Administered Schedule of Comprehensive Income

for the period ended 30 June 2019

NET COST OF SERVICES

Expenses

Expenses - manufacturing, selling and distribution expenses

Total expenses administered on behalf of Government

Income

Revenue

Non-taxation revenue

Revenue - Sale of Circulating Coin

Total own-source income administered on behalf of Government

Net contribution by services

Surplus¹

¹

Total comprehensive income is equal to the surplus as there have been no movements in other comprehensive income.

The above statement should be read in conjunction with the accompanying notes.

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.

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The Mint repurchases mutilated and withdrawn circulating coins on behalf of the Commonwealth.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.

Administered Schedule of Assets and Liabilities

as at 30 June 2019

ASSETS

Financial assets

Receivables - Seigniorage

Total financial assets

Non-financial assets

Inventory

Total non-financial assets

Total assets administered on behalf of Government

LIABILITIES

Payables

Other Payables - Seigniorage

Total payables

Total liabilities administered on behalf of Government

Net assets

The above statement should be read in conjunction with the accompanying notes.

Administered Reconciliation Schedule

as at 30 June 2019

Opening administered assets less administered liabilities as at 1 July

Plus: Administered income

Less: Administered expenses

Administered transfers to/from Australian Government:

Transfers to OPA

Closing administered assets less administered liabilities as at 30 June

Administered Cash Flow Statement

for the period ended 30 June 2019

OPERATING ACTIVITIES

Cash received

Other - Seigniorage

Total cash received

Net cash from operating activities

Net Increase in Cash Held

Cash to Official Public Account for:

- Special accounts - Seigniorage

Cash and cash equivalents at the end of the reporting period

The above statement should be read in conjunction with the accompanying notes.

Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by 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.

Budget Variances Commentary

Explanations of major variances

Affected line items

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

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

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