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Part 4 Financial statements

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Independent Auditor's Report

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Independent auditors report page 2 

Statement by the Chief Executive Officer and Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2012 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, as amended.

Roger Wilkins signatureStephen Lutzes signature

Roger Wilkins
Chief Executive
September 2012
   
Stephen Lutze
Chief Finance Officer
September 2012

 

 

Financial Statements

STATEMENT OF COMPREHENSIVE INCOME for the Attorney-General's Department for the period ended 30 June 2012
    2012 2011
  Notes $'000 $'000
EXPENSES      
Employee benefits 3A
177,910
165,401
Suppliers 3B
81,477
82,070
Depreciation and amortisation 3C
22,429
18,139
Finance costs 3D
37
180
Write-down and impairment of assets 3E
154
188
Other expenses 3F
45
50
Transfer of assets 1 3G,11,33
38,340
-
Total expenses  
320,392
266,028
LESS:    
 
 
 
OWN-SOURCE INCOME    
 
 
 
Own-source revenue    
 
 
 
Sale of goods and rendering of services 4A
36,541
29,096
Interest 4B
-
1
Total own-source revenue  
36,541
29,097
Gains    
 
 
 
Other gains 4C
405
340
Total gains  
405
340
Total own-source income  
36,946
29,437
Net cost of services  
283,446
236,591
Revenue from Government 4D
205,655
218,819
Deficit attributable to the Australian Government  
(77,791)
(17,772)
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus  
(390)
-
Total other comprehensive income  
(390)
-
Total comprehensive loss attributable to the Australian Government 2 33
(78,181)
(17,772)

1 Transfer of the cost of establishing the Personal Property Securities (PPS) register, contact centre and registrar's office from the Attorney-General's Department to Insolvency and Trustee Service Australia (ITSA). Funding for this was provided to the Attorney-General's Department as contributed equity during the current and previous financial years.  The amount of $38,340,110 has been recorded as an expense for the Department and included as operating revenue in ITSA's financial statements (Note 3G refers).  From a whole of government perspective this is cost/revenue neutral.

2 Note 33 provides further information of the extraordinary items included in the 'Total comprehensive loss attributable to the Australian Government'

The above statement should be read in conjunction with the accompanying notes.

BALANCE SHEET for the Attorney-General's Department's at 30 June 2012
    2012 2011
  Notes $'000 $'000
ASSETS    
 
 
 
Financial assets    
 
 
 
Cash and cash equivalents 5A,11
5,021
3,971
Trade and other receivables 5B
83,377
104,672
Total financial assets  
88,398
108,643
Non-financial assets    
 
 
 
Land and buildings 6A,6C
75,289
64,948
Property, plant and equipment 6B,6C
25,776
23,107
Intangibles 6D,6E
29,315
38,251
Inventories 6F
-
58
Other non-financial assets 6G
4,001
2,130
Total non-financial assets  
134,381
128,494
Total assets  
222,779
237,137
LIABILITIES    
 
 
 
Payables    
 
 
 
Suppliers 7A
43,740
17,942
Other payables 7B
19,917
13,113
Total payables  
63,657
31,055
Interest bearing liabilities    
 
 
 
Leases 8A
-
658
Total interest bearing liabilities  
-
658
Provisions    
 
 
 
Employee provisions 9A
40,570
33,005
Other provisions 9B
274
634
Total provisions  
40,844
33,639
Total liabilities  
104,501
65,352
Net assets  
118,278
171,785
EQUITY    
 
 
 
Parent entity interest    
 
 
 
Contributed equity  
175,317
150,643
Reserves  
18,734
19,124
Retained surplus (accumulated deficit)  
(75,773)
2,018
Total parent equity interest  
118,278
171,785
Total equity  
118,278
171,785

The above balance sheet should be read in conjunction with the accompanying notes.

STATEMENT of CHANGES in EQUITY for the Attorney-General's Department
for the period ended 30 June 2012
  Notes Retained earnings Asset revaluation surplus Contributed equity/capital Total equity
    2012 2011 2012 2011 2012 2011 2012 2011
    $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
   
 
 
 
 
 
 
 
 
 
 
 
 
Opening balance  
 
 
 
 
 
 
 
 
 
 
 
 
Balance carried forward from previous period  
2,018
19,910
19,124
19,124
150,643
125,503
171,785
164,537
Adjustments to prior periods  
-
(120)
-
-
-
(88)
-
(208)
Adjusted opening balance  
2,018
19,790
19,124
19,124
150,643
125,415
171,785
164,329
   
 
 
 
 
 
 
 
 
 
 
 
 
Comprehensive income  
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income - changes in asset revaluation reserves  
-
-
(390)
-
-
-
(390)
-
Deficit for the period  
(77,791)
(17,772)
-
-
-
-
(77,791)
(17,772)
Total comprehensive income  
(77,791)
(17,772)
(390)
-
-
-
(78,181)
(17,772)
   
 
 
 
 
 
 
 
 
 
 
 
 
Transactions with owners  
 
 
 
 
 
 
 
 
 
 
 
 
Distributions to owners  
 
 
 
 
 
 
 
 
 
 
 
 
Returns of capital:  
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring: Department of Regional Australia, Regional Development and Local Government 10A
-
-
-
-
-
(625)
-
(625)
Restructuring: Department of Prime Minister and Cabinet 10A
-
-
-
-
(459)
-
(459)
-
Transfer of funding: Insolvency and Trustee Service Australia 1  
-
-
-
-
(5,343)
-
(5,343)
-
Contributions by owners  
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring: Department of Families, Housing, Community Services and Indigenous Affairs 10A
-
-
-
-
-
44
-
44
Departmental Capital Budget  
-
-
-
-
22,419
17,036
22,419
17,036
Equity injection - Appropriations  
-
-
-
-
8,057
8,773
8,057
8,773
Sub-total transactions with owners  
-
-
-
-
24,674
25,228
24,674
25,228
Closing balance as 30 June  
(75,773)
2,018
18,734
19,124
175,317
150,643
118,278
171,785

1 The Department was appropriated $5.343 million for four months pre-operational expenses for the PPS Register.  This appropriation was transferred to the Insolvency and Trustee Service Australia (ITSA).

The above statement should be read in conjunction with the accompanying notes.

CASH FLOW STATEMENT for the Attorney-General's Department
for the period ended 30 June 2012
    2012 2011
  Notes $'000 $'000
OPERATING ACTIVITIES  
 
 
 
Cash received  
 
 
 
Sale of goods and rendering of services  
38,741
33,164
Appropriations  
265,383
246,969
Interest  
-
1
Net GST received  
9,841
8,739
Total cash received  
313,965
288,873
   
 
 
 
Cash used  
 
 
 
Employees  
168,089
162,703
Suppliers  
71,269
96,045
Borrowing costs  
37
180
Section 31 receipts transferred to OPA  
32,595
28,150
Total cash used  
271,990
287,078
Net cash from operating activities 11
41,975
1,795
   
 
 
 
INVESTING ACTIVITIES  
 
 
 
   
 
 
 
Cash used  
 
 
 
Purchase of land and buildings 6C
18,101
13,380
Purchase of property, plant and equipment 6C
15,360
9,742
Purchase of intangibles 6E
4,294
4,745
Internally developed intangibles 6E
27,645
16,901
Total cash used  
65,400
44,768
Net cash used by investing activities  
(65,400)
(44,768)
   
 
 
 
FINANCING ACTIVITIES  
 
 
 
Cash received  
 
 
 
Contributed equity  
25,133
47,501
Total cash received  
25,133
47,501
   
 
 
 
Cash used  
 
 
 
Repayment of borrowings  
658
2,324
Total cash used  
658
2,324
Net cash from financing activities  
24,475
45,177
   
 
 
 
Net increase/(decrease) in cash held  
1,050
2,204
Cash and cash equivalents at the beginning of the reporting period  
3,971
1,817
Cash transferred as part of restructure to the Department of Regional Australia, Regional Development and Local Government 10A
-
(50)
Cash and cash equivalents at the end of the reporting period 5A,11
5,021
3,971

The above statement should be read in conjunction with the accompanying notes.

SCHEDULE OF COMMITMENTS for the Attorney-General's Department
as at 30 June 2012
  2012 2011
  $'000 $'000
BY TYPE
 
 
 
Commitments receivable
 
 
 
Net GST recoverable on commitments
(27,364)
(19,742)
Total commitments receivable
(27,364)
(19,742)
Commitments payable
 
 
 
Capital commitments 1
 
 
 
Land and buildings
4,559
853
Property, plant and equipment
3,668
6,661
Total capital commitments
8,227
7,514
Other commitments 2
 
 
 
Operating leases 3
282,668
264,116
Other commitments
10,355
13,163
Total other commitments
293,023
277,279
Total commitments payable
301,250
284,793
Net commitments by type
273,886
265,051
BY MATURITY
 
 
 
Commitments receivable
 
 
 
Other commitments receivable
 
 
 
One year or less
(3,223)
(6,764)
From one to five years
(8,167)
(12,383)
Over five years
(15,974)
(595)
Total other commitments receivable
(27,364)
(19,742)
Total commitments receivable
(27,364)
(19,742)
Commitments payable
 
 
 
Capital commitments
 
 
 
One year or less
7,722
7,037
From one to five years
505
477
Total capital commitments
8,227
7,514
Operating lease commitments
 
 
 
One year or less
22,033
61,155
From one to five years
84,925
143,457
Over five years
175,710
59,504
Total operating lease commitments
282,668
264,116
Other commitments
 
 
 
One year or less
5,960
6,103
From one to five years
4,395
7,060
Total other commitments
10,355
13,163
Total commitments payable
301,250
284,793
Net commitments by maturity
273,886
265,051

Notes:

Commitments are GST inclusive where relevant.

1 The nature of capital commitments are outstanding contractual payments for fit out under construction and contracts that principally related to the development of 4 National Circuit.

2 The nature of other commitments are contractual payments to service providers for various services.

3 The Department in its capacity as lessee has the following operating leases that are effectively non-cancellable and comprise:

Nature of lease General description of leasing arrangement
Leases for office accommodation Each lease is individual and may be subject to automatic percentage increase depending on the terms of the agreement.
The period of office accommodation leases are current and may be renewed subject to negotiation.
Agreements for the provision of motor vehicles to senior executive officers. There are no renewal or purchase options available to the Department.

This schedule should be read in conjunction with the accompanying notes.

 

SCHEDULE OF CONTINGENCIES for the Attorney-General's Department
as at 30 June 2012
  2012 2011
  $'000 $'000
 
 
 
 
Contingent assets
 
 
 
Claims for damages or costs
95
42
Total contingent assets
95
42
 
 
 
 
Contingent liabilities
 
 
 
Claims for damages or costs
(468)
(88)
Total contingent liabilities
(468)
(88)
Net contingent assets (liabilities)
(373)
(46)

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 12: Contingent assets and liabilities, along with information on significant remote contingencies and contingencies that cannot be quantified.

The above schedule should be read in conjunction with the accompanying notes.

ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the Attorney-General's Department
for the period ended 30 June 2012
    2012 2011
  Notes $'000 $'000
EXPENSES  
 
 
 
Employee benefits 17A
1,035
3,059
Suppliers 17B
47,422
86,980
Subsidies 17C
2,426
9,724
Personal benefits 1 17D
81,101
979,642
Grants 2 17E
373,778
387,219
Depreciation and amortisation 17F
2,883
10,007
Write-down and impairment of assets 17G
1,596
1,246
Payments to CAC bodies 17H
-
10,127
Transfer of assets 17I
-
7,219
Total expenses administered on behalf of Government  
510,241
1,495,223
   
 
 
 
LESS:  
 
 
 
OWN-SOURCE INCOME  
 
 
 
Own-source revenue  
 
 
 
Taxation revenue  
 
 
 
Other taxes 18A
-
361
Total taxation revenue  
-
361
   
 
 
 
Non-taxation revenue  
 
 
 
Sale of goods and rendering of services 18B
5,798
11,298
Fees and fines 18C
-
867
Interest 18D
2,061
3,560
Dividends 18E
7,000
5,858
Rental income 18F
-
973
Royalties 18G
-
562
Competitive neutrality 18H
4,929
4,872
Recoveries 18I
829
3,279
Other non-taxation revenue 18J
1,941
18
Total non-taxation revenue  
22,558
31,287
Total own-source income administered on behalf of Government  
22,558
31,648
Net cost of services  
487,683
1,463,575
Deficit on continuing operations  
(487,683)
(1,463,575)
   
 
 
 
OTHER COMPREHENSIVE INCOME  
 
 
 
Changes in asset revaluation surplus  
(18,981)
788
Actuarial gains/losses on defined benefit plans  
(1,900)
(200)
Total other comprehensive income  
(20,881)
588
Total comprehensive income  
(508,564)
(1,462,987)

1 The prior year comparative shows payments made to individuals under the Australian Government Disaster Recovery Program (AGDRP), Disaster Income Recovery Subsidy (DIRS) Program and New Zealand residents under the DIRS program in response to the 2010-11 natural disaster events.

2 The Department makes grant payments to State and Territory Governments, Local Councils and various community organisations to support Government priorities as outlined in the Department's Portfolio Budget Statements and which appear in programs 1.3, 1.4, 1.5 and 1.6.

The above schedule should be read in conjunction with the accompanying notes.

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES for the Attorney-General's Department
as at 30 June 2012
    2012 2011
  Notes $'000 $'000
ASSETS  
 
 
 
Financial assets  
 
 
 
Cash and cash equivalents 19A, 23
-
169
Loans and receivables 19B
44,671
44,746
Investments 19C
376,490
396,052
Total financial assets  
421,161
440,967
   
 
 
 
Non-financial assets  
 
 
 
Property, plant and equipment 20A,20B
5,271
5,979
Intangibles 20C,20D
869
610
Other non-financial assets 20E
3,276
308
Total non-financial assets  
9,416
6,897
Total assets administered on behalf of Government  
430,577
447,864
   
 
 
 
LIABILITIES  
 
 
 
Payables  
 
 
 
Suppliers 21A
3,811
2,461
Grants and subsidies 21B
6,091
20,699
Other payables 21C
885
961
Total payables  
10,787
24,121
   
 
 
 
Provisions  
 
 
 
Employee provisions 22A
-
46
Superannuation provisions 22B
7,007
5,200
Total provisions  
7,007
5,246
Total liabilities administered on behalf of Government  
17,794
29,367
Net Assets  
412,783
418,497

The above schedule should be read in conjunction with the accompanying notes.

ADMINISTERED RECONCILIATION SCHEDULE for the Attorney-General's Department
  2012 2011
  $'000 $'000
Opening administered assets less administered liabilities as at 1 July
418,497
1,160,144
Adjustment for recognition of Former Solicitors-General Pension scheme
-
(5,000)
Adjusted opening administered assets less administered liabilities
418,497
1,155,144
Deficit items:  
 
 
 
Plus: Administered income
22,558
31,648
Less: Administered expenses (non CAC)
(510,241)
(1,485,109)
Payments to CAC Act bodies
-
(10,127)
Other comprehensive income:  
 
 
 
Administered revaluations taken to/from reserves
(18,981)
788
Actuarial loss - Former Solicitor-General Pension taken to equity
(1,900)
(200)
Administered transfers to/from Australian Government:  
 
 
 
Appropriation transfers from OPA:  
 
 
 
Annual appropriations for administered expenses (non CAC)
473,233
564,715
Administered assets and liabilities appropriations
8,897
50,087
Annual appropriations for payment to CAC Act bodies
-
10,127
Special appropriations (unlimited) (non CAC)
79,540
992,122
Transfers to OPA
(58,820)
(163,308)
Restructuring
-
(727,390)
Closing administered assets less administered liabilities as at 30 June
412,783
418,497

 

ADMINISTERED CASH FLOW STATEMENT for the Attorney-General's Department
for the period ended 30 June 2012
    2012 2011
  Notes $'000 $'000
OPERATING ACTIVITIES    
 
 
 
Cash received    
 
 
 
Sales of goods and rendering of services  
5,776
10,384
Interest  
1,321
3,560
Dividends  
7,000
5,858
Levies, fees, taxes and fines  
-
1,228
Net GST received  
21,416
20,447
Competitive neutrality  
4,929
4,872
Rental income  
-
973
Royalties  
-
562
Recoveries  
829
3,279
Other non-taxation revenue:    
 
 
 
Recovery of unspent grant funding  
1,340
-
Torres Strait Regional Authority receipts  
600
-
Other revenue  
1
17
Total cash received  
43,212
51,180
     
 
 
 
Cash used    
 
 
 
Grant payments  
388,386
401,032
Subsidies paid  
2,426
9,724
Personal benefits  
81,194
978,815
Suppliers  
71,951
85,328
Employees  
1,095
3,195
Payments to CAC bodies  
-
10,127
Total cash used  
545,052
1,488,221
Net cash flows used by operating activities 23
(501,840)
(1,437,041)
     
 
 
 
INVESTING ACTIVITIES    
 
 
 
Cash received    
 
 
 
Repayments of advances and loans from State Governments  
8,312
6,638
Total cash received  
8,312
6,638
     
 
 
 
Cash used    
 
 
 
Purchase of land and buildings  
-
544
Purchase of property, plant and equipment  
1,666
22,632
Purchase of intangibles  
213
16
Advances and loans made to State Governments  
7,616
-
Total cash used  
9,495
23,192
Net cash flows used by investing activities  
(1,183)
(16,554)
     
 
 
 
   
2012
2011
  Notes
$'000
$'000
FINANCING ACTIVITIES    
 
 
 
Cash received    
 
 
 
Contributed equity - transfer from OPA  
8,897
-
Net cash flows from/(used by) financing activities  
8,897
-
Net decrease in cash held  
(494,126)
(1,453,595)
     
 
 
 
Cash and cash equivalents at the beginning of the reporting period  
169
41
Cash transferred as part of restructure to the Department of Regional Australia, Regional Development and Local Government  
-
(22)
Cash from Official Public Account for:    
 
 
 
-Appropriations  
473,237
614,804
-Special Accounts  
79,540
1,002,249
   
552,777
1,617,053
     
 
 
 
Cash to Official Public Account for:    
 
 
 
-Appropriations  
(50,559)
(113,482)
-Special Accounts  
(8,261)
(49,826)
   
(58,820)
(163,308)
Cash and cash equivalents at the end of the reporting period 19A
-
169

This statement should be read in conjunction with the accompanying notes.

