australian customs and border … strategic direction statement for the australian customs and...

AUSTRALIAN CUSTOMS AND

BORDER PROTECTION SERVICE

Agency resources and planned performance

AUSTRALIAN CUSTOMS AND BORDER PROTECTION

SERVICE

Section 1: Entity Overview and Resources .............................................................. 85

1.1 Strategic Direction .......................................................................................... 85

1.2 Entity Resource Statement ............................................................................. 85

1.3 Entity Measures table ..................................................................................... 88

1.4 Additional Estimates and variations ................................................................ 89

1.5 Breakdown of additional estimates by appropriation bill ................................ 91

Section 2: Revisions to Entity Resources and Planned Performance .................. 92

2.1 Resources and performance information ....................................................... 92

Section 3: Explanatory Tables and Budgeted Financial Statements ..................... 96

3.1 Explanatory Tables ......................................................................................... 96

3.2 Budgeted financial statements........................................................................ 96

ACBPS Additional Estimates Statements

85

AUSTRALIAN CUSTOMS AND BORDER PROTECTION

SERVICE

Section 1: Entity Overview and Resources

1.1 STRATEGIC DIRECTION

The strategic direction statement for the Australian Customs and Border Protection

Service (ACBPS) can be found in the 2014-15 Portfolio Budget Statements. There are

no changes to ACBPS’s strategic direction as a result of Additional Estimates.

1.2 ENTITY RESOURCE STATEMENT

The Entity Resource Statement details the resourcing for ACBPS at Additional

Estimates. Table 1.1 outlines the total resourcing available from all sources for the

2014-15 Budget year, including variations through Appropriation Bill Nos. 3 and No. 4.


86

Table 1.1: Entity Resource Statement — Additional Estimates for 2014-15 as at Additional Estimates February 2015

Total Estimate as Proposed Total

available at Budget Additional estimate

appropriation Estimate at Additional

Estimates

2013-14 2014-15 2014-15 2014-15

$'000 $'000 $'000 $'000

Ordinary annual services 1

Departmental appropriation

Prior year departmental appropriation 2173,500 191,078 (39,880) 151,198

Departmental appropriation 31,059,975 1,008,946 68,209 1,077,155

Section 31 Receipts469,578 70,208 2,572 72,780

T otal 1,303,053 1,270,232 30,901 1,301,133

Administered expenses

Outcome 1 928 934 - 934

T otal 928 934 - 934

T otal ordinary annual services A 1,303,053 1,271,166 30,901 1,302,067

Departmental non-operating 5

Equity injections 71,849 136,905 16,074 152,979

T otal 71,849 136,905 16,074 152,979

T otal other services B 71,849 136,905 16,074 152,979

T otal available annual

appropriations 1,374,902 1,408,071 46,975 1,455,046

S pecial appropriations

S pecial appropriations limited

by criteria/entitlement

Customs duty and other repayments 348,700 360,000 60,000 420,000

T otal special appropriations C 348,700 360,000 60,000 420,000

T otal appropriations excluding

S pecial Accounts 1,723,602 1,768,071 106,975 1,875,046


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Table 1.1: Entity Resource Statement — Additional Estimates for 2014-15 as at Additional Estimates February 2015 (continued)

1. Appropriation Act (No. 1) 2014-2015 and Appropriation Bill (No. 3) 2014-2015. 2. Estimated adjusted balance carried from previous year for annual appropriations. 3. Includes an amount of $32.604m in 2014-15 for the Departmental Capital Budget (refer to table 3.2.5

for further details). For accounting purposes this amount has been designated as 'contributions by owners'.

4. Section 31 Relevant Agency receipts - estimate. This includes an amount of $52.9m that is collected under a memorandum of understanding with the Australian Taxation Office for the collection of revenue by ACBPS on behalf of the Australian Taxation Office.

5. Appropriation Act (No. 2) 2014-15 and Appropriation Bill (No. 4) 2014-15. Reader note: All figures are GST exclusive.

Total Estimate as Proposed Total

available at Budget Additional estimate

appropriation Estimate at Additional

Estimates

2013-14 2014-15 2014-15 2014-15

$'000 $'000 $'000 $'000

S pecial Accounts

Opening balance - - - -

Appropriation Receipts - - - -

T otal S pecial Account D - - - -

T otal resourcing

(A+B+C+D) 1,723,602 1,768,071 106,975 1,875,046

Less appropriations drawn from

annual or special appropriations

above and credited to special

accounts

and/or payments to corporate

entities through annual

appropriations - - - -

T otal net resourcing for entity 1,723,602 1,768,071 106,975 1,875,046


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1.3 ENTITY MEASURES TABLE

Table 1.2 summarises new Government measures taken since the 2014-15 Budget. The

table is split into revenue, expense and capital measures, with the affected programme

identified.

