color strip
publication header image

Portfolio Budget Statements 2013-14

Australian Prudential Regulation Authority

Section 1: Agency overview and resources

1.1 Strategic direction statement

The role of the Australian Prudential Regulation Authority (APRA) is developing and enforcing a robust prudential framework of legislation, prudential standards and prudential guidance that promotes prudent behaviour by authorised deposit‑taking institutions (ADI), insurance companies, superannuation funds and other financial institutions it supervises, with the key aim of protecting the interests of their depositors, policyholders and superannuation fund members.

Prudential regulation focuses on the quality of an institution's systems for identifying, measuring and managing the various risks in its business.

In carrying out this role, APRA will enhance public confidence in Australia's financial institutions through a prudential framework that balances financial safety and efficiency, competition, contestability and competitive neutrality. This is achieved by:

  • the development and implementation of prudential requirements to be observed by regulated institutions;
  • a risk‑based approach to the supervision of regulated institutions, and remediation or enforcement measures, to ensure that risk‑taking is conducted within reasonable bounds and that risks are clearly identified and managed; and
  • advice to the Australian Government on the development of regulation and legislation affecting regulated institutions and the financial markets in which they operate.

Prudential regulation cannot and should not seek to guarantee a zero failure rate of prudentially regulated institutions or provide absolute protection for market participants (including consumers). Rather, the objective of the prudential regulation regime is to maintain a low incidence of failure of regulated institutions while not impeding continued improvement in efficiency or hindering competition.

In APRA's Statement of Intent, it committed itself to further developing its risk‑based supervisory approach and to be focussed on outcomes.

In 2013‑14, APRA's main strategic objectives are to:

  • conduct effective, ongoing supervision of all APRA‑regulated institutions in accordance with a consistent APRA‑wide supervisory approach;
  • consolidate the prudential framework by enhancing prudential standards where appropriate, in line with the global reform initiatives endorsed by the G20 and overseen by the Financial Stability Board;
  • enhance the efficiency and effectiveness of APRA's supervisory tools and systems through better integration of and greater analytical support for its risk‑rating systems, including workflow and document management;
  • enhance APRA's effectiveness by continuing to ensure it recruits and retains the right people for the job, develops the skills and knowledge of its staff and deploys them where they are most needed in APRA; and
  • remain well prepared for a crisis affecting APRA's own operations, a financial crisis in a regulated institution or a systemic crisis.

APRA's supervisory activities in 2012‑13 have been conducted against a backdrop of strong swings in sentiment in global financial markets. Bouts of market volatility that have characterised the global financial crisis continued up to the latter part of 2012, as Eurozone tensions, concerns about the US fiscal outlook and faltering growth in the US and Chinese economies weighed heavily on sentiment. Over subsequent months, however, global financial conditions improved significantly. Confidence was buoyed by the assertive stance of monetary policy in major economies, signs of recovery in the US economy and positive policy commitments in Europe to deal with its sovereign debt and banking system problems. Nonetheless, the bailout for Cyprus was a reminder of the scale of the challenge facing European policymakers and the fragility of market sentiment. The Australian financial system remained in a relatively strong position in the face of the unsettled global environment in 2012‑13, supported by the underlying momentum of the Australian economy. APRA has maintained a heightened level of supervisory intensity throughout this period and has made considerable progress on its substantial prudential policy agenda.

APRA's activities will continue at this tempo in 2013‑14. Its supervisory oversight will focus, in particular, on how regulated institutions adapt to the continued caution of households and much of the business sector, which has reflected in only moderate growth in business volumes that may continue for some time. On the policy front, with substantial reforms to capital adequacy regimes in the ADI and insurance industries now in place, APRA will focus on implementing the new global bank liquidity framework in Australia, on finalising a new prudential framework for conglomerate groups and a revised framework for securitisation, and on bedding‑down relevant aspects of the Government's Stronger Super reforms.

1.2 Agency resource statement

Table 1.1 shows the total resources for APRA.

