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Organ and Tissue Authority Annual Report 2018–19

Notes to the financial statements

The following notes support and should be read in conjunction with the Primary financial statements.

Note 1: Departmental financial performance

This section analyses the financial performance of the OTA for the year ended 2019.

Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

Note 1.1: Expenses

	2019	2018
	$	$
1.1A: Employee benefits
Wages and salaries	2,730,034	2,794,391
Superannuation:
Defined benefits plans	250,481	321,733
Defined contribution plans	213,886	215,100
Leave and other entitlements	305,452	430,841
Separation and redundancies	-	-
Other employee expenses	12,657	15,677
Total employee benefits	3,512,510	3,777,742

Accounting policy Accounting policies for employee related expenses is contained in the People and relationships section.

1.1B: Suppliers
Goods and services supplied or rendered
Contractors and consultants	246,767	230,403
Equipment and software	476,887	384,233
Facilities	125,317	91,290
Staff recruitment and training	54,011	45,465
Travel	151,108	149,233
Office supplies and stationery	7,478	4,649
Printing and publishing	27,212	24,300
Resources received free of charge	103,000	86,000
Shared services MoU	252,126	252,610
Other	60,002	30,137
Total goods and services supplied or rendered	1,503,908	1,298,320

Goods supplied	44,862	4,649
Services rendered	1,459,046	1,293,671
Total goods and services supplied or rendered	1,503,908	1,298,320

Other suppliers
Operating lease rentals	437,215	383,752
Workers compensation expenses	30,764	37,841
Total other suppliers	467,979	421,593
Total suppliers	1,971,887	1,719,913

Leasing commitments
The OTA in its capacity as lessee has entered into a new five year non-cancellable operating lease at Childers Street, Canberra
ACT, from 1 December 2018. Lease payments are subject to annual increases in accordance with lease agreements. The OTA no
longer holds a lease for its London Circuit, Canberra ACT accommodation which was included in comparative figures.

The OTA provided an indemnity to the lessors of the OTA's leased premises in relation to all actions, claims, demands, losses, damages, costs and expenses for which the lessor shall, may or does become liable. These can arise from the negligent use by the lessee of water, gas, electricity, lighting, overflow or leakage of water and other services and facilities. The indemnity releases the lessor from all claims and demands of any kind and from all liability which may arise in respect of any death of, or injury to, any person, and any accident or damage to property of whatever kind except to the extent that the lessor's negligence contributed to the death, injury, loss or damage.

Commitments for minimum lease payments including GST in relation to non-cancellable operating leases are payable as follows:
Within 1 year	309,764	323,931
Between 1 to 5 years	1,175,932	-
Total operating lease commitments	1,485,696	323,931

Accounting policy Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased asset.

Note 1.2: Own-source revenue and gains

Own-source revenue

	2019	2018
	$	$
1.2A: Resources received free of charge
Resources received free of charge	103,000	86,000
Total other revenue	103,000	86,000

Resources received free of charge are for services provided by the Australian National Audit Office (ANAO) for the end of financial year statement audit.

Accounting policy Resources received free of charge 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 revenue or gains depending on their nature.

Revenue from Government

	2019	2018
	$	$
1.2B: Revenue from Government
Appropriations
Departmental appropriations	5,461,000	5,453,000
Total revenue from Government	5,461,000	5,453,000

Accounting policy Revenue from Government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the entity 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.

Note 2: Income and expenses administered on behalf of Government

This section analyses the activities that the OTA does not control but administers on behalf of the Government.

Note 2.1: Administered - expenses

	2019	2018
	$	$
2.1A: Suppliers
Goods and services supplied or rendered
Board fees	221,621	189,151
Contractors	326,951	196,403
Consultants	-	98,843
Public relations and research	197,665	339,850
Travel	147,745	135,481
Software licence and maintenance	587,754	601,604
Other	624,383	756,552
Total goods and services supplied or rendered	2,106,119	2,317,884

Services rendered	2,106,119	2,317,884
Total goods and services supplied or rendered	2,106,119	2,317,884

Note 2.1B: Grants
Public sector
State and Territory Governments	35,280,530	32,999,608
Private sector
Not-for-profit organisations	5,757,272	6,797,758
Total grants	41,037,802	39,797,366

Accounting policy The OTA administers a number of grant schemes on behalf of the Government. Grant liabilities are recognised to the extent that (i) 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. When the Government enters into an agreement to make these grants and services, but services have not been performed or criteria satisfied, this is considered a commitment.

