Australian Securities and Investments Commission
Section 1:  Overview, Additional Estimates and Variations to Outcomes
Overview
There has been no change to the overview to that included in the 1999-2000 Portfolio Budget Statements.
Additional Estimates and Variations to Outcomes
Provision of $303,000 has been provided to cover the cost of bank fees and charges as a result of the devolution of banking to agencies.

	Australian Securities and Investments Commission
Chairperson:  Mr Alan Cameron		
							
	Overall Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians		
							
	Outcome 1
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers
Total Price of Outputs:  $137.466 million
Agency Outcomes Appropriation:  $132.381 million		
							
	Output Group 1.1
Australian Securities and Investments Commission		

Output 1.1.1
Policy and guidance about the laws administered by ASIC		Output 1.1.2
Comprehensive and accurate information on companies and corporate activity		Output 1.1.3
Compliance monitoring and licensing of participants in the financial system to protect consumer interests and ensure market integrity 		Output 1.1.4
Enforcement activity to give effect to the laws administered by ASIC	

Breakdown of Additional Estimates by Appropriations Bill
Table 1.2:  Appropriation Bill (No 3) 1999-2000
	1998-99
Estimated Expenses
$’000	1999-00
Budget

$’000	1999-00
Revised

$’000	Additional Estimates

$’000	Reduced Estimates

$’000	
Agency Outputs
Outcome 1
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers	

144,650	

132,078	

132,381	

303	

—	
Total	144,650	132,078	132,381	303	—	

Table 1.4:  Staff Years (Number)
	1999-00
Budget	1998-99
Revised	Variation	
Outcome 1	1,272	1,272	—	

Section 2:  Outcomes and Outputs Information
Outcomes and Output Groups
The Australian Securities and Insurance Commission (ASIC) has not made any changes to its outcome or outputs since the 1999‑2000 Portfolio Budget Statements.
Revised Performance Information and Level of Achievement – 1999-2000
The ASIC has not made any changes to its Performance Information since the 1999‑2000 Portfolio Budget Statements.

Section 3:  Budget Financial Statements
The budget financial statements will form the basis of the financial statements that will appear in the Australian Securities and Investments Commission’s 1999-2000 Annual Report, and form the basis for the input into the Whole of Government Accounts.
Budget Statement of Revenues and Expenses (Budget Operating Statement)
This statement provides a picture of the expected financial results for ASIC by identifying full accrual expenses and revenues, which highlights whether ASIC is operating at a sustainable level.
Budget Statement of Assets and Liabilities (Budget Balance Sheet)
This statement shows the financial position of ASIC. It enables decision-makers to track the management of ASIC’s assets and liabilities.
Budget Cash Flow Statement
This statement identifies expected cash flows from operating activities, investing activities and financing activities.
Capital Budget
This statement shows all proposed capital expenditure funded through the Budget as appropriations or from internal sources.

Table 3.1:  Budget Statement of Revenue and Expenses
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Agency Revenue and Expenses						
Revenues						
Revenue from government						
Ordinary annual appropriations (net appropriations)	137,028	132,381	129,020	135,894	135,590	
Resources received free of charge	458	500	500	500	500	
Revenue from other sources						
Other revenue from other sources	9,232	4,585	4,275	4,275	4,275	
Total Revenue	146,718	137,466	133,795	140,669	140,365	
Expenses						
Employees	77,271	77,791	73,915	76,286	74,419	
Depreciation and amortisation	8,258	6,910	8,434	9,474	10,474	
Other costs of providing goods and services	58,132	52,099	51,005	54,468	55,031	
Other	2,172	575	350	350	350	
Total Expenses	145,833	137,375	133,704	140,578	140,274	
Operating Result Before Capital User Charge	
885	
91	
91	
91	
91	
Capital User Charge	—	91	91	91	91	
Transfers and Dividends	—	—	—	—	—	
Accumulated Results at Year End	—	—	—	—	—	
Net contribution to government	1,328	1,328	1,328	1,328	1,328	

