Department of the Prime Minister and Cabinet
Independent Auditor's Report
Statement by the Secretary and Chief Financial Officer
Statement of Comprehensive Income
2019 |
2018 |
Original budget |
||
Notes |
$'000 |
$'000 |
$'000 |
|
NET COST OF SERVICES |
||||
Expenses |
||||
Employee benefits |
264,619 |
267,962 |
275,757 |
|
Suppliers |
156,308 |
178,927 |
141,578 |
|
Grants |
7,208 |
1,224 |
402 |
|
Depreciation and amortisation |
21,804 |
18,408 |
18,763 |
|
Finance costs |
7 |
10 |
13 |
|
Impairment loss allowance on financial instruments |
151 |
16 |
- |
|
Write-down and impairment of other assets |
5,376 |
6,705 |
- |
|
Losses from asset sales |
42 |
117 |
- |
|
Total expenses |
455,515 |
473,369 |
436,513 |
|
Own-source income |
||||
Own-source revenue |
||||
Rendering of services |
19,078 |
16,726 |
14,333 |
|
Resources received free of charge |
4,554 |
9,566 |
- |
|
Total own-source revenue |
23,632 |
26,292 |
14,333 |
|
Gains |
||||
Other gains |
99 |
5,633 |
2,627 |
|
Total gains |
99 |
5,633 |
2,627 |
|
Total own-source income |
23,731 |
31,925 |
16,960 |
|
Net cost of services |
431,784 |
441,444 |
419,553 |
|
Revenue from Government - departmental appropriations |
404,857 |
417,447 |
400,790 |
|
Deficit |
(26,927) |
(23,997) |
(18,763) |
|
OTHER COMPREHENSIVE INCOME |
||||
Items not subject to subsequent reclassification to net cost of services |
||||
Changes in asset revaluation surplus |
2,818 |
(823) |
- |
|
Total comprehensive loss |
(24,109) |
(24,820) |
(18,763) |
The above statement should be read in conjunction with the accompanying notes.
Statement of Financial Position
2019 |
2018 |
Original budget |
||
Notes |
$'000 |
$'000 |
$'000 |
|
ASSETS |
||||
Financial assets |
||||
Cash and cash equivalents |
2,160 |
1,910 |
2,976 |
|
Trade and other receivables |
96,994 |
96,643 |
102,910 |
|
Accrued revenue - recovery of departmental costs |
1,876 |
4,056 |
3,793 |
|
Total financial assets |
101,030 |
102,609 |
109,679 |
|
Non-financial assets |
||||
Property, plant and equipment |
117,584 |
110,739 |
127,231 |
|
Intangibles |
34,713 |
30,372 |
28,000 |
|
Prepayments |
7,650 |
4,573 |
5,039 |
|
Total non-financial assets |
159,947 |
145,684 |
160,270 |
|
Assets held for sale - land and buildings |
1,012 |
1,825 |
250 |
|
Total assets |
261,989 |
250,118 |
270,199 |
|
LIABILITIES |
||||
Payables |
||||
Trade creditors and accruals |
19,035 |
22,709 |
25,082 |
|
Grants - non-profit organisations |
- |
232 |
303 |
|
Other payables |
43,135 |
36,299 |
39,535 |
|
Total payables |
62,170 |
59,240 |
64,920 |
|
Provisions |
||||
Employee provisions |
86,197 |
78,629 |
78,448 |
|
Make good provisions |
642 |
645 |
1,102 |
|
Total provisions |
86,839 |
79,274 |
79,550 |
|
Total liabilities |
149,009 |
138,514 |
144,470 |
|
Net assets |
112,980 |
111,604 |
125,729 |
|
EQUITY |
||||
Contributed equity |
221,226 |
195,741 |
213,269 |
|
Accumulated deficit |
(116,824) |
(89,897) |
(94,123) |
|
Reserves |
8,578 |
5,760 |
6,583 |
|
Total equity |
112,980 |
111,604 |
125,729 |
The above statement should be read in conjunction with the accompanying notes.
Statement of Changes in Equity
2019 |
2018 |
Original budget |
|
$'000 |
$'000 |
$'000 |
|
CONTRIBUTED EQUITY |
|||
Opening balance |
|||
Balance carried forward from previous period |
195,741 |
173,209 |
192,014 |
Adjustment for changes in accounting policies |
(584) |
- |
- |
Adjusted opening balance |
195,157 |
173,209 |
192,014 |
Transactions with owners |
|||
Distributions to owners |
|||
Returns of capital: |
|||
Restructuring1 |
- |
127 |
- |
Other |
- |
- |
818 |
Contributions by owners |
|||
Appropriation (equity injection) |
8,273 |
11,694 |
8,273 |
Departmental Capital Budget (DCB) |
17,796 |
10,711 |
12,164 |
Total transactions with owners |
26,069 |
22,532 |
21,255 |
Closing balance as at 30 June |
221,226 |
195,741 |
213,269 |
ACCUMULATED DEFICIT Opening balance Balance carried forward from previous period |
(89,897) |
(65,900) |
(75,025) |
Adjusted opening balance |
(89,897) |
(65,900) |
(75,025) |
Comprehensive income |
|||
Deficit for the period |
(26,927) |
(23,997) |
(18,763) |
Total comprehensive income |
(26,927) |
(23,997) |
(18,763) |
Transactions with owners |
|||
Distributions to owners |
|||
Returns of capital: |
|||
Distribution of equity |
- |
- |
2,536 |
Other |
- |
- |
(2,871) |
Total transactions with owners |
- |
- |
(335) |
Closing balance as at 30 June |
(116,824) |
(89,897) |
(94,123) |
ASSET REVALUATION RESERVE |
|||
Opening balance |
|||
Balance carried forward from previous period |
5,760 |
6,583 |
6,583 |
Adjusted opening balance |
5,760 |
6,583 |
6,583 |
Comprehensive income |
|||
Other comprehensive income |
2,818 |
(823) |
- |
Total comprehensive income |
2,818 |
(823) |
- |
Closing balance as at 30 June |
8,578 |
5,760 |
6,583 |
TOTAL EQUITY |
|||
Opening balance |
|||
Balance carried forward from previous period |
111,604 |
113,892 |
123,572 |
Adjustment for changes in accounting policies |
(584) |
||
Adjusted opening balance |
111,020 |
113,892 |
123,572 |
Comprehensive income |
|||
Other comprehensive income |
2,818 |
(823) |
- |
Deficit for the period |
(26,927) |
(23,997) |
(18,763) |
Total comprehensive income |
(24,109) |
(24,820) |
(18,763) |
Transactions with owners |
|||
Distributions to owners |
|||
Returns of capital: |
|||
Distribution of equity |
- |
- |
2,536 |
Restructuring1 |
- |
127 |
- |
Other |
- |
- |
(2,053) |
Contributions by owners |
|||
Appropriation (equity injection) |
8,273 |
11,694 |
8,273 |
Departmental Capital Budget (DCB) |
17,796 |
10,711 |
12,164 |
Total transactions with owners |
26,069 |
22,532 |
20,920 |
Closing balance as at 30 June |
112,980 |
111,604 |
125,729 |
Refer Note 8.2 Restructuring. |
The above statement should be read in conjunction with the accompanying notes.
Accounting Policy Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and 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. Other Distributions to/from Owners The Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. |
Cash Flow Statement
2019 |
2018 |
Original budget |
|
$'000 |
$'000 |
$'000 |
|
OPERATING ACTIVITIES |
|||
Cash received |
|||
Sale of goods and rendering of services |
26,964 |
25,324 |
14,333 |
GST received |
20,546 |
18,892 |
- |
Appropriations |
421,197 |
460,342 |
420,832 |
Total cash received |
468,707 |
504,558 |
435,165 |
Cash used |
|||
Employees |
260,047 |
255,114 |
275,508 |
Suppliers |
167,901 |
200,752 |
142,214 |
Grants Retained receipts transferred to Official Public Account |
7,440 27,889 |
1,295 26,047 |
2,458 16,833 |
Total cash used |
463,277 |
483,208 |
437,013 |
Net cash from / (used by) operating activities |
5,430 |
21,350 |
(1,848) |
INVESTING ACTIVITIES |
|||
Cash received |
|||
Proceeds from sales of property, plant and equipment |
1,238 |
1,019 |
2,500 |
Total cash received |
1,238 |
1,019 |
2,500 |
Cash used |
|||
Purchase of property, plant and equipment |
23,196 |
31,548 |
20,437 |
Purchase of intangibles |
12,803 |
10,809 |
- |
Other investing |
10 |
31 |
- |
Total cash used |
36,009 |
42,388 |
20,437 |
Net cash used by investing activities |
(34,771) |
(41,369) |
(17,937) |
FINANCING ACTIVITIES |
|||
Cash received |
|||
Contributed equity Equity injections |
7,791 |
9,665 |
19,785 |
Departmental capital budget |
21,800 |
9,288 |
- |
Total cash received |
29,591 |
18,953 |
19,785 |
Net cash from financing activities |
29,591 |
18,953 |
19,785 |
Net increase in cash held |
250 |
(1,066) |
- |
Cash and cash equivalents at the beginning of the reporting period |
1,910 |
2,976 |
2,976 |
Cash and cash equivalents at the end of the reporting period |
2,160 |
1,910 |
2,976 |
The above statement should be read in conjunction with the accompanying notes.
