Companies and Securities Advisory Committee
Section 1:  Overview, Appropriations and Budget Measures Summary
Overview
The Companies and Securities Advisory Committee (CASAC) was established in September 1989. Its role, as set out in Section 148 of the Australian Securities and Investments Commission Act 1989 (the ASIC Act), is to advise the Minister on any matters concerning the Corporations Law or improving the efficiency of financial markets.  The Committee does not have any statutory role to advise on those insurance or trade practices consumer protection matters that were added to the jurisdiction of ASIC in 1998. ASIC has established a non‑statutory Consumer Advisory Panel to advise it on issues affecting consumers.
The Legal Committee was established in September 1991 to provide expert legal analysis, assessment and advice to the Advisory Committee.
The members of the Advisory Committee and Legal Committee are appointed in their personal capacities by the Treasurer.
Appropriations
The total appropriations for the CASAC in the 2000-01 Budget are $0.9 million (see Table 1.1 on the following page).

Companies and Securities Advisory Committee — Appropriations 2000-01
Table 1.1:  Appropriations ($’000)
Outcomes	Agency (Price of Outputs)		Administered		
	Revenue from Government (Appropriations)	Revenue from Other Sources(a)	Price of Outputs		Annual Appropriations	Special Approps	Total Administered Appropriations	Total Appropriations	
	Bill No 1

	Special
Approps
	Total	

		Bill No 1
	Bill No 2
(SPPs & NAOs)	

		
	(A)	(B)	(C=A+B)	(D)	(E= C+D)		(F)	(G)	(H)	(I=F+G+H)	(J=C+I)	
Outcome 1 — Confident and informed participation of investor and consumers in the financial system 	851	-	851	25	876		-	-	-	-	851	
Total	851	-	851	25	876		-	-	-	-	851	
Agency Capital (Equity Injections and Loans)		-	
Administered Capital		-	
Total Appropriations		851	
 (a)	Revenue from Other Sources includes other revenue from government (for example, resources free of charge) and revenue from services other than government (for example, sales of goods and services).
Administered Capital and Agency Capital (Equity Injections and Loans)
CASAC does not have an appropriation for an equity injection or loan or an appropriation for administered capital in 2000-01.

Section 2:  Outcomes and Outputs Information
Outcomes and Output Groups
The map below shows the relationship between Government outcomes and the contributing outputs for the Companies and Securities Advisory Committee (CASAC). Financial detail for Outcome 1 by output appears in Table 2.1 while non‑financial information for Outcome 1 appears in Table 2.2.
	Companies and Securities Advisory Committee
Convenor:  Mr Richard St John		
							
	Overall Outcome
Strong, sustainable economic growth and the improved wellbeing of Australians		
							
	Outcome 1
Confident and informed participation of investors and consumers
 in the financial system
Total Price of Outputs:  $0.876 million
Agency Outcomes Appropriation:  $0.851 million		
							
	Output Group 1.1
Companies and Securities Advisory Committee		

Output 1.1.1
Annual Report, discussion papers and reports		Output 1.1.2
Recommendations	

Changes to Outcomes and Ouputs
There are no proposed changes in outcomes or outputs from the previous year.
Outcome 1
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers.
Measures in the 2000-01 Budget
There are no measures for the CASAC in the 2000‑01 Budget.
Outcome 1  Resourcing
Table 2.1 shows how the 2000-01 appropriations translate to total resourcing for Outcome 1.
Table 2.1:  Total Resources for Outcome 1 
	Estimated Actual 	Budget
Estimate	
	1999-00
($’000)	2000-01
($’000)	
Agency appropriations
Output group 1.1  Companies and Securities Advisory Committee
Output 1.1.1 — Annual report, discussion papers and reports
Output 1.1.2 — Recommendations			
Subtotal output group 1.1	818	851	
Total revenue from Government (appropriations)
contributing to price of agency outputs	818
96.7%	851
97.1%	
Total revenue from other sources	28	25	
Total price of agency outputs
(Total revenue from Government and from other sources)	
846	
876	
Total estimated resourcing for outcome 1
(Total price of outputs and admin expenses)	
846	
876	

