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Notes to the financial statements

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

Note 1: Financial performance

This section analyses the financial performance of the OTA for the year ended 2020.

Note 1.1: Expenses

2020 ($)

2019 ($)

1.1A: Employee benefits

Wages and salaries

2,714,958

2,730,034

Superannuation:

Defined benefits plans

229,870

250,481

Defined contribution plans

272,161

213,886

Leave and other entitlements

409,044

305,452

Other employee expenses

15,955

12,657

Total employee benefits

3,641,988

3,512,510

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

193,215

246,767

Equipment and software

404,728

476,887

Facilities

66,906

125,317

Staff recruitment and training

62,013

54,011

Travel

118,222

151,108

Office supplies and stationery

8,033

7,478

Printing and publishing

20,868

27,212

Resources received free of charge

114,000

103,000

Shared services MoU

207,435

252,126

Other

41,961

60,002

Total goods and services supplied or rendered

1,237,381

1,503,908

Goods supplied

9,430

44,862

Services rendered

1,227,951

1,459,046

Total goods and services supplied or rendered

1,237,381

1,503,908

Other suppliers

Operating lease rentals1

7,444

437,215

Workers compensation expenses

25,374

30,764

Total other suppliers

32,818

467,979

Total suppliers

1,270,199

1,971,887

1The OTA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The OTA has short-term lease commitments of $14,111 as at 30 June 2020.

Accounting policy

Short-term leases and leases of low-value assets

The OTA has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The entity recognises the lease payments associated with these leases as an expense on a straight-line basis over the aease term.

1.1C: Finance Costs

Interest on lease liabilities

10,553

-

Total finance costs

10,553

The above lease disclosures should be read in conjunction with the accompanying note 3.2

Note 1.2: Own-source revenue and gains

2020 ($)

2019 ($)

1.2A: Resources received free of charge

Resources received free of charge

114,000

103,000

Total other revenue

114,000

103,000

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.

2020 ($)

2019 ($)

1.2B: Revenue from Government

Appropriations

Departmental appropriations

5,308,000

5,461,000

Total revenue from Government

5,308,000

5,461,000

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 on the Government

This section analyses the activities that 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 2.1: Administered-expenses

2020 ($)

2019 ($)

2.1A: Suppliers

Goods and services supplied or rendered

Board fees

230,234

221,621

Contractors

214,261

326,951

Public relations and research

157,156

197,665

Travel

91,882

147,745

Software licence and maintenance

706,734

587,754

Other

251,474

624,383

Total goods and services supplied or rendered

1,651,741

2,106,119

Services rendered

1,651,741

2,106,119

Total goods and services supplied or rendered

1,651,741

2,106,119

Note 2.1B: Grants

Public sector

State and Territory Governments

37,798,547

35,280,530

Private sector

Not-for-profit organisations

7,072,660

5,757,272

Total grants

44,871,207

41,037,802

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 2.2: Administered - income

2020 ($)

2019 ($)

2.2A: Other revenue

Other

3,140,000

-

Total revenue

3,140,000

-

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

2020 ($)

2019 ($)

3.1A: Cash and cash equivalents

Cash on hand or on deposit

74,712

94,059

Total cash and cash equivalents

74,712

94,059

Accounting policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand; and

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

3.1B: Trade and other receivables

Goods and services receivables

Other

120,199

64,296

Total goods and services receivables

120,199

64,296

Appropriations receivables

Appropriation receivable

2,099,504

2,033,738

Total appropriations receivables

2,099,504

2,033,738

Other receivables

GST receivable from the Australian Taxation Office

23,735

38,747

Total other receivables

23,735

38,747

Total trade and other receivables (gross)

2,243,438

2,136,781

Total trade and other receivables (net)

2,243,438

2,136,781

No indicators of impairment were found for trade and other receivables in 2020 (2019: nil).

