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Key departmental publications, e.g. annual reports, budget papers and program guidelines are available in our online archive.

Much of the material listed on these archived web pages has been superseded, or served a particular purpose at a particular time. It may contain references to activities or policies that have no current application. Many archived documents may link to web pages that have moved or no longer exist, or may refer to other documents that are no longer available.

Portfolio Budget Statements 2003-2004

Environment and Heritage Portfolio
Budget Initiatives and Explanations of Appropriations 2003-2004
Budget Related Paper No. 1.7
Commonwealth of Australia 2003
ISSN 1448 - 1219 (Online), 1448 - 1200 (Print)

Part C - Agency Budget Statements (continued)
Department of the Environment and Heritage (continued)

Section 3 - Budgeted Financial Statements

Departmental Statements

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 2003-2004 annual report, and is also required as input into the Whole of Government Accounts.

Budgeted Departmental Statement of Financial Performance

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

On 12 September 2002 the Bureau of Meteorology became a prescribed agency under the Financial Management and Accountability Act 1997. As a result, the 2002-03 Estimated Actual in the Budgeted Departmental Statement of Financial Performance only reflect estimates for the Bureau for the period 1 July to 11 September 2002. As the Bureau of Meteorology will report as a separate entity from 12 September 2002, Budgeted Departmental Financial Statements can also be found at Part C, Section 3 for the agency, Commonwealth Bureau of Meteorology (refer page 188).

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.

Note to the Estimated Actual Column of the Departmental Statement of Financial Performance

Provides information about accruals and deferrals to assist in Parliamentary reviews.
Note: In accordance with advice from the Department of Finance and Administration this table is not required in the 2004-05 Portfolio Budget Statements.

Administered Schedules

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

This schedule shows cash flows administered on behalf of the Government.

Schedule of Administered Capital Budget

This schedule shows details of planned administered capital expenditure.

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 2004)
    Estimated Budget
FORWARD
    Actual Estimate
ESTIMATES
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
REVENUES FROM ORDINARY ACTIVITIES            
Revenues from Government 297,636 215,785 223,029 230,665 235,234
Sales of goods and services 3 27,359 19,997 20,013 19,749 19,342
Interest 4 1,094 0 0 0 0
Other   112 40 40 40 40
Total revenues from ordinary activities   326,201 235,822 243,082 250,454 254,616
             
EXPENSES FROM ORDINARY            
ACTIVITIES (excluding borrowing costs expense)          
Employees 5 105,388 85,640 88,413 89,768 90,166
Suppliers 5 93,460 76,060 83,596 89,499 90,133
Grants 6 66,313 49,612 46,367 46,278 49,407
Depreciation and amortisation 5 26,704 22,735 22,935 23,135 23,135
Write-down of assets   69 68 68 68 68
Other 5 812 612 612 612 612
Total expenses from ordinary activities (excluding borrowing costs expense)   292,746 234,727 241,991 249,360 253,521
Borrowing cost expense 7 286 235 181 124 65
Net Surplus or (deficit) from ordinary activities   33,169 860 910 970 1,030
Gain or loss on extraordinary items   0 0 0 0 0
Net Surplus or (deficit)   33,169 860 910 970 1,030
Capital User Charge Paid 1c (30,795) 0 0 0 0
Net surplus or (deficit) after CUC   2,374 860 910 970 1,030
Net Surplus or (deficit) attributable to the Commonwealth   2,374 860 910 970 1,030
Net credit (Debit) to asset revaluation reserve   5,239 4,040 4,040 4,040 4,040
Total revenues, expenses and valuation adjustments attributable to members of the parent entity and recognised directly in equity   7,613 4,900 4,950 5,010 5,070

TABLE 3.2 BUDGETED DEPARTMENTAL STATEMENT OF FINANCIAL POSITION
(as at 30 June 2004)
    Estimated Budget
FORWARD
    Actual Estimate
ESTIMATES
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
ASSETS            
Financial Assets            
Cash   43,593 41,987 45,376 51,145 56,793
Receivables   5,242 3,168 3,168 3,168 3,147
Accrued revenues   453 267 281 295 309
Other   30 30 30 30 30
Total financial assets   49,318 45,452 48,855 54,638 60,279
             
Non-financial assets            
Land and buildings   198,042 198,162 194,282 190,402 186,522
Infrastructure, plant and equipment   100,729 101,119 101,309 99,299 97,289
Inventories   8,146 8,058 8,362 8,500 8,700
Intangibles   4,916 4,744 4,572 4,400 4,228
Other   1,024 1,028 1,028 1,028 1,028
Total Non-financial assets   312,857 313,111 309,553 303,629 297,767
             
