Part C – Budget Statement

SECTION 3: BUDGETED FINANCIAL STATEMENTS

The following budgeted financial statements for the Department of the Parliamentary Reporting Staff are presented in this section. The budgeted financial statements will form the basis of the financial statements that will appear in the department’s 2003–2004 Annual Report and will be included in the Whole of Government Accounts.

DEPARTMENTAL STATEMENTS

Budgeted Departmental Statement of Financial Performance

This statement provides a picture of the expected financial results for the department by identifying full accrual expenses and revenues, which highlights whether the department is operating at a sustainable level.

Budgeted Departmental Statement of Financial Position

This statement shows the financial position of the department. It helps decision-makers to track the management of the department's assets and liabilities.

Budgeted Departmental Statement of Cash Flows

Budgeted cash flows, as reflected in the 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 Capital Budget Statement

Shows all planned departmental capital expenditure (capital expenditure on non-financial assets), whether funded either through capital appropriations for additional equity or borrowings, or from funds from internal sources.

Departmental Non-financial Assets - Summary of Movement

Shows budgeted acquisitions and disposals of non-financial assets during the budget year.

BUDGETED FINANCIAL STATEMENTS

Table 3.1 Budgeted Departmental Statement of Financial Performance

for the period ended 30 June

Estimated actual 2002/03 Budget estimate 2003/04 Forward estimate 2004/05 Forward estimate 2005/06 Forward estimate 2006/07   $'000 $'000 $'000 $'000 $'000 Revenues from ordinary activities         Revenue from government 44,456 40,613 40,385 41,095 41,793 Sales of goods and services 2,717 3,731 3,898 3,949 4,001 Interest 49 0 0 0 0 Other 100 100 90 100 100 Resources free 2,600 2,610 2,620 2,630 2,630 Total revenues from ordinary activities 49,922 47,054 46,993 47,774 48,524 Expenses from ordinary activities (excluding borrowing costs expense) Employees 19,895 21,033 21,966 22,264 22,887 Suppliers 11,457 11,360 10,218 10,116 10,183 Resources free 2,600 2,610 2,620 2,630 2,630 Depreciation and amortisation 11,335 12,051 12,189 12,764 12,824 Value of assets sold – – – – – Total expenses from ordinary activities (excluding borrowing cost expenses) 45,287 47,054 46,993 47,774 48,524 Borrowing cost expense – – – – – Operating surplus or deficit from ordinary activities 4,635 0 0 0 0 Gain or loss on extraordinary items – – – – – Net surplus or deficit 4,635 0 0 0 0 Capital use charge paid* 4,635 Net surplus or deficit after capital use charge Nil Nil Nil Nil Nil

*The capital use charge has been abolished from 1 July 2003

Table 3.2 Budgeted Departmental Statement of Financial Position

as at 30 June

Table 3.3 Budgeted Departmental Statement of Cash Flows

for the period ended 30 June

Estimated actual 2002/03 Budget estimate 2003/04 Forward estimate 2004/05 Forward estimate 2005/06 Forward estimate 2006/07   $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Appropriations for outputs 44,456 40,613 40,385 41,095 41,793 Sales of goods and services 2,632 3,730 3,895 3,949 4,001 Interest 49 0 0 0 0 GST Refunds 1,136 1,126 1,137 1,127 1,136 Total cash received 48,273 45,469 45,417 46,171 46,930 Cash used Employees 19,943 20,940 22,570 22,197 22,631 Suppliers 12,864 12,386 11,263 11,143 11,219 Total cash used 32,807 33,326 33,833 33,340 33,850 Net cash from operating activities 15,466 12,143 11,584 12,831 13,080 INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment - – – – – Other - - - - - Total cash received - – – – Cash used Purchase of property, plant and equipment 14,855 9,820 13,000 13,300 13,400 Total cash used 14,855 9,820 13,000 13,300 13,400 Net cash from investing activities (14,855) (9,820) (13,000) (13,300) (13,400) FINANCIAL ACTIVITIES Cash used Capital Use Charge paid 4,635 0 0 0 0 Total cash used 4,635 0 0 0 0 Net cash from financing activities (4,635) 0 0 0 0 Net increase/decrease in cash held -4,024 2,323 -1,416 -469 -320 Cash at the beginning of the reporting period 9,618 5,594 7,917 6,501 6,032 Cash at the end of the reporting period 5,594 7,917 6,501 6,032 5,712

Table 3.4 Departmental Capital Budget Statement

Table 3.5 Departmental Non-Financial Assets - Summary of Movement

(Budget year 2003-04)

Other infrastructure plant and equipment Intangibles Total   $'000 $'000 $'000 Carrying amount at start of year 35,516 11,127 46,643 Additions 6,200 3,620 9,820 Disposals (4,400) (3,000) (7,400) Other Movements – – – Depreciation/amortisation expense (7,783) (4,268) (12,051) Accumulated depreciation-disposals 4,400 3,000 7,400 Carrying amount at end of year 33,933 10,479 44,412 Total additions Self funded 6,200 3,620 9,820 Appropriations – – – Total 6,200 3,620 9,820

NOTES TO THE FINANCIAL STATEMENTS

Under the Commonwealth'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 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.

Appropriations in the Accrual Budgeting Framework

Under the Commonwealth's accrual budgeting framework, separate annual appropriations are provided for:

• Departmental price of outputs appropriations: representing the Government's purchase of outputs from agencies,
• Departmental capital appropriations: for investments by the Government for either additional equity or loans in agencies,
• Administered expense appropriations: for the estimated Administered expenses relating to an existing outcome, a new outcome or a Specific Purpose Payment to the states; and
• Administered capital appropriations: for increases in Administered equity through funding non-expense Administered payments.

Special appropriations fund the majority of payments from the Consolidated Revenue Fund (especially those that are entitlement driven or involve transfers to State governments).

Capital Use Charge

The Capital Use Charge will be discontinued from 1 July 2003.

Asset valuation

From 1 July 2002 Commonwealth agencies and authorities are required to use either the cost basis or the fair value basis to measure Property, Plant and Equipment. The shift from the deprival method of valuation to fair value should occur gradually over a three-year period. Fair value essentially reflects the current market value of an asset.