Table 1.2: Entity 2014-15 Measures since Budget

1. The full measure description and package details appear in 2014-15 MYEFO under the Immigration and

Border Protection portfolio.

Prepared on Government Financial Statistics (fiscal basis)

Programme 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000

Revenue measures

Japan-Australia Economic Partnership

Agreement All

Administered revenues (110,000) (445,000) (495,000) (540,000)

Reintroduction of fuel excise indexation -

change to start date and rounding of

excise rates

Administered revenues All (2,000) .. .. ..

Total revenue measures (112,000) (445,000) (495,000) (540,000)

Expense measures (if applicable)

National Security - additional counter-

terrorism funding 1.1

Departmental expenses1 6,532 18,707 18,132 18,542

Maintaining the response capability for

Illegal Maritime Arrivals 1.1


Anti-people smuggling strategic

communications campaigns 1.1

Departmental expenses1 8,125 - - -

Australian Customs Vessel (ACV) Ocean

Shield - surge and continuation 1.1


Total 48,862 52,048 53,377 51,399

Total expense measures

Administered (112,000) (445,000) (495,000) (540,000)

Departmental 48,862 52,048 53,377 51,399

Total (63,138) (392,952) (441,623) (488,601)

Capital measures (if applicable)


terrorism funding 1.1

Departmental capital1 16,473 19,845 1,488 36

Maintaining the response capability for

Illegal Maritime Arrivals 1.1

Departmental capital1 11,780 - - -

Total capital measures 28,253 19,845 1,488 36


89

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for entity Australian Customs

and Border Protection Service at Additional Estimates, by outcome. Table 1.3 details

the Additional Estimates and variations resulting from new measures since the 2014-15

Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details Additional Estimates or

variations through other factors, such parameter adjustments.

Table 1.3: Additional Estimates and Variations to Outcomes from Measures since 2014-15 Budget

Programme 2014-15 2015-16 2016-17 2017-18

impacted $'000 $'000 $'000 $'000

Outcome 1

Decrease in estimates (administered)

Japan-Australia Economic Partnership

AgreementAdmin (110,000) (445,000) (495,000) (540,000)

Reintroduction of fuel excise indexation -

change to start date and rounding of

excise rates

Admin (2,000) .. .. ..

Net impact on estimates

for Outcome 1 (administered) (112,000) (445,000) (495,000) (540,000)

Increase in estimates (departmental)


terrorism funding1.1 23,005 38,552 19,620 18,578

Maintaining the response capability

for Illegal Maritime Arrivals 1.1 43,485 16,936 16,165 16,336

Anti-people smuggling strategic

communications campaigns 1.1 8,125 - - -

Australian Customs Vessel (ACV)

Ocean Shield - surge and

continuation

1.1 2,500 16,405 19,080 16,521

Decrease in estimates (departmental)


for Outcome 1 (departmental) 77,115 71,893 54,865 51,435

Decisions taken but not yet

announced - - - -


90

Table 1.4: Additional Estimates and Variations to Outcomes from Other Variations

Programme 2014-15 2015-16 2016-17 2017-18

impacted $'000 $'000 $'000 $'000

Outcome 1

Decrease in estimates (administered)

Customs duty Admin (210,000) (1,120,000) (1,500,000) (1,690,000)

Change in wage and price indices Admin - (1) (1) (1)


for Outcome 1 (administered) (210,000) (1,120,001) (1,500,001) (1,690,001)

Increase in estimates (departmental)

WCI Correction All 2,967

ED Correction All 20,832

Passenger workload growth funding

agreement1.1 725 1,745 2,182 7,550

Reversal of DCB error All - 3,999 7,998 12,000

Movement of Bill 2 - Equity funding 1.1 6,538 (6,538) - -

Decrease in estimates (departmental)

Communications and public affairs

functions – targeted savings 1.1 (95) (189) (188) (190)

Changes in wage and price indicies All - (940) (942) (956)

Departmental capital budget -

changes in wage and price indiciesAll - (31) (36) (27)


for Outcome 1 (departmental) 7,168 (1,954) 9,014 42,176


91

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION

BILL

The following tables detail the Additional Estimates sought for ACBPS through

Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2014-15

1. 2013-14 available appropriation is included to allow a comparison of this year's appropriation with what

was made available for use in the previous year. 2. An amount of $18.717m has been reallocated between the Appropriation Bill 4 (Equity Injection) and

Bill 3 (Operating) to reflect the final agreed costs associated with the Smaller Government – strengthen and enhance Australia’s border protection services measure.