Credit terms for goods and services were within 30 days (2019: 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 2019

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 1 July 2019

314,232

88,133

905,415

1,307,780

Recognition of right of use asset on initial application of AASB 16

1,322,200

-

-

1,322,200

Adjusted total as at 1 July 2019

1,636,432

88,133

905,415

2,629,980

Additions

Purchase

5,941

20,024

333,527

359,492

Revaluations and impairments recognised in other comprehensive income

(6,971)

1,468

-

(5,503)

Depreciation and amortisation

(70,502)

(31,195)

(245,300)

(346,997)

Depreciation on right-of-use assets

(299,366)

-

-

(299,366)

Total as at 30 June 2020

1,265,534

78,430

993,642

2,337,606

Total as at 30 June 2020 represented by

Gross book value

1,265,534

78,430

2,946,071

4,290,035

Accumulated depreciation, amortisation and impairment

-

-

(1,952,429)

(1,952,429)

Total as at 30 June 2020 represented by

1,265,534

78,430

993,642

2,337,606

Carrying amount of right-of-use assets

1,022,834

-

-

1,022,834

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 2020, an independent valuer, Jones Lang LaSalle Public Sector Valuations, 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 2020.

In 2019 there were no contractual commitments for the acquisition of intangible assets.

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).

Lease Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the OTA has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole of Government financial statements.

On initial adoption of AASB 16 the OTA has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole of Government financial statements.

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding ROU assets) are carried at fair value (or an amount not materially different from 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:

2020

2019

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 2020. 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.

All software assets were assessed for indications of impairment as at 30 June 2020.

2020 ($)

2019 ($)

3.2B: Other non-financial assets

Prepayments

76,923

88,459

Total other non-financial assets

76,923

88,459

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

Note 3.3: Payables

2020 ($)

2019 ($)

3.3A: Suppliers

Trade creditors and accruals

293,932

352,792

Total suppliers

293,932

352,792

Settlement was usually made within 30 days.

3.3B: Other payables

Salaries and wages

53,233

23,512

Superannuation

7,721

4,017

Lease incentive1

-

303,564

Other

76,155

114,305

Total other payables

137,109

445,398

1 The OTA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Note 3.4: Interest bearing liabilities

2020($)

2019 ($)

3.4A: Leases

Lease liabilities

Buildings1

1,051,149

-

Total leases

1,051,149

-

1The OTA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Note 4: Assets and liabilities administered on behalf on 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

2020 ($)

2019 ($)

4.1A: Cash and cash equivalents

Cash on hand or on deposit

80,000

88,851

Total cash and cash equivalents

80,000

88,851

4.1B: Trade and other receivables

Goods and services receivables

-

305,436

Total goods and services receivables

-

305,436

Other receivables

GST receivable from the Australian Taxation Office

425,361

258,365

Total other receivables

425,361

258,365

Total trade and other receivables (gross)

425,361

563,801

Total trade and other receivables (net)

425,361

563,801

No indicators of inpairment were found for trade and other receivables in 2020 (2019: nil).

Credit terms for goods and services were within 30 days (2019: 30 days).

Note 4.2: Administered - non-financial assets

2020 ($)

2019 ($)

4.2A: Other non-financial assets

Prepayments

231,322

-

Total other non-financial assets

231,322

-

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

Note 4.3: Administered - payables

2020 ($)

2019 ($)

4.3A: Suppliers

Trade creditors and accruals

225,418

250,788

Total suppliers

225,418

250,788

Settlement was usually made within 30 days

4.3B: Grants

State and Territory Governments

6,226,356

6,991,014

Non-profit organisations

1,484,885

1,456,938

Total grants

7,711,241

8,447,952

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

Note 5: Funding

This section identifies the OTA’s funding structure.

Note 5.1: Appropriations

2020 ($)

2019 ($)

5.1A Annual Appropriations ('Recoverable GST exclusive')

Departmental

Ordinary annual services

Annual appropriation

5,336,000

5,461,000

Receipts retained under PGPA Act - Section 74

91,752

151,118

Total appropriation

5,427,752

5,612,118

Appropriation applied (current and prior years)

5,353,334

5,393,067

Variance

74,418

219,051

Capital Budget

Annual departmental capital budget1

250,000

249,000

Payments for non-financial assets2

250,000

249,000

Variance

-

-

Administered

Ordinary annual services

Annual appropriation

43,389,000

43,148,000

Receipts retained under PGPA Act - Section 74

3,170,770

213,164

Total appropriation

46,559,770

43,361,164

Appropriation applied (current and prior years)

47,241,322

43,128,005

Variance

(681,552)

233,159

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.

