64 Part 4: Financial statements Department of the Prime Minister and Cabinet financial statements The following pages 64 to 148 contain PDFs of the Department of the Prime Minister and Cabinet's financial statements for the period ended 30 June 2015. If you require assistance accessing these pages, please email [email protected]
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64 Part 4: Financial statements
Department of the Prime Minister and Cabinet financial statements
The following pages 64 to 148 contain PDFs of the Department of the
Prime Minister and Cabinet's financial statements for the period ended
30 June 2015. If you require assistance accessing these pages, please
DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2015
The above statement should be read in conjunction with the accompanying notes.
2015 2014 Notes $'000 $'000 NET COST OF SERVICES Expenses
Employee benefits 4A 272,603 222,904 Suppliers 4B 267,414 142,678 Grants 4C 1,236 729 Depreciation and amortisation 8A 28,225 19,748 Finance costs - unwinding of discount on make good 10B 52 131 Write-down and impairment of assets 8A 497 31 Losses from asset sales 4D 31 -
Total expenses 570,058 386,221 Own-source income Own-source revenue
Sale of goods and rendering of services 5A 13,285 21,466 Resources received free of charge 5B 10,623 6,903
Total own-source revenue 23,908 28,369 Gains
Sale of assets 4D - 54 Gain on reversal of make good 10B 93 -
Total gains 93 54 Total own-source income 24,001 28,423 Net cost of services 546,057 357,798 Revenue from Government - departmental appropriations 528,523 351,150 Deficit attributable to the Australian Government (17,534) (6,648) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus 3,822 - Total comprehensive loss attributable to the Australian Government
(13,712) (6,648)
Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, 2015 includes 12 months of revenue and expenses for the transferred functions while 2014 includes approximately six months.
68 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET STATEMENT OF FINANCIAL POSITION as at 30 June 2015
The above statement should be read in conjunction with the accompanying notes.
Total commitments payable 52,053 94,353 49,724 196,130 Net commitments 47,500 86,259 45,890 179,649
Within 1 year Between 1 to
5 years More than 5
years Total 2014 $'000 $'000 $'000 $'000 Commitments receivable
Sublease rental income (65) (3) - (68) Other commitments (6,268) (8,818) (5,532) (20,618)
Total commitments receivable (6,333) (8,821) (5,532) (20,686) Commitments payable
Operating leases 29,218 92,355 69,820 191,393 Grant commitments 45 - - 45 Other commitments payable 56,101 10,377 - 66,478
Total commitments payable 85,364 102,732 69,820 257,916 Net commitments 79,031 93,911 64,288 237,230
Note: Commitments are GST inclusive where relevant. Operating lease commitment - leases for office accommodation Office accommodation lease payments are subject to periodic increases in accordance with the rent review provisions in the lease agreements. Other commitments payable/receivable Other commitments payable includes contracts entered into for the provision of information and communication technology services for the Department and shared services for a number of agencies.
72 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF COMPREHENSIVE INCOME for the period ended 30 June 2015
The above schedule should be read in conjunction with the accompanying notes.
2015 2014 Notes $'000 $'000 NET COST OF SERVICES Expenses
Employee benefits 17A 874 988 Suppliers 17B 65,403 66,149 Subsidies - Petrol Sniffing Prevention Strategy 1,601 851 Grants 17C 1,218,600 728,033 Depreciation and amortisation 21A 332 356 Finance costs 17D 547 4,096 Impairment of receivables 11,248 2,570 Losses from asset sales 21A 821 1 Payments associated with land councils 17E 88,313 45,999 Payments to corporate Commonwealth entities and companies 17F 130,058 90,076 Payments to Indigenous Land Corporation 49,865 52,463 Mining withholding tax 4,995 2,243
Total expenses 1,572,657 993,825 Income Revenue Non-taxation revenue
Interest - investments 86,688 73,793 Other 18A 20,070 29,062
Total non-taxation revenue 106,758 102,855 Total revenue 106,758 102,855 Gains
Assets received free of charge 21A 818 - Total gains 818 - Total income 107,576 102,855 Net cost of services 1,465,081 890,970
Deficit (1,465,081) (890,970) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation reserves 61,595 (40,373) Items subject to subsequent reclassification to net cost of services
Actuarial losses relating to former Governors-General entitlements 23B (1,903) (1,150)
Total other comprehensive income 59,692 (41,523) Total comprehensive loss (1,405,389) (932,493)
Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed administered responsibility for the Indigenous Affairs function and Women’s policy. As a result, 2015 includes 12 months of revenue and expenses for the transferred functions while 2014 includes approximately eight months.
73Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES as at 30 June 2015
The above schedule should be read in conjunction with the accompanying notes.
Employee provisions 23A 272 325 Non-cash benefits - former Governors-General benefits 23B 17,509 16,594 Other provisions 23C 227 324
Total provisions 18,008 17,243 Total liabilities administered on behalf of Government 48,287 47,945 Net assets 4,304,441 4,159,564
74 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED RECONCILIATION SCHEDULE for the period ended 30 June 2015
The above schedule should be read in conjunction with the accompanying notes.
2015 2014 $'000 $'000 Opening assets less liabilities as at 1 July 4,159,564 (10,902) Net cost of services Income 107,576 102,855 Expenses
Payments to entities other than corporate Commonwealth entities and companies (1,392,734) (851,286) Payments to Indigenous Land Corporation (49,865) (52,463) Payments to Corporate Commonwealth entities and companies (130,058) (90,076)
Transfers (to)/from the Australian Government
Appropriation transfers from Official Public Account Annual appropriation for administered expenses (non-corporate Commonwealth entities and companies) 1,290,468 646,540 Annual appropriation for payment to corporate Commonwealth entities and companies 130,058 90,076 Special appropriations (non-corporate Commonwealth entities and companies) 216,420 211,306 Special account 18,434 15,792
Transfers to Official Public Account (124,618) (16,881) Transfers to Official Public Account Special accounts (18,620) (15,792)
Equity injection to corporate Commonwealth entities and companies 38,124 21,065 Movement in make good asset 22 21 Restructuring (Note 11) - 4,150,832 Administered investments 61,573 (40,373) Revaluation of liabilities relating to former Governors-General entitlements (1,903) (1,150) Closing assets less liabilities as at 30 June 4,304,441 4,159,564
75Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET ADMINISTERED CASH FLOW STATEMENT for the period ended 30 June 2015
The above schedule should be read in conjunction with the accompanying notes.
2015 2014 Notes $'000 $'000 OPERATING ACTIVITIES Cash received
Net GST received 98,080 18,635 Other 9,538 5,835
Total cash received 107,618 24,470 Cash used
Employees 905 1,067 Suppliers 63,956 66,392 Subsidy payments 1,601 851 Grant payments 1,309,520 739,632 Payments to corporate Commonwealth entities and companies 130,058 90,076 Payments associated with land councils administration 40,803 20,598 Land councils distributions 47,510 27,644 Payments to Indigenous Land Corporation 49,865 52,463 Other 4,995 2,053
Total cash used 1,649,213 1,000,776 Net cash used by operating activities 24 (1,541,595) (976,306) INVESTING ACTIVITIES Cash received
Proceeds from realisation of investments 3,982,951 2,616,273 Interest on investments 87,710 45,193
Total cash received 4,070,661 2,661,466 Cash used
Purchase of property, plant and equipment 1 357 Payments to corporate Commonwealth entities and companies 38,124 21,065 Purchase of investments 4,044,383 2,616,740
Total cash used 4,082,508 2,638,162 Net cash used by investing activities (11,847) 23,304
Cash received - restructuring - 7,248 Net decrease in cash held (1,553,442) (945,754) Cash and cash equivalents at the beginning of the reporting period 17,739 5 Cash from Official Public Account
Appropriations 1,675,070 968,987 Special Accounts 18,434 27,174
Total cash from the Official Public Account 1,693,504 996,161 Cash to Official Public Account
Appropriations (124,618) (16,881) Special Accounts (18,620) (15,792)
Total cash to the Official Public Account (143,238) (32,673) Cash and cash equivalents at the end of the reporting period 20A 14,563 17,739
76 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET SCHEDULE OF ADMINISTERED COMMITMENTS for the period ended 30 June 2015
The above schedule should be read in conjunction with the accompanying notes.
Within 1 year Between 1 to
5 years More than 5
years Total 2015 $'000 $'000 $'000 $'000 Commitments receivable
Net GST recoverable on commitments (85,831) (134,708) (32) (220,571) Total commitments receivable (85,831) (134,708) (32) (220,571) Commitments payable
Total commitments payable 1,037,735 1,201,126 2,163 2,241,024 Net commitments 995,918 1,179,103 1,966 2,176,987
Note: Commitments are GST inclusive where relevant. 1 Operating leases comprise seven leases, six for office accommodation for the former Governors-General and one relating to the Indigenous Education (Northern Territory Facilities) program. Lease payments are subject to periodic increase in accordance with the rent review provisions of the lease. 2 Grant commitments relate to amounts payable under agreements in respect of which the grantee has yet to provide the services required or legislative obligations such as the Indigenous Education (Targeted Assistance) Act 2000. Legislative obligations relate to amounts specified in legislation where funding determination has not yet been made. 3 Other commitments mainly relate to activities under the Aboriginal Benefits Account and the Aboriginal and Torres Strait Islander Land Account.
77Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 1: Summary of significant accounting policies
Note 2: Events after the reporting period
Note 3: Net cash appropriation arrangements
Note 4: Expenses
Note 5: Own-source income
Note 6: Fair value measurement
Note 7: Financial assets
Note 8: Non-financial assets
Note 9: Payables
Note 10: Provisions
Note 11: Restructuring
Note 12: Cash flow reconciliation
Note 13: Impact of the G20 Taskforce on the 2014-15 Statement of Comprehensive Income
Note 30: Compliance with statutory conditions for payments from the consolidated revenue fund
Note 31: Assets held in trust
Note 32: Reporting of outcomes
Note 33: Explanations of major budget variances
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78 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 1: Summary of significant accounting policies 1.1 Objectives of the Department The Department of the Prime Minister and Cabinet (the Department) is a not-for-profit Australian Government controlled Department of State. The objective of the Department is to provide policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries on matters that are on the forefront of public and government administration.
The Department is structured to meet two outcomes as outlined below:
Outcome 1: Provide high quality policy advice and support to the Prime Minister, the Cabinet, Portfolio Ministers and Parliamentary Secretaries including through the coordination of government activities, policy development and programme delivery. Outcome 2: Improve results for Indigenous Australians including in relation to school attendance, employment and community safety, through delivering services and programmes, and through measures that recognise the special place that Indigenous people hold in this Nation.
In 2014-15 the Department’s activities were identified under the following programmes: Programme 1.1: Prime Minister and Cabinet
Domestic policy National security and international policy Support services for Government operations Group of 20 summit 2014 Official and ceremonial support Women’s policy.
Programme 2.1: Indigenous
Commonwealth Aboriginal and Torres Strait Islander policy. The continued existence of the Department in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programmes. The Department’s activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government. The Department conducts the following administered activities on behalf of the Government:
Secretariat support to the National Counter-Terrorism Committee Parliament House Briefing Room Grant payments to the National Australia Day Council Limited Compensation and legal expenses Operations support for the Prime Minister’s official residences Support to former Governors-General State occasions and official visits Commonwealth Aboriginal and Torres Strait Islander grant programmes Commonwealth Aboriginal and Torres Strait Islander service delivery Women’s grant programmes.
1.2 Basis of preparation of the financial statements The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.
The financial statements have been prepared in accordance with:
Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; and Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
79Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except where certain assets and liabilities are recorded at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified. Due to the reclassification in the Portfolio Budget Statements 2015-16 for administered supplier, subsidies and grant expenses, the Department identified changes to be made to the comparatives. As a result, the comparatives in relation to suppliers, subsidies and grants were adjusted in the following: Administered Schedule of Comprehensive Income, Administered Schedule of Assets and Liabilities and Administered Cash Flow Statement. Due to the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, the 2014 Statement of Comprehensive Income includes approximately six months of the revenue and expenses for the transferred functions, and the 2014 Administered Schedule of Comprehensive Income includes approximately eight months. The 2015 Statement of Comprehensive Income and the 2015 Administered Schedule of Comprehensive Income includes 12 months of the transferred functions. 1.3 Significant accounting judgements and estimates In the process of applying the accounting policies listed in this note, the Department has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:
The provision for the restoration of leased premises (make good) is based on future obligations relating to the underlying assets and is supported by external valuers’ opinions
The fair value of buildings and property, plant and equipment has been taken to be the market value of similar properties as determined by an independent valuer. Where an active market does not exist these assets are valued at their replacement cost as determined by an independent valuer
The relevant government bond rate has been used to discount non-current liabilities The liability for long service leave has been estimated using an actuarial assessment based on the FRR
requirements. This takes into account expected salary growth, attrition and future discounting using the government bond rates and is based on the actuarial assessment determined by the Australian Government Actuary.
The provision for non-cash former Governors-General entitlements relate to post-employment benefits such as office facilities, administrative support and transport. The future liability for these benefits is based on the actuarial assessment determined by the Australian Government Actuary.
The Department made no other assumptions or estimates identified as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. 1.4 New Australian accounting standards Adoption of New Australian Accounting Standard requirements No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards/revised standards/interpretations/amending standards issued prior to the sign-off date that were applicable to the current reporting period:
AASB 1055 - Budgetary Reporting - March 2013 (Principal) – Disclosure impact. Other new standards, revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the Department. Future Australian Accounting Standard requirements
There are no new/revised/amending standards and/or interpretations issued by the Australian Accounting Standards Board prior to the sign-off date, that are expected to have a future material impact on the Department’s financial statements which are applicable to the Department for future reporting periods.
The following new standards will have a disclosure impact only in future reporting periods:
2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative
80 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
2015-16 Amendments to Australian Accounting Standards – Extending Related Party Disclosures to Not-for-Profit Public Sector Entities.
1.5 Revenue Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
The amount of revenue, stage of completion and transaction costs incurred can be reliably measured The probable economic benefits associated with the transaction will flow to the Department.
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction. Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable. 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 either revenue or gains depending on their nature. 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 Department 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. 1.6 Gains Sale of assets Gains from disposal of assets are recognised when control of the asset has passed to the buyer. 1.7 Transactions with the Australian Government as owner Equity injections Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year. Restructuring of Administrative Arrangements Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity. Other Distributions to/from Owners The FRR require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. 1.8 Grants The Department applies a uniform policy for all grants. Grant liabilities are recognised to the extent that (i) the 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. A commitment is recorded when the Department enters into an agreement to make these grants but services have not been performed or criteria satisfied. Where grant moneys are paid in advance of performance or eligibility, a prepayment is recognised. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.
81Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
1.9 Employee benefits Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick 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 Department’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 by reference to the work of an actuary as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Separation and redundancy A liability is made for separation and redundancy benefit payments. The Department recognises a liability 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 Department's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or another fund of their choice. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. 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 Department makes employer contributions to the employees' superannuation scheme. For Commonwealth defined benefits schemes, these rates are determined by an actuary to be sufficient to meet the current cost to the Government. The Department 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 final fortnight of the year. During 2014-15, an error in the calculation of superannuation benefits to employee participating in accumulation superannuation plan was identified. Adjustments to rectify the error were posted during the 2014-15 year. No adjustment to prior years occurred. 1.10 Leases Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. The Department currently has 24 (2014: 26) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. The Department has made a make good provision to reflect the present value of this obligation. The Department administers 5 (2014: 5) agreements for the leasing of premises which have provisions requiring the premises to be restored to their original condition at the conclusion of the lease. A make good provision has been raised to reflect the present value of this obligation.
