Civil Aviation Safety Authority
Section 3: Explanatory tables and budgeted financial statements
3.1.1: Special Accounts
CASA does not maintain Special Accounts.
3.2.1: 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
CASA is budgeting for a breakeven operating result for 2009-10. The total revenues are estimated to be $153.4m, an increase of $0.6m from the 2009-10 Budget. The increase is primarily the result of an increase in Annual Appropriation of $3.8m for resources to strengthen CASA's capabilities, and a further $0.3m initial funding to undertake air strip risk assessment in Papua New Guinea, offset by a reduction in Special Appropriations of $3.4m for aviation fuel excise.
Budgeted departmental balance sheet
CASA's budgeted asset position of $101.0m for 2009-10 represents an increase of $2.0m from the 2008-09 actual. The increase is due to the increase in financial assets (an increase of investment of $7.8m), offset by a reduction in non-financial assets of $5.8m (a decrease in Computer Software of $4.0m and decrease of Infrastructure, Plant and Equipment of $1.8m).
3.2.2: Budgeted financial statements tables
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
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 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 comprises the sale of forms and documents, advertising, administrative fines and other sundry revenue. Estimates are derived based on averages from prior year receipts.
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