Portfolio Budget Statements 2004-2005

The following budgeted departmental financial statements and administered notes for the Department of the Environment and Heritage are presented in this section. Information from the following budgeted financial statements and administered notes, forms part of the financial statements that will appear in the Department of the Environment and Heritage's 2004-2005 annual report, and is also required as input into the Whole of Government Accounts.

Analysis of Budgeted Financial Statements

An analysis of the Department's budgeted financial statements, as reflected in the Department's budgeted departmental financial statements and administered schedules for 2004-05, is provided below.

Budgeted Departmental Statement of Financial Performance

Total revenue in 2004-05 is estimated to be $258.621 million, a net increase of $5.082 million from the 2003-04 estimated actual of $253.539 million. This is represented by an increase in revenues from Government of $10.537 million and a reduction in revenue from the sale of goods and services of $5.455 million.

Revenues from Government will increase by $10.537 million in 2004-05 due to increased funding for:

On 8 September 2003, Parliament passed a package of legislation which abolished the Australian Heritage Commission (AHC), replaced it with an Australian Heritage Council and incorporates a new heritage regime into the Environment Protection and Biodiversity Conservation Act 1999. These legislative changes have taken effect from the proclamation date of 1 January 2004. From this date the Department of the Environment and Heritage will administer the new heritage regimes.

Due to these changes, funding of $3.481 million has been appropriated to the Department in 2003-04 for the period 1 January to 30 June 2004. In 2004-05 $7.383 million will be appropriated to the Department, an increase of $3.902 million.

The Revenue from Government estimates also includes funds appropriated directly to the Department and transferred to the Director of National Parks (DNP). There is no direct appropriation from Government to the DNP. In 2004-05, funding of $36.0 million for DNP will be appropriated to the Department.

The reduction in sales of goods as services revenue (revenue from other sources) of $5.455 million reflects in part the completion of the Biofuels Market Barriers Study in 2003-04.

Total expenses are estimated to be $257.711 million in 2004-05, an increase of $5.032 million primarily due to the variations in Revenue from Government and revenue from the sales of goods and services as mentioned above.

Budgeted Departmental Statement of Financial Position

The Department's budgeted net asset position of $264.562 million in 2004-05 represents an increase of $4.950 million from the 2003-04 estimated actual of $259.612 million. The increase primarily relates to the reduction in liabilities at year-end relating to Antarctic Base restitution provisions.

Schedule of Budgeted Revenues and Expenses Administered on behalf of Government

Whilst the Schedule shows an overall reduction in Administered revenues in 2004-05, revenues have actually increased since the 2003-04 Budget mainly as a result of reforms to the provisions of the Ozone Protection Act 1989. Amendments are now reflected in Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 which allow an additional estimated $2.797 million to be collected in 2003-04 and additional estimated $8.330 million over the period 2004?05 to 2007-08. This includes additional taxation revenue from Import and Manufacture levies received under the Ozone Protection and Synthetic Greenhouse Gas(Import Levy) Act 1995 and the Ozone Protection and Synthetic Greenhouse Gas(Manufacture Levy) Act 1995.

The overall reduction in revenue relates to non-taxation sales of goods and services revenue fluctuating from year to year. This is mainly due to the biennial nature of revenue collected from fees for licence applications under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989.

Other sources of non-taxation revenue consists mainly of revenue collected under the Great Barrier Reef Marine Park Authority Environment Management Charge which is returned to the Official Public Account before being appropriated back to the Authority ($7.000 million in each of the years 2003-04 to 2007-08). This category of revenue also contains estimates relating to grant repayments from previous years under the Natural Heritage Trust of Australia returned to the Official Public Account ($1.100 million in each of the years 2003-04 to 2007-08).

Administered expenses have increased by $58.388 million in 2004?05 primarily due to an increase in the level of grant expenses for the Trust. Administered grant expenses relate to grant payments to non-profit institutions, related entities and state, territory and local governments and other specific grant programmes including grants under the Trust. Supplier expenses relate to general provision of goods and rendering of services for projects and grants administered under the Trust and the Ozone Protection and Synthetic Greenhouse Gas Account.

Schedule of Budgeted Assets and Liabilities Administered on behalf of Government

The principle Administered assets comprise the Department's administered investments relating to the portfolio's statutory authorities. The schedule varies little from year to year.

Schedule of Budgeted Administered Cash Flows

Cash received from the Official Public Account represents receipts of administered appropriations. This revenue is no longer reported as administered revenue as a result of changed requirements under the Finance Minister's Orders in 2001-02.

Departmental Financial Statements

Budgeted Departmental Statement of Financial Performance

This statement provides a picture of the expected financial results for the Department by identifying full accrual expenses and revenues and highlights whether the Department is operating at a sustainable level.

