Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2010–11 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

AWBC does not have any administered funds.

3.1.2 Special Accounts

AWBC does not have any special accounts.

3.1.3 Australian Government Indigenous Expenditure

The 2010–11 Australian Government Indigenous Statement is not applicable because AWBC has no Indigenous specific expenses.

3.2 Budgeted financial statements

3.2.1 Analysis of budgeted financial statements

The 2010–2011 budget and forward estimates are based on operating deficits of $0.5 million in 2010–2011 and the two subsequent years. The additional expenditure is to assist industry to meet the challenges identified in the Strategic Direction Statement and to help build a more profitable Australian wine industry. This budget has been prepared to ensure AWBC has sufficient financial resources to enable it to perform its functions and exercise its powers for the purpose of achieving the objectives specified in the Australian Wine and Brandy Corporation Act 1980.

Total anticipated revenue for 2010–2011 is $13.911 million. This is a small decrease on the previous year, reflecting the difficulties being experienced by the wine sector.

38 per cent of this revenue comes from levies on grape products used in the manufacture of wine (Wine Grape Levy) and on the value of wine exported (Wine Export Charge). Revenue from these levies, which are collected by the Levies Revenue Service of DAFF, is expected to decrease $328 000 from the 2009–2010 year because of an anticipated decline in the size of the 2010 vintage to 1.63 million tonnes and with the value of Australian wine exports of $2.0 billion.

Other major sources of revenue are regulatory fees, program memberships, promotional user-pay events, Export Partnership sponsorships and Australian Wine Overseas (AWO) scheme sales. In 2010–2011, revenue from these sources is anticipated to increase by $254 000 on the 2009–2010 year. The calculation of revenue from these sources is based upon export projections for regulatory fees, promotional program activity for program memberships and promotional user-pay events, and sales projections for the AWO scheme.

AWBC expects to receive $50 000 from the Export Market Development Grant in 2010–2011. Funds available from this source have reduced in recent years and this trend is expected to continue.

Total expenditure is estimated to be $14.410 million, a 3.3 per cent increase on the previous year.

Employee related expenditure accounts for approximately 34 per cent of all expenditure and has increased by $308 000 on the 2009–2010 year. The increase is due largely to the annualised impact of staff changes effected during 2009–10.

Supplier related expenditure relates to promotional activities, operating costs, accommodation, information technology and other fees and charges. Supplier related expenditure is expected to increase by $291 000 on the 2009–2010 year. The increase reflects a reassessment of promotional activities based on available funding, with a view to addressing the issues identified in the Strategic Direction Statement.

Promotional expenditure represents 54 per cent of all supplier related expenditure and is directly related to the amount of promotional revenue received.

Capital expenditure is funded internally and levels of expenditure are determined following reviews of AWBC’s infrastructure requirements.

3.2.2 Budgeted financial statements tables

Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services)
(for the period ended 30 June)

Table 3.2.1: Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)
Prepared on 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)
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on 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)
Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement
(Budget year 2010–11)

Table 3.2.4: Departmental statement of changes in equity — summary of movement<BR>(Budget year 2010–11)
Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental Capital Budget Statement

Table 3.2.5: Departmental Capital Budget Statement
Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of Asset Movements (2010–11)

Table 3.2.6: Statement of Asset Movements (2010–11)
Prepared on Australian Accounting Standards basis.

3.2.3 Notes to the financial statements

The financial statements have been prepared in accordance with:

  • Finance Minister’s Orders for reporting periods on or after 1 July 2008
  • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that apply for the reporting period.

The income statement, balance sheet, statement of cash flows and the statement of change in equity have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets and liabilities which are at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

<< Previous page | AWBC contents | CRDC >>