	1999-00	2000-01	
Average staffing levels (number)	3	4	
Outcome 1 — Contribution of Outputs
The output of CASAC is similar to the first output of the Australian Securities and Investments Commission (ASIC) policy and guidance about the laws administered by ASIC. CASAC focuses on the legislation related to companies and securities, and its operations involve initiating major policy innovation in corporate law, reviewing procedural and other issues in current practice, and reviewing draft legislative policy and Bills. This is basic to the achievement of the Government outcome of confident and informed participation of investors and consumers in the financial system.
Performance Information for Outcome 1
Table 2.2:  Performance Information 2000-01	
Performance information for agency outputs	
Output group 1.1 — Companies and Securities Advisory Committee	
Output 1.1.1 — Annual report, discussion paper 	and reports

Output 1.1.2 — Recommendations

	The Advisory Committee seeks to stimulate and lead public debate on the enhancement of standards for corporations and participants in financial markets, and proposes regulatory reform where necessary.
To achieve these performance goals, the Advisory Committee seeks the expert advice of its Legal Committee, encourages public comment on its discussion papers and thoroughly reviews all submissions received on them. This well established process of public review is designed to ensure that the commercial community has the opportunity to fully participate in the law reform process.
Through this consultation and review process, and the provision of timely advice to the Treasurer and the Minister for Financial Services and Regulation in the form of Advisory Committee Reports and other papers, the Committee seeks to ensure that Australian financial markets and corporations continue to operate in a commercial environment of the highest standards supported by appropriate legislation.	
Evaluations
There are no planned evaluation activities in the 2000-01 financial year.
Competitive Tendering and Contracting
CASAC predominantly achieves cost effectiveness in its non-core operations through the use of contracts arranged by or through ASIC. This would mainly relate to travel management and other administrative expenditure.

Section 3:  Budgeted Financial Statements
The budgeted financial statements will form the basis of the financial statements that will appear in the CASAC 2000‑01 Annual Report, and form the basis for the input into the Whole of Government Accounts. The financial statements should be read in conjunction with the accompanying notes.
The budgeted financial statements have been prepared in accordance with the GST accounting guidelines of the Urgent Issues Group (UIG) of the Australian Accounting Research Foundation. The UIG consensus requires that expenses and assets be accounted for net of recoverable GST, revenues be accounted for net of GST payable and that cash flows and accounts payable and receivable be reported gross. Appropriations are thus net of recoverable GST amounts.
Budget Statement of Revenues and Expenses (Budget Operating Statement)
This statement provides a picture of the expected financial results for CASAC by identifying full accrual expenses and revenues, which highlights whether CASAC is operating at a sustainable level.
Budget Statement of Assets and Liabilities (Budget Balance Sheet)
This statement shows the financial position of CASAC. It enables decision-makers to track the management of CASAC’s assets and liabilities.
Budget Cash Flow Statement
This statement identifies expected cash flows from operating activities, investing activities and financing activities.
Capital Budget Statement
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 CASAC’s non-financial assets over the Budget year 2000-01.

Table 3.1:  Agency Budget Statement of Revenues and Expenses
(for the period ended 30 June)
	Estimated Actual
1999-00
$’000	Budget Estimate
2000-01
$’000	Forward Estimate
2001-02
$’000	Forward Estimate
2002-03
$’000	Forward Estimate
2003-04
$’000	
Operating revenue						
Revenues from Government	818	851	853	876	898	
Interest	28	25	25	25	25	
Total operating revenues	846	876	878	901	923	
Operating expenses						
Employees	402	396	394	405	409	
Suppliers	361	389	391	399	410	
Depreciation and amortisation	47	60	62	66	73	
Total operating expenses	810	845	847	870	892	
Operating surplus or deficit after abnormal and extraordinary items	36	31	31	31	31	
Capital use charge paid	36	31	31	31	31	
Operating surplus or deficit after abnormal and extraordinary items and CUC	-	-	-	-	-	

