Australian Competition and Consumer Commission

Date

Section 1: Entity overview and resources

1.1 Strategic direction statement

The Australian Competition and Consumer Commission (ACCC) is seeking an additional $2.5 million in departmental outputs through Appropriation Bill (No. 3) 2015-16 and $11.6 million in equity injections through Appropriation Bill (No. 4) 2015-16.

These relate to measures outlined in the Mid-Year Economic and Fiscal Outlook 2015-16 for the Agriculture New Policy Proposal Stronger Farmers, Stronger Economy — a fairer go for farm business, and the reappropriation of 2013-14 equity related to the ACCC's Litigation Contingency Fund.

Accordingly, whilst there has been no significant change to the strategic direction of the ACCC from that outlined in the Portfolio Budget Statements 2015-16 (pages 89-91), an additional priority for 2015-16 is compliance with, and enforcement of, the Competition and Consumer Act 2010 in the agriculture sector.

1.2 Entity resource statement

The Entity Resource Statement details the resourcing for the ACCC 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: Australian Competition and Consumer Commission resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016
  Actual available appropriation Estimate as at Budget Proposed Additional Estimate Total estimate at Additional Estimates
  2014-15
$'000
2015-16
$'000
2015-16
$'000
2015-16
$'000
Ordinary annual services (a)        
Departmental appropriation        
Prior year departmental appropriation (b) 12,833 21,582 - 21,582
Departmental appropriation (c) 169,459 164,815 2,524 167,339
s.74 Retained Revenue Receipts (d) 5,458 2,764 857 3,621
Total 187,750 189,161 3,381 192,542
Total ordinary annual services [A] 187,750 189,161 3,381 192,542
Other services (e)        
Departmental non-operating        
Prior year departmental appropriation (b) 12,592 14,296 - 14,296
Equity injections 2,700 1,300 11,596 12,896
Total 15,292 15,596 11,596 27,192
Total other services [B] 15,292 15,596 11,596 27,192
Total available annual appropriations 203,042 204,757 14,977 219,734
Special appropriations        
Special appropriations limited by criteria/entitlement        
Public Governance, Performance and Accountability Act 2013 - s.77 (f) 12 20 11,000 11,020
Total special appropriations [C] 12 20 11,000 11,020
Total appropriations excluding Special Accounts 203,054 204,777 25,977 230,754
Total resourcing [A+B+C] 203,054 204,777 25,977 230,754
Total net resourcing for ACCC 203,054 204,777 25,977 230,754

(a) Appropriation Act (No. 1) 2015-16 and Appropriation Bill (No. 3) 2015-16.

(b) Estimated adjusted balance carried from previous year for annual appropriations.

(c) Includes an amount of $1.993m 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'.

(d) Estimated retained revenue receipts under s.74 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

(e) Appropriation Act (No. 2) 2015-16 and Appropriation Bill (No. 4) 2015-16.

(f) Repayments not provided for under other appropriations.

Note: The ACCC provides financial services to the NCC and has drawdown access to manage the NCC's finances.

Reader note: All figures are GST exclusive. These figures may not match figures in the cash flow statement.

Table 1.1: Australian Competition and Consumer Commission resource statement — Additional Estimates for 2015-16 as at Additional Estimates February 2016 (continued)
Third party payments from and on behalf of other entities
  Estimate at Budget Estimate at Additional Estimates
  2015-16
$'000
2015-16
$'000
Payments made on behalf of the National Competition Council (NCC) 1,740 1,740

1.3 Entity measures

Table 1.2 summarises new Government measures taken since the 2015-16 Budget. The table presents expense measures, with the affected programme identified.