82 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
1.11 Cash and cash equivalents Cash is recognised at its nominal amount. Cash and cash equivalents include:
Cash on hand Demand deposits in bank accounts with an original maturity of three months or less that are readily convertible
to known amounts of cash and subject to insignificant risk of changes in value Cash in special accounts.
1.12 Financial assets The Department classifies its financial assets in the following categories:
Held-to-maturity investments Available for sale financial assets Loans and receivables.
All financial assets are expected to be recovered within 12 months except where indicated. Interest is recognised by applying the effective interest rate. Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period. 1.13 Financial liabilities Supplier and other payables 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). Financial liabilities are recognised and derecognised upon ‘trade date’. 1.14 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant 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. The Department is not aware of any material departmental quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements (2014: Nil). The Department is not aware of any significant departmental remote contingencies that would require disclosure (2014: Nil). 1.15 Property, plant and equipment and intangibles Asset recognition threshold Purchases of property, plant and equipment and intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than IT assets 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. This is particularly relevant to ‘make good’ provisions in property leases taken up by the Department where there exists an obligation to restore the asset to its original condition. These costs are included in the value of the Department's property, plant and equipment with a corresponding provision for the ‘make good’ recognised.
83Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Revaluations Fair values for each class of asset are determined as shown below:
Asset class Fair value measurement Land Market selling price
Buildings excluding leasehold improvements
Market selling price and depreciated replacement cost
Leasehold improvements
Depreciated replacement cost
Property, plant and equipment Market selling price and depreciated replacement cost
Intangibles Depreciated replacement cost
All property, plant and equipment assets were formally valued in 2015 by independent valuers. Upon revaluation, any accumulated depreciation 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 Department 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:
2015 2014
Departmental assets
Buildings excluding leasehold improvements 2 to 50 years 2 to 50 years
Leasehold improvements Lease term Lease term
Property, plant and equipment 1 to 50 years 1 to 50 years
Intangibles 2 to 7 years 2 to 7 years
Administered assets
Buildings excluding leasehold improvements 38 to 50 years 38 to 50 years
Leasehold improvements Lease term Lease term
Property, plant and equipment 4 to 112 years 4 to 112 years Impairment All assets were assessed for impairment during 2015. 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. 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.
84 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
1.16 Taxation The Department is exempt from all forms of taxation except Fringe Benefits Tax (FBT), the Goods and Services Tax (GST) and Mining Withholding Tax (WHT). Revenues, expenses and assets are recognised net of GST except:
Where the amount of GST incurred is not recoverable from the Australian Taxation Office For receivables and payables Commitments payable and receivable.
1.17 Reporting of administered activities Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes. Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards. Administered cash transfers to and from the Official Public Account Revenue collected by the Department for use by the Government rather than the Department 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 Department on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule. Revenue All administered revenues are revenues relating to ordinary activities performed by the Department on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed. Interest revenue is recognised using the effective interest method. Loans and receivables Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through the Administered Schedule of Comprehensive Income. Former Governors-General benefits The Department has responsibility for the administration of non-cash benefits provided to former Governors-General. These entitlements are regarded as post-employment benefits and represent the provision of office facilities, administrative support and transport. A future liability for these benefits is recognised in the administered accounts. Administered investments Administered investments in subsidiaries are not consolidated because their consolidation is relevant only at the whole-of-government level. Administered investments other than those held for sale are classified as available-for-sale and are measured at their fair value as at 30 June 2015. Fair value has been taken to be the Australian Government's proportional interest in the net assets as advised by the entities as at the end of reporting period. Administered contingent assets and liabilities The Department is not aware of any material administered quantifiable or unquantifiable contingent assets or liabilities as at the signing date that would require disclosure in the financial statements (2014: Nil). The Department is not aware of any significant administered remote contingencies that would require disclosure (2014: Nil). Administered employee benefits The expense and liabilities for services rendered by staff employed in the Prime Minister’s Official Establishments and in support for former Governors-General are recognised as administered items. Accounting policies are consistent with those applied to departmental items. Grants and Subsidies The Department administers a number of grants and subsidy schemes on behalf of the Government. Settlement is usually made according to the terms and conditions of each grant. This is usually within 30 days of performance or eligibility.
85Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
All subsidies are in connection with external parties and are expected to be settled in no more than 12 months. The Indigenous grants and subsidies are driven by five programmes that constitute the flexible and need-focused Indigenous Advancement Strategy (IAS):
Jobs, land and economy Children and schooling Safety and wellbeing Culture and capability Remote Australia strategies.
Payments to corporate Commonwealth entities and companies Payments to corporate Commonwealth entities and companies from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the Department. The appropriation to the Department is disclosed in Table A of the Appropriations Note.
1.18 Commonwealth Expenditure The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.
86 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 2: Events after the reporting period Departmental
The Digital Transformation Office was established as an executive agency under the Communications portfolio on 1 July 2015. Net liabilities estimated at $0.580 million and commitments estimated at $0.090 million will be transferred from the Department to the Digital Transformation Office during 2015-16. Administered There are no known events occurring after the reporting period that could impact on the financial statements.
87Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 3: Net cash appropriation arrangements 2015 2014 $'000 $'000 Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations1 14,513 13,100 Plus: depreciation/amortisation expenses previously funded through revenue appropriation (28,225) (19,748)
Total comprehensive loss - as per the Statement of Comprehensive Income (13,712) (6,648) 1From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.
88 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Defined contribution plans 17,413 12,294 Defined benefit plans 24,264 18,553
Leave and other entitlements 29,100 18,630 Separation and redundancies 103 18,988 Other 3,898 5,185 Total employee benefits 272,603 222,904
Note 4B: Suppliers Goods and services supplied or rendered
Consultants, legal, contractors and secondees 62,066 40,845 Equipment, repairs and maintenance 16,137 3,311 General expenses1 13,138 7,917 Venue hire 21,772 3,000 Office accommodation, facility management and security 13,779 4,133 Information technology and communication 93,567 48,383 Travel 12,621 8,354
Total goods and services 233,080 115,943 Goods supplied in connection with
Related parties 13,095 2,161 External parties 5,849 3,648
Total goods supplied 18,944 5,809 Services rendered in connection with
Related parties 64,182 47,802 External parties 149,954 62,332
Total services rendered 214,136 110,134 Total goods and services supplied or rendered 233,080 115,943 Other supplier expenses Operating lease rentals in connection with
Workers compensation expenses 4,326 1,782 Total other supplier expenses 34,334 26,735 Total suppliers 267,414 142,678
1 Includes $0.029 million audit fees to the ANAO for the financial statement audit of the Aboriginal and Torres Strait Islander Land Account (ATSILA) (2014: $0.029 million), which was not a resource received free of charge. Note 4C: Grants Public sector
Australian Government entities (related parties) 80 - Private sector
Accommodation received free of charge 514 319 Assets received free of charge - 279 Total resources received free of charge 10,623 6,903
90 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 6:
Fa
ir va
lue
mea
sure
men
t Th
e fo
llow
ing
tabl
es p
rovi
de a
n an
alys
is o
f ass
ets
that
are
mea
sure
d at
fair
valu
e.
The
diffe
rent
leve
ls o
f the
fair
valu
e hi
erar
chy
are
defin
ed b
elow
. Le
vel 1
: Q
uote
d pr
ices
(una
djus
ted)
in a
ctiv
e m
arke
ts fo
r ide
ntic
al a
sset
s or
liab
ilitie
s th
at th
e en
tity
can
acce
ss a
t mea
sure
men
t dat
e;
Leve
l 2:
Inpu
ts o
ther
than
quo
ted
pric
es in
clud
ed w
ithin
Lev
el 1
that
are
obs
erva
ble
for t
he a
sset
or l
iabi
lity,
eith
er d
irect
ly (i
.e. a
s pr
ices
) or i
ndire
ctly
(i.e
. der
ived
from
pric
es);
and
Leve
l 3:
Inpu
ts fo
r the
ass
et o
r lia
bilit
y th
at a
re n
ot b
ased
on
obse
rvab
le m
arke
t dat
a (u
nobs
erva
ble
inpu
ts).
Not
e 6A
: Fai
r val
ue m
easu
rem
ents
, val
uatio
n te
chni
ques
and
inpu
ts u
sed
Fa
ir va
lue
mea
sure
men
ts a
t the
en
d of
the
repo
rtin
g pe
riod
For L
evel
s 2
and
3 fa
ir va
lue
mea
sure
men
ts
20
15
2014
C
ateg
ory
(Lev
el 1
, 2
or 3
1 ) Va
luat
ion
tech
niqu
es
Inpu
ts u
sed
Ran
ge (w
eigh
ted
aver
age)
Sens
itivi
ty o
f the
fair
valu
e m
easu
rem
ent t
o ch
ange
s in
ob
serv
able
inpu
ts
$'
000
$'00
0 N
on-fi
nanc
ial a
sset
s3
Land
19
,634
18
,820
2
Mar
ket A
ppro
ach
Adju
sted
mar
ket t
rans
actio
ns (p
rice
per
squa
re m
etre
)
(a)
Land
-
4,74
0 3
Mar
ket A
ppro
ach
Adju
sted
mar
ket t
rans
actio
ns
0%-3
0%
n/a
Build
ings
36
,158
39
,738
2
Mar
ket A
ppro
ach
Adju
sted
mar
ket t
rans
actio
ns
n/
a Bu
ildin
gs
- 4,
074
3 M
arke
t App
roac
h Ad
just
ed m
arke
t tra
nsac
tions
0%
-30%
n/
a Bu
ildin
gs
15,8
63
18,7
97
3 C
ost A
ppro
ach
Rep
lace
men
t Cos
t
n/a
C
onsu
med
eco
nom
ic
bene
fit/O
bsol
esce
nce
of a
sset
3%
-100
%
(52%
) (b
)
Leas
ehol
d im
prov
emen
ts
28,8
50
31,8
46
3 C
ost A
ppro
ach
Rep
lace
men
t Cos
t
(a)
C
onsu
med
eco
nom
ic
bene
fit/O
bsol
esce
nce
of a
sset
3%
-100
%
(52%
) (b
)
Prop
erty
, pla
nt a
nd e
quip
men
t -
2,76
2 2
Mar
ket A
ppro
ach
Adju
sted
mar
ket t
rans
actio
ns
n/
a Pr
oper
ty, p
lant
and
equ
ipm
ent
18,9
10
15,3
70
3 C
ost A
ppro
ach
Con
sum
ed e
cono
mic
be
nefit
/Obs
oles
cenc
e of
ass
et
6%-1
00%
(1
1%-7
8%)
(b)
Inta
ngib
les
13,9
13
- 3
Cos
t App
roac
h C
onsu
med
eco
nom
ic
bene
fit/O
bsol
esce
nce
of a
sset
20
%-1
00%
(7
8%)
(b)
Tota
l non
-fina
ncia
l ass
ets
133,
328
136,
147
Ass
ets
held
for s
ale2
La
nd
150
305
2 M
arke
t App
roac
h Ad
just
ed m
arke
t tra
nsac
tions
n/a
Build
ings
28
0 48
0 2
Mar
ket A
ppro
ach
Adju
sted
mar
ket t
rans
actio
ns
n/
a To
tal a
sset
s he
ld fo
r sal
e 43
0 78
5
Tota
l fai
r val
ue m
easu
rem
ents
of
ass
ets
in th
e st
atem
ent o
f fin
anci
al p
ositi
on
133,
758
136,
932
91Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
(a) A significant increase (decrease) in the price per square metre would result in a significantly higher (lower) fair value measurement. (b) A significant increase (decrease) in the consumed economic benefit / obsolescence of asset would result in a significantly lower (higher) fair value measurement. 1Recurring and non-recurring Level 3 fair value measurements - valuation process The Department procured valuation services from valuation experts and relied on the valuations made by these experts. The experts provided written assurance that the models developed to value assets are in compliance with accounting standards. The Department tests the procedures of the valuation model as an internal management review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. There is no change in the valuation technique since the prior year. Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (Depreciated Replacement Cost or DRC) approach. Professional judgement has been applied in calculating the consumed economic benefit / asset obsolescence relevant to the asset under consideration. The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset. 2 PM&C is currently marketing one residential property (staff housing) that is no longer essential to operational requirements. The asset is measured at the lesser of its carrying amount and fair value less cost to sell and is valued at a non-recurring basis. All other assets are valued on a recurring basis. 3Fair value measurement - highest and best use PM&C's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.
92 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 6B
: Rec
onci
liatio
n fo
r rec
urrin
g Le
vel 3
fair
valu
e m
easu
rem
ents
Rec
urrin
g Le
vel 3
fair
valu
e m
easu
rem
ents
- re
conc
iliat
ion
for a
sset
s
Non
-fina
ncia
l ass
ets
La
nd
Bui
ldin
gs
Leas
ehol
d im
prov
emen
ts
Prop
erty
, pla
nt
and
equi
pmen
t In
tang
ible
s To
tal
20
15
2014
20
15
2014
20
15
2014
20
15
2014
20
15
2014
20
15
2014
$'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00 0
$'00
0 $'
000
As
at 1
Jul
y 4,
740
- 22
,871
-
31,8
46
15,9
26
15,3
70
13,5
66
- -
74,8
27
29,4
92
Tota
l gai
ns/(l
osse
s) re
cogn
ised
in n
et c
ost o
f se
rvic
es1
- -
(11,
478)
(2
,248
) (6
,171
) (5
,114
) (6
,721
) (4
,751
) (3
,910
) -
(28,
280)
(1
2,11
3)
Tota
l gai
ns/(l
osse
s) re
cogn
ised
in o
ther
co
mpr
ehen
sive
inco
me2
- -
3,48
9 -
3,11
2 -
1,10
4 -
1,98
3 -
9,68
8 -
Pur
chas
es
- -
353
- 63
1,
171
6,39
5 7,
368
6,14
2 -
12,9
53
8,53
9 R
ecla
ssifi
catio
ns
- -
- -
- 81
3 -
(813
) -
- -
- Tr
ansf
ers
into
leve
l 33
- -
4,70
2 -
- -
2,7
62
- 9,
698
- 17
,162
-
Tran
sfer
s ou
t of l
evel
33
(4,7
40)
- (4
,074
) -
- -
- -
- -
(8,8
14)
- A
dditi
ons
thro
ugh
rest
ruct
ure
(Not
e 11
) -
4,74
0 -
25,1
19
- 19
,050
-
- -
- -
48,9
09
Tota
l as
at 3
0 Ju
ne
- 4,
740
15,8
63
22,8
71
28,8
50
31,8
46
18,9
10
15,3
70
13,9
13
- 77
,536
74
,827
1. T
hese
gai
ns/(l
osse
s) a
re p
rese
nted
in th
e S
tate
men
t of C
ompr
ehen
sive
Inco
me
unde
r 'D
epre
ciat
ion
and
amor
tisat
ion'
, 'L
osse
s fro
m a
sset
sal
es' a
nd 'W
rite-
dow
n an
d im
pairm
ent o
f ass
ets'
2.
The
se g
ains
/(los
ses)
are
pre
sent
ed in
Oth
er C
ompr
ehen
sive
Inco
me
unde
r 'C
hang
es in
ass
et re
valu
atio
n su
rplu
s'.
3. T
he D
epar
tmen
t und
erto
ok a
n as
set v
alua
tion
proc
ess
as a
t 30
June
201
5, re
sulti
ng in
mov
emen
ts o
f a n
umbe
r of a
sset
s be
twee
n le
vel 2
and
leve
l 3.
93Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 7: Financial assets 2015 2014 $'000 $'000 Note 7A: Trade and other receivables Goods and services receivables in connection with
Related parties 1,311 1,472 External parties 452 94
Total goods and services receivables 1,763 1,566 Appropriations receivable
Existing programs 113,325 86,236 Total appropriations receivable 113,325 86,236 Other receivables
Total other receivables 3,502 36,126 Total trade and other receivables (gross) 118,590 123,928 Less impairment allowance
Goods and services (78) - Total impairment allowance (78) - Total trade and other receivables (net) 118,512 123,928 All receivables are expected to be recovered in no more than 12 months. Trade and other receivables (gross) aged as follows
Not overdue 117,668 123,453 Overdue by
0 to 30 days 120 183 31 to 60 days 396 189 61 to 90 days 38 68 More than 90 days 368 35
Total receivables (gross) 118,590 123,928 Impairment allowance aged as follows
Not overdue - - Overdue by
0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (78) -
Total impairment allowance (78) - 1 This relates to the appropriation funding for employee leave entitlements transferred as a result of the Administrative Arrangements Orders on 18 September and 12 December 2013. This funding has been transferred to the Department and is recognised as appropriation receivable in 2015. Refer to Note 11.
94 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 8: Non-financial assets The Department is currently drafting a property portfolio divestment strategy. This strategy will result in a number of properties throughout Australia being sold within the next 12 months. Impairment of non-financial assets
A net impairment of $382,000 was recognised in 2015 (2014: $31,000) for property plant and equipment. A revaluation was conducted in 2015 by independent valuers. All revaluations were conducted in accordance with the revaluation policy stated at Note 1. A net impairment of $36,000 was recognised in 2015 (2014: Nil) for intangibles. No intangibles are expected to be sold or disposed of within the next 12 months.
95Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 8A
: Rec
onci
liatio
n of
the
open
ing
and
clos
ing
bala
nces
of p
rope
rty,
pla
nt a
nd e
quip
men
t and
inta
ngib
les
Rec
onci
liatio
n of
the
open
ing
and
clos
ing
bala
nces
of p
rope
rty,
pla
nt a
nd e
quip
men
t and
inta
ngib
les
for 2
015
La
nd
Bui
ldin
gs
Leas
ehol
d im
prov
emen
ts
Plan
t and
eq
uipm
ent
Com
pute
r so
ftwar
e in
tern
ally
de
velo
ped
Com
pute
r so
ftwar
e pu
rcha
sed
Tota
l
$’00
0 $’00
0 $’00
0 $’00
0 $’00
0 $’00
0 $’00
0 A
s at
1 J
uly
2014
Gro
ss b
ook
valu
e 23
,560
67
,876
36
,774
19
,144
12
,194
5,
256
164,
804
Wor
k in
pro
gres
s -
887
449
3,96
9 2,
886
- 8,
191
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n an
d im
pairm
ent
- (6
,154
) (5
,377
) (4
,981
) (7
,578
) (3
,060
) (2
7,15
0)
Tota
l as
at 1
Jul
y 20
14
23,5
60
62,6
09
31,8
46
18,1
32
7,50
2 2,
196
145,
845
Add
ition
s
By
purc
hase
-
353
63
6,39
5 6,
142
- 12
,953
R
eval
uatio
ns a
nd im
pairm
ents
reco
gnis
ed in
oth
er c
ompr
ehen
sive
in
com
e (3
,925
) 1,
463
3,11
2 1,
104
818
1,16
5 3,
737
Rec
lass
ifica
tions
-
(2)
(5)
(556
) (1
) -
(564
) D
epre
ciat
ion/
amor
tisat
ion
- (1
2,40
3)
(6,0
20)
(5,9
29)
(2,9
96)
(877
) (2
8,22
5)
Writ
e-do
wn
and
impa
irmen
ts re
cogn
ised
in n
et c
ost o
f ser
vice
s -
- (1
46)
(236
) (2
8)
(8)
(418
) To
tal a
s at
30
June
201
5 19
,635
52
,020
28
,850
18
,910
11
,437
2,
476
133,
328
Tota
l as
at 3
0 Ju
ne 2
015
repr
esen
ted
by
G
ross
boo
k va
lue
Fa
ir va
lue
19,6
35
51,5
75
28,9
77
14,4
89
5,18
9 2,
476
122,
341
Wor
k in
pro
gres
s -
474
92
5,62
0 6,
536
- 12
,722
A
ccum
ulat
ed d
epre
ciat
ion/
amor
tisat
ion
and
impa
irmen
t -
(29)
(2
19)
(1,1
99)
(288
) -
(1,7
35)
Tota
l as
at 3
0 Ju
ne 2
015
19,6
35
52,0
20
28,8
50
18,9
10
11,4
37
2,47
6 13
3,32
8
96 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Rec
onci
liatio
n of
the
open
ing
and
clos
ing
bala
nces
of p
rope
rty, p
lant
and
equ
ipm
ent a
nd in
tang
ible
s fo
r 201
4
La
nd
Bui
ldin
gs
Leas
ehol
d im
prov
emen
ts
Pla
nt a
nd
equi
pmen
t
Com
pute
r so
ftwar
e in
tern
ally
de
velo
ped
Com
pute
r so
ftwar
e pu
rcha
sed
Tota
l
$’000
$’000
$’000
$’000
$’000
$’000
$’000
As
at 1
Jul
y 20
13
G
ross
boo
k va
lue
Fa
ir va
lue
- -
16,1
89
10,0
41
5,61
0 3,
407
35,2
47
Wor
k in
pro
gres
s -
- -
3,95
5 4,
733
- 8,
688
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n an
d im
pairm
ent
- -
(263
) (3
03)
(4,7
75)
(2,1
03)
(7,4
44)
Tota
l as
at 1
Jul
y 20
13
- -
15,9
26
13,6
93
5,56
8 1,
304
36,4
91
Add
ition
s
By
purc
hase
-
- 1,
171
7,36
8 2,
596
1,62
1 12
,756
Fr
om a
cqui
sitio
ns o
f ent
ities
or o
pera
tions
(inc
l. re
stru
ctur
e)
23,5
60
68,7
63
19,0
50
2,63
5 2,
141
228
116,
377
Rec
lass
ifica
tions
-
- 81
3 (8
13)
- -
- D
epre
ciat
ion/
amor
tisat
ion
- (6
,154
) (5
,114
) (4
,720
) (2
,803
) (9
57)
(19,
748)
Im
pairm
ents
reco
gnis
ed in
net
cos
t of s
ervi
ces
- -
- (3
1)
- -
(31)
To
tal a
s at
30
June
201
4 23
,560
62
,609
31
,846
18
,132
7,
502
2,19
6 14
5,84
5
To
tal a
s at
30
June
201
4 re
pres
ente
d by
Gro
ss b
ook
valu
e
Fair
valu
e 23
,560
67
,876
36
,774
19
,144
12
,194
5,
256
164,
804
Wor
k in
pro
gres
s -
887
449
3,96
9 2,
886
- 8,
191
Acc
umul
ated
dep
reci
atio
n/am
ortis
atio
n an
d im
pairm
ent
- (6
,154
) (5
,377
) (4
,981
) (7
,578
) (3
,060
) (2
7,15
0)
Tota
l as
at 3
0 Ju
ne 2
014
23,5
60
62,6
09
31,8
46
18,1
32
7,50
2 2,
196
145,
845
97Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
2015 2014 $'000 $'000 Note 8B: Prepayments Prepayments expected to be recovered
No more than 12 months 2,451 6,137 More than 12 months 153 76
Total prepayments 2,604 6,213 Note 9: Payables Note 9A: Suppliers Trade creditors and accruals 31,714 35,549 Total suppliers 31,714 35,549 Suppliers expected to be settled within 12 months
Related parties 11,061 18,602 External parties 20,653 16,947
Total suppliers 31,714 35,549 Settlement is usually made within 30 days. Note 9B: Other payables Salaries and wages 7,202 6,636 Separation and redundancies payable 520 15,186 Superannuation 1,451 1,352 Unearned income 81 51 Lease liability 12,478 12,310 Lease incentive 3,700 2,974 Other 907 905 Total other payables 26,339 39,414 Other payables expected to be settled
No more than 12 months 11,086 23,401 More than 12 months 15,253 16,013
Total other payables 26,339 39,414 Note 10: Provisions
Note 10A: Employee provisions Annual Leave 25,680 28,443 Long service leave 47,078 47,618 Total employee provisions 72,758 76,061 Employee provisions expected to be settled
No more than 12 months 21,926 22,393 More than 12 months 50,832 53,668
Total employee provisions 72,758 76,061
98 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 10B: Make good provisions
Make good
Provision Total $’000 $’000 As at 1 July 2014 1,302 1,302 Additional provisions made 79 79 Amounts used (150) (150) Gain on reversal of provision (93) (93) Unwinding of discount or change in discount rate 52 52 Total as at 30 June 2015 1,190 1,190
99Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 11
: Res
truc
turin
g N
ote
11A
: Dep
artm
enta
l res
truc
turin
g
D
epar
tmen
tal r
estr
uctu
ring
(201
4-15
) Th
e D
epar
tmen
t did
not
ass
ume
or re
linqu
ish
any
depa
rtmen
tal f
unct
ions
as
a re
sult
of re
stru
ctur
ing
durin
g 20
15.
Dep
artm
enta
l res
truc
turin
g (2
013-
14)
D
ereg
ulat
ion
Offi
ce
for
Wom
en
IND
IGEN
OU
S A
FFA
IRS
Fi
nanc
e D
SS
AG
D
DoC
D
EEW
R
Ed
Emp
DSS
D
oE
Hea
lth
Indu
stry
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 FU
NC
TIO
N A
SSU
MED
Asse
ts re
cogn
ised
Rec
eiva
bles
1,
791
460
825
456
- -
- 28
,115
1,
265
- -
App
ropr
iatio
n re
ceiv
able
-
- -
- 3,
942
- -
- -
1,75
0 -
Land
and
bui
ldin
gs
- -
- -
- 2,
535
119
108,
719
- -
- P
rope
rty, p
lant
and
equ
ipm
ent
- -
- -
- 18
27
2,
550
- 40
-
Inta
ngib
les
93
- -
- -
197
- 2,
079
- -
- A
sset
s he
ld fo
r sal
e -
- -
- -
- -
1,69
3 -
- -
Tota
l ass
ets
reco
gnis
ed
1,88
4 46
0 82
5 45
6 3,
942
2,75
0 14
6 14
3,15
6 1,
265
1,79
0 -
Liab
ilitie
s re
cogn
ised
Leas
e pa
yabl
es
- -
- -
- -
- 8,
171
- -
- Em
ploy
ee p
rovi
sion
s 1,
969
474
970
456
- 2,
941
9,97
0 30
,656
1,
564
2,10
2 36
4 M
ake
good
pro
visi
ons
- -
- -
- -
- 75
4 -
- -
Tota
l lia
bilit
ies
reco
gnis
ed
1,96
9 47
4 97
0 45
6 -
2,94
1 9,
970
39,5
81
1,56
4 2,
102
364
Net
ass
ets/
(liab
ilitie
s) a
ssum
ed
(85)
(1
4)
(145
) -
3,94
2 (1
91)
(9,8
24)
103,
575
(299
) (3
12)
(364
) In
com
e
Rec
ogni
sed
by th
e re
ceiv
ing
entit
y 18
8 -
- -
- -
- -
- -
- R
ecog
nise
d by
the
losi
ng e
ntity
40
1
- -
- -
- 1,
785
2,47
7 -
- To
tal i
ncom
e 22
8 1
- -
- -
- 1,
785
2,47
7 -
- Ex
pens
es
R
ecog
nise
d by
the
rece
ivin
g en
tity
4,86
9 1,
811
- -
- -
- -
- -
- R
ecog
nise
d by
the
losi
ng e
ntity
3,
482
703
1,61
5 55
0 12
,814
4,
620
6,93
3 64
,880
2,
477
2,63
2 46
3 To
tal e
xpen
ses
8,35
1 2,
514
1,61
5 55
0 12
,814
4,
620
6,93
3 64
,880
2,
477
2,63
2 46
3
100 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
es:
1. A
s a
resu
lt of
mac
hine
ry o
f gov
ernm
ent c
hang
es th
at w
ere
refle
cted
in th
e A
dmin
istra
tive
Arra
ngem
ents
Ord
er (A
AO) o
f 18
Sep
tem
ber 2
013,
3 O
ctob
er 2
013
and
12 D
ecem
ber 2
013
(the
AAO
ch
ange
s), t
he D
epar
tmen
t ass
umed
resp
onsi
bilit
y fo
r the
follo
win
g fu
nctio
ns:
- D
ereg
ulat
ion
from
the
Dep
artm
ent o
f Fin
ance
, how
ever
no
Adm
inis
tere
d fu
ndin
g or
bal
ance
s w
ere
trans
ferre
d;
- O
ffice
for W
omen
from
the
Dep
artm
ent o
f Soc
ial S
ervi
ces
(DSS
); an
d -
Indi
geno
us A
ffairs
func
tions
from
Atto
rney
Gen
eral
's D
epar
tmen
t (A
GD
), D
epar
tmen
t of C
omm
unic
atio
ns (D
oC),
form
er D
epar
tmen
t of E
mpl
oym
ent,
Edu
catio
n an
d W
orkp
lace
Rel
atio
ns
(DE
EWR
), D
epar
tmen
t of E
duca
tion
(Ed)
, Dep
artm
ent o
f Em
ploy
men
t (Em
p), D
epar
tmen
t of E
nviro
nmen
t (D
oE),
Dep
artm
ent o
f Hea
lth (H
ealth
) and
the
Dep
artm
ent o
f Ind
ustry
(Ind
ustry
). 2.
The
net
ass
ets
assu
med
from
all
entit
ies
wer
e $9
6.28
3m.
3. T
he In
dige
nous
Affa
irs fu
nctio
n fo
r inc
ome
and
expe
nses
reco
gnis
ed b
y th
e re
ceiv
ing
entit
y ha
ve n
ot b
een
split
by
trans
ferr
ing
Dep
artm
ent f
or th
e R
estru
ctur
e N
ote.
The
tota
l for
Indi
geno
us
Affa
irs is
sho
wn
in N
ote
34B,
Out
com
e 2.
Nat
iona
l C
ompa
ct,
Phila
nthr
opy
and
Volu
ntee
ring
D
SS
$'
000
FUN
CTI
ON
REL
INQ
UIS
HED
Liab
ilitie
s re
linqu
ishe
d
Empl
oyee
pro
visi
ons
123
Tota
l lia
bilit
ies
relin
quis
hed
123
Net
liab
ilitie
s re
linqu
ishe
d 12
3
N
otes
: 1.
As
a re
sult
of m
achi
nery
of g
over
nmen
t cha
nges
that
wer
e re
flect
ed in
the
AAO
of 1
8 S
epte
mbe
r 201
3, 3
Oct
ober
201
3 an
d 12
Dec
embe
r 201
3 (th
e AA
O c
hang
es),
the
Dep
artm
ent t
rans
ferre
d re
spon
sibi
lity
for t
he N
atio
nal C
ompa
ct, P
hila
nthr
opy
and
Vol
unte
erin
g fu
nctio
n to
DS
S.
2. T
he n
et li
abilit
ies
relin
quis
hed
to a
ll en
titie
s w
as $
0.12
3m.
101Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 11
B: A
dmin
iste
red
rest
ruct
urin
g A
dmin
iste
red
rest
ruct
urin
g (2
014-
15)
N
o ad
min
iste
red
func
tions
wer
e as
sum
ed o
r rel
inqu
ishe
d as
a re
sult
of re
stru
ctur
ing
durin
g 20
15.
Adm
inis
tere
d re
stru
ctur
ing
(201
3-14
)
O
ffice
for
Wom
en
IND
IGEN
OU
S AF
FAIR
S
DSS
AG
D
DoC
D
EEW
R
Emp
Ed
DSS
D
oE
Hea
lth
Indu
stry
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
FUN
CTI
ON
S A
SSU
MED
As
sets
reco
gnis
ed
Cas
h -
- -
- -
- 7,
248
- -
- Tr
ade
and
othe
r rec
eiva
bles
-
- -
946
63
1,84
7 25
,393
68
58
9 14
5 A
dmin
iste
red
inve
stm
ents
-
- -
- -
- 1,
696,
285
- -
38,4
28
Oth
er In
vest
men
ts
- -
- -
- -
2,42
1,33
0 -
- -
Oth
er n
on-fi
nanc
ial a
sset
s -
- -
- -
- 8,
859
- -
- To
tal a
sset
s re
cogn
ised
-
- -
946
63
1,84
7 4,
159,
115
68
589
38,5
73
Liab
ilitie
s re
cogn
ised
S
uppl
ier p
ayab
les
- -
- 13
8 4,
556
6 1,
716
- 19
9 31
G
rant
s pa
yabl
e -
- -
- -
- 83
0 -
- -
Oth
er p
ayab
le
- -
-
- 96
0 3,
501
- -
- To
tal l
iabi
litie
s re
cogn
ised
-
- -
138
4,55
6 96
6 6,
047
- 19
9 31
N
et a
sset
s/(li
abili
ties)
ass
umed
-
- -
808
(4,4
93)
881
4,15
3,06
8 68
39
0 38
,542
In
com
e
R
ecog
nise
d by
the
rece
ivin
g en
tity
- -
- -
- -
- -
- -
Rec
ogni
sed
by th
e lo
sing
ent
ity
- -
11
771
82
14,3
58
24,6
80
3 -
- To
tal I
ncom
e -
- 11
77
1 82
14
,358
24
,680
3
- -
Expe
nses
R
ecog
nise
d by
the
rece
ivin
g en
tity
2,55
3 -
- -
- -
- -
- -
Rec
ogni
sed
by th
e lo
sing
ent
ity
1,15
3 30
,835
8,
077
80,2
25
32,5
37
9,59
2 13
5,64
3 32
,468
71
,754
7,
894
Tota
l exp
ense
s 3,
706
30,8
35
8,07
7 80
,225
32
,537
9,
592
135,
643
32,4
68
71,7
54
7,89
4
102 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
es:
1. A
s a
resu
lt of
mac
hine
ry o
f gov
ernm
ent c
hang
es th
at w
ere
refle
cted
in th
e A
dmin
istra
tive
Arra
ngem
ents
Ord
er (A
AO) o
f 18
Sep
tem
ber 2
013,
and
12
Dec
embe
r 201
3 (th
e A
AO c
hang
es),
PM
&C
ass
umed
resp
onsi
bilit
y fo
r the
follo
win
g fu
nctio
ns:
- D
ereg
ulat
ion
from
the
Dep
artm
ent o
f Fin
ance
, how
ever
no
Adm
inis
tere
d fu
ndin
g or
bal
ance
s w
ere
trans
ferre
d;
- O
ffice
for W
omen
from
the
Dep
artm
ent o
f Soc
ial S
ervi
ces
(DSS
); an
d -
Indi
geno
us A
ffairs
func
tions
from
Atto
rney
Gen
eral
's D
epar
tmen
t (A
GD
), D
epar
tmen
t of C
omm
unic
atio
ns (D
oC),
form
er D
epar
tmen
t of E
mpl
oym
ent,
Edu
catio
n an
d W
orkp
lace
Rel
atio
ns
(DE
EWR
), D
epar
tmen
t of E
nviro
nmen
t (E
nviro
nmen
t), D
epar
tmen
t of H
ealth
(Hea
lth) a
nd th
e D
epar
tmen
t of I
ndus
try (I
ndus
try).
2. T
he n
et a
sset
s as
sum
ed fr
om a
ll en
titie
s w
ere
$4,1
89.2
64m
. 3.
The
Indi
geno
us A
ffairs
func
tion
for i
ncom
e an
d ex
pens
es re
cogn
ised
by
the
rece
ivin
g en
tity
have
not
bee
n sp
lit b
y tra
nsfe
rring
Dep
artm
ent f
or th
e R
estru
ctur
e N
ote.
The
tota
l for
Indi
geno
us
Affa
irs is
sho
wn
in N
ote
34C
, Out
com
e 2.
Nat
iona
l C
ompa
ct,
Phila
nthr
opy
and
Volu
ntee
ring
AIA
TSIS
DSS
Ed
$'00
0 $'
000
FUN
CTI
ON
S R
ELIN
QU
ISH
ED
Asse
ts re
linqu
ishe
d
Tr
ade
and
othe
r rec
eiva
bles
4
-
A
dmin
iste
red
inve
stm
ent
- 38
,428
To
tal a
sset
s re
linqu
ishe
d 4
38,4
28
Net
ass
ets
relin
quis
hed
(4)
(38,
428)
Not
es:
1. A
s a
resu
lt of
mac
hine
ry o
f gov
ernm
ent c
hang
es th
at w
ere
refle
cted
in th
e A
dmin
istra
tive
Arra
ngem
ents
Ord
er (A
AO) o
f 18
Sep
tem
ber 2
013,
and
12
Dec
embe
r 201
3 (th
e A
AO c
hang
es),
PM
&C
tran
sfer
red
resp
onsi
bilit
y fo
r the
Nat
iona
l Com
pact
, Phi
lant
hrop
y an
d V
olun
teer
ing
func
tion
to th
e D
epar
tmen
t of S
ocia
l Ser
vice
s an
d th
e A
ustra
lian
Inst
itute
of A
borig
inal
and
Tor
res
Stra
it Is
land
er S
tudi
es to
the
Dep
artm
ent o
f Edu
catio
n.
2. T
he n
et a
sset
s re
linqu
ishe
d fro
m a
ll en
titie
s w
as $
38.4
32m
.
103Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 12: Cash flow reconciliation 2015 2014 $'000 $'000 Reconciliation of net cost of services to net cash from operating activities
Net cost of services (546,057) (357,798) Revenue from Government 528,523 351,150
Adjustments for non-cash items
Depreciation and amortisation 28,225 19,748 Sale of assets 31 (54) Net write down of non-financial assets 418 31 Assets received free of charge - (279) Reclassification of non-financial assets 565 -
Movements in assets and liabilities Assets
(Increase) / decrease in net receivables 17,206 (60,044) (Increase) / decrease in accrued revenue (3,238) (849) (Increase) / decrease in prepayments 3,609 (2,200)
Liabilities Increase / (decrease) in employee provisions (3,303) 1,056 Increase / (decrease) in supplier payables (9,343) 30,882 Increase / (decrease) in grants payable 370 (528) Increase / (decrease) in other payables (13,075) 20,676 Increase / (decrease) in other provisions (112) 323
Net cash from operating activities 3,819 2,114
104 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 13: Impact of the G20 Taskforce on the 2014-15 Statement of Comprehensive Income
Departmental (excluding G20
Taskforce)
G20 Taskforce1
Total
$'000 $'000 $'000 EXPENSES Employee benefits 255,164 17,439 272,603 Supplier expenses 157,606 109,808 267,414 Grants 1,236 - 1,236 Depreciation and amortisation 28,153 72 28,225 Finance costs 52 - 52 Write-down and impairment of assets 442 55 497 Losses from asset sales 31 - 31 Total expenses 442,684 127,374 570,058 LESS: OWN-SOURCE INCOME Revenue Sale of goods and rendering of services 13,264 21 13,285 Resources received free of charge 10,623 - 10,623 Total revenue 23,887 21 23,908 Gains Unwinding of discount on make good 42 51 93 Total gains 42 51 93 Total own-source income 23,929 72 24,001 Net cost of services 418,755 127,302 546,057 Revenue from Government 396,065 132,458 528,523 Surplus (Deficit) attributable to the Australian Government (22,690) 5,156 (17,534)
1 G20 Appropriation was provided to the Department in the 2013-14 Budget process. The revenue from Government amount differs to the amount published in the 2014-15 Portfolio Budget Statements as the budget for the corporate components are included under departmental. The Department actively sought efficiencies in hosting the G20 Summit resulting in $26.600 million being returned to Budget.
105Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Total other long-term benefits 2,639,176 1,911,876 Termination and cessation payments
Termination and cessation payments 1,264,165 623,824 Total termination and cessation payments 1,264,165 623,824 Total senior executive remuneration expenses 37,046,683 25,909,897
The total number of senior management personnel that are included in the above table are 183 (2014: 133).
Senior management on acting arrangements are included where the length of the arrangement is longer than 6 months.
Following the changes to the Administrative Arrangements Order of 18 September, 3 October and 12 December 2013, the Department assumed responsibility for the Indigenous Affairs function, Deregulation and Women’s policy, as well as relinquishing National Compact, Philanthropy and Volunteering. As a result, 2015 includes 12 months of expenses for the transferred functions while 2014 includes approximately six months.
106 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 15: Financial instruments 2015 2014 $'000 $'000 Note 15A: Categories of financial instruments Financial assets Loans and receivables
Cash and cash equivalents 12,063 1,633 Goods and services receivables 1,685 1,566 Accrued revenue 5,397 2,159
Carrying amount of financial assets 19,145 5,358 Financial liabilities At amortised cost
Trade creditors and accruals 31,714 35,549 Grants 370 -
Carrying amount of financial liabilities 32,084 35,549 Note 15B: Net gains or losses on financial assets Loans and receivables
Impairment 78 - Net loss on loans and receivables 78 - Net loss on financial assets 78 -
Note 15C: Fair value of financial instruments The fair value of financial instruments approximate their carrying amounts.
Note 15D: Credit risk The Department is exposed to minimal credit risk as loans and receivables are comprised of cash, goods and services receivable and accrued revenue. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of these outstanding receivables, 2015: $1.763 million (2014: $1.566 million). The Department has assessed the risk of the default on payment and has allocated $0.078 million to an impairment allowance account (2014: Nil). The Department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The Department holds no collateral to mitigate against credit risk. Note 7A provides aging of gross receivables past due and an analysis of impaired receivables.
Note 15E: Liquidity risk The Department’s financial liabilities are suppliers and grants payable. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The maturities for non-derivative financial liabilities of the Department are within one year in both the current and prior year.
107Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 15F: Market risk The Department holds basic financial instruments that do not expose the Department to interest risk, currency risk or other price risk.
Note 16: Financial assets reconciliation 2015 2014 $'000 $'000 Financial assets Notes Total financial assets as per Statement of Financial Position 135,972 127,720 Less non-financial instrument components
Appropriation receivables 7A 113,325 86,236 Other receivables 7A 3,502 36,126
Total non-financial instrument components 116,827 122,362 Total financial assets as per Financial Instruments Note 15A 19,145 5,358
108 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Defined contribution plans 89 81 Defined benefit plans 41 33
Leave and other entitlements 68 190 Separation and redundancies - 22 Total employee benefits 874 988
Note 17B: Suppliers Goods and services supplied or rendered
Outsourced providers, contractors and consultants 50,323 50,038 Equipment, repairs and maintenance 7,570 7,475 General expenses 4,699 4,761 Travel 1,952 2,439 Information technology and communications 830 1,371
Total goods and services supplied or rendered 65,374 66,084 Goods supplied in connection with
Related parties 28 50 External parties 758 620
Total goods supplied 786 670 Services rendered in connection with
Related parties 932 813 External parties 63,656 64,601
Total services rendered 64,588 65,414 Total goods and services supplied or rendered 65,374 66,084 Other supplier expenses Operating lease rentals in connection with
External parties Minimum lease payments 10 61
Workers compensation expenses 19 4 Total other supplier expenses 29 65 Total suppliers 65,403 66,149
109Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
2015 2014 $'000 $'000 Note 17C: Grants Public sector
Australian Government entities (related parties) 12,159 5,214 Local Governments 47,465 22,027 State and Territory Governments 45,052 56,045
Total grants 1,218,600 728,033 Note 17D: Finance costs Service costs - 3,686 Unwinding of discount 547 410 Total finance costs 547 4,096
Note 17E: Payments associated with land councils Payments associated with land councils administration 40,803 18,355 Land councils distributions 47,510 27,644 Total payments associated with land councils 88,313 45,999
Note 17F: Payments to corporate Commonwealth entities and companies Aboriginal Hostels Limited 38,044 25,582 Australian Institute of Aboriginal and Torres Strait Islander Studies - 2,279 Indigenous Business Australia 34,328 22,675 Indigenous Land Corporation 9,527 6,443 Torres Strait Regional Authority 48,159 33,097 Total payments to corporate Commonwealth entities and companies 130,058 90,076
Note 18: Administered income Note 18A: Other revenue Return of grant funding 18,463 25,361 Lease rental income 1,607 1,465 Other - 2,236 Total other revenue 20,070 29,062
110 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 19
: A
dmin
iste
red
fair
valu
e m
easu
rem
ent
Not
e 19
A: F
air v
alue
mea
sure
men
ts, v
alua
tion
tech
niqu
e an
d in
puts
use
d
Fa
ir va
lue
mea
sure
men
ts a
t the
en
d of
the
repo
rtin
g pe
riod
For L
evel
s 2
and
3 fa
ir va
lue
mea
sure
men
ts
20
15
2014
C
ateg
ory
(Lev
el 1
, 2
or 3
) Va
luat
ion
tech
niqu
es1
Inpu
ts u
sed
Ran
ge (w
eigh
ted
aver
age)
Sens
itivi
ty o
f the
fair
valu
e m
easu
rem
ent t
o ch
ange
s in
ob
serv
able
inpu
ts
$'
000
$'00
0 Fi
nanc
ial a
sset
s
Inve
stm
ents
in c
orpo
rate
C
omm
onw
ealth
ent
ities
and
co
mpa
nies
1,77
7,72
9 1,
678,
032
3 C
ost a
ppro
ach
Aust
ralia
n G
over
nmen
t's p
ropo
rtion
al
inte
rest
in th
e ne
t ass
ets
of th
e en
titie
s at
bal
ance
dat
e.
Net
ass
ets
n/a
Tota
l fin
anci
al a
sset
s 1,
777,
729
1,67
8,03
2
Non
-fina
ncia
l ass
ets
Pr
oper
ty, p
lant
and
equ
ipm
ent
1,43
7 1,
753
3 C
ost a
ppro
ach
Con
sum
ed e
cono
mic
be
nefit
/Obs
oles
cenc
e of
ass
et
6%-1
00%
(a
)
Tota
l non
-fina
ncia
l ass
ets
1,43
7 1,
753
To
tal f
air v
alue
mea
sure
men
ts
of a
sset
s in
the
stat
emen
t of
finan
cial
pos
ition
1,
779,
166
1,67
9,78
5
1 The
met
hods
and
val
uatio
n te
chni
ques
use
d fo
r the
pur
pose
of m
easu
ring
fair
valu
e of
ass
ets
and
liabi
litie
s in
201
5 ar
e un
chan
ged
from
the
prev
ious
repo
rting
per
iod.
