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Australian Maritime 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 2012–13. 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

AMSA does not receive administered funds.

3.1.2: Special Accounts

AMSA does not maintain Special Accounts.

3.1.3: Australian Government Indigenous Expenditure

The 2012–13 Australian Government Indigenous Statement is not applicable because AMSA has no Indigenous specific expenses.

3.2: Budgeted financial statements

3.2.1: Differences in agency resourcing and financial statements

AMSA 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

AMSA is budgeting for a $6.0 million operating surplus in 2012–13. The surplus is a direct result of retaining the 3 cent per net registered tonne increase of the Protection of the Sea Levy (PSL) which was introduced in 2010 to cover costs associated with the Pacific Adventurer incident.

In 2011–12, AMSA is projecting a net surplus of $5.8 million driven by higher than expected levy revenue from continued strong activity in the natural resources sector and the retention of the increase to the PSL. This is offset by additional response costs associated with the Shen Neng 1 incident.

AMSA revenue

AMSA's main revenue source is from government funding. This includes levies collected from the shipping industry and appropriated under Section 48 of the AMSA Act as Special Appropriations to fund AMSA's ship safety and environment protection functions and Community Service Obligation funding for search and rescue activities. AMSA has two lesser revenue sources from fees and charges and from interest. In 2012–13, AMSA estimates receiving total revenue of $169.8 million compared to $167.1 million in the 2011–12 Budget4, as summarised in the table below.

AMSA revenue comparison

AMSA Revenue Sources
2012–13
Budget
2011–12
Budget
Special Appropriations of levies collected from the shipping industry $101.9m $99.1m
Annual departmental appropriation for search and rescue functions $42.2m $41.9m
Annual departmental appropriation for search and rescue response $10.5m $12.2m
Revenue from budget measures $6.3m $5.2m
Revenue from independent sources (fees and charges and interest) $8.9m $8.7m
Total Revenue: $169.8m $167.1m

As reported in AMSA's Portfolio Additional Estimates Statements 2011–12.

Revenue from government: levy funding

AMSA has three levies corresponding to its ship safety and environment protection functions:

  • Marine Navigation (Regulatory Function) Levy funds AMSA’s shipping regulatory functions;
  • Marine Navigation Levy funds the national network of marine aids to navigation; and
  • Protection of the Sea Levy funds activities related to pollution and emergency response services.

In 2012–13, levy revenue is estimated to total $101.9 million, which is $2.8 million higher than the 2011–12 Budget. The increase relates to anticipated increases in shipping activity.

Revenue from government

AMSA receives an annual departmental appropriation of $42.2 million in 2012–13 for providing a search and rescue co-ordination service to the community. AMSA also received an annual departmental appropriation of $10.5 million in 2012–13 to cover the cost of search and rescue incidents (mainly aircraft/helicopter hire).

For 2012–13, AMSA also received revenue of $0.2 million to fund the new budget measure ‘National Transport Regulatory reforms—implementation assistance’. Funding5 for this measure spans two financial years (2012–13 and 2013–14) and will complete the work started under the terminating measure ‘National Transport Regulators—Additional Funding’.

A further $0.8 million has been provided to AMSA as payment from related entities (Infrastructure) in relation to the continued provision of transport safety assistance to Indonesia.

AMSA is also subject to the increase of the Government’s efficiency dividend, which has resulted in a decrease to AMSA’s budgeted revenue by $0.7 million6 in 2012–13.

Appropriation comparison between 2012–13 and 2011–12

The table below compares the appropriations between the 2012–13 and 2011–12 Budgets:

  2012–13
Budget
($'000)
2011–12
Budget
($'000)
Appropriation Bill No. 1    
Departmental Outputs    
Australian Search and Rescue Function 42,153 41,915
Australian Search and Rescue Response 10,489 12,180
National Transport Regulatory reforms—implementation assistance 157 -
National Transport Regulators—additional funding 5,429 4,448
Total 58,228 58,543
Special Appropriations    
Marine Navigation Levy 30,349 27,083
Regulatory Functions Levy 39,106 34,834
Protection of the Sea Levy 33,169 29,632
Total 102,624 91,549
Total Appropriations 160,852 150,092
Revenue from independent sources: sale of goods and services and interest

AMSA may make determinations fixing charges under section 47 of the AMSA Act, which requires these fees and charges to be reasonably related to the costs incurred by AMSA in their provision. AMSA has a range of services with charges based on the average cost of delivering a specific service or the time taken to deliver the service multiplied by a standard hourly rate. These services include:

  • approvals, certificates and determinations for ships, cargo, and ships' safety equipment;
  • activities involved with issuing certificates of competency to seafarers, including conducting oral practical examinations for navigating and engineering officers; and
  • assessing sea time prerequisites for qualifications; issuing and renewing coastal pilot licences; and services provided by the Australian Shipping Registration Office.

In 2012–13, AMSA's total estimated revenue from independent sources is $8.9 million (compared to $8.7 million in 2011–12). This includes the sale of goods and services comprising $7.2 million (compared to $7.0 million in 2011–12) and interest of $1.7 million (compared to $1.8 million in 2011–12). The modest increase is primarily due to increased revenue from hosting Natship 2012, which is offset by a reduction in fee-for-service revenue relating to marine services and ship registration and reduced interest due to expected cash drawdowns for capital works.

Resources for AMSA's output groups

Chart 3.2.1 shows the resources allocated to AMSA's two subprograms since 2005–06:

Chart 3.2.1: Trends in resources for AMSA Subprograms

Chart 3.2.1: Trends in resources for AMSA Subprograms

Revenue/expense comparison

Chart 3.2.2 shows the overall trend in AMSA's revenue and expenses since 2005–06. The increase in revenue and expenses since 2005–06 are due largely to two major events. These being:

  • the rise in levy revenue to fully recover the costs of AMSA's functions in providing emergency response services under the National Maritime Emergency Response Arrangements (NMERA) over 2006–07 to 2009–10; and
  • the increase to the PSL in 2009–10 to recover the cost of reimbursing claims from the Pacific Adventurer incident.

Chart 3.2.2: AMSA revenue and expenses

Chart 3.2.2: AMSA revenue and expenses

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 2012–13)

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 (2012–13)

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 AMSA 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.

AMSA 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 AMSA, using the straight-line calculation method.

6. Departmental revenue

Revenue from government represents the purchase of outcomes from AMSA by the government and is recognised to the extent that it has been received into AMSA'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 entity.
7. Departmental assets—financial assets

The primary financial asset relates to receivables. Financial assets are used to fund AMSA's capital program, employee entitlements, creditors and to provide working capital.

8. Departmental assets—non-financial assets

These items represent future economic benefits that AMSA 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 AMSA'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.

5Includes capital funding of $9.9 million (through an equity injection) across 2012–13 and 2013–14 and depreciation funding of $1.0 million following full implementation.

6Previously reported in AMSA’s Portfolio Additional Estimates Statements 2011–12.

 

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