Tertiary Education Quality and
Standards Agency
Entity resources and planned
performance
201
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
Section 1: Entity Overview and Resources ............................................................ 203
1.1
Strategic Direction Statement ....................................................................... 203
1.2
Entity Resource Statement ........................................................................... 206
1.3
Budget Measures .......................................................................................... 207
Section 2: Outcomes and Planned Performance ................................................... 208
2.1
Outcomes and Performance Information ...................................................... 208
Section 3: Explanatory Tables and Budgeted Financial Statements ................... 212
3.1
Explanatory Tables ....................................................................................... 212
3.2
Budgeted Financial Statements .................................................................... 213
202
Portfolio Glossary and Acronyms
TERTIARY EDUCATION QUALITY AND STANDARDS
AGENCY
Section 1: Entity Overview and Resources
1.1
STRATEGIC DIRECTION STATEMENT
The Tertiary Education Quality and Standards Agency (TEQSA) is Australia’s national
higher education quality assurance and regulatory agency. TEQSA was established
under the Tertiary Education Quality and Standards Agency Act 2011 (the Act) and
commenced regulatory functions on 29 January 2012.
The Act confers powers and functions on TEQSA to:

register regulated entities as registered higher education providers and accredit
courses of study

conduct compliance assessments and quality assessments

conduct accreditation assessments of accredited courses

provide advice and make recommendations to the Minister on matters relating to
the quality or regulation of higher education providers

collect, analyse, interpret and disseminate information relating to quality
assurance practice and quality improvement in higher education

cooperate with similar agencies in other countries.
TEQSA also has responsibility, as a designated authority under the Education Services
for Overseas Students Act 2000, for English Language Intensive Course for Overseas
Students providers if they have an entry arrangement with a registered higher
education provider, and for Foundation Programme providers.
TEQSA’s strategic priorities
TEQSA’s vision is to be recognised in Australia and internationally for its effective,
responsive and risk-reflective approach to standards based quality assurance.
In pursuit of this vision, key strategic priorities are identified for action over the next
triennium, including:

protect the quality of Australian higher education and its reputation domestically
and overseas

deliver efficient, effective and responsive quality assurance
203
TEQSA Budget Statements

continue to develop organisational capability and maximise organisational
efficiency.
These priorities will be addressed by further enhancement of TEQSA’s annual risk
assessments and increased flexibility of approaches to provider assessment. The
successful case management model will be maintained and emphasis will continue to
be placed on engagement and communication with higher education providers.
Changes to the Act
The then Minister for Education introduced the Tertiary Education Quality and
Standards Agency Amendment Bill 2014 on 27 February 2014 to enable TEQSA to
implement more efficient and effective processes around its provider registration and
course accreditation functions. The Bill was passed by Parliament on 4 December 2014
and enables TEQSA to:

improve its operational efficiency through greater delegation of its functions and
powers to single commissioners and to TEQSA staff, increasing the scope for
providers to seek internal review of decisions made under delegation from TEQSA

extend, on its own initiative, the period of registration and accreditation to support
more efficient quality assurance practices and help reduce the burden on
providers.
The amendments also separate the roles of Chief Executive Officer and Chief
Commissioner to allow the Chief Executive Officer to focus on the management and
administration of TEQSA and the Chief Commissioner to focus on delivering timely
provider registration and course accreditation decisions.
TEQSA’s development and progress
During 2014–15, with input from the TEQSA Advisory Council and the higher
education sector, TEQSA has continued to review its key processes including a
reduced scope of assessment for renewal of registration processes and streamlined
evidentiary requirements of providers when preparing applications for renewal of
registration, course accreditation and renewal of accreditation.
In addition, the agency significantly remodelled its risk assessment framework,
following sector wide consultation. This has reduced the burden on higher education
providers by using risk assessments to inform a differentiated approach to evidence
and reporting requirements in assessment processes (e.g. for renewal of registration
and course accreditation applications).
TEQSA introduced a ‘Core +’ model for renewal of registration processes (and
partially for course accreditation) that substantially reduced evidence requirements
and application assessment times for low risk providers.
204
TEQSA Budget Statements
TEQSA proposes to further reduce evidence requirements for many providers and is
currently consulting with the higher education sector on further developing this riskbased model to extend it fully to course accreditation for existing providers.
Key improvements also include a simplified design of the risk assessment framework,
focusing on students, staff, finance and regulatory history, greater flexibility for
different provider models, and improved information for providers. TEQSA
significantly reduced the data collection requirements in 2014 and exempted
universities from the information collection on the basis that all information required
from them by TEQSA is available through the Department of Education and Training’s
Higher Education Information Management Systems (HEIMS). TEQSA is working
with the Department of Education and Training to identify potential areas for further
rationalisation of provider information collection and reporting as part of the
development of an integrated higher education data collection.
TEQSA introduced a provider portal in the first half of 2014 to allow higher education
providers to lodge applications online. In the second half of 2014, this was extended to
external experts to facilitate interaction with TEQSA online and for providers to lodge
the 2014 provider information requirements.
The ongoing streamlining of quality assurance processes introduced in 2014–15
continues to encourage a culture of self-assurance by providers and aim to reduce:

reporting requirements for all higher education providers

duplication of requirements across regulatory bodies

time taken to make quality assurance assessments.
205
TEQSA Budget Statements
1.2
ENTITY RESOURCE STATEMENT
Table 1.1 shows the total resources from all sources. The table summarises how
resources will be applied by outcome and by administered and departmental
classification.
Table 1.1: Tertiary Education Quality and Standards Agency resource statement
—Budget estimates for 2015–16 as at Budget May 2015
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Ordinary annual services (a)
Departmental appropriation
Prior year appropriations (b)
Departmental appropriation (c)
s74 Retained revenue receipts (d)
Total
Total ordinary annual services [A]
6,768
16,501
15
5,700
15
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
12,328
15
18,028
30
23,284
5,715
12,343
18,058
23,284
5,715
12,343
18,058
-
-
-
-
(e)
Other services
Departmental non-operating
Prior year appropriations (b)
Equity injections
Total
-
-
-
-
-
-
-
-
23,284
5,715
Total other services [B]
Total available annual appropriations
[A+B]
Actual Estimate of prior
Available
year amounts
Appropriation
available in
2014–15
2015–16
$'000
$'000
Special appropriations
Special appropriations limited by
criteria/entitlement
Public Governance, Performance and
Accountability Act 2013 - s77 (f)
12,343
18,058
Proposed at
2015–16
Budget
Total 2015–16
estimate
$'000
$'000
200
-
200
200
Total special appropriations [C]
Total appropriations excluding special
accounts
200
23,484
5,715
200
12,543
200
18,258
Total resourcing [A+B+C]
23,484
5,715
12,543
18,258
Total net resourcing for TEQSA
23,484
5,715
12,543
18,258
(a) Appropriation Bill (No. 1) 2015–16.
(b) Estimated adjusted balance carried forward from previous year.
(c) Includes an amount of $0.893m 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 section 74 of the PGPA Act.
(e) Appropriation Bill (No. 2) 2015–16.
(f) Repayments not provided for under other appropriations. Amounts received on or before 30 June 2014
were repaid under section 28 of the Financial Management and Accountability Act 1997.
Note: All figures are GST exclusive.
206
TEQSA Budget Statements
1.3
BUDGET MEASURES
Budget measures relating to TEQSA are detailed in Budget Paper No. 2 and are
summarised below:
Table 1.2: Entity 2015–16 Budget measures
Part 2: MYEFO measures not previously reported in a portfolio statement
Programme
Measure
Communications and Public Affairs
Departmental expenses
(a)
2014–15 2015–16 2016–17 2017–18 2018–19
$'000
$'000
$'000
$'000
$'000
1.1
Total
Total measures
Departmental
(15)
(30)
(30)
(30)
-
(15)
(30)
(30)
(30)
-
(15)
(30)
(30)
(30)
-
Total
(15)
(30)
(30)
(30)
(a) The Communications and Public Affairs target savings was announced in the 2014–15 Budget
Prepared on a Government Finance Statistics (fiscal) basis
207
-
TEQSA Budget Statements
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 programmes are the
primary vehicle by which Government entities achieve the intended results of their
outcome statements. Entities are required to identify the programmes which contribute
to Government outcomes over the Budget and forward years.
Each outcome is described below together with its related programmes, specifying the
performance indicators and targets used to assess and monitor the performance of
TEQSA in achieving Government outcomes.
Outcome 1: Contribute to a high quality higher education sector through streamlined
and nationally consistent higher education regulatory arrangements; registration of
higher education providers; accreditation of higher education courses; and
investigation, quality assurance and dissemination of higher education standards and
performance.
Outcome 1 strategy
TEQSA has one outcome. TEQSA will work to achieve this outcome by:

delivering effective and timely regulation

reinforcing protection for students undertaking an Australian higher education
award

supporting the capacity of all providers to quality assure their delivery of higher
education

continuing to strengthen and streamline TEQSA’s approach to quality assurance
and regulation

consulting with peak bodies, higher education providers, the Higher Education
Standards Panel and other key stakeholders to promote shared understanding

continuing to strengthen information sharing arrangements with relevant agencies
and organisations

maximising TEQSA’s operational efficiency.
TEQSA contributes to building a national higher education system that meets
Australia’s future needs for an educated and skilled population, and maintains
Australia’s international reputation for providing quality higher education in a
demand-driven system.
208
TEQSA Budget Statements
Recognising the significant budget reductions in 2014–15 and forward years, TEQSA
will continue to review its operations to ensure that its quality assurance and
regulation activities are undertaken in the most efficient way possible, maintaining
high levels of quality, in order to minimise any impact on Outcome 1.
Outcome expense statement
Table 2.1 provides an overview of the total expenses for Outcome 1 by programme.
Table 2.1: Budgeted Expenses for Outcome 1
Outcome 1: Contribute to a high quality higher education sector through
streamlined and nationally consistent higher education regulatory
arrangements; registration of higher education providers; accreditation of
higher education courses; and investigation, quality assurance and
dissemination of higher education standards and performance.
Programme 1.1: Regulation and Quality Assurance
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year
Total for programme 1.1
Outcome 1 Totals by appropriation type
Departmental expenses
Departmental appropriation (a)
Expenses not requiring appropriation in the Budget year
Total expenses for Outcome 1
(b)
(b)
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
15,623
1,702
11,476
1,123
17,325
12,599
15,623
1,702
11,476
1,123
17,325
12,599
2014–15
2015–16
Average staffing level (number)
71
60
(a) Departmental Appropriation combines ‘Ordinary annual services (Appropriation Bill No. 1)’ and ‘Revenue
from independent sources (s74).
(b) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses and Audit Fees.
Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of
the budget year as government priorities change.
209
TEQSA Budget Statements
Programme 1.1: Regulation and Quality Assurance
Programme objective
The objectives for this programme are to:

assure the quality of Australian higher education through a standards based and
risk based approach to quality assurance

protect students by requiring providers to meet minimum standards for quality
higher education provision in an expanding higher education system

facilitate higher education providers to pursue their individual missions, and
encourage diversity, excellence and innovation in the sector.
Programme expenses
The 2014–15 Budget significantly reduced funding for TEQSA for 2014–15 and forward
years. The reduction for 2015–16 is approximately $4.15 million, a 27 per cent reduction
on 2014–15 funding.
Programme expenses 1.1 Regulation and Quality Assurance
2014–15
Estimated
actual
$'000
Annual departmental expenses:
Departmental item
Programme support
Expenses not requiring appropriation in the
Budget year (a)
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
15,623
11,476
8,967
8,971
9,034
1,702
1,123
1,067
1,228
869
Total programme expenses
17,325
12,599
10,034
10,199
9,903
(a) Expenses not requiring appropriation in the Budget year are made up of Depreciation Expenses,
Amortisation Expenses and Audit Fees.
210
TEQSA Budget Statements
Programme 1.1 deliverables

a robust quality assurance framework

decision making guided by the three principles of necessity, reflecting risk and
proportionality

streamlined processes and improved timelines for decision making taking into
account risk and provider history

provision of timely and relevant information to providers in relation to their
obligations under the TEQSA Act and the Education Services for Overseas Students
(ESOS) Act 2000

increased awareness of TEQSA’s roles and responsibilities in the community

enhanced organisational capability and operational efficiency.
Programme 1.1 key performance indicators
The key performance indicators for this outcome are:

high levels of compliance by higher education providers with the Higher
Education Standards Framework and relevant ESOS requirements

improved levels of self-assurance among higher education providers

high stakeholder confidence in TEQSA meeting its objectives

TEQSA consistently meets its service targets.
211
TEQSA Budget Statements
Section 3: Explanatory Tables and Budgeted Financial
Statements
Section 3 presents explanatory tables and budgeted financial statements which provide
a comprehensive snapshot of entity finances for the 2015–16 budget year. It explains
how budget plans are incorporated into the financial statements and provides further
details of the reconciliation between appropriations and programme expenses,
movements in administered funds, special accounts and government Indigenous
expenditure.
3.1
EXPLANATORY TABLES
3.1.1 Movement of administered funds between years
TEQSA has no movement of funds to report therefore table 3.1.1 is not presented.
3.1.2 Special accounts
TEQSA has no special accounts therefore table 3.1.2 is not presented.
3.1.3 Australian Government Indigenous Expenditure
The 2015–16 Australian Government Indigenous Statement is not applicable because
TEQSA has no Indigenous specific expenses.
212
TEQSA Budget Statements
3.2
BUDGETED FINANCIAL STATEMENTS
3.2.1 Differences in entity resourcing and financial statements
TEQSA’s resourcing statement in table 1.1 is directly comparable to the budgeted
financial statements.
3.2.2 Analysis of budgeted financial statements
Departmental financial statements
An analysis of TEQSA’s budgeted financial statements for 2015–16 is provided below.
Budgeted departmental income statement
TEQSA is budgeting for a deficit equal to the unappropriated depreciation and
amortisation expenses in 2015–16 and the three forward years.
Total expenses for 2015–16 are estimated to be $12.599 million, a reduction of
$4.726 million from the 2014–15 estimated actual.
Revenue from Government for 2015–16 is budgeted at $11.461 million. TEQSA’s
funding for 2015–16 is reduced by 27 per cent from the 2014–15 levels.
Budgeted departmental balance sheet
TEQSA has a budgeted net asset position of $4.494 million in 2015–16.
Total assets for 2015–16 are estimated to be $9.005 million, comprising $5.344 million in
financial assets and $3.661 million in non-financial assets.
Total liabilities for 2015–16 are estimated to be $4.511 million, with the primary
liabilities being accrued employee entitlements which total $2.435 million, suppliers’
and other payables of $1.678 million.
Budgeted departmental statement of cash flows
The statement provides information on estimates of the extent and nature of cash flows
by categorising the expected cash flows against operating, investing and financing
activities.
Statement of changes in equity—summary of movement
The statement shows the expected movement of equity during the budget year.
Administered financial statements
Schedule of budgeted income and expenses
The schedule shows the estimated revenues and expenses for programmes
administered by TEQSA on behalf of the Government.
213
TEQSA Budget Statements
TEQSA has in place cost recovery arrangements for specified services (including
registration and re‑registration of providers; accreditation and re‑accreditation of
courses; and major variations to registrations and accreditations) to higher education
providers.
All fee revenue from cost recovery arrangements is administered revenue and is
returned to the Consolidated Revenue Fund. TEQSA therefore does not have any
administered expenses, assets or liabilities.
Revenue
The administered revenue in 2015–16 from cost recovery arrangements is estimated to
be $4.201 million.
Schedule of budgeted administered cash flows
The schedule shows the estimated cash receipts and payments administered by
TEQSA on behalf of the Government.
214
TEQSA Budget Statements
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
2014–15
Estimated
actual
$'000
EXPENSES
Employee benefits
Suppliers
Depreciation and amortisation
Total expenses
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
10,232
5,439
1,654
17,325
8,620
2,904
1,075
12,599
6,862
2,153
1,019
10,034
6,682
2,337
1,180
10,199
6,875
2,207
821
9,903
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Total own-source revenue
15
15
15
15
15
15
15
15
15
15
Gains
Other
Total gains
48
48
48
48
48
48
48
48
48
48
Total own-source income
63
63
63
63
63
Net cost of/(contribution by) services
17,262
12,536
9,971
10,136
9,840
Revenue from Government
Surplus/(deficit) attributable to the
Australian Government
15,608
(1,654)
11,461
(1,075)
8,952
(1,019)
8,956
(1,180)
9,019
(821)
Total comprehensive income/(loss)
(1,654)
(1,075)
(1,019)
(1,180)
(821)
Total comprehensive income/(loss)
attributable to the Australian Government
