Notes to the financial statements
Financial performance
This section analyses the financial performance of the Department of the House of Representatives for the year ended 30 June 2018.
Note 1: Expenses
2018 |
2017 |
|
$’000 |
$’000 |
|
1A: Employee benefits |
||
Wages and salaries |
14,733 |
14,134 |
Superannuation |
||
Defined contribution plans |
967 |
846 |
Defined benefit plans |
1,898 |
2,013 |
Leave and other entitlements |
1,622 |
1,625 |
Separation and redundancies |
190 |
143 |
Total employee benefits |
19,410 |
18,762 |
1B: Suppliers |
||
Goods and services supplied or rendered |
||
Staff-related services |
373 |
440 |
Travel |
1,094 |
742 |
Office services |
3,092 |
2,876 |
Communication |
86 |
105 |
Corporate expenses |
243 |
266 |
Total goods and services supplied or rendered |
4,888 |
4,430 |
Goods supplied |
218 |
330 |
Services rendered |
4,670 |
4,100 |
Total goods and services supplied or rendered |
4,888 |
4,430 |
Other suppliers |
||
Operating lease rentals |
39 |
62 |
Workers compensation expenses |
56 |
80 |
Total other suppliers |
95 |
142 |
Total suppliers |
4,983 |
4,572 |
Leasing commitments |
||
Operating leases 2017–18 included were effectively non-cancellable and comprise agreements for the provision of motor vehicles to senior executives and for departmental use. |
||
Commitments for minimum lease payments in relation to non-cancellable |
||
Within 1 year |
27 |
37 |
Between 1 to 5 years |
41 |
1 |
Total operating lease commitments |
68 |
38 |
1C: Write-down and impairment of assets |
||
Impairment of property, plant and equipment |
22 |
10 |
Total write-down and impairment of assets |
22 |
10 |
Note 2: Own-source revenue and gains
2018 |
2017 |
|
$’000 |
$’000 |
|
2A: Sale of goods and rendering of services |
||
Sale of goods |
25 |
26 |
Rendering of services |
27 |
38 |
Total sale of goods and rendering of services |
52 |
64 |
2B: Interest |
||
Deposits |
64 |
- |
Total interest |
64 |
- |
2C: Other revenue |
||
Royalties |
36 |
- |
Funding from external sources |
520 |
443 |
Comcare refunds |
6 |
- |
Total other revenue |
562 |
443 |
2D: Other gains |
||
Resources received free of charge |
||
Remuneration of auditors |
83 |
83 |
Rent of premises |
1,869 |
1,831 |
Other gain—asset first time recognition |
34 |
- |
Total other gains |
1,986 |
1,914 |
2E: Revenue from government |
||
Appropriations |
||
Departmental appropriations |
24,242 |
24,159 |
Total revenue from government |
24,242 |
24,159 |
Accounting policy
Revenue from the sale of goods
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 nor effective control over the goods
- the revenue and transaction costs incurred can be reliably measured
- 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
- the probable economic benefits from the transaction will flow to the department.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Interest
Interest revenue is recognised using the effective interest method.
Resources received free of charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition.
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.
Financial position
This section analyses the Department of the House of Representatives’ assets used to conduct its operations and the operating liabilities incurred as a result.
Employee-related information is disclosed in the People and Relationships section.
Note 3: Financial assets
2018 |
2017 |
|
$’000 |
$’000 |
|
3A: Cash and cash equivalents |
||
Cash on hand or on deposit |
410 |
3,057 |
Total cash and cash equivalents |
410 |
3,057 |
3B: Trade and other receivables |
||
Goods and services receivables |
||
Goods and services |
122 |
21 |
Total goods and services receivables |
122 |
21 |
Appropriations receivables |
||
Appropriation receivable—existing programs |
15,903 |
14,742 |
Total appropriations receivables |
15,903 |
14,742 |
Other receivables |
||
Cash held by salary packaging providers |
34 |
37 |
GST input credits receivable |
38 |
38 |
Total other receivables |
72 |
75 |
Total trade and other receivables (gross) |
16,097 |
14,837 |
Less impairment allowance |
- |
- |
Total trade and other receivables (net) |
16,097 |
14,837 |
3C: Other investments |
||
Deposits1 |
2,546 |
- |
Total other investments |
2,546 |
- |
1. The department has a one-year term deposit of $2,546,108. The interest rate is 2.55%. The maturity date of the term deposit is 20/07/2018. The department intends to roll over the investment on maturity. The source of the deposit was the former Inter-parliamentary Relations Special Account which was subject to a sun-setting provision. The balance of the account was invested after the release of a new delegation from the Finance Minister in July 2017. |
Accounting policy
Financial assets
Financial assets are assessed for impairment at the end of each reporting period.
