A C USTRALIAN
A
USTRALIAN
C
OMPETITION AND
C
ONSUMER
C
OMMISSION
Section 1: Agency overview and resources; variations and measures ............... 33
31
A
USTRALIAN
C
OMPETITION AND
C
ONSUMER
C
OMMISSION
Section 1: Agency overview and resources; variations and measures
O VERVIEW
There has been no change to the overview included in the Portfolio Budget
Statements 2006-07 ( page 83).
Table 1.1: Agency outcome and output group
Outcome
Outcome 1
To enhance social and economic welfare of the
Australian community by fostering competitive, efficient, fair and informed Australian markets
Description
To bring about greater competitiveness in every sector of the economy.
Output group
Output Group 1.1
Australian Competition and
Consumer Commission
A DDITIONAL ESTIMATES AND VARIATIONS TO OUTCOMES
The following variations contributed to a net increase in agency outputs of $2.5 million for the Australian Competition and Consumer Commission (ACCC) in 2006-07.
Table 1.2: Additional estimates and variations to outcomes — measures
2006-07
$'000
2007-08
$'000
2008-09
$'000
Outcome 1
Increase in estimates (departmental)
Horticulture Mandatory Code of Conduct enforcement
1
2,534 2,200 2,185
1 This is a cross portfolio measure with the Department of Agriculture, Fisheries and Forestry.
2009-10
$'000
2,233
Table 1.3: Additional estimates and variations to outcomes — other variations
The ACCC does not have any other variations to Outcome 1.
33
M EASURES — A GENCY SUMMARY
Table 1.4: Summary of measures since the 2006-07 Budget
Measure Output groups
2006-07
$'000 affected Admin Dept items outputs Total
2007-08
$'000
Admin Dept items outputs
Expense Measure
Horticulture Mandatory Code of
Conduct - enforcement
1
Total of Measure
1.1
-
-
2,534
2,534
2,534
2,534
-
-
2,200
2,200
1 This is a cross portfolio measure with the Department of Agriculture, Fisheries and Forestry.
Total
2,200
2,200
2008-09
$'000
Admin Dept items outputs Total
2009-10
$'000
Admin Dept items outputs
-
-
2,185
2,185
2,185
2,185
-
-
2,233
2,233
Total
2,233
2,233
Agency Additional Estimates Statements — ACCC
B REAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL
Table 1.5: Appropriation Bill (No. 3) 2006-07
2005-06 available
$'000
2006-07 budget
$'000
DEPARTMENTAL OUTPUTS
Outcome 1
To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed
Australian markets
Total
89,794
89,794
104,984
104,984
2006-07 Additional Reduced revised estimates estimates
$'000 $'000 $'000
107,518
107,518
2,534
2,534
-
-
Table 1.6: Appropriation Bill (No. 4) 2006-07
The ACCC does not have any appropriation from Appropriation Bill (No. 4) 2006-07.
S UMMARY OF STAFFING CHANGES
Table 1.7: Average Staffing Level (ASL)
Outcome 1
To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed
Australian markets
Total
S UMMARY OF AGENCY SAVINGS
Table 1.8: Summary of agency savings
The ACCC does not have any agency savings.
2006-07 budget
578
578
2006-07 revised
588
588 variation
10
10
O THER RESOURCES AVAILABLE TO BE USED
Table 1.9: Other resources available to be used
The ACCC has not made any changes to estimated other resources available to be used since the Portfolio Budget Statements 2006-07.
35
Agency Additional Estimates Statements — ACCC
E STIMATES OF EXPENSES FROM SPECIAL APPROPRIATIONS
Table 1.10: Estimates of expenses from special appropriations
The ACCC does not have any special appropriations.
