Financial statement reporting format for Service Delivery Statements

Agency level financial statements contained in the Service Delivery Statements are presented on an accounting basis.

Whole-of-Government financial statements prepared in accordance with Australian Accounting Standards AASB1049 Whole-of-Government Financial Reporting will continue to be used in the Government's annual audited Consolidated Financial Report (published as part of the Report on State Finances at the end of each financial year).

Income statement

The income statement details the budgeted revenues and expenses, and estimated operating result of the Budget year, and the previous year's published budget and estimated actuals.

Agency revenues include receipts for services (appropriation funding) by the Government, grants from the Australian Government and own-source revenues such as user charges. Expenses include cash items such as salaries, consumables and grant payments and non-cash items such as depreciation and accruing employee entitlements.

The operating result is determined on an accrual basis. It includes non-cash revenues and expenses and as a result, differs from a cash surplus or deficit. An operating surplus means that revenues earned during the year exceed operating expenses, while an operating deficit means that expenses incurred during the year are greater than operating revenues.

Revenues

Service revenue

The revenues appropriated by the State Government to an agency for the purchase of the delivery of services to the community. 

User charges

Fees charged to specific users of services - for example, TAFE fees and land title search fees.

Grants and other contributions

Includes grants from the Australian Government and other contributions.

Other revenues

Includes interest revenue and other sundry revenues.

Expenses

Employee expenses

Include wages, salaries and accruing leave costs for Government employees.

Supplies and services

Includes consumables and commodities used in the delivery of government services - for example, electricity and lease expenses.

Grants and subsidies

Refer to payments made to community groups, not-for-profit organisations and other bodies external to Government.

Depreciation and amortisation

Represents the cost of using assets, a non-cash cost which reduces the value of the asset over time.

Other expenses

Includes audit fees and sundry expenses.

Balance sheet

The balance sheet shows the estimated assets, liabilities and equity at year end for the Budget year, and the previous year's published budget (adjusted for Machinery of Government changes) and estimated actuals.

Assets are the physical and non-physical items that an agency owns and/or controls and uses over their useful life in the delivery of services. Examples of assets include cash, receivables, property, plant and equipment. Liabilities are amounts owed by the agency, such as payables, interest-bearing liabilities and accrued employee benefits.

Assets and liabilities are classified into 'current' and 'non-current'.

Current assets and liabilities are those which are expected to be used or discharged within the next 12 months.

Non-current assets and liabilities are those which are expected to be held for more than 12 months.

A surplus of assets over liabilities represents the net value of the owner's interest in the agency. The Government, on behalf of the community, holds the ownership rights to Government agencies and bears the associated risks.

Assets

Cash

Cash held at the end of the financial year which reconciles to the statement of cash flows.

Receivables

Amounts owing to the agency from other individuals or organisations.

Other Financial Assets

Represents securities, deposits, shares, derivatives and other financial instruments.

Inventories

Includes consumables on hand - for example, medical equipment and spare parts.

Property, plant and equipment

Consist of physical assets that generally last more than one year - for example, buildings, computer hardware and office equipment.

Intangibles

Non-physical assets - for example, computer software, patents and copyrights.

Liabilities

Payables

Include amounts owed by the agency to other organisations or individuals, other than accrued employee benefits.

Accrued employee benefits

Include accrued wages, annual leave and other employee entitlements.

Interest-bearing liabilities

Include amounts owing on borrowings.

Provisions

Include provisions for claims, restoration and onerous contracts.

Equity

Represents the surplus of assets over liabilities. It represents the value of the Government's net interest in an agency and is the amount remaining after all liabilities or obligations have been met. This measure shows that the Government, on behalf of the community, holds ownership interest in Government agencies and bears the associated ownership risk.

Cash flow statement

The cash flow statement shows cash inflows and outflows during the Budget year and the previous year's published budget (adjusted for Machinery of Government changes) and estimated actuals. The flows of cash are categorised into operating, investing and financing activities.

Cash flows from operating activities

Operating activities are activities that relate to the provision of services. As operating receipts include payment for non-cash expenses, agencies generally show a cash surplus on operations.

Cash flows from investing activities

Investing activities are those activities that relate to the acquisition and disposal of property, plant and equipment and other capital items, as well as payments and redemptions of investments and loans.

Cash flows from financing activities

Financing activities include borrowings and arrangements in the nature of borrowings such as finance leases undertaken by the agency, and equity adjustments in the agency made by the Government.

Cash at end of financial year

Represents the cash held by an agency at the end of the financial year - for example, in bank accounts. It reconciles to the cash showing in the balance sheet.

Statement of Changes in Equity

The Statement of Changes in Equity illustrates how the agency's equity is impacted by prior year adjustments, asset revaluations, the operating result, equity injections and withdrawals and Machinery of Government changes.