Financial statements for year ending 30 June 2019
Table of contents
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Australian Fisheries Management Authority |
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
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for the period ended 30 June 2019 |
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Certification |
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Primary financial statements |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Cash Flow Statement |
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Administered Schedule of Comprehensive Income |
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Administered Schedule of Assets and Liabilities |
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Administered Reconciliation Schedule |
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Administered Cash Flow Statement |
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Overview |
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Notes to the financial statements: |
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1. Financial performance |
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1.1: Expenses |
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1.2: Own Source Revenue |
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1.3: Revenue from Government |
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Accounting policies – financial performance |
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2. Departmental Financial position |
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2.1: Financial assets |
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2.2: Non-financial assets |
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2.3: Payables |
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Accounting policies – financial position |
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3. Assets and liabilities administered on behalf of the Government |
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3.1: Administered – financial assets |
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3.2: Administered – liabilities |
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4. Funding |
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4.1: Appropriations |
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4.2: Special accounts |
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4.3: Regulatory charging summary |
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4.4: Net cash appropriation arrangements |
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5. People and relationships |
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5.1: Employees |
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Accounting policies – people and relationships |
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5.2: Key management personnel remuneration |
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5.3: Related party disclosures |
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6. Managing uncertainty |
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6.1: Contingent liabilities and contingent assets |
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6.2: Financial instruments |
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6.3: Administered – financial instruments |
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Accounting policies – financial instruments |
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7. Other Information |
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7.1: Aggregate Assets and Liabilities |
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7.2: Assets held in Trust |
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Certification
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Australian Fisheries Management Authority |
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for the period ended 30 June 2019 |
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Statement by the Chief Executive Officer and the Chief Finance Officer |
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In our opinion, the attached financial statements for the year ended 30 June 2019 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsections 41(2) of the PGPA Act. |
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In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Fisheries Management Authority (AFMA) will be able to pay its debts as and when they fall due. |
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Wez Norris |
Robert Gehrig |
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Chief Executive Officer |
Chief Finance Officer |
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10 September 2019 |
10 September 2019 |
Statement of Comprehensive Income
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Australian Fisheries Management Authority |
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STATEMENT OF COMPREHENSIVE INCOME |
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for the period ended 30 June 2019 |
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2019 |
2018 |
2019 Original Budget |
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Notes |
$'000 |
$'000 |
$'000 |
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NET COST OF SERVICES |
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Expenses |
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Employee benefits |
20,864 |
20,630 |
21,383 |
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Suppliers |
18,523 |
17,548 |
17,742 |
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Depreciation and amortisation |
1,118 |
991 |
1,599 |
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Finance costs |
21 |
- |
- |
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Write-down and impairment of other assets |
30 |
(9) |
- |
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Impairment allowance on financial instruments |
11 |
19 |
- |
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Total expenses |
40,567 |
39,179 |
40,724 |
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Own-Source Income |
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Own-source revenue |
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Sale of goods and rendering of services |
3,027 |
3,104 |
2,423 |
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Rental income |
321 |
696 |
428 |
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Interest |
14 |
38 |
- |
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Total own-source revenue |
3,362 |
3,838 |
2,851 |
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Gains |
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Resources received free of charge |
43 |
43 |
45 |
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Total gains |
43 |
43 |
45 |
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Total own-source income |
3,405 |
3,881 |
2,896 |
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Net (cost of) services |
(37,162) |
(35,298) |
(37,828) |
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Revenue from Government |
33,796 |
34,398 |
34,208 |
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Deficit attributable to the Australian Government |
(3,366) |
(900) |
(3,620) |
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OTHER COMPREHENSIVE INCOME |
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Items not subject to subsequent reclassification to net cost of services |
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Changes in asset revaluation surplus |
(37) |
(20) |
- |
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Total other comprehensive (loss) |
(37) |
(20) |
- |
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Total Comprehensive (loss) |
(3,403) |
(920) |
(3,620) |
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The above statement should be read in conjunction with the accompanying notes. |
Budget Variances Commentary
Own-source revenues were higher than budgeted by $0.5 million primarily due to higher services income for Vessel Monitoring Systems and observer fee for service income.
Suppliers were $0.8 million higher than the Original Budget. The key drivers included:
higher compliance costs associated with satellite monitoring;
higher than forecast legal costs and legal settlement costs; and
higher consultancy and contractor costs primarily related to AFMA communications team and transition of the financial management information systems to the cloud.
Depreciation and amortisation was $0.5 million lower as budgeted depreciation was set using historical averages. Going forward AFMA's depreciation and amortisation expense will increase substantially from 2019-20 onwards due to the amortisation of Right of Use lease assets under AASB 16 and the Canberra office lease fit-out in 2018-19.
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Own-source revenues were higher than budgeted by $0.5 million primarily due to higher services income for Vessel Monitoring Systems and observer fee for service income.
Suppliers were $0.8 million higher than the Original Budget. The key drivers included:
higher compliance costs associated with satellite monitoring;
higher than forecast legal costs and legal settlement costs; and
higher consultancy and contractor costs primarily related to AFMA communications team and transition of the financial management information systems to the cloud.
Depreciation and amortisation was $0.5 million lower as budgeted depreciation was set using historical averages. Going forward AFMA's depreciation and amortisation expense will increase substantially from 2019-20 onwards due to the amortisation of Right of Use lease assets under AASB 16 and the Canberra office lease fit-out in 2018-19.
