Notes to and forming part of the Financial Statements: Notes 1–15
Note 1: Expenses
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Note 1A: Employee Benefits |
|||
|
Wages and salaries |
387 976 |
387 716 |
|
|
Superannuation: |
|||
|
Defined contribution plans |
41 405 |
39 587 |
|
|
Defined benefit plans |
34 891 |
35 693 |
|
|
Leave and other entitlements |
61 310 |
48 348 |
|
|
Separation and redundancies |
3 000 |
4 070 |
|
|
Other employee expenses |
13 924 |
12 380 |
|
|
Total employee benefits |
542 506 |
527 794 |
|
Accounting policy Accounting policies for employee related expenses are contained in Note 6A. |
|---|
|
Note 1B: Suppliers |
|||
|---|---|---|---|
|
Goods and services supplied or rendered |
|||
|
Analytical testing |
11 161 |
11 337 |
|
|
Contractors and consultants |
51 152 |
36 296 |
|
|
IT services |
50 079 |
47 305 |
|
|
Legal expenditure |
5 606 |
4 096 |
|
|
Office equipment, stores and consumables |
7 462 |
7 159 |
|
|
Travel |
25 942 |
24 478 |
|
|
Property operating expense |
21 131 |
18 623 |
|
|
Quarantine services |
4 739 |
3 359 |
|
|
Staff development and recruitment |
8 157 |
7 918 |
|
|
Other |
17 879 |
13 131 |
|
|
Total goods and services supplied or rendered |
203 308 |
173 702 |
|
|
Goods supplied |
46 299 |
16 412 |
|
|
Services rendered |
157 009 |
157 290 |
|
|
Total goods and services supplied or rendered |
203 308 |
173 702 |
|
|
Other suppliers |
|||
|
Operating lease rentals |
55 419 |
52 581 |
|
|
Workers compensation expenses |
5 953 |
11 638 |
|
|
Total other suppliers |
61 372 |
64 219 |
|
|
Total suppliers |
264 680 |
237 921 |
Leasing commitments
The department in its capacity as lessee holds the following significant leasing arrangements:
- Leases of motor vehicles for operations - the department has a Fleet Services Contract with SG Fleet Pty Ltd. An individual fixed rate is defined for each sub-agreement (vehicle). Retention of the vehicle past expiry date may result in a new lease sub-agreement; and
- Leases for office, laboratory or other accommodation – lease contracts for accommodation are subject to adjustment on an annual fixed basis, to market values and for consumer price index (CPI) increases. Renewal options vary from 1 to 5 years.
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Within 1 year |
33 873 |
38 308 |
|
|
Between 1 to 5 years |
78 139 |
95 035 |
|
|
More than 5 years |
12 983 |
6 520 |
|
|
Total leasing commitments |
124 995 |
139 863 |
|
Accounting policy Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. |
|---|
|
Note 1C: Grants |
|||
|---|---|---|---|
|
Public sector: |
|||
|
Australian Government entities (related parties) |
522 |
7 900 |
|
|
State and Territory Governments |
445 |
1 419 |
|
|
Private sector: |
|||
|
Non-profit organisations |
2 078 |
2 733 |
|
|
For profit organisations |
119 |
99 |
|
|
Overseas |
177 |
503 |
|
|
Total grants |
3 341 |
12 654 |
|
Note 1D: Impairment Loss Allowance on Financial Instruments |
|||
|---|---|---|---|
|
Impairment on financial instruments |
1 692 |
4 320 |
|
|
Total impairment loss allowance on financial instruments |
1 692 |
4 320 |
|
Note 1E: Write-Down and Impairment of Other Assets |
|||
|---|---|---|---|
|
Impairment of intangibles |
1 414 |
654 |
|
|
Impairment on inventories |
165 |
0 |
|
|
Impairment of leasehold improvements |
50 |
0 |
|
|
Write-off of property, plant and equipment |
17 |
406 |
|
|
Total write-down and impairment of other assets |
1 646 |
1 060 |
|
Note 1F: Other Expenses |
|||
|---|---|---|---|
|
Remission of fees |
1 941 |
3 297 |
|
|
Official Development Assistance |
93 |
212 |
|
|
Loss from asset sales: |
|||
|
Carrying value of assets sold |
