Australian Office of Financial Management
Section 1:  Overview, Additional Estimates and Variations to Outcomes
Overview
The Australian Office of Financial Management (AOFM) was established on 1 July 1999 as a ‘prescribed agency’ under the Financial Management and Accountability Act 1997. At that time it assumed responsibility for the Commonwealth’s debt management activities previously undertaken by the Department of the Treasury.
The AOFM will significantly enhance the Commonwealth’s capacity to manage its net debt portfolio, offering the prospect of savings in debt servicing costs and an improvement in the balance sheet net worth of the Commonwealth over time. It will do so by ensuring that Government debt is managed at the lowest possible cost, consistent with an acceptable degree of risk and by providing expert advice to the Treasurer in the administration of responsibilities and the implementation of Government decisions.
Additional Estimates and Variations to Outcomes
The AOFM is seeking $6.475 million in Appropriation Bill 3 and returning a saving of $0.066 million in Appropriation Bill 4.
The additional funding requirement in relation to Appropriation Bill 3 is a result of a funding classification amendment to the International Finance Corporation appropriation (with Treasury). This classification change results in an Additional Estimate bid of $6.475 million.
The saving in relation to Appropriation Bill 4 is as a result of a reduction in anticipated principal repayments of Australian National Railways Commission debt assumed by the Commonwealth in the 1998-99 financial year.

Breakdown of Additional Estimates by Appropriations Bill
Table 1.3:  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	
Administered Expenses						
Outcome 1
To enhance the Commonwealth’s capacity to manage it’s net debt portfolio, offering the prospect of savings in debt servicing costs and an improvement in the net worth of the Commonwealth over time	

—	

8,078	

14,553	

6,475	

—	
Total	—	8,078	14,553	6,475	—	
Agency Outputs						
Outcome 1
To enhance the Commonwealth’s capacity to manage it’s net debt portfolio, offering the prospect of savings in debt servicing costs and an improvement in the net worth of the Commonwealth over time	

—	

5,682	

5,682	

—	

—	
Total	—	5,682	5,682	—	—	
Total	—	13,760	20,235	6,475	—	

Table 1.4:  Appropriation Bill (No 4) 1999-2000
	1998-99
Estimated Expenses
$’000	1999-00
Budget

$’000	1999-00
Revised

$’000	Additional Estimates

$’000	Reduced Estimates

$’000	
Equity Injections and Loans						
Equity Injections	—	2,895	2,895	—	—	
Loans	—	749	749	—	—	
Carryover from previous years	
—	
—	
—	
—	
—	
Administered Capital	—	77,300	77,234	—	(66)	
Total	—	80,944	80,878	—	(66)	
Table 1.5:  Staff Years (Number)
	1999-00
Budget	1999-00
Revised	Variation	
Outcome 1	42	42	—	

Section 2:  Revisions to Outcomes and Outputs
Outcomes and Output Groups
The following diagram shows the interim Outcome Framework that the AOFM is currently operating under.
The Outcome/Output structure depicted represents that which applied to the former Debt Management Office when it resided within the Department of the Treasury. A more comprehensive Outcome Framework, which recognises the relationship between Outputs produced by the AOFM and the contribution to Government Outcomes, is currently being developed as part of a larger business planning process. This will be completed as part of the 2000-2001 Budget process.

	Australian Office of Financial Management
A/g Chief Executive Officer:  Peter McCray		
							
	Overall Government Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians.		
							
	Outcome 1
To enhance the Commonwealth’s capacity to manage it’s net debt portfolio, 
offering the prospect of savings in debt servicing costs and an improvement in the 
net worth of the Commonwealth over time
Total Price of Outputs:  $5.707 million
Total Administered Expenses:  $8,580.854 million		
							
	Output 1.1
Debt Management
Total Price of Output 1:  $5.707 million
Total Administered Expenses — Output 1:  $8,580.854 million		

Outcome 1
Explanation of Variations
As the AOFM was established after the 1999-2000 Budget the following interim performance information is provided.
Performance Information and Level of Achievement — 1999-2000
Table 2.1 shows the Performance Measures that apply to the Outcome Framework that the AOFM is currently operating under.
Table 2.1: Performance Information for Outputs
Performance Information for Administered Items (Including Third Party Outputs)	
	
Debt issued by the Commonwealth (including CGS allocated to States and Territories) and debt assumed from Commonwealth agencies.	Achievement of the Commonwealth’s financing task in a cost-effective manner.	
	
