Royal Australian Mint

Date

Section 1: Agency overview and resources

1.1 Strategic direction statement

The Royal Australian Mint (the Mint) is a prescribed agency operating under the Financial Management and Accountability Act 1997. The Mint's vision is to achieve excellence as a sustainable world class Mint. Its goal is to meet the circulating coin and collector coin needs of Australia and selected international markets. The Mint is also the custodian of Australia's National Coin Collection and provides educational and tourist services to local and overseas residents.

Over the next three years, the Mint's key strategies include:

  • further development of in‑house capability;
  • improve relationships with suppliers and ensure customer expectations are met by delivering quality products in‑full and on‑time;
  • continue to recognise and demonstrate the importance of staff;
  • maintain workplace health and safety, and environmental conditions; and
  • continue to build brand recognition.

As the sole supplier of Australia's circulating coin requirements, the Mint is responsible for the continuous review of Australian coinage and for providing advice to the Treasury and the Government on coin related issues.

In 2013‑14, the Mint will continue to target revenue growth opportunities for both numismatic and international circulating coin, particularly in the Pacific and neighbouring countries.

To ensure that Commonwealth resources are appropriately deployed, the Mint will implement the lean philosophy across the organisation to improve its operational efficiency and drive improvement. To deliver a safe and secure environment, the Mint will continue to invest in health and safety for its employees and maintain a high level of security.

The Mint will increase engagement with its employees to empower and motivate staff, invest in health and wellbeing activities, and conduct mentoring and leadership programs.

1.2 Agency resource statement

Table 1.1 shows the total resources for the Mint.

Table 1.1: Royal Australian Mint 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
Other services            
Special accounts            
Opening balance 59,274 1 -   59,274 -
Non-appropriation receipts to special accounts -   181,953   181,953 176,987
Total special account 59,274   181,953   241,227 176,987
Total net resourcing for the Mint 59,274   181,953   241,227 176,987

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

1.3 Budget measures

The Mint does not have any budget measures for 2013‑14.

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 which contribute to Government outcomes over the Budget and forward years.

The Mint'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 the Mint.

Outcome 1: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products

Outcome 1 strategy

To achieve this outcome the Mint will continue to:

  • produce cost efficient circulating coins for Australia;
  • produce appropriate circulating coins for foreign jurisdictions under commercial arrangements;
  • maintain an appropriate level of Australian circulating coin;
  • provide advice to the Treasury and government on coin related issues; and
  • develop and produce high quality profitable numismatic products.

As the sole producer of Australian circulating coin and custodian of the National Coin Collection, the following activities are an adjunct to the key strategies outlined above:

  • delivering an education program through the Mint's visitors centre;
  • promoting public understanding of the cultural and historical significance of coins; and
  • maintaining Australia's National Coin Collection.

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: The coinage needs of the Australian economy, collectors and foreign countries are met through the manufacture and sale of circulating coins, collector coins and other minted like products 2012‑13
Estimated
actual
expenses
$'000
2013 ‑14
Estimated
expenses
$'000
Program 1.1: Royal Australian Mint    
Administered expenses    
Special accounts 56,845 54,026
Departmental expenses    
Special accounts 94,557 98,397
Total expenses for Outcome 1 151,402 152,423
     
  2012‑13 2013‑14
 Averag
e staffing level (number)
217 241

Contributions to Outcome 1

Program 1.1: Royal Australian Mint
Program objective

To produce and distribute circulating coins, collector coins and minted like products to meet the demands of the Australian economy, collectors and foreign countries.

Program expenses

The costs of production, warehousing and distribution of minted circulating coin are dependent on the demand for circulating coin by Australian commercial banks and foreign jurisdictions whilst costs for numismatic products are driven by orders received from collectors.

