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Part 4: Financial statements

Contents

 

Independent Auditor's report

Image of top of letterhead with the Australian National Audit Office logo on the right and the Commonwealth of Australia crest on the left.  

 

GPO Box 707 CANBERRA AG 2601
19 National Circuit BARTON AO 2600
Phone (02) 6203 7300 Fax (02) 6203 7777


 

 

 

To the Attorney-General

Report on the Financial Statements

I have audited the accompanying financial statements of the Attorney-General's Department for the year ended 30 June 2013, which comprise: a Statement by the Chief Executive Officer and Chief Financial Officer; Statement of Comprehensive Income; Balance Sheet; Statement of Changes in Equity; Cash Flow Statement; Schedule of Commitments; Schedule of Contingencies; Administered Schedule of Comprehensive Income; Administered Schedule of Assets and Liabilities; Administered Reconciliation Schedule; Administered Cash Flow Statement; Schedule of Administered Commitments; Schedule of Administered Contingencies; and Notes to and forming part of the Financial Statements, comprising a Summary of significant accounting policies and other explanatory information.

Chief Executive's Responsibility for the Financial Statements

The Chief Executive of the Attorney-General's Department is responsible for the preparation of financial statements that give a true and fair view in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, including the Australian Accounting Standards, and for such internal control as is necessary to enable the preparation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on the financial statements based on my audit. I have conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. These auditing standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Attorney-General's Department's preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Attorney-General's Department's internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of accounting estimates made by the Chief Executive of the Attorney-General's Department, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Independence

In conducting my audit, I have followed the independence requirements of the Australian National Audit Office, which incorporate the requirements of the Australian accounting profession.

Opinion

In my opinion, the financial statements of the Attorney-General's Department:

  1. have been prepared in accordance with the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, including the Australian Accounting Standards; and
  2. give a true and fair view of the matters required by the Finance Minister's Orders including the Attorney-General's Department's financial position as at 30 June 2013 and of its financial performance and cash flows for the year then ended.

Report on Other Legal and Regulatory Requirements

Note 29 Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund discloses information on the Attorney-General's Department's review of its exposure to risks of not complying with statutory conditions on payments from special appropriations and special accounts. Non-compliance with statutory conditions may lead to a contravention of section 83 of the Constitution, which requires that no money shall be drawn from the Treasury of the Commonwealth except under an appropriation made by law.

As disclosed in Note 29, payments made under the Social Security Act 1991 and Social Security (Administration) Act 1999 have been identified as potentially in breach of section 83 of the Constitution, totaling $312,855.

 

Australian National Audit Office

 

Signature of John McCullogh, Executive Director,Delegate of the Auditor-General.

 

John McCullough
Executive Director
Delegate of the Auditor-General
Canberra
27 August 2013

 

 

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Statement by the Chief Executive Officer and the Chief Financial Officer

In our opinion, the attached financial statements for the year ended 30 June 2013 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.

 

Image of two signatures. The one on the left is the signature of Roger Wilkins AO, Chief Executive Officer dated 27 August 2013. The signature on the right is of Stephen Lutze, Chief Financial Officer dated 27 August 2013.

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STATEMENT OF COMPREHENSIVE INCOME for the Attorney-General's Department
for the period ended 30 June 2013
 
  2013 2012
  Notes $'000 $'000
EXPENSES
Employee benefits 3A 160,233 177,910
Suppliers 3B 79,694 80,460
Grants 3C 708 1,017
Depreciation and amortisation 3D 21,499 22,429
Finance costs 3E - 37
Write-down and impairment of assets 3F 56 154
Other expenses 3G 15 45
Transfer of assets 1 3H,10 - 38,340
Total expenses   262,205 320,392
 
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services 4A 43,440 36,541
Total own-source revenue   43,440 36,541
 
Gains
Other gains 4B 405 405
Total gains   405 405
Total own-source income   43,845 36,946
 
Net cost of services   218,360 283,446
 
Revenue from Government  4C 198,397 205,655
Deficit attributable to the Australian Government   (19,963) (77,791)
 
OTHER COMPREHENSIVE INCOME
Items not subject subsequent reclassification to profit or loss
Changes in asset revaluation surplus   184 (390)
Total other comprehensive income   184 (390)
 
Total comprehensive loss attributable to the Australian Government 2 33 (19,779) (78,181)

 

1 Cost of transferring the Personal Property Securities (PPS) register, contact centre and registrar's office from the Attorney-General's Department to the then Insolvency and Trustee Service Australia (ITSA) (Note 3H refers).

2 Note 33 provides further information on the 'Total comprehensive loss attributable to the Australian Government'.

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

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BALANCE SHEET for the Attorney-General's Department
as at 30 June 2013
 
  2013 2012
  Notes $'000 $'000
ASSETS
Financial assets
Cash and cash equivalents 5A,10 1,794 5,021
Trade and other receivables 5B 56,435 83,377
Total financial assets   58,229 88,398
 
Non-financial assets
Land and buildings 6A,6C 73,780 75,289
Property, plant and equipment 6B 21,167 25,776
Intangibles 6D,6E 25,832 29,315
Other non-financial assets 6F 4,652 4,001
Total non-financial assets   125,431 134,381
Total assets   183,660 222,779
 
LIABILITIES
Payables
Suppliers 7A 27,033 43,740
Other payables 7B 17,332 19,917
Total payables   44,365 63,657
 
Provisions
Employee provisions 8A 37,900 40,570
Other provisions 8B 341 274
Total provisions   38,241 40,844
Total liabilities   82,606 104,501
Net assets   101,054 118,278
 
EQUITY 
Parent entity interest
Contributed equity   177,872 175,317
Reserves   18,918 18,734
Retained surplus (accumulated deficit)   (95,736) (75,773)
Total parent equity interest   101,054 118,278
Total equity   101,054 118,278

 

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

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STATEMENT of CHANGES in EQUITY for the Attorney-General's Department
for the period ended 30 June 2013
 
  Notes Retained earnings Asset revaluation surplus Contributed equity/capital Total equity
  2013 2012 2013 2012 2013 2012 2013 2012
  $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Opening balance
Balance carried forward from previous period   (75,773) 2,018 18,734 19,124 175,317 150,643 118,278 171,785
Adjusted opening balance   (75,773) 2,018 18,734 19,124 175,317 150,643 118,278 171,785
 
Comprehensive income
Other comprehensive income - changes in asset revaluation reserves   - - 184 (390) - - 184 (390)
Deficit for the period   (19,963) (77,791) - - - - (19,963) (77,791)
Total comprehensive income   (19,963) (77,791) 184 (390) - - (19,779) (78,181)
 
Transactions with owners
Distributions to owners
Returns of capital:
Restructuring: Office of Parliamentary Counsel 
9A - - - - (4,326) - (4,326) -
Restructuring: Department of Prime Minister and Cabinet
9A - - - - - (459) - (459)
Transfer of funding: Insolvency and Trustee Service Australia 1
  - - - - - (5,343) - (5,343)
Contributions by owners
Departmental Capital Budget   - - - - 6,647 22,419 6,647 22,419
Equity injection - Appropriations   - - - - 234 8,057 234 8,057
Sub-total transactions with owners   - - - - 2,555 24,674 2,555 24,674
Closing balance as 30 June   (95,736) (75,773) 18,918 18,734 177,872 175,317 101,054 118,278

 

1Four months pre-operational expenses for the establishment of the PPS Register transferred to the then Insolvency and Trustee Service Australia (ITSA).

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

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CASH FLOW STATEMENT for the Attorney-General's Department
for the period ended 30 June 2013
 
  2013 2012
  Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Sale of goods and rendering of services   48,188 38,741
Appropriations   264,872 265,383
Net GST received   11,981 9,841
Total cash received   325,041 313,965
 
Cash used
Employees   164,065 168,089
Suppliers   108,851 70,252
Grants   708 1,017
Borrowing costs   - 37
Section 31 receipts transferred to OPA   46,167 32,595
Total cash used   319,791 271,990
Net cash from operating activities 10 5,250 41,975
 
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment   10 -
Total cash received   10 -
 
Cash used
Purchase of land and buildings 6C 5,310 18,101
Purchase of property, plant and equipment 6C 3,520 15,360
Purchase of intangibles 6E 1,123 4,294
Internally developed intangibles 6E 5,415 27,645
Total cash used   15,368 65,400
Net cash used by investing activities   (15,358) (65,400)
 
FINANCING ACTIVITIES
Cash received
Contributed equity   6,881 25,133
Total cash received   6,881 25,133
 
Cash used
Repayment of borrowings   - 658
Total cash used   - 658
Net cash from financing activities   6,881 24,475
 
Net increase/(decrease) in cash held   (3,227) 1,050
Cash and cash equivalents at the beginning of the reporting period   5,021 3,971
Cash and cash equivalents at the end of the reporting period 5A,10 1,794 5,021

 

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

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SCHEDULE OF COMMITMENTS for the Attorney-General's Department
as at 30 June 2013
 
  2013 2012
  $'000 $'000
BY TYPE
Commitments receivable
Net GST recoverable on commitments
(25,794) (27,364)
Total commitments receivable (25,794) (27,364)
Commitments payable
Capital commitments 1
Land and buildings
- 4,559
Property, plant and equipment
- 3,668
Total capital commitments
- 8,227
Other commitments 
Other commitments2
32,140 10,355
Operating leases3
258,545 282,668
Total other commitments
290,685 293,023
Total commitments payable 290,685 301,250
Net commitments by type 264,891 273,886
BY MATURITY
Commitments receivable
Other commitments receivable
One year or less
(3,616) (3,223)
From one to five years
(8,093) (8,167)
Over five years
(14,085) (15,974)
Total other commitments receivable
(25,794) (27,364)
Total commitments receivable (25,794) (27,364)
Commitments payable
Capital commitments
One year or less
- 7,722
From one to five years
- 505
Total capital commitments
- 8,227
Other commitments
One year or less
26,353 5,960
From one to five years
5,787 4,395
Total other commitments
32,140 10,355
Operating lease commitments
One year or less
20,208 22,033
From one to five years
83,401 84,925
Over five years
154,936 175,710
Total operating lease commitments
258,545 282,668
Total commitments payable 290,685 301,250
Net commitments by maturity 264,891 273,886

Notes:

Commitments are GST inclusive where relevant.

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

2The nature of other commitments are Memorandums of Understanding (MOUs) in place with other Government departments and agencies for the provision of services as required, and contractual obligations for a range of other services including property management, legal, contractors and other commitments.

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

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

 

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

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SCHEDULE OF CONTINGENCIES for the Attorney-General's Department
as at 30 June 2013
 
  2013 2012
  $'000 $'000
Contingent assets
Claims for damages or costs 109 95
Total contingent assets 109 95
Contingent liabilities
Claims for damages or costs (215) (468)
Total contingent liabilities (215) (468)
Net contingent (liabilities) (106) (373)

 

Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 11: Contingent assets and liabilities, along with information on significant remote contingencies and contingencies that cannot be quantified.

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

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ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the Attorney-General's Department
for the period ended 30 June 2013
 
  2013 2012
  Notes $'000 $'000
EXPENSES
Employee benefits 16A 6,568 1,035
Suppliers 16B 44,386 47,422
Subsidies 16C 2,458 2,426
Personal benefits 1 16D 177,093 81,101
Grants 2 16E 386,155 373,778
Depreciation and amortisation  16F 2,424 2,883
Write-down and impairment of assets 16G 934 1,596
Total expenses administered on behalf of Government   620,018 510,241
 
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Sale of goods and rendering of services 17A 5,712 5,798
Interest 17B 2,020 2,061
Dividends 17C 9,000 7,000
Competitive neutrality 17D 4,711 4,929
Recoveries 17E 316 829
Other non-taxation revenue 17F 2,325 1,941
Total non-taxation revenue   24,084 22,558
Total own-source revenue administered on behalf of Government   24,084 22,558
Net cost of services   595,934 487,683
Deficit on continuing operations   (595,934) (487,683)
 
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to profit or loss
Changes in asset revaluation surplus   3,987 (18,981)
Actuarial gains/losses on defined benefit plans - former Solicitor-General pension   1,100 (1,900)
Total other comprehensive income before income tax   5,087 (20,881)
Total comprehensive income   (590,847) (508,564)

 

1The Department makes payments to individuals under the Australian Government Disaster Recovery Program (AGDRP), Disaster Income Recovery Subsidy (DIRS) Program and ex-gratia payments to New Zealand residents in Australia under the DIRS program in response to natural disasters (Note 16D refers).

