Department Financial Statements
Statement of Comprehensive Income
2019 |
2018 |
Original Budget1 |
||||
Notes |
$'000 |
$'000 |
$'000 |
|||
NET COST OF SERVICES |
||||||
EXPENSES |
||||||
Employee benefits |
240,909 |
226,285 |
231,766 |
|||
Suppliers |
158,712 |
137,271 |
140,188 |
|||
Grants |
- |
137 |
- |
|||
Depreciation and amortisation |
44,489 |
42,671 |
40,991 |
|||
Finance costs |
1 |
2 |
- |
|||
Impairment loss allowance on financial instruments |
3 |
2 |
- |
|||
Write-down and impairment of other assets |
711 |
1,989 |
- |
|||
Losses from asset sales |
34 |
- |
- |
|||
Total expenses |
444,859 |
408,357 |
412,945 |
|||
OWN-SOURCE INCOME |
||||||
Own-source revenue |
||||||
Sale of goods and rendering of services2 |
55,678 |
52,500 |
52,431 |
|||
Rental income |
825 |
1,552 |
898 |
|||
Resources received free of charge - external audit |
408 |
400 |
410 |
|||
Total own-source revenue |
56,911 |
54,452 |
53,739 |
|||
Gains |
||||||
Gain on sale of assets |
- |
256 |
- |
|||
Other gains |
560 |
1,678 |
- |
|||
Total gains |
560 |
1,934 |
- |
|||
Total own-source income |
57,471 |
56,386 |
53,739 |
|||
Net cost of services |
(387,388) |
(351,971) |
(359,206) |
|||
Revenue from Government |
334,956 |
310,830 |
318,215 |
|||
Deficit attributable to the Australian Government |
(52,432) |
(41,141) |
(40,991) |
|||
OTHER COMPREHENSIVE INCOME |
||||||
Items not subject to subsequent reclassification to net cost of services |
||||||
Changes in asset revaluation surplus |
158 |
- |
- |
|||
Total other comprehensive income |
158 |
- |
- |
|||
Total comprehensive loss attributable to the Australian Government |
(52,274) |
(41,141) |
(40,991) |
The above statement should be read in conjunction with the accompanying notes.
- The Department’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period was the 2018–19 Portfolio Budget Statements. The budgeted financial statements have not been audited.
- The original budget amount for sale of goods and rendering of services was split to reflect the amount relating to sublease rental income disclosed as rental income.
Statement of Financial Position
2019 |
2018 |
Original Budget1 |
||||
Notes |
$'000 |
$'000 |
$'000 |
|||
ASSETS |
||||||
Financial Assets |
||||||
Cash and cash equivalents |
6,673 |
2,396 |
2,000 |
|||
Trade and other receivables |
129,290 |
144,650 |
153,209 |
|||
Accrued revenue |
1,480 |
2,582 |
898 |
|||
Total financial assets |
137,443 |
149,628 |
156,107 |
|||
Non-financial Assets |
||||||
Leasehold improvements |
29,280 |
28,957 |
23,640 |
|||
Infrastructure, plant and equipment |
27,072 |
30,466 |
28,856 |
|||
Intangibles |
130,460 |
113,238 |
131,887 |
|||
Prepayments |
22,639 |
21,843 |
17,162 |
|||
Total non-financial assets |
209,451 |
194,504 |
201,545 |
|||
Total assets |
346,894 |
344,132 |
357,652 |
|||
LIABILITIES |
||||||
Payables |
||||||
Suppliers |
31,029 |
38,937 |
45,041 |
|||
Other payables |
14,457 |
17,357 |
22,175 |
|||
Total payables |
45,486 |
56,294 |
67,216 |
|||
Provisions |
||||||
Employee provisions |
84,253 |
74,998 |
73,799 |
|||
Other provisions |
63 |
93 |
52 |
|||
Total provisions |
84,316 |
75,091 |
73,851 |
|||
Total liabilities |
129,802 |
131,385 |
141,067 |
|||
Net assets |
217,092 |
212,747 |
216,585 |
|||
EQUITY |
||||||
Contributed equity |
390,733 |
334,114 |
374,979 |
|||
Reserves |
10,410 |
10,252 |
10,252 |
|||
Accumulated deficit |
(184,051) |
(131,619) |
(168,646) |
|||
Total equity |
217,092 |
212,747 |
216,585 |
The above statement should be read in conjunction with the accompanying notes.
- The Department’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period was the 2018–19 Portfolio Budget Statements. The budgeted financial statements have not been audited.
