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Australian Securities and Investments Commission

Date

Section 1: ASIC overview and resources

1.1 Strategic direction statement

There has been no significant change to the strategic direction of the Australian Securities and Investments Commission (ASIC) from that outlined in the Treasury Portfolio Budget Statements 2015-16 (pages 163-164).

ASIC is seeking an additional net $1.5m in equity injection for the Enhanced Public Register of Financial Advisors — Establishment and an additional net $2.008m for the measure Growing jobs in small business – streamlining business registration through Appropriation Bill (No. 4) 2015-16. ASIC is also seeking an additional $0.663m for Corporations Act 2001 unclaimed monies interest through Appropriation Bill (No. 3) 2015-16. Details of these measures appear in the Mid-Year Economic and Fiscal Outlook 2015-16.

1.2 ASIC resource statement

The ASIC Resource Statement details the resourcing for ASIC at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015-16 Budget year, including variations through Appropriation Bill Nos. 3 and 4, Special Appropriations and Special Accounts.

Table 1.1: ASIC resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016
  Actual available appropriation Estimate as at Budget Proposed Additional Estimate Total estimate at Additional Estimates
  2014-15
$'000
2015-16
$'000
2015-16
$'000
2015-16
$'000
Ordinary annual services(a)        
Departmental appropriation        
Prior year departmental appropriation(b) - 91,049 - 91,049
Departmental appropriation(c) 340,058 330,761 - 330,761
s.74 Retained Revenue Receipts(d) 6,109 2,147 - 2,147
Total 346,167 423,957 - 423,957
Administered expenses        
Outcome 1 - Assetless Administration fund 3,571 3,580 - 3,580
Outcome 1 - Ordinary annual services 3,072 2,515 - 2,515
Outcome 1 - Corporations Unclaimed Money interest - 699 633 1,332
Total 6,643 6,794 633 7,427
Total ordinary annual services [A] 352,810 430,751 633 431,384
Administered expenses        
Departmental non-operating        
Equity injections 9,365 1,793 3,508 5,301
Total 9,365 1,793 3,508 5,301
Total other services [B] 9,365 1,793 3,508 5,301
Total available annual appropriations 362,175 432,544 4,141 436,685
Special appropriations        
Special appropriations limited by amount        
Banking Act 1959 117,093 65,670 10,057 75,727
Life Insurance Act 1995 10,342 6,438 2,249 8,687
Public Governance, Performance and Accountability Act 2013 30,028 37,948 (7,132) 30,816
Total special appropriations [C] 157,463 110,056 5,174 115,230
Total appropriations excluding Special Accounts 519,638 542,600 9,315 551,915
Special Accounts        
Opening balance(e) - 64,029 - 64,029
Appropriation Receipts(f) 27,000 26,920 - 26,920
Non-appropriation receipts to Special Accounts 1,000 1,000 - 1,000
Total Special Account [D] 28,000 91,949 - 91,949
Total resourcing [A+B+C+D] 547,638 634,549 9,315 643,864
Less appropriations drawn from annual or special appropriations above and credited to special accounts - - - -
and/or payments to corporate entities through annual or special appropriations (27,000) (26,920) - (26,920)
Total net resourcing for ASIC 520,638 607,629 9,315 616,944

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $19.131m in 2015-16 for the departmental capital budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’.

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(e) Estimated opening balance for special accounts (less ‘Special Public Money’ held in a Services for Other Entities and Trust Moneys Special Accounts (SOETM)). For further information on Special Accounts see Table 3.1.1.

(f) Appropriation receipts from other entities credited to ASIC Special Accounts.

Reader note: All figures are GST exclusive.

1.3 ASIC measures

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table presents expense measures, with the affected programme identified.

Table 1.2: ASIC 2015-16 measures since Budget
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Expense measures (if applicable)          
Public Sector Superannuation Accumulation Plan administration fees(a) 1.1        
Departmental expenses   (181) (181) (181) (181)
Total   (181) (181) (181) (181)
Public Sector Savings — Enterprise Resource Planning System(b) 1.1        
Departmental expenses   - - (187) (228)
Total   - - (187) (228)
Total expense measures          
Departmental   (181) (181) (368) (409)
Total   (181) (181) (368) (409)

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.