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

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

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ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES for the Attorney-General's Department
as at 30 June 2013
 
  2013 2012
  Notes $'000 $'000
ASSETS
Financial assets
Cash and cash equivalents 18A, 22 1 -
Loans and receivables 18B 33,477 44,671
Investments 18C 380,476 376,490
Total financial assets   413,954 421,161
 
Non-financial assets
Land and buildings 19A,19C 7,200 -
Property, plant and equipment 19B,19C 4,380 5,271
Intangibles 19D,19E 560 869
Other non-financial assets 19F 354 3,276
Total non-financial assets   12,494 9,416
Total assets administered on behalf of Government   426,448 430,577
 
LIABILITIES
Payables
Suppliers 20A 7,414 3,947
Grants and subsidies 20B 9,243 6,091
Other payables 20C 595 749
Total payables   17,252 10,787
 
Provisions
Superannuation provisions - former Solicitor-General pension 21A 5,703 7,007
Total provisions   5,703 7,007
Total liabilities administered on behalf of Government   22,955 17,794
Net assets   403,493 412,783

 

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

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ADMINISTERED RECONCILIATION SCHEDULE for the Attorney-General's Department
 
  2013 2012
  $'000 $'000
Opening administered assets less administered liabilities as at 1 July 412,783 418,497
Deficit items:    
Plus: Administered income
24,084 22,558
Less: Administered expenses (non CAC)
(620,018) (510,241)
Other comprehensive income:
Administered revaluations taken to/from reserves
3,987 (18,981)
Actuarial gain - former Solicitor-General pension taken to equity
1,100 (1,900)
Administered transfers to/from Australian Government:
Appropriation transfers from the Official Public Account (OPA):
Annual appropriations for administered expenses (non CAC)
462,763 473,233
Administered assets and liabilities appropriations
6,501 8,897
Special appropriations (unlimited) (non CAC)
170,233 79,540
Transfers to OPA
(57,940) (58,820)
Closing administered assets less administered liabilities as at 30 June 403,493 412,783

 

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

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ADMINISTERED CASH FLOW STATEMENT for the Attorney-General's Department
for the period ended 30 June 2013
 
  2013 2012
  Notes $'000 $'000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of services   6,927 5,776
Interest   1,860 1,321
Dividends   9,000 7,000
Net GST received   21,867 21,416
Competitive neutrality - received from Australian Government Solicitor   4,711 4,929
Recoveries   316 829
Other non-taxation revenue:
Recovery of unspent grant funding
  1,499 1,340
Torres Strait Regional Authority receipts
  816 600
Other revenue
  10 1
Total cash received   47,006 43,212
 
Cash used
Grant payments   383,003 388,386
Subsidies paid   2,458 2,426
Personal benefits 1   176,475 81,194
Suppliers   59,061 71,951
Employees   6,568 1,095
Total cash used   627,565 545,052
Net cash flows used by operating activities 22 (580,559) (501,840)
 
INVESTING ACTIVITIES
Cash received
Repayments of advances and loans from State Governments   7,427 8,312
Total cash received   7,427 8,312
 
Cash used
Purchase of land and buildings   7,200 -
Purchase of property, plant and equipment   1,224 1,666
Purchase of intangibles   - 213
Advances and loans made to State Governments   - 7,616
Total cash used   8,424 9,495
Net cash flows used by investing activities   (997) (1,183)
 
FINANCING ACTIVITIES
Cash received
Contributed equity - transfer from Official Public Account   6,501 8,897
Net cash flows from/(used by) financing activities   6,501 8,897
Net decrease in cash held   (575,055) (494,126)
 
Cash and cash equivalents at the beginning of the reporting period   - 169
Cash from Official Public Account for:
-Appropriations
  462,763 473,237
-Special Accounts
  170,233 79,540
  632,996 552,777
 
Cash to Official Public Account for:
-Appropriations
  (51,027) (50,559)
-Special Accounts
  (6,913) (8,261)
  (57,940) (58,820)
Cash and cash equivalents at the end of the reporting period 18A 1 -

 

1 The Department makes payments to individuals under the Australian Government Disaster Recovery Program, Disaster Income Recovery Subsidy (DIRS) Program and ex-gratia payments to New Zealand residents in Australia under the DIRS program in response to natural disasters.

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

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SCHEDULE OF ADMINISTERED COMMITMENTS for the Attorney-General's Department
as at 30 June 2013
 
  2013 2012
  $'000 $'000
BY TYPE
Commitments receivable
Net GST recoverable on commitments
(20,453) (22,660)
Total commitments receivable (20,453) (22,660)
Commitments payable
Capital commitments 1
Property, plant and equipment
6,111 -
Total capital commitments
6,111 -
Other commitments 2
Operating leases
14,650 14,074
Other commitments
79,994 85,616
Grants
345,606 546,630
Total other commitments
440,250 646,320
Total commitments payable 446,361 646,320
Net commitments by type 425,908 623,660
BY MATURITY
Commitments receivable
Other commitments receivable
One year or less
(17,489) (15,611)
From one to five years
(2,964) (7,049)
Total other commitments receivable
(20,453) (22,660)
Total commitments receivable (20,453) (22,660)
Commitments payable
Capital commitments
One year or less
6,111 -
Total capital commitments
6,111 -
Operating lease commitments
One year or less
3,430 14,069
From one to five years
11,220 5
Total operating lease commitments
14,650 14,074
Other commitments
One year or less
29,858 18,886
From one to five years
50,136 66,730
Total other commitments
79,994 85,616
Grant commitments
One year or less
330,483 317,256
From one to five years
15,123 229,374
Total grant commitments
345,606 546,630
Total commitments payable 446,361 646,320
Net commitments by maturity 425,908 623,660

 

Notes:

Commitments are GST inclusive where relevant.

1The nature of capital commitments are outstanding contractual payments for the fit out under construction and contracts that principally relate to the development of the Royal Commission into Institutional Responses to Child Sexual Abuse premises.

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

These commitments are fully funded in the forward estimates.

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

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SCHEDULE OF ADMINISTERED CONTINGENCIES for the Attorney-General's Department
as at 30 June 2013
Contingent assets
At 30 June 2013 the Department estimates the value of contingent assets to be $nil (2012: $nil).
 
Contingent liabilities
At 30 June 2013 the Department estimates the value of contingent liabilities to be $nil (2012: $nil).
 

 

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

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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for the period 1 July 2012 to 30 June 2013
 
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 Provisions
9 Restructuring
10 Cash flow reconciliation
11 Contingent assets and liabilities
12 Senior executive remuneration
13 Remuneration of auditors
14 Financial instruments
15 Financial assets reconciliation
16 Administered - expenses
17 Administered - income
18 Administered - financial assets
19 Administered - non-financial assets
20 Administered - payables
21 Administered - provisions
22 Administered - cash flow reconciliation
23 Administered - contingent assets and liabilities
24 Administered - impact of RCIRCSA on the 2012-13 administered financial statements
25 Administered - investments
26 Administered - financial instruments
27 Administered - financial assets reconciliation
28 Appropriations
29 Special accounts
30 Compensation and debt relief
31 Reporting of outcomes
32 Cost recovery
33 Net cash appropriation arrangements

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Note 1: Summary of significant accounting policies

1.1 Objectives of the Attorney- General’s Department

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

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

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

Departmental and Administered activities are identified under eight programs for Outcome 1. The eight programs within Outcome 1 are: Attorney-General's Department Operating Expenses - Civil Justice and Legal Services (1.1), Attorney-General's Department Operating Expenses - National Security and Criminal Justice (1.2), Justice Services (1.3), Family Relationships (1.4), Indigenous Law and Justice (1.5), National Security and Criminal Justice (1.6), Australian Government Disaster Financial Support Payments (1.7) and Royal Commission into Institutional Responses to Child Sexual Abuse (1.8).

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.

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs.  In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

1.2 Basis of preparation of the financial statements

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

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

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

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

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

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will follow to the Department, or a future sacrifice of economic benefits will be required, and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised at balance date are reported in the schedule of commitments and the schedule of contingencies (other than unquantifiable or remote contingencies, which are reported at Note 11).

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 1.19.

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. At 30 June 2013 the Australian Valuation Office undertook a revaluation of the Department's land and buildings;
  • The fair value of the Department’s property, plant and equipment has been taken to be the market selling price; and
  • The Department recognises the present value of the superannuation provision associated with the former Solicitor-General pension. At 30 June 2013 the Australian Government Actuary undertook an actuarial assessment of the scheme.

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

The following new standards, amendments to standards and interpretations were issued by the Australian Accounting Standards Board prior to the sign-off date. These are expected to have a financial impact on the Department for future reporting periods:

AASB 9 Financial Instruments - September 2012 (Compilation)

AASB 13 Fair Value Measurement - December 2012 (Principal)

AASB 119 Employee Benefits - September 2011 (Principal)

AASB 1055 Budgetary Reporting - March 2013 (Principal)

AASB 2013–3 Amendments to AASB 136 - Recoverable Amount Disclosures for Non-Financial Assets

1.5 Revenue

Sales of goods and services

Revenue from the sale of goods is recognised when:

  1. the risks and rewards of ownership have been transferred to the buyer
  2. the Department retains no managerial involvement or effective control over the goods
  3. the revenue and transaction costs incurred can be reliably measured; and
  4. 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:

  1. the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  2. the probable economic benefits associated with the transaction will flow to the Department.

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

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

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

Revenue from Government

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

Appropriations receivable are recognised at their nominal amounts.

1.6 Gains

Resources received free of charge

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

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

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

Sale of assets

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

1.7 Transactions with the Government as Owner

Equity

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

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

Restructuring of administrative arrangements

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

Other distribution to Owners

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

1.8 Employee benefits

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

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

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

Leave

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

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

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

Separation and redundancy

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

Superannuation

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

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

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

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

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

1.9 Leases

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

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

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

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

1.10 Borrowing costs

All borrowing costs are expensed as incurred.

1.11 Cash

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

1.12 Financial assets

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

Financial assets are recognised and derecognised upon trade date.

Effective interest method

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

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

Loans and receivables

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

Impairment of financial assets

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

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

1.13 Financial liabilities

Financial liabilities are classified as other financial liabilities.

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

Other financial liabilities

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

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

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

1.14 Contingent liabilities and contingent assets

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

1.15 Acquisition of assets

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

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

1.16 Property, plant and equipment

Asset recognition threshold

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

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

Revaluations

Fair values for each class of asset are determined as shown below:

Asset Class: Fair value measured at:
Land Market selling price
Buildings Market selling price
Leasehold improvements Depreciated replacement cost
Property, plant and equipment Market selling price
Heritage and cultural assets Active market

 

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

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

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

Depreciation

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

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

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

  2013 2012
Buildings on freehold land 25-50 years 25-50 years
Leasehold improvements Lease term Lease term
Property, plant and equipment 3 to 10 years 3 to 10 years
Heritage and cultural (where applicable) Up to 200 years Up to 200 years
 
Depreciation rates applying to each class of depreciable administered asset are based on the following useful lives:
 
  2013 2012
Property, plant and equipment 3 to 10 years 3 to 10 years

Impairment

All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

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

Derecognition

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

Heritage and cultural

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

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

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

1.17 Intangibles

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

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Department’s intangibles are 3 to 5 years (2011-12: 3 to 5 years).  

All software assets were assessed for indications of impairment at 30 June 2013.

1.18 Taxation

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

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

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

1.19 Reporting of administered activities

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

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

Administered cash transfer to and from the Official Public Account

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

Revenue

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

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

Competitive neutrality

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

Expenses

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

Loans and receivables

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

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

Administered investments

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

Administered investments other than those held for sale are measured at their fair value at 30 June 2013. Fair value has been taken to be the Australian Government's proportional interest in the net assets of the entities as at the end of the reporting period.

Grants and subsidies

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

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

Superannuation provisions

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

Increases in the accrued benefits liability, pursuant to regular estimates of the liability taking account of actuarial reviews, are recognised as an expense and classified as personal benefit expense, except for actuarial gains or losses which are recognised in equity. In accordance with AASB 119 Employee Benefits, the liability is assessed annually by applying the projected unit credit method in assessing the balance of the liability. The rate used to discount long term employee benefits and post employment benefits is determined by reference to the government bond rate at the reporting date on high quality corporate bonds except where there is not a deep market in these bonds, in which case the market yield on national government bonds is used. In the case of discounting the personal benefit liability, the market yield on government bonds has been used. Additional information can be found at Note 21.

