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4.1 Overview of financial statements

AUDITED FINANCIAL STATEMENTS

The financial statements incorporate our financial statements as well as the schedules relating to items that we administer on behalf of Government.

A comprehensive set of notes to the financial statements is provided as required by the Finance Minister’s Orders, including Note 1: the summary of the significant accounting policies on which the financial statements have been prepared.

The financial statements include a statement by the Chief Executive Officer and the Chief Financial Officer that financial records have been properly maintained and that they give a true and fair view of the matters required by the Finance Minister’s Orders. The Auditor-General provides Customs and Border Protection with an unmodified independent audit report for the financial statements and this report has been included.

AGENCY STATEMENTS

We reported a net operating deficit of $11.8 million, compared with a net operating deficit of $15.5 million last year. This year’s result has been impacted by a number of one-off and technical accounting adjustments resulting from a strategic balance sheet review, an actuarial assessment of employee-related liabilities and an asset revaluation conducted by the Australian Valuation Office. Last year’s result has been re-stated from the previously reported figure in accordance with Australian Accounting Standard AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors. Details of the restatement are provided at Note 1.20 of the financial statements.

Our total operating income for this year was $1,079.6 million, compared to $1,078.9 million in 2007–08. This operating income consisted of:

  • Government appropriations of $1,008.7 million
  • sale of goods and services income of $63.7 million
  • rental income of $1.9 million
  • other revenue of $4.3 million
  • other gains of $1.0 million.

Total income for this year increased marginally by $0.7 million from last year. This increase is primarily due to additional appropriation funding provided for new measures, these being Surveillance in Northern Waters (additional) and Port Security (increased inspection capacity). While there has only been a moderate increase in the level of appropriation funding, the composition of the funding has changed as a result of a range of lapsing/terminating measures as well as through estimate, parameter and efficiency dividend changes.

Our total operating expenses for this year were $1,091.4 million, compared to $1,094.4 million last year. They comprised:

  • employee expenses of $521.5 million
  • supplier expenses of $479.9 million
  • depreciation and amortisation expenses of $82.9 million
  • other expenses of $7.2 million.

Total expenses decreased by $3.0 million. Employee expenses increased by $28.3 million, or 5.7 per cent, and supplier expenses decreased by $35.7 million. The increase in employee benefits was primarily due to the impact of the actuarial assessment undertaken on employee-related provisions. The decrease in supplier expenses comprised a range of areas including consultants, contractors and domestic travel. Depreciation and amortisation increased by $14.1 million due to depreciation expenses associated with additional land, buildings, infrastructure, plant and equipment.

As at 30 June 2009, we held non-financial assets of $473.8 million compared to $425.6 million at 30 June 2008. The rise reflects the impact of the asset revaluation as well as a number of major asset acquisitions including the fit-out of offices and terminal locations, SmartGate (biometrics) and CCTV systems, along with the internal development of software systems, such as the Australian Maritime Identification System (AMIS). 

Total equity is reported as $399.1 million this year compared with $367.3 million in the 2007–08 reporting period. This increase reflects $23.2 million in additional equity provided by the Government for the capital acquisitions as outlined in the 2008–09 Portfolio Budget Statements and Portfolio Additional Estimates Statements, plus an increase in the asset revaluation reserve of $20.4 million. These increases were partially offset by the operating deficit during the year. As noted above, the 2007–08 equity balance has been restated in accordance with Australian Accounting Standard AASB 108.

The level of our income and expenses over a five-year period are outlined in Table 44 and Figure 11. 

 Table 44: Departmental income/expenses

 Figure 11: Departmental income and expenses

ADMINISTERED SCHEDULE

A schedule of administered items is presented with the financial statements disclosing all revenues, expenses, assets, liabilities, cashflows, commitments, contingent assets and liabilities.

 Table 45: Administered revenue

 Figure 12: Administered revenue

 Table 46: Components of administered revenue

Collections of customs duty increased by $205.4 million this year, which was principally due to increases in Textiles, Clothing and Footwear (TCF) and Excise Equivalent Goods (EEG), offset by a decrease in Passenger Motor Vehicle (PMV) collections.

Revenue from the Passenger Movement Charge increased by $82.8 million this year, principally due to the increase in the charge from $38 to $47 per passenger, and a slight increase in the total number of passengers departing the country. 

Import processing and depot charges have decreased by $8.1 million due to the decreased volume of imports as well as variations in the exchange rates.

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