Statement of Financial Position
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Australian Fisheries Management Authority |
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STATEMENT OF FINANCIAL POSITION |
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as at 30 June 2019 |
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2019 |
2018 |
2019 Original Budget |
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Notes |
$’000 |
$’000 |
$’000 |
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ASSETS |
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Financial Assets |
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Cash and cash equivalents |
8,959 |
14,238 |
- |
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Trade and other receivables |
1,324 |
1,662 |
8,779 |
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Total financial assets |
10,283 |
15,900 |
8,779 |
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Non-Financial Assets |
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Land |
975 |
975 |
975 |
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Buildings |
5,417 |
1,200 |
2,929 |
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Plant and equipment |
1,802 |
578 |
2,025 |
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Computer software |
435 |
389 |
169 |
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Other non-financial assets |
412 |
235 |
698 |
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Total non-financial assets |
9,041 |
3,377 |
6,796 |
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Total assets |
19,324 |
19,277 |
15,575 |
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LIABILITIES |
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Payables |
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Suppliers |
- |
2 |
2,302 |
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Other payables |
5,937 |
3,581 |
1,080 |
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Total payables |
5,937 |
3,583 |
3,382 |
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Provisions |
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Employee provisions |
5,442 |
5,082 |
5,325 |
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Other provisions |
127 |
- |
- |
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Total provisions |
5,569 |
5,082 |
5,325 |
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Total liabilities |
11,506 |
8,665 |
8,707 |
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Net assets |
7,818 |
10,612 |
6,868 |
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EQUITY |
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Contributed equity |
12,808 |
12,199 |
12,962 |
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Reserves |
3,773 |
4,202 |
4,221 |
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(Accumulated deficit) |
(8,763) |
(5,789) |
(10,315) |
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Total equity |
7,818 |
10,612 |
6,868 |
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The above statement should be read in conjunction with the accompanying notes. |
Budget Variances Commentary
Cash at end of the reporting period was $9.0 million higher due to Department of Finance (DoF)'s Central Budget Management System (CBMS) classifying special accounts as a receivable at the time of the 2018-19 budget statements. DoF has since reclassified special accounts as cash equivalents in CBMS to match financial reporting requirements.
Non-financial assets were $2.2 million higher than the Original Budget primarily due to additional leasehold fit-out purchased with the move to the new Canberra office.
Payables were $2.6 million higher than the Original Budget primarily due to the negotiation of a Canberra office lease incentive valued at $2.0 million.
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Cash at end of the reporting period was $9.0 million higher due to Department of Finance (DoF)'s Central Budget Management System (CBMS) classifying special accounts as a receivable at the time of the 2018-19 budget statements. DoF has since reclassified special accounts as cash equivalents in CBMS to match financial reporting requirements.
Non-financial assets were $2.2 million higher than the Original Budget primarily due to additional leasehold fit-out purchased with the move to the new Canberra office.
Payables were $2.6 million higher than the Original Budget primarily due to the negotiation of a Canberra office lease incentive valued at $2.0 million.
Statement of Changes in Equity
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2019 |
2018 |
2019 Original Budget |
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Notes |
$’000 |
$’000 |
$’000 |
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CONTRIBUTED EQUITY |
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Opening balance |
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Balance carried forward from previous period |
12,199 |
11,734 |
12,365 |
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Transactions with owners |
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Departmental capital budget |
609 |
465 |
597 |
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Total transactions with owners |
609 |
465 |
597 |
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Closing balance as at 30 June |
12,808 |
12,199 |
12,962 |
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RETAINED EARNINGS |
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Opening balance |
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Balance carried forward from previous period |
(5,789) |
(4,889) |
(6,695) |
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Adjusted opening balance |
(5,789) |
(4,889) |
(6,695) |
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Comprehensive income |
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Deficit for the period |
(3,366) |
(900) |
(3,620) |
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Total comprehensive income |
(3,366) |
(900) |
(3,620) |
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Transfers between equity components |
392 |
- |
- |
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Closing balance as at 30 June |
(8,763) |
(5,789) |
(10,315) |
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ASSET REVALUATION RESERVE |
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Opening balance |
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Balance carried forward from previous period |
4,202 |
4,222 |
4,221 |
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Adjusted opening balance |
4,202 |
4,222 |
4,221 |
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Comprehensive income |
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Other comprehensive income |
(37) |
(20) |
- |
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Total comprehensive income |
(37) |
(20) |
- |
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Transfers between equity components |
(392) |
- |
- |
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Closing balance as at 30 June |
3,773 |
4,202 |
4,221 |
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TOTAL EQUITY |
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Opening balance |
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Balance carried forward from previous period |
10,612 |
11,067 |
9,891 |
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Adjusted opening balance |
10,612 |
11,067 |
9,891 |
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Comprehensive income |
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Surplus/(Deficit) for the period |
(3,366) |
(900) |
(3,620) |
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Other comprehensive income |
(37) |
(20) |
- |
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Total comprehensive income |
(3,403) |
(920) |
(3,620) |
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Transactions with owners |
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Departmental capital budget |
609 |
465 |
597 |
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Total transactions with owners |
609 |
465 |
597 |
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Closing balance as at 30 June |
7,818 |
10,612 |
6,868 |
The above statement should be read in conjunction with the accompanying notes.
Accounting Policy
Equity injections
Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.
Budget Variances Commentary
The closing balance of equity is $0.9 million higher than the Original Budget. The variance comprises a higher opening balance for equity of $0.7 million and lower than forecast operating loss in 2018-19 of $0.2 million.
Cash Flow Statement
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CASH FLOW STATEMENT |
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for the period ended 30 June 2019 |
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2019 |
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Original |
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2019 |
2018 |
Budget |
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Notes |
$’000 |
$’000 |
$'000 |
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OPERATING ACTIVITIES |
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Cash received |
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Appropriations |
34,309 |
34,350 |
40,021 |
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Sales of goods and rendering of services |
5,656 |
3,382 |
2,851 |
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Net GST received |
1,876 |
1,474 |
- |
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Total cash received |
41,841 |
39,206 |
42,872 |
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Cash used |
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Employees |
20,472 |
20,707 |
21,383 |
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Suppliers |
21,106 |
18,300 |
17,697 |
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Total cash used |
41,578 |
39,007 |
39,080 |
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Net cash from/(used by) operating activities |
263 |
199 |
3,792 |
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INVESTING ACTIVITIES |
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Cash used |
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Purchase of property, plant and equipment |
6,151 |
462 |
4,807 |
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Total cash used |
6,151 |
462 |
4,807 |
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Net cash from/(used by) investing activities |
(6,151) |
(462) |
(4,807) |
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FINANCING ACTIVITIES |
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Cash received |
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Contributed equity - departmental capital budget |
609 |
465 |
597 |
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Total cash received |
609 |
465 |
597 |
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Net cash from/(used by) financing activities |
609 |
465 |
597 |
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Net increase in cash held |
(5,279) |
202 |
(418) |
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Cash and cash equivalents at the beginning of the reporting period |
14,238 |
14,036 |
418 |
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Cash and cash equivalents at the end of the reporting period |
8,959 |
14,238 |
- |
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The above statement should be read in conjunction with the accompanying notes. |
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Budget Variances Commentary |
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Operating Activities |
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Sales of goods and services cash received was $2.8 million higher than the Original Budget primarily due to the negotiation of a Canberra office lease incentive valued at $2.0 million and higher services income for Vessel Monitoring Systems and observer fee for service income. |
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Supplier cash used was $3.4 million higher than estimated primarily due to higher compliance costs associated with satellite monitoring, higher than forecast legal costs and legal settlement costs; and higher consultancy and contractor costs and higher than forecast GST paid. |
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Investing Activities Total cash used was $1.3 million higher than estimated in the Original Budget primarily as a result of purchases of leasehold improvements and property, plant and equipment related to the Canberra office relocation. |
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Cash held at end of reporting period Cash at end of the reporting period varies due to Department of Finance (DoF)'s Central Budget Management System (CBMS) classifying special accounts as a receivable at the time of the 2018-19 budget statements. DoF has since reclassified special accounts as cash equivalents in CBMS to match financial reporting requirements. |
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The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Operating Activities
Sales of goods and services cash received was $2.8 million higher than the Original Budget primarily due to the negotiation of a Canberra office lease incentive valued at $2.0 million and higher services income for Vessel Monitoring Systems and observer fee for service income.
