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) 2007-08 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 income statement
The ABS is budgeting to break-even in 2007-08.
Total agency revenue is estimated to be $320.3 million. This is a decrease of $115.5 million from the 2006-07 estimated actual. The decrease in revenue is primarily attributed to decreases in appropriation related to the 2006 Census, as part of the normal Census cycle.
Total expenses are estimated to be $320.3 million, a decrease of $117.0 million from the 2006-07 estimated actual. The decrease in expenses can be attributed directly to the decrease in employee and suppliers expenses associated the 2006 Census, as part of the normal Census cycle.
Budgeted departmental balance sheet
In 2007-08 the ABS’s total equity will increase by $0.6 million. This increase is attributable to a capital injection associated with the 2005-06 Official Statistics Upgrade measure.
The expected outlook for the ABS indicates that the asset base and liabilities of the organisation will remain stable over the forward years.
Cash levels over the forward years are consistent with ABS’ working capital requirements.
5.2 Budgeted financial statements tables
Table 5.1: Budgeted departmental income statement
(for the period ended 30 June)
Table 5.2: Budgeted departmental balance sheet (as at 30 June)
Table 5.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Table 5.4: Departmental statement of changes in equity — summary of movement
(Budget year 2007-08)
Table 5.5: Departmental capital budget statement
Table 5.6: Departmental property, plant, equipment and intangibles — summary of movement (Budget year 2007-08)
Table 5.7: Schedule of budgeted income and expenses administered on behalf of government
(for the period ended 30 June)
The ABS does not have any administered items.
Table 5.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)
The ABS does not have any administered items.
Table 5.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
The ABS does not have any administered items.
Table 5.10: Schedule of administered capital budget
The ABS does not have any administered items.
Table 5.11: Schedule of administered property, plant, equipment and intangibles — summary of movement
(Budget year 2007-08)
The ABS does not have any administered items.
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 (departmental 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 income statement
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 balance sheet
Non-financial assets
Intangibles
These include software developed in-house.
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.
Other
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 rental expense and reduction of the liability. Rent free lease periods are taken up as a liability at the commencement of the lease and amortised over the lease term. 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.
Departmental 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:
- 2007-08 intangibles of $21.3 million, infrastructure, plant and equipment of $14.5 million, which includes fitout to the Australian Capital Territory, Tasmania, Northern Territory, New South Wales, Western Australian and Victorian offices of $6.6 million;
- 2008-09 intangibles of $21.5 million, infrastructure, plant and equipment of $7.4 million, which includes fitout to the Northern Territory office of $0.6 million;
- 2009-10 intangibles of $22.2 million, infrastructure, plant and equipment of $7.9 million; and
- 2010-11 intangibles of $24.5 million, infrastructure, plant and equipment of $19.3 million, which includes fitout to the New South Wales office and the Census Processing Centre of $8.3 million.