Budget commentary
Departmental Budget Variance Commentary: The below table provides commentary for significant variances between PM&C’s original budget estimates, as published in the 2018-19 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. |
|
Explanation of major variances |
Affected line items (and statement) |
Grants: The Data Integration Partnership for Australia Grant and the Future Female Entrepreneurs Program Grant were not included in the 2018-19 original budget. |
Grants - Statement of Comprehensive Income |
Additional taskforces: the ongoing use of taskforces contributed to supplier expenses and own-source revenue (due to seconded employees from other government entities) being higher than budget |
Supplier expense - Statement of Comprehensive Income Resources received free of charge - Statement of Comprehensive Income Payments to suppliers - Cash Flow Statement |
Departmental Capital Budget: Prior year funding was rolled over from 2017-18 to 2018-19 which was agreed by Department of Finance (Finance) but not formally re-appropriated. The funding was not quarantined and PM&C used the funding for approved projects. |
Purchase of Property, Plant and Equipment and Intangibles - Cash Flow Statement |
The above statement should be read in conjunction with the accompanying notes.
Administered Schedule of Comprehensive Income
Original |
||||
Notes |
2019 $'000 |
2018 $'000 |
budget $'000 |
|
NET COST OF SERVICES |
||||
Expenses |
||||
Employee benefits |
1,515 |
1,198 |
918 |
|
Suppliers |
62,011 |
60,648 |
52,084 |
|
Subsidies - Petrol Sniffing Prevention Strategy |
149 |
300 |
1,688 |
|
Grants |
1,281,851 |
1,340,924 |
1,312,337 |
|
Depreciation |
349 |
318 |
349 |
|
Finance costs |
3,878 |
348 |
324 |
|
Impairment loss allowance on financial instruments |
2,091 |
2,814 |
- |
|
Write-down and impairment of other assets |
- |
13 |
- |
|
Payments associated with Land Councils |
181,711 |
147,325 |
127,803 |
|
Payments to Corporate Commonwealth entities and companies |
111,105 |
94,929 |
111,105 |
|
Payments to Indigenous Land and Sea Corporation1 |
53,290 |
52,296 |
53,626 |
|
Mining withholding tax |
7,618 |
6,532 |
- |
|
Total expenses |
1,705,568 |
1,707,645 |
1,660,234 |
|
Income |
||||
Revenue |
||||
Non-taxation revenue |
||||
Interest |
60,702 |
76,888 |
82,023 |
|
Other revenue |
14,463 |
13,264 |
13,632 |
|
Total non-taxation revenue |
75,165 |
90,152 |
95,655 |
|
Total revenue |
75,165 |
90,152 |
95,655 |
|
Gains |
||||
Other gains |
3,237 |
948 |
- |
|
Total gains |
3,237 |
948 |
- |
|
Total income |
78,402 |
91,100 |
95,655 |
|
Net cost of services |
1,627,166 |
1,616,545 |
1,564,579 |
|
Deficit |
(1,627,166) |
(1,616,545) |
(1,564,579) |
|
OTHER COMPREHENSIVE INCOME |
||||
Items not subject to subsequent reclassification to net cost of services |
||||
Changes in asset revaluation reserves |
93,053 |
131,755 |
- |
|
Items subject to subsequent reclassification to net |
||||
cost of services |
||||
Actuarial loss - former Governors-General entitlements |
(3,257) |
(354) |
- |
|
Total other comprehensive income/(loss) |
89,796 |
131,401 |
- |
|
Total comprehensive loss |
(1,537,370) |
(1,485,144) |
(1,564,579) |
1 Payment made from the Aboriginal and Torres Strait Islander Land Account (Special Account). The original budget amount was published in the 2018-19 Portfolio Budget Statement as ‘Other Expenses’
The above statement should be read in conjunction with the accompanying notes.
Administer Schedule of Assets and Liabilities
Original |
||||
Notes |
2019 $'000 |
2018 $'000 |
budget $'000 |
|
ASSETS |
||||
Financial assets |
||||
Cash and cash equivalents |
39,062 |
23,576 |
34,699 |
|
Trade and other receivables |
56,452 |
102,507 |
105,680 |
|
Term deposits |
1,042,500 |
2,798,741 |
3,115,008 |
|
Investments in Corporate Commonwealth entities |
2,427,299 |
2,309,766 |
2,005,762 |
|
Total financial assets |
3,565,313 |
5,234,590 |
5,261,149 |
|
Non-financial assets |
||||
Property, plant and equipment |
50,650 |
50,342 |
51,618 |
|
Prepayments |
3,719 |
3,147 |
1,827 |
|
Total non-financial assets |
54,369 |
53,489 |
53,445 |
|
Total assets administered on behalf of Government |
3,619,682 |
5,288,079 |
5,314,594 |
|
LIABILITIES |
||||
Payables |
||||
Trade creditors and accruals |
8,549 |
3,967 |
6,497 |
|
Grants |
23,964 |
48,197 |
40,791 |
|
Other payables |
2,883 |
1,435 |
782 |
|
Total payables |
35,396 |
53,599 |
48,070 |
|
Provisions |
||||
Employee provisions |
433 |
293 |
260 |
|
Non-cash benefits - former Governors-General |
18,909 |
13,251 |
14,425 |
|
Other provisions |
105 |
105 |
- |
|
Total provisions |
19,447 |
13,649 |
14,685 |
|
Total liabilities administered on behalf of Government |
54,843 |
67,248 |
62,755 |
|
Net assets |
3,564,839 |
5,220,831 |
5,251,839 |
The above statement should be read in conjunction with the accompanying notes.
Administered Budget Commentary
Administered Budget Variance Commentary: The below table provides commentary for significant variances between PM&C’s original budget estimates for administered functions, as published in the 2018-19 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. |
|
Explanation of major variances |
Affected line items (and statement) |
Royalty equivalent income: statutory payments to royalty associations were higher than the original budget due to additional mining royalty equivalent income received by the Aboriginals Benefit Account. 30% of royalty equivalent income received is distributed to relevant Land Councils. |
Payments associated with Land Councils - Administered Schedule of Comprehensive Income |
Corporate Commonwealth Entities: increases to the net asset positions of the Indigenous Land and Sea Corporation and the Indigenous Business Australia is the main reason for investments in Corporate Commonwealth entities being higher than budget. |
Investments in Corporate Commonwealth entities – Statement of Financial Position Changes in asset revaluation reserve – Other comprehensive income |
Aboriginal and Torres Strait Islander Land Account (ATSILA): the balance of the ATSILA special account was transferred from PM&C to the Aboriginal and Torres Strait Islander Land and Sea Future Fund (ATSILSFF) on 1 February 2019, to be managed in the Finance Portfolio. The new Indigenous Land and Sea Corporation Funding Special Account was also established to continue payments to the Indigenous Land and Sea Corporation. |
Interest income – Administered Schedule of Comprehensive Income, Term Deposits – Administered Schedule of Assets and Liabilities and Restructuring – Administered Reconciliation Schedule |
The above statement should be read in conjunction with the accompanying notes.
Administered Reconciliation Schedule
2019 $'000 |
2018 $'000 |
|
Opening assets less liabilities as at 1 July |
5,220,831 |
4,813,353 |
Adjustment for changes in accounting policies |
(3,141) |
- |
Net cost of services |
||
Income |
78,402 |
91,100 |
Expenses |
||
Payments to entities other than Corporate Commonwealth entities and companies |
(1,541,173) |
(1,560,420) |
Payments to Indigenous Land and Sea Corporation |
(53,290) |
(52,296) |
Payments to Corporate Commonwealth entities and companies |
(111,105) |
(94,929) |
Other comprehensive income |
||
Revaluations transferred to reserves |
93,053 |
131,755 |
Actuarial (loss) through equity |
(3,257) |
(354) |
Transfers (to)/from the Australian Government |
||
Appropriation transfers from Official Public Account |
||
Annual appropriation for administered expenses (non-corporate Commonwealth entities and companies) |
1,404,210 |
1,415,282 |
Annual appropriation for payment to Corporate Commonwealth entities and companies |
111,105 |
94,929 |
Special appropriations (non-Corporate Commonwealth entities and companies) |
533,839 |
406,731 |
Special account |
1,433 |
1,617 |
Transfers to Official Public Account |
(181,376) |
(137,955) |
Transfers to Official Public Account Special accounts |
(1,433) |
(1,617) |
Transfer of investment funds to Government1 |
(2,007,609) |
- |
Equity injection to Corporate Commonwealth entities and companies |
24,913 |
23,850 |
Restructuring2 |
- |
89,785 |
Other3 |
(563) |
- |
Closing assets less liabilities as at 30 June |
3,564,839 |
5,220,831 |
1 The Aboriginal and Torres Strait Islander Land Account transferred to the Finance Portfolio on 1 February 2019.
2 Refer Note 8.2 Restructuring.
3 Adjustment to opening balance for reversal of accrued interest.
The above statement should be read in conjunction with the accompanying notes.
Accounting Policy Administered cash transfers to and from the Official Public Account Revenue collected by PM&C for use by the Government rather than for PM&C is administered revenue. Collections are transferred to the Official Public Account (OPA), maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by PM&C on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule. |
Administered Cash Flow Statement
2019 |
2018 |
||
Notes |
$'000 |
$'000 |
|
OPERATING ACTIVITIES |
|||
Cash received |
|||
GST received |
105,868 |
120,323 |
|
Other |
2,599 |
2,065 |
|
Total cash received |
108,467 |
122,388 |
|
Cash used |
|||
Employees |
1,372 |
1,156 |
|
Suppliers |
59,771 |
62,822 |
|
Subsidy payments |
149 |
300 |
|
Grant payments |
1,405,755 |
1,440,193 |
|
Payments to Corporate Commonwealth entities and companies |
111,105 |
94,929 |
|
Payments associated with Land Councils |
181,711 |
147,325 |
|
Payments to Indigenous Land and Sea Corporation |
53,290 |
52,296 |
|
Other |
3,200 |
6,528 |
|
Total cash used |
1,816,353 |
1,805,549 |
|
Net cash used by operating activities |
(1,707,886) |
(1,683,161) |
|
INVESTING ACTIVITIES |
|||
Cash received |
|||
Proceeds from realisation of investments |
2,571,374 |
2,696,110 |
|
Interest on investments and loans |
54,148 |
72,928 |
|
Repayment of loans |
29,660 |
5,381 |
|
Total cash received |
2,655,182 |
2,774,419 |
|
Cash used |
|||
Purchase of property, plant and equipment |
224 |
- |
|
Payments to Corporate Commonwealth entities and companies |
24,913 |
23,850 |
|
Purchase of investments |
2,433,243 |
2,882,741 |
|
Total cash used |
2,458,380 |
2,906,591 |
|
Net cash used by investing activities |
196,802 |
(132,172) |
|
Net decrease in cash held |
(1,511,084) |
(1,815,333) |
|
Cash and cash equivalents at the beginning of the reporting period |
23,576 |
36,072 |
|
Cash from Official Public Account |
|||
Appropriations |
2,074,067 |
1,940,792 |
|
Special Accounts |
1,433 |
1,617 |
|
Total cash from the Official Public Account |
2,075,500 |
1,942,409 |
|
Cash to Official Public Account |
|||
Appropriations |
(181,376) |
(137,955) |
|
Special Accounts |
(1,433) |
(1,617) |
|
Return of investment fund to Government |
(366,122) |
- |
|
Total cash to the Official Public Account |
(548,931) |
(139,572) |
|
Cash and cash equivalents at the end of the reporting period |
39,062 |
23,576 |
The above statement should be read in conjunction with the accompanying notes.
