Section 3: Explanatory tables and budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive snapshot of ACCC's finances for the budget year 2008‑09. It explains how budget plans are incorporated into the financial statements and provides further details of movements in administered funds, special accounts and government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Reconciliation of total available appropriation and outcomes
The Agency Resource Statement (Table 1.1) details the total available appropriation to the ACCC from all sources. For departmental operating appropriations (outputs) this includes carry‑forward amounts as well as amounts appropriated at budget. As the ACCC incurs and is funded for future liabilities, generally depreciation and employee entitlements, the total amount of departmental operating appropriation available to the ACCC is unlikely to be fully utilised in the budget year. The difference between the agency resource statements and the sum of all payments made at the departmental outputs level is the expected carry‑forward amount of resources for the 2009‑10 budget year, including amounts related to meeting future obligations to maintain the ACCC's asset base and to meet employee entitlement liabilities.
Table 3.1.1: Reconciliation of total available appropriation and outcomes
3.1.2 Movement of administered funds between years
Table 3.1.2: Movement of administered funds between years
The ACCC does not have any administered funds.
3.1.3 Special accounts
Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 (FMA Act) or under separate enabling legislation. Table 3.1.3 shows the expected additions (receipts) and reductions (payments) for each account used by the ACCC.
Special Public Moneys are held by the ACCC in a trustee capacity. The Trust moneys are a result of court orders of which payments to the beneficiaries are pending. These moneys are temporarily held for the benefit of a person or entity other than the Australian Government. This special account is departmental in nature and is governed by section 20 of the FMA Act.
Table 3.1.3: Estimates of special account cash flows and balances
3.1.4 Australian Government Indigenous Expenditure
Table 3.1.4: Australian Government Indigenous Expenditure
The ACCC does not have any Australian Government Indigenous Expenditure.
3.2 Budgeted financial statements
The budgeted financial statements contain estimates prepared in accordance with the requirements of the government's financial budgeting and reporting framework, as well as specific guidelines issued by the Department of Finance and Deregulation. The statements show the planned financial performance for the 2008‑09 budget year and each of the forward years from 2009‑10 to 2011‑12. The statements also include the estimated actual for 2007‑08 for comparative purposes.
3.2.1 Differences in agency resourcing and financial statements
There is no difference between agency resourcing and financial statements.
3.2.2 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 estimated actual operating result for 2007‑08 is an approved loss of $10 million.
Operating revenues
Total revenue in 2008‑09 is estimated to be $139.8 million, an increase of $20.9 million from the 2007‑08 estimated 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) 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 $139.8 million. This is an increase of $10.9 million from the 2007‑08 estimated 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), and the full year impact of initiatives funded in 2006‑07 for the AER and in 2007‑08 the Water Regulatory initiatives. The ACCC is expected to incur a loss of $10 million in 2007‑08 due to litigation costs awarded against the ACCC.
Balance Sheet
The ACCC's budgeted net asset position of $32.4 million represents a increase of $1.3 million from the 2007‑08 estimated actual. The increase is attributable to an equity injection associated with the National FuelWatch Scheme measure.
The total assets are expected to increase by $2.1 million to $52 million reflecting a projected increase in infrastructure, plant and equipment.
The ACCC's primary liability continues to be accrued employee leave entitlements of $14.7 million, this is expected to increase by approximately $0.8 million during 2008‑09.
3.2.3 Budgeted financial statements tables
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)
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June) (continued)
Prepared on an Australian Accounting Standards basis.
Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June) (continued)
Prepared on an Australian Accounting Standards basis.
Table 3.2.4: Departmental statement of changes in equity — summary of
movement (Budget year 2008‑09)
Prepared on an Australian Accounting Standards basis.
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.
3.2.3 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 Government's financial budgeting and reporting framework; and
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB).
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 fitout 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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