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Department of Communications and the Arts Annual Report 2018–19

Primary financial statements

Statement of Comprehensive Income

for the period ended 30 June 2019

	Notes	2019 $'000	2018 $'000
NET COST OF SERVICES
Expenses
Employee benefits	1.1A	73,068	71,021
Suppliers	1.1B	38,753	38,113
Depreciation and amortisation	3.2A	5,227	3,935
Finance costs	1.1C	3	19
Impairment loss allowance on financial instruments	1.1D	7	-
Losses from asset sales	1.1E	129	6,246
Other expenses	1.1F	3,200	5,220
Total expenses		120,387	124,554

Own-Source Income

Own-source revenue
Sales of goods and rendering of services	1.2A	3,625	3,788
Rental income	1.2B	1,991	1,886
Other revenue	1.2C	1,382	1,669
Total own-source revenue		6,998	7,343

Gains
Other gains	1.2D	415	18,675
Total gains		415	18,675
Total own-source income		7,413	26,018
Net cost of services		(112,974)	(98,536)

Revenue from Government	1.2E	107,763	104,179
Surplus/(Deficit) before income tax on continuing operations		(5,211)	5,643

Surplus/(Deficit) after income tax on continuing operations		(5,211)	5,643

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus		-	(392)
Total other comprehensive income/(loss)		-	(392)
Total comprehensive income/(loss)		(5,211)	5,251

The above statement should be read in conjunction with the accompanying notes.

Statement of Financial Position

as at 30 June 2019

	Notes	2019 $'000	2018 $'000
ASSETS
Financial assets
Cash and cash equivalents	3.1A	5,592	4,666
Trade and other receivables	3.1B	19,387	21,195
Total financial assets		24,979	25,861

Non-financial assets
Buildings	3.2A	12,649	13,843
Property, plant and equipment	3.2A	42,618	43,752
Intangibles	3.2A	8,627	6,563
Other non-financial assets	3.2B	4,164	2,370
Total non-financial assets		68,058	66,528
Total assets		93,037	92,389

LIABILITIES
Payables
Suppliers	3.3A	5,523	4,534
Other payables	3.3B	7,492	7,602
Total payables		13,015	12,136

Provisions
Employee provisions	6.1	26,291	25,011
Other provisions	3.4	374	221
Total provisions		26,665	25,232
Total liabilities		39,680	37,368
Net assets		53,357	55,021

EQUITY
Contributed equity		72,849	69,302
Reserves		7,049	7,049
Accumulated deficit		(26,541)	(21,330)
Total equity		53,357	55,021

The above statement should be read in conjunction with the accompanying notes.

Statement of Changes in Equity

for the period ended 30 June 2019

	Retained earnings		Asset revaluation reserve		Contributed equity		Total equity
	2019 $'000	2018 $'000	2019 $'000	2018 $'000	2019 $'000	2018 $'000	2019 $'000	2018 $'000
Opening balance
Balance carried forward from previous period	(21,330)	(26,750)	7,049	7,439	69,302	66,423	55,021	47,112
Adjustment for prior year error	-	(221)	-	-	-	-	-	(221)
Adjusted opening balance	(21,330)	(26,971)	7,049	7,439	69,302	66,423	55,021	46,891

Comprehensive income
Surplus (Deficit) for the period	(5,211)	5,643	-	-	-	-	(5,211)	5,643
Other comprehensive income	-	-	-	(392)	-	-	-	(392)
Total comprehensive income	(5,211)	5,643	-	(392)	-	-	(5,211)	5,251

Transactions with owners
Contributions to owners
Returns of capital - repealed appropriation	-	-	-	-	-	(679)	-	(679)

Contributions by owners
Departmental capital budget	-	-	-	-	3,547	3,558	3,547	3,558
Total transactions with owners	-	-	-	-	3,547	2,879	3,547	2,879
Transfers between equity components	-	(2)	-	2	-	-	-	-
Closing balance as at 30 June	(26,541)	(21,330)	7,049	7,049	72,849	69,302	53,357	55,021

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.

Restructuring of Administrative Arrangements

Net assets assumed from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity (refer Note 8.2).

