Budget 2010-11
Department of Families, Housing, Community Services and Indigenous Affairs
Section 3: Explanatory tables and budgeted financial statement
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 2010-11 on the basis of accrual accounting principles.
3.2.2 Analysis of budgeted financial statements
Departmental
Income and expenses
FaHCSIA is budgeting for an operating deficit of $35.7 million for 2010-11. This is the result of the revised net cash funding arrangements introduced under Operation Sunlight, whereby asset replacement is now funded through a capital appropriation rather than the departmental operating appropriation. After allowing for depreciation expenses, the reconciliation table at the bottom of Table 3.2.1 shows that the operating result attributable to FaHCSIA is a balanced operating position.
Total operating revenue for 2010-11 is estimated at $552.4 million, comprising government appropriations of $525.1 million and own source revenue of $27.3 million. The decrease in revenue of $48.4 million is primarily due to the revised net cash funding arrangements introduced from 2010-11 and changes to the appropriation funding arrangements for the Community Development Employment Projects Program.
Total expenses for 2010-11 are estimated to be $588.0 million. The reduction in expenses of $12.8 million is primarily due to the revised funding arrangements for the Community Development Employment Projects Program. From 2010-11, other government agencies previously funded from the Indigenous Employment Special Account will be directly appropriated through the Budget. The increases in employee benefits reflect agreed pay rises under FaHCSIA's collective agreement, offset by estimated reductions in average staffing levels.
Balance sheet
The Department's net asset position is expected to increase by $1.6 million due to the impact of the operating loss of $35.7 million offset by the increase in contributed equity from the capital appropriations of $37.3 million.
Administered
Income and expenses
FaHCSIA will administer the collection of non-taxation revenue estimated at $373.0 million in 2010-11, a decrease of $6.2 million from the 2009-10 estimated revenue. The decrease is due to reduced returns from investments and receipts to special accounts.
FaHCSIA will administer programs totalling $72,011.2 million in expenses in 2010-11. The increase of $4,480.2 million principally reflects customer trends and indexation of income support payments.
Balance sheet
Total assets administered on behalf of the Government are expected to increase by $196.8 million to $5,204.9 million. This is primarily due to an increase of $34.0 million in receivables and $142.1 million in investments.
Total liabilities administered on behalf of the Government are expected to increase by $75.3 million to $7,546.7 million.
[ top ]
3.2.3 Budgeted financial statements tables
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| EXPENSES | |||||
| Employee benefits | 324,748 | 330,718 | 330,412 | 303,970 | 306,152 |
| Supplier | 213,996 | 211,624 | 212,312 | 199,001 | 203,064 |
| Depreciation and amortisation | 31,203 | 35,651 | 35,220 | 26,431 | 25,984 |
| Other | 30,825 | 10,028 | 10,135 | 10,253 | 10,363 |
| Total expenses | 600,772 | 588,021 | 588,079 | 539,655 | 545,563 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Revenue | |||||
| Sale of goods and rendering of services | 25,332 | 24,933 | 24,732 | 24,732 | 24,732 |
| Other revenue | 1,017 | 1,017 | 1,017 | 1,017 | 1,017 |
| Total revenue | 26,349 | 25,950 | 25,749 | 25,749 | 25,749 |
| Gains | |||||
| Other gains | 1,290 | 1,290 | 1,290 | 1,290 | 1,290 |
| Total gains | 1,290 | 1,290 | 1,290 | 1,290 | 1,290 |
| Total own-source income | 27,639 | 27,240 | 27,039 | 27,039 | 27,039 |
| Net cost of (contribution by) services | 573,133 | 560,781 | 561,040 | 512,616 | 518,524 |
| Revenue from Government | 573,133 | 525,130 | 525,820 | 486,185 | 492,540 |
| Surplus (Deficit) | - | (35,651) | (35,220) | (26,431) | (25,984) |
| Total comprehensive income attributable to the Australian Government | - | (35,651) | (35,220) | (26,431) | (25,984) |
