Section 1: Agency overview and resources
1.1 Strategic direction statement
The Royal Australian Mint (the Mint) is a prescribed agency operating under the Financial Management and Accountability Act 1997. The Mint's vision is to achieve excellence as a sustainable world class Mint. Its goal is to meet the circulating coin and collector coin needs of Australia and selected international markets. The Mint is also the custodian of Australia's National Coin Collection and provides educational and tourist services to local and overseas residents.
Over the next three years, the Mint's key strategies include:
- further development of in‑house capability;
- improve relationships with suppliers and ensure customer expectations are met by delivering quality products in‑full and on‑time;
- continue to recognise and demonstrate the importance of staff;
- maintain workplace health and safety, and environmental conditions; and
- continue to build brand recognition.
As the sole supplier of Australia's circulating coin requirements, the Mint is responsible for the continuous review of Australian coinage and for providing advice to the Treasury and the Government on coin related issues.
In 2013‑14, the Mint will continue to target revenue growth opportunities for both numismatic and international circulating coin, particularly in the Pacific and neighbouring countries.
To ensure that Commonwealth resources are appropriately deployed, the Mint will implement the lean philosophy across the organisation to improve its operational efficiency and drive improvement. To deliver a safe and secure environment, the Mint will continue to invest in health and safety for its employees and maintain a high level of security.
The Mint will increase engagement with its employees to empower and motivate staff, invest in health and wellbeing activities, and conduct mentoring and leadership programs.
1.2 Agency resource statement
Table 1.1 shows the total resources for the Mint.
| 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 |
|
|---|---|---|---|---|---|---|
| Other services | ||||||
| Special accounts | ||||||
| Opening balance | 59,274 | 1 | - | 59,274 | - | |
| Non-appropriation receipts to special accounts | - | 181,953 | 181,953 | 176,987 | ||
| Total special account | 59,274 | 181,953 | 241,227 | 176,987 | ||
| Total net resourcing for the Mint | 59,274 | 181,953 | 241,227 | 176,987 |
1. Estimated opening balance for special accounts. For further detail on special accounts see Table 3.1.2.
1.3 Budget measures
The Mint does not have any budget measures for 2013‑14.
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.
The Mint'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 the Mint.
Outcome 1: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products
Outcome 1 strategy
To achieve this outcome the Mint will continue to:
- produce cost efficient circulating coins for Australia;
- produce appropriate circulating coins for foreign jurisdictions under commercial arrangements;
- maintain an appropriate level of Australian circulating coin;
- provide advice to the Treasury and government on coin related issues; and
- develop and produce high quality profitable numismatic products.
As the sole producer of Australian circulating coin and custodian of the National Coin Collection, the following activities are an adjunct to the key strategies outlined above:
- delivering an education program through the Mint's visitors centre;
- promoting public understanding of the cultural and historical significance of coins; and
- maintaining Australia's National Coin Collection.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1.
| Outcome 1: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products | 2012‑13 Estimated actual expenses $'000 |
2013 ‑14 Estimated expenses $'000 |
|---|---|---|
| Program 1.1: Royal Australian Mint | ||
| Administered expenses | ||
| Special accounts | 56,845 | 54,026 |
| Departmental expenses | ||
| Special accounts | 94,557 | 98,397 |
| Total expenses for Outcome 1 | 151,402 | 152,423 |
| 2012‑13 | 2013‑14 | |
| Averag e staffing level (number) |
217 | 241 |
Contributions to Outcome 1
Program 1.1: Royal Australian Mint
Program objective
To produce and distribute circulating coins, collector coins and minted like products to meet the demands of the Australian economy, collectors and foreign countries.
Program expenses
The costs of production, warehousing and distribution of minted circulating coin are dependent on the demand for circulating coin by Australian commercial banks and foreign jurisdictions whilst costs for numismatic products are driven by orders received from collectors.
| 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 |
|
|---|---|---|---|---|---|
| Administered items | |||||
| Special account | |||||
| Minting and Coinage Special Account | 56,845 | 54,026 | 54,092 | 54,874 | 55,829 |
| Departmental items | |||||
| Special account | |||||
| Minting and Coinage Special Account | 94,557 | 98,397 | 101,820 | 108,046 | 113,397 |
| Total program expenses | 151,402 | 152,423 | 155,912 | 162,920 | 169,226 |
Program deliverables
The Mint has the following deliverables:
- produce Australian circulating coins to meet the demands of the Australian community;
- maintain minted Australian circulating coin inventory;
- produce circulating coins to meet demand from foreign countries;
- produce numismatic products to meet Australian and overseas demand;
- maintain Australia's National Coin Collection;
- maintain the Mint's visitor gallery, including building and surrounds;
- provide an educational program to school students who visit the Mint; and
- promote public understanding about the cultural and historical significance of coins.