Budgeted Departmental Statement of Financial Position

This statement shows the financial position of the Department. It helps decision makers to track the management of the Department's assets and liabilities.

Budgeted Departmental Statement of Cash Flows

Budgeted cash flows, as reflected in the statement of 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.

Departmental Capital Budget Statement

Shows all planned departmental capital expenditure (capital expenditure on non-financial assets), whether funded either through capital appropriations for additional equity or borrowings, or from funds from internal sources.

Departmental Non-financial Assets - Summary of Movement

Shows budgeted acquisitions and disposals of non-financial assets during the budget year.

Shedule of Administered Activity

Schedule of Budgeted Revenues and Expenses Administered on behalf of Government

This schedule identifies the main revenues and expenses administered on behalf of the Government except revenue from administered appropriations. As a result of new requirements under the Finance Minister's Orders (FMO) in 2001-02, the receipt of administered appropriations from the Official Public Account is no longer reported as administered revenue. Under the new FMOs only transactions external to the Commonwealth are reported as revenue.

Schedule of Budgeted Assets and Liabilities Administered on behalf of Government

This schedule shows the assets and liabilities administered on behalf of the Government.

Schedule of Budgeted Administered Cash Flows

Schedule of Administered Capital Budget

Schedule of Administered Non-financial Assets - Summary of Movement

This schedule discloses details of movements in administered non-financial assets.

TABLE 3.1 BUDGETED DEPARTMENTAL STATEMENT OF FINANCIAL PERFORMANCE
(for the period ended 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000
REVENUES FROM ORDINARY ACTIVITIES
Revenues from Government	2	222,143	232,680	237,751	242,010	227,857
Sales of goods and services	3	31,356	25,901	23,303	22,697	6,769
Other		40	40	40	40	40
Total revenues from ordinary activities		253,539	258,621	261,094	264,747	234,666

EXPENSES FROM ORDINARY
ACTIVITIES (excluding borrowing costs expense)
Employees		92,400	93,938	96,662	97,284	86,910
Suppliers		89,698	92,859	90,609	92,346	81,517
Grants	4	46,912	46,927	48,715	50,000	42,141
Depreciation and amortisation		23,375	23,745	23,945	23,945	23,945
Write-down of assets		68	68	68	68	68
Other		26	20	20	20	20
Total expenses from ordinary activities (excluding borrowing costs expense)		252,479	257,557	260,019	263,663	234,601
Borrowing cost expense		200	154	105	54	65
Net Surplus or (deficit) from ordinary activities		860	910	970	1,030	0
Gain or loss on extraordinary items		0	0	0	0	0
Net Surplus or (deficit) attributable to the Commonwealth		860	910	970	1,030	0
Net credit (Debit) to asset revaluation reserve		4,040	4,040	4,040	4,040	0
Total revenues, expenses and valuation adjustments attributable to members of the parent entity and recognised directly in equity		4,900	4,950	5,010	5,070	0

TABLE 3.2 BUDGETED DEPARTMENTAL STATEMENT OF FINANCIAL POSITION
(as at 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000
ASSETS
Financial Assets
Cash		2,630	5,981	11,750	17,398	17,382
Receivables		12,416	13,258	14,190	15,100	39,045
Accrued revenues		2,986	3,000	3,014	3,028	3,028
Other		30	30	30	30	30
Total financial assets		18,062	22,269	28,984	35,556	59,485

Non-financial assets
Land and buildings		200,194	196,314	192,434	188,554	177,793
Infrastructure, plant and equipment		105,877	105,687	103,297	100,907	88,828
Inventories		8,002	8,301	8,438	8,638	8,638
Intangibles		8,463	7,991	7,389	6,787	5,682
Other		2,403	2,404	2,403	2,403	2,403
Total Non-financial assets		324,939	320,697	313,961	307,289	283,344

Total Assets		343,001	342,966	342,945	342,845	342,829

LIABILITIES
Interest bearing liabilities
Loans		3,974	3,065	2,102	1,082	1,082
Other		846	846	846	846	846
Total debt		4,820	3,911	2,948	1,928	1,928

Provisions
Employees		30,141	30,705	31,295	31,828	31,828
Other		38,412	33,827	29,227	24,627	24,627
Total Provisions		68,553	64,532	60,522	56,455	56,455

Payables
Suppliers		8,677	8,677	8,677	8,677	8,677
Other		1,339	1,284	1,226	1,143	1,127
Total Payables		10,016	9,961	9,903	9,820	9,804

Total Liabilities		83,389	78,404	73,373	68,203	68,187

EQUITY
Parent entity Interest
Contributed equity		14,446	14,446	14,446	14,446	14,446
Reserves		133,048	137,088	141,128	145,168	145,168
Retained surpluses or accumulated deficits		112,118	113,028	113,998	115,028	115,028
Total parent entity interest
Total equity		259,612	264,562	269,572	274,642	274,642


