Portfolio Budget Statements 2009-10

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements (PB Statements) as a result of differences between Australian Accounting Standards (AAS) and Government Finance Statistics (GFS). Furthermore, there are no differences which arise because of related entity transactions.

3.2.2 Analysis of budgeted financial statements

An analysis of the primary causes of movements from the financial statements published in the 2009-10 PB Statements is provided below.

Budgeted departmental income statement

This statement provides a picture of the expected financial results for AHL by identifying full accrual expense and revenues, which highlights whether AHL is operating at a sustainable level.

Total revenue

Operating income from Government has increased by $2.55 million in 2009-10 as a result of additional operating funds for Kununurra Secondary Education Hostel ($0.3 million) and Fire Safety depreciation ($0.1 million) and net increase in ongoing operational costs of $0.2 million.

Accommodation charges have increased due to revision of tariff rates in line with the increase in Centrelink benefits and the planned opening of new hostels such as the Kununurra Secondary Education Hostel and Renal Dialysis hostel in Townsville.

Indigenous Youth Mobility Program (IYMP) is a four-year program ending on 30 June 2009. To date $15.3 million has been received. A final payment of $0.4 million is due in 2009-10.

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Total Expenses

Salaries and employee benefits-these have been increased by $1.8 million as a result of new AHL hostels in Mt Isa redevelopment, Kununurra and Townsville.

Suppliers-this includes food, materials, services and sundry expenses.

Depreciation and Amortisation-higher level of depreciation expenditure flows from the acquisition costs for fire safety works across all AHL sites of $5.0 million over the three financial years to 2009-10.

Grants-this item represents the community hostels grants of a capital and operating nature to approved organisations to operate hostels .

Budgeted departmental balance sheet

This statement shows the financial position of AHL. It helps AHL to track the management of assets and liabilities.

The major variations between estimated actuals for 2008-09 and the Budget for 2009-10 in the Balance Sheet are as follows:

Investment activity in non-current assets continues to increase in 2009-10 due to the capital equity injections Renal Dialysis Hostels ($3.7 million) and Noongar Elders Home in Perth ($0.8 million).
The cash balance reflects the nature of hostel major maintenance and construction works as they normally take two to three years to complete. Consequently, actual payments are spread over two financial years, resulting in higher than normal cash balance.
The receivables are fairly stable and include items such as GST refunds due from Australian Taxation Office and trade debtors.
Liabilities are expected to remain at similar level for the next three financial years.

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Budgeted departmental statement of cash flows

Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.

The major variations between estimated actuals for 2008-09 and budget for 2009-10 in the Statement of Cash Flows are as follows:

The increase in total cash to be received in 2009-10 is linked to the increase in appropriation and higher level of accommodation charges collected ($0.13 million cash impact).
The trend in payments to suppliers and employees is in line with the comments provided under the expenses category in the Income Statement.
The purchase of property, plant and equipment increases in 2009-10 due to the use of the capital equity injections for Renal Dialysis Hostels ($3.7 million) and Noongar Elders Home in Perth ($1.6 million).

Departmental statement of changes in equity - summary of movement

The changes in the statement of equity is represented by $0.001 million surplus for the 2009-10 financial year and $3.8 million capital equity injections, made up of Renal Dialysis Hostels ($1.05 million), Noongar Elders Home in Perth ($0.8 million) and Fire Safety Works ($1.94 million).

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3.2.3 Budgeted financial statements tables

Table 3.2.1: Budgeted departmental comprehensive income statement
(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	24,066	25,869	27,431	27,435	27,054
Supplier	13,641	14,060	16,214	16,248	16,048
Grants	8,200	6,400	6,400	6,400	6,400
Depreciation and amortisation	2,374	2,840	3,519	3,905	3,905
Write-down and impairment of assets	110	110	110	110	110
Finance costs
Other	-	-	-	-	-
Total expenses	48,391	49,279	53,674	54,098	53,517
LESS:
OWN-SOURCE INCOME
Revenue
Accommodation Charges	8,528	8,869	9,000	9,427	9,427
Appropriations	34,281	36,840	42,193	42,190	41,609
Grants and Subsidies
Department of Health and Ageing	3,010	2,413	1,800	1,800	1,800
Indigenous Youth Mobility Program	1,891	476	-	-	-
Interest	500	500	500	500	500
Other revenue	182	182	182	182	182
Total revenue	48,392	49,280	53,675	54,099	53,518
Surplus (Deficit)	1	1	1	1	1
Surplus (Deficit) attributable to the Australian Government	1	1	1	1	1

* This amount includes H&C depreciation expense which is no longer funded as follows: $200 2009-10, $200 2010-11, $200 2011-12 and $200 2012-13.