Program key performance indicators
The Mint has the following key performance indicators:
- produce and deliver Australian circulating coins in a cost effective and timely manner;
- foreign circulating coin sales meet or exceed cost of production;
- all numismatic sales meet or exceed cost of production;
- at least 95 per cent of numismatic orders placed are produced and delivered within contracted delivery time;
- rotate the display of Australia's National Coin Collection on a regular basis;
- maintenance of gallery and visitor centre to community standard;
- ensure that school student visitor programs align with relevant school curricula; and
- increase in visitor numbers to the gallery and visitor centre compared to prior year's actual visitor numbers.
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 2013‑14 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.
3.1 Explanatory tables
3.1.1 Movement of administered funds between years
The Mint does not have any movement of administered funds.
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 the Mint.
| 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 |
|
|---|---|---|---|---|---|---|
| Minting and Coinage Special Account | 1 | 59,274 | 181,953 | 177,789 | - | 63,438 |
| 55,296 | 176,987 | 173,009 | - | 59,274 | ||
| Total special accounts 2013‑14 Budget estimate | 59,274 | 181,953 | 177,789 | - | 63,438 | |
| Total special accounts 2012‑13 estimate actual | 55,296 | 176,987 | 173,009 | - | 59,274 |
3.1.3 Australian Government Indigenous Expenditure
The Mint does not have any Australian Government Indigenous Expenditure.
3.2 Budgeted financial statements
3.2.1 Differences in agency resourcing and financial statements
The Mint does not have any material differences between agency resourcing and financial statements.
3.2.2 Analysis of budgeted financial statements
There is a minor decrease in the anticipated operating results in 2013‑14 compared to 2012‑13 due to the Mint's investment in additional capability and capacity.
There is an increase in the estimated cash balances in the Mint's budgeted departmental statement of cash flows. This movement is due to a greater increase in receipts from supply of goods and services compared to expenditure.
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 | 18,660 | 23,257 | 23,594 | 24,302 | 25,031 |
| Supplier | 63,364 | 64,498 | 66,740 | 72,272 | 76,678 |
| Depreciation and amortisation | 5,127 | 4,004 | 4,848 | 4,834 | 5,050 |
| Finance costs | 4 | 1 | 1 | 1 | 1 |
| Other | 7,402 | 6,637 | 6,637 | 6,637 | 6,637 |
| Total expenses | 94,557 | 98,397 | 101,820 | 108,046 | 113,397 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Sale of goods and rendering of services | 90,624 | 94,521 | 97,852 | 104,424 | 109,354 |
| Interest | 350 | 350 | 600 | 600 | 600 |
| Other revenue | 7,461 | 6,733 | 6,733 | 6,733 | 6,733 |
| Total own-source income | 98,435 | 101,604 | 105,185 | 111,757 | 116,687 |
| Surplus (deficit) attributable to the Australian Government | 3,878 | 3,207 | 3,365 | 3,711 | 3,290 |
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 | 59,858 | 63,438 | 63,527 | 64,740 | 67,536 |
| Trade and other receivables | 9,106 | 9,797 | 13,177 | 16,731 | 20,005 |
| Tax assets | 1,081 | 1,081 | 1,081 | 1,081 | 1,081 |
| Total financial assets | 70,045 | 74,316 | 77,785 | 82,552 | 88,622 |
| Non-financial assets | |||||
| Infrastructure, plant and equipment | 44,518 | 44,545 | 44,434 | 43,967 | 41,055 |
| Heritage and cultural | 23,388 | 23,388 | 23,388 | 23,388 | 23,388 |
| Inventories | 30,971 | 30,973 | 30,973 | 30,973 | 30,973 |
| Intangibles | 1,073 | 1,559 | 1,807 | 1,473 | 1,868 |
| Other | 656 | 476 | 476 | 476 | 476 |