(b) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Prepared on a Government Financial Statistics (fiscal) basis

1.4 Additional estimates and variations

The following tables detail the changes to the resourcing for ASIC at Additional Estimates, by outcome. Table 1.3 details the Additional Estimates and variations resulting from new measures since the 2015-16 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or variations through other factors, such parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Decrease in estimates (departmental)          
Public Sector Superannuation Accumulation Plan administration fees (a) 1.1 (181) (181) (181) (181)
Public Sector Savings — Enterprise Resource Planning System (b) 1.1 - - (187) (228)
Net impact on estimates for Outcome 1 (departmental)   (181) (181) (368) (409)

(a) This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.

(b) This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Table 1.4: Additional estimates and variations to outcomes from other variations
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Increase in estimates (administered)          
Revise Corps Act unclaimed money interest estimates 1.1 633 - - -
Net impact on estimates for Outcome 1 (administered)   633 - - -
Increase in estimates (departmental)          
Growing Jobs and Small Business — streamlining business registration 1
.1
1,500 - - -
Enhanced Public Register of Financial Advisers — establishment 1.1 2,008 550 - -
Net impact on estimates for Outcome 1 (departmental)   3,508 550 - -

1.5 Breakdown of additional estimates by appropriation bill

The following tables detail the Additional Estimates sought for ASIC through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16
  2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional
Estimates
$'000
Reduced
Estimates
$'000
Administered items        
Outcome 1: Improve confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems. 7,891 6,794 7,427 633 -
Total administered 7,891 6,794 7,427 633 -
Total administered and departmental 7,891 6,794 7,427 633 -
Table 1.6: Appropriation Bill (No. 4) 2015-16
  2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional
Estimates
$'000
Reduced
Estimates
$'000
Non-operating          
Equity injections 11,978 1,793 5,301 3,508 -
Total other services 11,978 1,793 5,301 3,508 -

Section 2: Revisions to ASIC outcomes and planned performance

2.1 Outcomes and performance information

There has been no change to outcomes or the outcome strategy for ASIC from that included in the Portfolio Budget Statements 2015-16 (page 168).

Table 2.1 Budgeted expenses for Outcome 1
Outcome 1: Improve confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems. 2014-15
Actual expenses
$'000
2015-16
Revised estimated expenses
$'000
Programme 1.1: Australian Securities and Investments Commission    
Administered expenses    
Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 5,318 6,095
Expenses not requiring appropriation in the budget year 45,343 46,921
Departmental expenses    
Departmental appropriation(a) 312,918 311,530
Expenses not requiring appropriation in the Budget year(b) 28,254 27,250
Total for Programme 1.1 391,833 391,796
Program 1.2: Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts    
Administered expenses    
Companies unclaimed monies - s. 77 of the PGPA Act 18,159 28,835
Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 938 1,332
Other services (Appropriation Act No. 2 and Bill No. 4)    
Special appropriations    
Banking Act 1959 - Banking Unclaimed Moneys 112,687 5,607
Life Insurance Act 1995 - Life Unclaimed Moneys 8,460 612
Total for Programme 1.2 140,244 36,386
Outcome 1 Totals by appropriation type    
Administered Expenses    
Ordinary annual services (Appropriation Act No. 1 and Bill No. 3) 6,256 7,427
Expenses not requiring appropriation in the budget year 45,343 46,921
Special appropriations 121,147 6,219
Companies unclaimed monies - s. 77 of the PGPA Act 18,159 28,835
Departmental expenses    
Departmental appropriation(a) 312,918 311,530
Expenses not requiring appropriation in the Budget year(b) 28,254 27,250
Total expenses for Outcome 1 532,077 428,182
  2014-15 2015-16
Average staffing level (number) 1,573 1,569

(a) Departmental Appropriation combines ‘Ordinary annual services (Appro
priation Act No. 1 and Bill No. 3)’.

