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 2013–14. 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 2013–14 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 zero operating result in 2013–14. This operating result includes the continuation of the 3 cents 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. Additional revenue collected from the continuation of the 3 cents per net registered tonne increase in the PSL will be offset by anticipated increased costs associated with the implementation of a number of pollution response and prevention initiatives including improving and maintaining pollution response stockpiles, supporting the National Plan for Maritime Environmental Emergencies, the National Maritime Emergency Response Arrangements and supporting vessel traffic service arrangements in the Torres Strait and the inner route of the Great Barrier Reef.

In 2012–13, AMSA is projecting a net surplus of $7.6 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 surplus is being used to enable AMSA to establish a $10 million pollution response reserve. The pollution response reserve will enable AMSA to fund a response to pollution incidents while claims are being settled and as a contingency in the event that future pollution claims exceed the limited liability of any ship owner.

AMSA revenue

AMSA's revenue sources are from 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 from government for search and rescue activities. AMSA has two lesser revenue sources from fees and charges and from interest. In 2013–14, AMSA estimates receiving total revenue of $190.2 million compared to $169.8 million in the 2012–13 Budget, as summarised in the table below.

AMSA revenue comparison
AMSA Revenue Sources 2013–14
Budget
2012–13
Budget
Special Appropriations of levies collected from the shipping industry $119.0m $101.9m
Annual departmental appropriation for search and rescue functions $45.4m $42.2m
Annual departmental appropriation for search and rescue response $10.7m $10.5m
Revenue from budget measures $0.8m $6.3m
Revenue from independent sources (fees and charges and interest) $14.2m $8.9m
Total Revenue: $190.2m $169.8m
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 2013–14, levy revenue is estimated to total $119.0 million, which is $17.1 million higher than the 2012–13 Budget. The increase relates to anticipated significant increases in shipping activity and the continuation of the 3 cents per net registered tonne increase in the PSL. The increase in levy growth has been based on modelling with reference to commodity growth projections from the Bureau of Resources and Energy Economics report, ‘Australian Bulk Commodity Exports and Infrastructure—Outlook to 2025’.

Revenue from government

AMSA receives an annual departmental appropriation of $45.4 million in 2013–14 for providing a search and rescue co-ordination service to the community. AMSA also received an annual departmental appropriation of $10.7 million in 2013–14 to cover the cost of search and rescue incidents (mainly aircraft/helicopter hire).

For 2013–14, AMSA also received revenue of $0.8 million to fund the existing ‘National Transport Regulatory reforms—implementation assistance’ measure. Funding for this existing measure terminates in 2015–16.

AMSA is also subject to the ‘Targeted savings—public service efficiencies’ measure which has resulted in a decrease to AMSA's budgeted revenue by $0.1 million in 2013–14. This decrease is in addition to the decrease of $0.2 million reported in the 2012–13 Infrastructure and Transport Portfolio Additional Estimates Statements.

Appropriation comparison between 2013–14 and 2012–13

The table below compares the appropriations between the 2013–14 and 2012–13 Budgets:

  2013–14
Budget

($'000)
2012–13
Budget

($'000)
Appropriation Bill No. 1
Departmental Outputs
Australian Search and Rescue Function 45,417 42,153
Australian Search and Rescue Response 10,724 10,489
National Transport Reform—implementation assistance 806 157
National Transport Regulators—additional funding - 5,429
Total 56,947 58,228
Special Appropriations  
Marine Navigation Levy 31,622 30,349
Regulatory Functions Levy 46,123 39,106
Protection of the Sea Levy 39,618 33,169
Total 117,363 102,624
Total Appropriations 174,310 160,852
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 2013–14, AMSA's total estimated revenue from independent sources is $14.2 million (up $5.3 million compared to $8.9 million in 2012–13). This includes the sale of goods and services comprising $9.8 million, payment from related entities (Infrastructure and Transport Portfolio) in relation to the continued provision of transport safety assistance to Indonesia of $3.2 million and interest of $1.3 million. The increase of $5.3 million is primarily due to increased revenue from the continued provision of transport safety assistance to Indonesia of $4.4 million ($2.0 million provided in 2012–13 subsequent to the finalisation of the budget and a further $2.4 million in 2013–14).

Resources for AMSA's output groups

Chart 3.2.1 shows the resources allocated to AMSA's two subprograms since 2007–08:

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 2007–08. The increase in revenue and expenses since 2007–08 are due largely to several 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 over 2006–07 to 2009–10;
  • the increase to the PSL in 2009–10 to recover the cost of reimbursing claims from the Pacific Adventurer incident;
  • the continuation of the PSL in 2012–13 and 2013–14 to establish a $10 million pollution response reserve and to cover the anticipated increased costs associated with the implementation of a number of pollution response and prevention initiatives.

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 2013–14)

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 (2013–14)

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.

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Budget 2013-14