Note 4: Non-financial assets
4A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles |
||||
Heritage and cultural1 |
Property, plant and equipment |
Computer software2 |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
|
As at 1 July 2017 |
||||
Gross book value |
419 |
7,883 |
3,671 |
11,972 |
Accumulated depreciation, amortisation and impairment |
- |
(437) |
(1,896) |
(2,332) |
Total as at 1 July 2017 |
419 |
7,446 |
1,775 |
9,640 |
Additions |
||||
Purchase |
- |
1,333 |
33 |
1,366 |
Depreciation and amortisation |
- |
(532) |
(441) |
(973) |
Disposals |
||||
Transfer of assets to DPS3 |
- |
(1) |
(1,164) |
(1,165) |
Other |
- |
(21) |
- |
(21) |
Total as at 30 June 2018 |
419 |
8,225 |
203 |
8,847 |
Total as at 30 June 2018 represented by |
||||
Gross book value |
419 |
9,188 |
950 |
10,557 |
Accumulated depreciation, amortisation and impairment |
- |
(963) |
(747) |
(1,710) |
Total as at 30 June 2018 |
419 |
8,225 |
203 |
8,847 |
1. Other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class. |
||||
2. The carrying amount of computer software included $36,245 (2017: $18,804) of purchased software and $167,210 (2017: $1,756,586 ) of internally generated software. |
||||
3. On 1 March 2018 and 1 June 2018 the department transferred assets to the Department of Parliamentary Services as part of the consolidation of ICT across the parliamentary departments. The total net book value by class of the transfers is as follows: |
Accounting policy
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, which are expensed in the year of acquisition (other than where they form part of a group of similar items that 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.
Revaluations
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 did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are 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 entity 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:
2018 |
2017 |
|
Property, plant and equipment |
5 to 50 years |
5 to 50 years |
The entity has items of property, plant and equipment that are heritage and cultural assets that are not depreciated.
Impairment
All assets were assessed for impairment at 30 June 2018. 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 entity 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.
Accounting policy
Heritage and cultural assets
The department has the following heritage and cultural assets with an aggregated fair value of $419,000 (2017: $419,000).
- Mace—Garrard Engraved Silver
- Despatch Boxes (2) Rosewood with silver and enamel embossing
- Yirrkala Bark Petition 14 Aug 1963, Wood Bark 59.1cm x 33.2cm
- Yirrkala Bark Petition 28 Aug 1963, Wood Bark 49.1cm x 30cm
- Yirrkala Bark Petition 8 Oct 1968, Wood Bark 59.1cm x 34cm
- Ritual Stick—Yirrkala People 1976, Wood Feathers 47.1cm x 24.2cm
The department has classified these items as heritage and cultural assets as they are primarily used for purposes that relate to their heritage value and cultural significance.
Intangibles
The entity’s intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the entity’s software are 2 to 13 years (2017: 2 to 13 years).
All software assets were assessed for indications of impairment as at 30 June 2018.
