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Notes To And Forming Part Of The Financial Statements

Note 1 : Departmental Objectives

The purpose of the Department is to link Australia through transport and regional services.

The program structure and the objectives of each program are set out in the annual report.

Note 2 : Summary of Significant Accounting Policies

2.1 Basis of Accounting

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with Schedule 2 to the Financial Management and Accountability (FMA) Orders made by the Minister for Finance and Administration. Schedule 2 requires that the financial statements are prepared:

  • in compliance with Australian Accounting Standards, Accounting Guidance Releases and Urgent Issues Group consensus views; and
  • having regard to Statements of Accounting Concepts.

The financial statements have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results of the financial position.

The continued existence of the Department in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for the Department's administration and programs.

2.2 Departmental and Administered items

Departmental assets, liabilities, revenues and expenses are those items that are controlled by the Department including:

  • computers, plant and equipment used in providing goods and services;
  • liabilities for employee entitlements;
  • revenues from running costs appropriations;
  • revenues from user charging etc where the proceeds are deemed appropriated under section 31 of the Financial Management and Accountability Act 1997; and
  • employee expenses and other suppliers expenses incurred in providing goods and services.

Administered items are those items which are controlled by the Government and managed or oversighted by the Department on behalf of the Government. These items include benefit payments and other taxes, fees and fines.

The purposes of the separation of departmental and administered items is to enable assessment of administrative efficiency of the Department in providing goods and services.

The basis of accounting described in note 2.1 applies to both departmental and administered items.

Administered items are distinguished from departmental items by shading.

2.3 Allocation of Overhead Expenses and Revenues to Primary Programs

The cost of goods and services provided by programs to other programs within the Department (including overhead costs) and any revenues have been attributed to those other programs. The distribution of corporate overhead is based on Average Staffing Level. Total amounts allocated in 1998-99 were expenses $38 775 264 and revenues $31 973 475. (Total amounts allocated in 1997-98 were expenses $25 291 860 and revenues $24 292.)

2.4 Appropriations

Agency Appropriations

Appropriations for agency operations other than running costs are recognised as revenue to the extent that the appropriations are spent.

Appropriations for agency running costs have, until 1998-99, been recognised as revenue in the year of appropriation, except to the extent that :

  • amounts unspent at year end are not automatically carried over into the new financial year; and
  • the appropriations involve running costs borrowings, the repayment of which is effected by an appropriate reduction in the appropriation actually received in the year of repayment. Interest may also be charged on borrowings.

With the introduction of accrual budgeting by the Commonwealth for the year 1999-2000, any re-appropriation to the Department of the automatic running costs carryover for 1999-2000 will be by way of a capital rather than a revenue appropriation. Accordingly, the carryover is not recognised as revenue but as equity in the financial statements for 1998-99.

Administered Appropriations

Administered annual appropriations are recognised as revenue to the extent that cash is transferred from the Official Commonwealth Public Account to enable administered liabilities to be settled. The amount of revenue is disclosed as "transfers - cash from CPA" in the statement of Administered Revenues and Expenses.

With the introduction of accrual budgeting by the Commonwealth for the year 1999-2000, the Department has been re-appropriated amounts of administered annual appropriations recognised as an expense, but unexpended at 30 June. This amount has been re-appropriated as administered capital.

Administered special appropriations are recognised as revenue when the related expense is incurred. This is a change from the previous policy of recognising the appropriation revenue when the related cash expenditure occurred. The effect of the change has been to increase administered special appropriation related revenue by $114 705 292 this financial year.

2.5 Resources Received Free of Charge

Resources received free of charge are recognised in the statement of Agency Revenues and Expenses as revenue where the amounts can be reliably measured. Use of those resources is recognised in the Net Cost of Services.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another department as a consequence of a restructuring of administrative arrangements. In the latter case, the assets are initially recognised at the amounts at which they were recognised by the transferring department immediately prior to the transfer.

2.6 Asset Sales Program

Schedule 2 to the Finance Minister's Orders requires that sales of Commonwealth interests in controlled entities conducted by the Office of Asset Sales and Information Technology Outsourcing (OASITO) are to be fully reported by the OASITO. At the time of sale, the Department writes back the carrying amount of the investment against the Administered Investments Reserve.

Australian National Railways Commission's interstate passenger, SA Rail and Tasrail businesses were sold during the year. The sale did not include interstate track and associated assets.

During the 1997-98 financial year the Government completed phase 1 and phase 2 of the sale process for Federal airports previously owned and operated by the Federal Airports Corporation.

2.7 Grants (Administered)

The Department administers a number of grant schemes on behalf of the Commonwealth. Agreements made under these schemes are made to meet social and economic policy objectives and do not create a present obligation on the Commonwealth until the requisite agreed services have been provided by the recipient government.

Grant liabilities are recognised to the extent that :

  1. the services required to be performed by the grantee have been performed; or
  2. the grant eligibility criteria have been satisfied.

Where grants are paid in advance of performance or eligibility, a prepayment is recognised.

2.8 Employee Entitlements

Leave

The liability for employee entitlements 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 liability for annual leave reflects the value of total annual leave entitlements of all employees at 30 June 1999 and is recognised at the nominal amount.

The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 1999. In determining the present value of the liability, the Department has taken into account attrition rates and projected pay increases through promotion and inflation.

Separation and Redundancy

Provision is also made for separation and redundancy payments in circumstances where the Department has formally identified positions as excess to requirements and a reliable estimate of the amount of the payments can be determined.

Superannuation

Staff of the Department contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. Employer contributions amounting to $5 551 933 (1997-98 $5 181 849) in relation to these schemes have been expensed in these financial statements.

No liability is shown for superannuation in the Statement of Assets and Liabilities as the employer contributions fully extinguish the Department's liability for superannuation. The accruing liability is assumed by the Commonwealth.

Employer Superannuation Productivity Benefit contributions totalled
$1 175 987 (1997-98 $810 716).

2.9 Leases

Operating lease payments are charged to the statement of Agency Revenues and Expenses on a basis which is representative of the pattern of benefits derived from the leased assets.

The Department did not have any finance lease arrangements.

Lease incentives taking the form of 'free' leasehold improvements and rent free holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability over the estimated useful life or the unexpired period of the lease.

