Home | Search | Site Map | Help

Australian Securities and Investments Commission

• Notes to the Financial Statements

Section 3: Budgeted Financial Statements

The budgeted financial statements will form the basis of the financial statements that will appear in the Australian Securities and Investments Commission's 2000-01 Annual Report and form the basis for the input into the Whole of Government Accounts. The financial statements should be read in conjunction with the accompanying notes.

The budgeted financial statements have been prepared in accordance with the GST accounting guidelines of the Urgent Issues Group (UIG) of the Australian Accounting Research Foundation. The UIG consensus requires that expenses and assets be accounted for net of recoverable GST, revenues be accounted for net of GST payable and that cash flows and accounts payable and receivable be reported gross. Appropriations are thus net of recoverable GST amounts.

Budget Statement of Revenues and Expenses (Budget Operating Statement)

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

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

This statement shows the financial position of ASIC. It enables decision makers to track the management of ASIC's assets and liabilities.

Budget Cash Flow Statement

This statement identifies expected cash flows from operating activities, investing activities and financing activities.

Capital Budget Statement

This statement shows all proposed capital expenditure funded through the Budget as appropriations or from internal sources.

Non-financial Assets - Summary of Movement

This statement shows the movement in ASIC's non-financial assets over the Budget year 2000-01.

Table 3.1: Agency Budget Statement of Revenues and Expenses
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating revenue
Revenues from Government	132,381	130,111	133,943	133,670	133,795
Sale of goods and services	4,085	3,275	3,275	3,275	3,275
Interest	1,500	1,400	1,400	1,400	1,400
Net gains from sales of assets	100	100	100	100	100
Total operating revenues (before abnormal items)	138,066	134,886	138,718	138,445	138,570
Operating expenses
Employees	81,438	83,164	77,454	76,874	77,080
Suppliers	53,023	49,095	54,450	55,326	56,043
Depreciation and amortisation	7,831	7,246	6,464	5,895	5,097
Write-down of assets	1,554	350	350	350	350
Interest	225	-	-	-	-
Total operating expenses	144,071	139,855	138,718	138,445	138,570
Operating surplus or deficit before abnormal and extraordinary items	-6,005	-4,969	-	-	-
Abnormal and extraordinary items	-	-	-	-	-
Operating surplus or deficit after abnormal and extraordinary items and CUC	-6,005	-4,969	-	-	-

Table 3.2: Agency Budget Statement of Assets and Liabilities
(as at 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Assets
Financial assets
Cash	6,528	1,575	6,458	11,001	14,725
Receivables	1,784	1,784	1,783	1,784	1,784
Total financial assets	8,312	3,359	8,241	12,785	16,509
Non-financial assets
Land and buildings	5,700	4,956	4,282	3,608	2,934
Infrastructure, plant and equipment	12,069	10,407	7,457	4,419	1,775
Intangibles	2,526	1,465	404	-	-
Other	1,939	1,844	1,803	1,782	1,781
Total non-financial assets	22,234	18,672	13,946	9,809	6,490
Total assets	30,546	22,031	22,187	22,594	22,999
Liabilities
Debt
Loans	2,772	-	-	-	-
Leases	8,060	6,511	5,666	5,095	4,523
Total debt	10,832	6,511	5,666	5,095	4,523
Provisions and payables
Employees	22,582	23,582	24,583	25,561	26,538
Suppliers	1,259	1,259	1,259	1,259	1,259
Other	225	-	-	-	-
Total provisions and payables	24,066	24,841	25,842	26,820	27,797
Total liabilities	34,898	31,352	31,508	31,915	32,320
Equity
Reserves	325	325	325	325	325
Accumulated surpluses or deficits	-4,677	-9,646	-9,646	-9,646	-9,646
Total equity	-4,352	-9,321	-9,321	-9,321	-9,321
Current liabilities	16,751	15,049	15,124	15,319	15,514
Non-current liabilities	18,147	16,303	16,384	16,596	16,806
Current assets	10,251	5,203	10,044	14,567	18,290
Non-current assets	20,295	16,828	12,143	8,027	4,709