Note 3: Financial position

This section analyses the OTA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

Note 3.1: Financial assets

	2019	2018
	$	$
3.1A: Cash and cash equivalents
Cash on hand or on deposit	94,059	71,282
Total cash and cash equivalents	94,059	71,282

3.1B: Trade and other receivables
Goods and services receivables
Other	64,296	108,274
Total goods and services receivables	64,296	108,274

Appropriations receivables
Appropriation receivable	2,033,738	1,837,464
Total appropriations receivables	2,033,738	1,837,464

Other receivables
GST receivable from the Australian Taxation Office	38,747	21,851
Total other receivables	38,747	21,851
Total trade and other receivables (gross)	2,136,781	1,967,589

Total trade and other receivables (net)	2,136,781	1,967,589

No indicators of impairment were found for trade and other receivables in 2019 (2018: nil).
Credit terms for goods and services were within 30 days (2018: 30 days).

Accounting policy
Financial assets
Trade receivables and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

Note 3.2: Non-financial assets

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

Reconciliation of the opening and closing balances of property, plant and equipment and intangibles
	Buildings	Property, plant and equipment	Computer software	Total
	$	$	$	$
As at 1 July 2018
Gross book value	96,900	86,130	2,456,345	2,639,375
Accumulated depreciation, amortisation and impairment	-	-	(1,329,083)	(1,329,083)
Total as at 1 July 2018	96,900	86,130	1,127,262	1,310,292
Additions
Purchase	69,728	56,654	156,199	282,581
Other - fitout	281,155	-	-	281,155
Revaluations and impairments recognised in other comprehensive income	-	(3,856)	-	(3,856)
Impairments recognised in the operating result	-	-	-	-
Depreciation and amortisation	(133,551)	(50,795)	(378,046)	(562,392)
Total as at 30 June 2019	314,232	88,133	905,415	1,307,781

Total as at 30 June 2019 represented by
Gross book value	314,232	88,133	2,612,544	3,014,909
Accumulated depreciation, amortisation and impairment	-	-	(1,707,129)	(1,707,129)
Total as at 30 June 2019 represented by	314,232	88,133	905,415	1,307,780

$314,232 of total buildings (leasehold improvements) refers to the office fitout at Childers Street, Canberra ACT. $96,900 of total buildings (leasehold improvements) in 2018 refers to the office fitout at London Circuit, Canberra ACT. No indicators of impairment were found for buildings. No buildings are expected to be sold or disposed of within the next 12 months.

No indicators of impairment were found for property, plant and equipment and intangibles. No property, plant and equipment or intangibles is expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets
All revaluations were conducted in accordance with the revaluation policy stated at Note 3.2A. At 30 June 2019, an independent valuer, Jones Lang LaSalle Public Sector Valuations (JLL), conducted a full revaluation.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets
There are no contractual commitments for the acquisition of property, plant and equipment. There are no contractual commitments for the acquisition of intangible assets as at 30 June 2019.
In 2018 a contractual commitment existed for the development and implementation of software.
Commitments for the acquisition of intangible assets are payable as follows:
		2019 $	2018 $
Within 1 year		-	79,722
Total intangible asset commitments		-	79,722

Accounting policy
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of financial position, except for purchases costing less than $1,000 which are expensed in the year of acquisition (other than 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.

Revaluations
Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments are made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation
Depreciable property plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the OTA using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
		2019	2018
Buildings		Lease term	Lease term
Plant and Equipment		3 to 5 years	3 to 5 years

Impairment
All assets were assessed for impairment at 30 June 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.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the OTA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Intangibles
The OTA's intangibles comprise purchased software. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the OTA's software are 1 to 5 years (2017-18: 1 to 5 years).
All software assets were assessed for indications of impairment as at 30 June 2019.

		2019	2018
		$	$
3.2B: Other non-financial assets
Prepayments		88,459	111,520
Total other non-financial assets		88,459	111,520
No indicators of impairment were found for other non-financial assets.

Note 3.3: Payables

	2019	2018
	$	$
3.3A: Suppliers
Trade creditors and accruals	352,792	197,284
Total suppliers	352,792	197,284

Settlement was usually made within 30 days.

3.3B: Other payables
Salaries and wages	23,512	31,110
Superannuation	4,017	4,149
Lease incentive	303,564	-
Other	114,305	81,650
Total other payables	445,398	116,909

Note 4: Assets and liabilities administered on behalf of the Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the OTA 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.

