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Financial Statements

Independent Audit Report

To the Minister for Transport and Regional Services

Scope

I have audited the financial statements of the Department of Transport and Regional Services for the year ending 30 June 1999. The financial statements comprise:

  • Statement by the Chief Executive
  • Agency and Administered statements of:
    • Revenues and Expenses
    • Assets and Liabilities
    • Revenues and Expenses by Program
    • Cash Flows
  • Schedule of Commitments
  • Schedule of Contingencies
  • Notes to and forming part of the Financial Statements.

The Department's Chief Executive is responsible for the preparation and presentation of the financial statements and the information they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you.

The audit has been conducted in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Ausditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards, other mandatory preofessional reporting requirements and statutory requirements so as to present a view of the Department which is consistent with my understanding of its financial position, its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In my opinion,

  1. the financial statements have been prepared in accordance with Schedule 2 of the Finance Minister's Orders
  1. the financial statements give a true and fair view, in accordance with applicable Accounting Standards, other mandatory prefessional reporting requirements and Schedule 2 of the F9inance Minister's Orders, of the financial position of the Department of Transport and Regional Services as at 30 June 1999 and the results of its operations and its cash flows for the year then ended.


Australian National Audit Office

Lynne O'Brien
Executive Director
Delegate of the Auditor-General

Canberra
24 September 1999

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Statement by the Chief Executive

In my opinion, the attached financial statements give a true and fair view of the matters required by Schedule 2 to the Finance Minister's Orders made under section 63 of the Financial Management and Accountability Act 1997.

Allan Hawke
Chief Executive

24 September 1999

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Agency Revenues and Expenses

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

AGENCY REVENUES AND EXPENSES

for the year ended 30 June 1999

1998-99

1997-98

Notes

$'000

$'000

NET COST OF SERVICES

Expenses

Employees

4A

53 808

49 492

Suppliers

4B

87 693

67 145

Depreciation and amortisation

4C

25 746

17 191

Write down of assets

4E

1 540

1 099

Net losses from sale of assets

4G

517

549

Total expenses

169 305

135 477

Revenues from independent sources

Sales of goods and services

7 523

7 810

Reversals of previous asset write-downs

-

11

Total revenues from independent sources

7 523

7 821

Net cost of services

161 781

127 656

REVENUES FROM GOVERNMENT

Appropriations used for:

Ordinary annual services (net appropriations)

2.4, 21

125 803

113 204

Other services

11 130

7 413

Resources received free of charge

5

592

203

Total revenues from government

137 525

120 821

Operating result before extraordinary items

(24 256)

(6 836)

Net revenues or expenses from extraordinary items:

Restructuring

7A

( 1 210)

221 184

Operating surplus

( 25 466)

214 349

Accumulated results at 1 July

216 152

1 803

Accumulated results at 30 June

190 685

216 152

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

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Administered Revenues and Expenses

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

ADMINISTERED REVENUES AND EXPENSES

for the year ended 30 June 1999

                   
             

1998-99

 

1997-98

         

Notes

 

$'000

 

$'000

                   

REVENUES

             
                   
 

TAXATION

             
   

Levies, fees and fines

   

9

 

111 906

 

77 033

 

Total taxation

       

111 906

 

77 033

 

NON-TAXATION

             
   

Sales of goods and services

       

7 867

 

7 251

   

Interest and dividends

   

10A

 

69 364

 

97 495

   

AWDC Land Sales

       

10 200

 

11 000

   

Other

       

28 783

 

5 117

 

Total non-taxation

       

116 214

 

120 863

                   

Total revenues

       

228 120

 

197 896

                   

EXPENSES

             
   

Subsidies

       

38 349

 

22 123

   

Grants

   

6

 

2 404 641

 

1 101 179

   

Depreciation and amortisation

   

4D

 

369

 

69

   

Net write down of assets

   

4F

 

3 149

 

727

   

Net losses from sale of assets

   

4H

 

1 260

 

60

   

Goods & Services

       

65 667

 

69 226

   

Other

       

-

 

266

Total expenses

       

2 513 435

 

1 193 650

                   
   

Net cost to government

       

(2 285 316)

 

(995 756)

                   

TRANSFERS

             
                   
   

Special Appropriations Accrued

       

114 705

 

-

   

Cash from Official Commonwealth Public Account

 

2 471 459

 

2 120 692

   

Cash from other Government Department

     

230 450

 

-

   

Cash to Official Commonwealth Public Account

 

