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Portfolio budget statements

Portfolio Additional Estimates Statements 2004–2005

Environment and Heritage Portfolio
Explanation of Additional Estimates 2004–2005
Commonwealth of Australia 2005
ISSN 1448 – 9058 (Online)

Tables in this section

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

Section 3 - Budgeted Financial 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 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 $320.388m, a net increase of $58.193m from the 2003-04 final budget outcome of $262.195m. This is mainly represented by an increase in revenues from Government of $70.060m.

Revenues from Government will increase in 2004-05 due to increased funding for the following measures:

In addition, under Section 32 Directions (FMA Act), annual appropriations of $46.836m have been transferred to the Department following the abolition of the Australian Greenhouse Office, the National Oceans Office and the Aboriginal and Torres Strait Islander Commission.

These appropriations comprise:

Total expenses are estimated to be $321.058m in 2004-05, an increase of $64.501m primarily due to the variations in Revenue from Government as mentioned above.

Budgeted Departmental Statement of Financial Position

The Department's budgeted net asset position of $283.704m in 2004-05 represents an increase of $25.686m from the 2003-04 final budget outcome of $258.018m. The increase primarily relates to the appropriation receivable.

Schedule of Budgeted Revenues and Expenses Administered on behalf of Government

In the 2004-05 Portfolio Budget Statements for the Environment and Heritage Portfolio administered revenue estimates were projected to increase following reforms to the Ozone Protection Act 1989, to take account of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989, enacted in December 2003.

Revenue collected in 2003-04 under the Synthetic Greenhouse Gas (Import Levy) Act 1995 and the Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Act 1995 was slower than anticipated in 2003-04 as a result of delays in the establishment of the licensing system required to collect levies under the new Act. The non-taxation sales of goods and services revenue fluctuates from year to year 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.

The majority of the Administered non-taxation revenue consists 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 ($7.4m in each of the years 2004-05 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 ($1.1m in each of the years 2004-05 to 2007-08).

Compared to 2003-04, administered expenses have increased by $196.0m in 2004-05 primarily due to:

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 the 2001–02 financial year.

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.

Schedule 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

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 2005)
  Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
REVENUES FROM ORDINARY ACTIVITIES
           
Revenues from Government
2 224,387 294,447 303,796 309,121 293,949
Sales of goods and services
3 33,760 25,901 23,303 22,697 18,119
Other
  4,048 40 40 40 40
Total revenues from ordinary activities
  262,195 320,388 327,139 331,858 312,108
EXPENSES FROM ORDINARY
           
ACTIVITIES (excluding borrowing costs expense)
           
Employees
2 97,744 110,572 118,438 119,440 118,735
Suppliers
2 87,424 130,695 134,626 134,809 121,950
Grants
4 47,736 55,709 48,887 52,416 47,287
Depreciation and amortisation
  21,752 23,840 24,025 24,021 23,983
Value of Assets Sold
  444 0 0 0 0
Write-down of assets
  1,131 68 68 68 68
Other
  93 20 20 20 20
Total expenses from ordinary activities (excluding borrowing costs expense)
  256,324 320,904 326,064 330,774 312,043
Borrowing cost expense
  233 154 105 54 65
Net Surplus (or deficit) from ordinary activities
  5,638 (670) 970 1,030 0
Gain or loss on extraordinary items
  0 0 0 0 0
Net Surplus (or deficit) attributable to the Commonwealth
  5,638 (670) 970 1,030 0
Net credit (Debit) to asset revaluation reserve
  0 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
  5,638 3,370 5,010 5,070 0
Table 3.2– Budgeted departmental statement of financial position
(as at 30 June 2005)
  Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
ASSETS
           
Financial Assets
           
  
Cash
  6,928 9,304 8,997 10,160 10,149
  
Receivables
5 14,609 37,862 43,384 48,779 59,559
  
Accrued revenues
  2,823 754 768 782 782
  
Other
  23 23 23 23 23
Total Financial assets
  24,383 47,943 53,172 59,744 70,513
Non-financial assets
           
