2014-15 Paes Australian Transaction Reports and Analysis Centre

Australian Transaction Reports and Analysis Centre

Australian Transaction Reports and Analysis Centre

Section 1: Entity overview and resources

1.1Strategic direction

The strategic direction statement for the Australian Transaction Reports and Analysis Centre (AUSTRAC) can be found in the 2014–15 Portfolio Budget Statements. There has been no change to AUSTRAC’s strategic direction as a result of Additional Estimates.

1.2Entity resource statement

The entity resource statement details the resourcing for AUSTRAC at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2014–15 budget year, including variations through Appropriation Bill No.3.

Table 1.1: Entity resource statement—additional estimates for 2014–15 as at Additional Estimates February 2015

Total
Estimate / Proposed / estimate at / Total
as at / Additional / Additional / available
Budget / + / Estimates / = / Estimates / appropriation
2014–15 / 2014–15 / 2014–15 / 2013–14
$’000 / $’000 / $’000 / $’000
ORDINARY ANNUAL
SERVICES(1)
Departmental appropriation
Prior year departmental
appropriation(2) / 13,309 / – / 13,309 / 11,079
Departmental appropriation(3) / 56,855 / 1,150 / 58,005 / 56,023
s 74 retained revenue receipts(4) / 1,557 / 3,357 / 4,914 / 8,028
Total ordinary annual services / 71,721 / 4,507 / 76,228 / 75,130
OTHER SERVICES
Departmental non-operating
Equity injections / – / – / – / 8,565
Total other services / – / – / – / 8,565
Total available annual
appropriations / 71,721 / 4,507 / 76,228 / 83,695
Total net resourcing for entity / 71,721 / 4,507 / 76,228 / 83,695

All figures are GST exclusive.

(1) Appropriation Act (No. 1) 2014–15 and Appropriation Bill (No. 3) 2014–15.

(2) Estimated adjusted balance carried forward from previous year for annual appropriations.

(3) Includes an amount of $3.137m in 2014–15 for the departmental capital budget (seeTable 3.2.5 forfurther details). For accounting purposes this amount has been designated as ‘contributions by owners’.

(4) Estimated retained revenue receipts under section 74 of the Public Governance, Performance and Accountability Act 2013.

1.3Entity measures table

Table 1.2 summarises new government measures taken since the 2014–15 Budget. The table is split into revenue, expense and capital measures, with the affected programme identified.

Table 1.2: Entity 2014–15measures since Budget

2014–15 / 2015–16 / 2016–17 / 2017–18
Programme / $’000 / $’000 / $’000 / $’000
Revenue measures
National Security—additional
counter-terrorism funding / 1.1
Administered revenues / 678 / 5,021 / 6,249 / 6,519
Total revenue measures / 678 / 5,021 / 6,249 / 6,519
Expense measures
Funding for pre-existing measures affecting the public sector / 1.1
Departmental expenses / 216 / – / – / –
National Security—additional
counter-terrorism funding / 1.1
Departmental expenses / 969 / 2,580 / 3,344 / 6,519
Total expense measures / 1,185 / 2,580 / 3,344 / 6,519
Capital measures
National Security—additional
counter-terrorism funding / 1.1
Departmental capital / – / 3,000 / 3,600 / –
Total capital measures / – / 3,000 / 3,600 / –

Prepared on a Government Finance Statistics (fiscal) basis.

1.4Additional estimates and variations

The following tables detail the changes to the resourcing for AUSTRAC at Additional Estimates, by outcome. Table 1.3 details the additional estimates and variations resulting from new measures since the 2014–15 Budget in Appropriation Bills Nos.3 and 4. Table 1.4 details additional estimates or variations through other factors, such as parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2014–15 Budget

Programme / 2014–15 / 2015–16 / 2016–17 / 2017–18
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Increase in estimates (administered)
National Security—additional
counter-terrorism funding / 1.1 / 678 / 5,021 / 6,249 / 6,519
Net impact on estimates
for Outcome 1 (administered) / 678 / 5,021 / 6,249 / 6,519
Increase in estimates (departmental)
Funding for pre-existing measures affecting the public sector / 1.1 / 216 / – / – / –
National Security—additional
counter-terrorism funding / 1.1 / 969 / 5,580 / 6,944 / 6,519
Net impact on estimates
for Outcome 1 (departmental) / 1,185 / 5,580 / 6,944 / 6,519