Table 3.3: Agency Budget Cash Flow Statement
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating activities
Cash received
Appropriations for outputs	132,381	130,111	133,943	133,670	133,795
Sales of goods and services	3,300	3,210	3,151	2,716	2,716
Interest	1,500	1,400	1,400	1,400	1,400
Total cash received	137,181	134,721	138,494	137,786	137,911
Cash used
Employees	80,042	82,098	76,387	75,398	75,602
Suppliers	53,344	50,775	55,195	55,816	56,556
Total cash used	133,386	132,873	131,582	131,214	132,158
Net cash from operating activities	3,795	1,848	6,912	6,572	5,753
Investing activities
Cash received
Proceeds from sales of property, plant and equipment	125	125	125	125	125
Total cash received	125	125	125	125	125
Cash used
Purchase of property, plant and equipment	4,144	4,154	2,154	2,154	2,154
Total cash received	4,144	4,154	2,154	2,154	2,154
Cash used
Repayments of debt	2,050	2,772	-	-	-
Total cash used	2,050	2,772	-	-	-
Net cash from financing activities	-2,050	-2,772	-	-	-
Net increase in cash held	-2,274	-4,953	4,883	4,543	3,724
Cash at the beginning of the reporting period	8,802	6,528	1,575	6,458	11,001
Cash at the end of the reporting period	6,528	1,575	6,458	11,001	14,725

Table 3.4: Agency Capital Budget Statement
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Funded by capital appropriations	-	-	-	-	-
Funded internally by agency resources	4,144	4,154	2,154	2,154	2,154

Table 3.5: Agency Non-financial Assets - Summary of Movement

	Land $'000	Buildings $'000	Total Land and Buildings $'000	Other Infrastructure, Plant and Equipment $'000	Total Infrastructure, Plant and Equipment $'000	Intangibles $'000	Total $'000
Gross value
As at 1 July 2000 (opening)	30	7,937	7,967	35,735	35,735	5,304	49,006
Additions	-	219	219	3,935	3,935	-	4,154
Disposals	-	-	-	-2,300	-2,300	-	-2,300
Other movements	-	-	-	-	-	-	-
As at 30 June 2001 (closing)	30	8,156	8,186	37,370	37,370	5,304	50,860
Accumulated depreciation
As at 1 July 2000 (opening)	-	2,267	2,267	23,666	23,666	2,778	28,711
Disposals	-	-	-	-1,925	-1,925	-	-1,925
Charge for the reporting period	-	963	963	5,222	5,222	1,061	7,246
Other movements	-	-	-	-	-	-	-
As at 30 June 2001 (closing)	-	3,230	3,230	26,963	26,963	3,839	34,032
Net book value as at 30 June 2001 (Closing book value)	30	4,926	4,956	10,407	10,407	1,465	16,828
Net book value as at 1 July 2000 (Opening book value)	30	5,670	5,700	12,069	12,069	2,526	20,295

Total additions

Self funded	-	219	219	3,935	3,935	-	4,154
Appropriations
Total	-	219	219	3,935	3,935	-	4,154

Table 3.6: Statement of Administered Revenues and Expenses
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating revenues
Non-taxation
Revenues from Government	-	18,025	18,025	18,025	16,025
Other sources of non-taxation revenues	344,944	371,044	376,250	381,535	385,843
Total non-taxation	344,944	389,069	394,275	399,560	401,868
Total operating revenues	344,944	389,069	394,275	399,560	401,868
Operating expenses
Other	6,000	23,025	22,025	22,025	19,025
Total operating expenses	6,000	23,025	22,025	22,025	19,025
Abnormal/extraordinary items	-	-	-	-	-
Net contribution or cost to the budget outcome	338,944	366,044	372,250	377,535	382,843
Transfers to the official public account	-338,355	-373,044	-374,401	-379,658	-383,966
Account remitted from administered revenues	-	-	-	-	-
Net surplus or deficit	589	-7,000	-2,151	-2,123	-1,123

Table 3.7: Statement of Administered Assets and Liabilities
(as at 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Assets
Financial assets
Cash	2,000	2,000	1,000	1,000	1,000
Receivables	18,764	66,160	69,484	71,836	70,713
Accrued revenues	8,142	-	-	-	-
Total financial assets	28,906	68,160	70,484	72,836	71,713
Total assets	28,906	68,160	70,484	72,836	71,713
Liabilities
Provisions and payables
Other	1,420	47,674	52,149	56,624	56,624
Total provisions and payables	1,420	47,674	52,149	56,624	56,624
Total liabilities	1,420	47,674	52,149	56,624	56,624
Equity
Accumulated surplus or deficits	27,486	20,486	18,335	16,212	15,089
Total equity	27,486	20,486	18,335	16,212	15,089
Current liabilities	1,420	15,296	16,639	18,833	18,833
Non-current liabilities	-	32,378	35,510	37,791	37,791
Current assets	28,906	35,782	34,974	35,045	33,922
Non-current assets	-	32,378	35,510	37,791	37,791

