Notes to the financial statements
Note 1: Financial performance
This section analyses the financial performance of the OTA for the year ended 2021
Note 1.1: Expenses
2021 | 2020 | |
($) | ($) | |
1.1A / Employee benefits | ||
Wages and salaries | 2,786,141 | 2,714,958 |
Superannuation: | ||
Defined benefits plans | 227,279 | 229,870 |
Defined contribution plans | 258,499 | 272,161 |
Leave and other entitlements | 318,069 | 409,044 |
Separation and redundancies | 175,276 | – |
Other employee expenses | 7,620 | 15,955 |
Total employee benefits | 3,772,884 | 3,641,988 |
Accounting policy Accounting policies for employee related expenses is contained in the People and relationships section. |
2021 | 2020 | |
($) | ($) | |
1.1B / Suppliers | ||
Goods and services supplied or rendered | ||
Contractors and consultants | 131,432 | 193,215 |
Equipment and software | 414,101 | 404,728 |
Facilities | 84,610 | 66,906 |
Staff recruitment and training | 83,608 | 62,013 |
Travel | 12,119 | 118,222 |
Office supplies and stationery | 7,077 | 8,033 |
Printing and publishing | 28,881 | 20,868 |
Resources received free of charge | 114,000 | 114,000 |
Shared services MoU | 244,851 | 207,435 |
Other | 35,014 | 41,961 |
Total goods and services supplied or rendered | 1,155,693 | 1,237,381 |
Goods supplied | 9,294 | 9,430 |
Services rendered | 1,146,398 | 1,227,951 |
Total goods and services supplied or rendered | 1,155,692 | 1,237,381 |
2021 | 2020 | |
($) | ($) | |
Other suppliers | ||
Low value leases | 18,164 | 7,444 |
Workers compensation expenses | 19,619 | 25,374 |
Total other suppliers | 37,783 | 32,818 |
Total suppliers | 1,193,476 | 1,270,199 |
The OTA has no short-term lease commitments as at 30 June 2021. The OTA has one low-value lease commitment that is a month to month lease arrangement.
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 $10,000). The entity recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. |
2021 | 2020 | |
($) | ($) | |
1.1C / Finance Costs | ||
Interest on lease liabilities | 8,867 | 10,553 |
Total finance costs | 8,867 | 10,553 |
The above lease disclosures should be read in conjunction with the accompanying note 3.2.
Note 1.2: Own-source revenue and gains
Own-source revenue
2021 | 2020 | |
($) | ($) | |
1.2A / Other revenue | ||
Resources received free of charge | 114,000 | 114,000 |
Other revenue | 175,276 | – |
Total other revenue | 289,276 | 114,000 |
Resources received free of charge are for services provided by the Australian National Audit Office for the end of financial year statement audit. Other revenue includes revenue received from the Department of Health for the provision of employee separation payments.
Accounting policy Resources received free of charge Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as revenue or gains depending on their nature. Revenue Revenue from the sale of goods and rendering of services is recognised when control has transferred to the buyer. |
Revenue from Government
2021 | 2020 | |
($) | ($) | |
1.2B / Revenue from Government | ||
Appropriations | ||
Departmental appropriations | 5,276,000 | 5,308,000 |
Total revenue from Government | 5,276,000 | 5,308,000 |
Accounting policy Revenue from Government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the entity gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognise at their nominal amounts. |
Note 2: Income and expenses administered on behalf on the Government
This section analyses the activities that the OTA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.
