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Australian Securities and Investments Commission

Date

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Australian Securities and Investments Commission (ASIC) is an independent government body established under the Australian Securities and Investments Commission Act 2001.

ASIC's objectives, as set out in the Australian Securities and Investments Commission Act 2001, are to:

  • maintain, facilitate and improve the performance of the financial system and the entities within that system in the interests of commercial certainty, reducing business costs, and the efficiency and development of the economy;
  • promote the confident and informed participation of investors and consumers in the financial system;
  • administer the laws that confer functions and powers on it effectively and with a minimum of procedural requirements;
  • receive, process and store, efficiently and quickly, the information given to ASIC under the laws that confer functions and powers on it;
  • ensure that information is available as soon as practicable for access by the public; and
  • take whatever action it can take, and is necessary, in order to enforce and give effect to the laws of the Commonwealth that confer functions and powers on it.

ASIC's areas of regulatory responsibility include consumer protection and market integrity in the financial services sector, investment management (including superannuation), capital markets (including primary and secondary capital markets), corporations and their auditors and liquidators, and oversight of market operators (for example, the Australian Securities Exchange).

ASIC also operates a major public register function that provides information about Australia's 1.9 million companies, business names, financial services licensees and other professionals registered with ASIC.

ASIC also provides public and consumer education material through a variety of community outreach activities and programs, and has an enforcement and regulatory role designed to deal with misconduct, in order to promote a confident and informed market.

ASIC will continue to focus on the following priorities:

  • confident and informed investors and financial consumers;
  • fair and efficient financial markets; and
  • efficient registration and licensing.

1.2 Agency resource statement

Table 1.1 shows the total resources for ASIC.

Table 1.1: Australian Securities and Investments Commission resource statement — Budget estimates for 2013‑14 as at Budget May 2013
Estimate
of prior
year amounts
available in
2013‑14
$'000
+ Proposed
at Budget
2013‑14
$'000
= Total
estimate
2013‑14
$'000
Actual
available
appropriation
2012‑13
$'000
Ordinary annual services              
Departmental              
Prior year departmental appropriation   74,109 5 -   74,109 -
Departmental appropriation3   -   382,103 1 382,103 372,638
Receipts from other sources (s31)   -   2,023 4 2,023 3,782
Total departmental   74,109   384,126   458,235 376,420
Administered expenses              
Outcome 1 - Assetless Administration fund   -   3,551 1 3,551 2,566
Ordinary annual services   -   2,778 1 2,778 -
Total administered   -   6,329   6,329 2,566
Total ordinary annual services A 74,109   390,455   464,564 378,986
Other services              
Departmental non-operating              
Equity injections   -   11,791 2 11,791 13,934
Total other services B -   11,791   11,791 13
,934
Total available annual appropriations (A+B)   74,109   402,246   476,355 392,920
Special appropriations              
Banking Act 1959   -   158,956   158,956 39,693
Life Insurance Act 1995   -   14,482   14,482 4,115
Total special appropriations C -   173,438   173,438 43,808
Total appropriations excluding special accounts (A+B+C)   74,109   575,684   649,793 436,728
Special accounts              
Opening balance6   20,086   -   20,086 -
Appropriation receipts   -   30,000   30,000 30,000
Non-appropriation receipts to special accounts   -   1,000   1,000 302,560
Total special account D 20,086   31,000   51,086 332,560
Total resourcing (A+B+C+D)   94,195   606,684   700,879 769,288
Less appropriations drawn from annual appropriations above and credited to special accounts   -   30,000   30,000 30,000
Total net resourcing for ASIC   94,195   576,684   670,879 739,288

1. Appropriation Bill (No. 1) 2013‑14.

2. Appropriation Bill (No. 2) 2013‑14.

3. Includes $18.7 million in 2013‑14 for the Departmental Capital Budget (also refer to Table 3.2.5).

4. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.

5. Estimated adjusted balance carried from previous year for annual appropriations.

6. Estimated opening balance for special accounts. For further detail on special accounts see Table 3.1.2.

1.3 Budget measures

Budget measures relating to ASIC are summarised below.