| Note: Reconciliation of operating result attributable to the agency | |||||
| 2009-10 $'000 |
2010-11 $'000 |
2011-12 $'000 |
2012-13 $'000 |
2012-13 $'000 |
|
| Operating result attributable to the | |||||
| Australian Government | - | (35,651) | (35,220) | (26,431) | (25,984) |
| plus non-appropriated expenses depreciation and amortisation expenses | 35,651 | 35,220 | 26,431 | 25,984 | |
| Operating result attributable to the Agency | - | - | - | - | - |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| ASSETS | |||||
| Financial assets | |||||
| Cash and equivalents | 5,360 | 5,360 | 5,360 | 5,360 | 5,360 |
| Trade and other receivables | 115,291 | 116,794 | 116,717 | 110,059 | 110,608 |
| Total financial assets | 120,651 | 122,154 | 122,077 | 115,419 | 115,968 |
| Non-financial assets | |||||
| Land and buildings | 180,764 | 185,328 | 184,924 | 201,291 | 200,658 |
| Infrastructure, plant and equipment | 40,966 | 36,251 | 30,750 | 31,019 | 24,629 |
| Intangibles | 52,744 | 54,490 | 54,663 | 59,989 | 56,552 |
| Other | 2,895 | 2,895 | 2,895 | 2,895 | 2,895 |
| Total non-financial assets | 277,369 | 278,964 | 273,232 | 295,194 | 284,734 |
| Total assets | 398,020 | 401,118 | 395,309 | 410,613 | 400,702 |
| LIABILITIES | |||||
| Payables | |||||
| Suppliers | 45,145 | 45,145 | 45,145 | 45,145 | 45,145 |
| Other | 6,366 | 6,366 | 6,366 | 6,366 | 6,366 |
| Total payables | 51,511 | 51,511 | 51,511 | 51,511 | 51,511 |
| Provisions | |||||
| Employees | 81,775 | 83,278 | 83,201 | 76,543 | 77,092 |
| Other | 3,237 | 3,237 | 3,237 | 3,237 | 3,237 |
| Total provisions | 85,012 | 86,515 | 86,438 | 79,780 | 80,329 |
| Total liabilities | 136,523 | 138,026 | 137,949 | 131,291 | 131,840 |
| Net assets | 261,497 | 263,092 | 257,360 | 279,322 | 268,862 |
| EQUITY* | |||||
| Parent entity interest | |||||
| Contributed equity | 105,348 | 142,594 | 172,082 | 220,475 | 235,999 |
| Reserves | 48,158 | 48,158 | 48,158 | 48,158 | 48,158 |
| Retained surpluses or accumulated deficits | 107,991 | 72,340 | 37,120 | 10,689 | (15,295) |
| Total parent entity interest | 261,497 | 263,092 | 257,360 | 279,322 | 268,862 |
| Total equity | 261,497 | 263,092 | 257,360 | 279,322 | 268,862 |
* Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
[ top ]
|
Retained earnings $'000 |
Asset revaluation reserve $'000 |
Other reserves $'000 |
Contributed equity/capital $'000 |
Total equity $'000 |
|---|---|---|---|---|---|
| Opening balance as at 1 July 2010 | |||||
| Balance carried forward from previous period | 107,991 | 48,158 | - | 105,348 | 261,497 |
| Adjusted opening balance | 107,991 | 48,158 | - | 105,348 | 261,497 |
| Surplus (deficit) for the period | (35,651) | - | - | - | (35,651) |
| recognised directly in equity | (35,651) | - | - | - | (35,651) |
| Transactions with owners | |||||
| Contribution by owners | |||||
| Appropriation (equity injection) | - | - | - | 37,246 | 37,246 |
| Sub-total transactions with owners | - | - | - | 37,246 | 37,246 |
| Transfers between equity components | - | - | - | - | - |
| Estimated closing balance as at 30 June 2011 | 72,340 | 48,158 | - | 142,594 | 263,092 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Goods and services | 25,332 | 24,933 | 24,732 | 24,732 | 24,732 |
| Appropriations | 610,031 | 523,627 | 525,897 | 492,843 | 491,991 |
| Other | 1,017 | 1,017 | 1,017 | 1,017 | 1,017 |
| Total cash received | 636,380 | 549,577 | 551,646 | 518,592 | 517,740 |
| Cash used | |||||
| Employees | 321,116 | 329,215 | 330,489 | 310,628 | 305,603 |
| Suppliers | 210,137 | 210,334 | 211,022 | 197,711 | 201,774 |
| Other | 79,278 | 10,028 | 10,135 | 10,253 | 10,363 |
| Total cash used | 610,531 | 549,577 | 551,646 | 518,592 | 517,740 |
| Net cash from or (used by) operating activities | 25,849 | - | - | - | - |
| INVESTING ACTIVITIES | |||||
| Cash used | |||||
| Purchase of property, plant and equipment | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| Total cash used | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| Net cash from or (used by) investing activities | (70,372) | (37,246) | (29,488) | (48,393) | (15,524) |
