Audited financial statements
Statement of comprehensive income
STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2019 |
||||
Notes |
2019 |
Budget 2019 |
2018 |
|
$ |
$ |
$ |
||
NET COST OF SERVICE |
||||
Expenses |
||||
Employee benefits |
2,167,030 |
3,152,000 |
2,837,401 |
|
Suppliers |
4,139,791 |
3,383,000 |
3,049,514 |
|
Depreciation and amortisation |
29,403 |
22,000 |
43,241 |
|
Write-down and impairment of property, plant and equipment |
– |
– |
1,000 |
|
Total expenses |
6,336,223 |
6,557,000 |
5,931,156 |
|
Own-Source Income |
||||
Own-Source revenue |
||||
Rendering of services |
2,133,556 |
1,470,000 |
1,262,486 |
|
Royalties |
37,837 |
50,000 |
44,385 |
|
Other revenue |
41,549 |
40,000 |
40,305 |
|
Total own-source revenue |
2,212,942 |
1,560,000 |
1,347,176 |
|
Net cost of services |
(4,123,281) |
(4,997,000) |
(4,583,980) |
|
Revenue from Government - Departmental appropriations |
4,590,000 |
4,975,000 |
5,002,000 |
|
Surplus/(Deficit) attributable to the Australian Government |
466,719 |
(22,000) |
418,020 |
|
OTHER COMPREHENSIVE INCOME |
||||
Items not subject to subsequent reclassification to net cost of services |
||||
Changes in asset revaluation surplus |
– |
– |
716,771 |
|
Total other comprehensive income |
– |
– |
716,771 |
|
Total comprehensive income/(loss) attributable to the Australian Government |
466,719 |
(22,000) |
1,134,791 |
The above statement should be read in conjunction with the accompanying notes.
Budget to actual variance commentary: see Note 7 for major variance explanations.
Statement of financial position
STATEMENT OF FINANCIAL POSITION as at 30 June 2019 |
||||
Notes |
2019 |
Budget 2019 |
2018 |
|
$ |
$ |
$ |
||
ASSETS |
||||
Financial assets |
||||
Cash and cash equivalents |
1,882,684 |
1,058,000 |
936,856 |
|
Trade and other receivables |
529,894 |
282,000 |
329,663 |
|
Total financial assets |
2,412,578 |
1,340,000 |
1,266,519 |
|
Non-financial assets |
||||
Furniture and office equipment |
95,620 |
76,000 |
25,150 |
|
Library collection |
755,791 |
– |
766,800 |
|
Intangibles |
– |
17,000 |
2,104 |
|
Prepayments |
78,151 |
132,000 |
69,928 |
|
Total non-financial assets |
929,562 |
225,000 |
863,982 |
|
Total assets |
3,342,140 |
1,565,000 |
2,130,501 |
|
LIABILITIES |
||||
Payables |
||||
Suppliers |
352,989 |
544,000 |
175,630 |
|
Other payables |
985,771 |
671,000 |
458,210 |
|
Total payables |
1,338,760 |
1,215,000 |
633,840 |
|
Provisions |
||||
Other provisions |
– |
16,000 |
– |
|
Total provisions |
– |
16,000 |
– |
|
Total liabilities |
1,338,760 |
1,231,000 |
633,840 |
|
Net assets |
2,003,380 |
334,000 |
1,496,661 |
|
EQUITY |
||||
Contributed equity |
1,225,294 |
1,225,000 |
1,185,294 |
|
Reserves |
861,254 |
144,000 |
861,254 |
|
Accumulated Deficit |
(83,168) |
(1,035,000) |
(549,887) |
|
Total equity |
2,003,380 |
334,000 |
1,496,661 |
The above statement should be read in conjunction with the accompanying notes.
Budget to actual variance commentary: see Note 7 for major variance explanations.