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
Administered items          
Special account          
Minting and Coinage Special Account 56,845 54,026 54,092 54,874 55,829
Departmental items          
Special account          
Minting and Coinage Special Account 94,557 98,397 101,820 108,046 113,397
Total program expenses 151,402 152,423 155,912 162,920 169,226

Program deliverables

The Mint has the following deliverables:

  • produce Australian circulating coins to meet the demands of the Australian community;
  • maintain minted Australian circulating coin inventory;
  • produce circulating coins to meet demand from foreign countries;
  • produce numismatic products to meet Australian and overseas demand;
  • maintain Australia's National Coin Collection;
  • maintain the Mint's visitor gallery, including building and surrounds;
  • provide an educational program to school students who visit the Mint; and
  • promote public understanding about the cultural and historical significance of coins.
Program key performance indicators

The Mint has the following key performance indicators:

  • produce and deliver Australian circulating coins in a cost effective and timely manner;
  • foreign circulating coin sales meet or exceed cost of production;
  • all numismatic sales meet or exceed cost of production;
  • at least 95 per cent of numismatic orders placed are produced and delivered within contracted delivery time;
  • rotate the display of Australia's National Coin Collection on a regular basis;
  • maintenance of gallery and visitor centre to community standard;
  • ensure that school student visitor programs align with relevant school curricula; and
  • increase in visitor numbers to the gallery and visitor centre compared to prior year's actual visitor numbers.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013‑14 budget year. 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, special accounts and government Indigenous expenditure.

3.1 Explanatory tables

3.1.1 Movement of administered funds between years

The Mint does not have any movement of administered funds.

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 the Mint.

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
Minting and Coinage Special Account 1 59,274 181,953 177,789 - 63,438
  55,296 176,987 173,009 - 59,274
Total special accounts 2013‑14 Budget estimate   59,274 181,953 177,789 - 63,438
Total special accounts 2012‑13 estimate actual   55,296 176,987 173,009 - 59,274

3.1.3 Australian Government Indigenous Expenditure

The Mint does not have any Australian Government Indigenous Expenditure.

3.2 Budgeted financial statements

3.2.1 Differences in agency resourcing and financial statements

The Mint does not have any material differences between agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements

There is a minor decrease in the anticipated operating results in 2013‑14 compared to 2012‑13 due to the Mint's investment in additional capability and capacity.

There is an increase in the estimated cash balances in the Mint's budgeted departmental statement of cash flows. This movement is due to a greater increase in receipts from supply of goods and services compared to expenditure.

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 18,660 23,257 23,594 24,302 25,031
Supplier 63,364 64,498 66,740 72,272 76,678
Depreciation and amortisation 5,127 4,004 4,848 4,834 5,050
Finance costs 4 1 1 1 1
Other 7,402 6,637 6,637 6,637 6,637
Total expenses 94,557 98,397 101,820 108,046 113,397
LESS:          
OWN-SOURCE INCOME          
Sale of goods and rendering of services 90,624 94,521 97,852 104,424 109,354
Interest 350 350 600 600 600
Other revenue 7,461 6,733 6,733 6,733 6,733
Total own-source income 98,435 101,604 105,185 111,757 116,687
Surplus (deficit) attributable to the Australian Government 3,878 3,207 3,365 3,711 3,290