Table 3.1:  Budget Statement of Revenue and Expenses  Administered Item
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Administered Revenue and Expenses						
Revenues						
Revenue from other sources						
Other revenue from other sources	338,988	353,169	355,818	359,037	364,333	
Total Revenue	338,988	353,169	355,818	359,037	364,333	
Expenses						
Other	7,773	2,000	2,000	2,000	2,000	
Total Expenses	7,773	2,000	2,000	2,000	2,000	
Operating Result Before Capital User Charge	
331,215	
351,169	
353,818	
357,037	
362,333	
Capital User Charge	—	—	—	—	—	
Transfers and Dividends	(331,778)	(349,000)	(350,600)	(357,000)	(361,800)	
Accumulated Results at Year End						
Net contribution to government	26,897	29,066	32,284	32,321	32,854	

Table 3.2:  Budget Statement of Assets and Liabilities
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Agency Assets and Liabilities						
Debt						
Loans	4,822	2,772	—	—	—	
Leases	7,690	5,360	3,811	2,966	2,395	
Total Debt	12,512	8,132	3,811	2,966	2,395	
Provisions and Payables						
Employees	21,402	22,703	23,649	24,645	25,618	
Suppliers	1,259	4,181	4,181	4,181	4,181	
Other	816	225	—	—	—	
Total Provisions and Payables	23,477	27,109	27,830	28,826	29,799	
Equity						
Accumulated results	1,328	1,328	1,328	1,328	1,328	
Reserves	325	325	325	325	325	
Total Equity	1,653	1,653	1,653	1,653	1,653	
Total Liabilities and Equity	37,642	36,894	33,294	33,445	33,847	
Financial Assets						
Cash	8,802	7,891	4,896	10,440	16,213	
Receivables	1,552	2,272	2,271	2,269	2,270	
Total Financial Assets	10,354	10,163	7,167	12,709	18,483	
Non-financial Assets						
Land and buildings	7,335	6,423	7,613	4,813	2,013	
Infrastructure, plant and equipment	18,226	18,428	16,729	14,180	11,631	
Other	1,727	1,880	1,785	1,743	1,720	
Total Non-financial Assets	27,288	26,731	26,127	20,736	15,364	
Total Assets	37,642	36,894	33,294	33,445	33,847	

Table 3.2:  Budget Statement of Assets and Liabilities  Administered Item
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Administered Assets and Liabilities						
Debt						
Leases	—	—	—	—	—	
Total Debt	—	—	—	—	—	
Provisions and Payables						
Employees	—	—	—	—	—	
Suppliers	—	—	—	—	—	
Other	1,420	700	700	700	700	
Total Provisions and Payables	1,420	700	700	700	700	
Equity						
Accumulated results	26,897	29,066	32,284	32,321	32,854	
Reserves	—	—	—	—	—	
Total Equity	26,897	29,066	32,284	32,321	32,854	
Total Liabilities and Equity	28,317	29,766	32,984	33,021	33,554	
Financial Assets						
Cash	8,041	3,600	4,100	3,600	3,800	
Receivables	12,134	13,000	14,000	14,500	14,500	
Accrued revenue	8,142	13,166	14,884	14,921	15,254	
Total Financial Assets	28,317	29,766	32,984	33,021	33,554	
Non-financial Assets						
Infrastructure, plant and equipment	—	—	—	—	—	
Intangibles	—	—	—	—	—	
Other	—	—	—	—	—	
Total Non-financial Assets	—	—	—	—	—	
Total Assets	28,317	29,766	32,984	33,021	33,554	

