Australian Maritime Safety Authority
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 Budget year 2011-12. 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.
3.1.1: Movement of administered funds between years
AMSA does not receive administered funds.
3.1.2: Special Accounts
AMSA does not maintain Special Accounts.
3.1.3: Australian Government Indigenous Expenditure
The 2011-12 Australian Government Indigenous Statement is not applicable because AMSA has no indigenous specific expenses.
3.2.1: Differences in agency resourcing and financial statements
AMSA does not have any significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards (AAS) and Government Finance Statistics (GFS).
3.2.2: Analysis of budgeted financial statements
AMSA is budgeting for a zero operating result in 2011-12. Previous to 2010-11, deficits were reported as a result of phasing in of the Australian Government's National Maritime Emergency Response Arrangements (2006-07 to 2008-09) and the recognition of costs in relation to the Pacific Adventurer marine pollution incident (2009-10).
AMSA's main revenue source is from government funding. This includes levies collected from the shipping industry and appropriated under Section 48 of the AMSA Act as Special Appropriations to fund AMSA's ship safety and environment protection functions, Community Service Obligation funding for search and rescue functions and response and the funding of any new budget measures. AMSA has two lesser revenue sources from fees and charges and from interest. In 2011-12, AMSA estimates receiving total revenue of $158.4m compared to $149.3m in the 2010-11 Budget, as summarised in the table below.
AMSA revenue comparison
|AMSA Revenue Sources||2011-12
|Special Appropriations of levies collected from the shipping industry||$92.3m||$87.5m|
|Annual departmental appropriation for search and rescue functions||$42.1m||$41.2m|
|Annual departmental appropriation for search and rescue response||$10.3m||$10.1m|
|Revenue from budget measures||$5.0m||$5.9m|
|Revenue from independent sources (fees and charges and interest)||$8.7m||$4.6m|
Revenue from government: levy funding
AMSA has three levies corresponding to its ship safety and environment functions:
- Regulatory Functions Levy funds the regulation cost of ship safety and environment protection;
- Marine Navigation Levy funds the national network of marine aids to navigation; and
- Protection of the Sea Levy funds activities related to pollution and emergency response services.
In 2011-12, levy revenue is estimated to total $92.3m, which is $4.7m higher than 2010-11 Budget, primarily based on the 2010-11 trend of levies revenue growth from increased shipping activity driven by continued strong demand for commodity exports. The negative impact on 2010-11 levy revenue from the Queensland floods and cyclone Yasi are not anticipated to persist into 2011-12. The impact from the recent earthquake and tsunami in Japan are not factored into the 2011-12 levy revenue projections and forward estimates as the extent of the impact on the Australian commodities industry remains unclear. Levy revenue includes the continuation of the 3 cents per net registered tonne increase to the Protection of the Sea Levy to cover the cost of the Pacific Adventurer incident. The Protection of the Sea Levy will revert back to 11.25 cents per net registered tonne after all the costs have been recovered, estimated to be towards the end of 2013.
Revenue from government
AMSA receives an annual departmental appropriation for providing a search and rescue co-ordination service to the community, which is estimated at $42.1m in 2011-12. AMSA also receives an annual departmental appropriation to cover the cost of search and rescue incidents (mainly aircraft/helicopter hire) estimated at $10.3m in 2011-12. For 2011-12 AMSA has also received revenue of $4.5m to fund the new budget measure ‘National Transport Regulators - additional funding’. This measure spans two financial years ($4.5m in 2011-12 and $5.6m in 2012-13) and will complete the work started under the terminating measure ‘Implementation of National Transport Regulators’. A further $0.8m has been provided to AMSA as payment from related entities (Infrastructure) in relation to the continued provision of transport safety assistance to Indonesia. There has also been an increase to the efficiency dividend applicable to AMSA, this has decreased revenue in the 2011-12 budget year by $0.3m.
Appropriation comparison between 2011-12 and 2010-11
The table below compares the appropriations between the 2011-12 and 2010-11 Budgets:
|Appropriation Bill No. 1|
|Australian Search and Rescue Function||42,128||41,209|
|Australian Search and Rescue Response||10,311||10,078|
|National Transport Regulators - establishment||-||5,148|
|National Transport Regulators - additional funding||4,448||-|
|Efficiency dividend - increase in the rate||(265)||-|
|Marine Navigation Levy||27,083||25,212|
|Regulatory Functions Levy||34,834||33,989|
|Protection of the Sea Levy||29,632||28,332|
Revenue from independent sources: sale of goods and services and interest
AMSA may make determinations fixing charges under section 47 of the AMSA Act, which requires these fees and charges to be reasonably related to the costs incurred by AMSA in their provision. AMSA has a range of services with charges based on the average cost of delivering a specific service or the time taken to deliver the service multiplied by a standard hourly rate and may include waiting time, travelling expenses and cancellation fees. These services include:
- approvals, certificates and determinations for ships, cargo, and ships' safety equipment;
- activities involved with issuing certificates of competency to seafarers, including conducting oral practical examinations for navigating and engineering officers; and
- assessing sea time prerequisites for qualifications; issuing and renewing coastal pilot licences; and services provided by the Australian Shipping Registration Office.
