Section 5: Budgeted financial statements
5.1: Analysis of budgeted financial statements
The budgeted financial statements will form the basis of the financial statements that will appear in the Australian Bureau of Statistics (ABS) 2004-05 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 contain estimates prepared in accordance with the requirements of the Australian Government’s financial budgeting and reporting framework, including the principles of Australian Accounting Standards and Statements of Accounting Concepts, as well as specific guidelines issued by the Department of Finance and Administration.
Budgeted departmental statement of financial performance
The ABS is budgeting for a $1.4 million operating surplus in 2005-06.
Total agency revenue is estimated to be $339.3 million. This is an increase of $51.0 million from the 2004-05 estimated actual.
This rise in revenue is primarily attributed to an increase in appropriations as a result of:
- an increase specifically related to the 2006 Census, as part of the normal Census cycle.
Total expenses are estimated to be $337.8 million, an increase of $49.6 million from the 2004-05 estimated actual.
This increase in expenses can be attributed directly to the increase in employee and suppliers expenses associated with the preparations for the 2006 Census, as part of the normal Census cycle.
Budgeted departmental statement of financial position
In 2005-06 the ABS’s total equity will increase by $0.994 million. This change is related to the capital injection relating to the Official Statistics Upgrade.
The expected outlook for the ABS indicates that the asset base of the organisation will remain stable, with liabilities for employee provisions expected to increase in the out years. This increase is expected following the increase in staff numbers for the 2006 Census cycle.
The build-up of cash in the out years is occurring due to reduced spending on a restructured capital programme. It is expected that the cash build-up will be utilised for additional capital purchases in the long term.
5.2: Budgeted financial statements tables
Table 5.1: Budgeted departmental statement
of financial performance
for the period ended 30 June
Table 5.2: Budgeted departmental statement
of financial position
as at 30 June
* ‘Equity’ is the residual interest in assets after deduction of liabilities.
Table 5.3: Budgeted departmental statement
of cash flows
for the period ended 30 June
Table 5.4: Departmental capital budget statement
Table 5.5: Departmental property, plant, equipment and intangibles — summary of movement (Budget year 2005‑06)
Table 5.6: Schedule of budgeted revenues and expenses administered on behalf of Government for the period ended 30 June
This table is not applicable to the ABS.
Table 5.7: Schedule of budgeted assets and liabilities administered on behalf of Government as at 30 June
This table is not applicable to the ABS.
Table 5.8: Schedule of budgeted administered
cash flows
for the period ended 30 June
This table is not applicable to the ABS.
Table 5.9: Schedule of administered capital budget
This table is not applicable to the ABS.
Table 5.10: Schedule of property, plant, equipment and intangibles — summary of movement (Budget Year 2005‑06)
This table is not applicable to the ABS.
5.3: 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.
Budgeted departmental financial statements
Under the Australian Government’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.
Budgeted departmental statement of financial performance
Revenues
Appropriations in the accrual budgeting framework
Under the Australian Government’s accrual budgeting framework, the ABS is appropriated only for the price of its outputs, which represent the Australian Government’s purchase of these agreed outputs.
Revenue from other sources
Revenue is derived from the sale of ABS publications and census data, as well as the provision of user-funded surveys and consultancy work. The amount of revenue earned in any one year is dependent upon the demand for such products and services by government agencies, business and the community.
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 are based on leave patterns of ABS employees. Accrued salaries and employer superannuation contributions are based on daily salary expense and the number of days owing at 30 June in each budget year.
Depreciation and amortisation
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.
Budgeted departmental statement of financial position
Non-financial assets
Intangibles
These include software developed in house.
Inventory
ABS inventory includes publications of statistics both in print and on CD. These levels are expected to remain stable in the out years.
Other
This category includes prepayments.
Debt
Loans
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. Rent free lease periods are taken up as a liability during the rent-free period and amortised over the remaining term of the lease. The full amount of the lease is therefore allocated evenly over the total term of the lease.
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.
Asset valuation
Australian Government agencies and authorities are required to value property, plant and equipment and other infrastructure assets using the fair value 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:
- 2005-06 intangibles of $16.1 million, infrastructure, plant and equipment of $18.2 million, which includes fitout to the Queensland, Victorian and Census offices of $5.7 million;
- 2006-07 intangibles of $15.4 million, infrastructure, plant and equipment of $10.3 million, which includes fitout to the Australian Capital Territory, South Australian and Tasmanian offices of $4.4 million; and
- 2007-08 intangibles of $16.1 million, infrastructure, plant and equipment of $7.6 million, which includes fitout to the Western Australian and Census offices of $1.4 million.
- 2008-09 intangibles of $16.3 million, infrastructure, plant and equipment of $6.3 million, which includes fitout to the Northern Territory office of $1.2 million.