Budget 2010-11

Torres Strait Regional Authority

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no differences in the Budget papers and TSRA's PB Statements.

3.2.2 Analysis of budgeted financial statements

Budgeted comprehensive income statement

This statement provides a picture of the expected financial results for the TSRA by identifying full accrual expenses and revenues, which highlights whether the TSRA is operating at a sustainable level. A modest surplus of $609,000 is forecast for the 2010-11 fiscal year.

Budgeted departmental balance sheet

This statement shows the financial position of the TSRA. It helps decision-makers to track the management of assets, liabilities and equity. TSRA's budgeted balance sheet for the fiscal year ending June 2011 shows TSRA forecasting a total assets position $54.8 million and modest liabilities of $8.9 million, resulting in a net asset position of $44.2 million.

Budgeted departmental statement of cash flows

The 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.

Predicted departmental cash flows have been adjusted to reflect the anticipated impact on cash after taking into account the forecast movements in the balance sheet and comprehensive income statement. The agency is forecasting a favourable cash position of $26.7 million for the fiscal year ending June 2011. The favourable cash position is due to the timing across fiscal years between receipt of income and program expenditure commitments.

[ top ]

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 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	6,739	7,247	7,216	6,969	6,973
Supplier expenses	8,621	8,650	8,600	8,506	8,506
Grants	57,407	59,237	40,158	27,617	27,817
Depreciation and amortisation	400	400	400	400	400
Total expenses	73,167	75,534	56,374	43,492	43,696
LESS:
OWN-SOURCE INCOME
Revenue
Interest	800	800	800	800	800
Other	5,585	5,585	5,585	5,585	5,585
Total revenue	6,385	6,385	6,385	6,385	6,385
Total own-source income	6,385	6,385	6,385	6,385	6,385
Net cost of (contribution by) services	66,782	69,149	49,989	37,107	37,311
Revenue from government	67,391	69,758	50,598	37,716	37,920
Surplus (Deficit)	609	609	609	609	609
Surplus (Deficit) attributable to the
Australian Government	609	609	609	609	609
Total comprehensive income attributable to the Australian Government	609	609	609	609	609

Prepared on Australian Accounting Standards basis.

[ top ]

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
	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	26,075	26,789	27,398	28,007	28,616
Trade and other receivables	7,133	7,133	7,133	7,133	7,133
Investments accounted for under the equity method	-	-	-	-	-
Other investments	-	-	-	-	-
Tax assets	-	-	-	-	-
Other	-	-	-	-	-
Total financial assets	33,208	33,922	34,531	35,140	35,749
Non-financial assets
Land and buildings	20,473	20,523	20,223	19,923	19,623
Property, plant and equipment	431	331	631	931	1,231
Other	41	41	41	41	41
Total non-financial assets	20,945	20,895	20,895	20,895	20,895
Total assets	54,153	54,817	55,426	56,035	56,644
LIABILITIES
Payables
Suppliers	515	620	620	620	620
Grants	7,976	7,876	7,876	7,876	7,876
Dividends	-	-	-	-	-
Other	477	477	477	477	477
Total payables	8,968	8,973	8,973	8,973	8,973
Provisions
Employee provisions	1,569	1,619	1,619	1,619	1,619
Total provisions	1,569	1,619	1,619	1,619	1,619
Total liabilities	10,537	10,592	10,592	10,592	10,592
Net assets	43,616	44,225	44,834	45,443	46,052
EQUITY*
Parent entity interest
Contributed equity	32	32	32	32	32
Reserves	9,047	9,047	9,047	9,047	9,047
Retained surplus (accumulated deficit)	34,537	35,146	35,755	36,364	36,973
Total parent entity interest	43,616	44,225	44,834	45,443	46,052
Total equity	43,616	44,225	44,834	45,443	46,052

* ‘Equity' is the residual interest in assets after deduction of liabilities.

Prepared on Australian Accounting Standards basis.

[ top ]

Table 3.2.3: Departmental statement of changes in equity-summary of movement (Budget year 2010-11)
	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	34,537	9,047	-	32	43,616
Adjusted opening balance	34,537	9,047	-	32	43,616
Surplus (deficit) for the period	609	-	-	-	609
Total comprehensive income recognised directly in equity	609	-	-	-	609

Estimated closing balance as at 30 June 2011	35,146	9,047	-	32	44,225

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)
(for the period ended 30 June)
	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
Appropriations	67,391	69,758	50,598	37,716	37,920
Interest	800	800	800	800	800
Other	5,585	5,585	5,585	5,585	5,585
Total cash received	73,776	76,143	56,983	44,101	44,305
Cash used
Employees	6,739	7,197	7,216	6,969	6,973
Suppliers	8,621	8,545	8,600	8,506	8,506
Grants	57,407	59,337	40,158	27,617	27,817
Total cash used	72,767	75,079	55,974	43,092	43,296
Net cash from
operating activities	1,009	1,064	1,009	1,009	1,009
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment	400	350	400	400	400
Total cash used	(400)	(350)	(400)	(400)	(400)
Net cash from (used by) investing activities	(400)	(350)	(400)	(400)	(400)
Net increase (decrease) in cash held	609	714	609	609	609
Cash and cash equivalents at the beginning of the reporting period	25,466	26,075	26,789	27,398	28,007
Cash and cash equivalents at the end of the reporting period	26,075	26,789	27,398	28,007	28,616

Prepared on Australian Accounting Standards basis.

[ top ]

Table 3.2.5: Departmental capital budget statement
	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
PURCHASE OF NON-FINANCIAL
ASSETS
Funded internally from departmental resources¹	400	350	400	400	400
TOTAL	400	350	400	400	400
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases	400	350	400	400	400
Total cash used to acquire assets	400	350	400	400	400

1 Includes the following sources of funding: annual and prior year appropriations.

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2010-11)
	Land $'000	Buildings $'000	Other property, Plant & equipment $'000	Heritage and cultural assets $'000	Total $'000
As at 1 July 2010
Gross book value	7,365	13,108	856	41	21,370
Accumulated depreciation/amortisation			425		425
Opening net book balance	7,365	13,108	431	41	21,795
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase - appropriation equity	-	350	-	-	350
Total additions	-	350	-	-	350
Other movements
Depreciation/amortisation expense	-	300	100	-	400
As at 30 June 2011
Gross book value	7,365	13,458	856	41	21,720
Accumulated depreciation/amortisation		300	525	-	825
Closing net book balance	7,365	13,158	331	41	20,895

Prepared on Australian Accounting Standards basis.

[ top ]

3.2.4 Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister's Orders issued by the Minister for Finance and Deregulation.

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

Departmental financial statements and schedule to administered activity

Under the Australian Government's financial budget and reporting framework, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by an agency or authority on behalf of the government according to set government directions.

TSRA has no administered items.

Revenue from Government-ordinary annual appropriations

Revenue from Government represents amounts appropriated to fund the TSRA's seven programs, actioned in order to deliver the agency's stated outcome.

Expenses-depreciation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives, using in all cases the straight-line method of depreciation.

Asset valuation

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

Financial assets-cash

This includes notes and coins held and deposits at call.

Financial assets-receivables

This includes loans and advances made by the TSRA to clients in the delivery of its programs, in addition to amounts owing to the TSRA for delivery of goods and services. Loans receivable are measured at amortised cost using the effective interest method less impairment.

[ top ]