35 |
0 |
|
|
Proceeds from sale |
( 33) |
0 |
|
|
Total other expenses |
2 036 |
3 509 |
Note 2: Income
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Own-Source Revenue |
|||
|
Note 2A: Sale of Goods and Rendering of Services |
|||
|
Rendering of services |
409 364 |
401 297 |
|
|
Sale of goods |
7 |
9 |
|
|
Total sale of goods and rendering of services |
409 371 |
401 306 |
|
Accounting policy Revenue from the sale of goods is recognised when:
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred as at 30 June bear to the estimated total costs of the transaction. Rendering of services revenue includes the collection of fees for regulatory charging under the Export Control Act 1982 and the Biosecurity Act 2015. Regulatory charging disclosure is included at Note 15. |
|---|
|
Note 2B: Interest |
|||
|---|---|---|---|
|
Deposits |
419 |
422 |
|
|
Penalties |
0 |
345 |
|
|
Total interest |
419 |
767 |
|
Accounting policy Interest revenue is recognised using the effective interest method. |
|---|
|
Note 2C: Other Revenue |
|||
|---|---|---|---|
|
Resources received free of charge - Mickleham Post Entry Quarantine Facility |
13 827 |
9 691 |
|
|
Levies |
10 471 |
10 427 |
|
|
State contributions |
1 751 |
1 765 |
|
|
Sub-lease rental |
856 |
1 041 |
|
|
Resources received free of charge - airport accommodation |
1 154 |
1 155 |
|
|
Resources received free of charge - ANAO fees |
570 |
570 |
|
|
Other |
1 771 |
2 327 |
|
|
Total other revenue |
30 400 |
26 976 |
|
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 determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements or as contributions by owners. |
|---|
|
Gains |
|||
|---|---|---|---|
|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
Note 2D: Other Gains |
|||
|
Gain from asset sales: |
|||
|
Proceeds from sale |
0 |
37 |
|
|
Carrying value of assets sold |
0 |
( 23) |
|
|
Gain on derecognition of makegood: |
|||
|
Carrying value of liability derecognised |
40 |
274 |
|
|
Carrying value of asset derecognised |
0 |
( 15) |
|
|
Other |
270 |
672 |
|
|
Total other gains |
310 |
945 |
|
Accounting policy Sale of Assets Gains from the disposal of assets are recognised when control of the asset has passed to the buyer. Other Gains Gains may be realised or unrealised and are recognised on a net basis. 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 department gains control of the appropriation. Appropriations receivable are recognised at their nominal amounts. |
|---|
Note 3: Financial Assets
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Note 3A: Cash and Cash Equivalents |
|||
|
Cash in special accounts |
35 288 |
30 087 |
|
|
Cash on hand or on deposit |
3 259 |
1 982 |
|
|
Total cash and cash equivalents |
38 547 |
32 069 |
|
Note 3B: Trade and Other Receivables |
|||
|---|---|---|---|
|
Goods and services receivables in connection with |
|||
|
Goods and services |
35 897 |
27 157 |
|
|
Total goods and services receivables |
35 897 |
27 157 |
|
|
Appropriations receivables |
|||
|
Operating |
65 805 |
49 112 |
|
|
Equity injection |
520 |
16 390 |
|
|
Total appropriations receivables |
66 325 |
65 502 |
|
|
Other receivables |
|||
|
Statutory receivables |
3 298 |
4 607 |
|
|
Interest |
197 |
194 |
|
|
Other |
3 383 |
1 753 |
|
|
Total other receivables |
6 878 |
6 554 |
|
|
Total trade and other receivables (gross) |
109 100 |
99 213 |
|
|
Less impairment loss allowance |
( 3 969) |
( 1 118) |
|
|
Total impairment loss allowance |
( 3 969) |
( 1 118) |
|
|
Total trade and other receivables (net) |
105 131 |
98 095 |
During the 2019 financial year, credit terms for goods and services were within 30 days (2018: 30 days).