Supplier cash used was $3.4 million higher than estimated primarily due to higher compliance costs associated with satellite monitoring, higher than forecast legal costs and legal settlement costs; and higher consultancy and contractor costs and higher than forecast GST paid.
Investing Activities
Total cash used was $1.3 million higher than estimated in the Original Budget primarily as a result of purchases of leasehold improvements and property, plant and equipment related to the Canberra office relocation.
Cash at the end of reporting period
Cash at end of the reporting period varies due to Department of Finance (DoF)'s Central Budget Management System (CBMS) classifying special accounts as a receivable at the time of the 2018-19 budget statements. DoF has since reclassified special accounts as cash equivalents in CBMS to match financial reporting requirements.
Administered Schedule of Comprehensive Income
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Australian Fisheries Management Authority |
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ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME |
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for the period ended 30 June 2019 |
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2019 |
2018 |
2019 Original Budget |
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Notes |
$’000 |
$’000 |
$'000 |
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NET COST OF SERVICES |
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Expenses |
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Suppliers |
810 |
1,102 |
5,506 |
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Impairment allowance on financial instruments |
224 |
- |
- |
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Total expenses |
1,034 |
1,102 |
5,506 |
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Income |
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Revenue |
||||
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Non-taxation revenue |
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Fees and fines |
21 |
20 |
- |
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Other revenue |
15 |
16 |
- |
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Total non-taxation revenue |
36 |
36 |
- |
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Total revenue |
36 |
36 |
- |
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Total income |
36 |
36 |
- |
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Net cost of services |
(998) |
(1,066) |
(5,506) |
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(Deficit) |
(998) |
(1,066) |
(5,506) |
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Total Comprehensive loss |
(998) |
(1,066) |
(5,506) |
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This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Expenses
Suppliers expenses were $4.7 million lower than the Original Budget. Costs for the caretaking and disposal of illegal foreign fishing vessels were lower due to lower vessel apprehensions than budgeted.
Administered Schedule of Assets and Liabilities
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ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES |
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as at 30 June 2019 |
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2019 |
2018 |
2019 Original Budget |
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Notes |
$’000 |
$’000 |
$'000 |
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ASSETS |
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Financial assets |
||||
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Trade and other receivables |
433 |
295 |
1,190 |
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Total financial assets |
433 |
295 |
1,190 |
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Total assets administered on behalf of Government |
433 |
295 |
1,190 |
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LIABILITIES |
||||
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Payables |
||||
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Suppliers |
411 |
57 |
168 |
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Total payables |
411 |
57 |
168 |
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Total liabilities administered on behalf of Government |
411 |
57 |
168 |
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Net assets |
22 |
238 |
1,022 |
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This schedule should be read in conjunction with the accompanying notes. |
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Budget Variances Commentary |
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Payables were $0.2 million higher due to higher accrued expenditure at year-end resulting from vessel apprehension and disposal late in the financial year. |
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This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Payables were $0.2 million higher due to higher accrued expenditure at year-end resulting from vessel apprehension and disposal late in the financial year.
Administered Reconciliation Schedule
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ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES |
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as at 30 June 2019 |
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2019 |
2018 |
2019 Original Budget |
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|
Notes |
$’000 |
$’000 |
$'000 |
|
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ASSETS |
||||
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Financial assets |
||||
|
Trade and other receivables |
433 |
295 |
1,190 |
|
|
Total financial assets |
433 |
295 |
1,190 |
|
|
Total assets administered on behalf of Government |
433 |
295 |
1,190 |
|
|
LIABILITIES |
||||
|
Payables |
||||
|
Suppliers |
411 |
57 |
168 |
|
|
Total payables |
411 |
57 |
168 |
|
|
Total liabilities administered on behalf of Government |
411 |
57 |
168 |
|
|
Net assets |
22 |
238 |
1,022 |
|
|
This schedule should be read in conjunction with the accompanying notes. |
||||
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Budget Variances Commentary |
||||
|
Payables were $0.2 million higher due to higher accrued expenditure at year-end resulting from vessel apprehension and disposal late in the financial year. |
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null
This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Payables were $0.2 million higher due to higher accrued expenditure at year-end resulting from vessel apprehension and disposal late in the financial year.