Statement of Changes in Equity
Retained earnings |
Asset revaluation surplus |
Contributed equity |
Total equity |
|||||||||
2019 |
2018 |
Original Budget1 |
2019 |
2018 |
Original Budget1 |
2019 |
2018 |
Original Budget1 |
2019 |
2018 |
Original Budget1 |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Opening balance |
||||||||||||
Balance carried forward from previous period |
(131,619) |
(90,478) |
(127,655) |
10,252 |
10,252 |
10,252 |
334,114 |
262,484 |
334,139 |
212,747 |
182,258 |
216,736 |
Adjusted opening balance |
(131,619) |
(90,478) |
(127,655) |
10,252 |
10,252 |
10,252 |
334,114 |
262,484 |
334,139 |
212,747 |
182,258 |
216,736 |
Comprehensive income |
||||||||||||
Other comprehensive income |
- |
- |
- |
158 |
- |
- |
- |
- |
- |
158 |
- |
- |
Deficit for the period |
(52,432) |
(41,141) |
(40,991) |
- |
- |
- |
- |
- |
- |
(52,432) |
(41,141) |
(40,991) |
Total comprehensive income |
(52,432) |
(41,141) |
(40,991) |
158 |
- |
- |
- |
- |
- |
(52,274) |
(41,141) |
(40,991) |
Contributions by owners |
||||||||||||
Equity injection - Appropriation |
- |
- |
- |
- |
- |
- |
22,096 |
40,349 |
16,390 |
22,096 |
40,349 |
16,390 |
Departmental capital budget |
- |
- |
- |
- |
- |
- |
30,434 |
31,306 |
24,450 |
30,434 |
31,306 |
24,450 |
Restructuring |
- |
- |
- |
- |
- |
- |
4,089 |
(25) |
4,089 |
(25) |
- |
|
Sub-total transactions with owners |
- |
- |
- |
- |
- |
- |
56,619 |
71,630 |
40,840 |
56,619 |
71,630 |
40,840 |
Closing balance as at 30 June |
(184,051) |
(131,619) |
(168,646) |
10,410 |
10,252 |
10,252 |
390,733 |
334,114 |
374,979 |
217,092 |
212,747 |
216,585 |
The above statement should be read in conjunction with the accompanying notes.
- The Department’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period was the 2018–19 Portfolio Budget Statements. The budgeted financial statements have not been audited.
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 received from, or relinquished to, another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.
Cash Flow Statement
2019 |
2018 |
Original Budget1 |
||||
$'000 |
$'000 |
$'000 |
||||
OPERATING ACTIVITIES |
||||||
Cash received |
||||||
Appropriations |
414,615 |
380,300 |
318,574 |
|||
Sale of goods and rendering of services |
56,653 |
67,821 |
54,145 |
|||
GST received |
17,266 |
17,232 |
14,019 |
|||
Sublease rent |
825 |
1,552 |
- |
|||
Total cash received |
489,359 |
466,905 |
386,738 |
|||
Cash used |
||||||
Employees |
234,538 |
225,323 |
230,987 |
|||
Suppliers |
181,059 |
164,803 |
105,068 |
|||
Grants |
- |
137 |
- |
|||
Section 74 receipts transferred to the OPA |
74,744 |
78,179 |
50,683 |
|||
Total cash used |
490,341 |
468,442 |
386,738 |
|||
Net cash used by operating activities |
(982) |
(1,537) |
- |
|||
INVESTING ACTIVITIES |
||||||
Cash received |
||||||
Proceeds from sales of infrastructure, plant and |
50 |
272 |
- |
|||
Total cash received |
50 |
272 |
- |
|||
Cash used |
||||||
Purchase of infrastructure, plant and equipment |
13,353 |
16,474 |
3,626 |
|||
Purchase / development of intangibles |
47,276 |
47,761 |
32,368 |
|||
Purchase of leasehold improvements |
6,037 |
5,295 |
4,846 |
|||
Total cash used |
66,666 |
69,530 |
40,840 |
|||
Net cash used by investing activities |
(66,616) |
(69,258) |
(40,840) |
|||
FINANCING ACTIVITIES |
||||||
Cash received |
||||||
Contributed equity – restructure (special account balance) |
5,431 |
- |
- |
|||
Contributed equity - equity injection and capital budget |
66,444 |
69,530 |
40,840 |
|||
Total cash received |
71,875 |
69,530 |
40,840 |
|||
Net cash from financing activities |
71,875 |
69,530 |
40,840 |
|||
Net increase / (decrease) in cash held |
4,277 |
(1,265) |
- |
|||
Cash and cash equivalents at the beginning of the reporting period |
2,396 |
3,661 |
2,000 |
|||
Cash and cash equivalents at the end of the reporting period2 |
6,673 |
2,396 |
2,000 |
The above statement should be read in conjunction with the accompanying notes.
- The Department’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period was the 2018–19 Portfolio Budget Statements. The budgeted financial statements have not been audited.
- As shown in the Statement of Financial Position.
Budget Variance Commentary
The following table provides a comparison between the 2018–19 Portfolio Budget Statements (PBS) budget and the final financial outcome in the 2018–19 financial statements. The Budget and Revised Budget is not audited and does not reflect budget estimates presented to Parliament in respect of the 2019 financial year. However, major changes in budget have been explained as part of the variance analysis where relevant.
Variances are considered to be ‘major’ based on the following criteria:
- the variance between budget and actual is greater than 10 per cent; or
- an item that is below this threshold but is considered material for the analysis of the performance of the Department.
