Portfolio Budget Statements 2009-10

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

Table 3.2.1 recognises the full year revenue for 2008-09 on the basis of accrual accounting principles.

Table 1.1 reflects the actual appropriations received for 2008-09, with appropriations relating to additional measures being received in 2009-10 as prior year outputs.

3.2.2 Analysis of budgeted financial statements

Departmental

Income and expenses

FaHCSIA is budgeting for a balanced operating position for 2009-10. The budgeted operating deficit of $4.3 million for 2008-09 is due to a reduction in the discount rate used to calculate the provision for leave entitlements.

Total operating revenue for 2009-10 is estimated at $600.4 million, primarily comprising government appropriations of $572.8 million. The decrease in revenue of $1,098.4 million is primarily due to Centrelink receiving direct appropriations for service delivery from 2009-10.

Total expenses for 2009-10 are estimated to be $600.4 million. The reduction in expenses of $1,102.7 million in expenses is primarily due to the reduction in payments to Centrelink for service delivery. The increases in employee benefits reflects additional costs of new measures while the reduction in supplier expenses is due to increased savings in IT, accommodation and other costs.

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Balance sheet

The Department's net asset position is expected to increase by $44.0 million to $239.7 million due to the equity injection for 2009-10.

Land and buildings and infrastructure, plant and equipment are expected to increase by $42.3 million. This is offset by a reduction of $19.7 million in other non-financial assets due to the expensing of the prepayment to Centrelink for work that will be completed during 2009-10.

Administered

Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $345.3 million in 2009-10, a decrease of $31.0 million from the 2008-09 estimated revenues.

FaHCSIA will administer programs totalling $66,834.2 million in expenses in 2009-10. The reduction of $8,641.1 million reflects the one-off nature of a number of payments made in 2008-09.

Balance sheet

Total assets administered on behalf of the Government are expected to increase by $185.7 million to $4,568.3 million. This increase is primarily due to an increase of $51.4 million in receivables and $127.4 million in investments.

Total liabilities administered on behalf of the Government are expected to decrease by $488.3 million to $7,116.2 million.

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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)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
EXPENSES
Employee benefits	313,791	324,118	328,502	329,824	297,068
Supplier	248,049	192,043	196,309	201,579	183,268
Depreciation and amortisation	32,086	40,266	42,198	37,985	39,352
Payments for service delivery	1,086,850	29,722	10,048	10,156	10,255
Other	22,343	14,250	16,326	16,474	16,679
Total expenses	1,703,119	600,399	593,383	596,018	546,622
LESS:
OWN-SOURCE INCOME
Revenue
Sale of goods and rendering of services	36,475	25,332	24,933	24,732	24,732
Other revenue	433	1,017	1,017	1,017	1,017
Total revenue	36,908	26,349	25,950	25,749	25,749
Gains
Sale of assets	2,905	-	-	-	-
Other gains	1,290	1,290	1,290	1,290	1,290
Total gains	4,195	1,290	1,290	1,290	1,290
Total own-source income	41,103	27,639	27,240	27,039	27,039
Net cost of (contribution by) services	1,662,016	572,760	566,143	568,979	519,583
Appropriation revenue	1,657,750	572,760	566,143	568,979	519,583
Surplus (Deficit)	(4,266)	-	-	-	-
Surplus (Deficit) attributable to the Australian Government	(4,266)	-	-	-	-
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves	-	-	-	-	-
Total other comprehensive income	-	-	-	-	-
Total comprehensive income	-	-	-	-	-
Total comprehensive income attributable to the Australian Government	-	-	-	-	-

Prepared on Australian Accounting Standards basis.