Land and buildings
  199,393 195,513 191,633 187,753 180,692
  
Infrastructure, plant and equipment
  102,396 101,470 97,899 94,472 90,276
  
Inventories
  9,101 8,650 8,787 8,987 9,217
  
Intangibles
  7,580 8,230 8,586 8,945 9,252
  
Other
  646 743 817 893 926
Total Non-financial assets
  319,116 314,606 307,722 301,050 290,363
Total Assets
  343,499 362,549 360,894 360,794 360,876
LIABILITIES
           
Interest bearing liabilities
           
  
Loans
6 3,974 3,065 2,102 1,082 1,082
  
Other
  704 704 704 704 704
Total debt
  4,678 3,769 2,806 1,786 1,786
Provisions
           
  
Employees
  33,976 36,938 37,289 37,822 37,962
  
Other
  37,040 33,484 28,884 24,284 24,284
Total Provisions
  71,016 70,422 66,173 62,106 62,246
Payables
           
  
Suppliers
  6,452 4,286 4,147 4,147 4,147
  
Grants
  767 0 0 0 0
  
Other
  2,568 368 310 227 169
Total Payables
  9,787 4,654 4,457 4,374 4,316
             
Total Liabilities
  85,481 78,845 73,436 68,266 68,348
EQUITY
           
Parent Entity Interest
           
  
Contributed equity
  6,021 14,446 14,446 14,446 14,446
  
Reserves
  129,515 133,048 137,088 141,128 141,128
Retained surpluses or accumulated deficits
  122,482 136,210 135,924 136,954 136,954
Total Parent Entity Interest
           
Total Equity
  258,018 283,704 287,458 292,528 292,528
Total assets and liabilities by maturity
           
Current liabilities
  27,294 22,759 22,819 23,189 23,271
Non-current liabilities
  58,187 56,086 50,617 45,077 45,077
Current assets
  30,694 56,593 61,959 68,731 79,730
Non-current assets
  312,805 305,956 298,935 292,063 281,146
Table 3.3– Budgeted departmental statement of cash flows
(for the period ended 30 June 2005)
Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
OPERATING ACTIVITIES
           
Cash Received
           
Appropriations for outputs
2 224,694 294,447 303,796 309,121 293,949
Sales of goods and services
3 35,369 26,875 22,877 22,272 17,829
Cash transferred from OPA
  9,252 0 0 0 0
Other
  12,704 1,274 2,991 2,976 2,976
Total Cash Received
  282,019 322,596 329,664 334,369 314,754
Cash Used
           
Employees
2 96,910 107,610 118,087 118,907 118,595
Suppliers
2 101,256 137,612 139,654 139,767 122,291
Grants
4 48,920 56,476 48,887 52,416 47,287
Cash Transfer to OPA
  0 20,718 5,125 5,005 10,490
Interest
  242 154 105 54 65
Other
  4,628 3,917 4,049 2,936 2,936
Total Cash Used
  251,956 326,487 315,907 319,085 301,664
Net cash from operating activities
  30,063 (3,891) 13,757 15,284 13,090
INVESTING ACTIVITIES
           
Cash Received
           
Proceeds from sale of property, plant
           
and equipment
  20 0 0 0 0
Total Cash Received
  20 0 0 0 0
Cash Used
           
Purchase of property, plant and equipment
  15,728 15,163 13,033 13,033 13,033
Purchase of financial instruments
  3,032        
Other
  0 68 68 68 68
Total Cash Used
  18,760 15,231 13,101 13,101 13,101
NET CASH FROM INVESTING ACTIVITIES
  (18,740) (15,231) (13,101) (13,101) (13,101)
FINANCING  ACTIVITIES
           
Cash Received
           
Proceeds from debt
  0 0 0 0 0
Other
  0 22,407 0 0 0
Total Cash Received
  0 22,407 0 0 0
Cash Used
           