R
ecur
ring
and
non-
recu
rrin
g Le
vel 3
fair
valu
e m
easu
rem
ents
- va
luat
ion
proc
ess
Inve
stm
ents
in c
orpo
rate
Com
mon
wea
lth e
ntiti
es a
nd c
ompa
nies
Fa
ir va
lue
is a
sses
sed
as th
e A
ustra
lian
Gov
ernm
ent's
pro
porti
onal
inte
rest
in th
e ne
t ass
ets
of th
e en
titie
s at
bal
ance
dat
e.
Pro
perty
, pla
nt a
nd e
quip
men
t Th
e fa
ir va
lue
of p
rope
rty, p
lant
and
equ
ipm
ent a
sset
s ha
ve b
een
take
n to
be
the
depr
ecia
ted
repl
acem
ent c
ost a
s as
sess
ed b
y an
inde
pend
ent v
alue
r. R
epla
cem
ent c
ost i
s m
easu
red
by re
fere
nce
to th
e lo
wes
t cos
t of r
epla
cing
the
asse
t or r
epai
ring
the
asse
t.
(a) R
ecur
ring
Leve
l 3 fa
ir va
lue
mea
sure
men
ts -
sens
itivi
ty o
f inp
uts
Pro
perty
, Pla
nt a
nd E
quip
men
t Th
e si
gnifi
cant
uno
bser
vabl
e in
puts
use
d in
the
fair
valu
e m
easu
rem
ent o
f the
ent
ity's
leas
ehol
d im
prov
emen
ts a
sset
cla
sses
rela
te to
the
cons
umed
eco
nom
ic b
enef
it / a
sset
ob
sole
scen
ce. A
sig
nific
ant i
ncre
ase
(dec
reas
e) in
this
inpu
t wou
ld re
sult
in a
sig
nific
antly
low
er (h
ighe
r) fa
ir va
lue
mea
sure
men
t.
111Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Fair
valu
e m
easu
rem
ent -
hig
hest
and
bes
t use
P
M&
C's
ass
ets
are
held
for o
pera
tiona
l pur
pose
s an
d no
t hel
d fo
r the
pur
pose
s of
der
ivin
g a
prof
it. T
he c
urre
nt u
se o
f all
cont
rolle
d as
sets
is c
onsi
dere
d th
eir h
ighe
st a
nd b
est u
se.
Not
e 19
B: R
econ
cilia
tion
for r
ecur
ring
Leve
l 3 fa
ir va
lue
mea
sure
men
ts
R
ecur
ring
Leve
l 3 fa
ir va
lue
mea
sure
men
ts -
reco
ncili
atio
n fo
r ass
ets
Fi
nanc
ial a
sset
s N
on-fi
nanc
ial a
sset
s
A
dmin
iste
red
inve
stm
ents
Pr
oper
ty, p
lant
and
equ
ipm
ent
20
15
2014
20
15
2014
$'00
0 $'
000
$'00
0 $'
000
As
at 1
Jul
y 1,
678,
032
1,05
4 1,
753
1,48
3 To
tal g
ains
/(los
ses)
reco
gnis
ed in
net
cos
t of s
ervi
ces1
- -
(1,1
57)
(357
) To
tal g
ains
/(los
ses)
reco
gnis
ed in
Adm
inis
tere
d ot
her c
ompr
ehen
sive
inco
me2
99,6
97
(19,
307)
22
-
Loss
es th
roug
h re
stru
ctur
e (r
efer
Not
e 11
)3 -
(38,
428)
-
- P
urch
ases
-
- 1
627
Ass
ets
rece
ived
free
of c
harg
e -
- 81
8 -
Add
ition
s th
roug
h re
stru
ctur
e (re
fer N
ote
11)
- 1,
734,
713
- -
Tota
l as
at 3
0 Ju
ne
1,77
7,72
9 1,
678,
032
1,
437
1,75
3
1. T
hese
gai
ns/ (
loss
es) a
re p
rese
nted
in th
e A
dmin
iste
red
Sche
dule
of C
ompr
ehen
sive
Inco
me
unde
r 'D
epre
ciat
ion'
and
'Los
ses
from
ass
et s
ales
'. 2.
The
se g
ains
/ (lo
sses
) are
pre
sent
ed in
the
Adm
inis
tere
d R
econ
cilia
tion
Sche
dule
und
er ‘A
dmin
iste
red
Inve
stm
ents
’ and
‘Equ
ity in
ject
ion
to c
orpo
rate
Com
mon
wea
lth e
ntiti
es a
nd
com
pani
es’.
3. T
hese
gai
ns/ (
loss
es) a
re p
rese
nted
in th
e A
dmin
iste
red
Res
truct
urin
g N
ote
unde
r fun
ctio
ns re
linqu
ishe
d.
112 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Cash on hand or on deposit 428 169 Aboriginal Benefit Account - Special Account 14,133 17,569 Aboriginal and Torres Strait Islander Land Account - Special Account 2 1 Total cash and cash equivalents 14,563 17,739
Note 20B: Trade and other receivables Goods and services receivables in connection with
Related parties 5 298 External parties 67 -
Total goods and services receivables 72 298 Other receivables
Statutory receivables 19,587 17,293 Interest receivable 30,920 30,536 Grants receivable 23,278 27,061 Special account receivable from the OPA 9,947 13,493 Other 305 376
Total other receivables 84,037 88,759 Total trade and other receivables (gross) 84,109 89,057 Less impairment allowance
Other receivables (11,473) (8,610) Total impairment allowance (11,473) (8,610) Total trade and other receivables (net) 72,636 80,447 All receivables are expected to be recovered in no more than 12 months. Trade and other receivables (gross) aged as follows
Not overdue 66,363 62,513 Overdue by:
0 to 30 days 1,127 13,095 31 to 60 days 112 613 61 to 90 days 494 955 More than 90 days 16,013 11,881
Total trade and other receivables (gross) 84,109 89,057 Impairment allowance aged as follows
Not overdue - - Overdue by:
0 to 30 days - - 31 to 60 days - - 61 to 90 days - - More than 90 days (11,473) (8,610)
Total impairment allowance (11,473) (8,610) Credit terms were within 30 days (2014: 30 days).
113Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Reconciliation of the Impairment Allowance Movements in relation to 2015
Other
receivables Total $'000 $'000 Opening balance (8,610) (8,610)
Amounts recognised through restructure - - Amounts written off - - Amounts recovered and reversed - - Increase recognised in net surplus (2,863) (2,863)
Closing balance (11,473) (11,473)
Movements in relation to 2014
Other
receivables Total $'000 $'000 Opening balance - -
Amounts recognised through restructure (6,715) (6,715) Amounts written off - - Amounts recovered and reversed - - Increase recognised in net surplus (1,895) (1,895)
Bank term deposits 2,480,243 2,186,810 Nominal semi-government bonds - 233,406 Total other investments 2,480,243 2,420,216
All other investments are expected to be recovered in no more than 12 months. Note 20D: Investments in corporate Commonwealth entities and companies Equity interest in
Aboriginal Hostels Limited 146,282 149,541 Anindilyakwa Land Council 8,639 5,769 Central Land Council 35,559 36,129 Indigenous Land Corporation 217,821 193,767 Indigenous Business Australia 1,185,459 1,116,246
National Australia Day Council Limited 1,168 1,098 Northern Land Council 10,105 3,999 Outback Stores Pty Ltd 41,496 41,520 Tiwi Land Council 1,613 1,670 Torres Strait Regional Authority 73,876 72,356 Wreck Bay Aboriginal Community Council 55,711 55,937
Total investments in corporate Commonwealth entities and companies 1,777,729 1,678,032
All investments in corporate Commonwealth entities and companies are expected to be recovered in more than 12 months. Additional information relating to investments is disclosed in Note 25.
.
114 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 21
: Adm
inis
tere
d no
n-fin
anci
al a
sset
s
Not
e 21
A: R
econ
cilia
tion
of th
e op
enin
g an
d cl
osin
g ba
lanc
es o
f pro
pert
y, p
lant
and
equ
ipm
ent
R
econ
cilia
tion
of th
e op
enin
g an
d cl
osin
g ba
lanc
es o
f pro
pert
y, p
lant
and
equ
ipm
ent f
or 2
015
B
uild
ings
Pl
ant a
nd e
quip
men
t To
tal
20
15
2014
20
15
2014
20
15
2014
$’00
0 $’000
$’00
0 $’000
$’00
0 $’000
As
at 1
Jul
y 20
14
Gro
ss v
alue
-
- 2,
207
1,85
1 2,
207
1,85
1 A
ccum
ulat
ed d
epre
ciat
ion
and
impa
irmen
t -
- (4
54)
(98)
(4
54)
(98)
To
tal a
s at
1 J
uly
2014
-
- 1,
753
1,75
3 1,
753
1,75
3
Add
ition
s
B
y pu
rcha
se
- -
1 35
7 1
357
Ass
ets
rece
ived
free
of c
harg
e 81
8 -
-
818
- R
eval
uatio
ns a
nd im
pairm
ents
reco
gnis
ed in
oth
er c
ompr
ehen
sive
inco
me
- -
22
- 22
-
Dep
reci
atio
n ex
pens
e -
- (3
32)
(356
) (3
32)
(356
) O
ther
mov
emen
ts
Oth
er m
ovem
ents
-
- (4
) -
(4)
- D
ispo
sals
-
- O
ther
(8
18)
- (3
) (1
) (8
21)
(1)
Tota
l as
at 3
0 Ju
ne 2
015
- -
1,43
7 1,
753
1,43
7 1,
753
To
tal a
s at
30
June
201
5 re
pres
ente
d by
G
ross
val
ue
Fair
valu
e -
- 1,
702
1,74
3 1,
702
1,74
3 W
ork
in p
rogr
ess
- -
463
464
463
464
Acc
umul
ated
dep
reci
atio
n an
d im
pairm
ent
- -
(728
) (4
54)
(728
) (4
54)
Tota
l as
at 3
0 Ju
ne 2
015
- -
1,43
7 1,
753
1,43
7 1,
753
No
indi
cato
rs o
f im
pairm
ent w
ere
foun
d fo
r pro
perty
, pla
nt a
nd e
quip
men
t. A
reva
luat
ion
was
con
duct
ed in
201
5 by
inde
pend
ent v
alue
rs. A
ll re
valu
atio
ns w
ere
cond
ucte
d in
ac
cord
ance
with
the
reva
luat
ion
polic
y st
ated
at N
ote
1. N
o pr
oper
ty, p
lant
or e
quip
men
t is
expe
cted
to b
e so
ld o
r dis
pose
d of
with
in th
e ne
xt 1
2 m
onth
s.
115Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
2015 2014 $'000 $'000 Note 21B: Prepayments
Prepayments 6,120 9,322 Total prepayments 6,120 9,322 Prepayments expected to be recovered
No more than 12 months 607 2,923 More than 12 months 5,513 6,399
Total grants 18,640 18,823 Grant payables are expected to be settled in no more than 12 months.
Note 22C: Other payables Salaries, wages and superannuation 59 37 Lease liability 46 49 Other 44 2,450 Total other payables 149 2,536 All other payables are expected to be settled in no more than 12 months.
116 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Annual leave 112 141 Long service leave 160 184 Total employee provisions 272 325 Employee provisions expected to be settled
No more than 12 months 90 107 More than 12 months 182 218
Total employee provisions 272 325 Note 23B: Non-cash benefits - former Governors-General benefits Non-cash benefits - former Governors-General 17,509 16,594 Total non-cash benefits - former Governors-General benefits 17,509 16,594 The amounts recognised in the Administered Schedule of Assets and Liabilities are as follows: Present value of unfunded obligations 17,509 16,594 Net liability in the Administered Schedule of Assets and Liabilities 17,509 16,594 Amounts in the Administered Schedule of Assets and Liabilities: Liabilities 17,509 16,594 Net liability in the Administered Schedule of Assets and Liabilities 17,509 16,594
The amounts recognised in the Administered Schedule of Comprehensive Income are as follows: Current service cost - 3,686 Finance costs 547 410 Expense 547 4,096 Net actuarial losses recognised in the Administered Reconciliation Schedule 1,903 1,150 Changes in the value of the defined benefit obligations are as follows: Net liability at 1 July 16,594 12,820 Service cost - 3,686 Finance costs 547 410 Actuarial losses 1,903 1,150 Benefits paid (1,535) (1,472) Net liability at 30 June 17,509 16,594 Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 2.60% 3.30% Future salary increases 4.00% 4.00% Inflation rate 2.50% 2.50% Rate of expenditure slow down with age 3.00% 3.00%
117Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 23C: Other provisions Reconciliation of movements in other provisions
Make good
provision Other
provision Total $’000 $’000 As at 1 July 2014 129 195 324 Additional provisions made - - - Amounts used - (97) (97) Amounts reversed - - - Unwinding of discount or change in discount rate - - - Total as at 30 June 2015 129 98 227
2015 2014 $'000 $'000 Other provisions expected to be settled
No more than 12 months 86 119 More than 12 months 141 205
Total other provisions 227 324
118 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 24: Administered cash flow reconciliation 2015 2014 $'000 $'000 Reconciliation of net cost of services to net cash from operating activities Net cost of services (1,465,081) (890,970) Adjustments
Depreciation / amortisation 332 356 Losses from asset sales 821 1 Assets received free of charge (818) - Interest on investments recognised in investing (86,688) (73,793)
Movements in assets and liabilities Assets
(Increase) / decrease in net receivables 8,195 (33,312) (Increase) / decrease in prepayments 3,202 (399)
Liabilities Increase / (decrease) in supplier payables 2,147 (597) Increase / (decrease) in grants payable (183) 21,674 Increase / (decrease) in other payable (2,387) (2,082) Increase / (decrease) in employee provisions (53) (40) Increase / (decrease) in former Governors-General benefits (985) 2,625 Increase / (decrease) in other provisions (97) 231
Net cash used by operating activities (1,541,595) (976,306)
119Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 25: Administered investments Investment in Commonwealth Entities The Commonwealth holds a 100% equity interest in the following administered investments:
Aboriginal Hostels Limited
Provides temporary accommodation to Aboriginal and Torres Strait Islander people through a national network of hostels.
Land Councils
The Land Councils include: - Anindilyakwa Land Council - Central Land Council - Northern Land Council - Tiwi Land Council; and - Wreck Bay Aboriginal Community Council
The Land Councils represent the Aboriginal peoples living in the area of the Land Council in the management of Aboriginal land in the area, and in relation to legislation concerning that land. The Land Councils also consult and protect the interests of traditional owners and take measures to assist in the protection of sacred sites in the area of the Land Council. Wreck Bay Aboriginal Community Council holds title to land and provides services to the Aboriginal community of Jervis Bay.
Indigenous Land Corporation
The Indigenous Land Corporation provides economic, environmental, social and cultural benefits for Aboriginal persons and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous Land base.
Indigenous Business Australia
Indigenous Business Australia creates opportunities for Aboriginal and Torres Strait Islander people and communities to build assets and gain wealth.
National Australia Day Council Limited
Promotes national pride, active citizenship and the observance and celebration of Australia Day; administration of the Australian of the Year awards, which includes awards for the Young Australian of the Year, the Senior Australian of the Year and Australia’s Local Hero; distribution of grants to State and Territory Australia Day Councils and provision of recommendations and advice to the Australian Government on all matters relating to year-round national pride activities.
Torres Strait Regional Authority
The Torres Strait Regional Authority formulates, implements and monitors the effectiveness of programmes for Aboriginal and Torres Strait Islander people living in the Torres Strait and Northern Peninsula Area.
Outback Stores Pty Ltd.
Outback Stores Pty Ltd improves access to affordable, healthy food for Indigenous communities, particularly in remote areas, through providing food supply and store management and support services.