Departmental Major Budget Variances for 2018-19
Suppliers expense is $18.5m higher than the original budget largely due to additional expenditure to support the implementation of program measures, including: the Jobs and Education Data Infrastructure data tool for employers and employees, Online Employment Services |
Suppliers (Statement of Comprehensive Income) |
The Write-down of assets expense is $0.7m higher than the original budget largely due to the impairment of software. |
Write-down of assets (Statement of Comprehensive Income) |
Other gains are $0.6m higher than the original budget mainly due to prior year revenue adjustments. |
Other gains (Statement of Comprehensive income) |
Revenue from Government is $16.7m higher than original budget mainly due to new measures announced at MYEFO, including; the Jobs and Education Data Infrastructure data tool for employers and employees, Online Employment Services Trial- expansion and Small Business initiatives. |
Revenue from Government (Statement of Comprehensive Income) |
The asset revaluation surplus is $0.2m higher than the original budget due to a revaluation of the Department’s assets. |
Changes in asset revaluation surplus (Statement of Comprehensive Income), Reserves (Statement of Financial Position), Other Comprehensive Income (Statement of Changes in Equity) |
Cash and cash equivalents are $4.7m higher than the original budget due to Machinery of Government changes, including the impact of the Student Identifiers Special Account and additional receipts at the end of the financial year. |
Cash and cash equivalents (Statement of Financial Position) |
Trade and other receivables are $23.9m lower than the original budget due to a reduction in appropriations used to pay prior year accrued expenses. |
Trade and other receivables (Statement of Financial Position) |
Accrued revenue is $0.6m higher than the original budget due to services provided by the Department where payments have not yet been received. |
Accrued revenue (Statement of Financial Position) |
Leasehold improvement values have increased by $5.6m compared to the original budget due to fit outs undertaken in the Department’s properties. |
Leasehold improvements (Statement of Financial Position) |
Prepayments are $5.5m higher than the original budget due to an increased expenditure for software licences. |
Prepayments (Statement of Financial Position) |
Suppliers payables are $14.0m lower than the original budget due to reduced payables and accrued expenses as a result of the Department’s revised payment terms. |
Suppliers payables (Statement of Financial Position) |
Other payables are $7.7m lower than the original budget due to a change in the treatment of lease incentives. |
Other payables (Statement of Financial Position) |
Employee provisions are $10.5m higher than the original budget due to the decrease in the long term bond rate and the new enterprise agreement. |
Employee provisions (Statement of Financial Position) |
Contributed equity is ($15.8m) and equity received is ($25.6m) higher |
Contributed equity (Statement of Financial Position), Contributed equity/capital (Statement of Changes in Equity), Contributed equity - equity injection (Cash Flow Statement) |
Contributed equity – restructure is $5.4m higher than the original budget due to Machinery of Government changes, including the impact of the Student Identifiers Special Account. |
Contributed equity - restructure (Cash Flow Statement) |
Appropriations used are $96.0m higher than the original budget due to prior year accruals, and the implementation of measures announced at MYEFO; including; the Jobs and Education Data Infrastructure data tool for employers and employees, Online Employment Services Trial- expansion and Small Business initiatives. |
Appropriations (Cash Flow Statement) |
GST received is $3.2m higher than the original budget due to higher supplier expenses. |
Net GST received (Cash Flow Statement) |
Suppliers payments are $76.0m higher than the original budget due to payments for prior year expenses, and the implementation of measures announced at MYEFO. |
Suppliers (Cash Flow Statement) |
Section 74 transfers are $24.1m higher than the original budget due to |
Section 74 transfers to the OPA (Cash Flow Statement) |
Purchase of infrastructure, plant and equipment is $9.7m higher than the original budget due to payments for prior year capital purchases. |
Purchase of infrastructure, plant and equipment (Cash Flow Statement) |
Development of intangibles is $14.9m higher than the original budget due to payments for prior year expenses, and higher than planned internally developed software. |
Purchase / development of intangibles (Cash Flow Statement) |
Purchase of leasehold improvements is $1.2m higher than the original budget due to higher than planned leasehold improvements. |
Purchase of leasehold improvements (Cash Flow Statement) |
Note 1: Expenses
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 1A: Employee Benefits |
||
Wages and salaries |
176,414 |
170,227 |
Superannuation |
||
Defined contribution plans |
18,807 |
18,109 |
Defined benefit plans |
16,921 |
17,386 |
Leave and other entitlements |
25,866 |
16,459 |
Separations and redundancies |
1,590 |
2,688 |
Other employee expenses |
1,311 |
1,416 |
Total employee benefits |
240,909 |
226,285 |
Accounting Policy
Accounting policies for employee related expenses are contained in Note 6A: Employee Provisions.