2020 ($)

2019 ($)

5.1B: Unspent annual appropriations ('recoverable GST exclusive')

Departmental

Appropriation Act (No.1) 2018-19

-

2,033,738

Appropriation Act (No.1) 2019-20

2,099,504

-

Cash at bank

74,712

94,059

Total departmental

2,174,216

2,127,797

Administered

Appropriation Act (No.1) 2016-17

-

1,030

Appropriation Act (No.1) 2017-18

750

1,000

Appropriation Act (No.1) 2018-19

4,080

8,281,681

Appropriation Act (No.1) 2019-20

7,596,299

-

Cash at bank

80,000

88,851

Total administered

7,681,129

8,372,562

Note 5.2: Net cash appropriation arrangements

2020 ($)

2019 ($)

Total comprehensive income less depreciation/amortisation

expenses previously funded through revenue appropriations

493,757

75,748

Plus: depreciation/amortisation expenses previously funded through revenue appropriation

(646,363)

(562,392)

Plus: depreciation right-of-use assets

299,366

-

Less: principal repayments - leased assets

258,803

-

Total comprehensive loss - as per the Statement of comprehensive income

(112,043)

(486,644)

Total comprehensive loss - as per the Statement of comprehensive income

(152,606)

(486,644)

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

2020 ($)

2019 ($)

6.1A: Employee provisions

Leave

1,042,725

1,022,082

Total employee provisions

1,042,725

1,022,082

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:

2020 ($)

2019 ($)

Short-term employee benefits

522,576

478,045

Post-employment benefits

67,124

64,435

Other long-term employee benefits

7,475

7,444

Total key management personnel remuneration expenses1

597,175

549,924

The total number of key management personnel that are included in the above table are 8 (2019: 7).

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

7.1A: Contingent asset 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

2020 ($)

2019 ($)

7.2A: Categories of financial instruments

Financial assets at amortised cost

Cash and cash equivalents

74,712

94,059

Trade and other receivables

120,199

64,296

Total financial assets at amortised cost

194,911

158,355

Total financial assets

194,911

158,355

Financial liabilities

Financial liabilities measured at amortised cost

Trade creditors

293,932

352,792

Total financial liabilities measured at amortised cost

293,932

352,792

Total financial liabilities

293,932

352,792

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 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 2020 and 30 June 2019.

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 2020 and 30 June 2019.

Note 7.3: Administered financial instruments

2020 ($)

2019 ($)

7.3A: Categories of financial instruments

Financial assets at amortised cost

Loans and receivables

Cash and cash equivalents

80,000

88,851

Other receivables

-

305,436

Total financial assets at amortised cost

80,000

394,287

Total financial assets

80,000

394,287

Financial liabilities

Financial liabilities measured at amortised cost

Trade creditors

225,418

250,788

Grants payable

7,711,241

8,447,952

Total financial liabilities measured at amortised cost

7,936,659

8,698,740

Total financial liabilities

7,936,659

8,698,740

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 2020 and 30 June 2019.

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 2020 and 30 June 2019.

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 independent valuer to conduct a detailed external valuation of all non-financial assets at 30 June 2020 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.

Fair value measurements at the end of the reporting period

2020 ($)

2019 ($)

7.4A: Fair value measurements

Non-financial assets

Buildings1

1,265,534

314,232

Property, plant and equipment1

78,430

88,133

Total non-financial assets

1,343,964

402,365

The remaining assets and liabilities reported by the OTA are not measured at fair value in the Statement of Financial Position.

1 No non-financial assets were measured at fair value on a non- recurring basis as at 30 June 2020 (2019: Nil).

Note 8: Other information

Aggregate assets and liabilities.

Note 8.1 Aggregate assets and liabilities

2020 ($)

2019 ($)

8.1A Departmental - Aggregate assets and liabilities:

Assets expected to be recovered in:

No more than 12 months

2,395,073

2,303,421

More than 12 months

2,337,606

1,323,658

Total assets

4,732,679

3,627,079

Liabilities expected to be settled in:

No more than 12 months

1,049,785

894,405

More than 12 months

1,475,130

925,867

Total liabilities

2,524,915

1,820,272

8.1B Administered - Aggregate assets and liabilities:

Assets expected to be recovered in:

No more than 12 months

736,683

652,652

Total assets

736,683

652,652

Liabilities expected to be settled in:

No more than 12 months

7,936,659

8,698,740

Total liabilities

7,936,659

8,698,740