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 2011-12. 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.
3.1.1: 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
The 2011-12 Australian Government Indigenous Statement is not applicable because CASA has no indigenous specific expenses.
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 2011-12, is provided below.
Budgeted departmental income statement
CASA is budgeting an operating surplus of $0.6m in 2010-11. This surplus mainly reflects delays in recruitment of specialist staff relating to the 2010-11 Budget measure ‘Aviation safety - CASA funding strategy’.
CASA is budgeting for an operating loss in 2011-12 of $4.5m. This mainly reflects the expenditure of $3.7m in funding relating to the 2010-11 Budget measure ‘Aviation safety - CASA funding strategy’, which was originally provided for in the 2010-11 year.
CASA is budgeting for small operating surpluses in the forward years.
Chart 3.1 illustrates CASA’s revenue funding. Revenue from special appropriations will increase in the budget and forward years as a result of forecast higher volumes for aviation fuel excise collections.
Chart 3.1: Revenue
Total expenses in 2011-12 are estimated to be $180.2m, an increase of $13.4m from the 2010-11 estimated actual. The overall increase is primarily attributable to:
- Employee expenses increasing by $12.8m. This increase in expense reflects annual pay increases in 2011-12, the full year effect of recruitment activity to meet the new budget measures approved in 2010-11 and the conversion of a number of contractor positions to permanent positions;
- Depreciation expenses increasing by $1.5m, reflecting increased capital expenditure forecast in 2010-11; and
- Supplier expenses increasing by $1.0m. This increase mainly reflects carryovers relating to the 2010-11 Budget measure ‘Aviation safety - CASA funding strategy’, offset by reductions for converting contractors to permanent positions.
Budgeted departmental balance sheet
CASA’s net asset (or equity) position is forecast to decrease by $2.8m from 2010-11 to 2014-15, mainly reflecting the operating loss budgeted in 2011-12.
Chart 3.2 illustrates CASA’s budgeted asset profile. Total budgeted assets of $102.8m in 2011-12 represents a decrease of $4.0m from the 2010-11 estimated closing position. This reflects the budgeted loss in 2011-12 reducing available cash reserves.
Chart 3.2: Budgeted Assets for 2011-12
CASA's budgeted liabilities of $43.9m in 2011-12 represent an increase of $0.5m from the 2010-11 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 $23.7m.
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)
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
CASA's ordinary appropriation estimates are generally quarantined from indexation and efficiency dividend adjustments. Estimates for special appropriation funding have been made on the basis of expected aviation fuel excise collections.
The Department of Infrastructure and Transport 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 based on averages from prior year receipts.
Employee expenses represent payments and accruing entitlements to employees for services rendered in the financial year.
Supplier expenses represent payments made and accruing obligations 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. Reported values represent the purchase price paid, adjusted for revaluations, 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.