Goods and services supplied or rendered |
||
Consultants |
17,847 |
13,336 |
Contractors |
32,781 |
24,795 |
Travel |
4,829 |
5,258 |
IT services |
39,877 |
33,059 |
Property |
7,044 |
6,546 |
Shared services |
7,737 |
7,948 |
Resources provided free of charge - external audit |
408 |
400 |
Legal |
4,027 |
2,262 |
Training |
4,561 |
4,806 |
Other |
12,927 |
12,689 |
Total goods and services supplied or rendered |
132,038 |
111,099 |
Goods supplied |
3,437 |
3,128 |
Services rendered |
128,601 |
107,971 |
Total goods and services supplied or rendered |
132,038 |
111,099 |
Other suppliers |
||
Operating lease rentals in connection with Minimum lease rentals |
26,143 |
25,644 |
Workers compensation expenses |
531 |
528 |
Total other suppliers |
26,674 |
26,172 |
Total suppliers |
158,712 |
137,271 |
Leasing commitments |
||
Details of significant leasing commitments for the Department include: |
||
The Department in its capacity as lessee for 10 & 12 Mort Street, Canberra is subject to a 3.75% fixed |
||
The Department in its capacity as lessee for 14 Mort Street, Canberra is subject to a 3.75% fixed annual |
||
The Department in its capacity as lessee for 140-180 City Walk, Canberra is subject to a 4.00% fixed annual |
||
The Department in its capacity as lessee for Level 9, 255 Elizabeth Street, Sydney is subject to a 3.75% fixed |
||
The Department in its capacity as lessee for Level 10, 414 Latrobe Street, Melbourne is subject to a 3.75% |
||
The Department in its capacity as lessee for Level 18, 11 Waymouth Street, Adelaide is subject to a 3.50% |
||
The Department in its capacity as lessee for Levels 5 & 8, 215 Adelaide Street, Brisbane is subject to a |
||
2019 |
2018 |
|
$'000 |
$'000 |
|
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable (GST inclusive) as follows: |
||
Within 1 year |
28,654 |
25,198 |
Between 1 to 5 years |
103,520 |
97,709 |
More than 5 years |
12,881 |
33,929 |
Total operating lease commitments |
145,055 |
156,836 |
Accounting Policy
Leases
An operating lease is a lease that is not a finance lease and where the lessor effectively retains substantially all such risks and benefits.
Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.
Lease payments are subject to increases in accordance with upwards movements in the consumer price index, market rates, fixed increase rates or a combination of the aforementioned rates.
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 1C: Grants |
||
Private sector |
||
Other |
- |
137 |
Total grants |
- |
137 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Unwinding of discount for restoration |
1 |
2 |
Total finance costs |
1 |
2 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Impairment Loss Allowance from |
||
Impairment of receivables - goods and services |
3 |
2 |
Total impairment on financial instruments |
3 |
2 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Write-off of infrastructure, plant and equipment |
140 |
503 |
Impairment of intangibles |
571 |
1,486 |
Total write-down and impairment of other assets |
711 |
1,989 |
Note 2: Income
2019 |
2018 |
|
$'000 |
$'000 |
|
OWN-SOURCE REVENUE |
||
Note 2A: Sale of Goods and Rendering of Services |
||
Rendering of services |
55,678 |
52,500 |
Total sale of goods and rendering of services |
55,678 |
52,500 |
Accounting Policy
Revenue from the sale of goods is recognised when:
- the risks and rewards of ownership have been transferred to the buyer;
- the Department retains no managerial involvement or effective control over the goods;
- the revenue and transaction costs incurred can be reliably measured; and
- it is probable that the economic benefits associated with the transaction will flow to the Department.
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:
- the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
- the probable economic benefits associated with the transaction will flow to the Department.
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.
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 2B: Rental Income |
||
Rental income |
825 |
1,552 |
Total rental income |
825 |
1,552 |
Sub leasing rental income commitments |
||
The Department in its capacity as lessor has in place a number of memorandum of understanding agreements with Commonwealth entities in four tenancies. |
||
Commitments for sublease rental income receivables (GST inclusive) are as follows: |
||
Within 1 year |
(989) |
(1,668) |
Between 1 to 5 years |
(884) |
(4,147) |
More than 5 years |
- |
(707) |
Total sublease rental income commitments |
(1,873) |
(6,522) |
Note 2C: Other Gains |
2019 |
2018 |
$'000 |
$'000 |
|
First time recognition of assets – infrastructure, plant and equipment |
||
Other |
542 |
1,583 |
Total other gains |
560 |
1,678 |
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.
Gains
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 (Refer to Accounting Policy for the Statement of Changes in Equity).
Sale of Assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
2019 |
2018 |
|
$'000 |
$'000 |
|
REVENUE FROM GOVERNMENT |
||
Note 2D: Revenue from Government |
||
Appropriations |
||
Departmental appropriations |
334,015 |
310,830 |
Special Account Revenue |
941 |
- |
Total revenue from Government |
334,956 |
310,830 |
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 Department 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.
Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to this entity) is recognised as Revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.
Note 3: Financial Assets
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 3A: Cash and Cash Equivalents |
||
Cash on hand or on deposit |
2,561 |
2,396 |
Cash held in the OPA - Special Account |
4,112 |
- |
Total cash and cash equivalents |
6,673 |
2,396 |
Credit terms for goods and services are net 30 days.