|
Accounting policy Financial Assets Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest and are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance. |
|---|
Note 4: Non–Financial Assets
|
Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles |
||||||
|---|---|---|---|---|---|---|
|
Land1 |
Buildings1 |
Leasehold Improvements1 |
Other property, plant & equipment1 |
Computer Software2 |
Total |
|
|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
|
|
As at 1 July 2018 |
||||||
|
Gross book value |
2 205 |
1 629 |
50 008 |
38 814 |
124 070 |
216 726 |
|
Work in progress |
0 |
0 |
3 353 |
3 854 |
44 428 |
51 635 |
|
Accumulated depreciation, amortisation and impairment |
0 |
( 69) |
( 10 952) |
( 9 924) |
( 69 734) |
( 90 679) |
|
Total as at 1 July 2018 |
2 205 |
1 560 |
42 409 |
32 744 |
98 764 |
177 682 |
|
Additions |
||||||
|
By purchase |
0 |
3 039 |
209 |
6 134 |
6 850 |
16 232 |
|
Internally developed |
0 |
0 |
0 |
0 |
25 031 |
25 031 |
|
Impairments recognised in the net cost of services |
0 |
0 |
( 50) |
0 |
( 1 414) |
( 1 464) |
|
Reclassification |
0 |
0 |
223 |
2 351 |
( 2 574) |
0 |
|
Depreciation and amortisation expense |
0 |
( 99) |
( 8 790) |
( 9 728) |
( 13 165) |
( 31 782) |
|
Disposals |
||||||
|
By write-off |
0 |
0 |
0 |
( 17) |
0 |
( 17) |
|
By sale |
0 |
0 |
0 |
( 35) |
0 |
( 35) |
|
Total as at 30 June 2019 |
2 205 |
4 500 |
34 001 |
31 449 |
113 492 |
185 647 |
|
Total as at 30 June 2019 represented by: |
||||||
|
Gross book value |
2 205 |
4 668 |
52 154 |
48 313 |
149 361 |
256 701 |
|
Work in progress |
0 |
0 |
1 392 |
2 768 |
46 399 |
50 559 |
|
Accumulated depreciation, amortisation and impairment |
0 |
( 168) |
( 19 545) |
( 19 632) |
( 82 268) |
( 121 613) |
|
Total as at 30 June 2019 |
2 205 |
4 500 |
34 001 |
31 449 |
113 492 |
185 647 |
1 These classes of assets are held at fair value.
2 The carrying amount of computer software included $22 618 968 purchased software and $90 873 289 internally developed software.
No significant items of property, plant and equipment are expected to be sold or disposed of within the next 12 months.
|
Accounting policy Assets are recorded at cost on acquisition except as stated. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring. Asset Recognition Threshold Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position. The department applied the following asset recognition thresholds: |
||
|---|---|---|
|
2019 |
2018 |
|
|
Land and buildings |
$0 |
$0 |
|
Leasehold improvements |
$150 000 |
$150 000 |
|
Property, plant and equipment |
$5 000 individual purchases/ $50 000 group purchases |
$5 000 individual purchases/ $50 000 group purchases |
|
Internally developed software |
$200 000 |
$200 000 |
|
Purchased software |
$150 000 |
$150 000 |
|
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to restoration provisions in property leases taken up by the department where an obligation exists to restore the property to its original condition. These costs are included in the value of the department’s leasehold improvements with a corresponding provision for the restoration recognised. The department’s intangible assets comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Revaluations and fair value measurement All property, plant and equipment assets are measured at fair value. Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values at the reporting date. Independent revaluations for property, plant and equipment are conducted every three years, however further valuations are undertaken dependent upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus or deficit. Revaluation decrements for a class of assets are recognised in the surplus or deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. |
||
|
Recurring and non-recurring fair value measurements – valuation processes The department engaged the service of Australian Valuation Solutions (AVS) to conduct a detailed external valuation of non-financial assets (excluding intangibles) at 30 June 2017 and has relied upon those outcomes to establish carrying amounts. No valuation has been conducted for financial year 2018-19. Depreciation and amortisation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the department using, in all cases, the straight-line method of depreciation. Intangible assets are amortised on a straight-line basis over their anticipated useful life. Depreciation rates (useful lives) and residual values are reviewed at each reporting date and necessary adjustments are recognised as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives. |
||
|
2019 |
2018 |
|
|
Buildings |
40-50 years |
40-50 years |
|
Leasehold improvements |
Lesser of useful life or lease term |
Lesser of useful life or lease term |
|
Property, plant and equipment |
3 to 15 years |
3 to 15 years |
|
Internally developed software |
5 to 10 years |
5 to 10 years |
|
Purchased software |
