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Department of Foreign Affairs and Trade Annual Report 2017/18

Financial Statements

Statement by the Secretary and Chief Financial Officer

Statement of Comprehensive Income

				Original
		2018	2017	Budget
	Notes	$'000	$'000	$'000
NET COST OF SERVICES
Expenses
Employee benefits	1.1A	797,532	778,564	746,014
Suppliers	1.1B	694,351	698,362	691,089
Depreciation and amortisation	3.2A	187,155	171,287	156,012
Write-down and impairment of assets	1.1C	8,120	12,408	-
Grants and other contributions		9,052	10,313	-
Finance costs		314	659	-
Total expenses		1,696,524	1,671,593	1,593,115

Own-Source Income
Own-source revenue
Sale of goods and rendering of services	1.2A	138,918	135,116	125,436
Other revenue	1.2B	6,548	14,513	11,258
Total own-source revenue		145,466	149,629	136,694

Gains
Gains on sale of assets	1.2C	132,863	367	-
Other gains	1.2D	3,627	1,860	121,271
Foreign exchange gains - non-speculative		5,546	11	-
Total gains		142,036	2,238	121,271
Total own-source income		287,502	151,867	257,965
Net (cost of) services		(1,409,022)	(1,519,726)	(1,335,150)

Revenue from Government - departmental appropriations		1,355,169	1,382,971	1,359,553
(Deficit) / Surplus from continuing operations		(53,853)	(136,755)	24,403

OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus		220,427	31,965	-
Total other comprehensive income		220,427	31,965	-

Total comprehensive income / (loss)		166,574	(104,790)	24,403

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

Statement of Financial Position

				Original
		2018	2017	Budget
	Notes	$'000	$'000	$'000
ASSETS
Financial assets
Cash and cash equivalents	3.1A	405,943	178,403	57,295
Trade and other receivables	3.1B	525,662	573,022	837,731
Total financial assets		931,605	751,425	895,026

Non-financial assets
Land	3.2A	1,821,170	1,662,056	1,593,397
Buildings	3.2A	1,513,100	1,470,764	1,618,257
Plant and equipment	3.2A	280,895	306,290	318,530
Intangibles	3.2A	120,134	118,895	109,613
Inventories	3.2B	46,383	47,118	47,586
Assets held for sale	3.2C	-	106,323	83,453
Other non-financial assets	3.2D	66,258	59,915	96,169
Total non-financial assets		3,847,940	3,771,361	3,867,005
Total assets		4,779,545	4,522,786	4,762,031

LIABILITIES
Payables
Suppliers	3.3A	108,013	154,107	81,552
Other payables	3.3B	56,305	26,055	92,570
Total payables		164,318	180,162	174,122

Provisions
Employee provisions	6.1A	228,829	219,273	238,481
Other provisions	3.4A	17,810	19,567	18,989
Total provisions		246,639	238,840	257,470
Total liabilities		410,957	419,002	431,592

Net assets		4,368,588	4,103,784	4,330,439

EQUITY
Contributed equity / capital		2,618,447	2,520,217	2,628,644
Asset revaluation surplus		1,735,829	1,515,402	1,483,437
Retained surplus		14,312	68,165	218,358
Total equity		4,368,588	4,103,784	4,330,439

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

Statement of Changes in Equity

	Retained surplus			Asset revaluation surplus			Contributed equity / capital			Total equity
			Original			Original			Original			Original
	2018	2017	Budget	2018	2017	Budget	2018	2017	Budget	2018	2017	Budget
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Opening balance
Balance carried forward from previous period	68,165	204,920	110,501	1,515,402	1,483,437	1,483,437	2,520,217	2,402,445	2,510,735	4,103,784	4,090,802	4,104,673
Adjusted opening balance	68,165	204,920	110,501	1,515,402	1,483,437	1,483,437	2,520,217	2,402,445	2,510,735	4,103,784	4,090,802	4,104,673

Comprehensive income
Revaluation adjustment	-	-	-	221,457	32,079	-	-	-	-	221,457	32,079	-
Makegood revaluation adjustment	-	-	-	(1,030)	(114)	-	-	-	-	(1,030)	(114)	-
(Deficit) / Surplus for the period	(53,853)	(136,755)	24,403	-	-	-	-	-	-	(53,853)	(136,755)	24,403
Total comprehensive income	(53,853)	(136,755)	24,403	220,427	31,965	-	-	-	-	166,574	(104,790)	24,403

Transactions with owners
Distribution to owners
Returns of capital:
Departmental equity returns	-	-	-	-	-	-	(13,851)	-	-	(13,851)	-	-
Contributions by owners
Equity injection - Appropriations	-	-	-	-	-	-	65,580	66,017	71,408	65,580	66,017	71,408
Departmental capital budget	-	-	-	-	-	-	46,501	51,755	46,501	46,501	51,755	46,501
Other	-	-	83,454	-	-	-	-	-	-	-	-	83,454
Total transactions with owners	-	-	83,454	-	-	-	98,230	117,772	117,909	98,230	117,772	201,363
Closing balance as at 30 June	14,312	68,165	218,358	1,735,829	1,515,402	1,483,437	2,618,447	2,520,217	2,628,644	4,368,588	4,103,784	4,330,439

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.

