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Independent Auditor's Report




 


 

Independent Auditor's Report 

Statement by the Chief Executive Officer and Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2011 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 AO
Chief Executive Officer
13 day of September 2011
  Stephen Lutze's signature
Stephen Lutze
Chief Finance Officer
13 day of September 2011

Financial Statements

STATEMENT OF COMPREHENSIVE INCOME for the Attorney-General's Department
for the period ended 30 June 2011
    2011 2010
  Notes $'000 $'000
       
       
EXPENSES      
Employee benefits 3A 165,401 157,559
Suppliers expenses 3B 82,070 86,816
Depreciation and amortisation 3C 18,139 17,995
Finance costs 3D 180 449
Write-down and impairment of assets 3E 188 97
Loss from asset sales 3F - 1,476
Other 3G 50 38
Total expenses   266,028 264,430
       
LESS:      
OWN-SOURCE INCOME      
Own-source revenue      
Sale of goods and rendering of services 4A 29,096 27,509
Interest 4B 1 14
Total own-source revenue   29,097 27,523
       
Gains      
Sale of assets 4C - 11
Other 4D 340 340
Total gains   340 351
Total own-source income   29,437 27,874
       
Net cost of services   236,591 236,556
       
Revenue from Government 1 4E 218,819 236,312
Deficit attributable to the Australian Government   (17,772) (244)
       
Total comprehensive (loss) attributable to the Australian Government 28 (17,772) (244)

1 From 1 July 2010, 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 Department Capital Budget Statement and is recognised through equity as a contribution by owners (refer Statement of Changes in Equity).

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

 

BALANCE SHEET for the Attorney-General's Department
as at 30 June 2011
    2011 2010
  Notes $'000 $'000
       
ASSETS      
Financial assets      
Cash and cash equivalents 5A,11 3,971 1,817
Trade and other receivables 5B 104,672 128,888
Total financial assets   108,643 130,705
       
Non-financial assets      
Land and buildings 6A,6C 64,948 58,626
Infrastructure, plant and equipment 6B,6C 23,107 22,310
Heritage and cultural assets 7B    
Intangibles 6D,6E 38,251 19,296
Inventories 6F 58 71
Other 6G 2,130 740
Total non-financial assets   128,494 101,043
Total Assets   237,137 231,748
       
LIABILITIES      
Payables      
Suppliers 7A 17,942 15,643
Other 7B 13,113 15,764
Total payables   31,055 31,407
       
Interest bearing liabilities      
Leases 8A 658 2,982
Total interest bearing liabilities   658 2,982
       
Provisions      
Employee provisions 9A 33,005 32,224
Other 9B 634 598
Total provisions   33,639 32,822
Total Liabilities   65,352 67,211
Net Assets   171,785 164,537
       
EQUITY      
Parent entity interest      
Contributed equity   150,643 125,503
Reserves   19,124 19,124
Retained earnings   2,018 19,910
Total Equity   171,785 164,537

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 2011
  Notes Retained earnings Asset revaluation reserves Contributed equity/capital Total equity
    2011 2010 2011 2010 2011 2010 2011 2010
    $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance                  
Balance carried forward from previous period   19,910 19,665 19,124 19,124 125,503 129,274 164,537 168,063
Adjustments to prior periods   (120) - - - (88) - (208) -
Adjusted opening balance   19,790 19,665 19,124 19,124 125,415 129,274 164,329 168,063
                   
Comprehensive income                  
Deficit for the period   (17,772) (244) - - - - (17,772) (244)
Total comprehensive income   (17,772) (244) - - - - (17,772) (244)
of which:
Attributable to the Australian Government
 
(17,772)

(244)

-

-

-

-

(17,772)

(244)
                   
Transactions with owners                  
Distributions to owners                  
Returns of capital:                  
Restructuring: Department of Regional Australia, Regional Development and Local Government 10A     - - (625) - (625) -
Operation Sunlight - appropriation extinguishment       - - - (12,145) - (12,145)
Contributions by owners                  
Restructuring: Department of Families, Housing, Community Services and Indigenous Affairs 10A     - - 44 - 44 -
Appropriation (equity injection): Departmental Capital Budget   - - - - 17,036 - 17,036 -
Appropriation (equity injection): Act 2   - - - - 8,773 8,374 8,773 8,374
Prior year outputs   - 489 - - - - - 489
Sub-total transactions with owners   - 489 - - 25,228 (3,771) 25,228 (3,282)
Closing balance as 30 June   2,018 19,910 19,124 19,124 150,643 125,503 171,785 164,537
Closing balance attributable to the Australian Government   2,018 19,910 19,124 19,124 150,643 125,503 171,785 164,537

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 2011
    2011 2010
  Notes $'000 $'000
OPERATING ACTIVITIES      
Cash received      
Sale of goods and rendering of services   33,164 30,030
Appropriations   218,819 235,213
Interest   1 14
Net GST received 5B 8,739 17,326
Total cash received   260,723 282,583
       
Cash used      
Employees   162,703 156,516
Suppliers   96,045 112,031
Borrowing costs   180 449
Total cash used   258,928 268,996
Net cash from operating activities   1,795 13,587
       
INVESTING ACTIVITIES      
Cash received      
Proceeds from sales of infrastructure, plant and equipment 4C - 11
Total cash received   - 11
       
Cash used      
Purchase of land and buildings 6C 13,380 6,185
Purchase of infrastructure, plant and equipment 6C 9,742 8,235
Purchase of intangibles 6E 4,745 1,311
Internally developed intangibles 6E 16,901 9,131
Total cash used   44,768 24,862
Net cash used by investing activities   (44,768) (24,851)
       
FINANCING ACTIVITIES      
Cash received      
Contributed equity   47,501 15,255
Total cash received   47,501 15,255
       
Cash used      
Repayment of borrowings   2,324 3,305
Total cash used   2,324 3,305
Net cash from financing activities   45,177 11,950
       
Net increase/(decrease) in cash held   2,204 686
Cash and cash equivalents at the beginning of the reporting period   1,817 1,131
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 3,971 1,817

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 2011
  2011 2010
  $'000 $'000
BY TYPE 1    
Commitments receivable    
Net GST recoverable on commitments (19,742) (19,555)
Total commitments receivable (19,742) (19,555)
     
Commitments payable    
Capital commitments    
Land and buildings 2 853 387
Infrastructure, plant and equipment 3 6,661 3,326
Total capital commitments 7,514 3,713
     
Other commitments    
Operating leases 4 264,116 206,337
Other commitments 13,163 4,960
Total other commitments 277,279 211,297
Net commitments by type 265,051 195,455
     
BY MATURITY    
Commitments receivable    
Other commitments receivable    
One year or less (6,764) (2,282)
From one to five years (12,383) (5,768)
Over five years (595) (11,505)
Total other commitments receivable (19,742) (19,555)
     
Commitments payable    
Capital commitments    
One year or less 7,037 3,169
From one to five years 477 544
Total capital commitments 7,514 3,713
     
Operating lease commitments    
One year or less 61,155 19,162
From one to five years 143,457 60,627
Over five years 59,504 126,548
Total operating lease commitments 264,116 206,337
     
Other commitments    
One year or less 6,103 2,693
From one to five years 7,060 2,267
Total other commitments 13,163 4,960
Net commitments by maturity 265,051 195,455

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

Notes:

1 Commitments are GST inclusive where relevant.

2 Outstanding contractual payments for fit out under construction.

3 Infrastructure, plant and equipment commitments are contracts that principally relate to the development of the Personal Property Securities Register.

4Operating leases included 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.

The Department's other commitments have increased in 2010-11 due to the Department negotiating a 15 year lease agreement for 4 National Circuit, Barton commencing 1 July 2012.

 

SCHEDULE OF CONTINGENCIES for the Attorney-General's Department
for the period ended 30 June 2010
  2011 2010
  $'000 $'000
Contingent assets    
Claims for damages or costs 42 -
Total contingent assets 42 -
     
Contingent liabilities    
Claims for damages or costs (88) -
Total contingent liabilities (88) -
Net contingent (liabilities) (46) -

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 12: Contingent Liabilities and Assets, 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.

 

 

SCHEDULE OF ASSET ADDITIONS for the Attorney-General's Department
for the period ended 30 June 2011
The following non-financial non-current assets were added in 2010-11:
    Buildings Leasehold
improvements
Other
infrastructure
plant &
equipment
Intangibles Total
  Notes $'000 $'000 $'000 $'000 $'000
Additions funded in the current year            
By purchase - appropriation ordinary annual services            
Departmental capital budget   35 5,526 875 9,362 15,798
Ordinary operating costs 1   - - 3,359 852 4,211
By purchase - appropriation other services            
Equity injections 2   - 7,819 5,508 11,432 24,759
Total additions funded in the current year 6C,6E 35 13,345 9,742 21,646 44,768
             

1 This represents expenditure of prior year funding for capital projects.

2 This represents current and prior year equity injections drawn down for capital projects.

                   
The following non-financial non-current assets were added in 2009-10:
    Buildings Leasehold
improvements
Other
infrastructure
plant &
equipment
Intangibles Total
  Notes $'000 $'000 $'000 $'000 $'000
Additions funded in the current year            
By purchase - appropriation ordinary annual services            
Ordinary operating costs   - 4,140 5,635 1,383 11,158
By purchase - appropriation other services            
Equity injections   - 2,045 2,600 9,059 13,704
Assets transferred   - 440 - - 440
Total additions funded in the current year 6C,6E - 6,625 8,235 10,442 25,302

 

SCHEDULE OF ADMINISTERED ITEMS for the Attorney-General's Department
for the period ended 30 June 2011
    2011 2010
  Notes $'000 $'000
       
Income administered on behalf of Government      
for the period ended 30 June 2011      
       
Revenue      
Taxation revenue      
Indirect tax 16A - 2,813
Other 16B 361 924
Total taxation revenue   361 3,737
       
Non-taxation revenue      
Sale of goods and rendering of services 16C 11,298 21,541
Fees and fines 16D 867 1,510
Interest 16E 3,560 6,437
Dividends 16F 5,858 1,094
Rental income 16G 973 2,899
Royalties 16H 562 1,545
Competitive neutrality 16I 4,872 4,990
Recoveries 16J 3,279 -
Other 16K 18 666
Total non-taxation revenue   31,287 40,682
Total revenues administered on behalf of Government   31,648 44,419
       
Gains      
Other 16L - 77,049
Total income administered on behalf of Government   31,648 121,468
       
Expenses administered on behalf of Government      
for the period ended 30 June 2011      
       
Employee benefits 17A 3,059 10,811
Suppliers expenses 17B 68,810 92,401
Subsidies 17C 9,724 38,524
Personal benefits 17D 978,815 28,066
Grants 17E 406,216 395,905
Depreciation and amortisation 17F 10,007 17,889
Write-down and impairment of assets 17G 1,246 2,317
Losses from asset sales 17H - 194
CAC Act body payment 17I 10,127 10,979
Transfer of assets 17J 7,219 -
Total expenses administered on behalf of Government   1,495,223 597,086