Table 1.1: Australian Prudential Regulation Authority resource statement — Budget estimates for 2013‑14 as at Budget May 2013
Estimate
of prior
year amounts
available in
2013‑14
$'000
+ Proposed
at Budget
2013‑14
$'000
= Total
estimate
2013‑14
$'000
Actual
available
appropriation
2012‑13
$'000
Ordinary annual services              
Departmental appropriation              
Departmental appropriation   -   2,493 1 2,493 3,078
Receipts from other sources (s31)   -   5,457 2 5,457 5,453
Total ordinary annual services A -   7,950   7,950 8,531
Other services              
Departmental non-operating              
Equity injections   -   4,270 3 4,270 4,810
Total other services B -   4,270   4,270 4,810
Total available annual appropriations (A+B)   -   12,220   12,220 13,341
Special appropriations              
Financial Management andAccountability Act 1997   -   -   - -
Total special appropriations C -   -   - -
Total appropriations excluding special accounts (A+B+C)   -   12,220   12,220 13,341
Special accounts              
Opening balance4   53,465   -   53,465 -
Appropriation receipts   -   12,220   12,220 13,341
Non-appropriation receipts to special accounts   -   109,922   109,922 113,046
Total special accounts D 53,465   122,142   175,607 126,387
Total resourcing (A+B+C+D)   53,465   134,362   187,827 139,728
Less appropriations drawn from annual or special appropriations above and credited to special accounts   -   12,220   12,220 13,341
Total net resourcing for APRA   53,465   122,142   175,607 126,387

1. Appropriation Bill (No. 1) 2013‑14.

2. Receipts received under section 31 (s31) of the Financial Management and Accountability Act 1997.

3. Appropriation Bill (No. 2) 2013‑14.

4. Estimated opening balance for special accounts. For further detail on special accounts see Table 3.1.2.

1.3 Budget measures

Budget measures relating to APRA and are summarised below.

Table 1.2: Australian Prudential Regulation Authority 2013‑14 Budget measures

Table 1.2: Australian Bureau of Statistics 2013‑14 Budget measures
Program 2012‑13
$'000
2013‑14
$'000
2014‑15
$'000
2015‑16
$'000
2016‑17
$'000
Expense measure            
Targeted savings - public service efficiencies1 1.1 - (233) (213) (197) (153)
Total expense measures   - (233) (213) (197) (153)
Related revenue            
Over-the-counter derivatives market supervision2 1.1 - 2,961 1,249 919 785
Superannuation - further financial assistance grants to compensate fund members for the failure of Trio3 1.1 - - - - -
Superannuation Complaints Tribunal - additional funding2 1.1 - 1,045 882 305 344
Total related revenue   - 4,006 2,131 1,224 1,129

1 This measure was included as a cross portfolio measure in the Mid‑Year Economic and Fiscal Outlook 2012‑13. The fiscal impact for this measure is in addition to the impact previously reported for this measure in the Treasury Portfolio Additional Estimates Statements 2012‑13.

2. These measures relate to expense measures for the Australian Securities and Investments Commission.

3. This measure was also included in the Treasury Portfolio Additional Estimates Statements 2012‑13.

Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 Outcomes and performance information

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to Government outcomes over the budget and forward years.

APRA's outcome is described below, specifying the strategy, program objective, program deliverables and program key performance indicators used to assess and monitor the performance of APRA.

Outcome 1: Enhanced public confidence in Australia's financial institutions through a framework of prudential regulation which balances financial safety and efficiency, competition, contestability and competitive neutrality

Outcome 1 strategy

The role of APRA is developing and enforcing a robust prudential framework that promotes prudent behaviour by ADIs, insurance companies, superannuation funds and other financial institutions it supervises, with the key aim of protecting the interests of their depositors, policyholders and superannuation fund members.

Prudential regulation focuses on the quality of an institution's systems for identifying, measuring and managing the various risks in its business.