(b) Expenses not requiring appropriation in the Budget year is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme Objective 1.1 Australian Securities and Investments Commission

There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

Programme expenses 1.1
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward year 1
$'000
2017-18
Forward year 2
$'000
2018-19
Forward year 3
$'000
Annual administered expenses:          
Administered item 5,318 6,095 4,176 4,242 4,273
Expenses not requiring appropriation 45,343 46,921 47,495 45,377 48,667
Annual departmental expenses:          
Departmental item 312,918 311,530 307,599 308,414 310,399
Expenses not requiring appropriation in the Budget year(a) 28,254 27,250 34,967 28,664 18,727
Total programme expenses 391,833 391,796 394,237 386,697 382,066

(a) Expenses not requiring appropriation in the Budget year is made up of depreciation expense and amortisation expense.

Programme Objective 1.2 Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts

There has been no change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.

Programme expenses 1.2
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward year 1
$'000
2017-18
Forward year 2
$'000
2018-19
Forward year 3
$'000
Annual administered expenses:          
Special Appropriations:          
Special Appropriations: 121,147 6,219 8,740 3,802 3,249
Ordinary annual services 938 1,332 5,736 5,736 5,816
s. 77 of the PGPA Act 18,159 28,835 29,346 29,838 30,526
Total programme expenses 140,244 36,386 43,822 39,376 39,591

Section 3: Explanatory tables and budgeted financial statements

3.1 Explanatory tables

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 2015-16 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows and balances
  Outcome Opening balance
$'000
Receipts
$'000
Payments
$'000
Adjustments
$'000
Closing balance
$'000
ASIC Deregistered Companies (D)            
2015-16 1 1,902 1,000 (1,000) - 1,902
2014-15   1,546 397 (41) - 1,902
ASIC Investigations, Legal Proceedings, Settlements and Court Orders Special Account (D)            
2015-16 1 11 - - - 11
2014-15   11 - - - 11
ASIC Security Deposits Special Account (D)            
2015-16 1 454 - - - 454
2014-15   445 9 - - 454
Enforcement Special Account (D)            
2015-16 1 62,127 - 26,920 - 89,047
2014-15   51,900 428 27,000 (17,201) 62,127
Total special accounts            
2015-16 Budget estimate   64,494 1,000 25,920 - 91,414
2014-15 actual   53,902 834 26,959 (17,201) 64,494

(A) = Administered

(D) = Departmental

3.2 Budgeted financial statements

3.2.1 Analysis of budgeted financial statements

ASIC is currently budgeting for a breakeven operating result for 2015-16 and for the remainder of the forward estimates.

Comprehensive income statement (showing net cost of services) for the period ended 30 June

Total revenue and expenses (excluding depreciation) are estimated to be $314.9 million for 2015-16. The expenditure will be used to fund activities that contribute towards achieving the outcome and programme objectives outlined in Section 2.

Budgeted departmental balance sheet (as at 30 June)

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 2015-16 is $91.7 million.

The 2015-16 equity position reflects the cumulative effect of capital injections of $5.3 million received during 2015-16.

Departmental statement of changes in equity — summary of movement (Budget year 2015-16)

This statement shows the changes in the equity position of ASIC. It helps decision-makers to track the management of ASIC’s equity.

Budgeted departmental statement of cash flows (for the period ended 30 June)

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 capital budget statement (for the period ended 30 June)

This statement shows details of capital appropriations received by ASIC. It helps decision-makers to track the acquisition of new non-financial assets.

Statement of asset movements — Departmental (2015-16 Budget year)

This statement shows details of gross asset movements during the year. It helps decision-makers to analyse movements of non-financial assets.

Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

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 (Corporations Act) and ASIC’s responsibilities in administering unclaimed monies under the Banking Act 1959 (Banking Act), the Life Insurance Act 1995 (Life Insurance Act) and s.77 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

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 monies under the Banking Act, the Life Insurance Act and the Corporations Act.

Expenses represent budgeted payments of unclaimed monies, refund of overpaid fees and charges levied under the Corporations Act, bad debt expense, administered advertising expenses and grant 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 (as at 30 June)

The amount shown for receivables in 2015-16 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act remaining unpaid at 30 June.

The amounts shown in other payables for 2015-16 and the forward estimates represent the estimated amount of refunds relating to the overpayments of annual review and other fees under the Corporations Act, estimated claims payable under the Banking Act and the Life Insurance Act and companies unclaimed monies under s.77 of the PGPA Act.

Schedule of budgeted administered cash flows (for the period ended 30 June)

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.

