Australian Securities and Investments Commission
Section 1: Agency overview and resources
1.1 Strategic direction
There has been no significant change to the strategic direction for the Australian Securities and Investments Commission (ASIC) from that included in the Portfolio Budget Statements 2008‑09 (pages 127‑128).
ASIC is seeking an additional $11.2 million in departmental outputs through Appropriation Bill (No. 3) 2008-09. This relates to: an additional $1.6 million for the Council of Australian Governments – implementing a national approach to the regulation of consumer credit measure; $10.0 million for the global financial crisis – additional funding for regulators and the Treasury measure; $1.0 million for the Australian Business Number and Business Name Registration project; and offset by a reduction of $1.4 million to be transferred to the Department of the Treasury as part of a reallocation of funds for Standard Business Reporting. The reallocation will have no net impact on the Budget.
ASIC is also seeking an additional $3.5 million in equity injections through Appropriation Bill (No. 4) 2008-09. This relates to: an additional $0.8 million for the Council of Australian Governments – implementing a national approach to the regulation of consumer credit measure; $2.9 million for the Australian Business Number and Business Name Registration project; and offset by a reduction of $0.2 million to be transferred to the Department of the Treasury as part of a reallocation of funds for Standard Business Reporting. The reallocation will have no net impact on the Budget.
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, special appropriations and special accounts.
Table 1.1: Australian Securities and Investments Commission resource
statement — additional estimates for 2008‑09 as at Additional Estimates
December 2008
1. Appropriation Bill (No. 3) 2008‑09.
2. Appropriation Bill (No. 4) 2008‑09.
1.3 Agency measures table
Table 1.2 summarises new Government measures taken since the 2008‑09 Budget.
Table 1.2: Agency measures since Budget
Note: Details of these measures appear in the Mid-Year Economic and Fiscal Outlook 2008-09 on pages 184 and 185.
1.4 Additional estimates and variations
Table 1.3 details the additional estimates and variations resulting from new measures since the 2008‑09 Budget in Appropriation Bills No. 3 and No. 4. Table 1.4 details additional estimates or variations from other variations.
Table 1.3: Additional estimates and variations to outcomes 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 ASIC 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 ASIC from that included in the Portfolio Budget Statements 2008‑09 (pages 132–139).
Section 3: Explanatory tables and budgeted financial statements
3.1 Explanatory tables
3.1.1 Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by ASIC. The corresponding table in the Portfolio Budget Statements 2008-09 is Table 3.1.3.
Table 3.1.1: Estimates of special account flows
3.1.2 Estimates of variations to Average Staffing Level
Changes in Average Staffing Level (ASL) are presented in the Portfolio Additional Estimates Statements at the whole of agency level to demonstrate any movements since Budget.
Table 3.1.2: Average Staffing Level
3.2 Budgeted financial statements
3.2.1 Analysis of budgeted financial statements
Departmental financial statements
Budgeted departmental income statement
ASIC is currently budgeting for a break‑even operating result for 2008‑09 and for the remainder of the forward estimates.
Revenues from government for 2008‑09 are $310.1 million, which is an increase of $11.2 million from the Portfolio Budget Statements 2008-09. This is comprised of $1.6 million for the Council of Australian Governments — implementing a national approach to the regulation of consumer credit measure; $10.0 million for the global financial crisis — additional funding for regulators and the Treasury measure; $1.0 million for the Australian Business Number and Business Name Registration project, less $1.4 million to be transferred to the Department of the Treasury as part of a reallocation of funds for Standard Business Reporting.
Total revenues and expenses are estimated to be $317.5 million for 2008‑09. The expenditure will be used to fund activities that contribute towards achieving ASIC's output objectives.
Budgeted departmental balance sheet
This statement shows the financial position of ASIC. It helps decision makers to track the management of ASIC's assets and liabilities.
ASIC's budgeted equity (or net asset position) for 2008‑09 is $93.4 million. This includes capital funding of $17.4 million received in 2008‑09.