| Total non-financial assets | 100,606 | 100,941 | 101,078 | 100,277 | 97,760 |
| Total assets | 170,651 | 175,257 | 178,863 | 182,829 | 186,382 |
| LIABILITIES | |||||
| Provisions | |||||
| Employees | 6,729 | 8,273 | 8,521 | 8,776 | 9,039 |
| Total provisions | 6,729 | 8,273 | 8,521 | 8,776 | 9,039 |
| Payables | |||||
| Suppliers | 15,384 | 17,784 | 17,784 | 17,784 | 17,784 |
| Tax liabilities | 1,706 | 1,706 | 1,706 | 1,706 | 1,706 |
| Other | 12,638 | 12,570 | 12,570 | 12,570 | 12,570 |
| Total payables | 29,728 | 32,060 | 32,060 | 32,060 | 32,060 |
| Interest bearing liabilities | |||||
| Leases | 49 | 7 | - | - | - |
| Total interest bearing liabilities | 49 | 7 | - | - | - |
| Total liabilities | 36,506 | 40,340 | 40,581 | 40,836 | 41,099 |
| Net assets | 134,145 | 134,917 | 138,282 | 141,993 | 145,283 |
| EQUITY | |||||
| Contributed equity | 77,903 | 77,903 | 77,903 | 77,903 | 77,903 |
| Reserves | 25,679 | 25,679 | 25,679 | 25,679 | 25,679 |
| Retained surpluses or accumulated deficits | 30,563 | 31,335 | 34,700 | 38,411 | 41,701 |
| Total equity | 134,145 | 134,917 | 138,282 | 141,993 | 145,283 |
| Current assets | 100,591 | 104,684 | 108,153 | 112,920 | 118,990 |
| Non-current assets | 70,060 | 70,573 | 70,710 | 69,909 | 67,392 |
| Current liabilities | 34,674 | 38,285 | 38,489 | 38,707 | 38,930 |
| Non-current liabilities | 1,832 | 2,055 | 2,092 | 2,129 | 2,169 |
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 | 170,414 | 181,369 | 178,329 | 183,329 | 184,030 |
| Total cash received | 170,414 | 181,369 | 178,329 | 183,329 | 184,030 |
| Cash used | |||||
| Employees | 17,567 | 21,712 | 23,346 | 24,046 | 24,768 |
| Borrowing costs | 4 | 1 | 1 | 1 | 1 |
| Suppliers | 143,613 | 151,559 | 149,908 | 154,036 | 153,932 |
| Total cash used | 161,184 | 173,272 | 173,255 | 178,083 | 178,701 |
| Net cash from or (used by) operating activities | 9,230 | 8,097 | 5,074 | 5,246 | 5,329 |
| INVESTING ACTIVITIES | |||||
| Cash used | |||||
| Purchase of property, plant and equipment | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
| Total cash used | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
| Net cash from or (used by) investing activities | (4,125) | (4,517) | (4,985) | (4,033) | (2,533) |
| FINANCING ACTIVITIES | |||||
| Cash used | |||||
| Repayments of debt | - | - | - | - | - |
| Total cash used | - | - | - | - | - |
| Net cash from or (used by) financing activities | - | - | - | - | - |
| Net increase or (decrease) in cash held | 5,105 | 3,580 | 89 | 1,213 | 2,796 |
| Cash at the beginning of the reporting period | 54,753 | 59,858 | 63,438 | 63,527 | 64,740 |
| Cash at the end of the reporting period | 59,858 | 63,438 | 63,527 | 64,740 | 67,536 |
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 | 28,128 | 25,679 | - | 77,903 | 131,710 |
| Adjusted opening balance | 28,128 | 25,679 | - | 77,903 | 131,710 |
| Comprehensive income | |||||
| Surplus (deficit) for the period | 3,207 | - | - | - | 3,207 |
| Total comprehensive income recognised directly in equity | 3,207 | - | - | - | 3,207 |
| Estimated closing balance as at 30 June 2014 | 31,335 | 25,679 | - | 77,903 | 134,917 |
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 |
|
|---|---|---|---|---|---|
| PURCHASE OF NON-FINANCIAL ASSETS | |||||
| Funded internally from departmental resources | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
| TOTAL | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
| RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE | |||||
| Total purchases | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
| Total cash used to acquire assets | 4,125 | 4,517 | 4,985 | 4,033 | 2,533 |
Prepared on Australian Accounting Standards basis.