E STIMATES OF SPECIAL ACCOUNT FLOWS
Table 1.11: Estimates of special account flows
Other Trust Moneys Account
Opening Credits
Balance
2006-07 2006-07
2005-06 2005-06
$'000
56
52
-
-
$'000
200
4
-
Services for Other Government and Non-Agency Bodies Account
Total special accounts
2006-07 Budget estimate
Total special accounts
2005-06 actual
56
52
200
4
Debits Adjustments
2006-07
2005-06
$'000
200
-
-
-
Closing
Balance
2006-07 2006-07
2005-06 2005-06
$'000
-
-
-
-
$'000
56
56
-
-
200
-
56
56
36
Agency Additional Estimates Statements — ACCC
Section 2: Revisions to agency outcomes
O UTCOMES , ADMINISTERED ITEMS AND OUTPUTS
Table 1.1 ‘Agency outcome and output group’ lists the outcome and output group for the Australian Competition and Consumer Commission (ACCC).
The ACCC has not made any changes to its outcome or outputs since the Portfolio
Budget Statements 2006-07.
Figure 2: Outcome and output structure for Outcome 1
Australian Competition and Consumer Commission
Chairperson: Mr Graeme Samuel
Outcome 1
To enhance social and economic welfare of the Australian community by fostering competitive, efficient, fair and informed Australian markets
Total resources: $108.1 million
Departmental appropriation: $107.5 million
Output Group 1.1
Australian Competition and Consumer Commission
Output 1.1.1
Output 1.1.2
Compliance with competition, fair trading and consumer protection laws and appropriate remedies when the law is not followed
Competitive market structures and informed behaviour
Total resources: $65.1 million
Revised performance information — 2006-07
Total resources: $43.0 million
The ACCC has not made any changes to its performance information since the Portfolio
Budget Statements 2006-07 .
37
Agency Additional Estimates Statements — ACCC
Section 3: Budgeted financial statements
The budgeted financial statements contain estimates prepared in accordance with the
Australian Government’s financial budgeting and reporting framework, including the
Australian Equivalents to International Financial Reporting Standards (AEIFRS) as well as specific guidelines issued by the Department of Finance and Administration.
The statements show the planned financial performance for the 2006-07 Budget year and each of the forward years from 2007-08 to 2009-10. The statements also show the actual for 2005-06 for comparative purposes.
A NALYSIS OF BUDGETED FINANCIAL STATEMENTS
An analysis of the Australian Competition and Consumer Commission’s (ACCC) budgeted financial statements, as reflected in the budgeted departmental financial statements for 2006-07, is provided below.
Departmental
Income Statement
ACCC is budgeting for a break-even operating result for 2006-07.
Total revenues and expenses are estimated to be $108.1 million, an increase of
$2.5 million from the 2006-07 Budget. The increase is a result of increased funding for the Horticulture Mandatory Code of Conduct — enforcement measure.
Balance Sheet
The ACCC’s budgeted net asset position of $39.0 million represents an increase of
$4.0 million from the 2005-06 actual. The increase is primarily attributable to an equity injection of $4.0 million associated with 2006-07 Budget measures.
Total assets are expected to increase by $4.7 million to $55.8 million from the 2005-06 actual. The increase reflects the leasehold, infrastructure plant and equipment and information technology investment flowing from measures. The receivables will decrease due primarily to the ACCC funding part of its new accommodation fit out.
The ACCC’s primary liability continues to be accrued employee leave entitlements of
$13.1 million.
38
Agency Additional Estimates Statements — ACCC
B UDGETED FINANCIAL STATEMENTS
Departmental financial statements
Budgeted departmental income statement
This statement provides a picture of the expected financial results for the ACCC by identifying full accrual expenses and revenues, and highlights whether the ACCC is operating at a sustainable level.
Budgeted departmental balance sheet
This statement shows the financial position of the ACCC. It enables decision-makers to track the management of the ACCC’s assets and liabilities.
Budgeted departmental statement of cash flows
This statement identifies expected cash flows from operating, investing and financing activities.
Departmental statement of changes in equity — summary of movement
This statement shows the movement in the residual interest in assets after the deduction of liabilities.
Departmental capital budget statement
This statement shows all proposed capital expenditure funded from capital appropriation or from internal resources.