Outcome expense statement

Table 2.1 provides an overview of the total expenses for Outcome 1.

Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Enhanced public confidence in Australia'sfinancial institutions through a framework of prudential regulation which balances financial safety and efficiency, competition,contestability and competitive neutrality 2012‑13
Estimated
actual
expenses
$'000
2013 ‑14
Estimated
expenses
$'000
Program 1.1: Australian Prudential Regulation Authority    
Departmental expenses    
Special accounts 104,217 112,470
Ordinary Annual Services (Appropriation Bill No. 1) 3,078 2,493
Revenues from Independent Sources (section 31) 5,453 5,457
Other Services (Appropriation Bill No. 2) 4,810 4,270
Total expenses for Outcome 1 117,558 124,690
     
  2011‑12 2012‑13
Average staffing level (number) 609 609

Contributions to Outcome 1

Program 1.1: Australian Prudential Regulation Authority
Program objective

To enhance public confidence in Australia's financial institutions through a framework of prudential regulation that balances financial safety and efficiency, competition, contestability and competitive neutrality.

Program expenses

There are no significant changes to estimates across the forward years.

Table 2.2: Program expenses
2012‑13
Revised
budget
$'000
2013‑14
Budget
$'000
2014‑15
Forward
year 1
$'000
2015‑16
Forward
year 2
$'000
2016‑17
Forward
year 3
$'000
Annual departmental expenses          
Departmental items 117,558 124,690 124,087 128,877 130,022
Total expenses 117,558 124,690 124,087 128,877 130,022
Program deliverables

APRA has the following program deliverables:

  • the issuance of prudential standards and guidance to assist regulated industries manage risk;
  • active oversight of regulated institutions aimed at mitigating financial loss by depositors, policyholders and superannuation fund members that may result from the failure of a regulated institution to adequately manage risk; and
  • advice to government on prudential regulation policy development; advice on amendments to legislation and regulations administered by APRA; and briefing to the government on matters emerging from international fora that may impact on prudential policy.
Program key performance indicators

APRA has the following key performance indicators:

  • timely issuance of prudential standards and guidance that address risk management exposures of regulated institutions;
  • identification of emerging prudential risks within regulated institutions through programs of on‑site visits and off‑site surveillance and the supervision of remedial actions to effectively manage such risks;
  • exercise of APRA's formal enforcement powers where necessary to protect the interests of depositors, policyholders, superannuation fund members or the public interest generally; and
  • timely briefings to government on financial system developments and on major items of policy interest emerging from APRA's participation in international fora.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements that provide a comprehensive snapshot of APRA's finances for the budget year 2013‑14. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, and special accounts.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

APRA has not moved any administered funds between years.

3.1.2 Special accounts

Special accounts provide a means to set aside and record amounts used for specified purposes. Special accounts can be created by a Finance Minister's Determination under the Financial Management and Accountability Act 1997 or under separate enabling legislation. Table 3.1.2 shows the expected additions (receipts) and reductions (payments) for each account used by APRA.

Table 3.1.2: Estimates of special account cash flows and balances
Outcome Opening
balance
2013‑14
2012‑13
$'000
Receipts
non-
appropriated
2013‑14
2012‑13
$'000
Receipts
appropriated
2013‑14
2012‑13
$'000
Payments
2013‑14
2012‑13
$'000
Closing
balance
2013‑14
2012‑13
$'000
Australian Prudential Regulation Authority Special Account 1 51,172 109,922 12,220 122,355 50,959
  44,552 113,046 13,341 119,767 51,172
Financial Claims Scheme Special Account 1 293 - - - 293
  293 - - - 293
Lloyd's Deposit Trust Special Account 1 2,000 - - - 2,000
  2,000 - - - 2,000
Total special accounts 2013‑14 Budget estimate   53,465 109,922 12,220 122,355 53,252
Total special accounts 2012‑13 estimate actual   46,845 113,046 13,341 119,767 53,465

3.1.3 Australian Government Indigenous Expenditure

APRA does not have any Australian Government Indigenous Expenditure.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

There are no material differences between agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

The departmental comprehensive income statement (Table 3.2.1) indicates only marginal change, in available appropriation revenue, year on year. APRA has deferred some of its activities from 2012‑13 into 2013‑14, which will create an operating deficit in 2013‑14.

