Document Index Portfolio Budget Statements Australian Prudential Regulation Authority

Section 3: Budget Financial Statements

• Budget Statement of Revenues and Expenses (Budget Operating Statement)
• Budget Statement of Assets and Liabilities (Budget Balance Sheet)
• Budget Cash Flow Statement
• Capital Budget
• Non-financial Assets -- Summary of Movement

The budget financial statements will form the basis of the financial statements that will appear in the Australian Prudential Regulation Authority'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 APRA by identifying full accrual expenses and revenues, which highlights whether APRA is operating at a sustainable level.

Budget Statement of Assets and Liabilities (Budget Balance Sheet)

This statement shows the financial position of APRA. It enables decision makers to track the management of APRA'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.

Non-financial Assets -- Summary of Movement

This statement shows the movement in APRA's non-financial assets over the Budget year 1999-2000.

Table 3.1: Budget Statement of Revenue and Expenses

Note: APRA does not have any Administered items.

Table 3.2: Budget Statement of Assets and Liabilities

Note: APRA does not have any Administered items.

Table 3.3: Budget Cash Flow Statement

Note: APRA does not have any Administered items.

CAPITAL BUDGET

Table 3.4: Capital Budget

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

Total Additions

NOTES TO THE FINANCIAL STATEMENTS

Budget Statement of Revenue and Expenses

Other services are the appropriation required to run the excluded superannuation fund on behalf of the ATO. The ATO will supervise excluded superannuation funds from 1 July 1999, but administrative arrangements during a transition period will require APRA to provide administrative support.

It is assumed that the Australian Government Actuary will transfer to the Treasury in 1999-2000 and discussions are currently under way to finalise the transfer. Sales from other goods and services drop in the budgeted year on the assumption that the transfer will take effect from 1 July 1999.

Depreciation and amortisation includes the amortisation of capitalised establishment expenses over the life of the loans.

The budget loss arises from the reduction in levies to industry. This was in response to the over collection of levies in prior year due to the increase in the asset values ahead of the prior forecast and under spends in supervision costs in 1998-99.

There is no capital charge on APRA, which is funded mainly by industry levies.

Budget Statement of Assets and Liabilities

The debt respresents the appropriation of $16.1m in 1998-99 and $4m in to be appropriated in 1999-00 less the repayments made. This funding was provided to support the establishment of APRA.

Accruals and provisions represent liabilities for employee benefits including leave and miscellaneous accruals.

Equity reflects accumulated results for 1998-99 and 1999-2000 in addition to the opening balance of $5.7 million being the net value of assets and liabilities transferred from the Reserve Bank and the Insurance and Superannuation Commission on the formation of APRA on 1 July 1998.

Financial assets include cash that may be held in government-backed securities and receivables for miscellaneous income derived by the agency.

Non-financial assets include assets held as leasehold improvements, furniture and fittings, computer hardware and office equipment; and intangibles include capitalised software and the establishment costs associated with setting up APRA. The treatment of establishment costs as a capitalised item in the balance sheet are subject to GAAP interpretation and acceptance by the ANAO at year end.

Budget Cash Flow Statement

Cash received from operating activities reflects: the appropriation received based on the levies collected from industry less amounts collected on behalf of the ATO and ASIC less loan repayments; cash from fees and charges; and interest payments from cash held as government backed investments. Cash received from operating activities has been netted from cash expended on employees and administration.

Cash received from investing activities includes the loans received to support the establishment of APRA.

Cash used includes cash spent on building infrastructure and cash used to pay off the loan.

Appendix 1

Non-Appropriation Agency and Administered Revenue

Note: Agency other income is derived from fees, charges and interest earned on investments. The income drops from 1998-99 due to transfer of Australian Government Actuary from APRA and the drop in the cash balance on which the interest is earned.

Appendix 2

Estimates of Expenses from Special Appropriations

Note: The estimates of expenses for levies is the cost of supervision incurred by APRA in carrying out this activity. The prepayment of establishment for the FI scheme is a loan to be repaid over three years for the expenses incurred in integrating the State based scheme. The loan will be recovered through levies on industry.