Administered Cash Flow Statement
|
Australian Fisheries Management Authority |
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|---|---|---|---|---|
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ADMINISTERED CASH FLOW STATEMENT |
||||
|
for the period ended 30 June 2019 |
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|
2019 |
2018 |
2019 Original Budget |
||
|
Notes |
$’000 |
$’000 |
$'000 |
|
|
OPERATING ACTIVITIES |
||||
|
Cash received |
||||
|
Fees |
15 |
16 |
- |
|
|
Fines |
9 |
6 |
- |
|
|
Net GST received |
43 |
12 |
- |
|
|
Total cash received |
67 |
34 |
- |
|
|
Cash used |
||||
|
Suppliers |
501 |
1,079 |
5,506 |
|
|
Total cash used |
501 |
1,079 |
5,506 |
|
|
Net cash flows from/(used by) operating activities |
(434) |
(1,045) |
(5,506) |
|
|
Cash from Official Public Account |
||||
|
Appropriations |
457 |
1,071 |
5,506 |
|
|
457 |
1,071 |
5,506 |
||
|
Cash to Official Public Account for: |
||||
|
Appropriations |
(23) |
(26) |
- |
|
|
Cash and cash equivalents at the end of the reporting period |
- |
- |
- |
|
This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
Cash used by operating activities are lower than budget as a result of lower supplier expenditure as explained under the Administered Statement of Comprehensive Income.
Overview
|
Australian Fisheries Management Authority |
|---|
|
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
|
for the period ended 30 June 2019 |
|
Overview |
|
Objectives of AFMA |
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The Australian Fisheries Management Authority (AFMA) is an Australian Government controlled entity. It is a not-for-profit entity. The objectives of AFMA are to pursue the implementation of efficient and cost effective fisheries management consistent with the principles of ecologically sustainable development and maximising the net economic returns for the Australian community from the management of Australian fisheries for which the Commonwealth has legislative responsibilities. AFMA has a single outcome: Ecologically sustainable and economically efficient Commonwealth fisheries, through understanding and monitoring Australia's marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of illegal foreign fishing. All of the financial information contained in these financial statements were incurred in pursuit of this outcome. The net cost of outcome delivery for 2018-19 was $38,160,000 (2017-18 was $36,364,000). The continued existence of AFMA in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for AFMA's administration and programs. The activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by AFMA in its own right. Administered activities involve the management or oversight by AFMA, on behalf of the Government, of items controlled or incurred by the Government. |
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Administered activities for AFMA involve the caretaking and disposal of illegal foreign fishing vessels. |
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Basis of Preparation of the Financial Statements |
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The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013. The Financial Statements have been prepared in accordance with: |
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(a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and |
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(b) Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements 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 the 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. |
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Australian Fisheries Management Authority |
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
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for the period ended 30 June 2019 |
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Overview (continued) |
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Future Accounting Standards The following new, amending standards or interpretations were issued by the AASB prior to the sign-off date. All other new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have material effect, and are not expected to have a material effect on AFMA's financial statements. AFMA expects to apply AASB 16 Leases from 1 July 2019. AASB 16 requires a lessee to recognise assets and liabilites for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments. AASB 16 requires enhanced disclosure for both lessees and lessors to improve information disclosed about an entity's exposure to leases. AFMA expects to apply AASB 15 Revenue from Contracts with Customers from 1 July 2019. AASB 15 contains a single model that applies to contracts with customers and two approaches to recognising revenue: at a point in time or over time. The model features a contract-based five-step analysis of transactions to determine whether, how much and when revenue is recognised. AFMA expects to apply AASB 1058 Income of Not-for-Profit Entities from 1 July 2019. AASB 1058 replaces the income recognition requirements relating to private sector not-for-profit (NFP) entities, as well as the majority of income recognition requirements relating to public sector NFP entities previously reflected in AASB 1004 Contributions. |
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Taxation |
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AFMA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). |
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Revenues, expenses and assets and liabilities are recognised net of GST except: |
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(a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and |
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(b) for receivables and payables. |
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Reporting of Administered Activities |
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Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the schedules of administered items and related notes. |
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Except where otherwise stated, 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. |
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Administered Cash Transfers to and from the Official Public Account |
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Revenue collected by AFMA for use by the Government rather than AFMA is administered revenue. Collections are transferred to the Official Public Account maintained by the Department of Finance. 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 AFMA on behalf of the Government and reported as such in the statement of cash flows in the schedule of administered items and in the administered reconciliation schedule. Revenue All administered revenues are revenues relating to ordinary activities performed by AFMA on behalf of the Australian Government. As such, administered appropriations are not revenues of AFMA, but AFMA oversees the distribution or expenditure of the funds as directed. Events After the Reporting Period There have been no significant subsequent events after the reporting period that impact on the financial statements for the year ended 30 June 2019. |
Note 1 Financial Performance
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Australian Fisheries Management Authority |
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|---|---|---|
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
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for the period ended 30 June 2019 |
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Financial peformance This section analyses AFMA's financial performance for the year ended 30 June 2019. |
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Note 1.1A Expenses |
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2019 |
2018 |
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|
$’000 |
$’000 |
|
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Note 1.1A Employee benefits |
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Wages and salaries |
15,992 |
16,089 |
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Superannuation: |
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Defined contribution plans |
1,892 |
1,819 |
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Defined benefit plans |
1,027 |
1,111 |
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Leave and other entitlements |