Table 1.2: Entity 2015-16 measures since Budget
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Expense measures          
Stronger Farmers, Stronger Economy - A fairer go for farm businesses          
Departmental expenses(a) 1.1 2,591 2,737 3,025 3,054
Public Sector Superannuation          
Accumulation Plan administration fees          
Departmental expenses(b) 1.1 (56) (56) (56) (56)
Departmental expenses(b) 1.2 (11) (11) (11) (11)
Public Sector Savings - Enterprise          
Resouce Planning Systems          
Departmental expenses(c) 1.1 - - (75) (91)
Departmental expenses(c) 1.2 - - (19) (23)
Total measures   2,524 2,670 2,864 2,873

Prepared on a Government Financial Statistics (fiscal) basis.

(a) This measure was included in the Mid-Year Economic and Fiscal Outlook 2015-16, and forms part of the Commonwealth Government's White Paper on Agricultural Competitiveness.

(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 the 2015-16 Budget as a cross-portfolio measure and has not previously appeared in a portfolio statement.

1.4 Additional estimates and variations

The following tables detail the changes to the resourcing for the ACCC 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 as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2015-16 Budget
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Increase in estimates (departmental)          
Stronger Farmers, Stronger Economy - A fairer go for farm businesses          
Departmental expenses 1.1 2,591 2,737 3,025 3,054
Decrease in estimates (departmental)          
Public Sector Superannuation (a)          
Accumulation Plan administration fees          
Departmental expenses 1.1 (56) (56) (56) (56)
Departmental expenses 1.2 (11) (11) (11) (11)
Public Sector Savings - Enterprise          
Resouce Planning Systems (b)          
Departmental expenses 1.1 - - (75) (91)
Departmental expenses 1.2 - - (19) (23)
Net impact on estimates for Outcome 1 (departmental) 2,524 2,670 2,864 2,873

(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 the 2015-16 Budget as a cross-portfolio measure and has not previously appeared in a portfolio statement.

Prepared on a Government Financial Statistics (fiscal) basis.

Table 1.4: Additional estimates and variations to outcomes from other variations
  Programme 2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Outcome 1          
Increase in estimates (departmental)          
Movement of Funds - Equity 1.1 11,596 - - -
Decrease in estimates (departmental)          
Adjustment to reflect movement in indicies relating to prices and wages          
Departmental expenses 1.1 - - (130) (261)
Departmental expenses 1.2 - - (33) (66)
Departmental capital 1.1 - - (2) (4)
Net impact on estimates for Outcome 1 (departmental) 11,596 - (165) (331)

1.5 Breakdown of additional estimates by appropriation bill

The following tables detail the Additional Estimates sought for the ACCC through Appropriation Bills Nos. 3 and 4.

Table 1.5: Appropriation Bill (No. 3) 2015-16
  2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional Estimates
$'000
Reduced Estimates
$'000
Departmental programmes          
Outcome 1 - Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services. 169,459 164,815 167,339 2,524 -
Total 169,459 164,815 167,339 2,524 -
Table 1.6: Appropriation Bill (No. 4) 2015-16
  2014-15
Available
$'000
2015-16
Budget
$'000
2015-16
Revised
$'000
Additional Estimates
$'000
Reduced Estimates
$'000
Non-operating          
Equity injections 2,700 1,300 12,896 11,596 -
Total 2,700 1,300 12,896 11,596 -

Section 2: Revisions to outcomes and planned performance

2.1 Outcomes and performance information

The additional priority of compliance and enforcement of the Competition and Consumer Act 2010 (CCA) in the agriculture sector will be achieved through increased engagement with the agriculture sector, increased investigations of possible breaches of the CCA and, as appropriate, enforcement action and outcomes. Accordingly, there is no change to the ACCC's outcome statement, objectives, outcome strategies and deliverables, and the performance information included in the Portfolio Budget Statements 2015-16 (pages 94-102) will require the ACCC to report on the additional work that the ACCC undertakes and the outcomes achieved.