SCHEDULE OF ADMINISTERED COMMITMENTS for the Attorney-General's Department
as at 30 June 2012
  2012 2011
  $'000 $'000
BY TYPE  
 
 
 
Commitments receivable  
 
 
 
Net GST recoverable on commitments
(22,660)
(11,896)
Total commitments receivable
(22,660)
(11,896)
   
 
 
 
Commitments payable  
 
 
 
Capital commitments 1  
 
 
 
Property, plant and equipment
-
3,208
Total capital commitments
-
3,208
   
 
 
 
Other commitments 2  
 
 
 
Operating Leases
14,074
30,925
Other commitments
85,616
110,933
Grants
546,630
552,888
Total other commitments
646,320
694,746
Total commitments payable
646,320
697,954
Net commitments by type
623,660
686,058
   
 
 
 
BY MATURITY  
 
 
 
Commitments receivable  
 
 
 
Other commitments receivable  
 
 
 
One year or less
(15,611)
(7,642)
From one to five years
(7,049)
(4,254)
Total other commitments receivable
(22,660)
(11,896)
Total commitments receivable
(22,660)
(11,896)
   
 
 
 
Commitments payable  
 
 
 
Capital commitments  
 
 
 
One year or less
-
1,486
From one to five years
-
1,722
Total capital commitments
-
3,208
   
 
 
 
Operating lease commitments  
 
 
 
One year or less
14,069
15,458
From one to five years
5
15,467
Total operating lease commitments
14,074
30,925
   
 
 
 
Other commitments/Grants  
 
 
 
One year or less
336,141
241,943
From one to five years
296,105
421,878
Total other commitments
632,246
663,821
Total commitments payable
646,320
697,954
Net commitments by maturity
623,660
686,058

Notes:

Commitments are GST inclusive where relevant.

1 On 14 September 2010, responsibility for Australian Territories functions was transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010.

2 The nature of other commitments are grant amounts payable under agreements over future years in respect of which the grantee has yet to provide the services required under the agreement.

These commitments are fully funded in the forward estimates.

This schedule should be read in conjunction with the accompanying notes.

 

SCHEDULE OF ADMINISTERED CONTINGENCIES for the Attorney-General's Department
as at 30 June 2012

Contingent assets
At 30 June 2012 the Department estimates the value of contingent assets to be $nil (2011: $nil).

Contingent liabilities
At 30 June 2012 the Department estimates the value of contingent liabilities to be $nil (2011: $nil).

The above schedule should be read in conjunction with the accompanying notes.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
Note Description
1 Summary of significant accounting policies
2 Events after the reporting period
3 Expenses
4 Income
5 Financial assets
6 Non-financial assets
7 Payables
8 Interest bearing liabilities
9 Provisions
10 Restructuring
11 Cash flow reconciliation
12 Contingent assets and liabilities
13 Senior executive remuneration
14 Remuneration of auditors
15 Financial instruments
16 Financial assets reconciliation
17 Administered - expenses
18 Administered - income
19 Administered - financial assets
20 Administered - non-financial assets
21 Administered - payables
22 Administered - provisions
23 Administered - cash flow reconciliation
24 Administered - contingent assets and liabilities
25 Administered - investments
26 Administered - financial instruments
27 Administered - financial assets reconciliation
28 Appropriations
29 Special accounts
30 Compensation and debt relief
31 Reporting of outcomes
32 Cost recovery
33 Net cash appropriation arrangements

Note 1: Summary of significant accounting policies

1.1 Objectives of the Attorney- General’s Department

The Attorney-General’s Department (the Department) is the central policy and coordinating body of the Attorney-General’s portfolio. It is a not-for-profit entity.

The Department provides expert advice, policy development and program implementation services to the Attorney-General, the Minister for Home Affairs and Justice and the Australian Government more broadly under one outcome:

Outcome 1: A just and secure society through the maintenance and improvement of Australia's law and justice framework and its national security and emergency management system.

Departmental and Administered activities are identified under seven programs for Outcome 1. The seven programs within Outcome 1 are: Attorney-General's Department Operating Expenses - Civil Justice and Legal Services (1.1), Attorney-General's Department Operating Expenses - National Security and Criminal Justice (1.2), Justice Services (1.3), Family Relationships (1.4), Indigenous Law and Justice (1.5), National Security and Criminal Justice (1.6) and Australian Government Disaster Financial Support Payments (1.7).

The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for the Department’s administration and programs.

The Department's activities contributing toward these outcomes are classified as either departmental or administered.  Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right.  Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government.

1.2 Basis of preparation of the financial statements

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are general purpose financial statements.

The financial statements and notes have been prepared in accordance with:

  • The Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
  • Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with historical cost convention, except for certain assets and liabilities at fair value.  Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will follow to the Department, or a future sacrifice of economic benefits will be required, and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard.  Liabilities and assets that are unrecognised at balance date are reported in the schedule of commitments and the schedule of contingencies (other than unquantifiable or remote contingencies, which are reported at Note 12).

Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for departmental items, except where otherwise stated at Note 1.20.

1.3 Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the Department has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

  • The fair value of land and buildings has been taken to be the market value of similar properties. In some instances, the Department’s buildings are purpose built and may in fact realise more or less in the market; and
  • The fair value of the Department’s infrastructure, plant and equipment has been taken to be the market selling price.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

 1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.  Of the new standards, amendments to standards and interpretation issued by the Australian Accounting Standards Board prior to the sign-off date that are applicable to the current period, none have had a material impact.

Future Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.  Of the new standards, amendments to standards and interpretation issued by the Australian Accounting Standards Board that are applicable to the current period, none have had a material impact.

AASB 9 Financial Instruments - December 2010 (Principal)

AASB 12 Disclosure of Interests in Other Entities - August 2011 (Principal)

AASB 13 Fair Value Measurement - September 2011 (Principal)

AASB 119  Employee Benefits – September 2011 (Principal)

AASB 128 Investments in Associates and Joint Ventures - August 2011 (Principal)

AASB 2010–2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052]

AASB 2010–7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]

AASB 2011–8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]

AASB 2011-9 Amendments to Australian Accounting Standards - Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14]

1.5 Revenue

Sales of goods and services

Revenue from the sale of goods is recognised when:

a)   the risks and rewards of ownership have been transferred to the buyer;

b)   the Department retains no managerial involvement or effective control over the goods;

c)   the revenue and transaction costs incurred can be reliably measured; and

d)   it is probable that the economic benefits associated with the transaction will flow to the Department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date.  The revenue is recognised when:

a)   the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b)   the probable economic benefits associated with the transaction will flow to the Department.

The stage of completion of contacts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account.  Collectability of debts is reviewed during the financial year and at end of the reporting period.  Impairment allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set in AASB 139 Financial Instruments: Recognition and Measurement.

Revenue from Government

Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the Department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

1.6 Gains

Resources received free of charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gain depending on their nature.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

Sale of assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Equity

Amounts appropriated which are designated as ‘equity injections’ (less any formal reductions).

Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of administrative arrangements

Net assets received from or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are recorded at their book value directly against contributed equity.

Other distribution to Owners

Distributions to owners are debited to contributed equity unless in the nature of a dividend.

1.8 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of balance date are measured at their nominal amounts. 

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as the net total of the present value of the defined benefit obligation at the end of the reporting period.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.  No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Department’s employer superannuation contribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.

The methodology for calculating the liability for long service leave was confirmed by reference to the work of an actuary who is periodically retained by the Department.  The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments.  The Department recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

The majority of the staff of the Department are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course.  This liability is reported by the Department of Finance and Deregulation's administered schedule and notes.

The Department makes employer contributions to the CSS and PSS employee superannuation scheme at rates determined by an actuary to be sufficient to meet the cost to the Government for the superannuation entitlements of the Department’s employees.  The Department accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases.  Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets.  An operating lease is a lease that is not a finance lease.  In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease.  Leased assets are amortised over the period of the lease.  Lease payments are allocated between the principal components and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

1.10 Borrowing costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash and cash equivalents includes cash on hand, cash held with outsiders, demand deposits in bank accounts with an original maturity of three months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.  Cash is recognised at its nominal amount. 

1.12 Financial assets

The Department classifies its financial assets as loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

Financial assets are recognised and derecognised upon trade date.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period.  The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’.  Loans and receivables are measured at amortised cost using the effective interest method less impairment.  Interest is recognised by applying the effective interest rate.

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost – if there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted as the asset’s original effective interest rate.  The carrying amount is reduced by way of an allowance account.  The loss is recognised in the Statement of Comprehensive Income.

1.13 Financial liabilities

Financial liabilities are classified as other financial liabilities.

Financial liabilities are recognised and derecognised upon 'trade date'.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.  Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period.  The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.

Supplier and other payables are recognised at amortised cost.  Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced).

1.14 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and notes.  They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured.  Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote. 

1.15 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below.  The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.  Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amount at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.

1.16 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the 'makegood' cost of dismantling and removing the item and restoring the site on which it is located.  This is particularly relevant in property leases taken up by the Department where there exists an obligation to restore the property to its original condition.  These costs are included in the value of leasehold improvements with a corresponding provision for the ‘makegood’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below:
Asset Class: Fair value measured at:
Land Market selling price
Buildings Market selling price
Leasehold improvements Depreciated replacement cost
Property, plant and equipment Market selling price
Heritage and cultural assets Active market

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses.  Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets' fair values as at the reporting date.  The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis.  Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit.  Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation.  Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.  The library assets which have been recognised as heritage assets are not depreciated, and all other library acquisitions are expenses in the year of acquisition.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable departmental asset are based on the following useful lives:

  2012 2011
Buildings on freehold land 25-50 years 25-50 years
Leasehold improvements Lease term Lease term
Property, plant and equipment 3 to 10 years 3 to 10 years
Heritage and cultural (where applicable) Up to 200 years Up to 200 years

Depreciation rates applying to each class of depreciable administered asset are based on the following useful lives:

  2012 2011
Property, plant and equipment 3 to 10 years 3 to 10 years

 

Impairment

All assets were assessed for impairment at 30 June 2012.  Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.  Value in use is the present value of the future cash flows expected to be derived from the asset.  Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Department were deprived of the asset, its value in use is taken to be it depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use of disposal.

Heritage and cultural

Heritage and cultural items (electronic and print) include a comprehensive collection of law and selected works in other subject areas that are of interest to the Department’s strategic agenda. 

The Department acquires items for the collection from a range of publishers, second hand dealers, book agents, donations or government publishing agents. 

Heritage and cultural assets are stored and managed in ways to preserve their heritage and cultural value over time.  The Department’s conservation and preservation policies include binding loose parts into bound volumes, secure storage of significant items thereby limiting distribution and restoration of items such as Hansard.

1.17 Intangibles

The Department’s intangibles comprise internally developed software and purchased software for internal use.  These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life.  The useful lives of the Department’s intangibles are 3 to 5 years (2010-11: 3 to 5 years).   

All software assets were assessed for indications of impairment at year end.

1.18 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.  Inventories held for distribution are valued at cost, adjusted for any loss of service potential. 

1.19 Taxation

The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenue, expenses and assets are recognised net of GST except:

  1. where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  2. for receivables and payables.

1.20 Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Administered cash transfer to and from the Official Public Account

Revenue collected by the Department for use by the Government rather than the Department is administered revenue.  Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation.  Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government.  These transfers to and from the OPA are adjustments to the administered cash held by the entity on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to the course of ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the Department.

Dividend revenue represents dividends received from entities, which mainly relate to administered investments of the Department and is recognised when the dividend has been declared and the right to receive the dividend has been established.

Competitive neutrality

The Australian Government Solicitor (AGS) is a portfolio related entity and operates on a for profit basis.  As an agency within the Australian Government it is not subject to taxation other than GST and FBT.  However, under competitive neutrality arrangements, the AGS is required to make payroll tax, income tax, and practicing certificates equivalent payments to the Government.

Expenses

All administered expenses are expenses relating to the course of ordinary activities performed by the Department on behalf of the Australian Government.

Loans and receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method.  Gains and losses due to impairment, derecognition and amortisation is recognised through profit and loss.

Concessional loans are initially recognised at their fair value. If the rate of interest charged is lower than the government bond rate (for government/public sector loans) or the counterparty’s borrowing rate (for non government loans) the difference between the amortised cost and the fair value of the loan is treated as an expense.

Administered investments

Administered investments in 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 measured at their fair value at 30 June 2012.  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.

Grants and subsidies

The Department administers a number of grant and subsidy schemes on behalf of the Government.

Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied.

Superannuation provisions

The Department recognises an administered liability for the present value of the Australian Government's expected future payments arising from the former Solicitors-General Pension scheme. 

Increases in the accrued benefits liability, pursuant to regular estimates of the liability taking account of actuarial reviews, are recognised as an expense and classified as personal benefit expense, except for actuarial gains or losses which are recognised in equity.  In accordance with AASB 119 Employee Benefits, the liability is assessed annually by applying the projected unit credit method in assessing the balance of the liability.  The rate used to discount long term employee benefits and post employment benefits is determined by reference to the government bond rate at the reporting date on high quality corporate bonds except where there is not a deep market in these bonds, in which case the market yield on national government bonds is used.  In the case of discounting the personal benefit liability, the market yield on government bonds has been used.  Additional information can be found at Note 22.

Note 2: Events after the reporting period

There were no subsequent events that had the potential to significantly affect the ongoing structure and financial activities of the Department.

There were no subsequent Administered events that had the potential to significantly affect the ongoing structure and financial activities of the Department.

Note 3: Expenses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
3A: Employee benefits  
 
 
 
Wages and salaries  
125,281
122,547
Superannuation:  
 
 
 
Defined benefit plans  
18,227
16,551
Defined contribution plans  
5,225
6,173
Leave and other entitlements  
20,761
15,692
Separation and redundancies  
4,224
1,095
Other employee benefit expenses:  
 
 
 
Recruitment and security vetting expenses  
1,901
1,338
Health & wellbeing  
502
361
Comsuper charges  
316
311
Study assistance  
574
506
FBT  
692
745
Other employee expenses  
207
82
Total employee benefits  
177,910
165,401
3B: Suppliers  
 
 
 
Goods and services  
 
 
 
Accommodation expenses  
3,908
3,677
Consultants  
2,604
1,942
Contractors  
6,057
4,828
Travel  
7,145
7,492
Information technology and communications  
11,212
9,513
General office  
8,894
7,466
Auscheck expenditure  
4,474
3,236
Legal and internal audit fees  
11,789
11,737
Payments and contributions to external bodies  
5,753
10,513
Total goods and services  
61,836
60,404
Goods and services are made up of:  
 
 
 
Provision of goods - related entities  
52
41
Provision of goods - external parties  
2,883
4,098
Rendering of services - related entities  
22,488
24,989
Rendering of services - external parties  
36,413
31,276
Total goods and services  
61,836
60,404
Other supplier expenses  
 
 
 
Operating lease rentals - external parties:  
 
 
 
Minimum lease payments  
18,958
21,011
Workers compensation expenses  
683
655
Total other supplier expenses  
19,641
21,666
Total supplier expenses  
81,477
82,070
3C: Depreciation and amortisation  
 
 
 
Depreciation:  
 
 
 
Buildings and leasehold improvements 6C
7,760
6,966
Property, plant and equipment 6C
10,073
6,817
Assets held under finance leases 6C
565
1,716
Total depreciation  
18,398
15,499
Amortisation:  
 
 
 
Intangibles: computer software 6E
4,031
2,640
Total amortisation  
4,031
2,640
Total depreciation and amortisation  
22,429
18,139
3D: Finance costs  
 
 
 
Finance leases  
37
180
Total finance costs 15C
37
180
3E: Write-down and impairment of assets  
 
 
 
Asset write-downs and impairments from:  
 
 
 
Write down of property, plant and equipment 11
16
119
Write down of heritage and cultural (library resources) 6C,11
152
-
Impairment of intangibles 11
-
51
Impairment of financial instruments 15B,11
(14)
18
Total write-down and impairment of assets  
154
188
3F: Other expenses  
 
 
 
Defective administration scheme payments 30
-
14
Unwinding of makegood expense 9B,11
45
36
Total other expenses  
45
50
3G: Transfer of assets  
 
 
 
Assets transferred free of charge 1 11,33
38,340
-

1 Transfer of the cost of establishing the Personal Property Securities (PPS) register, contact centre and registrar's office from the Attorney-General's Department to Insolvency and Trustee Service Australia (ITSA). Funding for this was provided to the Attorney-General's Department as contributed equity during the current and previous financial years.  The amount of $38,340,110 has been recorded as an expense for the Department and included as operating revenue in ITSA's financial statements.  From a whole of government perspective this is cost/revenue neutral.