1,953 |
1,611 |
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Total employee benefits |
20,864 |
20,630 |
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Accounting Policy |
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Accounting policies for employee related expenses is contained in the People and relationships section. |
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Note 1.1B: Suppliers |
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Goods and services |
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Research |
3,466 |
3,686 |
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Surveillance and compliance |
1,343 |
1,281 |
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Consultants and contractors |
5,251 |
4,779 |
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Travel and meetings |
2,213 |
1,949 |
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Information technology and communications |
1,477 |
1,388 |
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Training and development |
319 |
362 |
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Building repairs and outgoings |
456 |
361 |
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General administrative |
1,525 |
1,202 |
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Total goods and services |
16,050 |
15,008 |
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Goods supplied |
224 |
199 |
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Services rendered |
15,826 |
14,809 |
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Total goods and services supplied or rendered |
16,050 |
15,008 |
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Other suppliers |
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Operating lease rentals |
2,357 |
2,175 |
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Workers compensation expenses |
116 |
365 |
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Total other suppliers |
2,473 |
2,540 |
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Total suppliers |
18,523 |
17,548 |
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Leasing commitments |
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AFMA leases office accommodation in Canberra, Darwin and Lakes Entrance. From 1 September 2018 AFMA entered into a new Canberra office lease ending on 30 November 2028 with an optional three year extension period. The Darwin lease ended at 30 June 2018 and AFMA is currently in negotiations for extending this arrangement. |
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Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: |
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Within 1 year |
929 |
1,010 |
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Between 1 to 5 years |
4,068 |
70 |
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More than 5 years |
9,315 |
- |
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Total operating lease commitments |
14,312 |
1,080 |
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Note 1.1 Expenses (continued) |
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2019 |
2018 |
|
|
$’000 |
$’000 |
|
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Note 1.1C: Write-Down and Impairment of Assets |
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Asset write-downs and impairments from: |
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Impairment of property, plant and equipment |
30 |
(9) |
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Total write-down and impairment of assets |
30 |
(9) |
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Note 1.1D: Impairment Loss Allowance on Financial Instruments |
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Impairment on trade and other receivables |
11 |
19 |
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Total impairment on financial instruments |
11 |
19 |
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Note 1.2 Own Source Revenue |
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Note 1.2A: Sale of Goods and Rendering of Services |
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Rendering of services |
3,027 |
3,104 |
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Total sale of goods and rendering of services |
3,027 |
3,104 |
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Note 1.2B: Rental Income |
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Operating lease: |
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Sublease - Canberra office |
124 |
536 |
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Sublease - Thursday Island office |
153 |
75 |
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Employee car parking |
44 |
85 |
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Total rental income |
321 |
696 |
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Leasing commitments receivable |
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AFMA in its capacity as a lessor sub-leases office accommodation on Thursday Island. All commitments are GST exclusive. |
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Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows: |
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Within 1 year |
141 |
384 |
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Between 1 to 5 years |
448 |
589 |
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Total sub-lease commitments receivable |
589 |
973 |
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Note 1.2C: Interest |
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Interest |
14 |
38 |
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Total interest |
14 |
38 |
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Note 1.3 Revenue from Government |
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2019 |
2018 |
|
|
$’000 |
$’000 |
|
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Note 1.3A: Revenue from Government |
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Appropriations: |
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Departmental appropriation |
19,908 |
20,049 |
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Special Appropriation (Levies and licensing charges)1 |
13,888 |
14,349 |
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Total revenue from Government |
33,796 |
34,398 |
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1 Special appropriations comprise amounts deposited to Consolidated Revenue for AFMA's levies and licensing charges that were credited to the AFMA Special Account in accordance with s94C of the Fisheries Administration Act 1991. |
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Accounting Policies - Departmental Financial Performance |
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Revenue |
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Revenue from the sale of goods is recognised when: |
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(a) the risks and rewards of ownership have been transferred to the buyer; |
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(b) AFMA retains no managerial involvement or effective control over the goods; |
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(c) the revenue and transaction costs incurred can be reliably measured; and |
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(d) it is probable that the economic benefits associated with the transaction will flow to AFMA. |
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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: |
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(b) the probable economic benefits associated with the transaction will flow to AFMA. |
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The stage of completion of contracts 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. |
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Revenue from Government |
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Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when AFMA 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. |
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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. |
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Resources received free of charge are recorded as either revenue or gains depending on their nature. |
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Leases |
