Go to top of page

Department of the Prime Minister and Cabinet

Independent Auditor's Report

Statement by the Secretary and Chief Financial Officer

Statement of Comprehensive Income

Statement of Comprehensive Income for the period ended 30 June 2019

2019

2018

Original budget

Notes

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee benefits

1.1A

264,619

267,962

275,757

Suppliers

1.1B

156,308

178,927

141,578

Grants

7,208

1,224

402

Depreciation and amortisation

3.2

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

1.1C

42

117

-

Total expenses

455,515

473,369

436,513

Own-source income

Own-source revenue

Rendering of services

1.2A

19,078

16,726

14,333

Resources received free of charge

1.2B

4,554

9,566

-

Total own-source revenue

23,632

26,292

14,333

Gains

Other gains

1.2C

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

Statement of Financial Position as at 30 June 2019

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

3.1

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

3.2

117,584

110,739

127,231

Intangibles

3.2

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

3.3

43,135

36,299

39,535

Total payables

62,170

59,240

64,920

Provisions

Employee provisions

6.1A

86,197

78,629

78,448

Make good provisions

3.4

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

Statement of Changes in Equity for the period ended 30 June 2019

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

Cash Flow Statement for the period ended 30 June 2019

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

Budget Commentary for the period ended 30 June 2019

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

2.1A

1,515

1,198

918

Suppliers

2.1B

62,011

60,648

52,084

Subsidies - Petrol Sniffing Prevention Strategy

149

300

1,688

Grants

2.1C

1,281,851

1,340,924

1,312,337

Depreciation

4.2

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

2.1D

181,711

147,325

127,803

Payments to Corporate Commonwealth entities and companies

2.1E

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

2.2A

60,702

76,888

82,023

Other revenue

2.2B

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

6.1C

(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

Administer Schedule of Assets and Liabilities

Original

Notes

2019

$'000

2018

$'000

budget

$'000

ASSETS

Financial assets

Cash and cash equivalents

4.1A

39,062

23,576

34,699

Trade and other receivables

4.1B

56,452

102,507

105,680

Term deposits

1,042,500

2,798,741

3,115,008

Investments in Corporate Commonwealth entities

4.1C

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

4.2

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

4.3A

23,964

48,197

40,791

Other payables

4.3B

2,883

1,435

782

Total payables

35,396

53,599

48,070

Provisions

Employee provisions

6.1B

433

293

260

Non-cash benefits - former Governors-General

6.1C

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

Administered Reconciliation Schedule for the period ended 30 June 2019

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

4.1A

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

  1. Departmental Financial Performance
    1. Expenses
    2. Own-Source Revenue and Gains
  2. Income and Expenses Administered on Behalf of Government.
    1. Administered – Expenses
    2. Administered – Income
  3. Departmental Financial Position
    1. Financial Assets
    2. Non-Financial Assets
    3. Payables
    4. Other Provisions
  4. Assets and Liabilities Administered on Behalf of Government
    1. Administered – Financial Assets
    2. Administered – Non-Financial Assets
    3. Administered – Payables
  5. Funding
    1. Appropriations
    2. Special Accounts
  6. People
    1. Employee Provisions
    2. Key Management Personnel Remuneration
    3. Related Party Disclosures
  7. Managing Uncertainties
    1. Contingent Assets and Liabilities
    2. Financial Instruments
    3. Administered – Financial Instruments
  8. Other Information
    1. Aggregate Assets and Liabilities
    2. 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
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 amount of revenue, stage of completion and transaction costs incurred can be reliably measured.
  • The probable economic benefits associated with the transaction will flow to PM&C.

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
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
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
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
Note 3.2: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

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
Note 4.2: Reconciliation of the opening and closing balances of property, plant and equipment

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
Note 5.1A: Departmental annual and unspent appropriations ('recoverable GST exclusive')

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

Note 5.1C: Special appropriations ('recoverable GST exclusive')

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

Table 1.13.8.2.1: Classification of financial assets on the date of initial application of AASB 9

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

Table 1.13.8.2.2: Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9

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

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.