Note 4.1: Administered - financial assets

	2019	2018
	$	$
4.1A: Cash and cash equivalents
Cash on hand or on deposit	88,851	88,851
Total cash and cash equivalents	88,851	88,851

4.1B: Trade and other receivables
Goods and services receivables	305,436	212,135
Total goods and services receivables	305,436	212,135

Other receivables
GST receivable from the Australian Taxation Office	258,365	320,908
Total other receivables	258,365	320,908

Total trade and other receivables (gross)	563,801	533,043

Total trade and other receivables (net)	563,801	533,043

No indicators of impairment were found for trade and other receivables in 2019 (2018: nil).
Credit terms for goods and services were within 30 days (2018: 30 days).

Note 4.2: Administered - non-financial assets

	2019	2018
	$	$
4.2A: Other non-financial assets
Prepayments	-	207,675
Total other non-financial assets	-	207,675

No indicators of impairment were found for other non-financial assets.

Note 4.3: Administered - payables

	2019	2018
	$	$
4.3A: Suppliers
Trade creditors and accruals	250,788	194,171
Total suppliers	250,788	194,171

Settlement was usually made within 30 days
4.3B: Grants
State and Territory Governments	6,991,014	5,890,156
Non-profit organisations	1,456,938	2,460,486
Total grants	8,447,952	8,350,642

Settlement was made according to the terms and conditions of each grant within 30 days of performance or eligibility.

Note 5: Appropriations

This section identifies the OTA's funding structure.

Note 5.1: Appropriations

	2019	2018
	$	$
5.1A Annual Appropriations ('Recoverable GST exclusive')

Departmental
Ordinary annual services
Annual appropriation	5,461,000	5,453,000
Receipts retained under PGPA Act - Section 74	151,118	62,425
Total appropriation	5,612,118	5,515,425
Appropriation applied (current and prior years)	5,393,067	5,456,648
Variance	219,051	58,777

Capital Budget
Annual departmental capital budget¹	249,000	251,000
Payments for non-financial asset²	249,000	251,000
Variance	-	-

Administered
Ordinary annual services
Annual appropriation	43,148,000	42,116,000
Receipts retained under PGPA Act - Section 74	213,164	119,754
Total appropriation	43,361,164	42,235,754
Appropriation applied (current and prior years)	43,128,005	47,913,094
Variance³	233,159	(5,677,340)

1. Departmental capital budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.
2. Payments made on non-financial assets include purchases of assets and expenditure on assets which have been capitalised.
3. The 2018 Administered variance reflects payment of prior year liabilities and timing of grant and supplier payments made prior to 30 June 2018.
	2019	2018
	$	$
5.1B: Unspent annual appropriations ('recoverable GST exclusive')

Departmental
Appropriation Act (No.1) 2016-17	-	30,838
Appropriation Act (No.1) 2017-18	-	1,806,626
Appropriation Act (No.1) 2018-19	2,033,738	-
Cash at bank	94,059	71,282
Total departmental	2,127,797	1,908,746

Administered
Appropriation Act (No.1) 2016-17	1,030	1,030
Appropriation Act (No.1) 2017-18	1,000	8,049,522
Appropriation Act (No.1) 2018-19	8,281,681	-
Cash at bank	88,851	88,851
Total administered	8,372,562	8,139,403

Note 5.2: Net cash appropriation arrangements

	2019	2018
	$	$
Total comprehensive income less depreciation/amortisation
expenses previously funded through revenue appropriations	75,748	38,299
Plus: depreciation/amortisation expenses previously funded through revenue appropriation	(562,392)	(442,383)
Total comprehensive loss - as per the Statement of comprehensive income	(486,644)	(404,084)
Total comprehensive loss - as per the Statement of comprehensive income	(486,644)	(404,084)

Note 6: People and relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

Note 6.1: Employee provisions

	2019	2018
	$	$
6.1A: Employee provisions
Leave	1,022,082	1,102,039
Total employee provisions	1,022,082	1,102,039

Accounting policy
Liabilities for ‘short-term employee benefits’ and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefit liabilities are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave
The liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the OTA'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 with reference to the Australian Government shorthand method. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy
Provision is made for separation and redundancy benefit payments. The OTA recognises a provision 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
The OTA's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation Plan (PSSap) or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other compliant superannuation funds are defined contribution schemes.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.

The OTA makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The OTA 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 number of days between the last pay period in the financial year and 30 June.