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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. |
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Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. |
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Note 2 Financial Position
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Australian Fisheries Management Authority |
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|---|---|---|
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
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for the period ended 30 June 2019 |
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Financial position This section analyses AFMA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships Section. |
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2019 |
2018 |
|
|
$’000 |
$’000 |
|
|
Note 2.1A: Cash and Cash Equivalents |
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Cash in special accounts |
8,661 |
13,938 |
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Cash on hand or on deposit |
298 |
300 |
|
Total cash and cash equivalents |
8,959 |
14,238 |
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The closing balance of cash in special accounts does not include amounts held in Trust. See Note 4.2 Special Accounts and Note 7.2 Assets held in Trust for more information. |
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Note 2.1B: Trade and Other Receivables |
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Good and services receivables |
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Goods and Services |
595 |
404 |
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Total goods and services receivables |
595 |
404 |
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Appropriations receivables |
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Departmental Capital Budget |
- |
513 |
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Total appropriations receivables |
- |
513 |
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Other receivables |
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|
GST receivable from the Australian Taxation Office |
310 |
316 |
|
Accrued Revenue |
419 |
429 |
|
Total other receivables |
729 |
745 |
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Total trade and other receivables (gross) |
1,324 |
1,662 |
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Less impairment allowance |
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Goods and services |
- |
- |
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Total impairment allowance |
- |
- |
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Total trade and other receivables (net) |
1,324 |
1,662 |
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Credit terms for Goods and Services were within 30 days for 2019 (2018: 30 days) |
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Note 3 Assets and liabilities administered on behalf of the Government
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Australian Fisheries Management Authority |
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|---|---|---|
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NOTES TO THE SCHEDULE OF ADMINISTERED ITEMS |
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for the period ended 30 June 2019 |
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Assets and liabilities administered on behalf of the Government This section analyses assets used to conduct operations and the operating liabilities incurred as a result AFMA 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. Note 3.1 Financial Assets |
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|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Note 3.1A: Cash and Cash Equivalents |
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Cash on hand or on deposit |
- |
- |
|
Total cash and cash equivalents |
- |
- |
|
Note 3.1B: Trade and Other Receivables |
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Fees and charges |
||
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Fees and charges receivable - external parties |
314 |
511 |
|
Total fees and charges receivable |
314 |
511 |
|
Other receivables |
||
|
Appropriation Receivable |
371 |
23 |
|
GST receivable from Australian Taxation Office |
38 |
36 |
|
Total other receivables |
409 |
59 |
|
Total trade and other receivables (gross) |
723 |
570 |
|
Less impairment allowance |
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Fees and charges |
(290) |
(275) |
|
Total impairment allowance account |
(290) |
(275) |
|
Total trade and other receivables (net) |
433 |
295 |
|
Receivables are expected to be recovered within 12 months. |
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Receivables were aged as follows |
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Not overdue |
400 |
59 |
|
Overdue by: |
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61 to 90 days |
2 |
- |
|
More than 90 days |
321 |
511 |
|
Total receivables (gross) |
723 |
570 |
|
Impairment allowance aged as follows |
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Overdue by: |
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|
More than 90 days |
(290) |
(275) |
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Total impairment allowance |
(290) |
(275) |
|
Credit terms for goods and services were within 30 days (2018: 30 days). |
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Reconciliation of the Impairment Allowance |
2019 |
2018 |
|
Fee and charges |
Fees and charges |
|
|
$'000 |
$'000 |
|
|
Opening balance |
(275) |
(338) |
|
Amounts written off |
209 |
63 |
|
Movement recognised in net surplus |
(224) |
- |
|
Closing balance |
(290) |
(275) |
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Note 3.2 Administered - Liabilities |
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|
Trade creditors and accruals |
410 |
23 |
|
GST payable |
1 |
34 |
|
Total suppliers |
411 |
57 |
|
Suppliers expected to be settled |
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No more than 12 months |
411 |
57 |
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Total suppliers |
411 |
57 |
Note 4 Funding
|
Australian Fisheries Management Authority |
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|---|---|---|---|---|---|
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NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
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for the period ended 30 June 2019 |
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Funding This section identifies AFMA's funding structure. |
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Note 4.1 Appropriations |
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Note 4.1A: Annual Appropriations ('Recoverable GST exclusive') |
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Annual Appropriations for 2019 |
|
Annual Appropriation |
Adjustments to appropriation |
Total appropriation |
Appropriation applied in 2019 (current and prior years) |
Variance1 |
|
|---|---|---|---|---|---|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
Departmental |
|||||
|
Ordinary annual services |
19,908 |
- |
19,908 |
19,908 |
- |
|
Departmental Capital Budget2 |
781 |
- |
781 |
972 |
(191) |
|
Equity injections |
- |
- |
- |
150 |
(150) |
|
Total departmental |
20,689 |
- |
20,689 |
21,030 |
(341) |
|
Administered |
|||||
|
Ordinary annual services |
|||||
|
Administered items1 |
5,506 |
- |
5,506 |
437 |
5,069 |
|
Total administered |
5,506 |
- |
5,506 |
437 |
5,069 |
|
Notes: |
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|---|---|---|---|---|---|
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1. The variance of $5,069,000 for Administered funds remained as unspent and will be returned to consolidated revenue. In 2018-19 AFMA spent available DCB from current and previous years, including unspent equity injections on the Majura Park office fit-out. 2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts. |
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Annual Appropriations for 2018 |
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|---|---|---|---|---|---|
|
Annual Appropriation |
Adjustments to appropriation |
Total appropriation |
Appropriation applied in 2018 (current and prior years) |
Variance1 |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
Departmental |
|||||
|
Ordinary annual services |
20,049 |
- |