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Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
ASSETS
Financial assets
Cash and equivalents	7,902	9,099	9,649	8,570	5,652
Trade and other Receivables	155,633	91,500	113,055	126,016	108,058
*Total financial assets*	163,535	100,599	122,704	134,586	113,710
Non-financial assets
Land and buildings	157,222	182,059	175,069	168,286	177,308
Infrastructure, plant and equipment	24,261	41,679	39,118	36,865	36,871
Intangibles	54,769	42,620	45,582	46,121	46,134
Other	22,405	2,660	2,660	2,660	2,660
*Total non-financial assets*	258,657	269,018	262,429	253,932	262,973
Total assets	422,192	369,617	385,133	388,518	376,683
Provisions
Employees	87,938	90,832	92,061	92,431	83,251
Other	10,822	9,765	9,765	9,765	9,765
*Total provisions*	98,760	100,597	101,826	102,196	93,016
Payables
Suppliers	116,954	22,428	22,925	23,542	20,729
Other	10,883	6,941	7,951	8,023	8,124
*Total payables*	127,837	29,369	30,877	31,565	28,853
Total liabilities	226,597	129,966	132,703	133,761	121,869
Net assets	195,595	239,651	252,430	254,757	254,814
EQUITY*
Parent entity interest
Contributed equity	61,292	105,348	118,127	120,454	120,511
Reserves	33,256	33,256	33,256	33,256	33,256
Retained surpluses or accumulated deficits	101,047	101,047	101,047	101,047	101,047
*Total parent entity interest*	195,595	239,651	252,430	254,757	254,814
Total equity	195,595	239,651	252,430	254,757	254,814
Current assets	185,940	103,259	125,364	137,246	116,370
Non-current assets	236,252	266,358	259,769	251,272	260,313
Current liabilities	153,042	87,778	89,627	90,341	82,310
Non-current liabilities	73,555	42,188	43,076	43,420	39,559

*Note: 'equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
OPERATING ACTIVITIES
Cash received
Goods and services	36,475	25,332	24,933	24,732	24,732
Appropriations	1,603,216	636,893	544,587	556,018	537,541
Other	433	1,017	1,017	1,017	1,017
Total cash received	1,640,124	663,242	570,537	581,767	563,290
Cash used
Employees	(295,344)	(321,224)	(327,273)	(329,454)	(306,247)
Suppliers	(251,576)	(235,961)	(209,837)	(216,075)	(201,369)
Payments to service delivery	(1,038,028)	(78,544)	(10,048)	(10,156)	(10,256)
Total cash used	(1,584,948)	(635,729)	(547,158)	(555,685)	(517,872)
Net cash from or (used by) operating activities	55,176	27,513	23,379	26,082	45,418
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment	2,905	-	-	-	-
Total cash received	2,905	-	-	-	-
Cash used
Purchase of property, plant and equipment	(62,066)	(70,372)	(35,608)	(29,488)	(48,393)
Total cash used	(62,066)	(70,372)	(35,608)	(29,488)	(48,393)
Net cash from or (used by) investing activities	(59,161)	(70,372)	(35,608)	(29,488)	(48,393)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity	6,758	44,056	12,779	2,327	57
Total cash received	6,758	44,056	12,779	2,327	57
Net cash from or (used by) financing activities	6,758	44,056	12,779	2,327	57
Net increase or (decrease) in cash held	2,773	1,197	550	(1,079)	(2,918)
Cash at the beginning of the reporting period	5,129	7,902	9,099	9,649	8,570
Cash at the end of the reporting period	7,902	9,099	9,649	8,570	5,652

Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Departmental statement of changes in equity-summary of movement (Budget year 2009-10)
	Retained earnings $'000	Asset revaluation reserve $'000	Other reserves $'000	Contributed equity/capital $'000	Total equity $'000
Opening balance as at 1 July 2009
Balance carried forward from
previous period	101,047	33,256	-	61,292	195,595
*Adjusted opening balance*	101,047	33,256	-	61,292	195,595
Income and expense
Surplus (deficit) for the period	-	-	-	-	-
*Total income and expenses*
*recognised directly in equity*	-	-	-	-	-
Transactions with owners
Contribution by owners
Appropriation (equity injection)	-	-	-	44,056	44,056
*Sub-total transactions with owners*	-	-	-	44,056	44,056
Estimated closing balance as at 30 June 2010	101,047	33,256	-	105,348	239,651

Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
CAPITAL APPROPRIATIONS
Total equity injections	6,758	44,056	12,779	2,327	57
Total capital appropriations	6,758	44,056	12,779	2,327	57
Represented by:
Purchase of non-financial assets	6,758	44,056	12,779	2,327	57
Total represented by	6,758	44,056	12,779	2,327	57
ACQUISITION OF NON-FINANCIAL ASSETS
Funded by capital appropriations	6,758	44,056	12,779	2,327	57
Funded internally from Departmental resources	55,308	26,316	22,829	27,161	48,336
TOTAL	62,066	70,372	35,608	29,488	48,393

Prepared on Australian Accounting Standards basis.