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Table 3.2.2: Budgeted departmental balance sheet
(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
ASSETS
Financial assets
Cash and equivalents	21,827	20,524	18,890	17,642	16,394
Trade and other Receivables	979	979	979	979	979
*Total financial assets*	22,806	21,503	19,869	18,621	17,373
Non-financial assets
Land and buildings	64,612	69,343	70,615	71,501	72,387
Infrastructure, plant and equipment	2,557	2,917	3,277	3,637	3,997
Heritage and cultural assets	102	105	108	111	114
*Total non-financial assets*	67,271	72,365	74,000	75,249	76,498
Total assets	90,077	93,868	93,869	93,870	93,871
LIABILITIES
Provisions
Employees	3,262	3,262	3,262	3,262	3,262
*Total provisions*	3,262	3,262	3,262	3,262	3,262
Payables
Suppliers	514	514	514	514	514
*Total payables*	514	514	514	514	514
Total liabilities	3,776	3,776	3,776	3,776	3,776
Net assets	86,301	90,092	90,093	90,094	90,095
EQUITY*
Parent entity interest
Contributed equity	77,371	81,161	81,161	81,161	81,161
Retained surpluses or accumulated deficits	8,930	8,931	8,932	8,933	8,934
Total equity	86,301	90,092	90,093	90,094	90,095
Current assets	22,806	21,503	19,869	18,621	17,373
Non-current assets	67,271	72,365	74,000	75,249	76,498
Current liabilities	3,262	3,262	3,262	3,262	3,262
Non-current liabilities	514	514	514	514	514

Prepared on Australian Accounting standards basis

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

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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
Accomodation Charges	8,441	8,759	8,890	9,317	9,317
Appropriations	34,281	36,640	42,193	42,190	42,609
Grants and Subsidies	4,901	2,889	1,800	1,800	1,800
Interest	500	500	500	500	500
Other	2,558	2,597	2,597	2,597	2,597
*Total cash received*	50,681	51,385	55,980	56,404	56,823
Cash used
Employees	23,113	24,841	26,371	26,375	26,375
Suppliers	17,009	17,303	19,689	19,723	20,142
Grants	8,200	6,400	6,400	6,400	6,400
*Total cash used*	48,322	48,544	52,460	52,498	52,917
Net cash from or (used by) operating activities	2,359	2,841	3,520	3,906	3,906
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment	11,804	7,934	5,154	5,154	5,154
Net cash from or (used by) investing activities	(11,804)	(7,934)	(5,154)	(5,154)	(5,154)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity	6,472	3,790	-	-	-
Net cash from or (used by) financing activities	6,472	3,790	-	-	-
Net increase or (decrease) in cash held	(2,973)	(1,303)	(1,634)	(1,248)	(1,248)
Cash at the beginning of the reporting period	24,800	21,827	20,524	18,890	17,642
Cash at the end of the reporting period	21,827	20,524	18,890	17,642	16,394

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	8,930	-	-	77,371	86,301
*Adjusted opening balance*	8,930	-	-	77,371	86,301
Income and expense
Surplus (deficit) for the period	1	-	-	-	1
*Total income and expenses recognised directly in equity*	1	-	-	-	1
Transactions with owners
Contribution by owners Appropriation (equity injection)	-	-	-	3,790	3,790
*Sub-total transactions with owners*	-	-	-	3,790	3,790
Estimated closing balance as at 30 June 2010	8,931	-	-	81,161	90,092

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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	6,472	3,790	-	-	-
Total capital appropriations	6,472	3,790	-	-	-
Represented by:
Purchase of non-financial assets	6,472	3,790	-	-	-
Total represented by	6,472	3,790	-	-	-
ACQUISITION OF NON-FINANCIAL ASSETS
Funded by capital appropriations	6,472	3,790	-	-	-
Funded internally from Departmental resources¹	5,332	4,144	5,154	5,154	5,154
TOTAL	11,804	7,934	5,154	5,154	5,154

1 Includes the following sources of funding:

- annual and prior year appropriations

- donations and contributions

- gifts

- finance leases

- internally developed assets

- s31 relevant agency receipts

- proceeds from the sale of assets

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Table 3.2.6: Statement of Asset Movements-Departmental
	Land $'000	Buildings $'000	Other Infrastructure, Plant&Equipments $'000	Heritage&Cultural Assets $'000	Total $'000
as at 1 July 2009
Gross book value	5,740	82,433	4,582	119	92,874
Accumulated depreciation/amortisation	-	23,561	2,025	17	25,603
Opening net book balance	5,740	58,872	2,557	102	67,271
CAPITAL ASSET ADDITIONS
Estimated expenditure on new or replacement assets
by purchase or internally developed	-	7,280	650	4	7,934
Sub-total	-	7,280	650	4	7,934
as at 30 June 2010
Gross book value	5,740	89,713	5,232	123	100,808
Accumulated depreciation/amortisation	-	26,110	2,315	18	28,443
Closing net book balance	5,740	63,603	2,917	105	72,365

Prepared on Australian Accounting standards basis

3.2.4 Notes to the financial statements

The financial statements have been prepared in accordance with Australian Equivalent of International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial statements are prepared on an accrual basis and in accordance with historical cost convention.

The accounting policies adopted that underpin these statements are consistent with those applied in 2008-09.

Reference should be made to AHL's Annual Report 2008-09 for detailed disclosure of AHL's accounting policies.

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