Note 2.1: Administered-expenses
2021 | 2020 | |
($) | ($) | |
2.1A / Suppliers | ||
Goods and services supplied or rendered | ||
Board fees | 226,667 | 230,234 |
Contractors and consultants | 516,959 | 214,261 |
Public relations and research | 34,567 | 157,156 |
Travel | 2,420 | 91,882 |
Software licence and maintenance | 637,462 | 706,734 |
Other | 195,122 | 251,474 |
Total goods and services supplied or rendered | 1,613,197 | 1,651,741 |
Services rendered | 1,613,197 | 1,651,741 |
Total goods and services supplied or rendered | 1,613,197 | 1,651,741 |
Total suppliers | 1,613,197 | 1,651,741 |
2.1B / Grants | ||
Public sector | ||
State and Territory Governments | 35,403,396 | 37,798,547 |
Private sector | ||
Not-for-profit organisations | 9,953,506 | 7,072,660 |
Total grants | 45,356,902 | 44,871,207 |
Accounting policy The OTA administers a number of grant schemes on behalf of the Government. Grant liabilities are recognised to the extent that (i) services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. When the Government enters into an agreement to make these grants and services, but services have not been performed or criteria satisfied, this is considered a commitment. |
Note 2.2: Administered - income
2021 | 2020 | |
($) | ($) | |
2.2A / Other revenue | ||
Other | 1,930,945 | 3,140,000 |
Total revenue | 1,930,945 | 3,140,000 |
Accounting policy Other administered revenue are revenue relating to ordinary activities performed by the OTA on behalf of the Australian Government. |
Note 3: Financial position
This section analyses the OTA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section
Note 3.1: Financial assets
2021 | 2020 | |
($) | ($) | |
3.1A / Cash and cash equivalents | ||
Cash on hand or on deposit | 267,776 | 74,712 |
Total cash and cash equivalents | 267,776 | 74,712 |
Accounting policy Cash is recognised at its nominal amount. Cash and cash equivalents includes: a. cash on hand; and b. demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. |
2021 | 2020 | |
($) | ($) | |
3.1B / Trade and other receivables | ||
Goods and services receivables | ||
Other | 8,902 | 120,199 |
Total goods and services receivables | 8,902 | 120,199 |
Appropriation receivables | ||
Appropriation receivable | 2,320,670 | 2,099,504 |
Total appropriation receivables | 2,320,670 | 2,099,504 |
Other receivables | ||
GST receivable from the Australian Taxation Office | 55,970 | 23,735 |
Total other receivables | 55,970 | 23,735 |
Total trade and other receivables (gross) | 2,385,542 | 2,243,438 |
Total trade and other receivables (net) | 2,385,542 | 2,243,438 |
No indicators of impairment were found for trade and other receivables in 2021 (2020: nil).
Credit terms for goods and services were within 30 days (2020: 30 days).
Accounting policy Financial assets Trade receivables and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance. |
Note 3.2: Non-financial assets
3.2A / Reconciliation of the opening and closing balances of property, plant and equipment and intangibles
Reconciliation of the opening and closing balances of property, plant and equipment and intangibles
Buildings | Property, plant and equipment | Computer software | Total | |
($) | ($) | ($) | ($) | |
As at 1 July 2020 | ||||
Gross book value | 1,564,900 | 78,430 | 2,946,071 | 4,589,401 |
Accumulated depreciation, amortisation and impairment | (299,366) | – | (1,952,429) | (2,251,795) |
Total as at 1 July 2020 | 1,265,534 | 78,430 | 993,642 | 2,337,606 |
Additions | ||||
Purchase | 3,850 | 165,456 | 79,331 | 248,637 |
Revaluations and impairments recognised in other comprehensive income | 4,890 | (1,193) | – | 3,697 |
Depreciation and amortisation | (71,890) | (30,028) | (259,636) | (361,554) |
Disposals | – | (865) | (46,379) | (47,244) |
Depreciation on right-of-use assets | (299,366) | – | – | (299,366) |
Total as at 30 June 2021 | 903,018 | 211,800 | 766,958 | 1,881,776 |
Total as at 30 June 2021 represented by | ||||
Gross book value1 | 1,501,750 | 211,800 | 2,734,801 | 4,448,351 |
Accumulated depreciation, amortisation and impairment | (598,732) | – | (1,967,843) | (2,566,575) |
Total as at 30 June 2021 represented by | 903,018 | 211,800 | 766,958 | 1,881,776 |
Carrying amount of right-of-use assets | 723,468 | – | – | 723,468 |
- Gross book value includes assets under construction amount for computer software of $240,850 (2020: $238,853).
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 2021, an independent valuer, Jones Lang LaSalle Public Sector Valuations, conducted a 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 2021 (2020: Nil).