120 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Investments in Deposits and Government Securities Investments in Deposits and Government Securities relate to the investment portfolios managed for the Aboriginal Benefit Account (ABA) and Aboriginal and Torres Strait Islander Land Account (ATSILA). The investment portfolios are managed to ensure sufficient funds are available for payments when required. Monies which are surplus to immediate requirements are invested in accordance with section 58 of the PGPA Act and the ABA’s and ATSILA’s respective legislative instruments. Under section 58 of the PGPA Act and regulation 22 of the PGPA Act, public money may only be invested in authorised investments which include:
(a) securities of the Commonwealth, a State or a Territory (b) securities guaranteed by the Commonwealth, a State or a Territory (c) a deposit with a bank, including a deposit evidenced by a certificate of deposit (d) a bill of exchange accepted or endorsed only by a bank.
121Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 26: Administered financial instruments 2015 2014 $'000 $'000 Note 26A: Categories of financial instruments Financial assets Held-to-maturity Bank term deposits 2,480,243 2,186,810 Nominal semi-government bonds - 233,406 Total held-to-maturity 2,480,243 2,420,216 Loans and receivables Cash and cash equivalents 14,563 17,739 Goods and services receivable 72 298 Interest receivable 30,920 30,536 Grants receivable 11,805 18,451 Total loans and receivables 57,360 67,024 Available for sale
Aboriginal Hostels Limited 146,282 149,541 Anindilyakwa Land Council 8,639 5,769 Central Land Council 35,559 36,129 Indigenous Land Corporation 217,821 193,767 Indigenous Business Australia 1,185,459 1,116,246
National Australia Day Council Limited 1,168 1,098 Northern Land Council 10,105 3,999 Outback Stores Pty Ltd 41,496 41,520 Tiwi Land Council 1,613 1,670 Torres Strait Regional Authority 73,876 72,356 Wreck Bay Aboriginal Community Council 55,711 55,937
Total available for sale 1,777,729 1,678,032 Carrying amount of financial assets 4,315,332 4,165,272 Financial liabilities At amortised cost
Trade creditors and accruals 11,490 9,343 Grants 18,640 18,823
Total financial liabilities at amortised cost 30,130 28,166 Carrying amount of financial liabilities 30,130 28,166
Note 26B: Net gains or losses on financial assets Financial Assets Held-to-maturity Interest revenue 86,325 73,562 Net gains on held-to-maturity 86,325 73,562 Loans and receivables Interest revenue 363 231 Impairment (11,248) (2,570) Net losses on loans and receivables (10,885) (2,339) Net losses on financial assets 75,440 71,223
122 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 26C: Fair value of financial instruments Carrying Fair Carrying Fair amount value amount value 2015 2015 2014 2014 $'000 $'000 $'000 $'000 Financial Assets Bank term deposits 2,480,243 2,480,243 2,186,810 2,186,810 Nominal semi-government bonds1 - - 233,406 233,533 Cash and cash equivalents 14,563 14,563 17,739 17,739 Goods and services receivable 72 72 298 298 Interest receivable 30,920 30,920 30,536 30,536 Grants receivable 11,805 11,805 18,451 18,451 Administered investments 1,777,729 1,777,729 1,678,032 1,678,032 Total 4,315,332 4,315,332 4,165,272 4,165,399 Financial Liabilities
Total 30,130 30,130 28,166 28,166 1 The difference between the carrying amount and the fair value of the semi-government bonds is attributed to the amortised cost and the market value obtained from financial institutions as at reporting date. Note 26D: Credit risk The administered activities of the Department are not exposed to a high level of credit risk as the majority of financial assets are cash and cash equivalents, and trade receivables. The Department manages its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The maximum amount of credit risk is the risk that arises from potential default of a debtor. This amount is equal to the amount of these outstanding trade receivables, 2015: $0.072 million (2014: $0.298 million). The Department has assessed the risk of the default on payment of receivables and has allocated amounts to an impairment allowance in relation to grant receivables, 2015: $11.473 million (2014: $8.610 million). The Department holds no collateral to mitigate against administered credit risk. The Department has no significant exposures to any concentrations of credit risk.
123Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Credit quality of financial instruments not past due or individually determined as impaired
Not past due nor
impaired
Not past due nor
impaired
Past due or
impaired Past due
or impaired 2015 2014 2015 2014 $'000 $'000 $'000 $'000 Bank term deposits 2,480,243 2,186,810 - - Nominal semi-government bonds - 233,406 - - Cash and cash equivalents 14,563 17,739 - - Goods and services receivable 72 298 - - Interest receivable 30,920 30,536 - - Grant receivable 5,532 517 17,746 26,544 Equity interest in:
Aboriginal Hostels Limited 146,282 149,541 - - Anindilyakwa Land Council 8,639 5,769 - - Central Land Council 35,559 36,129 - - Indigenous Land Corporation 217,821 193,767 - - Indigenous Business Australia 1,185,459 1,116,246 - - National Australia Day Council Limited 1,168 1,098 - - Northern Land Council 10,105 3,999 - - Outback Stores Pty Ltd 41,496 41,520 - - Tiwi Land Council 1,613 1,670 - - Torres Strait Regional Authority 73,876 72,356 - - Wreck Bay Aboriginal Community Council 55,711 55,937 - -
Total 4,309,059 4,147,338 17,746 26,544 Note 20B provides aging of gross receivables past due and an analysis of impaired receivables. Aging of financial assets that were past due but not impaired for 2015 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grant receivable 1,127 112 494 4,540 6,273 Total 1,127 112 494 4,540 6,273 Aging of financial assets that were past due but not impaired for 2014 0 to 30 31 to 60 61 to 90 90+ days days days days Total $'000 $'000 $'000 $'000 $'000 Grant receivable 13,095 613 955 3,271 17,934 Total 13,095 613 955 3,271 17,934
Note 26E: Liquidity risk The Department’s administered financial liabilities are supplier and grant payables. The exposure to liquidity risk is based on the notion that the Department will encounter difficulty in meeting its obligations associated with administered financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the Department (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations. The ATSILA has sufficient capital base available to meet its obligations when they fall due. The ABA investment policy ensures sufficient cash is available to meet payments as they fall due. All non-derivative financial liabilities are expected to mature within one year.
124 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 26F: Market risk The Department holds basic financial instruments, available for sale and held-to-maturity investments that do not expose the entity to certain market risks. The Department is not exposed to 'Currency risk', 'Other price risk' or 'Interest rate risk'.
125Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 27: Administered financial assets reconciliation 2015 2014 Notes $'000 $'000 Financial assets Total financial assets per Administered Schedule of Assets and Liabilities 4,345,171 4,196,434 Less non-financial instrument components:
Statutory receivables 20B 19,587 17,293 Special account receivable from OPA 20B 9,947 13,493 Other receivables 20B 305 376
Total non-financial instrument components 29,839 31,162 Total financial assets as per Financial Instruments Note 26A 4,315,332 4,165,272
126 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 28
: App
ropr
iatio
ns
N
ote
28A
: Ann
ual a
ppro
pria
tions
('re
cove
rabl
e G
ST e
xclu
sive
') An
nual
App
ropr
iatio
ns fo
r 201
5
App
ropr
iatio
n A
ct
PGPA
Act
Tota
l ap
prop
riatio
n
Appr
opria
tion
appl
ied
in
2015
(cur
rent
an
d pr
ior
year
s)1
An
nual
Ap
prop
riatio
n AF
M
Sect
ion 74
Se
ctio
n 75
Varia
nce2
Sect
ion
51
dete
rmin
atio
ns3
$'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 D
epar
tmen
tal
Ord
inar
y an
nual
ser
vice
s 59
2,01
8 -
12,5
33
- 60
4,55
1 (5
58,9
66)
45,5
85
(44,
262)
O
ther
ser
vice
s
E
quity
6,
205
- -
- 6,
205
(2,6
31)
3,57
4 -
Tota
l dep
artm
enta
l 59
8,22
3 -
12,5
33
- 61
0,75
6 (5
61,5
97)
49,1
59
(44,
262)
Ad
min
iste
red
Ord
inar
y an
nual
ser
vice
s
Adm
inis
tere
d ite
ms
1,20
8,05
9 -
5,30
5 -
1,21
3,36
4 (1
,178
,213
) 35
,151
(2
6,49
7)
P
aym
ents
to c
orpo
rate
Com
mon
wea
lth e
ntiti
es/c
ompa
nies
13
0,07
2 -
- -
130,
072
(130
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) 14
-
Oth
er s
ervi
ces
S
tate
s, A
CT,
NT
and
loca
l gov
ernm
ent
8,51
7 -
- -
8,51
7 (8
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) 1
-
Pay
men
ts to
cor
pora
te C
omm
onw
ealth
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ities
/com
pani
es
38,1
24
- -
- 38
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(3
8,12
4)
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Tota
l adm
inis
tere
d 1,
384,
772
- 5,
305
- 1,
390,
077
(1,3
54,9
11)
35,1
66
(26,
497)
1.
Dep
artm
ent o
f Em
ploy
men
t spe
nd m
oney
from
the
Con
solid
ated
Rev
enue
Fun
d (C
RF)
on
beha
lf of
PM
&C
. 2.
The
var
ianc
e in
dep
artm
enta
l ord
inar
y an
nual
ser
vice
s is
mai
nly
due
to u
ndra
wn
curre
nt y
ear a
ppro
pria
tions
. 3.
Dep
artm
enta
l Sec
tion
51 q
uara
ntin
es: $
26.6
00m
for s
avin
gs a
chie
ved
in d
eliv
erin
g th
e G
20 S
umm
it; $
3.34
5m fo
r con
tribu
tions
to th
e N
atio
nal S
ecur
ity M
anda
tory
Te
leco
mm
unic
atio
n D
ata
Ret
entio
n; $
10.0
01m
mov
emen
t of f
unds
for t
he tr
ansi
tion
proj
ect;
$2.0
00m
sav
ings
on
volu
ntar
y re
dund
anci
es; $
1.50
0m to
sup
port
the
Dig
ital
Tran
sfor
mat
ion
Age
nda
and
$0.8
16m
mov
emen
t of f
unds
for t
he D
igita
l Tra
nsfo
rmat
ion
Offi
ce.
Adm
inis
tere
d S e
ctio
n 51
qua
rant
ines
: $11
.497
m c
ontri
butio
n to
Indi
geno
us C
omm
unity
lega
l ser
vice
s to
the
Atto
rney
-Gen
eral
's D
epar
tmen
t and
$15
.000
m fo
r fun
ding
to S
outh
A
ustra
lia G
over
nmen
t for
mun
icip
al s
ervi
ces
in re
mot
e In
dige
nous
com
mun
ities
. S
ectio
n 51
qua
rant
ines
hav
e be
en re
cogn
ised
as
a re
duct
ion
in to
tal a
ppro
pria
tion
repo
rted
by th
e D
epar
tmen
t.
127Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Ann
ual A
ppro
pria
tions
for 2
014
A
ppro
pria
tion
Act
FM
A Ac
t
Tota
l ap
prop
riatio
n
App
ropr
iatio
n ap
plie
d in
20
14 (c
urre
nt
and
prio
r ye
ars)
A
nnua
l A
ppro
pria
tion1
App
ropr
iatio
ns
redu
ced4
Sec
tion 30
Sec
tion 31
Sec
tion
32
Var
ianc
e2
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
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000
Dep
artm
enta
l
O
rdin
ary
annu
al s
ervi
ces
237,
117
- -
21,2
19
128,
927
387,
263
(318
,048
) 69
,215
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ther
ser
vice
s
E
quity
8,
528
- -
- -
8,52
8 (3
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) 5,
357
Tota
l dep
artm
enta
l 24
5,64
5 -
- 21
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12
8,92
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5,79
1 (3
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74,5
72
Adm
inis
tere
d
O
rdin
ary
annu
al s
ervi
ces
Adm
inis
tere
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ms
235,
912
(130
,019
) 4,
331
- 52
8,89
3 63
9,11
7 (6
15,0
45)
24,0
72
Pay
men
ts to
CA
C A
ct b
odie
s -
- -
- 90
,076
90
,076
(9
0,07
6)
- O
ther
ser
vice
s
A
dmin
iste
red
asse
ts a
nd li
abilit
ies
- -
- -
- -
(67)
(6
7)
Sta
tes,
AC
T, N
T an
d lo
cal g
over
nmen
t 23
,837
-
- -
3,20
7 27
,044
(3
,207
) 23
,837
P
aym
ents
to C
AC
Act
bod
ies
- -
- -
21,0
65
21,0
65
(21,
065)
-
Tota
l adm
inis
tere
d 25
9,74
9 (1
30,0
19)
4,33
1 -
643,
241
777,
302
(729
,460
) 47
,842
1.
App
ropr
iatio
n A
cts
(No.
1, 3
, 5) 2
013-
14: s
ectio
ns 1
0, 1
1, 1
2 an
d 15
. App
ropr
iatio
n A
cts
(No.
2, 4
, 6) 2
013-
14: s
ectio
ns 1
3 an
d 14
. Dep
artm
enta
l app
ropr
iatio
ns d
o no
t lap
se a
t fin
anci
al y
ear-
end.
How
ever
, the
resp
onsi
ble
Min
iste
r may
dec
ide
that
par
t or a
ll of
a d
epar
tmen
tal a
ppro
pria
tion
is n
ot re
quire
d an
d re
ques
t tha
t the
Fin
ance
Min
iste
r red
uce
that
ap
prop
riatio
n. T
he re
duct
ion
in th
e ap
prop
riatio
n is
effe
cted
by
the
Fina
nce
Min
iste
r's d
eter
min
atio
n an
d is
dis
allo
wab
le b
y P
arlia
men
t. In
201
3-14
, the
re w
as a
n ad
just
men
t tha
t met
th
e re
cogn
ition
crit
eria
of a
form
al re
duct
ion
in re
venu
e (in
acc
orda
nce
with
FM
O D
iv 1
01) b
ut a
t law
the
appr
opria
tions
had
not
bee
n am
ende
d be
fore
the
end
of th
e re
porti
ng p
erio
d.
2. T
he v
aria
nce
in d
epar
tmen
tal o
rdin
ary
annu
al s
ervi
ces
is m
ainl
y du
e to
und
raw
n cu
rrent
yea
r app
ropr
iatio
ns.
128 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
N
ote
28B
: Dep
artm
enta
l and
adm
inis
tere
d ca
pita
l bud
gets
('re
cove
rabl
e G
ST e
xclu
sive
')
20
14-1
5 C
apita
l Bud
get A
ppro
pria
tions
C
apita
l Bud
get A
ppro
pria
tions
app
lied
in 2
014-
15 (c
urre
nt a
nd p
rior y
ears
)
Varia
nce3
Sect
ion
51
dete
rmin
atio
ns4
A
ppro
pria
tion
Act
PG
PA A
ct
Tota
l Cap
ital
Bud
get
Appr
opria
tions
Paym
ents
for
non-
finan
cial
as
sets
2
Paym
ents
for
othe
r pu
rpos
es
Tota
l pa
ymen
ts
An
nual
Cap
ital
Bud
get
Sect
ion
75
$'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 D
epar
tmen
tal
Ord
inar
y an
nual
ser
vice
s
C
apita
l Bud
get1
22,0
49
- 22
,049
(1
1,01
6)
- (1
1,01
6)
11,0
33
(816
) Ad
min
iste
red
Ord
inar
y an
nual
ser
vice
s
C
apita
l Bud
get1
151
- 15
1 (3
00)
- (3
00)
(149
) -
1. D
epar
tmen
tal a
nd A
dmin
iste
red
Cap
ital B
udge
ts a
re a
ppro
pria
ted
thro
ugh
App
ropr
iatio
n A
cts
(No.