Departmental property, plant, equipment and intangibles — summary of movement
This statement shows the movement in the ACCC’s non-financial assets over the
2006-07 Budget year.
Schedule of administered activity
Schedule of budgeted income and expenses administered on behalf of government
This schedule identifies the revenue and expenses administered on behalf of the
Government. It also discloses administered revenues transferred to the Official Public
Account.
Schedule of budgeted assets and liabilities administered on behalf of government
This schedule shows the assets and liabilities administered on behalf of the
Government.
39
Agency Additional Estimates Statements — ACCC
Schedule of budgeted administered cash flows
The schedule shows cash flows administered on behalf of the Government.
Schedule of administered capital budget
The ACCC does not have any administered capital.
Schedule of administered property, plant, equipment and intangibles — summary of movement
The ACCC does not have any administered property, plant, equipment or intangible assets.
40
Agency Additional Estimates Statements — ACCC
Table 3.1: Budgeted departmental income statement
(for the period ended 30 June)
Actual
2005-06
$'000
Revised Forward Forward Forward budget estimate estimate estimate
2006-07 2007-08 2008-09 2009-10
$'000 $'000 $'000 $'000
INCOME
Revenue
Revenues from Government
Goods and services
Total revenue
89,794
1,396
91,190
107,518
575
108,093
113,697
575
114,272
120,455
575
121,030
121,622
575
122,197
Gains
Net gains from sale of assets 22
Other 72
Total gains 94
Total income 91,284
EXPENSE
Employees
Suppliers
Depreciation and amortisation
Finance costs
Write-down of assets and impairment of assets
Total expenses
47,042
35,379
1,701
21
25
84,168
-
-
-
108,093
56,218
48,931
2,944
-
-
108,093
114,272
-
-
-
58,886
52,117
3,269
-
114,272
-
121,030
-
-
-
61,770
55,991
3,269
-
121,030
-
-
-
-
122,197
61,632
57,296
3,269
-
-
122,197
Operating result
Net surplus or (deficit) attributable to the Australian Government
7,116 -
7,116 -
-
-
-
-
-
-
-
41
Agency Additional Estimates Statements — ACCC
Table 3.2: Budgeted departmental balance sheet
(as at 30 June)
Actual
2005-06
$'000
Revised Forward Forward budget estimate estimate
2006-07 2007-08 2008-09
$'000 $'000 $'000
ASSETS
Financial assets
Cash and cash equivalents
Receivables
Total financial assets
1,599
45,061
46,660
1,624
43,756
45,380
1,649
44,504
46,153
1,674
45,298
46,972
Forward estimate
2009-10
$'000
1,699
46,092
47,791
Non-financial assets
Land and buildings
Infrastructure, plant and equipment
Inventories
Intangibles
Other
Total non-financial assets
Total assets
LIABILITIES
Payables
Suppliers
Other payables
Total payables
Provisions
Employees
Other provisions
Total provisions
Total liabilities
EQUITY
Contributed equity
Reserves
Retained surpluses
Total equity
Current assets
Non-current assets
Current liabilities
Non-current liabilities
1,286
2,184
118
208
663
4,459
51,119
2,516
524
3,040
12,414
596
13,010
16,050
29,067
968
5,034
35,069
47,358
3,761
13,378
2,672
5,624
3,804
118
208
663
10,417
55,797
2,541
524
3,065
13,109
596
13,705
16,770
33,025
968
5,034
39,027
46,043
9,754
9,918
6,852
4,387
4,988
118
211
663
10,367
56,520
2,516
524
3,040
13,857
596
14,453
17,493
33,025
968
5,034
39,027
46,816
9,704
10,267
7,226
3,150
6,250
118
161
663
10,342
57,314
2,516
524
3,040
14,651
596
15,247
18,287
33,025
968
5,034
39,027
47,635
9,679
10,664
7,623
1,913
7,621
118
2
663
10,317
58,108
2,516
524
3,040
15,445
596
16,041
19,081
33,025
968
5,034
39,027
48,454
9,654
11,061
8,020
42
Agency Additional Estimates Statements — ACCC
Table 3.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
Actual
2005-06
$'000
Revised Forward Forward budget estimate estimate