Note 6.2: Key management personnel remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The OTA has determined the key management personnel to be the Chair of the Board and its members and the Chief Executive Officer. Key management personnel remuneration is reported in the table below:
	2019	2018
	$	$
Short-term employee benefits	478,045	1,043,063
Post-employment benefits	64,435	96,193
Other long-term employee benefits	7,444	48,794
Total key management personnel remuneration expenses ¹	549,924	1,188,050

The total number of key management personnel that are included in the above table are 7 (2018: 10).

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio and Cabinet Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

Note 6.3: Related Party Disclosures

Related party relationships

The OTA is an Australian Government controlled entity. Related parties to the OTA are key management personnel, including the OTA Board, the portfolio Minister and Executive, and other Australian Government entities.

Transactions with related parties

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. These transactions have not been separately disclosed in this note.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the OTA, it has been determined that there are no related party transactions to be separately disclosed.

Note 7: Managing uncertainties

This section analyses how the OTA manages financial risks within its operating environment.

Note 7.1: Contingent assets and liabilities

Quantifiable contingencies
The OTA had no quantifiable contingencies as at the reporting date.

Unquantifiable contingencies
The OTA provided an indemnity in relation to the purchase of an ICT system in relation to all actions, claims, demands, losses, damages, costs and expenses for which the contractor shall, may or does become liable. The indemnity releases the contractor from any liability arising from the contract in excess of the contractor's required insurance levels.
The OTA provided an indemnity to the lessors of the OTA's leased premises in relation to all actions, claims, demands, losses, damages, costs and expenses for which the lessor shall, may or does become liable. These can arise from the negligent use by the lessee of water, gas, electricity, lighting, overflow or leakage of water and other services and facilities. The indemnity releases the lessor from all claims and demands of any kind and from all liability which may arise in respect of any death of, or injury to, any person, and any accident or damage to property of whatever kind except to the extent that the lessor's negligence contributed to the death, injury, loss or damage.

Accounting policy
Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the 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 settlement is greater than remote.

7.1B: Administered contingent liabilities and assets

Quantifiable administered contingencies
The OTA had no quantifiable contingencies at reporting date.

Unquantifiable administered contingencies
The OTA provided an indemnity in relation to the provision of ICT services in relation to all actions, claims, demands, losses, damages, costs and expenses for which the contractor shall, may or does become liable. The indemnity releases the contractor from any liability arising from the contract in excess of the contractor's required insurance levels.

Accounting policy
Indemnities and/or guarantees
The maximum amounts payable under the indemnities given is disclosed above, where relevant. At the time of completion of the financial statements, there was no reason to believe that the indemnities and or guarantees would be called upon, and no recognition of any liability was therefore required.

Note 7.2: Financial instruments

		2019	2018
		$	$
7.2A: Categories of financial instruments
Financial assets under AASB 139
Loans and receivables
Cash and cash equivalents			71,282
Trade and other receivables			108,274
Total loans and receivables			179,556
Total financial assets			179,556

Financial assets under AASB 9
Financial assets at amortised cost
Cash and cash equivalents		94,059
Trade and other receivables		64,296
Total financial assets at amortised cost		158,355

Financial liabilities
Financial liabilities measured at amortised cost
Trade creditors		352,792	197,284
Other payables		-	-
Total financial liabilities measured at amortised cost		352,792	197,284
Total financial liabilities		352,792	197,284

Classification of financial assets on the date of initial application of AASB 9
Financial assets class	Note	AASB 139 original classification	AASB 9 new classification	AASB 139 carrying amount at 1 July 2018	AASB 9 carrying amount at 1 July 2018
Cash and cash equivalents	3.1A	Loans and receivables	Amortised Cost	71,282	71,282
Trade and other receivables	3.1B	Loans and receivables	Amortised Cost	108,274	108,274
Total financial assets				179,556	179,556

Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9
		AASB 139 carrying amount at 30 June 2018	Reclassification	Remeasurement	AASB 9 carrying amount at 1 July 2018
Financial assets at amortised cost
Loans and receivables
Cash and cash equivalents		71,282	-	-	71,282
Trade and other receivables		108,274	-	-	108,274
Total amortised cost		179,556	-	-	179,556

The OTA has no reclassification or remeasurement of the carrying amount of financial assets based on measurement on AASB 139 at 30 June 2018 and the carrying amount of financial assets on the date of initial application of AASB 9 at 1 July 2018.

Accounting policy
Financial assets
With the implementation of AASB 9 Financial Instruments for the first time in 2019, the OTA classified its financial assets as financial assets measured at amortised cost.

The classification depends on both the OTA's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the OTA becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.
Comparatives have not been restated on initial application.