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

    2011 2010
  Notes $'000 $'000
Assets administered on behalf of Government      
as at 30 June 2011      
       
Financial assets      
Cash and cash equivalents 18A 169 41
Loans and receivables 18B 44,746 138,349
Investments 18C 396,052 395,263
Total financial assets   440,967 533,653
     
Non-financial assets      
Land and buildings 18D,18F - 228,422
Infrastructure, plant and equipment 18E,18F 5,979 434,037
Intangibles 18G,18H 610 4,299
Inventories 18I - 2,008
Other 18J 308 6
Total non-financial assets   6,897 668,772
Total assets administered on behalf of Government   447,864 1,202,425
     
Liabilities administered on behalf of Government      
as at 30 June 2011      
     
Payables    
Suppliers 19A 2,461 8,322
Grants and subsidies 19B 20,699 19,031
Other 19C 961 1,755
Total payables   24,121 29,108
       
Provisions      
Employee provisions 19D 46 1,868
Asbestos removal provision 19E - 8,321
Phosphate mine rehabilitation provision 19F - 2,984
Total provisions   46 13,173
Total liabilities administered on behalf of Government   24,167 42,281

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

 

    2011 2010
  Notes $'000 $'000
Administered cash flows      
for the period ended 30 June 2011      
       
OPERATING ACTIVITIES      
Cash received      
Sales of goods and rendering of services   10,384 27,837
Interest   3,560 6,437
Dividends   5,858 2,567
Levies, fees, taxes and fines   1,228 5,247
Net GST received   20,447 18,598
Competitive neutrality   4,872 4,990
Rental income   973 2,899
Royalties   562 1,545
Recoveries   3,279 -
Other   17 666
Total cash received   51,180 70,786
       
Cash used      
Grant payments 1   401,032 389,273
Subsidies paid   9,724 38,524
Personal benefits 2   978,815 14,151
Suppliers   85,328 125,325
Employees   3,195 10,382
CAC Act body payment   10,127 10,979
Other   - -
Total cash used   1,488,221 588,634
Net cash flows used by operating activities   (1,437,041) (517,848)
       
INVESTING ACTIVITIES      
Cash received      
Proceeds from sale of infrastructure, plant and equipment   - 176
Repayments of advances and loans   6,638 10,966
Total cash received   6,638 11,142
       
Cash used      
Purchase of land and buildings   544 110
Purchase of infrastructure, plant and equipment   22,632 46,026
Purchase of intangibles   16 1,471
Advances and loans made   - 6,571
Total cash used   23,192 54,178
Net cash flows used by investing activities   (16,554) (43,036)
       
FINANCING ACTIVITIES      
Cash received      
GST appropriation cash from Official Public Account   21,913 20,193
Total cash received   21,913 20,193

 

 

    2011 2010
  Notes $'000 $'000
Cash used      
Cash to Official Public Account   25,075 16,245
Total cash used   25,075 16,245
Net cash flows from/(used by) financing activities   (3,162) 3,948
Cash transferred as part of restructure to the Department of Regional Australia, Regional Development and Local Government 10B (22)  
Net decrease in cash held   (1,456,779) (556,936)
     
Cash and cash equivalents at the beginning of the reporting period   41 619
Cash from Official Public Account for:      
- Appropriations   532,389 599,902
- Appropriations - capital   50,089 29,110
- Special accounts   1,002,535 7,022
- Revenue from CAC entities   10,127 10,979
    1,595,140 647,013
     
Cash to Official Public Account for:      
- Appropriations   (49,826) (69,931)
- Special accounts   (88,407) (20,724)
    (138,233) (90,655)
Cash and cash equivalents at the end of the reporting period 18A 169 41

 

1 The Department makes grant payments to State and Territory Governments, Local Councils and various community organisations for programs such as Safer Suburbs, Secure Schools and Family Relationship Support.

2 The increase in the result of payments made to individuals under the Australian Government Disaster Recovery Program, Disaster Income Recovery Subsidy Program and New Zealand residents.

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

 

  2011 2010
  $'000 $'000
Administered commitments    
as at 30 June 2011    
     
BY TYPE 1    
Commitments receivable  
Net GST recoverable on commitments (11,896) (11,442)
Total commitments receivable (11,896) (11,442)
     
Commitments payable  
Capital commitments  
Infrastructure, plant and equipment 2 3,208 66,744
Total capital commitments 3,208 66,744
     
Other commitments 3  
Operating Leases 30,925 791
Other commitments 110,933 163,639
Grants 552,888 381,630
Total other commitments 694,746 546,060
Net commitments by type 686,058 601,362
   
BY MATURITY  
Commitments receivable  
Other commitments receivable  
One year or less (7,642) (8,035)
From one to five years (4,254) (3,407)
Total other commitments receivable (11,896) (11,442)
   
Commitments payable  
Capital commitments  
One year or less 1,486 57,285
From one to five years 1,722 9,459
Total capital commitments 3,208 66,744
   
Other commitments  
One year or less 257,401 279,435
From one to five years 437,345 266,625
Total other commitments 694,746 546,060
Net commitments by maturity 686,058 601,362

Notes:

1 Commitments are GST inclusive where relevant.

2 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, as such capital commitments were substantially reduced.

3 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 forward estimates.

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

 

Administered Contingencies
as at 30 June 2011

 

Contingent assets

At 30 June 2011 the Department estimates the value of contingent assets to be $nil (2010: $nil)

Contingent liabilities

At 30 June 2011 the Department estimates the value of contingent liabilities to be $nil (2010: $nil).

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

 

Administered Asset Additions    
for the period ended 30 June 2011    
     
The following non-financial non-current assets were added in 2010-11:
    Land Buildings Heritage &
cultural
Other
infrastructure
plant &
equipment
Intangibles Total
  Notes $'000 $'000 $'000 $'000 $'000 $'000
Additions funded in the current year              
By purchase - appropriation ordinary annual services              
Administered capital budget   154 390 - 1,820 - 2,364
Ordinary operating costs   - - - 367 16 383
By purchase - appropriation other services    
Equity injections   - - - 20,445 - 20,445
Total funded additions funded in the current year 18F,18H 154 390 - 22,632 16 23,192
       
The following non-financial non-current assets were added in 2009-10:
    Land Buildings Heritage &
cultural
Other
infrastructure
plant &
equipment
Intangibles Total
    $'000 $'000 $'000 $'000 $'000 $'000
Additions funded in the current year      
By purchase - appropriation ordinary annual services    
Administered capital budget   - - - - - -
Ordinary operating costs   - 110 - 21,441 1,471 23,022
By purchase - appropriation other services    
Equity injections   - - - 24,585 - 24,585
Assets first found   16,742 11,576 2,119 48,470 - 78,907
Total funded additions funded in the current year 18F,18H 16,742 11,686 2,119 94,496 1,471 126,514

 

 

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2010 to 30 June 2011
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 liabilities and assets
13 Senior executive remuneration
14 Remuneration of auditors
15 Financial instruments
16 Income administered on behalf of Government
17 Expenses administered on behalf of Government
18 Assets administered on behalf of Government
19 Liabilities administered on behalf of Government
20 Administered reconciliation table
21 Administered contingent assets and liabilities
22 Administered investments
23 Administered financial instruments
24 Appropriations
25 Special accounts
26 Compensation and debt relief
27 Reporting of outcomes
28 Comprehensive Income (Loss) Attributable to the entity

 

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.

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 two outcomes:

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;

Outcome 2: Good governance in the Australian Territories through the maintenance and improvement of the overarching legislative framework for self-governing territories, and laws and services for non-self-governing territories.

For 2010-11, the Department has amalgamated the 2009-10 Outcomes 1 and 2 into one outcome – Outcome 1 above, and the previous Outcome 3 is now Outcome 2. In addition, the Department’s program structure has been revised to more clearly separate departmental and administered programs.

Departmental and Administered activities are identified under six programs for Outcome 1 and two programs for Outcome 2. The six 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) and National Security and Criminal Justice (1.6). The two programs within Outcome 2 are Attorney-General's Department Operating Expenses - Territories (2.1) and Services to Territories (2.2).

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
    2010; 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 Agreements Equally Proportionately Unperformed 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 108 Accounting Policies, Changes in Accounting Estimates and Errors – December 2009 (Compilation)

AASB 110 Events after the Reporting Period – December 2009 (Compilation)

AASB 118 Revenue – October 2010 (Compilation)

AASB 119 Employee Benefits – October 2010 (Compilation)

AASB 124 Related Party Disclosures – December 2009 (Principal)

AASB 132 Financial Instruments: Presentation – October 2010 (Compilation)

AASB 137 Provisions, Contingent Liabilities and Contingent Assets – October 2010 (Compilation)

AASB 139 Financial Instruments: Recognition and Measurement – October 2010 (Compilation)

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] – June 2010

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] – December 2010

1.5 Revenue

Sales of Goods and Services

Revenue from the sale of goods is recognised when:

  • The risks and rewards of ownership have been transferred to the buyer;
  • The Department retains no managerial involvement or effective control over the goods;
  • The revenue and transaction costs incurred can be reliably measured; and
  • 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:

  • The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  • 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.

Parental Leave Payments Scheme

The Department offsets amounts received under the Parental Leave Payments Scheme (for payments to employees) by amounts paid to employees under that scheme, as these transactions are only incidental to the main revenue-generating activities of the Department. Amounts received under the Parental Leave Payments Scheme by the Department not yet paid to employees would be presented gross as cash and liability payable. The total amount received under this scheme is disclosed as a footnote to Note 4E: Revenue from Government.

 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 Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and 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 minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

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 is a way confirmed by reference to the work of an actuary as at 30 June 2010. 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 as an administered item.

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 Infrastructure, plant and equipment

Asset recognition threshold

Purchases of infrastructure, 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
Infrastructure, plant and equipment Market selling price
Heritage and cultural assets Active market

Following initial recognition at cost, infrastructure, 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 infrastructure, 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:

  2011 2010
Buildings on freehold land 25-50 years 25-50 years
Leasehold improvements Lease term Lease term
Infrastructure, 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:

  2011 2010
Buildings on freehold land 25-50 years 25-50 years
Leasehold improvements Lease term Lease term
Infrastructure, plant and equipment 3 to 10 years 3 to 10 years
Heritage and cultural (where applicable) Up to 200 years Up to 200 years
Impairment

All assets were assessed for impairment at 30 June 2011. 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 infrastructure, 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. The Department where possible maintains a secondary store of core items and replaces items when required.

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 (2009-10: 3 to 5 years).

All software assets were assessed for indications of impairment as at 30 June 2011.