Notes to and forming part of the Financial Statements
Notes to and forming part of the Financial Statements for the period ended 30 June 2019
Overview
- Departmental Financial Performance
- Expenses
- Own-Source Revenue and Gains
- Income and Expenses Administered on Behalf of Government.
- Administered – Expenses
- Administered – Income
- Departmental Financial Position
- Financial Assets
- Non-Financial Assets
- Payables
- Other Provisions
- Assets and Liabilities Administered on Behalf of Government
- Administered – Financial Assets
- Administered – Non-Financial Assets
- Administered – Payables
- Funding
- Appropriations
- Special Accounts
- People
- Employee Provisions
- Key Management Personnel Remuneration
- Related Party Disclosures
- Managing Uncertainties
- Contingent Assets and Liabilities
- Financial Instruments
- Administered – Financial Instruments
- Other Information
- Aggregate Assets and Liabilities
- Restructuring
Overview
Basis of preparation of the financial statements
The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability (PGPA) Act.
The financial statements have been prepared in accordance with:
- Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and
- Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars, and are rounded to the nearest thousand dollars unless otherwise specified.
The Department of the Prime Minister and Cabinet (PM&C) is a not-for-profit entity for the purposes of preparing the financial statements.
Except where stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
Taxation
PM&C is exempt from all forms of taxation except Fringe Benefits Tax (FBT), the Goods and Services Tax (GST) and Mining Withholding Tax (WHT).
New Australian accounting standards
No accounting standard has been adopted earlier than the application date as stated in the standard.
AASB 9 Financial Instruments is applicable to the current reporting period and the financial impact is recorded in the financial statements for the period ended 30 June 2019.
Compliance with statutory conditions for payments from the consolidated revenue fund
During 2018-19 PM&C reviewed its exposure to the risk of not complying with statutory conditions on payments from appropriations, namely section 83 of the Constitution.
The review identified the following technical breach:
- The Aboriginals Benefit Account (ABA) special account – testing of transactions revealed that three payments made from the ABA under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 (the ALRA), contravened section 83 of the Constitution totalling $1.660 million. The payments were a technical contravention, despite the payments having been made in accordance with the requirements of section 64(3) of the ALRA. No overpayments have been recovered through reduction of subsequent payments, therefore the remaining $1.660 million will be offset against future payments. Overpayments from previous years of $0.507 million were partially recovered during the year and the remaining $0.034 million will be offset against future payments.
- Payments are required to be made out of the ABA based on royalties received by the Northern Territory and Australian Governments. The contraventions occur when the royalties upon which the payments were based had been estimated at a value greater than the eventual actual value. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level.
PM&C will continue to monitor its level of compliance with section 83 of the Constitution across all legislation for which it is administratively responsible. Where possible, amendments to legislation will continue to be progressed.
Events after the reporting period
On 26 May 2019, the Prime Minister announced that the Indigenous Affairs Group (IAG), part of PM&C as at 30 June, is to become an Executive Agency in its own right and will be named the National Indigenous Australians Agency (NIAA) from the 1 July 2019. The new agency will be responsible for the following: to lead and coordinate Commonwealth policy development, program design and implementation and service delivery for Aboriginal and Torres Strait Islander people; and to provide advice to the Prime Minister and the Minister for Indigenous Australians on whole-of-government priorities for Aboriginal and Torres Strait Islander people.
On 5 July 2019, the Prime Minister requested the Minister for Finance to amend the Public Governance, Performance and Accountability Rule 2016 (PGPA OPH Rule) to reflect the transfer of responsibility for Old Parliament House from the Communications and the Arts portfolio to the Prime Minister and Cabinet portfolio. This request was agreed to by the Minister for Finance on 14 August 2019.
1. Departmental Financial Performance
This section analyses the financial performance of the Department of the Prime Minister and Cabinet for the period ended 30 June 2019.
1.1 Expenses
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 1.1A: Employee benefits |
||
Wages and salaries |
189,372 |
191,968 |
Superannuation |
||
Defined contribution plans |
18,919 |
18,016 |
Defined benefit plans |
17,006 |
18,515 |
Leave and other entitlements |
33,551 |
30,252 |
Separation and redundancies |
2,705 |
5,576 |
Other |
3,066 |
3,635 |
Total employee benefits |
264,619 |
267,962 |
Note 1.1B: Suppliers |
||
Goods and services supplied or rendered |
||
Consultants, legal, contractors and secondees |
51,817 |
53,304 |
Equipment, repairs and maintenance |
6,583 |
10,929 |
General expenses1 |
12,863 |
14,268 |
Venue hire |
443 |
2,774 |
Office accommodation, facility management and security |
5,826 |
5,879 |
Information, communication and technology |
30,976 |
40,615 |
Travel |
11,020 |
14,250 |
Total goods and services supplied or rendered |
119,528 |
142,019 |
Goods supplied |
7,975 |
13,422 |
Services rendered |
111,553 |
128,597 |
Total goods and services supplied or rendered |
119,528 |
142,019 |
Other suppliers |
||
Operating lease rentals |
34,259 |
34,074 |
Workers compensation expenses |
2,521 |
2,834 |
Total other supplier expenses |
36,780 |
36,908 |
Total suppliers |
156,308 |
178,927 |
Leasing commitments Commitments for minimum lease payments in relation to non-cancellable |
||
operating leases are payable as follows: |
||
Within 1 year |
24,195 |
25,755 |
Between 1 to 5 years |
94,224 |
92,166 |
More than 5 years |
199,819 |
221,175 |
Total operating lease commitments |
318,238 |
339,096 |
Note: Commitments are GST inclusive where relevant.
Operating lease commitments - leases for office accommodation
Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions in the lease agreements.
Operating leases comprise 89 leases for office accommodation (2018: 80).
1 Includes $0.005 million audit fees to the ANAO for the financial statements audit of the Aboriginal and Torres Strait Islander Land Account (ATSILA) (2018: $0.029 million), which is not a resource received free of charge.
Accounting Policy Leases Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. PM&C currently has five (2018: five) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. PM&C has recognised a make good provision to reflect the present value of this obligation. |
Note 1.1C: Losses from asset sales Property, plant and equipment |
2019 $'000 |
2018 $'000 |
Proceeds from sale |
1,238 |
1,019 |
Carrying value of asset sold |
(1,270) |
(1,105) |
Selling expense |
(10) |
(31) |
Total losses from asset sales |
42 |
117 |
Accounting Policy Gains or losses from disposal of assets are recognised when control of the asset has passed to the buyer. |
1.2. Own-Source Revenue and Gains
Own-source revenue |
2019 $'000 |
2018 $'000 |
Note 1.2A: Sale of goods and rendering of services Rendering of services |
19,078 |
16,726 |
Total sale of goods and rendering of services |
19,078 |
16,726 |
Accounting Policy 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 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. 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 at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. |
Note 1.2B: Resources received free of charge |
||
Seconded staff |
4,077 |
9,092 |
Other |
477 |
474 |
Total resources received free of charge |
4,554 |
9,566 |
Accounting Policy 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. |
Note 1.2C: Other gain |
||
Gain on early termination of lease |
80 |
4,944 |
Reversal of previous asset write-down |
9 |
76 |
Reversal of make good provision |
10 |
613 |
Total other gains |
99 |
5,633 |
2. Income and Expenses Administered on Behalf of Government
This section analyses the activities that the Department of the Prime Minister and Cabinet does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.
2.1 Administered – Expenses
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 2.1A: Employee benefits |
||
Wages and salaries superannuation |
1,083 |
851 |
Defined contribution plans |
140 |
93 |
Defined benefit plans |
52 |
40 |
Leave and other entitlements |
240 |
152 |
Separation and redundancies |
62 |
|
Total employee benefits |
1,515 |
1,198 |
Note 2.1B: Suppliers |
||
Goods and services supplied or rendered |
||
Outsourced providers, contractors and consultants |
47,622 |
47,934 |
Equipment, repairs and maintenance |
721 |
830 |
General expenses |
7,455 |
7,707 |
Travel |
2,194 |
3,004 |
Information, communication and technology |
4,006 |
1,159 |
Total goods and services supplied or rendered |
61,998 |
60,634 |
Goods supplied |
1,172 |
626 |
Services rendered |
60,826 |
60,008 |
Total goods and services supplied or rendered |
61,998 |
60,634 |
Other suppliers |
||
Operating lease rentals |
3 |
|
Workers compensation expenses |
13 |
11 |
Total other supplier expenses |
13 |
14 |
Total suppliers |
62,011 |
60,648 |
Leasing commitments |
||
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: |
||
Within 1 year |
229 |
380 |
Between 1 to 5 |
530 |
576 |
More that 5 years |
1,383 |
1,415 |
Total operating lease commitments |
2,142 |
2,371 |
Note: Commitments are GST inclusive where relevant.