Table 1.2: Australian Securities and Investments Commission 2013‑14 Budget measures

Table 1.2: Australian Bureau of Statistics 2013‑14 Budget measures
Program 2012‑13
$'000
2013‑14
$'000
2014‑15
$'000
2015‑16
$'000
2016‑17
$'000
Expense measures            
Australian Securities and Investments Commission client contact centre — National Business Names registration system 1.1 - 3,121 3,137 - -
Over-the-counter derivatives market supervision 1.1 - 2,961 1,249 919 785
Superannuation Complaints Tribunal — additional funding 1.1 - 1,045 882 305 344
Targeted savings — public service efficiencies1 1.1 - (780) (677) (585) (454)
Tax agent services licensing regime — online registration for financial advisors 1.1 - - 109 110 111
Total expense measures   - 6,347 4,700 749 786
Related capital            
Australian Securities and Investments Commission client contact centre — National Business Names registration system 1.1 - 1,591 - - -
Tax agent services licensing regime — online registration for financial advisors 1.1 - 1,020 - - -
Total related capital   - 2,611 - - -
Related revenue            
Australian Securities and Investments Commission client contact centre — National Business Names registration system            
Administered revenue 1.1 - 2,233 2,233 2,233 2,233
Total related revenue   - 2,233 2,233 2,233 2,233

1. This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13. The fiscal impact for this measure is in addition to the impact previously reported for this measure in the Treasury Portfolio Additional Estimates Statements 2012‑13.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to Government outcomes over the Budget and forward years.

ASIC's outcome is described below together with its related programs specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of ASIC.

Outcome 1: Improved confidence in Australia's financial markets through promoting informed investors and financial consumers, facilitating fair and efficient markets and delivering efficient registry systems

Outcome 1 strategy

The strategy under Outcome 1 focuses on:

  • confident and informed investors and financial consumers, focusing on education, holding gatekeepers to account, and consumer behaviour;
  • fair and efficient financial markets through ASIC's role in market supervision, market competition and corporate governance; and
  • efficient registration and licensing with a focus on small business.

Outcome 1 Budgeted resources

Table 2.1 provides an overview of the total resources for Outcome 1.

Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Improved confidence in Australia's financial marketsthrough promoting informed investors and financial consumers,facilitating fair and efficient markets and delivering efficient registry systems 2012‑13
Estimated
actual
expenses
$'000
2013 ‑14
Estimated
expenses
$'000
Program 1.1: Australian Securities and Investments Commission    
Departmental expenses    
Departmental appropriation 362,252 363,267
Expenses not requiring appropriation in the budget year 53,997 46,015
Administered expenses    
Ordinary annual services (Appropriation Bill No. 1) 2,566 5,551
Expenses not requiring appropriation in the budget year 35,607 36,000
Total for Program 1.1 454,422 450,833
Program 1.2: Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts    
Administered expenses    
Companies unclaimed monies - section 28 of the FMA Act 7,188 7,683
Ordinary annual services (Appropriation Bill No. 1) 4,619 -
Administered expenses    
Special appropriations    
Banking Act 1959 - Banking Unclaimed Moneys 53,377 43,265
Life Insurance Act 1995 - Life Unclaimed Moneys 5,422 4,485
Total special appropriations 58,799 47,750
Total for Program 1.2 70,606 55,433
Outcome 1 totals by appropriation type    
Departmental expenses    
Departmental appropriation 362,252 363,267
Expenses not requiring appropriation in the budget year 53,997 46,015
Administered expenses    
Companies unclaimed monies - section 28 of the FMA Act 7,188 7,683
Ordinary annual services (Appropriation Bill No. 1) 7,185 5,551
Special appropriations 58,799 47,750
Expenses not requiring appropriation in Budget year 35,607 36,000
Total expenses for Outcome 1 525,028 506,266
     
  2011&
#8209;12
2012‑13
Average staffing level (number) 1,830 1,834

Contributions to Outcome 1

Program 1.1: Australian Securities and Investments Commission
Program objective

Program 1.1 contributes to Outcome 1 by improving industry behaviour where market integrity and consumer confidence are most at risk, by helping consumers and retail investors make well‑informed decisions in the financial economy, and supervising Australia's financial markets.

This program also seeks to improve ASIC's registry and stakeholder services by developing initiatives for business and consumer stakeholders to simplify and reduce the cost of interactions with ASIC.