2.10 Cash

Cash includes notes and coins held, deposits held at call with a bank or financial institution and balances in the Official Commonwealth Public Account (CPA).

2.11 Financial Instruments

Accounting policies for financial instruments are stated at note 27.

2.12 Property, Plant and Equipment

Asset Recognition Threshold

Assets which are capitalised in the year of acquisition regardless of the historical cost are:

  • CPU's and monitors; and
  • items of plant and equipment acquired as part of a leasehold fitout. Leasehold improvements are valued on a project basis and therefore include items of plant and equipment with a unit value of less than $2 000.

All other assets with historical costs less than $2 000 are expensed in the year of acquisition.

Revaluations

Schedule 2 to the Finance Minister's Orders requires that property, plant and equipment be progressively revalued in accordance with the 'deprival' method of valuation by 1 July 1999 and thereafter be revalued progressively on that basis every three years.

The Department is implementing its progressive revaluations as follows:

  • revaluation of freehold land and buildings commenced progressively over the financial year 1997-98 and will be maintained thereafter over successive three year periods. A geographical approach has been adopted;
  • leasehold improvements will be revalued progressively every three years on a geographical basis from 1998-99;
  • revaluation of plant, equipment and intangibles commenced in the financial year 1997-98 and will continue in 1998-99, and thereafter over successive three-year periods on a geographical basis.

Assets in each class acquired after the commencement of the progressive revaluation cycle will be reported on the basis of the value initially recognised on acquisition for the duration of the progressive revaluation then in progress.

The application of the deprival method by the Department values its land at its current market buying price and its other assets at their depreciated replacement cost. Any assets which would not be replaced or are surplus to requirements are valued at net realisable value. As at 30 June 1999, the Department had no such assets in this situation.

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.

Assets acquired as a consequence of restructuring administrative arrangements are initially recognised at the amounts at which they were recognised in the transferor departments' accounts immediately prior to the restructuring.

Revaluations are accounted for by separately stating the gross amount and the related accumulated depreciation of the revalued asset, except for buildings which have been accounted for using the net value.

All valuations are independent.

Depreciation and Amortisation

Depreciable non-current assets are written-down to their estimated residual values over their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation. Leasehold improvements are amortised on a straight line basis over the lesser of the estimated useful life of the improvements and the unexpired period of the lease.

Estimated useful lives are reviewed annually.

Depreciation and amortisation rates applying to each class of depreciable asset are as follows:

1998-99 1997-98
Buildings on freehold land 25 to 60 years 25 to 60 years
Leasehold improvements Lease term Lease term
Infrastructure, plant and equipment 3 to 80 years 3 to 80 years
Intangible assets 3 years 3 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 4C.

2.13 Inventories

Inventories held for resale are valued at the lower of cost and net realisable value.

Inventory not held for resale is valued at cost, unless it is no longer required, in which case it is valued at net realisable value.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

  • raw materials and stores - purchase cost on a FIFO basis, or valued at average cost; and
  • finished goods and work in progress - cost of direct materials and labour plus attributable costs that are capable of being allocated on a reasonable basis.

2.14 Administered Investments

Administered investments in controlled entities are not consolidated because their consolidation is relevant only at the Whole of Government level.

The Commonwealth's investment in other controlled authorities and companies in this portfolio is valued at the aggregate of the Commonwealth's share of the net assets or net liabilities of each entity. In accordance with advice from the Department of Finance and Administration, the carrying amount of each investment and the associated investment reserve is to be fixed as at 30 June 1997, unless capital injections or withdrawals have occurred.

2.15 Taxation

The Department is exempt from all forms of Commonwealth taxation except fringe benefits tax.

2.16 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material. Loan guarantees arranged in overseas currencies have been converted at the exchange rate current at balance date.

2.17 Insurance

In accordance with Commonwealth Government policy, assets are not insured and losses are expensed as they are incurred.

2.18 Comparative Figures

With the exception of the allocation of costs and revenues to primary programs (refer note 2.3), comparative figures have been adjusted to conform with changes in presentation in these financial statements.

2.19 Rounding

Amounts have been rounded to the nearest $1000 except in relation to the following:

  • transactions of the Consolidated Revenue Fund, and the Reserved Money Fund;
  • act of grace payments, waivers;
  • remuneration of executives; and
  • remuneration of auditors.

Totals are the rounded sums of unrounded figures.

2.20 Prior Period Adjustments

Prior period adjustments have been made to recognise pre-existing but previously unidentified assets and to correct amounts previously recognised as a liability. They have been adjusted against the accumulated results in accordance with the transitional provisions of AAS 29 Financial Reporting by Government Departments.

2.21 Revenue Recognition

Revenues from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to financial assets.

Dividend revenue is recognised when the right to receive a dividend has been established. Revenue from the disposal of non-current assets is recognised when control of the asset has been passed to the buyer.

Levies, fees and fines are recognised at the time they are imposed upon customers.

All revenues described in this note are revenues relating to the corresponding activities of the Department, whether in its own right or on behalf of the Commonwealth, except for gains from the sale of agency assets.

Note 3 : Events Occurring after Balance Date

The Department has entered into a sale and leaseback arrangement with Advantra in respect of its information technology equipment.

The Australian Rail Track Corporation (ARTC) was established in April 1997 as a vehicle for Commonwealth reform of interstate rail track management. In 1998-99 track assets were transferred from the Australian National Railways Commission to the ARTC. It was agreed that a combination of cash payment and issue of shares would be made by the ARTC in consideration for the transfer of assets. As at 30 June 1999 the issue of shares was awaiting completion of asset valuations in the context of finalisation of the ARTC balance sheet. As no shares had been issued at 30 June 1999, no investment by the Commonwealth has been recognised. A first cash instalment of $20m had been made to the Commonwealth.