(362 152)

 

(203 033)

                   
   

Net change in administered assets before

     

169 147

 

921 903

   

extraordinary items

             
   

Restructuring

   

7B

 

63 699

 

(835 539)

                   
                   
   

Net change in administered assets

     

232 845

 

86 364

                   
   

Transfers from Reserves

   

8A

 

( 300 596)

 

126 229

   

Accumulated results at 1 July

       

379 990

 

255 302

   

Prior period adjustments

   

8B

 

308 962

 

(87 906)

                   
   

Accumulated results at 30 June

       

621 201

 

379 990

                   
                   

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

   

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Agency Assets and Liabilities

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

AGENCY ASSETS AND LIABILITIES

as at 30 June 1999

                   
             

1998-99

 

1997-98

         

Notes

 

$'000

 

$'000

                   

DEBT

             
   

Other

   

11A

 

14

 

352

Total debt

       

14

 

352

                   

PROVISIONS AND PAYABLES

             
   

Employees

   

12A

 

21 110

 

18 312

   

Suppliers

   

12B

 

2 650

 

2 658

   

Other

   

12C

 

93

 

154

Total provisions and payables

       

23 853

 

21 123

                   

EQUITY

             
   

Accumulated results

       

190 685

 

216 152

   

Capital

       

11 974

 

-

   

Reserves

       

17 371

 

16 112

Total equity

   

13A

 

220 030

 

232 265

   

Total liabilities and equity

       

243 898

 

253 739

                   

FINANCIAL ASSETS

             
   

Cash

       

770

 

413

   

Receivables

   

14B

 

13 222

 

10 596

Total financial assets

       

13 993

 

11 009

                   

NON-FINANCIAL ASSETS

             
   

Land and buildings

   

15A, G

 

98 430

 

102 174

   

Infrastructure, plant and equipment

 

15C, G

 

119 939

 

128 637

   

Inventories

   

15I

 

2 613

 

3 196

   

Intangibles

   

15E, G

 

3 116

 

469

   

Other

   

15K

 

5 807

 

8 255

Total non-financial assets

       

229 905

 

242 730

                   
   

Total assets

       

243 898

 

253 739

                   

Current liabilities

       

11 765

 

10 834

Non-current liabilities

       

12 102

 

10 642

                   

Current assets

       

21 496

 

21 384

Non-current assets

       

222 402

 

232 356

                   

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

   

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Administered Assets and Liabilities

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

ADMINISTERED ASSETS AND LIABILITIES

as at 30 June 1999

                   
             

1998-99

 

1997-98

         

Notes

 

$'000

 

$'000

                   

DEBT

             
   

Loans

   

11B, 8B

 

0

 

297 106

Total debt

           

297 106

                   

PROVISIONS AND PAYABLES

             
   

Subsidies

       

2 030

 

190

   

Grants

   

12D

 

117 577

 

3 328

   

Other

   

12E

 

7 607

 

9 906

Total provisions and payables

       

127 213

 

13 424

                   

EQUITY

             
   

Accumulated results

       

621 201

 

379 990

   

Capital

       

8 388

 

-

   

Reserves

       

1 259 166

 

2 131 586

Total equity

   

13B

 

1 888 755

 

2 511 576

   

Total liabilities and equity

       

2 015 968

 

2 822 106

                   

FINANCIAL ASSETS

             
   

Cash

   

14A

 

636

 

326

   

Receivables

   

14C

 

337 572

 

311 984

   

Investments

   

14D

 

1 533 105

 

2 456 040

   

Accrued revenues

   

14E

 

4 723

 

4 646

Total financial assets

       

1 876 035

 

2 772 996

                   

NON-FINANCIAL ASSETS

             
   

Land and Buildings

   

15B, H

 

52 459

 

45 279

   

Infrastructure, plant and equipment

 

15D, H

 

8

 

8

   

Intangibles

   

15F, H

 

7 381

 

3 148

   

Inventories

   

15J

 

376

 

-

   

Other

   

15L

 

79 709

 

675

Total non-financial assets

       

139 933

 

49 110

                   
   

Total assets

       

2 015 968

 

2 822 106

                   
                   

Current liabilities

       

15 213

 

21 076

Non-current liabilities

       

112 000

 

289 454

                   

Current assets

       

468 090

 

29 737

Non-current assets

       

1 547 878

 

2 792 369

                   
                   

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

   

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Agency Revenues and Expenses by Program

This section contains a large table and is therefore presented in PDF format [PDFPDF: 134 KB]