Program expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Program 1.1 expenses
2012‑13
Revised
budget
$'000
2013‑14
Budget
$'000
2014‑15
Forward
year 1
$'000
2015‑16
Forward
year 2
$'000
2016‑17
Forward
year 3
$'000
Annual departmental expenses          
Departmental items 362,252 363,267 354,237 351,428 354,857
Expenses not requiring appropriation 53,997 46,015 38,477 32,471 21,281
Annual administered expenses          
Ordinary annual services 2,566 5,551 5,842 6,150 4,236
Expenses not requiring appropriation 35,607 36,000 36,399 36,804 37,213
Total program expenses 454,422 450,833 434,955 426,853 417,587
Program deliverables

ASIC will deliver this objective through engagement with industry and stakeholders, surveillance, guidance, education, enforcement activities, and policy advice.

Program deliverables are focused under each strategic priority.

Confident and informed investors and financial consumers

Deliverables are designed to:

  • educate investors and promote information about risk, reward and diversification so they can make informed investment decisions;
  • hold people with a trusted role in the financial system (gatekeepers such as auditors, directors, advisers, custodians, product manufacturers and distributors, market operators and participants) to account if they are not meeting their obligations; and
  • recognise how investors and financial consumers make decisions.
Fair and efficient financial markets

Deliverables focus on:

  • supervising equities and derivatives markets for instances of market misconduct;
  • supervising market operators for compliance with statutory obligations;
  • promoting good corporate governance; and
  • holding people with a trusted role in the financial system to account if they are not meeting their obligations.
Efficient registration and licensing

Deliverables seek to:

  • provide stakeholders with modern, efficient, accurate and cost effective corporate register and licensing systems;
  • improve public access to information about registered and licensed entities;
  • reduce costs and red tape for business by making it easier to transact with ASIC; and
  • administer the law to enhance commercial certainty and reduce business costs.

Program key performance indicators

ASIC measures performance by considering how effective it is in delivering against a range of more detailed outcomes under each strategic priority. Measures incorporate both internal regulatory activity and stakeholder feedback.

Confident and informed investors and consumers
  • investors and consumers can make informed decisions;
  • product issuers, credit providers and financial/credit advisers meet required standards;
  • fair and efficient processes for resolution of disputes; and
  • misconduct is dealt with and deterred.
Fair and efficient financial markets
  • participants in financial markets meet required standards;
  • financial markets are orderly and efficient;
  • issuers and their officers meet required standards; and
  • misconduct is dealt with and deterred.
Efficient licensing and registration
  • registration and licensing is efficient, accurate and cost effective for business;
  • business complies with ongoing registration and licensing obligations;
  • the public has easy access to information to ASIC registers; and
  • misconduct is dealt with and deterred.
Program 1.2: Banking Act 1959, Life Insurance Act 1995, unclaimed monies and special accounts
Program objective

ASIC is responsible for the administration of unclaimed money from banking and deposit taking institutions and life insurance institutions.

Program expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Program 1.2 expenses
2012‑13
Revised
budget
$'000
2013‑14
Budget
$'000
2014‑15
Forward
year 1
$'000
2015‑16
Forward
year 2
$'000
2016‑17
Forward
year 3
$'000
Annual administered expenses:          
Special appropriations 58,799 47,750 52,047 56,731 62,404
Ordinary annual services 4,619 - - - 1,894
Section 28 of the FMA Act 7,188 7,683 8,571 5,386 -
Total program expenses 70,606 55,433 60,618 62,117 64,298
Program deliverables

Provide an accurate register of unclaimed money and special accounts administered by ASIC.

Program key performance indicators

ASIC has the following key performance indicators:

  • ensure that refunds of unclaimed monies are paid to successful claimants promptly; and
  • ensure that payments of monies from special accounts are paid out promptly in accordance with the specified purposes or appropri
    ate legislation.

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 budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, special accounts and Australian Government indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

ASIC has not moved any administered funds between years.

3.1.2 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by ASIC.

Table 3.1.2: Estimates of special account cash flows and balances
Outcome Opening
balance
2013‑14
2012‑13
$'000
Receipts
non-
appropriated
2013‑14
2012‑13
$'000
Receipts
appropriated
2013‑14
2012‑13
$'000
Payments
2013‑14
2012‑13
$'000
Closing
balance
2013‑14
2012‑13
$'000
ASIC Deregistered Companies Trust Moneys Special Account(D)   - 1,000 - 1,000 -
1 1,011 1,000 - 2,011 -
ASIC Investigations, Legal Proceedings, Settlements and Court Orders Special Account(D)   - - - - -
1 11,019 - - 11,019 -
ASIC Security DepositsSpecial Account(D)   - - -   -
1 384 - - 384 -
Companies and Unclaimed Moneys Special Account(A)   - - - - -
1 7,096 301,560 - 308,656 -
Enforcement Special Account(D)   20,086 - 30,000 30,000 20,086
1 20,086 - 30,000 30,000 20,086
Total special accounts 2013‑14 Budget estimate   20,086 1,000 30,000 31,000 20,086
Total special accounts 2012‑13 estimate actual   39,596 302,560 30,000 352,070 20,086

(A) = Administered.

