Department of Infrastructure and Regional Development
Section 3: Explanatory tables and budgeted financial statements
Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department. The corresponding table in the 2015–16 PB Statements is Table 3.1.2.
3.2.1: Analysis of budgeted financial statements
An analysis of the Department's financial position, as reflected in the budgeted departmental financial statements and administered schedules for 2015–16, is provided below.
Budgeted departmental income statement
Total expenses are estimated to be $280.2m in 2015–16, an increase of $11.1m from Budget. The increase is primarily due to the impact of measures announced since Budget ($18.8m), partially offset by a decrease in estimated own-source income ($5.7m) and revised depreciation estimates ($1.5m).
Chart 3.1: Total departmental expenses
Budgeted departmental balance sheet
The Department's major assets are Buildings ($9.2m), Intangibles ($11.7m) and Property, plant & equipment ($6.7m). The Department's primary liability continues to be accrued employee leave entitlements, estimated at $45.1m.
Schedule of budgeted income and expenses administered on behalf of government
The Department administers the collection of taxes, fees and fines, other non-taxation revenue and interest and dividends estimated at $465.6m in 2015–16, representing a decrease of $48.6m from Budget. The decrease is primarily due to a revised profile of receipts from the BAF Portfolio Special Account ($47.5m).
Administered expenses are budgeted at $3 716.5m in 2015–16, representing a decrease of $1 019.3m from Budget and will be incurred for the administered items set out at Section 2. The decrease is primarily due to the bring-forward of funds from 2015–16 to 2014–15 for the Local Government Financial Assistance Grants administered item ($1 144.5m), the movement of administered funds approved since Budget ($137.4m) and the recognition of expenses associated with concessional loans ($80.8m). The decrease was partially offset by the impact of measures announced since Budget ($325.1m).
Chart 3.2: Total administered expenses
Schedule of budgeted assets and liabilities administered on behalf of government
Total financial assets are expected to increase in 2015–16 by $326.2m to $5 652.2m from the 2014–15 actual result. The increase relates mainly to the loan provided to the Australian Capital Territory Government for the purpose of undertaking its loose fill asbestos remediation programme ($250.0m), an increase in Administered investments ($75.0m) and the loan associated with WestConnex Stage 2 ($19.4m).
3.2.2: Budgeted financial statements tables
Table 3.2.1: Comprehensive income statement (showing net cost of services) (for the period ended 30 June)
Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
3.2.3: 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 Public Governance, Performance and Accountability (Financial Reporting) Rule 2015;
- 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 the Department and are used by the Department in producing its outputs and include:
- computers, plant and equipment;
- liabilities for employee entitlements;
- revenue from appropriations or independent sources in payment for outputs; and
- employee, supplier and depreciation expenses incurred in providing entity outputs.
Administered items are those items incurred in providing programmes that are controlled by government and managed, or oversighted, by the Department on behalf of government. Administered expenses included grant payments and subsidies, and administered revenues include levies, fees and fines.
- Departmental expenses—employee benefits
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 outputs.
- Departmental expenses—depreciation and amortisation
Depreciable infrastructure, plant and equipment, buildings and intangible assets are written–off to their estimated residual values over their estimated useful life to the Department, using the straight-line calculation method.
- Departmental own-source revenue
Revenue from government represents the purchase of outputs from the Department by government and is recognised to the extent that it has been received into the Department'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 Department.
- Departmental assets—financial assets
The primary financial asset relates to receivables. Financial assets are used to fund the Department's capital programme, employee entitlements, creditors and to provide working capital.
- Departmental assets—non-financial assets
These items represent future economic benefits that the Department will consume in producing outputs. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.
- Departmental liabilities—provisions
Provision has been made for the Department's liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave.
- Expenses administered on behalf of Government
The majority of the Department's administered programmes are classified as grants, the most significant being the Infrastructure Investment Programme, Plan for the Future and Local Government Financial Assistance Grants administered items.
- Own-source revenues administered on behalf of Government
Details of the range of taxation and non-taxation revenue collected by the Department are provided at Appendix 3.2.1.
- Administered assets—financial assets
Comprise primarily the Australian Government's investments in portfolio entities.