Note 3B: Trade and Other Receivables |
2019 |
2018 |
$'000 |
$'000 |
|
Goods and services |
||
Appropriation receivables - for existing programs |
118,953 |
137,782 |
GST receivable from the Australian Taxation Office |
3,436 |
3,189 |
Other |
928 |
484 |
Total trade and other receivables (gross) |
129,297 |
144,654 |
Less impairment loss allowance for goods and services |
(7) |
(4) |
Total trade and other receivables (net) |
129,290 |
144,650 |
Accounting Policy
Receivables and impairment
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 and impairment allowances are made when collectability of the debt is no longer probable.
Note 4: Non-Financial Assets
Leasehold improvements |
Other plant & equipment |
Computer software internally developed |
Computer software purchased |
Total |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
As at 30 June 2018 |
|||||
Gross book value |
36,111 |
46,594 |
191,195 |
1,913 |
275,813 |
Accumulated depreciation, amortisation and impairment |
(7,154) |
(16,128) |
(78,521) |
(1,349) |
(103,152) |
Net book value 30 June 2018 |
28,957 |
30,466 |
112,674 |
564 |
172,661 |
Additions |
|||||
Purchase or internally developed |
4,145 |
10,037 |
43,945 |
1,058 |
59,185 |
First time recognition |
- |
18 |
- |
- |
18 |
Reclassification |
- |
(2,910) |
2,910 |
- |
- |
Revaluations recognised in other comprehensive income |
472 |
(314) |
- |
- |
158 |
Impairments recognised in net cost of services |
- |
- |
(571) |
- |
(571) |
Reversal of impairments recognised in net cost of services |
- |
- |
- |
- |
- |
Depreciation/amortisation expense |
(4,294) |
(10,075) |
(29,913) |
(207) |
(44,489) |
Other movements |
|||||
Disposals |
- |
(10) |
- |
- |
(10) |
Write-offs |
- |
(140) |
- |
- |
(140) |
Total as at 30 June 2019 |
29,280 |
27,072 |
129,045 |
1,415 |
186,812 |
Total as at 30 June 2019 represented by: |
|||||
Gross book value |
|||||
Fair value |
27,087 |
32,616 |
224,895 |
2,971 |
287,569 |
Work in progress |
2,502 |
1,257 |
4,756 |
- |
8,515 |
Accumulated depreciation, amortisation and impairment |
(309) |
(6,801) |
(100,606) |
(1,556) |
(109,272) |
Total as at 30 June 2019 |
29,280 |
27,072 |
129,045 |
1,415 |
186,812 |
During 2019, $0.571 million of internally developed software was impaired (2018: $1.486m). There were no write offs of internally developed software (2018: nil). There were no write offs of purchased software during 2019 (2018: nil).
During 2019, nil plant and equipment was impaired (2018: $0.428m).
There are no leased properties that the Department manages which are due to be vacated within the next 12 months that has a leasehold improvement asset.
No impairment loss was required for surplus lease space (2018: nil).
Revaluations of non-financial assets
All revaluations were conducted in accordance with the revaluation policy below.
Revaluation increments for leasehold improvements and other plant and equipment credited to the asset revaluation reserve were included in the equity section of the Statement of Financial Position, no decrements were expensed.
2019 |
2018 |
|
$'000 |
$'000 |
|
Commitments are payable as follows: |
||
Within 1 year |
1,681 |
5,189 |
Total commitments payable |
1,681 |
5,189 |
Accounting Policy
Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
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, except for purchases costing less than $2,000, (or $50,000 for leasehold improvements) which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
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 the restoration provisions in property leases taken up by the Department where there exists an obligation 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.
Revaluations
Fair values for each class of asset are determined as shown below:
Asset Class |
Fair value measurement |
Leasehold improvements |
Depreciated replacement cost |
Infrastructure, plant and equipment |
Market selling price |
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 as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. This volatility is assessed before the end of each reporting period.
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/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation
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.
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 useful lives:
Asset Class |
2019 |
Leasehold improvements |
Lease Term |
Infrastructure, plant and equipment |
3–25 years |
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.
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.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
Intangibles
The Department’s intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Purchases costing less than $200,000 are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Department’s software are 2–15 years.
All software assets were assessed for indications of impairment as at 30 June 2019.
Note 5: Payables
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 5A: Trade Creditors and Accruals |
||
Trade creditors and accruals |
24,369 |
33,613 |
Operating lease rentals |
6,660 |
5,324 |
Total suppliers |
31,029 |
38,937 |
Settlement is usually made within 30 days.
2019 |
2018 |
|
$'000 |
$'000 |
|
Salaries and wages |
1,589 |
1,586 |
Superannuation |
271 |
558 |
Separations and redundancies |
- |
548 |
Other employee benefits |
638 |
841 |
Lease incentive |
9,937 |
11,503 |
Unearned income |
2,022 |
2,321 |
Total other payables |
14,457 |
17,357 |
Accounting Policy
Operating lease rentals
Operating lease payments are expressed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.
Lease Incentives
Lease incentives taking the form of ‘free’ leasehold improvements and rent free holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.
