Civil Aviation Safety Authority
Section 3: Budgeted financial statements
Section 3 presents budgeted financial statements which provide a comprehensive snapshot of CASA's finances for the 2018–19 Budget year, including the impact of Budget measures and resourcing on financial statements.
3.1 Budgeted financial statements
3.1.1 Explanatory notes and analysis of budgeted financial statements
Budgeted departmental income statement
CASA is anticipating small operating surpluses for 2018–19 and forward years. This is reflective of the rising demands from the continued growth of new international and low cost carriers, together with the continued rapid growth and complexity of drones. CASA expects to absorb the increasing demand for services over the forward year period through the implementation of a service delivery transformation program incorporating new technologies and implementing process efficiencies.
CASA is planning a small operating surplus in 2017–18.
CASA is planning a small operating surplus in 2018–19. Expenses in 2018–19 are anticipated to increase by $8.3m from the 2017-18 estimated actual. This is primarily driven by higher employee expenses ($5.6m) as a result of increases in accordance with CASA's employee enterprise agreement; a lower average staffing level in 2017–18 due to vacancies; and the new measure for the Management of Drones.
CASA is budgeting for small operating surpluses in the forward years in the face of a small increase of 0.3% annual appropriation from Government and with Special Appropriation for aviation fuel excise forecast to grow at around 3.0% per financial year.
Depreciation expenditure will steadily increase in line with CASA's capital program and employee benefits are expected to continue to increase with pay rises predicted to be included in CASA's next employee enterprise agreement.
Chart 3.1 illustrates CASA's revenue funding. Revenue from special appropriations is planned to increase by 3.0% per financial year in 2018–19 and into the forward years.
Chart 3.1: Revenue
Total expenses in 2018–19 are estimated to be $188.5m, an increase of $8.3m when compared to the anticipated outcome for 2017–18. The main movements in the major expense categories are:
- employee expenses are expected to increase by $5.6m as CASA recruits to its funded staff level and the pay rises in accordance with CASA's employee enterprise agreement
- depreciation expenses increasing by $0.5m, reflecting the increase in capital expenditure in 2017–18
- supplier expenses are expected to increase by $2.2m as a result of new measure for Management of Drones
Budgeted departmental balance sheet
CASA's net asset (or equity) position for 2018–19 is forecast to be largely unchanged with a small increase compared to 2017–18, consistent with the anticipated small operating surplus and projected capital investment.
Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $110.1m in 2018–19 represents a planned decrease of $0.8m from the estimated 2017–18 closing position, primarily due to a net reduction in investments.
Chart 3.2: Budgeted Assets for 2018–19
Chart 3.3 illustrates CASA's budgeted liabilities profile. Total budgeted liabilities of $43.6m in 2018–19 represents a planned decrease of $0.8m from the estimated 2017–18 closing position, primarily driven by a planned net decrease in total payables. CASA's primary liability continues to be accrued employee leave entitlements of $29.3m.
Chart 3.3: Budgeted Liabilities for 2018–19