| FINANCING ACTIVITIES | |||||
| Cash received | |||||
| Appropriations - contributed equity | 44,056 | 37,246 | 29,488 | 48,393 | 15,524 |
| Total cash received | 44,056 | 37,246 | 29,488 | 48,393 | 15,524 |
| Net cash from or (used by) financing activities | 44,056 | 37,246 | 29,488 | 48,393 | 15,524 |
| Net increase or (decrease) in cash held | (467) | - | - | - | - |
| Cash at the beginning of the reporting period | 5,827 | 5,360 | 5,360 | 5,360 | 5,360 |
| Cash at the end of the reporting period | 5,360 | 5,360 | 5,360 | 5,360 | 5,360 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| CAPITAL APPROPRIATIONS | |||||
| Capital Budget - Bill 1 (DCB) | - | 22,829 | 27,161 | 48,336 | 15,467 |
| Equity Injections - Bill 2 | 44,056 | 14,417 | 2,327 | 57 | 57 |
| Total capital appropriations | 44,056 | 37,246 | 29,488 | 48,393 | 15,524 |
| Total new capital appropriations | |||||
| Represented by: | |||||
| Purchase of non-financial assets | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| Total Items | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| PURCHASE OF NON-FINANCIAL ASSETS | |||||
| Funded by capital appropriations | 44,056 | 14,417 | 2,327 | 57 | 57 |
| Funded by capital appropriations - DCB | - | 22,829 | 27,161 | 48,336 | 15,467 |
| Funded internally from Departmental resources | 26,316 | - | - | - | - |
| TOTAL | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| RECONCILIATION OF CASH | |||||
| USED TO ACQUIRE ASSETS | |||||
| TO ASSET MOVEMENT TABLE | |||||
| Total purchases | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
| Total cash used to acquire assets | 70,372 | 37,246 | 29,488 | 48,393 | 15,524 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Land $'000 |
Buildings $'000 |
Other Infrastructure, Plant & Equipment $'000 |
Intangibles $'000 |
Total $'000 |
|---|---|---|---|---|---|
| as at 1 July 2010 | |||||
| Gross book value | 15,946 | 199,721 | 71,385 | 100,760 | 387,812 |
| Accumulated depreciation/amortisation | - | (34,903) | (30,419) | (48,016) | (113,338) |
| Opening net book balance | 15,946 | 164,818 | 40,966 | 52,744 | 274,474 |
| CAPITAL ASSET ADDITIONS | |||||
| Estimated expenditure on | |||||
| new or replacement assets | |||||
| By purchase - appropriation equity | - | 20,059 | 7,626 | 9,561 | 37,246 |
| Acquisition of entities or operations (including restructuring) sub-total | - | 20,059 | 7,626 | 9,561 | 37,246 |
| Other Movements | |||||
| Depreciation/amortisation expense | - | (15,495) | (12,341) | (7,815) | (35,651) |
| as at 30 June 2011 | |||||
| Gross book value | 15,946 | 219,780 | 79,011 | 110,321 | 425,058 |
| Accumulated depreciation/amortisation | - | (50,398) | (42,760) | (55,831) | (148,989) |
| Closing net book balance | 15,946 | 169,382 | 36,251 | 54,490 | 276,069 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| INCOME ADMINISTERED ON | |||||
| BEHALF OF GOVERNMENT | |||||
| Revenue | |||||
| Non-taxation | |||||
| Interest | 96,525 | 101,622 | 103,751 | 105,931 | 108,165 |
| Other sources of non-taxation revenues | 282,672 | 271,356 | 362,990 | 465,634 | 484,490 |
| Total non-taxation | 379,197 | 372,978 | 466,741 | 571,565 | 592,655 |
| Total revenues administered on behalf of Government | 379,197 | 372,978 | 466,741 | 571,565 | 592,655 |
| EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Grants | 1,766,203 | 1,864,098 | 1,820,922 | 1,766,670 | 1,614,066 |
| Subsidies | 8,148 | 8,445 | 8,678 | 8,445 | 8,655 |
| Personal benefits | 65,332,844 | 69,874,937 | 73,525,589 | 77,767,597 | 81,460,416 |
| Suppliers | 131,128 | 67,345 | 90,650 | 280,934 | 311,662 |
| Other | 292,687 | 196,380 | 216,443 | 220,296 | 224,909 |
| Total expenses administered on behalf of Government | 67,531,010 | 72,011,205 | 75,662,282 | 80,043,942 | 83,619,708 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Financial assets | |||||
| Cash and cash equivalents | 23,610 | 44,255 | 49,639 | 46,653 | 44,057 |
| Receivables | 1,135,502 | 1,169,553 | 1,177,377 | 1,191,010 | 1,220,411 |
