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CASA Annual Report 2002 03 Part 1: Overview of CASA

Part 1: Overview of CASA

Financial performance in 2002–03

This section contains an overview of CASA's financial performance for 2002–03.

Overall result

The net operating deficit for the financial year was $2.466 million, excluding Capital Use Charge, which was below the approved deficit of $3.442 million excluding Capital Use Charge. This is a particularly good outcome, given the following variations from the revised Additional Estimate 2002–03 budget:

  • a further reduction of $0.316 million in fuel excise revenue
  • the requirement to make a one-off additional contribution of $2.342 million to maintain a 100 per cent assets-to-liabilities ratio for CASA staff in the AvSuper defined benefits superannuation scheme.

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Operating expenses

Staffing numbers increased over the year, with an average staffing level of 699 in 2002–03 compared with 673 in 2001–02. Employee expenses were within the budget, before adjustment for the one-off payment of $2.342 million to AvSuper.

Operating expenses (particularly international and domestic travel, and administration) were significantly reduced by a management savings exercise initiated to compensate for the large fall in aviation fuel excise revenue. Savings were made by reducing the number of planned overseas visits, imposing domestic travel restrictions and reducing the number of issues of the Flight Safety Australia magazine.

Project expenses were under budget after applying a new capitalisation policy to the major project, the CASA Improvement Program. Minor projects suffered some slippage during the year.

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Operating revenue

The operating revenue for CASA in 2002–03 was $104.2 million from the following sources.

Budget funding under Appropriations Act No.1 of $98.8 million was paid to CASA during 2002–03. This disaggregated as follows:

Table 4: Appropriations

Revenue source 2001–02
$m
2002–03
$m

Appropriations

43.58

44.84

Special Appropriations

55.53

53.96

Total

99.11

98.80

Funding from aviation excise collections is appropriated to CASA under the Aviation Fuel Revenue (Special Appropriation) Act 1998. During the year, domestic aviation fuel consumption declined by 8.5 per cent, requiring CASA to revise the special appropriation budget downwards from $59.0 million to $54.2 million at Additional Estimates. The ongoing introduction of more fuel-efficient new generation aircraft better suited to the routes and passenger volumes has contributed to the decline in consumption of aviation fuel.

Under the schedule of fees in the Civil Aviation (Fees) Regulations, CASA charges fees directly to the aviation industry for regulatory services rendered. Revenue received in 2002–03 was $3.459 million compared to $3.416 million in 2001–02.

Other miscellaneous revenue totalled $1.931 million in 2002–03 compared to $2.290 million in 2001–02, due to:

  • a reduction of investment funds due to expanding capital projects and financing an operating deficit for two consecutive years and a decrease in interest revenue resulting from reductions in the interest rates
  • a decrease in other sundry revenue from $0.824 million in 2001–02 to $0.661 million 2002–03.

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Costs of outputs

The annual budget appropriation received from the Government for each of CASA's four outputs, and the actual cost of providing those outputs in 2002–03, are shown in Figure 9.

Figure 9: Costs of outputs

Figure 9: Costs of outputs

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