2017-18 includes a quarantined amount of $5.829m under Appropriation Act (No.2) 2017-18 relating to no-win / no-loss for Security Funding Agreements.

Departmental Equity Returns

Lapsed appropriations are recognised as departmental equity returns. This amount represents prior year appropriations, which have been repealed in the Appropriation Act (No. 4) 2017-18.

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

Cash Flow Statement

				Original
		2018	2017	Budget
	Notes	$'000	$'000	$'000
OPERATING ACTIVITIES
Cash received
Appropriations		1,586,806	1,602,175	1,359,553
Sale of goods and rendering of services		135,453	152,454	136,694
Special account cash transferred from Official Public Account (OPA)		380,000	89,000	-
GST received		40,598	41,067	-
Other		6,407	13,952	135,203
Total cash received		2,149,264	1,898,648	1,631,450
Cash used
Employees		794,026	781,995	743,847
Suppliers		778,804	678,633	691,089
Section 74 receipts transferred to OPA		157,224	224,531	-
Special account cash transferred to OPA		380,000	87,340	-
Other		9,052	11,973	276,469
Total cash used		2,119,106	1,784,472	1,711,405
Net cash from / (used by) operating activities		30,158	114,176	(79,955)

INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment		243,292	1,222	215,158
Total cash received		243,292	1,222	215,158
Cash used
Purchase of land and buildings		74,579	155,788	129,512
Purchase of plant and equipment		58,076	114,943	100,853
Purchase and development of intangibles		20,521	27,743	35,636
Total cash used		153,176	298,474	266,001
Net cash from / (used by) investing activities		90,116	(297,252)	(50,843)

FINANCING ACTIVITIES
Cash received
Contributed equity		101,720	200,284	130,798
Total cash received		101,720	200,284	130,798
Net cash from financing activities		101,720	200,284	130,798

Net increase in cash held		221,994	17,208	-
Cash and cash equivalents at the beginning of the reporting period		178,403	161,184	57,295
Effect of exchange rate movements on cash and cash equivalents at the beginning of the reporting period		5,546	11	-
Cash and cash equivalents at the end of the reporting period	3.1A	405,943	178,403	57,295

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

Administered Schedule of Comprehensive Income


				Original
		2018	2017	Budget
	Notes	$'000	$'000	$'000
NET COST OF SERVICES

Expenses
International development assistance	2.1A	3,067,706	2,919,738	3,088,994
Multilateral replenishments and other loans	2.1B	99,664	1,205,760	12,622
Other grants and contributions	2.1C	418,422	415,157	546,947
Export Finance and Insurance Corporation (Efic)	2.1D	1,349	9,115	1,300
Other expenses	2.1E	10,776	8,289	3,889
Payments to corporate Commonwealth entities - Tourism Australia		129,308	143,610	129,308
Depreciation and amortisation	4.2A	985	1,350	500
Total expenses		3,728,210	4,703,019	3,783,560

Income
Fees and charges	2.2A	538,985	505,290	546,158
Multilateral replenishments and other loans	2.2B	401,181	12,050	-
Efic National Interest Account (NIA)	2.2C	33,653	34,708	46,497
Efic dividend and competitive neutrality	2.2D	13,122	12,824	-
Return of prior year administered expenses	2.2E	56,925	38,454	30,982
Other revenue and gains	2.2F	4,925	8,820	254
Total income		1,048,791	612,146	623,891

Net cost of services		(2,679,419)	(4,090,873)	(3,159,669)

OTHER COMPREHENSIVE INCOME
Re-measurements of defined benefit plans		6,414	2,991	-
Changes in asset revaluation surplus		-	532	-
Movement in the carrying amount of investments		(6,191)	6,513	-
Total other comprehensive (loss) / income		223	10,036	-
Total comprehensive (loss)		(2,679,196)	(4,080,837)	(3,159,669)