Note 4: Income

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
OWN SOURCE REVENUE  
 
 
 
4A: Sale of goods and rendering of services  
 
 
 
Provision of goods - related entities  
718
603
Provision of goods - external parties  
463
410
Rendering of services - related entities  
17,169
15,162
Rendering of services - external entities  
18,191
12,921
Total sale of goods and rendering of services  
36,541
29,096
4B: Interest  
 
 
 
Interest on deposits  
-
1
GAINS  
 
 
 
4C: Other gains  
 
 
 
Resources received free of charge - ANAO 14
405
340
REVENUE FROM GOVERNMENT  
 
 
 
4D: Revenue from Government  
 
 
 
Appropriations:  
 
 
 
Departmental appropriations  
205,655
218,819

Note 5: Financial assets

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
5A: Cash and cash equivalents  
 
 
 
Cash on hand or on deposit 15A
5,021
3,971
Total cash and cash equivalents  
5,021
3,971
5B: Trade and other receivables  
 
 
 
Goods and services:  
 
 
 
   
3,882
3,853
   
5,676
1,137
Total receivables for goods and services 15A
9,558
4,990
Appropriations receivable:  
 
 
 
   
70,813
97,946
Total appropriations receivable  
70,813
97,946
Other receivables:  
 
 
 
   
3,009
1,621
   
17
151
Total other receivables  
3,026
1,772
Total trade and other receivables (gross)  
83,397
104,708
Less impairment allowance account:  
 
 
 
   
(20)
(36)
Total impairment allowance account  
(20)
(36)
Total trade and other receivables (net)  
83,377
104,672
Receivables are expected to be recovered in:  
 
 
 
   
83,377
104,672
Total trade and other receivables (net)  
83,377
104,672
Receivables are aged as follows:  
 
 
 
Not overdue  
80,456
103,986
Overdue by:  
 
 
 
   
1,338
408
   
765
44
   
197
107
   
641
163
Total receivables (gross)  
83,397
104,708
Note 5: Financial assets continued  
 
 
 
The impairment allowance account is aged as follows:
 
 
 
Overdue by:  
 
 
 
   
(20)
(36)
Total impairment allowance account  
(20)
(36)
 
 
 
 
Credit terms for goods and services were within 30 days (2011: 30 days).
   
 
 
 
Reconciliation of the impairment allowance account:  
 
 
 
   
 
 
 
Movements in relation to 2012  
 
 
 
   
Goods and services
Total
   
$'000
$'000
Opening balance  
36
36
    Amounts recovered and reversed  
(16)
(16)
Closing balance  
20
20
   
 
 
 
Movements in relation to 2011  
 
 
 
Opening balance  
23
23
    Amounts recovered and reversed  
(13)
(13)
    (Increase)/decrease recognised in operating result  
26
26
Closing balance  
36
36

Note 6: Non-financial assets

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

6A: Land and buildings

 
 
 
 
Land:  
 
 
 
Land at fair value 6C
865
865
   
 
 
 
Buildings on freehold land:  
 
 
 
    Fair value 6C
772
370
    Accumulated depreciation 6C
(49)
(23)
Total buildings on freehold land  
723
347
   
 
 
 
Leasehold improvements:  
 
 
 
   Fair value  
78,765
65,968
    Accumulated depreciation  
(21,857)
(14,124)
    Work in progress (at cost)  
16,793
11,892
Total leasehold improvements 6C
73,701
63,736
Total land and buildings 6C
75,289
64,948
   
 
 
 
No indicators of impairment were found for land and buildings.
   
 
 
 
No land or buildings are expected to be sold or disposed of within the next 12 months.

6B: Property, plant and equipment

 
 
 
 
Heritage and cultural:  
 
 
 
    Library (at fair value)  
1,663
1,815
Total heritage and cultural 6C
1,663
1,815
   
 
 
 
Other property, plant and equipment:  
 
 
 
    Fair value  
41,432
51,099
    Accumulated depreciation  
(17,319)
(29,807)
Total other property, plant and equipment 6C
24,113
21,292
Total property, plant and equipment  
25,776
23,107

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment are expected to be sold or disposed of within the next 12 months.

Revaluation of non-financial assets

All revaluations were undertaken in accordance with the revaluation policy stated at Note 1.  A revaluation of property, plant and equipment was undertaken by an independent valuer with effect from 30 June 2012.

A revaluation decrement of $501,599 (2011: nil) for property, plant and equipment was debited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet; a decrement of $152,000 (2011: nil) for the Library was expensed in the Statement of Comprehensive Income (Note 3E refers); $111,515 of assets were recognised for the first time and were credited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

Note 6C: Reconciliation of the opening and closing balances of property, plant and equipment (2011-12)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Land Buildings Leasehold improvements Total  land
and buildings
Heritage
and
cultural 1
Other
property,
plant & equipment
Total
  $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2011  
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross book value
865
370
77,860
79,095
1,815
51,099
132,009
Accumulated depreciation and impairment
-
(23)
(14,124)
(14,147)
-
(29,807)
(43,954)
Net book value 1 July 2011
865
347
63,736
64,948
1,815
21,292
88,055
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions  
 
 
 
 
 
 
 
 
 
 
 
 
 
By purchase
-
402
17,699
18,101
-
15,360
33,461
Revaluations and impairments recognised in other comprehensive income
-
-
-
-
-
(502)
(502)
Revaluations recognised in the operating result
-
-
-
-
(152)
-
(152)
Assets first found
-
-
-
-
-
112
112
Depreciation expense
-
(26)
(7,734)
(7,760)
-
(10,638)
(18,398)
Other movements - transfer assets between asset classes 2
-
-
-
-
-
144
144
Other movements - transfer of assets to Insolvency and Trustee Service Australia  3
-
-
-
-
-
(1,640)
(1,640)
Disposals  
 
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
-
-
-
-
-
(15)
(15)
Net book value 30 June 2012
865
723
73,701
75,289
1,663
24,113
101,065
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Net book value as of 30 June 2012 represented by:  
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross book value
865
772
95,559
97,196
1,663
41,432
140,291
Accumulated depreciation and impairment
-
(49)
(21,858)
(21,907)
-
(17,319)
(39,226)
Net book value 30 June 2012
865
723
73,701
75,289
1,663
24,113
101,065

1 Library assets that met the definition of heritage and cultural items were disclosed in the heritage and cultural asset class.

2 Transfer of assets classed as intangibles in 2010-11 to property, plant and equipment in 2011-12.

3 Transfer of the Personal Property Securities (PPS) assets from the Attorney-General's Department to Insolvency and Trustee Service Australia (Note 3G refers).

 

Note 6C (Cont'd): Reconciliation of the opening and closing balances of property, plant and equipment (2010-11)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Land Buildings Leasehold improvements Total  land
and buildings
Heritage
and
cultural 1
Other
property,
plant & equipment
Total
  $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2010  
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross book value
865
335
64,634
65,834
1,815
41,913
109,562
Accumulated depreciation and impairment
-
(11)
(7,206)
(7,217)
-
(21,418)
(28,635)
Adjustments made to accumulated depreciation and impairment
-
-
-
-
-
(3)
(3)
Net book value 1 July 2010
865
324
57,428
58,617
1,815
20,492
80,924
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Additions  
 
 
 
 
 
 
 
 
 
 
 
 
 
By purchase
-
35
13,345
13,380
-
9,742
23,122
Depreciation expense
-
(12)
(6,954)
(6,966)
-
(8,533)
(15,499)
Other movements: transfer of assets to Department of Regional Australia, Regional Development and Local Government
-
-
(58)
(58)
-
(28)
(86)
Disposals  
 
 
 
 
 
 
 
 
 
 
 
 
 
From disposal of entities or operations (including restructuring)
-
-
(25)
(25)
-
(279)
(304)
Other
-
-
-
-
-
(102)
(102)
Net book value 30 June 2011
865
347
63,736
64,948
1,815
21,292
88,055
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Net book value as of 30 June 2011 represented by:  
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross book value
865
370
77,860
79,095
1,815
51,099
132,009
Accumulated depreciation and impairment
-
(23)
(14,124)
(14,147)
-
(29,807)
(43,954)
Net book value 30 June 2011
865
347
63,736
64,948
1,815
21,292
88,055

1 Library assets that met the definition of heritage and cultural items were disclosed in the heritage and cultural asset class.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

6D: Intangibles

   
 
 
 
Computer software:    
 
 
 
Internally developed - in progress 1  
14,652
26,767
Internally developed - in use  
20,682
17,384
Purchased  
15,258
11,699
Accumulated amortisation  
(21,277)
(17,599)
Total intangibles 6E
29,315
38,251

No indicators of impairment were found for intangibles.

No intangibles are expected to be sold or disposed of within the next 12 months.

1 The decrease from 2010-11 is primarily attributable to the transfer of establishing the Personal Property Securities (PPS) register, contact centre and registrar's office, from the Attorney-General's Department to Insolvency and Trustee Service Australia (ITSA) (refer to Note 33).

Note 6E: Reconciliation of the opening and closing balances of intangibles (2011-12)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2011  
 
 
 
 
 
Gross book value
44,151
11,699
55,850
Accumulated amortisation and impairment
(11,051)
(6,548)
(17,599)
Net book value 1 July 2011
33,100
5,151
38,251
   
 
 
 
 
 
Additions:  
 
 
 
 
 
By purchase
-
4,294
4,294
Internally developed
27,645
-
27,645
Total additions
27,645
4,294
31,939
Amortisation expense
(2,392)
(1,639)
(4,031)
Other movements - transfer assets between asset classes 1
(174)
30
(144)
Other movements - transfer of assets to Insolvency and Trustee Service Australia  2
(36,288)
(412)
(36,700)
Net book value 30 June 2012
21,891
7,424
29,315
   
 
 
 
 
 
Net book value as of 30 June 2012 represented by:  
 
 
 
 
 
Gross book value
35,334
15,258
50,592
Accumulated amortisation and impairment
(13,443)
(7,834)
(21,277)
Net book value 30 June 2012
21,891
7,424
29,315

1 Transfer of assets classed as intangibles in 2010-11 to property, plant and equipment in 2011-12.

2 Transfer of the Personal Property Securities (PPS) assets from the Attorney-General's Department to Insolvency and Trustee Service Australia (Note 3G refers)

Reconciliation of the opening and closing balances of intangibles (2010-11)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2010  
 
 
 
 
 
Gross book value
27,278
6,996
34,274
Accumulated amortisation and impairment
(9,452)
(5,526)
(14,978)
Net book value 1 July 2010
17,826
1,470
19,296
   
 
 
 
 
 
Additions:  
 
 
 
 
 
By purchase
-
4,745
4,745
Internally developed
16,901
-
16,901
Total additions
16,901
4,745
21,646
Impairments recognised in operating result
(24)
(27)
(51)
Amortisation expense
(1,603)
(1,037)
(2,640)
Net book value 30 June 2011
33,100
5,151
38,251
   
 
 
 
 
 
Net book value as of 30 June 2011 represented by:  
 
 
 
 
 
Gross book value
44,151
11,699
55,850
Accumulated amortisation and impairment
(11,051)
(6,548)
(17,599)
Net book value 30 June 2011
33,100
5,151
38,251

 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

6F: Inventories

   
 
 
 
Inventories held for distribution  
-
58
     
 
 
 
During 2011-12, nil (2011: $12,420) inventory held for distribution was recognised as an expense.    
 
 
 
     
 
 
 
     
 
 
 

6G: Other non-financial assets

   
 
 
 
Prepayments  
4,001
2,130
     
 
 
 
Total other non-financial assets - are expected to be recovered in:    
 
 
 
    No more than 12 months  
2,905
1,746
    More than 12 months  
1,096
384
Total other non-financial assets  
4,001
2,130
     
 
 
 

Note 7: Payables

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

7A: Suppliers

   
 
 
 
Trade creditors and accruals  
36,561
11,487
Operating lease rentals  
7,179
6,455
Total suppliers payables 15A
43,740
17,942
     
 
 
 
Supplier payables expected to be settled within 12 months:    
 
 
 
    Related entities  
1,473
95
    External parties  
42,267
17,847
Total suppliers payables  
43,740
17,942
     
 
 
 
Settlement is usually made net 30 days.    
 
 
 
     
 
 
 

7B: Other payables

   
 
 
 
Wages and salaries  
3,547
2,896
Superannuation  
3,680
3,108
Separations and redundancies  
2,669
1,243
Other employee payables  
393
37
Prepayments received/unearned income  
7,712
3,318
FBT payable  
246
536
Lease incentives 1  
1,670
1,975
Total other payables  
19,917
13,113
     
 
 
 
Total other payables are expected to be settled in:    
 
 
 
No more than 12 months  
18,552
11,443
More than 12 months  
1,365
1,670
Total other payables  
19,917
13,113

1 The Department has received incentives in the form of cash and rent free periods on entering into property operating leases.

Note 8: Interest bearing liabilities

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

8A: Leases 1

   
 
 
 
Finance leases 15A
-
658
     
 
 
 
Payable:    
 
 
 
Within one year:    
 
 
 
    Minimum lease payments  
-
700
    Deduct: future finance charges  
-
(42)
Finance leases recognised on the balance sheet  
-
658

1 Finance leases exist in relation to certain computer and office equipment assets.  The leases are non-cancellable and for fixed terms averaging 3 years, with a maximum of 4 years.  The interest rate implicit in the leases averaged 5% (2011: 5%).  The lease assets secure the lease liabilities. The Department guarantees the residual values of all assets leased.  There are no contingent rentals.

Note 9: Provisions

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

9A: Employee provisions

   
 
 
 
Leave  
40,570
33,005
     
 
 
 
Employee provisions are expected to be settled in:    
 
 
 
No more than 12 months  
16,616
15,464
More than 12 months  
23,954
17,541
Total employee provisions  
40,570
33,005
     
 
 
 

9B: Other provisions

   
 
 
 
Provision for restoration obligations  
274
634
     
 
 
 
Other provisions are expected to be settled in:    
 
 
 
More than 12 months  
274
634
     
 
 
 
   
Provision for
restoration
Total
   
$'000
$'000
Carrying amount 1 July 2011  
634
634
Amounts used  
(405)
(405)
Unwinding of discount or change in discount rate  
45
45
Closing balance 2012  
274
274

The Department currently has seven (2011: 7) agreements for the lease of premises some of which have provisions requiring the Department to restore the premises to their original condition at the conclusion of the lease. The Department has made a provision to reflect the present value of this obligation.

During August and September 2012 the Department will consolidate most of its leased office accommodation and relocate to 4 National Circuit, Barton.  This will result in releasing part of the provision for restoration obligations in 2012-13.