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Note 2: Events after the reporting period

On 1 July 2013, the Statute Stocktake (Appropriations) Bill 2013 repealing all annual Appropriation Acts from 1 July 1999 through 30 June 2010 received Royal Assent. This Bill will have no effect on reducing the Department's unspent appropriation balance. (Refer Note 28C).

On 1 July 2013, the Statute Stocktake (Appropriations) Bill 2013 repealing all annual Appropriation Acts from 1 July 1999 through 30 June 2010 received Royal Assent. This Bill will have the effect of reducing the Department's unspent administered appropriation balance by $67,287,040. (Refer Note 28C).

Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 3: Expenses
 
3A: Employee benefits
Wages and salaries   119,566 125,281
Superannuation:
Defined benefit plans
  15,217 18,227
Defined contribution plans
  7,788 5,225
Leave and other entitlements   13,797 20,761
Separation and redundancies   973 4,224
Other employee benefit expenses:
Recruitment and security vetting expenses
  1,096 1,901
Health & wellbeing
  468 502
Comsuper charges
  308 316
Study assistance
  462 574
FBT
  166 692
Other employee expenses
  392 207
Total employee benefits   160,233 177,910
 
3B: Suppliers
Goods and services
Accommodation expenses   3,953 3,908
Consultants   845 2,604
Contractors   6,018 6,057
Travel   5,919 7,145
Information technology and communications   11,249 11,212
General office   6,484 8,894
Auscheck expenditure   6,449 6,447
Legal and internal audit fees   12,641 11,789
Payments and contributions to external bodies   3,262 2,763
Total goods and services   56,820 60,819
 
Goods and services are made up of:
Provision of goods - related entities   76 52
Provision of goods - external parties   2,499 2,883
Rendering of services - related entities   19,740 22,488
Rendering of services - external parties   34,505 35,396
Total goods and services   56,820 60,819
 
Other supplier expenses
Operating lease rentals - external parties:
Minimum lease payments
  21,579 18,958
Workers compensation expenses   1,295 683
Total other supplier expenses   22,874 19,641
Total supplier expenses   79,694 80,460
 
3C: Grants
Public sector:
State and Territory Governments   100 147
Private sector:
Non-profit organisations   428 721
Other private sector   15 42
Overseas   60 -
Other grants   105 107
Total grants   708 1,017
 
3D: Depreciation and amortisation
Depreciation:
Buildings and leasehold improvements
6C  6,741 7,760
Property, plant and equipment
6C  8,016 10,073
Assets held under finance leases
6C  - 565
Total depreciation   14,757 18,398
 
Amortisation:
Intangibles: computer software
6E  6,742 4,031
Total amortisation   6,742 4,031
Total depreciation and amortisation   21,499 22,429
 
3E: Finance costs
Finance leases   - 37
Total finance costs 14C  - 37
 
3F: Write-down and impairment of assets
Asset write-downs and impairments from:
Write down of property, plant and equipment 
10 37 16
Write down of heritage and cultural (library resources)
6C,10  - 152
Impairment of intangibles
10 - -
Impairment of financial instruments
14B,10  19 (14)
Total write-down and impairment of assets   56 154
 
3G: Other expenses
Defective administration scheme payments 29 1 -
Unwinding of makegood expense 8B,10  14 45
Total other expenses   15 45
 
3H: Transfer of assets
Assets transferred free of charge1 10 - 38,340
 

 

1 Transfer of the cost of establishing the PPS register, contact centre and registrar's office from the Attorney-General's Department to the then Insolvency and Trustee Service Australia (ITSA).

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 4: Income
 
OWN SOURCE REVENUE
 
4A: Sale of goods and rendering of services
Provision of goods - related entities   226 718
Provision of goods - external parties   390 463
Rendering of services - related entities1   29,368 17,169
Rendering of services - external entities   13,456 18,191
Total sale of goods and rendering of services   43,440 36,541
 
GAINS
 
4B: Other gains
Resources received free of charge - ANAO 13 405 405
 
REVENUE FROM GOVERNMENT
 
4C: Revenue from Government 
Appropriations:
Departmental appropriations
  198,397 205,655

 

1 On 26 November 2012 the Defence Abuse Response Taskforce was established as part of the Government's response to the DLA Piper Review into allegations of sexual and other abuse in Defence by the Department, with all costs to be reimbursed by the Department of Defence. The increase in revenue for 2012-13 primarily reflects the Taskforce expenses that were invoiced to the Department of Defence to 30 June 2013.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
Note 5: Financial assets
 
5A: Cash and cash equivalents
Cash on hand or on deposit 14A 1,794 5,021
Total cash and cash equivalents   1,794 5,021
 
5B: Trade and other receivables
Goods and services:
Goods and services - related entities
  3,117 3,882
Goods and services - external parties
  4,365 5,676
Total receivables for goods and services 14A 7,482 9,558
 
Appropriations receivable:
For existing programs
  47,889 70,813
Total appropriations receivable   47,889 70,813
 
Other receivables:
GST receivable from the Australian Taxation Office
  1,037 3,009
Other
  45 17
Total other receivables   1,082 3,026
Total trade and other receivables (gross)   56,453 83,397
 
Less impairment allowance account:
Goods and services
  (18) (20)
Total impairment allowance account   (18) (20)
Total trade and other receivables (net)   56,435 83,377
 
Receivables are expected to be recovered in:
No more than 12 months
  56,435 83,377
Total trade and other receivables (net)   56,435 83,377
 
Receivables are aged as follows:
Not overdue
  54,892 80,456
Overdue by:
0 to 30 days
  658 1,338
31 to 60 days
  394 765
61 to 90 days
  37 197
More than 90 days
  472 641
Total receivables (gross)   56,453 83,397
 
The impairment allowance account is aged as follows:
Overdue by:
More than 90 days
  (18) (20)
Total impairment allowance account   (18) (20)
 
Credit terms for goods and services were within 30 days (2012: 30 days).
 
Reconciliation of the impairment allowance account:
 
Movements in relation to 2013
  Goods and services Total 
  $'000 $'000
Opening balance   20 20
Amounts recovered and reversed
  (2) (2)
Closing balance   18 18
 
Movements in relation to 2012
Opening balance   36 36
Amounts recovered and reversed
  (16) (16)
Closing balance   20 20

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  Notes $'000 $'000
 
Note 6: Non-financial assets
6A: Land and buildings
Land:
Land at fair value
6C 1,400 865
 
Buildings on freehold land:
Fair value
6C 888 772
Accumulated depreciation
6C - (49)
Total buildings on freehold land   888 723
Leasehold improvements:
Fair value
  70,990 78,765
Accumulated depreciation
  - (21,857)
Work in progress (at cost)
  502 16,793
Total leasehold improvements  6C 71,492 73,701
Total land and buildings 6C 73,780 75,289

 

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.

All revaluations were undertaken in accordance with the revaluation policy stated at Note 1. A revaluation of land and buildings was undertaken by an independent valuer with effect from 30 June 2013. A revaluation increment of $535,000 for land (2012: nil), a revaluation increment of $174,008 for buildings on freehold land (2012: nil) and a revaluation decrement of $472,413 for leasehold improvments (2012: nil) were credited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

6B: Property, plant and equipment
Heritage and cultural:
Library (at fair value)
  1,663 1,663
Total heritage and cultural 6C 1,663 1,663
 
Other property, plant and equipment:
Fair value
  44,721 41,432
Accumulated depreciation
  (25,217) (17,319)
Total other property, plant and equipment 6C 19,504 24,113
Total property, plant and equipment    21,167 25,776

 

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

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

A revaluation of property, plant and equipment was undertaken by an independent valuer with effect from 30 June 2012. A revaluation decrement of $501,599 decrement for property, plant and equipment was debited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet; a decrement of $152,000 for the Library was expensed in the Statement of Comprehensive Income (Note 3F refers); $111,515 of assets were recognised for the first time in 2012 and were credited against the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 6: Other non-financial assets continued
Note 6C: Reconciliation of the opening and closing balances of property, plant and equipment (2012-13)
  Land Buildings Leasehold improvements Total land
and buildings
Heritage
and
cultural1
Other
property,
plant & equipment
Total
  $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 1 July 2012
Gross book value 865 772 95,559 97,196 1,663 41,432 140,291
Accumulated depreciation and impairment - (49) (21,858) (21,907) - (17,319) (39,226)
Net book value 1 July 2012 865 723 73,701 75,289 1,663 24,113 101,065
 
Additions
By purchase
- 18 5,292 5,310 - 3,520 8,830
Revaluations and impairments recognised in other comprehensive income 535 174    (472) 237 - - 237
Depreciation expense - (27) (6,714) (6,741) - (8,016) (14,757)
Other movements - transfer assets between Departmental and Administered2 - -    (315) (315) - (60) (375)
Disposals
From disposal of entities or operations (including restructuring)3
- - - - - (16) (16)
Property, plant and equipment4
- - - - - (37) (37)
Net book value 30 June 2013 1,400 888 71,492 73,780 1,663 19,504 94,947
 
Net book value as of 30 June 2013 represented by:
Gross book value 1,400 888 71,492 73,780 1,663 44,721 120,164
Accumulated depreciation and impairment - - - - - (25,217) (25,217)
Net book value 30 June 2013 1,400 888 71,492 73,780 1,663 19,504 94,947

1 Library assets that meet the definition of heritage and cultural items.

2 The movement relates to the transfer of the Royal Commission into Institutional Responses to Child Sexual Abuse (RCIRCSA) assets from deparmental to administered financial statements to align with appropriation funding.

3 The Office of Legislative Drafting and Publishing function was relinquished to the Office of Parliamentary Counsel (OPC) on 1 October 2012 due to a restructuring of adminstrative arrangements (Note 9 refers).

4 Disposal of property, plant and equipment is a result of an office machine refresh project.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 6C (Cont'd): Reconciliation of the opening and closing balances of property, plant and equipment (2012-13)
  Land Buildings Leasehold improvements Total land
and buildings
Heritage
and
cultural1
Other
property,
plant & equipment
Total
  $'000 $'000 $'000 $'000 $'000 $'000 $'000
As at 1 July 2011
Gross book value 865 370 77,860 79,095 1,815 51,099 132,009
Accumulated depreciation and impairment - (23) (14,124) (14,147) - (29,807) (43,954)
Net book value 1 July 2011 865 347 63,736 64,948 1,815 21,292 88,055
 
Additions
By purchase
- 402 17,699 18,101 - 15,360 33,461
Revaluations and impairments recognised in other comprehensive income - - - - - (502) (502)
Revaluations recognised in the operating result - - - - (152) - (152)
Assets first found - - - - - 112 112
Depreciation expense - (26) (7,734) (7,760) - (10,638) (18,398)
Other movements - transfer assets between asset classes2 - - - - - 144 144
Other movements - transfer of assets to Insolvency and Trustee Service Australia3 - - - - - (1,640) (1,640)
Disposals
Property, plant and equipment
- - - - - (15) (15)
Net book value 30 June 2012 865 723 73,701 75,289 1,663 24,113 101,065
 
Net book value as of 30 June 2012 represented by:
Gross book value 865 772 95,559 97,196 1,663 41,432 140,291
Accumulated depreciation and impairment - (49) (21,858) (21,907) - (17,319) (39,226)
Net book value 30 June 2012 865 723 73,701 75,289 1,663 24,113 101,065

 

1 Library assets that meet the definition of heritage and cultural items.

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

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  Notes $'000 $'000
6D: Intangibles
Computer software:
Internally developed - in progress
  2,108 14,652
Internally developed - in use
  34,981 20,682
Purchased
  13,529 15,258
Accumulated amortisation
  (24,786) (21,277)
Total intangibles 6E 25,832 29,315

 

No indicators of impairment were found for intangibles.

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 6E: Reconciliation of the opening and closing balances of intangibles (2012-13)
 
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2012
Gross book value 35,334 15,258 50,592
Accumulated amortisation and impairment (13,443) (7,834) (21,277)
Net book value 1 July 2012 21,891 7,424 29,315
 
Additions:
By purchase
- 1,123 1,123
Internally developed
5,415 - 5,415
Total additions 5,415 1,123 6,538
Amortisation expense (4,353) (2,389) (6,742)
Other movements - transfer assets between asset classes1 212 (212) -
Disposals
From disposal of entities or operations (including restructuring)2
(1,426) (1,853) (3,279)
Net book value 30 June 2013 21,739 4,093 25,832
 
Net book value as of 30 June 2013 represented by:
Gross book value 37,089 13,529 50,618
Accumulated amortisation and impairment (15,350) (9,436) (24,786)
Net book value 30 June 2013 21,739 4,093 25,832

 

1 Transfer of assets classed as purchased software in 2011-12 to internally developed software in 2012-13.

2The Office of Legislative Drafting and Publishing function was relinquished to the Office of Parliamentary Counsel (OPC) on 1 October 2012 due to a restructuring of adminstrative arrangements (Note 9 refers).