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

Administered Schedule of Assets and Liabilities


				Original
		2018	2017	Budget
	Notes	$'000	$'000	$'000

ASSETS
Financial assets
Cash on hand or on deposit	4.1A	10,458	12,162	257
Trade and other receivables	4.1B	192,342	185,305	2,273,378
Investments	4.1C	2,756,164	2,367,368	2,511,526
Total financial assets		2,958,964	2,564,835	4,785,161
Non-financial assets
Leasehold improvements	4.2A	-	81	62
Plant and equipment	4.2A	19	27	6
Computer software internally developed	4.2A	3,046	3,565	4,220
Prepayments		64	128	572
Total non-financial assets		3,129	3,801	4,860
Total assets administered on behalf of Government		2,962,093	2,568,636	4,790,021

LIABILITIES
Payables
Grants	4.3A	980,661	1,071,059	976,307
Other payables	4.3B	889,595	1,127,086	1,322,705
Total payables		1,870,256	2,198,145	2,299,012
Provisions
Employee provisions	6.1B	79,611	82,252	89,711
Total provisions		79,611	82,252	89,711
Total liabilities administered on behalf of Government		1,949,867	2,280,397	2,388,723

Net assets		1,012,226	288,239	2,401,298

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

Administered Reconciliation Schedule


	2018	2017
	$'000	$'000

Opening assets less liabilities as at 1 July	288,239	1,122,824

Net (cost of) / contribution by services
Income	1,048,791	612,146
Expenses
Payments to entities other than corporate Commonwealth entities	(3,598,902)	(4,559,409)
Payments to corporate Commonwealth entities - Tourism Australia	(129,308)	(143,610)

Other comprehensive income
Movement in the carrying amount of investments	(6,191)	6,513
Administered asset revaluations taken to / from reserves	-	532
Actuarial gains / (losses) on defined benefit plans	6,414	2,991

Transfers (to) / from the Australian Government
Appropriation transfers from OPA
Administered assets and liabilities appropriations	135,933	410,718
Annual appropriations
Payments to entities other than corporate Commonwealth entities	3,918,176	3,421,926
Payments to corporate Commonwealth entities - Tourism Australia	129,308	143,610
Special accounts
Payments to entities other than corporate Commonwealth entities	16,347	8,920
Special appropriations (unlimited)
Payments to entities other than corporate Commonwealth entities	715	656
Appropriation transfers to OPA
Transfers to OPA	(797,296)	(739,578)
Closing assets less liabilities as at 30 June	1,012,226	288,239

Accounting Policy

Administered cash transfers to and from the Official Public Account

Revenue collected by DFAT on behalf of the Government is administered revenue. Collections are transferred to the OPA maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the OPA are adjustments to the administered cash held by DFAT on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Payments to corporate Commonwealth entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to DFAT is disclosed in Note 5.1A: Annual Appropriations (‘Recoverable GST exclusive’).

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

Administered Cash Flow Statement


		2018	2017
	Notes	$'000	$'000
OPERATING ACTIVITIES
Cash received
Fees and charges		532,713	510,047
GST received		103,769	92,454
Return of prior year administered expenses		56,925	38,454
Efic dividend		5,791	5,770
Efic competitive neutrality		7,331	7,054
Efic - NIA		30,927	34,421
Other		3,743	8,182
Total cash received		741,199	696,382
Cash used
International development assistance		3,356,812	3,112,963
Other contributions		418,422	415,157
Payments to corporate Commonwealth entities - Tourism Australia		129,308	143,610
Efic - NIA		-	9,210
Other		3,350	3,488
Total cash used		3,907,892	3,684,428
Net cash (used by) operating activities		(3,166,693)	(2,988,046)

INVESTING ACTIVITIES
Cash received
Proceeds from concessional financial instruments		9,752	3,950
Total cash received		9,752	3,950
Cash used
Purchase of intangibles		382	329
Purchase of concessional financial instruments		247,564	275,348
Total cash used		247,946	275,677
Net cash (used by) investing activities		(238,194)	(271,727)

Net (decrease) in cash held		(3,404,887)	(3,259,773)

Cash and cash equivalents at the beginning of the reporting period		12,162	25,683
Cash from Official Public Account
Appropriations		4,184,132	3,976,910
Special accounts		16,347	8,920
Total cash from official public account		4,200,479	3,985,830
Cash to Official Public Account
Appropriations		(797,296)	(739,578)
Total cash to official public account		(797,296)	(739,578)

Cash and cash equivalents at the end of the reporting period	4.1A	10,458	12,162

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

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Department of Foreign Affairs and Trade Annual Report 2017/18

Financial Statements

Statement by the Secretary and Chief Financial Officer

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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