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
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
Cash on hand or deposit | 2 | 1 |
Cash held in special account | 1,641 | 1,632 |
Total cash and cash equivalents | 1,643 | 1,633 |
The closing balance of Cash held in special account does not include amounts held in trust. | ||
7.1B: Trade and other receivables | ||
Goods and services receivables | 11,401 | 13,692 |
Other receivables | ||
Other | 6 | 2 |
Personal benefit recoveries | 5,679 | 5,200 |
Statutory receivables | 635 | 2,027 |
Total other receivables | 6,320 | 7,229 |
Total trade and other receivables (gross) | 17,721 | 20,921 |
Less impairment allowance | (47) | (42) |
Total trade and other receivables (net) | 17,674 | 20,879 |
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 $11,400,982 (2020: $13,691,502). The department has assessed the risk of default on payment and has allocated $46,773 (2020: $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.
2021 | 2020 | |
$'000 | $'000 | |
Investments in associates | ||
Australian Human Rights Commission | (5,644) | (2,557) |
Coal Mining Industry (Long Service Leave Funding) Corporation | 359,677 | 142,557 |
Comcare | 8,561 | 17,208 |
High Court of Australia | 245,056 | 241,393 |
Investments in jointly controlled entities | ||
Law Courts Limited | 161,608 | 171,040 |
Total investments accounted for using the equity method | 769,258 | 569,641 |
Details of investments accounted for using the equity method | ||
Ownership | ||
2021 | 2020 | |
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.
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.
Investments in associates
The department’s investment in its associates is accounted for using the equity method.
Under the equity method, investments in 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.
7.2 Administered - non-financial assets
Leasehold improvements | Plant & equipment | Intangibles - computer software 1 | Total | |
|---|---|---|---|---|
$'000 | $'000 | $'000 | $'000 | |
As at 1 July 2020 | ||||
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 1 July 2020 | 22,553 | 947 | 131 | 23,631 |
Additions | ||||
By purchase | 144 | 191 | 48 | 383 |
Right-of-use assets | 424 | − | − | 424 |
Internally developed | − | − | 71 | 71 |
Revaluation and impairments recognised through other comprehensive income | 9 | (51) | − | (42) |
Depreciation and amortisation | (5,580) | (463) | (92) | (6,135) |
Depreciation on right-of-use assets | (3,833) | − | − | (3,833) |
Total as at 30 June 2021 | 13,717 | 624 | 158 | 14,499 |
Total as at 30 June 2021 represented by | ||||
Gross book value | 20,982 | 1,004 | 3,639 | 25,625 |
Accumulated depreciation, amortisation and impairment | (7,265) | (380) | (3,481) | (11,126) |
Total as at 30 June 2021 | 13,717 | 624 | 158 | 14,499 |
Carrying amount of right-of-use assets | 9,315 | − | − | 9,315 |
1. The carrying amount of computer software included $0.110m (2020: $0.131m) purchased software and $0.048m (2020: nil) internally developed software.
No indicators of impairment were found for leasehold improvements, property, plant and equipment and intangibles.
No leasehold improvements, 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 2021, there was a $0.009m increment (2020: nil increment) for buildings on freehold land and leasehold improvements that were credited to the asset revaluation reserve by asset class and included in the equity section of the administered reconciliation schedule.
Plant and equipment
All revaluations were undertaken in accordance with the revaluation policy stated in Note 6.2A. In 2021 there was a $0.051m decrement for plant and equipment (2020: nil increment) was credited against the asset revaluation reserve by asset class and included in the equity section of the administered reconciliation schedule.
On 30 June 2021, Public Private Property Pty Ltd conducted the revaluations.
Contractual commitments for the acquisition of property, plant, equipment and intangible assets
Nil contractual commitments for the acquisition of property, plant, equipment and intangibles are payable within one year (2020: $0.027m).
Fair value measurements at the end of the reporting period | ||
2021 | 2020 | |
$'000 | $'000 | |
Financial assets | ||
Investments in associates | 607,650 | 398,601 |
Investments in jointly controlled entities | 161,608 | 171,040 |
Total financial assets | 769,258 | 569,641 |
Non-financial assets | ||
Leasehold improvements | 4,402 | 9,829 |
Plant and equipment | 624 | 947 |
Total non-financial assets | 5,026 | 10,776 |
Total fair value measurements of assets in the administered schedule of assets and liabilities | 774,284 | 580,417 |
The department did not measure any non-financial assets on a non-recurring basis as at 30 June 2021 (2020: nil).
There have been no changes to valuation techniques from the previous reporting period.
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
7.2C: Other non-financial assets | ||
Prepayments | 7,970 | 10,220 |
No indicators of impairment were found for other non-financial assets.
7.3 Administered - payables
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
7.3A: Suppliers | ||
Trade creditors | 4,129 | 1,240 |
Accrued payables | 8,425 | 9,599 |
Total suppliers | 12,554 | 10,839 |
Supplier payables are expected to be settled in no more than 12 months.
Settlement is usually net 30 days.
7.3B: Personal benefits | ||
Fair Entitlements Guarantee Act 2012 payments | 760 | 157 |
7.3C: Grants | ||
Non-profit organisations | 305 | − |
Grant payables are 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 | ||
Coal Mining Industry (Long Service Leave Funding) Corporation | 10,869 | 13,086 |
7.3E: Other payables | ||
Comcare payable 1, 2 | 2,049,685 | 2,094,027 |
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; and
- 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 | ||
Lease liabilities | 9,765 | 12,996 |
Maturity analysis - contractual undiscounted cash flows | ||
Within 1 year | 3,253 | 3,853 |
Between 1 to 5 years | 6,762 | 10,014 |
Total leases | 10,015 | 13,867 |
Total cash outflow for leases excluding low value and short term leases for the year ended 30 June 2021 was $3.853m (2020: $3.367m).
7.5 Administered - other provisions
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
7.5A: Makegood provisions | ||
Provision for restoration obligations | − | 363 |
Provision for restoration | Total | |
$'000 | $'000 | |
As at 1 July 2020 | 363 | 363 |
Amounts reversed | (363) | (363) |
Total as at 30 June 2021 | − | − |
Visit
https://www.transparency.gov.au/annual-reports/attorney-generals-department/reporting-year/2020-21-55