(1,654)
(1,075)
(1,019)
(1,180)
(821)
2015–16
$'000
2016–17
$'000
2017–18
$'000
2018–19
$'000
Note: Impact of net cash appropriation arrangements
2014–15
$'000
Total comprehensive income/(loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations.
less depreciation/amortisation expenses
previously funded through revenue
appropriations (a)
Total comprehensive income/(loss) - as
per the statement of comprehensive
income
-
-
-
-
1,654
1,075
1,019
1,180
821
(1,654)
(1,075)
(1,019)
(1,180)
(821)
(a)
From 2010–11, the Government introduced net cash appropriation arrangements where Bill 1 revenue
appropriations for the depreciation/amortisation expenses of non-corporate Commonwealth entities
(and select corporate Commonwealth entities) were replaced with a separate capital budget (the
Departmental Capital Budget, or DCB) provided through Bill 1 equity appropriations. For information
regarding DCBs, please refer to Table 3.2.5 Departmental Capital Budget Statement.
Prepared on Australian Accounting Standards basis.
215
TEQSA Budget Statements
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
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
173
5,286
173
5,171
173
4,990
173
4,820
160
4,833
Total financial assets
5,459
5,344
5,163
4,993
4,993
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Other non-financial assets
1,921
679
1,012
281
1,640
659
1,105
257
1,360
608
1,283
223
1,128
515
1,297
203
928
557
1,509
203
Total non-financial assets
3,893
3,661
3,474
3,143
3,197
Total assets
9,352
9,005
8,637
8,136
8,190
LIABILITIES
Payables
Suppliers
Other payables
169
1,548
159
1,519
146
1,417
139
1,234
139
1,234
Total payables
1,717
1,678
1,563
1,373
1,373
Provisions
Employee provisions
Other provisions
2,535
398
2,435
398
2,335
398
2,335
398
2,335
398
Total provisions
2,933
2,833
2,733
2,733
2,733
Total liabilities
4,650
4,511
4,296
4,106
4,106
Net assets
4,702
4,494
4,341
4,030
4,084
11,334
6
(7,310)
4,030
4,030
12,209
6
(8,131)
4,084
4,084
Assets held for sale
Liabilities included in disposal groups
held for sale
EQUITY*
Parent entity interest
Contributed equity
8,732
9,599
10,465
Reserves
6
6
6
Retained surplus (accumulated deficit)
(4,036)
(5,111)
(6,130)
Total parent entity interest
4,702
4,494
4,341
Total Equity
4,702
4,494
4,341
*
'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
216
TEQSA Budget Statements
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 Contributed
reserves
equity/
capital
$'000
$'000
Total
equity
$'000
Opening balance as at 1 July 2015
Balance carried forward from previous period
(4,036)
6
-
8,732
4,702
Adjusted opening balance
(4,036)
6
-
8,732
4,702
Comprehensive income
Other comprehensive income
Surplus/(deficit) for the period
(1,075)
-
-
-
(1,075)
Total comprehensive income
(1,075)
-
-
-
(1,075)
-
-
-
(1,075)
-
-
867
867
of which:
Attributable to the Australian Government
(1,075)
Transactions with owners
Contributions by owners
Departmental Capital Budget (DCB)
Sub-total transactions with owners
Transfers between equity
Transfers between equity components
Estimated closing balance as at 30 June
(5,111)
2016
Closing balance attributable to the
(5,111)
Australian Government
Prepared on Australian Accounting Standards basis.
217
867
867
-
6
-
9,599
4,494
6
-
9,599
4,494
TEQSA Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows
(for the period ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Appropriations
Sale of goods and rendering of services
Net GST received
Total cash received
Cash used
Employees
Suppliers
Total cash used
Net cash from/(used by) operating
activities
INVESTING ACTIVITIES
Cash received
Other
Total cash received
Cash used
Purchase of property, plant and
equipment
Total cash used
Net cash from/(used by) investing
activities
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Cash used
Other
Total cash used
Net cash from/(used by) financing
activities
Net increase/(decrease) in cash held
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
15,608
11,461
8,952
8,956
9,019
63
63
63
63
15
462
368
254
255
253
16,133
11,892
9,269
9,274
9,287
9,896
6,237
8,057
3,835
6,300
2,969
6,138
3,136
6,198
3,102
16,133
11,892
9,269
9,274
9,300
-
-
-
-
(13)
-
-
-
-
-
-
-
-
-
-
893
867
866
869
875
893
867
866
869
875
(893)
(867)
(866)
(869)
(875)
893
893
867
867
866
866
869
869
875
875
-
-
-
-
-
893
867
866
869
875
-
-
-
-
173
173
173
173
173
173
173
160
Cash and cash equivalents at the
173
beginning of the reporting period
Cash and cash equivalents at the end
173
of the reporting period
Prepared on Australian Accounting Standards basis.
218
(13)
TEQSA Budget Statements
Table 3.2.5: Departmental capital budget statement
2014–15
Estimated
actual
$'000
NEW CAPITAL APPROPRIATIONS
Capital budget - Bill 1 (DCB)
Equity injections - Bill 2
Total new capital appropriations
