Section 3: Budgeted financial statements

The budgeted financial statements will form the basis of the financial statements that will appear in the Inspector-General of Taxation’s (IGT) 2004-05 Annual Report and form the basis for IGT’s input into the whole-of-government accounts. The financial statements should be read in conjunction with the accompanying notes.

The budgeted financial statements contain estimates prepared in accordance with the requirements of the Australian Government’s financial budgeting and reporting framework, including the principles of Australian Accounting Standards and Statements of Accounting Concepts, as well as specific guidelines issued by the Department of Finance and Administration.

Analysis of budgeted financial statements

The Office of the Inspector-General of Taxation consists of seven staff. The Inspector-General relies upon the support and contribution to reviews of many in the private sector, particularly professional associations and business groups. The co-operation and support of relevant government agencies is also very important to the achievement of the outcome.

The Inspector-General commenced operations in the 2003-04 year. As such, there was only a part-year expenditure on staffing costs as recruitment proceeded. A significant one-off expenditure on office fit-out was also a feature of the 2003-04 year.

For 2004-05, approximately 50 per cent of the budget allocation will be expended on employee costs. Another 25 per cent will be expended on office accommodation and corporate overheads. The final 25 per cent will be expended on direct costs associated with completion of the work programme. It is expected that this expenditure pattern will continue in future years.

Agency financial statements

Budgeted agency statement of financial performance

This statement provides a picture of the expected financial results for the IGT by identifying full accrual expenses and revenues. It highlights whether the IGT is operating at a sustainable level.

Budgeted agency statement of financial position

This statement shows the financial position of the IGT. It enables decision-makers to track the management of the IGT’s assets and liabilities.

Budgeted agency statement of cash flows

This statement identifies 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 appropriations or from internal sources.

Agency non-financial assets — summary of movement

This statement shows the movement in IGT’s non-financial assets over the budget year 2004-05.

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 2004-05)

Notes to the financial statements

Basis of accounting

The financial statements have been prepared on an accrual basis in accordance with the historical cost convention.

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