Note 4 : Goods and Services Expenses

1998-99

1997-98

$'000

$'000

Note 4 - Goods and Services Expenses

Note 4A - Employee Expenses
Remuneration (for services provided) 49 232 48 639
Separation and redundancy 4 577 853
53 808 49 492
Note 4B - Suppliers Expenses
Supply of goods and services 83 673 61 154
Operating lease rentals 4 020 5 991
87 693 67 145
Note 4C - Depreciation and Amortisation
Depreciation of property, plant and equipment 25 533 17 057
Amortisation of Intangibles 213 134
25 746 17 191
The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable assets are as follows:
Buildings 2 198 2 349
Infrastructure, plant and equipment 22 097 13 055
Leasehold improvements 1 237 1 653
Intangibles 213 134
Total expensed 25 746 17 191
No depreciation/amortisation was allocated to the carrying amounts of other assets.
Note 4D - Depreciation and Amortisation - Administered
Amortisation - Intangibles 369 69
Note 4E - Write-down of assets
Financial assets
Receivables 561 377
Non-financial assets
Inventories 18 -
Infrastructure, plant and equipment 961 113
Assets reclassified as Administered (abnormal expense) - 609
1 540 1 099
1998-99 1997-98
$'000 $'000
Note 4F - Write-down of assets - Administered
Financial assets
Other 1 789 727
Non-financial assets
Land and buildings 1 360 -
3 149 727
Note 4G - Net losses from sale of assets
Non-financial assets
Infrastructure, plant and equipment 404 780
Land and buildings 113 (231)
517 549
Note 4H - Net losses from sale of assets
Non-financial assets
Land and buildings 1 260 60
1 260 60

Note 5 : Resources Received Free of Charge

Note 5 - Resources received free of charge
The following resources received free of charge from other departments have been recognised in the Statement of Revenues and Expenses:
Australian National Audit Office
Provision of audit services 200 185
Other 18
ComCover 392
592 203

Note 6 : Subsidies and Grants

Note 6 - Subsidies and Grants
Note 6 - Grants Expense - Administered            
Non-profit institutions         10 371   12 172
Commonwealth Authorities         256 786   174 133
State and Territory governments         2 134 403   913 410
Local governments         1 671   147
Overseas entities         1 410   1 317
              2 404 641   1 101 179
              1998-99   1997-98
              $'000   $'000

Note 7 : Extraordinary Items

Note 7 - Extraordinary Items
Note 7A - Restructuring
In respect of the assumed Territories program and sub-programs, the following assets and liabilities were recognised at the date of transfer :
Assets
Cash - 803
Receivables - 5 599
Other financial assets - 306
Land and buildings - 102 363
Infrastructure, plant and equipment - 111 447
Inventories - 2 835
Intangibles - 3
Other non-financial assets - 1 126
Total assets recognised - 224 482
Liabilities
Provisions and payables - Employees - (3 607)
Provisions and payables - Suppliers - (950)
Total liabilities recognised - (4 557)
Net assets/(liabilities) assumed - 219 925
In respect of the assumed Maritime program and sub-programs, the following assets and liabilities were recognised at the date of transfer :
Assets
Cash - -
Receivables - -
Other financial assets - -
Land and buildings - -
Infrastructure, plant and equipment 174 -
Inventories - -
Intangibles - -
Other non-financial assets - -
Total assets recognised 174 -
Liabilities
Provisions and payables - Employees (1 237) -
Provisions and payables - Suppliers (28) -
Total liabilities recognised (1 265) -
Net assets/(liabilities) assumed (1 092) -
1998-99 1997-98
$'000 $'000
In respect of the assumed AFFA programs and sub-programs, the following assets and liabilities were recognised at the date of transfer :
Assets
Cash - -
Receivables - -
Other financial assets - -
Land and buildings - -
Infrastructure, plant and equipment 2 -
Inventories - -
Intangibles - -
Other non-financial assets 25 -
Total assets recognised 27 -
Liabilities
Provisions and payables - Employees ( 418) -
Provisions and payables - Suppliers - -
Total liabilities recognised ( 418) -
Net assets/(liabilities) assumed ( 391) -
In respect of the relinquished Maritime program, the following assets and liabilities were transferred :
Assets
Cash - 0
Receivables - (3)
Infrastructure, plant and equipment - (426)
Other non-financial assets - (6)
Total assets relinquished - (435)
Liabilities
Provisions and payables - Employees - 1 375
Provisions and payables - Suppliers - 319
Total liabilities relinquished - 1 694
Net (assets)/liabilities relinquished - 1 259
In respect of relinquished BTCE program, the following assets and liabilities were transferred :
Assets
Cash - -
Receivables - -
Infrastructure, plant and equipment (28) -
Other non-financial assets - -
Total assets relinquished (28) -
Liabilities
Provisions and payables - Employees 301 -
Provisions and payables - Suppliers - -
Total liabilities relinquished 301 -
Net (assets)/liabilities relinquished 273 -
Net revenues from restructuring (1 210) 221 184
1998-99 1997-98
$'000 $'000
Territories and Local Government Transfer
Revenues
Recognised by the Department of the Environment, Sport and Territories - 15 427
Recognised by the Department Transport and Regional Services - 46 842
Total Revenues - 62 269
Expenses
Recognised by the Department of the Environment, Sport and Territories - 15 628
Recognised by the Department Transport and Regional Services - 57 492
Total Expenses - 73 120
Maritime Transfer
Revenues
Recognised by the Department of Employment, Workplace Relations
and Small Business 1 258 -
Recognised by the Department Transport and Regional Services 4 874 -
Total Revenues 6 132 -
Expenses
Recognised by the Department of Employment, Workplace Relations
and Small Business 437 -
Recognised by the Department Transport and Regional Services 7 188 -
Total Expenses 7 625 -
AFFA Transfer
Revenues
Recognised by the Department of AFFA - -
Recognised by the Department Transport and Regional Services - -
Total Revenues - -
Expenses
Recognised by the Department of AFFA - -
Recognised by the Department Transport and Regional Services 723 -
Total Expenses 723 -
1998-99 1997-98
$'000 $'000
Note 7B - Administered - Restructuring
In respect of the territories programs or sub-programs assumed, the following assets and liabilities
were recognised at the date of transfer :
Assets
Cash - 225
Receivables - 109 186
Other financial assets - 1 329
Land and buildings - 9 775
Intangibles - 3 148
Total assets recognised - 123 663
Liabilities
Payables - Grants - (912 520)
Payables - Other - (280)
Total liabilities recognised - (912 800)
Net liabilities assumed - (789 137)
In respect of the Maritime programs or sub-programs assumed, the following assets and liabilities
were recognised at the date of transfer :
Assets
Cash - 225
Receivables 1 789 109 186
Other financial assets - 1 329
Land and buildings - 9 775
Investments 66 635 -
Intangibles - 3 148
Total assets recognised 68 424 123 663
Liabilities
Payables - Grants (912 520)
Payables - Other (4 725) (280)
Total liabilities recognised (4 725) (912 800)
Net liabilities assumed 63 699 (789 137)
Extraordinary Revenues 63 699 (789 137)
1998-99 1997-98
$'000 $'000
In respect of programs or sub-programs relinquished, the following assets and liabilities were
transferred:
Assets
Cash - (46)
Receivables - (4)
Investments - (52 582)
Total assets relinquished - (52 632)
Liabilities
Payables - Subsidies - 73
Payables - Grants - 6 050
Payables - Suppliers - 106
Payables - Other - 2
Total liabilities relinquished - 6 231
Net (assets)/liabilities relinquished - (46 401)
Net revenues (expenses) from restructuring 63 699 (835 538)
Territories and Local Government Transfer
Revenues
Recognised by the Department of the Environment, Sport and Territories - 4 228
Recognised by the Department Transport and Regional Services - 8 878
Total Revenues - 13 106
Expenses
Recognised by the Department of the Environment, Sport and Territories - 1 216 089
Recognised by the Department Transport and Regional Services - 21 986
Total Expenses - 1 238 075
Maritime Transfer
Revenues
Recognised by the Department of Employment, Workplace Relations
and Small Business 14 197 -
Recognised by the Department Transport and Regional Services - -
Total Revenues 14 197 -
Expenses
Recognised by the Department of Employment, Workplace Relations
and Small Business 34 704 -
Recognised by the Department Transport and Regional Services - -
Total Expenses 34 704 -
AFFA Transfer
Revenues
Recognised by the Department of AFFA - -
Recognised by the Department Transport and Regional Services - -
Total Revenues 0 -
Expenses
Recognised by the Department of AFFA 527 -
Recognised by the Department Transport and Regional Services - -
Total Expenses 527 -
1998-99 1997-98
$'000 $'000