Note 4 (continued)
2018 |
2017 |
|
$’000 |
$’000 |
|
4B: Inventories |
||
Inventories held for sale |
||
Finished goods |
13 |
13 |
Total inventories held for sale |
13 |
13 |
Total inventories |
13 |
13 |
During 2018, $2,532 of inventory held for sale was recognised as an expense (2017: $2,745). |
||
No items of inventory were recognised at fair value less cost to sell. |
||
4C: Other non-financial assets |
||
Prepayments |
197 |
156 |
Total other non-financial assets |
197 |
156 |
No indicators of impairment were found for other non-financial assets. |
Accounting policy
Inventories held for sale are valued at the lower of cost and net realisable value. Inventories held for distribution are valued at cost, adjusted for any loss of service potential. Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.
Note 5: Payables
2018 |
2017 |
|
$’000 |
$’000 |
|
5A: Suppliers |
||
Trade creditors and accruals |
340 |
286 |
Total suppliers |
340 |
286 |
Settlement was usually made within 30 days. |
||
5B: Other payables |
||
Salaries and wages |
131 |
101 |
Superannuation |
23 |
22 |
Salary sacrifice payable |
34 |
37 |
Unearned income1 |
191 |
682 |
Input tax credit (GST) payment to the ATO |
0 |
1 |
Other payables |
117 |
- |
Total other payables |
496 |
843 |
1. Unearned income relates to payments from Department of Foreign Affairs (DFAT) (AusAID) funding for Pacific Parliamentary Development programs. Payment is made in advance of work being performed, and unspent funds are acquitted to DFAT. |
People and relationships
Note 6: Employee provisions
2018 |
2017 |
|
$’000 |
$’000 |
|
6A: Employee provisions |
||
Leave |
6,016 |
6,310 |
Total employee provisions |
6,016 |
6,310 |
Employee provisions expected to be settled |
||
No more than 12 months |
1,720 |
1,543 |
More than 12 months |
4,296 |
4,767 |
Total employee provisions |
6,016 |
6,310 |
Accounting policy
Liabilities for short-term employee benefits and termination benefits expected within 12 months of the end of the reporting period are measured at their nominal amounts. Other long-term employee benefits are measured as 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 entity’s employer superannuation contribution rates and additional oncosts (annual leave and long-service leave) 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 the short-hand method as at 30 June 2018. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation
Superannuation
The department’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds held outside the Australian Government.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.
The department makes employer contributions to the employee’s defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the government. The entity 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 Clerk of the House, Deputy Clerk of the House and three Clerk Assistants and the Serjeant-at-Arms. Key management personnel remuneration is reported in the table below:
2018 |
2017 |
|
$’000 |
$’000 |
|
Short-term employee benefits |
||
Salary |
1,325 |
1,269 |
Motor vehicle allowance |
106 |
75 |
Total short-term employee benefits |
1,431 |
1,344 |
Post-employment benefits |
||
Superannuation |
238 |
201 |
Total post-employment benefits |
238 |
201 |
Other long-term employee benefits |
||
Annual leave |
103 |
93 |
Long-service leave |
31 |
30 |
Total other long-term employee benefits |
134 |
123 |
Total key management personnel remuneration expenses |
1,803 |
1,668 |
The total number of key management personnel that are included in the above table is 6 (2017: 7). |
Note 8: Related party disclosures
Transactions with related parties |
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions are not considered to be related party transactions. |
The department transacts with other Australian Government controlled entities consistent with normal day-to-day business operations provided under normal terms and conditions, including the payment of workers compensation and insurance premiums, transactions between the other Parliamentary Departments and Department of Finance. These are not considered individually significant to warrant separate disclosure as related party transactions. Refer to Note 1A Employee Benefits for details on superannuation arrangements with the Commonwealth. |
Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the department, it has been determined that there are no related party transactions to be separately disclosed. |
Funding
This section identifies the Department of the House of Representatives funding structure.
