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 2019–20 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 a $3.4m deficit for 2019–20 and will endeavour to maintain a balanced budget under increased uncertainty around excise revenue, in forward years. This is reflective of utilising CASA's reserves in 2019–20 to invest in the design, scope, build and implementation of the digitisation of its regulatory services, the rising demands from new aerodrome infrastructure and airspace management requirements, together with the continued rapid growth and complexity of drones. The implementation of a service delivery transformation program incorporating new technologies and implementing process efficiencies is expected to assist CASA in absorbing some of the increasing demand for services over the forward year period.
CASA is planning a small operating surplus in 2018–19.
CASA is anticipating an operating deficit in 2019–20 of $3.4m. The deficit, which will be covered by utilising CASA reserves, will be driven by the design, scope, build and implementation of the digitisation of regulatory services.
CASA is budgeting for small operating surpluses in the forward years in the face of a decrease of 10.0% annual appropriation from Government and with special appropriation for aviation fuel excise forecast to grow at around 4.0% across forward years.
Depreciation expenditure will 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 4.0% per financial year in 2019–20 and into the forward years.
Chart 3.1: Revenue
Total expenses in 2019–20 are estimated to be $205.9m, an increase of $18.7m when compared to the anticipated outcome for 2018–19. The main movements in the major expense categories are:
- employee expenses are expected to increase by $8.6m for 2019–20 only as CASA engages an additional 41 staff as part of an approved temporary increase in ASL;
- depreciation expenses increasing by $1.8m, reflecting the increase in capital expenditure in 2018–19; and
- supplier expenses are expected to increase by $8.3m as a result of a new measure for future funding arrangements.
Budgeted departmental balance sheet
CASA's net asset (or equity) position for 2019–20 is forecast to decrease by $3.4m compared to 2018–19, consistent with the anticipated operating deficit and projected capital investment.
Chart 3.2 illustrates CASA's budgeted asset profile. Total budgeted assets of $105.1m in 2019–20 represents a decrease of $2.4m from the estimated 2018–19 closing position, primarily due to a reduction in investments.
Chart 3.2: Budgeted Assets for 2019–20
Chart 3.3 illustrates CASA's budgeted liabilities profile. Total budgeted liabilities of $42.1m in 2019–20 represents a planned increase of $1.0m from the estimated 2018–19 closing position, primarily driven by a planned net increase in supplier payables and employee provisions. CASA's primary liability continues to be accrued employee leave entitlements of $31.1m.
Chart 3.3: Budgeted Liabilities for 2019–20