Note 10: Restructuring

Note 10A: Departmental restructuring

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  Privacy and Freedom of Information (FOI) Reform
Department of Prime Minister and Cabinet 1
$'000
Cyber Security Policy
Department of Prime Minister and Cabinet 2
$'000
Australian Government Disaster Recovery Payment
Department of Families, Housing, Community Services and Indigenous Affairs 3
$'000
Good governance to the Australian Territories through the maintenance and improvements of the overarching legislative framework for the self-governing territories, and laws and services for the non-self-governing territories
Department of Regional Australia, Regional Development and Local Government 4
$'000
Functions assumed  
 
 
 
 
 
 
 
Assets recognised  
 
 
 
 
 
 
 
Appropriation receivable
-
-
56
-
Total assets recognised
-
-
56
-
   
 
 
 
 
 
 
 
Liabilities recognised  
 
 
 
 
 
 
 
Employee provisions
(459)
-
(100)
-
Total liabilities recognised
(459)
-
(100)
-
Net liabilities assumed 5
(459)
-
(44)
-
   
 
 
 
 
 
 
 
Expenses  
 
 
 
 
 
 
 
Recognised by the Attorney-General's Department 1,3
401
 
 
801
 
Recognised by the Department of Prime Minister and Cabinet 1
303
 
 
-
 
Recognised by the Department of Families, Housing, Community Services and Indigenous Affairs 3
-
-
693
-
Total expenses
704
-
1,494
-
 
 
 
 
 
Functions relinquished  
 
 
 
 
 
 
 
Assets relinquished  
 
 
 
 
 
 
 
Cash
-
-
-
50
Trade receivables
-
-
-
2
Appropriation receivable
-
190
-
2,387
Other receivables
-
-
-
1
Leasehold improvements
-
-
-
175
Infrastructure, plant and equipment
-
-
-
129
Total assets relinquished
-
190
-
2,744
 
 
 
 
 
Liabilities relinquished  
 
 
 
 
 
 
 
Trade creditors
-
-
-
(80)
Other payables
-
-
-
(25)
Employee provisions
-
(190)
-
(1,988)
Other provisions
-
-
-
(26)
Total liabilities relinquished
-
(190)
-
(2,119)
Net assets relinquished 6
-
-
-
625

1. Privacy and Freedom of Information (FOI) Reform function was assumed from the Department of Prime Minister and Cabinet (PM&C) on 19 October 2011 due to a restructuring of administrative arrangements. (The Department received $0.332m from PM&C for payment of employee leave liabilities.  This was transferred to AGD within Appropriation Act (No. 1) 2011-2012.)

2. Cyber Security Policy function was relinquished to the Department of Prime Minister and Cabinet on 14 December 2011 due to a restructuring of administrative arrangements.

3. The Australian Government Disaster Recovery Payment (AGDRP) function was assumed from the Department of Families, Housing, Community Services and Indigenous Affairs on 14 October 2010 due to a restructuring of administrative arrangements.

4. Services to Territories and Good governance to the Australian Territories through the maintenance and improvements of the overarching legislative framework for the self-governing territories, and laws and services for the non-self-governing territories functions were relinquished to the Department of Regional Australia on 14 September 2010 due to a restructuring of administrative arrangements.

5. The net liabilities assumed from all entities were $0.459m (2010-11: $0.044m).

6. The net assets relinquished to all entities were nil. (2010-11: $0.625m).

Note 10B: Administered restructuring

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
   $'000  $'000 Australian Government Disaster Recovery Payment
Department of Families, Housing, Community Services and Indigenous Affairs 1
$'000
Good governance to the Australian Territories through the maintenance and improvements of the overarching legislative framework for the self-governing territories, and laws and services for the non-self-governing territories
Department of Regional Australia, Regional Development and Local Government 2
$'000
Functions assumed
 
 
 
 
 
 
Assets recognised
 
 
 
 
 
 
Appropriation receivable
-
-
-
-
Personal benefits receivable
-
-
299
-
Total assets recognised
-
-
299
-
 
 
 
 
 
Liabilities recognised
 
 
 
 
Employee provisions
-
-
-
-
Total liabilities recognised
-
-
-
-
Net assets assumed 3
-
-
299
-
 
 
 
 
 
 
Expenses
 
 
 
 
 
 
Recognised by the Attorney-General's Department 1
 -
 -
907,926
-
Recognised by the Department of Families, Housing, Community Services and Indigenous Affairs 1
 -
 -
10,413
-
Total expenses
 -
 -
918,339
-
 
 
 
 
 
Functions relinquished
 
 
 
 
Assets relinquished
 
 
 
 
Cash
 -
 -
-
22
Loans and receivables
 -
 -
-
87,050
Land and buildings
 -
 -
-
227,507
Infrastructure, plant and equipment
 -
 -
-
435,315
Intangibles
 -
 -
-
3,016
Inventories
 -
 -
-
1,908
Other
 -
 -
-
1
Total assets relinquished
 -
 -
-
754,819
 
 
 
 
 
Liabilities relinquished
 
 
 
 
Trade creditors
 -
 -
-
(11,811)
Grants
 -
 -
-
(3,516)
Other payables
 -
 -
-
(92)
Employee provisions
 -
 -
-
(1,815)
Asbestos removal provision
 -
 -
-
(6,912)
Phosphate mine rehabilitation provision
 -
 -
-
(2,984)
Total liabilities relinquished
-
-
-
(27,130)
Net assets relinquished 4
 -
 -
-
727,689

1. The Australian Government Disaster Recovery Payment (AGDRP) function was assumed from the Department of Families, Housing, Community Services and Indigenous Affairs on 14 October 2010 due to a restructuring of administrative arrangements.

2. Services to Territories and Good governance to the Australian Territories through the maintenance and improvements of the overarching legislative framework for the self-governing territories, and laws and services for the non-self-governing territories functions were relinquished to the Department of Regional Australia on 14 September 2010 due to a restructuring of administrative arrangements.

3. The net assets assumed from all entities were nil (2010-11: $0.299m).

4. The net assets relinquished to all entities were nil. (2010-11: $727.689m).

Note 11: Cash flow reconciliation

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
 
 
 
 
 
 
 
Cash and cash equivalents as per:
 
 
 
Cash Flow Statement
5,021
3,971
Balance Sheet
5,021
3,971
Difference
-
-
 
 
 
 
Reconciliation of net cost of services to net cash from operating activities:
 
 
 
Net cost of services
(283,446)
(236,591)
Add revenue from Government
205,655
218,819
 
 
 
 
Adjustments for non-cash items
 
 
 
Depreciation/amortisation
22,429
18,139
Impairment of financial instruments
(14)
18
Loss on revaluation of assets
152
-
Transfer of assets
38,340
-
Write-down of property, plant and equipment
16
170
Unwinding of makegood
(360)
37
 
 
 
 
Gain
 
 
 
 
 
 
 
Changes in assets and liabilities
 
 
 
(Increase)/decrease in net receivables
21,311
172
(Increase)/decrease in prepayments
(1,871)
(1,390)
(Increase)/decrease in inventories
59
13
Increase/(decrease) in employee provisions
7,106
2,769
Increase/(decrease) in supplier payables
25,795
2,290
Increase/(decrease) in other payables
2,714
(2,847)
Increase/(decrease) in other provisions
4,089
196
Net cash from operating activities
41,975
1,795

Note 12:  Contingent assets and liabilities

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    Claims for
damages or costs

Total
    2012 2011 2012 2011
    $'000 $'000 $'000 $'000
Contingent assets
 
 
 
 
 
 
Balance from previous period
42
-
42
-
New  
10
42
10
42
Re-measurement
43
-
43
-
Total contingent assets
95
42
95
42
   
 
 
 
 
 
 
Contingent liabilities
 
 
 
 
 
 
Balance from previous period
(88)
-
(88)
-
New  
(368)
(88)
(368)
(88)
Re-measurement
(25)
-
(25)
-
Liabilities recognised
13
-
13
-
Total contingent liabilities
(468)
(88)
(468)
(88)
Net contingent liabilities
(373)
(46)
(373)
(46)

 

Quantifiable contingencies

The Department estimates $468,000 of contingent liabilities in respect to claims for damages/costs (2011: $88,000). This amount represents an estimate of the Department's liability based on precedent in such cases.  The Department is defending the claims.

The Department estimates $95,000 of contingent assets in respect of claims for damages/costs (2011: $42,000).  This amount represents the Department's estimate of claims against persons/organisations based on ongoing cases.  The estimate is based on precedent in such cases.

Unquantifiable contingent liabilities

The Department is party to a number of civil litigation matters arising out of its statutory duty to administer the laws for which it is responsible. As at the date of this report there are no matters where costs have been awarded against the Department.

Unquantifiable contingent assets

Conversely, the Department, like any other party to civil litigation may be entitled to recover costs arising out of such litigation if it is successful. There are no matters at the date of this report where the Department reasonably expects to have an award of costs in its favour.

Future compensation claims

The “Scheme for Compensation for Defective Administration” (CDDA) allows agencies to provide compensation to persons who have been adversely affected by their maladministration, but who have no legal means to seek redress, such as a legal claim. It is not possible to estimate the value of future CDDA claims. The value of claims paid under this scheme during the financial year is disclosed at Note 30.

Note 13: Senior executive remuneration

Note 13A: Senior executive remuneration expense for the reporting period

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $ $
Short-term employee benefits:
 
 
 
Salary (including annual leave taken)
(11,624,813)
(11,627,212)
Annual leave accrued
(129,506)
(232,294)
Other
(1,158,372)
(1,213,942)
Total short-term employee benefits
(12,912,691)
(13,073,448)
 
 
 
 
Post-employment benefits
 
 
 
Superannuation
(2,313,672)
(2,053,168)
Total post-employment benefits
(2,313,672)
(2,053,168)
 
 
 
 
Other long-term benefits
 
 
 
Long service leave
(381,096)
(552,313)
Total other long-term benefits
(381,096)
(552,313)
 
 
 
 
Termination benefits
(269,679)
-
Total employment benefits
(15,877,138)
(15,678,929)

Notes:

1. Note 13A was prepared on an accrual basis (therefore the performance bonus expenses disclosed above differ from the cash 'Bonus paid' in Note 13B).

2. Other includes motor vehicle, other allowances and reportable fringe benefits.

3. Note 13A excludes acting arrangements and part-year services where remuneration expensed is less than $150,000.

Note 13B: Average annual remuneration packages and bonus paid for substantive senior executives during the reporting period

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012
Average annual reportable remuneration 1 Senior
Executive
Officers
No.
Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4
$
Bonus paid 5
$
Total
Total remuneration (including part-time arrangements):            
less than $150,000 14
58,427
16,322
74,749
$150,000 to $179,999 5
123,438
35,863
159,301
$180,000 to $209,999 26
165,569
36,242
201,811
$210,000 to $239,999 20
183,448
36,817
6,534
226,799
$240,000 to $269,999 8
215,659
42,554
258,213
$270,000 to $299,999 6
225,415
56,574
281,989
$300,000 to $329,999 2
268,720
42,974
252
311,946
$330,000 to $359,999 1
276,029
67,383
343,412
$510,000 to $539,999 1
470,747
50,000
5,062
525,809
     
 
 
 
 
 
 
 
 
 
Total 83  
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
  2011
Average annual reportable remuneration 1 Senior
Executive
Officers
No.
Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4
$
Bonus paid 5
$
Total
Total remuneration (including part-time arrangements):            
less than $150,000 12
66,720
12,812
16,492
96,024
$150,000 to $179,999 6
125,030
36,767
14,080
175,877
$180,000 to $209,999 15
166,890
28,275
6,647
9,421
211,233
$210,000 to $239,999 25
171,961
36,602
342
12,538
221,443
$240,000 to $269,999 6
190,353
51,671
17,729
259,753
$270,000 to $299,999 8
209,786
52,917
18,495
281,198
$300,000 to $329,999 1
262,218
42,465
18,565
323,248
$330,000 to $359,999 1
300,480
56,815
357,295
$480,000 to $509,999 1
435,015
50,000
4,296
489,311
     
 
 
 
 
 
 
 
 
 
Total 75  
 
 
 
 
 
 
 
 
 

Notes:

1. This table reports substantive senior executives who received remuneration during the reporting period.  Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:
a) gross payments; and
b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits).

3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per individuals' payslips.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5. There were no 'bonus paid' in 2011-12.   In 2010-11 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits.  Salary sacrifice benefits are reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.

Note 13C: Other highly paid staff

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012
Average annual reportable remuneration 1 Highly
Paid
Staff
No.
Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4
$
Bonus paid 5
$
Total
$
Total remuneration (including part-time arrangements):            
$150,000 to $179,999 38
132,576
24,487
598
157,661
$180,000 to $209,999 6
167,703
24,495
192,198
$210,000 to $239,999 5
199,012
24,134
85
223,231
$240,000 to $269,999 1
143,653
21,626
93,779
259,058
$270,000 to $299,999 3
251,139
23,011
274,150
     
 
 
 
 
 
 
 
 
 
Total 53  
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
  2011
Average annual reportable remuneration 1 Highly
Paid
Staff
No.
Reportable salary 2
$
Contributed superannuation 3
$
Reportable allowances 4
$
Bonus paid 5
$
Total
$
Total remuneration (including part-time arrangements):    
 
 
 
 
 
 
 
 
 
$150,000 to $179,999 23
128,491
26,346
2,963
427
158,227
$180,000 to $209,999 3
136,761
35,514
21,544
2,853
196,672
$210,000 to $239,999 4
166,254
30,259
16,433
4,527
217,473
$240,000 to $269,999 4
148,648
25,668
81,786
256,102
$270,000 to $299,999 2
189,106
39,371
56,531
285,008
$330,000 to $359,999 1
239,370
38,311
60,000
337,681
     
 
 
 
 
 
 
 
 
 
Total 37  
 
 
 
 
 
 
 
 
 

Notes:

1. This table reports staff:
a) who were employed by the Department during the reporting period;
b) whose reportable remuneration was $150,000 or more for the financial period; and
c) were not required to be disclosed in Tables A or B.
Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:
a) gross payments;
b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits); and
c) exempt foreign employment income.

3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per individuals' payslips.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5. There were no 'bonus paid' in 2011-12.   In 2010-11 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band.

6. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits.  Salary sacrifice benefits are reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.

Note 14: Remuneration of auditors

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
 
 
 
 
Financial statement audit services were provided free of charge to the Department.
 
 
 
 
 
 
 
The fair value of services provided was:
405
340
 
 
 
 

No other services were provided by the auditors of the financial statements.

Note 15:  Financial instruments

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

15A: Categories of financial instruments

 
 
 
 
Financial assets  
 
 
 
Loans and receivables:  
 
 
 
Cash and cash equivalents 5A
5,021
3,971
Goods and services receivable 5B
9,558
4,990
Carrying amount of financial assets  
14,579
8,961
   
 
 
 
Financial liabilities  
 
 
 
At amortised cost:  
 
 
 
Trade creditors 7A
43,740
17,942
Finance leases 8A
-
658
Carrying amount of financial liabilities  
43,740
18,600
   
 
 
 

15B:  Net income and expense from financial assets

 
 
 
 
Loans and receivables  
 
 
 
Impairment 3E
14
(18)
Net gain/(loss) from loans and receivables  
14
(18)
   
 
 
 

15C:  Net income and expense from financial liabilities

 
 
 
 
Financial liabilities - at amortised cost  
 
 
 
Interest expense 3D
(37)
(180)
Net gain/(loss) from financial liabilities - at amortised cost  
(37)
(180)

15D: Fair value of financial assets and liabilities

The Department considers that the carrying amounts of financial instruments reported in the balance sheet are a reasonable approximation of fair value.

15E: Credit risk

The Department is exposed to minimal credit risk as loans and receivables are cash and 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 trade receivables of $9,558,398 in 2012 (2011: $4,989,927).  The Department has assessed the risk of default on payment and has assessed the risk of default on payment and has allocated $20,237 in 2012 (2011: $35,997) to an impairment allowance account. This amount  has been determined following an assessment of invoices greater than 90 days past due.

The Department has policies and procedures that guide employees in debt recovery techniques that are to be applied.

The following table illustrates the Department's gross exposure to credit risk, excluding any collateral or credit enhancements.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
Loans and receivables  
 
 
 
Cash and cash equivalents 5A
5,021
3,971
Trade receivables 5B
9,558
4,990
Total  
14,579
8,961

 

The Department holds no collateral to mitigate against credit risk.

Credit quality of financial instruments not past due or individually determined as impaired:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Not Past Due Nor Impaired 2012 Not Past
Due Nor Impaired
2011
Past due
or impaired
2012
Past due
or impaired
2011
  $'000 $'000 $'000 $'000
Loans and receivables  
 
 
 
 
 
 
 
Cash and cash equivalents
5,021
3,971
-
-
Trade receivables
6,617
4,268
2,941
722
Total
11,638
8,239
2,941
722
   
 
 
 
 
 
 
 

Ageing of financial assets that were past due but not impaired for 2012:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Loans and receivables  
 
 
 
 
 
 
 
Trade receivables
1,338
765
197
621
Total
1,338
765
197
621

Ageing of financial assets that were past due but not impaired for 2011:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Loans and receivables  
 
 
 
 
 
 
 
Trade receivables
408
44
107
127
Total
408
44
107
127

15F: Liquidity risk

The Department's financial liabilities are trade creditors and finance leases.  The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities.

This is highly unlikely due to appropriation funding and other funding mechanisms available to the Department (eg Advance to the Finance Minister) to ensure it has adequate funds to meet payments as they fall due.  In addition, the Department has policies in place to ensure timely payments are made when due and has no past experience of default.