Performance Information  —  Departmental Outputs	
Output 1.1 — Debt Management	Achievement of the Commonwealth’s financing task in a cost-effective manner. 
Timely production of reports on debt management activities.
Efficient execution of the Commonwealth’s borrowing activities. Partial indicators include the range of accepted bids and the basis point spread between tender and secondary market yields.
Efficient management of the Commonwealth’s cash balances. Indicators include achievement of the Ministerially endorsed cumulative average cash balance target as at end-year.	
More detailed key indicators of performance, along with the identification of critical success factors, will be identified as an integral part of the business planning process being undertaken. Wherever possible, performance indicators will be established that can readily be measured in terms of efficiency of operation, effectiveness in contributing to Government Outcomes and analysis of comparative benchmarks.
Evaluations
Performance with regard to producing the Debt Management Output is currently evaluated using benchmark analysis and regular review of the broader risk management framework to ensure that it remains appropriate in the light of Commonwealth operations and market conditions.

Section 3:  Budget Financial Statements
The budget financial statements will form the basis of the financial statements that will appear in the AOFM’s 1999-2000 Annual Report, as well as the input into the Whole of Government Accounts.
Budget Statement of Revenue and Expenses (Budget Operating Statement)
This statement provides a picture of the expected financial results for the AOFM by identifying full accrual expenses and revenues, which highlights whether the agency is operating at a sustainable level.
Budget Statement of Assets and Liabilities (Budget Balance Sheet)
This statement shows the financial position of the AOFM. It enables decision-makers to track the management of the agency’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 resources.
Agency Non-financial Assets — Summary of Movement
This statement shows the movement in the AOFM’s non‑financial assets over the Budget year 1999-2000.

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)	

—	

5,682	

5,455	

5,595	

5,708	
Revenue from other sources						
Other revenue from other sources	
—	
25	
25	
25	
25	
Total Revenue	—	5,707	5,480	5,620	5,733	
Expenses						
Employees	—	3,535	3,179	3,282	3,359	
Depreciation and amortisation	
—	
140	
79	
79	
79	
Other costs of providing goods and services	
—	
2,032	
2,222	
2,259	
2,295	
Total Expenses	—	5,707	5,480	5,620	5,733	
Operating Result Before Capital User Charge	

—	

—	

—	

—	

—	
Capital User Charge	—	—	—	—	—	
Accumulated Results at Year End	
—	
(202)	
(202)	
(202)	
(202)	
Administered Revenue and Expenses						
Revenues						
Interest and dividends	
—	
2,431,872	
2,884,255	
3,431,666	
4,864,106	
Other sources of non-taxation revenue	

—	

37	

24	

21	

18	
Appropriations	—	8,191,866	8,058,452	7,871,371	8,014,636	
Total revenue	—	10,623,775	10,942,731	11,303,058	12,878,760	
Expenses						
Other costs of providing goods and services	

—	

370,827	

4,073	

2,747	

2,329	
Grants	—	59,626	53,400	43,638	28,416	
Interest and financing costs	
—	
8,150,401	
8,287,979	
7,824,986	
7,983,891	

Table 3.1:  Budget Statement of Revenue and Expenses (continued)
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Total Expenses	—	8,580,854	8,345,452	7,871,371	8,014,636	
Net contribution to Government	
—	
2,042,921	
2,597,279	
3,431,687	
4,864,124	
Cash transfers to/from DoFA	
—	
(27,369,607)	
(47,392,349)	
(49,863,788)	
(70,389,800)	
Accumulated Results After Transfers	
—	
(109,424,038)	
(154,219,108)	
(200,651,209)	
(266,176,885)	

