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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 2010-11.  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 expecting to deliver an operating surplus of around $1.0m in 2009-10.  In the Budget and forward years, a breakeven position is expected once the impact of depreciation and amortisation expenses is factored out.

Revenue

Net appropriation revenue of $20.7m will be provided to the ATSB in 2010-11.  This reduction from the $22.8m available in 2009-10 reflects: the lapsing of $1.9m from the Indonesia Transport Safety Assistance Program (ITSAP) which is in the final year of a 3 year program; an additional $0.8m for the National Transport Regulator implementation; the extinguishment of approximately $1.5m in funding for depreciation and amortisation expenses; and an increase of $0.7m in expected cost recoveries influenced by the Government's decision to extend its support to Indonesia over the next four years.

This latter adjustment reflects that the ATSB is expected to spend around $0.7m per annum in enhancing Indonesia's capacity to conduct accident and incident investigations and will recover this expenditure from the Department of Infrastructure who is coordinating the assistance.

Expenses

Budgeted operating expenditure in 2010-11 is comprised of employee expenses (62%), supplier expenses (30%) and depreciation (8%).  The most significant variance in expenditure over the forward years is the decline of amortisation expense as past expenditure on intangible software assets will be fully amortised by 30 June 2012.

Budgeted departmental balance sheet

The ATSB's budgeted balance sheet at 30 June 2011 reflects the expected balances for its assets and liabilities as well as retained earnings and contributed equity, based on the projected operating results for 2009-10 and the Budget year.  The ATSB's net asset (equity) position is expected to decline over the forward years as it is required to fund its depreciation and amortisation expenses from internal resources.

Financial Assets

Receivables include around $6.5m in past appropriations of the Department of Infrastructure, which were transferred under S32 of the FMA Act 1997 as part of its opening balance.  At 30 June 2010, this amount is expected to be approximately $7.7m, primarily reflecting the forecast operating surplus of $1.0m in 2009-10.

Non Financial Assets

These comprise plant, equipment and intangible software assets utilised by the ATSB, the largest component of which is the agency's investment in its Safety Investigation Information Management System.

The ATSB owns no property or fit-out assets and leases its accommodation and uses fit-out under an MOU with the Department of Infrastructure.

Provisions and Payables

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

3.2.3: Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (showing net cost of services (for the period ended 30 June)

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

Table 3.2.3: Departmental statement of changes in equity - summary of movement (Budget year 2010-11)

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

Table 3.2.5: Departmental capital budget statement

Table 3.2.6: Statement of asset movements (2010 11)

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 on the delivery of its outcome.
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 ATSB 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 a receivable comprising prior year appropriations of the Department of Infrastructure which was transferred to the ATSB upon its formation on 1 July 2009.

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 the expected unpaid supplier expenses as at balance date.

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Budget 2010-11