(D) = Departmental.

3.1.3 Australian Government Indigenous Expenditure

Table 3.1.3: Australian Government Indigenous Expenditure

  Appropriations      Other Total Program
    Bill
No. 1
$'000
Bill
No. 2
$'000
Special
approp
$'000
Total
approp
$'000
  $'000   $'000    
Australian Securities and Investments Commission              
Departmental 2013‑14 725 - - 725 - 725 1.1
Departmental 2012‑13 704 - - 704 - 704 1.1

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences between agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

Budgeted departmental income statement

ASIC is budgeting for a break‑even operating result for 2013‑14 and for the remainder of the forward estimates, after adding back non‑appropriated depreciation and amortisation expenses.

Total revenue and expenses (excluding depreciation) are estimated to be $365.6 million for 2013‑14. The expenditure will be used to fund activities that contribute towards achieving the outcome and program objectives outlined in Section 2.

Budgeted departmental balance sheet

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 2013‑14 is $123.7 million.

The 2013‑14 equity position reflects the cumulative effect of capital injections of $30.5 million received during 2013‑14.

Budgeted departmental statement of cash flows

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 statement of changes in equity — summary of movement

This state
ment shows the changes in the equity position of ASIC. It helps decision‑makers to track the management of ASIC's equity.

Departmental Capital Budget statement

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

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

Schedule of administered activity

Schedule of budgeted income and expenses administered on behalf of government

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 and ASIC's responsibilities in administering unclaimed monies under the Banking Act 1959, the Life Insurance Act 1995 and section 28 of the Financial Management and Accountability Act 1997 (FMA 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 1959, the Life Insurance Act 1995 and the Corporations Act 2001.

Expenses represent budgeted payments of unclaimed monies, refund of overpaid fees and charges levied under the Corporations Act 2001, 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

The amount shown for receivables in 2013‑14 and in the forward estimates is the estimated amount of fees and charges under the Corporations Act 2001 remaining unpaid at 30 June.

The amounts shown in other payables for 2013‑14 and the forward estimates represent the estimated amount of refunds relating to the overpayments of annual review and other fees under the Corporations Act 2001, estimated claims payable under the Banking Act 1959 and the Life Insurance Act 1995 and companies unclaimed monies under section 28 of the FMA Act.