Maturities for non-derivative financial liabilities 2012

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Notes On
demand
2012
$'000
within
1 year
2012
$'000
1 to 5
years
2012
$'000
>5
years
2012
$'000
Financial liabilities at amortised cost    
 
 
 
 
 
 
 
Trade creditors 7A
-
43,740
-
-
Total  
-
43,740
-
-
     
 
 
 
 
 
 
 
Maturities for non-derivative financial liabilities 2011  
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
  Notes On
demand
2011
$'000
within
1 year
2011
$'000
1 to 5
years
2011
$'000
>5
years
2011
$'000
Financial liabilities at amortised cost    
 
 
 
 
 
 
 
Finance leases 8A
-
658
-
-
Trade creditors 7A
-
17,942
-
-
Total  
-
18,600
-
-

 

15G: Market risk

The Department holds basic financial instruments that do not expose it to market risks.  The Department is not exposed to 'Currency risk' or 'Other price risk'.

Interest rate risk

The only interest-bearing items on the Balance Sheet are finance leases.  All bear interest at a fixed interest rate and will not fluctuate due to changes in the market interest rate.

Note 16:  Financial assets reconciliation

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
Financial assets
 
 
 
 
 
 
 
Total financial assets as per balance sheet
88,398
108,643
Less: non-financial instrument components
 
 
 
Appropriation receivable
70,813
97,946
GST receivable from the Australian Taxation Office
3,009
1,621
Other
17
151
Impairment allowance
(20)
(36)
Total non-financial instrument components
73,819
99,682
Total financial assets as per financial instruments note
14,579
8,961

Note 17:  Administered - expenses 1

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

17A: Employee benefits

 
 
 
 
Wages and salaries  
871
2,003
Leave and other entitlements  
10
275
Superannuation:  
 
 
 
Defined benefit plans  
-
6
Defined contribution plans  
137
327
Other employee benefits  
17
448
Total employee benefits  
1,035
3,059
   
 
 
 

17B: Suppliers 2

 
 
 
 
Goods and services  
 
 
 
Consultants and contractors  
3,023
13,432
Administration of Territories  
-
11,628
Training and equipment purchases  
14,148
15,402
Travel  
340
529
Information technology and communications  
3,915
230
Emergency Management Australia payments to the States  
-
6,652
Contribution to Family Court of Western Australia operations  
18,762
18,170
General office  
7,234
20,409
Total goods and services  
47,422
86,452
   
 
 
 
Goods and services are made up of:  
 
 
 
Provision of goods - related entities  
101
443
Provision of goods - external parties  
8,218
12,858
Rendering of services - related entities  
10,933
8,788
Rendering of services - external parties  
28,170
64,363
Total goods and services  
47,422
86,452
   
 
 
 
Other supplier expenses  
 
 
 
Minimum lease payments  
-
528
Total other supplier expenses  
-
528
Total supplier expenses  
47,422
86,980
   
 
 
 

17C: Subsidies

 
 
 
 
Payable to external parties:  
 
 
 
Law Courts Limited  
2,426
9,698
Services to Indian Ocean Territories  
-
26
Total subsidies  
2,426
9,724
   
 
 
 

17D: Personal benefits 3

 
 
 
 
Direct:  
 
 
 
Australian Government Disaster Recovery Payments  
79,879
829,123
Payments to victims of natural disasters  
181
149,692
Former Solicitor Generals Pension - interest cost  
300
-
Federal Proceedings Cost Act  
741
827
Total personal benefits  
81,101
979,642
   
 
 
 

17E: Grants 2

 
 
 
 
Public sector:  
 
 
 
Australian Government entities (related entities)  
7,238
9,667
State and Territory Governments  
1,449
9,044
Local Governments  
3,722
4,322
Private sector:  
 
 
 
Non-profit organisations  
144,187
137,459
Other private sector  
15,555
15,593
Overseas  
4,806
6,965
Other grants:  
 
 
 
Family relationship support payments  
152,094
152,207
Other grants  
44,727
51,962
Total grants  
373,778
387,219
   
 
 
 

17F: Depreciation and amortisation

 
 
 
 
Depreciation:  
 
 
 
Buildings  
-
1,459
Property, plant and equipment  
2,642
8,037
Heritage and cultural assets  
-
112
Total depreciation  
2,642
9,608
   
 
 
 
Amortisation:  
 
 
 
Intangibles: Phosphate mine lease  
-
86
Intangibles: Software  
241
313
Total amortisation  
241
399
Total depreciation and amortisation  
2,883
10,007
   
 
 
 

17G: Write-down and impairment of assets

 
 
 
 
Asset write-downs and impairments from:  
 
 
 
Impairment on financial instruments  
-
8
Impairment on personal benefit recoveries  
1,571
951
Impairment of property, plant and equipment  
25
7
Impairment of intangibles  
-
280
Total write-down and impairment of assets  
1,596
1,246
   
 
 
 

17H: Payments to CAC bodies 4

 
 
 
 
Australian Institute of Criminology  
-
6,770
Australian Law Reform Commission  
-
3,152
Criminology Research Council  
-
205
Total payments to CAC bodies  
-
10,127
   
 
 
 

17I: Transfer of assets

 
 
 
 
Assets transferred free of charge 5  
-
7,219
Total other expenses  
-
7,219

1 The 2010-11 comparatives include three months expenditure relating to the administration of the Australian Territories functions which were transferred to the Department of Regional Australia, Regional Development and Local Government effective from 1 October 2010 (Note 10B refers).

2 During 2011-12, the Department reclassified payments made to the Family Court of Western Australia from 'grants to State and Territory Governments' to supplier expenses as these payments did not meet the definition of a grant.  Comparatives have been restated accordingly.

3 The prior year comparative shows payments made to individuals under the Australian Government Disaster Recovery Program (AGDRP), Disaster Income Recovery Subsidy (DIRS) Program and New Zealand residents under the DIRS program in response to the 2010-11 natural disaster events.

4 On 17 December 2010, the Australian Institute of Criminology, the Australian Law Reform Commission and the Criminology Research Council became prescribed agencies under the Financial Management and Accountability Act 1997 with effect from 1 July 2011. No payments were made to these agencies by the Department in 2011-12.

5 No transfer of assets occurred in 2011-12. (The transfer of assets for 2010-11 relates to the transfer of the Australian Ministerial Briefing Room which was transferred from the Attorney-General's Department to the Department of Prime Minister and Cabinet ($1.0m) and the Department of Parliamentary Services ($6.219m).)

Note 18:  Administered - income 1

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
OWN-SOURCE REVENUE  
 
 
 
   
 
 
 
Taxation revenue  
 
 
 

18A: Other taxes

 
 
 
 
Levies - Christmas Island conservation  
-
361
   
 
 
 
Non-taxation revenue  
 
 
 
   
 
 
 

18B: Sale of goods and rendering of services

 
 
 
 
Sale of goods - external parties  
-
222
Rendering of services - related entities  
185
380
Rendering of services - external parties  
5,613
10,696
Total sale of goods and rendering services  
5,798
11,298
   
 
 
 

18C: Fees and fines

 
 
 
 
Fees - IOT vehicle registration, licences and programmes  
-
867
   
 
 
 

18D: Interest

 
 
 
 
Loans - State and Territory Government  
2,061
3,441
Other loans  
-
119
Total interest  
2,061
3,560
   
 
 
 

18E: Dividends

 
 
 
 
Australian Government entities - Australian Government Solicitor  
7,000
5,858
   
 
 
 

18F: Rental income

 
 
 
 
Rent - IOT domestic and commercial properties  
-
973
   
 
 
 

18G: Royalties

 
 
 
 
Mining royalties - Christmas Island phosphate mine lease  
-
562
   
 
 
 

18H: Competitive neutrality

 
 
 
 
Australian Government entities - Australian Government Solicitor  
4,929
4,872
   
 
 
 

18I: Recoveries 2

 
 
 
 
Personal benefit recoveries  
829
3,279
   
 
 
 

18J: Other non-taxation revenue

 
 
 
 
Recovery of unspent grant funding  
1,340
-
Torres Strait Regional Authority receipts  
600
-
Other revenue  
1
18
Total other revenue  
1,941
18

1 The 2010-11 comparatives include three months revenue relating to the administration of the Australian Territories functions which were transferred to the Department of Regional Australia, Regional Development and Local Government effective from 1 October 2010 (Note 10B refers).

2 The Department has an arrangement with the Department of Human Services (DHS) to provide claiming channels and claim processing arrangements in respect of disaster recovery payments.  The amount of $0.829m represents the value of recovery action undertaken by DHS.

Note 19:  Administered - financial assets

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012

19A: Cash and cash equivalents

 
 
 
 
Cash on hand or on deposit
-
169
   
 
 
 

19B: Loans and receivables

 
 
 
 
Goods and services:  
 
 
 
Goods and services receivable - related entities
70
31
Goods and services receivable - external parties
2,544
2,195
Total receivables for goods and services
2,614
2,226
   
 
 
 
Advances and loans 1:  
 
 
 
State and Territory Governments
37,588
36,029
Total advances and loans
37,588
36,029
   
 
 
 
Other receivables:  
 
 
 
Other
646
418
Personal benefit recoveries 2
3,001
3,578
GST receivable from Australian Taxation Office
3,343
3,446
Total other receivables
6,990
7,442
Total receivables (gross)
47,192
45,697
   
 
 
 
Less: impairment allowance account:  
 
 
 
Goods and services
-
(1)
Personal benefit recoveries
(2,521)
(950)
Total impairment allowance account
(2,521)
(951)
Total trade and other receivables (net)
44,671
44,746
   
 
 
 
Receivables are expected to be recovered in:  
 
 
 
No more than 12 months
44,671
44,746
Total trade and other receivables (net)
44,671
44,746
   
 
 
 
Receivables were aged as follows:  
 
 
 
Not overdue
43,637
42,102
Overdue by:  
 
 
 
0 to 30 days
208
-
31 to 60 days
342
1
61 to 90 days
-
1
More than 90 days
3,005
3,593
Total receivables (gross)
47,192
45,697
   
 
 
 
The impairment allowance account is aged as follows:  
 
 
 
Overdue by:  
 
 
 
31 to 60 days
-
(1)
More than 90 days
(2,521)
(950)
Total impairment allowance account
(2,521)
(951)

Credit terms were within 30 days (2011: 30 days).

1 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.

2 This amounts represents recovery action undertaken by Department of Human Services.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
Reconciliation of the Impairment Allowance Account:      
Movements in relation to 2012      
  Goods and services Personal benefit
recovery
Total
  $'000 $'000 $'000
Opening balance
1
950
951
    Amounts recovered and reversed
(1)
-
(1)
   Increase recognised in net deficit
-
1,571
1,571
Closing balance
-
2,521
2,521
 
 
 
 
 
 
Movements in relation to 2011
 
 
 
 
 
Opening balance
166
-
166
Amounts transferred under restructuring of administrative arrangements
(166)
-
(166)
   Increase recognised in net deficit
1
950
951
Closing balance
1
950
951
     
 
 
 

19C: Investments

   
 
 
 
Investments in associates:    
 
 
 
Australian Institute of Criminology 1  
-
1,918
Australian Government Solicitor  
44,354
46,100
Australian Law Reform Commission 1  
-
1,062
Criminology Research Council 1  
-
879
High Court of Australia  
225,342
222,825
Investments in jointly controlled entities:    
 
 
 
Law Courts Limited  
106,794
123,268
Total investments  
376,490
396,052
     
 
 
 
Investments expected to be recovered in:    
 
 
 
   More than 12 months  
376,490
396,052
Total investments  
376,490
396,052
     
 
 
 
Details of investments    
 
 
 
     
 
 
 
  Ownership
    2012 2011
Name of entity  
%
%
Jointly controlled entities:    
 
 
 
Law Courts Limited 2  
45.7
50.1
Associates:    
 
 
 
Australian Institute of Criminology  
-
100
Australian Government Solicitor  
100
100
Australian Law Reform Commission  
-
100
Criminology Research Council  
-
100
High Court of Australia  
100
100

1 On 17 December 2010, the Australian Institute of Criminology, the Australian Law Reform Commission and the Criminology Research Council became prescribed agencies under the Financial Management and Accountability Act 1997 with effect from 1 July 2011. The Department's investment in these entities was fully impaired at 1 July 2011.

2 The published fair value for the investment in Law Courts Limited is $106.794m (2011: $123.268m).

This note should be read in conjunction with Note 25.

Note 20:  Administered - non-financial assets

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

20A: Property, plant and equipment

 
 
 
 
Other property, plant and equipment:  
 
 
 
Fair value  
5,417
11,642
Accumulated depreciation  
(146)
(5,663)
Total other property, plant and equipment 20B
5,271
5,979
Total property, plant and equipment  
5,271
5,979

No indicators of impairment were found for property, plant and equipment.

No property, plant or equipment is expected to be sold or disposed of within the next 12 months.

Revaluation of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1.  A revaluation of property, plant and equipment was undertaken by an independent valuer with effect from 30 June 2012.

A revaluation increment of $581,234 (2011: nil increment/decrement) for property, plant and equipment was credited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

Note 20B: Reconciliation of the opening and closing balances of property, plant and equipment (2011-12)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Land Buildings Total  land
and buildings
Heritage
and
cultural 1
Other
property,
plant & equipment
Total
  $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2011            
Gross book value
-
-
-
-
11,642
11,642
Accumulated depreciation and impairment
-
-
-
-
(5,663)
(5,663)
Net book value 1 July 2011
-
-
-
-
5,979
5,979
   
 
 
 
 
 
 
 
 
 
 
 
Additions:  
 
 
 
 
 
 
 
 
 
 
 
By purchase
-
-
-
-
1,666
1,666
Revaluation and impairments recognised through other comprehensive income
-
-
-
-
581
581
Depreciation expense
-
-
-
-
(2,642)
(2,642)
Other movements 2  
 
-
-
-
(287)
(287)
Disposals  
 
 
 
 
 
 
 
 
 
 
 
Other - infrastructure, plant and equipment
-
-
-
-
(26)
(26)
Net book value 30 June 2012
-
-
-
-
5,271
5,271
   
 
 
 
 
 
 
 
 
 
 
 
Net book value as of 30 June 2012 represented by:  
 
 
 
 
 
 
 
 
 
 
 
Gross book value
-
-
-
-
5,417
5,417
Accumulated depreciation and impairment
-
-
-
-
(146)
(146)
Net book value 30 June 2012
-
-
-
-
5,271
5,271

1 Land, buildings and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

2 Other movements relate to the capitalisation of an Asset Under Construction to an Internally Developed Software Asset.

Reconciliation of the opening and closing balances of property, plant and equipment (2010-11)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Land Buildings Total  land
and buildings
Heritage
and
cultural 1
Other
property,
plant &
equipment
Total
  $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2010  
 
 
 
 
 
 
 
 
 
 
 
Gross book value
82,241
146,248
228,489
66,550
370,745
665,784
Accumulated depreciation and impairment
-
(67)
(67)
(2)
(3,256)
(3,325)
Net book value 1 July 2010
82,241
146,181
228,422
66,548
367,489
662,459
   
 
 
 
 
 
 
 
 
 
 
 
Additions:  
 
 
 
 
 
 
 
 
 
 
 
By purchase
154
390
544
-
22,632
23,176
Other movements: assets transferred to Department of Regional Australia, Regional Development & Local Government
1,625
(390)
1,235
-
-
1,235
Other movements 2
-
-
-
-
(7,219)
(7,219)
Depreciation expense
-
(1,459)
(1,459)
(112)
(8,037)
(9,608)
Disposals  
 
 
 
 
 
 
 
 
 
 
 
From disposal of entities or operations (including restructuring)
(82,395)
(145,112)
(227,507)
(66,436)
(368,879)
(662,822)
Other
(1,625)
390
(1,235)
-
(7)
(1,242)
Net book value 30 June 2011
-
-
-
-
5,979
5,979
   
 
 
 
 
 
 
 
 
 
 
 
Net book value as of 30 June 2011 represented by:  
 
 
 
 
 
 
 
 
 
 
 
Gross book value
-
-
-
-
11,642
11,642
Accumulated depreciation and impairment
-
-
-
-
(5,663)
(5,663)
Net book value 30 June 2011
-
-
-
-
5,979
5,979

1 Land, buildings and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

2 This represents the transfer of the Australian Ministerial Briefing Room and critical components of the Crisis Coordination Centre from the Attorney-General's Department to the Department of Prime Minister and Cabinet ($1.0m) and the Department of Parliamentary Services ($6.219m).