Table 3.2:  Agency Budget Statement of Assets and Liabilities
(as at 30 June)
	Estimated Actual
1999-00
$’000	Budget Estimate
2000-01
$’000	Forward Estimate
2001-02
$’000	Forward Estimate
2002-03
$’000	Forward Estimate
2003-04
$’000	
Assets						
Financial assets						
Cash	239	230	185	173	180	
Receivables	21	23	20	21	21	
Total financial assets	260	253	205	194	201	
Non-financial assets						
Land and buildings	8	7	5	4	3	
Infrastructure, plant and equipment	144	152	168	178	181	
Other	36	36	37	37	37	
Total non-financial assets	188	195	210	219	221	
Total assets	448	448	415	413	422	
Liabilities						
Debt						
Leases	52	32	12	-	-	
Total debt	52	32	12	-	-	
Provisions and payables						
Employees	111	114	121	129	137	
Suppliers	30	47	27	29	30	
Total provisions and payables	141	161	148	158	167	
Total liabilities	193	193	160	158	167	
Equity						
Reserves	10	10	10	10	10	
Accumulated surplus or deficit	245	245	245	245	245	
Total equity	255	255	255	255	255	
Current liabilities	100	113	86	77	79	
Non-current liabilities	93	80	74	81	88	
Current assets	297	290	242	231	238	
Non-current assets	151	158	173	182	184	

Table 3.3:  Agency Budget Cash Flow Statement
(for the period ended 30 June)
	Estimated Actual
1999-00
$’000	Budget Estimate
2000-01
$’000	Forward Estimate
2001-02
$’000	Forward Estimate
2002-03
$’000	Forward Estimate
2003-04
$’000	
Operating activities						
Cash received						
Appropriations for outputs	818	851	853	876	898	
Interest	28	25	25	25	25	
Total cash received	846	876	878	901	923	
Cash used						
Employees	402	392	382	397	401	
Suppliers	440	424	463	439	438	
Total cash used	842	816	845	836	839	
Net cash from operating activities	4	60	33	65	84	
Investing activities						
Cash received						
Proceeds from sales of property, plant and equipment	1	-	-	-	-	
Total cash received	1	-	-	-	-	
Cash used						
Purchase of property, plant and equipment	69	69	78	77	77	
Total cash used	69	69	78	77	77	
Net cash from investing activities	-68	-69	-78	-77	-77	
Financing activities	-	-	-	-	-	
Cash received	-	-	-	-	-	
Total cash received	-	-	-	-	-	
Cash used	-	-	-	-	-	
Total cash used	-	-	-	-	-	
Net cash from financing activities	-	-	-	-	-	
Net increase in cash held	-64	-9	-45	-12	7	
Cash at the beginning of the reporting period	303	239	230	185	173	
Cash at the end of the reporting period	239	230	185	173	180	

Table 3.4:  Agency Capital Budget Statement
(for the period ended 30 June)

	Estimated Actual
1999-00
$’000	Budget Estimate
2000-01
$’000	Forward Estimate
2001-02
$’000	Forward Estimate
2002-03
$’000	Forward Estimate
2003-04
$’000	
Purchase of non-funded current assets						
Funded by capital appropriations	-	-	-	-	-	
Funded internally by agency resources	69	69	78	77	77	

Table 3.5:  Agency Non-financial Assets — Summary of Movement
	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 2000 (opening)	-	19	19	378	378	-	397	
Additions	-	-	-	69	69	-	69	
Disposals	-	-	-	-6	-6	-	-6	
As at 30 June 2001 (closing)	-	19	19	441	441	-	460	
Accumulated depreciation								
As at 1 July 2000 (opening)	-	11	11	234	234	-	245	
Disposals	-	-	-	-4	-4	-	-4	
Charge for the reporting period	-	1	1	59	59	-	60	
As at 30 June 2001 (closing)	-	12	12	289	289	-	301	
Net book value as at 30 June 2001 (Closing book value)	-	7	7	152	152	-	159	
Net book value as at 1 July 2000 (Opening book value)	-	8	8	144	144	-	152	

Total additions
Self funded	-	-	-	69	69	-	69	
Appropriations	-	-	-	-	-	-	-	
Total	-	-	-	69	69	-	69	

Notes to the Financial Statements
Agency Budget Statement of Revenues and Expenses
Expenses
Employee Expenses
These expenses are fairly fixed due to the maintenance of current staff numbers over the reporting period.
Depreciation and Amortisation Expenses
There is an increase over the reporting period due mainly to the acquisition of infrastructure, plant and equipment — mainly library books.