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 and equivalents 59,858 63,438 63,527 64,740 67,536
Trade and other receivables 9,106 9,797 13,177 16,731 20,005
Tax assets 1,081 1,081 1,081 1,081 1,081
Total financial assets 70,045 74,316 77,785 82,552 88,622
Non-financial assets          
Infrastructure, plant and equipment 44,518 44,545 44,434 43,967 41,055
Heritage and cultural 23,388 23,388 23,388 23,388 23,388
Inventories 30,971 30,973 30,973 30,973 30,973
Intangibles 1,073 1,559 1,807 1,473 1,868
Other 656 476 476 476 476
Total non-financial assets 100,606 100,941 101,078 100,277 97,760
Total assets 170,651 175,257 178,863 182,829 186,382
LIABILITIES          
Provisions          
Employees 6,729 8,273 8,521 8,776 9,039
Total provisions 6,729 8,273 8,521 8,776 9,039
Payables          
Suppliers 15,384 17,784 17,784 17,784 17,784
Tax liabilities 1,706 1,706 1,706 1,706 1,706
Other 12,638 12,570 12,570 12,570 12,570
Total payables 29,728 32,060 32,060 32,060 32,060
Interest bearing liabilities          
Leases 49 7 - - -
Total interest bearing liabilities 49 7 - - -
Total liabilities 36,506 40,340 40,581 40,836 41,099
Net assets 134,145 134,917 138,282 141,993 145,283
EQUITY          
Contributed equity 77,903 77,903 77,903 77,903 77,903
Reserves 25,679 25,679 25,679 25,679 25,679
Retained surpluses or accumulated deficits 30,563 31,335 34,700 38,411 41,701
Total equity 134,145 134,917 138,282 141,993 145,283
Current assets 100,591 104,684 108,153 112,920 118,990
Non-current assets 70,060 70,573 70,710 69,909 67,392
Current liabilities 34,674 38,285 38,489 38,707 38,930
Non-current liabilities 1,832 2,055 2,092 2,129 2,169

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 170,414 181,369 178,329 183,329 184,030
Total cash received 170,414 181,369 178,329 183,329 184,030
Cash used          
Employees 17,567 21,712 23,346 24,046 24,768
Borrowing costs 4 1 1 1 1
Suppliers 143,613 151,559 149,908 154,036 153,932
Total cash used 161,184 173,272 173,255 178,083 178,701
Net cash from or (used by) operating activities 9,230 8,097 5,074 5,246 5,329
INVESTING ACTIVITIES          
Cash used          
Purchase of property, plant and equipment 4,125 4,517 4,985 4,033 2,533
Total cash used 4,125 4,517 4,985 4,033 2,533
Net cash from or (used by) investing activities (4,125) (4,517) (4,985) (4,033) (2,533)
FINANCING ACTIVITIES          
Cash used          
Repayments of debt - - - - -
Total cash used - - - - -
Net cash from or (used by) financing activities - - - - -
Net increase or (decrease) in cash held 5,105 3,580 89 1,213 2,796
Cash at the beginning of the reporting period 54,753 59,858 63,438 63,527 64,740
Cash at the end of the reporting period 59,858 63,438 63,527 64,740 67,536

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 2013          
Balance carried forward from previous period 28,128 25,679 - 77,903 131,710
Adjusted opening balance 28,128 25,679 - 77,903 131,710
Comprehensive income          
Surplus (deficit) for the period 3,207 - - - 3,207
Total comprehensive income recognised directly in equity 3,207 - - - 3,207
Estimated closing balance as at 30 June 2014 31,335 25,679 - 77,903 134,917

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
PURCHASE OF NON-FINANCIAL ASSETS          
Funded internally from departmental resources 4,125 4,517 4,985 4,033 2,533
TOTAL 4,125 4,517 4,985 4,033 2,533
RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE          
Total purchases 4,125 4,517 4,985 4,033 2,533
Total cash used to acquire assets 4,125 4,517 4,985 4,033 2,533

Prepared on Australian Accounting Standards basis.

Table 3.2.6: Statement of asset movements — departmental
  Other
infrastructure,
plant and
equipment
$'000

Heritage and
cultural
assets
$'000

Intangibles
$'000
 Total
$'000
As at 1 July 2013        
Gross book value 55,903 23,388 7,343 86,634
Accumulated depreciation/amortisation and impairment 11,385 - 6,270 17,655
Opening net book balance 44,518 23,388 1,073 68,979
Capital asset additions        
By purchase - other 3,667 - 850 4,517
Total additions 3,667 - 850 4,517
Other movements        
Depreciation/amortisation expense 3,640 - 364 4,004
Total other movements 3,640 - 364 4,004
As at 30 June 2014        
Gross book value 59,570 23,388 8,193 91,151
Accumulated depreciation/amortisation and impairment 15,025 - 6,634 21,659
Closing net book balance 44,545 23,388 1,559 69,492