20,049 |
20,049 |
- |
|
Departmental Capital Budget2 |
65 |
- |
465 |
417 |
48 |
|
Total departmental |
20,514 |
- |
20,514 |
20,466 |
48 |
|
Administered |
|||||
|
Ordinary annual services |
|||||
|
Administered items1 |
5,424 |
- |
5,424 |
1,070 |
4,354 |
|
Total administered |
5,424 |
- |
5,424 |
1,070 |
4,354 |
|
Notes: |
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|---|---|---|---|---|---|
|
1. The variance of $4,354,000 for Administered funds remained as unspent and was returned to consolidated revenue. 2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts. |
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|
Note 4.1B: Unspent Annual Appropriations ('Recoverable GST exclusive') |
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|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Departmental |
|||||
|
Cash and Cash equivalents |
298 |
300 |
|||
|
Appropriation Act (No. 1) 2017-18 (Capital Budget - DCB) - Non Operating |
- |
48 |
|||
|
Supply Act (No.1) 2016-2017 (Capital Budget - DCB) - Non Operating |
- |
144 |
|||
|
Appropriation Act (No. 2) 2016-17 - Equity Injections |
- |
150 |
|||
|
Appropriation Act (No. 1) 2015-16 (Capital Budget - DCB) - Non Operating |
- |
171 |
|||
|
Total departmental |
298 |
813 |
|||
|
Administered |
|||||
|
Appropriation Act (No. 1) 2018-19 |
5,069 |
- |
|||
|
Appropriation Act (No. 1) 2017-18 |
- |
4,354 |
|||
|
Total administered |
5,069 |
4,354 |
|||
|
Note 4.1C: Special Appropriations ('Recoverable GST exclusive') |
|||||
|
Authority |
Appropriation applied |
||||
|
2019 |
2018 |
||||
|
Type |
Purpose |
$'000 |
$'000 |
||
|
Fisheries Administration Act 1991; Section 94C, Departmental |
Unlimited Amount |
To provide an appropriation for adjusted levy amounts and other receipts specified by s94C of the Fisheries Administration Act 1991 |
13,888 |
14,349 |
|
|
Total |
13,888 |
14,349 |
|||
|
Note 4.2: Special Accounts |
|||||
|
AFMA Special Account (Departmental)1 |
AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money)2 |
||||
|
2019 |
2018 |
2019 |
2018 |
||
|
$'000 |
$'000 |
$'000 |
$'000 |
||
|
Balance brought forward from previous period |
14,238 |
14,036 |
254 |
- |
|
|
Increases: |
|||||
|
Appropriation for reporting period |
21,030 |
20,466 |
- |
- |
|
|
Special appropriation (Fisheries Administration Act 1991 - Section 94C) |
13,888 |
14,349 |
- |
- |
|
|
Other receipts |
7,532 |
4,856 |
66 |
255 |
|
|
Total increases |
42,450 |
39,671 |
320 |
255 |
|
|
Decreases: |
|||||
|
Employee payments |
(20,472) |
(20,707) |
- |
- |
|
|
Supplier payments |
(21,106) |
(18,299) |
- |
- |
|
|
Purchase of property, plant and equipment |
(6,151) |
(463) |
- |
- |
|
|
Repayments debited from the special account |
- |
- |
(9) |
(1) |
|
|
Total decrease |
(47,729) |
(39,469) |
(9) |
(1) |
|
|
Total balance carried to the next period |
8,959 |
14,238 |
311 |
254 |
|
|
Balance represented by: |
|||||
|
Cash - held in the Official Public Account |
8,661 |
13,938 |
- |
- |
|
|
Cash - held by the agency |
298 |
300 |
311 |
254 |
|
|
Total balance carried to the next period |
8,959 |
14,238 |
311 |
254 |
|
|
1. Appropriation: Public Governance, Performance and Accountability Act 2013; section 80. Establishing Instrument: Fisheries Administration Act 1991; section 94B. Purpose: Payment or discharge of the costs, expenses or other obligations incurred in the performance or exercise of the functions and powers of the Authority. |
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|
2. Appropriation: AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money) Establishing Instrument:Public Governance, Performance and Accountability Act 2013; section 78. Purpose: For amounts that are held on trust or otherwise for the benefit of a person other than the Commonwealth. |
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|
Note 4.3: Regulatory Charging Summary |
|||||
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Amounts applied |
|||||
|
Departmental |
|||||
|
Special appropriations (including special accounts) |
14,830 |
15,042 |
|||
|
Total amounts applied |
14,830 |
15,042 |
|||
|
Expenses |
|||||
|
Departmental |
14,887 |
14,638 |
|||
|
Total expenses |
14,887 |
14,638 |
|||
|
Revenue |
|||||
|
Departmental |
14,830 |
15,042 |
|||
|
Total revenue |
14,830 |
15,042 |
|||
|
Note 4.4: Net Cash Appropriation Arrangements |
|||||
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations |
2,685 |
293 |
|||
|
Plus: depreciation/amortisation expenses previously funded through revenue appropriation1 |
717 |
627 |
|||
|
Total comprehensive deficit as per the Statement of Comprehensive Income |
(3,403) |
(920) |
|||
|
1 Depreciation and amortisation expenditure represented above refers to the government funded portion of AFMA's total depreciation and amortisation charges. In 2018-19 AFMA received $401,000 (2017-18: $364,000) in funding for depreciation and amortisation through cost recovery arrangements. |
|||||
Note 5 People & Relationships
|
Australian Fisheries Management Authority |
||
|---|---|---|
|
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
||
|
for the period ended 30 June 2019 |
||
|
People and relationships This section provides a range of employment and post employment benefits provided to our people and our relationships with other key people. |
|
2019 |
2018 |
|
|---|---|---|
|
$’000 |
$’000 |
|
|
Note 5.1: Employee Provisions |
||
|
Leave |
5,442 |
5,082 |
|
Total employee provisions |
5,442 |
5,082 |
|
Employee provisions are expected to be settled in: |
||
|
No more than 12 months |
4,230 |
3,777 |
|
More than 12 months |
1,212 |
1,305 |
|
Total employee provisions |
5,442 |
5,082 |
Accounting Policies - People and Relationships
Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits wholly settled due within twelve months of end of reporting period are measured at their nominal amounts.
Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave.
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 AFMA's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
Superannuation
Staff of AFMA 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 in the Department of Finance's administered schedules and notes.
AFMA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. AFMA 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 as at year end.
Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, AFMA has made the judgements that have the most significant impact on the amounts recorded in the financial statements with respect to the liability for employee provisions. The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FRR 24.1 (a). This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates.
No accounting assumptions and 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.
Note 5.2: Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. AFMA has determined the key management personnel to be Commissioners and Executive Officers. Key management personnel remuneration is reported in the table below:
|
2019 |
2018 |
|
|---|---|---|
|
$ |
$ |
|
|
Salary and other allowances |
1,243,698 |
1,319,586 |
|
Post-employment benefits |
215,035 |
222,245 |
|
Other long-term benefits |
66,888 |
116,352 |
|
Total key management personnel remuneration expenses¹ |
1,525,621 |
1,658,183 |
|
The total number of key management personnel that are included in the above table are: |
12 |
10 |
¹The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by AFMA.
Note 5.3: Related Party Disclosures
Related party relationships
AFMA is an Australian Government controlled entity. Related parties to AFMA are Key Management Personnel including the Portfolio Minister and Executive, and other Australian Government entities.
Transactions with related parties:
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.
Significant transactions with related parties can include:
the payments of grants or loans;
purchases of goods and services;
asset purchases, sales transfers or leases;
debts forgiven; and
guarantees.
Giving consideration to relationships with related entities, and transactions entered into during the reporting period by AFMA, it has been determined that there are no related party transactions to be separately disclosed.
Note 6 Managing Uncertainty
|
Australian Fisheries Management Authority |
||
|---|---|---|
|
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
||
|
for the period ended 30 June 2019 |
||
|
Managing Uncertainty This section analyses how AFMA manages financial risks within its operating environment. |