Note 9: Appropriations
Annual appropriations for 2018 |
|||||
Appropriation Act |
PGPA Act |
Total appropriation |
Appropriation applied in 2018 |
Variance2 |
|
Annual Appropriation1 |
Section 74 receipts |
||||
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Departmental |
|||||
Operating budget |
24,242 |
476 |
24,718 |
(23,557) |
1,162 |
Capital budget |
640 |
- |
640 |
(640) |
- |
Total departmental |
24,882 |
476 |
25,358 |
(24,197) |
1,162 |
Administered |
|||||
Operating budget |
320 |
- |
320 |
(312) |
8 |
Total administered |
320 |
- |
320 |
(312) |
8 |
1. In 2017–18, there were no appropriations subject to quarantine and no reductions. The departmental and administered appropriation ceases to be in force on 1 July 2020. |
|||||
Annual appropriations for 2017 |
|||||
Appropriation Act |
PGPA Act |
Total appropriation |
Appropriation applied in 2017 (current and prior years) |
Variance3 |
|
Annual appropriation1 |
Section 74 receipts2 |
||||
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Departmental |
|||||
Operating Budget |
24,159 |
3,576 |
27,735 |
(24,794) |
2,941 |
Capital Budget |
642 |
- |
642 |
(642) |
- |
Total departmental |
24,801 |
3,576 |
28,377 |
(25,436) |
2,941 |
Administered |
|||||
Operating Budget |
322 |
- |
322 |
(298) |
24 |
Total administered |
322 |
- |
322 |
(298) |
24 |
1. In 2016–17, there were no appropriations subject to quarantine and no reductions. The departmental and administered appropriation ceases to be in force on 1 July 2019. |
Note 10: Unspent annual appropriations (‘recoverable GST exclusive’)
2018 |
2017 |
||
$’000 |
$’000 |
||
Departmental |
|||
Appropriation (Parliamentary Departments) Act (No. 1) 2013–14 |
- |
80 |
|
Appropriation (Parliamentary Departments) Act (No. 1) 2016–17 |
- |
14,742 |
|
Appropriation (Parliamentary Departments) Act (No. 1) 2016–17 |
- |
3,057 |
|
Appropriation (Parliamentary Departments) Act (No. 1) 2017-18 |
15,903 |
- |
|
Appropriation (Parliamentary Departments) Act (No. 1) 2017-18 |
410 |
- |
|
Total departmental |
16,313 |
17,879 |
|
Administered |
|||
Appropriation (Parliamentary Departments) Act (No. 1) 2016-17 |
- |
26 |
|
Appropriation (Parliamentary Departments) Act (No. 1) 2017-18 |
34 |
- |
|
Total administered |
34 |
26 |
Note 11: Disclosures by agent in relation to special appropriations (‘recoverable GST exclusive’)
Department of Finance |
Australian Public Service Commission |
||
2018 |
$'000 |
$'000 |
|
Total receipts |
27,948 |
19,637 |
|
Total payments |
27,948 |
19,637 |
|
Department of Finance |
Australian Public |
||
2017 |
$'000 |
$'000 |
|
Total receipts |
7,890 |
39,641 |
|
Total payments |
7,890 |
39,641 |
|
Throughout the financial year, the department made payments via special appropriations in accordance with third party access agreements with the Department of Finance (DoF) and the Australian Public Service Commission (APSC). These agreements facilitate payments under the following Acts for the purposes described: |
|||
Australian Public Service Commission |
|||
Remuneration Tribunal Act 1973—For the purposes necessary to administer section 7(13) in relation to payment of Members' salaries, remuneration and other allowances referred to in determinations made from time to time by the Remuneration Tribunal. |
|||
Department of Finance |
|||
Parliamentary Entitlements Act 1990—For the purposes necessary to administer section 11 of the Act in relation to the transfer of bulk papers and printing and communications entitlement (in respect of postage only). |
|||
Parliamentary Superannuation Act 2004 - For the purposes necessary to administer the special appropriation in section 18 of the Act. |
|||
Commonwealth of Australia Constitution Act—For the purposes necessary to administer the special appropriation in section 66 of the Act. |
|||
Parliamentary Business Resources Act 2017—For the appropriation in section 59 of the Parliamentary Business Resources Act 2017 (PBR Act) |
|||
The Parliamentary Business Resources Act 2017 came into effect on 1 January 2018. This replaced the Department's special appropriation arrangements under the Parliamentary Entitlements Act 1990 and the Remuneration Tribunal Act 1973. As a result of this the Department ceased to make third party special appropriation payments on behalf of the Australian Public Service Commission as at 31 December 2017. |
