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.
3.1.1: 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.
3.2.1: 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'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
|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|
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:
|Appropriation Bill No. 1|
|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|
|Marine Navigation Levy||30,349||27,083|
|Regulatory Functions Levy||39,106||34,834|
|Protection of the Sea Levy||33,169||29,632|
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 3.2.2 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
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
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.