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Note 7: Assets and Liabilities Administered on Behalf of Government

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

7.1 Administered - financial assets

7.1A: Cash and cash equivalents

2020

2019

$'000

$'000

Cash on hand or deposit

1

1

Cash held in special account

1,632

1,638

Total cash and cash equivalents

1,633

1,639

7.1B: Trade and other receivables

2020

2019

$'000

$'000

Goods and services receivables

13,692

12,243

Other receivables

Other

2

17

Personal benefit recoveries

5,200

22,072

Statutory receivables

2,027

1,029

Total other receivables

7,229

23,118

Total trade and other receivables (gross)

20,921

35,361

Less impairment allowance

(42)

(42)

Total trade and other receivables (net)

20,879

35,319

Accounting policy

The Administered activities of the department are exposed to minimal credit risk as the majority of financial assets are trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of receivables $13,691, (2019: $12,243,037). The department has assessed the risk of default on payment and has allocated $41,696 (2019: $41,696) to an impairment allowance account. This amount has been determined following an assessment of invoices greater than 90 days.

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.

7.1C: Equity accounted investments

2020

2019

$'000

$'000

Investments in associates

Australian Human Rights Commission

(2,557)

812

Coal Mining Industry (Long Service Leave Funding) Corporation

142,557

307,942

Comcare

17,208

22,981

High Court of Australia

241,393

240,104

Investments in jointly controlled entities

Law Courts Limited

171,040

176,381

Total investments accounted for using the equity method

569,641

748,220

Details of investments accounted for using the equity method

Ownership

2020

2019

Name of entity

%

%

Jointly controlled entities

47.5

47.5

Law Courts Limited

Associates

Australian Human Rights Commission

100

100

Coal Mining Industry (Long Service Leave Funding) Corporation

100

100

Comcare

100

100

High Court of Australia

100

100

Accounting policy

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

Investments in associates

The department’s investment in its associates is accounted for using the equity method.

Under the equity method, investments in the associates are carried in the entity's statement of financial position at cost as adjusted for post-acquisition changes in the department's share of net assets of the associates. Goodwill relating to an associate is included in the carrying amount of the investment. After the application of the equity method, the department determines whether it is necessary to recognise any impairment loss with respect to the net investment in associates.

Jointly controlled entities

Interests in jointly controlled entities in which the department is a venturer (and so has joint control) are accounted for using the equity method.

7.2 Administered - non-financial assets

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

Leasehold improvements

Property, plant & equipment

Computer software 1

Total

$'000

$'000

$'000

$'000

As at 1 July 2019

Gross book value

3,774

1,204

3,403

8,381

Accumulated depreciation, amortisation and impairment

(1,334)

(549)

(3,333)

(5,216)

Total as at 1 July 2019

2,440

655

70

3,165

Recognition of right-of-use asset on initial application of AASB 16

1,127

1,127

Adjusted total as 1 July 2019

3,567

655

70

4,292

Additions

By purchase

9,251

922

117

10,290

Right-of-use assets

15,030

15,030

Depreciation and amortisation

(1,862)

(630)

(56)

(2,548)

Depreciation on Right-of-use assets

(3,433)

(3,433)

Total as at 30 June 2020

22,553

947

131

23,631

Total as at 30 June 2020 represented by

Gross book value

29,182

1,974

3,520

34,676

Accumulated depreciation, amortisation and impairment

(6,629)

(1,027)

(3,389)

(11,045)

Total as at 30 June 2020

22,553

947

131

23,631

Carrying amount of right-of-use assets

12,724

12,724

1 The carrying amount of computer software included $0.131m (2019: $0.070m) purchased software and nil (2019: nil) internally developed software.

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

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

Revaluations of non-financial assets

Land and buildings

All revaluations were undertaken in accordance with the revaluation policy stated in Note 6.2A. In 2020 there was a nil increment (2019: nil increment) for buildings on freehold land and leasehold improvements that were credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position.

Property, plant and equipment

All revaluations were undertaken in accordance with the revaluation policy stated in Note 6.2A. In 2020 there was a nil increment for property, plant and equipment (2019: nil increment) was credited against the asset revaluation surplus by asset class and included in the equity section of the statement of financial position.

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

Contractual commitments for the acquisition of property, plant, equipment and intangibles of $0.027m are payable within one year (2019: $0.001m).

7.2B: Fair value measurement

Fair value measurements at the end of the reporting period

2020

2019

$'000

$'000

Financial assets

Investments in associates

398,601

571,839

Investments in jointly controlled entities

171,040

176,381

Total financial assets

569,641

748,220

Non-financial assets

Leasehold improvements

9,829

2,440

Property, plant and equipment

947

655

Total non-financial assets

10,776

3,095

Total fair value measurements of assets in the administered schedule of assets and liabilities

580,417

751,315

The department did not measure any non-financial assets on a non-recurring basis as at 30 June 2020 (2019: nil).

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

7.2C: Other non-financial assets

2020

2019

$'000

$'000

Prepayments

10,220

71

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

7.3 Administered - payables

7.3A: Suppliers

2020

2019

$'000

$'000

Trade creditors

1,240

1,587

Accrued payables

9,599

5,525

Operating lease rentals

10

Total suppliers

10,839

7,122

Suppliers expected to be settled in no more than 12 months.

Settlement is usually net 30 days.

7.3B: Personal benefits

2020

2019

$'000

$'000

Fair Entitlements Guarantee Act 2012 payments

157

2,519

7.3C: Grants

2020

2019

$'000

$'000

State and territory governments

2,742

Non-profit organisations

37

Total grants

2,779

Grants expected to be settled in no more than 12 months.

Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.

7.3D: Subsidies

2020

2019

$'000

$'000

Coal Mining Industry (Long Service Leave Funding) Corporation

13,086

11,735

7.3E: Other payables

2020

2019

$'000

$'000

Comcare payable 1, 2

2,094,027

2,192,041

1 The amount payable by the Commonwealth to Comcare for:

- workers compensation claims resulting from injuries that occurred prior to 1 July 1989, referred to as ‘pre premium’ claims

- workers compensation claims resulting from injuries that have occurred since 1July 1989, referred to as ‘premium’ claims

- the management of asbestos related personal injury common law disease claims against the Commonwealth.

2 The majority of the Comcare payable is non-current in nature (Refer Note: 9.1B).

7.4 Administered - interest bearing liabilities

7.4A: Leases

2020

2019

$'000

$'000

Lease liabilities 1

12,996

1 The department has applied AASB 16 for the first time using the modified retrospective approach. The comparative information has not been restated and continues to be reported under AASB 117.

Total cash outflow for leases excluding low value and short term leases for the year ended 30 June 2020 was $3.367m.

7.5 Administered - other provisions

7.5A: Makegood provisions

2020

2019

$'000

$'000

Provision for restoration obligations

363

357

Provision for restoration

Total

$'000

$'000

As at 1 July 2019

357

357

Unwinding of discount or change in discount rate

6

6

Total as at 30 June 2020

363

363