Note 12: Special account
Inter-Parliamentary Relations Special Account (Departmental) |
||
2018 |
2017 |
|
$'000 |
$'000 |
|
Balance brought forward from previous period |
- |
2,560 |
Increases |
- |
51 |
Total increases |
- |
51 |
Available for payments |
- |
2,611 |
Decreases |
||
Departmental |
(2,611) |
|
Total departmental |
- |
(2,611) |
Total decreases1 |
- |
(2,611) |
Total balance carried to the next period |
- |
- |
Balance represented by: |
||
Cash held in entity bank accounts |
- |
- |
Cash held in the Official Public Account |
- |
- |
1. The special account became subject to sun-setting provisions during the 2016 – 17 financial year. |
Note 13: Net cash appropriation arrangements
2018 |
2017 |
|
$’000 |
$’000 |
|
Total comprehensive income/(loss) less depreciation/amortisation expenses previously funded through revenue appropriations |
2,490 |
3,208 |
Plus: depreciation/amortisation expenses previously funded through revenue appropriation |
(972) |
(909) |
Total comprehensive income/(loss)—as per the Statement of Comprehensive Income |
1,518 |
2,299 |
Managing uncertainties
This section analyses how the Department of the House of Representatives manages financial risks within its operating environment.
Note 14: Financial instruments
2018 |
2017 |
|
$’000 |
$’000 |
|
Categories of Financial instruments |
||
Financial Assets |
||
Held-to-maturity investments |
||
Term deposit |
2,546 |
- |
Total held-to-maturity investments |
2,546 |
- |
Loans and receivables |
||
Cash and cash equivalents |
410 |
3,057 |
Trade and other receivables |
157 |
58 |
Total loans and receivables |
567 |
3,115 |
Total financial assets |
3,113 |
3,115 |
Financial liabilities |
||
Financial liabilities measured at amortised cost |
||
Suppliers |
340 |
286 |
Other payables |
191 |
682 |
Total financial liabilities measured at amortised cost |
531 |
968 |
Total financial liabilities |
531 |
968 |
Accounting policy
Financial assets
The department classifies its financial assets in the following categories:
a) financial assets at fair value through profit or loss
b) held-to-maturity investments
c) loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Effective interest method
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at the carrying amount less impairment.
Impairment of financial assets
Financial assets are assessed for impairment at the end of each reporting period.
Financial liabilities
Supplier and other payables are recognised at amortised cost and consist of trade creditors, accruals and unearned income.
Fair value
The fair value of the department’s financial assets and the liabilities equal the carrying amount in the current and preceding financial year.
Note 15: Fair value
Fair value measurements at |
||
2018 |
2017 |
|
$'000 |
$'000 |
|
Non-financial assets1 |
||
Property, plant and equipment 2 |
8,225 |
7,446 |
Heritage and cultural 2 |
419 |
419 |
1. The department's assets are held for operational purposes and not held for the purposes of deriving profit. The current use of all non financial assets is considered their highest and best use |
||
2. The department did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2018. |
Accounting policy
The department tests the procedures of the valuation model as an asset materiality review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. For the period ended 30 June 2018, the department engaged JLL Public Sector Valuations Pty Ltd (JLL) to undertake a materiality review of all plant and equipment assets and confirm that the models developed comply with AASB 13. The materiality assessment carried out by JLL determined that there was no material difference between the carrying values of assets and the fair value of assets.
Expenses administered on behalf of government
This section analyses the activities that the Department of the House of Representatives does not control but administers on behalf of government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.
