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 2014–15 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme 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

AMSA does not have any 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 2014-15. This operating result includes the reduction by 3 cents per net registered tonne of the Protection of the Sea Levy (PSL) which was increased in 2010 to cover costs associated with the Pacific Adventurer oil spill. The 2013-14 Budget retained the rate of the levy at 14.25 cents per net registered tonne, following recovery of the incident costs, to enable AMSA to build a pollution response reserve of $10 million to meet the immediate costs of pollution responders while claims settlements are being negotiated, and to cover costs where claims exceed the limited liability of shipowners. By the conclusion of the 2012–13 financial year, AMSA had achieved two objectives: creation of the $10 million pollution response reserve and an accelerated upgrade of AMSA's pollution response stockpile. The Australian Government has decided to return the levy to its former rate of 11.25 cents per net registered tonne from July 2014.

In 2013–14, AMSA is projecting a net deficit of $1.4 million. This deficit is primarily driven by the inclusion of the estimated costs ($10 million) of AMSA's role in coordinating the search effort for Malaysia Airlines Flight MH370 in the south Indian Ocean. The majority of these estimated costs relate to the tasking of aircraft in the search area.

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 the Australian Government for search and rescue activities. AMSA has three lesser revenue sources: from fees and charges; funding for the National System for domestic commercial vessel safety; and from interest. In 2014–15, AMSA estimates total revenue of $194.4 million compared to $190.2 million in the 2013–14 Budget, as summarised in the table below.

AMSA revenue comparison
AMSA Revenue Sources 2014-15
Budget
2013-14
Budget
Special appropriations of levies collected from the shipping industry $118.7m $119.0m
Annual departmental appropriation for search and rescue functions $44.8m $45.4m
Annual departmental appropriation for search and rescue response $10.8m $10.7m
Revenue from budget measures $1.0m $0.8m
Revenue from independent sources (fees and charges and interest) $19.1m $14.3m
Total Revenue: $194.4m $190.2m
Revenue from Government: levy funding

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

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

In 2014–15, levy revenue is estimated to total $118.7 million, which is $0.3 million less than the 2013–14 Budget. This decrease is due to two factors:

  • the reduction in levy revenue from the decrease in the rate of the PSL; and
  • an overall decrease in levies due to a revision of economic parameters.

This revision has resulted in lower projected levies growth1 of 8.1 per cent annual growth for the 2014-2015 Budget compared to 11.1 per cent for previous Budget.

Revenue from Government

AMSA will receive an annual departmental appropriation of $44.8 million in 2014–15 for providing a search and rescue co–ordination service to the community. AMSA will also receive an annual departmental appropriation of $10.8 million in 2014–15 to cover the cost of search and rescue incidents.

For 2014–15, AMSA will also receive revenue of $1.0 million to fund the continuation of the ‘National Transport Regulatory reforms—implementation assistance’ measure. Funding for this measure finishes in 2015–16.

Appropriation comparison between 2014–15 and 2013–14

The table below compares the appropriations between the 2014-15 and 2013-14 Budgets:

  2014-15
Budget

($'000)
2013-14
Budget

($'000)
Appropriation Bill No. 1
Departmental Outputs
Australian Search and Rescue Function 44,794 45,417
Australian Search and Rescue Response 10,825 10,724
National Transport Reform—implementation assistance 976 806
Total 56,947 56,947
Special Appropriations  
Marine Navigation Levy 34,321 31,622
Regulatory Functions Levy 50,063 46,123
Protection of the Sea Levy 34,137 39,618
Total 118,521 117,363
Total Appropriations 175,116 174,310
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 ship safety equipment;
  • activities involved with issuing certificates of competency to seafarers, including conducting oral practical examinations for navigation 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 2014–15, AMSA's total estimated revenue from independent sources is $19.1 million (up $4.8 million compared to $14.3 million in 2013-14). This includes the sale of goods and services comprising $11.3 million, additional revenue for the National System for domestic commercial vessel safety and interest of $1.8 million.

Resources for AMSA's output groups

Chart 3.2.1 shows the resources allocated to AMSA's two subprogrammes since 2008–09:

Chart 3.2.1: Trends in resources for AMSA Subprogrammes

Chart 3.2.1: Trends in resources for AMSA Subprogrammes

Revenue/expense comparison

Chart 3.2.2 shows the overall trend in AMSA's revenue and expenses since 2008-09. The variation in revenue and expenses since 2008-09 is largely due to:

  • 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 claims from the Pacific Adventurer oil spill; and
  • the continuation of the higher rate of the PSL in 2012–13 and 2013–14; and
  • the reduction of the rate of the PSL and revision of the economic parameters in 2014-15.

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 2014–15)

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 (2014–15)

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 programme, 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.

Notes:

  1. Increase in levy growth modelled with reference to the Bureau of Resources and Energy Economics, Resources and Energy Quarterly, September Quarter 2013.

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Budget 2014-15