Employee expenses of $91.3 million support an average staffing level (ASL) of 609 in 2013‑14. The estimated staffing will enable APRA to maintain the current intensity of its supervisory and prudential policy activities, improve its crisis readiness, bed down the Stronger Super reforms and implement the new global bank liquidity frameworks in Australia.

Supplier costs in 2013‑14 take into account savings on premises leasing costs and reductions in technology, travel and property expenditures in line with whole‑of‑government requirements.

The budgeted departmental balance sheet (Table 3.2.2) shows that APRA will maintain sufficient financial assets to meet all known employee and supplier commitments as and when they fall due.

Contributed equity will increase by $4.3 million in 2013‑14 in support of APRA's infrastructure investment plans.

Retained surpluses are set to maintain general reserves at a level sufficient to accommodate unforseen business needs that may arise from supervision of at‑risk institutions.

The budgeted departmental statement of cash flows (Table 3.2.3) reflects the source and application of appropriations and other revenue, as detailed in Table 3.2.1.

The departmental capital budget statement (Table 3.2.5) indicates APRA's capital needs will be partly met by equity injections of $4.4 million over two years, reflecting approved 2013‑14 and 2014‑15 measures, and partly by internally generated resources. The planned movement of fixed assets and intangibles between 2013‑2014 and 2014‑15 is shown in Table 3.2.6.

The schedule of budgeted income and expenses administered on behalf of government (Table 3.2.7) shows the amounts APRA collects in supervisory levies from the finance industry on behalf of the Government under the Financial Institutions Supervisory Levies Collection Act 1998. Apart from the amount required to fund APRA, the levies also include amounts to fund the activities of the Australian Taxation Office (ATO) for unclaimed monies, lost member functions and for the implementation of the Stronger Super — SuperStream reforms, the Australian Securities and Investments Commission (ASIC) for consumer protection and market integrity functions, and the Department of Human Services (DHS) for the administration of claims for early release of superannuation benefits on compassionate grounds.

The schedule of budgeted assets and liabilities administered on behalf of Government (Table 3.2.8) mainly reflects the unused funds relating to the Financial Claims Scheme.

The schedule of budgeted administered cash flows (Table 3.2.9), indicates that cash collected is swept daily from the APRA account to the Official Public Account (OPA), from which APRA, in turn, draws down the amounts appropriated to it by the Parliament (as per Table 3.2.1). The residual is retained in the OPA to meet Treasurer's Determinations for the ATO, ASIC and DHS.

3.2.3 Budgeted financial statements tables

Table 3.2.1: Comprehensive income statement (Showing Net Cost of Services)
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES          
Employee benefits 87,794 91,330 90,786 93,823 94,843
Supplier 24,341 24,743 24,740 25,663 26,505
Depreciation and amortisation 5,423 8,617 8,561 9,391 8,674
Total expenses 117,558 124,690 124,087 128,877 130,022
LESS:          
OWN-SOURCE INCOME          
Revenue          
Sale of goods and rendering of services 3,792 3,980 3,980 3,980 3,980
Other revenue 1,661 1,477 1,491 1,504 1,518
Total revenue 5,453 5,457 5,471 5,484 5,498
Total own-source income 5,453 5,457 5,471 5,484 5,498
Net cost of (contribution by) services 112,105 119,233 118,616 123,393 124,524
Appropriation revenue 116,124 112,415 118,616 123,393 124,524
Surplus (deficit) attributable to the Australian Government 4,019 (6,818) - - -