Table 1.6: Appropriation Bill (No. 4) 2014-15

1. 2013-14 available appropriation is included to allow a comparison of this year's appropriation with what

was made available for use in the previous year. 2. An amount of $18.717m has been reallocated between the Appropriation Bill 4 (Equity Injection) and

Bill 3 (Operating) to reflect the final agreed costs associated with the Smaller Government – strengthen and enhance Australia’s border protection services measure.

2013-14 2014-15 2014-15 Additional Reduced

Available 1 Budget Revised Estimates2 Estimates

$'000 $'000 $'000 $'000 $'000

ADMINISTERED ITEMS

Outcome 1

Suppliers of goods and services

expense928 934 934 - -

Total 928 934 934 - -

DEPARTMENTAL PROGRAMMES

Outcome 1

The protection of the safety,

security and commercial interests

of Australians through border

protection designed to support

legitimate trade and travel and

ensure collection of border revenue

and trade statistics

1,059,975 1,008,946 1,077,155 68,209 -

Total 1,059,975 1,008,946 1,077,155 68,209 -

Total administered and

departmental 1,059,975 1,009,880 1,078,089 68,209 -

2013-14 2014-15 2014-15 Additional Reduced

Available 1 Budget Revised Estimates2 Estimates

$'000 $'000 $'000 $'000 $'000

Non-operating

Equity injections

National Security - additional

counter-terrorism funding

Maintaining the response

capability for Illegal Maritime

Arrivals

71,849 136,905 152,979 16,074 -

Total non-operating 71,849 136,905 152,979 16,074 -


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Section 2: Revisions to Entity Resources and Planned Performance

2.1 RESOURCES AND PERFORMANCE INFORMATION

There are no changes to the Australian Customs and Border Protection Services’

outcome and performance information as reported in the 2014-15 Portfolio Budget

Statements.

OUTCOME 1

Outcome 1 Strategy

There are no changes to the strategy for Outcome 1 as reported in the 2014-15 Portfolio

Budget Statements.


93

Table 2.1 Budgeted Expenses and Resources for Outcome 1

1. Departmental Appropriation combines "Ordinary annual services (Appropriation Act No. 1 and Bill No.

3)" and "Retained Revenue Receipts under s74 of the PGPA Act 2013". 2. Expenses not requiring appropriation in the Budget year is made up of Resources Received Free of

Charge, Depreciation and Amortisation Expenses, and Impairment and Write-Off Debts. 3. The actual result for 2013-14 includes an operating loss of $5.5m incurred. The operating loss was

attributed across ACBPS' three programmes.

2013-14 2014-15

Actual Revised

expenses 3 Estimated

expenses

$'000 $'000

Programme 1.1: Border Enforcement

Departmental expenses

Departmental appropriation1 880,219 943,131

Expenses not requiring appropriation in the Budget year2 83,879 82,527

Total for Programme 1.1 964,098 1,025,658

Program 1.2: Border Management




Total for Programme 1.2 143,420 126,462

Program 1.3: Border Revenue





Program: Other Administered


Departmental appropriation1 928 934



Outcome 1 Totals by appropriation type

Administered Expenses

Ordinary annual services (Appropriation Act No. 1 and Bill No. 3 ) 928 934



Departmental appropriation1 1,064,892 1,117,331


Total expenses for Outcome 1 1,185,643 1,233,342

2013-14 2014-15

Average Staffing Level (number) 5,000 4,920

Outcome 1: The protection of the safety, security and commercial

interests of Australians through border protection designed to

support legitimate trade and travel and ensure collection of border

revenue and trade statistics


94

Contributions to Outcome 1

Programme 1.1 Expenses

1. Expenses not requiring appropriation in the Budget year is made up of Depreciation and Amortisation

Expenses, Makegood Expense, Audit Fees.