Note 6: Provisions
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 6A: Employee Provisions |
||
Leave |
84,253 |
74,998 |
Total employee provisions |
84,253 |
74,998 |
Accounting Policy
Employee Benefits
Liabilities for ‘short-term employee benefits’ and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. Other long-term employee benefits are measured as the 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 the Department’s employer superannuation contribution rates to the extent that the 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 30 June 2019. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
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 and has informed those employees affected that it will carry out the terminations.
Superannuation
The majority of the Department’s staff are members of the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other schemes administered by the Commonwealth Superannuation Corporation (CSC).
The PSS and AGEST 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 employee’s defined benefit 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 plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions.
Provision for restoration |
Total |
|
$’000 |
$’000 |
|
As at 1 July 2018 |
93 |
93 |
Amounts reversed |
(31) |
(31) |
Discount or change in discount rate |
1 |
1 |
Total as at 30 June 2019 |
63 |
63 |
The Department currently has one (2018:1) agreement for the leasing of premises which have provisions requiring the Department to restore the premises to their original condition at the conclusion of the lease. The provision reflects the present value of this obligation. |
Note 7: 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, including any director (whether executive or otherwise) of the Department. The Department has determined the key management personnel to be the Secretary and Deputy Secretaries.
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 7A: Key Management Personnel Remuneration |
||
Short-term employee benefits |
1,799 |
1,572 |
Post-employment benefits |
280 |
279 |
Other long-term employee benefits1 |
67 |
248 |
Total key management personnel remuneration expenses |
2,146 |
2,099 |
1. Other includes motor vehicle allowances, other allowances and reportable fringe benefits.
The 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 the Department.
The total number of senior management personnel that are included in the above table is 6 (2018: 5). The comparative in 2018 includes former Secretary Leon, from 1 July 2017 to 17 September 2017.
This note was prepared on an accrual basis and excludes acting arrangements, unless these are deemed to be significant long-term acting of greater than three months.
Note 8: 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 Portfolio Minister and the Department’s executive.
Transactions with related parties:
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as any ordinary citizen. 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.
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 to be separately disclosed for 2019 (2018: nil).
Note 9: Contingent Assets and Liabilities
Quantifiable Contingencies
The Department has no quantifiable contingencies. All prior year contingencies have been realised or expired.
Accounting Policy
Contingent Assets and Contingent Liabilities
Contingent assets and contingent liabilities are not recognised in the Statement of Financial Position but are reported in the 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: Financial Instruments
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 10A: Categories of Financial Instruments |
||
Financial assets under AASB 139 |
||
Loans and receivables |
||
Cash and cash equivalents |
2,396 |
|
Goods and services receivable |
3,195 |
|
Total loans and receivables |
5,591 |
|
Total financial assets |
5,591 |
|
Financial assets under AASB 9 |
||
Financial assets at amortised cost |
||
Cash and cash equivalents |
6,673 |
|
Goods and services receivable |
5,973 |
|
Total financial assets at amortised cost |
12,646 |
|
Total financial assets |
12,646 |
|
Financial Liabilities |
||
Financial liabilities measured at amortised cost |
||
Trade creditors and accruals |
24,369 |
33,613 |
Total financial liabilities measured at amortised cost |
24,369 |
33,613 |
Total financial liabilities |
24,369 |
33,613 |
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 |
||||
Cash and cash equivalents |
3A |
Receivables |
Amortised Cost |
2,396 |
2,396 |
Goods and services receivable |
3B |
Receivables |
Amortised Cost |
3,195 |
3,195 |
Total financial assets |
5,591 |
5,591 |
|||
Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9 |
|||||
Financial assets class |
AASB 139 carrying amount at 1 July 2018 |
Reclassification |
Re-measurement |
AASB 9 carrying amount at 1 July 2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
||
Financial assets at amortised cost |
|||||
Loans and receivables |
|||||
Cash and cash equivalents |
2,396 |
- |
- |
2,396 |
|
Goods and services receivable |
3,195 |
- |
- |
3,195 |
|
Total financial assets |
5,591 |
- |
- |
5,591 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 10B: Net Gains or Losses on Financial Assets |
||
Financial assets at amortised cost |
||
Impairment of receivables - goods and services |
(3) |
(2) |
Net losses on financial assets at amortised cost |
(3) |
(2) |
Net losses on financial assets |
(3) |
(2) |
Accounting Policy
Financial Assets
With the implementation of AASB 9 Financial Instruments for the first time in 2019; the Department classifies its financial assets as:
a) financial assets measured at amortised cost;
b) financial assets at fair value through other comprehensive income; and
c) financial assets at fair value through profit or loss.