Repayment of debt
6 960 909 963 1,020 0
Other
  7,684        
Total Cash Used
  8,644 909 963 1,020 0
NET CASH FROM FINANCING ACTIVITIES
  (8,644) 21,498 (963) (1,020) 0
Net increase/decrease in cash held
  2,679 2,376 (307) 1,163 (11)
Cash at the beginning of the reporting period
  4,249 6,928 9,304 8,997 10,160
Cash at the end of the reporting period
  6,928 9,304 8,997 10,160 10,149
Table 3.4– Departmental capital budget statement
  Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'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
  22,498 15,163 13,033 13,033 13,033
Table 3.5– Departmental non–financial assets summary of movement
(Budget year 2004–05)
  Land
$'000
Buildings
$'000
Other
Infrastructure
Plant
and
Equipment
$'000
Heritage
and cultural
Assets
$'000
Computer
software
$'000
Other
intangibles
$'000
Total
 $'000
Carrying amount at the start of the  year
982 198,411 102,396 0 6,189 1,391 309,369
Additions *
0 3,700 9,883   1,580 0 15,163
Disposals
            0
Revaluation Increments
26 3,154 804   55 1 4,040
Recoverable Amount Write-Downs
            0
Net Transfers free of Charge
0 0 342   139 0 481
Depreciation/Amortisation Expense
0 10,760 11,955   1,108 17 23,840
Write-off of Assets
            0
Carrying amount at the end of  the year
1,008 194,505 101,470 0 6,855 1,375 305,213
* Total additions
Self funded
0 3,700 9,883 0 1,580 0 15,163
TOTAL
0 3,700 3,700 0 1,580 0 15,163
Table 3.6 –Schedule of budgeted revenues and expenses administered on behalf of Government
(for the period ended 30 June 2005)
  Note Actual
2003–04
$'000
Revised

Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
Revenues
           
Taxation
7 0 1,414 1,414 1,414 1,414
Non-taxation
           
Revenues from Government
           
Goods and services
  2,700 880 1,880 880 1,880
Interest
  6 5 4 3 1
Other sources of non-taxation revenues
  8,346 9,000 9,000 9,000 9,000
Total non-taxation
  11,052 9,885 10,884 9,883 10,881
Total revenues administered on behalf of the Government
  11,052 11,299 12,298 11,297 12,295
Expenses
           
Grants
8 220,168 415,138 421,007 462,276 448,639
Suppliers
9 46,311 46,000 46,000 46,000 46,000
Other
9 1,062 2,870 2,870 2,870 2,870
Total expenses administered on behalf of the Government
  267,541 464,008 469,877 511,146 497,509
Table 3.7– Schedule of budgeted assets and liabilities administered on behalf of Government
(as at 30 June 2005)
  Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
ASSETS
           
Financial Assets
           
Cash
  1 1 1 1 1
Receivables
  6,812 6,804 6,794 6,783 6,774
Investments
  118,301 118,301 118,301 118,301 118,301
Accrued revenues
  441 441 441 441 441
Total financial assets
  125,555 125,547 125,537 125,526 125,517
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
Inventories
  392 392 392 392 392
Other
  74 74 74 74 74
Total Non-financial assets
  6,487 6,487 6,487 6,487 6,487
Total Assets Administered on behalf of the Government
  132,042 132,034 132,024 132,013 132,004
LIABILITIES
           
Provisions
           
Suppliers
  0 0 0 0 0
Grants
  0 0 0 0 0
Other
  341 0 0 0 0
Total Provisions
  341 0 0 0 0
Payables
           
Suppliers
  3,027 3,027 3,027 3,027 3,027
Grants
  32,720 32,720 32,720 32,720 32,720
Other
  7,343 7,684 7,684 7,684 7,684
Total Payables
  43,090 43,431 43,431 43,431 43,431
Total Liabilities Administered on behalf of the Government
  43,431 43,431 43,431 43,431 43,431
Table 3.8– Schedule of budgeted administered cash flows
(for the period ended 30 June 2005)
  Note Actual
2003–04
$'000
Revised
Budget
2004–05
$'000
FORWARD
ESTIMATES
2005–06
$'000
2006–07
$'000
2007–08
$'000
OPERATING ACTIVITIES
           