3 years |
3 years |
|
The department’s depreciation charges for 2018-19 were comprised of:
|
||
|
Impairment All non-financial 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. The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken to be its depreciated replacement cost. An impairment loss of $1 464 326 (2018: $654 375) was recognised in the net cost of services. Inventories All Inventory is held for distribution and valued at cost, adjusted for any loss of service potential. Costs incurred in bringing each item of inventory to its present location and condition are recorded at purchase cost and managed on a first-in-first-out basis. |
||
Note 5: Payables
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Note 5A: Suppliers |
|||
|
Trade creditors and accruals |
31 201 |
25 963 |
|
|
Operating lease payable |
14 433 |
16 485 |
|
|
Total suppliers |
45 634 |
42 448 |
Settlement is usually made within 30 days.
|
Note 5B: Other Payables |
|||
|---|---|---|---|
|
Salaries and wages |
3 404 |
3 042 |
|
|
Unearned income |
2 315 |
1 248 |
|
|
Statutory payables associated with employees |
2 050 |
1 844 |
|
|
Separations and redundancies |
931 |
1 227 |
|
|
Superannuation |
580 |
569 |
|
|
Other |
3 252 |
2 399 |
|
|
Total other payables |
12 532 |
10 329 |
|
Accounting policy Separation and Redundancy Provision is made for separation and redundancy benefit payments. The department recognises a provision for termination when it has developed a detailed formal plan for the terminations, identified the positions affected, assessed expressions of interest from employees and made formal offers. Separation and redundancy is reported as a payable when an agreement has been reached with the relevant employee. Superannuation The majority of the department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap). However, some staff have elected to be members of other private superannuation funds. 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. The department makes employer contributions to the defined benefits superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The department accounts for the contributions as if they were contributions to defined contribution schemes. The liability for superannuation recognised at 30 June 2019 represents outstanding contributions. |
|---|
Note 6: Provisions
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Note 6A: Employee Provisions |
|||
|
Leave |
169 916 |
150 962 |
|
|
Total employee provisions |
169 916 |
150 962 |
|
Accounting policy Liabilities for ‘short-term employee benefits’ and termination benefits due within twelve months of the end of the reporting period are measured at their nominal amounts. 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 apply at the time the leave is taken, including the department’s employer superannuation contribution rates to the extent that leave is likely to be taken during service rather than paid out on termination. The liability for long service leave has been determined by reference to the work of an actuary as at |
|---|
|
Note 6B: Reconciliation Other Provisions |
|||
|---|---|---|---|
|
Provision for lease incentives |
Provision for restoration |
Total |
|
|
$'000 |
$’000 |
$’000 |
|
|
As at 1 July 2018 |
9 567 |
3 892 |
13 459 |
|
Amounts used |
( 1 631) |
( 40) |
( 1 671) |
|
Unwinding of discount or change in discount rate |
0 |
58 |
58 |
|
Total as at 30 June 2019 |
7 936 |
3 910 |
11 846 |
|
Accounting policy Provision for Restoration The department currently recognises 45 (2018: 46) provisions for premises requiring restoration to their original condition at the conclusion of the lease. The provisions reflect the present value of this obligation. |
|---|
Note 7: Aggregate Assets and Liabilities
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Assets expected to be recovered in: |
|||
|
No more than 12 months |
167 798 |
155 383 |
|
|
More than 12 months |
187 936 |
180 060 |
|
|
Total assets |
355 734 |
335 443 |
|
|
Liabilities expected to be settled in: |
|||
|
No more than 12 months |
98 154 |
85 762 |
|
|
More than 12 months |
141 774 |
131 436 |
|
|
Total liabilities |
239 928 |
217 198 |
Note 8: Restructuring
|
2019 |
2018 |
|
|---|---|---|
|
National Water Infrastructure Development Fund |
||
|
$'000 |
$'000 |
|
|
FUNCTIONS RELINQUISHED |
||
|
Assets relinquished |
||
|
Trade and other receivables |
0 |
305 |
|
Total assets relinquished |
0 |
305 |
|
Liabilities relinquished |
||
|
Employee provisions |
0 |
305 |
|
Total liabilities relinquished |
0 |
305 |
|
Net liabilities relinquished |
0 |
0 |
1. The National Water Infrastructure Development Fund function was relinquished to the Department of Infrastructure, Transport, Cities and Regional Development (formerly known as the Department of Infrastructure and Regional Development) during 2017-18 as a result of the Prime Minister's announcement on 19 December 2017.