Statement of changes in equity
STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2019 |
||||||||||||
Retained earnings |
Asset revaluation surplus |
Contributed equity/capital |
Total equity |
|||||||||
Budget |
Budget |
Budget |
Budget |
|||||||||
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
|
Balance carried forward from previous period |
(549,887) |
(1,013,000) |
(967,907) |
861,254 |
144,000 |
144,483 |
1,185,294 |
1,203,000 |
1,180,294 |
1,496,661 |
334,000 |
356,870 |
Opening balance |
(549,887) |
(1,013,000) |
(967,907) |
861,254 |
144,000 |
144,483 |
1,185,294 |
1,203,000 |
1,180,294 |
1,496,661 |
334,000 |
356,870 |
Comprehensive income |
||||||||||||
Surplus (Deficit) for the period |
466,719 |
(22,000) |
418,020 |
– |
– |
– |
– |
– |
– |
466,719 |
(22,000) |
418,020 |
Other comprehensive income |
– |
– |
– |
– |
– |
716,771 |
– |
– |
– |
– |
– |
716,771 |
Total comprehensive income |
466,719 |
(22,000) |
418,020 |
– |
– |
716,771 |
– |
– |
– |
466,719 |
(22,000) |
1,134,791 |
Transactions with owners |
||||||||||||
Contributions by owners |
||||||||||||
Departmental capital budget1 |
– |
– |
– |
– |
– |
– |
40,000 |
22,000 |
5,000 |
40,000 |
22,000 |
5,000 |
Total transactions with owners |
– |
– |
– |
– |
– |
– |
40,000 |
22,000 |
5,000 |
40,000 |
22,000 |
5,000 |
Closing balance as at 30 June |
(83,168) |
(1,035,000) |
(549,887) |
861,254 |
144,000 |
861,254 |
1,225,294 |
1,225,000 |
1,185,294 |
2,003,380 |
334,000 |
1,496,661 |
The above statement should be read in conjunction with the accompanying notes.
Budget to actual variance commentary: see Note 7 for major variance explanations.
1. Amounts appropriated which are designated as 'Departmental capital budgets' are recognised directly in transactions with owners in that year.
Cash flow statement
CASH FLOW STATEMENT for the period ended 30 June 2019 |
|||
Budget |
|||
2019 |
2019 |
2018 |
|
$ |
$ |
$ |
|
OPERATING ACTIVITIES |
|||
Cash received |
|||
Appropriations |
4,590,000 |
4,975,000 |
5,002,000 |
Rendering of services |
2,427,003 |
1,470,000 |
1,058,066 |
Net GST received |
110,711 |
– |
141,147 |
Other |
37,837 |
50,000 |
40,819 |
Total cash received |
7,165,551 |
6,495,000 |
6,242,032 |
Cash used |
|||
Employees |
2,167,030 |
3,152,000 |
2,837,401 |
Suppliers |
3,895,223 |
3,343,000 |
3,749,265 |
Section 74 receipts transferred to Official Public Account |
110,711 |
– |
– |
Total cash used |
6,172,963 |
6,495,000 |
6,586,666 |
Net cash from operating activities |
992,588 |
– |
(344,634) |
INVESTING ACTIVITIES |
|||
Cash used |
|||
Purchase of property, plant and equipment and intangibles |
86,760 |
22,000 |
4,927 |
Total cash used |
86,760 |
22,000 |
4,927 |
Net cash used by investing activities |
(86,760) |
(22,000) |
(4,927) |
FINANCING ACTIVITIES |
|||
Cash received |
|||
Contributed equity |
40,000 |
22,000 |
5,000 |
Total cash received |
40,000 |
22,000 |
5,000 |
Net cash from financing activities |
40,000 |
22,000 |
5,000 |
Net Increase (Decrease) in cash held |
945,828 |
– |
(344,561) |
Cash and cash equivalents at the beginning of the reporting period |
936,856 |
1,058,000 |
1,281,427 |
Cash and cash equivalents at the end of the reporting period |
1,882,684 |
1,058,000 |
936,856 |
The above statement should be read in conjunction with the accompanying notes.
