonesia Transport Safety Assistance Program (ITSAP) which is in the final year of a 3 year program. The appropriation is based on the ATSB's operating budget in 2008-09 as part of the Department of Infrastructure, Transport, Regional Development and Local Government (Infrastructure), plus an allocation of corporate overhead for key support functions previously performed by the corporate division of Infrastructure.

Expenses

Budgeted operating expenditure in 2009-10 is comprised of employee expenses (61%), supplier expenses (33%) and depreciation (6%). The majority of employees of the new ATSB Agency will comprise existing staff of Infrastructure (working in ATSB and Corporate divisions) who will transfer to the new ATSB Agency from 1 July 2009. Budgeted expenditure includes requirements for the staffing and operation of the new ATSB Commission, and the additional governance responsibilities of an independent FMA Act Agency. The new ATSB Agency will remain located in existing premises in Canberra, Adelaide and Brisbane under an MOU with Infrastructure.

Budgeted departmental balance sheet

The ATSB's budgeted balance sheet at 30 June 2010 reflects the expected opening transfers of assets and liabilities from Infrastructure, based on projected closing balances at 30 June 2009, and movements during the 2009-10 year. The ATSB's net asset (equity) position is forecast to remain constant over the budget and forward years.

Financial Assets

Receivables include $2.9m of transfer funding for asset replacement (accumulated depreciation) and $2.5m of transfer funding for funded employee entitlements.

Non Financial Assets

These comprise plant, equipment and intangible assets utilised by the ATSB which will transfer at book value on 30 June 2009.

Provisions and Payables

The ATSB's primary liability is accrued employee leave entitlements.

3.2.3: Budgeted financial statements tables

Table 3.2.1: Budgeted departmental comprehensive income statement (for the period ended 30 June) 

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 

Table 3.2.3: Budgeted departmental statement of cash flows (for the period ended 30 June) 

Table 3.2.4: Departmental statement of changes in equity - summary of movement (Budget year 2009-10) 

Table 3.2.5: Departmental capital budget statement 

Table 3.2.6: Statement of asset movements - departmental 

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 ATSB 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.

ATSB 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 ATSB, using the straight-line calculation method.

6. Departmental revenue

Revenue from government represents the purchase of outcomes from ATSB by the government and is recognised to the extent that it has been received into ATSB'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 ATSB's capital program, employee entitlements, creditors and to provide working capital.

8. Departmental assets - non-financial assets

These items represent future economic benefits that ATSB 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 ATSB'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 2009-10