Department of the Treasury
Section 1: Entity overview and resources
1.1	Strategic direction statement
1.2	Entity resource statement
1.3	Entity measures
1.4	Additional estimates and variations
1.5	Breakdown of additional estimates by appropriation bill
Section 2: Revisions to outcomes and planned performance
2.1	Outcomes and performance information
Section 3: Explanatory tables and budgeted financial statements
3.1	Explanatory tables
3.2	Budgeted financial statements

Department of the Treasury
Section 1: Entity overview and resources
1.1	Strategic direction statement
There has been no significant change to the strategic direction of the Department of the Treasury (the Treasury) from that outlined in the Portfolio Budget Statements 2015‑16 (pages 16‑18). 
As a result of the Administrative Arrangements Orders in September 2015 the Northern Australian Infrastructure Incentive Facility was transferred from the Treasury to the Department of Industry, Innovation and Science. The Administrative Arrangements Orders also transferred responsibility for the administration of the Clean Energy Finance Corporation (CEFC) special account from the Treasury to the Department of the Environment.
The Treasury is seeking an additional $1.8 million in departmental funding through Appropriation Bill (No. 3) 2015‑16. This comprises an additional $1.2 million for the Asian Infrastructure Investment Bank measure and $0.7 million for the capability review of the Australian Securities and Investments Commission measure outlined in the Mid‑Year Economic and Fiscal Outlook 2015‑16. This additional funding is offset by a reduction of $0.1 million relating to the Public Sector Superannuation Accumulation Plan administration fees as outlined in the Mid‑Year Economic and Fiscal Outlook 2014‑15.
The Treasury is seeking an additional $1.4 million in administered funding through Appropriation Bill (No. 3) 2015‑16 to provide additional services under the Australian Small Business Advisory Service (ASBAS) programme as outlined in the Mid‑Year Economic and Fiscal Outlook 2015‑16. 
1.2	Entity resource statement
The Entity Resource Statement details the resourcing for the Treasury at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2015‑16 Budget year, including variations through Appropriation Bill Nos. 3 and 4, Special Appropriations and Special Accounts. 

Table 1.1: Treasury  resource statement — Additional Estimates for 
2015‑16 as at Additional Estimates February 2016 

Table 1.1: Treasury  resource statement — Additional Estimates for 
2015‑16 as at Additional Estimates February 2016 (continued)

(a)	Appropriation Act (No. 1) 2015‑2016 and Appropriation Bill (No. 3) 2015‑2016.
(b)	Estimated adjusted balance carried from previous year for annual appropriations.
(c)	Includes an amount of $5.3m in 2015‑16 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. 
	The estimate as at Budget for 2015-16 incorporates the transfer of funding of $1.0 million from the Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility. 
(d)	Estimated retained revenue receipts under s. 74 of the Public Governance, Performance and Accountability (PGPA) Act 2013.
(e)	Appropriation Act (No. 2) 2015‑2016 and Appropriation Bill (No. 4) 2015‑2016.
(f)	Estimated opening balance for special accounts (less ‘special public money’ held in Services for Other Entities and Trust Moneys Special Accounts (SOETM)). For further information on special accounts refer to Table 3.1.1. The revised opening balance estimate for 2015‑16 has been reduced to reflect the transfer of the CEFC special account to the Department of the Environment. 
(g)	Total resourcing for the Treasury will be effected by s. 75 transfers of appropriations (refer to table 1.4 for further details).
Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Table 1.1: Treasury  resource statement — Additional estimates for 
2015‑16 as at additional estimates February 2016 (continued)
Third party payments from and on behalf of other entities

(a)	These payments relate to National Partnership payments to the states.
(b)	As outlined in the Mid-Year Economic and Fiscal Outlook 2015-16, access to the DisabilityCare Australia Fund will be determined through negotiations between the Commonwealth and the states. The maximum amount of funding available to the states is set out in the DisabilityCare Australia Fund Act 2013.
(c)	The revision to estimates reflects the change in funding arrangements for health infrastructure projects, which will be funded from the COAG Reform Fund Special Account. This change was part of the 
Medical Research Future Fund – establishment measure as outlined in the Budget Paper No.2, Budget Measures 2014-15.

1.3	Entity measures
Table 1.2 summarises new Government measures taken since the 2015‑16 Budget. The table is split into expense and capital measures, with the affected programme identified.
Table 1.2: Treasury 2015‑16 measures since Budget

Table 1.2: Treasury 2015‑16 measures since Budget (continued)

(a)	This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.
(b)	This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.
Prepared on a Government Financial Statistics (fiscal) basis.