Table 2.1 Budgeted expenses for Outcome 1
Outcome 1: Lawful competition, consumer protection, and regulated national infrastructure markets and services through regulation, including enforcement, education, price monitoring and determining the terms of access to infrastructure services. 2014-15
Actual expenses
$'000
2015-16
Revised estimated expenses
$'000
Programme 1.1: Australian Competition and Consumer Commission    
Departmental expenses    
Departmental appropriation(a) 134,363 137,219
Expenses not requiring appropriation in the Budget year(b) 5,870 6,276
Total for Programme 1.1 140,233 143,495
Program 1.2: Australian Energy Regulator    
Departmental expenses    
Departmental appropriation(a) 36,299 33,567
Total for Programme 1.2 36,299 33,567
Outcome 1 Totals by appropriation type    
Departmental expenses    
Departmental appropriation(a) 170,662 170,786
Expenses not requiring appropriation in the Budget year(b) 5,870 6,276
Total expenses for Outcome 1 176,532 177,062
  2014-15 2015-16
Average staffing level (number) 716 739

(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 is made up of depreciation expense, amortisation expense, makegood expense and audit fees.

Programme objective 1.1: Australian Competition and Consumer Commission

Other than the additional priority focus in the agricultural sector, there is no change to programme objectives, deliverables or key performance indicators for the ACCC from that included in the Portfolio Budget Statements 2015-16.

Programme expenses 1.1
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward year 1
$'000
2017-18
Forward year 2
$'000
2018-19
Forward year 3
$'000
Annual departmental expenses:          
Departmental items 134,363 137,219 134,278 133,811 134,572
Expenses not requiring appropriation in the Budget year(a) 5,870 6,276 6,379 5,659 5,075
Total programme expenses 140,233 143,495 140,657 139,470 139,647

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

Programme objective 1.2: Australian Energy Regulator

There has been no change to programme objectives, deliverables or key performance indicators for the Australian Energy Regulator from that included in the Portfolio Budget Statements 2015-16.

Programme expenses 1.2
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward year 1
$'000
2017-18
Forward year 2
$'000
2018-19
Forward year 3
$'000
Annual departmental expenses:          
Departmental items 36,299 33,567 33,009 33,184 33,374
Total programme expenses 36,299 33,567 33,009 33,184 33,374

Section 3: Explanatory tables and budgeted financial statements

3.1 Explanatory tables

Estimates of special account flows

There has been no change to the estimates of special account flows and balances from that included in the Portfolio Budget Statements 2015-16 (page 103).

3.2 Budgeted financial statements

3.2.1 Analysis of budgeted financial statements

The ACCC is budgeting for a departmental breakeven operating result for 2015-16 after adjusting for non-appropriated expenses of depreciation and amortisation.

3.2.2 Budgeted financial statements

Table 3.2.1: Comprehensive income statement (showing net cost of services)
for the period ended 30 June.
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES          
Employee benefits 97,372 101,110 97,700 96,542 96,512
Suppliers 72,470 69,708 69,600 70,461 71,428
Depreciation and amortisation 5,779 6,185 6,288 5,568 4,984
Finance costs 88 59 78 83 97
Write-down and impairment of assets 673 - - - -
Other expenses 150 - - - -
Total expenses 176,532 177,062 173,666 172,654 173,021
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Sale of goods and rendering of services 1,189 4,437 1,250 1,250 1,250
Rental income - 1,003 1,003 1,003 1,003
Other revenue 1,432 - - - -
Total own-source revenue 2,621 5,440 2,253 2,253 2,253
Gains          
Other 91 91 91 91 91
Total gains 91 91 91 91 91
Total own-source income 2,712 5,531 2,344 2,344 2,344
Net cost of (contribution by) services 173,820 171,531 171,322 170,310 170,677
Revenue from Government 167,446 165,346 165,034 164,742 165,693
Surplus/(deficit) attributable to the Australian Government (6,374) (6,185) (6,288) (5,568) (4,984)
OTHER COMPREHENSIVE INCOME          
Changes in asset revaluation surplus 247 - - - -
Total other comprehensive income 247 - - - -
Total comprehensive income/(loss) (6,127) (6,185) (6,288) (5,568) (4,984)
Table 3.2.1: Comprehensive income statement (showing net cost of services)
for the period ended 30 June
Note: Impact of net cash appropriation arrangements
  2014-15
$'000
2015-16
$'000
2016-17
$'000
2017-18
$'000
2018-19
$'000
Total comprehensive income/(loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations (6,127) (6,185) (6,288) (5,568) (4,984)
less depreciation/amortisation expenses previously funded through revenue appropriations(a)          
Total comprehensive income/(loss) - as per the Statement of Comprehensive Income (6,127) (6,185) (6,288) (5,568) (4,984)

