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.
| 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
| 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.
| 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.
| 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.
| 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.
| 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
| 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.
| 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.
| 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.
| 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.
| 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.
| 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.
| 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.
| 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.
| 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.