2006-07 2007-08 2008-09
$'000 $'000 $'000
OPERATING ACTIVITIES
Cash received
Goods and services
Appropriations
Net GST received
Total cash received
9,715
78,525
4,311
92,551
500
102,885
4,633
108,018
500
109,373
4,324
114,197
500
116,121
4,334
120,955
Cash used
Employees
Suppliers
Total cash used
Net cash from or (used by) operating activities
44,977
48,303
93,280
56,218
48,831
105,049
(729) 2,969
58,886
52,017
110,903
3,294
61,770
55,891
117,661
3,294
Forward estimate
2009-10
$'000
500
117,215
4,407
122,122
61,632
57,196
118,828
3,294
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment
Total cash received
Cash used
Purchase of property, plant and equipment
Purchase of intangibles
Total cash used
Net cash from or (used by) investing activities
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity
Other
Total cash received
Net cash from or (used by) financing activities
Net increase or (decrease) in cash held
Cash at the beginning of the reporting period
Cash at the end of the reporting period
63
63
1,235
83
1,318
(1,255) (8,902) (3,269) (3,269) (3,269)
1,975
-
1,975
1,975
(9) 25
1,608
1,599
-
-
8,702
200
8,902
3,958
2,000
5,958
5,958
1,599
1,624
-
-
3,269
-
3,269
-
-
-
-
25
1,624
1,649
3,269
3,269
-
25
1,649
1,674
-
-
-
-
-
-
-
-
3,269
-
3,269
-
-
-
-
25
1,674
1,699
43
Agency Additional Estimates Statements — ACCC
Table 3.4: Departmental statement of changes in equity — summary of movement (Budget 2006-07)
Accumulated Asset Other Contributed results revaluation reserves reserve
$'000 $'000 $'000 equity/ capital
$'000
Opening balance as at 1 July 2006
Balance carried forward from previous period
Opening balance
5,034
5,034
968
968 -
29,067
29,067
Total equity
$'000
35,069
35,069
Income and expense
Net operating result
Total income and expenses recognised directly in equity
Transactions with owners
Contribution by owners
Appropriation (equity injection)
Sub-total transactions with owners
-
-
-
-
-
-
-
-
3,958
3,958
-
3,958
3,958
Estimated closing balance as at 30 June 2007 5,034 968 33,025 39,027
Table 3.5: Departmental capital budget statement
Actual
2005-06
$'000
Revised Forward Forward Forward budget estimate estimate estimate
2006-07 2007-08 2008-09 2009-10
$'000 $'000 $'000 $'000
CAPITAL APPROPRIATIONS
Total equity injections
Total capital appropriations
1,975
1,975
3,958
3,958
-
-
-
-
-
-
Represented by:
Purchase of non-financial assets
Total represented by
1,975
1,975
3,958
3,958
-
-
-
-
-
-
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriation
Funded internally by
Total
Departmental resources
-
1,318
1,318
3,958
4,944
8,902
-
3,269
3,269
-
3,269
3,269
-
3,269
3,269
44
Table 3.6: Departmental property, plant, equipment and intangibles — summary of movement (Budget year 2006-07)
Land Investment property
$'000 $'000
Buildings Specialist Other Heritage Computer military infrastructure and cultural software
Other intangibles equipment plant and assets
$'000 $'000 equipment
$'000 $'000 $'000 $'000
As at 1 July 2006
Gross book value
Accumulated depreciation
Opening net book value
-
-
-
-
-
-
2,247
(961)
1,286
-
-
-
3,607
(1,423)
2,184
-
-
-
1,496
(1,288)
208
-
-
-
Total
$'000
7,350
(3,672)
3,678
Additions: by purchase
Depreciation/amortisation expense
-
-
-
-
5,250
(912)
-
-
3,452
(1,832)
-
-
200
(200)
-
-
8,902
(2,944)
As at 30 June 2007
Gross book value
Accumulated depreciation
Estimated closing net book value
-
-
-
-
-
-
7,497
(1,873)
5,624
-
-
-
7,059
(3,255)
3,804
-
-
-
1,696
(1,488)
208
-
-
-
16,252
(6,616)
9,636
Agency Additional Estimates Statements — ACCC
Table 3.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)
Actual
2005-06
$'000
Revised Forward Forward Forward budget estimate estimate estimate