||
|
Note 6.1 Contingent Liabilities and Contingent Assets |
||
|
* AFMA entered negotiations with Department of Prime Minister & Cabinet (PM&C) regarding month-to-month rent payable to PM&C for 2018-19. The maximum contingent liability for rent payable by AFMA is $65,000. |
||
|
Note 6.2 Financial Instruments |
|
2019 |
2018 |
||||
|---|---|---|---|---|---|
|
$'000 |
$'000 |
||||
|
Financial Assets under AASB 139 |
|||||
|
Loans and receivables |
|||||
|
Cash and cash equivalents |
14,238 |
||||
|
Receivables for goods and services |
833 |
||||
|
Total loans and receivable |
15,071 |
||||
|
Financial Assets under AASB 9 |
|||||
|
Financial assets at amortised cost |
|||||
|
Cash and cash equivalents |
8,959 |
||||
|
Receivables for goods and services |
1,014 |
||||
|
Total financial assets |
9,973 |
15,071 |
|||
|
Financial Liabilities |
|||||
|
Financial liabilities measured at amortised cost |
|||||
|
Trade creditors |
- |
2 |
|||
|
Total financial liabilities |
- |
2 |
|||
|
Classification of financial assets on the date of initial application of AASB 9. |
|||||
|
AASB 139 original classification |
AASB 9 new classification |
AASB 139 carrying amount at 1 July 2018 |
AASB 9 carrying amount at 1 July 2018 |
||
|
Financial assets |
Note |
$'000 |
$'000 |
||
|
Cash and cash equivalents |
2.1A |
Loans and receivables |
Amortised Cost |
14,238 |
14,238 |
|
Trade receivables |
2.1B |
Loans and receivables |
Amortised Cost |
833 |
833 |
|
Total financial assets |
15,071 |
15,071 |
|||
|
Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9 |
|||||
|
AASB 139 original classification |
Reclassifi-cation |
Remeas-urement |
AASB 9 carrying amount at 1 July 2018 |
||
|
Financial assets at amortised cost |
14,238 |
- |
- |
14,238 |
|
|
Loans and receivables |
833 |
- |
- |
833 |
|
|
Total amortised cost |
15,071 |
- |
- |
15,071 |
|
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Note 6.2B Net Gains or Losses on Financial Assets |
|||||
|
Financial Assets at amortised cost |
|||||
|
Interest revenue |
14 |
38 |
|||
|
Impairmen |
(11) |
(19) |
|||
|
Net gains/(losses) on financial assets at amortised cost |
3 |
19 |
|||
|
Net gains on financial assets |
3 |
19 |
|||
|
The net interest income/(expense) from financial assets not at fair value through profit or loss is $3,000 (2018: $19,000). |
|||||
|
Note 6.3 Administered Financial Instruments |
|||||
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Note 6.3A Categories of Financial Instruments |
|||||
|
Loans and receivables |
|||||
|
Receivables for goods and service |
236 |
||||
|
Total loans and receivables |
236 |
||||
|
Financial Assets under AASB 9 |
|||||
|
Financial assets at amortised cost |
|||||
|
Cash and cash equivalents |
- |
||||
|
Receivables for goods and services |
24 |
||||
|
Total financial assets |
410 |
236 |
|||
|
Financial Liabilities |
|||||
|
Financial liabilities measured at amortised cost |
|||||
|
Trade creditors |
410 |
23 |
|||
|
Total financial liabilities |
410 |
23 |
|||
|
Classification of financial assets on the date of initial application of AASB 9. |
|||||
|
Financial assets class |
Note |
AASB 139 original classification |
AASB 9 new classification |
AASB 139 carrying amount at 1 July 2018 |
AASB 9 carrying amount at 1 July 2018 |
|
$'000 |
$'000 |
||||
|
Cash and cash equivalents |
3.1A |
Loans and receivables |
Amortised Cost |
- |
- |
|
Receivables for goods and services |
3.1B |
Loans and receivables |
Amortised Cost |
236 |
236 |
|
Total financial assets |
236 |
236 |
|||
|
Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9. |
|||||
|
AASB 139 carrying amount at 1 July 2018 |
Reclassifi-cation |
Remeas-urement |
AASB 9 carrying amount at 1 July 2018 |
||
|
$'000 |
$'000 |
$'000 |
$'000 |
||
|
Financial assets at amortised cost |
|||||
|
Loans and receivables |
|||||
|
Loans and receivables |
236 |
- |
- |
236 |
|
|
Total amortised cost |
236 |
- |
- |
236 |
|
|
Note 6.3 Administered Financial Instruments (continued) |
|||||
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Note 6.3B Net Gains or Losses on Financial Assets |
|||||
|
Financial Assets at amortised cost |
|||||
|
Impairment |
224 |
- |
|||
|
Net gains/(losses) on financial assets at amortised cost |
224 |
- |
|||
|
Net gains on financial assets |
224 |
- |
|||
|
The net interest income/(expense) from financial assets not at fair value through profit or loss is ($114,000) (2018: $0). |
|||||
Accounting Policies - Financial Instruments
Financial Assets
Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flowswhere the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.
With the implementation of AASB 9 Financial Instruments for the first time in 2019, AFMA classifies its financial assets in the following categories:
a) financial assets at fair value through profit or loss;
b) financial assets at fair value through other comprehensive income; and
c) financial assets measured at amortised cost.
The classification depends on both AFMA's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when AFMA becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.
Comparatives have not been restated on initial application.
Financial Assets at Amortised Cost
Financial assets included in this category need to meet two criteria:
1. the financial asset is held in order to collect the contractual cash flows; and
2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.
Amortised cost is determined using the effective interest method.
Impairment of Financial Assets
Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12‐month expected credit losses if risk has not increased.
The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.
A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.
Financial Liabilities
Financial liabilities are classified as either financial liabilities 'at fair value through profit or loss' or other financial liabilities. Financial liabilities are recognised and derecognised upon 'trade date'.
Financial Liabilities at Fair Value Through Profit or Loss
Financial liabilities at fair value through profit of loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.
Financial Liabilities at Amortised Cost
Financial libailities, including borrowings, are initially mesaured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective interest basis.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).
Contingent Liabilities and Contingent Assets
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant 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.
Note 6.4 Fair Value Measurement
Note 6.4A Fair Value Measurement
The fair value of financial instruments approximates their carrying amounts.
Note 6.4B Administered - Fair Value Measurement
The fair value of financial instruments approximates their carrying amounts.
Note 7 Other Information
|
Australian Fisheries Management Authority |
||
|---|---|---|
|
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS |
||
|
for the period ended 30 June 2019 |
||
|
Other Information |
||
|
Note 7.1 Aggregate Assets and Liabilities |
||
|
Note 7.1A Aggregate Assets and Liabilities |
||
|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Assets expected to be recovered in: |
||
|
No more than 12 months |
10,695 |
16,135 |
|
More than 12 months |
19,324 |
3,142 |
|
Total assets |
19,324 |
19,277 |
|
Liabilities expected to be recovered in: |
||
|
No more than 12 months |
7,800 |
7,196 |
|
More than 12 months |
3,706 |
1,469 |
|
Total liabilities |
11,506 |
8,665 |
|
Note 7.1B Administered Aggregate Assets and Liabilities |
||
|---|---|---|
|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Assets expected to be recovered in: |
||
|
No more than 12 months |
433 |
295 |
|
Total assets |
433 |
295 |
|
Liabilities expected to be recovered in: |
||
|
No more than 12 months |
411 |
57 |
|
Total liabilities |
411 |
57 |
|
Note 7.2 Assets Held in Trust |
||
|---|---|---|
|
Note 7.2A Assets Held in Trust |
||
|
Monetary assets |
||
|
Financial assets held in trust are also disclosed in Note 4.2: Special Accounts in the table titled AFMA Service for Other Entities and Trust Monies. |
||
|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Cash at bank - monetary asset |
||
|
As at 1 July |
254 |
- |
|
Receipts |
66 |
255 |
|
Payments |
(9) |
(1) |
|
As at 30 June |
311 |
254 |
|
Total monetary assets held in trust |
311 |
254 |
Visit
https://www.transparency.gov.au/annual-reports/australian-fisheries-management-authority/reporting-year/2018-2019-47