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:

  • Where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  • 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 Department on behalf of the Government and reported as such in the statement of cash flows in the schedule of administered items and in the administered reconciliation table in Note 20.

Revenue

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

Revenue from levies, fees and fines is recognised when it is probable that the economic benefit comprising the consideration will flow to the Australian Government.

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.

As a result of machinery of government changes announced 14 September 2010, the Department has experienced a decrease in administered revenue. (Refer Note 10B and 16).

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.

As a result of machinery of government changes announced 14 September 2010, the Department has experienced a decrease on administered expenses. As a result of further machinery of government changes announced 14 October 2010, the Department has experienced an increase in the personal benefits expenses. (Refer Note 10A, 10B and 17).

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 castor 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.

As a result of machinery of government changes announced 14 September 2010, the Department has experienced a decrease in loans and receivables. (Refer Note 10B and 18).

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 2011. 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.

Payments to CAC Act Bodies

From 2010-11, payments to CAC Act bodies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to the Department is disclosed in Table A in Note 24.

Note 2: Events after the reporting period

There are no known events after reporting period which will have a material impact on the Department.

Note 3: Expenses

 

    2011 2010
  Notes $'000 $'000
3A: Employee benefits      
Wages and salaries   122,547 118,960
Superannuation:      
Defined benefit plans   16,551 14,425
Defined contribution plans   6,173 7,385
Leave and other entitlements   15,692 11,850
Separation and redundancies   1,095 1,162
Other   3,343 3,777
Total employee benefits   165,401 157,559
       
3B: Suppliers      
Goods and services      
Accommodation expenses   3,677 4,282
Consultants and contractors   5,611 13,711
Travel   7,492 8,350
Information technology and communications   9,513 8,782
General office   7,217 10,982
Legal and internal audit fees   11,737 10,707
Payments and contributions to external bodies   15,157 9,364
Total goods and services   60,404 66,178
       
Goods and services are made up of:      
Provision of goods - related entities   41 571
Provision of goods - external parties   4,098 2,587
Rendering of services - related entities   24,989 29,926
Rendering of services - external parties   31,276 33,094
Total goods and services   60,404 66,178
       
Other supplier expenses      
Operating lease rentals - related entities:      
Minimum lease payments   21,011 19,803
Workers compensation expenses   655 835
Total other supplier expenses   21,666 20,638
Total supplier expenses   82,070 86,816
       
3C: Depreciation and amortisation      
Depreciation:      
Buildings and leasehold improvements 6C 6,966 6,332
Infrastructure, plant and equipment 6C 6,817 6,646
Total depreciation   13,783 12,978
       
Amortisation:      
Assets held under finance leases   1,716 3,100
Intangibles: computer software 6E 2,640 1,917
Total amortisation   4,356 5,017
Total depreciation and amortisation   18,139 17,995
       
3D: Finance costs      
Finance leases   180 449
Total finance costs   180 449
       
3E: Write-down and impairment of assets      
Asset write-downs and impairments from:      
Write down of infrastructure, plant and equipment   119 158
Impairment of intangibles   51 -
Impairment of financial instruments   18 (61)
Total write-down and impairment of assets   188 97
       
3F: Loss from asset transfers  
Land and buildings      
Increase in value of assets transferred 1   - (440)
Carrying value of assets transferred 2   - 1,916
Total loss from asset transfers   - 1,476

1 In 2009-10, fitout at 10 National Circuit, Barton Canberra was revalued upwards to $440,000 by the Australian Valuation Office.

2 In 2009-10, the Department reached an agreement with the Department of Climate Change and Energy Efficiency (DCCEE) to relinquish ownership of the fit out at 2 Constitution Avenue Canberra in exchange for the fit out owned by DCCEE at 10 National Circuit, Barton Canberra at $nil value. The written down value of the fitout relinquished was $1.9m.

    2011 2010
  Notes $'000 $'000
3G: Other expenses      
Defective administration scheme payments 26 14 6
Unwinding of makegood expense 9B 36 32
Total other expenses   50 38

 

Note 4: Income

    2011 2010
  Notes $'000 $'000
OWN SOURCE REVENUE      
       
4A: Sale of goods and rendering of services      
Provision of goods - related entities   603 325
Provision of goods - external parties   410 309
Rendering of services - related entities   15,162 13,905
Rendering of services - external entities   12,921 12,970
Total sale of goods and rendering of services   29,096 27,509
       
4B: Interest      
Interest on deposits   1 14
       
GAINS      
       
4C: Sale of assets      
Infrastructure, plant and equipment      
Proceeds from sale   - 11
       
4D: Other gains      
Resources received free of charge   340 340
       
REVENUE FROM GOVERNMENT      
       
4E: Revenue from Government 1      
Appropriations:      
Departmental appropriation   218,819 236,312
1 The Department received $28,500 (2010: $nil) under the Paid Parental Leave Scheme; these amounts were offset against the amounts paid to employees in the Statement of Comprehensive Income.

Note 5: Financial assets

    2011 2010
  Notes $'000 $'000
5A: Cash and cash equivalents      
Cash on hand or on deposit 15A 3,971 1,817
       
5B: Trade and other receivables      
Goods and services:      
Goods and services - related entities   3,853 4,895
Goods and services - external parties   1,137 1,691
Total receivables for goods and services 15A 4,990 6,586
       
Appropriation receivable:      
For existing programs   97,946 122,026
Total appropriations receivable   97,946 122,026
       
Other receivables:      
GST receivable from the Australian Taxation Office   1,621 272
Other   151 27
Total other receivables   1,772 299
Total trade and other receivables (gross)   104,708 128,911
       
Less impairment allowance account:      
Goods and services   (36) (23)
Total impairment allowance account   (36) (23)
Total trade and other receivables (net)   104,672 128,888
       
Receivables are expected to be recovered in:      
No more than 12 months   104,672 128,888
Total trade and other receivables (net)   104,672 128,888
       
Receivables are aged as follows:      
Not overdue   103,986 127,521
Overdue by:      
    0 to 30 days   408 1,101
    31 to 60 days   44 61
    61 to 90 days   107 107
    More than 90 days   163 121
Total receivables (gross)   104,708 128,911
       
The impairment allowance account is aged as follows:      
Overdue by:      
    More than 90 days   (36) (23)
Total impairment allowance account   (36) (23)

 

Reconciliation of the impairment allowance account:    
     
Movements in relation to 2011    
  Goods and services Total
  $'000 $'000
Opening balance 23 23
Amounts recovered and reversed (13) (13)
(Increase)/decrease recognised in net surplus 26 26
Closing balance 36 36
     
Movements in relation to 2010  
     
Opening balance 118 118
Amounts written off (95) (95)
Closing balance 23 23

 

Note 6: Non-financial assets

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    2011 2010
  Notes $'000 $'000
6A: Land and buildings      
Freehold land at fair value 6C 865 865
Buildings on freehold land:      
Fair value 6C 370 335
Accumulated depreciation 6C (23) (11)
Total buildings on freehold land   1,212 1,189
     
Leasehold improvements:      
Fair value   65,968 63,673
Accumulated depreciation   (14,124) (7,197)
Work in progress (at cost)   11,892 961
Total leasehold improvements 6C 63,736 57,437
Total land and buildings 6C 64,948 58,626
     
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: Infrastructure, plant and equipment      
Heritage and cultural:      
Library (at fair value)   1,815 1,815
Accumulated depreciation   - -
Total heritage and cultural 6C 1,815 1,815
       
Other infrastructure, plant and equipment:      
Fair value   51,099 41,913
Accumulated depreciation   (29,807) (21,418)
Total other infrastructure, plant and equipment 6C 21,292 20,495
Total infrastructure, plant and equipment   23,107 22,310

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

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

 

6C: Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment (2010-11)              
  Land Buildings Leasehold improvements** Total land
and buildings
Heritage
and
cultural
Other
infrastructure, 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 - 35 13,345 13,380 - 9,742 23,122
Impairments recognised in operating result[1] - - - - - - -
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[2] 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
     
**In 2010-11, prior year errors were identified for an overstatement of $0.009m. As the amount is immaterial, comparatives have not been restated and the errors have been corrected in the current year.
 
Note 6C (Cont'd): Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment (2009-10)    
  Land Buildings Leasehold improvements Total land
and buildings
Heritage
and
cultural
Other infrastructure, plant & equipment Total
  $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2009    
Gross book value 865 335 59,925 61,125 1,815 33,590 96,530
Accumulated depreciation and impairment - - (876) (876) - (11,426) (12,302)
Net book value 1 July 2009 865 335 59,049 60,249 1,815 22,164 84,228
Additions - - 6,185 6,185 - 8,235 14,420
Assets first found - - 440 440 - - 440
Depreciation expense - (11) (6,321) (6,332) - (9,746) (16,078)
Disposals - - (1,916) (1,916) - (158) (2,074)
Net book value 30 June 2010 865 324 57,437 58,626 1,815 20,495 80,936
     
Net book value as of 30 June 2010 represented by:    
Gross book value 865 335 64,634 65,834 1,815 41,913 109,562
Accumulated depreciation and impairment - (11) (7,197) (7,208) - (21,418) (28,626)
Net book value 30 June 2010 865 324 57,437 58,626 1,815 20,495 80,936

 

    2011 2010
  Notes $'000 $'000
6D: Intangibles      
Computer software:      
Internally developed - in progress   26,767 13,325
Internally developed - in use   17,384 13,953
Purchased   11,699 6,996
Total computer software (gross)   55,850 34,274
Accumulated amortisation   (17,599) (14,978)
Total intangibles 6E 38,251 19,296

Indicators of impairment were found for intangibles.

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

 

6E: Reconciliation of the opening and closing balances of intangibles (2010-11)      
  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)
Reversal of impairments recognised in the operating result - - -
Amortisation expense (1,603) (1,037) (2,640)
Disposals - - -
Net book value 30 June 2011 33,101 5,150 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 (11,050) (6,549) (17,599)
Net book value 30 June 2011 33,101 5,150 38,251
       
Reconciliation of the opening and closing balances of intangibles (2009-10)      
     
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2009      
Gross book value 18,763 5,685 24,448
Accumulated amortisation and impairment (7,692) (5,369) (13,061)
Adjustments to gross value (616) - (616)
Net book value 1 July 2009 10,455 316 10,771
       
Additions:      
By purchase - 1,311 1,311
Internally developed 9,131 - 9,131
Total additions 9,131 1,311 10,442
Reversal of impairments recognised in the operating result - - -
Amortisation expense (1,760) (157) (1,917)
Net book value 30 June 2010 17,826 1,470 19,296
     
Net book value as of 30 June 2010 represented by:    
Gross book value 27,278 6,996 34,274
Accumulated amortisation and impairment (9,452) (5,526) (14,978)
Net book value 30 June 2010 17,826 1,470 19,296
       
1 Adjustments to prior year gross value relate to expenses incorrectly treated as asset acquisitions in 2008-09.      
    2011 2010
  Notes $'000 $'000
6F: Inventories      
Inventories held for distribution   58 71
       
During 2010-11, $12,420 of inventory held for distribution was recognised as an expense (2009-10: $11,229).      
       
