Statement of Comprehensive Income

1. 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.
2. 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

1. 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

1. 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

1. 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.
2. 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

Note 1: Expenses

Accounting Policy

Accounting policies for employee related expenses are contained in Note 6A: Employee Provisions.

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.

Note 2: Income

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.

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.

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

Credit terms for goods and services are net 30 days.

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

Note 4A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles (2018-19)
	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.

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:

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:

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

Settlement is usually made within 30 days.

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

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.

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.

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

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

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

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

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

Note 16: Aggregate Assets and Liabilities

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 Department of Treasury1	Deregulation Functions Department of the Prime Minister and Cabinet2	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.