Schedule of budgeted administered cash flows

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.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES          
Employee benefits 229,432 237,571 231,923 233,261 235,658
Supplier 132,320 125,196 121,814 117,667 118,699
Finance costs 500 500 500 500 500
Depreciation and amortisation 53,997 46,015 38,477 32,471 21,281
Total expenses 416,249 409,282 392,714 383,899 376,138
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services 2,015 1,188 1,204 1,282 3,487
Other revenue 5,768 835 840 865 865
Total revenue 7,783 2,023 2,044 2,147 4,352
Gains          
Other 172 172 172 172 172
Total gains 172 172 172 172 172
Total own-source income 7,955 2,195 2,216 2,319 4,524
Net cost of (contribution by) services 408,294 407,087 390,498 381,580 371,614
Appropriation revenue 356,887 363,362 354,311 351,399 352,623
Surplus (deficit) attributable to the Australian Government (51,407) (43,725) (36,187) (30,181) (18,991)
Note: Impact of Net Cash Appropriation Arrangements 
  2012-13
$'000
2013-14
$'000
2014-15
$'000
2015-16
$'000
20116-17
$'000
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations 300 - - - -
plus depreciation/amortisation expenses previously funded through revenue appropriations (51,707) (43,725) (36,187) (30,181) (18,991)
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income (51,407) (43,725) (36,187) (30,181) (18,991)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS          
Financial assets          
Cash and equivalents 5,016 6,170 6,170 6,170 6,170
Trade and other receivables 83,291 78,561 76,875 78,237 78,737
Total financial assets 88,307 84,731 83,045 84,407 84,907
Non-financial assets          
Land and buildings 49,256 43,741 38,509 40,401 34,971
Infrastructure, plant and equipment 20,680 18,494 16,626 15,461 15,050
Intangibles 119,170 111,388 96,972 88,415 96,210
Other 8,894 8,991 9,090 9,191 9,191
Total non-financial assets 198,000 182,614 161,197 153,468 155,422
Total assets 286,307 267,345 244,242 237,875 240,329
LIABILITIES          
Provisions          
Employees 49,189 49,079 49,658 52,027 52,027
Other 13,516 13,808 13,471 13,781 13,781
Total provisions 62,705 62,887 63,129 65,808 65,808
Payables          
Suppliers 51,988 49,208 49,206 48,823 48,823
Other 34,728 31,557 28,146 24,428 20,638
Total payables 86,716 80,765 77,352 73,251 69,461
Total liabilities 149,421 143,652 140,481 139,059 135,269
Net assets 136,886 123,693 103,761 98,816 105,060
EQUITY          
Contributed equity 232,149 262,681 278,936 304,172 329,407
Reserves 9,213 9,213 9,213 9,213 9,213
Retained surpluses or accumulated deficits (104,476) (148,201) (184,388) (214,569) (233,560)
Total equity 136,886 123,693 103,761 98,816 105,060
Current assets 97,201 93,722 92,135 93,598 94,098
Non-current assets 189,106 173,623 152,107 144,277 146,231
Current liabilities 76,058 69,663 66,210 63,421 61,131
Non-current liabilities 73,363 73,989 74,271 75,638 74,138

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 2,015 1,188 1,204 1,282 3,487
Appropriations 363,777 368,092 355,997 350,037 352,123
GST received 12,555 15,986 15,309 15,608 13,971
Other 1,767 835 840 865 865
Total cash received 380,114 386,101 373,350 367,792 370,446
Cash used          
Employees 237,653 237,389 231,681 230,582 235,658
Suppliers 133,265 131,572 125,404 122,197 120,527
GST Paid 12,555 15,986 15,309 15,608 13,971
Cash used other 40 - 250 - 2,290
Total cash used 383,513 384,947 372,644 368,387 372,446
Net cash from or (used by) operating activities (3,399) 1,154 706 (595) (2,000)
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 30,086 30,532 16,961 24,641 23,235
Total cash used 30,086 30,532 16,961 24,641 23,235
Net cash from or (used by) investing activities (30,086) (30,532) (16,961) (24,641) (23,235)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 29,724 30,532 16,255 25,236 25,235
Total cash received 29,724 30,532 16,255 25,236 25,235
Net cash from or (used by) financing activities 29,724 30,532 16,255 25,236 25,235
Net increase or (decrease) in cash held (3,761) 1,154 - - -
Cash at the beginning of the reporting period 8,777 5,016 6,170 6,170 6,170
Cash at the end of the reporting period 5,016 6,170 6,170 6,170 6,170

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement
(Budget year 2013‑14)
Retained
surpluses
$'000
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
Opening balance as at 1 July 2013          
Balance carried forward from previous period (104,476) 9,213 - 232,149 136,886
Adjusted opening balance (104,476) 9,213 - 232,149 136,886
Comprehensive income          
Surplus (deficit) for the period (43,725) - - - (43,725)
Total comprehensive income recognised directly in equity (43,725) - - - (43,725)
Transactions with owners          
Contributions by owners          
Appropriation (equity injection) - - - 11,791 11,791
Appropriation (departmental capital budget) - - - 18,741 18,741
Total transactions with owners - - - 30,532 30,532
Estimated closing balance as at 30 June 2014 (148,201) 9,213 - 262,681 123,693

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget (DCB) statement
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Bill 1 - DCB 15,790 18,741 10,305 24,795 25,235
Equity injections - Bill 2 13,934 11,791 5,950 441 -
Total new capital appropriations 29,724 30,532 16,255 25,236 25,235
Provided for:          
Purchase of non-financial assets 29,724 30,532 16,223 24,641 23,235
Other items - - 32 595 2,000
Total Items 29,724 30,532 16,255 25,236 25,235
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations 12,946 11,791 5,950 441 -
Funded by capital appropriation - DCB 15,750 18,741 10,023 24,200 23,235
Funded internally from departmental resources 1,390 - 988 - -
TOTAL 30,086 30,532 16,961 24,641 23,235
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 30,086 30,532 16,961 24,641 23,235
Total cash used to acquire assets 30,086 30,532 16,961 24,641 23,235