Programme 1.1 Deliverables

Note: Targets relating to deliverables across the forward estimates have been developed on the basis of the operational risks and environment that existed when the 2014-15 Portfolio Budget Statements were developed. Due to the dynamic nature of the operational environment, future targets may need to be varied depending on the risks faced at that time. TEU = twenty-foot equivalent unit. 1. Performance cannot be forecast reliably. Actual results will be reported in the annual report. 2. Deliverable for 2014-15 comprises 92 patrol days for the ACV Ocean Protector and 80 days for the

ACV Ocean Shield. Funding for ACV Ocean Protector terminated 31 December 2014. ACV Ocean Protector has been replaced by ACV Ocean Shield for which funding from 2015-16 to 2017-18 is for 300 days per annum.

3. Program will terminate on 30 June 2015.

Programme 1.2: Border Management

Supports the following functions of partner agencies:

Australian Tax Office – Excise equivalent goods and refunds (e.g. tobacco), transfer pricing policy

Treasury – excise equivalent goods and refunds, Competition and Consumer Tobacco Information Standards

2013-14 2014-15 2015-16 2016-17 2017-18

Actual Revised Forward Forward Forward

budget year 1 year 2 year 3

$'000 $'000 $'000 $'000 $'000

Annual departmental expenses: 880,219 943,131 886,544 888,855 903,017

Expenses not requiring appropriation in

the Budget year1 83,879 82,527 95,370 111,942 139,620

Total programme expenses 964,098 1,025,658 981,914 1,000,797 1,042,637

2013-14 2014-15 2015-16 2016-17 2017-18


Deliverables budget year 1 year 2 year 3

Number of international vessel

movements1 53,514 55,104 56,442 57,781 59,120

Number of reported vessel arrivals1 17,224 17,889 18,522 19,155 19,788

Southern Ocean vessel surveillance

(patrol days) 2 329 172 300 300 300

Northern waters surveillance ACV Triton

(patrol days) 3 326 308 0 0 0


95





Note: Targets relating to deliverables across the forward estimates have been developed on the basis of the operational risks and environment that existed when the 2014-15 Portfolio Budget Statements were developed. Due to the dynamic nature of the operational environment, future targets may need to be varied depending on the risks faced at that time.





Note: Targets relating to deliverables across the forward estimates have been developed on the basis of the operational risks and environment that existed when the 2014-15 Portfolio Budget Statements were developed. Due to the dynamic nature of the operational environment, future targets may need to be varied depending on the risks faced at that time.

2013-14 2014-15 2015-16 2016-17 2017-18



$'000 $'000 $'000 $'000 $'000



the Budget year1 22,105 20,547 22,281 23,593 28,745

Total programme expenses 143,420 126,462 125,569 127,949 131,276

2013-14 2014-15 2015-16 2016-17 2017-18



Number of imported air cargo

consignments reported30.6m 34.7m 38.9m 43.0m 47.1m

2013-14 2014-15 2015-16 2016-17 2017-18



$'000 $'000 $'000 $'000 $'000



the Budget year1 10,860 9,503 10,296 10,928 3,244

Total programme expenses 74,218 77,788 78,639 75,819 68,712

2013-14 2014-15 2015-16 2016-17 2017-18



Collection of revenue associated with

passenger movements$846.6m $907.9m $957.4m $1,007.9m $1,059.9m

$14,309m

Significant revenues collected (including

customs duty, passenger movement

charge, import processing charge and

GST collected)

$13,734m $13,666m $13,052m $13,775m


96

Section 3: Explanatory Tables and Budgeted Financial Statements

3.1 EXPLANATORY TABLES

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of Budgeted Financial Statements

Departmental

Total estimated revenue in 2014-15 is $1,122.118m, a net increase of $66.335m from the

previously published estimate of $1,055.783m in the 2014-15 Portfolio Budget

Statements. This net increase in revenue from government in 2014-15 is due to:

funding of $6.532m to implement the National Security – additional counter-

terrorism funding measure;

funding of $31.705m to implement the Maintaining the response capability for

Illegal Maritime Arrivals Authority measure;

funding of $8.125m to implement the Anti-people smuggling strategic

communications campaigns measure;

funding of $2.500m to implement the Australian Customs Vessel (ACV) Ocean

Shield – surge and continuation measure;

funding of $18.717m in relation to the reallocation of Appropriation Act No. 4

to Appropriation Act No. 3 to the 2014-15 Budget measure Smaller Government

– strengthen and enhance Australia’s border protection services;

adjustments of $0.725m made to workload parameters as part of the passenger

workload growth agreement; and

offset by a reduction in funding resulting from whole of government savings

relating to Communications and Public Affairs Functions – targeted savings.

