Australian Transport Safety Bureau

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: Explanatory tables

3.1.1: Movement of administered funds between years

This table is not provided as the ATSB does not receive administered funds.

3.1.2: Special Accounts

This table is not provided as the ATSB does not maintain Special Accounts.

3.1.3: Australian Government Indigenous Expenditure

This table is not provided as the ATSB does not have any Indigenous specific expenses.

3.2: Budgeted financial statements

3.2.1: Differences in entity resourcing and financial statements

The ATSB 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 the ATSB's budgeted financial statements, as reflected in the budgeted departmental financial statements for 2015–16, is provided below.

Budgeted departmental comprehensive income statement

The ATSB is planning for a break-even operating result, adjusted for depreciation and amortisation expense, in 2015–16 and the forward years.

Revenue

Net appropriation revenue of $68.2m will be provided to the ATSB in 2015–16.

The comprehensive income statement also includes estimates of the ATSB's own source revenue of $3.4m which includes:

  • revenue from the Department of Foreign Affairs and Trade for the ATSB's participation in the Australian Government transport safety initiatives including cooperation with Papua New Guinea, consistent with the MOU on Cooperation in the Transport Sector;
  • estimates of cost recoveries from Western Australia, South Australia and Tasmania for safety investigations we undertake on their intrastate rail networks ($0.7m);
  • estimates of cost recoveries for training that the ATSB provides to industry; and
  • estimates of the value of the services the ATSB will receive free of charge from the Victorian Office of the Chief Investigator, the NSW Office of Transport Investigations and the Australian National Audit Office ($2.1m).
Expenses
  • Budgeted operating expenditure in 2015–16 is $72.9 million. $50.0 million of that expenditure represents the costs in 2015–16 associated with the search for MH370, which will be offset by financial contributions from other countries.
  • The remainder of the estimated operating expenditure, which is for the ongoing business of the ATSB, is comprised of employee expenses (64%), supplier expenses (31%) and depreciation (5%).
  • Depreciation and amortisation expenses are expected to remain steady over the forward estimates period, with a reduction in 2018–19 as the Departmental Capital Budget has decreased over time, reducing the amount of capital purchased and therefore the associated depreciation and amortisation expense will decrease.
Budgeted departmental balance sheet

The ATSB's budgeted balance sheet at 30 June 2016 reflects the expected balances for its assets and liabilities as well as retained earnings and contributed equity, based on the projected operating result for 2014–15 and the Budget year.

Financial Assets

The ATSB's largest financial asset is $15.8m in prior year appropriations.

Non-Financial Assets

These comprise of plant, equipment and intangible software assets utilised by the ATSB, the largest component of which is the entity's investment in its Safety Investigation Information Management System. This is shown in the line Intangibles.

Provisions and Payables

The ATSB's primary liability is accrued employee leave entitlements, shown in the line Employee provisions.

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 2015–16)

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June)

Table 3.2.6: Statement of asset movements (Budget 2015–16)

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.
  1. Departmental and administered items

Entity assets, liabilities, revenues and expenses are those items that are controlled by the ATSB 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.

The ATSB has no administered items.

  1. Departmental expenses—employee benefits

Payments and net increases in entitlements to employees for services rendered in the financial year.

  1. Departmental expenses—suppliers

Payments to suppliers for goods and services used in providing entity outcomes.

  1. Departmental expenses—depreciation and amortisation

Depreciable property plant and equipment and intangible assets are written-off to their estimated residual values over their estimated useful life to the ATSB, using the straight–line calculation method.

  1. Departmental revenue

Revenue from government represents the purchase of outcomes from the ATSB by the Australian Government and is recognised on the delivery of its outcome.

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 ATSB 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.
  1. Departmental assets—financial assets

The primary financial asset relates to $15.8m in prior year appropriations.

  1. Departmental assets—non-financial assets

These items represent future economic benefits that the ATSB will consume in producing outcomes. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.

  1. Departmental liabilities—provisions and payables

Provision has been made for the ATSB'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 the expected unpaid supplier expenses as at balance date.

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Budget 2014–15