Note 16: Administered expenses
2018 |
2017 |
|
$'000 |
$'000 |
|
Suppliers |
||
Goods and services supplied or rendered |
||
Hospitality services |
313 |
324 |
Total goods and services supplied or rendered |
313 |
324 |
Total suppliers |
313 |
324 |
Assets and liabilities administered on behalf of government
Note 17: Administered financial assets
2018 |
2017 |
|
$’000 |
$’000 |
|
Trade and other receivables |
||
Other receivables |
||
GST receivable from the Australian Taxation Office |
2 |
4 |
Total other receivables |
2 |
4 |
Total trade and other receivables |
2 |
4 |
Trade and other receivables expected to be recovered |
||
No more than 12 months |
2 |
4 |
Trade and other receivables aged as follows |
||
Not overdue |
2 |
4 |
Total trade and other receivables |
2 |
4 |
The only receivable is GST receivable. There was no impairment allowance. |
Note 18: Administered payables
2018 |
2017 |
|
$’000 |
$’000 |
|
18A: Suppliers |
||
Trade creditors and accruals |
27 |
26 |
Total suppliers |
27 |
26 |
Suppliers expected to be settled |
||
No more than 12 months |
27 |
26 |
Total suppliers |
27 |
26 |
Settlement was usually within 30 days |
||
18B: Other payables |
||
GST appropriation payable to the official public account |
2 |
4 |
Total other payables |
2 |
4 |
Other payables expected to be settled |
||
No more than 12 months |
2 |
4 |
Total other payables |
2 |
4 |
Note 19: Administered financial instruments
2018 |
2017 |
|
$’000 |
$’000 |
|
Categories of financial instruments |
||
Financial liabilities |
||
Financial liabilities measured at amortised cost |
||
Trade creditors |
27 |
26 |
Total financial liabilities measured at amortised cost |
27 |
26 |
Total financial liabilities |
27 |
26 |
Major budget variances
This section provides explanations for major budget variances between the department’s budget and actual results for the year ended 30 June 2018.
Note 20: Departmental budget variances commentary
Explanations of major variances |
Affected statements and line items |
|
Employee benefits |
||
Employee benefits were lower than originally budgeted as a number of positions remained vacant throughout the reporting period due to delays in recruitment processes. This resulted in a lower average staffing level than was budgeted. In addition original budgets predicted the new enterprise agreement and resultant payrise would come into effect prior to the commencement of the financial year, however the agreement was not enacted until December 2017. |
Statement of Comprehensive Income: |
|
>> Employee benefits expense |
||
Statement of Financial Position: |
||
>> Employee provisions |
||
>> Trade and other receivables (in respect of undrawn appropriation) |
||
Cash Flow Statement: |
||
>> Operating cash used—employees |
||
>> Operating cash received—appropriations |
||
Travel expenses and parliamentary capacity programs expenses and revenue |
||
Travel expenses are driven by activities carried out in support of the parliament and its committees. During the reporting period there was less requirement to travel across committees and the International Parliamentary Relations office than was forecast. In addition, the work on the parliamentary capacity–building program in Fiji was delayed and consequently the contract was extended resulting in budgeted expenditure being held over until after the completion of the reporting period. Work in support of the Pacific Women's Parliamentary Partnerships program was completed under budget and excess funds were returned to DFAT. |
Statement of Comprehensive Income: |
|
>> Suppliers expense |
||
>> Other revenue |
||
Statement of Financial Position: |
||
>> Other payables (unearned income) |
||
Cash Flow Statement: |
||
>> Operating cash used—suppliers |
||
>> Operating cash received—appropriations |
||
>> Operating cash received—Revenue from external sources |
||
Transfer of assets to DPS |
||
During the reporting period the department transferred computer software assets to DPS under an arrangement to consolidate information and communications technology assets across the parliament. This transfer was not known at the time of budgeting. |
Statement of Financial Position: |
|
>> Computer software |
||
Statement of Changes in Equity |
||
>> Contributed equity—Transactions with owners |
||
Furniture project |
||
Expenditure on the department's furniture replacement project was less than budgeted due to the utilisation of bulk purchasing arrangements resulting in lower per item cost. |
Statement of Financial Position: |
|
>> Non financial assets—plant and equipment |
||
Cash Flow Statement: |
||
>> Investing cash used—Purchase of property, plant and equipment |
||
Visit
https://www.transparency.gov.au/annual-reports/department-house-representatives/2018/part-4-financial-statements/notes-financial