Australian Office of Financial Management
Section 1:  Overview, variations and measures
Overview
There has been no change to the overview included in the 2001‑02 Portfolio Budget Statements (page 91).
Additional estimates and variations to outcomes
Measures
The Australian Office of Financial Management (AOFM) has no additional measures since the 2001‑02 Portfolio Budget Statements.
Other variations to appropriations
The AOFM is seeking additional price of outputs funding of $0.209 million for the capital use charge, depreciation and to reflect an increase in parameters.
The AOFM will be returning an administered saving of $3.487 million. The saving is a result of a capital appropriation of $3.4 million in the 2001‑02 Budget and depreciation funding of $0.087 million, which are no longer required.

Map 2:  Australian Office of Financial Management
Outcomes and Output Groups

Breakdown of additional estimates by appropriation bill
Table 1.2:  Appropriation Bill (No. 3) 2001‑02

Table 1.3:  Appropriation Bill (No. 4) 2001‑02

Summary of staffing changes
Table 1.4:  Average staffing level (ASL)

Summary of agency savings

The saving of $3.4 million represents the return of capital appropriation in the 2001‑02 Budget that is no longer required.
The saving of $0.087 million represents a return of depreciation funding for administered assets which will no longer be purchased.

Section 2:  Revisions to outcomes and outputs
Outcomes and output groups
The AOFM has not made any changes to its outcome or output structure since the 2001‑02 Portfolio Budget Statements.
Revised performance information and level of achievement   2001‑02
The performance information for Outcome 1 is unchanged from the 2001‑02 Portfolio Budget Statements (page 96).

Section 3:  Budgeted Financial Statements
Budgeted agency statement of financial performance
This statement provides a picture of the expected financial results for the AOFM by identifying full accrual expenses and revenues.
Budgeted agency statement of financial position
This statement shows the financial position of the AOFM. It enables decision-makers to track the management of the agency’s assets and liabilities.
Budgeted agency statement of cash flows
This statement provides information on the extent and nature of budgeted cash flows, categorized into expected cash flows from operating activities, investing activities and financing activities.
Agency capital budget statement
This statement shows all proposed capital expenditure on non-financial assets, whether funded either through capital appropriations (equity or borrowings) or from internally sourced funds.

Agency non-financial assets    summary of movement
This statement shows the budgeted movement in the AOFM’s non‑financial assets for the 2001‑02 budget year.

Table 3.1:  Budgeted agency statement of financial performance
for the period ended 30 June 2002

Table 3.2:  Budgeted agency statement of financial position
as at 30 June 2002

Table 3.3:  Budgeted agency statement of cash flows
for the period ended 30 June 2002

Table 3.4:  Agency capital budget statement

Table 3.5:  Agency non-financial assets  summary of movement (Budget year 2001-02)

Table 3.6:  Note of budgeted administered financial performance
for the period ended 30 June 2002

Table 3.7:  Note of budgeted administered financial position 
as at 30 June 2002

Table 3.8:  Note of budgeted administered cash flows
for the period ended 30 June 2002

Notes to the financial statements
Basis of accounting
The agency budgeted statements are prepared in compliance with Australian Accounting Standards, Accounting Guidance Releases and having regard to Statements of Accounting Concepts. No allowance is made for the effect of changing prices on the results or the financial position of the AOFM.
Administered internal transactions
Administered transactions between the AOFM and other agencies within the general government (administered internal transactions) are not reported in the note of budgeted administered financial performance or the note of budgeted administered financial position.
Cash flows in the note of budgeted administered cash flows are reported inclusive of administered internal transactions.
Goods and Services Tax (GST)
The AOFM is an input taxed entity under A New Tax System (Goods and Services Tax) Act 1999.
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 net of recoverable GST amounts.
Agency budgeted financial statements
Revenue and expenses
Appropriations
Price of outputs appropriation estimates are not based on market price indicators. The agreed price of outputs appropriation estimates are based on budgeted expenses.
The AOFM has prepared its estimates for the 2001‑02 budget and forward 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.
Interest revenue
As part of the agency banking incentive scheme, the AOFM has estimated that it will earn $20,000 interest on credit balances in its agency account and from term deposit investments.
Employee expenses
The AOFM envisages a significant increase in its staffing over the Budget year 2001‑02.
Assets and liabilities
The employee liabilities of the AOFM are expected to increase from actuals as at 30 June 2001. The increased liability recognises that staff numbers are expected to grow significantly during the Budget year 2001‑02.
The estimated cash reserves will be maintained in order to ensure that the AOFM is well placed to:
•	settle employee liabilities as they fall due;
•	make asset replacements; and
•	repay liabilities.
Budgeted financial statements have been prepared on the assumption that unspent monies will not be withdrawn by the Department of Finance and Administration.
Administered notes of budgeted financial statements
Revenue and expenses
Non‑Taxation Revenue — Interest
	Actual	Estimated	
	2000-01
$’000	2001-02
$’000	2002-03
$’000	2003-04
$’000	2004-05
$’000	
Interest on housing agreements	172,262	169,249	166,109	162,853	159,477	
Interest on state and territory debt	52,479	37,558	31,944	20,070	11,284	
Interest from other sources	2,912,706	3,004,943	3,065,110	3,000,500	3,379,030	
Total interest	3,137,447	3,211,750	3,263,163	3,183,423	3,549,791	
Interest from other sources includes interest from swaps and investments. 

Expenses — Grants
	Actual	Estimated	
	2000-01
$’000	2001-02
$’000	2002-03
$’000	2003-04
$’000	2004-05
$’000	
Grants to State and Territory Governments	56,674	36,318	31,300	36,704	54,330	
Total grants	56,674	36,318	31,300	36,704	54,330	
Expenses — Interest and Financing Costs
	Actual	Estimated	
	2000-01
$’000	2001-02
$’000	2002-03
$’000	2003-04
$’000	2004-05
$’000	
Interest on Government securities	5,791,445	5,082,826	4,802,731	4,250,678	3,893,683	
Interest on swaps	2,431,258	1,930,100	1,826,000	1,699,000	1,652,000	
Interest on other debt	42,862	7,889	1,960	62,270	56,190	
Net repurchase premia	314,332	186,560	-	-	-	
Other financing costs	1,448	4,507	3,204	3,204	3,204	
Total interest and financing	8,581,345	7,211,882	6,633,895	6,015,152	5,605,077	

Assets and liabilities
Debt Liabilities — Loans
Loans represent the book value of Government securities on issue, net of investments, with exception to 2000‑01, where they are reported separately.
Financial Assets — Receivables
	Actual	Estimated	
	2000-01
$’000	2001-02
$’000	2002-03
$’000	2003-04
$’000	2004-05
$’000	
Loans to State and Territory Governments	4,516,765	4,291,593	4,179,808	3,802,989	3,644,671	
Swap principal	32,761	34,000	34,000	-	-	
Other	50	-	-	-	-	
Total receivables	4,549,576	4,325,593	4,213,808	3,802,989	3,644,671	

Appendices 1 and 2
Appendix 1
Agency and administered revenue

Appendix 2
Estimates of expenses from administered appropriations