Table 1.4: Additional estimates and variations to outcomes from other variations

Programme / 2014–15 / 2015–16 / 2016–17 / 2017–18
impacted / $’000 / $’000 / $’000 / $’000
OUTCOME 1
Decrease in estimates (departmental)
Changes in wage and price indices / 1.1 / – / (57) / (58) / (61)
Internet-based network connection services panel arrangement—savings / 1.1 / (35) / (35) / (11) / –
Net impact on estimates
for Outcome 1 (departmental) / (35) / (92) / (69) / (61)

1.5Breakdown of additional estimates by appropriation bill

Table 1.5 details the additional estimates sought for AUSTRAC through Appropriation Bill No.3. AUSTRAC has no additional estimates through Appropriation Bill No.4.

Table 1.5: Appropriation Bill (No. 3) 2014–15

2013–14 / 2014–15 / 2014–15 / Additional / Reduced
Available(1) / Budget / Revised / Estimates / Estimates
$’000 / $’000 / $’000 / $’000 / $’000
DEPARTMENTAL PROGRAMMES
Outcome 1
A financial environment hostile to money laundering, financing of terrorism, major crime and tax evasion through industry regulation and the collection, analysis and dissemination of financial intelligence / 56,023 / 56,855 / 58,005 / 1,185 / (35)
Total departmental / 56,023 / 56,855 / 58,005 / 1,185 / (35)

(1) 2013–14 available appropriation is included to allow a comparison of this year’s appropriation with what was made available for use in the previous year.

Section 2: Revisions to outcomes and planned performance

2.1Outcome and performance information

There are no changes to AUSTRAC’s outcome and performance information as reported in the 2014–15 Portfolio Budget Statements.

Outcome 1

Outcome 1 strategy

There are no changes to the strategy for Outcome 1 as reported in the 2014–15 Portfolio Budget Statements.

Table 2.1: Budgeted expenses for Outcome 1

Outcome 1: A financial environment hostile to money laundering, financing of terrorism, major crime and tax evasion through industry regulation and the collection, analysis and dissemination of financial intelligence / 2014–15
2013–14 / Revised
Actual / estimated
expenses / expenses
$’000 / $’000
Programme 1.1: AUSTRAC
Departmental expenses
Departmental appropriation(1) / 61,218 / 59,782
Expenses not requiring appropriation in the budget year(2) / 6,920 / 7,710
Total for Outcome 1 / 68,138 / 67,492
2013–14 / 2014–15
Average staffing level (number) / 248 / 265

(1) Departmental appropriation combines ‘Ordinary annual services (Appropriation Act No. 1 & Bill No. 3)’ and ‘s 74 retained revenue receipts’.

(2) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and resources received free of charge.

Programme 1.1 expenses

2014–15 / 2015–16 / 2016–17 / 2017–18
2013–14 / Revised / Forward / Forward / Forward
Actual / budget / year 1 / year 2 / year 3
$’000 / $’000 / $’000 / $’000 / $’000
Annual departmental expenses
Departmental item / 61,218 / 59,782 / 55,916 / 56,193 / 59,256
Expenses not requiring appropriation in
the budget year(1) / 6,920 / 7,710 / 8,740 / 7,236 / 6,363
Total programme expenses / 68,138 / 67,492 / 64,656 / 63,429 / 65,619

(1) Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and resources received free of charge.

Section 3: Explanatory tables and budgeted financial statements

3.1Explanatory tables

Estimates of special account flows

AUSTRAC has no special accounts.

3.2Budgeted financial statements

3.2.1Analysis of budgeted financial statements

The overall changes in the income statement primarily reflect the various government decisions and other variations listed in Tables 1.3 and 1.4.

The revised total expenses in 2014–15 are $67.492m, an increase of $4.507m from the estimate of $62.985m in the 2014–15 Portfolio Budget Statements.The increase is due to a $1.150m increase in appropriation and a $3.357m increase in own-resource revenue.As a result, the revised net cost of services in 2014–15 is $62.443m, an increase of $1.150m from the estimate of $61.293m in the 2014–15 Portfolio Budget Statements.