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. 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. 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: |
2021 | 2020 | |
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 2021. 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 (2019–20: 1 to 5 years). All software assets were assessed for indications of impairment as at 30 June 2021. |
Note 3.3: Payables
2021 | 2020 | |
($) | ($) | |
3.3A / Suppliers | ||
Trade creditors and accruals | 409,568 | 293,932 |
Total suppliers | 409,568 | 293,932 |
2021 | 2020 | |
($) | ($) | |
3.3B / Other payables | ||
Salaries and wages | 63,873 | 53,233 |
Superannuation | 8,989 | 7,721 |
Other | 91,240 | 76,155 |
Total other payables | 164,102 | 137,109 |
Accounting policy Payables are recognised at the present value of expected future cashflow. Trade creditors and accruals are recognised to the extent that the goods and services have been received (irrespective of having been invoiced). |
Note 3.4: Interest bearing liabilities
2021 | 2020 | |
($) | ($) | |
3.4A / Leases | ||
Lease liabilities | 764,420 | 1,051,149 |
Total leases | 764,420 | 1,051,149 |
Total cash outflow for leases for the year ended 30 June 2021 was $296,780 (2020: $282,745)
Maturity analysis – contractual undiscounted cash flows | ||
Within 1 year | 311,342 | 296,780 |
Between 1 to 5 years | 436,964 | 748,306 |
Total leases | 748,306 | 1,045,086 |
The OTA in its capacity as lessee entered into a five-year non-cancellable lease at Childers Street, Canberra ACT from 1 December 2018. Lease payments are subject to annual increases in accordance with the lease agreement.
The above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 1.1C and 3.2.
Accounting policy For all new contracts entered into, the OTA considers whether the contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’. Once it has been determined that a contract is, or contains a lease, the lease liability is initially measured at the present value of the lease payments unpaid at the commencement date, discounted using the interest rate implicit in the lease, if that rate is readily determinable, or the department’s incremental borrowing rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to reflect any reassessment or modification to the lease. When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset or profit and loss depending on the nature of the reassessment or modification. |
Note 4: Assets and liabilities administered on behalf on the Government
This section analyses assets used to conduct operations and the operating liabilities incurred as a result the OTA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting
Note 4.1: Administered - financial assets
2021 | 2020 | |
($) | ($) | |
4.1A / Cash and cash equivalents | ||
Cash on hand or on deposit | 65,153 | 80,000 |
Total cash and cash equivalents | 65,153 | 80,000 |
4.1B / Trade and other receivables | ||
Other receivables | ||
GST receivable from the Australian Taxation Office | 559,912 | 425,361 |
Total other receivables | 559,912 | 425,361 |
Total trade and other receivables (gross) | 559,912 | 425,361 |
Total trade and other receivables (net) | 559,912 | 425,361 |
No indicators of impairment were found for trade and other receivables in 2021 (2020: nil). Credit terms for goods and services were within 30 days (2020: 30 days).
Note 4.2: Administered - payables
2021 | 2020 | |
($) | ($) | |
4.2A / Suppliers | ||
Trade creditors and accruals | 241,381 | 225,418 |
Total suppliers | 241,381 | 225,418 |
Settlement was usually made within 20 days.
2021 | 2020 | |
($) | ($) | |
4.2B / Grants | ||
State and Territory Governments | 8,761,785 | 6,226,356 |
Non-profit organisations | 2,634,060 | 1,484,885 |
Total grants | 11,395,845 | 7,711,241 |
Settlement was made according to the terms and conditions of each grant within 30 days of performance or eligibility.
Note 5: Funding
This section identifies the OTA's funding structure.
Note 5.1: Appropriations
5.1A / Annual Appropriations ('Recoverable GST exclusive')
2021 | 2020 | |
($) | ($) | |
Departmental | ||
Ordinary annual services | ||
Annual appropriation | 5,276,000 | 5,336,000 |
Receipts retained under PGPA Act – Section 74 | 329,521 | 91,752 |
Total appropriation | 5,605,521 | 5,427,752 |
Appropriation applied (current and prior years) | 5,204,655 | 5,353,334 |
Variance3 | 400,866 | 74,418 |
Capital Budget | ||
Annual departmental capital budget1 | 262,000 | 250,000 |
Payments for non-financial assets2 | 248,637 | 250,000 |
Variance | 13,363 | – |
2021 | 2020 | |
($) | ($) | |
Administered | ||
Ordinary annual services | ||
Annual appropriation | 45,041,000 | 43,389,000 |
Receipts retained under PGPA Act – Section 74 | 2,224,968 | 3,170,770 |
Total appropriation | 47,265,968 | 46,559,770 |
Appropriation applied (current and prior years) | 43,868,422 | 47,241,322 |
Variance4 | 3,397,546 | (681,552) |
- 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.