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Note $'000 $'000

20C: Intangibles

 
 
 
 
Computer software:  
 
 
 
Internally developed - in use  
287
-
Purchased  
1,318
1,105
Total computer software (gross)  
1,605
1,105
Accumulated amortisation  
(736)
(495)
Total computer software (net)  
869
610
Total intangibles 20D
869
610

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 20D: Reconciliation of the opening and closing balances of intangibles (2011-12)

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Computer
software
internally
developed
Computer
software
purchased
Phosphate
mine lease
Total
  $’000 $’000 $’000 $’000
As at 1 July 2011  
 
 
 
 
 
 
 
Gross book value
389
1,105
-
1,494
Accumulated amortisation and impairment
(389)
(495)
-
(884)
Net book value 1 July 2011
-
610
-
610
   
 
 
 
 
 
 
 
Additions:  
 
 
 
 
 
 
 
By purchase  
 
213
-
213
Internally developed
-
-
-
-
Amortisation
(29)
(212)
-
(241)
Other movements 1
287
-
-
287
Net book value 30 June 2012
258
611
-
869
   
 
 
 
 
 
 
 
Net book value as of 30 June 2012 represented by:  
 
 
 
 
 
 
 
Gross book value
676
1,318
-
1,994
Accumulated amortisation and impairment
(418)
(707)
-
(1,125)
Net book value 30 June 2012
258
611
-
869

1 Other movements relate to the capitalisation of an Asset Under Construction to an Internally Developed Software Asset.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
Reconciliation of the opening and closing balances of intangibles (2010-11)        
  Computer
software
internally
developed
Computer
software
purchased
Phosphate
mine lease
Total
  $’000 $’000 $’000 $’000
As at 1 July 2010  
 
 
 
 
 
 
 
Gross book value
373
1,245
3,000
4,618
Accumulated amortisation and impairment
(22)
(307)
-
(329)
Net book value 1 July 2010
351
938
3,000
4,289
   
 
 
 
 
 
 
 
Additions:  
 
 
 
 
 
 
 
By purchase
-
-
-
Internally developed
16
-
-
16
Impairments recognised in operating result
(279)
(1)
-
(280)
Amortisation
(88)
(225)
(86)
(399)
Disposals:  
 
 
 
 
 
 
 
From disposal of entities or operations (including restructuring)
-
(102)
(2,914)
(3,016)
Net book value 30 June 2011
-
610
-
610
   
 
 
 
 
 
 
 
Net book value as of 30 June 2011 represented by:  
 
 
 
 
 
 
 
Gross book value
389
1,105
-
1,494
Accumulated amortisation and impairment
(389)
(495)
-
(884)
Net book value 30 June 2011
-
610
-
610

 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

20E: Other non-financial assets

 
 
 
 
Prepayments  
3,276
308
   
 
 
 
No indicators of impairment were found for other non-financial assets.  
 
 
 
   
 
 
 
Total other non-financial assets - are expected to be recovered in:  
 
 
 
No more than 12 months  
3,047
18
More than 12 months  
229
290
Total other non-financial assets  
3,276
308

Note 21:  Administered - payables

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

21A: Suppliers

   
 
 
 
Trade creditors and accruals  
3,811
2,461
     
 
 
 
Supplier payables expected to be settled within 12 months:    
 
 
 
Related entities  
16
9
External parties  
3,795
2,452
Total suppliers  
3,811
2,461
     
 
 
 
Supplier payables are current liabilities. Settlement is usually net 30 days.    
 
 
 
     
 
 
 

21B: Grants and subsidies

   
 
 
 
Public sector:    
 
 
 
Australian Government entities (related entities)  
647
4,957
State and Territory Governments  
15
314
Local Governments  
1,437
2,047
Private sector:    
 
 
 
Non-profit organisations  
2,953
3,358
Overseas  
275
-
Other  
764
10,023
Total grants and subsidies  
6,091
20,699
     
 
 
 
Total grants and subsidies - are expected to be settled in:    
 
 
 
No more than 12 months  
6,091
20,699
Total grants and subsidies  
6,091
20,699
     
 
 
 
Settlement is usually made according to the terms and conditions of each grant.  This is usually within 30 days of performance or eligibility.
   
 
 
 

21C: Other payables

 
 
 
 
Prepayments received/unearned income  
749
899
Salaries and wages  
-
12
Superannuation  
-
2
Other  
136
48
Total other payables  
885
961
   
 
 
 
Total other payables are expected to be settled in:  
 
 
 
No more than 12 months  
885
961
Total other payables  
885
961

Note 22:  Administered - provisions

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

22A: Employee provisions

 
 
 
 
Leave  
-
46
   
 
 
 
Employee provisions are expected to be settled in:  
 
 
 
No more than 12 months  
-
27
More than 12 months  
-
19
Total employee provisions  
-
46
   
 
 
 

22B: Superannuation provisions

 
 
 
 
Present value of defined benefit obligations at end of the year  
7,007
5,200
   
 
 
 
Personal benefits provisions are expected to be settled in:  
 
 
 
No more than 12 months  
400
400
More than 12 months  
6,607
4,800
Total personal benefits  
7,007
5,200

Accounting policy:

Actuarial gains and losses are recognised immediately in administered equity in the year in which they occur.

Scheme information:

Pension payments to former Solicitors-General are made under the Judges' Pension Scheme.  The Judges' Pension Scheme is a defined benefit scheme.  It provides 60% of the appropriate current judicial salary for eligible retired judges.  The scheme is unfunded.  Members do not contribute towards the cost of benefits.

Reconciliation of the present value of the defined benefit obligation:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
Net liability at 1 July  
5,200
5,100
Current service cost  
-
-
Interest cost  
300
300
Actuarial gains/(losses)  
1,900
200
Benefits paid  
(393)
(400)
Net liability at 30 June  
7,007
5,200
     
 
 
 
Reconciliation of the fair value of scheme assets:    
 
 
 
     
 
 
 
Opening fair value of scheme assets  
-
-
Employer contributions 1  
(393)
400
Benefits paid  
393
(400)
Closing fair value of scheme assets  
-
-

1 Employer contributions include appropriations from the Consolidated Revenue Fund.

Reconciliation of the net surplus/(deficit) to recognised assets and liabilities in the schedule of assets and liabilities administered on behalf of Government:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
As at 30 June
2012
$'000
30 June
2011
$'000
Defined benefit obligation
7,007
5,200
Net superannuation liability
7,007
5,200

Total expense recognised in the schedule of comprehensive income administered on behalf of Government:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
For the period ended 30 June
2012
$'000
30 June
2011
$'000
Interest cost
300
300
Net superannuation expense
300
300

Amounts recognised directly in administered equity:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
For the period ended 30 June
2012
$'000
30 June
2011
$'000
Actuarial gains/(losses)
(1,900)
(200)

Cumulative amount of actuarial gains and losses recognised in administered equity:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
For the period ended 30 June
2012
$'000
30 June
2011
$'000
Cumulative amount of actuarial gains/(losses)
(2,100)
(200)

Scheme assets:

The scheme is an unfunded arrangement with no assets.

Expected rate of return on scheme assets:

The expected return on assets assumption is not relevant as the scheme is an unfunded arrangement with no assets.

Principal actuarial assumptions at the balance sheet date:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
For the period ended 30 June
2012
$'000
30 June
2011
$'000
Discount rate
3.10%
5.30%
Expected salary increase rate
4.00%
4.00%
Expected pension increase rate
4.00%
4.00%

Other material assumptions:

The demographic assumptions used as at 30 June 2012 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2011.  The demographic assumptions used as at 30 June 2011 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2011.

Benefits payable (including payments of surcharge debt) under the Judges' Pension Act 1968 and the Superannuation (Productivity Benefit) Act 1988 are paid from Consolidated Revenue on an emerging (or pay as go) basis.  Thus contributions made equal benefits paid for the Judges' Pension Scheme (including former Solicitor-General's Pensions).

Historical information 1:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
For the period ended   30 June
2012
$'000
30 June
2011
$'000
30 June
2010
$'000
Present value of defined benefit obligation  
7,007
5,200
5,100
Surplus/(deficit) in scheme  
7,007
5,200
5,100
Experience adjustments gain/(loss) - scheme liabilities  
(1,900)
(100)
-

 

1 From 1 January 2010 responsibility for management of the Judges Pension Scheme (excluding the Former Solicitor-General's Pensions) was transferred to the Department of Finance and Deregulation.  Prior to this date the Department had responsibility for the whole function and it was reported as such.

The expected employer contributions in respect of 2012-13 are $450,000.

Funding arrangements for employer contributions:

Contribution recommendations

The Scheme is unfunded.  The defined benefits are not funded in advance.

Funding method

Where a benefit in the Scheme becomes payable, the Australian Government assumes responsibility for the payment from the Consolidated Revenue Fund.

Economic assumptions

The long-term economic assumptions adopted for the last actuarial review of the scheme as at 30 June 2008 were:

Expected rate of return on assets (discount rate) 3.1%  
Expected salary increase rate 4.0% + a promotional salary increase scale
Expected pension increase 4.0%  

 

Nature of asset/liability:

The Department has recognised a liability in the Schedule of Administered Assets and Liabilities in respect of its defined benefit superannuation arrangements administered on behalf of the Government.  The Former Solicitor-General's Pension Scheme does not impose a legal liability on the Department to cover any deficit that exists in the scheme.

The liability instead rests with the Australian Government.  The Government has established the Future Fund for the purpose of accumulating assets to help meet this liability.  The Future Fund is also intended to cover other superannuation unfunded liabilities including in relation to military schemes, Commonwealth public servants and Governors-General.

Note 23: Administered - cash flow reconciliation

Reconciliation of cash and cash equivalents as per Administered Balance Sheet to Administered Cash Flow Statement

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
Cash and cash equivalents as per:    
 
 
 
Schedule of administered cash flows  
-
169
Schedule of administered assets and liabilities  
-
169
Difference  
-
-
     
 
 
 
Reconciliation of net cost of services to net cash from operating activities:    
 
 
 
Net cost of services  
(487,683)
(1,463,575)
     
 
 
 
Adjustments for non-cash items    
 
 
 
Depreciation/amortisation  
2,883
10,007
Net write down of non-financial assets  
25
-
Actuarial loss - former Solicitor-General Pension  
(1,900)
(200)
     
 
 
 
Changes in assets and liabilities    
 
 
 
(Increase)/decrease in net receivables  
894
32,935
(Increase)/decrease in prepayments  
(2,968)
(302)
(Increase)/decrease in inventories  
-
2,008
Increase/(decrease) in employee provisions  
(46)
(1,822)
Increase/(decrease) in supplier payables  
1,639
(5,861)
Increase/(decrease) in grant payables  
(14,608)
1,668
Increase/(decrease) in other payables  
(76)
(794)
Increase/(decrease) in other provisions  
-
(11,105)
Net cash from operating activities  
(501,840)
(1,437,041)

Note 24: Administered - contingent assets and liabilities

Unquantifiable administered contingencies

Natural Disaster Relief and Recovery Arrangements (NDRRA)

Under the NDRRA, the Commonwealth provides States and Territories a scheme of loans assistance at a concessional interest rate to eligible small businesses and primary producers whose assets have been significantly damaged as a direct result of a natural disaster.

At balance date the Department is unable to reliably estimate the future value of these potential claims, and no provision for these claims has been recognised in the Administered financial statements.

The Department is party to a number of civil litigation matters arising out of its statutory duty to administer the laws for which it is responsible.  As at the date of this report there are no matters where costs have been awarded against the Department.

Conversely, the Department, like any other party to civil litigation may be entitled to recover costs arising out of such litigation if it is successful.  There are no matters at the date of this report where the Department reasonably expects to have an award of costs in its favour.

Future compensation claims

The "Scheme for Compensation for Defective Administration" (CDDA) allows agencies to provide compensation to person who have been adversely affected their maladministration, but who have no legal means to seek redress, such as a legal claim.  It is not possible to estimate the value of future CDDA claims.  The value of claims paid under this scheme during the financial year is disclosed at Note 30.

Note 25: Administered investments

The Australian Government owns 100% of the following entities:

  • High Court of Australia - s17 of the High Court of Australia Act 1996
  • Australian Government Solicitor - s55M of the Judiciary Act 1903

Law Courts Ltd is a company limited by guarantee and is jointly controlled by the Australian and NSW Governments.  The primary purpose of the company is to provide a courts facility being the joint Sydney Law Courts Building.  The building is currently undergoing a major refurbishment program.  The investment taken up by the Australian Government is based on the net assets of Law Courts Ltd, adjusted by the accumulated capital contributions made by the Australian Government to the company up to 30 June 2012.

The principal activities of each of the Department's administered investments are:

  • Law Courts Limited is a jointly controlled Australian Government/New South Wales company limited by guarantee established to manage the Sydney Law Courts Building
  • The High Court, as the highest court in Australian judicial system, interprets and applies the law of Australia, decides cases of special Commonwealth significance including challenges to the constitutional validity of laws, and hears appeals from Federal, State and Territory Governments
  • The Australian Government Solicitor is a Commonwealth Authority providing national legal services to the Government and its agencies in a contestable environment.

Note 26:  Administered - financial instruments

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

26A: Categories of financial instruments

 
 
 
 
Financial assets  
 
 
 
Loans and receivables:  
 
 
 
Cash and cash equivalents 19A
-
169
Trade receivables 19B
2,614
2,226
Loans 19B
37,588
36,029
Other receivables 19B
646
418
Personal benefit recoveries 19B
3,001
3,578
Available for sale:  
 
 
 
Investments 19C
376,490
396,052
Carrying amount of financial assets  
420,339
438,472
   
 
 
 
Financial liabilities  
 
 
 
At amortised cost  
 
 
 
Trade creditors 21A
3,811
2,461
Grants and subsidies payable 21B
6,091
20,699
Carrying amount of financial liabilities  
9,902
23,160
   
 
 
 

26B: Net income and expense from financial assets

 
 
 
 
Loans and receivables  
 
 
 
Interest revenue 18D
2,061
3,560
Impairment on financial instruments 17G
-
(8)
Impairment of personal benefit recoveries 17G
(1,571)
(951)
Net gain/(loss) from loans and receivables  
490
2,601
   
 
 
 
Available for sale  
 
 
 
Dividend revenue 18E
7,000
5,858
Net gain/(loss) from available for sale  
7,000
5,858
   
 
 
 
Net gain from  financial assets  
7,490
8,459

26C: Fair value of financial assets

The Department considers that the carrying amounts of financial instruments reported in the balance sheet are a reasonable approximation of fair value.

26D: Credit risk

The Administered activities of the Department are exposed to minimal credit risk as the majority of financial assets are trade receivables, advances and loans to State and Territory Governments, and shares in associated and Government controlled entities.  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 $43,848,663 (2011: $42,250,901).  The Department has assessed the risk of default on payment and has allocated $2,521,025 (2011: $951,171) to an impairment allowance account.  This amount has been determined following an assessment of invoices greater than 90 days.

The Department has policies and procedures that guide employees on debt recovery techniques that are to be applied.

The following table illustrates the Department's gross exposure to credit risk. The Department holds no collateral to mitigate credit risk.

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000
Loans and receivables  
 
 
 
Cash and cash equivalents 19A
-
169
Trade receivables 19B
2,614
2,226
Loans 19B
37,588
36,029
Other receivables 19B
646
418
Personal benefit recoveries 19B
3,001
3,578
Available for sale  
 
 
 
Investments 19C
376,490
396,052
Total  
420,339
438,472

 

Credit quality of financial instruments not past due or individually determined as impaired

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Not Past
Due Nor
Impaired
2012
$'000
Not Past
Due Nor
Impaired
2011
$'000
Past due
or
impaired
2012
$'000
Past due
or
impaired
2011
$'000
Loans and receivables
 
 
 
 
 
 
Cash and cash equivalents
-
169
-
-
Trade receivables
2,060
2,209
554
17
Loans
37,588
36,029
-
-
Other receivables
646
418
-
-
Personal benefit recoveries
-
-
3,001
3,578
Available for sale
 
 
 
 
 
 
Investments
376,490
396,052
-
-
Total
416,784
434,877
3,555
3,595

 

Ageing of financial assets that are past due but not impaired for 2012

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
Loans and receivables  
 
 
 
 
 
 
 
 
 
Trade receivables
208
342
-
4
554
Personal benefit recoveries
-
-
-
480
480
Total
208
342
-
484
1,034

Ageing of financial assets that are past due but not impaired for 2011

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
Loans and receivables  
 
 
 
 
 
 
 
 
 
Trade receivables
-
-
1
15
16
Personal benefit recoveries
-
-
-
2,628
2,628
Total
-
-
1
2,643
2,644

 

Trade receivables have been individually assessed for impairment by departmental officers.  Recovery of debt has been considered based on communication with the debtor, and where determined to be unrecoverable an allowance was recognised.

26E: Liquidity risk

The Department's financial liabilities are trade creditors, grants and subsidies payable.  The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities.  This is highly unlikely due to appropriation funding and mechanisms available to the Department (eg Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The Department receives appropriations and manages its funds to ensure it is able to meet its financial obligations as they fall due.  The Department also has policies in place to ensure timely payment of invoices and has no past history of default.

