Administered Schedule of Comprehensive Income
Administered Schedule of Comprehensive Income |
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for the period ended 30 June 2019 |
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2019 |
2018 |
Original Budget |
|||||
$’000 |
$’000 |
$’000 |
|||||
NET COST OF SERVICES |
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Expenses |
|||||||
Expenses - manufacturing, selling and distribution expenses |
33,238 |
40,226 |
30,833 |
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Total expenses administered on behalf of Government |
33,238 |
40,226 |
30,833 |
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Income |
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Revenue |
|||||||
Non-taxation revenue |
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Revenue - Sale of Circulating Coin |
58,150 |
85,515 |
85,530 |
||||
Total own-source income administered on behalf of Government |
58,150 |
85,515 |
85,530 |
||||
Net contribution by services |
24,912 |
45,289 |
54,697 |
||||
Surplus1 |
24,912 |
45,289 |
54,697 |
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1 Total comprehensive income is equal to the surplus as there have been no movements in other comprehensive income. |
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The above statement should be read in conjunction with the accompanying notes. |
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Accounting Policy Revenue All administered revenues are revenues relating to the course of ordinary activities performed by the Mint on behalf of the Australian Government. |
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Seigniorage and repurchase of circulating coin Seigniorage is collected by the Mint on behalf of the Commonwealth. Seigniorage represents the difference between the face value of coinage sold to the banks and its cost of production of finished goods to the Mint plus associated selling distribution, and overhead expenses and any additional allowances for unavoidable costs and/or surplus agreed by the Department of the Treasury (i.e. the transfer price). The Mint repurchases mutilated and withdrawn circulating coins on behalf of the Commonwealth. The costs incurred by the Mint in repurchasing circulating coins are offset to an extent by the sale of scrap metal and the balance is supplemented by the Commonwealth via a reduction in the total amount paid to the Commonwealth’s Official Public Account (refer to Administered Cash Flow Statement). The net revenues from circulating coin sales are not directly available to be used by the Mint for its own purposes and are remitted to the Commonwealth’s Official Public Account. |
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Administered Schedule of Assets and Liabilities |
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as at 30 June 2019 |
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2019 |
2018 |
Original Budget |
|||||
$’000 |
$’000 |
$’000 |
|||||
ASSETS |
|||||||
Financial assets |
|||||||
Receivables - Seigniorage |
- |
- |
- |
||||
Total financial assets |
- |
- |
- |
||||
Non-financial assets |
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Inventory |
2,628 |
3,717 |
6,371 |
||||
Total non-financial assets |
2,628 |
3,717 |
6,371 |
||||
Total assets administered on behalf of Government |
2,628 |
3,717 |
6,371 |
||||
LIABILITIES |
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Payables |
|||||||
Other Payables - Seigniorage |
4 |
1,898 |
625 |
||||
Total payables |
4 |
1,898 |
625 |
||||
Total liabilities administered on behalf of Government |
4 |
1,898 |
625 |
||||
Net assets |
2,624 |
1,819 |
5,746 |
||||
The above statement should be read in conjunction with the accompanying notes. |
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Administered Reconciliation Schedule |
|||||||
as at 30 June 2019 |
|||||||
2019 |
2018 |
Original Budget |
|||||
$’000 |
$’000 |
$’000 |
|||||
Opening administered assets less administered liabilities as at 1 July |
1,819 |
5,746 |
5,746 |
||||
Plus: Administered income |
58,150 |
85,515 |
85,530 |
||||
Less: Administered expenses |
(33,238) |
(40,226) |
(30,833) |
||||
Administered transfers to/from Australian Government: |
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Transfers to OPA |
(24,107) |
(49,216) |
(54,697) |
||||
Closing administered assets less administered liabilities as at 30 June |
2,624 |
1,819 |
5,746 |
||||
Administered Cash Flow Statement |
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for the period ended 30 June 2019 |
|||||||
2019 |
2018 |
Original Budget |
|||||
$’000 |
$’000 |
$’000 |
|||||
OPERATING ACTIVITIES |
|||||||
Cash received |
|||||||
Other - Seigniorage |
24,107 |
49,216 |
54,697 |
||||
Total cash received |
24,107 |
49,216 |
54,697 |
||||
Net cash from operating activities |
24,107 |
49,216 |
54,697 |
||||
Net Increase in Cash Held |
24,107 |
49,216 |
54,697 |
||||
Cash to Official Public Account for: |
|||||||
- Special accounts - Seigniorage |
(24,107) |
(49,216) |
(54,697) |
||||
(24,107) |
(49,216) |
(54,697) |
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Cash and cash equivalents at the end of the reporting period |
- |
- |
- |
||||
The above statement should be read in conjunction with the accompanying notes. |
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Accounting Policy Administered Cash Transfers to and from the Official Public Account Revenue collected by the Mint on behalf of the Government is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Mint on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule. |
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Budget Variances Commentary |
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Explanations of major variances |
Affected line items |
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The current financial year saw a continued decline in demand for circulating coins. Higher denominations were more affected than the lower denominations impacting on the cash received and seigniorage return to government. |
Revenue - Sale of Circulating Coin Cash Received - Other Seigniorage |
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Expenses did not drop in proportion to the drop of sales because there was a strong demand for the low denomination such as 5 cents, which have a metal cost equal to face value, and the low demand for 2 dollar coin which have relatively low expenses compare to face value. |
Expense - manufacturing, selling and distribution expenses |
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Finished Goods Inventory was slightly down from the previous financial year due to additional orders during June and semi processed coins had not yet been manufactured to the packaged stage. |
Assets - Inventory |
Visit
https://www.transparency.gov.au/annual-reports/royal-australian-mint/reporting-year/2018-2019-42