Note 8 : Changes in Accounting Policy

Note 8 - Changes in Accounting Policy
Note 8A - Transfers from Reserves - Administered
Transfer of reserves - Maritime - 126 229
Transfer from reserves (300 596) -
Equity repayments - -
(300 596) 126 229
Note 8B - Prior period adjustments - Administered
Write back of Loan from CPA for on-lending 297 106 -
Recognise prepayment for ALTD Grants 1 384 -
Recognition of prepayment of grants under the Local Government
(Financial Assistance) Act 1995 10 472 -
Initial recognition of Loan from CPA for on-lending - (108 305)
Write back of Regional Development liabilities - 20 399
308 962 (87 906)

Note 9 : Taxation Revenue

Note 8 - Changes in Accounting Policy
Note 8A - Transfers from Reserves - Administered
Transfer of reserves - Maritime - 126 229
Transfer from reserves (300 596) -
Equity repayments - -
(300 596) 126 229
Note 8B - Prior period adjustments - Administered
Write back of Loan from CPA for on-lending 297 106 -
Recognise prepayment for ALTD Grants 1 384 -
Recognition of prepayment of grants under the Local Government
(Financial Assistance) Act 1995 10 472 -
Initial recognition of Loan from CPA for on-lending - (108 305)
Write back of Regional Development liabilities - 20 399
308 962 (87 906)

Note 10 : Non Taxation Revenue

Note 10 - Non-taxation revenue

Note 10A - Interest and dividends - Administered

Interest from other governments

State and Territory loans

13 345

14 917

Interest from other sources

Commonwealth authorities

2 000

10 601

Other loans

19

207

2 019

10 808

Dividends

Commonwealth authorities

54 000

71 770

Other companies

-

-

54 000

71 770

69 364

97 495

Note 11 : Debt

Note 11 - Debt
Note 11A - Other Debt
Lease incentives 14 352
Note 11B - Loans payable to the Commonwealth - Administered
Amounts payable to the Official Commonwealth Public Account - 297 106
Maturity schedule for loans:
Payable : within one year - 7 652
in one to two years - 5 214
in two to five years - 17 618
in more than five years - 266 622
- 297 106

Note 12 : Provisions and Payables

Note 12 - Provisions and Payables
Note 12A - Employee liabilities
Salaries and wages 888 633
Leave 19 248 16 815
Superannuation 127 93
Separation and redundancy 78 229
Other 769 542
  21 110 18 312
Note 12B - Suppliers    
Trade creditors 2 643 2 655
Operating lease rentals 7 3
  2 650 2 658
  1998-99 1997-98
  $'000 $'000
Note 12 - Provisions and Payables (cont)    
Note 12C - Other    
Unearned income 93 154
Note 12D - Grants payable - Administered    
Non-profit institutions 25 246
Commonwealth Authorities 2 092 1 817
State and Territory governments 114 903 400
Local governments 557 865
  117 577 3 328
Note 12E - Other - Administered    
Goods and services 7 498 9 906
Unearned income 109 -
  7 607 9 906
  1998-99 1997-98
  $'000 $'000

Note 13 : Equity

Note 13 - Equity
Note 13A - Equity - Departmental
Item Capital Accumulated results Asset revaluation reserve Total reserves TOTAL EQUITY
$'000 $'000 $'000 $'000 $'000
Balance 1 July 1998 216 152 16 112 16 112 232 264
Capital 11 974 11 974
Operating Result (25 466) (25 466)
Net Revaluation
increases/(decreases) 1 259 1 259 1 259
Balance 30 June 1999 11 974 190 685 17 371 17 371 220 030
Note 13B - Equity - Administered
Item Capital Accumulated results Administered Investments Reserve Asset Revaluation Reserve Other Reserves Total reserves TOTAL EQUITY
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance 1 July 1998 379 990 2 432 180 2 (300 596) 2 131 586 2 511 576
Capital 8 388 8 388
Net change in
administered assets 232 845 - 0 232 845
Increase (Decrease)
In reserves ( 300 596) (1 186 543) 13 528 300 596 (872 419) (1173 015)
Prior Period
Adjustments 308 961 - - - 308 961
Balance 30 June 1999 8 388 621 200 1 245 637 13 530 0 1 259 167 1 888 755

