Agency Additional Estimates Statements
Australian Prudential Regulation Authority
Section 1: Agency overview and resources
1.1 Strategic direction
There has been no significant change to the strategic direction of the Australian Prudential Regulation Authority (APRA) from that outlined in the Portfolio Budget Statements 2009-10 (pages 139-140).
APRA is seeking an additional $0.5 million in departmental outputs through Appropriation Bill (No. 3) 2009-10 and an additional $1.5 million in administered assets and liabilities through Appropriation Bill (No. 4) 2009-10. These funds are for APRA to administer the government's Financial Claims Scheme and to compensate eligible policy holders impacted by the failure of the Australian Family Assurance Limited.
1.2 Agency resource statement
Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.
Table 1.1: Australian Prudential Regulation Authority resource statement —
additional estimates for 2009-10 as at Additional Estimates November 2009
1. Appropriation Bill (No. 3) 2009-10.
2. Appropriation Bill (No. 4) 2009-10.
1.3 Agency measures table
Table 1.2: Australian Prudential Regulation Authority measures since Budget
APRA does not have any measures since the 2009-10 Budget.
1.4 Additional estimates and variations
Table 1.4 details the changes to the resourcing for APRA at additional estimates, by outcome.
Table 1.3: Additional estimates and variations to outcomes from measures since 2009-10 Budget
APRA does not have any additional estimates from measures since the 2009-10 Budget.
Table 1.4: Additional estimates and variations to outcomes from other variations
1.5 Breakdown of additional estimates by Appropriation Bill
The following tables detail the additional estimates sought for APRA through Appropriation Bills No. 3 and No. 4.
Table 1.5: Appropriation Bill (No. 3) 2009-10
Table 1.6: Appropriation Bill (No. 4) 2009-10
Section 2: Revisions to agency outcomes and planned performance
2.1 Resources and performance information
There has been no change to outcomes, outcome strategies and performance information for APRA from that included in the Portfolio Budget Statements 2009-10 (pages 144-146).
Table 2.1: Budgeted expenses and resources for Outcome 1
Program 1.1: Australian Prudential Regulation Authority
There has been no change to program objectives, deliverables or key performance indicators for APRA from that included in the Portfolio Budget Statements 2009-10.
Table 2.2: Program 1.1 expenses
Section 3: Explanatory tables and budgeted financial statements
Section 3 presents budgeted financial statements which provide a snapshot of APRA's finances for the budget year 2009-10.
3.1 Explanatory tables
3.1.1 Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by APRA.
Table 3.1.1: Estimates of special account flows
3.2 Budgeted financial statements
3.2.1 Analysis of budgeted financial statements
The budgeted departmental income statement (refer Table 3.2.1) shows an increase in 2009-10 appropriations from $121.1 million, as disclosed in the Portfolio Budget Statements 2009-10, to $121.6 million; a $0.5 million change. The increase reflects the costs of administering a Financial Claims Scheme matter.
The schedule of budgeted assets and liabilities administered on behalf of government (see Table 3.2.8) have been increased by $1.5 million representing the funds provided via the Financial Claims Scheme to settle approved claims arising from the Australian Family Assurance Limited matter.
3.2.2 Budgeted financial statements
Departmental financial statements
Table 3.2.1: Budgeted departmental income statement
(for the period ended 30 June)
Prepared on Australian Accounting Standards basis.
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Prepared on Australian Accounting Standards basis.
Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Prepared on Australian Accounting Standards basis.
Table 3.2.4: Departmental statement of changes in equity — summary of movement
(budget year 2009-10)
Prepared on Australian Accounting Standards basis.
Table 3.2.5: Departmental capital budget statement
Prepared on Australian Accounting Standards basis.
Table 3.2.6: Statement of asset movements — Departmental (2009-10)
Prepared on Australian Accounting Standards basis.
Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government
(for the period ended 30 June)
Prepared on Australian Accounting Standards basis.
Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government
(as at 30 June)
Prepared on Australian Accounting Standards basis.
Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Prepared on Australian Accounting Standards basis.
Notes to the financial statements
Basis of accounting
The financial statements have been prepared on an accrual basis in accordance with historical cost convention.
Budgeted departmental statement of financial performance
Revenues from Government
APRA is funded by a special appropriation for levies and late payment penalties collected under the Financial Institutions Supervisory Levies Collection Act 1998. The revenue reported by APRA is net of the levies retained in the Official Public Account to fund ASIC for consumer protection and market integrity functions, and the ATO for unclaimed moneys and lost member functions.
Other revenue
Revenue from rendering of specific services is recognised by reference to the stage of completion of contracts or other agreements. Revenue from licence fees is recognised on receipt of the application and licence fee.
Depreciation and amortisation
APRA's depreciation expense remains in balance with the capital program aimed at maintaining APRA's processes and infrastructure to an appropriate standard.
Budgeted departmental statement of financial position
Financial assets
Receivables include levies invoiced but still outstanding at the financial year-end and accrued revenues, being fees prorated over the periods to which they relate.
All accounts receivable are recorded at their estimated recoverable amount.
Non-financial assets
Non-financial assets include leasehold improvements, furniture and fittings, computer hardware and office equipment. All of the foregoing assets are shown at fair value. Intangible assets comprise capitalised software, including works in progress and are shown at cost. APRA does not own any land or buildings.
Other non-financial assets include prepayments.
Provisions and payables
Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for making good leased premises and payments to trade creditors.
Equity
The opening balance of contributed equity represents the net value of assets and liabilities transferred from the Reserve Bank of Australia and the Insurance and Superannuation Commission on the formation of APRA on 1 July 1998, less an amount of $2.1 million returned to the Consolidated Revenue Fund as a return of unused appropriation in 2004-05.
Budgeted departmental statement of cash flows
Cash received from operating activities includes the appropriation for levies collected from industry less amounts collected on behalf of the ATO and ASIC and cash from fees and charges.
Schedule of budgeted revenues and expenses administered on behalf of Government
Revenues
The other non-taxation revenues are the levies and late payment penalties collected under the Financial Institutions Supervisory Levies Collection Act 1998. The revenue reported in this statement is higher than that reported by APRA in the budgeted agency statement of financial position by the amount retained in the Official Public Account to fund ASIC and ATO activities described above.
Write down and impairment of assets
Write down and impairment of assets represents waivers and write-offs of levies.
Schedule of budgeted assets and liabilities administered on behalf of Government
Financial assets
The financial assets include levy debt invoiced and still outstanding at year-end.
Schedule of budgeted administered cash flows
All cash collected by APRA for levies, late lodgement and late payment penalties under the Financial Institutions Supervisory Levies Collection Act 1998 is transferred to the Official Public Account at the close of business each day.
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