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
Buildings
$'000
Other
infrastructure,
plant and
equipment
$'000
Intangibles
$'000
Total
$'000
As at 1 July 2013        
Gross book value 92,426 55,282 238,098 385,806
Accumulated depreciation/amortisation and impairment 43,170 34,602 118,928 196,700
Opening net book balance 49,256 20,680 119,170 189,106
Capital asset additions        
By purchase - appropriation ordinary annual services 2,568 3,820 24,144 30,532
Total asset additions 2,568 3,820 24,144 30,532
Other movements        
Depreciation/amortisation expense 8,083 6,006 31,926 46,015
Total other movements 8,083 6,006 31,926 46,015
As at 30 June 2014        
Gross book value 94,994 59,102 262,242 416,338
Accumulated depreciation/amortisation and impairment 51,253 40,608 150,854 242,715
Closing net book balance 43,741 18,494 111,388 173,623

Prepared on Australian Accounting Standards basis.

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT          
Grants 2,566 3,551 3,573 3,605 3,640
Write down and impairment of assets 35,607 36,000 36,399 36,804 37,213
Interest expense 19,610 - - - 7,567
Supply of goods and services expense - 2,000 2,269 2,545 596
Other 50,996 55,433 60,618 62,117 56,731
Total expenses administered on behalf of government 108,779 96,984 102,859 105,071 105,747
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Non-taxation revenue          
Other sources of non-taxation revenues 1,071,117 835,360 855,230 874,770 890,018
Total non-taxation revenue 1,071,117 835,360 855,230 874,770 890,018
Total own-source revenues administered on behalf of Government on behalf of government 1,071,117 835,360 855,230 874,770 890,018
Total own-sourced income administered on behalf of Government 1,071,117 835,360 855,230 874,770 890,018
Net Cost of (contribution by) services (962,338) (738,376) (752,371) (769,699) (784,271)
Surplus (Deficit) 962,338 738,376 752,371 769,699 784,271

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)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT          
Financial assets          
Cash and cash equivalents 3,410 3,410 3,410 3,410 3,410
Receivables 101,397 102,024 100,826 99,526 98,160
Total assets administered on behalf of government 104,807 105,434 104,236 102,936 101,570
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT          
Payables          
Suppliers 761 761 761 761 761
Other payables 347,648 213,602 138,945 98,028 79,086
Total liabilities administered on behalf of government 348,409 214,363 139,706 98,789 79,847
Net assets/(liabilities) (243,602) (108,929) (35,470) 4,147 21,723

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash received          
Net GST received 324 323 325 328 331
Other 1,338,685 814,580 830,690 845,910 836,180
Total cash received 1,339,009 814,903 831,015 846,238 836,511
Cash used          
Grants 2,566 3,551 3,573 3,605 3,640
Other 37,098 208,001 149,670 114,168 67,644
Net GST paid 324 323 325 328 331
Total cash used 39,988 211,875 153,568 118,101 71,615
Net cash from or (used by) operating activities 1,299,021 603,028 677,447 728,137 764,896
FINANCING ACTIVITIES          
Cash received          
Cash from Official Public Account 68,380 218,552 159,243 123,773 95,275
Total cash received 68,380 218,552 159,243 123,773 95,275
Cash used          
Cash to Official Public Account 1,365,364 821,580 836,690 851,910 860,171
Total cash used 1,365,364 821,580 836,690 851,910 860,171
Net cash from or (used by) financing activities (1,296,984) (603,028) (677,447) (728,137) (764,896)
Net increase or (decrease) in cash held 2,037 - - - -
Cash at beginning of reporting period 1,373 3,410 3,410 3,410 3,410
Cash at end of reporting period 3,410 3,410 3,410 3,410 3,410

Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared on an Australian Accounting Standards basis.

Budgeted agency 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 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.

Administered items are revenues, expenses, assets and liabilities that are managed by an agency 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 programs 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 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 2001 fees and charges, and collections of unclaimed monies under the Banking Act 1959, the Life Insurance Act 1995 and the Corporations Act 2001.

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 2001 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 1959 unclaimed monies, Life Insurance Act 1995 unclaimed monies and Corporations Act 2001 unclaimed monies is transferred to the OPA when received.