| Other infrastructure, plant and equipment $'000 |
Heritage and |
Intangibles $'000 |
Total $'000 |
|
|---|---|---|---|---|
| As at 1 July 2013 | ||||
| Gross book value | 55,903 | 23,388 | 7,343 | 86,634 |
| Accumulated depreciation/amortisation and impairment | 11,385 | - | 6,270 | 17,655 |
| Opening net book balance | 44,518 | 23,388 | 1,073 | 68,979 |
| Capital asset additions | ||||
| By purchase - other | 3,667 | - | 850 | 4,517 |
| Total additions | 3,667 | - | 850 | 4,517 |
| Other movements | ||||
| Depreciation/amortisation expense | 3,640 | - | 364 | 4,004 |
| Total other movements | 3,640 | - | 364 | 4,004 |
| As at 30 June 2014 | ||||
| Gross book value | 59,570 | 23,388 | 8,193 | 91,151 |
| Accumulated depreciation/amortisation and impairment | 15,025 | - | 6,634 | 21,659 |
| Closing net book balance | 44,545 | 23,388 | 1,559 | 69,492 |
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 | |||||
| Suppliers | 55,345 | 52,478 | 52,505 | 53,248 | 54,162 |
| Other | 1,500 | 1,548 | 1,587 | 1,626 | 1,667 |
| Total expenses administered on behalf of government | 56,845 | 54,026 | 54,092 | 54,874 | 55,829 |
| LESS: | |||||
| OWN-SOURCE INCOME | |||||
| Own-source revenue | |||||
| Non-taxation revenue | |||||
| Goods and services | 131,775 | 130,550 | 133,752 | 132,555 | 133,532 |
| Total non-taxation revenue | 131,775 | 130,550 | 133,752 | 132,555 | 133,532 |
| Total own-source revenues administered on behalf of Government on behalf of government | 131,775 | 130,550 | 133,752 | 132,555 | 133,532 |
| Total own-sourced income administered on behalf of Government | 131,775 | 130,550 | 133,752 | 132,555 | 133,532 |
| Net Cost of (contribution by) services | (74,930) | (76,524) | (79,660) | (77,681) | (77,703) |
| Surplus (Deficit) | 74,930 | 76,524 | 79,660 | 77,681 | 77,703 |
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 | |||||
| Receivables | 14,587 | 14,587 | 14,587 | 14,587 | 14,587 |
| Total financial assets | 14,587 | 14,587 | 14,587 | 14,587 | 14,587 |
| Non-financial assets | |||||
| Inventories | 22,558 | 22,558 | 22,558 | 22,558 | 22,558 |
| Total non-financial assets | 22,558 | 22,558 | 22,558 | 22,558 | 22,558 |
| Total assets administered on behalf of government | 37,145 | 37,145 | 37,145 | 37,145 | 37,145 |
| LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT | |||||
| Payables | |||||
| Suppliers | - | - | - | - | - |
| Total payables | - | - | - | - | - |
| Total liabilities administered on behalf of government | - | - | - | - | - |
| Net assets/(liabilities) | 37,145 | 37,145 | 37,145 | 37,145 | 37,145 |
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 | |||||
| Sales of goods and rendering of services (seigniorage) | 74,930 | 89,704 | 79,660 | 77,651 | 77,703 |
| Total cash received | 74,930 | 89,704 | 79,660 | 77,651 | 77,703 |
| Net cash from or (used by) operating activities | 74,930 | 89,704 | 79,660 | 77,651 | 77,703 |
| Net increase or (decrease) in cash held | 74,930 | 89,704 | 79,660 | 77,651 | 77,703 |
| Cash at beginning of reporting period | - | - | - | - | - |
| Cash to Official Public Account for - special accounts | 74,930 | 89,704 | 79,660 | 77,651 | 77,703 |
| Cash at end of reporting period | - | - | - | - | - |
Prepared on Australian Accounting Standards basis.
Table 3.2.10: Schedule of administered capital budget
The Mint has no administered capital budget.
Table 3.2.11: Schedule of asset movements — administered
The Mint has no administered asset movements.
3.2.4 Notes to the financial statements
Departmental
Basis of accounting
The Mint's budgeted statements have been prepared on an accrual basis, in accordance with the historical cost convention except for some assets and liabilities that are at valuation and in accordance with:
- the Australian Government's financial budgeting and reporting framework; and
- Australian Accounting Standards.
Budgeted departmental income statement
Revenues
Revenue is derived from the production of circulating coins, the sale of numismatic coins and coin like products. The amount of revenue earned in any one‑year is dependent upon the demand for such products by the Australian financial institutions and the coin collecting market.
Expenses
Employees
This includes wages and salaries, superannuation, provision for annual leave and long service leave.
Depreciation and amortisation
Depreciable assets are written off over their estimated useful lives, using the straight‑line method.
Other
Other expenses include the cost of goods sold.
Budgeted departmental balance sheet
Non‑financial assets
Inventory
Inventories held for resale are at the lower of cost and net realisable value. Work in progress and finished goods are brought to account to include direct costs and a portion of direct labour and overhead. All precious metals are purchased and brought to account at cost.
Provisions and payables
Employees
The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave, as all sick leave is non‑vesting.
The non‑current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows in respect of all employees.
Asset valuation
Commonwealth Government agencies are required to value property, plant and equipment and other infrastructure assets using the fair value method of valuation.
Administered
Seigniorage is collected by the Mint on behalf of the Commonwealth Government. Seigniorage represents the difference between the face value of the coinage sold to the Australian financial institutions and its cost of production to the Mint. Seigniorage is treated as an administered item within the Mint's administered budget statements.