Budget to actual variance commentary: see Note 7 for major variance explanations.
Notes to and forming part of the financial statements
Overview
Objectives of the Australian Institute of Criminology
The Australian Institute of Criminology (AIC) is an Australian Government controlled entity. The objective of the AIC is to inform crime and justice policy and practice in Australia by undertaking, funding and disseminating policy relevant research of national significance; and through the generation of a crime and justice evidence base and national knowledge centre.
The continued existence of the AIC in its present form is dependent on Government policy and on continuing funding by Parliament. The AIC’s activities contributing toward this outcome are classified as departmental. Departmental activities involve the use of assets and income controlled, or liabilities and expenses incurred by the AIC in its own right.
Basis of Preparation of the Financial Statements
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 and notes have been prepared in accordance with:
a) Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and
b) Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board 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 which are carried at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest dollar.
Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard.
Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
Taxation
The AIC is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST).
Revenues, expenses and assets are recognised net of GST except:
a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
b) for receivables and payables.
Comparative Figures
Comparative figures for 2017–18 reflect the figures reported in the AIC’s 2017–18 financial statements.
Comparative figures have been adjusted to conform with changes in presentation to these financial statements where required.
Contingent assets and liabilities
The AIC did not have any quantifiable contingencies to report for the financial year ended 30 June 2019 (2017–18: Nil).
Events after the reporting period
No subsequent events to report after the balance date.
Note 1.1: Expenses
Note 1.1A: Employee benefits |
||
---|---|---|
2019 |
2018 |
|
$ |
$ |
|
Wages and salaries |
1,593,417 |
2,175,266 |
Superannuation |
||
Defined contribution plans |
176,928 |
226,463 |
Defined benefit plans |
143,074 |
177,307 |
Leave and other entitlements |
253,611 |
254,616 |
Separation and redundancies |
– |
3,749 |
Total employee benefits |
2,167,030 |
2,837,401 |
AIC staff were primarily employed by ACIC for the duration of the year and seconded to the AIC to resource AIC’s ongoing operations. The ACIC initially met all the employee expenses, and claimed reimbursement from the AIC on a monthly basis. Therefore, whilst the employee benefits costs are reflected in the AIC statement of comprehensive income, the AIC does not hold any liabilities or provision in respect to employees in the statement of financial position.
Accounting Policy
Superannuation
The ACIC staff seconded to AIC were members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap) or other superannuation funds held outside the Australian Government.
The PSSap is a defined contribution scheme. The CSS and PSS are defined benefit schemes for the Australian Government. The liability for defined benefit schemes is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance as an administered item.
The ACIC makes employer contributions to the employees' defined benefit superannuation schemes in respect to the staff seconded to AIC at rates determined by an actuary to be sufficient to meet the current cost to the Government. The ACIC and AIC accounts for the contributions as if they were contributions to defined contribution plans.
Note 1.1B: Suppliers |
||
---|---|---|
2019 |
2018 |
|
$ |
$ |
|
Goods and services |
||
Contractors and consultants1 |
1,384,047 |
782,737 |
Research services |
426,775 |
471,903 |
Travel |
156,493 |
95,504 |
Information technology |
112,881 |
99,171 |
Property operating expenses2 |
– |
274,999 |
Office rent2 |
– |
218,748 |
Outsourced corporate expenses3 |
1,644,621 |
545,121 |
Conferences and meetings |
276,412 |
378,663 |
Other |
138,562 |
182,668 |
Total goods and services |
4,139,791 |
3,049,514 |
1 Contractor and consultants have increased due to the increased workload resulting from Proceeds of Crime Account funding.
2 Property and Office Rent expenses relate to the AIC's lease in Griffith which terminated in December 2017.
3 Outsourced Coporate Expenses for 2018-19 includes all costs services provided by the ACIC to the AIC. The agreement is service based, not input based, as such this line item now incorporates costs that may have previously been charged under Employee Benefits.