Appropriation revenue in 2014–15 has been revised to $54.868m, an increase of $1.150m from the estimate of $53.718m in the 2014–15 Portfolio Budget Statements.
The increase comprises:

•additional funding of $0.969m from the National Security—additional
counter-terrorism funding expense measure

•additional funding of $0.216m for pre-existing measures affecting the public sector

•less savings of $0.035m from theinternet-based network connection services panel arrangement.

The overall changes to the budgeted departmental balance sheet primarily reflect the update of the 2013–14 actual, which resulted in a revised opening balance for 2014–15.

3.2.2Budgeted financial statements

Departmental

Table 3.2.1: Budgeted departmental comprehensive income statement (showing net cost of services) for the period ended 30 June

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES
Employee benefits / 33,157 / 35,201 / 34,869 / 34,435 / 35,493
Suppliers / 28,221 / 24,716 / 21,182 / 21,893 / 23,898
Depreciation and amortisation / 6,326 / 7,575 / 8,605 / 7,101 / 6,228
Write-down and impairment of assets / 412 / – / – / – / –
Losses from asset sales / 22 / – / – / – / –
Total expenses / 68,138 / 67,492 / 64,656 / 63,429 / 65,619
LESS:
OWN-SOURCE INCOME
Own-source revenue
Other revenue / 8,028 / 4,914 / 1,092 / 718 / 167
Total own-source revenue / 8,028 / 4,914 / 1,092 / 718 / 167
Gains
Other gains / 162 / 135 / 135 / 135 / 135
Total gains / 162 / 135 / 135 / 135 / 135
Total own-source income / 8,190 / 5,049 / 1,227 / 853 / 302
Net cost of (contribution by)
services / 59,948 / 62,443 / 63,429 / 62,576 / 65,317
Revenue from government / 53,142 / 54,868 / 54,824 / 55,475 / 59,089
Surplus (deficit) / (6,806) / (7,575) / (8,605) / (7,101) / (6,228)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent
reclassification to profit or loss
Changes in asset revaluation surplus / 2,639 / – / – / – / –
Total other comprehensive income / 2,639 / – / – / – / –
Total comprehensive income (loss) / (4,167) / (7,575) / (8,605) / (7,101) / (6,228)
Note: Impact of net cash appropriation arrangements
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
Total comprehensive income (loss)
excluding depreciation/amortisation
expenses previously funded through
revenue appropriations / 2,159 / – / – / – / –
Less depreciation/amortisation expenses
previously funded through revenue
appropriations / 6,326 / 7,575 / 8,605 / 7,101 / 6,228
Total comprehensive income (loss)
as per the statement of
comprehensive income / (4,167) / (7,575) / (8,605) / (7,101) / (6,228)

Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
ASSETS
Financial assets
Cash and cash equivalents / 1,714 / 1,714 / 1,714 / 1,714 / 1,714
Trade and other receivables / 14,202 / 14,202 / 14,202 / 14,202 / 14,202
Total financial assets / 15,916 / 15,916 / 15,916 / 15,916 / 15,916
Non-financial assets
Property, plant and equipment / 14,125 / 11,372 / 9,190 / 8,492 / 6,494
Intangibles / 22,284 / 20,599 / 20,290 / 20,611 / 19,540
Other non-financial assets / 2,761 / 2,761 / 2,761 / 2,761 / 2,761
Total non-financial assets / 39,170 / 34,732 / 32,241 / 31,864 / 28,795
Total assets / 55,086 / 50,648 / 48,157 / 47,780 / 44,711
LIABILITIES
Payables
Suppliers / 1,160 / 1,160 / 1,160 / 1,160 / 1,160
Other payables / 6,341 / 6,341 / 6,341 / 6,341 / 6,341
Total payables / 7,501 / 7,501 / 7,501 / 7,501 / 7,501
Provisions
Employee provisions / 9,941 / 9,941 / 9,941 / 9,941 / 9,941
Other provisions / 514 / 514 / 514 / 514 / 514
Total provisions / 10,455 / 10,455 / 10,455 / 10,455 / 10,455
Total liabilities / 17,956 / 17,956 / 17,956 / 17,956 / 17,956
Net assets / 37,130 / 32,692 / 30,201 / 29,824 / 26,755
EQUITY
Parent entity interest
Contributed equity / 56,147 / 59,284 / 65,398 / 72,122 / 75,281
Reserves / 4,083 / 4,083 / 4,083 / 4,083 / 4,083
Retained surplus (accumulated deficit) / (23,100) / (30,675) / (39,280) / (46,381) / (52,609)
Total parent entity interest / 37,130 / 32,692 / 30,201 / 29,824 / 26,755
Total equity / 37,130 / 32,692 / 30,201 / 29,824 / 26,755

Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (budget year 2014–15)

Asset / Contributed
Retained / revaluation / equity/ / Total
earnings / reserve / capital / equity
$’000 / $’000 / $’000 / $’000
Opening balance as at 1 July 2014
Balance carried forward from
previous period / (23,100) / 4,083 / 56,147 / 37,130
Adjustment for changes in
accounting policies / – / – / – / –
Adjusted opening balance / (23,100) / 4,083 / 56,147 / 37,130
Comprehensive income
Surplus (deficit) for the period / (7,575) / – / – / (7,575)
Total comprehensive income / (7,575) / – / – / (7,575)
Of which:
Attributable to the Australian
Government / (7,575) / – / – / (7,575)
Transactions with owners
Contributions by owners
Departmental capital budget / – / – / 3,137 / 3,137
Sub-total transactions with owners / – / – / 3,137 / 3,137
Estimated closing balance
as at 30 June 2015 / (30,675) / 4,083 / 59,284 / 32,692

Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
OPERATING ACTIVITIES
Cash received
Appropriations / 49,433 / 54,868 / 54,824 / 55,475 / 59,089
Sale of goods and rendering of services / 12,435 / 4,914 / 1,092 / 718 / 167
Net GST received / 3,103 / 2,400 / 2,200 / 2,200 / 2,200
Total cash received / 64,971 / 62,182 / 58,116 / 58,393 / 61,456
Cash used
Employees / 33,188 / 35,201 / 34,869 / 34,435 / 35,493
Suppliers / 32,057 / 26,981 / 23,247 / 23,958 / 25,963
Total cash used / 65,245 / 62,182 / 58,116 / 58,393 / 61,456
Net cash from (used by)
operating activities / (274) / – / – / – / –
INVESTING ACTIVITIES
Cash used
Purchase of property, plant,
equipment and intangibles / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
Total cash used / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
Net cash from (used by)
investing activities / (12,887) / (3,137) / (6,114) / (6,724) / (3,159)
FINANCING ACTIVITIES
Cash received
Contributed equity / 12,925 / 3,137 / 6,114 / 6,724 / 3,159
Total cash received / 12,925 / 3,137 / 6,114 / 6,724 / 3,159
Net cash from (used by)
financing activities / 12,925 / 3,137 / 6,114 / 6,724 / 3,159
Net increase (decrease)
in cash held / (236) / – / – / – / –
Cash and cash equivalents at the
beginning of the reporting period / 1,950 / 1,714 / 1,714 / 1,714 / 1,714
Cash and cash equivalents at the
end of the reporting period / 1,714 / 1,714 / 1,714 / 1,714 / 1,714

Prepared on Australian Accounting Standards basis.

Table 3.2.5:Departmental capital budget statement

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
NEW CAPITAL APPROPRIATIONS
Capital budget—Act No. 1 (DCB) / 2,881 / 3,137 / 3,114 / 3,124 / 3,159
Equity injections—Act No. 2 / 8,565 / – / 3,000 / 3,600 / –
Total new capital appropriations / 11,446 / 3,137 / 6,114 / 6,724 / 3,159
Provided for:
Purchase of non-financial assets / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
Total items / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
PURCHASE OF NON-FINANCIAL
ASSETS
Funded by capital appropriations(1) / 10,006 / – / 3,000 / 3,600 / –
Funded by capital appropriation—DCB(2) / 2,881 / 3,137 / 3,114 / 3,124 / 3,159
Total amount spent / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
RECONCILIATION OF CASH
USED TO ACQUIRE ASSETS
TO ASSET MOVEMENT TABLE
Total purchases / 12,887 / 3,137 / 6,114 / 6,724 / 3,159
Total cash used to
acquire assets / 12,887 / 3,137 / 6,114 / 6,724 / 3,159

Consistent with information contained in the statement of asset movements and the budgeted statement of cash flows.

DCB = departmental capital budget.

(1) Includes both current and prior Act 2 and Bills 4 and 6 appropriations and special capital appropriations.

(2) Does not include annual finance lease costs. Includes purchases from current and previous years’ DCBs.