Total assets and liabilities by maturity
Current liabilities		21,537	21,898	22,289	22,659	22,643
Non-current liabilities		61,852	56,506	51,084	45,544	45,544
Current assets		26,064	30,570	37,422	44,194	68,123
Non-current assets		316,937	312,396	305,523	298,651	274,706

TABLE 3.3 BUDGETED DEPARTMENTAL STATEMENT OF CASH FLOWS
(for the period ended 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
OPERATING ACTIVITIES		$'000	$'000	$'000	$'000	$'000
Cash received
Appropriations for outputs		235,869	232,160	237,231	241,490	204,202
Sales of goods and services	3	30,863	25,565	22,877	22,272	22,272
Other		3,157	3,476	2,976	2,976	2,976
Total cash received		269,889	261,201	263,084	266,738	213,657

Cash Used
Employees		93,173	93,374	96,072	96,751	86,910
Suppliers		95,657	97,819	95,423	97,228	81,553
Grants	4	46,912	46,927	48,715	50,000	42,141
Interest		200	154	105	54	65
Other		3,586	3,436	2,936	2,936	2,936
Total cash used		239,528	241,710	243,251	246,969	213,605

Net cash from operating activities		30,361	19,491	19,833	19,769	52

INVESTING ACTIVITIES
Cash Received
Proceeds from sale of property, plant		0	0	0	0	0
and equipment		0	0	0	0	0
Total Cash Received		0	0	0	0	0

Cash used
Purchase of property, plant and equipment		23,171	15,163	13,033	13,033	0
Other		68	68	68	68	68
Total cash used		23,239	15,231	13,101	13,101	68

NET CASH FROM INVESTING ACTIVITIES		(23,239)	(15,231)	(13,101)	(13,101)	(68)

FINANCING ACTIVITIES

Cash Received
Proceeds from debt		0	0	0	0	0
Proceeds from issuing equity instruments		0	0	0	0	0
Total Cash Received		0	0	0	0	0

Cash Used
Repayment of debt	5	857	909	963	1,020	0
Other		7,884	0	0	0	0
Total Cash Used		8,741	909	963	1,020	0

NET CASH FROM FINANCING ACTIVITIES		(8,741)	(909)	(963)	(1,020)	0

Net increase/decrease in cash held		(1,619)	3,351	5,769	5,648	(16)

Cash at the beginning of the reporting period		4,249	2,630	5,981	11,750	17,398
Cash at the end of the reporting period		2,630	5,981	11,750	17,398	17,382

TABLE 3.4 DEPARTMENTAL CAPITAL BUDGET STATEMENT
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000
Capital appropriations
Total equity injections		4,333
Total loans

Represented by:
Purchase of non-current assets
Other		4,333

Purchase of non-current assets
Funded by capital appropriations
Funded internally by departmental resources		23,171	15,163	13,033	13,033	0

TABLE 3.5 DEPARTMENTAL NON-FINANCIAL ASSETS
SUMMARY OF MOVEMENT (BUDGET YEAR 2004-05)
			Other
			Infrastruc	Heritage
			Plant and	and cultural	Computer	Other
	Land	Buildings	Equipment	assets	software	intangibles	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Carrying amount at the start of the year	1,008	199,185	105,877	0	8,433	31		314,534
Additions *		3,700	10,883		580			15,163
Disposals
Revaluation Increments	26	3,155	806		52	1		4,040
Recoverable Amount Write-Downs
Net Transfers free of Charge
Depreciation/Amortisation Expense		10,760	11,879		1,089	17		23,745
Write-off of Assets
Carrying amount at the end of the year	1,034	195,280	105,687	0	7,976	15		309,992

* TOTAL ADDITIONS
Self funded		3,700	10,883		580		15,163
TOTAL		3,700	10,883		580		15,163

TABLE 3.6 SCHEDULE OF BUDGETED REVENUES AND EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
(for the period ended 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000
Revenues
Taxation		1,322	1,414	1,414	1,414	1,414
Non-taxation
Revenues from Government		0	0	0	0	0
Sales of goods and services		2,377	880	1,880	880	1,826
Interest		6	5	4	3	1
Other sources of non-taxation revenues		8,600	8,600	8,600	8,600	8,600
Total non-taxation		12,305	10,899	11,898	10,897	11,841
Total revenues administered on behalf of the Government		12,305	10,899	11,898	10,897	11,841

Expenses
Grants		222,254	286,496	278,897	263,156	263,272
Suppliers		40,000	40,000	40,000	40,000	40,000
Other		8,724	2,870	2,870	2,870	2,870
Total expenses administered on behalf of the Government		270,978	329,366	321,767	306,026	306,142