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Agency Cash Flows

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

AGENCY CASH FLOWS

for the year ended 30 June 1999

                   
             

1998-99

 

1997-98

         

Notes

 

$'000

 

$'000

OPERATING ACTIVITIES

             

Cash received

             

Appropriation revenue

       

145 407

 

122 508

Sales of goods and services

       

7 775

 

7 388

                   

Total cash received

       

153 182

 

129 897

Cash used

             

Employees

       

52 365

 

49 445

Suppliers

       

83 859

 

70 616

                   

Total cash used

       

136 224

 

120 061

                   

Net cash from operating activities

   

16A

 

16 958

 

9 835

                   

INVESTING ACTIVITIES

             

Cash received

             

Proceeds from the sale of property, plant and equipment

 

570

 

1 106

                   

Total cash received

       

570

 

1 106

Cash used

             

Purchases of property, plant and equipment

     

17 171

 

10 558

                   

Total cash used

       

17 171

 

10 558

                   

Net cash from (used by) investing activities

     

( 16 601)

 

(9 452)

                   

Net increase/(decrease) in cash held

     

357

 

383

add cash at 1 July

       

413

 

30

Cash at 30 June

       

770

 

413

                   

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

   

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Administered Cash Flows

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

ADMINISTERED CASH FLOWS

for the year ended 30 June 1999

             

1998-99

 

1997-98

OPERATING ACTIVITIES

   

Notes

 

$'000

 

$'000

Cash received

             

TAXATION

             

Other taxes, fees and fines

       

102 950

 

76 633

Total taxation

       

102 950

 

76 633

                   

NON-TAXATION

             

Sales of goods and services

       

7 770

 

7 098

Interest and dividends

       

69 686

 

98 885

Other non-taxation revenues

       

33 781

 

18 933

Cash from Official Commonwealth Public Account

   

2 471 460

 

2 117 772

Total non-taxation

       

2 582 697

 

2 242 688

                   

Total cash received

       

2 685 647

 

2 319 322

                   

Cash used

             

Subsidies

       

36 509

 

22 031

Grants

       

2 357 235

 

2 027 660

Other

       

67 932

 

68 073

Cash to Official Commonwealth Public Account

     

362 152

 

203 033

                   

Total cash used

       

2 823 828

 

2 320 797

                   

Net cash from operating activities

   

16B

 

(138 181)

 

(1 476)

                   

INVESTING ACTIVITIES

             

Cash received

             

Proceeds from sales of property, plant and equipment

 

-

 

1 389

Equity repayments

       

31 073

 

-

Repayment of loans

       

107 556

 

45 987

Cash from other Department

       

230 450

 

-

Cash from Official Commonwealth Public Account

 

-

 

2 920

             

369 079

   

Total cash received

           

50 296

                   

Cash used

             

Equity payment

       

-

 

-

Purchase of property, plant and equipment

     

-

 

1 360

On lending of funds

       

588

 

-

Purchase of investments

       

230 000

 

1 560

Repayment to Official Commonwealth Public Account

 

-

 

45 987

Cash to Official Commonwealth Public Account

     

-

 

-

                   

Total cash used

       

230 588

 

48 907

                   

Net cash from (used by) investing activities

     

138 491

 

1 389

                   

Net (decrease) increase in cash held

       

310

 

(87)

add cash at 1 July

       

326

 

413

Cash at 30 June

       

636

 

326

                   
                   

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

   

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Schedule of Commitments

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

SCHEDULE OF COMMITMENTS

as at 30 June 1999

                   
     

Agency

 

Administered

     

1998-99

 

1997-98

 

1998-99

 

1997-98

     

$'000

 

$'000

 

$'000

 

$'000

BY TYPE

             
                   

CAPITAL COMMITMENTS

             
 

Land and buildings

-

 

88

 

-

 

-

 

Infrastructure, plant and equipment

-

 

13 213

 

-

 

-

 

Other capital commitments

773

 

1 106

 

-

 

-

                   

Total capital commitments

773

 

14 407

 

-

 

-

                   

OTHER COMMITMENTS

             
 

Operating leases

12 882

 

21 964

 

-

 

-

 

Project commitments

304

 

160

 

3 208 340

 

2 149 064

 

Research and development

-

 

-

 

-

 

275

 

Other commitments

31 784

 

10 929

 

23 453

 

64 906

                   

Total other commitments

44 970

 

33 053

 

3 231 793

 