2006-07 2007-08 2008-09 2009-10
$'000 $'000 $'000 $'000
INCOME ADMINISTERED ON
BEHALF OF GOVERNMENT
Revenue
Taxation
Other taxes, fees and fines
Total taxation
Total revenues administered on behalf of Government
21,053
21,053
21,053
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
Total income administered on behalf of Government
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Write down and impairment of assets
Total expenses administered on behalf of Government
21,053
4,121
4,121
10,000
-
-
10,000
-
-
10,000
-
-
10,000
-
-
Table 3.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)
Actual
2005-06
$'000
Revised Forward Forward Forward budget estimate estimate estimate
2006-07
$'000
2007-08
$'000
2008-09
$'000
2009-10
$'000
ASSETS ADMINISTERED ON
BEHALF OF GOVERNMENT
Financial assets
Cash and cash equivalents
Receivables
Total financial assets
Total assets administered on behalf of Government
1
4,334
4,335
4,335
1
4,000
4,001
4,001
1
4,000
4,001
4,001
1
4,000
4,001
4,001
1
4,000
4,001
4,001
46
Agency Additional Estimates Statements — ACCC
Table 3.9: Schedule of budgeted administered cash flows
(for the period ended 30 June)
Actual
2005-06
$'000
Revised budget
2006-07
$'000
Forward estimate
2007-08
$'000
OPERATING ACTIVITIES
Cash received
Other taxes, fees and revenue
Fines and costs
Other
Total cash received
Net cash from or (used by) operating activities
20,209
401
15
20,625
20,625
9,220
777
3
10,000
10,000
9,220
777
3
10,000
10,000
Forward estimate
2008-09
$'000
9,220
777
3
10,000
10,000
Net increase or (decrease) in
cash held
Cash at beginning of reporting period
Cash to Official Public Account for:
- appropriations
Cash at the end of reporting period
20,625
1
10,000
1
10,000
1
(20,625)
1
(10,000)
1
(10,000)
1
10,000
1
(10,000)
1
Forward estimate
2009-10
$'000
9,220
777
3
10,000
10,000
10,000
1
(10,000)
1
Table 3.10: Schedule of administered capital budget
The ACCC does not have any administered capital.
Table 3.11: Schedule of administered property, plant, equipment and intangibles — summary of movement (Budget year 2006-07)
The ACCC does not have any administered property, plant, equipment or intangible assets.
47
Agency Additional Estimates Statements — ACCC
N OTES TO THE FINANCIAL STATEMENTS
Accounting policy
The budgeted financial statements have been prepared on an accrual accounting basis in accordance with the:
• Finance Minister’s Orders;
• Australian Equivalents to International Accounting Standards (AEIFRS); and
• Interpretations issued by the Australian Accounting Standards Board and the
Urgent Issues Group that apply for the accounting period.
Departmental
Agency assets, liabilities, income and expenses are those items that are controlled and used by the ACCC in producing its outputs and include:
• computers, plant and equipment, and building fit out used in providing goods and services;
• liabilities for employee entitlements;
• revenue from appropriations or independent sources in payment for outputs; and
• employee, supplier and depreciation expenses incurred in providing agency outputs.
Departmental income
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 agency outputs.
48
Agency Additional Estimates Statements — ACCC
Departmental expenses — depreciation and amortisation
Depreciable property, plant and equipment, building fit out 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. This liability includes unpaid annual leave and long service leave. No provision has been made for sick leave because the level of sick leave is less on average than the amount which employees are entitled to each year.
Provision has also been made for unpaid expenses as at balance date.
Administered
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.
49