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Reconciliation of the opening and closing balances of intangibles (2011-12)
 
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2011
Gross book value 44,151 11,699 55,850
Accumulated amortisation and impairment (11,051) (6,548) (17,599)
Net book value 1 July 2011 33,100 5,151 38,251
 
Additions:
By purchase
- 4,294 4,294
Internally developed
27,645 - 27,645
Total additions 27,645 4,294 31,939
Amortisation expense (2,392) (1,639) (4,031)
Other movements - transfer assets between asset classes1 (174) 30 (144)
Other movements - transfer of assets to Insolvency and Trustee Service Australia2 (36,288) (412) (36,700)
Net book value 30 June 2012 21,891 7,424 29,315
 
Net book value as of 30 June 2012 represented by:
Gross book value 35,334 15,258 50,592
Accumulated amortisation and impairment (13,443) (7,834) (21,277)
Net book value 30 June 2012 21,891 7,424 29,315

 

1 This movement represents items which were recognised as intangibles in 2010-11 and should have been classified as property, plant and equipment. The transfer occurred in 2011-12.

2Transfer of PPS assets from the Attorney-General's Department to the then Insolvency and Trustee Service Australia (Note 3H refers).

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
6F: Other non-financial assets
Prepayments   4,652 4,001
Total other non-financial assets - are expected to be recovered in:
No more than 12 months
  4,152 2,905
More than 12 months
  500 1,096
Total other non-financial assets   4,652 4,001

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
Note 7: Payables
7A: Suppliers
Trade creditors and accruals   17,349 36,561
Operating lease rentals   9,684 7,179
Total suppliers payables 14A 27,033 43,740
 
Supplier payables expected to be settled within 12 months:
Related entities
  1,701 1,473
External parties
  25,332 42,267
Total suppliers payables   27,033 43,740
 
Settlement is usually made net 30 days.
 
7B: Other payables
Wages and salaries    3,533 3,547
Superannuation    3,549 3,680
Separations and redundancies    22 2,669
Other employee payables   452 393
Prepayments received/unearned income   8,606 7,712
FBT payable   (195) 246
Lease incentives1   1,365 1,670
Total other payables   17,332 19,917
 
Total other payables are expected to be settled in:
No more than 12 months
  16,224 18,552
More than 12 months
  1,108 1,365
Total other payables   17,332 19,917

 

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  Notes $'000 $'000
 
Note 8: Provisions
 
8A: Employee provisions
Leave   37,900 40,570
Employee provisions are expected to be settled in:
No more than 12 months
  16,077 16,616
More than 12 months
  21,823 23,954
Total employee provisions   37,900 40,570
8B: Other provisions
Provision for restoration obligations   341 274
 
Other provisions are expected to be settled in:
More than 12 months
  341 274
 
    Provision for
restoration 
Total 
    $'000 $'000
Carrying amount 1 July 2012   274 274
Additional provisions made   53 53
Unwinding of discount or change in discount rate   14 14
Closing balance 2013   341 341

 

The Department currently has ten (2012: 7) agreements for the lease of premises some of which have provisions requiring the Department to restore the premises to their original condition at the conclusion of the lease. The Department has made a provision to reflect the present value of this obligation.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 9: Restructuring
 
Note 9A: Departmental restructuring
 
2013   2012
  Office of Legislative Drafting and Publishing   Privacy and Freedom of Information (FOI) Reform Cyber Security Policy
  Office of Parliamentary Counsel1   Department of Prime Minister and Cabinet2 Department of Prime Minister and Cabinet3
  $'000   $'000 $'000
Functions assumed
Liabilities recognised
Employee provisions
-   (459) -
Total liabilities recognised -   (459) -
Net liabilities assumed4 -   (459) -
 
Expenses
Recognised by the Attorney-General's Department1, 2
-   401 -
Recognised by the Department of Prime Minister and Cabinet2
-   303 -
Total expenses -   704 -
 
Functions relinquished
Assets relinquished
Trade receivables
414   - -
Appropriation receivable
2616   - 190
Work in progress
136   - -
Property, plant and equipment
16   - -
Intangibles
3,279   - -
Total assets relinquished 6,461   - 190
 
Liabilities relinquished
Income in advance
(123)   - -
Employee provisions
(2,012)   - (190)
Total liabilities relinquished (2,135)   - (190)
Net assets relinquished5 4,326   - -

 

1. The Office of Legislative Drafting and Publishing function was relinquished to the Office of Parliamentary Counsel (OPC) on 1 October 2012 due to a restructuring of adminstrative arrangements.

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

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

4. The net liabilities assumed from all entities were nil (2011-12: $0.459m).

5. The net assets relinquished to all entities were $4.326m (2011-12: nil).

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 10: Cash flow reconciliation
 
  2013 2012
  $'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 1,794 5,021
Balance Sheet 1,794 5,021
Difference - -
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services (218,360) (283,446)
Add revenue from Government 198,397 205,655
Adjustments for non-cash items
Depreciation/amortisation 21,499 22,429
Impairment of financial instruments 19     (14)
Loss on revaluation of assets - 152
Transfer of assets to Insolvency and Trustee Service Australia - 38,340
Transfer of assets between Departmental and Administered 375 -
Write-down of property, plant and equipment 27 16
Unwinding of makegood 14   (360)
Changes in assets and liabilities
(Increase)/decrease in net receivables 23,757 21,311
(Increase)/decrease in prepayments   (651) (1,871)
(Increase)/decrease in inventories - 59
Increase/(decrease) in employee provisions (658) 7,106
Increase/(decrease) in supplier payables (16,707) 25,795
Increase/(decrease) in other payables (3,051) 2,714
Increase/(decrease) in other provisions 589 4,089
Net cash from operating activities 5,250 41,975

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 11: Contingent assets and liabilities
  Claims for
damages or costs

Total
  2013 2012 2013 2012
  $'000 $'000 $'000 $'000
Contingent assets
Balance from previous period 95 42 95 42
New 9 10 9 10
Re-measurement 119 43 119 43
Assets recognised (114) - (114) -
Total contingent assets 109 95 109 95
 
Contingent liabilities
Balance from previous period (468) (88) (468) (88)
New (215) (368) (215) (368)
Re-measurement 108 (25) 108 (25)
Liabilities recognised 360 13 360 13
Total contingent liabilities (215) (468) (215) (468)
Net contingent liabilities (106) (373) (106) (373)

 

Quantifiable contingencies 

The Department estimates $215,000 of contingent liabilities in respect to claims for damages/costs (2012: $468,000). This amount represents an estimate of the Department's liability based on precedent in such cases. The Department is defending the claims.

The Department estimates $109,000 of contingent assets in respect of claims for damages/costs (2012: $95,000). This amount represents the Department's estimate of claims against persons/organisations based on ongoing cases. The estimate is based on precedent in such cases.

Unquantifiable contingent liabilities

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

Unquantifiable contingent assets

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

Future compensation claims

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
Note 12: Senior executive remuneration
 
Note 12A: Senior executive remuneration expense for the reporting period1, 2
 
  2013 2012
  $ $
Short-term employee benefits:
Salary (including annual leave taken)
(11,496,548) (11,624,813)
Annual leave accrued
(348,729) (129,506)
Other3
(1,229,665) (1,158,372)
Total short-term employee benefits (13,074,942) (12,912,691)
Post-employment benefits
Superannuation
(2,697,996) (2,313,672)
Total post-employment benefits (2,697,996) (2,313,672)
Other long-term benefits 
Long service leave
(131,579) (381,096)
Total other long-term benefits (131,579) (381,096)
Termination benefits4 (1,249,480) (269,679)
Total employment benefits (17,153,997) (15,877,138)

 

1. Note 12A was prepared on an accrual basis.

2. Note 12A excludes acting arrangements and part-year services where total remuneration expensed as a senior executive was less than $180,000.

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

4. 4. This amount includes termination payments that were provided for in the 2011-12 financial year and paid out in 2012-13.

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 12B: Average annual reportable remuneration paid to substantive senior executives during the reporting period
 
Average annual reportable remuneration paid to substantive senior executives in 2013
 
Average annual reportable remuneration1 Substantive
Senior
Executive
No. 
Reportable salary2
$
Contributed superannuation3
$
Reportable allowances4
$
Total reportable remuneration
$
Total reportable remuneration (including part-time arrangements):
less than $180,000
23 60,062 11,066 - 71,128
$180,000 to $209,999
5 169,194 32,679 - 201,873
$210,000 to $239,999
26 186,881 38,614 - 225,495
$240,000 to $269,999
7 206,036 46,016 - 252,052
$270,000 to $299,999
10 230,188 49,842 - 280,030
$300,000 to $329,999
3 257,767 50,105 - 307,872
$330,000 to $359,999
3 248,225 87,248 - 335,473
$360,000 to $399,999
2 292,939 80,561 - 373,500
$600,000 to $629,999
1 570,560 39,773 - 610,333
 
Total number of substantive senior executives 80  
 
Average annual reportable remuneration paid to substantive senior executives in 2012
 
Average annual reportable remuneration1 Substantive
Senior
Executive
No. 
Reportable salary2
$
Contributed superannuation3
$
Reportable allowances4
$
Total reportable remuneration
Total reportable remuneration (including part-time arrangements):
less than $180,000
19 79,427 14,995 - 94,422
$180,000 to $209,999
26 169,946 31,865 - 201,811
$210,000 to $239,999
20 188,048 32,217 - 220,265
$240,000 to $269,999
8 216,484 41,729 - 258,213
$270,000 to $299,999
6 237,866 44,123 - 281,989
$300,000 to $329,999
2 269,565 42,129 253 311,947
$330,000 to $359,999
1 295,029 48,383 - 343,412
$510,000 to $539,999
1 470,747 50,000 5,062 525,809
 
Total number of substantive senior executives 83  

 

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

2. 'Reportable salary' includes the following:

  1. gross payments;
  2. reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax purposes);
  3. exempt foreign employment income; and
  4. salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the department for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

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

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

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 12C: Average annual reportable remuneration paid to other highly paid staff during the reporting period
 
Average annual reportable remuneration paid to other highly paid staff in 2013
 
Average annual reportable remuneration1 Other Highly
Paid
Staff
No.
Reportable salary2
$
Contributed superannuation3
$
Reportable allowances4
$
Total reportable remuneration
$
Total reportable remuneration (including part-time arrangements):
$180,000 to $209,999
6 162,719 26,226 - 188,945
$210,000 to $239,999
4 193,415 26,899 - 220,314
$270,000 to $299,999
4 253,987 22,686 - 276,673
 
Total number of other highly paid staff 14  
 
Average annual reportable remuneration paid to other highly paid staff in 2012
 
Average annual reportable remuneration1 Other Highly
Paid
Staff
No. 
Reportable salary2
$
Contributed superannuation3
$
Reportable allowances4
$
Total reportable remuneration
Total remuneration (including part-time arrangements):
$180,000 to $209,999
6 167,703 24,495 - 192,198
$210,000 to $239,999
5 199,012 24,134 85 223,231
$240,000 to $269,999
1 143,653 21,626 93,779 259,058
$270,000 to $299,999
3 251,139 23,011 - 274,150
Total number of other highly paid staff 15  

 

1. This table reports staff:

  1. who were employed by the Department during the reporting period;
  2. whose reportable remuneration was $180,000 or more for the financial period; and
  3. were not required to be disclosed in Table B.

Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following:

  1. gross payments;
  2. reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax purposes);
  3. exempt foreign employment income; and
  4. salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the department for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 13: Remuneration of auditors
  2013 2012
  $'000 $'000
Financial statement audit services were provided free of charge to the Department by the Australian National Audit Office (ANAO).    
The fair value of services provided was: 405 405
No other services were provided by the auditors of the financial statements.  

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
Note 14: Financial instruments
 
14A: Categories of financial instruments
Financial assets
Loans and receivables:
Cash and cash equivalents
5A 1,794 5,021
Goods and services receivable
5B 7,482 9,558
Carrying amount of financial assets   9,276 14,579
 
Financial liabilities
At amortised cost:
Trade creditors
7A 27,033 43,740
Carrying amount of financial liabilities   27,033 43,740
 
14B: Net income and expense from financial assets
Loans and receivables
Impairment 
3F (19) 14
Net gain/(loss) from loans and receivables   (19) 14
 
14C: Net income and expense from financial liabilities
Financial liabilities - at amortised cost
Interest expense
3E - (37)
Net gain/(loss) from financial liabilities - at amortised cost   - (37)
 
14D: 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.

