Civil Aviation Safety Authority
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive snapshot of CASA's finances for the 2016–17 budget year, including the impact of budget measures and resourcing on financial statements.
3.1.1: Explanatory notes and analysis of budgeted financial statements
Budgeted departmental income statement
CASA is budgeting for an operating deficit in 2015–16 of $8.8m, which is less than the approved operating deficit of $10.0m. The smaller than anticipated deficit is mainly due to a decrease in employee expenses resulting from a lower than forecast average staffing level.
CASA is planning a small operating surplus in 2016–17. The 2016–17 Budget staffing level is forecast to be 805 and there will be some targeted reductions in supplier expenses.
CASA is budgeting for small operating surpluses in the forward years with the Special Appropriation for aviation fuel excise forecast to grow at around 3.1% per annum.
Depreciation expenditure will steadily increase in line with CASA's capital program and employee expenses will continue to increase as a result of anticipated pay rises under the next enterprise agreement.
A review of the funding arrangements for CASA is being undertaken to identify a model that will deliver greater financial stability for the organisation into the future.
Chart 3.1 illustrates CASA's revenue funding. Revenue from special appropriations will increase by 3.9% in the budget year and 3.1% in the forward years.
Chart 3.1: Revenue
Total expenses in 2016–17 are estimated to be $183.2m, a decrease of $3.9m when compared to the anticipated outcome for 2015–16. The main movements in the major expense categories are:
- employee expenses are remaining stable at $120.0m;
- depreciation expenses increasing by $0.7m, reflecting an increase in capital expenditure in 2015–16; and
- supplier expenses decreasing by $4.9m as a result of ongoing targeted savings measures.
Budgeted departmental balance sheet
CASA's net asset (or equity) position for 2016–17 is forecast to be largely unchanged with a small increase compared to 2015–16, consistent with the anticipated small operating surplus and projected capital investment.
Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $97.0m in 2016–17 represents a decrease of $3.0m from the estimated 2015–16 closing position.
Chart 3.2: Budgeted Assets for 2016–17
Chart 3.3 illustrates CASA's budgeted liabilities profile. Total budgeted liabilities of $40.8m in 2016–17 represents a decrease of $3.1m from the estimated 2015–16 closing position. CASA's primary liability continues to be accrued employee leave entitlements of $26.2m.
Chart 3.3: Budgeted Liabilities for 2016–17