National Transport Commission

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 NTC does not receive administered funds.

3.1.2: Special Accounts

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

3.1.3: Australian Government Indigenous Expenditure

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

3.2: Budgeted financial statements

3.2.1: Differences in entity resourcing and financial statements

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

Budgeted departmental income statement

The NTC's primary source of income is funding provided by Commonwealth, States and Territories on an annual basis, apportioned by an agreed percentage allocation as outlined within the NTC's IGA. Annual funding is increased by index (forward CPI) each year to support the NTC's work programme portfolio.

Under the NTC Act, funding for the Commission is to be applied only in payment or discharge of the costs, expenses and other obligations incurred by the Commission in the performance of its functions and the exercise of its powers.

Each year, the Commission must prepare estimates, in accordance with the Council directions, of the Commission's receipts and expenditure for each financial year and, if the Council so directs, for any other period specified by the Council. The Commission must submit estimates so prepared to the Council no later than such a date as the Council directs. Except with the consent of the Council, the funding of the Commission must not be spent otherwise than in accordance with the applicable strategic plan and work programme provided annually. On this basis, the NTC's forward estimate may change yearly based on directions from the Council.

Budgeted departmental balance sheet

The NTC's balance sheet is simple in structure and classification. Assets are largely comprised of cash and office plant and equipment, while liabilities are payables (to suppliers) and employee provision (staff entitlements).

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 year 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; and
  • other authoritative pronouncements of the Australian Accounting Standards Board.
  1. Departmental and administered items

Entity assets, liabilities, revenues and expenses are those items that are controlled by the NTC 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 NTC has no administered items.

  1. Departmental expenses—employees

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 in entity outcomes.

  1. 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 the NTC, using the straight-line calculation method.

  1. Departmental revenue

Revenue from government represents funding from the Commonwealth, appropriated based on the funding formula outlined in the NTC IGA.

Revenue from other sources, representing sales from goods and service and funding from states and jurisdictions, is recognised when:

  • the risk and awards 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.
  1. Departmental assets—financial assets

The primary financial asset relates to cash and receivables. Financial assets are used to fund the NTC work programme, employee entitlements, creditors and to provide working capital.

  1. Departmental assets—non-financial assets

These items represent future economic benefits that the NTC 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 NTC's liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave.

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Budget 2015–16