Leasing commitments |
||
---|---|---|
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: |
||
2019 |
2018 |
|
$ |
$ |
|
Within 1 year |
– |
238,779 |
Between 1 to 5 years |
– |
– |
More than 5 years |
– |
– |
Total operating lease commitments 1 |
– |
238,779 |
1. Total operating lease commitments excludes GST.
Accounting Policy
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased asset. The AIC leased office space in Griffith until December 2017.
Note 1.2: Own source revenue
Own-Source Revenue Note 1.2A: Rendering of Services |
||
---|---|---|
2019 |
2018 |
|
$ |
$ |
|
Proceeds of crime and memoranda of understanding |
1,298,702 |
– |
Research contract income |
326,673 |
435,651 |
Conference income |
282,212 |
458,697 |
Other services income |
225,969 |
368,138 |
Total rendering of services |
2,133,556 |
1,262,486 |
Accounting Policy
Rendering of Services
Revenue from rendering of services is recognised by reference to the stage of completion of services at the reporting date. The revenue is recognised when:
a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
b) the probable economic benefits associated with the transaction will flow to AIC.
The stage of completion of services at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Note 1.2B: Other Revenue |
||
---|---|---|
2019 |
2018 |
|
$ |
$ |
|
Resources received free of charge - audit services |
39,000 |
39,000 |
Other |
2,549 |
1,305 |
Total other revenue |
41,549 |
40,305 |
Accounting Policy
Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when a fair value can be reliably measured and the services or transferred assets would have been purchased if they had not been provided free of charge. Use of those resources is recognised as appropriate as an expense.
Note 1.2C: Revenue from Government |
||
---|---|---|
2019 |
2018 |
|
$ |
$ |
|
Appropriations |
||
Departmental appropriations |
4,590,000 |
5,002,000 |
Total revenue from Government |
4,590,000 |
5,002,000 |
Accounting Policy
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AIC 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.
Note 2.1: Financial assets
Notes |
2019 |
2018 |
|
$ |
$ |
||
Note 2.1A: Trade and other receivables |
|||
Debtors |
370,382 |
208,808 |
|
Accrued Revenue |
– |
110,984 |
|
Appropriation Receivable |
110,711 |
– |
|
GST receivable |
48,801 |
– |
|
Royalties receivable |
– |
9,871 |
|
Total trade and other receivables |
529,894 |
329,663 |
Accounting Policy
Trade and Other Receivables
Trade receivables and other receivables are held for the purpose of collecting the contractual cash flows of principal and interest at market interest rates. They are subsequently measured at amortised cost using the effective interest method, adjusted for any loss allowance.
Note 2.2: Non-financial assets
Note 2.2A: Reconciliation of the Opening and Closing Balances of Non-Financial Assets |
||||
---|---|---|---|---|
Furniture and office equipment |
Library collection |
Intangibles |
Total |
|
$ |
$ |
$ |
$ |
|
As at 1 July 2018 |
||||
Gross book value |
25,150 |
766,800 |
70,450 |
862,400 |
Accumulated depreciation, amortisation and impairment |
– |
– |
(68,346) |
(68,346) |
Total as at 1 July 2018 |
25,150 |
766,800 |
2,104 |
794,054 |
Additions |
||||
Purchase |
82,433 |
4,327 |
– |
86,760 |
Depreciation/amortisation |
(11,962) |
(15,336) |
(2,104) |
(29,403) |
Total as at 30 June 2019 |
95,620 |
755,791 |
– |
851,411 |
Total as at 30 June 2019 represented by |
||||
Gross book value |
107,583 |
771,127 |
70,450 |
949,160 |
Accumulated depreciation, amortisation and impairment |
(11,963) |
(15,336) |
(70,450) |
(97,749) |
Total as at 30 June 2019 |
95,620 |
755,791 |
– |
851,411 |
Revaluations of non-financial assets
All revaluations were conducted in accordance with the revaluation policy stated in note 2.2A. The last full valuation was carried out in 2017-18.
