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 Note 7: Assets and liabilities administered on behalf of Government

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This section analyses assets used to conduct operations and the operating liabilities incurred as a result the Attorney- General's Department does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

7.1 Administered - financial assets 1

7.1A: Cash and cash equivalents

2018
$'000
2017
$'000
Cash on hand or deposit   4
Cash held in special account   8,705
Total cash and cash equivalents   8,705 4
       

7.1B: Loans and receivables

     
Goods and services receivables   346 26,993
       
Advances and loans1, 2      
State and territory governments   101,337
       
Other receivables      
Other   4 28
Personal benefit recoveries 1, 3   1,584
GST receivable from Australian Taxation Office   520 6,743
Total other receivables   524 8,355
Total loans and receivables (gross)   870 136,685
       
Less impairment allowance      
Goods and services   (2) (2)
Personal benefit recoveries 1   (1,266)
Total impairment allowance   (2) (1,268)
Total trade and other receivables (net)   868 135,417
       
Reconciliation of the impairment allowance      
       
Movements in relation to 2018      
  Goods and services
$'000
Personal benefit
recoveries
$'000
  Total
$'000
As at 1 July 2017 2 1,266 1,268
Amounts transferred under restructuring of administrative arrangements (1,266) (1,266)
Total as at 30 June 18 2 - 2
       
  Movements in relation to 2017      
As at 1 July 2016 143 1,290 1,433
Amounts recovered and reversed Increase
(139)
(139)
recognised in net cost of services (2) (24) (26)
Total as at 30 June 2017 2 1,266 1,268

2018
$'000
2017
$'000
Net gains from financial assets    
     
Loans and receivables    
Interest revenue 2,327 2,674
Impairment on financial instruments 2
Impairment of personal benefit recoveries 24
Net gains on loans and receivables 2,327 2,700

Accounting policy

The administered activities of the department are exposed to minimal credit risk as the majority of financial assets are trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of receivables $345,831 (2017: $129,914,063). The department has assessed the risk of default on payment and has allocated $1,585 (2017: $1,268,779) to an impairment allowance account. This amount has been determined following an assessment of invoices greater than 90 days.

1 In accordance with the Administrative Arrangements Orders of 20 December 2017 and 10 May 2018, national security, commonwealth emergency management, natural disaster relief and Australian Government Disaster Recovery Payment programs and functions were transferred to the Department of Home Affairs.

2 Loans are made to State and Territory Governments for periods up to 100 years. No security is required. Principal will be repaid in full by maturity. Interest rates are either fixed or variable. Interest payments are made annually.

3 Recovery action undertaken by the Department of Human Services in respect of payments made under the Australian Government Disaster Recovery Program and Disaster Income Recovery Subsidy.

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7.1C: Investments

   
2018
$'000
2017
$'000
Investments in associates 2,283 (438)
Australian Human Rights Commission 233,032 226,056
High Court of Australia    
Investments in jointly controlled entities    
Law Courts Limited 4 165,901 125,618
Total investments 401,216 351,236

Details of investments

Ownership
Name of entity 2018
%
2017
%
Jointly controlled entities 47.5 47.5
Law Courts Limited    
     
Associates    
Australian Human Rights Commission 100 100
High Court of Australia 100 100

Accounting Policy

Administered investments in associates and jointly controlled entities are not consolidated because their consolidation is relevant only at the Whole of Government level.

Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2018. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at the end of the reporting period.

4 During 2017-18, Law Courts Limited undertook a revaluation of land and buildings. This resulted in an increase in the value of the Commonwealth's investment in Law Courts Limited.

7.2 Administered - non-financial assets 1

7.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

  Buildings
$'000
Leasehold improvements
$'000
Other
property,
plant &
equipment
$'000
Computer
software
$'000
Total
$'000
As at 1 July 2017
Gross book value 11,462 10,336 4,554 26,352
Accumulated depreciation, amortisation and impairment (10,582) (7,306) (3,719) (21,607)
Total as at 1 July 2017 880 3,030 835 4,745
 
Additions
By purchase 1,291 125 1,416
Depreciation and amortisation (880) (1,000) (517) (2,397)
Disposals
From disposal of entities or operations (including restructuring)1 (1,880) (318) (2,198)
Property, plant and equipment (207) (207)
Total as at 30 June 2018 1,291 70 - 1,361
 
Total as at 30 June 2018 represented by
Gross book value 1,291 293 3,323 4,907
Accumulated depreciation, amortisation and impairment (223) (3,323) (3,546)
Total as at 30 June 2018 1,291 70 1,361

1In accordance with the Administrative Arrangements Orders of 20 December 2017 and 10 May 2018, national security, commonwealth emergency management, natural disaster relief and Australian Government Disaster Recovery Payment programs and functions were transferred to the Department of Home Affairs.

The carrying amount of computer software included nil (2017: $0.737m) purchased software and nil (2017: $0.098m) internally developed software. No indicators of impairment were found for land, buildings, other property, plant and equipment and intangibles.

No land, buildings, other property, plant and equipment and intangibles are expected to be sold or disposed of within the next 12 months.

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Revaluations of non-financial assets

Land and buildings
All revaluations were undertaken in accordance with the revaluation policy stated in Note 6.2A. In 2018 no increment or decrement (2017: nil increment) for buildings on freehold land and leasehold improvements were taken to the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

Property, plant and equipment
All revaluations were undertaken in accordance with the revaluation policy stated in Note 6.2A. In 2018 there was a nil increment for property, plant and equipment (2017: nil increment) was credited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

On 30 June 2018, Jones Lang LaSalle conducted the revaluations.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets

Contractual commitments for the acquisition of property, plant, equipment and intangibles of $0.269m are payable within one year (2017: nil).

7.2B: Fair value measurement

  Fair value measurements at the end of the reporting period
  2018
$'000
2017
$'000
Financial assets    
Investments in associates 235,315 225,618
Investments in jointly controlled entities 165,901 125,618
Total financial assets 401,216 351,236
     
Non-financial assets    
Leasehold improvements 1,291 880
Property, plant and equipment 70 3,031
Total non-financial assets 1,361 3,911
Total fair value measurements of assets in the administered schedule of assets and
liabilities 
402,577 355,147

There have been no changes to valuation techniques from the previous reporting period.

7.2C: Other non-financial assets

   
2018
$'000
2017
$'000
Prepayments 642

No indicators of impairment were found for other non-financial assets.

7.3 Administered - payables1

7.3A: Suppliers

   
2018
$'000
2017
$'000
Trade creditors 146 3,254
Accrued payables 4,271 10,306
Operating lease rentals 209
Total suppliers 4,417 13,769

Suppliers expected to be settled in no more than 12 months.
Settlement is usually net 30 days.

7.3B: Grants

State and territory governments 3,185 145
Non-profit organisations 3,791
Overseas 56
Other 5,647
Total grants 3,185 9,639

Grants expected to be settled in no more than 12 months.
Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.

7.3C: Other payables

   
Superannuation 259
Other 95 69
Total other payables 95 328

Other payables expected to be settled in no more than 12 months.
1 In accordance with the Administrative Arrangements Orders of 20 December 2017 and 10 May 2018, national security, commonwealth emergency management, natural disaster relief and Australian Government Disaster Recovery Payment programs and functions were transferred to the Department of Home Affairs.

7.4 Administered - other provisions

7.4A: Makegood provisions

   
Provision for restoration obligations 1,323

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