 

14E: 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 $7,482,592 in 2013 (2012: $9,558,398). The Department has assessed the risk of default on payment and has allocated $17,932 in 2013 (2012: $20,237) 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.

  2013 2012
  Notes $'000 $'000
Loans and receivables
Cash and cash equivalents
5A 1,794 5,021
Trade receivables
5B 7,482 9,558
Total   9,276 14,579

 

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 2013 Not Past
Due Nor Impaired
2012
Past due
or impaired
2013
Past due
or impaired
2012
  $'000 $'000 $'000 $'000
Loans and receivables
Cash and cash equivalents
1,794 5,021 - -
Trade receivables
5,921 6,617 1,561 2,941
Total 7,715 11,638 1,561 2,941

 

Ageing of financial assets that were past due but not impaired for 2013:

  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
658 394 37 454 1,543
Total 658 394 37 454 1,543

 

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

  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
Loans and receivables
Trade receivables
1,338 765 197 621 2,921
Total 1,338 765 197 621 2,921

 

14F: Liquidity risk

The Department's financial liabilities are trade creditors. 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 2013

  Notes On
demand
2013
$'000
within
1 year
 2013
 $'000
1 to 5
years
2013
$'000
>5
 years
2013
$'000
Total
2013
$'000
Financial liabilities at amortised cost
Trade creditors
7A - 27,033 - - 27,033
Total   - 27,033 - - 27,033

 

Maturities for non-derivative financial liabilities 2012

  Notes On
demand
2013
$'000
within
1 year
 2013
 $'000
1 to 5
years
2013
$'000
>5
 years
2013
$'000
Total
2013
$'000
Financial liabilities at amortised cost
Trade creditors
7A - 43,740 - - 43,740
Total   - 43,740 - - 43,740

 

14G: 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.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  $'000 $'000
Note 15: Financial assets reconciliation
Financial assets
Total financial assets as per balance sheet 58,229 88,398
Less: non-financial instrument components
Appropriation receivable
47,889 70,813
GST receivable from the Australian Taxation Office
1,037 3,009
Other
45 17
Impairment allowance
(18) (20)
Total non-financial instrument components 48,953 73,819
Total financial assets as per financial instruments note 9,276 14,579

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  Notes $'000 $'000
 
Note 16: Administered - expenses1
 
16A: Employee benefits
Wages and salaries   5,088 871
Leave and other entitlements   463 10
Superannuation:
Defined benefit plans
  36 -
Defined contribution plans
  623 137
Other employee benefits   358 17
Total employee benefits   6,568 1,035
 
16B: Suppliers 
Goods and services
Consultants and contractors   3,987 3,023
Training and equipment purchases   8,333 14,148
Travel   2,759 340
Information technology and communications   3,396 3,915
Contribution to Family Court of Western Australia operations   12,640 18,762
General office   11,792 7,234
Total goods and services   42,907 47,422
 
Goods and services are made up of:
Provision of goods - related entities   148 101
Provision of goods - external parties   5,445 8,218
Rendering of services - related entities   9,647 10,933
Rendering of services - external parties   27,667 28,170
Total goods and services   42,907 47,422
 
Other supplier expenses
Minimum lease payments   1,479 -
Total other supplier expenses   1,479 -
Total supplier expenses   44,386 47,422
 
16C: Subsidies
Payable to external parties:
Law Courts Limited
  2,458 2,426
Total subsidies   2,458 2,426
 
16D: Personal benefits
Direct:
Australian Government Disaster Recovery Payments2
  170,176 79,879
Payments to victims of natural disasters2
  5,175 181
High Court Justices (Long Leave Payments) Act 19793
  950 -
Former Solicitor Generals Pension - interest cost
  200 300
Federal Proceedings Cost Act
  592 741
Total personal benefits   177,093 81,101
 
16E: Grants 
Public sector:
Australian Government entities (related entities)
  564 75
State and Territory Governments
  3,855 1,449
Local Governments
  11,597 3,722
Private sector:
Non-profit organisations
  147,893 151,350
Other private sector
  16,918 15,555
Overseas   5,286 4,806
Other grants:
Family relationship support payments
  153,390 152,094
Other grants
  46,652 44,727
Total grants   386,155 373,778
 
16F: Depreciation and amortisation
Depreciation:
Property, plant and equipment
  2,115 2,642
Total depreciation   2,115 2,642
 
Amortisation:
Intangibles: Software
  309 241
Total amortisation   309 241
Total depreciation and amortisation   2,424 2,883
 
16G: Write-down and impairment of assets
Asset write-downs and impairments from:
Impairment on financial instruments4
  1,756 -
Impairment on personal benefit recoveries
  (822) 1,571
Impairment of property, plant and equipment
  - 25
Total write-down and impairment of assets   934 1,596

 

1 Amounts incurred for 2012-13 include six months operating expenditure for the Royal Commission into Institutional Responses to Child Sexual Abuse (RCIRCSA). The RCIRCSA commenced operation on 11 January 2013.

2 Payments made to individuals under the Australian Government Disaster Recovery Program, Disaster Income Recovery Subsidy (DIRS) Program and ex-gratia payments to New Zealand residents in Australia under the DIRS program in response to 2012-13 natural disaster events (eg NSW and Tasmania bushfires and NSW floods).

3 Long leave payments made to Justices of the High Court in 2012-13.

4 Derecognition of a receivable associated with the National Firearms Program Implementation Act 1996.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 17: Administered - income 
 
OWN-SOURCE REVENUE
 
Non-taxation revenue
 
17A: Sale of goods and rendering of services
Rendering of services - related entities   87 185
Rendering of services - external parties   5,625 5,613
Total sale of goods and rendering services   5,712 5,798
 
17B: Interest
Loans - State and Territory Government   2,020 2,061
 
17C: Dividends
Australian Government entities - Australian Government Solicitor   9,000 7,000
 
17D: Competitive neutrality
Australian Government entities - Australian Government Solicitor   4,711 4,929
 
17E: Recoveries1
Personal benefit recoveries   316 829
 
17F: Other non-taxation revenue
Recovery of unspent grant funding   1,499 1,340
Torres Strait Regional Authority receipts   816 600
Other revenue   10 1
Total other revenue   2,325 1,941

 

1 The Department has an arrangement with the Department of Human Services (DHS) to provide claiming channels and claim processing arrangements in respect of disaster recovery payments. The amount of $0.316m represents the value of recovery action undertaken by DHS.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 18: Administered - financial assets
 
18A: Cash and cash equivalents
Cash on hand or on deposit   1 -
 
18B: Loans and receivables
Goods and services:
Goods and services receivable - related entities
  44 70
Goods and services receivable - external parties
  55 2,544
Total receivables for goods and services   99 2,614
 
Advances and loans1:
State and Territory Governments
  30,321 37,588
Total advances and loans   30,321 37,588
 
Other receivables:
Other
  490 646
Personal benefit recoveries2
  2,021 3,001
GST receivable from Australian Taxation Office
  2,243 3,343
Total other receivables   4,754 6,990
Total receivables (gross)   35,174 47,192
 
Less: impairment allowance account:
Personal benefit recoveries
  (1,697) (2,521)
Total impairment allowance account   (1,697) (2,521)
Total trade and other receivables (net)   33,477 44,671
 
Receivables are expected to be recovered in:
No more than 12 months
  33,477 44,671
Total trade and other receivables (net)   33,477 44,671
 
Receivables were aged as follows:
Not overdue
  33,442 43,637
Overdue by:
0 to 30 days
  33 208
31 to 60 days
  - 342
61 to 90 days
  2 -
More than 90 days
  1,697 3,005
Total receivables (gross)   35,174 47,192
 
The impairment allowance account is aged as follows:
Overdue by:
More than 90 days
  (1,697) (2,521)
Total impairment allowance account   (1,697) (2,521)

 

Credit terms were within 30 days (2012: 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.

1Recovery action undertaken by Department of Human Services in respect of payments made under the Australian Government Disaster Recovery Program and Disaster Income Recovery Subsidy.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
  2013 2012
  Notes $'000 $'000
 
Reconciliation of the Impairment Allowance Account:
Movements in relation to 2013
  Goods and services  Personal benefit
recovery
Total 
  $'000 $'000 $'000
Opening balance - 2,521 2,521
Amounts recovered and reversed
- (824) (824)
Increase recognised in net deficit
- - -
Closing balance - 1,697 1,697
 
Movements in relation to 2012
Opening balance 1 950 951
Amounts transferred under restructuring of administrative arrangements
   (1) - (1)
Increase recognised in net deficit
- 1,571 1,571
Closing balance - 2,521 2,521
 
18C: Investments 
Investments in associates:
Australian Government Solicitor
  38,697 44,354
High Court of Australia
  230,678 225,342
Investments in jointly controlled entities:
Law Courts Limited
  111,101 106,794
Total investments   380,476 376,490
 
Investments expected to be recovered in:
More than 12 months
  380,476 376,490
Total investments   380,476 376,490
 
Details of investments 
 
  Ownership 
  2013 2012
Name of entity  
Jointly controlled entities:
Law Courts Limited1
  47.5 45.7
Associates:
Australian Government Solicitor
  100 100
High Court of Australia
  100 100

 

1 The published fair value for the investment in Law Courts Limited is $111.101m (2012: $106.794m).

This note should be read in conjunction with Note 25.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 19: Administered - non-financial assets
 
19A: Land and buildings 
Leasehold improvements
Work in progress (at cost)
  7,200 -
Total land and buildings 19C 7,200 -
 
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.
 
19B: Property, plant and equipment
Other property, plant and equipment:
Fair value
  6,641 5,417
Accumulated depreciation
  (2,261) (146)
Total other property, plant and equipment 19C 4,380 5,271
Total property, plant and equipment    4,380 5,271

 

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

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

Revaluation of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. A revaluation of property, plant and equipment was undertaken by an independent valuer with effect from 30 June 2012. A revaluation increment of nil (2012: $581,234 increment) for property, plant and equipment was credited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet.

Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 19C: Reconciliation of the opening and closing balances of property, plant and equipment (2012-13)
 
  Leasehold improvements Total land
and buildings
Other
property,
plant & equipment
Total
  $’000 $’000 $’000 $’000
As at 1 July 2012
Gross book value - - 5,417 5,417
Accumulated depreciation and impairment - - (146) (146)
Net book value 1 July 2012 - - 5,271 5,271
 
Additions:
By purchase
7,200 7,200 1,224 8,424
Depreciation expense - - (2,115) (2,115)
Net book value 30 June 2013 7,200 7,200 4,380 11,580
 
Net book value as of 30 June 2013 represented by:
Gross book value 7,200 7,200 6,641 13,841
Accumulated depreciation and impairment - - (2,261) (2,261)
Net book value 30 June 2013 7,200 7,200 4,380 11,580
 
Reconciliation of the opening and closing balances of property, plant and equipment (2011-12)
 
  Other
property,
plant &
equipment
Total
  $’000 $’000
As at 1 July 2011
Gross book value 11,642 11,642
Accumulated depreciation and impairment (5,663) (5,663)
Net book value 1 July 2011 5,979 5,979
 
Additions:
By purchase
1,666 1,666
Revaluation and impairments recognised through other comprehensive income 581 581
Depreciation expense (2,642) (2,642)
Other movements1 (287) (287)
Disposals
Other
(26) (26)
Net book value 30 June 2012 5,271 5,271
 
Net book value as of 30 June 2012 represented by:
Gross book value 5,417 5,417
Accumulated depreciation and impairment (146) (146)
Net book value 30 June 2012 5,271 5,271

 

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Note $'000 $'000
 
19D: Intangibles 
Computer software:
Internally developed - in use
  287 287
Purchased
  1,318 1,318
Total computer software (gross)   1,605 1,605
Accumulated amortisation
  (1,045) (736)
Total computer software (net)   560 869
Total intangibles 19E 560 869

 

No indicators of impairment were found for intangible assets.

