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.
| 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.
| 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.
| 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.
| 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.
| 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 | - |
| 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).
| 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.
| 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.
| 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.
| 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
| 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
| 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.
| 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.
| 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.
| 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.
| 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).
| 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
| 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.
| 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.
| 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.