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Department of Infrastructure, Transport, Regional Development and Local Government

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

Administered funds can be provided for a specified period, for example under annual Appropriation Acts. Funds not used in the specified period are subject to review by the Minister for Finance and Deregulation, and may be re-appropriated to a future period, in accordance with provisions in legislation. Table 3.1.1 shows the movement of administered funds approved since the 2008-09 Additional Estimates.

Table 3.1.1: Movement of administered funds between years 

3.1.2: Special Accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special Accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by the Department.

Table 3.1.2: Estimates of Special Account cash flows and balances 

3.1.3: Australian Government Indigenous Expenditure

Table 3.1.3: Australian Government Indigenous Expenditure 

3.2: Budgeted financial statements

3.2.1: Differences in agency resourcing and financial statements

Infrastructure 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).

The difference between the resource statement in Section 1 and the financial statements contained within Section 3 mainly relates to the timing of accruals for items such as depreciation, employee entitlements and other creditors and debtors, as well as the expensing of prepayments made in prior periods.

3.2.2: Analysis of budgeted financial statements

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

Departmental

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 $219.7m in 2009-10, a decrease of $31.7m from the 2008-09 estimated actual. The decrease is primarily due to the net impact of the transfer of functions to the Australian Transport Safety Bureau which will be established as an independent Statutory Agency from 1 July 2009 ($22.3m).

Chart 3.1: Total departmental expenses

Chart 3.1: Total departmental expenses

(click on the image to view the larger version)

The increase in expenses between 2004-05 and 2005-06 largely reflects measures associated with transport security activities. The subsequent increases in 2007-08 and 2008-09 reflect the impact of measures announced in the 2007-08 and 2008-09 Budgets.

Budgeted departmental balance sheet

The Department's major assets are in buildings ($34.4m) and intangibles ($15.8m). The Department's primary liability continues to be accrued employee leave entitlements estimated to be $34.5m.

Administered

Schedule 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 $483.1m, representing a decrease of $687.3m from the 2008-09 estimated actual. The decrease is primarily due to the profile of receipts from the Building Australia Fund special account for grants under the Nation Building Plan for the Future administered item ($734.0m), partially offset by an increase in dividend ($45.4m);

Administered expenses are budgeted at $3 552.8m, representing a decrease of $5 116.2m from the 2008-09 estimated actual and will be incurred for the administered items set out at Section 2. The decrease is due to:

  • the impact of expenses associated with the Commonwealth of Australian Government's federal financial framework reforms, which are now recognised by the Treasury ($3 166.3m);
  • the impact on the Local Government Financial Assistance Grants administered item of indexation factors and the acceleration to 2008-09 the first quarter payment of 2009-10 ($912.2m);
  • changes in the funding profile of the Nation Building Plan for the Future administered item ($734.0m); and
  • changes in the funding profile of several administered items.

Chart 3.2: Total administered expenses

Chart 3.2: Total administered expenses

(click on the image to view the larger version)

Schedule of budgeted assets and liabilities administered on behalf of government

Total assets are expected to increase by $1 038.2m to $3 885.7m from the 2008-09 estimated actual. The increase relates mainly to an equity injection for the Australian Rail Track Corporation ($678.0m) and equity investments ($754.0m), partially offset by the reduction of prepayments associated with the Nation Building Program ($390.6m) and a reduction in receivables due to loan repayments ($5.7m).

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 

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) 

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June) 

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) 

Table 3.2.10: Schedule of administered capital budget 

Table 3.2.11: Schedule of asset movements - administered 

3.2.4: Notes to the financial statement

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 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 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 outputs.

5. Departmental expenses - depreciation and amortisation

Depreciable infrastructure, plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life to the Department, using the straight-line calculation method.

6. 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 Department'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 Department.

7. Departmental assets - financial assets

The primary financial asset relates to receivables. Financial assets are used to fund the Department's 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 - interest bearing liabilities

The main interest bearing liabilities are information technology assets that the Department has procured under finance leases. These are written-off over the life of the lease.

10. Departmental liabilities - provisions and payables

Provision has been made for the Department'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.

11. Administered revenue

Details of the range of taxation and non-taxation revenue collected by the Department are provided at Appendix 3.2.1.

12. Administered expenses

The majority of the Department's administered programs are classified as grants, the most significant being the Local Government Financial Assistance Grants, Nations Building Program and Nation Building Plan for the Future administered items.

13. Administered assets - financial assets

Comprise primarily the Australian Government's investments in portfolio agencies.

Appendix 3.2.1: Administered income

Appendix 3.2.2: Administered loan repayments

 

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Budget 2009-10