Corporations and Markets Advisory Committee

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Corporations and Markets Advisory Committee (CAMAC) is constituted under Part 9 of the Australian Securities and Investments Commission Act 2001 (ASIC Act). Its functions, as reflected in paragraph 1(1)(c) and section 148 of the ASIC Act, are to provide informed and expert advice to the Government about corporate, financial product and financial market matters, on its own initiative or when requested by the Minister. CAMAC seeks to promote a sound and effective regulatory environment through the provision of timely advice to the Minister about relevant policy and law design issues.

CAMAC's members are appointed by the Minister following consultation with State and Territory Governments. CAMAC is supported by specialist legal advice from its Legal Committee and by a full‑time executive located in Sydney.

In 2013‑14, CAMAC will settle its report to the Government on the annual general meeting. CAMAC may also be in a position to settle its report on managed investment schemes.

CAMAC will also respond to other requests for advice from the Government and keep under consideration other areas that may be suitable for review.

1.2 Agency resource statement

Table 1.1 shows the total resources for CAMAC.

Table 1.1: Corporations and Markets Advisory Committee 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	758	2	-		758	-
Departmental appropriation3	-		1,030	1	1,030	1,001
Total net resourcing for CAMAC	758		1,030		1,788	1,001

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

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

3. Includes $0.04 million in 2013‑14 for the departmental capital budget (also refer to Table 3.2.5).

1.3 Budget measures

Budget measures relating to CAMAC are summarised below.

Table 1.2: Corporations and Markets Advisory Committee 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
Targeted savings — public service efficiencies1	1.1	(5)	(7)	(6)	(5)	(5)
Total expense measures		(5)	(7)	(6)	(5)	(5)

1. This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 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.

CAMAC's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of CAMAC.

Outcome 1 strategy

To achieve its outcome, CAMAC will:

• conduct thorough research on matters under review, canvassing relevant law and policy considerations, with a view to preparing discussion papers where appropriate;
• conduct roundtable discussions with interested parties where appropriate;
• consider submissions on discussion papers; and
• develop recommendations for inclusion in reports to the Government.

Outcome expense statement

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

Table 2.1: Budgeted Expenses for Outcome 1

Outcome 1: Informed decisions by Government on issuesrelating to corporations regulation and financial products, services and markets through independent and expert advice	2012‑13 Estimated actual expenses $'000	2013 ‑14 Estimated expenses $'000
Program 1.1: Corporations and Markets Advisory Committee
Departmental expenses
Departmental appropriation	985	986
Expenses not requiring appropriation in the budget year	31	31
Total expenses for Outcome 1	1,016	1,017
Average staffing level (number)	2012‑13	2013‑14
	3	3

Contributions to Outcome 1

Program 1.1: Corporations and Markets Advisory Committee

Program objective

CAMAC focuses on legislation related to corporations and financial markets. Its operations involve, either on its own initiative or at the request of the Government, the conducting of major policy reviews, which may include analysing procedural and other issues in current practice. CAMAC:

• seeks to stimulate and lead public debate on the enhancement of standards for corporations and participants in financial markets, and proposes regulatory reform where necessary; and
• builds on the public consultation process by thoroughly reviewing all submissions on discussion papers and providing timely advice to the Government in the form of CAMAC reports, containing detailed law reform recommendations, where appropriate.

Program expenses

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

Table 2.2: 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 departmental expenses:
Departmental items	1,016	1,017	1,024	1,033	1,043
Total departmental expenses	1,016	1,017	1,024	1,033	1,043

Program deliverables

CAMAC's deliverables are the discussion papers and reports that it publishes on matters as they arise.

Program key performance indicators

CAMAC's key performance indicator is:

• timely advice to the Minister in the form of CAMAC reports and other papers.

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, program expenses and special accounts.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

CAMAC does not have any administered funds.

3.1.2 Special accounts

CAMAC does not have any special accounts.

3.1.3 Australian Government Indigenous Expenditure

CAMAC does not have any Australian Government Indigenous Expenditure.

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

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

CAMAC is budgeting for a break‑even result for 2013‑14 and the forward estimates. This break‑even result will occur after adding back non‑appropriated depreciation and amortisation expenses.