3.2.2 Budgeted financial statements

Departmental financial statements
Table 3.2.1: Departmental comprehensive income statement (showing net cost of services)
2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES          
Employee benefits 213,071 212,187 213,776 214,211 215,986
Suppliers 100,239 98,843 93,323 93,703 93,909
Depreciation and amortisation 41,373 40,148 34,967 28,664 18,727
Finance costs (568) 500 500 500 504
Write-down and impairment of assets 176 - - - -
Total expenses 354,291 351,678 342,566 337,078 329,126
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Sale of goods and rendering of services 1,609 2,208 3,657 3,698 3,662
Other revenue 2,881 865 865 865 865
Total own-source revenue 4,490 3,073 4,522 4,563 4,527
Gains          
Sale of assets          
Other 353 330 330 330 330
Total gains 353 330 330 330 330
Total own-source income 4,843 3,403 4,852 4,893 4,857
Net cost of (contribution by) services 349,448 348,275 337,714 332,185 324,269
Revenue from Government 311,942 311,480 306,100 306,874 308,895
Surplus/(deficit) attributable to the Australian Government (37,506) (36,795) (31,614) (25,311) (15,374)
OTHER COMPREHENSIVE INCOME          
Total other comprehensive income - - - - -
Total comprehensive income/(loss) (37,506) (36,795) (31,614) (25,311) (15,374)

Prepared on Australian Accounting Standards basis

Table 3.2.1: Departmental comprehensive income statement (showing net cost of services) (continued)
Note: Impact of net cash appropriation arrangements
  2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations 3,867 3,353 3,353 3,353 3,353
less depreciation/amortisation expenses previously funded through revenue appropriations(a) 41,373 40,148 34,967 28,664 18,727
Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (37,506) (36,795) (31,614) (25,311) (15,374)

(a) From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities were replaced with a separate capital budget (the departmental capital budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental capital budget statement.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS          
Financial assets          
Cash and cash equivalents 9,232 9,232 9,232 9,232 9,232
Trade and other receivables 94,885 99,214 96,697 93,955 93,955
Total financial assets 104,117 108,446 105,929 103,187 103,187
Non-financial assets          
Land and buildings 36,207 30,502 29,661 37,704 45,151
Property, plant and equipment 22,855 19,346 17,138 16,544 17,884
Intangibles 92,780 84,253 80,905 67,258 63,737
Other non-financial assets 9,931 10,032 10,032 10,032 10,032
Total non-financial assets 161,773 144,133 137,736 131,538 136,804
Assets held for sale          
Total assets 265,890 252,579 243,665 234,725 239,991
LIABILITIES          
Payables          
Suppliers 24,869 25,393 25,393 25,393 25,393
Other payables 43,381 39,400 34,382 28,287 24,934
Total payables 68,250 64,793 59,775 53,680 50,327
Provisions          
Employee provisions 77,690 80,369 80,369 80,369 80,369
Other provisions 15,855 15,685 15,832 13,943 13,439
Total provisions 93,545 96,054 96,201 94,312 93,808
Liabilities included in disposal groups held for sale          
Total liabilities 161,795 160,847 155,976 147,992 144,135
Net assets 104,095 91,732 87,689 86,733 95,856
EQUITY*          
Parent entity interest          
Contributed equity 289,874 314,306 341,877 366,232 390,729
Reserves 6,365 6,365 6,365 6,365 6,365
Retained surplus/(accumulated deficit) (192,144) (228,939) (260,553) (285,864) (301,238)
Total parent entity interest 104,095 91,732 87,689 86,733 95,856
Total Equity 104,095 91,732 87,689 86,733 95,856

*Equity is the residual interest in assets after the deduction of liabilities.