Provided for:
Purchase of non-financial assets
Total Items
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations (a)
Funded by capital appropriation - DCB (b)
TOTAL
RECONCILIATION OF CASH USED TO
ACQUIRE ASSETS TO ASSET
MOVEMENT TABLE
Total purchases
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
893
-
867
-
866
-
869
-
875
-
893
867
866
869
875
893
867
866
869
875
893
867
866
869
875
-
-
-
-
-
893
867
866
869
875
893
867
866
869
875
893
867
866
869
875
Total cash used to acquire assets
893
867
866
869
875
(a) Includes both current Bill 2 and prior Act 2/4/6 appropriations and special capital appropriations.
(b) Does not include annual finance lease costs. Includes purchases from current and previous years’
Departmental Capital Budgets (DCBs).
Prepared on Australian Accounting Standards basis.
219
TEQSA Budget Statements
Table 3.2.6: Statement of asset movements (2015–16)
Buildings
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
Opening net book balance
Capital asset additions
Estimated expenditure on new or
replacement assets
By purchase - appropriation equity (a)
By purchase - appropriation ordinary
annual services (b)
Total additions
Other movements
Depreciation/amortisation expense
Disposals (c)
From disposal of entities or operations
(including restructuring)
Other
2,586
(665)
Other property,
plant and
equipment
$'000
969
(290)
Computer
software and
intangibles
$'000
1,307
(295)
Total
$'000
4,862
(1,250)
1,921
679
1,012
3,612
-
-
-
-
50
149
668
867
50
149
668
867
(331)
(169)
(575)
(1,075)
(331)
(169)
(575)
(1,075)
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
2,636
Closing net book balance
1,640
(996)
1,118
(459)
659
1,975
(870)
1,105
5,729
(2,325)
3,404
(a) ‘Appropriation equity’ refers to equity injections appropriations provided through Appropriation Bill
(No. 2) 2015–16, including CDABs.
(b) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1)
2015–16 for depreciation/amortisation expenses, DCBs or other operational expenses.
(c) Net proceeds may be returned to the OPA.
Prepared on Australian Accounting Standards basis.
220
TEQSA Budget Statements
Table 3.2.7: Schedule of budgeted income and expenses administered on
behalf of Government (for the period ended 30 June)
2014–15
Estimated
actual
$'000
EXPENSES
Total expenses administered on behalf of
Government
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
-
-
-
-
-
4,062
4,201
4,201
4,201
4,201
Total non-taxation revenue
4,062
4,201
4,201
4,201
4,201
Total own-source revenue administered
on behalf of Government
4,062
4,201
4,201
4,201
4,201
Total own-sourced income administered
on behalf of Government
4,062
4,201
4,201
4,201
4,201
(4,062)
(4,201)
(4,201)
(4,201)
(4,201)
4,062
4,201
4,201
4,201
4,201
4,062
4,201
4,201
4,201
4,201
Total comprehensive income/(loss)
4,062
Prepared on Australian Accounting Standards basis.
4,201
4,201
4,201
4,201
Sale of goods and rendering of services
Net cost of/(contribution by) services
Surplus/(deficit) before income tax
Income tax expense
Surplus/(Deficit) after income tax
221
TEQSA Budget Statements
Table 3.2.8: Schedule of budgeted assets and liabilities administered on
behalf of Government (as at 30 June)
All administered revenue is returned to the Consolidated Revenue Fund. Therefore
TEQSA does not have any administered assets or liabilities and for this reason table
3.2.8 is not presented.
Table 3.2.9: Schedule of Budgeted Administered Cash Flows
(for the period ended 30 June)
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of services
Cash from Official Public Account
Total cash received
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
4,462
(200)
4,601
(200)
4,601
(200)
4,601
(200)
4,601
(200)
4,262
4,401
4,401
4,401
4,401
-
-
-
-
-
4,401
4,401
4,401
4,401
4,401
4,401
4,401
4,401
200
200
200
200
200
200
200
200
Cash used
Total cash used
Net cash from/(used by) operating
4,262
activities
Net increase/(decrease) in cash held
4,262
Cash and cash equivalents at beginning of
reporting period
Cash from Official Public Account for:
- Appropriations
200
Total cash from Official Public Account
200
Cash to Official Public Account for:
- Appropriations
(4,462)
Total cash to Official Public Account
(4,462)
Cash and cash equivalents at end of
reporting period
Prepared on Australian Accounting Standards basis.
222
(4,601)
(4,601)
-
(4,601)
(4,601)
-
(4,601)
(4,601)
-
(4,601)
(4,601)
-
TEQSA Budget Statements
Table 3.2.10: Administered Capital Budget Statement
TEQSA does not have any administered capital budget therefore table 3.2.10 is not
presented.
Table 3.2.11: Statement of Administered Asset Movements (2015–16)
TEQSA does not have any administered assets therefore table 3.2.11 is not presented.
3.2.4 Notes to the Financial Statements
The statements have been prepared:

on accrual accounting basis

in compliance with Australian Accounting Standards and Australian Equivalents
to International Financial Reporting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board

having regard to Statements of Accounting Concepts.
Departmental revenue from Government
Revenue from Government represents the purchase of programmes from TEQSA by
the Government.
Departmental own source revenue
Revenue from the sale of goods and services is recognised upon the delivery of the
goods and services to the customers.
Departmental expenses – employee benefits
This item represents payments and entitlements owed to employees for their services
rendered in the financial year.
Departmental expenses – suppliers
This item represents payments to suppliers for goods and services.
Departmental expenses – depreciation and amortisation
Property, plant and equipment assets are written off to their estimated residual values
over their estimated useful lives to TEQSA using the straight-line method of
depreciation. Forward estimates of depreciation expense are made using forecasts of
net capital acquisitions over the forward years.
Departmental assets – financial assets – cash
Cash includes notes and coins held and deposits at call with a bank or financial
institution.
223
TEQSA Budget Statements
Departmental assets – financial assets – receivables
Receivables represent amounts owing to TEQSA for cash reserves held in the Official
Public Account and prepayments.
Departmental assets – non-financial assets
These items represent future economic benefits that TEQSA will consume in producing
outputs.
Following initial recognition at cost, property, plant and equipment are carried at fair
value less accumulated depreciation. Valuations are conducted with sufficient
frequency to ensure that the carrying amount does not differ materially from the
assets’ fair value and reporting date.
Departmental liabilities – provisions – employees
Provision has been made for TEQSA’s liability for employee entitlements arising from
services rendered by employees to date. This liability encompasses wages and salaries
that are yet to be paid, annual leave and long service leave. No provision is made for
sick leave.
Employee entitlements payable are measured as the present value of the estimated
future cash outflows to be made in respect of services provided by employees up to the
reporting date. Liabilities expected to be settled within 12 months are measured at the
nominal amount.
Departmental liabilities – payables – suppliers
Suppliers are recognised at cost. Liabilities are recognised to the extent that the goods
or services have been received (and irrespective of having being invoiced).
Administered Items
Administered items are those that TEQSA does not control and which are subject to
prescriptive rules or conditions established by legislation or Australian Government
policy, in order to achieve Australian Government outcomes.
Administered revenue is fee revenue from cost recovery arrangements.
224