Total Assets   362,175 358,563 358,408 358,267 358,046
             
LIABILITIES            
Interest bearing liabilities            
Loans 7 4,831 3,974 3,065 2,102 1,082
Other   974 974 974 974 974
Total debt   5,805 4,948 4,039 3,076 2,056
             
Provisions            
Employees   29,606 26,587 27,031 27,501 27,913
Other   42,221 37,636 33,051 28,451 23,851
Total Provisions   71,827 64,223 60,082 55,952 51,764
             
Payables            
Suppliers   6,929 6,929 6,929 6,929 6,929
Other   337 286 231 173 90
Total Payables   7,266 7,215 7,160 7,102 7,019
             
Total Liabilities   84,898 76,386 71,281 66,130 60,839
             
EQUITY            
Parent entity Interest            
Contributed equity   14,446 14,446 14,446 14,446 14,446
Reserves   138,364 142,404 146,444 150,484 154,524
Retained surpluses or accumulated deficits   124,467 125,327 126,237 127,207 128,237
Total parent entity interest   277,277 282,177 287,127 292,137 297,207
Total equity   277,277 282,177 287,127 292,137 297,207
             
             
Total assets and liabilities by maturity            
Current liabilities   63,046 55,378 51,116 46,870 42,602
Non-current liabilities   21,852 21,008 20,165 19,260 18,237
Current assets   57,464 53,510 57,217 63,138 68,979
Non-current assets   304,711 305,053 301,191 295,129 289,067

TABLE 3.3 BUDGETED DEPARTMENTAL STATEMENT OF CASH FLOWS
(for the period ended 30 June 2004)
    Estimated Budget
FORWARD
    Actual Estimate
ESTIMATES
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
OPERATING ACTIVITIES   $'000 $'000 $'000 $'000 $'000
Cash received            
Appropriations for outputs   297,636 218,009 223,029 230,665 235,234
Sales of goods and services   34,530 20,179 19,999 19,735 19,328
Interest   1,094 0 0 0 0
Other   5,126 3,429 3,421 2,918 2,914
Total cash received   338,386 241,617 246,449 253,318 257,476
             
Cash Used            
Employees   105,956 88,659 87,969 89,298 89,754
Suppliers   109,713 81,173 89,097 94,849 95,545
Grants   66,313 49,612 46,367 46,278 49,407
Interest   286 235 181 124 65
Other   3,212 3,586 3,436 2,936 2,936
Total cash used   285,480 223,265 227,050 233,485 237,707
             
Net cash from operating activities   52,906 18,352 19,399 19,833 19,769
             
INVESTING ACTIVITIES            
Cash Received            
Proceeds from sale of property, plant            
and equipment   0 0 0 0 0
Total Cash Received   0 0 0 0 0
             
Cash used            
Purchase of property, plant and equipment   20,478 19,033 15,033 13,033 13,033
Other   1,780 68 68 68 68
Total cash used   22,258 19,101 15,101 13,101 13,101
             
NET CASH FROM INVESTING ACTIVITIES   (22,258) (19,101) (15,101) (13,101) (13,101)
             
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 7 808 857 909 963 1,020
Capital use charge paid 8 30,795 0 0 0 0
Other   30,166 0 0 0 0
Total Cash Used   61,769 857 909 963 1,020
             
NET CASH FROM FINANCING ACTIVITIES   (61,769) (857) (909) (963) (1,020)
             
Net increase/decrease in cash held   (31,121) (1,606) 3,389 5,769 5,648
             
Cash at the beginning of the reporting period   74,714 43,593 41,987 45,376 51,145
Cash at the end of the reporting period   43,593 41,987 45,376 51,145 56,793

TABLE 3.4 DEPARTMENTAL CAPITAL BUDGET STATEMENT
    Estimated Budget      
    Actual Estimate
ESTIMATED
    2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
Capital appropriations            
Total equity injections     2,224      
Total loans          
             
Represented by:            
Purchase of non-current assets            
Other   2,224      
             
Purchase of non-current assets            
Funded by capital appropriations            
Funded internally by departmental resources   20,478 19,033 15,033 13,033 13,033

TABLE 3.5 DEPARTMENTAL NON-FINANCIAL ASSETS
SUMMARY OF MOVEMENT (BUDGET YEAR 2003-04)
        Other        
      Specialist Infrastruc Heritage      
      Military Plant and and cultural Computer Other  
  Land Buildings Equipment Equipment assets software intangibles Total
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Carrying amount at the start of the year
1,219
196,822
0
100,729
0
4,759
158
303,687
Additions * 0 7,700   10,883   450   19,033
Disposals                
Revaluation Increments 26 3,155   806   52 1 4,040
Recoverable Amount Write-Downs                
Net Transfers free of Charge                
Depreciation/Amortisation Expense 0 10,760   11,299   659 17 22,735
Write-off of Assets                
Carrying amount at the end of the year
1,245
196,917
 