Financial assets at amortised cost
Financial assets included in this category need to meet two criteria:
1. the financial asset is held in order to collect the contractual cash flows; and
2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective interest method
Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

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 which measures the loss allowance 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, contract and lease receivables is used. The approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilities
Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at amortised cost
Other financial liabilities include supplier and other payables, which 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).

7.2B: Net gains or losses on financial assets
There is no interest income and expense from financial assets not at fair value through profit or loss in the years ending 30 June 2019 and 30 June 2018.

7.2C: Net income and expense from financial liabilities
There is no interest income and expense from financial liabilities not at fair value through profit or loss in the years ending 30 June 2019 and 30 June 2018.

Note 7.3: Administered financial instruments

		2019	2018
		$	$
7.3A: Categories of financial instruments
Financial assets under AASB 139
Loans and receivables
Cash and cash equivalents			88,851
Other receivables			212,135
Total loans and receivables			300,986
Total financial assets			300,986

Financial assets under AASB 9
Financial assets under amortised cost
Cash and cash equivalents		88,851
Other receivables		305,436
Total financial assets at amortised cost		394,287

Financial liabilities
Financial liabilities measured at amortised cost
Trade creditors		250,788	194,171
Grants payable		8,447,952	8,350,642
Total financial liabilities measured at amortised cost		8,698,740	8,544,813
Total financial liabilities		8,698,740	8,544,813

Classification of financial assets on the date of initial application of AASB 9
Financial assets class	Note	AASB 139 original classification	AASB 9 new classification	AASB 139 carrying amount at 1 July 2018	AASB 9 carrying amount at 1 July 2018
Cash and cash equivalents	4.1A	Loans and receivables	Amortised Cost	88,851	88,851
Other receivables	4.1B	Loans and receivables	Amortised Cost	212,135	212,135
Total financial assets				300,986	300,986

Reconciliation of carrying amounts of financial assets on the date of initial application of AASB 9
		AASB 139 carrying amount at 30 June 2018	Reclassification	Remeasurement	AASB 9 carrying amount at 1 July 2018
Financial assets at amortised cost
Loans and receivables
Cash and cash equivalents		88,851	-	-	88,851
Other receivables		212,135	-	-	212,135
Total amortised cost		300,986	-	-	300,986

The OTA has no reclassification or remeasurement of the carrying amount of financial assets based on measurement on AASB 139 at 30 June 2018
and the carrying amount of financial assets on the date of initial application of AASB 9 at 1 July 2018.

7.3B: Net gains or losses on financial assets
There is no interest income or expense from financial assets not at fair value through profit or loss in the years ending 30 June 2019 and 30 June 2018.

7.3C: Net gains or losses on financial liabilities
There is no interest income or expense from financial liabilities not at fair value through profit or loss in the years ending 30 June 2019 and 30 June 2018.

Note 7.4: Fair value measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value. The remaining assets and liabilities disclosed in the Statement of financial position do not apply the fair value hierarchy.

Accounting policy The OTA engaged the services of an independant valuer to conduct a detailed external valuation of all non-financial assets at 30 June 2019 and has relied upon those outcomes to establish carrying amounts. An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations carried out at least once every three years. The independent valuer has provided written assurance to the OTA that the models developed are in compliance with AASB 13.

7.4A: Fair value measurements
	Fair value measurements at the end of the reporting period
	2019	2018
	$	$
Non-financial assets
Leasehold improvement¹	314,232	96,900
Property, plant and equipment¹	88,133	86,130
Total non-financial assets	402,365	183,030

1. No non-financial assets were measured at fair value on a non- recurring basis as at 30 June 2019 (2018: Nil).
The remaining assets and liabilities reported by the OTA are not measured at fair value in the Statement of Financial Position.

Note 8: Other information

This sections presents aggregate assets and liabilities

Note 8.1: Aggregate assets and liabilities

	2019	2018
	$	$
8.1A Departmental - Aggregate assets and liabilities:
Assets expected to be recovered in:
No more than 12 months	2,303,421	2,150,391
More than 12 months	1,323,658	1,310,292
Total assets	3,627,079	3,460,683

Liabilities expected to be settled in:
No more than 12 months	894,405	592,487
More than 12 months	925,867	823,745
Total liabilities	1,820,272	1,416,232

8.1B Administered - Aggregate assets and liabilities:
Assets expected to be recovered in:
No more than 12 months	652,652	829,569
More than 12 months	-	-
Total assets	652,652	829,569

Liabilities expected to be settled in:
No more than 12 months	8,698,740	8,544,813
More than 12 months	-	-
Total liabilities	8,698,740	8,544,813

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