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS          
Financial assets          
Cash 1,739 1,739 1,739 1,739 1,739
Receivables 53,401 53,188 55,451 60,718 68,460
Total financial assets 55,140 54,927 57,190 62,457 70,199
Non-financial assets          
Infrastructure, plant and equipment 5,823 5,823 5,823 5,823 5,823
Intangibles 17,654 19,142 20,616 16,482 12,808
Other 1,964 1,964 1,964 1,964 1,964
Total non-financial assets 25,441 26,929 28,403 24,269 20,595
Total assets 80,581 81,856 85,593 86,726 90,794
LIABILITIES          
Provisions          
Employees 36,516 40,203 43,695 44,690 48,620
Other 4,420 4,556 4,693 4,831 4,969
Total provisions 40,936 44,759 48,388 49,521 53,589
Payables          
Suppliers 2,128 2,128 2,128 2,128 2,128
Total payables 2,128 2,128 2,128 2,128 2,128
Total liabilities 43,064 46,887 50,516 51,649 55,717
Net assets 37,517 34,969 35,077 35,077 35,077
EQUITY          
Contributed equity 12,279 16,549 16,657 16,657 16,657
Reserves 12,467 12,467 12,467 12,467 12,467
Retained surpluses or accumulated deficits 12,771 5,953 5,953 5,953 5,953
Total equity 37,517 34,969 35,077 35,077 35,077
Current assets 57,104 56,891 59,154 64,421 72,163
Non-current assets 23,477 24,965 26,439 22,305 18,631
Current liabilities 32,830 35,697 38,419 39,269 42,320
Non-current liabilities 10,234 11,190 12,097 12,380 13,397

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash received          
Goods and services 3,792 3,980 3,980 3,980 3,980
Appropriations 116,124 112,415 118,616 123,393 124,524
Other 1,661 1,477 1,491 1,504 1,518
Total cash received 121,577 117,872 124,087 128,877 130,022
Cash used          
Employees 87,794 91,330 90,787 93,822 94,843
Suppliers 28,233 20,707 23,373 29,798 30,179
Total cash used 116,027 112,037 114,160 123,620 125,022
Net cash from or (used by) operating activities 5,550 5,835 9,927 5,257 5,000
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment/intangibles 10,360 10,105 10,035 5,257 5,000
Total cash used 10,360 10,105 10,035 5,257 5,000
Net cash from or (used by) investing activities (10,360) (10,105) (10,035) (5,257) (5,000)
FINANCING ACTIVITIES          
Cash received          
Appropriations - contributed equity 4,810 4,270 108 - -
Total cash received 4,810 4,270 108 - -
Net cash from or (used by) financing activities 4,810 4,270 108 - -
Net increase (or decrease) in cash held - - - - -
Cash at the beginning of the reporting period 1,739 1,739 1,739 1,739 1,739
Cash at the end of the reporting period 1,739 1,739 1,739 1,739 1,739

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Departmental statement of changes in equity — summary of movement (Budget year 2013‑14)
Retained
surpluses
$'000
Asset
revaluation
reserve
$'000
Other
reserves
$'000
Contributed
equity/
capital
$'000
Total
equity
$'000
Opening balance as at 1 July 2012          
Balance carried forward from previous period 12,771 6,467 6,000 12,279 37,517
Adjusted opening balance 12,771 6,467 6,000 12,279 37,517
Comprehensive income          
Surplus (deficit) for the period (6,818) - - - (6,818)
Total comprehensive income recognised directly in equity (6,818) - - - (6,818)
Transactions with owners          
Equity Injection - - - 4,270 4,270
Total Transactions with owners - - - 4,270 4,270
Estimated closing balance as at 30 June 2013 5,953 6,467 6,000 16,549 34,969