Cash Flow Statement

for the period ended 30 June 2019

	Notes	2019 $'000	2018 $'000

OPERATING ACTIVITIES
Cash received
Receipts from Government		115,904	116,145
Sales of goods and rendering of services		5,334	5,665
GST received		3,315	2,831
Other		3,179	2,704
Total cash received		127,732	127,345

Cash used
Employees		71,571	68,419
Suppliers		42,697	40,219
Section 74 receipts transferred to Official Public Account		8,706	11,030
Other expenses		3,200	5,121
Total cash used		126,174	124,789
Net cash from operating activities		1,558	2,556

INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment		-	721
Total cash received		-	721

Cash used
Purchase of land and buildings		483	1,807
Purchase of property, plant and equipment		545	5,249
Purchase of intangibles		4,023	504
Total cash used		5,051	7,560
Net cash used by investing activities		(5,051)	(6,839)

FINANCING ACTIVITIES
Cash received
Contributed equity		150	-
Departmental capital budget		4,269	5,551
Total cash received		4,419	5,551
Net cash from financing activities		4,419	5,551
Net increase in cash held		926	1,268
Cash and cash equivalents at the beginning of the reporting period		4,666	3,398
Cash and cash equivalents at the end of the reporting period	3.1A	5,592	4,666

The above statement should be read in conjunction with the accompanying notes.

Administered Schedule of Comprehensive Income

for the period ended 30 June 2019

	Notes	2019 $'000	2018 $'000
NET COST OF SERVICES
Expenses
Suppliers	2.1A	376,205	383,955
Grants	2.1B	249,580	286,702
Depreciation and amortisation	4.2A	10,447	9,822
Impairment loss allowance on financial instruments	2.1C	241	-
Write-down and impairment of other assets	2.1D	-	1,582
Payments to corporate Commonwealth entities	2.1E	1,788,930	1,762,898
Other expenses	2.1F	13,625	13,604
Total expenses		2,439,028	2,458,563

Income
Revenue
Non-taxation revenue
Sale of goods and rendering of services	2.2A	3,628	3,702
Interest	2.2B	353,374	71,862
Dividends	2.2C	42,205	78,472
Rental income	2.2D	1,529	1,529
Other revenue	2.2E	942	1,237
Total non-taxation revenue		401,678	156,802
Total revenue		401,678	156,802

Gains
Other gains	2.2F	5,527	6,406
Total gains		5,527	6,406
Total income		407,205	163,208
Net cost of services		(2,031,823)	(2,295,355)

Deficit		(2,031,823)	(2,295,355)

OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus		(1,841)	(88)
Items subject to subsequent reclassification to net cost of services
Losses on available for sale financial assets		(4,831,145)	(4,915,290)
Total other comprehensive loss		(4,832,986)	(4,915,378)

Total comprehensive loss		(6,864,809)	(7,210,733)

The above statement should be read in conjunction with the accompanying notes.

Administered Schedule of Assets and Liabilities

as at 30 June 2019

	Notes	2019 $'000	2018 $'000
ASSETS
Financial Assets
Cash and cash equivalents	4.1A	98	47
Trade and other receivables	4.1B	13,114,512	5,616,368
Other investments	4.1C	21,672,171	26,448,077
Other financial assets	4.1D	-	19
Total financial assets		34,786,781	32,064,511

Non-financial assets
Buildings	4.2A	55,569	56,377
Property, plant and equipment	4.2A	138,140	148,012
Other non-financial assets	4.2B	2,965	2,917
Total non-financial assets		196,674	207,306
Total assets administered on behalf of Government		34,983,455	32,271,817

LIABILITIES
Payables
Suppliers	4.3A	330,215	340,653
Grants	4.3B	13,255	29,632
Other payables	4.3C	17,206	19,061
Total payables		360,676	389,346
Provisions
Other provisions	4.4A	-	1,173
Total provisions		-	1,173

Total liabilities administered on behalf of Government		360,676	390,519

Net assets		34,622,779	31,881,298

The above statement should be read in conjunction with the accompanying notes.