Table 3.2.6: Statement of asset movements (2014–15)

Property, / Computer
plant & / software &
equipment / intangibles / Total
$’000 / $’000 / $’000
As at 1 July 2014
Gross book value / 16,500 / 35,786 / 52,286
Accumulated depreciation/
amortisation and impairment / (2,375) / (13,502) / (15,877)
Opening net book balance / 14,125 / 22,284 / 36,409
CAPITAL ASSET ADDITIONS
Estimated expenditure on
new or replacement assets
By purchase—appropriation
ordinary annual services(1) / 1,136 / 2,001 / 3,137
Total additions / 1,136 / 2,001 / 3,137
OTHER MOVEMENTS
Depreciation/amortisation expense / (3,889) / (3,686) / (7,575)
Total other movements / (3,889) / (3,686) / (7,575)
As at 30 June 2015
Gross book value / 17,636 / 37,787 / 55,423
Accumulated depreciation/
amortisation and impairment / (6,264) / (17,188) / (23,452)
Closing net book balance / 11,372 / 20,599 / 31,971

Prepared on Australian Accounting Standards basis.

(1) ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Act (No.1) 2014–15 and Appropriation Bill (No. 3) 2014–15 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

Administered

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf ofgovernment (for the period ended 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
EXPENSES ADMINISTERED ON
BEHALF OF GOVERNMENT
Other expenses / 134 / – / – / – / –
Total expenses administered
on behalf of government / 134 / – / – / – / –
LESS:
OWN-SOURCE INCOME
Non-taxation revenue
Fees and fines / 94 / 30 / 30 / 30 / 30
Other revenue / 27,953 / 43,523 / 59,859 / 59,611 / 65,375
Total non-taxation revenue / 28,047 / 43,553 / 59,889 / 59,641 / 65,405
Total own-source income
administered on behalf of
government / 28,047 / 43,553 / 59,889 / 59,641 / 65,405
Net cost of (contribution by)
services / (27,913) / (43,553) / (59,889) / (59,641) / (65,405)
Surplus (deficit) / 27,913 / 43,553 / 59,889 / 59,641 / 65,405
Total comprehensive income (loss) / 27,913 / 43,553 / 59,889 / 59,641 / 65,405

Prepared on Australian Accounting Standards basis.

Table3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

AUSTRAC has no assets or liabilities administered on behalf of government.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)

Revised / Forward / Forward / Forward
Actual / budget / estimate / estimate / estimate
2013–14 / 2014–15 / 2015–16 / 2016–17 / 2017–18
$’000 / $’000 / $’000 / $’000 / $’000
OPERATING ACTIVITIES
Cash received
Fines / 94 / 30 / 30 / 30 / 30
Other / 29,594 / 43,523 / 59,859 / 59,611 / 65,375
Total cash received / 29,688 / 43,553 / 59,889 / 59,641 / 65,405
Net cash from (used by)
operating activities / 29,688 / 43,553 / 59,889 / 59,641 / 65,405
Net increase (decrease) in
cash held / 29,688 / 43,553 / 59,889 / 59,641 / 65,405
Cash and cash equivalents at the
beginning of the reporting period / – / – / – / – / –
Cash from Official Public Account for:
Transfers from other entities
(Finance—whole of government) / 667 / – / – / – / –
Cash to Official Public Account for:
Transfers to other entities
(Finance—whole of government) / (30,355) / (43,553) / (59,889) / (59,641) / (65,405)
Cash and cash equivalents at the
end of the reporting period / – / – / – / – / –

Prepared on Australian Accounting Standards basis.

3.2.3Notes to the financial statements

Basis of accounting

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 and other authoritativepronouncements of the Australian Accounting Standards Board.

Departmental

Revenue from government

Appropriations for departmental programmes are recognised as revenue.

Employee expenses

Employee expenses consist of salaries, leave entitlements and superannuation.

Supplier expenses

Supplier expenses consist of consultant and contractor costs, travel expenses andadministrative costs.

Cash

Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Assets and liabilities

Assets and liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are, however, not recognised unless required by an Australian Accounting Standard.

Administered

AUSTRAC continues to recover costs associated with the programme of supervision of regulated entities, regulatory policy development and implementation, and the provision of financial intelligence to counter money laundering and the financing of terrorism.

AUSTRAC continues to collect administered receipts from the issuing of infringement notices under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

1