TABLE 3.7 SCHEDULE OF BUDGETED ASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
(as at 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000
ASSETS
Financial Assets
Cash		1	1	1	1	1
Receivables		3,233	3,225	3,215	3,204	3,195
Investments		114,136	114,136	114,136	114,136	114,136
Accrued revenues		151	151	151	151	151
Total financial assets		117,521	117,513	117,503	117,492	117,483

Non-financial assets
Land and Buildings		4,750	4,750	4,750	4,750	4,750
Infrastructure, plant and equipment		1,271	1,271	1,271	1,271	1,271
Other		460	460	460	460	460
Total Non-financial assets		6,481	6,481	6,481	6,481	6,481

Total Assets Administered on behalf of the Government		124,002	123,994	123,984	123,973	123,964

LIABILITIES
Provisions
Suppliers		0	0	0	0	0
Grants		0	0	0	0	0
Other		0	0	0	0	0
Total Provisions		0	0	0	0	0

Payables
Suppliers		1,586	1,586	1,586	1,586	1,586
Grants		11,914	11,914	11,914	11,914	11,914
Other		2,818	2,818	2,818	2,818	2,818
Total Payables		16,318	16,318	16,318	16,318	16,318
Total Liabilities Administered on behalf of the Government		16,318	16,318	16,318	16,318	16,318

TABLE 3.8 SCHEDULE OF BUDGETED ADMINISTERED CASH FLOWS
(for the period ended 30 June 2005)
		Estimated	Budget	FORWARD
		Actual	Estimate	ESTIMATES
	Note	2003-04	2004-05	2005-06	2006-07	2007-08
		$'000	$'000	$'000	$'000	$'000

OPERATING ACTIVITIES
Cash received
Sales of goods and services		2,377	880	1,880	880	1,826
Interest		6	5	4	3	1
Cash from Official Public Account		270,978	329,366	321,767	306,026	306,142
Other		10,368	10,460	10,460	10,460	10,471
Total cash received		283,729	340,711	334,111	317,369	318,440

Cash Used
Suppliers		40,000	40,000	40,000	40,000	0
Grants		222,254	286,496	278,897	263,156	303,272
Cash to Official Public Account		12,308	10,903	11,904	10,904	11,850
Other		9,174	3,320	3,320	3,320	3,327
Total cash used		283,736	340,719	334,121	317,380	318,449

Net cash from operating activities		(7)	(8)	(10)	(11)	(9)

INVESTING ACTIVITIES
Cash Received		7	8	10	11	9
Other		7	8	10	11	9
Total Cash Received

Cash Used
Purchase of new assets		0	0	0	0	0
Total cash used		0	0	0	0	0

Net cash from investing activities		7	8	10	11	9

FINANCING ACTIVITIES
Cash Received
Other		0	0	0	0	0
Total Cash Received		0	0	0	0	0

Cash Used
Other		0	0	0	0	0
Total cash used		0	0	0	0	0

Net cash from financing activities		0	0	0	0	0

Net increase/decrease in cash held		0	0	0	0	0

Cash at the beginning of the reporting period		1	1	1	1	1
Cash at the end of the reporting period		1	1	1	1	1

TABLE 3.9 SCHEDULE OF ADMINISTERED CAPITAL BUDGET
The Department of the Environment and Heritage has not been appropriated any Administered Capital in 2004-05.

TABLE 3.10 SCHEDULE OF ADMINISTERED NON-FINANCIAL ASSETS - SUMMARY OF MOVEMENT (BUDGET YEAR 2004-05)
			Other
			Infrastruc	Heritage
			Plant and	and cultural	Computer	Other
	Land	Buildings	Equipment	assets	software	intangibles	Total
	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Carrying amount at the start of the year	0	4,750	1,271	0	0	0	6,021
Additions
Disposals
Revaluation Increments
Recoverable Amount Write-Downs
Net Transfers free of Charge
Depreciation/Amortisation Expense
Write-off of Assets
Carrying amount at the end of the year	0	4,750	1,271	0	0	0	6,021

Notes to the Financial Statements

1. General notes on accrual budgeting framework

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 over which agencies do not have control (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.

Under the Australian Government's accrual budgeting framework, separate annual appropriations are provided for:

Special appropriations fund the majority of payments from the Consolidated Revenue Fund (especially those that are entitlement driven or involve transfers to state governments).

Each Commonwealth Department is required to show an administered investment in each Commonwealth Authority and Company (CAC) Act 1997 entity within their portfolio. These administered investments should be valued at the Commonwealth's ownership interest in the net assets of those CAC entities, fixed at a notional acquisition date of 30 June 1997.

From 1 July 2002 Commonwealth agencies and authorities are required to use either the cost basis or the fair value basis to measure property, plant and equipment. The shift from the deprival method of valuation to fair value should occur gradually over a three-year period. Fair value essentially reflects the current market value of an asset. See guidance from the Department of Finance and Administration on how to calculate fair value.

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