Maturities for non-derivative financial liabilities 2012

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Notes On
demand
2012
$'000
within
1 year
2012
$'000
1 to 5
years
2012
$'000
>5
years
2012
$'000
Total
2012
$'000
Liabilities at amortised cost    
 
 
 
 
 
 
 
 
 
Trade creditors 21A
-
3,811
-
-
3,811
Grants and subsidies payable 21B
-
6,091
-
-
6,091
Total  
-
9,902
-
-
9,902
     
 
 
 
 
 
 
 
 
 
Maturities for non-derivative financial liabilities 2011    
 
 
 
 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
  Notes On
demand
2011
$'000
within
1 year
2011
$'000
1 to 5
years
2011
$'000
>5
years
2011
$'000
Total
2011
$'000
Liabilities at amortised cost    
 
 
 
 
 
 
 
 
 
Trade creditors 21A
-
2,461
-
-
2,461
Grants and subsidies payable 21B
-
20,699
-
-
20,699
Total  
-
23,160
-
-
23,160

26F: Market risk

The Department holds basic financial instruments that do not expose the Department to market risks.  The Department is also not exposed to 'currency risk' or 'other price risk'.

Interest rate risk

The only interest-bearing items on the schedule of assets administered on behalf of Government are loans made to State and Territory Governments.  All those bearing interest are at a fixed interest rate that does not fluctuate due to changes in the market interest rate.  Those with variable interest rates are significantly concessional so that any movement in the market rate will not have a material impact on the carrying amount of the receivable.

26G: Concessional loans

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
Natural Disaster Relief and Recovery Arrangements  
 
 
 
Nominal value
50,429
48,949
Less: Unexpired discount
(4,529)
(5,315)
Principle repayment
(8,312)
(7,605)
Carrying value
37,588
36,029
   
 
 
 
Total Natural Disaster Relief and Recovery Arrangements
37,588
36,029

Note 27:  Administered financial assets reconciliation

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
Financial assets  
 
 
 
   
 
 
 
Total financial assets as per schedule of administered assets and liabilities
421,161
440,967
Less: non-financial instrument components  
 
 
 
GST receivable from the Australian Taxation Office
3,343
3,446
Impairment allowance
(2,521)
(951)
Total non-financial instrument components
822
2,495
Total financial assets as per financial instruments note
420,339
438,472

Note 28: Appropriations

Table A: Annual appropriations ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
 2012 Appropriations  
  Appropriation Act FMA Act      
  Annual Appropriation Appropriations reduced (1) AFM Section 30 Section 31 Section 32 Total appropriation Appropriation applied in 2012 (current and prior years) Variance
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services (2)
229,525
32,595
501
262,621
281,456
(18,835)
Other services  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity (3)
8,057
 
 
8,057
8,943
(886)
Total departmental
237,582
32,595
501
270,678
290,399
(19,721)
ADMINISTERED  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services (4)  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Administered items
429,683
(9,944)
809
 
 
420,548
426,363
(5,815)
Other services  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, ACT, NT and Local Governments
5,709
 
 
5,709
5,495
214
Administered assets and liabilities (5)
66,869
 
 
66,869
13,551
53,318
Total administered
502,261
(9,944)
809
 
 
493,126
445,409
47,717

Notes:

(1) Appropriations reduced under Appropriation Acts (No 1 & 3) 2011-12: sections 10,11, 12 and 15 and under Appropriation Acts (No 2 & 4 ) 2011-12: sections 12, 13, 14 and 17. (Refer Note 28F).

(2) The variance of appropriation for ordinary annual services represents expenditure of prior year appropriations for capital projects.

(3) The variance is due to the timing of expenditure for capital projects.

(4) The variance is the represents the payment of invoices received in 2011-12 financial year for expenses accrued in 2010-11 financial year.

(5) The variance relates to NDRRA loans to state governments which are awaiting approval.

  2011 Appropriations  
   Appropriation Act  FMA Act      
  Annual Appropriation Appropriations reduced (1) AFM Section 30 Section 31 Section 32 Total appropriation Appropriation applied in 2011 (current and prior years) Variance
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services (2)
242,408
 
 
28,150
(5,826)
264,732
266,860
(2,128)
Other services  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity (3)
8,773
 
 
8,773
5,853
2,920
Total departmental
251,181
28,150
(5,826)
273,505
272,713
792
ADMINISTERED  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Administered items
698,301
(65,615)
1,647
 
 
(101,483)
532,850
532,718
132
Payments to CAC Act bodies
10,127
 
 
10,127
10,127
Other services  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
States, ACT, NT and Local Governments (4)
7,608
(709)
 
 
6,899
10,413
(3,514)
Administered assets and liabilities
29,576
 
 
(11,209)
18,367
18,192
175
Total administered
745,612
(66,324)
1,647
 
 
(112,692)
568,243
571,450
(3,207)

 

(1) Appropriations reduced under Appropriation Acts (No 1 & 3) 2010-11: sections 10,11, 12 and 15 and under Appropriation Acts (No 2 & 4) 2009-10: sections 12, 13, 14 and 17. (Refer Note 28F).

(2) The variance of appropriation for ordinary annual services represents expenditure of prior year appropriations for capital projects.

(3) The variance is due to the timing of expenditure for capital projects.

(4) The variance is the represents the payment of invoices received in 2009-10 financial year for expenses accrued in 2008-09 financial year

Table B: Departmental and administered capital budgets ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 Capital Budget Appropriations Capital Budget Appropriation applied in 2012
(current and prior years)
 
  Appropriation Act FMA Act Total Capital Budget Appropriations        
  Annual Capital Budget Appropriations reduced 2 Section 32 Payments for non-financial assets 1 Payments for other purposes Total payments Variance
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services - Departmental Capital Budget 2
22,419
22,419
21,596
21,596
823
ADMINISTERED  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services - Administered Capital Budget 2
891
891
891
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Notes:

1 Payments made on non-financial assets include purchase of assets, expenditure on assets which has been capitalised, costs to make good an asset to its original condition, and the capital repayment component of finance leases.

2 Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No 1 & 3).  They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

  2011 Capital Budget Appropriations Capital Budget Appropriation applied in 2011
(current and prior years)
 
  Appropriation Act FMA Act Total Capital Budget Appropriations        
  Annual Capital Budget Appropriations reduced 2 Section 32 Payments for non-financial assets 1 Payments for other purposes Total payments Variance
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services - Departmental Capital Budget 2
17,036
17,036
8,102
8,102
8,934
ADMINISTERED  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ordinary annual services - Administered Capital Budget 2
9,871
9,871
8,742
8,742
1,129

 

Notes:

1 Payments made on non-financial assets include purchase of assets, expenditure on assets which has been capitalised, costs to make good an asset to its original condition, and the capital repayment component of finance leases.

2 Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No 1 & 3).  They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Table C: Unspent annual appropriations ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
Authority $'000 $'000
DEPARTMENTAL  
 
 
 
2006/07 Appropriation Act 3
1,541
1,731
2007/08 Appropriation Act 1
8,074
2007/08 Act 2 - Non Operating - Previous Years Outputs
2,105
2,105
2007/08 Appropriation (NTER) Act (no.1) 2007-2008
287
287
2008/09 Appropriation Act 1
578
27,979
2008/09 Appropriation Act 3
1,996
1,996
2008/09 Act 4 - Non Operating - Equity Injection
86
86
2009/10 Appropriation Act 1
5,385
4,653
2009/10 Act 2 - Non Operating - Previous Years Outputs
2,228
2,228
2009/10 Appropriation Act 3
79
79
2009/10 Act 4 - Non Operating - Previous Years Outputs
489
489
2010/11 Appropriation Act 1
16,506
36,354
2010/11 Appropriation Act 1 - Capital Budget (DCB)  - Non Operating
298
8,933
2010/11 Act 2 - Non Operating - Equity Injection
86
2,920
2010/11 Appropriation Act 3
32
32
2011/12 Appropriation Act 1
26,013
2011/12 Appropriation Act 1 - Capital Budget (DCB)  - Non Operating
3,757
2011/12 Act 2 - Non Operating - Equity Injection
621
2011/12 Appropriation Act 3
1,698
2011/12 Appropriation Act 3 - Capital Budget (DCB)  - Non Operating
5,700
2011/12 Act 4 - Non Operating - Equity Injection
1,327
Total
70,812
97,946
   
 
 
 
 
2012
2011
Authority
$'000
$'000
ADMINISTERED  
 
 
 
2006/07 Act 2 - Non Operating - Administered Assets and Liabilities
56,039
56,039
2007/08 Act 2 - Non Operating - Administered Assets and Liabilities
81
104
2007/08 Retained Prior Years Appropriation
2,596
2008/09 Act 2 - Non Operating - Administered Assets and Liabilities
5,015
5,015
2008/09 Retained Prior Years Appropriation
2,500
21,250
2009/10 Appropriation Act 1
9,309
2009/10 Act 2 - Non Operating - Administered Assets and Liabilities
3,541
9,453
2009/10 Appropriation Act 3
-
773
2009/10 Appropriation Act 4 - SPP
1,231
1,231
2010/11 Appropriation Act 1
8,491
2010/11 Appropriation Act 1 - Capital Budget (DCB)  - Non Operating
1,128
1,128
2010/11 Appropriation Act 3
1,790
57,149
2011/12 Appropriation Act 1
7,244
2011/12 Appropriation Act 1 - Capital Budget (DCB)  - Non Operating
891
2011/12 Appropriation Act 2 - SPP
214
2011/12 Act 2 - Non Operating - Administered Assets and Liabilities
11,055
Total
90,729
172,538

 

Table D: Special appropriations ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
      Appropriation Applied
      2012 2011
Authority Type Purpose $'000 $'000
National Firearms Program Implementation Act 1996 Unlimited To provide for financial assistance and other expenditure in connection with the implementation of the national firearms program.  All transactions under this Act are recognised as Administered items.
55
       
 
 
 
National Handgun Buyback Act 2003 1 Unlimited To provide for financial assistance for qualifying payments made by Sates and other expenditure in connection with the implementation of the handgun buyback and related purposes.
667
       
 
 
 
Law Officers Act 1964 2 Unlimited To make payments of pensions and benefits to former Solicitors General.  All transactions under this Act are recognised as Administered items.
393
       
 
 
 
Social Security (Administration) Act 1999 3 Unlimited To enable the payment of income support payments.  All transactions under this Act are recognised as Administered items.1
78,472
829,123
       
 
 
 
Financial Management and Accountability Act 1997 Refund To provide for payments under Section 28 of the FMA Act.  All transactions under this Act are recognised as Administered items.
8
2
     
 
 
Total    
79,540
829,180

 

1. One qualifying  payment was made during 2011-12.  (Nil in 2010-11).

2. On 1 January 2010 the Department of Finance and Deregulation (DoFD) assumed responsibility for payments under the Judges' Pensions Act 1968 which included pension payments to former Solicitors-General.  In 2010-11 DoFD made payments from the incorrect appropriation.  These payments were in breach of the Financial Management and Accountability Act 1997 as the payments should have been made from the Law Officers Act 1964.  In 2011-12 the Department provided DoFD with a valid drawing right to enable the payments to be made to former Solicitors-General.

3. The prior year comparative refelcts the substantial level of payments made to individuals under the Australian Government Disaster Recovery Program in response to the 2010-11 natural disasters.

The following Agencies have been issued with Drawing Rights, that permit them to spend money from the consolidated revenue fund on behalf of the Department:

  • Department of Human Services
  • Insolvency and Trustee Services Australia
  • Department of Families, Housing, Community Services and Indigenous Affairs

Table E: Disclosure by agent in relation to annual and special appropriations ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Australian Public Service Commission - Payments in relation to the Remuneration Tribunal Act 1973 s7(13) Remuneration (including salary) or allowances Department of Finance and Deregulation Parliamentary Entitlements Act 1990 s11, 5 (1)(b) and Parliamentary Entitlements Regulations 1997, Part 3 - Legal assistance to ministers
2012 $'000 $'000
Total receipts
3,536
76
Total payments
3,536
68
     
     
  Australian Public Service Commission- Payments in relation to the Remuneration Tribunal Act 1973 s7(13) Remuneration (including salary) or allowances Department of Finance and Deregulation Parliamentary Entitlements Act 1990 s11, 5 (1)(b) and Parliamentary Entitlements Regulations 1997, Part 3 - Legal assistance to ministers
2011 $'000 $'000
Total receipts
3,381
220
Total payments
3,379
218

 

Other Special Appropriations that had nil balances at the end of the 2011-12 financial year and where there were no transactions debited or credited to them during the 2011-12 financial year are:

  • Native Title Act 1993 Purpose: Payment of successful Native Title compensation claims
  • National Firearms Program Implementation Act 1998  Purpose: Payment of compensation for firearms surrendered in 3 External Territories
  • National Firearms Program Implementation Act 1997  Purpose: Payment of compensation for surrendered firearms not covered by the 1996 legislation (certain automatic weapons)
  • National Crime Authority (Status and Rights of former Chairman) Act 1984 Purpose: Payments of remuneration and allowances
  • High Court of Australia Act 1979 Purpose: Salary and Allowances of Judges
  • Judges (Long Leave Payments) Act 1979  Purpose: To make provision for long leave payments for judges
  • Federal Court of Australia Act 1976 Purpose: Salary and allowances of judges
  • Family Law Act 1975 Purpose: Salary and allowances of judges
  • Crimes (Superannuation Benefits) Act 1989 Purpose: Superannuation benefits paid or payable to or in respect of certain persons convicted of corruption offences
  • Commonwealth Places (Application of Laws) Act 1970 Purpose: Application and administration of laws in places acquired by the Commonwealth for public purposes
  • Classification (Publications, Films and Computer Games) Act 1995 Purpose: Payments to the States regarding costs of administering the scheme
  • Federal Magistrates Act 1999 Purpose: To make provision for death or invalidity benefits for judges

Table F: Reduction in administered items ('recoverable GST exclusive')

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    Amount required 2 - by Appropriation Act Total amount required 2 Total amount appropriated 3 Total reduction 4
  2012          
  Ordinary Annual Services Act (No.1) Act (No.3)      
  Outcome 1
410,894,000.00
8,845,000.00
419,739,000.00
429,683,000.00
9,944,000.00
             
  Other Services Act (No.2) Act (No.4)      
  Specific payments to States, ACT, NT and Local government        
  Outcome 1
5,709,000.00
0.00
5,709,000.00
5,709,000.00
0.00
             
             
  1. Administered items for 2012 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2012 annual report.  This reduction is effective in 2013, but the amounts are reflected in Table A in the 2012 financial statements in the column 'Appropriation reduced' as they are adjustments to 2012 appropriations.
  2. Amounts required as per Appropriation Act (Act 1 s 11; Act 2 s 12).
  3. Total amount appropriated in 2012.          
  4. Total reduction effective 2013.          
             
    Amount required 2 - by Appropriation Act Total amount required 2 Total amount appropriated 3 Total reduction 4
  2011          
  Ordinary Annual Services Act (No.1) Act (No.3)      
  Outcome 1
415,476,268.43
105,303,181.13
520,779,449.56
578,813,000.00
58,033,550.44
  Outcome 2
10,423,661.84
0.00
10,423,661.84
18,005,000.00
7,581,338.16
             
  Other Services Act (No.2) Act (No.4)      
  Specific Payments to States, ACT, NT and Local government        
  Outcome 1
6,899,000.00
0.00
6,899,000.00
7,608,000.00
709,000.00

 

1. Administered items for 2011 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2011 annual report.  This reduction is effective in 2012, but the amounts are reflected in Table A in the 2011 financial statements in the column 'Appropriation reduced' as they are adjustments to 2011 appropriations.

2. Amounts required as per Appropriation Act (Act 1 s 11; Act 2 s 12).

3. Total amount appropriated in 2011.

4. Total reduction effective 2012.

Note 29:  Special accounts

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    Christmas Island Phosphate Mining Rehabilitation (Administered) 1 Services on behalf of other Governments and non public bodies (Administered) 2 Other Trust Monies Account (Administered) 3 Services for Other Entities and Trust Money - Attorney-General's Department Special Account 4
    2012
$'000
2011
$'000
2012
$'000
2011
$'000
2012
$'000
2011
$'000
2012
$'000
2011
$'000
  Balance brought forward from previous period
-
2,788
15,837
15,755
1,869
1,846
-
-
  Increases:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Appropriation credited to special account
-
-
-
-
-
-
17,706
-
  Receipts
-
610
-
-
-
-
-
-
  Other receipts
-
-
-
85,931
-
1,701
8,254
-
  Total increases
-
610
-
85,931
-
1,701
25,960
-
  Available for payments
-
3,398
15,837
101,686
1,869
3,547
25,960
-
  Decreases:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Administered  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  Payments made: suppliers 5
-
-
-
(85,849)
-
(1,678)
(15,436)
-
  Restructuring transfer
-
(3,398)
-
-
-
-
-
-
  Appropriation debited from special account
-
-
(15,837)
-
-
-
-
 
 
  Total decreases
-
(3,398)
(15,837)
(85,849)
(1,869)
(1,678)
(15,436)
-
  Total balance carried forward to the next period
-
-
-
15,837
-
1,869
10,524
-

 

1. Appropriation: Financial Management and Accountability Act 1997; section 20.

Establishing Instrument:  Financial Management and Accountability Determination 2006/11.