2. No administered assets and liabilities were transferred.
3. There were no Administrative Arrangement Order changes related to the department during 2018-19.
Note 9: Contingent Assets and Liabilities
Quantifiable Contingencies
There were no quantifiable contingent assets or contingent liabilities at 30 June 2019 (2018: Nil).
Unquantifiable Contingencies
As at 30 June 2019, the department had a number of legal claims lodged against it for damages and costs. The department is responding to these claims in accordance with its obligations under the Legal Services Directions 2017. It is not possible to estimate the amount of any eventual payments in relation to these matters.
As at 30 June 2019, the department was investigating issues with billing of certain cost recovery charges. The department is in the process of assessing any potential liability and determining what, if any, additional action may be required.
Proceedings were commenced in the Federal Court of Australia seeking compensation for alleged losses due to the temporary suspension of exports of live animals to Indonesia that was put in place on 7 June 2011. The matter has been fully heard and judgment is expected in 2019. The quantum of any damages sought has not been quantified. The Department of Finance, which has responsibility for Comcover (the Australian Government’s general insurance fund), has assumed insurance responsibility for the potential claims under its insurance arrangements with the department.
|
Accounting policy Contingent liabilities and contingent assets are not recognised in the statement of financial position 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 10: Key Management Personnel Remuneration
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the department, directly or indirectly. This includes those personnel who have temporarily performed the relevant roles for a period of eight weeks or more. The department has determined the key management personnel to be all Ministers and Assistant Ministers of the department, the Secretary and members of the Executive Management Committee. Key management personnel remuneration is reported in the table below:
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Short-term employee benefits |
3 258 |
3 618 |
|
|
Post-employment benefits |
515 |
583 |
|
|
Other long-term benefits |
81 |
40 |
|
|
Total key management personnel remuneration expenses1 |
3 854 |
4 241 |
The total number of key management personnel that are included in the above table is 13, being four substantive officers for the full year, six substantive officers for part of the year, one officer that acted for part of the year and was later substantive for part of the year, and two acting officers for part of the year (2018: 11, being eight substantive officers for the full year, one substantive officer for part of the year and two acting officers).
1 The above key management personnel remuneration excludes the remuneration and other benefits of the Ministers and Assistant Ministers of the department. The Minister's and Assistant Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the department.
Note 11: Related Party Disclosures
Related party relationships
The department is an Australian Government controlled entity. Related parties to the department are Key Management Personnel, including the Ministers and Assistant Ministers of the department, the River Murray Operation (RMO) and Living Murray Initiative (LMI) joint operations as well as 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. 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, the department has determined there are no related party transactions that require separate disclosure (2018: Nil).