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	—	725	574	425	274	
Total Debt	—	725	574	425	274	
Provisions and Payables						
Employees	—	885	980	1,121	1,270	
Suppliers	—	27	28	29	30	
Total Provisions and Payables	
—	
912	
1,008	
1,150	
1,300	
Total Liabilities	—	1,637	1,582	1,575	1,574	
Equity						
Accumulated results	—	(202)	(202)	(202)	(202)	
Total Equity	—	(202)	(202)	(202)	(202)	
Total Liabilities and Equity	
—	
1,435	
1,380	
1,373	
1,372	
Financial Assets						
Cash	—	685	709	781	859	
Total Financial Assets	
—	
685	
709	
781	
859	
Non-financial Assets						
Infrastructure, plant and equipment	
—	
750	
671	
592	
513	
Total Non-financial Assets	
—	
750	
671	
592	
513	
Total Assets	—	1,435	1,380	1,373	1,372	
Administered Assets and Liabilities						
Debt						
Government Securities	
—	
73,485,157	
68,625,913	
54,084,862	
27,719,101	
Other	—	1,418,645	1,291,304	882,278	684,915	
Total Debt	—	74,903,802	69,917,217	54,967,140	28,404,016	
Provisions and Payables						
Other	—	2,495,113	2,152,279	2,123,200	2,126,781	
Total Provisions and Payables	
—	
2,495,113	
2,152,279	
2,123,200	
2,126,781	
Total Liabilities	—	77,398,915	72,069,496	57,090,340	30,530,797	
Equity						
Accumulated results	—	(109,424,038)	(154,219,108)	(200,651,209)	(266,176,885)	
Capital	—	40,269,541	89,590,141	150,828,609	242,929,028	

Table 3.2:  Budget Statement of Assets and Liabilities (continued)
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Total Equity	—	(69,154,497)	(64,628,967)	(49,822,600)	(23,247,857)	
Total Liabilities and Equity	
—	
8,244,418	
7,440,529	
7,267,740	
7,282,940	
Financial Assets						
Receivables	—	8,091,522	7,278,961	7,052,251	6,977,870	
Accrued revenues	—	150,001	158,169	212,090	301,671	
Total Financial Assets	
—	
8,241,523	
7,437,130	
7,264,341	
7,279,541	
Non-financial Assets						
Infrastructure, plant and equipment	
—	
2,895	
3,399	
3,399	
3,399	
Total Non-financial Assets	
—	
2,895	
3,399	
3,399	
3,399	
Total Assets	—	8,244,418	7,440,529	7,267,740	7,282,940	

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	—	5,682	5,455	5,595	5,708	
Other	—	25	25	25	25	
Total Cash Received	—	5,707	5,480	5,620	5,733	
Cash Used						
Employees	—	2,991	3,085	3,141	3,210	
Suppliers	—	2,006	2,221	2,258	2,294	
Total Cash Used	—	4,997	5,306	5,399	5,504	
Net Cash from Operating Activities	
—	
710	
174	
221	
229	
Investing Activities						
Cash Received						
Proceeds from sale of property, plant and equipment	

—	

—	

—	

—	

—	
Other	—	—	—	—	—	
Total Cash Received	—	—	—	—	—	
Cash Used						
Purchase of property, plant and equipment	
—	
749	
—	
—	
—	
Total Cash Used	—	749	—	—	—	
Net Cash from Investing Activities	
—	
(749)	
—	
—	
—	
Financing Activities						
Cash Received						
Proceeds from borrowings	
—	
749	
—	
—	
—	
Total Cash Received	—	749	—	—	—	
Cash Used						
Capital user charge paid	
—	
—	
—	
—	
—	
Repayment of borrowings	
—	
25	
150	
150	
150	
Total Cash Used	—	25	150	150	150	
Net Cash from Financing Activities	
—	
724	
(150)	
(150)	
(150)	
Net increase/decrease in cash held	—	
685	
24	
71	
79	
Add cash as at 1 July	—	—	685	709	781	
Cash as at 30 June	—	685	709	781	859	