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

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 19E: Reconciliation of the opening and closing balances of intangibles (2012-13)
 
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2012
Gross book value1 676 1,318 1,994
Accumulated amortisation and impairment1 (418) (707) (1,125)
Net book value 1 July 2012 258 611 869
 
Amortisation  (57) (252) (309)
Net book value 30 June 2013 201 359 560
 
Net book value as of 30 June 2013 represented by:
Gross book value 287 1,318 1,605
Accumulated amortisation and impairment (86) (959) (1,045)
Net book value 30 June 2013 201 359 560

 

1 Opening balances computer software internally developed include a fully depreciated asset with a gross book value of $0.389m and accumulated amortisation of ($0.389m). At 30 June 2013 these items were fully impaired.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Reconciliation of the opening and closing balances of intangibles (2011-12)
 
  Computer
software
internally
developed
Computer
software
purchased
Total
  $’000 $’000 $’000
As at 1 July 2011
Gross book value 389 1,105 1,494
Accumulated amortisation and impairment (389) (495) (884)
Net book value 1 July 2011 - 610 610
 
Additions:
By purchase
- 213 213
Internally developed
- - -
Amortisation  (29) (212) (241)
Other movements1 287 - 287
Net book value 30 June 2012 258 611 869
 
Net book value as of 30 June 2012 represented by:
Gross book value 676 1,318 1,994
Accumulated amortisation and impairment (418) (707) (1,125)
Net book value 30 June 2012 258 611 869

 

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

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
19F: Other non-financial assets
Prepayments   354 3,276
 
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
  185 3,047
More than 12 months
  169 229
Total other non-financial assets   354 3,276
 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 20: Administered - payables
 
20A: Suppliers
Trade creditors and accruals 7,414 3,947
 
Supplier payables expected to be settled within 12 months:
Related entities
  671 16
External parties
  6,743 3,931
Total suppliers   7,414 3,947
 
Supplier payables are current liabilities. Settlement is usually net 30 days.
 
20B: Grants and subsidies
Public sector:
Australian Government entities (related entities)
  - 647
State and Territory Governments
  1,000 15
Local Governments
  2,024 1,437
Private sector:
Non-profit organisations
3,504 2,953
Overseas
- 275
Other
2,715 764
Total grants and subsidies 9,243 6,091
 
Total grants and subsidies - are expected to be settled in:
No more than 12 months
9,243 6,091
Total grants and subsidies 9,243 6,091
 
Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.
 
20C: Other payables
Prepayments received/unearned income 595 749
Total other payables 595 749
 
Total other payables are expected to be settled in:
No more than 12 months
  595 749
Total other payables 595 749

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 21: Administered - provisions
 
21A: Superannuation provision - former Solicitor-General pension
Present value of defined benefit obligations at end of the year 5,703 7,007
 
Personal benefits provisions are expected to be settled in:
No more than 12 months
400 400
More than 12 months
5,303 6,607
Total personal benefits   5,703 7,007

 

Accounting policy:

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

Scheme information:

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

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

Reconciliation of the present value of the defined benefit obligation:

Net liability at 1 July   (7,007) (5,200)
Interest cost   (200) (300)
Actuarial gains/(losses)   1,100 (1,900)
Benefits paid   404 393
Net liability at 30 June   (5,703) (7,007)
 
Reconciliation of the fair value of scheme assets:
 
Opening fair value of scheme assets   - -
Employer contributions1   (404) (393)
Benefits paid   404 393
Closing fair value of scheme assets - -

 

1 Employer contributions include appropriations from the Consolidated Revenue Fund.

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

As at 30 June
2013
$'000 
30 June
2012
$'000 
Defined benefit obligation

5,703

7,007
Net superannuation liability

5,703

7,007

 

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

For the period ended 30 June
2013
$'000 
30 June
2012
$'000 
Interest cost

200

300
Net superannuation expense

200

300

 

Amounts recognised directly in administered equity:

For the period ended 30 June
2013
$'000 
30 June
2012
$'000 
Actuarial gains/(losses) 1,100 (1,900)

 

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

For the period ended 30 June
2013
$'000 
30 June
2012
$'000 
Cumulative amount of actuarial gains (1,000) (2,100)

Scheme assets:

The scheme is an unfunded arrangement with no assets.

Expected rate of return on scheme assets:

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

Principal actuarial assumptions at the balance sheet date:

For the period ended 30 June
2013
$'000 
30 June
2012
$'000 
Discount rate

4.30%

3.10%
Expected salary increase rate

4.00%

4.00%
Expected pension increase rate

4.00%

4.00%

 

Other material assumptions:

The demographic assumptions used as at 30 June 2013 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2011. The demographic assumptions used as at 30 June 2011 are those used for the preparation of the Long Term Cost Report for the Judges' Pension Scheme as at 30 June 2011.

Historical information:

For the period ended 30 June
2013
$'000 
30 June
2012
$'000 
30 June
2011
$'000 
Present value of defined benefit obligation

5,703

7,007

5,200
Surplus/(deficit) in scheme

5,703

7,007

5,200
Experience adjustments gain/(loss) - scheme liabilities

1,100

(1,900)

(100)

 

The expected employer contributions in respect of 2013-14 are $450,000.

Funding arrangements for employer contributions:

Contribution recommendations

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

Funding method

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

Economic assumptions

The long-term economic assumptions adopted for the last actuarial review of the scheme as at 30 June 2011 were:

Expected rate of return on assets (discount rate) 4.3%
Expected salary increase rate 4.0% + a promotional salary increase scale
Expected pension increase 4.0%

 

Nature of asset/liability:

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

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
 
Note 22: Administered - cash flow reconciliation
Reconciliation of cash and cash equivalents as per Administered Balance Sheet to Administered Cash Flow Statement 
Cash and cash equivalents as per:
Schedule of administered cash flows   1 -
Schedule of administered assets and liabilities   1 -
Difference   - -
 
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services   (595,934) (487,683)
 
Adjustments for non-cash items
Depreciation/amortisation   2,424 2,883
Net write down of non-financial assets   1,756 25
Actuarial gain/(loss) - former Solicitor-General pension   1,100 (1,900)
 
Changes in assets and liabilities
(Increase)/decrease in net receivables   2,011 894
(Increase)/decrease in prepayments   2,922 (2,968)
Increase/(decrease) in employee provisions   - (46)
Increase/(decrease) in supplier payables   2,164 1,639
Increase/(decrease) in grant payables   3,152 (14,608)
Increase/(decrease) in other payables   (154) (76)
Net cash from operating activities   (580,559) (501,840)

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Note 23: Administered - contingent assets and liabilities

Unquantifiable administered contingencies

Natural Disaster Relief and Recovery Arrangements (NDRRA)

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

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

Future compensation claims

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 24: Administered - impact of the Royal Commission into Institutional Responses to Child Sexual Abuse (RCIRCSA) on the 2012-13 administered financial statements
 
24A: Impact of RCIRCSA on the 2012-13 administered schedule of comprehensive income
 
  Administered (excluding RCIRCSA) RCIRCSA Total
  $'000 $'000 $'000
 
EXPENSES
Employee benefits 998 5,570 6,568
Suppliers  36,495 7,891 44,386
Subsidies 2,458 - 2,458
Personal benefits  177,093 - 177,093
Grants  386,155 - 386,155
Depreciation and amortisation  2,380 44 2,424
Write-down and impairment of assets 934 - 934
Total expenses administered on behalf of Government 606,513 13,505 620,018
 
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Sale of goods and rendering of services 5,712 - 5,712
Interest 2,020 - 2,020
Dividends 9,000 - 9,000
Competitive neutrality 4,711 - 4,711
Recoveries 316 - 316
Other non-taxation revenue 2,325 - 2,325
Total non-taxation revenue 24,084 - 24,084
Total own-source revenue administered on behalf of Government 24,084 - 24,084
Net cost of services 582,429 13,505 595,934
Deficit on continuing operations (582,429) (13,505) (595,934)
 
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation surplus 3,987 - 3,987
Actuarial gains/losses on defined benefit plans - former Solicitor-General pension 1,100 - 1,100
Total other comprehensive income 5,087 - 5,087
Total comprehensive income (577,342) (13,505) (590,847)

 

The Government has appropriated $30.9 million in 2012-13 to the Department for the delivery of the RCIRCSA. As this funding is administered appropriation it not required to be disclosed as 'Revenue from Government' in the Department's financial statements. At 30 June 2013, $11.697 million has been drawn down from the 2012-13 Administered Appropriation Act 3.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
24B: Impact of RCIRCSA on the 2012-13 administered schedule of assets and liabilities
 
  Administered (excluding RCIRCSA) RCIRCSA Total
ASSETS
Financial assets
Cash and cash equivalents - 1 1
Loans and receivables 33,469 8 33,477
Investments 380,476 - 380,476
Total financial assets 413,945 9 413,954
 
Non-financial assets
Land and buildings - 7,200 7,200
Property, plant and equipment 3,141 1,239 4,380
Intangibles 560 - 560
Other non-financial assets 183 171 354
Total non-financial assets 3,884 8,610 12,494
Total assets administered on behalf of Government 417,829 8,619 426,448
 
LIABILITIES
Payables
Suppliers 3,499 3,915 7,414
Grants and subsidies 9,243 - 9,243
Other payables 595 - 595
Total payables 13,337 3,915 17,252
 
Provisions
Employee provisions -    
Superannuation provisions - former Solicitor-General pension 5,703 - 5,703
Total provisions 5,703 - 5,703
Total liabilities administered on behalf of Government 19,040 3,915 22,955
Net assets 398,789 4,704 403,493

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Note 25: Administered investments

The Australian Government owns 100% of the following entities:

*High Court of Australia - s17 of the High Court of Australia Act 1996

*Australian Government Solicitor - s55M of the Judiciary Act 1903

Law Courts Ltd is a company limited by guarantee and is jointly controlled by the Australian and NSW Governments. The primary purpose of the company is to provide a courts facility being the joint Sydney Law Courts Building. The building is currently undergoing a major refurbishment program. The investment taken up by the Australian Government is based on the net assets of Law Courts Ltd, adjusted by the accumulated capital contributions made by the Australian Government to the company up to 30 June 2013.

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

* Law Courts Limited is a jointly controlled Australian Government/New South Wales company limited by guarantee established to manage the Sydney Law Courts Building.

* The High Court, as the highest court in Australian judicial system, interprets and applies the law of Australia, decides cases of special Commonwealth significance including challenges to the constitutional validity of laws, and hears appeals from Federal, State and Territory Governments.

* The Australian Government Solicitor is a Commonwealth Authority providing national legal services to the Government and its agencies in a contestable environment.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
Note 26: Administered - financial instruments
 
26A: Categories of financial instruments
Financial assets
Loans and receivables:
Cash and cash equivalents
18A 1 -
Trade receivables
18B 99 2,614
Loans
18B 30,321 37,588
Other receivables
18B 490 646
Personal benefit recoveries
18B 2,021 3,001
Available for sale:
Investments
18C 380,476 376,490
Carrying amount of financial assets   413,408 420,339
 
Financial liabilities
At amortised cost
Trade creditors
20A 7,414 3,947
Grants and subsidies payable
20B 9,243 6,091
Carrying amount of financial liabilities   16,657 10,038
 
26B: Net income and expense from financial assets
Loans and receivables
Interest revenue 17B 2,020 2,061
Impairment on financial instruments 16G 1,756 -
Impairment of personal benefit recoveries 16G 822 (1,571)
Net gain/(loss) from loans and receivables   4,598 490
 
Available for sale
Dividend revenue 17C 9,000 7,000
Net gain/(loss) from available for sale   9,000 7,000
     
Net gain from financial assets   13,598 7,490

 

26C: Fair value of financial assets

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

26D: Credit risk

The Administered activities of the Department are exposed to minimal credit risk as the majority of financial assets are trade receivables, advances and loans to State and Territory Governments, and shares in associated and Government controlled entities. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of receivables $32,930,448 (2012: $43,848,663). The Department has assessed the risk of default on payment and has allocated $1,697,490 (2012: $2,521,025) 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 2013
$'000
2012
$'000
Loans and receivables      
Cash and cash equivalents
18A 1 -
Trade receivables
18B 99 2,614
Loans
18B 30,321 37,588
Other receivables
18B 490 646
Personal benefit recoveries
18B 2,021 3,001
Available for sale      
Investments
18C 380,476 376,490
Total   413,408 420,339

 

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

 

  Not Past
Due Nor
Impaired
2013
$'000
Not Past
Due Nor
Impaired
2012
$'000
Past due
or
impaired
2013
$'000
Past due
or
impaired
2012
$'000
Loans and receivables        
Cash and cash equivalents
1 - - -
Trade receivables
64 2,060 35 554
Loans
30,321 37,588 - -
Other receivables
490 646 - -
Personal benefit recoveries
- - 2,021 3,001
Available for sale        
Investments
380,476 376,490 - -
Total 411,352 416,784 2,056 3,555