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	650	650	650	652	673
Supplier	350	351	358	365	354
Depreciation and amortisation	15	15	15	15	15
Finance costs	1	1	1	1	1
Total expenses	1,016	1,017	1,024	1,033	1,043
LESS:
OWN SOURCE INCOME
Gains
Other	16	16	16	16	16
Total gains	16	16	16	16	16
Total own-source income	16	16	16	16	16
Net cost of (contribution by) services	1,000	1,001	1,008	1,017	1,027
Appropriation revenue	985	986	993	1,002	1,012
Surplus (deficit) attributable to the Australian Government	(15)	(15)	(15)	(15)	(15)
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	-	-	-	-	-
plus depreciation/amortisation expenses previously funded through revenue appropriations	(15)	(15)	(15)	(15)	(15)
Total Comprehensive Income (loss) - as per the Statement of Comprehensive Income	(15)	(15)	(15)	(15)	(15)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)

	Estimated actual 2012&# 8209;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	66	66	66	66	66
Trade and other receivables	765	723	732	732	732
Other	8	8	8	8	8
Total financial assets	839	797	806	806	806
Non-financial assets
Land and buildings	24	50	32	21	20
Infrastructure, plant and equipment	19	22	25	28	31
Total non-financial assets	43	72	57	49	51
Total assets	882	869	863	855	857
LIABILITIES
Provisions
Employees	383	393	403	403	403
Total provisions	383	393	403	403	403
Payables
Suppliers	28	21	19	19	19
Other	45	-	1	1	1
Total payables	73	21	20	20	20
Total liabilities	456	414	423	423	423
Net assets	426	455	440	432	434
EQUITY
Contributed equity	56	100	100	107	124
Reserves	23	23	23	23	23
Retained surpluses or accumulated deficits	347	332	317	302	287
Total equity	426	455	440	432	434
Current assets	839	797	806	806	806
Non-current assets	43	72	57	49	51
Current liabilities	239	196	204	203	203
Non-current liabilities	217	218	219	220	220

Prepared on Australian Accounting Standards basis.

39

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	39	39	41	39	39
Appropriations	985	1,028	1,001	1,010	1,012
Total cash received	1,024	1,067	1,042	1,049	1,051
Cash used
Employees	650	650	650	652	673
Suppliers	334	378	353	358	339
Other	40	39	39	39
Total cash used	1,024	1,067	1,042	1,049	1,051
Net cash from or (used by) operating activities	-	-	-	-	-
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment	16	44	-	7	17
Total cash used	16	44	-	7	17
Net cash from or (used by) investing activities	(16)	(44)	-	(7)	(17)
FINANCING ACTIVITIES
Cash received
Capital Injections	16	44	-	7	17
Total cash received	16	44	-	7	17
Net cash from or (used by) financing activities	16	44	-	7	17
Net increase or (decrease) in cash held	-	-	-	-	-
Cash at the beginning of the reporting period	66	66	66	66	66
Cash at the end of the reporting period	66	66	66	66	66

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	347	23	-	56	426
Adjusted opening balance	347	23	-	56	426
Comprehensive income
Surplus (deficit) for the period	(15)	-	-	-	(15)
Total comprehensive income recognised directly in equity	(15)	-	-	-	(15)
Transactions with owners
Contributions by owners
Appropriation (departmental capital budget)	-	-	-	44	44
Total transaction with owners	-	-	-	44	44
Estimated closing balanc eas at 30 June 2014	332	23	-	100	455

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	16	44	-	7	17
Total new capital appropriations	16	44	-	7	17
Provided for:
Purchase of non-financial assets	16	44	-	7	17
Total Items	16	44	-	7	17
PURCHASE OF NON-FINANCIAL ASSETS
Funded by capital appropriation - DCB	16	44	-	7	17
TOTAL	16	44	-	7	17
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE
Total purchases	16	44	-	7	17
Total cash used to acquire assets	16	44	-	7	17

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	L&B, IP&E held for sale $'000	Total $'000
As at 1 July 2013
Gross book value	19	46	-	-	65
Accumulated depreciation/amortisation and impairment	(5)	27	-	-	22
Opening net book balance	24	19	-	-	43
Capital asset additions
By purchase - appropriation ordinary annual services	27	17	-	-	44
Total asset additions	27	17	-	-	44
Other movements
Depreciation/amortisation expense	1	14	-	-	15
Total other movements	1	14	-	-	15
As at 30 June 2014
Gross book value	46	63	-	-	109
Accumulated depreciation/amortisation and impairment	-	41	-	-	37
Closing net book balance	46	22	-	-	72

Prepared on Australian Accounting Standards basis.