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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 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

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

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 2012–13, is provided below.

Budgeted departmental income statement
2011–12

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.

2012–13

CASA is expecting its revenue to remain flat for the financial year, while its expenses are expected to reduce due to the implementation of a number of cost saving strategies which will result in an overall break even position.

Forward Years

CASA is budgeting for small operating surpluses in the forward years.

Chart 3.1 illustrates CASA's revenue funding. Revenue from special appropriations will decrease in the budget and forward years as a result of forecast lower volumes for aviation fuel excise collections.

Chart 3.1: Revenue

Chart 3.1: Revenue

Total expenses in 2012–13 are estimated to be $174.4m, a reduction of $3.8m when compared to 2011–12. The main movements in the major expense categories are:

  • Employee expenses increasing by $7.4m, which is a result of converting contractor staff into on-going employees and salary rises under the new enterprise agreement;
  • Depreciation expenses increasing by $0.2m, reflecting increased capital expenditure forecast in 2011–12; and
  • Supplier expenses decreasing by $11.5m. The conversion of contractor staff into on-going employees, better utilisation of contractors, reduction in travel through the increase usage of video conferencing and general reduction in administration costs resulting from the rollout of new technologies.
Budgeted departmental balance sheet

CASA's net asset (or equity) position is forecast to remain the same as 2011–12.

Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $116.6m in 2012–13 represents a decrease of $0.6m from the 2011–12 estimated closing position.

Chart 3.2: Budgeted Assets for 2012–13

Chart 3.2: Budgeted Assets for 2012–13

CASA's budgeted liabilities of $60.6m in 2012–13 represent a decrease of $0.7m from the 2011–12 estimated closing position. The decrease is primarily generated by fall in provisions for goods and services. 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)

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

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

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.

Departmental expenses

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.

Appendix 3.2.1: Total budgeted revenue

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Budget 2012-13