Note 12: Financial Instruments
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Note 12A: Categories of Financial Instruments |
|||
|
Financial Assets under AASB 139 |
|||
|
Held-to-maturity investments |
|||
|
Negotiable securities - certificates of deposit |
16 500 |
||
|
Total held-to-maturity investments |
16 500 |
||
|
Loans and Receivables |
|||
|
Cash and cash equivalents |
32 069 |
||
|
Trade and other receivables (net) |
27 986 |
||
|
Total loans and receivables |
60 055 |
||
|
Financial Assets under AASB 9 |
|||
|
Financial assets at amortised cost 1,2 |
|||
|
Negotiable securities - certificates of deposit |
17 500 |
||
|
Cash and cash equivalents |
38 547 |
||
|
Trade and other receivables (net) |
35 508 |
||
|
Total financial assets at amortised cost |
91 555 |
||
|
Total financial assets |
91 555 |
76 555 |
|
|
Financial Liabilities |
|||
|
Financial liabilities measured at amortised cost |
|||
|
Trade creditors |
31 201 |
25 963 |
|
|
Total financial liabilities measured at amortised cost |
31 201 |
25 963 |
|
|
Total financial liabilities |
31 201 |
25 963 |
At 30 June 2019, there are 11 (2018: 11) certificates of deposit maturing at different dates within the next 12 months. Interest rates range from 2.20% to 2.77% (2018: 2.51% to 2.72%), payable upon maturity.
1. The net income from interest revenue for financial assets at amortised cost in 2019 is $419 000 (2018: $767 000).
2. The impairment recognised in the comprehensive income statement for financial assets at amortised cost in 2019 is $1 692 000 (2018: $4 320 000).
|
Classification of financial assets on the date of initial application of AASB 9 |
|||||
|---|---|---|---|---|---|
|
Financial assets class |
Notes |
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 |
||||
|
Negotiable securities - certificates of deposit |
Held-to-maturity |
Amortised Cost |
16 500 |
16 500 |
|
|
Cash and cash equivalents |
3A |
Loans and receivable |
Amortised Cost |
32 069 |
32 069 |
|
Trade receivables |
3B |
Loans and receivable |
Amortised Cost |
27 986 |
26 837 |
|
Total financial assets |
76 555 |
75 406 |
|||
|
Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9 |
|||||
|
AASB 139 carrying amount at 1 July 2018 |
Re-classification |
Re-measurement |
AASB 9 carrying amount at 1 July 2018 |
||
|
$'000 |
$'000 |
$'000 |
$'000 |
||
|
Financial assets at amortised cost |
|||||
|
Held to maturity |
|||||
|
Negotiable securities - certificates of deposit |
16 500 |
0 |
0 |
16 500 |
|
|
Loans and receivable |
|||||
|
Cash and cash equivalents |
32 069 |
0 |
0 |
32 069 |
|
|
Trade receivables |
27 986 |
0 |
( 1 149) |
26 837 |
|
|
Total amortised cost |
76 555 |
0 |
( 1 149) |
75 406 |
|
These tables reflect the transition from AASB 139 to AASB 9 whereby classifications of financial assets and the impairment methodology have changed from the ‘incurred loss’ model to the ‘expected credit loss’ model, which means that a loss event will no longer need to occur before an impairment allowance is recognised.