All inventory is expected to be consumed in the next 12 months.      
       
6G: Other non-financial assets      
Prepayments   2,130 740
       
Total other non-financial assets - are expected to be recovered in:      
No more than 12 months   1,746 725
More than 12 months   384 15
Total other non-financial assets   2,130 740

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

 

Note 7: Payables

    2011 2010
  Notes $'000 $'000
7A: Suppliers      
Trade creditors and accruals   11,487 13,158
Operating lease rentals   6,455 2,485
Total supplier payables 15A 17,942 15,643
   
Supplier payables expected to be settled within 12 months:      
Related entities   95 4,518
External parties   17,847 11,125
Total supplier payables   17,942 15,643
   
Settlement is usually made net 30 days.      
       
7B: Other payables      
Salaries and wages   2,896 2,412
Superannuation   3,108 3,058
Separations and redundancies   1,243 691
Other employee payables   37 1,045
Prepayments received/unearned income   3,318 2,618
FBT payable   536 629
Other payables   - 3,532
Lease incentives 1, 2   1,975 1,779
Total other payables   13,113 15,764
       
Total other payables are expected to be settled in:      
No more than 12 months   11,443 14,149
More than 12 months   1,670 1,615
Total other payables   13,113 15,764

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

2 This was previously disclosed as other interest bearing liabilities in Note 8A Leases.

 

Note 8: Interest bearing liabilities 1

    2011 2010
8A: Leases 2 Notes $'000 $'000
Finance leases 15A 658 2,982
     
Payable:    
Within one year:      
Minimum lease payments   700 2,353
Deduct: future finance charges   (42) (185)
     
In one to five years:      
Minimum lease payments   - 856
Deduct: future finance charges   - (42)
Finance leases recognised on the balance sheet   658 2,982

1 This previously included other interest liabilities. These are now disclosed as other payables

2 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% (2010: 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

    2011 2010
  Notes $'000 $'000
     
9A: Employee provisions      
Leave   33,005 32,224
       
Employee provisions are expected to be settled in:      
No more than 12 months   15,464 14,513
More than 12 months   17,541 17,711
Total employee provisions   33,005 32,224
     
9B: Other provisions      
Provision for makegood   634 598
       
Other provisions are expected to be settled in:      
More than 12 months   634 598

 

  Provision for
restoration
Total
  $'000 $'000
Carrying amount 1 July 2010 598 598
Unwinding of discount or change in discount rate 36 36
Closing balance 2011 634 634

 

The Department currently has seven 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.

 

Note 10: Restructuring

Note 10A: Departmental restructuring

2010-11:

Services to territories

As a result of a restructuring of administrative arrangements on 14 September 2010, the Department relinquished responsibility for the following function:

  • 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.

In respect of function relinquished, the following assets and liabilities were transferred by the Department:

  2011
Assets relinquished: $'000
Cash 50
Trade receivables 2
Appropriation receivable 2,387
Other receivables 1
Leasehold improvements 175
Infrastructure, plant and equipment 129
Total assets relinquished 2,744
   
Liabilities relinquished:  
Trade creditors (80)
Other payables (25)
Employee provisions (1,988)
Other provisions (26)
Total liabilities relinquished (2,119)
Net assets relinquished 625

Australian Government Disaster Recovery Payment

As a result of a restructuring of administrative arrangements on 14 October 2010, the Department assumed responsibility for the Australian Government Disaster Recovery Payment (AGDRP) from the Department of Families, Housing, Community Services and Indigenous Affairs.

In respect of the functions assumed, the net book values of assets and liabilities transferred to the entity for no consideration and recognised as at the date of transfer were:

Assets assumed:  
Appropriation receivable 56
Total assets assumed 56
 
Liabilities assumed:  
Employee provisions (100)
Total liabilities assumed (100)
Net assets assumed (44)
   
Expenses:  
Recognised by the Department of Families, Housing, Community Services and Indigenous Affairs 693
Recognised by the Attorney-General's Department 801
Total expenses 1,494

Australian Government Security Vetting Agency

The Australian Government announced on 1 December 2009, that the Commonwealth security vetting process would be centralised in the Department of Defence to create a single, centralised vetting agency called the Australian Government Security Vetting Agency (AGSVA). As a result of a restructuring of administrative arrangement on 1 October 2010, the Department transferred security vetting to the Department of Defence.

During 2010-11 there was a transfer of twenty five staff from the Department to the Department of Defence, no assets or liabilities were transferred.

Note 10B: Administered restructuring

2010-11:

Services to territories

As a result of a restructuring of administrative arrangements on 14 September 2010, the Department relinquished responsibility for the following function:

  • 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.

In respect of function relinquished, the following assets and liabilities were transferred by the Department:

  2011
Assets relinquished: $'000
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:  
Suppliers (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 727,689

Australian Government Disaster Recovery Payment

As a result of a restructuring of administrative arrangements on 14 October 2010, the Department assumed responsibility for the Australian Government Disaster Recovery Payment (AGDRP) from the Department of Families, Housing, Community Services and Indigenous Affairs.

In respect of the functions assumed, the net book values of assets and liabilities transferred to the entity for no consideration and recognised as at the date of transfer were:

Assets assumed:  
Personal benefits receivable 299
Total assets assumed 299
   
Liabilities assumed -
Net assets assumed 299
   
Expenses:  
Recognised by the Department of Families, Housing, Community Services and Indigenous Affairs 10,413
Recognised by the Attorney-General's Department 907,926
Total expenses 918,339

 

Note 11: Cash flow reconciliation

  2011 2010
  $'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 3,971 1,817
Balance Sheet 3,971 1,817
Difference - -
   
Reconciliation of net cost of services to net cash from operating activities:    
Net cost of services (236,591) (236,556)
Add revenue from Government 218,819 236,312
     
Adjustments for non-cash items    
Depreciation/amortisation 18,139 17,995
Impairment of financial instruments 18 (61)
Loss on sale of assets - 1,476
Write-down of infrastructure, plant and equipment 170 158
Other asset movements - 616
Unwinding of makegood 37 32
     
Changes in assets and liabilities    
(Increase)/decrease in net receivables 172 1,240
(Increase)/decrease in prepayments (1,390) 184
(Increase)/decrease in inventories 13 7
Increase/(decrease) in employee provisions 2,769 (546)
Increase/(decrease) in supplier payables 2,290 (2,038)
Increase/(decrease) in other payables (2,847) (5,062)
Increase/(decrease) in other provisions 196 (170)
Net cash from operating activities 1,795 13,587

 

Note 12: Contingent liabilities and assets

  Claims for
damages or costs

Total
  2011 2010 2011 2010
  $'000 $'000 $'000 $'000
Contingent assets      
Balance from previous period - - - -
New 42 - 42 -
Total contingent assets 42 - 42 -
         
Contingent liabilities      
Balance from previous period - - - -
New (88) - (88) -
Total contingent liabilities (88) - (88) -
Net contingent liabilities (46) - (46) -

Quantifiable contingencies
Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $88,000 (2010: $nil).

Schedule of Contingencies also reports contingent assets in respect of claims for damages/costs of $42,000 (2010: $nil).

Unquantifiable contingent liabilities
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
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
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 26.

 

Note 13: Senior Executive Remuneration

 

Note 13A: Senior executive remuneration expense for the reporting period  
  2011 2010
  $ $
Short-term employee benefits:    
Salary (including annual leave taken) 11,627,212 12,264,358
Annual leave accrued 232,294 112,854
Performance bonuses - 647,378
Other 1,213,942 1,389,272
Total short-term employee benefits 13,073,448 14,413,862
     
Post-employment benefits    
Superannuation 2,053,168 2,338,420
Total post-employment benefits 2,053,168 2,338,420
     
Other long-term benefits    
Long service leave 552,313 304,456
Total other long-term benefits 552,313 304,456
Total 15,678,929 17,056,738

Notes:

1. Note 13A was prepared on an accrual basis (accordingly 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 as at the end of the Reporting Period
           
      as at 30 June 2011   as at 30 June 2010
      Fixed elements       Fixed elements  
Fixed Elements and Bonus Paid 1     Salary Allowances Total Bonus paid 2     Salary Allowances Total Bonus paid 2
    Senior
Executives
No.
$ $ $ $   Senior
Executives
No.
$ $ $ $
Total remuneration (including part-time arrangements):          
less than $150,000   4 126,365 20,924 147,289 9,617   7 106,077 25,165 131,242 12,271
$150,000 to $179,999   - - - - -   46 144,440 25,165 169,605 11,403
$180,000 to $209,999   48 162,491 26,655 189,146 12,050   19 175,209 25,165 200,374 17,842
$210,000 to $239,999   15 202,209 26,655 228,864 18,308   1 189,243 25,165 214,408 -
$240,000 to $269,999   1 227,244 26,655 253,899 14,659   3 223,120 25,165 248,285 23,002
$270,000 to $299,999   2 248,525 26,655 275,180 18,565   1 270,657 25,165 295,822 -
$300,000 to $329,999   1 299,685 26,655 326,340 -   - - - - -
$390,000 to $419,999   - - - - -   1 376,640 33,645 410,285 -
$450,000 to $479,999   1 438,457 31,300 469,757 -   - - - - -
                         
Total   72           78    

Notes:

1. This table reports on substantive senior executives who are employed by the Department as at the end of the reporting period. Fixed elements are based on the employment agreement of each individual - each row represents an average annualised figure (based on headcount) for the individuals in that remuneration package band (i.e. the 'Total' column).

2. Represents average actual bonuses paid during the reporting period in those remuneration package bands. The 'Bonus paid' is excluded from the 'Total' calculation, (for the purpose of determining remuneration package bands). The 'Bonus paid' within a particular band may vary between financial years due to factors such as individuals commencing with or leaving the entity during the financial year.

Variable Elements:

With the exception of performance bonuses, variable elements are not included in the 'Fixed Elements and Bonus Paid' table above. The following variable elements are available as part of senior executives' remuneration package:

(a) All senior executives were entitled to the following leave entitlements:

  • Annual Leave (AL): entitled to 20 days (2010: 20 days) each full year worked (pro-rata for part-time SES);
  • Personal Leave (PL): entitled to 22 days (2010: 22 days) or part-time equivalent; and
  • Long Service Leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act 1976.

