Australian Office of Financial Management
Section 1:  Overview, variations and measures
Overview
There has been no change to the overview included in the 2002‑03 Portfolio Budget Statements (page 93).
Additional estimates and variations to outcomes
Measures
The Australian Office of Financial Management (AOFM) has no measures since the 2002‑03 Budget.
Other variations to appropriations
The AOFM is seeking additional price of outputs funding of $0.520 million. This relates to the Capital Use Charge of $0.396 million, depreciation of $0.118 million and an increase in parameters of $0.006 million.

•	
Map 2:  Outcomes and output groups

Breakdown of additional estimates by appropriation bill
Table 1.2:  Appropriation Bill (No. 3) 2002-03

Summary of staffing changes
Table 1.4:  Average Staffing Level (ASL)

Section 2:  Revisions to outcomes and outputs 
Outcomes and output groups
The Australian Office of Financial Management (AOFM) has not made any changes to its outcome or outputs since the 2002‑03 Portfolio Budget Statements.
Revised performance information and level of achievement — 2002‑03
The AOFM has not made any changes to its performance information since the 2002‑03  Portfolio Budget Statements.

Section 3:  Budgeted Financial Statements
Budgeted agency statement of financial performance
This statement provides a picture of the expected financial results for the Australian Office of Financial Management (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 amount and nature of budgeted cash flows, categorised 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 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 during the 2002‑03 Budget year.

Notes of Administered Activity
Details of transactions administered by AOFM on behalf of the Commonwealth are shown in the following notes.
Note of budgeted administered financial performance
This note identifies 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)

Table 3.2:  Budget 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 3.6:  Note of budgeted administered financial performance
(for the period ended 30 June)

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

Table 3.8:  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 historic cost convention. 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 revenues and expenses or the note of budgeted administered assets and liabilities.
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 Standards Board. 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 and administered financial statements
Under the Commonwealth’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that agencies control (agency transactions) are separately budgeted for and reported from transactions agencies do not have control over (administered transactions). This ensures that agencies are only held fully accountable for the transactions over which they have control.
•	Agency assets, liabilities, revenues and expenses are those which are controlled by the agency. Agency expenses include employee and supplier expenses and other administrative costs, which are incurred by the agency in providing its goods and services.

•	
•	Administered assets, liabilities, revenues and expenses are those which are managed on behalf of the Government according to set government directions.  Administered expenses include interest incurred on Commonwealth debt and administered revenues include interest earned on housing agreement loans and interest from swaps.
Appropriations in the accrual budgeting framework
Under the Commonwealth’s accrual budgeting framework, separate annual appropriations are provided to the AOFM for:
•	agency price of outputs appropriations: representing the Government’s purchase of outputs; and
•	administered expense appropriations: for the estimated administered expenses relating to debt management output.
In addition, special appropriations continue under the accrual budgeting framework, and fund the majority of payments from the Official Public Account, including gross debt redemption and financial investment activity.
Agency budgeted financial statements
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 2002‑03 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
The AOFM has estimated that it will earn $20,000 interest on credit balances in its agency account and from term deposit investments.

Assets and liabilities
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 (from depreciation funding); 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 budgeted financial statements
Revenue and expenses
Non‑taxation revenue — interest

Interest from other sources includes interest from swaps and investments. 
Expenses — grants

Expenses — interest and financing costs

Assets and liabilities
Financial assets — receivables

Debt liabilities — loans
Except for 2001‑02, ‘Loans — Commonwealth securities’ represent the book value of Government securities on issue net of investments.

Appendices 1 and 2
Appendix 1
Agency and administered revenue

Appendix 2
Estimates of expenses from special appropriations