An analysis of the Workplace Authority’s budgeted financial statements is provided below.

Analysis of budgeted financial statements

The Workplace Authority was created from 1 July 2007 and the budgeted financial statements which follow take effect from that date.

Budgeted financial statements

Departmental financial statements

Budgeted departmental income statement

WPA is budgeting to receive $130.145 in income in 2007-08 and plans to have expense of the same amount resulting in a balanced operating result in 2007-08.

Table 3.7:  Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June)

The Workplace Authority has no budgeted administered income and expenses.

Table 3.8:  Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June)

The Workplace Authority has no budgeted administered assets and liabilities.

Table 3.9:  Schedule of budgeted administered cash flows
(for the period ended 30 June)

The Workplace Authority has no budgeted administered cash flows.

Table 3.10:  Schedule of administered capital budget

The Workplace Authority has no administered capital budget.

Table 3.11:  Schedule of administered property, plant, equipment and intangibles — summary of movement (Budget year 2007‑08)

The Workplace Authority has no administered property, plant, equipment or intangibles.

Notes to the financial statements

Accounting Policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance and Deregulation.

The statements have been prepared:

• on an accrual accounting basis;
• in compliance with Australian Accounting Standards XE "Australian Accounting Standards"  and Australian Equivalents to International Financial Reporting Standards XE "Australian Equivalents to International Financial Reporting Standards" (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board XE "Australian Accounting Standards Boards"  and the Consensus Views of the Urgent Issues Group.

Departmental Revenue from Government

Revenue from government represents the purchase of outputs from the Workplace Authority by the government. The changes reflected in the ordinary annual appropriations are a result of those new measures and variations that are explained in Section 1: Agency overview and resources, variations and measures.

Departmental Revenue from Other Sources

Revenue from the sale of goods and services is recognised upon the delivery of the goods or services to customers.

Departmental Expenses – Employees

This item represents payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.

Departmental Expenses – Suppliers

This item represents payments to suppliers for goods and services.

Departmental Expenses – Depreciation and Amortisation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Workplace Authority using, in all cases, the straight-line method of depreciation.

Computing equipment assets are depreciated over their useful lives between three and seven years. Office machines are depreciated over five years (20 per cent). Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease. 

Forward estimates of depreciation expense are made using forecasts of net capital acquisition requirements over the forward years.

Departmental Assets – Financial Assets – Receivables

Receivables represent amounts owing to the Workplace Authority for goods and services it has provided to external parties and cash reserves held in the Official Public Account.

Departmental Assets – Non-Financial Assets

These items represent future economic benefits that the Workplace Authority will consume in producing outputs. Assets are initially recognised at cost (except for assets transferred from DEWR following WPA’s prescription on 1 July 2007). The Workplace Authority annually reassesses and adjusts the values of Land and Buildings (leasehold improvements), Infrastructure, Plant and Equipment.

Land and Buildings, and Infrastructure, Plant and Equipment are initially brought to account at cost, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of the group of similar items which are significant in total).

Computer software, disclosed in the Departmental Balance Sheet as Intangibles, are expensed in the year of acquisition except for purchases or internally developed software costing more than $200,000 which are capitalised at cost.

Departmental Liabilities – Provisions – Employees

Provision has been made for the Workplace Authority’s liability for employee entitlements arising from services rendered by employees to balance date. This liability encompasses unpaid wages and salaries, annual and long service leave. No provision is made for sick leave.

The liability for leave expected to be settled within 12 months has been measured at the nominal amount.

Other employee entitlements payable later than one year have been estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements have been taken into account.

Departmental Liabilities – Payables – Suppliers

This item mainly comprises trade creditors and operating lease rentals.