In 2011-12, AMSA's total estimated revenue from independent sources is $8.7m ($4.6m in 2010-11). This includes the sale of goods and services amounting to $7.0m ($3.5m in 2010-11) and interest of $1.8m ($1.0m in 2010-11). These increases are primarily due to an increase in fee-for-service revenue relating to marine services and ship registration of $0.8m and earning from higher interest rates and greater funds under investment of $0.7m. Also included is funding for the National Maritime Safety Committee function from contributions made by the States and Northern Territory of $2.0m.
Resources for AMSA's output groups
Chart 3.2.1 shows the resources allocated to AMSA's two subprograms since 2005-06:
Chart 3.2.1: Trends in resources for AMSA Subprograms
Chart 3.2.2 shows the overall trend in AMSA’s revenue and expenses since 2005-06. The rise in revenue and expenses since 2005-06 results from three major events. The first is the Budget measures in 2004-05 and 2005-06 allocating additional funding to enhance AMSA's search and rescue capability. The second is the rise in levy revenue required to fully recover the costs of AMSA’s functions in providing emergency response services under the National Maritime Emergency Response Arrangements over 2006-07 to 2009-10 and the third is a further increase to the Protection of the Sea Levy in 2009-10 required to recover the cost of reimbursing claims from the Pacific Adventurer incident. AMSA’s deficit in 2006-07 to 2009-10 was to support the proposed staged increase in the levy revenue required to fund the National Maritime Emergency Response Arrangements and cost of Pacific Adventurer incident. AMSA has drawn upon its accumulated surplus and cash reserves to cover the deficit years. Revenue in 2010-11 includes a budget measure for the ‘Implementation of National Transport Regulators’ and revenue in 2011-12 includes a new budget measure ‘National Transport Regulators - additional funding’. For the 2012-13 financial year, AMSA is budgeting for a surplus of $6.0 million reflecting the additional levy revenue from the increase in the Protection of the Sea Levy in relation to the costs of the Pacific Adventurer incident for those incident costs that were recognised in the 2009-10 financial year. There is no budgeted surplus for 2010-11 as the additional levy revenue will be used to fund normal pollution and emergency response services.
Chart 3.2.2: AMSA revenue and expenses
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)
Table 3.2.3: Departmental statement of changes in equity - summary of movement (Budget year 2011-12)
3.2.4: Notes to the financial statements
1. 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 Finance Minister's Orders;
- Australian Accounting Standards;
- other authoritative pronouncements of the Australian Accounting Standards Board; and
- the Consensus Views of the Urgent Issues Group.
2. Departmental and administered items
Agency assets, liabilities, revenues and expenses are those items that are controlled by AMSA that are used in producing its outcomes and include:
- infrastructure, plant and equipment used in providing goods and services;
- liabilities for employee entitlements;
- revenue from appropriations or independent sources in payment for outcomes; and
- employee, supplier and depreciation expenses incurred in providing agency outcomes.
AMSA has no administered items.
3. Departmental expenses - employees
Payments and net increases in entitlements to employees for services rendered in the financial year.
4. Departmental expenses - suppliers
Payments to suppliers for goods and services used in providing agency outcomes.
5. 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 to AMSA, using the straight-line calculation method.
6. Departmental revenue
Revenue from government represents the purchase of outcomes from AMSA by the government and is recognised to the extent that it has been received into AMSA's bank account.
Revenue from other sources, representing sales from goods and services, is recognised when:
- the risks and rewards of ownership have been transferred to the buyer;
- the seller retains no managerial involvement nor effective control over the goods;
- the revenue and transaction costs incurred can be reliably measured; and
- it is probable that the economic benefits associated with the transaction will flow to the entity.
7. Departmental assets - financial assets
The primary financial asset relates to receivables. Financial assets are used to fund AMSA's capital program, employee entitlements, creditors and to provide working capital.
8. Departmental assets - non-financial assets
These items represent future economic benefits that AMSA will consume in producing outcomes. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.
9. Departmental liabilities - provisions and payables
Provision has been made for AMSA's liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave.
Provision has also been made for unpaid supplier expenses as at balance date.