Total expenses for 2014-15 are estimated to be $1,229.908m, a net increase of $66.335m

since the 2014-15 Portfolio Budget Statements. This movement is a result of:

an increase of $51.974m in supplier expenses and an increase of $14.361m in

employee benefits reflecting the estimated expenses associated with

government decisions.


97

Balance sheet

The estimated 2014-15 net assets (equity) of $601.917m represents a net increase of $13.439m from the 2014-15 Portfolio Budget Statements. The variance is primarily due to the combined effect of the impact of the 2013-14 actuals flowing through to the 2014-15 opening balances and the net impact of government decisions.

The estimated total assets are $888.701m, representing a net decrease of $7.058m from

the 2014-15 Portfolio Budget Statements. The decrease is primarily due to 2013-14

actuals flowing through to the 2014-15 opening balances and the net impact of

government decisions.

Statement of changes in equity

The changes in equity estimates from the 2014-15 Portfolio Budget Statements are due

to the impact of the 2013-14 actuals flowing through to the 2014-15 opening balances

and the net impact of government decisions.

Statement of cash flows

Changes to the statement of cash flows from the 2014-15 Portfolio Budget Statements

are due to the movements in the income statement result from funding to be received

through measures and adjustments, but excluding the impact of depreciation and

amortisation.

Capital budget statement

Changes to the capital budget statement from the 2014-15 Portfolio Budget Statements

are due to:

funding of $16.473m to implement the National Security - additional counter-

terrorism funding measure;

funding of $11.780m to implement the Maintaining the response capability for

Illegal Maritime Arrivals Authority measure; and

a reduction in funding of $18.717m in relation to the reallocation of

Appropriation Act No. 4 to Appropriation Act no. 3 to the 2014-15 Budget

measure Smaller Government – strengthen and enhance Australia’s border protection

services.


98

Statement of asset movements

Changes to the statement of asset movements from the 2014-15 Portfolio Budget

Statements are due to the impact of the 2014-15 Portfolio Budget Statements are due to

the impact of the 2013-14 actuals flowing through to the 2014-15 opening balances and

the net impact of government decisions.

Administered

Schedule of budgeted income and expenses

In 2014-15 the ACBPS is estimated to collect $9,059.3 million in customs duty, a

decrease of $219.3 million (or 2.4%) over the 2013-14 actual results. This decrease is

due to the combined impact of government measures, changes in economic parameters

and an adjustment to the estimate for Refunds and Drawbacks.

The forward estimates include a provision for the Chine-Australia Free Trade

Agreement.

Schedule of budgeted assets and liabilities

The variance between the 2014-15 Portfolio Budget Statements estimates and the

revised estimates is due to the impact of the 2013-14 actuals flowing through to the

2014-15 opening balances.

Schedule of administered cash flows

The changes in the budget administered cash flows reflect the adjustments made to

revenues collected by ACBPS on behalf of the Australian Government.


99

3.2.2 Budgeted Financial Statements

Departmental Financial Statements

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services)


budget estimate estimate estimate

2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

EXPENSES

Employee benefits 568,306 559,087 559,400 567,314 582,290

Suppliers 510,156 563,031 503,560 495,573 494,464

Depreciation and amortisation 101,848 107,790 123,162 141,678 165,871

Finance costs 710 - - - -

Write-down and impairment of assets 703 - - - -

Losses from asset sales 13 - - - -

Total expenses 1,181,736 1,229,908 1,186,122 1,204,565 1,242,625

LESS:

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services 66,391 72,780 71,784 67,649 68,160

Other revenue 6,467 4,047 4,047 4,047 5,000

Total own-source revenue 72,858 76,827 75,831 71,696 73,160

Gains

Sale of assets 12 - - - -

Other gains 3,071 740 738 738 738

Total gains 3,083 740 738 738 738

Total own-source income 75,941 77,567 76,569 72,434 73,898

Net cost of (contribution by)

services 1,105,795 1,152,341 1,109,553 1,132,131 1,168,727

Revenue from Government 998,501 1,044,551 986,391 990,453 1,002,856

Surplus (Deficit) before income tax (107,294) (107,790) (123,162) (141,678) (165,871)

Income tax expense

Surplus (Deficit) after income tax (107,294) (107,790) (123,162) (141,678) (165,871)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent

reclassification to profit or loss

Changes in asset revaluation surplus

Total other comprehensive income

after income tax - - - - -

Total comprehensive income (loss) (107,294) (107,790) (123,162) (141,678) (165,871)


100

Table 3.2.1: Budgeted Departmental Comprehensive Income Statement (Showing Net Cost of Services) (continued)

1. From 2010-11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of Non- Corporate Commonwealth Entities were replaced with a separate capital budget (the Departmental Capital Budget, or DCB) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Prepared on Australian Accounting Standards basis.

