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Productivity 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 PC'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 financial statements are prepared consistent with GST accounting requirements, as outlined by 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 are 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 the PC by identifying full accrual expenses and revenues, which highlights whether the PC is operating at a sustainable level.

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

This statement shows the financial position of the PC. It enables decision makers to track the management of the PC'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 the PC'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	21,662	22,148	22,158	22,229	22,268
Sales of goods and services	60	208	215	223	230
Interest	25	67	87	109	128
Other	40	40	40	40	40
Total operating revenues	21,787	22,463	22,500	22,601	22,666
Operating expenses
Employees	15,972	15,950	16,040	16,140	16,240
Suppliers	5,900	5,747	5,694	5,721	5,753
Depreciation and amortisation	736	766	766	740	673
Total operating expenses	22,608	22,463	22,500	22,601	22,666
Operating surplus or (deficit) before abnormal and extraordinary items	-821	-	-	-	-
Operating surplus or (deficit) after abnormal and extraordinary items and CUC	-821	-	-	-	-

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	167	2,717	3,500	4,334	5,093
Receivables	1,598	15	15	15	15
Prepayments	130	130	130	130	130
Total financial assets	1,895	2,862	3,645	4,479	5,238
Non-financial assets
Land and buildings
Infrastructure, plant and equipment	2,354	1,943	1,603	1,186	777
Intangibles	253	160	67	-	-
Total non-financial assets	2,607	2,103	1,670	1,186	777
Total assets	4,502	4,965	5,315	5,665	6,015
Liabilities
Debt
Leases	40	30	20	10	-
Total debt	40	30	20	10	-
Provisions and payables
Employees	5,807	6,207	6,597	6,987	7,377
Suppliers	180	129	99	69	39
Total provisions and payables	5,987	6,336	6,696	7,056	7,416
Total liabilities	6,027	6,366	6,716	7,066	7,416
Equity
Capital	1,562	1,686	1,686	1,686	1,686
Reserves	96	96	96	96	96
Accumulated surplus or deficit	-3,183	-3,183	-3,183	-3,183	-3,183
Total equity	-1,525	-1,401	-1,401	-1,401	-1,401
Current liabilities	3,078	3,097	3,137	3,177	3,217
Non-current liabilities	2,949	3,269	3,579	3,889	4,199
Current assets	1,895	2,862	3,645	4,479	5,238
Non-current assets	2,607	2,103	1,670	1,186	777

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	21,271	21,896	21,835	21,983	22,014
Sales of goods and services	50	198	205	213	220
Interest	25	67	87	109	128
Total cash received	21,346	22,161	22,127	22,305	22,362
Cash used
Employees	15,301	15,550	15,650	15,750	15,850
Suppliers	5,900	5,747	5,694	5,721	5,753
Total cash used	21,201	21,297	21,344	21,471	21,603
Net cash from operating activities	145	864	783	834	759
Investing activities
Cash received
Proceeds from sales of property, plant and equipment	10	10	10	10	10
Other	391	252	323	246	254
Total cash received	401	262	333	256	264
Cash used
Purchase of property, plant and equipment	401	262	333	256	264
Total cash used	401	262	333	256	264
Net cash from investing activities
Financing activities
Cash received
Other	-	1,686	-	-	-
Total cash received	-	1,686	-	-	-
Net cash from financing activities	-	1,686	-	-	-
Net increase in cash held	145	2,550	783	834	759
Cash at the beginning of the reporting period	22	167	2,717	3,500	4,334
Cash at the end of the reporting period	167	2,717	3,500	4,334	5,093

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
Purchase of non-funded current assets
Funded by capital appropriations	-	-	-	-	-
Funded internally from other resources	401	262	333	256	264

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)				5,407	5,407	466	5,873
Additions	-	-	-	262	262	-	262
Disposals	-	-	-	-387	-387	-	-387
Other movements	-	-	-	-	-	-
As at 30 June 2001 (closing)	-	-	-	5,282	5,282	466	5,748
Accumulated depreciation	-	-	-	-	-	-
As at 1 July 2000 (opening)	-	-	-	3,053	3,053	213	3,266
Disposals	-	-	-	-387	-387	-	-387
Charge for the reporting period	-	-	-	673	673	93	766
Other movements	-	-	-
As at 30 June 2001 (closing)	-	-	-	3,339	3,339	306	3,645
Net book value as at 30 June 2001 (Closing book value)	-	-	-	1,943	1,943	160	2,103
Net book value as at 1 July 2000 (Opening book value)	-	-	-	2,354	2,354	253	2,607

Total additions

Self funded	-	-	-	262	262	-	262
Appropriations	-	-	-	-	-	-	-
Total	-	-	-	262	262	-	262

Notes to the Financial Statements

Basis of Accounting

These financial statements have been prepared on a full accrual basis with the Commission being funded accordingly from 2000-01 onwards.

The Budget Balance Sheet for 1999-2000 shows an amount carried forward from 1998-99 as both a Receivable and a Capital injection. The amount of $1.686 million, including interest, will be received and banked in 2000-01.

Non-financial assets consist mainly of Leasehold Improvements to the Commission's leased accommodation and are being depreciated over the period of the leases. As no major capital expenditure is being proposed during the current estimating period through to year 2003-04, the written down value is decreasing annually. Conversely the Commission's financial assets are increasing through the funding of depreciation and will be available when required for future improvements.

Performance against Outcomes and Outputs

Performance information is included earlier under Table 2.2.