101,119
 
4,602
142
304,025

* TOTAL ADDITIONS
Self funded 0 7,700   10,883   450   19,033
Appropriations                
TOTAL 0 7,700   10,883   450   19,033

TABLE 3.6 SCHEDULE OF BUDGETED REVENUES AND EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT
(for the period ended 30 June 2004)
    Estimated Budget      
    Actual Estimate
ESTIMATED
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
Revenues            
Taxation   0 0 0 0 0
Non-taxation            
Revenues from Government   0 0 0 0 0
Sales of goods and services 9 3,523 992 813 871 734
Interest   7 6 5 4 3
Other sources of non-taxation revenues 10 7,200 7,200 7,200 7,200 7,200
Total non-taxation   10,730 8,198 8,018 8,075 7,937
Total revenues administered on behalf of the Government            
             
Expenses            
Grants 11 219,914 214,993 274,092 273,151 263,186
Suppliers 12 40,000 40,000 40,000 40,000 40,000
Other 13 412 746 518 518 518
Total expenses administered on behalf of the Government   260,326 255,739 314,610 313,669 303,704

TABLE 3.7 SCHEDULE OF BUDGETED ASSETS AND LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT
(as at 30 June 2004)
    Estimated Budget      
    Actual Estimate
ESTIMATED
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
ASSETS            
Financial Assets            
Cash   24 24 24 24 24
Receivables   808 801 793 783 772
Investments 14 114,136 114,136 114,136 114,136 114,136
Accrued revenues   163 163 163 163 163
Total financial assets   115,131 115,124 115,116 115,106 115,095
             
Non-financial assets            
Infrastructure, plant and equipment   1,271 1,271 1,271 1,271 1,271
Other   2,212 2,212 2,212 2,212 2,212
Total Non-financial assets   3,483 3,483 3,483 3,483 3,483
             
Total Assets Administered on behalf of the Government   118,614 118,607 118,599 118,589 118,578
             
LIABILITIES            
Provisions            
Suppliers            
Grants            
Other            
Total Provisions   0 0 0 0 0
             
Payables            
Suppliers   221 221 221 221 221
Grants   709 709 709 709 709
Other   1,004 1,004 1,004 1,004 1,004
Total Payables   1,934 1,934 1,934 1,934 1,934
Total Liabilities Administered on behalf of the Government   1,934 1,934 1,934 1,934 1,934

TABLE 3.8 SCHEDULE OF BUDGETED ADMINISTERED CASH FLOWS
(for the period ended 30 June 2004)
    Estimated Budget      
    Actual Estimate
ESTIMATED
  Note 2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
             
OPERATING ACTIVITIES            
Cash received            
Sales of goods and services   2,996 992 813 871 734
Interest   223 6 5 4 3
Cash from Official Public Account 15 260,772 256,185 315,056 314,115 304,150
Other   7,200 7,200 7,200 7,200 7,200
Total cash received   271,191 264,383 323,074 322,190 312,087
             
Cash Used            
Suppliers 12 40,663 40,450 40,450 40,450 40,450
Grants 11 219,914 214,993 274,092 273,151 263,186
Cash to Official Public Account   10,208 8,201 8,022 8,081 7,944
Other   412 746 518 518 518
Total cash used   271,197 264,390 323,082 322,200 312,098
             
Net cash from operating activities   (6) (7) (8) (10) (11)
             
INVESTING ACTIVITIES            
Cash Received            
Other   6 7 8 10 11
Total Cash Received   6 7 8 10 11
             
Cash Used            
Purchase of new assets 16 4,750        
Total cash used   4,750 0 0 0 0
             
Net cash from investing activities   (4,744) 7 8 10 11
             
FINANCING ACTIVITIES            
Cash Received            
Capital Injection 16 4,750        
Total Cash Received   4,750        
             
Cash Used            
Other            
Total cash used   0 0 0 0 0
             
Net cash from financing activities   4,750 0 0 0 0
             
Net increase/decrease in cash held   0 0 0 0 0
             
Cash at the beginning of the reporting period   24        
Cash at the end of the reporting period   24        