Note: Impact of Net Cash Appropriation Arrangements

2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

Total Comprehensive Income

(loss) excluding depreciation/

amortisation expenses

previously funded through

revenue appropriations (5,446) - - - -

less depreciation/amortisation expenses

previously funded through revenue

appropriations1 101,848 107,790 123,162 141,678 165,871

Total Comprehensive Income

(loss) - as per the Statement of

Comprehensive Income (107,294) (107,790) (123,162) (141,678) (165,871)


101

Table 3.2.2: Budgeted Departmental Balance Sheet (as at 30 June)




2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

ASSETS

Financial assets

Cash and cash equivalents 6,418 6,418 6,418 6,418 6,418

Trade and other receivables 164,840 164,840 164,840 164,840 164,840

Other financial assets 1,331 1,331 1,331 1,331 1,331

Total financial assets 172,589 172,589 172,589 172,589 172,589

Non-financial assets

Land and buildings 142,864 139,651 150,051 143,975 116,537

Property, plant and equipment 298,058 388,481 467,500 443,512 406,333

Intangibles 174,880 165,463 173,720 179,175 172,240

Inventories 7,062 7,062 7,062 7,062 7,062

Other non-financial assets 15,455 15,455 15,455 15,455 15,455

Total non-financial assets 638,319 716,112 813,788 789,179 717,627

Assets held for sale

Total assets 810,908 888,701 986,377 961,768 890,216

LIABILITIES

Payables

Suppliers 60,636 60,636 60,636 60,636 60,636

Other payables 13,401 13,401 13,401 13,401 13,401

Total payables 74,037 74,037 74,037 74,037 74,037

Provisions

Employee provisions 187,975 187,976 187,975 187,974 187,973

Other provisions 24,771 24,771 24,771 24,771 24,771

Total provisions 212,746 212,747 212,746 212,745 212,744

Liabilities included in disposal

groups held for sale

Total liabilities 286,783 286,784 286,783 286,782 286,781

Net assets 524,125 601,917 699,594 674,986 603,435

EQUITY

Parent entity interest

Contributed equity 833,025 1,018,606 1,239,445 1,356,514 1,450,833

Reserves 83,846 83,846 83,846 83,846 83,846

Retained surplus

(accumulated deficit) (392,747) (500,537) (623,697) (765,374) (931,244)

Total parent entity interest 524,124 601,915 699,594 674,986 603,435

Total Equity 524,124 601,915 699,594 674,986 603,435


102

Table 3.2.3: Departmental Statement of Changes in Equity — Summary of Movement (Budget Year 2014-15)

Prepared on Australian Accounting Standards basis

Retained Asset Contributed Total

earnings revaluation equity/ equity

reserve capital

$'000 $'000 $'000 $'000

Opening balance as at 1 July 2014

Balance carried forward from

previous period (392,747) 83,846 833,025 524,124

Adjustment for changes in -

accounting policies (1) (1)

Adjusted opening balance (392,747) 83,846 833,024 524,123

Comprehensive income

Other comprehensive income -

Surplus (deficit) for the period (107,790) (107,790)

Total comprehensive income (107,790) - - (107,790)

of which:

Attributable to the Australian Government (107,790) - - (107,790)

Transactions with owners

Contributions by owners

Equity Injection 152,979 152,979

Equity Injection - Appropriation -

Departmental Capital Budget (DCBs) 32,604 32,604

Other -

Restructuring -

Sub-total transactions with owners - - 185,583 185,583

Estimated closing balance

as at 30 June 2015 (500,537) 83,846 1,018,607 601,916

Closing balance (500,537) 83,846 1,018,607 601,916


103

Table 3.2.4: Budgeted Departmental Statement of Cash Flows (as at 30 June)