Note 14 : Financial Assets

Note 14 - Financial Assets
Note 14A - Cash - Administered
Federal Office of Road Safety Reserve Money Fund 477 6
Christmas Island Reserve Money Fund 47 11
ALTD Reserve Money Fund 2 5
Federation Fund Reserved Money Fund 4 -
IRT Reserve Money Fund 22 2
Cash at bank and on hand 85 302
636 326
Note 14B - Receivables
Appropriations 11 974 8 474
Goods and services 2 279 2 591
Less: provision for doubtful debts (1030) (469)
13 222 10 596
Receivables (gross) which are overdue are aged as follows:
Overdue by:
- less than 30 days 213 595
- 30 to 60 days 92 206
- more than 60 days 991 800
1 296 1 601
1998-99 1997-98
$'000 $'000
Note 14C - Receivables
Other taxes, fees and fines 12 269 3 313
less : provision for doubtful debts ( 3 722) (8)
8 547 3 305
Loans to Commonwealth Authorities - 100 000
Loans to State and Territory Governments 189 550 197 107
less : provision for waiving of debts - -
189 550 197 107
Other loans 2 276 1 600
less : provision for doubtful debts (1 600) (1 600)
676 -
Goods and services 352 545
less : provision for doubtful debts (7) (69)
344 476
Appropriations 123 093 -
less: provision for doubtful debts - -
123 093 -
Proceeds from land sales 10 200 11 000
Other 7 899 2 772
less : provision for doubtful debts (2 738) (2 676)
15 361 11 096
Net Receivables 337 572 311 984
Maturity schedule for loans :
- within one year 5 301 7 652
- one to two years 6 123 5 214
- two to five years 18 571 17 618
- over five years 160 231 266 622
- Total 190 226 297 106
1998-99 1997-98
$'000 $'000
Fee receivables which are overdue are aged as follows :
Not overdue n/a n/a
Overdue by:
- less than 30 days 207 14
- 30 to 60 days 5 0
- more than 60 days 56 3
268 17
Note 14D - Investments - Administered
Shares in Commonwealth companies: C'th Interest
Australian River Company 100% 37 965 -
National Rail Corporation 73% 293 615 293 615
Commonwealth authorities:
Airservices Australia 100% 378 203 378 203
Albury Wodonga Development Corporation 99% 99 783 99 783
Australian Maritime Safety Authority 100% 59 617 -
Australian National Rail Commission 100% 340 531 340 531
Civil Aviation Safety Authority 100% 18 670 18 670
Federal Airports Corporation 100% 1 950 1 323 432
National Road Transport Commission 35% 200 200
Australian Maritime College 100% 58 518 -
Australian Rail Track Corporation 100% 0 -
Stevedoring Industry Finance Committee 100% 14 053 -
Maritime Industry Financing Company 100% 0 -
Other Companies:
Qantas 0 46
1 303 105 2 454 480
Government Securities
Interstate Road Transport Charges - 20
Federal Office of Road Safety -
Research and Public Education Program - 430
Christmas Island Community Benefit Fee - 90
Australian Land Transport Development - 1 020
Federation Fund 230 000
230 000 1 560
1 533 105 2 456 040
Details regarding the nil value of the Australian Rail Track Corporation (ARTC) are included in Note 3.
Note 14E - Accrued Revenue - Administered
Interest 1 825 2 147
Other 2 897 2 499
4 723 4 646
1998-99 1997-98
$'000s $'000s

Note 15 : Non-financial Assets

Note 15 - Non-financial assets
Note 15A - Land and Buildings
Land - at 30 June 1996 valuation 8 614 8 614
Land - at 30 June 1998 valuation 1 771 1 771
Total Land 10 385 10 385
Buildings on freehold land - at cost 10 078 9 612
Accumulated depreciation (639) (408)
9 439 9 203
Buildings on freehold land - at 30 June 1996 valuation 22 369 27 681
Accumulated depreciation (3 430) (3 224)
18 939 24 457
Buildings on freehold land - at 30 June 1998 valuation 60 613 56 453
Accumulated depreciation (1 687) -
58 927 56 453
Leasehold Improvements - at cost 16 902 16 601
Accumulated depreciation (16 162) (14 925)
740 1 676
Total Buildings 88 045 91 789
Total Land and Buildings 98 430 102 174
1998-99 1997-98
$'000s $'000s
Note 15B - Land and Buildings - Administered
Land - at cost - 1 360
Land - at 30 June 1995 valuation - 32 700
Land - at 30 June 1997 valuation - 1 260
Land - at 30 June 1998 valuation 29 29
Land - at 30 June 1999 valuation 42 500 -
Total Land 42 529 35 349
Buildings on freehold land - at cost 200 200
200 200
Buildings on freehold land - at 30 June 1996 valuation 11 590 11 590
Accumulated depreciation (1 900) (1 900)
9 690 9 690
Buildings on freehold land - at 30 June 1998 valuation 40 40
40 40
Total Buildings
9 930 9 930
Total Land and Buildings 52 459 45 279
The revaluations were as at 30 June 1999 in accordance with the progressive revaluation policy stated at Note 2, and were completed by an independent valuer, Michael Dyson (AVLE), of the Australian Valuation Office. A revaluation increment of $8,925,000 for land and buildings was transferred to the asset revaluation reserve.
1998-99 1997-98
$'000s $'000s
Note 15C - Infrastructure, plant and equipment
Infrastructure, plant and equipment - at cost 27 022 29 936
Accumulated depreciation (2 841) (11 270)
24 181 18 666
Infrastructure, plant and equipment - at 30 June 1996 valuation 52 797 56 393
Accumulated depreciation (29 005) (27 566)
23 792 28 827
Infrastructure, plant and equipment - at 30 June 1998 valuation 151 074 146 304
Accumulated depreciation (84 055) (65 160)
67 019 81 144
Infrastructure, plant and equipment - at 30 June 1999 valuation 4 947 -
Accumulated depreciation - -
4 947 -
Total infrastructure, plant and equipment 119 939 128 637
The revaluations were as at 30 June 1999 in accordance with the progressive revaluation policy stated at Note 2, and were completed by independent valuers, Simon O'Leary (AVLE) of the Australian Valuation Office. A revaluation increment of $1,352,837 for infrastructure plant and equipment was transferred to the asset revaluation reserve.
Note 15D - Infrastructure, plant and equipment - Administered
Infrastructure, plant and equipment - at cost 11 11
Accumulated depreciation (3) (3)
Total infrastructure, plant and equipment 8 8
1998-99 1997-98
$'000s $'000s
Note 15E - Intangibles
Intangibles - computer software - at cost 2 700 2 662
Accumulated depreciation ( 18) (2 193)
2 682 469
Intangibles - computer software - at 30 June 1999 valuation 434 -
Accumulated depreciation - -
434 -
Total Intangibles 3 116 469
Note 15F - Intangibles - Administered
Intangibles - Phosphate mine licence - at 30 June 1994 valuation - 6 209
Accumulated depreciation - (3 061)
- 3 148
Intangibles - Phosphate mine licence - at 30 June 1999 valuation 7 750 -
Accumulated depreciation ( 369) -
7 381 -
Total Intangibles 7 381 3 148
The Phosphate mine licence was valued by the Australian Valuation Office at discounted cash flows as at 30 June 1999. The valuation was conducted by John Peresse (FAPI) of the AVO. An increment of $4,602,437 was made to the Asset revaluation reserve.
1998-99 1997-98
$'000 $'000