(b) Senior executives were members of one of the following superannuation funds:

  • Commonwealth Superannuation Scheme (CSS): this scheme is closed to new members, and employer contributions were averaged 23.7 per cent (2010: 22.90 per cent) (including productivity component);
  • Public Sector Superannuation Scheme (PSS): this scheme is closed to new members, with current employer contributions set at 18.70per cent (2010: 17.10 per cent) (including productivity component);
  • Public Sector Superannuation Accumulation Plan (PSSap): employer contributions were set at 15.4 percent (2010: 15.4 per cent); and
  • Other: there were some senior executives who had their own superannuation arrangements (e.g. self-managed superannuation funds). Their employer contributions were set at 15.4 per cent (2010: 15.4 per cent).

Note 13C: Other Highly Paid Staff

During the reporting period, there were nil (2010: nil) employees whose salary plus performance bonus were $150,000 or more who are non-SES employees.

 

Note 14: Remuneration of auditors

  2011 2010
  $'000 $'000
     
Financial statement audit services were provided free of charge to the Department.    
     
The fair value of services provided was: 340 340

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

 

Note 15: Financial Instruments

  2011 2010
  $'000 $'000
15A: Categories of Financial Instruments  
Financial Assets  
Loans and receivables:  
Cash and cash equivalents 3,971 1,817
Goods and services receivable 4,990 6,586
Carrying amount of financial assets 8,961 8,403
     
Financial Liabilities  
At amortised cost:  
Trade creditors 17,942 15,643
Finance leases 658 2,982
Carrying amount of financial liabilities 18,600 18,625
   
15B: Net Income and Expense from Financial Assets  
Loans and receivables  
Impairment (18) 61
Net gain/(loss) loans and receivables (18) 61
   
15C: Net Income and Expense from Financial Liabilities  
Financial liabilities - at amortised cost  
Interest expense (180) (449)
Net gain/(loss) financial liabilities - at amortised cost (180) (449)

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.

The net expense from financial liabilities not at fair value from profit and loss is $448,669 (2009: $803,883).

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 $4,989,927 in 2011 (2010: $6,586,525). The Department has assessed the risk of default on payment and has allocated $35,997 in 2011 (2010: $23,227) 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.

  2011 2010
  $'000 $'000
Loans and receivables    
Cash and cash equivalents 3,971 1,817
Trade receivables 4,990 6,586
Total 8,961 8,403

The Department holds no collateral to mitigate against credit risk.

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

  Not Past
Due Nor Impaired
2011
Not Past
Due Nor Impaired
2010
Past due
or impaired
2011
Past due
or impaired
2010
  $'000 $'000 $'000 $'000
Loans and receivables        
Cash and cash equivalents 3,971 1,817 - -
Trade receivables 4,268 5,196 722 1,390
Total 8,239 7,013 722 1,390

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

  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 408 44 107 127 686
Total 408 44 107 127 686

Ageing of financial assets that were past due but not impaired for 2010:

  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 1,101 61 107 98 1,367
Total 1,101 61 107 98 1,367

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 2011

  On
demand
2011
$'000
within
1 year
2011
$'000
1 to 5
years
2011
$'000
>5
years
2011
$'000
Total
2011
$'000
Financial liabilities at amortised cost          
Finance leases - 658 - - 658
Trade creditors - 17,942 - - 17,942
Total - 18,600 - - 18,600

Maturities for non-derivative financial liabilities 2010

  On
demand
2010
$'000
within
1 year
2010
$'000
1 to 5
years
2010
$'000
>5
years
2010
$'000
Total
2010
$'000
Financial liabilities at amortised cost          
Finance leases - 2,168 814 - 2,982
Trade creditors - 15,643 - - 15,643
Total - 17,811 814 - 18,625

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: Income administered on behalf of Government

 

    2011 2010
  Notes $'000 $'000
REVENUE 1  
   
Taxation revenue  
16A: Indirect tax  
Other   - 2,813
Total indirect tax   - 2,813
   
16B: Other taxes  
Levies - Christmas Island conservation   361 924
   
Non-taxation revenue  
   
16C: Sale of goods and rendering of services  
Sale of goods - related entities   - -
Sale of goods - external parties   222 404
Rendering of services - related entities   380 1,785
Rendering of services - external parties   10,696 19,352
Total sale of goods and rendering services   11,298 21,541
   
16D: Fees and fines  
Fees - IOT vehicle registration, licences and programmes   867 1,510
   
16E: Interest  
Loans - State and Territory Governments   3,441 6,172
Other loans   119 265
Total interest   3,560 6,437
     
16F: Dividends      
Australian Government entities - Australian Government Solicitor   5,858 1,094
     
16G: Rental income      
Rent - IOT domestic and commercial properties   973 2,899
     
16H: Royalties      
Mining royalties - Christmas Island phosphate mine lease   562 1,545
     
16I: Competitive neutrality      
Australian Government entities - Australian Government Solicitor   4,872 4,990
     
16J: Recoveries 2      
Personal benefit recoveries   3,279 -
   
16K: Other  
Other   18 666

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect 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 $3.297m out of total personal benefit payments made of $978.815m (note 17D refers) represents the value of recovery action undertaken by DHS for overpayments made during the financial year.

GAINS

    2011 2010
  Notes $'000 $'000
16L: Other gains      
Sale of infrastructure, plant and equipment   - 39
Assets first found   - 77,010
Total other gains   - 77,049

 

Note 17: Expenses administered on behalf of Government

 

    2011 2010
  Notes $'000 $'000
EXPENSES 1      
     
17A: Employee benefits      
Wages and salaries   2,003 7,342
Leave and other entitlements   275 901
Superannuation:      
Defined benefit plans   6 7
Defined contribution plans   327 1,114
Other employee benefits   448 1,447
Total employee benefits   3,059 10,811
     
17B: Suppliers      
Goods and services      
Consultants and contractors   13,432 13,893
Administration of Territories   11,628 37,648
Training and equipment purchases   15,402 14,256
Travel   529 1,141
Information technology and communications   230 2,001
Emergency Management Australia payments to the States   6,652 -
General office   20,409 22,572
Total goods and services   68,282 91,511
     
Goods and services are made up of:      
Provision of goods - related entities   443 210
Provision of goods - external parties   12,858 12,768
Rendering of services - related entities   8,788 2,045
Rendering of services - external parties   46,193 76,488
Total goods and services   68,282 91,511
     
Other supplier expenses      
Minimum lease payments   528 889
Workers compensation expenses   - 1
Total other supplier expenses   528 890
Total supplier expenses   68,810 92,401
     
17C: Subsidies      
Payable to external parties:      
Law Courts Limited   9,698 34,242
Services to Indian Ocean Territories   26 4,282
Total subsidies   9,724 38,524
     
17D: Personal benefits 2      
Direct:    
Australian Government Disaster Recovery Payments   829,123 -
Payments to victims of natural disasters   149,692 -
Judges' Pensions Act 1968      
Current service cost   - 8,630
Interest on obligation   - 19,000
Other   - 21
Indirect:    
Federal Magistrates Act 1999      
Current service cost   - 409
Interest on obligation   - 6
Total personal benefits   978,815 28,066
     
17E: Grants    
Public sector:      
Australian Government entities (related entities)   9,667 2,518
State and Territory Governments   27,214 23,004
Local Governments   4,322 3,471
Private sector:      
Non-profit organisations   137,459 137,672
Other   15,593 14,007
Overseas   6,965 8,503
Other   204,996 206,730
Total grants   406,216 395,905
       
17F: Depreciation and amortisation      
Depreciation:      
Buildings   1,459 2,691
Infrastructure, plant and equipment   8,037 14,189
Heritage and cultural assets   112 563
Total depreciation   9,608 17,443
     
Amortisation:      
Intangibles: Phosphate mine lease   86 151
Intangibles: Software   313 295
Total amortisation   399 446
Total depreciation and amortisation   10,007 17,889
     
17G: Write-Down and impairment of assets      
Asset write-downs and impairments from:      
Impairment on financial instruments   8 182
Impairment on personal benefit recoveries   951 -
Impairment of infrastructure, plant and equipment   7 2,135
Impairment of intangibles   280 -
Total write-down and impairment of assets   1,246 2,317
     
17H: Losses from asset sales      
Infrastructure, plant and equipment:      
Proceeds from sale   - (137)
Carrying value of assets sold   - 331
Total loss from asset sales   - 194
     
17I: Payments to CAC bodies      
Australian Institute of Criminology   6,770 7,254
Australian Law Reform Commission   3,152 3,388
Criminology Research Council   205 337
Total payments to CAC bodies   10,127 10,979
     
17J: Transfer of assets      
Assets transferred free of charge 3   7,219 -
Total other expenses   7,219 -

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers

2 As a result of 14 October 2010 Administrative arrangements, the Department assumed responsibility for management and payment of the Australian Government Disaster Recovery Payment (AGDRP) from the Department of Families, Housing, Community Services and Indigenous Affairs. The program incorporates payments to individuals under the Disaster Income Recovery Subsidy Program and New Zealand nationals impacted by the natural disasters (Note 10A refers).).

3 This represents the transfer of the Australian Ministerial Briefing Room 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: Assets administered on behalf of Government

    2011 2010
  Notes $'000 $'000
FINANCIAL ASSETS      
       
18A: Cash and cash equivalents      
Cash on hand or on deposit   169 41
     
18B: Loans and receivables      
Goods and services:      
Goods and services receivable - related entities   31 85
Goods and services receivable - external parties   2,195 7,106
Total receivables for goods and services   2,226 7,191
     
Advances and loans1:      
State and Territory Governments 2   36,029 113,784
Other   - 9,914
Total advances and loans   36,029 123,698
     
Other receivables:      
Other   418 4,222
Personal benefit recoveries 3   3,578 -
GST receivable from Australian Taxation Office   3,446 3,404
Total other receivables   7,442 7,626
Total receivables (gross)   45,697 138,515
     
Less: impairment allowance account:      
Goods and services   (1) (166)
Personal benefit recoveries   (950) -
Total impairment allowance account   (951) (166)
Total trade and other receivables (net)   44,746 138,349
     
Receivables are expected to be recovered in:      
No more than 12 months   44,746 138,349
More than 12 months   - -
Total trade and other receivables (net)   44,746 138,349
     
Receivables were aged as follows:      
Not overdue   42,102 136,648
Overdue by:      
    0 to 30 days   - 594
    31 to 60 days   1 869
    61 to 90 days   1 7
    More than 90 days   3,593 397
Total receivables (gross)   45,697 138,515
     
The impairment allowance account is aged as follows:      
Overdue by:      
31 to 60 days   (1) -
61 to 90 days   - -
More than 90 days   (950) (166)
Total impairment allowance account   (951) (166)

Credit terms were within 30 days (2010: 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 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers)

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

 

 

      2011 2010
  Notes   $'000 $'000
Reconciliation of the Impairment Allowance Account:        
Movements in relation to 2011        
    Goods and services Personal benefit
recovery
Total
    $'000 $'000 $'000
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
     
Movements in relation to 2010        
Opening balance   208 - 208
Amounts recovered and reversed   (208) - (208)
Increase recognised in net deficit   166 - 166
Closing balance   166 - 166

 

18C: Investments accounted for using the equity method   2011 2010
Investments in associates: Notes $'000 $'000
Australian Institute of Criminology   1,918 1,763
Australian Government Solicitor   46,100 44,731
Australian Law Reform Commission   1,062 1,340
Criminology Research Council   879 743
High Court of Australia   222,825 215,211
Investments in jointly controlled entities:      
Law Courts Limited   123,268 131,475
Total equity accounted investments   396,052 395,263
     
Investments in equity accounted investments are expected to be recovered in:      
More than 12 months   396,052 395,263
Total equity accounted investments   396,052 395,263

 

Details of investments accounted for using the equity method

  Ownership
  2011 2010
Name of entity % %
Jointly controlled entities:    
Law Courts Limited 1 50.1 56.5
Associates:    
Australian Institute of Criminology 100 100
Australian Government Solicitor 100 100
Australian Law Reform Commission 100 100
Criminology Research Council 100 100
High Court of Australia 100 100

1 The fair value for the investment in Law Courts Limited is $123.268m (2010: $131.476m).

This note should be read in conjunction with Note 22.

