Section 3: Budgeted financial statements

The budgeted financial statements will form the basis of the financial statements that will appear in the National Competition Council’s (NCC) 2004-05 Annual Report and form the basis for the Council’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 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 NCC is budgeting for a breakeven operating result in 2004-05. An analysis of the NCC’s budgeted financial statements is provided below.

The total agency revenue is estimated to be $3.9 million. This is a small increase from the estimated 2003-04 actual, primarily due to an increase in appropriations for Comcover premium supplementation of $29,000.

The total agency expenses will increase by $50,000 in 2004-05 to a total of $3.9 million. Employee expenses will increase by $123,000 offset by a reduction in supplier expenses of $72,000.

The net asset position for 2004-05 will marginally reduce by $13,000, which comprises capital expenditure of $75,000 on upgraded information technology equipment, offset by depreciation on other capital items.

Agency financial statements

Budgeted agency statement of financial performance

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

Budgeted agency statement of financial position

This statement shows the financial position of the NCC. It enables decision-makers to track the management of the NCC’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 NCC’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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