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2015-16)
  Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2015          
Balance carried forward from previous period (192,144) 6,365   289,874 104,095
Adjusted opening balance (192,144) 6,365 - 289,874 104,095
Comprehensive income          
Other comprehensive income         -
Surplus/(deficit) for the period (36,795)       (36,795)
Total comprehensive income (36,795) - - - (36,795)
Transactions with owners          
Contributions by owners          
Equity Injection         -
Equity Injection - Appropriation       5,301 5,301
Departmental Capital Budget (DCB)       19,131 19,131
Other         -
Restructuring         -
Sub-total transactions with owners - - - 24,432 24,432
Transfers between equity components         -
Estimated closing balance as at 30 June 2016 (228,939) 6,365 - 314,306 91,732
Closing balance attributable to the Australian Government (228,939) 6,365 - 314,306 91,732

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (as at 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES          
Cash received          
Appropriations 324,215 310,027 308,617 309,616 308,895
Sale of goods and rendering of services 3,322 2,208 3,657 3,698 3,662
Net GST received 13,062 12,501 12,188 13,972 12,577
Other 2,787 865 865 865 865
Total cash received 343,386 325,601 325,327 328,151 325,999
Cash used          
Employees 215,403 209,508 213,776 214,211 215,986
Suppliers 117,030 102,145 98,084 99,541 94,587
Borrowing costs - 12,500 12,188 13,972 12,577
Other 6,109 597 280 2,316 3,353
Total cash used 338,542 324,750 324,328 330,040 326,503
Net cash from/(used by) operating activities 4,844 851 999 (1,889) (504)
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant, equipment and intangibles 36,435 22,407 28,570 22,466 23,993
Total cash used 36,435 22,407 28,570 22,466 23,993
Net cash from/(used by) investing activities (36,435) (22,407) (28,570) (22,466) (23,993)
FINANCING ACTIVITIES          
Cash received          
Contributed equity 25,694 21,556 27,571 24,355 24,497
Total cash received 25,694 21,556 27,571 24,355 24,497
Net cash used by financing activities 25,694 21,556 27,571 24,355 24,497
Net increase/(decrease) in cash held (5,897) - - - -
Cash and cash equivalents at the beginning of the reporting period 15,129 9,232 9,232 9,232 9,232
Cash and cash equivalents at the end of the reporting period 9,232 9,232 9,232 9,232 9,232

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement (for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Act No. 1 (DCB) 15,215 19,131 24,142 24,355 24,497
Equity injections - Act No. 2 11,978 5,301 3,429 - -
Total new capital appropriations 27,193 24,432 27,571 24,355 24,497
Provided for:          
Purchase of non-financial assets 26,943 23,762 27,218 22,466 23,993
Annual finance lease costs 250 670 353 1,889 504
Other Items          
Total Items 27,193 24,432 27,571 24,355 24,497
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations(a) 12,966 3,946 4,781 - -
Funded by capital appropriation - DCB(b) 14,965 18,461 23,789 22,466 23,993
TOTAL AMOUNT SPENT 27,931 22,407 28,570 22,466 23,993
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 27,931 22,407 28,570 22,466 23,993
less additions by creditors / borrowings          
plus borrowing/finance costs          
TOTAL CASH REQUIRED TO ACQUIRE ASSETS 27,931 22,407 28,570 22,466 23,993

Consistent with information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flows.

(b) Includes both current and prior Act 2 and Bills 4-6 appropriations and special capital appropriations

(c) Does not include annual finance lease costs. Includes purchase from current and previous years’ departmental capital budgets (DCBs).

Table 3.2.6: Statement of asset movements (2015-16 Budget year)
  Buildings
$'000
Other property, plant and equipment
$'000
Computer software and intangibles
$'000
Total
$'000
As at 1 July 2015        
Gross book value 73,213 58,038 270,127 401,378
Accumulated depreciation/amortisation and impairment (37,006) (35,183) (177,347) (249,536)
Opening net book balance 36,207 22,855 92,780 151,842
Capital asset additions        
Estimated expenditure on new or replacement assets        
By purchase - appropriation equity(a) 924 2,760 18,723 22,407
Total additions 924 2,760 18,723 22,407
Other movements        
Depreciation/amortisation expense (6,629) (6,269) (27,250) (40,148)
Total other movements (6,629) (6,269) (27,250) (40,148)
As at 30 June 2016        
Gross book value 74,137 60,798 288,850 423,785
Accumulated depreciation/amortisation and impairment (43,635) (41,452) (204,597) (289,684)
Closing net book balance 30,502 19,346 84,253 134,101

(a) ‘Appropriation equity’ refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No. 2) and Bill (No. 4) 2015-16, including CDABs.