Budgeted departmental statement of cash flows
The budgeted 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.
Departmental statement of changes in equity — summary of movement
This statement shows the changes in the equity position of ASIC. It helps decision makers to track the management of ASIC's equity.
Schedule of administered activity
Schedule of budgeted income and expenses administered on behalf of government
The schedule of budgeted income and expenses administered on behalf of government shows the revenue and expenses associated with the collection of revenue under the Corporations Act 2001 and ASIC's responsibilities in administering unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Other non‑taxation revenue represents the amount of fees and charges budgeted to be levied under the Corporations Act 2001 and estimated receipts of unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Expenses represent budgeted payments of unclaimed moneys, refund of overpaid fees and charges levied under the Corporations Act 2001, bad debt expense and payments to registered insolvency practitioners to investigate breaches of directors' duties and fraudulent conduct.
Schedule of budgeted assets and liabilities administered on behalf of government
The amount shown for receivables in 2008‑09 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act 2001 remaining unpaid at 30 June.
The amounts shown in other payables for 2008‑09 and the forward estimates represent the estimated amount of refunds relating to the over payments of annual review and other fees under the Corporations Act 2001.
Schedule of budgeted administered cash flows
Budgeted administered cash flows, provide 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.
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 an 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
Basis of accounting
The budgeted financial statements have been prepared on an Australian Accounting Standards basis.
Budgeted agency financial statements
Under the Australian Government's accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (departmental transactions) are separately budgeted for and reported on from transactions that 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.
Departmental items are those assets, liabilities, revenues and expenses in relation to an agency or authority that are controlled by the agency. Departmental 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 or authority on behalf of the Australian Government according to set government directions. Administered expenses and administered revenues include fees, fines and expenses that have been earmarked for a specific purpose by the government.
Appropriations in the accrual budgeting framework
Under the Australian Government's accrual budgeting framework, separate annual appropriations are provided for:
departmental price of outputs appropriations representing the Australian Government's purchase of outputs from agencies;
departmental capital appropriations for investments by the Australian Government for either additional equity or loans in agencies;
administered expense appropriations for the estimated administered expenses relating to an existing outcome or a new outcome; and
administered capital appropriations for increases in administered equity through funding non‑expense administered payments.
Departmental
Asset valuation
ASIC has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets fair values as at the reporting date.
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.
Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non‑current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.
Where a non‑current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are charged to the income statement on a basis that is representative of the pattern of benefits derived from the lease assets.
Depreciation and amortisation
Computer equipment is depreciated using the declining‑balance method whilst, for all other plant and equipment, the straight‑line method of depreciation is applied. Leasehold improvements are amortised on a straight‑line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.
Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised.
Receivables
A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year‑end.
Bad debts are written off during the year in which they are identified.
Provisions and payables
Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making‑good leased premises and lease incentives. No provision for sick leave is required as all sick leave is non‑vesting.
Administered
Schedule of budgeted revenues and expenses administered on behalf of government
Revenues
Non‑taxation revenues are predominately comprised of Corporations Act 2001 fees and charges and collections of unclaimed moneys under the Banking Act 1959 and the Life Insurance Act 1995.
Write down and impairment of assets
Write down and impairment of assets represents waivers and write‑offs of Corporations Law fees.
Schedule of budgeted assets and liabilities administered on behalf of government
Financial assets
The financial assets include Corporations Law debt invoiced and still outstanding at year‑end.
Schedule of budgeted administered cash flows
All cash collected by ASIC for Corporations Law revenue, is transferred to the Official Public Account at the close of business each day. Cash collected for Banking Act 1959 unclaimed moneys and Life Insurance Act 1995 unclaimed moneys is transferred to the Official Public Account when received.
If www.budget.gov.au responds slowly or you are having trouble downloading a document, try one of the Budget Website Mirrors
Note: Where possible, Budget documents are available in HTML and for downloading in Portable Document Format(PDF). If you require further information on any of the tables or charts on this website, please contact Treasury.
