Portfolio Additional Estimates Statements 2009-10 

3.1 Explanatory Tables

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 FaHCSIA. The corresponding table in the 2009-10 PB Statements is Table 3.1.2.

(A) = Administered

(D) = Departmental

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3.2 Budgeted Financial Statemetns

3.2.1 Analysis of budgeted financial statements

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

3.2.2 Budgeted financial statements

Departmental

Income and expenses

FaHCSIA is budgeting for a balanced operating position for 2009-10. The operating deficit of $4.4 million for 2008-09 was 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 $600.8 million, primarily comprising government appropriations of $573.2 million. The decrease in appropriation revenue of $1,084.6 million from 2008-09 is primarily due to Centrelink receiving direct appropriations for service delivery from 2009-10.

Total expenses for 2009-10 are estimated to be $600.8 million. The reduction in expenses of $1.104.5 million from 2008-09 is primarily due to the reduction in payments to Centrelink for service delivery. The increases in employee benefits reflect additional costs of new measures, while the reduction in supplier expenses is due increased savings in IT, accommodation and other costs.

Balance sheet

The Department's net asset position is expected to increase by $44.0 million to $261.1 million due to the equity injection for 2009-10.

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Administered

Income and expenses

FaHCSIA will administer the collection of non-taxation revenue estimated at $372.9 million in 2009-10, a decrease of $251.9 million from the 2008-09 actual revenues. The decrease is due to reduced returns from investments and receipts to special accounts.

FaHCSIA will administer programs totalling $67,154.8 million in expenses in 2009-10. The reduction of $8,582.4 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 $184.0 million to $4,971.48 million. This increase is primarily due to an increase of $56.7 million in receivables and $135.2 million in investments.

Total liabilities administered on behalf of the Government are expected to decrease by $557.4 million to $7,228.4 million.

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Prepared on Australian Accounting Standards basis.

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Prepared on Australian Accounting Standards basis.

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Prepared on Australian Accounting Standards basis.

Prepared on Australian Accounting Standards basis.

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The numbers in this table are subject to review under the Government's net cash framework as part of the operation sunlight review.

# Proceeds may be returned to the OPA

Prepared on Australian Accounting Standards basis.

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Schedule of administered activity

Prepared on Australian Accounting Standards basis.

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Prepared on Australian Accounting Standards basis.

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Prepared on Australian Accounting Standards basis.

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3.2.3 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 programmes.

Asset Valuation

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

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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 item relates 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.