The classification depends on both the Department’s business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the Department 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 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 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 the 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 or 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 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 11: Fair Value Measurement
Fair value measurements at the end of the reporting period |
||
2019 |
2018 |
|
$'000 |
$'000 |
|
Non-financial assets |
||
Leasehold improvements |
26,778 |
19,607 |
Infrastructure, plant and equipment |
25,815 |
29,210 |
Total non-financial assets |
52,593 |
48,817 |
Total fair value measurements of assets in the Statement of Financial Position |
52,593 |
48,817 |
Assets not measured at fair value in the Statement of Financial Position |
2019 |
2018 |
Leasehold improvements - AUC |
2,502 |
9,349 |
Infrastructure, plant & equipment - AUC |
1,257 |
1,256 |
Total assets not measured at fair value in the Statement of Financial Position |
3,759 |
10,605 |
Accounting Policy
The Department’s policy under AASB 13 Fair Value Measurement is to test the value of assets at least once every 12 months and to obtain a comprehensive valuation at least once every three years1.
For 2018–19, Jones Lang LaSalle (JLL) has completed a fair value review of all leasehold improvements and infrastructure, plant and equipment as at 30 June 20192. The review concluded that there was no material movements in fair value of the Department’s assets.
Note 12: Appropriations
Note 12A: Annual Appropriations ('Recoverable GST exclusive') |
|||||
2019 Appropriations |
Appropriation applied in 2019 (current and prior years) |
||||
Annual appropriation |
Adjustments to appropriation |
Total appropriation |
Variance |
||
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
DEPARTMENTAL |
|||||
Ordinary annual services1 |
334,015 |
74,744 |
408,759 |
413,674 |
(4,915) |
Capital Budget2 |
31,367 |
- |
31,367 |
39,067 |
(7,700) |
Other services |
|||||
Equity |
22,096 |
- |
22,096 |
27,377 |
(5,281) |
Total departmental |
387,478 |
74,744 |
462,222 |
480,118 |
(17,896) |
1. The Departmental adjustments to appropriation includes PGPA Act Section 74 receipts. The ordinary annual services variance is due to timing between goods being received and payments being made.
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. The variance is due to timing between goods being received and payments being made. The Departmental Capital Budget has been reduced by $0.933m under a section 51 Determination dated 24 January 2019.
2018 Appropriations |
Appropriation applied in 2018 (current and prior years) |
Variance1 |
|||
Annual appropriation |
Adjustments to appropriation3 |
Total appropriation |
|||
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
DEPARTMENTAL |
|||||
Ordinary annual services |
305,391 |
83,618 |
389,009 |
380,300 |
8,709 |
Capital Budget2 |
31,306 |
- |
31,306 |
34,462 |
(3,156) |
Other services |
|||||
Equity |
40,349 |
- |
40,349 |
35,068 |
5,281 |
Total departmental |
377,046 |
83,618 |
460,664 |
449,830 |
10,834 |
1. The Ordinary annual services budget variance is due to closing liabilities not yet paid and operating surplus. The Capital Budget variance is due to timing between goods being received and payments being made.
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.
3. Departmental adjustments to appropriation includes $78.18m of PGPA Act Section 74 receipts and $5.44m of PGPA Act Section 75 transfers as a result of transferred functions to the Department.
Note 12B: Unspent Annual Appropriations ('Recoverable GST exclusive') |
||
2019 |
2018 |
|
$'000 |
$'000 |
|
Departmental |
||
Appropriation Act (No. 1) 2016-17 |
- |
1,258 |
Appropriation Act (No. 2) Equity Injection 2016-17 |
2,005 |
2,005 |
Appropriation Act (No. 4) Equity Injection 2016-17 |
1,063 |
1,063 |
Appropriation Act (No. 1) 2017-18 |
- |
115,140 |
Appropriation Act (No. 1) Capital Budget 2017-18 |
- |
4,838 |
Appropriation Act (No. 2) Equity Injection 2017-18 |
- |
1,204 |
Appropriation Act (No. 3) 2017-18 |
- |
4,244 |
Appropriation Act (No. 3) Capital Budget 2017-18 |
- |
3,953 |
Appropriation Act (No. 4) Equity Injection 2017-18 |
- |
4,077 |
Appropriation Act (No. 1) 2018-19 |
99,928 |
- |
Appropriation Act (No. 1) Capital Budget 2018-191 |
933 |
- |
Appropriation Act (No. 3) 2018-19 |
15,800 |
- |
Appropriation Act (No. 3) Capital Budget 2018-19 |
158 |
- |
Cash at bank |
2,561 |
2,396 |
Total |
122,448 |
140,178 |
1. The unspent Departmental Capital Budget is subject to a section 51 Determination dated 24 January 2019.
Note 13: Special Accounts
Student Identifiers Special Account1 |
|
2019 |
|
$'000 |
|
Balance as at 29 May (represented by cash held in the OPA) |
5,431 |
Increases |
|
Appropriations credited to special account |
941 |
Total increases |
941 |
Available for payments |
6,372 |
Decreases |
|
Payments made |
(2,260) |
Total decreases |
(2,260) |
Balance as at 30 June (represented by cash held in the OPA) |
4,112 |
As a result of the Administrative Arrangements Order of 29 May 2019, the Student Identifiers Special Account transferred to the Department from the Department of Education.
1. Student Identifiers Special Account
Appropriation: Public Governance, Performance and Accountability Act 2013, section 80.
Establishing Instrument: Student Identifiers Act 2014; subsection 48(1).