 

Note 15G - Analysis of Property, Infrastructure, Plant, Equipment and Intangibles
TABLE A - Movement Summary 1998-99 for all assets irrespective of valuation basis
Item Land Buildings Total Infrastructure, Intangibles TOTAL
land and plant and
buildings equipment
$'000 $'000 $'000 $'000 $'000 $'000
Gross value as at 1 July 1998 10385 110 346 120 731 232 632 2 662 356 025
Additions 526 526 13 701 2 739 16 966
Revaluations 0 (5 553) ( 1 188) (6 741)
Disposals ( 500) ( 500) (3 533) (4 033)
Write Down ( 408) ( 408) (1 402) (1 811)
Gross value as at 30 June 1999 10 385 109 963 120 349 235 845 4 213 360 407
Accumulated depreciation/ amortisation as at 1 July 1998
n/a 18 557 18 557 103 995 2 193 124 745
Depreciation/amortisation charge for 0
assets held 1 July 1998 n/a 3 435 3 435 21 908 213 25 556
Depreciation/amortisation charge for 0
additions n/a 1 1 409 410
Adjustment for revaluations n/a 0 (6 691) ( 1 309) (8 000)
Adjustment for disposals n/a (2) (2) (2 944) (2 946)
Write Down n/a (73) (73) (771) (843)
Accumulated depreciation/
amortisation as at 30 June 1999 - 21 918 21 918 115 907 1 097 138 922
Net book value as at 30 June 1999 10 385 88 045 98 430 119 939 3 116 221 484
Net book value as at 1 July 1998 10 385 91 789 102 174 128 638 469 231 280
TABLE B - Summary of balances of assets at valuation as at 30 June 1999
Item Land Buildings Total Infrastructure, Intangibles TOTAL
land and plant and
buildings equipment
$'000 $'000 $'000 $'000 $'000 $'000
As at 30 June 1999
Gross value 10 385 82 982 93 367 208 818 434 302 619
Accumulated depreciation /
amortisation
(5117) (5 117) (113 060) (118 177)
Net book value 10 385 77 865 88 250 95 758 434 184 442
As at 30 June 1998
Gross value 10 385 84 134 94 519 202 697 - 297 216
Accumulated depreciation / ( 3 224) ( 3 224) ( 92 726) - (95 950)
amortisation
Net book value 10 385 80 910 91 295 109 971 - 201 266
Note 15 - Non-financial assets (cont)
Note 15H - Analysis of Property, Infrastructure, Plant, Equipment and Intangibles - Administered
TABLE A - Movement Summary 1998-99 for all assets irrespective of valuation basis
Item Land Buildings Total Infrastructure, Intangibles TOTAL
land and plant and
buildings equipment
$'000 $'000 $'000 $'000 $'000 $'000
Gross value as at
1 July 1998 35 349 11 831 47 179 11 6 208 53 399
Additions 875 875 875
Revaluations 8 925 8 925 1 542 10 467
Disposals (1260) (1 260) (1 260)
Write Downs (1360) (1 360) (1 360)
Other movements
Gross value as at 30 June 1998 42 529 11 831 54 359 11 7 750 62 120
Accumulated depreciation/
amortisation as at
1 July 1998 n/a 1 900 1 900 3 3 061 4 964
Depreciation/amortisation charge for
assets held 1 July 1998 n/a - - 369 369
Depreciation/amortisation charge for
additions n/a - - 0
Adjustment for revaluations n/a - - - ( 3 061) ( 3 061)
Adjustment for disposals n/a - - - 0
Adjustment for other movements n/a - - - 0
Accumulated depreciation/
amortisation as at 30 June 1999 n/a 1 900 1 900 3 369 2 272
Net book value as at 30 June 1999 42 529 9 931 52 459 8 7 382 59 848
Net book value as at 1 July 1998 35 349 9 931 45 279 8 3 148 48 435
TABLE B - Summary of balances of assets at valuation as at 30 June 1999
Item Land Buildings Total Infrastructure, Intangibles TOTAL
land and plant and
buildings equipment
$'000 $'000 $'000 $'000 $'000 $'000
As at 30 June 1999
Gross value 42 529 11 630 54 159 - 7 750 61 909
Accumulated depreciation /
amortisation
(1900) (1 900) - ( 369) (2269)
Net book value 42 529 9 730 52 259 - 7 381 59 640
As at 30 June 1998
Gross value 33 989 11 630 45 619 - 6 209 51 828
Accumulated depreciation / ( 1 900) (1 900) - ( 3 061) ( 4 961)
amortisation
Net book value 33 989 9 730 43 719 - 3 148 46 867
Note 15I - Inventories
Finished goods
Inventories held for sale 278 66
Stores
Inventories not held for sale 2 335 3 130
2 613 3 196
Note 15J - Inventories - Administered
Inventories not held for sale 376 -
Note 15K - Other
Prepayments 5 807 8 255
Note 15L - Other - Administered
Prepayments 79 709 675
1998-99 1997-98
$'000 $'000