(a) 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, or 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.

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS          
Financial assets          
Cash and cash equivalents 1,083 2,000 2,000 2,000 2,000
Trade and other receivables 36,576 30,600 31,225 23,301 22,434
Total financial assets 37,659 32,600 33,225 25,301 24,434
Non-financial assets          
Land and buildings 12,643 10,031 7,389 11,040 9,889
Property, plant and equipment 5,020 4,696 4,614 4,191 3,514
Intangibles 3,839 3,383 2,410 2,522 1,986
Inventories - - - - -
Other non-financial assets 1,039 999 997 1,010 1,024
Total non-financial assets 22,541 19,109 15,410 18,763 16,413
Total assets 60,200 51,709 48,635 44,064 40,847
LIABILITIES          
Payables          
Suppliers 8,644 8,377 8,455 8,650 8,860
Other payables 16,389 10,368 11,601 10,446 9,163
Total payables 25,033 18,745 20,056 19,096 18,023
Provisions          
Employee provisions 26,178 27,193 26,311 26,015 26,033
Other provisions 5,906 5,580 5,274 4,419 4,121
Total provisions 32,084 32,773 31,585 30,434 30,154
Liabilities included in disposal groups held for sale          
Total liabilities 57,117 51,518 51,641 49,530 48,177
Net assets 3,083 191 (3,006) (5,466) (7,330)
EQUITY*          
Parent entity interest          
Contributed equity 68,331 71,624 74,715 77,823 80,943
Reserves 3,967 3,967 3,967 3,967 3,967
Retained surplus/(accumulated deficit) (69,215) (75,400) (81,688) (87,256) (92,240)
Total parent entity interest 3,083 191 (3,006) (5,466) (7,330)
Total equity 3,083 191 (3,006) (5,466) (7,330)

*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)
  Retained earnings
$'000
Asset revaluation reserve
$'000
Other reserves
$'000
Contributed equity/ capital
$'000
Total equity
$'000
Opening balance as at 1 July 2015          
Balance carried forward from previous period (69,215) 3,967 - 68,331 3,083
Adjustment for changes in accounting policies - - - - -
Adjusted opening balance (69,215) 3,967 - 68,331 3,083
Comprehensive income          
Other comprehensive income - - - - -
Surplus/(deficit) for the period (6,185) - - - (6,185)
Total comprehensive income (6,185) - - - (6,185)
of which:          
Attributable to the Australian Government (6,185) - - - (6,185)
Transactions with owners          
Distributions to owners          
Returns of capital:          
Other       (11,596) (11,596)
Contributions by owners          
Equity Injection - Appropriation - - - 12,896 12,896
Departmental Capital Budget (DCB) - - - 1,993 1,993
Sub-total transactions with owners - - - 3,293 3,293
Transfers between equity components         -
Estimated closing balance as at 30 June 2016 (75,400) 3,967 - 71,624 191
Closing balance attributable to the Australian Government (75,400) 3,967 - 71,624 191