Accounting Policy
Asset Recognition
Furniture and office equipment costing greater than $5,000, leasehold improvements costing greater than $25,000, intangible assets purchased externally costing greater than $5,000 and intangible assets purchased and modified or developed internally costing greater than $20,000 are capitalised. All library items are accumulated as a single asset on a financial year basis and recognised irrespective of the value. Items costing less than these thresholds are expensed in the year of acquisition.
Revaluations
Following initial recognition at cost, furniture and office equipment are carried at fair value. Carrying values of the assets are reviewed every third year to determine if an independent valuation is required. The regularity of independent valuations depends on the volatility of movements in the market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that is previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset.
Depreciation
Depreciable furniture and office equipment assets are written-off to their estimated residual values over their estimated useful life using the straight-line method of depreciation. Leasehold improvements are depreciated over the life of the lease term. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following expected useful lives, unless an individual asset is assessed as having a different useful life.
2019 |
2018 |
|
Furniture and Office Equipment |
3-10 years |
3-10 years |
Intangibles - Software purchased |
3-5 years |
3-5 years |
Library |
50 years |
6 years1 |
1 This was 15% diminishing value with a 5% residual. The depreciation rate was changed to avoid significant valuation adjustments.
Intangibles
Intangibles assets comprise internally developed software and externally purchased software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Software licences with the renewable term ending beyond 30 June 2019 are treated as prepayments at the time of purchase and expensed over the term of the prepayment.
Impairment
All assets were assessed for impairment at 30 June 2019. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
Derecognition
An item of furniture and office equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, the AIC has made assumptions or estimates in measuring the fair value of the assets that have the most significant impact on the amounts recorded in the financial statements. The fair value of the AIC’s furniture and office equipment has been taken to be the market value or current replacement costs as determined by an independent valuer.
Note 2.3: Payables
2019 |
2018 |
|
$ |
$ |
|
Note 2.3A: Suppliers |
||
Trade creditors and accruals |
352,989 |
175,630 |
Note 2.3B: Other payables |
||
Unearned income |
948,183 |
444,691 |
GST payable |
1,156 |
13,519 |
Other |
36,432 |
– |
Total other payables |
985,771 |
458,210 |
Accounting Policy
Financial Liabilities
Supplier and other payables are classified as ‘other financial liabilities’ and 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). Supplier and other payables are derecognised on payment.
Note 2.4: Special accounts
Notes |
2019 |
2018 |
|
$ |
$ |
||
Note 2.4: Criminology Research Special Account |
|||
Balance brought forward from previous period |
936,856 |
1,281,417 |
|
Total increases |
3,304,277 |
1,240,032 |
|
Available for payments |
4,241,133 |
2,521,449 |
|
Total decreases |
(2,358,449) |
(1,584,593) |
|
Total balance carried to the next period |
1,882,684 |
936,856 |
|
Balance represented by: |
|||
Cash held in entity bank accounts |
192,020 |
60,291 |
|
Cash held in the Official Public Account |
1,690,664 |
876,565 |
|
Total balance carried to the next period |
1,882,684 |
936,856 |
Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.
The Criminology Research Special Account is established under Section 46 of the Criminology Research Act 1971 as amended through the Financial Framework Legislative Amendment Act 2010 with effect from 1 July 2011.
Purpose: Conduct criminology research to promote justice, crime reduction and communicating results to Commonwealth, State & Territory, including administering programs to award grants, engage specialists for research and publication of that research.
