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Department of Infrastructure, Transport, Regional Development and Local Government

Section 3: Explanatory tables and budgeted financial statements

3.1: Explanatory tables

3.1.1: Special Accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department. The corresponding table in the 2009-10 Portfolio Budget Statements (PBS) is Table 3.1.2.

Table 3.1.1: Estimates of Special Account flows and balances

3.2: Budgeted financial statements

3.2.1: 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 2009-10. The loss is attributable to costs associated with planned, but non-ongoing, National Office leasehold improvements.

Total expenses are estimated to be $217.8m in 2009-10, a decrease of $1.9m from Budget. The decrease is primarily due to measures announced since the 2009-10 Budget ($2.7m) partially offset by an increase in own source income ($0.8m).

Chart 3.1: Total departmental expenses

Chart 3.1: Total departmental expenses

Budgeted departmental balance sheet

The Department's major assets are in buildings ($30.1m) and intangibles ($21.0m). The Department's primary liability continues to be accrued employee leave entitlements estimated to be $32.7m.

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 $441.0m, representing a decrease of $42.1m from Budget. The decrease is primarily due to dividends received from Airservices Australia ($34.8m), levies collected under the Oil Pollution Compensation Fund ($4.5m) and aircraft noise levies at Adelaide Airport ($3.4m), partially offset by increased revenue from Motor Vehicle Standards Regulations fees ($0.7m).

Administered expenses, such as for grants and subsidies programs, are budgeted at $3 567.0m, representing an increase of $14.2m from Budget and will be incurred for administered items set out at Section 2. The increase is due to:

  • the impact of measures announced since the 2009-10 Budget ($158.5m);
  • recognition of expenses associated with prepayments made in 2005-06 and 2006-07 ($17.4m); and
  • changes in the funding profile of several administered expense programs ($1.0m).

This increase has been partially offset by:

  • the reclassification between the Department and the Treasury of expenses associated with the Commonwealth of Australian Government's federal financial framework reforms ($81.6m); and
  • the movement of funds between years for administered expense programs ($81.1m).

A new framework for federal financial relations was implemented in a staged manner from 1 January 2009. Under these arrangements specific purpose payments (SPPs) are now made through payments from the Commonwealth Treasury to and through State and Territory Treasuries. Chart 3.2 below provides details on expenses reported by the Department as well as expenses now recognised by the Treasury associated with these new arrangements.

Chart 3.2: Total administered expenses

Chart 3.2: Total administered expenses

Schedule of budgeted assets and liabilities administered on behalf of government

Total assets are expected to increase by $1 035.4m to $3 965.3m from the 2008-09 actual result. 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).

3.2.2: 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

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 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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