Purpose: For paying or discharging the costs, expenses and other obligations incurred by the Commonwealth in the performance of the Registrar’s functions, paying any remuneration and allowances payable to any person under the Act and meeting the expenses of administering the account.
Note 14: Regulatory Charging
As a result of the Administrative Arrangements Order of 29 May 2019, skills, vocational education and training programs transferred to the Department from the Department of Education.
From 29 May 2019 the Department undertook regulatory charging activities relating to:
- certain programs managed by Trades Recognition Australia (TRA); and
- the VET Student Loans program.
The Department of Education receipted $23,700 of TRA external revenue for the period 29 May to 30 June 2019 on behalf of the Department.
Further information on the above activities is available at:
- TRA: www.tradesrecognitionaustralia.gov.au
- VET Student Loans program: www.employment.gov.au
Note 15: Net Cash Appropriation Arrangements
2019 |
2018 |
|
$'000 |
$'000 |
|
Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations |
(7,785) |
1,530 |
Plus: depreciation/amortisation expenses previously funded through revenue appropriation |
(44,489) |
(42,671) |
Total comprehensive loss - as per the Statement of Comprehensive Income |
(52,274) |
(41,141) |
Note 16: Aggregate Assets and Liabilities
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 16A: Aggregate Assets and Liabilities |
||
Assets expected to be recovered in: |
||
No more than 12 months |
151,069 |
162,190 |
More than 12 months |
195,825 |
181,942 |
Total assets |
346,894 |
344,132 |
Liabilities expected to be settled in: |
||
No more than 12 months |
53,171 |
65,330 |
More than 12 months |
76,631 |
66,055 |
Total liabilities |
129,802 |
131,385 |
Note 17: Restructuring
2019 |
||
Department of Education 1 |
Total |
|
$'000 |
$'000 |
|
FUNCTIONS ASSUMED |
||
Assets recognised |
||
Cash held in the OPA - Special Account |
5,431 |
5,431 |
Total assets recognised |
5,431 |
5,431 |
Liabilities recognised |
||
Other payables |
1,342 |
1,342 |
Total liabilities recognised |
1,342 |
1,342 |
Net assets recognised 2 |
4,089 |
4,089 |
Income assumed |
||
Recognised by the receiving entity3 |
941 |
941 |
Recognised by the losing entity |
5,340 |
5,340 |
Total income assumed |
6,281 |
6,281 |
Expenses assumed |
||
Recognised by the receiving entity3 |
2,260 |
2,260 |
Recognised by the losing entity |
3,998 |
3,998 |
Total expenses assumed |
6,258 |
6,258 |
1. The Student Identifiers Special Account and the Trades Recognition Australia regulatory charging activities were assumed by the Department due to the Administrative Arrangements Order dated 29 May 2019. These balances have an effective transfer date of 29 May 2019.
2. The net assets assumed from the Department of Education was $4.089 million. In respect of functions assumed, the net book value of assets and liabilities were transferred to the Department for no consideration.
3. For additional information refer to Note 13 Special Accounts.
2018 |
|||
Small Business and Small Business Ombudsman Functions |
Deregulation Functions |
Total |
|
$'000 |
$'000 |
$'000 |
|
FUNCTIONS ASSUMED |
|||
Assets recognised |
|||
Trade and other receivables |
|||
Appropriation receivable |
1,110 |
148 |
1,258 |
Trade and other receivables |
3 |
- |
3 |
Leasehold improvements |
492 |
- |
492 |
Prepayments |
26 |
- |
26 |
Total assets recognised |
1,631 |
148 |
1,779 |
Liabilities recognised |
|||
Suppliers |
403 |
- |
403 |
Operating lease rentals |
20 |
- |
20 |
Employee provisions |
1,127 |
163 |
1,290 |
Other provisions |
91 |
- |
91 |
Total liabilities recognised |
1,641 |
163 |
1,804 |
Net liabilities recognised3 |
(10) |
(15) |
(25) |
Income assumed |
|||
Recognised by the receiving entity |
2,297 |
214 |
2,511 |
Recognised by the losing entity |
4,085 |
495 |
4,580 |
Total income assumed |
6,382 |
709 |
7,091 |
Expenses assumed |
|||
Recognised by the receiving entity |
2,297 |
214 |
2,511 |
Recognised by the losing entity |
4,085 |
495 |
4,580 |
Total expenses assumed |
6,382 |
709 |
7,091 |
1. The small business functions were assumed by the Department due to the Administrative Arrangements Order dated 19 April 2018.
2. The regulatory policy functions were assumed by the Department due to the Administrative Arrangements Order dated 19 April 2018.
3. The net liabilities assumed from all entities was $24,659.
Footnotes
- The Department’s assets are held for operational purposes and not held for the purpose of deriving a profit. The current use of all non-financial assets is considered their highest and best use. ↩
- No non-financial assets were measured at fair value on a non-recurring basis at 30 June 2019 (2018: nil) ↩
Visit
https://www.transparency.gov.au/annual-reports/department-employment-skills-small-and-family-business/reporting-year/2018-2019-62