 

    2011 2010
  Notes $'000 $'000
NON-FINANCIAL ASSETS      
       
18D: Land and buildings 1      
Freehold land at fair value   - 82,241
Buildings on freehold land:      
Fair value   - 146,248
Accumulated depreciation   - (67)
Total buildings on freehold land   - 146,181
Total land and buildings 18F - 228,422
       
18E: Infrastructure, plant and equipment 1      
Heritage and cultural:      
Nolan artworks - at fair value   - 66,550
Accumulated depreciation   - (2)
Total heritage and cultural 18F - 66,548
       
Other infrastructure, plant and equipment:      
Fair value   11,642 370,745
Accumulated depreciation   (5,663) (3,256)
Total other infrastructure, plant and equipment 18F 5,979 367,489
Total infrastructure, plant and equipment   5,979 434,037

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers).

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

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

 

Note 18F: Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment (2010-11)
  Land Buildings Total land
and buildings
Heritage
and
cultural
Other infrastructure, 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 154 390 544 - 22,632 23,176
Depreciation expense - (1,459) (1,459) (112) (8,037) (9,608)
Other movements: assets transferred to Department of Regional Australia, Regional Development & Local Government 1,625 (390) 1,235 - - 1,235
Other movements 1 - - - - (7,219) (7,219)
Disposals      
From disposal of entities or operations (including restructuring) (82,395) (145,112) (227,507) (66,436) (368,879) (662,822)
Other (1,625)[1] 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 - -[2] - - (5,663)[3] (5,663)
Net book value 30 June 2011 - - - - 5,979 5,979

1 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).

Reconciliation of the opening and closing balances of property, infrastructure, plant and equipment (2009-10)

  Land Buildings Total land
and buildings
Heritage
and
cultural
Other
infrastructure,
plant &
equipment
Total
  $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2009  
Gross book value 47,541 67,203 114,744 53,002 166,965 334,711
Accumulated depreciation and impairment - (4,698) (4,698) (800) (19,987) (25,485)
Net book value 1 July 2009 47,541 62,505 110,046 52,202 146,978 309,226
   
Additions - 110 110 - 46,026 46,136
Assets first found 16,742 11,576 28,318 2,119 48,470 78,907
Revaluation and impairments recognised through asset revaluation reserves 18,627 74,764 93,391 12,790 141,627 247,808
Depreciation expense - (2,691) (2,691) (563) (14,189) (17,443)
Disposals (669) (83) (752) - (1,423) (2,175)
Net book value 30 June 2010 82,241 146,181 228,422 66,548 367,489 662,459
   
Net book value as of 30 June 2010 represented by:  
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 30 June 2010 82,241 146,181 228,422 66,548 367,489 662,459

 

    2011 2010
  Note $'000 $'000
18G: Intangibles      
Computer software:      
Internally developed - in use   - 373
Purchased   1,105 1,245
Total computer software (gross)   1,105 1,618
Accumulated amortisation   (495) (319)
Total computer software (net)   610 1,299
       
Other intangibles: 1      
Phosphate mine lease - at cost   - 3,000
Total other intangibles (gross)   - 3,000
Accumulated amortisation   - -
Total other intangibles (net)   - 3,000
Total intangibles 18H 610 4,299

No indicators of impairment were found for intangible assets.

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

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers).

 

Note 18H 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

Reconciliation of the opening and closing balances of intangibles (2009-10)

  Computer
software
internally
developed
Computer
software
purchased
Phosphate
mine lease
Total
  $’000 $’000 $’000 $’000
As at 1 July 2009      
Gross book value 35 112 1,685 1,832
Accumulated amortisation and impairment (1) (23) (218) (242)
Net book value 1 July 2009 34 89 1,467 1,590
       
Additions:      
By purchase - 1,133 - 1,133
Internally developed 338 - - 338
Revaluation and impairments recognised through asset revaluation reserves - - 1,684 1,684
Amortisation (11) (284) (151) (446)
Net book value 30 June 2010 361 938 3,000 4,299
     
Net book value as of 30 June 2010 represented by:    
Gross book value 373 1,245 3,000 4,618
Accumulated amortisation and impairment (12) (307) - (319)
Net book value 30 June 2010 361 938 3,000 4,299
    2011 2010
  Notes $'000 $'000
18I: Inventories 1      
Inventories held for distribution   - 2,008
Total inventories   - 2,008
       
1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010.
       
During 2010-11, $25,360 of inventory held for distribution was recognised as an expense (2009-10: $116,000).      
       
All inventory is expected to be consumed in the next 12 months.    
       
18J: Other non-financial assets    
Prepayments   308 6
Total other non-financial assts   308 6
       
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   18 6
More than 12 months   290 -
Total other non-financial assets   308 6

 

Note 19: Liabilities administered on behalf of Government

    2011 2010
  Notes $'000 $'000
PAYABLES      
       
19A: Suppliers      
Trade creditors and accruals   2,461 8,322
       
Supplier payables expected to be settled within 12 months:      
Related entities   9 393
External parties   2,452 7,929
Total suppliers   2,461 8,322
       
Supplier payables are current liabilities. Settlement is usually net 30 days.      
       
19B: Grants and subsidies      
Public sector:      
Australian Government entities (related entities)   4,957 1,861
State and Territory Governments   314 7,166
Local Governments   2,047 1,370
Private sector:      
Non-profit organisations   3,358 5,712
Other   10,023 2,922
Total grants and subsidies   20,699 19,031
       
Total grants and subsidies - are expected to be settled in:      
No more than 12 months   20,699 19,031
Total grants and subsidies   20,699 19,031
       
Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.
       
19C: Other payables      
Prepayments received/unearned income   899 1,227
Salaries and wages   12 121
Superannuation   2 22
Other   48 385
Total other payables   961 1,755
       
Total other payables are expected to be settled in:      
No more than 12 months   961 1,755
Total other payables   961 1,755
       
19D: Employee provisions      
Leave   46 1,868
       
Employee provisions are expected to be settled in:      
No more than 12 months   27 1,782
More than 12 months   19 86
Total employee provisions   46 1,868
       
19E: Asbestos removal provision 1      
Asbestos removal provision   - 8,321
       
19F: Phosphate mine rehabilitation provision 1      
Phosphate mine rehabilitation provision   - 2,984

 

  Provision for Asbestos Removal Provision for Phosphate Mine Rehabilitation Total 
  $'000 $'000 $'000
Carrying amount 1 July 2010 8,321 2,984 11,305
Amounts used (1,409) - (1,409)
Amounts transferred under restructuring of administrative arrangements (6,912) (2,984) (9,896)
Closing Balance 2011 - - -

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers).

 

Note 20: Administered reconciliation table

    2011 2010
  Notes $'000 $'000
Opening administered assets less administered liabilities as at 1 July   1,160,144 85,600
Plus: Administered income   31,648 121,468
Less: Administered expenses (non CAC)   (1,485,099) (586,016)
    Payments to CAC Act bodies   (10,127) (10,979)
Administered transfers to/from Australian Government:      
Appropriation transfers from OPA:      
    Annual appropriations for administered expenses (non CAC)   532,389 599,902
    Annual appropriations capital items   50,089 29,110
    Annual appropriations for payment to CAC Act bodies   10,127 10,979
    Annual appropriation for GST   21,913 20,193
    Special appropriations (unlimited) (non CAC)   1,002,535 7,022
Transfers to OPA      
    Transfers to OPA   (49,826) (69,931)
    GST refund to OPA   (25,075) (16,245)
    Special appropriations (unlimited) (non CAC)   (88,407) (20,724)
Restructuring 10B (727,402) 745,174
Administered investments   788 295,350
Actuarial gain - Judges' Pension Scheme taken to equity   - (49,500)
Actuarial gain - Federal Magistrates Scheme taken to equity   - (1,259)
Closing administered assets less administered liabilities as at 30 June   423,697 1,160,144

 

Note 21: Administered contingent assets and liabilities

Unquantifiable administered contingencies

Natural Disaster Relief and Recovery Arrangements

As a result of the flooding and severe weather events that occurred in 2010-11, a package of concessional interest rate loans was made available by the Government for eligible small businesses and primary producers whose properties have suffered damage as a direct result of the floods.

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 26.

 

 

Note 22: Administered investments

The Australian Government owns 100% of the following entities:

  • Australian Institute of Criminology - s5(2)(a) of the Criminology Research Act 1971
  • Criminology Research Council - s34(2)(a) of the Criminology Research Act 1971
  • Australian Law Reform Commission - s5(2)(a) of the Australian Law Reform Commission Act 1966
  • 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 2011.