Table 3.8: Administered Cash Flow Statement
(for the period ended 30 June)

	Estimated Actual 1999-00 $'000	Budget Estimate 2000-01 $'000	Forward Estimate 2001-02 $'000	Forward Estimate 2002-03 $'000	Forward Estimate 2003-04 $'000
Operating activities
Cash received
Other taxes, fees and fines	332,314	378,044	377,401	383,658	386,966
Appropriations	-	18,025	18,025	18,025	16,025
Total cash received	332,314	396,069	395,426	401,683	402,991
Cash used
Cash to official public account	338,355	373,044	374,401	379,658	383,966
Other	-	23,025	22,025	22,025	19,025
Total cash used	338,355	396,069	396,426	401,683	402,991
Net cash from operating activities	-6,041	-	-1,000	-	-
Total cash used	-	-	-	-	-
Net cash from investing activities	-	-	-	-	-
Financing activities
Net increase in cash held	-6,041	-	-1,000	-	-
Cash at beginning of reporting period	8,041	2,000	2,000	1,000	1,000
Cash at end of reporting period	2,000	2,000	1,000	1,000	1,000

Notes to the Financial Statements

Agency

Budget Statement of Revenues and Expenses (Budgeted Operating Statement)

Operating Revenue

Revenues from Government

The amount appropriated in 2000-01 is lower than in 1999-2000. This is largely due to cost reductions from Government tax reforms, a reduction in Corporations Law Economic Reform Project (CLERP) 7 funding and other Government efficiency measures. There is an increase in the appropriation in 2001-02 reflecting an increase in CLERP 7 funding.

Operating Expenses

Employee Expenses

There is currently a reduction in employee costs after 2000-01 because of the discontinuation of funding for the Managed Investments Scheme. The continuation of this funding is to be the subject of a parliamentary review during 2000-01.

Suppliers Expenses

These expenses decline in 2000-01 in direct proportion to the drop in funding and due to the impact of anticipated savings from the introduction of the GST and the abolition of wholesale sales tax. There is a significant increase in 2001-02 to reflect expenditure arising from the Government's IT Outsourcing initiative.

Depreciation

There is a downward trend in depreciation expense due to the assumed outsourcing of depreciable IT assets.

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

Liabilities

Leases

This balance represents liabilities arising out of lease incentives and surplus space on non-cancellable leases.

Lease incentives are recognised as a liability and are reduced by allocating lease payments between rental expense in the operating statement and the deferred lease incentive liability over the term of the lease.

Surplus space on non-cancellable leases is recognised as a liability after netting probable sub-lease revenue. The liability is reduced by allocating the difference between the operating lease rentals and the probable sub-lease revenue over the term of the lease.

Employee Provisions

The liability for employee entitlements represents accrued salaries, annual leave and long service leave.

Assets

Infrastructure, Plant and Equipment

The net book value is declining as a result of the proposed outsourcing of depreciable IT assets.

Administered

Budget Statement of Revenues and Expenses (Budgeted Operating Statement)

Operating Revenue

Other sources of non taxation revenues

This balance represents Corporations Law fees and charges and unclaimed moneys relating to banks, and non-banking institutions including credit unions and building societies.

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

Assets

Receivables

This balance represents amounts receivable for Corporations Law fees and charges and unclaimed moneys relating to banks and non-banking institutions including credit unions and building societies. For Corporations Law, the amounts are receivable from companies whereas in the case of unclaimed moneys, the amounts are receivable from the Government via a special appropriation. The balance is higher in 2000-01 than 1999-2000 because the transfer of the unclaimed banking moneys function from Treasury and the States and Territories to ASIC takes effect from 1 July 2000.

Liabilities

Other payables

This balance represents amounts payable for Corporations Law fees and charges and unclaimed moneys relating to banks and non-banking institutions including credit unions and building societies. For Corporations Law, the amounts are payable to the Government whereas in the case of unclaimed moneys, the amounts are payable to banks and non-banking institutions. The balance is higher in 2000-01 than 1999-2000 because the transfer of the unclaimed banking moneys function from Treasury and the States and Territories to ASIC takes effect from 1 July 2000.

Appendix 1

Estimates of Expenses from Special Appropriations

	Estimated Expense 1999-00 $'000	Estimated Expense 2000-01 $'000
Banking Act 1959	-	18,025
Total estimated expenses	-	18,025