2 214 245

                   

COMMITMENTS RECEIVABLE

-

 

-

 

-

 

-

                   
 

Net commitments

45 743

 

47 460

 

3 231 793

 

2 214 245

                   
                   

BY MATURITY

             
                   

All net commitments

             
                   
 

One year or less

16 934

 

29 808

 

795 638

 

595 721

 

From one to two years

9 797

 

10 584

 

850 415

 

478 244

 

From two to five years

19 011

 

6 889

 

1 585 740

 

910 330

 

Over five years

-

 

179

 

-

 

229 950

                   

Net commitments

45 742

 

47 460

 

3 231 793

 

2 214 245

                   

Operating Lease Commitments

             
                   
 

One year or less

6 731

 

7 929

 

-

 

-

 

From one to two years

4 133

 

6 987

 

-

 

-

 

From two to five years

2 018

 

6 869

 

-

 

-

 

Over five years

-

 

179

 

-

 

-

                   

Net commitments

12 882

 

21 964

 

-

 

-

                   
                   

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

   

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Schedule of Contingencies

DEPARTMENT OF TRANSPORT AND REGIONAL SERVICES

SCHEDULE OF CONTINGENCIES

as at 30 June 1999

                   
     

Agency

     

Administered

   
     

1998-99

 

1997-98

 

1998-99

 

1997-98

     

$'000

 

$'000

 

$'000

 

$'000

                   
 

CONTINGENT LOSSES

             
                   
   

Claims for damages / costs1,2

15,220

 

9,472

 

33,963

 

44,535

   

Other3

0

 

0

 

2,000

 

1,517

                   
   

Total Contingent Losses

15,220

 

9,472

 

35,963

 

46,052

                   
 

CONTINGENT GAINS

150

 

0

 

0

 

0

                   
   

Net Contingencies

15,070

 

9,472

 

35,963

 

46,052

                   
                   
   

Remote contingencies are disclosed in Note 17

           
                   

Details

             
                   

1 This amount represents an estimate of the Department's liability based on precedent cases. The Department is

defending the claims.

             

2 This amount includes compensation claims relating to a number of properties acquired for the proposed second

Sydney Airport at Badgerys Creek, under the Land Acquisitions Act 1989. Potential liabilities are estimated

at $33 963 000.

             

3 This amount includes the Commonwealth having assumed responsibility for all remaining assets, liabilities and

contracts of the Federal Airports Corporation upon its wind-up. Unpresented cheques of $2 million have been

identified and provided for. There is no basis for quantifying any potential claims beyond this amount.

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Schedule of Unquantifiable Contingencies

SCHEDULE OF UNQUANTIFIABLE CONTINGENCIES

Departmental

As at 30 June 1999 the Commonwealth is party to ongoing funding agreements with the Australian Capital Territory (assistance for water and sewerage, and compensation for national capital influences), the Christmas Island Shire Council (financial assistance) and the Cocos (Keeling) Islands Shire Council (financial assistance). The

future liabilities of these agreements cannot be reliably measured.

Administered

Federal Airports Corporation (FAC) - transfer of former contingent liabilities to the Commonwealth

As part of the wind-up of the FAC, the Commonwealth assumed responsibility on 1 July 1998 for a contingent liability of the Corporation which relates to debtors of the FAC who are challenging the validity of network charges made under the Federal Airports Corporation Act 1986. If the network charging approach is found to be invalid, this raises the prospect of further claims from other airport users who have previously paid network based charges to the Corporation. There is no basis for quantifying potential claims.

Stevedoring Industry Finance Committee (SIFC)

The Stevedoring Industry Finance Committee (SIFC) has 18 claims for asbestos related damage awaiting High Court decision. These claims were inherited from the Australian Stevedoring Industry Authority. Costs that may arise from these claims can not be determined and are therefore unquantifiable. Any future claims made resulting from the High Court's decision are also unquantifiable.

Australian Maritime Safety Authority (AMSA) - in relation to ship-sourced marine pollution

In the normal course of operations, the Authority is responsible for the provision of funds necessary to meet the clean-up costs arising from ship-sourced marine pollution. The Commonwealth has agreed that the Authority's responsibility be limited to a maximum outlay of $10 million. The Authority entered into a stand-by loan facility for this purpose. In the event of costs above that limit, funds will be provided by the Commonwealth. The Commonwealth's risk is unquantifiable. In all circumstances, the Authority is responsible for making appropriate efforts to recover the costs of any such incidents.

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

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