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Table 3.2.6: Statement of Departmental Asset Movements (2009-10)
	Land $'000	Buildings $'000	Other Infrastructure, Plant &Equipment $'000	Intangibles $'000	Total $'000
as at 1 July 2009
Gross book value	13,186	188,161	40,791	95,453	337,591
Accumulated depreciation/amortisation	-	(44,125)	(16,530)	(40,684)	(101,339)
Opening net book balance	13,186	144,036	24,261	54,769	236,252
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed	-	43,164	23,078	4,130	70,372
by finance lease	-	-	-	-	-
by contribution/donation	-	-	-	-	-
by gift	-	-	-	-	-
Acquisition of entities or operations (including restructuring)	-	-	-	-	-
Sub-total	-	43,164	23,078	4,130	70,372
Other Movements
Assets held for sale or in a disposal group held for sale	-	-	-	-	-
Depreciation/amortisation expense	-	(18,327)	(5,660)	(16,279)	(40,266)
Disposals^#	-	-	-	-	-
Other	-	-	-	-	-
Net book value as at 30 June 2010	13,186	168,873	41,679	42,620	266,358
Represented by:
Gross book value	13,186	231,325	63,869	99,583	407,963
Accumulated depreciation/amortisation		(62,452)	(22,190)	(56,963)	(141,605)
Closing net book balance	13,186	168,873	41,679	42,620	266,358

Prepared on Australian Accounting Standards basis.

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Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
INCOME ADMINISTERED ON BEHALF OF GOVERNMENT
Revenue
Non-taxation
Interest	113,071	70,207	61,507	71,034	80,405
Other sources of non-taxation revenues	376,328	345,317	256,201	379,837	407,459
*Total non-taxation*	489,399	415,524	317,708	450,871	487,864
Total revenues administered on behalf of Government	489,399	415,524	317,708	450,871	487,864
Total income administered on behalf of Government	489,399	415,524	317,708	450,871	487,864
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
Grants	3,068,623	1,790,951	1,988,637	2,067,951	2,071,184
Subsidies	7,878	8,148	8,355	8,518	8,233
Personal benefits	71,992,127	64,546,021	68,361,278	71,835,188	75,467,178
Suppliers	113,799	118,508	28,491	14,538	14,318
Other	292,779	370,522	152,917	152,940	157,442
Total expenses administered on behalf of Government	75,475,206	66,834,150	70,539,678	74,079,135	77,718,355

Prepared on Australian Accounting Standards basis.

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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT
Financial assets
Cash and cash equivalents	11,856	18,804	27,372	44,684	64,590
Receivables	1,099,289	1,150,660	1,206,246	1,245,754	1,292,045
Investments	3,264,044	3,391,459	3,548,246	3,866,529	4,161,071
Other financial assets	364	364	364	364	364
*Total financial assets*	4,375,553	4,561,287	4,782,228	5,157,331	5,518,070
Non-financial assets
Other	7,065	7,065	7,065	7,065	7,065
*Total non-financial assets*	7,065	7,065	7,065	7,065	7,065
Total assets administered on behalf of Government	4,382,618	4,568,352	4,789,293	5,164,396	5,525,135
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
Provisions
Other provisions	5,407,524	5,490,791	5,604,724	5,719,818	5,848,187
*Total provisions*	5,407,524	5,490,791	5,604,724	5,719,818	5,848,187
Payables
Suppliers	9,688	9,688	9,688	9,688	9,688
Subsidies	861	862	863	864	865
Personal benefits payable	2,154,677	1,583,125	1,590,504	1,758,925	2,004,593
Grants	4,535	4,542	4,540	4,544	4,548
Other payables	27,215	27,215	27,215	27,215	27,215
*Total payables*	2,196,976	1,625,432	1,632,810	1,801,236	2,046,909
Total liabilities administered on behalf of Government	7,604,500	7,116,223	7,237,534	7,521,054	7,895,096

Prepared on Australian Accounting Standards basis.