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 26: Administered - financial instruments continued
 
Ageing of financial assets that are past due but not impaired for 2013
 
  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
33 - 2 - 35
Personal benefit recoveries
- - - 324 324
Total 33 - 2 324 359

 

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

 

  0 to 30
days
$'000
31 to 60
days
$'000
61 to 90
days
$'000
90+
days
$'000
Total
$'000
Loans and receivables          
Trade receivables
208 342 - 4 554
Personal benefit recoveries
- - - 480 480
Total 208 342 - 484 1,034

 

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

 

26E: Liquidity risk

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

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

Maturities for non-derivative financial liabilities 2013

  Notes On
demand
2013
$'000
within
1 year
2013
$'000
1 to 5
years
2013
$'000
>5
years
2013
$'000
Total
2013
$'000
Liabilities at amortised cost            
Trade creditors
20A - 7,414 - - 7,414
Grants and subsidies payable
20B - 9,243 - - 9,243
Total   - 16,657 - - 16,657
 
Maturities for non-derivative financial liabilities 2012
 
  Notes On
demand
2012
$'000
within
1 year
2012
$'000
1 to 5
years
2012
$'000
>5
years
2012
$'000
Total
2012
$'000
Liabilities at amortised cost            
Trade creditors
20A - 3,811 - - 3,811
Grants and subsidies payable
20B - 6,091 - - 6,091
Total   - 9,902 - - 9,902

 

26F: Market risk

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

Interest rate risk

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

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
Note 26: Administered - financial instruments continued
26G: Concessional loans
 
  2013 2012
  $'000 $'000
Natural Disaster Relief and Recovery Arrangements
Nominal value 40,603 50,429
Less: Unexpired discount (2,855) (4,529)
Principle repayment (7,427) (8,312)
Carrying value 30,321 37,588
Total Natural Disaster Relief and Recovery Arrangements 30,321 37,588
 
Note 27: Administered financial assets reconciliation
Financial assets
Total financial assets as per schedule of administered assets and liabilities 413,954 421,161
Less: non-financial instrument components
GST receivable from the Australian Taxation Office
2,243 3,343
Impairment allowance
(1,697) (2,521)
Total non-financial instrument components 546 822
Total financial assets as per financial instruments note 413,408 420,339

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
Note 28: Appropriations
 
Table A: Annual appropriations ('recoverable GST exclusive') 
 
  2013 Appropriations Appropriation applied in 2013
(current and prior years)
Variance
Appropriation Act FMA Act  
Annual Appropriation Appropriations reduced(1) AFM Section 30 Section 31 Section 32 Total appropriation
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL          
Ordinary annual services(2)
208,769 - - - 46,167 (3,466) 251,470 266,900 (15,430)
Other services
         
Equity(3)
234 - - -   - 234 5,112 (4,878)
Total departmental 209,003 - - - 46,167 (3,466) 251,704 272,012 (20,308)
ADMINISTERED          
Ordinary annual services(4)
         
Administered items
473,196 (11,277) - 550   (1,229) 461,240 428,694 32,546
Other services
         
States, ACT, NT and Local Governments
5,000 (2,188) - -   - 2,812 2,655 157
Administered assets and liabilities(5)
177,559 - - 20   - 177,579 6,501 171,078
Total administered 655,755 (13,465) - 570   (1,229) 641,631 437,850 203,781

 

Notes:

(1) Appropriations reduced under Appropriation Acts (No 1 & 3) 2012-13: sections 10,11, 12 and 15 and under Appropriation Acts (No 2 & 4 ) 2012-13: sections 12, 13, 14 and 17. (Refer Note 28F).

(2) The variance of appropriation for ordinary annual services represents the payment of invoices for expenses accrued in 2011-12 financial year and 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 unspent 2012-13 appropriation for the Royal Commission into Institutional Responses to Child Sexual Abuse.

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

During 2012-13 additional legal advice was received that indicated there could be breaches of section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determination of the Remuneration Tribunal. The Attorney-General's Department will review its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments.

Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2012 Appropriations Appropriation applied in 2012
(current and prior years)
Variance
Appropriation Act FMA Act  
Annual Appropriation Appropriations reduced(1) AFM Section 30 Section 31 Section 32 Total appropriation
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL          
Ordinary annual services(2)
229,525 - -   32,595 501 262,621 281,456 (18,835)
Other services
         
Equity(3)
8,057 - - -   - 8,057 8,943 (886)
Total departmental 237,582 - - - 32,595 501 270,678 290,399 (19,721)
ADMINISTERED          
Ordinary annual services
         
Administered items
429,683 (9,944) - 809   - 420,548 426,363 (5,815)
Other services
         
States, ACT, NT and Local Governments(4)
5,709 - - -   - 5,709 5,495 214
Administered assets and liabilities
66,869 - - -   - 66,869 13,551 53,318
Total administered 502,261 (9,944) - 809   - 493,126 445,409 47,717

 

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

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

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

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

Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
Note 28: Appropriations continued
 
Table B: Departmental and administered capital budgets ('recoverable GST exclusive')
 
  2013 Capital Budget Appropriations Capital Budget Appropriation applied in 2013
(current and prior years)
Variance
Appropriation Act FMA Act    
Annual Capital Budget Appropriations reduced2 Section 32 Total Capital budget Appropriations Payments for non-financial assets1 Payments for other purposes Total payments
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL
Ordinary annual services - Departmental Capital Budget2
7,289 - (642) 6,647 8,132 - 8,132 (1,485)
ADMINISTERED
Ordinary annual services - Administered Capital Budget2
1,887 - - 1,887 - - - 1,887

 

Notes:

1 Payments made on non-financial assets include purchase of assets, expenditure on assets that have been capitalised, and costs to make good an asset to its original condition.

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

 
  2012 Capital Budget Appropriations Capital Budget Appropriation applied in 2012
(current and prior years)
Variance
Appropriation Act FMA Act    
Annual Capital Budget Appropriations reduced2 Section 32 Total Capital budget Appropriations Payments for non-financial assets1 Payments for other purposes Total payments
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
DEPARTMENTAL
Ordinary annual services - Departmental Capital Budget2
22,419 - - 22,419 21,596 - 21,596 823
ADMINISTERED
Ordinary annual services - Administered Capital Budget2
891 - - 891 - - - 891

 

Notes:

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

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

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
Note 28: Appropriations continued
 
Table C: Unspent annual appropriations ('recoverable GST exclusive')1
 
  2013 2012
Authority $'000 $'000
DEPARTMENTAL
2006/07 Appropriation Act 3 - 1,541
2007/08 Act 2 - Non Operating - Previous Years Outputs - 2,105
2007/08 Appropriation (NTER) Act (no.1) 2007-2008 - 287
2008/09 Appropriation Act 1 - 578
2008/09 Appropriation Act 3 - 1,996
2008/09 Act 4 - Non Operating - Equity Injection - 86
2009/10 Appropriation Act 1 - 5,385
2009/10 Act 2 - Non Operating - Previous Years Outputs - 2,228
2009/10 Appropriation Act 3 - 79
2009/10 Act 4 - Non Operating - Previous Years Outputs - 489
2010/11 Appropriation Act 1 6,870 16,506
2010/11 Appropriation Act 1 - Capital Budget (DCB) - Non Operating 170 298
2010/11 Act 2 - Non Operating - Equity Injection - 86
2010/11 Appropriation Act 3 32 32
2011/12 Appropriation Act 1 4,520 26,013
2011/12 Appropriation Act 1 - Capital Budget (DCB) - Non Operating 60 3,757
2011/12 Act 2 - Non Operating - Equity Injection 637 621
2011/12 Appropriation Act 3 1,698 1,698
2011/12 Appropriation Act 3 - Capital Budget (DCB) - Non Operating 5,700 5,700
2011/12 Act 4 - Non Operating - Equity Injection 1,327 1,327
2012/13 Appropriation Act 1 23,952 -
2012/13 Appropriation Act 1 - Capital Budget (DCB) - - Non Operating 2,341 -
2012/13 Act 2 - Non Operating - Equity Injection 100 -
2012/13 Appropriation Act 3 482 -
Total 47,889 70,813
 
  2013 2012
Authority $'000 $'000
ADMINISTERED    
2006/07 Act 2 - Non Operating - Administered Assets and Liabilities 56,039 56,039
2007/08 Act 2 - Non Operating - Administered Assets and Liabilities 81 81
2008/09 Act 2 - Non Operating - Administered Assets and Liabilities 5,015 5,015
2008/09 Retained Prior Years Appropriation 2,500 2,500
2009/10 Act 2 - Non Operating - Administered Assets and Liabilities 3,541 3,541
2009/10 Appropriation Act 4 - SPP 112 1,231
2010/11 Appropriation Act 1 - Capital Budget (DCB) - Non Operating 1,128 1,128
2010/11 Appropriation Act 3 - 1,790
2011/12 Appropriation Act 1 - 7,244
2011/12 Appropriation Act 1 - Capital Budget (DCB) - Non Operating 891 891
2011/12 Appropriation Act 2 - SPP - 214
2011/12 Act 2 - Non Operating - Administered Assets and Liabilities 11,055 11,055
2012/13 Appropriation Act 1 6,944 -
2012/13 Appropriation Act 1 - Capital Budget (DCB) - - Non Operating 1,887 -
2012/13 Appropriation Act 2 - SPP 1,490 -
2012/13 Appropriation Act 3 25,200 -
2012/13 Act 4 - Non Operating - Administered Assets and Liabilities 14,567 -
Total 130,450 90,729
 
1 The following unspent appropriations were repealed on 1 July 2013 through the Statute Stocktake (Appropriations) Bill 2013 (Refer Note 2):
Departmental:
Nil.
Administered:
2006/07 Appropriation Act 2 - Non-Operating - Administered Assets and Liabilities, $56,038,774;
2007/08 Appropriation Act 2 - Non-Operating - Administered Assets and Liabilities, $80,776;
2008/09 Appropriation Act 2 - Non-Operating - Administered Assets and Liabilities, $5,014,987;
2008/09 Retained Prior Years Appropriation, $2,500,000;
2009/10 Appropriation Act 2 - Non-Operating - Administered Assets and Liabilities, $3,540,804; and
2009/10 Appropriation Act 4 - SPP, $111,699.

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 28: Appropriations continued
Table D: Special appropriations ('recoverable GST exclusive')
 
  Appropriation Applied
  2013 2012
Authority Type Purpose $'000 $'000
National Handgun Buyback Act 20031 Unlimited To provide for financial assistance for qualifying payments made by Sates and other expenditure in connection with the implementation of the handgun buyback and related purposes. - 667
 
High Court Justices (Long Leave Payments) Act 1979 Unlimited To make provisions for long leave payments for Justices of the High Court. 950 -
 
Law Officers Act 1964 Unlimited To make payments of pensions and benefits to former Solicitors General. All transactions under this Act are recognised as Administered items. 404 393
 
Social Security (Administration) Act 1999  Unlimited To enable the payment of income support payments. All transactions under this Act are recognised as Administered items.1 168,879 78,472
 
Financial Management and Accountability Act 1997 Refund To provide for payments under Section 28 of the FMA Act. All transactions under this Act are recognised as Administered items. - 8
Total     170,233 79,540

 

1. No qualifying payments were made during 2012-13. (One in 2011-12).

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

*Department of Human Services
*Insolvency and Trustee Services Australia
*Department of Families, Housing, Community Services and Indigenous Affairs
*Department of Finance and Deregulation

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 28: Appropriations continued
 
Table E: Disclosure by agent in relation to annual and special appropriations ('recoverable GST exclusive')
 
  Australian Public Service Commission - Payments in relation to the Remuneration Tribunal Act 1973 s7(13) Remuneration (including salary) or allowances   Department of Finance and Deregulation Parliamentary Entitlements Act 1990 s11, 5 (1)(b) and Parliamentary Entitlements Regulations 1997, Part 3 - Legal assistance to ministers
2013 $'000   $'000
Total receipts 3,647   104
Total payments 3,647   98
 
  Australian Public Service Commission- Payments in relation to the Remuneration Tribunal Act 1973 s7(13) Remuneration (including salary) or allowances   Department of Finance and Deregulation Parliamentary Entitlements Act 1990 s11, 5 (1)(b) and Parliamentary Entitlements Regulations 1997, Part 3 - Legal assistance to ministers
 
2012 $'000   $'000
Total receipts 3,536   76
Total payments 3,536   68

 

Other Special Appropriations that had nil balances at the end of the 2012-13 financial year and where there were no transactions debited or credited to them during the 2012-13 financial year are: 

  • Native Title Act 1993 Purpose: Payment of successful Native Title compensation claims
  • National Firearms Program Implementation Act 1996 Purpose: Provide financial assistance and other expenditure in connection with the implementation of the national firearms program
  • National Firearms Program Implementation Act 1997 Purpose: Provide for financial assistance in connection with the implementation of the national firearms progam, and for related purposes
  • National Firearms Program Implementation Act 1998 Purpose: Provide for financial assistance in connection with the implementation of the national firearms program, and for related purposes
  • National Handgun Buyback Act 2003 Purpose: Provide financial assistance for qualifying payments made by the States and other expenditure in connection with the implementation of the handgun buyback and related purposes
  • High Court of Australia Act 1979 Purpose: Salary and Allowances of 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, and for related purposes
  • 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
  • Remuneration and Allowances Act 1990 Purpose: Salary and allowances of judges
  • Federal Magistrates Act 1999 Purpose: To make provision for death or invalidity benefits for judges

 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Table F: Reduction in administered items ('recoverable GST exclusive')
 
  Amount required2- by Appropriation Act Total amount appropriated2 Total amount required3 Total reduction4
2013
Ordinary Annual Services Act (No.1) Act (No.3)  
Outcome 1 414,315,000.00 58,881,000.00 473,196,000.00 460,690,000.00 12,506,000.00
 
Other Services Act (No.2) Act (No.4)  
Specific payments to States, ACT, NT and Local government
Outcome 1 5,000,000.00 0.00 5,000,000.00 2,812,022.00 2,187,978.00

 

1. Administered items for 2013 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2013 annual report. This reduction is effective in 2014, but the amounts are reflected in Table A in the 2013 financial statements in the column 'Appropriation reduced' as they are adjustments to 2013 appropriations.