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 Australian Institute of Criminology has an objective and independent national focus in studying crime and criminal justice and disseminating criminal justice information
  • The Criminology Research Council provides a forum for Attorneys-General and their representatives around Australia to assess needs in the field of criminological research and to fund specific research projects in universities, government agencies and elsewhere
  • The Australian Law Reform Commission conducts independent references (inquiries) into areas of federal law reform at the request of the Attorney-General
  • 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 23: Administered financial instruments 1

    2011 2010
  Notes $'000 $'000
23A: Categories of financial instruments  
Financial assets  
Loans and receivables:  
Cash and cash equivalents 18A 169 41
Trade receivables 18B 2,226 7,191
Loans 18B 36,029 123,698
Other receivables 18B 418 4,222
Personal benefit recoveries 18B 3,578 -
Available for sale:      
Investments 18C 396,052 395,263
Carrying amount of financial assets   438,472 530,415
       
Financial liabilities  
At amortised cost      
Trade creditors 19A 2,461 8,322
Grants and subsidies payable 19B 20,699 19,031
Carrying amount of financial liabilities   23,160 27,353
       
23B: Net income and expense from financial assets  
Loans and receivables  
Interest revenue 16E 3,560 6,437
Impairment on financial instruments 17G (8) (182)
Impairment of personal benefit recoveries 17G (951) -
Net gain/(loss) and receivables   2,601 6,255
     
Available for sale      
Dividend revenue 16F 5,858 1,094
Net gain/(loss) available for sale   5,858 1,094
     
Net gain from financial assets   8,459 7,349

23C: 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.[1]

23D: 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 $42,250,901 (2010: $135,110,730). The Department has assessed the risk of default on payment and has allocated $951,171 (2010: $166,344) 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 2011
$'000
2010
$'000
Loans and receivables      
Cash and cash equivalents 18A 169 41
Trade receivables 18B 2,226 7,191
Loans 18B 36,029 123,698
Other receivables 18B 418 4,222
Personal benefit recoveries 18B 3,578 -
Available for sale      
Investments 18C 396,052 395,263
Total   438,472 530,415

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

  Not Past
Due Nor
Impaired
2011
$'000
Not Past
Due Nor
Impaired
2010
$'000
Past due
or
impaired
2011
$'000
Past due
or
impaired
2010
$'000
Loans and receivables        
Cash and cash equivalents 169 41 - -
Trade receivables 2,209 5,490 17 1,701
Loans 36,029 123,698 - -
Other receivables 418 4,222 - -
Personal benefit recoveries - - 3,578 -
Available for sale        
Investments 396,052 395,263 - -
Total 434,877 528,714 3,595 1,701

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

  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

Ageing of financial assets that are past due but not impaired for 2010

  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 594 869 7 65 1,535
Total 594 869 7 65 1,535

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.

23E: 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 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 19A - 2,461 - - 2,461
Grants and subsidies payable 19B - 20,699 - - 20,699
Total   - 23,160 - - 23,160

Maturities for non-derivative financial liabilities 2010

  Notes On
demand
2010
$'000
within
1 year
2010
$'000
1 to 5
years
2010
$'000
>5
years
2010
$'000
Total
2010
$'000
Liabilities at amortised cost            
Trade creditors 19A - 8,322 - - 8,322
Grants and subsidies payable 19B - 19,031 - - 19,031
Total   - 27,353 - - 27,353

23F: 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.

23G: Concessional Loans    
  2011 2010
  $'000 $'000
Natural Disaster Relief and Recovery Arrangements    
Nominal Value 48,949 56,945
Less: Unexpired discount (5,315) (5,424)
Principle repayment (7,605) (7,996)
Less: Impairment - -
Carrying Value 36,029 43,525
   
Total 36,029 43,525

1 On 14 September 2010, responsibility for Australian Territories functions were transferred to the Department of Regional Australia, Regional Development and Local Government with effect from 1 October 2010 (Note 10B refers).

 

Note 24: Appropriations

Table A: Annual Appropriations ('Recoverable GST exclusive')

  2011 Appropriation
  Appropriation Act FMA Act      
  Annual Appropriation Appropriations reduced (1) AFM Section 30 Section 31 (GST excl.) 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)

Notes:

(1) Appropriations reduced under Appropriation Acts (No 1, 3, 5) 2010-11: sections 10,11, 12 and 15 and under Appropriation Acts (No 2, 4, 6) 2010-11: sections 12, 13, 14 and 17. ( Refer Note 24E).

(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 2010-11 financial year for expenses accrued in 2009-10 financial year

  2010 Appropriation
  Appropriation Act FMA Act      
  Annual Appropriation Appropriations reduced (1) AFM Section 30 Section 31 (GST excl.) Section 32 Total appropriation Appropriation applied in 2010 (current and prior years) Variance
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL                  
Ordinary annual services (2) 239,453 - - - 28,255 381 268,089 277,977 (9,888)
Other services                  
Equity (3) 8,374 - - -   - 8,374 1,335 7,039
Total Departmental 247,827 - - - 28,255 381 276,463 279,312 (2,849)
ADMINISTERED                  
Ordinary annual services (4)                  
Administered items 621,519 (67,304) - 2,998   - 557,213 568,611 (11,398)
Payments to CAC Act bodies 10,979 - - -   - 10,979 10,979 -
Other services                  
States, ACT, NT and Local Governments (5) 7,400 (2,655) - -   - 4,745 - 4,745
Administered assets and liabilities 24,990 - - -   - 24,990 24,974 16
Total Administered 664,888 (69,959) - 2,998   - 597,927 604,564 (6,637)

(1) Appropriations reduced under Appropriation Acts (No 1, 3, 5) 2009-10: sections 10,11, 12 and 15 and under Appropriation Acts (No 2, 4, 6) 2009-10: sections 12, 13, 14 and 17. ( Refer Note 24E).

(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

(5) The expenditure for the 2009-10 financial year was carried over to 2010-11 financial year.

 

Table B: Unspent Departmental Annual Appropriations ('Recoverable GST exclusive')

  2011 2010
Authority $'000 $'000
2007/08 Act 2 - Non Operating - Equity Injection - 6,648
2008/09 Act 2 - Non Operating - Equity Injection - 7,998
2009/10 Act 2 - Non Operating - Equity Injection - 7,039
2010/11 Act 2 - Non Operating - Equity Injection 2,920 -
2007/08 Act 2 - Non Operating - Previous Years Outputs 2,105 2,105
2008/09 Act 4 - Non Operating - Equity Injection 86 86
2009/10 Act 2 - Non Operating - Previous Years Outputs 2,228 2,228
2009/10 Act 4 - Non Operating - Previous Years Outputs 489 489
2007/08 Appropriation (NTER) Act (no.1) 2007-2008 287 287
2006/07 Appropriation Act 1 - 16,843
2007/08 Appropriation Act 1 8,074 16,478
2008/09 Appropriation Act 1 27,979 29,436
2009/10 Appropriation Act 1 4,653 26,081
2010/11 Appropriation Act 1 36,354 -
2010/11 Appropriation Act 1 - Capital Budget (DCB) - - Non Operating 8,933 -
2005/06 Appropriation Act 3 - 2,401
2006/07 Appropriation Act 3 1,731 1,731
2008/09 Appropriation Act 3 1,996 1,996
2009/10 Appropriation Act 3 79 180
2010/11 Appropriation Act 3 32 -
Total 97,946 122,026

 

Table C: Special Appropriations ('Recoverable GST exclusive')

The Attorney-General’s Department notes that the Department of Finance and Deregulation has recently provided information to all agencies regarding the need for risk assessments in relation to compliance with conditions on payments from special appropriations and special accounts.  The Department is currently undertaking a review of compliance with statutory and other legal requirements, including constitutional requirements, relevant to its special appropriations and special accounts.

      Appropriation Applied
  2011 2010
Authority Type Purpose $'000 $'000
National Handgun Buyback 1996 Unlimited To provide for financial assistance for qualifying payments made by States and other expenditure in connection with the implementation of the handgun buyback, and for related purposes. All transactions under this Act are recognised as Administered items. 55 -
     
National Handgun Buyback 2003 Unlimited To provide for financial assistance for qualifying payments made by States and other expenditure in connection with the implementation of the handgun buyback, and for related purposes. All transactions under this Act are recognised as Administered items. - 137
     
Judges Pension Act 1968 Unlimited To make provisions for pensions for judges and their families. All transactions under this Act are recognised as Administered items.1 - 14,373
     
Federal Magistrates Act 1999 Unlimited To make provisions for death and invalidity benefits for judges.1 - 176
     
Law Officers Act 1964 Unlimited To make provisions for pensions of former Solicitors General. All transactions under this Act are recognised as Administered items. - 163
     
Social Security (Administration) Act 1999 Unlimited To enable the payment of income support payments. All transactions under this Act are recognised as Administered items.2 829,123 -
       
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. 2 19
    -  
Total     829,180 14,868

1. Administration of this function was transferred to the Department of Finance and Deregulation on 1 January 2010.

2. Administration of this function was transferred from the Department of Families, Housing, Community Services and Indigenous Affairs on 14 October 2010. Note 10 Refers.

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:

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

Table D: Disclosure by Agent in Relation to Annual and Special Appropriations ('Recoverable GST exclusive')

  Department of Education, Employment and Workplace Arrangements - 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 - -
Total payments - -
   
     
  Department of Education, Employment and Workplace Arrangements - 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
2010 $'000 $'000
Total receipts 243 3,047
Total payments 243 3,047

Other Special Appropriations that had nil balances at the end of the 2010-11 financial year and where there were no transactions debited or credited to them during the 2010-11 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 E: Reduction in Administered Items ('Recoverable GST exclusive')

  Amount required 2 - by Appropriation Act Amount required 2 - as represented by: Total amount required 2 Total amount appropriated 3 Total reduction 4
2011                
Ordinary Annual Services Act (No.1) Act (No.3) Act (No.5) Spent Retention      
Outcome 1 415,476,268.43 105,303,181.13 - 499,401,532.37 21,377,917.19 520,779,449.56 578,813,000.00 58,033,550.44
Outcome 2 10,423,661.84 - - 10,423,661.84 - 10,423,661.84 18,005,000.00 7,581,338.16
           
Other Services Act (No.2) Act (No.4) Act (No.6) Spent Retention      
Specific Payments to States, ACT, NT and Local government                
Outcome 1 6,899,000.00 - - 6,899,000.00 - 6,899,000.00 7,608,000.00 709,000.00

1. Administered items for 2010-11 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2010-11 annual report. This reduction is effective in 2011-12, but the amounts are reflected in Table A in the 2010-11 financial statements in the column 'Appropriation reduced' as they are adjustments to 2010-11 appropriations.

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

3. Total amount appropriated in 2010-11.

4. Total reduction effective 2011-12.

  Amount required 2 - by Appropriation Act Amount required 2 - as represented by: Total amount required 2 Total amount appropriated 3 Total reduction 4
2010                
Ordinary Annual Services Act (No.1) Act (No.3) Act (No.5) Spent Retention      
Outcome 1 439,694,836.95 - - 429,613,334.09 10,081,502.86 439,694,836.95 500,872,080.00 61,177,243.05
Outcome 2 117,579,000.00 893,508.81 - 106,968,452.04 11,504,056.77 118,472,508.81 124,599,000.00 6,126,491.19
           
Other Services Act (No.2) Act (No.4) Act (No.6) Spent Retention      
Specific Payments to States, ACT, NT and Local government                
Outcome 1 - 4,745,000.00 - - 4,745,000.00 4,745,000.00 7,400,000.00 2,655,000.00

1. Administered items for 2009-10 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2009-10 annual report. This reduction is effective in 2010-11, but the amounts are reflected in Table A in the 2009-10 financial statements in the column 'Appropriation reduced' as they are adjustments to 2009-10 appropriations.