Operating leases comprise 12 leases, three for office accommodation for the former Governors-General, one relating to the Indigenous Education (Northern Territory Facilities) program and eight relating to the Children and Schooling program. Lease payments are subject to periodic increase in accordance with the rent review provisions of the lease.
Accounting Policy Leases PM&C administers four (2018: four) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. A make good provision has been raised to reflect the present value of this obligation. |
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 2.1C: Grants |
||
Public sector |
||
Australian Government entities |
87,203 |
100,676 |
Local Governments |
78,052 |
87,893 |
State and Territory Governments |
65,781 |
70,156 |
Private sector |
||
Non-profit organisations |
859,651 |
883,412 |
Commercial entities |
191,164 |
198,787 |
Total grants |
1,281,851 |
1,340,924 |
Program 2.1 - Jobs, Land and Economy Program |
626,083 |
646,114 |
Program 2.2 - Children and Schooling Program |
314,124 |
330,840 |
Program 2.3 - Safety and Wellbeing Program |
246,665 |
258,133 |
Program 2.4 - Culture and Capability Program |
46,438 |
47,756 |
Program 2.5 - Remote Australia Strategy Program |
29,933 |
43,332 |
Program 1.1 - Prime Minister and Cabinet |
18,608 |
14,749 |
Total grants |
1,281,851 |
1,340,924 |
Accounting Policy PM&C administers a number of grants and subsidy schemes on behalf of the Government. Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed; or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. Settlement is made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility. |
Note 2.1D: Payments associated with Land Councils |
||
Payments associated with Land Councils administration |
59,008 |
49,843 |
Land Councils distributions |
122,703 |
97,482 |
Total payments associated with Land Councils |
181,711 |
147,325 |
Note 2.1E: Payments to Corporate Commonwealth entities and companies |
||
Aboriginal Hostels Limited |
36,323 |
36,563 |
Australian Institute of Aboriginal and Torres Strait Islander Studies |
20,388 |
3,249 |
Indigenous Business Australia |
9,762 |
10,133 |
Indigenous Land and Sea Corporation |
8,749 |
8,928 |
Torres Strait Regional Authority |
35,883 |
36,056 |
Total payments to Corporate Commonwealth entities and companies |
111,105 |
94,929 |
Accounting Policy Payments to Corporate Commonwealth entities and companies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of PM&C. The appropriation to PM&C is disclosed in section 5 Funding. |
2.2 Administered – Income
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 2.2A: Interest |
||
Interest on investments |
57,377 |
72,412 |
Interest on loans |
1,153 |
1,513 |
Unwinding of discount on concessional loans |
2,172 |
2,963 |
Total interest |
60,702 |
76,888 |
Note 2.2B: Other revenue |
||
Return of grant funding |
12,118 |
11,372 |
Lease rental income |
2,251 |
1,848 |
Other |
94 |
44 |
Total other revenue |
14,463 |
13,264 |
Accounting Policy All administered revenues relate to ordinary activities performed by PM&C on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity. PM&C oversees distribution or expenditure of the funds as directed. Interest revenue is recognised using the effective interest method. |
3. Departmental Financial Position
This section analyses the Department of the Prime Minister and Cabinet’s assets used to generate financial performance and the operating liabilities incurred as a result. Employee related formation is disclosed in the People section.
3.1 Financial Assets
Note 3.1: Trade and other receivables |
2019 $'000 |
2018 $'000 |
Goods and services receivables |
||
Goods and services |
5,752 |
11,729 |
Total goods and services receivables |
5,752 |
11,729 |
Appropriations receivables |
||
Existing programs |
86,599 |
81,571 |
Total appropriations receivable |
86,599 |
81,571 |
Other receivables |
||
Statutory receivables |
2,471 |
3,449 |
Other |
3,000 |
- |
Total other receivables |
5,471 |
3,449 |
Total trade and other receivables (gross) |
97,822 |
96,749 |
Less impairment loss allowance |
||
Goods and services |
(828) |
(106) |
Total impairment loss allowance |
(828) |
(106) |
Total trade and other receivables (net) |
96,994 |
96,643 |
3.2 Non-Financial Assets
Land1 |
Buildings1 |
Leasehold improvements |
Plant and equipment |
software internally developed |
Computer software purchased |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
|
As at 1 July 2018 |
|||||||
Gross book value |
- |
- |
- |
- |
32,283 |
4,292 |
36,575 |
Fair value |
10,616 |
43,111 |
54,577 |
18,848 |
- |
- |
127,152 |
Work in progress |
- |
103 |
4,002 |
2,483 |
7,247 |
99 |
13,934 |
Accumulated depreciation/amortisation and impairment |
- |
(3,458) |
(12,455) |
(7,088) |
(10,303) |
(3,246) |
(36,550) |
Total as at 1 July 2018 |
10,616 |
39,756 |
46,124 |
14,243 |
29,227 |
1,145 |
141,111 |
Additions |
|||||||
Purchase |
- |
1,236 |
13,703 |
8,257 |
11,323 |
1,479 |
35,998 |
Revaluations and impairments recognised in other comprehensive income |
- |
(445) |
3,789 |
(526) |
- |
- |
2,818 |
Reclassifications |
(280) |
(106) |
(64) |
- |
- |
- |
(450) |
Depreciation and amortisation |
- |
(2,286) |
(7,678) |
(4,578) |
(6,667) |
(595) |
(21,804) |
Write-down and impairments recognised in net cost of services (expense) |
- |
(1,144) |
(1,712) |
(1,321) |
(1,166) |
(33) |
(5,376) |
Total as at 30 June 2019 |
10,336 |
37,011 |
54,162 |
16,075 |
32,717 |
1,996 |
152,297 |
Total as at 30 June 2019 represented by |
|||||||
Gross book value |
- |
- |
- |
- |
29,140 |
3,191 |
32,331 |
Fair value |
10,336 |
42,132 |
55,177 |
23,761 |
- |
- |
131,406 |
Work in progress |
- |
495 |
15,543 |
2,553 |
17,645 |
1,578 |
37,814 |
Accumulated depreciation, amortisation and impairment |
- |
(5,616) |
(16,558) |
(10,239) |
(14,068) |
(2,773) |
(49,254) |
Total as at 30 June 2019 |
10,336 |
37,011 |
54,162 |
16,075 |
32,717 |
1,996 |
152,297 |
1 PM&C has a property portfolio divestment strategy that will result in properties throughout Australia being sold within the next 12 months.
Contractual commitments for the acquisition of property, plant, equipment and intangible assets
Contractual commitments for the acquisition of IT equipment and other capital works of $0.295 million are payable within one year. (2018: $6,529 million).
Accounting Policy Asset recognition threshold Purchases of property, plant and equipment and intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than IT assets 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 ‘make good’ provisions in property leases taken up by PM&C where there exists an obligation to restore the asset to its original condition. These costs are included in the value of PM&C's property, plant and equipment with a corresponding provision for the ‘make good’ recognised. Property, plant and equipment are subsequently measured at fair value. Revaluations Fair values for each class of asset are determined as shown below: |
Asset class Fair value measurement |
Land Market selling price Buildings excluding leasehold improvements Market selling price and depreciated replacement cost Leasehold improvements Depreciated replacement cost Plant and equipment Market selling price and depreciated replacement cost |
PM&C procured valuation services from independent valuation experts and relied on the valuations made by these experts. The experts provided written assurance that the models developed to value assets are in compliance with accounting standards. PM&C tests the procedures of the valuation model as an internal management review at least once every 12 months. PM&C has a rolling revaluation plan in place which ensures all assets are formally revalued at least 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. Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured using the cost (Depreciated Replacement Cost or DRC) approach. Professional judgement has been applied in calculating the consumed economic benefit/asset obsolescence relevant to the asset under construction. All property, plant and equipment assets are valued on a recurring basis except for assets held for sale. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount. Assets held for sale Assets held for sale are measured at the lesser of their carrying amount and fair value less cost to sell and are valued at a non-recurring basis. PM&C is currently marketing five residential properties (staff housing) that are no longer essential for operational requirements. 2019: $1.01 million (2018: $1.825 million). Intangibles PM&C’s intangibles comprise internally developed and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses. Impairment All assets were assessed for impairment during 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. Depreciation/Amortisation Depreciable assets are written-off to their estimated residual values over their estimated useful lives to PM&C 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 asset are based on the following total useful lives for the current and prior reporting periods: Buildings excluding leasehold improvements 3 to 50 years (2018: 3 to 50 years) Leasehold improvements Lease term (2018: Lease term) Plant and equipment 1 to 25 years (2018: 1 to 25 years Intangibles 1 to 5 years (2018: 1 to 5 years) 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 |
3.3 Payables
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 3.3: Other payables |
||
Salaries, wages and superannuation |
1,721 |
1,704 |
Separation and redundancies payable |
292 |
3,314 |
Unearned income |
1,854 |
2,435 |
Lease liability |
14,156 |
10,666 |
Lease incentive |
22,767 |
15,154 |
Other |
2,345 |
3,026 |
Total other payables |
43,135 |
36,299 |
3.4 Make Good Provisions
Make good provision |
Total |
|
$’000 |
$’000 |
|
As at 1 July 2018 |
645 |
645 |
Finance cost |
7 |
7 |
Gain on reversal of provision |
(10) |
(10) |
Total as at 30 June 2019 |
642 |
642 |
Significant accounting judgements and estimates
Provision for the restoration of leased premises (make good) is based on future obligations relating to the underlying assets and is supported by independent qualified valuers’ opinions.
