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Civil Aviation 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

CASA does not receive administered funds.

3.1.2: Special Accounts

CASA does not maintain Special Accounts.

3.1.3: Australian Government Indigenous Expenditure

CASA has no Australian Government Indigenous Expenditure to report.

3.2: Budgeted financial statements

3.2.1: Differences in agency resourcing and financial statements

CASA 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

An analysis of CASA's budgeted financial statements, as reflected in the budgeted departmental financial statements for 2009-10, is provided below.

Budgeted departmental income statement
The budget and forward years reflect periods of increasing revenue and operating expenses. CASA is budgeting for a breakeven position for the 2009-10 financial year. Total revenue in 2009-10 is estimated to be $152.8m, which is an increase of $4.8m from the 2008-09 estimated actual revenue. This is mainly attributable to increased funding provided as part of a new budget measure for governance ($0.5m), an increase in expected special appropriation revenue from aviation fuel excise ($3.2m), an increase in revenue from cost recovery ($3.1m), and is offset by a decrease in funding for provision of transport safety assistance to Indonesia ($0.6m), interest revenue ($1.2m) and other revenue ($0.2m).

Chart 3.1 illustrates CASA's revenue funding. It is expected that revenue from special appropriations will increase as a result of forecast higher volumes for aviation fuel excise collections in the forward years. The fall in total revenue in 2010-11 reflects the finalisation of funding for two of CASA's activities.

Chart 3.1: Revenue

Chart 3.1 Revenue

(click on the image to view the larger version)

Total expenses and borrowing costs in 2009-10 are estimated to be $152.8m, an increase of $7.1m from the 2008-09 estimated actual. The overall increase is primarily attributable to:

  • Employee expenses increasing by $4.0m. This increase in expenses reflects an annual pay increase in 2009-10, an increase in the staffing level to achieve CASA's service delivery, as well as filling existing vacancies.
  • Supplier expenses increasing by $0.4m. This is due to changes in operational demand.
  • Depreciation and amortisation expenses increasing by $3.0m. The movement reflects the increase in CASA's asset base as projects reach completion.

Budgeted departmental balance sheet
CASA's net asset (or equity) position is forecast to remain constant over the Budget and forward years, reflecting that current funding levels are expected to be adequate to support CASA's current operational requirements during this period.

CASA's budgeted total assets of $103.0m in 2009-10 represents an increase of $2.0m from the 2008-09 estimated closing position. This is represented by an increase in financial assets of $7.8m, offset by a decrease in non-financial assets (consumption of infrastructure, plant and equipment and software) of $5.8m.

Chart 3.2: Budgeted Assets for 2009-10

Chart 3.2: Budgeted Assets for 2009-10

(click on the image to view the larger version)

CASA's budgeted liabilities of $40.9m in 2009-10 represent an increase of $1.9m from the 2008-09 estimated closing position. This comprises an increase to employee provisions of $2.0m and supplier payables of $0.5m, offset by a decrease of $0.6m in other payables and accrued expenses. CASA's primary liability continues to be accrued employee salary and leave entitlements of $23.6m. 

Chart 3.3: Budgeted Liabilities for 2009-10

Chart 3.3: Budgeted Liabilities for 2009-10

(click on the image to view the larger version)

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

Basis of accounting

The budgeted financial statements have been prepared on an accruals basis and are in accordance with the historical cost convention, except for infrastructure, plant and equipment assets and employee entitlements. Infrastructure, plant and equipment assets are revalued every year using a fair value methodology. Employee entitlements are measured at the present value of estimated future cash flows based on periodic actuarial assessment.

The budgeted financial statements contain estimates prepared in accordance with the requirements of the Australian Government's financial budgeting and reporting framework, including:

  • the Finance Minister's Orders;
  • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board; and
  • specific guidance provided by the Department of Finance and Deregulation.

Departmental and administered items

Agency assets, liabilities, revenues and expenses are those items that are controlled and used by CASA in providing its goods and services 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 services; and
  • employee, supplier and depreciation expenses incurred in providing agency services.

CASA has no administered items.

Budgeted departmental income statement

 Revenue from Government

Appropriation estimates for ordinary activities are generally adjusted for wage cost indexation less an efficiency dividend. Estimates for funding for special appropriations have been made on the basis of expected aviation fuel excise collections.

The Department of Infrastructure, Transport, Regional Development and Local Government (The Department) draws down ordinary and special appropriations on behalf of CASA.

Goods and services revenue

Goods and services revenue primarily represents revenue from cost recovery arrangements and purchase provider arrangements. Estimates are derived from projected service level activities and agreed purchase provider arrangements.

Other revenue

Other revenue comprises the sale of forms and documents, advertising, administrative fines and other sundry revenue. Estimates are derived based on averages from prior year receipts.

Departmental expenses

Employee expenses represent payments and net increases in entitlements to employees for services rendered in the financial year.

Supplier expenses represent payments made to suppliers for goods and services used in providing CASA's goods and services.

Depreciation and amortisation expenses comprise depreciable plant and equipment, buildings and intangible assets as they are written-off to their estimated residual values over their projected useful life to CASA using the straight-line calculation method.

Departmental assets - financial assets

CASA's financial assets are maintained to fund CASA's capital replacements, employee entitlements, creditors and to provide working capital. In addition, CASA's cash reserves provide a contingency to offset fluctuations in aviation fuel excise to avoid calls for additional budget supplementation.

Departmental assets - non-financial assets

These items primarily represent future economic benefits that CASA will consume in providing goods and services. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.

Other non-financial assets represent prepaid supplier expenses as at balance date.

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.

Appendix 3.2.1: Total budgeted revenue 

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Budget 2009-10