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget (DCB) statement
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
NEW CAPITAL APPROPRIATIONS          
Total equity injections 4,810 4,270 108 - -
Total new capital appropriations 4,810 4,270 108 - -
Provided for:          
Purchase of non-financial assets 4,810 4,270 108 - -
Total Items 4,810 4,270 108 - -
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations 4,810 4,270 108 - -
Funded internally from departmental resources 5,550 5,835 9,927 5,257 5,000
TOTAL 10,360 10,105 10,035 5,257 5,000
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 10,360 10,105 10,035 5,257 5,000
Total cash used to acquire assets 10,360 10,105 10,035 5,257 5,000

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
Buildings
$'000
Other
infrastructure,
plant and
equipment
$'000
Intangibles
$'000
Total
$'000
As at 1 July 2013        
Gross book value - 10,764 36,647 47,411
Accumulated depreciation/amortisation and impairment - 4,941 18,993 23,934
Opening net book balance - 5,823 17,654 23,477
Capital asset additions        
By purchase - other - 1,665 8,440 10,105
Total additions - 1,665 8,440 10,105
Other movements        
Depreciation/amortisation expense - 1,665 6,952 8,617
Total other movements - 1,665 6,952 8,617
As at 30 June 2014        
Gross book value - 12,429 45,087 57,516
Accumulated depreciation/amortisation and impairment - 6,606 25,945 32,551
Closing net book balance - 5,823 19,142 24,965

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)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT          
Waivers and write-offs - - - - -
Total expenses administered on behalf of government - - - - -
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Non-taxation revenue          
Other sources of non-taxation          
Financial Institutions Supervisory Levies Collection Act 1998 269,802 258,978 232,159 223,724 194,458
Superannuation (Financial Assisting Funding) Levy Act 1993 16,720 - - - -
Total non-taxation revenue 286,522 258,978 232,159 223,724 194,458
Total own-source revenues administered on behalf of Government 286,522 258,978 232,159 223,724 194,458
Total own-sourced income administered on behalf of Government 286,522 258,978 232,159 223,724 194,458
Net Cost of (contribution by) services (286,522) (258,978) (232,159) (223,724) (194,458)
Surplus (Deficit) 286,522 258,978 232,159 223,724 194,458

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)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT          
Financial assets          
Cash - Financial Claims Scheme special account 293 293 - - -
Receivables 2,201 - - - -
Total financial assets 2,494 293 - - -
Total assets administered on behalf of government 2,494 293 - - -

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Estimated
actual
2012‑13
$'000
Budget
estimate
2013‑14
$'000
Forward
estimate
2014‑15
$'000
Forward
estimate
2015‑16
$'000
Forward
estimate
2016‑17
$'000
OPERATING ACTIVITIES          
Cash or equivalents received          
Transfer from Official Public Account - - - - -
Administered revenue 286,522 261,179 232,159 223,724 194,458
Total cash or equivalents received 286,522 261,179 232,159 223,724 194,458
Cash or equivalents used          
Cash to Official Public Account 286,522 261,179 232,159 223,724 194,458
Administered expenses - - - - -
Total cash or equivalents used 286,522 261,179 232,159 223,724 194,458
Net cash or equivalents from or (used by) operating activities - - - - -

Prepared on Australian Accounting Standards basis.

3.2.4 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 appropriation to its special account 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 OPA to fund the ATO for administration of unclaimed monies, administration of lost member functions and the implementation of Stronger Super — SuperStream reforms, ASIC for consumer protection and market integrity functions, and DHS for administration of early release of superannuation benefits on compassionate grounds.

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 is applied to supporting the capital program that aims to maintain APRA's processes and infrastructure at 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 includes 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, ASIC and DHS and cash from fees and charges.

Schedule of budgeted revenues and expenses administered on behalf of Government
Revenues

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 OPA to fund ATO, ASIC and DHS activities described above.

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 OPA at the close of business each day

Next: Australian Securities and Investments Commission
Previous: Australian Office of Financial Management
Return to: Home

color strip

Contact the Treasury

Telephone +61 2 6263 2111 or
1800 020 008 (Switchboard, 8.00 am to 5.30pm AEST)
Facsimile: + 61 2 6263 2869
Email Us
ABN: 92 802 414 793