4. Assets and Liabilities Administered on Behalf of Government
This section analyses assets used to generate financial performance and the operating liabilities incurred as a result which the Department of the Prime Minister and Cabinet does not control, but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.
4.1 Administered – Financial Assets
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 4.1A: Cash and cash equivalents |
||
Cash on hand or on deposit |
1,282 |
79 |
Aboriginals Benefit Account - Special Account |
9,154 |
11,212 |
Aboriginal and Torres Strait Islander Land Account - Special Account |
- |
1 |
Cash held in the Official Public Account - Special Account |
28,626 |
12,284 |
Total cash and cash equivalents |
39,062 |
23,576 |
Note 4.1B: Trade and other receivables Goods and services receivables |
||
Goods and services receivable |
16 |
17 |
Total goods and services receivables |
16 |
17 |
Advances and loans |
||
Loans to Australian Government entities |
23,624 |
48,549 |
Total advances and loans |
23,624 |
48,549 |
Other receivables |
||
Statutory receivables |
15,522 |
14,707 |
Interest receivable |
14,685 |
34,243 |
Grants receivable |
23,182 |
21,516 |
Other |
911 |
322 |
Total other receivables |
54,300 |
70,788 |
Total trade and other receivables (gross) |
77,940 |
119,354 |
Less impairment loss allowance |
||
Other receivables |
(21,488) |
(16,847) |
Total impairment loss allowance |
(21,488) |
(16,847) |
Total trade and other receivables (net) |
56,452 |
102,507 |
Accounting Policy Loans Concessional loans are initially recognised at their fair value. If the rate of interest charged is lower than the government bond rate (for government/public sector loans) or the counterparty’s borrowing rate (for non- government loans), the difference between the amortised cost and the fair value of the loan is treated as an expense. Loans to Australian Government entities are made for the period up to 4 years based on current interest rates. Interest is variable and is paid quarterly. |
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 4.1C: Investments in Corporate Commonwealth entities and companies |
||
Equity interest in |
||
Aboriginal Hostels Limited |
149,272 |
149,556 |
Anindilyakwa Land Council |
15,468 |
15,945 |
Australian Institute of Aboriginal and Torres Strait Islander Studies |
41,087 |
37,919 |
Central Land Council |
42,168 |
41,665 |
Indigenous Land and Sea Corporation |
479,132 |
452,005 |
Indigenous Business Australia |
1,499,150 |
1,415,737 |
National Australia Day Council Limited |
797 |
790 |
Northern Land Council |
11,516 |
11,346 |
Outback Stores Pty Ltd |
41,983 |
41,617 |
Tiwi Land Council |
4,704 |
2,796 |
Torres Strait Regional Authority |
85,084 |
83,600 |
Wreck Bay Aboriginal Community Council |
56,938 |
56,790 |
Total investments in Corporate Commonwealth entities and companies |
2,427,299 |
2,309,766 |
All investments in Corporate Commonwealth entities and companies are expected to be recovered in more than 12 months.
Investment in Corporate Commonwealth Entities
The Australian Government holds a 100% equity interest in the following administered investments:
Aboriginal Hostels Limited
Provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network of hostels.
Australian Institute of Aboriginal and Torres Strait Islander Studies
The Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) is a research, collections and publishing organisation that promotes knowledge and understanding of Aboriginal and Torres Strait Islander cultures, traditions, languages and stories, past and present.
Land Councils
The Land Councils include:
- Anindilyakwa Land Council
- Central Land Council
- Northern Land Council
- Tiwi Land Council; and
- Wreck Bay Aboriginal Community Council
The Land Councils represent the Aboriginal people living in the area of the Land Council in the management of Aboriginal land in the area, and in relation to legislation concerning that land. The Land Councils also consult and protect the interests of traditional owners and take measures to assist in the protection of sacred sites in the area of the Land Council. Wreck Bay Aboriginal Community Council holds title to land and provides services to the Aboriginal community of Jervis Bay.
Investment in Commonwealth Entities (continued)
Indigenous Land and Sea Corporation
The Indigenous Land and Sea Corporation provides economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land and fresh water and salt water base.
Indigenous Business Australia
Indigenous Business Australia assists and enhances Aboriginal and Torres Strait Islander self-management and economic self-sufficiency, and aims to advance the commercial and economic interests of Aboriginal and Torres Strait Islander people by accumulating and using a substantial capital asset for their benefit.
National Australia Day Council Limited
Promotes national pride, active citizenship and the observance and celebration of Australia Day; administration of the Australian of the Year awards, which includes awards for the Young Australian of the Year, the Senior Australian of the Year and Australia’s Local Hero; distribution of grants to State and Territory Australia Day Councils; and provision of recommendations and advice to the Australian Government on all matters relating to year-round national pride activities.
Outback Stores Pty Ltd
Outback Stores Pty Ltd improves access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management and support services.
Torres Strait Regional Authority
The Torres Strait Regional Authority formulates, implements and monitors the effectiveness of programs for Aboriginal and Torres Strait Islander people living in the Torres Strait and Northern Peninsula Area.
Accounting Policy Administered investments Administered investments in subsidiaries are not consolidated because their consolidation is relevant only at the whole-of-government level. Administered investments are classified as fair value through other comprehensive income and are measured at their fair value as at 30 June 2019. Fair value has been taken to be the Australian Government's proportional interest in the net assets as advised by the entities as at the end of the reporting period recorded in the latest management accounts or unaudited financial statements provided. |
4.2 Administered – Non Financial Assets
Land |
Buildings |
Leasehold improvements |
Plant and equipment |
Total |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
As at 1 July 2018 |
|||||
Fair value |
44,000 |
5,811 |
97 |
1,095 |
51,003 |
Accumulated depreciation and impairment |
- |
(126) |
(72) |
(463) |
(661) |
Total as at 1 July 2018 |
44,000 |
5,685 |
25 |
632 |
50,342 |
Additions |
|||||
Purchases |
- |
- |
76 |
148 |
224 |
Revaluations recognised in other comprehensive income |
- |
433 |
- |
- |
433 |
Depreciation expenses |
- |
(218) |
(25) |
(106) |
(349) |
Total as at 30 June 2019 |
44,000 |
5,900 |
76 |
674 |
50,650 |
Total as at 30 June 2019 represented by |
|||||
Fair value |
44,000 |
5,900 |
97 |
758 |
50,755 |
Work in progress |
- |
- |
76 |
148 |
224 |
Accumulated depreciation and impairment |
- |
- |
(97) |
(232) |
(329) |
Total as at 30 June 2019 |
44,000 |
5,900 |
76 |
674 |
50,650 |
Accounting Policy Revaluation All buildings, leasehold improvements, plant and equipment assets were formally valued during the year by independent qualified valuers and were assessed for impairment. Depreciation Depreciation rates applying to each class of depreciable asset are based on the following useful lives for the current and prior reporting periods: Buildings excluding leasehold improvements 22 to 30 years (2018: 22 to 30 years Leasehold improvements Lease term (2018: Lease term) Plant and equipment 5 to 114 years (2018: 5 to 114 years) |
4.3 Administered – Payables
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 4.3: Grants |
||
Public sector |
||
Australian Government entities (related parties) |
21 |
17,064 |
Local Governments |
220 |
22 |
State and Territory Governments |
13 |
21,327 |
Private sector |
||
Commercial entities |
236 |
860 |
Non-profit organisations |
23,474 |
8,924 |
Total grants |
23,964 |
48,197 |
All grant payables are expected to be settled in no more than 12 months. |
||
Note 4.3B: Other payables |
||
Office of Township Leasing payables |
1,809 |
1,094 |
Other |
1,074 |
341 |
Total other payables |
2,883 |
1,435 |
All other payables are expected to be settled in no more than 12 months. |
5. Funding
This section identifies the Department of the Prime Minister and Cabinet funding structure.
5.1 Appropriations
2019 $'000 |
2018 $'000 |
|
Ordinary annual services |
||
Annual Appropriation |
||
Operating |
407,376 |
451,886 |
Capital budget |
17,514 |
14,506 |
Section 74 receipts |
27,889 |
26,047 |
Section 75 transfers |
(1,237) |
(11,072) |
Total available appropriation |
451,542 |
481,367 |
Appropriation applied (current and prior years) |
(442,747) |
(470,695) |
Variance |
8,795 |
10,672 |
Opening unspent appropriation balance |
103,374 |
143,464 |
Repeal of Appropriation Acts 2013-14, 2014-15 |
- |
(50,762) |
Repeal of Appropriation Act (No. 1) 2015-16 |
(1,190) |
- |
Closing unspent appropriation balance |
110,979 |
103,374 |
Balance comprises appropriations as follows1: |
||
Appropriation Act (No. 1) 2015-16 |
- |
1,190 |
Appropriation Act (No. 1) 2016-17 |
11,320 |
13,128 |
Appropriation Act (No. 1) 2017-18 cash held by the department |
- |
1,910 |
Appropriation Act (No. 1) 2017-18 - Capital Budget (DCB) - Non Operating |
3,795 |
8,279 |
Appropriation Act (No. 1) 2017-18 |
10,168 |
78,867 |
Appropriation Act (No. 1) 2018-19 |
76,770 |
- |
Appropriation Act (No. 1) 2018-19 - Capital Budget (DCB) - Non Operating |
180 |
- |
Appropriation Act (No. 1) 2018-19 cash held by the department |
2,160 |
- |
Appropriation Act (No. 3) 2018-19 |
6,586 |
- |
Total unspent appropriation - ordinary annual services |
110,979 |
103,374 |
Other services |
||
Annual Appropriation |
||
Equity injections |
8,273 |
11,694 |
Total available appropriation |
8,273 |
11,694 |
Appropriation applied (current and prior years) |
(7,791) |
(9,665) |
Variance |
482 |
2,029 |
Opening unspent appropriation balance |
6,581 |
4,609 |
Repeal of Appropriation Act 1 (No.2) 2014-15 |
- |
(57) |
Closing unspent appropriation balance |
7,063 |
6,581 |
Balance comprises appropriations as follows : |
||
Appropriation Act (No. 2) 2017-18 - Non Operating - Equity Injection |
- |
6,581 |
Appropriation Act (No. 2) 2018-19 - Non Operating - Equity Injection |
7,063 |
- |
Total unspent appropriation - other services |
7,063 |
6,581 |
Total unspent appropriation |
118,042 |
109,955 |
1 The unspent annual appropriation is shown inclusive of Section 51 permanent quarantines against Appropriation Act (No. 1) 2016-17 of $11.320 million, Appropriation Act (No. 1) 2017-18 – Capital Budget – Non Operating of
$3.795 million and Appropriation Act (No. 1) 2017-18 of $10.168 million.
