Australian Competition and Consumer Commission
Section 1: Agency overview and resources
1.1 Strategic direction
There has been no significant change to the strategic direction of the Australian Competition and Consumer Commission (ACCC) from that included in the Portfolio Budget Statements 2008-09 (pages 65‑66).
The ACCC is seeking an additional $5.0 million in equity injections through Appropriation Bill (No. 4) 2008-09 for the Litigation Contingency Fund.
The ACCC is also reducing appropriations by $4.0 million as legislation to provide for criminal sanctions for price fixing and market sharing (cartel conduct) has not been enacted.
1.2 Agency resource statement
Table 1.1 outlines the total resourcing available from all sources for the 2008‑09 Budget year, including variations through Appropriation Bills No. 3 and No. 4 and special accounts.
Table 1.1: Australian Competition and Consumer Commission resource
statement — additional estimates for 2008‑09 as at Additional Estimates
December 2008
1. Appropriation Bill (No. 4) 2008‑09.
Third party drawdowns from and on behalf of other agencies
Note: The ACCC provides financial services to the NCC and has drawdown access to manage the NCC's finances.
1.3 Agency measures table
Table 1.2: Agency measures since Budget
The ACCC does not have any measures since the 2008-09 Budget.
1.4 Additional estimates and variations
Table 1.3 details the additional estimates and variations resulting from new measures since the 2008-09 Budget. Table 1.4 details additional estimates or variations from other variations.
Table 1.3: Additional estimates and variations to outcomes from measures
since 2008‑09 Budget
The ACCC does not have any additional estimates from measures since the 2008-09 Budget.
Table 1.4: Additional estimates and variations to outcomes from other variations
1.5 Breakdown of additional estimates by appropriation bill
The following tables detail the additional estimates sought for the ACCC through Appropriation Bills No. 3 and No. 4.
Table 1.5: Appropriation Bill (No. 3) 2008‑09
Table 1.6: Appropriation Bill (No. 4) 2008‑09
Section 2 Revisions to agency outcomes and planned performance
2.1 Outcomes and performance information
There has been no change to outcomes and performance information for the ACCC from that included in the Portfolio Budget Statements 2008‑09 (pages 69‑74).
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents budgeted financial statements which provide a snapshot of the ACCC's finances for the budget year 2008‑09.
3.1 Explanatory tables
3.1.1 Estimates of special account flows
There has been no change to special account flows from that included in the Portfolio Budget Statements 2008-09 (page 76).
3.1.2 Estimates of variations to Average Staffing Level
There has been no change to the Average Staffing Level from that included in the Portfolio Budget Statements 2008‑09 (page 71).
3.2 Budgeted financial statements
3.2.1 Analysis of budgeted financial statements
An analysis of the ACCC's budgeted financial statements, as reflected in the budgeted departmental financial statements and administered schedules for 2008‑09, is provided below.
Departmental
Income statement
The ACCC is budgeting for a break even result for 2008‑09. The actual operating result for 2007‑08 was a $5.2 million deficit.
Operating revenues
Total revenue in 2008‑09 is estimated to be $135.8 million, an increase of $16.9 million from the 2007‑08 actual. The increase is primarily as a result of the net increase in funding from measures disclosed in the 2008‑09 Budget ($14.1 million) (details are provided in Table 1.2 of the Portfolio Budget Statements 2008-09) and measures disclosed in the 2006‑07 Budget for the Australian Energy Regulator (AER) in the 2008‑09 forward year.
Operating expenses
Total expenses in 2008‑09 are estimated to be $135.8 million. This is an increase of $11.7 million from the 2007‑08 actual. The increase is primarily due to the measures disclosed in the 2008‑09 Budget ($14.1 million) (details are provided in Table 1.2 of the Portfolio Budget Statements 2008-09), and the full year impact of initiatives funded in 2006‑07 for the AER and in 2007‑08 for Water Regulatory initiatives.
Balance sheet
The ACCC's budgeted net asset position of $42.6 million represents an increase of $6.3 million from the 2007‑08 actual. The increase is attributable to an equity injection associated with the Litigation Contingency Fund.
The total assets are expected to increase by $7.1 million to $77.7 million reflecting a projected increase in receivables and infrastructure, plant and equipment.
The ACCC's primary liability continues to be accrued employee leave entitlements of $16.9 million. The liability is expected to increase by approximately $0.8 million during 2008‑09.
3.2.2 Budgeted financial statements
Departmental financial statements
Table 3.2.1: Budgeted departmental income statement
(for the period ended 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.4: Departmental statement of changes in equity — summary of
movement (Budget 2008‑09)
Prepared on Australian Accounting Standards basis.
Schedule of administered activity
Table 3.2.5: Schedule of budgeted income and expenses administered on
behalf of government (for the period ended 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.6: Schedule of budgeted assets and liabilities administered on
behalf of government (as at 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.7: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Prepared on an Australian Accounting Standards basis.
Notes to the financial statements
Accounting policy
The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with:
- the Finance Minister's Orders;
- Australian Accounting Standards Board; and
- International Financial Reporting Standards.
Departmental and administered items
Agency assets, liabilities, revenues and expenses are those items that are controlled by the ACCC that are used by the ACCC in producing its outputs and include:
- computers, plant and equipment, and building fit out used in providing goods and services;
- liabilities for employee entitlements;
- revenue from appropriations or independent sources in payment for outputs; and
- employee, supplier and depreciation expenses incurred in providing agency outputs.
Administered items are those items incurred in providing programs that are controlled by the Government and managed, or oversighted, by the ACCC on behalf of the Government. Administered revenues include fees and fines.
Departmental revenue
Revenue from government represents the purchase of outputs from the ACCC by the government and is recognised to the extent that it has been received into the ACCC's bank account.
Revenue from other sources, representing sales from goods and services, is recognised at the time that it is imposed on customers.
Departmental expenses — employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
Departmental expenses — suppliers
Payments to suppliers for goods and services used in providing agency outputs.
Departmental expenses — depreciation and amortisation
Depreciable property, plant and equipment, buildings and intangible assets are written‑off to their estimated residual values over their estimated useful life, using the straight‑line calculation method.
Departmental assets — financial assets
The primary financial asset relates to receivables. Financial assets are used to fund the ACCC's capital program, employee entitlements, creditors and to provide working capital.
Departmental assets — non‑financial assets
These items represent future benefits that the ACCC will consume in producing outputs. The reported value represents the purchase paid less depreciation incurred to date in using the asset.
Departmental liabilities — provisions and payables
Provision has been made for the ACCC's liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave.
Provision has also been made for unpaid expenses as at balance date.
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