Administered Reconciliation Schedule

for the period ended 30 June 2019

	2019 $'000	2018 $'000

Opening assets less liabilities as at 1 July	31,881,298	29,246,663
Adjustment for change in accounting policies¹	(1,600)	-
Adjusted opening assets less liabilities	31,879,698	29,246,663

Net cost of contribution by services
Income	407,205	163,208
Expenses
Payments to entities other than corporate Commonwealth entities	(650,098)	(695,665)
Payments to corporate Commonwealth entities	(1,788,930)	(1,762,898)

Other comprehensive income
Revaluations transferred to (from) reserves	(4,831,145)	(4,915,290)
Asset revaluation reserve	(1,841)	(88)

Transfers (to) from the Australian Government

Appropriation transfers from Official Public Account (OPA)
Administered assets and liabilities appropriations
Asset and liabilities appropriations for payments to corporate Commonwealth entities	55,240	2,075,156
Annual appropriations
Payments to entities other than corporate Commonwealth entities	406,080	427,696
Payments to corporate Commonwealth entities	1,788,930	1,762,898
Loans to corporate Commonwealth entities	7,522,000	5,531,000
Special appropriations (unlimited)
Payments to entities other than corporate Commonwealth entities	47	70
Funds provided from related entity to special account	253,887	227,220
Appropriation transfers to OPA
Transfers to OPA	(418,294)	(178,672)
Closing assets less liabilities as at 30 June	34,622,779	31,881,298

The above statement should be read in conjunction with the accompanying notes.

¹Adjustment for changes in accounting policies reflect the adoption of AASB 9 Financial Instruments on 1 July 2018. As permitted by AASB 9, comparative information has not been restated. For more information refer to Note 4.1B.

Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by the entity for use by the Government rather than the entity is administered revenue. Collections are transferred to the Official Public Account (OPA) 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 the entity on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Administered Cash Flow Statement

for the period ended 30 June 2019

	Notes	2019 $'000	2018 $'000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of services		3,554	3,729
Interest		352,442	71,021
Dividends		42,205	78,472
GST received		54,158	56,311
Other		902	1,317
Total cash received		453,261	210,850

Cash used
Grants		287,674	319,424
Suppliers		409,095	402,165
Payments to corporate Commonwealth entities		1,788,930	1,762,898
Other		16,320	14,791
Total cash used		2,502,019	2,499,278
Net cash used by operating activities		(2,048,758)	(2,288,428)

INVESTING ACTIVITIES
Cash received
Repayments of advances and loans from corporate Commonwealth entities		20,000	20,000
Proceeds from return of equity by corporate Commonwealth entities		-	5,000
Total cash received		20,000	25,000

Cash used
Loans to corporate Commonwealth entities		7,522,000	5,531,000
Corporate Commonwealth entity investments		55,240	2,075,156
Purchase of buildings		1,608	1,636
Total cash used		7,578,848	7,607,792
Net cash used by investing activities		(7,558,848)	(7,582,792)

FINANCING ACTIVITIES
Cash received
Funds provided from related entity for special account		253,887	227,220
Total cash received		253,887	227,220
Net cash from financing activities		253,887	227,220

Net decrease in cash held		(9,353,719)	(9,644,000)

Cash and cash equivalents at the beginning of period		47	26,711
Cash from Official Public Account
Appropriations		406,080	427,696
Corporate Commonwealth entities appropriations		1,844,170	3,838,054
Loans to corporate Commonwealth entities		7,522,000	5,531,000
Special appropriations		47	70
GST drawdowns from Finance		53,925	55,533
Total cash from official public account		9,826,222	9,852,353

Cash to Official Public Account
Interest received		352,442	71,021
Dividends		42,205	78,472
GST repayments to Finance		54,158	56,345
Other - receipts		23,647	29,179
Total cash to official public account		472,452	235,017

Cash and cash equivalents at the end of the reporting period	4.1 A	98	47

The above statement should be read in conjunction with the accompanying notes.

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Department of Communications and the Arts Annual Report 2018–19

Primary financial statements

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Cash Flow Statement

Administered Schedule of Comprehensive Income

Administered Schedule of Assets and Liabilities

Administered Reconciliation Schedule

Administered Cash Flow Statement

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