Note 5.1B: Administered annual and unspent appropriations ('recoverable GST exclusive' |
2019 $'000 |
2018 $'000 |
Ordinary annual service |
||
Annual Appropriation |
||
Operating |
1,270,470 |
1,320,644 |
Capital budget |
1,276 |
253 |
Payments to corporate Commonwealth entities/companies |
111,105 |
94,929 |
Section 74 receipts |
4,103 |
5,213 |
Section 75 transfers |
126 |
(19,037) |
Total available appropriation |
1,387,084 |
1,402,002 |
Appropriation applied (current and prior years) |
(1,402,289) |
(1,395,502) |
Variance |
(15,205) |
6,500 |
Opening unspent appropriation balance |
102,254 |
122,651 |
Repeal of Annual Appropriation Acts 2015-16 |
(9,154) |
- |
Repeal of Annual Appropriation Acts 2012-13, 2013-14 and 2014-15 |
- |
(26,897) |
Closing unspent appropriation balance |
77,895 |
102,254 |
Balance comprises appropriations as follows:1 |
||
Appropriation Act (No. 3) 2015-16 |
- |
8,902 |
Appropriation Act (No. 1) 2015-16 - Capital Budget (DCB) - Non Operating |
- |
252 |
Appropriation Act (No. 1) 2016-17 |
39,058 |
39,058 |
Appropriation Act (No. 1) 2016-17 - Capital Budget (DCB) - Non Operating |
146 |
146 |
Supply Act (No. 1) 2016-17 - Capital Budget (DCB) - Non Operating |
12 |
12 |
Appropriation Act (No. 1) 2017-18 |
1,010 |
53,631 |
Appropriation Act (No. 1) 2017-18 - Capital Budget (DCB) - Non Operating |
253 |
253 |
Appropriation Act (No. 1) 2018-19 |
34,654 |
- |
Appropriation Act (No. 1) 2018-19- Capital Budget (DCB) - Non Operating |
863 |
- |
Appropriation Act (No. 3) 2018-19 |
1,709 |
- |
Appropriation Act (No. 1) 2018-19 - Capital Budget (DCB) - Non Operating |
190 |
- |
Total unspent appropriation - ordinary annual services |
77,895 |
102,254 |
Other services |
||
Annual Appropriation |
||
States, ACT, NT and Local government |
6,536 |
7,762 |
Payments to corporate Commonwealth entities/companies |
24,913 |
23,850 |
Total available appropriation |
31,449 |
31,612 |
Appropriation applied (current and prior years) |
(31,449) |
(31,612) |
Variance |
- |
- |
Opening unspent appropriation balance |
- |
23,838 |
Repeal of Annual Appropriation Acts 2013-14 and 2014-15 |
- |
(23,838) |
Closing unspent appropriation balance |
- |
- |
Total unspent appropriation |
77,895 |
102,254 |
Authority |
Appropriation applied |
|
2019 |
2018 |
|
$'000 |
$'000 |
|
Aboriginal Land Rights (Northern Territory) Act 1976 |
430,627 |
338,702 |
Public Governance, Performance and Accountability Act 2013 s.77 |
- |
50 |
Higher Education Support Act 2003 |
69,135 |
67,979 |
Total |
499,762 |
406,731 |
There were no transactions during 2018 and 2019 for special appropriations Indigenous Education (Targeted Assistance) Act 2000, s.13 and Native Title Act 1993, s.54(2).
1 The administered unspent annual appropriation is shown inclusive of Section 51 permanent quarantines against
Appropriation Act (No.1) 2016-17 of $39.058 million, Appropriation Act (No.1) Capital Budget (DCB) 2016-17 of
$0.146 million, Supply Appropriation Act (No.1) Capital Budget (DCB) 2016-17 of $0.012 million, Appropriation Act (No.1) 2017-18 of $1.010 million, Appropriation Act (No.1) Capital Budget (DCB) 2017-18 of $0.253 million and Appropriation Act (No.1) 2018-19 of $2.513 million.
Accounting Policy Revenue from Government - Departmental Amount appropriated for departmental appropriations for the year (adjusted for and formal additions and reductions) are recognised as revenue from Government when PM&C 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. |
5.2 Special Accounts
Services for Other Entities and Trust |
Aboriginals and Torres Strait Islander Corporations |
Indigenous Remote Services Delivery |
Aboriginals and Torres Strait Islander |
|||||||
Moneys1 |
Unclaimed Money Account2 |
Special Account3 |
Aboriginals Benefit Account4 |
Land Account5 |
||||||
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
Balance brought forward from previous period |
1,418 |
- |
981 |
787 |
9,885 |
10,646 |
11,212 |
24,334 |
1 |
1 |
Increases |
||||||||||
Administered |
||||||||||
Appropriation credited to special account |
- |
- |
- |
- |
28,500 |
10,250 |
429,608 |
337,701 |
- |
- |
Investments realised |
- |
- |
- |
- |
- |
- |
853,746 |
691,500 |
1,717,559 |
2,004,610 |
Interest receipts |
- |
- |
- |
- |
- |
- |
20,348 |
17,901 |
32,718 |
- |
Other receipts |
817 |
1,148 |
- |
196 |
1,363 |
940 |
2,394 |
2,222 |
- |
53,095 |
Total increase |
817 |
1,148 |
- |
196 |
29,863 |
11,190 |
1,306,096 |
1,049,324 |
1,750,277 |
2,057,705 |
Available for payments |
2,235 |
1,418 |
981 |
983 |
39,748 |
21,836 |
1,317,308 |
1,073,658 |
1,750,278 |
2,057,706 |
Decreases |
||||||||||
Administered |
||||||||||
Transfers to OPA |
- |
- |
- |
- |
- |
- |
- |
- |
(366,122) |
- |
PGPA Act section 58 investments |
- |
- |
- |
- |
- |
- |
(1,102,500) |
(877,746) |
(1,330,745) |
(2,004,995) |
Payments made |
(371) |
- |
(2) |
(2) |
(13,966) |
(11,951) |
(205,654) |
(184,700) |
(53,411) |
(52,710) |
Total administered decreases |
(371) |
- |
(2) |
(2) |
(13,966) |
(11,951) |
(1,308,154) |
(1,062,446) |
(1,750,278) |
(2,057,705) |
Total decreases |
(371) |
- |
(371) |
(2) |
(13,966) |
(11,951) |
(13,966) |
(1,062,446) |
(1,750,278) |
(2,057,705) |
Total balance carried to the next period |
1,864 |
1,418 |
1,864 |
981 |
25,782 |
9,885 |
25,782 |
11,212 |
- |
1 |
Balance represented by: |
||||||||||
Cash held in entity bank accounts |
- |
- |
- |
- |
- |
- |
9,154 |
11,212 |
- |
1 |
Cash held in the Official Public Account |
1,864 |
1,864 |
979 |
981 |
25,782 |
25,782 |
- |
- |
- |
- |
Total balance carried to the next period |
1,864 |
1,864 |
979 |
981 |
25,782 |
25,782 |
9,154 |
11,212 |
- |
1 |
1 Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: PGPA Act Determination (DPM&C SOETM Special Account 2018).
Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth.
This account is non-interest bearing.
2 Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Corporations (Aboriginal and Torres Strait Islander) Act 2006; section 551-20
Purpose: To administer unclaimed moneys received by the Registrar of Aboriginal and Torres Strait Islander Corporations.
This account is non-interest bearing.
3 Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2010/06
Purpose: To support the implementation of the Remote Service Delivery National Partnership Agreement. It will provide the Australian Government with the capacity to address high priority projects in a timely way and support projects identified through the local implementation planning process.
This account is non-interest bearing.
4 Appropriation: Public Governance, Performance and Accountability Act 2013; section 80
Establishing Instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65 Purpose: For the receipt and disbursement of the equivalent of mining royalty moneys derived from mining operations on Aboriginal land in the Northern Territory.
This account is interest bearing.
5 Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Section 192W of the Aboriginal and Torres Strait Islander Act 2005
Purpose: To provide a secure stream of income to the Indigenous Land and Sea Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base. This account was transferred to the Finance Portfolio in February 2019.
This account is interest bearing.
Indigenous Land and Sea Corporation Funding Special Account
The Indigenous Land and Sea Corporation Funding Special Account is a special account under section 80 of the PGPA Act.
Establishing Instrument: Section 12 of the Aboriginal and Torres Strait Islander Land and Sea Future Fund Act 2018 (ATSILSFF Act).
The new Indigenous Land and Sea Corporation Funding Special Account was established on 1 February 2019 to continue payments to the Indigenous Land and Sea Corporation. There were no transactions credited or debited to the special account during 2019.
Aboriginal Advancement Account
The Aboriginal Advancement Account was established under section 80 of the PGPA Act.
The purpose of the account is for furthering the social and economic advancement of Aboriginal people living in Victoria. There were no transactions credited or debited to the special account during 2018 and 2019.
6. People
This section describes a range of employment and post-employment benefits provided to our people.