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          
Suppliers 55,345 52,478 52,505 53,248 54,162
Other 1,500 1,548 1,587 1,626 1,667
Total expenses administered on behalf of government 56,845 54,026 54,092 54,874 55,829
LESS:          
OWN-SOURCE INCOME          
Own-source revenue          
Non-taxation revenue          
Goods and services 131,775 130,550 133,752 132,555 133,532
Total non-taxation revenue 131,775 130,550 133,752 132,555 133,532
Total own-source revenues administered on behalf of Government on behalf of government 131,775 130,550 133,752 132,555 133,532
Total own-sourced income administered on behalf of Government 131,775 130,550 133,752 132,555 133,532
Net Cost of (contribution by) services (74,930) (76,524) (79,660) (77,681) (77,703)
Surplus (Deficit) 74,930 76,524 79,660 77,681 77,703

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          
Receivables 14,587 14,587 14,587 14,587 14,587
Total financial assets 14,587 14,587 14,587 14,587 14,587
Non-financial assets          
Inventories 22,558 22,558 22,558 22,558 22,558
Total non-financial assets 22,558 22,558 22,558 22,558 22,558
Total assets administered on behalf of government 37,145 37,145 37,145 37,145 37,145
LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT          
Payables          
Suppliers - - - - -
Total payables - - - - -
Total liabilities administered on behalf of government - - - - -
Net assets/(liabilities) 37,145 37,145 37,145 37,145 37,145

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 received          
Sales of goods and rendering of services (seigniorage) 74,930 89,704 79,660 77,651 77,703
Total cash received 74,930 89,704 79,660 77,651 77,703
Net cash from or (used by) operating activities 74,930 89,704 79,660 77,651 77,703
Net increase or (decrease) in cash held 74,930 89,704 79,660 77,651 77,703
Cash at beginning of reporting period - - - - -
Cash to Official Public Account for - special accounts 74,930 89,704 79,660 77,651 77,703
Cash at end of reporting period - - - - -

Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget

The Mint has no administered capital budget.

Table 3.2.11: Schedule of asset movements — administered

The Mint has no administered asset movements.

3.2.4 Notes to the financial statements

Departmental
Basis of accounting

The Mint's budgeted statements have been prepared on an accrual basis, in accordance with the historical cost convention except for some assets and liabilities that are at valuation and in accordance with:

  • the Australian Government's financial budgeting and reporting framework; and
  • Australian Accounting Standards.
Budgeted departmental income statement
Revenues

Revenue is derived from the production of circulating coins, the sale of numismatic coins and coin like products. The amount of revenue earned in any one‑year is dependent upon the demand for such products by the Australian financial institutions and the coin collecting market.

Expenses
Employees

This includes wages and salaries, superannuation, provision for annual leave and long service leave.

Depreciation and amortisation

Depreciable assets are written off over their estimated useful lives, using the straight‑line method.

Other

Other expenses include the cost of goods sold.

Budgeted departmental balance sheet
Non‑financial assets

Inventory

Inventories held for resale are at the lower of cost and net realisable value. Work in progress and finished goods are brought to account to include direct costs and a portion of direct labour and overhead. All precious metals are purchased and brought to account at cost.

Provisions and payables
Employees

The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave, as all sick leave is non‑vesting.

The non‑current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows in respect of all employees.

Asset valuation

Commonwealth Government agencies are required to value property, plant and equipment and other infrastructure assets using the fair value method of valuation.

Administered

Seigniorage is collected by the Mint on behalf of the Commonwealth Government. Seigniorage represents the difference between the face value of the coinage sold to the Australian financial institutions and its cost of production to the Mint. Seigniorage is treated as an administered item within the Mint's administered budget statements.