Prepared on Australian Accounting Standards basis.

Schedule of administered activity

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT          
Suppliers 2,250 2,515 578 586 590
Grants 3,068 3,580 3,598 3,656 3,678
Interest expense 3,925 4,361 3,498 3,325 3,171
Write-down and impairment of assets 45,343 46,921 47,495 45,377 48,667
Other expenses 136,319 32,025 31,812 31,809 32,152
Total expenses administered on behalf of Government 190,905 89,402 86,981 84,753 88,258
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Taxation revenue          
Fees and fines 823,579 867,702 897,033 923,017 951,377
Total taxation revenue 823,579 867,702 897,033 923,017 951,377
Non-taxation revenue          
Sale of goods and rendering of services 209,371 42,421 43,016 44,091 45,193
Total non-taxation revenue 209,371 42,421 43,016 44,091 45,193
Total own-source revenue administered on behalf of Government 1,032,950 910,123 940,049 967,108 996,570
Total own-source income administered on behalf of Government 1,032,950 910,123 940,049 967,108 996,570
Net cost of/(contribution by) services (842,045) (820,721) (853,068) (882,355) (908,312)
Surplus/(deficit) 842,045 820,721 853,068 882,355 908,312
Total comprehensive income (loss) 842,045 820,721 853,068 882,355 908,312

Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS          
Financial assets          
Cash and cash equivalents 2,157 2,464 2,464 2,464 2,464
Taxation receivables 76 76 76 76 76
Trade and other receivables 123,840 141,583 148,940 155,098 156,526
Total financial assets 126,073 144,123 151,480 157,638 159,066
Total assets administered on behalf of Government 126,073 144,123 151,480 157,638 159,066
LIABILITIES          
Payables          
Suppliers 19,921 19,921 19,921 19,921 19,921
Other payables 417,688 337,819 306,021 284,998 270,809
Total payables 437,609 357,740 325,942 304,919 290,730
Total liabilities administered on behalf of Government 437,609 357,740 325,942 304,919 290,730
Net assets/(liabilities) (311,536) (213,617) (174,462) (147,281) (131,664)

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES          
Cash received          
Sale of goods and rendering of services 976,011 845,457 885,197 915,574 948,515
Net GST received 589 328 331 331 -
Total cash received 976,
600
845,785 885,528 915,905 948,515
Cash used          
Grants 2,902 3,580 3,598 3,656 3,714
Suppliers - 2,515 578 586 590
Net GST paid - 328 331 331 -
Other 161,776 116,255 67,108 56,157 49,512
Total cash used 164,678 122,678 71,615 60,730 53,816
Net cash from/(used by) operating activities 811,922 723,107 813,913 855,175 894,699
Net increase/(decrease) in cash held 811,922 723,107 813,913 855,175 894,699
Cash and cash equivalents at beginning of reporting period 3,876 2,157 2,464 2,464 2,464
Cash from Official Public Account for:          
- Appropriations 172,508 132,657 81,284 70,399 63,816
Cash to Official Public Account for:          
- Appropriations (986,149) (855,457) (895,197) (925,574) (958,515)
Cash and cash equivalents at end of reporting period 2,157 2,464 2,464 2,464 2,464

Prepared on 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 entity 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 entity or authority that are controlled by the entity. Departmental expenses include employee and supplier expenses and other administrative costs which are incurred by the entity in providing its goods and services.

Administered items are revenues, expenses, assets and liabilities that are managed by an entity 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 Australian Government.

Appropriations in the accrual budgeting framework

Under the Australian Government’s accrual budgeting framework, separate annual appropriations are provided for:

  • departmental appropriations representing the Australian Government’s purchase of programmes 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 comprehensive income statement on a basis that is representative of the pattern of benefits derived from the lease assets.

Depreciation and amortisation

Computer equipment and plant and equipment is depreciated using the straight-line method. 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.

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 fees and charges, and collections of unclaimed monies under the Banking Act, the Life Insurance Act and the Corporations Act.

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 Act 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 (OPA) at the close of business each day. Cash collected for Banking Act unclaimed monies, Life Insurance Act unclaimed monies and Corporations Act unclaimed monies is transferred to the OPA when received.