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES          
Cash received          
Appropriations 165,238 174,943 166,848 175,103 168,999
Sale of goods and rendering of services 1,621 3,621 2,438 2,438 2,438
Net GST received 6,456 6,857 6,934 7,652 7,120
Other 3,804 - - - -
Total cash received 177,119 185,421 176,220 185,193 178,557
Cash used          
Employees 94,685 103,353 98,207 96,849 96,494
Suppliers 77,515 78,030 76,075 80,106 80,125
s.74 Retained Revenue Receipts transferred to OPA 5,458 3,621 2,438 2,438 2,438
Other 150 - - - -
Total cash used 177,808 185,004 176,720 179,393 179,057
Net cash from/(used by) operating activities (689) 417 (500) 5,800 (500)
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant, equipment and intangibles 3,178 2,793 2,591 8,908 2,620
Total cash used 3,178 2,793 2,591 8,908 2,620
Net cash from/(used by) investing activities (3,178) (2,793) (2,591) (8,908) (2,620)
FINANCING ACTIVITIES          
Cash received          
Contributed equity 3,009 3,293 3,091 3,108 3,120
Total cash received 3,009 3,293 3,091 3,108 3,120
Net cash used by financing activities 3,009 3,293 3,091 3,108 3,120
Net increase/(decrease) in cash held (858) 917 - - -
Cash and cash equivalents at the beginning of the reporting period 1,941 1,083 2,000 2,000 2,000
Cash and cash equivalents at the end of the reporting period 1,083 2,000 2,000 2,000 2,000

Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital bu
dget statement
(for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
NEW CAPITAL APPROPRIATIONS          
Capital budget - Act No. 1 (DCB) 2,013 1,993 1,991 2,008 2,020
Equity injections - Act No. 2 2,700 12,896 1,100 1,100 1,100
Total new capital appropriations 4,713 14,889 3,091 3,108 3,120
Provided for:          
Purchase of non-financial assets 3,713 2,793 2,591 2,608 2,620
Other Items 1,000 12,096 500 500 500
Total items 4,713 14,889 3,091 3,108 3,120
PURCHASE OF NON-FINANCIAL ASSETS          
Funded by capital appropriations (a) 1,868 800 600 600 600
Funded by capital appropriation - DCB (b) 2,013 1,993 1,991 2,008 2,020
Funded internally from departmental resources (c) - - - 6,300 -
TOTAL AMOUNT SPENT 3,881 2,793 2,591 8,908 2,620
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 3,178 2,793 2,591 8,908 2,620
TOTAL CASH REQUIRED TO ACQUIRE ASSETS 3,178 2,793 2,591 8,908 2,620

(a) Includes both current and prior Act 3 and Bills 4-6 appropriations and special capital appropriations.

(b) Does not include annual finance lease costs. Includes purchases from current and previous years' departmental capital budgets (DCBs).

(c) Includes current and prior year Act (No. 1) and Bills 3/5 appropriations (excluding amounts from the DCB).

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements
(2015-16 Budget year)
  Buildings
$'000
Other property, plant and equipment
$'000
Computer software and intangibles
$'000
Total
$'000
As at 1 July 2015        
Gross book value 12,643 5,020 12,851 30,514
Accumulated depreciation/amortisation and impairment - - (9,012) (9,012)
Opening net book balance 12,643 5,020 3,839 21,502
Capital asset additions        
Estimated expenditure on new or replacement assets        
By purchase - appropriation equity(a) 30 - 770 800
By purchase - appropriation ordinary annual services(b) - 1,392 601 1,993
Total additions 30 1,392 1,371 2,793
Other movements        
Depreciation/amortisation expense (2,642) (1,716) (1,827) (6,185)
Total other movements (2,642) (1,716) (1,827) (6,185)
As at 30 June 2016        
Gross book value 12,673 6,412 14,222 33,307
Accumulated depreciation/amortisation and impairment (2,642) (1,716) (10,839) (15,197)
Closing net book balance 10,031 4,696 3,383 18,110

(a) ‘Appropriation equity' refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Act (No.2) 2015-16 and Bill (No.4) 2015-16, including CDABs.

(b) ‘Appropriation ordinary annual services' refers to funding provided through Appropriation Act (No.1) 2015-16 and Bill (No.3) 2015-16 for depreciation/amortisation expenses, DCBs or other operational expenses.