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Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
	Estimated actual 2008-09 $'000	Budget estimate 2009-10 $'000	Forward estimate 2010-11 $'000	Forward estimate 2011-12 $'000	Forward estimate 2012-13 $'000
OPERATING ACTIVITIES
Cash received
Interest	113,071	70,207	61,507	71,034	80,405
Other	358,192	294,126	159,457	282,944	284,324
*Total cash received*	471,263	364,333	220,964	353,978	364,729
Cash used
Grant payments	3,146,375	1,905,092	2,022,456	2,104,299	2,089,170
Subsidies paid	7,877	8,147	8,354	8,517	8,232
Personal benefits	68,810,216	64,971,767	68,283,067	71,565,597	75,128,447
Suppliers	116,929	120,191	30,519	17,112	14,318
Other	291,119	367,674	149,905	149,407	154,717
*Total cash used*	72,372,516	67,372,871	70,494,301	73,844,932	77,394,884
Net cash from or (used by) operating activities	(71,901,253)	(67,008,538)	(70,273,337)	(73,490,954)	(77,030,155)
INVESTING ACTIVITIES
Cash used
Investments	191,123	127,415	156,787	318,283	294,542
*Total cash used*	191,123	127,415	156,787	318,283	294,542
Net cash from or (used by) investing activities	(191,123)	(127,415)	(156,787)	(318,283)	(294,542)
*Net increase or (decrease) in cash held*
Cash at beginning of reporting period	11,807	11,856	18,804	27,372	44,684
Cash from Official Public Account for:
- appropriations	72,138,574	67,183,525	70,473,529	73,856,012	77,373,498
Cash to Official Public Account for:
- special accounts	(46,149)	(40,624)	(34,837)	(29,463)	(28,895)
Cash at end of reporting period	11,856	18,804	27,372	44,684	64,590

Prepared on Australian Accounting Standards basis.

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3.2.4 Notes to the financial statements

Accounting policies

Budgeted statements of income and expenditure, assets and liabilities and cash flows have been included for the financial years 2008-09 to 2012-13. These statements are prepared in accordance with the requirements of the Government's financial budget and reporting framework.

Amounts in these statements are rounded to the nearest thousand dollars.

Reporting Entities

FaHCSIA's budgeted financial statements include:

the Department (FaHCSIA core)
the Social Security Appeals Tribunal
the Aboriginals Benefit Account
the Aboriginal and Torres Strait Islander Land Account.

Departmental and Administered Items

Departmental revenues, expenses, assets and liabilities are those which are controlled by FaHCSIA. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by FaHCSIA in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities which are managed by FaHCSIA on behalf of the Australian Government, according to set government directions. Administered expenses include subsidies, grants and personal benefit payments.

The distinction between departmental and administered funding enables an assessment of the administrative efficiency of the department in managing government programs.

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Asset Valuation

All assets are initially recorded at cost. Property, plant and equipment and other infrastructure assets are periodically revalued at their fair value.

Commentary - Financial Statements

Intangibles (Departmental)

Intangibles represent the amount of computer software currently recorded by FaHCSIA. Intangible assets are recorded at cost.

Employee provisions (Departmental)

Employee provisions consist of accrued leave entitlements, accrued salary and wages and superannuation payments that are owed to employees at the end of the financial year.

Receivables (Administered)

Administered receivables represent amounts owing to the Australian Government for overpayments to benefit recipients. The figure presented in the financial statements is net of provisions recognised for bad and doubtful debts.

Investments (Administered)

Administered investments primarily represent the investments in the Aboriginal and Torres Strait Islander Land Account.

Non Financial Assets - Other (Administered)

Other non-financial assets relate to estimated administered prepayments at the end of the financial year.

Personal benefits payable (Administered)

Personal benefits payable relates to special appropriation amounts recognised as payables due to the timing of pay days to benefit recipients at the end of the financial year.

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