|
Accounting policy Financial assets With the implementation of AASB 9 Financial Instruments for the first time in 2019, the department now 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 the department’s business model for managing the financial assets and contractual cash flow characteristics of the item on initial recognition. Financial assets are recognised when the department becomes a party to the contract and, as a consequence, has 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 a 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. Effective Interest Method Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost. Financial Assets at Fair Value Through Other Comprehensive Income (FVOCI) Financial assets measured at fair value through other comprehensive income are held with the objective of both collecting contractual cash flows and selling the financial assets and the cash flows meet the SPPI test. Any gains or losses as a result of fair value measurement or the recognition of an impairment loss allowance is recognised in other comprehensive income. Financial Assets at Fair Value Through Profit or Loss (FVTPL) Financial assets are classified as financial assets at fair value through profit or loss where the financial assets either doesn’t meet the criteria of financial assets held at amortised cost or at FVOCI (i.e. mandatorily held at FVTPL) or may be designated. Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset. Impairment of Financial Assets Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the simplified 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 the risk has not increased. The department has used the simplified approach for trade, contract and lease receivables. 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’. All of the department’s financial liabilities are categorised as other financial liabilities. |
|
Other Financial Liabilities Financial liabilities, including borrowings, are initially measured 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). All payables are expected to be settled within 12 months except where indicated. |
Note 13: Appropriations
|
Note 13A: Annual and Unspent Appropriations ('Recoverable GST exclusive') |
||
|---|---|---|
|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Ordinary annual services |
||
|
Opening unspent appropriation balance |
51 094 |
55 214 |
|
Annual Appropriation - Operating1 |
391 812 |
381 223 |
|
Annual Appropriation - Capital budget1,2 |
9 824 |
11 736 |
|
PGPA Act Section 74 receipts1 |
13 123 |
24 383 |
|
PGPA Act Section 75 transfers |
0 |
( 546) |
|
Prior year PGPA Act section 75 transfers |
0 |
( 305) |
|
Total appropriation available |
465 853 |
471 705 |
|
Appropriation applied (current and prior years)1 |
( 396 789) |
( 420 611) |
|
Closing unspent appropriation balance |
69 064 |
51 094 |
|
Balance comprises appropriations as follows: |
||
|
Appropriation Act (No. 1) 2017-18 |
0 |
39 684 |
|
Appropriation Act (No. 3) 2017-18 |
0 |
5 126 |
|
Appropriation Act (No. 5) 2017-18 |
0 |
4 302 |
|
Appropriation Act (No. 1) 2018-19 |
56 667 |
0 |
|
Appropriation Act (No. 3) 2018-19 |
9 138 |
0 |
|
Cash on hand - Appropriation Act (No.1) 2017-18 |
0 |
1 982 |
|
Cash on hand - Appropriation Act (No.1) 2018-19 |
3 259 |
0 |
|
Total unspent appropriation - ordinary annual services |
69 064 |
51 094 |
|
1The variance between amounts appropriated in 2019 and appropriation applied is $17 970 000. |
||
|
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. |
||
|
Other Services |
||
|
Opening unspent appropriation balance |
16 390 |
11 244 |
|
Annual Appropriation - Equity injection3 |
7 273 |
17 017 |
|
Prior years Appropriation Acts repealed |
( 2 959) |
( 240) |
|
Total appropriation available |
20 704 |
28 021 |
|
Appropriation applied (current and prior years)3 |
( 20 184) |
( 11 631) |
|
Closing unspent appropriation balance |
520 |
16 390 |
|
Balance comprises appropriations as follows: |
||
|
Appropriation Act (No. 2) 2015-16 |
0 |
203 |
|
Appropriation Act (No. 4) 2015-16 |
0 |
2 756 |
|
Appropriation Act (No. 4) 2016-17 |
0 |
1 711 |
|
Appropriation Act (No. 2) 2017-18 |
0 |
9 637 |
|
Appropriation Act (No. 4) 2017-18 |
0 |
2 083 |
|
Appropriation Act (No. 2) 2018-19 |
520 |
0 |
|
Total unspent appropriation - other services |
520 |
16 390 |
|
3The variance between amounts appropriated in 2019 and appropriation applied is ($12 911 000). |
||
|
Total unspent appropriation |
69 584 |
67 484 |
|
Note 13B: Special Appropriations ('Recoverable GST exclusive') |