Table 3.3:  Budget Cash Flow Statement (continued)
	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						
Interest and dividends	—	2,307,080	2,780,888	3,351,375	4,735,468	
Cash from CRF	—	8,358,074	8,306,087	7,874,080	7,971,998	
Other	—	38	25	20	20	
Total Cash Received	—	10,665,192	11,087,000	11,225,475	12,707,486	
Cash Used						
Grants	—	59,626	53,400	43,638	28,416	
Interest and other financing costs	
—	
8,292,609	
8,248,614	
7,827,695	
7,941,253	
Cash to CRF	—	2,307,118	2,780,913	3,351,395	4,735,488	
Other	—	5,839	4,073	2,747	2,329	
Total Cash Used	—	10,665,192	11,087,000	11,225,475	12,707,486	
Net Cash from Operating Activities	
—	
—	
—	
—	
—	
Investing Activities						
Cash Received						
Consolidated Revenue Fund	—	1,623,330	752,845	2,151,744	1,599,953	
Other	—	1,487,538	696,771	1,817,393	1,487,312	
Total Cash Received	—	3,110,868	1,449,616	3,969,137	3,087,265	
Cash Used						
Consolidated Revenue Fund	—	1,487,538	696,771	1,817,393	1,487,312	
Other	—	1,623,330	752,845	2,151,744	1,599,953	
Total Cash Used	—	3,110,868	1,449,616	3,969,137	3,087,265	
Net Cash from Investing Activities	
—	
—	
—	
—	
—	
Financing Activities						
Cash Received						
Proceeds from borrowings	—	23,561,000	43,902,000	44,695,000	64,167,000	
Other	—	640,087	486,395	151,329	35,300	
Consolidated Revenue Fund	—	38,646,209	48,574,514	59,084,722	90,497,461	
Total Cash Received	—	62,847,296	92,962,909	103,931,051	154,699,761	
Cash Used						
Consolidated Revenue Fund 	—	23,574,951	43,914,665	44,695,000	64,167,000	
Repayment of borrowings	—	39,272,345	49,048,244	59,236,051	90,532,761	
Total Cash Used	—	62,847,296	92,962,909	103,931,051	154,699,761	
Net Cash from Financing Activities	
—	
—	
—	
—	
—	
Net increase/decrease in cash held	
—	
—	
—	
—	
—	
Add cash as at 1 July	—	—	—	—	—	
Cash as at 30 June	—	—	—	—	—	

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	
Agency						
Total Loans	—	749	—	—	—	
Total Capital Appropriations	—	749	—	—	—	
Represented by						
Purchase of non-current assets	—	749	—	—	—	
Total Departmental	—	749	—	—	—	
						
Administered						
Total Equity Injections	—	80,129	119,516	101,900	—	
Total Capital Appropriations	—	80,129	119,516	101,900	—	
Represented by						
Purchase of non-current assets	—	2,895	504	—	—	
Other 	—	77,234	119,012	101,900	—	
Total Items	—	80,129	119,516	101,900	—	
						
Administered Financial Assets Funded by Special Appropriations						
Administered Capital	—	40,189,412	49,201,084	61,136,568	92,100,419	
Represented by						
Purchase of non-current assets						
Other (primarily debt redemption)	
—	
40,189,412	
49,201,084	
61,136,568	
92,100,419	
Total Items	—	40,189,412	49,201,084	61,136,568	92,100,419	

Table 3.5:  Agency Non-financial Assets — Summary of Movement
Budget Year 1999-2000
	Land

$’000	Buildings

$’000	Total Land and Buildings

$’000	Other Infrastructure, Plant and Equipment
$’000	Total Infrastructure, Plant and Equipment
$’000	Intangibles

$’000	Total

$’000	
Gross Value								
As at 1 July 1999 (opening)	—	—	—	17	17	585	602	
Additions	—	—	749	—	749		749	
Disposals	—	—	—	—	—	—	—	
Other movements	—	—	—	—	—	—	—	
As at 30 June 2000	—	—	749	17	766	585	1,351	
Accumulated Depreciation	—	—	—	—	—	—	—	
As at 1 July 1999 (opening)	—	—	—	—	—	462	462	
Disposals	—	—	—	—	—	—	—	
Charge for the reporting period	—	—	12	4	16	123	139	
Other movements	—	—	—	—	—	—	—	
As at 30 June 2000	—	—	12	4	16	585	601	
Net Book Value as at 30 June 2000 (Closing Book Value)	
—	
—	
737	
13	
750	
—	
750	
Net Book Value as at 1 July 1999 (Opening Book Value)	
—	
—	
—	
17	
17	
123	
140	

