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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 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

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 2010-11, is provided below.

Budgeted departmental income statement

2009-10 budgeted result

CASA is budgeting an operating loss of $1.583m in 2009-10. This loss represents the forecast shortfall in aviation fuel excise revenue during 2009-10 as compared to original budget estimates in the 2009-10 Budget.

2010-11 Budget and forward years budgeted result

The Government is providing an additional $89.9m over four years funded through an increase in aviation fuel excise, to strengthen the CASA's capacity to maintain and enhance aviation safety.

CASA is budgeting for losses in 2010-11 and 2011-12 followed by surpluses in 2012-13 and 2013-14. This reflects estimated revenue projections required to achieve CASA's increase in funding of $89.9m over the four year period.  This is achieved through an increase in the aviation fuel excise rate of 0.702 cents per litre from 2.854 cents per litre to 3.556 cents per litre.

Chart 3.1 illustrates CASA's revenue funding. It is expected that revenue from special appropriations will increase in the budget and forward years as a result of forecast higher volumes for aviation fuel excise collections in the forward years as well as the increase in the excise rate effective 1 July 2010.  There is a related decrease in revenue from ordinary appropriations reflecting that certain activities will now be funded through the special appropriation.

Across the total four year period, CASA is budgeting a break-even position.

Chart 3.1: Revenue

Chart 3.1: Revenue

Total expenses in 2010-11 are estimated to be $170.1m, an increase of $16.2m from the 2009-10 estimated actual.  The overall increase is primarily attributable to:

  • Employee expenses increasing by $11.7m. This increase in expense reflects annual pay increases in 2010-11 as well as increasing staffing levels to meet new budget measures effective from 2010-11.
  • Supplier expenses increasing by $3.8m. This increase in expense results from the new budget measures announced in the 2010-11 Budget.

Budgeted departmental balance sheet

CASA's net asset (or equity) position is forecast to return to 2009-10 levels by 2013-14, reflecting that funding levels over the four-year period are expected to be adequate to support CASA's current operational requirements during this period.

Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $97.7m in 2010-11 represents a decrease of $1.9m from the 2009-10 estimated closing position.  This is reflective of the budgeted loss in 2010-11 reducing available cash reserves.

Chart 3.2: Budgeted Assets for 2010-11

Chart 3.2: Budgeted Assets for 2010-11

CASA's budgeted liabilities of $40.1m in 2010-11 represent an increase of $0.6m from the 2009-10 estimated closing position. The increase is primarily generated by employee provisions. CASA's primary liability continues to be accrued employee salary and leave entitlements of $23.8m.

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

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 writtenoff 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 2010-11