Note 3.1: Appropriations
Note 3.1A: Annual Appropriation (‘Recoverable GST exclusive’) |
|||||
---|---|---|---|---|---|
Annual Appropriations for 2019 |
|||||
Annual Appropriation |
Adjustments to appropriation |
Total appropriation |
Appropriation applied in 2019 (current and prior years) |
Variance1 |
|
$ |
$ |
$ |
$ |
$ |
|
Departmental |
|||||
Ordinary annual services |
4,590,000 |
– |
4,590,000 |
(4,590,000) |
– |
Capital Budgets |
22,000 |
– |
22,000 |
(40,000) |
(18,000) |
Total departmental |
4,612,000 |
– |
4,612,000 |
(4,630,000) |
(18,000) |
Annual Appropriations for 2018 |
|||||
Annual Appropriation |
Adjustments to appropriation |
Total appropriation |
Appropriation applied in 2018 (current and prior years) |
Variance |
|
$ |
$ |
$ |
$ |
$ |
|
Departmental |
|||||
Ordinary annual services |
5,002,000 |
– |
5,002,000 |
(5,002,000) |
– |
Capital Budget2 |
23,000 |
– |
23,000 |
(5,000) |
18,000 |
Total departmental |
5,025,000 |
– |
5,025,000 |
(5,007,000) |
18,000 |
1. The AIC has no ordinary annual appropriations variance to report. The unspent capital appropriation from 2017-18 was carried forward and was fully spent in 2018-19.
2. Departmental Capital Budgets are appropriated through the Appropriation Act (No. 1). They form part of ordinary annual services, and are not separately identified in the Appropriation Act.
Unspent Annual Appropriations (‘Recoverable GST excusive’)
The AIC has no undrawn and unspent ordinary annual appropriation as at 30 June 2019 (2017-18: nil).
The AIC has no undrawn and unspent ordinary annual appropriation as at 30 June 2019, and has also drawn $18,000 Capital Budgets not drawn as at 30 June 2018.
Notes |
2019 |
2018 |
|
$ |
$ |
||
Note 3.1B: Unspent Annual Appropriations ('Recoverable GST exclusive') |
|||
Departmental |
|||
Appropriation Act (No.1) 2018-191 |
110,711 |
– |
|
Appropriation Act (No.1) 2018-19 - cash held at bank1 |
192,020 |
– |
|
Total departmental |
302,731 |
– |
1. The Appropriation Act (No.1) balance for 2018-19 represents unused appropriation for the year.
Note 4.1: Key management personnel remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity. The AIC has determined the key management personnel positions to be the Director and the Deputy Director1. The key management personnel remuneration excludes the remuneration and other benefits of the Minister. The Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the AIC. Key management personnel remuneration (excluding the Director: refer note below) is reported in the table below:
2019 |
2018 |
|
$ |
$ |
|
Note 4.1: Key Management Personnel Remuneration |
||
Short-term employee benefits |
191,594 |
193,288 |
Post-employment benefits |
29,406 |
29,133 |
Other long-term employee benefits |
4,824 |
19,620 |
Total key management personnel remuneration expenses1 |
225,824 |
242,041 |
Total number of key management personnel1 |
1 |
1 |
1. Includes officers substantively holding or acting for a period exceeding three months in a key management personnel position, for the 2018-19 financial year the AIC had one key management personnel (2017-18: one). The ACIC CEO is also the Director of the Australian Institute of Criminology (AIC). The full cost of the CEO is included in ACIC financial statements, and therefore not disclosed here. The AIC makes a contribution towards the overheads of the ACIC, including executive oversight, which is shown in "Suppliers" (Refer Note 1.1B).
Note 4.2: Related party disclosure
Related party relationships:
The AIC is an Australian Government controlled entity. Related parties of the AIC comprise the Ministers responsible for the AIC, other Cabinet Ministers, other Australian Government entities, the key management personnel of the AIC, and parties related to the AIC’s key management personnel (including close family members and entities controlled by themselves, their close family members or jointly with close family members).
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. These transactions have not been separately disclosed in this note.
Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions requiring disclosure.