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

3. Total amount appropriated in 2009-10.

4. Total reduction effective 2010-11.

 

Note 25: Special Accounts

The Attorney-General’s Department notes that the Department of Finance and Deregulation has recently provided information to all agencies regarding the need for risk assessments in relation to compliance with conditions on payments from special appropriations and special accounts.  The Department is currently undertaking a review of compliance with statutory and other legal requirements, including constitutional requirements, relevant to its special appropriations and special accounts.

Christmas Island Phosphate Mining Rehabilitation (Administered) 2011 2010
$'000 $'000
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.
This account is non-interest bearing
Balance brought forward from previous period 2,788 2,696
Receipts 610 1,016
Total increase 610 1,016
Payments made: suppliers - (924)
Restructuring transfer (3,398) -
Total decrease (3,398) (924)
Balance carried to next period (excluding investment balances) and represented by: - 2,788
Cash - held in the Official Public Account - 2,788
Total balance carried to the next period - 2,788

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 10 B refers.

Services on behalf of other Governments and non public bodies (Administered) 2011 2010
$'000 $'000
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.
This account is non-interest bearing
Balance brought forward from previous period 15,755 13,877
Costs recovered - 684
Other receipts 1 85,931 6,885
Total increase 85,931 7,569
Payments made: suppliers 1 (85,849) (5,691)
Total decrease (85,849) (5,691)
Balance carried to next period (excluding investment balances) and represented by: 15,837 15,755
Cash - held in the Official Public Account 15,837 15,755
Total balance carried to the next period 15,837 15,755

1 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.

Other Trust Monies Account (Administered) 2011 2010
$'000 $'000
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.
This account is non-interest bearing
Balance brought forward from previous period 1,846 1,926
Other receipts 1,701 330
Total increase 1,701 330
Payments made: suppliers (1,678) (410)
Total decrease (1,678) (410)
Balance carried to next period (excluding investment balances) and represented by: 1,869 1,846
Cash - held in the Official Public Account 1,869 1,846
Total balance carried to the next period 1,869 1,846

 

Northern Territory Flexible Funding Pool Special Account

The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) made the following payments out of the Northern Territory Flexible Funding Pool (NTFFP) Special Account:

Administered: Nil (2009-10: $3,952,080)

Note: In 2007-08 FaHCSIA made payments out of the NTFFP Special Account directly to third parties on behalf of the Attorney-General's Department. Subsequent arrangements in 2008-09 involved payments from FaHCSIA to the Attorney-General's Department for payments to third parties.

 

Note 26: Compensation and Debt Relief

  2011 2010
  $ $
Departmental    
     
No ‘Act of Grace’ expenses were incurred during the reporting period. (2010: 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. (2010: No waivers) - -
 
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2010: one payment) - 6,000
 
No ex-gratia payments were provided for during the reporting period.
(2010: No payments)
- -
 
One payment was provided in special circumstances relating to APS employment pursuant to s73 of the Public Service Act 1999 during the reporting period (2010: No payments). 14,000 -
     
Administered    
 
No ‘Act of Grace’ expenses were incurred during the reporting period. (2010: 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. (2010: No waivers) - -
 
No payments were provided for under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2010: No payments) - -
 
No ex-gratia payments were provided for during the reporting period.
(2010: 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. (2010: No payments) - -

 

Note 27: 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 2010-11 Budget.

27A: Net Cost of Outcome Delivery
  Outcome 1 Outcome 2 Payments to CAC Act bodies* Total
  2011 2010 2011 2010 2011 2010 2011 2010
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Expenses                
Administered 1,450,220 470,766 34,876 115,341 10,127 10,979 1,495,223 597,086
Departmental 264,058 252,858 1,970 11,572 - - 266,028 264,430
Total 1,714,278 723,624 36,846 126,913 10,127 10,979 1,761,251 861,516
                 
Income from non-government sector                
Administered 8,876 8,559 5,982 96,468 - - 14,858 105,027
Departmental 29,059 26,997 37 526 - - 29,096 27,523
Total 37,935 35,556 6,019 96,994 - - 43,954 132,550
                 
Other own-source income                
Administered 14,027 6,450 2,763 9,991 - - 16,790 16,441
Departmental 340 334 1 17 - - 341 351
Total 14,367 6,784 2,764 10,008 - - 17,131 16,792
                 
Net cost/(contribution) of outcome delivery 1,661,976 681,284 28,063 19,911 10,127 10,979 1,700,166 712,174

Outcomes 1 and 2 are 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 and Outcome 2 Resourcing Table of this Annual Report.

On 14 September 2010, responsibility for Australian territories function was transferred to the Department of Regional Australia, Regional Development and Local Government with effect 1 October 2010. The 2010-11 actual expenses for Outcome 2 reflect this transfer.

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

27B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcomes  
   
  Outcome 1 Outcome 2 Total
  2011 2010 2011 2010 2011 2010
  $’000 $’000 $’000 $’000 $’000 $’000
Departmental Expenses:            
Employees 163,679 149,529 1,722 8,030 165,401 157,559
Suppliers 81,829 84,062 241 2,754 82,070 86,816
Depreciation and amortisation 18,132 17,310 7 685 18,139 17,995
Other expenses 418 1,957 - 103 418 2,060
Total 264,058 252,858 1,970 11,572 266,028 264,430
             
Departmental Income:            
Income from government 216,789 225,278 2,030 11,034 218,819 236,312
Sale of goods and services 29,059 26,997 37 526 29,096 27,523
Other income 340 334 1 17 341 351
Total 246,188 252,609 2,068 11,577 248,256 264,186
             
Departmental Assets:            
Cash and cash equivalents 3,971 1,738 - 79 3,971 1,817
Trade and other receivables 104,672 123,091 - 5,797 104,672 128,888
Land and buildings 64,948 56,130 - 2,496 64,948 58,626
Infrastructure, plant and equipment 23,107 21,341 - 969 23,107 22,310
Intangibles 38,251 18,458 - 838 38,251 19,296
Inventories 58 68 - 3 58 71
Other non-financial assets 2,130 711 - 29 2,130 740
Total 237,137 221,537 - 10,211 237,137 231,748
             
Departmental Liabilities:            
Suppliers 17,942 15,465 - 178 17,942 15,643
Other payables 13,113 15,376 - 388 13,113 15,764
Leases 658 2,852 - 130 658 2,982
Other interest bearing liabilities -   - - - -
Employee provisions 33,005 30,824 - 1,400 33,005 32,224
Other provisions 634 572 - 26 634 598
Total 65,352 65,089 - 2,122 65,352 67,211

Outcomes 1 and 2 are described in Note 1.1.

On 14 September 2010, responsibility for Australian territories function was transferred to the Department of Regional Australia, Regional Development and Local Government with effect 1 October 2010. The 2010-11 actual expenses for Outcome 2 reflect this transfer.

 

27C: Major Classes of Administered Expense, Income, Assets and Liabilities by OutcomesOutcome 1Outcome 2Payments to CAC Act bodies*Total
  2011 2010 2011 2010 2011 2010 2011 2010
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
Administered Expenses:                
Employee benefits 393 411 2,666 10,400 - - 3,059 10,811
Suppliers 48,043 21,522 20,767 70,879 - - 68,810 92,401
Subsidies 9,698 34,245 26 4,279 - - 9,724 38,524
Personal benefits 1 978,815 28,066 - - - - 978,815 28,066
Grants 401,718 383,346 4,498 12,559 - - 406,216 395,905
Write-down and impairment of assets 1,246 6 - 2,505 - - 1,246 2,511
Depreciation and Amortisation 3,088 3,170 6,919 14,719 - - 10,007 17,889
CAC Act body payment items - - - - 10,127 10,979 10,127 10,979
Other Expenses 7,219 - - - - - 7,219 -
Total 1,450,220 470,766 34,876 115,341 10,127 10,979 1,495,223 597,086
                 
Administered Income:                
Dividends 5,858 1,094 - - - - 5,858 1,094
Competitive Neutrality 4,872 4,990 - - - - 4,872 4,990
Sale of goods and rendering of services 6,431 7,535 4,867 14,006 - - 11,298 21,541
Fees and fines - - 867 1,510 - - 867 1,510
Interest 2,445 1,024 1,115 5,413 - - 3,560 6,437
Rental income - - 973 2,899 - - 973 2,899
Royalties - - 562 1,545 - - 562 1,545
Recoveries 3,279 - - - - - 3,279 -
Other revenue 18 366 - 300 - - 18 666
Other gains - - - 77,049 - - - 77,049
Indirect tax - - - 2,813 - - - 2,813
Other tax - - 361 924 - - 361 924
Total 22,903 15,009 8,745 106,459 - - 31,648 121,468
                 
Administered Assets:                
Cash and cash equivalents 169 - - 41 - - 169 41
Loans and Receivables 44,746 44,224 - 94,125 - - 44,746 138,349
Investments 396,052 395,263 - - - - 396,052 395,263
Land and Buildings - - - 228,422 - - - 228,422
Property, Plant and Equipment 5,979 21,552 - 412,485 - - 5,979 434,037
Inventories - - - 2,008 - - - 2,008
Intangibles 610 140 - 4,159 - - 610 4,299
Other non-financial assets 308 - - 6 - - 308 6
Total 447,864 461,179 - 741,246 - - 447,864 1,202,425
                 
Administered Liabilities:                
Suppliers 2,461 3,053 - 5,269 - - 2,461 8,322
Personal benefits - - - - - - - -
Grants and subsidies 20,699 11,732 - 7,299 - - 20,699 19,031
Other payables 961 1,541 - 214 - - 961 1,755
Employee provisions 46 - - 1,868 - - 46 1,868
Asbestos removal provision - - - 8,321 - - - 8,321
Phosphate mine rehabilitation provision - - - 2,984 - - - 2,984
Total 24,167 16,326 - 25,955 - - 24,167 42,281

Outcomes 1 and 2 are described in Note 1.1.

On 14 September 2010, responsibility for Australian territories function was transferred to the Department of Regional Australia, Regional Development and Local Government with effect 1 October 2010. The 2010-11 actual expenses for Outcome 2 reflect this transfer.

1 As a result of 14 October 2010 Administrative arrangements, the Department assumed responsibility for management and payment of the Australian Government Disaster Recovery Payment (AGDRP) from the Department of Families, Housing, Community Services and Indigenous Affairs. The program incorporates payments to individuals under the Disaster Income Recovery Subsidy Program and New Zealand nationals impacted by the natural disasters (Note 10A and 10B refers).

 

Note 28: Comprehensive Income (Loss) Attributable to the entity

 

 

 

 

    2011 2010
    Notes $'000 $'000
   
 
Total Comprehensive income (loss) attributable to the entity  
Total Comprehensive income (loss) as per the Statement of Comprehensive Income   (17,772) (244)
Plus: non-appropriated expenses      
Depreciation and amortisation expenses   18,139 -
Total Comprehensive income (loss) attributable to the entity   367 (244)

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