2. Total amount appropriated in 2013.

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

4. Total reduction effective 2014.

  Amount required2- by Appropriation Act Total amount appropriated2 Total amount required3 Total reduction4
2012
Ordinary Annual Services Act (No.1) Act (No.3)  
Outcome 1 420,835,000.00 8,845,000.00 429,683,000.00 419,739,000.00 9,944,000.00
 
Other Services Act (No.2) Act (No.4)  
Specific Payments to States, ACT, NT and Local government
Outcome 1 5,709,000.00 0.00 5,709,000.00 5,709,000.00 0.00

 

1. Administered items for 2012 were reduced to these amounts when these financial statements were tabled in Parliament as per the Attorney-General's Department 2012 annual report. This reduction is effective in 2013, but the amounts are reflected in Table A in the 2012 financial statements in the column 'Appropriation reduced' as they are adjustments to 2012 appropriations.

2. Total amount appropriated in 2012.

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

4. Total reduction effective 2013.

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 29: Special accounts
 
  Services on behalf of other Governments and non public bodies (Administered)1 Other Trust Monies Account (Administered)2 Services for Other Entities and Trust Money - Attorney-General's Department Special Account3
  2013
$ '000
2012
$'000
2013
$'000
2012
$'000
2013
$'000
2012
$'000
Balance brought forward from previous period - 15,837 - 1,869 10,524 -
Increases:      
Appropriation credited to special account
- - - - - 17,706
Other receipts
- - - - 6,913 8,254
Total increases - - - - 6,913 25,960
Available for payments - 15,837 - 1,869 17,437 25,960
Decreases:
Administered
     
Payments made: suppliers 
- - - - (11,384) (15,436)
Appropriation debited from special account
- (15,837) - - -  
Total decreases - (15,837) - (1,869) (11,384) (15,436)
Total balance carried forward to the next period - - - - 6,053 10,524

 

1. 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.

2. 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.

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

 

Note 29: Special accounts (continued)

Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Table A below details the special appropriations and special account administered by AGD containing statutory conditions authorising payments. Having regard to their nature it is in theory possible that an unauthorised payment may be made.

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

Both AGD and DHS have an ongoing program designed to detect, and where appropriate, recover any unauthorised payment. The outcome of work undertaken during the 2012-13 financial year by both AGD and DHS identified the following:

  • In 2012-13 260 (2012: 2,881) potential non-compliant prior years payments totalling $312,855 (2012: $3,490,935) were identified; and
  • No payments made in 2012-13 (2012: 220) are currently under investigation.

On 28 May 2013, the Financial Framework Legislation Amendment Act (No. 2) 2013 received Royal Assent. The Act included amendments to the Social Security Act 1991 in relation to payments made under the Australian Government Disaster Recovery Payment (AGDRP) scheme. The amendments established a "recoverable payments" framework to deal with those instances where a payment has been made in the bona fide administration of the Act and where an error occurred in relation to the payment which prior to the amendment would have been unauthorised.

Table A - Summary

Appropriations identified as subject to conditions Expenditure in 2012-13 Breaches identified from 1 July 2012 to 30 June 2013 Potential breaches to date yet to be resolved Remedial action taken or proposed1
  $'000 Number Actual
$'000
Potential
$'000
Recovered/waived
$'000
Yes/No Indicative extent  
SPECIAL APPROPRIATIONS:
Social Security Act 1991 and Social Security (Administration) Act 1998 168,879 260 0 314 1,292 No Refer Note 1 below LP
National Handgun Buyback Act 2003 - Nil  0 0 0 No N/A  N/A 
Law Officers Act 1984 404 Nil  0 0 0 No N/A  N/A 
High Court Justices (Long Leave Payments) Act 1979 950 Nil  0 0 0 No N/A  N/A 
Financial Management and Accountability Act 1997 - Nil  0 0 0 No N/A  N/A 
National Firearms Program Implementation Act 1996 - Nil  0 0 0 No N/A  N/A 
SPECIAL ACCOUNTS:
Services for Other Entities and Trust Moneys - Attorney-General's Department Special Account (SOETM Special Account) 11,384 Nil  0 0 0 No  N/A  N/A 

Note 1: There are currently no payments made in 2012-13 (2012: 220) that have been identified for investigation which could be potential contraventions of section 83 of the Constitution.

1 LP - legislative change to the Acts received Royal Assent on 28 May 2013

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 30: Compensation and debt relief 
 
  2013 2012
  $ $
Departmental
No ‘Act of Grace’ expenses were incurred during the reporting period. (2012: 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. (2012: No waivers) - -
One payment was made under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2012: No payments). 909 -
No ex-gratia payments were provided for during the reporting period.
(2012: 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 (2012: No payments). - -
Administered
No ‘Act of Grace’ expenses were incurred during the reporting period. (2012: 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. (2012: No waivers) - -
No payments were provided for under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period. (2012: No payments). - -
No ex-gratia payments were provided for during the reporting period.
(2012: 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. (2012: No payments). - -

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
Note 31: Reporting of outcomes
 
The Department uses budgeted average staffing levels to determine the attribution of its shared items. The basis of attribution in the Table is consistent with the basis used for the 2012-13 Budget.
 
31A: Net cost of outcome delivery
 
  Outcome 1 Total
  2013 2012 2013 2012
  $’000 $’000 $’000 $’000
Departmental
Expenses
(262,205) (320,392) (262,205) (320,392)
Own-source income
43,845 36,946 43,845 36,946
 
Administered
Expenses
(620,018) (510,241) (620,018) (510,241)
Own-source income
24,084 22,558 24,084 22,558
Net cost/(contribution) of outcome delivery (814,294) (771,129) (814,294) (771,129)
 
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome. Refer to Outcome 1 Resourcing Table of this Annual Report.
 
31B: Major classes of departmental expense, income, assets and liabilities by outcomes
 
  Outcome 1 Total
2013 2012 2013 2012
$’000 $’000 $’000 $’000
Departmental Expenses:
Employees 160,233 177,910 160,233 177,910
Suppliers 79,694 80,460 79,694 80,460
Grants 708 1,017 708 1,017
Depreciation and amortisation 21,499 22,429 21,499 22,429
Other expenses 71 236 71 236
Transfer of assets - 38,340 - 38,340
Total 262,205 320,392 262,205 320,392
 
Departmental Income:
Income from government 198,397 205,655 198,397 205,655
Sale of goods and services 43,440 36,541 43,440 36,541
Other income 405 405 405 405
Total 242,242 242,601 242,242 242,601
 
Departmental Assets:
Cash and cash equivalents 1,794 5,021 1,794 5,021
Trade and other receivables 56,435 83,377 56,435 83,377
Land and buildings 73,780 75,289 73,780 75,289
Property, plant and equipment 21,167 25,776 21,167 25,776
Intangibles 25,832 29,315 25,832 29,315
Other non-financial assets 4,652 4,001 4,652 4,001
Total 183,660 222,779 183,660 222,779
 
Departmental Liabilities:
Suppliers 27,033 43,740 27,033 43,740
Other payables 17,332 19,917 17,332 19,917
Employee provisions 37,900 40,570 37,900 40,570
Other provisions 341 274 341 274
Total 82,606 104,501 82,606 104,501
 
Outcome 1 is described in Note 1.1.
 
31C: Major classes of administered expense, income, assets and liabilities by outcomes
 
  Outcome 1 Total
  2013 2012 2013 2012
  $’000 $’000 $’000 $’000
Administered Expenses:
Employee benefits 6,568 1,035 6,568 1,035
Suppliers 44,386 47,422 44,386 47,422
Subsidies 2,458 2,426 2,458 2,426
Personal benefits  177,093 81,101 177,093 81,101
Grants 386,155 373,778 386,155 373,778
Write-down and impairment of assets 934 1,596 934 1,596
Depreciation and amortisation 2,424 2,883 2,424 2,883
Total 620,018 510,241 620,018 510,241
 
Administered Income:
Dividends 9,000 7,000 9,000 7,000
Competitive neutrality 4,711 4,929 4,711 4,929
Sale of goods and rendering of services 5,712 5,798 5,712 5,798
Interest 2,020 2,061 2,020 2,061
Recoveries 316 829 316 829
Other revenue 2,325 1,941 2,325 1,941
Total 24,084 22,558 24,084 22,558
 
Administered Assets:
Cash and cash equivalents 1 - 1 -
Loans and receivables 33,477 44,671 33,477 44,671
Investments 380,476 376,490 380,476 376,490
Land and Buildings 7,200 - 7,200 -
Property, plant and equipment 4,380 5,271 4,380 5,271
Intangibles 560 869 560 869
Other non-financial assets 354 3,276 354 3,276
Total 426,448 430,577 426,448 430,577
 
Administered Liabilities:
Suppliers 7,414 3,811 7,414 3,811
Grants and subsidies 9,243 6,091 9,243 6,091
Other payables 595 885 595 885
Superannuation provisions 5,703 7,007 5,703 7,007
Total 22,955 17,794 22,955 17,794
 
Outcome 1 is described in Note 1.1.
 

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  Notes $'000 $'000
Note 32: Cost recovery
 
32A: Receipts subject to cost recovery policy
Significant cost recovery arrangements
AusCheck background checking service 1 July 2010 - 30 June 2013
  11,743 13,200
Other cost recovery arrangements
Sale of publications
  286 438
Legislative drafting1
  36 1,105
Federal Register of Legislative Instruments (FRLI) registration fees1
  810 3,433
Protective security training registration fees
  1,431 1,767
Total receipts subject to cost recovery policy   14,306 19,943
 
32B: Administered receipts subject to cost recovery policy
Significant cost recovery arrangements
Classification Fees September 2011 - June 2013
  5,334 5,501
Other cost recovery arrangements
ASNET Levy
  194 172
Total receipts subject to cost recovery policy   5,528 5,673

 

1 On 1 October 2012 due to a restructuring arrangement these receipts were relinquished to the Office of Parliamentary Counsel (OPC).

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Notes to and forming part of the financial statements
for the period 1 July 2012 to 30 June 2013
 
  2013 2012
  $'000 $'000
Note 33: Net cash appropriation arrangements
Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 1,241 (57,565)
Plus: depreciation/amortisation expenses previously funded through revenue appropriation2 (21,020) (20,616)
Total comprehensive income (loss) - as per the Statement of Comprehensive Income1 (19,779) (78,181)

 

1 From 2010-11 the Government introduced net cash appropriation arrangements, where revenue appropriation for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations (refer Statement of Changes in Equity).

2 This amount varies from the depreciation and amortisation expense shown in the Statement of Comprehensive Income by $0.479m (2012: $1.813m) which represents the component of depreciation and amortisation that has been cost-recovered through external income generating activities of the Department. (Refer Note 3D).

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