Budgeted financial statements
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The financial statements are prepared on an accrual basis where revenues and expenses are recognised as and when the resources are received and used. The agency resourcing table recognises the cash resources available to be used during the period and includes amounts recognised as revenue in previous periods.
3.2.2 Analysis of budgeted financial statements
An analysis of the primary causes of movements in the budgeted financial statements and administered schedules is provided below. The 2008–09 estimated actual results are used as the comparative year in the analysis.
Departmental
Income statement
DAFF is budgeting for a small operating surplus of $0.7 million in 2009–10. This compares with an approved budgeted loss of $9.3 million in 2008–09. The loss relates to the impact of the decrease in the government bond rate and resulting increase in the departments employee provisions.
Total expenses are estimated to be $608.3 million. This represents a decrease of $31.5 million from the 2008–09 estimated actual results. The decrease in expenses is primarily due to the introduction of direct appropriations to Centrelink for the provision of government services and is offset by an equivalent reduction in the appropriation funding received by DAFF.
Balance sheet
The budgeted net asset position for 2009–10 of $19.7 million represents an increase of $2.2 million from the 2008–09 estimated actual. The increase is due to the budgeted operating surplus and a prior year output appropriation of $1.5 million.
The structure of the agency’s balance sheet is typical of an organisation where the key attributes are its employees, computer software (included in intangibles) and leasehold fit-out.
Administered
Income and expenses
It is estimated that DAFF will receive non-appropriation revenue on behalf of the government of $331.7 million, a decrease of $206.4 million from the 2008–09 estimated actual. The change is primarily due to the cessation of the milk levy associated with the dairy industry restructure package.
Administered expenses are estimated to be $991.9 million, a decrease of $758.8 million from the 2008–09 estimated actual. The change is primarily due to the funding patterns associated with a number of government measures, including the dairy industry restructure package, Tasmanian community forest agreement, Murray Darling basin grants to irrigators and exceptional circumstances relief payments. Approximately $260 million has also been transferred to other government agencies to accommodate the revised funding arrangements associated with the introduction of the Federal Financial Relations Act 2009 and the prescribing of the Australian Fisheries Management Authority under the Financial Management and Accountability Act 1997.
Assets and liabilities
Administered assets as at 30 June 2010 are estimated to be $246.0 million, a decrease of $4.5 million from the 2008–09 estimated actual. The change is primarily due to a reduction in the amount of cash held in special accounts.
Administered liabilities as at 30 June 2010 are estimated to be $114.9 million, a decrease of $6.3 million from the 2008–09 estimated actual. The change is primarily due to a reduction in the estimate of the personal benefits payable at the end of the year.
3.2.3 Budgeted financial statements tables
Prepared on Australian Accounting Standards basis.
Prepared on Australian Accounting Standards basis.
3.2.4 Notes to the financial statements
The departmental financial statements include financial information for all operations controlled by the department, including the Australian Quarantine and Inspection Service and the National Residue Survey. All transactions between these operations have been eliminated in the financial statements.
The statements are prepared in accordance with accounting policies published in the department’s annual report.
15 Sep 2009