TABLE 3.9 SCHEDULE OF ADMINISTERED CAPITAL BUDGET
    Estimated Budget      
    Actual Estimate
ESTIMATED
    2002-03 2003-04 2004-05 2005-06 2006-07
    $'000 $'000 $'000 $'000 $'000
Capital appropriations            
Administered Capital   4,750        
             
Represented by:            
Purchase of non-current assets   4,750        
Other            
             
Purchase of non-current assets            
Funded by capital appropriations   4,750        
Funded internally by departmental resources            

TABLE 3.10 SCHEDULE OF ADMINISTERED NON-FINANCIAL ASSETS - SUMMARY OF MOVEMENT (BUDGET YEAR 2003-04)
        Other        
      Specialist Infrastruc Heritage      
      Military Plant and and cultural Computer Other  
  Land Buildings Equipment Equipment assets software intangibles Total
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Carrying amount at the start of the year
 
4,750
 
1,271
 
 
 
6,021
Additions                
Disposals                
Revaluation Increments                
Recoverable Amount Write-Downs                
Net Transfers free of Charge   4,750           4,750
Depreciation/Amortisation Expense                
Write-off of Assets                
Carrying amount at the end of the year
 
0
 
1,271
 
 
 
1,271

Notes to the Financial Statements

1. General notes on accrual budgeting framework

(a) Departmental Financial Statements and Notes of Administered Items

Under the Commonwealth'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.

(b) Appropriations in the Accrual Budgeting Framework

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

Special appropriations exist under the accrual appropriation framework, and fund the majority of payments from the Consolidated Revenue Fund.

(c) Capital Use Charge

The Government has agreed to discontinue the Capital Use Charge from 1 July 2003.

(d) Administered investments in controlled entities

Each Commonwealth Department is required to show an administered investment in each Commonwealth Authority and Company Act 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.

(e) Asset Valuation

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.

  1. Significant variances in revenue from Government between 2002 03 and the forward estimate years relates primarily to the following:
  1. The revenue from the sale of goods and services estimates mainly relates to the recovery of administration costs for programmes relating to the Natural Heritage Trust, which are lower in 2003-04. The 2002 03 estimate also includes $2.052m relating to the Bureau of Meteorology for the period 1 July 2002 to 11 September 2002.
  2. The Government has discontinued the Agency Banking Incentive Scheme (ABIS) from 1 July 2003. ABIS was introduced in 1999 2000. Under the devolved banking arrangements, the Department could invest surplus cash balances in term deposits and retain the interest paid.
  3. Variances in expenses between 2002 03 and the forward estimate years relates primarily to the prescription of the Commonwealth Bureau of Meteorology on 12 September 2003. The 2002 03 estimated actuals include Bureau expenses for the period 1 July to 11 September 2002 and subsequent years do not. Budgeted Departmental Financial Statements can be found at Part C, Section 3 for the agency – Commonwealth Bureau of Meteorology (refer page 188).
    Average Staffing Levels (ASL) are provided in Table 2.1.1 for Outcome 1-Environment (refer page 47) and Table 2.1.2 for Outcome 2-Antarctic
    (refer page 71)
  4. The grant expense estimates includes payment to the Director of National Parks ($34.3m in 2003 04) and other departmental grants.
  5. In 1998 99 $7.8m was borrowed from the Department of Finance and Administration for refurbishment and fitout of the John Gorton Building in Parkes. Repayments for the John Gorton Building loan will be over nine years, with the final repayment being made in 2007 08.
  6. The Government has discontinued the capital use charge from 1 July 2003.
  7. Non-taxation revenue in 2002-03 includes goods and services revenue from the recovery of costs by the Bureau of Meteorology up to 12 September 2002 (the date the Bureau became a prescribed agency). From 2003-04 revenue relates to other fees from regulatory services.
  8. Other sources of non-taxation revenue relate mainly to 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.
  9. Grant payments to non-profit institutions, related entities and state, territory and local governments and other grant programmes including the Natural Heritage Trust of Australia.
  10. Supplier expenses relating to goods and services for projects and grants under the Natural Heritage Trust of Australia.
  11. Includes other goods and services expenses relating to Ozone Protection.
  12. Investments relating to the net assets of the portfolio's statutory authorities valued at 30 June 1997. The book value of each investment is fixed as at 1 July 1997.
  13. Represents receipts of administered appropriations from the Official Public Account (OPA). This revenue is no longer reported as administered revenue as a result of changed requirements under the Finance Minister's Orders in 2001-02.
  14. Administered capital received in the 2002-03 Budget for the purchase of Macquarie Lightstation and Snapper Island from the Department of Finance and Administration. The assets will be vested to the Sydney Harbour Federation Trust upon finalisation of the purchase in 2002-03.