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 2017–18 Budget year, including the impact of Budget measures and resourcing on financial statements.
3.1 Budgeted financial statements
3.1.1 Explanatory notes and analysis of budgeted financial statements
Budgeted departmental income statement
CASA is budgeting for an operating surplus in 2016-17 of $2.5m, which is higher than the approved small budget operating surplus. The higher than anticipated surplus is mainly due to the net impact of the following:
- a $0.5m reduction in Ordinary Appropriation revenue associated with an adjustment in the treatment of index parameters;
- a $0.2m increase in Special Appropriation for aviation fuel excise revenue;
- a $1.8m reduction in regulatory service fees and other revenues mainly associated with lower demand due to regulatory reform transition;
- a $5.2m decrease in employee expenses resulting from an estimated lower average staffing level;
- a $1.7m increase in supplier expenditure to support additional strategic initiatives; and
- a $1.1m reduction in depreciation expense associated with the delay in project delivery.
CASA is planning a small operating surplus in 2017-18. The $7.6m increase in employee benefits is driven by recruiting to our funded averaging staffing level, 805, and pay rises in accordance with the employee enterprise agreement.
CASA is budgeting for small operating surpluses in the forward years in the face of a small 0.6% reduction in Ordinary Appropriation from Government and with Special Appropriation for aviation fuel excise forecast to grow at around 3.0% per annum.
Depreciation expenditure will steadily increase in line with CASA's capital program and employee benefits will continue to increase with pay rises in accordance CASA's employee enterprise agreement.
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 2017–18 are estimated to be $183.5m, an increase of $5.0m when compared to the anticipated outcome for 2016–17. The main movements in the major expense categories are:
- employee expenses are to increase by $7.6m as CASA recruits to its funded staff level and the pay rises in accordance with CASA's employee enterprise agreement;
- depreciation expenses increasing by $0.1m, reflecting an increase in capital expenditure in 2016–17; and
- supplier expenses decreasing by $2.7m as a result of ongoing targeted savings measures.
Budgeted departmental balance sheet
CASA's net asset (or equity) position for 2017–18 is forecast to be largely unchanged with a small increase compared to 2016–17, consistent with the anticipated small operating surplus and projected capital investment.
Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $108.5m in 2017–18 represents a decrease of $0.3m from the estimated 2016–17 closing position.
Chart 3.2: Budgeted Assets for 2017-18
Chart 3.3 illustrates CASA's budgeted liabilities profile. Total budgeted liabilities of $46.6m in 2017–18 represents a decrease of $0.3m from the estimated 2016–17 closing position. CASA's primary liability continues to be accrued employee leave entitlements of $29.4m.
Chart 3.3: Budgeted Liabilities for 2017-18