The Australian Bureau of Statistics
Section 3: Budgeted financial statements
Agency Financial Statements
Budgeted agency statement of financial performance
This statement provides a picture of the expected financial results for the Australian Bureau of Statistics (ABS) by identifying full accrual expenses and revenues, which highlight whether the ABS is operating at a sustainable level.
The budgeted financial statements have been prepared in accordance with the Goods and Services Tax (GST) accounting guidelines of the Urgent Issues Group (UIG) of the Australian Accounting Standards Board. 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.
Budgeted agency statement of financial position
This statement shows the financial position of the ABS. It enables decision-makers to track the management of the ABS's assets and liabilities.
Budgeted agency statement of cash flows
Budgeted cash flows, as reflected in the statement of cash flows, provides 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.
Agency capital budget statement
Shows all planned agency capital expenditure (capital expenditure on non-financial assets), whether funded either through capital appropriations for additional equity or borrowings, or funds from internal sources.
Agency non-financial assets - summary of movement
This statement shows budgeted acquisitions and disposals of non-financial assets during the Budget year.
Table 3.1: Budgeted Agency Statement of Financial
Performance
for the period ended 30 June
(1) K1 - shows the link back to Table 1.1.
Table 3.2: Budgeted Agency Statement of Financial
Position
as at 30 June
Table 3.3: Budgeted Agency Statement of Cash
Flows
for the period ended 30 June
Table 3.4: Agency Capital Budget Statement
Table 3.5: Agency Non-financial Assets - Summary of Movement (Budget year 2002-03)
Notes to the Financial Statements
Basis of accounting
The agency budget statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets, which are at valuation.
Agency and administered financial statements
Under the Commonwealth's accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (agency transactions) are budgeted and reported separately 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.
Agency assets, liabilities, revenues and expenses in relation to an agency are those that are controlled by the agency. Agency 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 on behalf of the Government according to set Government directions. The ABS does not currently have any administered expenses or revenues.
Budgeted agency statement of financial performance
Revenues
Appropriations in the accrual budgeting framework
Under the Commonwealth's accrual budgeting framework, ABS is appropriated only for the price of its outputs, which represent the Government's purchase of these agreed outputs.
Revenue from government
The decrease in appropriation in 2002-03 is due to additional costs associated with conducting the census during the last financial year.
Other
This category includes resources received free of charge.
Expenses
Employees
This includes wages and salaries, superannuation, provision for annual leave and long service leave, and workers compensation. Employee entitlements were based on leave patterns of ABS employees. Accrued salaries and employer superannuation contributions were based on daily salary expense and the number of days owing at 30 June in each budget year.
Depreciation
Depreciable assets are written off over their estimated useful lives. Depreciation is calculated using the straight-line method, which is consistent with the consumption of the service potential of the depreciable assets of the ABS.
Capital use charge
A capital use charge is levied on agencies to reflect the cost of the Commonwealth's investment in those entities. It is levied on the closing agency net assets (equity) at a rate of 11 per cent for the year 2002-03.
Funding for the capital use charge is included in the agency's departmental price of output's appropriation. The capital use charge is accounted for as a `below operating result line' dividend payment.
Budgeted agency statement of financial position
Non-financial assets
Intangibles
These include software developed in-house.
Inventory
The level of inventory holdings has been reduced substantially to reflect the effects of the implementation of more electronic distribution methods and a change in the way holdings have been valued.
Other
This category includes prepayments.
Debt
Loan
The ABS received a loan of $13.2 million in 2001-02. This loan was used to partially fund the fitout of the ABS's new national office accommodation. Loan repayments will be made over a ten year period and are being met by the ABS from within its ongoing operational funding levels.
Leases
These include lease incentives in the form of a rent-free period and/or a contribution to fitout costs. Lease incentives are recognised as a liability, which is reduced by allocating lease rental payments between interest, rental expense and reduction of the liability.
Provisions and payables
Employees
The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting.
The non-current portion of the liability for long-service leave is recognised and measured at the present value of the estimated future cash flows in respect of all employees.
Other
This category includes unearned revenue.
Asset valuation
Commonwealth agencies and authorities are required to value property, plant and equipment and other infrastructure assets using the deprival method of valuation. This essentially reflects the current cost the entity would face in replacing that asset.
Capital budget statement
This shows proposed capital expenditure for the ongoing replacement programme of non-financial assets. This asset replacement programme is funded internally.
Purchase of non-financial assets
These include:
- 2001-02 the purchase of intangibles of $16.7 million, infrastructure, plant and equipment of $24.2 million;
- 2002-03 intangibles of $16.1 million, infrastructure, plant and equipment of $8.9 million;
- 2003-04 intangibles of $15.9 million, infrastructure, plant and equipment of $10.5 million;
- 2004-05 intangibles of $16.8 million, infrastructure, plant and equipment of $17.7 million, which includes fitout to the New South Wales and Western Australian offices of $8.4 million.
- 2005-06 intangibles of $16.8 million, infrastructure, plant and equipment of $18.6 million.