Prepared on Australian Accounting Standards basis



2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIES

Cash received

Appropriations 1,019,959 1,043,598 985,378 989,440 1,002,856

Sale of goods and rendering of services 67,160 70,280 69,284 65,149 65,660

Net GST received 59,696 46,147 46,147 46,147 46,147

Other 164 685 685 685 685

Total cash received 1,146,979 1,160,710 1,101,494 1,101,421 1,115,348

Cash used

Employees 567,679 559,082 559,399 567,316 582,292

Suppliers 518,919 555,481 495,948 487,958 486,909

Net GST paid 61,183 46,147 46,147 46,147 46,147

Taxes paid 3,854 - - - -

Total cash used 1,151,635 1,160,710 1,101,494 1,101,421 1,115,348

Net cash from (used by)

operating activities (4,656) - - - -

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property,

plant and equipment 3,685 - - - -

Total cash received 3,685 - - - -

Cash used

Purchase of property, plant,

equipment and intangibles 133,279 185,583 220,838 117,069 94,319

Total cash used 133,279 185,583 220,838 117,069 94,319

Net cash from (used by)

investing activities (129,594) (185,583) (220,838) (117,069) (94,319)

FINANCING ACTIVITIES

Cash received

Contributed equity 133,285 185,583 220,838 117,069 94,319

Total cash received 133,285 185,583 220,838 117,069 94,319

Net cash used by

financing activities 133,285 185,583 220,838 117,069 94,319

Net increase (decrease)

in cash held (965) - - - -

Cash and cash equivalents at the

beginning of the reporting period 7,383 6,418 6,418 6,418 6,418

Effect of exchange rate movements

on cash and cash equivalents at

the beginning of reporting period

Cash and cash equivalents at the

end of the reporting period 6,418 6,418 6,418 6,418 6,418


104

Table 3.2.5: Capital Budget Statement — Departmental

Consistent with information contained in the Statement of Asset Movements and the Budgeted Statement of Cash Flows. DCB = departmental capital budget 1. Includes both current and prior Act 2 and Bills 4 appropriations.

2. Does not include annual finance lease costs. Include purchase from current and previous years’ DCBs.



2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

NEW CAPITAL APPROPRIATIONS

Capital budget - Act No. 1 (DCB) 60,592 32,604 32,037 37,101 27,820

Equity injections - Act No. 2 71,849 152,979 188,801 79,968 66,499

Total new capital appropriations 132,441 185,583 220,838 117,069 94,319

Provided for:

Purchase of non-financial assets 133,285 185,583 220,838 117,069 94,319

Total Items 133,285 185,583 220,838 117,069 94,319

PURCHASE OF NON-FINANCIAL

ASSETS

Funded by capital appropriations167,651 152,979 188,801 79,968 66,499

Funded by capital appropriation - DCB265,634 32,604 32,037 37,101 27,820

TOTAL AMOUNT SPENT 133,285 185,583 220,838 117,069 94,319

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases 133,285 185,583 220,838 117,069 94,319

Total cash used to

acquire assets 133,285 185,583 220,838 117,069 94,319


105

Table 3.2.6: Statement of Asset Movements (2014-15)

1. "Appropriation equity" refers to equity injections provided through Appropriation Acts No. 2 and Bill No. 4 2014-15.


Asset Category (as appropriate)

Land Buildings Other property, Computer L&B, IP&E Total

plant andsoftware and held for sale

equipment intangibles

$'000 $'000 $'000 $'000 $'000 $'000

As at 1 July 2014

Gross book value 25,500 117,364 296,959 479,478 1,100 920,401

Accumulated

and impairment - - (1) (304,598) (304,599)

Opening net book balance 25,500 117,364 296,958 174,880 1,100 615,802-

CAPITAL ASSET ADDITIONS

Estimated expenditure on

new or replacement assets

By purchase - appropriation equity1 1,454 13,689 132,505 37,935 185,583

Total additions 1,454 13,689 132,505 37,935 - 185,583

Other movements

Depreciation/amortisation expense - (18,356) (42,082) (47,352) - (107,790)

Total other movements - (18,356) (42,082) (47,352) - (107,790)

As at 30 June 2015

Gross book value 26,954 131,053 429,464 517,413 1,100 1,105,984

Accumulated

and impairment - (18,356) (42,083) (351,950) - (412,389)

Closing net book balance 26,954 112,697 387,381 165,463 1,100 693,595


106

Schedule of Administered Activity

Table 3.2.7: Schedule of Budgeted Income and Expenses Administered on Behalf of Government (for the period ended 30 June)




2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

EXPENSES ADMINISTERED ON

BEHALF OF GOVERNMENT

Suppliers 928 934 926 914 923

Write-down and impairment of assets 2,979 2,500 2,500 2,500 2,500

Total expenses administered

on behalf of Government 3,907 3,434 3,426 3,414 3,423

LESS:

OWN-SOURCE INCOME

Own-source revenue

Taxation revenue

Customs duty 9,279,034 9,059,250 8,309,450 8,729,450 8,989,450

Other taxes, fines and fees 1,088,989 1,254,390 1,312,682 1,374,629 1,437,614

Total taxation revenue 10,368,023 10,313,640 9,622,132 10,104,079 10,427,064

Non-taxation revenue

Sale of goods and rendering

of services 3,786 2,500 2,500 2,500 2,500

Total non-taxation revenue 3,786 2,500 2,500 2,500 2,500

Total own-source revenues

administered on behalf of

Government 10,371,809 10,316,140 9,624,632 10,106,579 10,429,564

Total own-sourced income

administered on behalf of

Government 10,371,809 10,316,140 9,624,632 10,106,579 10,429,564

Net Cost of (contribution by)

services (10,367,902) (10,312,706) (9,621,206) (10,103,165) (10,426,141)

Surplus (Deficit) before income tax 10,367,902 10,312,706 9,621,206 10,103,165 10,426,141

Income tax expense

Surplus (deficit) after income tax 10,367,902 10,312,706 9,621,206 10,103,165 10,426,141

Total comprehensive income (loss) 10,367,902 10,312,706 9,621,206 10,103,165 10,426,141


107

Table 3.2.8: Schedule of Budgeted Assets and Liabilities Administered on Behalf of Government (as at 30 June)




2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

ASSETS ADMINISTERED ON


Financial assets

Cash and cash equivalents 7,704 7,704 7,704 7,704 7,704

Taxation receivables 256,290 256,290 256,290 256,290 256,290

Other receivables 5,119 7,619 10,119 10,119 10,119

Total financial assets 269,113 271,613 274,113 274,113 274,113

Total assets administered


LIABILITIES ADMINISTERED ON


Payables

Other payables 8,348 8,348 8,348 8,348 8,348

Total payables 8,348 8,348 8,348 8,348 8,348

Interest bearing liabilities

Security deposits 2,246 2,246 2,246 2,246 2,246

Total interest bearing liabilities 2,246 2,246 2,246 2,246 2,246

Total liabilities administered


Net assets/(liabilities) 258,519 261,019 263,519 263,519 263,519


108

Table 3.2.9: Schedule of Budgeted Administered Cash Flows (for the period ended 30 June)




2013-14 2014-15 2015-16 2016-17 2017-18

$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIES

Cash received

Sales of goods and rendering

of services 3,776 2,500 2,500 2,500 2,500

Cash from the Official Public Account 329,882 420,000 420,000 420,000 420,000

Dividends

Taxes 10,654,574 10,612,723 9,921,010 10,402,946 10,725,940

Appropriation Receipts - 934 926 914 923

Total cash received 10,988,232 11,036,157 10,344,436 10,826,360 11,149,363

Cash used

Cash to the Official Public Account 10,661,357 10,615,223 9,923,510 10,405,446 10,728,440

Suppliers 928 934 926 914 923

Cash used - Other 319,134 420,000 420,000 420,000 420,000

Total cash used 10,981,419 11,036,157 10,344,436 10,826,360 11,149,363

Net cash used by

operating activities 6,813 - - - -

Net increase (decrease) in

cash held 6,813 - - - -

Cash and cash equivalents at

beginning of reporting period 891 7,704 7,704 7,704 7,704

Cash and cash equivalents at end

of reporting period 7,704 7,704 7,704 7,704 7,704


109

Notes to the Financial Statements

Basis of accounting

The budgeted financial statements have been prepared on an accrual accounting basis, having regard to Statements of Accounting Concepts, and in accordance with the Finance Minister’s Orders, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Departmental

Revenue from government

Amounts appropriated for programmes are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Employee expenses

Employee expenses consist of salaries, leave entitlements, redundancy expenses, superannuation and non-salary benefits.

Supplier expenses

Supplier expenses consist of administrative costs, consultants’ costs, travel expenses and property operating expenses.

Cash

Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Assets

Assets are made up of cash, receivables, leasehold improvements and plant and equipment. All assets are held at fair value.

Liabilities

Liabilities are made up of employee salary and leave entitlements, property lease make-good provisions and amounts owed to creditors.

Administered

Revenues

All administered revenues relate to the core operating activities performed by the ACBPS on behalf of the Australian Government, including the collection of customs duty, revenue associated with the Tourist Refund Scheme and revenue associated with the passenger movement charge.

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