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Corporations and Markets Advisory Committee

Date

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: Informed decisions by Government on issues relating to corporations regulation and financial products, services and markets through independent and expert advice

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.