Total Additions
Self funded	—	—	—	—	—	—	—	
Appropriations	—	—	749	—	—	—	749	
Total	—	—	749	—	—	—	749	

Notes to the Financial Statements
Budget Statement of Revenues and Expenses
Agency
Appropriations
The AOFM has prepared its estimates for the 1999-2000 and forward budget years to achieve a break-even operating result. Consequently the appropriation revenue from government represents the funding required to meet all expenses after deduction of revenue from other sources.
Revenues from Other Sources — Other Revenue from Other Sources
With the introduction of devolved banking arrangements on 1 July 1999, the AOFM has estimated that it will earn interest revenue of $25,000 in each of the budget years.
Expenses
The total expenses of the AOFM have been estimated by aggregating the direct divisional funding of the former Debt Management Office (within the Department of the Treasury) with the budget measure for the establishment of the Australian Office of Financial Management in the 1999-2000 Treasury Portfolio Budget Statement.
Administered
Interest and Dividends
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Interest on housing agreements	—	175,153	172,262	169,249	166,110	
Interest on state and territory debt	—	153,045	74,943	38,225	31,799	
Interest and dividends from other sources	
—	
2,103,674	
2,637,050	
3,224,192	
4,666,197	
Total Interest and Dividends	—	2,431,872	2,884,255	3,431,666	4,864,106	
Interest and dividends from other sources include interest from swaps and investments. 
Other Costs of Providing Goods and Services
In the 1999-2000 budget year other costs of providing goods and services includes a foreign exchange loss (both realised and unrealised) of $245.988 million in relation to cross-currency swaps. 
Grants
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Grants to State and Territory Governments	
—	
59,626	
53,400	
43,638	
28,416	
Total Grants	—	59,626	53,400	43,638	28,416	
Interest and Other Financing Costs
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Interest on government securities	—	6,333,767	5,839,219	5,496,643	5,517,723	
Interest on Swaps	—	1,775,607	2,151,929	2,305,449	2,461,474	
Interest on other debt	—	12,300	4,900	18,100	—	
Net repurchase premia	—	24,000	287,000	—	—	
Other financing costs	—	4,727	4,931	4,794	4,694	
Total Interest and other costs	—	8,150,401	8,287,979	7,824,986	7,983,891	
Budget Statement of Assets and Liabilities
Agency
The employee liabilities of the AOFM are expected to increase from the levels at 1 July 1999. The increased liability recognises that staff numbers are expected to grow significantly during the 1999-2000 budget year and that a proportion of staff will be transferring liabilities from other Commonwealth agencies.
The increase in estimated cash holdings recognises that the AOFM will need to hold certain revenue in reserve in order to:
•	settle employee liabilities as they fall due;
•	make asset replacements; and
•	repay loans.
A loan of $749,000 is expected to be drawn on during the 1999-2000 budget year to fund the acquisition of fit-out.  The loan is expected to be repaid over a 5-year period.
Administered
Government Securities
The government securities liability represents the book value of debt net of investments.
Other Debt
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Swaps principal	—	1,418,645	1,291,304	882,278	684,915	
Total Other Debt	—	1,418,645	1,291,304	882,278	684,915	
Other Provisions and Payables
	Actual	Revised Budget	Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Interest payable	—	2,495,113	2,152,279	2,123,200	2,126,781	
Total Other Provisions and Payables	
—	
2,495,113	
2,152,279	
2,123,200	
2,126,781	
Receivables
	Estimated Actual		Estimated	
	1998-99
$’000	1999-00
$’000	2000-01
$’000	2001-02
$’000	2002-03
$’000	
Loans to State and Territory Governments	
—	
5,074,484	
4,516,317	
4,290,314	
4,177,700	
Appropriations receivable	—	2,984,126	2,729,732	2,729,025	2,774,668	
Swap principal	—	32,912	32,912	32,912	25,502	
Total Receivables	—	8,091,522	7,278,961	7,052,251	6,977,870	