Note 16 : Cash Flow Reconciliation

Note 16 - Cash Flow Reconciliation
Note 16A - Cash Flow Reconciliation
Reconciliation of net cost of services to net cash provided by operating activities:
Net Cost of Services (161 781) (127 656)
Revenues from Government 136 933 120 617
Resources received free of charge 592 203
Extraordinary Item (1 210) -
Operating result (25 466) (6 836)
Depreciation/Amortisation 25 746 17 191
(Profit)/Loss on sale of non-current assets 517 549
Assets write down 1 540 490
Asset Adjustments - 226
Restructuring adjustment ( 148) -
Decrease (increase) in receivables 9 347 1 914
Decrease (increase) in inventories 583 (6)
Decrease (increase) in other assets 2 448 (4 815)
(Decrease) increase in other debt (338) (338)
(Decrease) increase in payables ( 7) 1 347
(Decrease) increase in employee provisions 2 798 46
(Decrease) increase in other payables ( 61) 66
Net cash provided by operating activities 16 958 9 835
1998-99 1997-98
$'000 $'000
Note 16B - Cashflow Reconciliation - Administered
Reconciliation of net change in administered assets to net cash
provided by operating activities:
Net contribution (cost) to Government (2 285 316) (995 756)
Special Appropriations Accrued 114 705 -
Cash from Official Commonwealth Public Account 2 471 459 2 120 692
Cash from other Departments 230 450 -
Cash to Official Commonwealth Public Account ( 362 152) (203 033)
169 146 921 903
Extraordinary items - Restructuring 63 699 (904 184)
Net change in administered assets 232 845 17 719
Write back multi year grant liability - 20 399
Initial recognition of loan to CPA - (108 305)
Initial recognition of heritage asset - (50)
Prior period adjustments 308 962 -
Depreciation 369 69
Net write down of assets 3 149 727
Asset adjustments - (907)
(Profit)/Loss on sale of property, plant and equipment 1 260 60
Restructuring Adjustments ( 66 170) -
Appropriation receivable (capital) 8 388 -
Cash from other Departments ( 230 450) -
Non Operating receivables ( 107 469) -
Changes in assets/liabilities: - -
Increase/(Decrease) in Debt ( 297 106) -
Increase/(Decrease) in payables and provisions 113 790 22 624
(Increase)/Decrease in non financial assets ( 80 085) (1 650)
(Increase)/Decrease in financial assets ( 25 665) 47 836
Net cash provided by operating activities ( 138 182) (1 476)

Note 17 : Remote Contingencies

Note 17 - Remote Contingencies

17A - Departmental

There are no Departmental remote contingencies.

17B - Administered

Tripartite Deed relating to the Core Regulated Airports

Tripartite Deeds apply to the 12 Core Regulated Airports (Sydney, Melbourne, Brisbane, Perth, Canberra, Coolangatta, Townsville, Adelaide, Hobart, Launceston, Darwin and Alice Springs). The Tripartite Deeds between the Commonwealth of Australia, airport lessees and lessee's financiers provide for the Commonwealth to 'step-in' as airport operator in defined circumstances. The potential liability of the Commonwealth would vary considerably with the specific factors leading to such an action. If the Commonwealth entered into possession of an airport site it could seek to recover its costs from a number of sources, including airport revenues.

Guarantees

The following borrowings have been guaranteed by the Commonwealth in respect of authorities within the Department of Transport and Regional Services portfolio, and State and Territory Governments.

Borrower

Legislation

Principal

Balance

Balance

Authorising

Covered by

Outstanding

Outstanding

Guarantee

Guarantee

1998-99

1997-98

$

$

$

Australian National

Australian National

Railways Commission

Railways Commission

Act 1983

72,592,970

75,799,627

320,300,000

Northern Territory

Northern Territory

(Self-Government)

Government

Act 1978 s47A

165,694,900

155,134,400

162,146,100

Maritime Industry Reform

On 18 August 1998 the Commonwealth provided a guarantee to the Maritime Industry Finance Company (MIFCo) to finance redundancy related payments in stevedoring and maritime industries subject to certain conditions.

Indemnities

Civil Aviation Safety Authority (CASA) - indemnity to officers of the Authority administering the Carrier's liability insurance requirements

An indemnity has been given to those officers of CASA who administer the carrier's liability insurance requirements under Part IV A of the Civil Aviation (Carrier's Liability) Act 1959 and complementary state legislation. This indemnity was revoked with effect from 29 August 1998 as CASA has obtained commercial insurance covering the risks specified in the indemnity. The indemnity will still apply in relation to liabilities associated with acts or omissions that occurred before the date of revocation.

Maritime Industry Finance Company Limited (MIFCo) - board members' indemnity

Indemnities for MIFCo board members have been provided to protect against civil claims relating to employment and conduct as directors of MIFCo. These indemnities are unquantifiable and no expiry date has been set.

ANL Limited - board members' indemnity

An indemnity for ANL board members was provided to protect against civil claims relating to employment and conduct as a director of ANL Limited and subsidiary / associated companies. This indemnity is unquantifiable and no expiry date has been set.

Australian River Company (ARCO) - board members' indemnity

An indemnity for ARCO board members was provided to protect against civil claims relating to employment and conduct as a director of ARCO. This indemnity is unquantifiable and no expiry date has been set.

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.

Note 18 : Assets not recognised

Note 18 - Assets not recognised
Control of a number of Federal airports has passed to non Commonwealth bodies under long term leasing arrangements. Under the terms of the leases, the Commonwealth has a right to the return of the airports in 50-99 years' time. The right to the return of the airports has not been recognised as an asset in these financial statements as it cannot be reliably measured.
1998-99 1997-98

Note 19 : Receipts of the Consolidated Revenue Fund

Note 19 - Receipts of the Consolidated Revenue Fund

1998-99

1998-99

1998-99

1998-99

1997-98

Budget

Changes in

Total

Actual

Actual

Administrative

Arrangements

$

$

$

$

$

Aircraft noise levy

43 874 000

-

43 874 000

37 683 936

39 393 390

Administration of Part X of the Trade Practices Act 1974 (1)

-

15 870

15 870

15 870

2 730

Airport leases - payment in lieu of land tax

-

-

-

3 880 532

-

Airservices Australia

Repayments

-

-

-

-

10 000 000

Dividend

-

-

-

-

5 950 000

Albury-Wodonga Development Corporation

Abolition and disposal of assets

14 571 000

-

14 571 000

11 000 000

14 500 000

Australian Maritime Safety Authority (AMSA) (1)