- Payments made on non-financial assets include purchases of assets and expenditure on assets which have been capitalised.
- The variance of $400,866 for departmental ordinary annual services is due to underspends in suppliers and employee payments.The variance of $3,397,547 for administered ordinary annual services reflects timing of supplier and grant payments.
- The variance of $3,397,547 for administered ordinary annual services reflects timing of supplier and grant payments.
5.1B / Unspent annual appropriations ('recoverable GST exclusive')
2021 | 2020 | |
($) | ($) | |
Departmental | ||
Appropriation Act (No.1) 2019–20 | – | 2,099,504 |
Appropriation Act (No.1) 2020–21 | 2,320,670 | – |
Cash at bank | 267,776 | 74,712 |
Total departmental | 2,588,446 | 2,174,216 |
2021 | 2020 | |
($) | ($) | |
Administered | ||
Appropriation Act (No.1) 2017–18 | – | 750 |
Appropriation Act (No.1) 2018–19 | 4,080 | 4,080 |
Appropriation Act (No.1) 2019–20 | 10,000 | 7,596,299 |
Appropriation Act (No.1) 2020–21 | 10,983,845 | – |
Cash at bank | 65,153 | 80,000 |
Total administered | 11,063,078 | 7,681,129 |
Note 5.2: Net cash appropriation arrangements
2021 | 2020 | |
($) | ($) | |
Total comprehensive income/(loss) as per the Statement of comprehensive income | (113,553) | (152,606) |
Plus: depreciation/amortisation of assets funded through appropriations (departmental capital budget funding and/or equity injections)1 | 361,554 | 346,997 |
Plus: depreciation right-of-use assets2 | 299,366 | 299,366 |
Less: lease principal repayments2 | (286,729) | (258,803) |
Net cash operating surplus / (deficit) | 260,638 | 234,954 |
1 . From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses of non-corporate Commonwealth entities and selected corporate Commonwealth entities were replaced with a separate capital budget provided through equity injections. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.
2.The inclusion of depreciation/amortisation expenses related to ROU leased assets and the lease liability principal repayment amount reflects the impact of AASB 16 Leases, which does not directly reflect a change in appropriation arrangements.
Note 6: People and relationships
This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.
Note 6.1: Employee provisions
2021 | 2020 | |
($) | ($) | |
6.1A / Employee provisions | ||
Leave | 961,398 | 1,042,725 |
Total employee provisions | 961,398 | 1,042,725 |
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:
2021 | 2020 | |
($) | ($) | |
Short-term employee benefits | 498,773 | 522,576 |
Post-employment benefits | 65,406 | 67,124 |
Other long-term employee benefits | 6,585 | 7,475 |
Total key management personnel remuneration expenses1 | 570,764 | 597,175 |
The total number of key management personnel that are included in the above table are 7 (2020: 8).
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
7.1 A / 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
2021 | 2020 | |
($) | ($) | |
7.2A / Categories of financial instruments | ||
Financial assets at amortised cost | ||
Cash and cash equivalents | 267,776 | 74,712 |
Trade and other receivables | 8,902 | 120,199 |
Total financial assets at amortised cost | 276,678 | 194,911 |
Total financial assets | 276,678 | 194,911 |
Financial liabilities | ||
Financial liabilities measured at amortised cost | ||
Trade creditors | 409,568 | 293,932 |
Total financial liabilities measured at amortised cost | 409,568 | 293,932 |
Total financial liabilities | 409,568 | 293,932 |
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. Financial assets are classified 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. Financial assets at amortised cost Financial assets included in this category need to meet two criteria:
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). |
7.2 B / 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 2021 and 30 June 2020.
7.2 C / 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 2021 and 30 June 2020.
Note 7.3: Administered financial instruments
2021 | 2020 | |
($) | ($) | |
7.3A / Categories of financial instruments | ||
Financial assets at amortised cost | ||
Loans and receivables | ||
Cash and cash equivalents | 65,153 | 80,000 |
Total financial assets at amortised cost | 65,153 | 80,000 |
Total financial assets | 65,153 | 80,000 |
Financial liabilities | ||
Financial liabilities measured at amortised cost | ||
Trade creditors | 241,381 | 225,418 |
Grants payable | 11,395,845 | 7,711,241 |
Total financial liabilities measured at amortised cost | 11,637,226 | 7,936,659 |
Total financial liabilities | 11,637,226 | 7,936,659 |
7.3B / Net gains or losses on financial assets
There is no interest income or expense from financial assets not at fair value through profit or loss in the years ending 30 June 2021 and 30 June 2020.
7.3C / Net gains or losses on financial liabilities
There is no interest income or expense from financial liabilities not at fair value through profit or loss in the years ending 30 June 2021 and 30 June 2020.
Note 7.4: Fair value measurements
The following tables provide an analysis of assets and liabilities that are measured at fair value. The remaining assets and liabilities disclosed in the Statement of financial position do not apply the fair value hierarchy.
Accounting policy The OTA engaged the services of an independent valuer to conduct a detailed external valuation of all non-financial assets at 30 June 2021 and has relied upon those outcomes to establish carrying amounts. An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations carried out at least onc every three years. The independent valuer has provided written assurance to the OTA that the models developed are in compliance with AASB 13. |
7.4A / Fair value measurements | Fair value measurements at the end of the reporting period | |
2021 | 2020 | |
($) | ($) | |
Non-financial assets | ||
Buildings1 | 179,550 | 242,700 |
Property, plant and equipment1 | 211,800 | 78,430 |
Total non-financial assets | 391,350 | 321,130 |
1 No non-financial assets were measured at fair value on a non- recurring basis as at 30 June 2021 (2020: Nil).
The remaining assets and liabilities reported by the OTA are not measured at fair value in the Statement of Financial Position.
Note 8: Other information
Note 8.1: Current/non-current distinction for assets and liabilities
2021 | 2020 | |
($) | ($) | |
8.1A / Departmental – current/non-current distinction for assets and liabilities | ||
Assets expected to be recovered in: | ||
No more than 12 months | ||
Cash and cash equivalents | 267,776 | 74,712 |
Trade and other receivables | 2,385,542 | 2,243,438 |
Other non-financial assets | 83,687 | 76,923 |
Total no more than 12 months | 2,737,005 | 2,395,073 |
More than 12 months | ||
Buildings | 903,018 | 1,265,534 |
Property, plant and equipment | 211,800 | 78,430 |
Computer software | 766,958 | 993,642 |
Other non-financial assets | 36,918 | – |
Total more than 12 months | 1,918,694 | 2,337,606 |
Total assets | 4,655,699 | 4,732,679 |
Liabilities expected to be settled in: | ||
No more than 12 months | ||
Suppliers | 409,568 | 293,932 |
Other payables | 164,101 | 137,109 |
Leases | 304,171 | 286,729 |
Employee provisions | 289,922 | 332,015 |
Total no more than 12 months | 1,167,762 | 1,049,785 |
More than 12 months | ||
Leases | 460,249 | 764,420 |
Employee provisions | 671,476 | 710,710 |
Total more than 12 months | 1,131,725 | 1,475,130 |
Total liabilities | 2,299,487 | 2,524,915 |
2021 | 2020 | |
($) | ($) | |
8.1B / Administered – current/non-current distinction for assets and liabilities | ||
Assets expected to be recovered in: | ||
No more than 12 months | ||
Cash and cash equivalents | 65,153 | 80,000 |
Trade and other receivables | 559,912 | 425,361 |
Other non-financial assets | 473,331 | 231,322 |
Total no more than 12 months | 1,098,396 | 736,683 |
Total assets | 1,098,396 | 736,683 |
Liabilities expected to be settled in: | ||
No more than 12 months | ||
Suppliers | 241,381 | 225,418 |
Grants | 11,395,845 | 7,711,241 |
Total no more than 12 months | 11,637,226 | 7,936,659 |
Total liabilities | 11,637,226 | 7,936,659 |
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https://www.transparency.gov.au/annual-reports/organ-and-tissue-authority/reporting-year/2020-21-35