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Department of the House of Representatives Annual Report 2017/18

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 operating leases are payable as follows:
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: Intangibles (Computer Software) $1,164,364.57 Property, Plant and Equipment $ 700.26 The assets were transferred to the Department of Parliamentary Services for no consideration, and were recognised as a distribution resulting in a reduction in equity of $1,165,064.83

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 (current and prior years)	Variance²
	Annual Appropriation¹	Section 74 receipts	Total appropriation	Appropriation applied in 2018 (current and prior years)	Variance²
	$'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. 2. The departmental variance relates to: a) lower employee benefits because a number of positions remained vacant throughout the reporting period b) less requirement to travel for the year c) the balance undrawn for accrued expenses payable in 2018–19. The Administered variance relates to balance undrawn for accrued expenses payable in 2018–19.

Annual appropriations for 2017
	Appropriation Act	PGPA Act	Total appropriation	Appropriation applied in 2017 (current and prior years)	Variance³
	Annual appropriation¹	Section 74 receipts²	Total appropriation	Appropriation applied in 2017 (current and prior years)	Variance³
	$'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. 2. The s74 receipts included $2,601,108.47 from the original IPR Special Account on 29 March 2017 when it was subject to sun-setting. 3. The departmental variance relates to the increase in s74 receipts due to the need to recognise the receipt of the special account. The administered variance relates to balance undrawn for accrued expenses payable in 2017–18.

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 – Cash at Bank	-	3,057
Appropriation (Parliamentary Departments) Act (No. 1) 2017-18	15,903	-
Appropriation (Parliamentary Departments) Act (No. 1) 2017-18 – Cash at Bank	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 (third party access)	Australian Public Service Commission (third party access)
2018	$'000		$'000
Total receipts	27,948		19,637
Total payments	27,948		19,637

	Department of Finance (third party access)	Australian Public Service Commission (third party access)
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 the end of the reporting period
	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
		>> 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)
		>> Other payables (unearned income)

		Cash Flow Statement:
		>> Operating cash used—suppliers
		>> Operating cash received—appropriations
		>> Operating cash received—appropriations
		>> Operating cash received—Revenue from external sources
		>> 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
		>> Computer software
		Statement of Changes in Equity
		>> Contributed equity—Transactions with owners
		>> 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
		>> Non financial assets—plant and equipment

		Cash Flow Statement:
		>> Investing cash used—Purchase of property, plant and equipment

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https://www.transparency.gov.au/annual-reports/department-house-representatives/2018/part-4-financial-statements/notes-financial