| Investments | 3,833,496 | 3,975,629 | 4,176,135 | 4,487,619 | 4,817,704 |
| Total financial assets | 4,992,608 | 5,189,437 | 5,403,151 | 5,725,282 | 6,082,172 |
| Non-financial assets | |||||
| Other | 15,493 | 15,493 | 15,493 | 15,493 | 15,493 |
| Total non-financial assets | 15,493 | 15,493 | 15,493 | 15,493 | 15,493 |
| Total assets administered on behalf of Government | 5,008,101 | 5,204,930 | 5,418,644 | 5,740,775 | 6,097,665 |
| LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Provisions | |||||
| Personal benefits provision | 5,664,978 | 5,793,034 | 5,909,024 | 6,032,790 | 6,164,936 |
| Total provisions | 5,664,978 | 5,793,034 | 5,909,024 | 6,032,790 | 6,164,936 |
| Payables | |||||
| Suppliers | 16,156 | 16,156 | 16,156 | 16,156 | 16,156 |
| Subsidies | 2,976 | 2,977 | 2,978 | 2,979 | 2,980 |
| Personal benefits payable | 1,765,639 | 1,712,851 | 1,903,204 | 2,203,567 | 2,342,252 |
| Grants | 14,611 | 14,609 | 14,613 | 14,617 | 14,621 |
| Other payables | 7,045 | 7,045 | 7,045 | 7,045 | 7,045 |
| Total payables | 1,806,427 | 1,753,638 | 1,943,996 | 2,244,364 | 2,383,054 |
| Total liabilities administered on behalf of Government | 7,471,405 | 7,546,672 | 7,853,020 | 8,277,154 | 8,547,990 |
Prepared on Australian Accounting Standards basis.
[ top ]
|
Estimated actual 2009-10 $'000 |
Budget estimate 2010-11 $'000 |
Forward estimate 2011-12 $'000 |
Forward estimate 2012-13 $'000 |
Forward estimate 2013-14 $'000 |
|---|---|---|---|---|---|
| OPERATING ACTIVITIES | |||||
| Cash received | |||||
| Interest | 96,525 | 101,622 | 103,751 | 105,931 | 108,165 |
| Other | 345,869 | 300,502 | 418,363 | 515,198 | 518,286 |
| Total cash received | 442,394 | 402,124 | 522,114 | 621,129 | 626,451 |
| Cash used | |||||
| Grant payments | 1,825,166 | 1,925,221 | 1,881,308 | 1,827,056 | 1,673,025 |
| Subsidies paid | 8,147 | 8,444 | 8,677 | 8,444 | 8,654 |
| Personal benefits | 65,332,844 | 69,757,189 | 73,208,772 | 77,354,777 | 81,190,076 |
| Suppliers | 135,362 | 69,421 | 93,457 | 283,741 | 315,896 |
| Other | 292,687 | 196,380 | 216,443 | 220,296 | 224,909 |
| Total cash used | 67,594,206 | 71,956,655 | 75,408,657 | 79,694,314 | 83,412,560 |
| Net cash from or (used by) operating activities | (67,151,812) | (71,554,531) | (74,886,543) | (79,073,185) | (82,786,109) |
| INVESTING ACTIVITIES | |||||
| Cash received | |||||
| Investments | 1,295,248 | 1,348,812 | 1,383,515 | 1,429,294 | 1,476,224 |
| Total cash received | 1,295,248 | 1,348,812 | 1,383,515 | 1,429,294 | 1,476,224 |
| Cash used | |||||
| Investments | 1,490,870 | 1,490,945 | 1,584,021 | 1,740,778 | 1,806,309 |
| Total cash used | 1,490,870 | 1,490,945 | 1,584,021 | 1,740,778 | 1,806,309 |
| Net cash from or (used by) investing activities | (195,622) | (142,133) | (200,506) | (311,484) | (330,085) |
| Net increase or (decrease) in cash held | (67,347,434) | (71,696,664) | (75,087,049) | (79,384,669) | (83,116,194) |
| Cash at beginning of reporting period | 23,857 | 23,610 | 44,255 | 49,639 | 46,653 |
| Cash from Official Public Account for: | |||||
| - appropriations | 67,399,434 | 71,660,440 | 75,030,124 | 79,333,434 | 83,068,513 |
| Cash to Official Public Account for: | |||||
| - special accounts | 52,247 | 56,869 | 62,309 | 48,249 | 45,085 |
| Cash at end of reporting period | 23,610 | 44,255 | 49,639 | 46,653 | 44,057 |
Prepared on Australian Accounting Standards basis.
[ top ]
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 2009-10 to 2013-14. 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 that are controlled by FaHCSIA. Departmental expenses include employee and supplier expenses and other administrative costs incurred by FaHCSIA in providing its goods and services.
Administered items are revenues, expenses, assets and liabilities that 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.
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 on the 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 items 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 paydays to benefit recipients at the end of the financial year.
[ top ]