Section 5: Budgeted financial statements
5.1 Analysis of budgeted financial statements
Departmental
The Treasury is budgeting towards a breakeven operating result for 2007-08.
The Treasury will receive slightly more revenue in 2007-08 than in 2006-07. The increase in revenue reflects variations to previous and new Budget measures, and other minor variations.
The Treasury has a sound financial position and currently has sufficient cash to fund provisions and payables, and asset replacement, as they fall due.
Administered
For constitutional reasons the goods and services tax (GST) is levied by the Australian Government, and can therefore be technically considered Australian Government revenue under the reporting standards. The clear policy intent of the Intergovernmental Agreement on the Reform of Commonwealth-State Financial Relations, however, is that it is a State tax collected by the Australian Government in an agency capacity. Accordingly, GST related items recorded in the Treasury’s administered budget statements, fully offset GST related items recorded by the Australian Taxation Office so that at a consolidated level the GST is not recorded by the Australian Government.
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)
Table 5.8: Schedule of budgeted assets and liabilities administered on behalf
of government (as at 30 June)
Table 5.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Table 5.10: Schedule of administered capital budget
Table 5.11: Schedule of administered property, plant, equipment and intangibles — summary of movement
(Budget Year 2007-08)
This table is not applicable to the Treasury.
5.3 Notes to the financial statements
Basis of accounting
Treasury’s budgeted statements have been prepared on an accrual basis in accordance with:
- Australian Government’s financial budgeting and reporting framework;
- Australian Accounting Standards (AAS), being the Australian Equivalent to International Reporting Standards (AEIFRS); and
- Consensus Views of the Urgent Issues Group.
The budgeted income statement and balance sheet have been prepared in accordance with the historical cost convention, except certain assets, which are at valuation.
Departmental and administered financial statements
Under the Australian Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that departments control (departmental transactions) are separately budgeted for and reported on from transactions departments do not have control over (administered transactions). This ensures that departments are only held accountable for the transactions over which they have control.
Departmental assets, liabilities, revenues and expenses are those items that are controlled by the department. Departmental expenses include employee and supplier expenses and other administrative costs, which are incurred by the department in providing its goods and services.
Administered items are revenues, expenses, assets or liabilities which are managed by the department on behalf of the Australian Government according to set Government directions. Administered expenses include subsidies, grants, and personal benefit payments and administered revenues include taxes, fees, fines and excises.