Other
Estimates of Administered Expenses from Appropriation Bill No.1 and No.2
	Budget
1999-00
$’000 (a)	Revised
 1999-00
$’000	
Appropriation Bill No.1			
Loan management expenses	4,043	4,043	
Overseas bond issues — lapsed coupons	10	10	
Australian National Railways Commission — debt assumption	
12,200	
10,500	
Total Appropriation Bill No.1	16,253	14,553	
			
Appropriation Bill No.2			
Australian National Railways Commission — debt assumption principal (b)	
—	
119,000	
Establishment of the Australian Office of Financial Management — capital	
—	
—	
Total Appropriation Bill No.2	—	119,000	
Total Appropriation Bill No.1 and No.2	16,253	133,553	
(a)	This column represents the appropriations to the Department of the Treasury during 1999-2000 budget.
(b)	This represents a book entry to recognise the assumption of debt of the Australian National Railways Commission.
Estimates of Administered Capital from Appropriation Bill No.2
	Budget
1999-00
$’000 (a)	Revised
 1999-00
$’000	
			
Australian National Railways Commission — debt assumption principal	
77,300	
77,234	
Establishment of the Australian Office of Financial Management — capital	
2,895	
2,895	
Total Administered Capital Appropriation Bill No.2	80,195	80,129	
(a)	This column represents the appropriations to the Department of the Treasury during 1999-2000 budget.

Assumption of Assets and Liabilities on 1 July 1999
On establishment of the Australian Office of Financial Management on 1 July 1999 the following assets and liabilities were assumed from the Department of the Treasury.
Assumption of assets and liabilities on 1 July 1999
Assets and Liabilities as at 1 July 1999	Agency 	Administered	

	1 July 1999
$’000	1 July 1999
$’000	
Debt			
Government securities	—	89,053,502	
Other debt	—	1,396,333	
Total Debt	—	90,449,835	
Provisions and Payables			
Employees	342	—	
Other	—	2,798,893	
Total Provisions and Payables	342	2,798,893	
Total Liabilities	342	93,248,728	
Equity			
Accumulated results	(202)	(84,097,352)	
Total Equity	(202)	(84,097,352)	
Total Liabilities and Equity	140	9,151,376	
Financial Assets			
Receivables	—	8,988,595	
Accrued revenue	—	162,781	
Total Financial Assets	—	9,151,376	
Non-financial Assets			
Infrastructure, plant and equipment	140	—	
Total Non-financial Assets	140	—	
Total Assets	140	9,151,376	

The Australian Office of Financial Management — 1999-2000 Appropriations
1999-2000 Appropriations ($’000)
	Administered Expenses	Price of Outputs	Total Appropriations (e)

	Total Estimated Expenses (f)

	
	Special Appropriations
(a)	Annual Appropriations	Total Administered Appropriations	Total Price of Outputs(c)	Revenue from Other Sources(d)	Revenue from Government (Appropriations)			

	Bill 1

	Bill 2
(SPPs & NAOs)(b)	

	

	Special

	Annual Bill 1

	Total

	(A)	(B)	(C)	(D=A+B+C)	(E)	(F)	(G)	(H=E-F-G)	(I=G+H)	(J=D+I)		
Outcome 1 —  To enhance the Commonwealth’s capacity to manage it’s net debt portfolio, offering the prospect of savings in debt servicing costs and an improvement in the net worth of the Commonwealth over time	