||
|---|---|---|
|
Authority |
Appropriation applied |
|
|
2019 |
2018 |
|
|
$'000 |
$'000 |
|
|
Public Governance, Performance and Accountability Act 2013, s. 58 (National Residue Survey) |
( 17 500) |
( 16 500) |
|
Total special appropriations applied |
( 17 500) |
( 16 500) |
Note 14: Special Accounts
|
Australian Quarantine and Inspection Service Special Account (AQIS)1 |
National Residue Survey Account (NRS)2 |
|||
|---|---|---|---|---|
|
2019 |
2018 |
2019 |
2018 |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
|
|
Balance brought forward from previous period |
28 974 |
24 401 |
1 113 |
1 237 |
|
Increases: |
||||
|
Appropriations credited to special account |
130 281 |
139 094 |
5 |
3 |
|
Other increases |
396 996 |
381 127 |
28 470 |
27 570 |
|
Total increases |
527 277 |
520 221 |
28 475 |
27 573 |
|
Available for payments |
556 251 |
544 622 |
29 588 |
28 810 |
|
Departmental decreases |
||||
|
Payments made to employees |
( 302 073) |
( 302 921) |
( 1 771) |
( 1 862) |
|
Payments made to other |
( 219 969) |
( 212 727) |
( 26 738) |
( 25 835) |
|
Total departmental decreases |
( 522 042) |
( 515 648) |
( 28 509) |
( 27 697) |
|
Total decreases |
( 522 042) |
( 515 648) |
( 28 509) |
( 27 697) |
|
Total balance carried to the next period |
34 209 |
28 974 |
1 079 |
1 113 |
|
Balance made up of: |
||||
|
Cash held in the Official Public Account |
30 521 |
26 369 |
1 079 |
1 113 |
|
Cash held in entity bank accounts |
3 688 |
2 605 |
0 |
0 |
|
Total balance carried to the next period |
34 209 |
28 974 |
1 079 |
1 113 |
1 Appropriation: Public Governance, Performance and Accountability Act 2013 section 78.
Establishing Instrument: Financial Management and Accountability Determination 2010/11 – Australian Quarantine and Inspection Service Special Account Establishment 2010.
Purpose: For expenditure relating to the provision of quarantine and inspection services and payment of moneys to the Consolidated Revenue Fund as agreed to by the relevant Minister and Minister for Finance.
2 Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.
Establishing Instrument: National Residue Survey Administration Act 1992 section 6 (1).
Purpose: For the purposes of conducting national residue surveys and to provide for collection of the NRS levy imposed by various acts.
Note 15: Regulatory Charging Summary
|
2019 |
2018 |
||
|---|---|---|---|
|
$'000 |
$'000 |
||
|
Amounts applied |
|||
|
Departmental |
|||
|
Annual appropriations |
80 507 |
80 284 |
|
|
Own source revenue |
410 653 |
392 027 |
|
|
Total amounts applied |
491 160 |
472 311 |
|
|
Expenses |
|||
|
Departmental |
494 430 |
470 894 |
|
|
Total expenses |
494 430 |
470 894 |
|
|
Revenue |
|||
|
Departmental |
411 219 |
392 416 |
|
|
Total revenue |
411 219 |
392 416 |
|
|
Amounts written off |
|||
|
Departmental |
2 061 |
3 980 |
|
|
Total amounts written off |
2 061 |
3 980 |
Competitive Neutrality
The department operates a number of cost recovery arrangements across the Biosecurity, Export Certification and other business services areas in accordance with the Australian Government Charging Framework and are not for profit activities. The department is not subject to competitive neutrality arrangements for this reason.
The following are the department’s Regulatory Charging Activities:
|
|
|---|---|
|
|
|
|
|
|
|
|
|
|
|
|
Documentation (Cost Recovery Implementation Statements) for the above activities is available at:
- Water Efficiency Labelling and Standards Scheme www.waterrating.gov.au/about/review-evaluation/cost-recovery-impact-statement
- Other regulatory charging activities www.agriculture.gov.au/fees/cost-recovery/
Industry Rebates and Program Results
Biosecurity, export certification and quota management, and National Residue Survey (NRS) cost recovered activities are maintained on a program basis with many of the programs aligning to an industry sector. The management of each program, including the establishment of the level and structure of fees and charges, is conducted in consultation with an Industry Consultative Committee (ICC), as applicable, and the Department of Finance.
Where fees and charges collected for a cost recovered program exceed its costs during a financial year, the excess revenue is reported in the total comprehensive income (loss) for the period. The amount of excess revenue is transferred from retained earnings into an industry reserve
Visit
https://www.transparency.gov.au/annual-reports/department-agriculture/reporting-year/2018-2019-33