1.4	Additional estimates and variations
The following tables detail the changes to the resourcing for the Treasury at Additional Estimates, by outcome. Table 1.3 details the additional estimates and variations resulting from new measures since the 2015‑16 Budget in Appropriation Bills Nos. 3 and 4. Table 1.4 details additional estimates or variations through other factors, such parameter adjustments.
Table 1.3: Additional estimates and variations to outcomes from measures since 2015‑16 Budget

(a)	The Asian Infrastructure Investment Bank, ASBAS, and Capability Review of Australian Securities and Investments Commission measures were outlined in the Mid‑Year Economic and Fiscal Outlook 2015‑16.
(b)	This measure was announced in the Mid-Year Economic and Fiscal Outlook 2014-15 as a cross portfolio measure and has not previously appeared in a portfolio statement.
(c)	This measure was announced in Budget 2015-16 as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Table 1.4: Additional estimates and variations to outcomes from other variations

(a)	Relates to the transfer of funding from the Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility as a result of the Administrative Arrangements Orders of September 2015.

1.5	Breakdown of additional estimates by appropriation bill
The following table detail the Additional Estimates sought for the Treasury through Appropriation Bill No. 3. There were no Additional Estimates sought for Appropriation Bill No. 4. 
Table 1.5: Appropriation Bill (No. 3) 2015‑16 

(a)	The estimate as at the Budget 2015-16 incorporates the transfer of funding of $1.0 million from the Treasury to the Department of Industry, Innovation and Science for the Northern Australia Infrastructure Incentive Facility.

Section 2: Revisions to outcomes and planned performance
2.1	Outcomes and performance information
Outcome 1
There has been no change to outcomes or the outcome strategy for the Treasury from that included in the Portfolio Budget Statements 2015‑16 (pages 25‑26).
There has been no significant change to the programme objective, expenses, deliverables or key performance indicators for programme 1.2 (payments to international financial institutions) and programmes 1.4 to 1.9 that affect Appropriation Bills Nos. 3 and 4.
Programmes 1.4 to 1.9 relate to Australia’s Federal Relations. Further details of Australia’s Federal Relations are on pages 76 to 85 of the Mid‑Year Economic and Fiscal Outlook 2015‑16.
Table 2.1: Budgeted expenses and resources for Outcome 1

(a)	Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 and
Bill No. 3)’ and ‘Retained Revenue Receipts under s. 74 of the PGPA Act 2013’.
(b)	Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Programme Objective 1.1 – Department of the Treasury
There have been no significant changes to programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16. 
Programme expenses have been updated to reflect new government measures taken and other changes to resourcing for the Treasury as outlined in Table 1.3 and Table 1.4. 
Programme expenses 1.1
Table 2.2: Programme expenses 1.1

(a)	Expenses not requiring appropriation in the Budget year are made up of depreciation expenses, amortisation expenses and audit fees.

Programme Objective 1.3 – Support for markets and business
There has been no significant change to the programme objective, deliverables or key performance indicators from that included in the Portfolio Budget Statements 2015-16.
Programme expenses have been updated to reflect new government measures taken and other changes to resourcing for the Treasury as outlined in Table 1.3 and Table 1.4. 
Programme expenses 1.3
Table 2.3: Programme expenses 1.3

(a)	This relates to the winding down of the HIH Claims Support Scheme.

Section 3: Explanatory tables and budgeted financial statements
3.1	Explanatory tables
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 the Treasury. The corresponding table in the Portfolio Budget Statements 2015‑16 is Table 3.1.2.
Table 3.1.1: Estimates of special account flows and balances

(a)	Reflects the transfer of the CEFC special account to the Department of the Environment.
(A) = Administered
(D) = Departmental

3.2	Budgeted financial statements
3.2.1	Analysis of budgeted financial statements
The Treasury is budgeting for a break‑even operating result, after non‑appropriated expenses such as depreciation are removed, in 2015‑16. 
The Treasury has a sound financial position and has sufficient cash reserves to fund provisions, payables and asset replacement, as they fall due. 
3.2.2	Budgeted financial statements
Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June

Prepared on Australian Accounting Standards basis.

Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June (continued)

(a)	Includes change in asset revaluation reserves of $1.0 million in 2014-15.
(b)	From 2010‑11, the Government introduced net cash appropriation arrangements where Appropriation Act No. 1 or Bill No. 3 revenue appropriations for the depreciation/amortisation expenses of non‑corporate Commonwealth entities were replaced with a separate capital budget (the Departmental Capital Budget (DCB)) provided through Appropriation Act No. 1 or Bill No. 3 equity appropriations. For information regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) (continued)

(a)	Equity is the residual interest in assets after the deduction of liabilities
Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget Year 2015‑16) 

Prepared on Australian Accounting Standards basis. 

Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement 
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements (2015‑16 Budget year)

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.
Table 3.2.10: Schedule of administered capital budget
(for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Notes to the financial statements
Accounting policy
The Treasury’s budgeted financial statements have been prepared on an accrual accounting basis having regard to statements of accounting concepts, and in accordance with:
•	the Government’s financial budgeting and reporting framework; and
•	Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board.
Departmental and administered items
Under the Government’s accrual budgeting framework, and consistent with Australian Accounting Standards, transactions that departments control (departmental transactions) are separately budgeted for, and reported on, from transactions departments do not have control over (administered transactions). This ensures that departments are only held accountable for the transactions over which they have control.