CASA recorded an operating surplus of $12.0 million in 2012-13, compared to a $1.8 million deficit in 2011-12. The difference of $13.8 million reflects the overall result of an increase in income of $12.7 million and a decrease in expenses of $1.1 million. This was mainly due to an increase in funding resulting from higher aviation fuel receipts.
In 2012-13, CASA's operating result was $5.0 million more than the revised estimate as published in the 2013-14 Portfolio Budget Statements. The actual operating surplus was $12.0 million, compared to an estimated surplus of $7.0 million. The variance from the estimate was primarily due to an increase in aviation fuel excise received by CASA.
Table 1 compares the actual audited results for 2012-13 to actual audited results for 2011-12 and to the budget estimates.
|Actual 2012-13 $m||Actual 2011-12 $m||Variance $m||Actual 2012-13 $m||Estimated actuala 2012-13 $m||Variance $m|
a Budget figures are 2012-13 estimated actuals based on the figures published in the 2013-14 Portfolio Budget Statements.
Figure 1 Actual revenue for 2011-12 and actual and budgeted results for 2012-13
Figure 2 Sources of revenue 2012-13
The increase in income in 2012-13 was primarily associated with an increase in aviation fuel excise revenue due to an increase in sales of aviation jet fuel. There was no increase in the aviation fuel excise rate for 2012-13.
Figure 1 shows the change in income from 2011-12 to 2012-13 and compares actual results to budget estimates for 2012-13.
In 2012-13, approximately 66 per cent of CASA's income was from aviation fuel excise (65 per cent in 2011-12) and 23 per cent was from government appropriations (25 per cent in 2011-12).
The remainder was derived from the sale of goods and rendering of services, interest and other minor sundry revenue (see Figure 2).
Total expenses decreased by $1.1 million in 2012-13 compared to 2011-12. This was primarily attributable to a reduction in consulting and contract costs and reduced expenditure on travel and training.
Figure 3 shows the change in expenses from 2011-12 to 2012-13 and compares actual results to budget estimates.
In 2012-13, CASA spent approximately 63 per cent of total expenditure on employee costs (60 per cent in 2011-12) and approximately 29 per cent on suppliers (34 per cent in 2011-12). The remainder largely comprised depreciation and amortisation expense (see Figure 4).
Figure 3 Actual expenses for 2011-12 and actual and budgeted results for 2012-13
Figure 4 Expenditure 2012-13
CASA's cash balance (including short-term investments) at 30 June 2013 was $60.2 million ($51.9 million in 2011-12). The increase in the cash balance was represented by net cash generated from operating activities ($23.0 million), primarily from the increase in aviation fuel receipts, offset by cash used by investing activities ($14.3 million), mainly attributable to purchases of property, plant and equipment and intangibles.
The cash balance provides funding for CASA's capital replacement program, in line with its capital management plan. The cash balance also provides for the estimated future payments to be made in respect of services provided by employees (that is, employee provisions for leave entitlements).
Key indicators of the health of CASA's financial position are its ability to sustain its asset base, pay debts as they fall due in the short term, and maintain prudent levels of long-term liabilities.
The ability of CASA to sustain its asset base is indicated by changes in net assets. The net asset position improved by $10.9 million in 2012-13. This was primarily attributable to an increase in cash assets of $8.4 million due to additional aviation fuel receipts, plus a net asset improvement of $2.8 million due to a reassessment of a provision for a future legal obligation made in 2010-11. Figure 5 shows that CASA maintains a sustainable net assets level in relation to 2012-13 and forward estimates.
Figure 5 Financial position 2009-10 to 2014-15
CASA is budgeting for a breakeven position for 2013-14, with small operating surpluses in the forward years 2013-14, 2014-15 and 2015-16.
CASA's total forecast income for 2013-14 is $183.7 million, derived as follows:
- $42.5 million from government appropriations
- $123.9 million from the aviation industry through the collection of excise revenue on aviation fuel sold for domestic air travel
- $12.0 million from regulatory services provided to the aviation industry
- $2.3 million from the sale of goods and services and other sundry income, including payments in support of international assistance programs for Indonesia and Papua New Guinea
- $3.0 million from interest from investments and cash deposits.
CASA's balance sheet projection shows a steady increase in net assets in the forward years. The organisation's strong financial position indicates its capacity to deal with financial pressures.
CASA's cash and cash equivalents balance, including investments, is budgeted to remain above $50 million in the next four years. In the forward years, net cash increases in 2013-14, 2014-15 and 2015-16. This reflects the expected growth in revenue projections for aviation fuel excise.
Retained surplus is budgeted to remain constant in 2013-14, but is expected to improve in the following years as a result of operating surpluses.