8,177,313	

14,553	

-	

8,191,866	

5,707	

25	

—	

5,682	

5,682	

8,197,548	

8,586,561	
Total	8,177,313	14,553	-	8,191,866	5,707	25	—	5,682	5,682	8,197,548	8,586,561	
Bill 2 and Special Appropriations Administered Capital(b)	40,269,541		
Bill 2 Departmental Carryover and Loans(b)	749		
Total Appropriations	48,467,838		
(a)	Estimated expenses from individual Special Appropriations are shown in Appendix 2. Appropriation has not been included above for estimated foreign exchange losses of $245.988 million and net repurchase premia expense of $24 million.
(b)	Appropriation has not been included above in relation to expense of $119 million for assumption of debt of the Australian National Railways Commission.
(c)	Refer to Budget Statement of Revenue and Expenses for Application of Agency Revenue (see Table 3.1).
(d)	Other Revenue includes other revenue from Government (eg resources free of charge) and revenue from other sources (eg sales of goods and services).
(e)	Links from Appropriations to Budget Financial Statements include Budget Statement of Revenue and Expenses (see Table 3.1); and Capital Budget (see Tables 3.4).
(f)	Total estimated expenses ($8,586.561 million) differs to total appropriations ($8,197.548 million) primarily for reasons stated at (a) and (b) above.

Appendix 1
Non-Appropriation Agency and Administered Revenue
	Budget
1999-00
$’000 (a)	Revised
1999-00
$’000	
Agency Revenue			
Agency Section 31 receipts	25	25	
Total Non-appropriation Agency Revenue	25	25	
Appropriations	5,682	5,682	
Total Agency Revenue	5,707	5,707	
			
Administered Revenue			
Advances to the Australian Capital Territory — Interest	2,484	2,484	
Advances to the States under the Housing Agreements — 
Interest	
101,814	
101,814	
Advances to the Northern Territory for Housing — Interest	
1,574	
1,574	
Advances to the States under the Housing Assistance Act 1973 — Interest	
151	
151	
Advances to the States under the States (Works and Housing Assistance) Acts — Interest	
71,185	
71,185	
Advances to the States under the War Service Lands Settlements Acts — Interest	
429	
429	
Interest paid by States and the Northern Territory on other loans	
150,561	
150,561	
Interest on financial assets	416,000	133,000	
Loan management expenses — Recoveries from the States and the Northern Territory	
38	
38	
Loans Securities Amendment Act 1998 (swaps) — Interest	1,690,151	1,970,673	
Other	298	—	
Total Non-appropriation Administered Revenue	2,434,685	2,431,909	
Appropriation revenue	9,005,043	8,191,866	
Total Administered Revenue	11,439,728	10,623,775	
(a)	This column represents the estimates of the Department of Treasury as detailed in the 1999-2000 budget.

Appendix 2
Estimates of Administered Expenses from Special Appropriations
	Budget
1999-00
$’000 (a)	Revised
 1999-00
$’000	
Airports (Transitional) Act 1996 — Former debts of the Federal Airports Corporation — Interest	
45,000	
44,550	
Commonwealth Inscribed Stock Act 1911, Loans Securities Act 1919, Loans Redemption and Conversion Act 1921	
7,344,219	
6,317,747	
Loans Securities Amendment Act 1988 (Swaps) — Interest	1,435,162	1,775,607	
Financial Agreement Act 1994 — Assistance for debt redemption	
59,610	
59,626	
Loans Redemption and Conversion Act 1921	5	5	
Loans Securities Amendment Act 1988 (Swaps) — Principal	—	245,988	
Moomba — Sydney Pipeline System Sale Act 1994	—	1	
Financial Agreement Act 1994 — Commonwealth Contribution to Debt Retirement Reserve Trust Account on State and Northern Territory Debt	

4,998	

5,010	
Financial Agreement Act 1994 — Interest on Debt Retirement Reserve Trust Account Balances	
829	
829	
Commonwealth Inscribed Stock Act 1911, Treasury Bills Act 1914 — Payment of Special Bond premiums on redemption	

5	

5	
Qantas Sale Act 1992 — Qantas debt servicing	1,820	1,920	
Other			
Loans Redemption and Conversion Act 1921	(128,600)	(28,550)	
Loan Flotation Expenses	563	563	
Loan Consolidation and Investment	(605,550)	—	
Loans Redemption and Conversion Act 1921 — Net repurchase premia	
387,000	
24,000	
Total Estimated Expenses	8,545,061	8,447,301	
(a)	This column represents the appropriations to the Department of the Treasury during 1999-2000 budget.