Table 3.3:  Budget Cash Flow Statement
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Agency Cash Flows						
Operating Activities						
Cash Received						
Appropriations	137,028	132,381	129,020	135,894	135,590	
Sales of goods and services	2,601	3,070	2,651	2,650	2,650	
Other	6,514	1,500	1,400	1,400	1,400	
Total Cash Received	146,143	136,951	133,071	139,944	139,640	
Cash Used						
Employees	76,314	76,289	72,561	74,880	73,038	
Suppliers	57,681	53,198	52,683	55,270	55,579	
Other	—	—	—	—	—	
Total Cash Used	133,995	129,487	125,244	130,150	128,617	
Net Cash from Operating Activities	12,148	7,464	7,827	9,794	11,023	
Investing Activities						
Cash Received						
Proceeds from sale of property, plant and equipment	
49	
125	
125	
125	
125	
Other	660	—	—	—	—	
Total Cash Received	709	125	125	125	125	
Cash Used						
Purchase of property, plant and equipment	10,212	6,450	8,175	4,375	5,375	
Total Cash Used	10,212	6,450	8,175	4,375	5,375	
Net Cash from Investing Activities	(9,503)	(6,325)	(8,050)	(4,250)	(5,250)	
Financing Activities						
Cash Received						
Total Cash Received	—	—	—	—	—	
Cash Used						
Repayment of borrowings	1,678	2,050	2,772	—	—	
Total Cash Used	1,678	2,050	2,772	—	—	
Net Cash from Financing Activities	(1,678)	(2,050)	(2,772)	—	—	
Net increase/decrease in cash held	967	(911)	(2,995)	5,544	5,773	
Add cash as at 1 July	7,835	8,802	7,891	4,896	10,440	
Cash as at 30 June	8,802	7,891	4,896	10,440	16,213	

Table 3.3:  Budget Cash Flow Statement  Administered Item
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Administered Cash Flows						
Operating Activities						
Cash Received						
Appropriations	—	—	—	—	—	
Sales of goods and services	—	—	—	—	—	
Other	336,051	351,200	353,100	358,500	364,000	
Total Cash Received	336,051	351,200	353,100	358,500	364,000	
Cash Used						
Employees	—	—	—	—	—	
Suppliers	—	—	—	—	—	
Other	331,778	355,641	352,600	359,000	363,800	
Total Cash Used	331,778	355,641	352,600	359,000	363,800	
Net Cash from Operating Activities	4,273	(4,441)	500	(500)	200	
Net increase/decrease in cash held	4,273	(4,441)	500	(500)	200	
Add cash as at 1 July	3,768	8,041	3,600	4,100	3,600	
Cash as at 30 June	8,041	3,600	4,100	3,600	3,800	

Capital Budget
Table 3.4:  Capital Budget
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Funded by capital appropriations	10,212	6,450	8,175	4,375	5,375	
Funded internally by agency resources	—	—	—	—	—	
Total	10,212	6,450	8,175	4,375	5,375	
Notes to the Financial Statements
Budget Statement of Revenue and Expenses
Revenue
Ordinary Annual Appropriations (Net Appropriations)
The amount appropriated in 1998‑99 is higher than in subsequent years. This is predominantly due to non-recurring implementation costs of the Financial System Inquiry recommendations which were provided in the 1989‑99 appropriation. To a lesser extent, the 1998‑99 financial year discloses a cash based appropriation whereas all subsequent appropriations are accrual based.
Revenue from Other Sources
This revenue is higher in 1998‑99 compared to subsequent years as it includes Business Names Register usage fees. These fees will no longer be a significant revenue stream after 1998‑99 as the States will have implemented their own Business Names systems from 1 July 1999.
Expenses
Employee Expenses
There is a decline in 2000-01 primarily because the funding for initiatives associated with the Managed Investments Bill ceases at the end of 1999‑2000. This is subject to a Parliamentary review in 2000‑01. Secondary reasons include savings in salaries and package costs associated with voluntary redundancies undertaken in prior years. There is also a reduction in funding provided for initiatives associated with the Corporations Law Economic Reform Project, relative to prior years. 
Other Costs of Providing Goods and Services
These expenses decline in 1999‑2000 in direct proportion to the drop in funding from 1998‑99 to 1999‑2000. Funding was provided in 1998-99 for non‑recurring implementation costs of the Financial System Inquiry recommendations.
Other Expenses
In 1998‑99 these expenses primarily reflect losses associated with decrements arising from the revaluation of assets and the writedown of assets. Other expenses in the forward years are related to the writedown of assets.
Budget Statement of Assets and Liabilities
Debt
This balance relates to borrowings made out of future Parliamentary appropriations. It will be repaid by the end of June 2000.

Appendix 1
Non-Appropriation Departmental and Administered Revenue
	Budget Estimate	Revised Estimate	
	1999-00
$’000	1999-00
$’000	
External Departmental Revenue	351,169	351,169	
Total Estimated Revenue	351,169	351,169