1,3,
5). T
hey
form
par
t of o
rdin
ary
annu
al s
ervi
ces,
and
are
not
sep
arat
ely
iden
tifie
d in
the
App
ropr
iatio
n A
cts.
For
mor
e in
form
atio
n on
ord
inar
y an
nual
ser
vice
s ap
prop
riatio
ns, p
leas
e se
e N
ote
28A
: Ann
ual A
ppro
pria
tions
. 2.
Pay
men
ts m
ade
on n
on-fi
nanc
ial a
sset
s in
clud
e pu
rcha
ses
of a
sset
s, e
xpen
ditu
re o
n as
sets
whi
ch h
as b
een
capi
talis
ed, c
osts
incu
rred
to m
ake
good
an
asse
t to
its o
rigin
al
cond
ition
, and
the
capi
tal r
epay
men
t com
pone
nt o
f fin
ance
leas
es.
3. W
ork
on c
apita
l pro
ject
s w
as d
elay
ed d
ue to
the
focu
s on
G20
pro
ject
s du
ring
2014
-15.
4.
A p
erm
anen
t qua
rant
ine
of $
0.81
6m w
as re
turn
ed u
nder
sec
tion
51 o
f the
PG
PA
Act
due
to d
ecis
ion
by th
e E
cono
mic
Rei
vew
Com
mitt
ee. T
his
has
been
reco
gnis
ed a
s a
redu
ctio
n in
cap
ital a
ppro
pria
tion
rece
ivab
le b
y th
e D
epar
tmen
t.
129Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
20
13-1
4 C
apita
l Bud
get A
ppro
pria
tions
C
apita
l Bud
get A
ppro
pria
tions
app
lied
in 2
013-
14 (c
urre
nt
and
prio
r yea
rs)
Var
ianc
e
A
ppro
pria
tion
Act
FMA
Act
Tota
l Cap
ital
Bud
get
App
ropr
iatio
ns
Pay
men
ts fo
r non
-fin
anci
al a
sset
s2 P
aym
ents
for
othe
r pur
pose
s To
tal p
aym
ents
Ann
ual C
apita
l B
udge
t S
ectio
n 32
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0
Dep
artm
enta
l
Ord
inar
y an
nual
ser
vice
s
Cap
ital B
udge
t1 7,
753
2,14
1 9,
894
(6,9
36)
- (6
,936
) 2,
958
Adm
inis
tere
d
Ord
inar
y an
nual
ser
vice
s
Cap
ital B
udge
t1 28
9 -
289
(347
) -
(347
) (5
8)
1. D
epar
tmen
tal a
nd A
dmin
iste
red
Cap
ital B
udge
ts a
re a
ppro
pria
ted
thro
ugh
App
ropr
iatio
n A
cts
(No.
1,3,
5). T
hey
form
par
t of o
rdin
ary
annu
al s
ervi
ces,
and
are
not
sep
arat
ely
iden
tifie
d in
the
App
ropr
iatio
n A
cts.
For
mor
e in
form
atio
n on
ord
inar
y an
nual
ser
vice
s ap
prop
riatio
ns, p
leas
e se
e N
ote
28A
: Ann
ual A
ppro
pria
tions
. 2.
Pay
men
ts m
ade
on n
on-fi
nanc
ial a
sset
s in
clud
e pu
rcha
ses
of a
sset
s, e
xpen
ditu
re o
n as
sets
whi
ch h
as b
een
capi
talis
ed, c
osts
incu
rred
to m
ake
good
an
asse
t to
its o
rigin
al
cond
ition
, and
the
capi
tal r
epay
men
t com
pone
nt o
f fin
ance
leas
es.
130 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Departmental1 Appropriation Act (No.1) 2013-142 5,000 36,951 Appropriation Act (No.2) 2013–14 - 1,965 Appropriation Act (No.1) 2013–14 - cash held by the department - 1,633 Appropriation Act (No.3) 2013–14 - 8,200 Appropriation Act (No.5) 2013–14 - 35,634 Appropriation Act (No.5) 2013-14 - Capital Budget (DCB) - 2,958 Appropriation Act (No.6) 2013–14 Non Operating Equity Injection 4,861 5,528 Appropriation Act (No.1) 2014-15 130,618 - Appropriation Act (No.1) 2014-15 - cash held by the department 12,063 - Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) 13,991 - Appropriation Act (No 2) 2014-15 - Non Operating Equity Injection 5,887 - Appropriation Act (No.3) 2014-15 1,912 - Appropriation Act (No 4) 2014-15 - Non Operating Equity Injection 318 - Total 174,650 92,869 Administered3 Appropriation Act (No.1) Capital Budget (ACB) 2012–13 240 240 Appropriation Act (No.1) 2013–14 - cash held by the department - 17,739 Appropriation Act (No.1) 2013–14 10 26,626 Appropriation Act (No.1) Capital Budget (ACB) 2013–14 - 289 Appropriation Act (No.3) 2013–14 - 2,456 Appropriation Act (No.5) 2013–14 24,263 125,610 Appropriation Act (No.6) 2013–14 23,837 23,837 Appropriation Act (No.1) 2014-15 35,700 - Appropriation Act (No.1) Capital Budget (ACB) 2014-15 140 - Appropriation Act (No.1) 2014-15 - cash held by the department 14,563 - Appropriation Act (No.2) SPP 2014-15 1 - Total 98,754 196,797
1. The current year Departmental unspent annual appropriation is shown inclusive of Section 51 Permanent Quarantines, which will reduce Appropriation Act (No. 1) 2014-15 by $41.446m and $2.000m from prior year recognised through contributed equity and reduce Appropriation Act (No.1) 2014-15 - Capital Budget (DCB) by $0.816m. 2. The prior year Departmental unspent annual appropriation is shown inclusive of a Quarantine which reduced Appropriation Act (No.1) 2013-14 by $5.000m. 3. The current year Administered unspent annual appropriation is shown inclusive of Section 51 Permanent Quarantines which will reduce Appropriation Act (No. 1) 2014-15 by $26.497m.
131Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 28D: Special appropriations ('recoverable GST exclusive')
Authority Type Purpose
Appropriation applied 2015 2014 $'000 $'000
Aboriginal Land Rights (Northern Territory) Act 1976
Unlimited amount
To enable payments to aboriginal land councils from the equivalent of mining royalties derived from mining operations on Aboriginal land in the Northern Territory
An Act to provide targeted financial assistance to advance the education of Indigenous persons, and for other related purposes.
- 91,912
Higher Education Support Act 2003 Unlimited amount
An Act to grant financial assistance to support the higher education system for individuals and universities.
51,152 26,628
Total 216,420 211,306 As a consequence of the Administrative Arrangements Order of 18 September 2013, these special appropriations were transferred from Department of Social Services and the former Department of Education, Employment and Workplace Relations. The Indigenous Education (Targeted Assistance) Act 2000 was amended to allow non-ABSTUDY payments to be funded by annual Appropriations Acts from 1 July 2014.
132 Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Not
e 29
: Spe
cial
acc
ount
s
Serv
ices
for O
ther
En
titie
s an
d Tr
ust
Mon
eys1
Abo
rigin
als
and
Torr
es
Stra
it Is
land
er
Cor
pora
tions
U
ncla
imed
Mon
ey
Acc
ount
2
Abo
rigin
al T
utor
ial
Ass
ista
nce
Supe
rann
uatio
n Sp
ecia
l Acc
ount
3
Indi
geno
us R
emot
e Se
rvic
es D
eliv
ery
Spec
ial A
ccou
nt4
Indi
geno
us
Com
mun
ities
Str
ateg
ic
Inve
stm
ent P
rogr
am5
20
15
2014
20
15
2014
20
15
2014
20
15
2014
20
15
2014
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
$'00
0 $'
000
Bal
ance
bro
ught
forw
ard
from
pr
evio
us p
erio
d 61
4 1
717
- 96
0 -
11,2
13
- -
- In
crea
ses
Bal
ance
- re
stru
ctur
ing
- 97
6 -
710
- 96
0 -
19,4
40
- 2,
840
Oth
er re
ceip
ts
154
158
450
7 -
- 15
9 23
-
- To
tal i
ncre
ases
15
4 1,
134
450
717
- 96
0 15
9 19
,463
-
2,84
0 A
vaila
ble
for p
aym
ents
76
8 1,
135
1,16
7 71
7 96
0 96
0 11
,372
19
,463
-
2,84
0 D
ecre
ases
D
epar
tmen
tal
Pay
men
ts m
ade
- oth
er
(43)
(1
40)
- -
- -
- -
- -
Tota
l dep
artm
enta
l dec
reas
es
(43)
(1
40)
- -
- -
-
- -
A
dmin
iste
red
Tran
sfer
s to
OPA
(1
87)
- -
- -
- -
- -
- P
aym
ents
mad
e to
sup
plie
rs
(357
) (3
81)
(372
) -
- -
(3,2
39)
(8,2
50)
(2
,840
) To
tal a
dmin
iste
red
decr
ease
s (5
44)
(381
) (3
72)
- -
- (3
,239
) (8
,250
) -
(2,8
40)
Tota
l dec
reas
es
(587
) (5
21)
(372
) -
- -
(3,2
39)
(8,2
50)
- (2
,840
) To
tal b
alan
ce c
arrie
d to
the
next
per
iod
181
614
795
717
960
960
8,13
3 11
,213
-
- A
s a
cons
eque
nce
of th
e A
dmin
istra
tive
Arr
ange
men
ts O
rder
of 1
8 Se
ptem
ber 2
013,
thes
e sp
ecia
l acc
ount
s, e
xcep
t for
Ser
vice
s fo
r Oth
er E
ntiti
es a
nd T
rust
Mon
eys,
wer
e tra
nsfe
rred
from
Dep
artm
ent o
f Soc
ial S
ervi
ces,
the
form
er D
epar
tmen
t of E
duca
tion,
Em
ploy
men
t and
Wor
kpla
ce R
elat
ions
and
Dep
artm
ent o
f Hea
lth.
133Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
30 J
une
2015
Abo
rigin
als
Ben
efit
Acc
ount
6
Abo
rigin
als
and
Torr
es
Stra
it Is
land
er L
and
Acc
ount
7
2015
20
14
2015
20
14
$'
000
$'00
0 $'
000
$'00
0 B
alan
ce b
roug
ht fo
rwar
d fr
om
prev
ious
per
iod
17,5
69
- 1
- In
crea
ses
Bal
ance
- re
stru
ctur
ing
- 7,
245
- 3
App
ropr
iatio
n cr
edite
d to
spe
cial
acc
ount
16
4,22
9 91
,983
-
- R
ealis
ed in
vest
men
ts
743,
340
595,
000
3,23
9,61
1 1,
990,
736
Inte
rest
rece
ipts
15
,995
14
,539
71
,715
61
,190
O
ther
rece
ipts
1,
615
1,27
7 -
- To
tal i
ncre
ase
925,
179
710,
044
3,31
1,32
6 2,
051,
929
Ava
ilabl
e fo
r pay
men
ts
942,
748
710,
044
3,31
1,32
7 2,
051,
929
Dec
reas
es
Adm
inis
tere
d
P
aym
ents
mad
e - s
uppl
iers
(5
22)
(789
) -
- P
aym
ents
mad
e - c
omm
ittee
mem
bers
(7
6)
(135
) -
- P
aym
ents
mad
e - l
and
coun
cils
(9
1,53
5)
(47,
150)
-
- P
aym
ent m
ade
- tow
nshi
p le
ase
paym
ents
(1,8
66)
(564
) -
- P
aym
ents
mad
e - I
ndig
enou
s La
nd C
ounc
il
- -
(49,
865)
(5
2,46
3)
Pay
men
ts m
ade
- gra
nts
(51,
276)
(2
6,49
7)
- -
PG
PA
Act
sec
tion
58 in
vest
men
ts
(783
,340
) (6
17,3
40)
(3,2
61,0
43)
(1,9
99,4
00)
Pay
men
ts m
ade
- oth
er
- -
(417
) (6
5)
Tota
l adm
inis
tere
d de
crea
ses
(928
,615
) (6
92,4
75)
(3,3
11,3
25)
(2,0
51,9
28)
Tota
l dec
reas
es
(928
,615
) (6
92,4
75)
(3,3
11,3
25)
(2,0
51,9
28)
Tota
l bal
ance
car
ried
to th
e ne
xt p
erio
d
14
,133
17
,569
2
1 A
s a
cons
eque
nce
of th
e A
dmin
istra
tive
Arr
ange
men
ts O
rder
of 1
8 Se
ptem
ber 2
013,
thes
e sp
ecia
l acc
ount
s, e
xcep
t for
Ser
vice
s fo
r Oth
er E
ntiti
es a
nd T
rust
Mon
eys,
wer
e tra
nsfe
rred
from
Dep
artm
ent o
f Soc
ial S
ervi
ces,
the
form
er D
epar
tmen
t of E
duca
tion,
Em
ploy
men
t and
Wor
kpla
ce R
elat
ions
and
Dep
artm
ent o
f Hea
lth.
134 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
1Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2008/13 Purpose: This account was created to disburse amounts held on trust or otherwise for the benefit of a person other than the Commonwealth. This account is non-interest bearing and the balance is held in the Official Public Account. 2Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Corporations (Aboriginal and Torres Strait Islander) Act 2006; section 551-20 Purpose: To administer unclaimed monies received by the Registrar of Aboriginal and Torres Strait Islander Corporations. This account is non-interest bearing and the balance is held in the Official Public Account. 3Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2003/05 Purpose: To provide a source of finance for the liability for the Superannuation Productivity Benefit entitlements owing to tutors contracted under the Aboriginal Tutorial Assistance Scheme (ATAS). This account is non-interest bearing and the balance is held in the Official Public Account. 4Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 Establishing Instrument: Determination 2010/06 Purpose: To support the implementation of the Remote Service Delivery National Partnership Agreement. It will provide the Australian Government with the capacity to address high priority projects in a timely way and support projects identified through the local implementation planning process. This account is non-interest bearing and the balance is held in the Official Public Account. 5Appropriation: Public Governance, Performance and Accountability Act 2013; section 78 (repealed 1 July 2014) Establishing Instrument: Determination 2008/24 Purpose: Administering the Indigenous Communities Strategic Investment Programme. This account is non-interest bearing and the balance is held in the Official Public Account. 6Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Aboriginal Land Rights (Northern Territory) Act 1976; sections 62, 63, 64 and 65 Purpose: For the receipt and disbursement of the equivalent of mining royalty monies derived from mining operations on Aboriginal land in the Northern Territory. This account is interest bearing. 7Appropriation: Public Governance, Performance and Accountability Act 2013; section 80 Establishing Instrument: Section 192W of the Aboriginal and Torres Strait Islander Act 2005 Purpose: To provide a secure stream of income to the Indigenous Land Corporation in perpetuity to provide economic, environmental, social and cultural benefits for Aboriginal people and Torres Strait Islanders by assisting in the acquisition and management of an Indigenous land base. This account is interest bearing. Aboriginal Advancement Account The Aboriginal Advancement Account was established under section 80 of the PGPA Act.
The purpose of the account is for furthering the social and economic advancement of Aboriginal people living in Victoria. As a result of the Administrative Arrangement Orders, this account was transferred from DSS as part of the Indigenous Affairs function as at 18 September 2013 with a nil balance. There were no transactions credited or debited to the special account during 2014 and 2015.
135Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 30: Compliance with statutory conditions for payments from the consolidated revenue fund Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. Commonwealth Agencies are required to assess the potential for breaches of section 83 to occur, recognising the increased risk of non-compliance where additional statutory requirements are attached to an appropriation.
During 2014-15 PM&C reviewed its exposure to the risk of not complying with statutory conditions on payments from appropriations. The review included:
identifying statutory conditions in any new special appropriations and special accounts identifying any changes to statutory conditions in existing special appropriations and special accounts reviewing legislation associated with annual appropriations to identify statutory conditions on payments determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions and
assessing the extent to which payment systems and processes satisfy those conditions determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of non-
compliance, if any, in higher risk situations obtaining legal advice, as appropriate, to resolve questions of potential non-compliance considering legislative or procedural changes to reduce the risk of non-compliance in the future to an acceptably
low level. PM&C identified five appropriations involving statutory conditions for payment:
two special appropriations two special accounts one annual appropriation
During 2014-15 all appropriations with statutory conditions attached were reviewed. Administered payments of $501.714 million (30.4 percent of total administered payments) and departmental payments of $24.671 million (4.2 percent of total departmental payments) were subject to additional statutory conditions.
The review identified the following:
1. Special Accounts
PM&C currently has seven special accounts, of which two have payment requirements incorporated in legislation.
a. The Aboriginal and Torres Strait Islander Land Account (ATSILA) – testing of transactions revealed no issues.
b. The Aboriginals Benefit Account (ABA) – testing of transactions revealed that two payments made from the ABA under section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976 contravened section 83 of the Constitution. Payments are required to be made out of the ABA based on royalties received by the Northern Territory and Commonwealth governments. The contraventions occured when the royalties upon which the payments were based had been estimated at a greater value than required. Legislation has been prepared, and is awaiting presentation to Parliament, to reduce the risks of non-compliance associated with these payments to an acceptably low level.
The two payments made in contravention of section 83 totalled $0.314 million. Both were technical contraventions, despite the payments having been made in accordance with the requirements of section 64(3) of the Aboriginal Land Rights (Northern Territory) Act 1976. Of this amount, $0.136 million has been recovered through the reduction of subsequent payments, and $0.178 million will be offset against future payments.
2. Special appropriations
Special appropriations considered were:
Aboriginal Land Rights (Northern Territory) Act 1976 Higher Education Support Act 2003.
No contraventions of section 83 of the Constitution were identified for these special appropriations.
3. Annual appropriations
Administered - Consistent with the Finance guidelines on annual Appropriation Acts, payments made in accordance with the Native title Act 2003 were considered to have medium risks of section 83 breach. PM&C’s other annual
136 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
administered appropriations have limited specificity and none have been assessed as likely to have breached section 83 in the 2014-15 financial year.
Departmental – PM&C has identified two pieces of legislation that impose payment preconditions over departmental payments. These are:
Long Service Leave (Commonwealth Employees) Act 1976 – testing of payments made under this legislation has revealed 16 breaches of section 83 of the Constitution. These relate to overpayments of Long Service Leave for a voluntary redundancy. The total value of the breaches is $0.096 million. At 30 June 2015, the appropriate mechanisms for recovery or other action in relation to this amount were being investigated.
Superannuation Act 2005 - testing of payments made under this legislation has revealed 5,895 breaches of section 83 of the Constitution. These relate to contributions to the Public Sector Superannuation Accumulation Plan (PSSAP) that were calculated using the wrong basis for superannuation salary. PM&C is investigating mechanisms to improve controls over the selection of the superannuation salary basis. The total value of the potential breaches is $0.532 million.
PM&C’s other annual departmental appropriations have limited specificity and none have been assessed as likely to have breached section 83 in the 2014-15 financial year.
PM&C will continue to monitor its level of compliance with section 83 of the Constitution across all legislation for which it is administratively responsible. Where possible, amendments to legislation will continue to be progressed.
137Part 4: Financial statements
DEP
AR
TMEN
T O
F TH
E PR
IME
MIN
ISTE
R A
ND
CA
BIN
ET
NO
TES
TO A
ND
FO
RM
ING
PA
RT
OF
THE
FIN
AN
CIA
L ST
ATE
MEN
TS
for t
he p
erio
d en
ded
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138 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 31: Assets held in trust 2015 2014 $'000 $'000 Monetary assets - Cash at bank As at 1 July 11 1
Receipts 154 150 Payments (43) (140)
Total as at 30 June 122 11 Total monetary assets held in trust 122 11
Financial assets held in trust are disclosed in Note 29 Special accounts in the account titled Services for Other Entities and Trust Moneys Special Account.
139Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 32: Reporting of outcomes The Department attributes corporate shared items based upon average staffing levels to reflect full cost of delivery. The basis of attribution in the table below is consistent with the basis used for the Budget.
Note 32A: Net cost of outcome delivery
Outcome 1 Outcome 2
Payments to corporate Commonwealth entities
and companies Total 2015 2014 2015 2014 2015 2014 2015 2014
Total (274,396) (230,653) (295,662) (155,568) (570,058) (386,221) Departmental income
Sales of goods and rendering of services 4,491 18,747 8,794 2,719 13,285 21,466 Resources received free of charge 9,722 3,054 901 3,849 10,623 6,903 Sale of assets - - - 54 - 54 Gain on reversal of make good 93 - - - 93 - Revenue from Government 239,665 184,936 288,858 166,214 528,523 351,150
Total 253,971 206,737 298,553 172,836 552,524 379,573 Departmental assets
Cash and cash equivalents 4,427 644 7,636 989 12,063 1,633 Trade and other receivables 41,398 91,031 77,114 32,897 118,512 123,928 Accrued revenue 1,959 1,775 3,438 384 5,397 2,159 Property, plant and equipment 18,263 29,313 101,152 106,834 119,415 136,147 Intangibles 5,167 8,156 8,746 1,542 13,913 9,698 Prepayments 848 2,452 1,756 3,761 2,604 6,213 Assets held for sale - - 430 785 430 785
Total 72,062 133,371 200,272 147,192 272,334 280,563 Departmental liabilities
Other provisions (129) (129) (98) (195) - - (227) (324)
Total (18,531) (19,393) (29,756) (28,552) - - (48,287) (47,945)
142 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 33: Budgetary reports and explanations of major variances The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the entity. The Budget is not audited. Note 33A: Departmental budgetary reports Statement of Comprehensive Income for the period ended 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses
Employee benefits 272,603 297,355 (24,752) Suppliers 267,414 290,189 (22,775) Grants 1,236 45 1,191 Depreciation and amortisation 28,225 8,836 19,389 Finance costs - unwinding of discount on make good 52 24 28 Write-down and impairment of assets 497 - 497 Losses from asset sales 31 - 31
Total expenses 570,058 596,449 (26,391) Own-source income Own-source revenue
Sale of goods and rendering of services 13,285 8,613 4,672 Resources received free of charge 10,623 2,143 8,480
Total own-source revenue 23,908 10,756 13,152 Gains
Other 93 - 93 Total gains 93 - 93 Total own-source income 24,001 10,756 13,245 Net cost of services 546,057 585,693 (39,636) Revenue from Government - departmental appropriations 528,523 576,857 (48,334) Deficit attributable to the Australian Government (17,534) (8,836) (8,698) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus 3,822 - 3,822 Total comprehensive loss attributable to the Australian Government (13,712) (8,836) (4,876)
1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33B.
143Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Statement of Financial Position as at 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets
Cash and cash equivalents 12,063 1,038 11,025 Trade and other receivables 123,909 23,852 100,057
Total financial assets 135,972 24,890 111,082 Non-financial assets
Total equity 139,963 14,500 125,463 1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33B.
144 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 33B: Departmental major budget variances for 2015 The purpose of this note is to outline the reasons for significant variances betweeen the Department's original budget estimates, as published in the 2014-15 Portfolio Budget Statements, and the actual expenditure and net asset position for the year. In 2014-15 the Department delivered the following key priorities:
successful delivery of the G20 Summit in Brisbane which saw governments and central bank governors from 20 major economies gather to discuss policy issues relating to international financial stability;
a restructure of the Regional Network to simplify reporting structures and enable decisions to be made closer to the people and communities impacted. This restructure is in line with the Government's commitment to achieve better outcomes for Indigenous people in the priority areas of schooling, jobs and community safety;
development and delivery of the Indigenous Advancement Strategy (IAS) which streamlined and combined approximately 150 programmes to deliver services through five broad based programmes. The IAS is designed to provide flexibility within the progamme structure to allow the Department to focus on priority areas that can make a real difference; and
finalisation of funding and asset transfers arising from the 2013 Machinery of Government changes which resulted in functions and staff transferring in from nine other Commonwealth agencies.
These activities combined with the usual business of the Department have driven the financial result for the year. Where the results have varied significantly from the original budget, explanations are provided below.
Explanation of major variances Affected line items (and statement)
Employee Benefits: staff vacancies and recruitment delays were experienced across the Department leading to lower than budgeted expenses. A key driver was establishing the structure of the Indigenous Affairs Group, including the regional network, a prerequisite to recruiting the right capabilities.
Employee benefits expense - Statement of Comprehensive Income
Supplier expense: was lower than budget due to close management of expenditure on the G20 Summit as well as a focus on establishing the IAS and restructuring the regional network. Resources and effort were diverted from other planned activities towards the G20 Summit and establishing the IAS and as a result, supplier expense in other areas was reduced.
Suppliers expense - Statement of Comprehensive Income
Grant payments: grants paid in 2014-15 were unforeseen when the original 2014-15 budget was established.
Grants expense - Statement of Comprehensive Income
Depreciation: due to the complexity associated with bringing together functions and funding from nine Commonwealth agencies, arrangements for the transfer of some assets weren't settled in the previous year. Assets valued at approximately $116 million were transferred after the budget was finalised. This resulted in higher than budgeted expense to represent the decline in value of those assets.
Depreciation - Statement of Comprehensive Income Non-financial assets - Statement of Financial Position
Own-source revenue: corporate services provided to other Commonwealth agencies continued for longer than expected and the scope of some services were finalised post budget, resulting in higher than budgeted revenue. In addition, sub-lease arrangements of office accommodation in the regional network to other Commonwealth agencies were finalised post budget, resulting in higher than budgeted revenue.
Sale of goods and rendering of services - Statement of Comprehensive Income
Resources received free of charge: represents benefits the Department derives from receiving goods or services that it is not required to pay for. At the time the budget was prepared, it was unknown that the Digital Transformation Office Taskforce would be established during the financial year. The taskforce was located in office accommodation that was provided free of charge by another agency and the staff were largely seconded from other agencies with the costs being paid by those agencies.
Resources received free of charge - Statement of Comprehensive Income
145Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 33C: Administered budgetary reports Administered Schedule of Comprehensive Income for the period ended 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 NET COST OF SERVICES Expenses
Total expenses 1,572,657 1,555,597 17,060 Income Revenue Non-taxation revenue
Interest - investments 86,688 95,087 (8,399) Other 20,070 575 19,495
Total non-taxation revenue 106,758 95,662 11,096 Total revenue 106,758 95,662 11,096 Gains
Assets received free of charge 818 - 818 Total gains 818 - 818 Total income 107,576 95,662 11,914 Net cost of services 1,465,081 1,459,935 5,146 Deficit (1,465,081) (1,459,935) (5,146) OTHER COMPREHENSIVE INCOME Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation reserves 61,595 - 61,595 Items subject to subsequent reclassification to net cost of services
Actuarial losses relating to former Governors-General entitlements (1,903) - (1,903)
Total other comprehensive income 59,692 - 59,692 Total comprehensive loss (1,405,389) (1,459,935) 54,546
1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33D.
146 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Administered Schedule of Assets and Liabilities as at 30 June 2015 Actual Budget estimate Original1 Variance2 2015 2015 2015 $'000 $'000 $'000 ASSETS Financial assets
Cash and cash equivalents 14,563 22,900 (8,337) Trade and other receivables 72,636 7,894 64,742 Investments in corporate Commonwealth entities 1,777,729 1,756,528 21,201 Other investments 2,480,243 2,397,538 82,705
Total financial assets 4,345,171 4,184,860 160,311 Non-financial assets
Employee provisions 272 380 (108) Non-cash benefits - former Governors-General benefits 17,509 14,778 2,731 Other provisions 227 114 113
Total provisions 18,008 15,272 2,736 Total liabilities administered on behalf of Government 48,287 63,522 (15,235) Net assets 4,304,441 4,131,505 172,936
1. PM&C’s original budgeted financial statement that was first presented to Parliament in respect of the reporting period (i.e. from the PM&C’s 2014-15 Portfolio Budget Statements (PBS)). 2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided in Note 33D.
147Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Note 33D: Administered major budget variances for 2015
In line with the Government's commitment to achieve better outcomes for Indigenous people in the priority areas of schooling, jobs and community safety, the Department developed and delivered the Indigenous Advancement Strategy (IAS) which came into effect in 2014-15. The IAS has been designed to provide flexibility within the programme structure, which saw approximately 150 programmes being consolidated into five programmes, allowing the Department to focus on the priority areas that can make a real difference. The Department also restructured the Regional Network to simplify reporting structures and enable decisions to be made closer to the people and communities that are impacted. These key activities resulted in significant changes to the original budget through the Portfolio Additional Estimates Statements (PAES) and resulted in reclassification of budget amounts between the categories included in the Statement of Comprehensive Income. These activities combined with the usual business of the Department have driven the financial result for the year. Where the results have varied significantly from the original budget, explanations are provided below. Explanation of major variances Affected line items (and schedule) Suppliers: The implementation of the IAS included a significant reallocation from supplier expense to grants. The reallocation predominantly related to the classification of payments under the Jobs, Land and Economy Programme.
Suppliers expense - Administered Schedule of Comprehensive Income Suppliers payable - Administered Schedule of Assets and Liabilities
Subsidies: Under the IAS, wage support payments in the Jobs, Land and Economy programme that were previously reported as subsidies have been reclassified to grants.
Subsidies expense - Administered Schedule of Comprehensive Income
Grants payments: Payments under the Jobs, Land and Economy programmes have been reclassified from suppliers and subsidies to grants. The budget allocation was revised through the PAES process to reflect the reallocation and the actual expenditure for the year was in line with the revised PAES budget. The Indigenous Advancement Strategy is designed to have the flexibility within programmes to allow for the allocation of funds to assist in meeting emerging priorities. Accordingly, funding was re-allocated between sub-programmes during the year as priorities were identified. The most significant adjustment was an increase in the funding allocated to the Remote Jobs and Communities Programme (RJCP) following a commitment by Government to increase the number of structured activities available to job seekers.
Grants expense - Administered Schedule of Comprehensive Income Grants payable - Administered Schedule of Assets and Liabilities
Other expenses: Payments to the Indigenous Land Corporation and the related withholding tax payments were higher than budgeted as a flow on effect of higher than budgeted mining royalties being received.
Other expenses - Administered Schedule of Comprehensive Income Other payables - Administered Schedule of Assets and Liabilities
148 Part 4: Financial statements
DEPARTMENT OF THE PRIME MINISTER AND CABINET NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2015
Interest - Investments: The Interest rates on offer in the market were lower than expected at the time the budget was prepared, in line with decreases in the official cash rate set by the Reserve Bank of Australia.
Interest - investments - Administered Schedule of Comprehensive Income
Other revenue: Returns of unused grant funding were higher than expected. Where possible, and in line with relevant approvals, the Department reallocates this funding to other providers to deliver services.
Other revenue - Administered Schedule of Comprehensive Income