Note 5.1: Financial instruments
2019 |
2018 |
||
Notes |
$ |
$ |
|
Note 5.1A: Categories of Financial Instruments |
|||
Financial Assets measured at amortised cost Loans and receivables |
|||
Cash and cash equivalents |
1,882,684 |
936,856 |
|
Trade and other receivables |
370,382 |
329,663 |
|
Total financial assets |
2,253,066 |
1,266,519 |
|
Financial Liabilities Financial liabilities measured at amortised cost |
|||
Trade creditors and accruals |
352,989 |
175,630 |
|
Total financial liabilities |
352,989 |
175,630 |
Changes with the implementation of AASB 9
AIC was reporting financial assets at amortised cost under the AASB 139 as loans and receivables. However, under the AASB 9 it has been reclassified as financial assets at amortised cost. AASB 9 did not have any impact on financial liability disclosure.
Based on the receivable management history and the current debt management process, the AIC assessed its risk of impairment is nil or immaterial. Hence, nil impairment is reported in the financial assets.
Note 6.1 : Aggregate assets and liabilities
2019 |
2018 |
|
$ |
$ |
|
Note 6.1: Aggregate Assets and Liabilities |
||
Assets expected to be recovered in: |
||
No more than 12 months |
2,490,729 |
1,336,447 |
More than 12 months |
851,411 |
794,054 |
Total Assets |
3,342,140 |
2,130,501 |
Assets expected to be settled in: |
||
No more than 12 months |
1,338,760 |
633,840 |
More than 12 months |
– |
– |
Total Liabilities |
1,338,760 |
633,840 |
Note 7: Budgetary variance reporting
The following are explanations of events that have impacted on the AIC’s operations and activities for the year. Budget numbers are sourced from the AIC’s PBS for 2018-19 and are provided in the primary statements. Budgeted numbers are not audited.
Major variances are those deemed relevant or most significant to an analysis of the AIC’s performance by management, not focussed merely on numerical differences between the actual and budgeted amounts.
When providing explanations, the AIC has identified the financial impact in relation to those key aggregates relevant to the AIC’s performance. Users should be aware that there will be consequential impacts on related statements i.e. a variance in the Statement of Comprehensive Income is likely to have consequential impacts in the Statement of Financial Position and the Cash Flow Statement.
Explanation for major variances |
Affected line items (and statement) |
Proceeds of Crime Account Research The AIC secured funding from the Proceeds of Crime Account (POCA) for research which was achieved post budget. This funding has had a significant effect on the AIC's financial statements. Providing a significant new revenue stream ($1.3m), influencing some supplier expenses, consultants and contractors in particular, and substantially increasing cash at bank, unearned revenue in other payables and creditors. |
Expenses: Supplier expenses (Statement of Comprehensive Income) Own Source Revenue: Rendering of Services (Statement of Comprehensive Income) Financial Assets: Cash and Cash Equivalents (Statement of Financial Position) Financial Liabilities: Supplier Payables, Other Payables (Statement of Financial Position) |
Shared Services Subsequent to the budget the AIC implemented a new agreement for corporate services including accommodation with the ACIC. The new agreement results in corporate services being charged to the AIC on a cost recovery basis rather than the AIC paying for specific positions. This has shifted expenditure from employee benefits to outsourced corporate expenses. |
Expenses: Employee Benefits, Supplier Expenses (Statement of Comprehensive Income) |
Appropriation Adjustment The AIC appropriation was reduced by $0.385m for savings achieved as part of the machinery of government changes. |
Revenue from Government (Statement of Comprehensive Income) |
Appropriation Receivable The AIC recognised $0.111m appropriation receivable for unspent appropriation as a result of GST refunded on deemed appropriation revenue. |
Financial Asset: Trade and Other Receivables (Statement of Financial Position) |
Visit
https://www.transparency.gov.au/annual-reports/australian-institute-criminology/reporting-year/2018-2019-36