6.1. Employee provisions
Note 6.1A: Employee provisions |
2019 $'000 |
2018 $'000 |
Annual leave |
25,953 |
26,445 |
Long service leave |
60,244 |
52,184 |
Total employee provisions |
86,197 |
78,629 |
Accounting policy and significant accounting judgements Employee benefits Liabilities for ‘short-term employee benefits’ and termination benefits due within 12 months of the end of the reporting period are measured at their nominal amounts. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of PM&C is estimated to be less than the annual entitlement for sick 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 PM&C’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 during 2018. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and redundancy A liability is made for separation and redundancy benefit payments. PM&C recognises a liability 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 PM&C's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice. 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. PM&C makes employer contributions to the employees' superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. PM&C 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 for the final fortnight of the year. |
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 6.1B: Administered employee provisions |
||
Annual leave |
174 |
113 |
Long service leave |
259 |
180 |
Total employee provisions |
433 |
293 |
Accounting Policy The expense and liabilities for services rendered by staff employed in the Prime Minister’s Official Establishments and in support of former Governors-General are recognised as administered items. Accounting policies are consistent with those applied to departmental items. |
||
Note 6.1C: Non-cash benefits - former Governors-General benefits |
||
Non-cash benefits - former Governors-General |
18,909 |
13,251 |
Total non-cash benefits - former Governors-General benefits |
18,909 |
13,251 |
Changes in the value of the defined benefit obligations are as follows: |
||
Net liability at 1 July |
13,251 |
13,918 |
Current service cost |
3,547 |
- |
Finance costs |
331 |
348 |
Actuarial losses |
3,257 |
354 |
Benefits paid |
(1,477) |
(1,369) |
Net liability at 30 June |
18,909 |
13,251 |
Principal actuarial assumptions at the reporting date (expressed as weighted averages): |
||
Discount rate at 30 June |
1.25% |
2.50% |
Future salary increases |
3.50% |
3.50% |
Inflation rate |
2.50% |
2.50% |
Rate of expenditure slow down with age |
3.00% |
3.00% |
Accounting Policy Former Governors-General benefits PM&C has responsibility for the administration of non-cash benefits provided to former Governors-General. These entitlements are regarded as post-employment benefits and represent the provision of office facilities, administrative support and transport. The liability for these benefits is calculated annually as the present value of future benefit obligations. Actuarial gains or losses are recognised in equity in the year in which they occur. Interest on the liability is recognised in the surplus/(deficit). Significant accounting judgements and estimates The provision for non-cash former Governors-General entitlements relate to post-employment benefits such as office facilities, administrative support and transport. The future liability for these benefits is based on the actuarial assessment determined by the Australian Government Actuary. |
6.2. Key Management Personnel Remuneration
2019 $'000 |
2018 $'000 |
|
Short-term employee benefits |
4,184 |
3,979 |
Post-employment benefits |
616 |
582 |
Other long-term employee benefits |
211 |
406 |
Total key management personnel remuneration expenses |
5,011 |
4,967 |
The total number of key management personnel included in the above table is 16 (2018: 17). Included in that number is eight staff who worked for the full-year and eight staff who worked a part-year (2018: six and 11).
Key management personnel on acting arrangements are included where the length of the arrangement is longer than two months.
1 Excludes remuneration and other benefits of the PM&C Portfolio Ministers as these are set by the Remuneration Tribunal and are not paid by PM&C.
6.3. Related Party Disclosures
PM&C is an Australian Government controlled entity. Related parties to PM&C are Key Management Personnel including the Portfolio Ministers, and other Australian Government entities. Significant transactions with related parties can include:
- the payments of grants or loans;
- purchases of goods and services;
- asset purchases, sales transfers or leases;
- debts forgiven; and
- guarantees.
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens for example payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been disclosed in this note.
Giving consideration to relationships with related entities, and transactions entered into during the reporting period (including comparative year) by PM&C, it has been determined that there are no related party transactions to be separately disclosed.
7. Managing uncertainties
This section analyses how the Department of the Prime Minister and Cabinet manages financial risks within its operating environment.
7.1. Contingent Assets and Liabilities
Note 7.1A: Contingent assets and liabilities
Unquantifiable contingent liabilities - claims for damages and costs
Claims have been made against the Australian Government by former residents of the Retta Dixon Home in the Northern Territory. These claims are currently being assessed.
Accounting Policy Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant schedules and 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 the probability of settlement is greater than remote. |
Note 7.1B: Administered contingent assets and liabilities
PM&C is not aware of any material administered quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2019.
7.2. Financial Instruments
2019 |
2018 |
|
Note 7.2A: Categories of financial instruments |
$'000 |
$'000 |
Financial assets under AASB 139 |
||
Loans and receivables |
||
Cash and cash equivalents |
- |
1,910 |
Goods and services receivables (net) |
- |
11,623 |
Accrued revenue |
- |
4,056 |
Total loans and receivables |
- |
17,589 |
Total financial assets |
- |
17,589 |
Financial assets under AASB 9 Financial assets at amortised cost |
||
Cash and cash equivalents |
2,160 |
- |
Goods and services receivables (net) |
4,924 |
- |
Accrued revenue |
1,876 |
- |
Total financial assets at amortised cost |
8,960 |
- |
Total financial assets |
8,960 |
- |
Financial liabilities |
||
Financial liabilities measured at amortised cost |
||
Trade creditors and accruals |
19,035 |
22,709 |
Grants |
- |
232 |
Total financial liabilities measured at amortised cost |
19,035 |
22,941 |
Total financial liabilities |
19,035 |
22,941 |
AASB 139 original |
AASB 9 new |
AASB 139 carrying amount at 1 July 2018 |
AASB 9 carrying amount at 1 July 2018 |
||
Financial assets class |
Notes |
classification |
classification |
$'000 |
$'000 |
Cash and cash equivalents |
Loans and receivable |
Amortised Cost |
1,910 |
1,910 |
|
Goods and services receivables (net) |
3.1A |
Loans and receivable |
Amortised Cost |
11,623 |
11,039 |
Accrued revenue |
Loans and receivable |
Amortised Cost |
4,056 |
4,056 |
|
Total financial assets 17,589 |
17,005 |
AASB 139 carrying amount at 1 July |
AASB 9 carrying amount at 1 July |
||
2018 |
Re-measurement |
2018 |
|
Financial assets class |
$'000 |
$'000 |
$'000 |
Financial assets at amortised cost |
|||
Loans and receivable |
|||
Cash and cash equivalents |
1,910 |
- |
1,910 |
Goods and services receivables (net) |
11,623 |
(584) |
11,039 |
Accrued revenue |
4,056 |
- |
4,056 |
Total financial assets |
17,589 |
(584) |
17,005 |
Note 7.2B: Net gains or losses on financial assets |
2019 |
2018 |
Financial assets at amortised cost |
$'000 |
$'000 |
Impairment |
(151) |
(16) |
Reversal of impairment |
9 |
76 |
Net gains/ (losses) on financial assets at amortised cost |
(142) |
60 |
Net gain/ (loss) on financial assets |
(142) |
60 |
Accounting Policy
PM&C first adopted AASB 9 Financial Instruments on 1 July 2018. Upon initial application, financial assets previously recognised as loans and receivables under AASB 139 Financial Instruments were reclassified to financial assets measured at amortised cost. Adjustments to the carrying amounts upon initial application were recognised as adjustments for changes in accounting policies within the opening balance for retained earnings in the statement of changes in equity.
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, the loss allowance is 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 risk has not increased. The simplified approach for trade and contract receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.
Financial liabilities
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).
Financial liabilities are recognised and derecognised upon ‘trade date’. Settlement of supplier payables is usually made within 30 days.
Significant accounting judgements and estimates
The relevant government bond rate has been used to discount non-current liabilities.
