Budget Paper 4 - Budget Estimates

Milk Authority of the ACT

Objectives

The objectives of the Milk Authority of the ACT were altered by legislative amendments to the Milk Authority Act 1971, which was passed by the Legislative Assembly on 16 February 1999. The effect of the amendments, among other things, was to transfer the discharge of regulatory responsibility to the Department of Urban Services (home vendor zones and licensing) and the Chief Minister’s Department (price controls).

The objectives of the authority consistent with the Milk Authority Act 1971 are to engage in the supply and sale of milk in the territory, and to administer contracts between the Authority and industry participants.

1999-2000 Highlights

Strategic and operational issues to be pursued in 1999-2000 include:

maintaining stability and quality of milk supply;
ensuring a market for local suppliers of raw milk; and
maintaining community awareness of Canberra Milk trade marks by contractual arrangements.

Budget Summary	1999-2000 Planned $’000
Revenues
Sales	14 542
Other	50
Operating Expenditure
Cost of goods sold	13 766
Other	529
Other Outgoings
Dividend to Government	228

Milk Authority of the ACT
Operating Statement

1998-99		1998-99	1999-00		2000-01	2001-02	2002-03
Budget		Est.Outcome	Budget	Var	Estimate	Estimate	Estimate
$'000		$'000	$'000	%	$'000	$'000	$'000
	Revenue
17 225	User Charges - Non ACT Government	15 158	14 542	-4	14 542	14 542	14 542
50	Interest	62	50	-19	50	50	50
17 275	Total Revenue	15 220	14 592	-4	14 592	14 592	14 592
	Expenses
417	Employee Expenses	286	120	-58	120	120	120
49	Superannuation Expenses	42	20	-52	20	20	20
35	Depreciation and Amortisation	26	19	-27	15	15	15
15 127	Cost of Goods Sold	13 950	13 766	-1	13 766	13 766	13 766
1 468	Other Expenses	809	370	-54	374	374	374
17 096	Total Expenses	15 113	14 295	-5	14 295	14 295	14 295
179	Operating Result	107	297	178	297	297	297
571	Accumulated Funds - Start of Period	384	395	3	667	735	804
-50	Amounts transferred to/from Reserves	203	202	..	0	0	0
200	Distributions to Government	200	0	-100	0	0	0
90	Dividend Declared	98	228	133	228	228	228
410	Accumulated Funds - End of Period	395	666	69	735	804	873

Milk Authority of the ACT
Statement Of Financial Position

Budget		Est.Outcome	Planned		Planned	Planned	Planned
as at 30/6/99		as at 30/6/99	as at 30/6/00	Var	as at 30/6/01	as at 30/6/02	as at 30/6/03
$'000		$'000	$'000	%	$'000	$'000	$'000
	Current Assets
1 222	Cash	453	674	49	762	850	938
662	Receivables	563	559	-1	559	559	559
10	Other	5	5	-	5	5	5
1 893	Total Current Assets	1 020	1 237	21	1 325	1 413	1 501
	Non Current Assets
275	Property, Plant and Equipment	266	247	-7	232	217	202
7	Intangibles	7	7	-	7	7	7
282	Total Non Current Assets	273	254	-7	239	224	209
2 175	TOTAL ASSETS	1 293	1 491	15	1 564	1 637	1 710
	Current Liabilities
1 387	Creditors	568	563	-1	563	563	563
34	Employee Entitlements	14	14	-	14	14	14
43	Other Provisions	98	228	133	228	228	228
1 464	Total Current Liabilities	680	805	18	805	805	805
	Non Current Liabilities
32	Employee Entitlements	18	20	11	24	28	32
32	Total Non Current Liabilities	18	20	11	24	28	32
1 496	TOTAL LIABILITIES	698	825	18	829	833	837
680	NET ASSETS	596	667	12	736	805	874
	REPRESENTED BY FUNDS EMPLOYED
410	Accumulated Funds	395	666	69	735	804	873
271	Reserves	200	0	-100	0	0	0
681	TOTAL FUNDS EMPLOYED	596	667	12	736	805	874

Milk Authority of the ACT
Cashflow Statement

1998-99		1998-99	1999-00		2000-01	2001-02	2002-03
Budget		Est.Outcome	Budget	Var	Estimate	Estimate	Estimate
$'000		$'000	$'000	%	$'000	$'000	$'000
1 200	CASH AT BEGINNING OF REPORTING PERIOD	232	452	95	674	762	850
	CASH FLOWS FROM OPERATING ACTIVITIES
	Receipts
16 596	User Charges	15 078	14 546	-4	14 542	14 542	14 542
55	Interest Received	62	50	-19	50	50	50
16 651	Operating Receipts	15 140	14 596	-4	14 592	14 592	14 592
	Payments
445	Related to Employees	373	138	-63	136	136	136
15 887	Other	14 276	14 138	-1	14 140	14 140	14 140
16 332	Operating Payments	14 649	14 276	-3	14 276	14 276	14 276
319	NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES	491	320	-35	316	316	316
	CASH FLOWS FROM INVESTING ACTIVITIES
	Receipts
0	Proceeds from Sale of Property, Plant & Equipment	35	0	-100	0	0	0
0	Investing Receipts	35	0	-100	0	0	0
	Payments
34	Purchase of Property, Plant and Equipment	19	0	-100	0	0	0
34	Investing Payments	19	0	-100	0	0	0
-34	NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES	16	0	-100	0	0	0
	CASH FLOWS FROM FINANCING ACTIVITIES
	Payments
200	Distributions to Government	200	0	-100	0	0	0
63	Dividends to Government	87	98	13	228	228	228
263	Financing Payments	287	98	-66	228	228	228
-263	NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES	-287	-98	66	-228	-228	-228
22	NET INCREASE/(DECREASE) IN CASH HELD	220	222	1	88	88	88
1 222	CASH AT THE END OF THE REPORTING PERIOD	452	674	49	762	850	938

Notes to the Budget Statements

The Milk Authority Act 1971 was reviewed in July 1998 in line with the Government’s obligations under the Competition Principles Agreement. Budget estimates have been prepared on the basis of this review and the subsequent legislative amendments that were passed by the Assembly on 16 February 1999.

Operating Statement

Significant variations are as follows:

user charges - non ACT Government: the decrease of $2.067m in 1998-99 from budget was due to the introduction of competition in the market;
cost of goods sold: the decrease of $1.177m in 1998-99 from original budget reflects lower than anticipated milk sales as a result of competition; and
dividend declared: the increase of $0.131m in 1999-2000 provides for the regulatory functions that have been transferred from the Authority to the Government.

Statement of Financial Position

Significant variations are as follows:

current assets: the decrease in projected cash and receivables in 1998-99 from original Budget is a result of lower than anticipated activity levels; and
current liabilities: the increase in other provisions in 1999-2000 relates to the increase in dividend to be paid to Government.

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