Australian Securities and Investments Commission
Section 1:  Overview, appropriations and budget measures summary
Overview
The Australian Securities and Investments Commission (ASIC) is an independent government body that enforces company and financial services laws to protect consumers, investors and creditors. The Commission is established under the Australian Securities and Investments Commission Act 2001.
The ASIC Act requires that the Commission:
•	Uphold the law uniformly, effectively and quickly;
•	Promote confident and informed participation by investors and consumers in the financial system;
•	Make information about companies and other bodies available to the public; and
•	Improve the performance of the financial system and the entities within it.
In performing its functions ASIC works closely with other financial, consumer and law enforcement bodies in Australia and internationally. 
Appropriations
The appropriation for ASIC in the 2002‑03 Budget is $158.4 million for Outcome 1. From 1 July 2000 ASIC assumed responsibility for the administration of unclaimed moneys from banking and deposit taking institutions. Accordingly, ASIC will also receive $18.025 million as a special administered appropriation to cover the return of unclaimed moneys under the Banking Act 1959. Table 1.1 on the following page provides this detail.

Australian Securities and Investments Commission — appropriations 2002-03
Table 1.1:  Appropriations and other revenue ($‘000)

1.	References C1, E1 and I1 refer to information provided in Table 2.1. References K1 and K2 refer to information provided in Table 3.1 and Table 3.7 respectively.
2.	Refer to Budgeted Statement of Financial Performance in Table 3.1 for application of agency revenue.
3.	Revenue from other sources includes other revenue from government (for example, resources free of charge) and revenue from other sources (for example, sales of goods and services). Non-appropriated agency revenues are detailed in Appendix 1.
4.	Estimated expenses from individual special appropriations are shown in Appendix 2.
Note:  Percentage figures indicate the percentage contribution of revenue from government (agency appropriations) to the total price of outputs, by outcome.

Measures — Australian Securities and Investments Commission summary
Table 1.2:  Summary of measures disclosed in the 2002-03 Budget

Note:  Out year appropriations for enforcement of the Financial Services Reform Act have been provisionally included in the forward estimates subject to a review in light of experience in enforcing the Act.

equity injections and loans
ASIC does not have an appropriation for an equity injection or loan or in the 2002‑03 Budget.

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 Australian Securities and Investments Commission (ASIC). Financial detail for Outcome 1 by output appears in Table 2.1 while non‑financial information for Outcome 1 appears in Table 2.2.
Map 2:  Outcomes and output groups

Changes to outcomes and outputs
There are no proposed changes to the outcome or outputs since the previous year.
Outcome 1 — Description
A fair and efficient market characterised by integrity and transparency and supporting confident and informed participation of investors and consumers. 
Measures affecting Outcome 1
Australian Securities and Investments Commission Output Pricing Review
The Government has conducted an output pricing review of the Australian Securities and Investments Commission (ASIC) in 2001‑02. In light of the review, ASIC will be provided with additional funding to implement and administer the legislative changes introduced by the Financial Services Reform Act 2001 (the Act), and to maintain its enforcement capability.
Additional funding for enforcement will assist ASIC’s handling of an increasing case‑load, including a number of high‑profile cases, and improve its ability to preserve and recover assets for the benefit of investors.
The financial services reforms, which commenced on 11 March 2002, will improve the regulation of financial products, service providers and markets by introducing a single, harmonised licensing and product disclosure framework. Funding allocated in the out years for enforcement is subject to review in the light of experience in enforcing the Act.
Outcome 1 — Resourcing
Table 2.1 shows how the 2002‑03 appropriations translate to total resourcing for Outcome 1, including administered expenses, revenue from government (appropriation), revenue from other sources, and the total price of outputs. 

Table 2.1:  Total resources for Outcome 1 ($’000)

(1)	C1, E1 and I1 show the links back to Table 1.1.

Outcome 1 — Contribution of outputs
ASIC has developed a framework to ensure that delivery of specified outputs meets or exceeds anticipated requirements. These outputs reflect the programs and activities ASIC undertakes as a regulatory authority to meet the objective of Outcome 1.

Through ASIC, the government seeks to ensure that consumers and investors receive honest and competent financial advice that is untainted by conflicts of interest, and that information about corporations is current and accurate. ASIC also has an enforcement and regulatory role designed to tackle misconduct in order to promote a confident and informed market.
Performance information for Outcome 1
Table 2.2:  Performance information for Outcome 1

Table 2.2:  Performance information for Outcome 1 (continued)

Evaluations
ASIC’s outputs have been subject to a pricing review jointly conducted with the Department of Finance and Administration in financial year 2001‑02. This review was finalised in February 2002. 
ASIC regularly seeks feedback from consumers, investors and other stakeholders on the effectiveness of policy advice and administration of the law.
The results of ASIC’s performance are presented in its Annual Report.
The Government’s financial sector reforms are due to be reviewed by the Financial Sector Advisory Council in financial year 2003‑04.

Section 3:  Budgeted financial statements
The budgeted financial statements will form the basis of the financial statements that will appear in the Australian Securities and Investments Commission (ASIC)’s 2001‑02 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 Goods and Services Tax (GST) accounting guidelines of the Urgent Issues Group (UIG) of the Australian Accounting Standards Board. The UIG consensus requires that expenses and assets are accounted for net of recoverable GST, revenues are 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.
Agency Financial Statements
Budgeted agency statement of financial performance
This statement provides the expected financial results for ASIC by identifying full accrual expenses, revenues and capital use charge, which highlights whether the Department is operating at a sustainable level.
Budgeted agency statement of financial position 
This statement shows the financial position of ASIC. It helps decision-makers to track the management of ASIC’s assets and liabilities.
Budgeted agency statement of cash flows
Budgeted cash flows, as reflected in the statement of cash flows, provide important information on the extent and nature of cash flows by categorising them into expected cash flows from operating activities, investing activities and financing activities.
Agency capital budget statement
This statement shows all proposed capital expenditure funded through the Budget as appropriation or from internal sources.
Agency non-financial assets — summary of movement
This statement shows the movement in ASIC’s non-financial assets over the Budget year.
Notes of Administered Activity
Details of transactions administered by ASIC on behalf of the Commonwealth are shown in the following notes to the financial statements.
Note of budgeted administered financial performance
This note identifies the main revenues and expenses administered on behalf of the Government. It also discloses administered revenues from government and transfers to the Public Account. 
Note of budgeted administered financial position
This note shows the assets and liabilities administered on behalf of the Government.
Note of budgeted administered cash flows
This note shows cash flows administered on behalf of the Government.

Table 3.1:  Budgeted Agency Statement of Financial Performance
for the period ended 30 June

(1)	K1 — shows the link back to Table 1.1.

Table 3.2:  Budgeted Agency Statement of Financial Position
as at 30 June

Table 3.3:  Budgeted Agency Statement of Cash Flows
for the period ended 30 June

Table 3.4:  Agency Capital Budget Statement

Table 3.5:  Agency Non-financial Assets — Summary of Movement (Budget year 2002-03)

Table 3.7:  Note of Budgeted Financial Performance Administered on behalf of Government for the period ended 30 June

(1)	K2 — shows the link back to Table 1.1.

Table 3.8:  Note of Budgeted Financial Position Administered on behalf of Government as at 30 June

Table 3.9:  Note of Budgeted Administered Cash Flows
for the period ended 30 June

Notes to the Financial Statements
Basis of accounting
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention.

Appendix 1:  Receipts from independent sources
Receipts from independent sources

Appendix 2:  Estimates of expenses from special appropriations
Estimates of expenses from special appropriations