7.3. Administered - Financial Instruments
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 7.3A: Categories of financial instruments |
||
Financial assets under AASB 139 |
||
Held-to-maturity investments |
||
Bank term deposits |
- |
2,798,741 |
Total held-to-maturity investments |
2,798,741 |
|
Loans and receivables |
||
Cash and cash equivalents |
- |
23,576 |
Loans to Australian Government entities |
- |
48,549 |
Goods and services receivable |
- |
17 |
Interest receivable |
- |
34,243 |
Grants receivable (net) |
- |
4,669 |
Total loans and receivables |
111,054 |
|
Available for sale financial assets |
||
Administered investments |
- |
2,309,766 |
Total available for sale financial assets |
- |
2,309,766 |
Financial assets under AASB 9 |
||
Financial assets at amortised cost |
||
Bank term deposits |
1,042,500 |
- |
Cash and cash equivalents |
39,062 |
- |
Loans to Australian Government entities |
23,624 |
- |
Goods and services receivable |
16 |
- |
Interest receivable |
14,685 |
- |
Grants receivable (net) |
1,694 |
- |
Total financial assets at amortised cost |
1,121,581 |
- |
Financial assets at fair value through other comprehensive income |
||
Investments in Corporate Commonwealth entities |
2,427,299 |
- |
Total financial assets at fair value through other comprehensive income |
2,427,299 |
|
Total financial assets |
3,548,880 |
5,219,561 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Financial liabilities |
||
Financial liabilities measured at amortised cost |
||
Trade creditors and accruals |
8,549 |
3,967 |
Grants |
23,964 |
48,197 |
Other payables |
1,809 |
1,094 |
Total financial liabilities measured at amortised cost |
34,322 |
53,258 |
Total financial liabilities |
34,322 |
53,258 |
Classification of financial assets on the date of initial application of AASB 9 |
||||
Financial assets class |
AASB 139 original classification |
AASB 9 new classification |
AASB 139 carrying amount at 1 July |
AASB 9 carrying amount at 1 July |
2018 $'000 |
2018 $'000 |
|||
Bank term deposits |
Held-to-maturity investments |
At amortised cost |
2,798,741 |
2,798,741 |
Cash and cash equivalents |
Loans and receivables |
At amortised cost |
23,576 |
23,576 |
Loans to Australian Government entities |
Loans and receivables |
At amortised cost |
48,549 |
48,549 |
Goods and services receivable |
Loans and receivables |
At amortised cost |
17 |
17 |
Interest receivable |
Loans and receivables |
At amortised cost |
34,243 |
34,243 |
Grants receivable (net) |
Loans and receivables |
At amortised cost |
4,669 |
1,528 |
Investments in Corporate Commonwealth entities |
Available for sale financial assets |
FVOCI |
2,309,766 |
2,309,766 |
Total financial assets |
5,219,561 |
5,216,420 |
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 $'000 |
Re-measurement $'000 |
AASB 9 carrying amount at 1 July 2018 $'000 |
Financial assets at amortised cost |
|||
Held to maturity |
|||
Bank term deposits |
2,798,741 |
- |
2,798,741 |
Loans and receivables |
|||
Cash and cash equivalents |
23,576 |
- |
23,576 |
Loans to Australian Government entities |
48,549 |
- |
48,549 |
Goods and services receivable |
17 |
- |
17 |
Interest receivable |
34,243 |
- |
34,243 |
Grants receivable (net) |
4,669 |
(3,141) |
1,528 |
Total financial assets at amortised cost |
2,909,795 |
(3,141) |
2,906,654 |
Financial assets at fair value through other comprehensive income Available-for-sale financial assets Investments in Corporate Commonwealth entities |
2,309,766 |
- |
2,309,766 |
Total fair value through other comprehensive income |
2,309,766 |
- |
2,309,766 |
2019 |
2018 |
|
$'000 |
$'000 |
|
Note 7.3B: Net gains or losses on financial instruments |
||
Financial assets at amortised cost |
||
Interest revenue |
60,702 |
76,888 |
Reversal of impairment |
669 |
948 |
Impairment |
(2,091) |
(2,814) |
Other gains |
2,568 |
- |
Net gains/(losses) on financial assets at amortised cost |
61,848 |
75,022 |
Accounting Policy Financial assets Upon initial application of AASB 9 Financial Instruments, financial assets previously recognised as loans and receivables under AASB 139 Financial Instruments were reclassified to financial assets measured at amortised cost. Adjustments to the carrying amounts upon initial application were recognised as adjustments for changes in accounting policies within the opening balance of assets and liabilities in the administered reconciliation schedule. Term Deposits Investment activities are conducted in accordance with the requirements of section 58 of the PGPA Act. Investments are typically low risk and take the form of term deposits. The duration of the term deposits are usually for a term of three to 12 months. The investment objective of PM&C is to comply with legislative obligations under the PGPA Act and the ALRA. Investment practices are also governed by the investment policy of PM&C, which requires the management of the portfolio to respond to positive investment opportunities in the market so as to achieve the best possible returns for the account within the legislative framework. The investment portfolio and bank accounts are managed to ensure sufficient funds are available for payments as required. The asset allocation of the portfolio as at 30 June 2019 is 100% (2018: 100%) term deposits with Australian banks. Administered Investments Administered investments are classified as fair value through other comprehensive income (FVOCI) and are measured at their fair value as at 30 June 2019. Fair value has been taken to be the Australian Government's proportional interest in the net assets as advised by the entities as at the end of the reporting period recorded in the latest management accounts or unaudited financial statements provided. 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. |
8. Other information
8.1 Aggregate Assets and Liabilities
Note 8.1A: Aggregate Assets and Liabilities |
2019 $'000 |
2018 $'000 |
Assets expected to be recovered in: |
||
No more than 12 months |
108,593 |
105,542 |
More than 12 months |
153,396 |
144,576 |
Total assets |
261,989 |
250,118 |
Liabilities expected to be settled in: |
||
No more than 12 months |
53,943 |
57,944 |
More than 12 months |
95,066 |
80,570 |
Total liabilities |
149,009 |
138,514 |
Note 8.1B: Administered Aggregate Assets and Liabilities |
||
Assets expected to be recovered in: |
||
No more than 12 months |
1,121,520 |
2,396,416 |
More than 12 months |
2,498,162 |
2,891,663 |
Total assets |
3,619,682 |
5,288,079 |
Liabilities expected to be settle in: |
||
No more than 12 months |
35,585 |
55,436 |
More than 12 months |
19,258 |
11,812 |
Total liabilities |
54,843 |
67,248 |
8.2 Restructuring
Restructuring 2019 |
||
National Cyber Security Advisor3 |
Independent National Security Legislation Monitor4 |
|
Australian Signals Directorate |
Attorney-General's Department |
|
$'000 |
$'000 |
|
FUNCTION RELINQUISHED |
||
Assets relinquished |
||
Appropriation receivable |
72 |
227 |
Total assets relinquished |
72 |
227 |
Liabilities relinquished |
||
Employee provisions |
72 |
227 |
Total liabilities relinquished |
72 |
227 |
Net assets relinquished |
- |
- |
National Office of Child Safety (NOCS) |
Indigenous Children and Schooling |
||
Department of Social Services1 |
Department of Education2 |
||
$'000 |
$'000 |
$'000 |
|
FUNCTION ASSUMED |
|||
Assets recognised |
|||
Appropriation receivable |
- |
361 |
67 |
Total assets recognised |
- |
361 |
67 |
Liabilities recognised |
|||
Employee provisions |
- |
361 |
67 |
Total liabilities recognised |
- |
361 |
67 |
Net assets assumed |
- |
- |
- |
Expenses |
|||
Recognised by the receiving entity |
126 |
813 |
293 |
Recognised by the losing entity |
4 |
695 |
- |
Total expenses |
130 |
1,508 |
293 |
1 Responsibility for the NOCS was transferred to PM&C following a decision of the Prime Minister effective 24 January 2019.
2 Responsibility for Indigenous Children and Schooling Program was transferred to PM&C following a decision of the Prime Minister on 3 April 2018.
3 Responsibility for the National Cyber Security Advisor was relinquished to the Australian Signals Directorate in 2017-18 following the Administrative Arrangements Order of 10 May 2018. Funding transfers for this function were finalised in 2018-19 as presented above.
4 Responsibility for the Independent National Security Legislation Monitor was relinquished to the Attorney- General's Department in 2017-18 following the Administrative Arrangements Order of 10 May 2018. Funding transfers for this function were finalised in 2018-19 as presented above.
AIATSIS1 Education $'000 |
Official Establishments2 |
||
Finance $'000 |
Finance $'000 |
||
FUNCTION ASSUMED |
|||
Assets recognised |
|||
Investment in Corporate Commonwealth entities |
39,974 |
- |
- |
Appropriation receivable |
- |
28 |
- |
Property, plant and equipment |
- |
- |
49,811 |
Total assets recognised |
39,974 |
28 |
49,811 |
Liabilities recognised |
|||
Employee provisions |
- |
28 |
- |
Total liabilities recognised |
- |
28 |
- |
Net assets assumed |
39,974 |
- |
49,811 |
Expenses |
|||
Recognised by the receiving entity |
- |
- |
126 |
Recognised by the losing entity |
- |
50 |
219 |
Total expenses |
- |
50 |
345 |
1 The Australian Institute of Aboriginal and Torres Strait Islander Studies (AIATSIS) was transferred into the PM&C Portfolio following the Administrative Arrangements Order of 19 April 2018. As a result, an investment in AIATSIS was transferred from the Department of Education and Training (Education).
2 Official Establishments, ownership and property management of the Prime Minister’s official residences was assumed from the Department of Finance (Finance) during the year following the Administrative Arrangements Order of 30 November 2017.
National policy on cities1 |
Cyber policy and counter terrorism coordination2 |
Intelligence policy3 |
Reducing the burden of Government regulation4 |
Spatial data function5 |
|
DIRDC |
DoHA |
ONI |
DJSB |
DIIS |
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
FUNCTION RELINQUISHED |
|||||
Assets relinquished |
|||||
Appropriation receivable |
1,192 |
1,261 |
430 |
148 |
161 |
Total assets relinquished |
1,192 |
1,261 |
430 |
148 |
161 |
Liabilities recognised |
|||||
Employee provisions |
1,192 |
1,345 |
459 |
162 |
161 |
Total liabilities recognised |
1,192 |
1,345 |
459 |
162 |
161 |
Net assets relinquished |
- |
(84) |
(29) |
(14) |
- |
1 Responsibility for National policy on cities and population was relinquished to the Department of Infrastructure, Regional Development and Cities (DIRDC) following the Administrative Arrangements Order of 20 December 2017.
2 Responsibility for Cyber policy and Counter terrorism co-ordination was relinquished to the Department of Home Affairs (DoHA) following the Administrative Arrangements Order of 20 December 2017.
3 Responsibility for Intelligence Policy was relinquished to the Office of National Intelligence (ONI) following a decision of the Prime Minister, effective 21 August 2017.
4 Reducing the burden of Government regulation was relinquished to the Department of Jobs and Small Business (DJSB) following the Administrative Arrangements Order of 20 December 2017.
5 Responsibility for the spatial data function was transferred to the Department of Industry, Innovation and Science (DIIS) following a decision of the Prime Minister, effective January 2018.
Other functions relinquished
Responsibility for the APS Data Skills and Capability Framework and data platforms was relinquished to the Digital Transformation Agency following a decision of the Prime Minister, effective 31 October 2017. No assets or liabilities were transferred.
Responsibility for the Independent National Security Legislation Monitor was relinquished to the Attorney General's Department following the Administrative Arrangements Order of 10 May 2018. Funding transfers for this function had not been finalised as at 30 June 2018.
Responsibility for the Cyber Security Advisor was relinquished to the Australian Signals Directorate following the Administrative Arrangements Order of 10 May 2018. Funding transfers for this function had not been finalised as at 30 June 2018.
Visit
https://www.transparency.gov.au/annual-reports/department-prime-minister-and-cabinet/reporting-year/2018-2019-35