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 entity finances for the 2015–16 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.
3.1.1: Movement of administered funds between years
This table is not provided as AMSA does not receive administered funds.
3.1.2: Special Accounts
This table is not provided as AMSA does not maintain Special Accounts.
3.1.3: Australian Government Indigenous Expenditure
This table is not provided as AMSA does not have any Indigenous specific expenses.
3.2.1: Differences in entity 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 an overall budget operating loss of $24.5 million. This comprises operating losses of $4.6 million, $4.3 million, $6.4 million and $9.3 million from 2015–16 through to 2018–19 respectively.
The operating loss is primarily due to a downturn in shipping activity, leading to a reduction in forecast levy revenue, and implementation costs for the National System for Domestic Commercial Vessel Safety.
To meet these budget pressures, AMSA will draw down on the budget surplus of $10.2 million from the previous 2014–15 budget update and fund the remainder from retained surpluses.
AMSA will remain financially viable with a projected cash balance at 30 June 2019 of $38.9 million, which will be sufficient to meet AMSA's commitments as they fall due.
In 2014–15, AMSA is projecting a zero operating result in line with budget expectations.
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 coordination services for persons in aviation or maritime distress in Australia's internationally designated search and rescue region. AMSA has three lesser revenue sources: from fees and charges; funding for the National System for Domestic Commercial Vessel Safety; and from interest. In 2015–16, AMSA estimates total revenue of $200.0 million compared to $194.4 million in the 2014–15 Budget, as summarised in the table following.
AMSA revenue comparison
|AMSA revenue sources|
|Special appropriations of levies collected from the shipping industry||119||121|
|Annual departmental appropriation for search and rescue functions||45||46|
|Annual departmental appropriation for search and rescue response||11||11|
|Revenue from budget measures||1||1|
|Revenue from independent sources (fees and charges and interest)||19||21|
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 2015–16, levy revenue is estimated to total $121.2 million, which is $2.5 million more than the 2014–15 Budget. This increase is primarily due to continued growth in shipping activity, albeit at a significantly reduced growth rate. Projected levies growth1 of 4.9 per cent annual growth for the 2015–16 Budget compared to 8.1 per cent for the previous Budget.
Revenue from Government
AMSA will receive an annual departmental appropriation of $45.6 million in 2015–16 for providing a search and rescue co–ordination service to the community. AMSA will also receive an annual departmental appropriation of $10.9 million in 2015–16 to cover the cost of search and rescue incidents.
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 2015–16 and 2014–15
The table below compares the appropriations between the 2015–16 and 2014–15 Budgets:
|Appropriation Bill No. 1|
|Australian Search and Rescue Function||44,794||45,606|
|Australian Search and Rescue Response||10,825||10,928|
|National Transport Reform—implementation assistance||976||975|
|Marine Navigation Levy||34,321||35,346|
|Regulatory Functions Levy||50,063||51,582|
|Protection of the Sea Levy||34,137||35,016|
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 2015–16, AMSA's total estimated revenue from independent sources is $21.3 million (up $2.2 million compared to $19.1 million in 2014–15). This increase is primarily attributable to revenue from the Government Partnerships for Development programme for search and rescue capability building in the Indian Ocean region of $1.2 million. The total estimate of $21.3 million includes the sale of goods and services comprising $13.7 million, revenue for the National System for Domestic Commercial Vessel Safety of $6.2 million and interest of $1.6 million.
Resources for AMSA's output groups
Chart 3.2.1 shows the resources allocated to AMSA's two subprogrammes since 2012–13:
Chart 3.2.1: Trends in resources for AMSA Subprogrammes
Chart 3.2.2 shows the overall trend in AMSA's revenue and expenses since 2012–13. The variation in revenue and expenses since 2012–13 is largely due to:
- the continuation of the higher rate of the Protection of the Sea (PSL) Levy in 2012–13 and 2013–14 to recover the cost of claims from the Pacific Adventurer oil spill;
- the reduction of the rate of the PSL to 11.25 cents per net registered tonne in 2014–15;
- revision of revenue projections driven by economic parameters in 2014–15 and 2015–16; and
- implementation costs for the National System for Domestic Commercial Vessel Safety from 2015–16 to 2018–19.
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
- 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.
- Departmental and administered items
Entity 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 entity outcomes.
AMSA has no administered items.
- Departmental expenses—employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
- Departmental expenses—suppliers
Payments to suppliers for goods and services used in providing entity outcomes.
- 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.
- 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.
- 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.
- 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.
- 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.
- Increase in levy growth modelled with reference to the Bureau of Resources and Energy Economics, September Quarter 2014, Resources and Energy Quarterly Report.