Purpose:  To manage the funding provided for the rehabilitation of phosphate mine sites on Christmas Island in accordance with the requirements of the lease between Phosphate Resources Limited and the Australian Government.

As a consequence of 14 September 2010 administrative arrangements the management of this account transferred to the Department of Regional Australia, Regional Development and Local Government (Note 10B refers).

2. Appropriation: Financial Management and Accountability Act 1997; section 20.

Establishing Instrument:  Financial Management and Accountability Determination 2008/15.

Purpose:  For expenditure in connection with services performed on behalf of other Governments and bodies that are not Agencies under the FMA Act.

3. Appropriation: Financial Management and Accountability Act 1997; section 20.

Establishing Instrument:  Financial Management and Accountability Determination 2008/15.

Purpose:  For expenditure of monies held on trust or otherwise for the benefit of a person other than the Australian Government.

4. On 1 July 2011 the Minister for Finance and Deregulation abolished the Other Trust Money and Services for Other Government and Non-Agency bodies account and established the Services for Other Entities and Trust Money - Attorney-General's Department Special Account.

5 In 2010-11 as a result of an agreement between the Commonwealth and Queensland Government this account is used to make payments for the Queensland Premiers Flood Relief Appeal.  The Queensland Department of Premier and Cabinet made payments into the account which the Department transferred to Centrelink to make payment to eligible recipients.

Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

The Attorney-General’s Department (AGD) reported in its 2010-11 financial statements that a risk assessment would be undertaken in relation to compliance with the statutory and other legal requirements, including constitutional requirements, relevant to its special appropriations and special accounts.

In accordance with guidelines provided by the Department of Finance and Deregulation, this risk assessment was prepared during the year and entailed:

  • identifying each special appropriation and special account as listed at Table A below;
  • reviewing the associated relevant legislation to identify the statutory conditions on payments;
  • determining the risk of non-compliant payments being made by reviewing the statutory conditions and assessing the extent to which existing payment systems and processes satisfy those conditions; assessing the effectiveness of the internal control procedures to confirm the results of the risk assessments and to quantify the number of non-compliant payments that have occurred during the financial year;
  • obtaining legal advice, as appropriate, to resolve questions of potential non-compliance; and
  • considering legislative or procedural changes to reduce the risk of non-compliance in the future.

Having regard to the guidelines provided by the Department of Finance and Deregulation, AGD has identified the following appropriations involving statutory conditions for payment:

  • Five special appropriations; and
  • One special account.

At 30 June 2012, work has been completed in respect of all appropriations with statutory conditions for cash payments.

For Australian Government Disaster Recovery Payments (AGDRP) made under the Social Security Act 1991 and Social Security (Administration) Act 1999 , the Department of Human Services (DHS) provides assessment and payment services on behalf of AGD in disaster-affected locations to claimants assessed as being eligible and who meet the statutory conditions authorising the payments. The conditions and circumstances under which payments are made may contribute to a circumstance where an incorrect payment arising from a mistake or otherwise occurs.

Table A below provides further information on findings the risk assessment undertaken for each of the special appropriations and special account.

In summary, work undertaken up to 30 June 2012, including prior years, identified that for AGDRP payments under the Social Security Act 1991 and Social Security (Administration) Act 1999 there were:

  • As at 1 July 2011, 2,696 potential non-compliant payments totaling $3,369,655 identified;
  • During the 2011-12 financial year, 2,881 potential non-compliant prior years payments totaling $3,490,935 identified; and
  • 220 payments made in 2011-12 that are currently under investigation which could be potential contraventions.

Table A - Summary

 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
Appropriations identified as subject to conditions Expenditure in 2011-12 Risk Assessment Completed Breaches identified from 1 July 2011 to 30 June 2012 Potential breaches to date yet to be resolved Remedial action taken or proposed 1
  $'000   Number Actual
$'000
Potential
$'000
Recovered/waived
$'000
Yes/No Indicative extent  
SPECIAL APPROPRIATIONS:                  
Social Security Act 1991 and Social Security (Administration) Act 1998
78,472
Yes
5,577
0
6,861
3,866
Yes
Refer Note 1 below
LP
National Handgun Buyback Act 2003
667
Yes
Nil
0
0
0
No
N/A
N/A
Law Officers Act 1984
393
Yes
Nil
0
0
0
No
N/A
N/A
Financial Management and Accountability Act 1997
8
Yes
Nil
0
0
0
No
N/A
N/A
National Firearms Program Implementation Act 1996
-
Yes
Nil
0
0
0
No
N/A
N/A
SPECIAL ACCOUNTS:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Services for Other Entities and Trust Moneys - Attorney-General's Department Special Account (SOETM Special Account)
15,436
Yes
Nil
0
0
0
No
N/A
N/A

 

Note 1: There are currently 220 payments made in 2011-12 that have been identified for investigation which could be potential contraventions of section 83 of the Constitution.

1 LP - legislative change to the Acts planned

 

Note 30:  Compensation and debt relief

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $ $
Departmental  
 
 
 
No ‘Act of Grace’ expenses were incurred during the reporting period. (2011: No expenses).
-
-
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2011: No waivers)
-
-
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2011: No payments).
-
-
No ex-gratia payments were provided for during the reporting period.
(2011: No payments).
-
-
No payments were provided in special circumstances relating to APS employment pursuant to s73 of the Public Service Act 1999 during the reporting period (2011: One payment).
-
14,000

 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $ $
Administered  
 
 
 
   
 
 
 
No ‘Act of Grace’ expenses were incurred during the reporting period. (2011: No expenses).
-
-
   
 
 
 
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2011: No waivers)
-
-
   
 
 
 
No payments were provided for under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2011: No payments).
-
-
   
 
 
 
No ex-gratia payments were provided for during the reporting period.
(2011: No payments).
-
-
   
 
 
 
No payments were provided in special circumstances relating to APS employment pursuant to s73 of the Public Service Act 1999 during the reporting period. (2011: No payments).
-
-

Note 31: Reporting of outcomes

The Department uses budgeted average staffing levels to determine the attribution of its shared items.  The basis of attribution in the Table is consistent with the basis used for the 2011-12 Budget.

31A: Net cost of outcome delivery

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Outcome 1 Outcome 2 Payments to CAC Act bodies* Total
  2012 2011 2012 2011 2012 2011 2012 2011
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Departmental  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
(320,392)
(264,058)
-
(1,970)
-
-
(320,392)
(266,028)
Own-source income
36,946
29,399
-
38
-
-
36,946
29,437
Administered  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
(510,241)
(1,450,220)
-
(34,876)
-
(10,127)
(510,241)
(1,495,223)
Own-source income
22,558
22,903
-
8,745
-
-
22,558
31,648
Net cost/(contribution) of outcome delivery
(771,129)
(1,661,976)
-
(28,063)
-
(10,127)
(771,129)
(1,700,166)

 

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table of this Annual Report.

The 2010-11 comparatives for Outcome 2 include three months revenue and expenses relating to the administration of the Australian Territories functions which was transferred to the Department of Regional Australia, Local Government, Arts and Sport effective from 1 October 2010 (Note 10A and 10B refers).

* Payments to CAC Act bodies are not related to outcomes. They are included here so the total can agree to the resourcing table.

31B: Major classes of departmental expense, income, assets and liabilities by outcomes

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Outcome 1 Outcome 2 Total
  2012 2011 2012 2011 2012 2011
  $’000 $’000 $’000 $’000 $’000 $’000
Departmental Expenses:  
 
 
 
 
 
 
 
 
 
 
 
Employees
177,910
163,679
-
1,722
177,910
165,401
Suppliers
81,477
81,829
-
241
81,477
82,070
Depreciation and amortisation
22,429
18,132
-
7
22,429
18,139
Other expenses
236
418
-
-
236
418
Transfer of assets
38,340
-
-
-
38,340
-
Total
320,392
264,058
-
1,970
320,392
266,028
   
 
 
 
 
 
 
 
 
 
 
 
Departmental Income:  
 
 
 
 
 
 
 
 
 
 
 
Income from government
205,655
216,789
-
2,030
205,655
218,819
Sale of goods and services
36,541
29,059
-
37
36,541
29,096
Other income
405
340
-
1
405
341
Total
242,601
246,188
-
2,068
242,601
248,256
   
 
 
 
 
 
 
 
 
 
 
 
Departmental Assets:  
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
5,021
3,971
-
-
5,021
3,971
Trade and other receivables
83,377
104,672
-
-
83,377
104,672
Land and buildings
75,289
64,948
-
-
75,289
64,948
Property, plant and equipment
25,776
23,107
-
-
25,776
23,107
Intangibles
29,315
38,251
-
-
29,315
38,251
Inventories
-
58
-
-
-
58
Other non-financial assets
4,001
2,130
-
-
4,001
2,130
Total
222,779
237,137
-
-
222,779
237,137
   
 
 
 
 
 
 
 
 
 
 
 
Departmental Liabilities:  
 
 
 
 
 
 
 
 
 
 
 
Suppliers
43,740
17,942
-
-
43,740
17,942
Other payables
19,917
13,113
-
-
19,917
13,113
Leases
-
658
-
-
-
658
Employee provisions
40,570
33,005
-
-
40,570
33,005
Other provisions
274
634
-
-
274
634
Total
104,501
65,352
-
-
104,501
65,352

 

Outcome 1 is described in Note 1.1.

The 2010-11 comparatives for Outcome 2 include three months revenue and expenses relating to the administration of the Australian Territories functions which was transferred to the Department of Regional Australia, Local Government, Arts and Sport effective from 1 October 2010 (Note 10A refers).

31C: Major classes of administered expense, income, assets and liabilities by outcomes

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  Outcome 1 Outcome 2 Payments to CAC Act bodies* Total
  2012 2011 2012 2011 2012 2011 2012 2011
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Administered Expenses:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee benefits
1,035
393
-
2,666
-
-
1,035
3,059
Suppliers
47,422
66,213
-
20,767
-
-
47,422
86,980
Subsidies
2,426
9,698
-
26
-
-
2,426
9,724
Personal benefits 1
81,101
979,642
-
-
-
-
81,101
979,642
Grants
373,778
382,721
-
4,498
-
-
373,778
387,219
Write-down and impairment of assets
1,596
1,246
-
-
-
-
1,596
1,246
Depreciation and amortisation
2,883
3,088
-
6,919
-
-
2,883
10,007
CAC Act body payment items
-
-
-
-
-
10,127
-
10,127
Other expenses
-
7,219
-
-
-
-
-
7,219
Total
510,241
1,450,220
-
34,876
-
10,127
510,241
1,495,223
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Administered Income:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends
7,000
5,858
-
-
-
-
7,000
5,858
Competitive neutrality
4,929
4,872
-
-
-
-
4,929
4,872
Sale of goods and rendering of services
5,798
6,431
-
4,867
-
-
5,798
11,298
Fees and fines
-
-
-
867
-
-
-
867
Interest
2,061
2,445
-
1,115
-
-
2,061
3,560
Rental income
-
-
-
973
-
-
-
973
Royalties
-
-
-
562
-
-
-
562
Recoveries
829
3,279
-
-
-
-
829
3,279
Other revenue
1,941
18
-
-
-
-
1,941
18
Other tax
-
-
-
361
-
-
-
361
Total
22,558
22,903
-
8,745
-
22,558
31,648
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Administered Assets:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
-
169
-
-
-
-
-
169
Loans and receivables
44,671
44,746
-
-
-
-
44,671
44,746
Investments
376,490
396,052
-
-
-
-
376,490
396,052
Property, plant and equipment
5,271
5,979
-
-
-
-
5,271
5,979
Intangibles
869
610
-
-
-
-
869
610
Other non-financial assets
3,276
308
-
-
-
-
3,276
308
Total
430,577
447,864
-
-
-
-
430,577
447,864
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Administered Liabilities:  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Suppliers
3,811
2,461
-
-
-
-
3,811
2,461
Grants and subsidies
6,091
20,699
-
-
-
-
6,091
20,699
Other payables
885
961
-
-
-
-
885
961
Employee provisions
-
46
-
-
-
-
-
46
Superannuation provisions
7,007
5,200
-
-
-
-
7,007
5,200
Total
17,794
29,367
-
-
-
-
17,794
29,367

 

Outcome 1 is described in Note 1.1.

The 2010-11 comparatives for Outcome 2 include three months revenue and expenses relating to the administration of the Australian Territories functions which was transferred to the Department of Regional Australia, Local Government, Arts and Sport effective from 1 October 2010 (Note 10B refers).

1 The prior year comparative reflects the substantial level of payments made to individuals under the Australian Government Disaster Recovery Program, Disaster Income Recovery Subsidy Program and New Zealand residents in response to the 2010-11 natural disaster events.

Note 32: Cost recovery

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
    2012 2011
  Notes $'000 $'000

32A: Receipts subject to cost recovery policy

   
 
 
 
Significant cost recovery arrangements    
 
 
 
AusCheck background checking service 1 July 2010 - 30 June 2012  
13,200
7,920
Other cost recovery arrangements    
 
 
 
Sale of publications  
438
363
Federal Register of Legislative Instruments (FRLI) registration fees  
3,433
2,457
Protective security training registration fees  
1,767
778
Legislative drafting  
1,105
1,070
Total receipts subject to cost recovery policy  
19,943
12,588
     
 
 
 

32B: Administered receipts subject to cost recovery policy

   
 
 
 
Significant cost recovery arrangements    
 
 
 
Classification Fees September 2011 - June 2013  
5,501
6,151
Other cost recovery arrangements    
 
 
 
ASNET Levy  
172
176
Total receipts subject to cost recovery policy  
5,673
6,327

Note 33: Net cash appropriation arrangements

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
  2012 2011
  $'000 $'000
Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations
(79,994)
(19,128)
Plus: depreciation/amortisation expenses previously funded through revenue appropriation
1,813
1,356
Total comprehensive income (loss) - as per the Statement of Comprehensive Income 1
(78,181)
(17,772)

 

1 The table below shows non-cash items contributing to the comprehensive loss attributable to AGD:

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2011 to 30 June 2012
 
2012
 
 
 
$'000
 
 
Total comprehensive income (loss) attributable to AGD
(78,181)
 
 
Plus: extraordinary items  
 
 
 
(a) Transfer of assets received free of charge
38,340
 
 
(b) Unfunded depreciation
20,616
 
 
(c) Employee provisions
5,648
 
 
(d) Asset revaluation decrement
390
 
 
Total comprehensive income (loss) attributable to AGD excluding extraordinary items
(13,187)
 
 

 

(a) Transfer of assets free of charge  - The Personal Property Securities (PPS) register, contact centre and registrar's office was transferred from the Attorney-General's Department to Insolvency and Trustee Service Australia (ITSA).  Funding for the PPS contact centre and registrar's office was provided to the Attorney-General's Department as contributed equity in the current and previous financial years and was transferred free of charge at a value of $38.340 million.  ITSA will recognise the transfer of the asset as revenue in their financial statements and from a whole of government perspective the transaction is cost/revenue neutral.

(b) Unfunded depreciation - From 2010-11, the Government changed its arrangements for funding capital expenditure for Departments of State and Agencies within the meaning of Section 5 of the Financial Management and Accountability Act 1997. Funding for capital expenditure is now provided through the Departmental Capital Budget (DCB) Statement and is recognised through equity as a contribution by owner (refer Statement of Changes in Equity).

There is no direct correlation between the amount of funding foregone for depreciation and amortisation expenses and DCB funding, as depreciation expense is incurred on assets, including large project assets, while DCB funding is provided to replace assets.  An unfunded depreciation and amortisation expense of $20.616 million was recorded in the 2011-12 financial year (Note 3C refers).

(c) Employee provisions - Employee provisions, which include annual, long service and some superannuation liabilities, are required under the accounting standard AASB 119 Employee Benefits and under FMO Section 43.3 to be valued at their Present Value (PV) at balance date.  This is done by discounting the leave provision using the 10-Year Government bond rate.  A movement in the 10-year Government bond rate, will therefore change the amount used to discount leave provisions.

In the past year, the 10-year Government bond rate has decreased, resulting in AGD increasing the PV of its leave provisions by $5.648 million. The need to increase the PV of the leave provision resulted in a corresponding non-cash expense being recorded in the Statement of Comprehensive Income, adding to the operating loss (refer (c) above).

(d) Asset revaluation decrement -  A revaluation of property, plant and equipment was undertaken by an independent valuer with effect from 30 June 2012.  A revaluation decrement of $0.502m for property, plant and equipment (PP&E) was debited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet.  Additional PP&E assets located at Mount Macedon were recognised on the asset register for the first time.  The fair value of these assets at 30 June 2012 is $0.112m and was credited to the asset revaluation surplus and included in the equity section of the balance sheet.

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