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)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT          
Write-down and impairment of assets 2,262 - - - -
Other expenses 11,000 - - - -
Total expenses administered on behalf of Government 13,262 - - - -
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Non-taxation revenue          
Fees and fines 34,050 40,000 40,000 40,000 40,000
Other revenue - - - - -
Total non-taxation revenue 34,050 40,000 40,000 40,000 40,000
Total own-source revenue administered on behalf of Government 34,050 40,000 40,000 40,000 40,000
Total own-source income administered on behalf of Government 34,050 40,000 40,000 40,000 40,000
Net cost of/(contribution by) services (20,788) (40,000) (40,000) (40,000) (40,000)

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)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
ASSETS          
Financial assets          
Cash and cash equivalents - - - - -
Trade and other receivables 5,252 5,252 5,252 5,252 5,252
Total financial assets 5,252 5,252 5,252 5,252 5,252
Total assets administered on behalf of Government 5,252 5,252 5,252 5,252 5,252
LIABILITIES          
Payables          
Other payables 11,000 - - - -
Total payables 11,000 - - - -
Total liabilities administered on behalf of Government 11,000 - - - -
Net assets/(liabilities) (5,748) 5,252 5,252 5,252 5,252

Prepared on Australian Accounting Standards basis.

Table 3.2.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
  2014-15
Actual
$'000
2015-16
Revised budget
$'000
2016-17
Forward estimate
$'000
2017-18
Forward estimate
$'000
2018-19
Forward estimate
$'000
OPERATING ACTIVITIES          
Cash received          
Fees 32,581 40,000 40,000 40,000 40,000
Other 240 11,000 - - -
Total cash received 32,821 51,000 40,000 40,000 40,000
Cash used          
Other 32,830 51,000 40,000 40,000 40,000
Total cash used 32,830 51,000 40,000 40,000 40,000
Net cash from/(used by) operating activities (9) - - - -
Net increase/(decrease) in cash held (9) - - - -
Cash and cash equivalents at beginning of reporting period 9 - - - -
Cash and cash equivalents at end of reporting period - - - - -

Prepared on Australian Account
ing Standards basis.

Notes to the financial statements

Accounting policy

The 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

Entity assets, liabilities, revenues and expenses are those items that are controlled by the ACCC that are used by the ACCC in producing its programme and include:

  • computers, plant and equipment and building fitout used in providing goods and services;
  • liabilities for employee entitlements;
  • revenue from appropriations or independent sources in payment for the departmental programme; and
  • employee, supplier and depreciation expenses incurred in providing entity programme.

Administered items are those items incurred in providing programmes that are controlled by the Government and managed, or oversighted by the ACCC on behalf of the government. Administered revenues include fees and fines.

Departmental revenue

Revenue from government represents the purchase of outputs from the ACCC by the Government and is recognised to the extent that it has been received into the ACCC's bank account.

Revenue from other sources, representing sales from goods and services, is recognised at the time that it is imposed on customers.

Departmental expenses — employees

Payments and net increases in entitlements to employees for services rendered in the financial year.

Departmental expenses — suppliers

Payments to suppliers for goods and services used in providing entity programmes.

Departmental expenses — depreciation and amortisation

Depreciable property, plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life, using the straight-line calculation method.

Departmental assets — financial assets

The primary financial asset relates to receivables. Financial assets are used to fund the ACCC's capital programme, employee entitlements, creditors and to provide working capital.

Departmental assets — non-financial assets

These items represent future benefits that the ACCC will consume in producing outputs. The reported value represents the purchase paid less depreciation incurred to date in using the asset.

Departmental liabilities — provisions and payables

Provision has been made for the ACCC's liability for:

  • employee entitlements arising from services rendered by employees. The liability includes unpaid annual leave and long service leave;
  • making good leased premises and lease incentives;
  • onerous lease for the Nishi building in New Acton, Canberra; and
  • unpaid expenses and unearned revenue as at balance date.