Cash received
           
Other taxes, fees and fines
  0 1,414 1,414 1,414 1,414
Sales of goods and rendering of services    
  2,617 880 1,880 880 1,880
Interest
  9 5 4 3 1
Cash from Official Public Account
  244,390 464,008 469,960 511,229 497,592
Other
  15,622 16,583 16,583 16,583 16,583
Total cash received
  262,638 482,890 489,841 530,109 517,470
Cash Used
           
Suppliers
  44,883 46,000 46,000 46,000 46,000
Grants
  199,053 415,138 421,007 462,276 448,639
Cash to Official Public Account
  11,189 11,390 12,391 11,391 12,387
Other
  7,389 10,370 10,453 10,453 10,453
Total cash used
  262,514 482,898 489,851 530,120 517,479
Net cash from operating activities
  124 (8) (10) (11) (9)
INVESTING ACTIVITIES
           
Cash Received
           
Other
  418 8 10 11 9
Total Cash Received
  418 8 10 11 9
Cash Used
           
Purchase of new assets
  883  0 0 0 0
Total cash used
  883  0 0 0 0
Net cash from investing activities
  (465) 8 10 11 9
FINANCING ACTIVITIES
           
Cash received
           
Other
  0 0 0 0 0
Total cash received
  0 0 0 0 0
Cash Used
           
Cash to the Official Public Account
  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
  (341) 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
           
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)
  Land
$'000
Buildings
$'000
Other
Infrastructure
Plant
and
Equipment
$'000
Heritage
and
cultural
Assets
$'000
Computer
software
$'000
Other
intangibles
$'000
Total
$'000
Carrying amount at the start of the year
  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
  4,750 1,271 0 0 0 6,021

Notes to the Financial Statements

1. General notes on accrual budgeting framework
  1. Departmental Financial Statements and Notes of Administered Items
  2. Appropriations in the Accrual Budgeting Framework
  3. Administered investments in controlled entities
  4. Asset Valuation
(a) Departmental Financial Statements and Notes of Administered Items

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.

(b) Appropriations in the Accrual Budgeting Framework

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).

(c) Administered investments in controlled entities

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.

(d) 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. Variances in Revenues from Government and Expenses between 2003-04 and the forward estimate years relates primarily to the following:
    The abolition of the Australian Greenhouse Office and the National Oceans Office as executive agencies under the Public Service Act 1999 on 26 October 2004 and as prescribed agencies under the Financial Management and Accountability Act (FMA Act) 1997 on 3 November 2004. These agencies were incorporated into the Department.
    The transfer of Indigenous programme functions to the Department from the Department of Immigration and Multicultural and Indigenous Affairs following the Government decision to abolish the Aboriginal and Torres Strait Islander Commission and cease the Aboriginal and Torres Strait Islander Services functions.
    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. DNP funding of $40.1m will be appropriated to the Department in 2004-05.
  2. The revenue from the sale of goods and services estimates mainly relate to the recovery of administration costs for programmes relating to the Natural Heritage Trust of Australia.
  3. The grant expense estimates include payment to the DNP ($40.1m in 2004-05) and other departmental grants.
  4. The increase in receivables in 2004-05 mainly relates to the transfer of appropriation receivable transferred from the Australian Greenhouse Office ($20.204m).
  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. As a result of delays in establishing the licensing system required for levies under the Synthetic Greenhouse Gas (Import Levy) Act 1995 and the Ozone Protection and Synthetic Greenhouse Gas(Manufacture Levy) Act 1995, revenue predicted to be collected under this category in 2003-04 did not eventuate.
  7. 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 Natural Heritage Trust.
  8. Supplier and Other Goods and Services expenses relate to the general provision of goods and rendering of services for projects and grants administered under the Natural Heritage Trust and the Ozone Protection and Synthetic Greenhouse Gas Account.

Budget statements

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