Capital repayment

-

5 000 000

5 000 000

5 000 000

-

Repayments

-

-

-

-

3 733 000

Australian Rail Track Corporation (ARTC)

Capital repayment

-

-

-

20 000 000

-

Charges for air transport regulatory services

1 000

-

1 000

25

75

Civil Aviation Safety Authority (CASA)

Safety indemnity premium

292 000

-

292 000

0

282 000

Cost recovery for Airport Building Controllers and

4 016 000

-

4 016 000

1 910 541

2 377 900

Airport Environmental Officers at leased airports

Decentralisation development loans

Interest

48 000

-

48 000

0

133 697

Repayments

7 000

-

7 000

0

625 360

Emerald Hill - Purchase of land

Interest

92 000

-

92 000

91 668

109 128

Repayments

205 000

-

205 000

205 418

205 418

Federal Airports Corporation (FAC)

Dividend

41 550 000

-

41 550 000

54 000 000

65 820 000

Interest

10 672 000

-

10 672 000

0

10 601 000

Capital repayment

-

-

0

26 467 154

-

Repayments

-

-

-

100 000 000

-

Growth centres - Municipal Works

Interest

176 000

-

176 000

175 618

193 125

Repayments

188 000

-

188 000

188 227

171 145

International Oil Pollution Compensation Fund Levy (1)

-

3 528 099

3 528 099

3 528 099

-

Interstate Road Transport Act 1985 - Fines

250 000

-

250 000

59 848

116 694

Interstate Road Transport Act 1985 - Registration charges

15 000 000

-

15 000 000

19 034 020

17 579 841

Marine navigation levy (1)

-

30 075 332

30 075 332

30 075 332

14 153 755

Reimbursement to airport lessee companies of costs associated

600 000

600 000

1 124 437

289 963

with the collection of parking fines

National Railway Network Agreement

Interest

205 000

-

205 000

205 069

1 256 367

Repayments

2 637 000

-

2 637 000

2 637 222

6 997 760

Navigation Act 1912 (1)

-

2 642 276

2 642 276

2 642 276

69 122

Protection of the sea levy (1)

-

0

0

0

1 021 207

Proposed Stevedoring Levy Collections Act 1998

-

8 712 346

8 712 346

8 712 346

-

Norfolk Island government - Cascade Cliff safety project -

Repayment

100 000

-

100 000

0

-

Northern Territory

Interest

5 218 000

-

5 218 000

5 217 854

5 314 866

Repayments

2 175 000

-

2 175 000

2 174 784

2 084 571

Railway Agreement (Western Australia)

Interest

420 000

-

420 000

420 381

441 552

Repayments

374 000

-

374 000

373 605

374 282

Railway Standardisation (New South Wales and Victoria) Agreement

Interest

127 000

-

127 000

131 428

141 224

Repayments

192 000

-

192 000

191 674

191 674

Sale of forms for motor vehicle compliance plates

6 455 000

-

6 455 000

7 865 249

7 098 248

Sewerage Agreements pursuant to Urban and Regional

Development (Financial Assistance) Act 1974

Interest

7 429 000

-

7 429 000

7 429 187

8 923 808

Repayments

1 785 000

-

1 785 000

1 785 155

21 604 240

South Australia - Contribution to the standardisation of the

Pinnaroo line

1 833 000

-

1 833 000

0

-

Miscellaneous (1)

11 495 000

-

11 495 000

7 924 975

7 263 230

Section 31 of the Financial Management and Accountability Act

1 229 000

-

1 229 000

995 482

879 994

1997 - to be credited to Running Costs - Division 650

Territories

Section 31 of the Financial Management and Accountability Act

10 833 000

-

10 833 000

6 992 875

7 213 569

1997 - to be credited to Territories Program - Subdivision 654-02

184 049 000

49 973 924

234 022 924

370 140 289

257 113 937

(1) As a result of the Administrative Arrangements Order of 21 October 1998, the Maritime function within the Workplace Relations and Small Business Portfolio transferred to this department. The 1998-99 Budget figures can be found in Budget Paper No. 4, 'The Commonwealth Public Account 1998-99', on page 43. The 1998-99 actual includes receipts for the Maritime function from 21 October 1998. Payments prior to 21 October 1998 and for 1997-98 (post 9 October 1997) are reported in Workplace Relations and Small Business's financial statements.

Note 20 : Expenditure from Special Appropriations

Note 20 - Expenditure from Special Appropriations

1998-99

1998-99

1998-99

1998-99

1997-98

Budget

Changes in

Total

Actual

Actual

Estimates

Administrative

Appropriation

Expenditure

Expenditure

Arrangements

$

$

$

$

$

Consolidated Revenue Fund
Australian Land Transport Development Act 1988 836 165 000 - 836 165 000 912 881 482 853 969 000
Interstate Road Transport Act 1985 15 000 000 - 15 000 000 18 934 000 17 750 400
Aviation Fuel Revenues (Special Appropriation) Act 1988 50 639 000 - 50 639 000 40 943 997 59 694 713
Australian Maritime Safety Authority Act 1990 (1) - 34 574 258 34 574 258 33 528 439 13 517 818
Protection of the Sea (Oil Pollution Compensation Fund) - 3 528 098 3 528 098 3 528 099 -
Act 1993 (1)
Stevedoring Levy (Collection) Act 1998 (1) - 9 950 000 9 950 000 9 950 000 -
States Grants (Petroleum Products) Act 1965 3 500 000 - 3 500 000 0 3 683 764
Petroleum Products Freight Subsidy Scheme
Local Government (Financial Assistance) Act 1995 1 228 762 000 - 1 228 762 000 1 227 784 795 908 170 110
Total expenditure from special appropriations 2 134 066 000 48 052 356 2 182 118 356 2 247 550 812 1 856 785 805
(1) As a result of the Administrative Arrangements Order of 21 October 1998, the Maritime function within the Workplace Relations and Small Business Portfolio transferred to this department. The 1998-99 Budget figures can be found in Budget Paper No. 4, 'The Commonwealth Public Account 1998-99', on page 57. The 1998-99 actual includes payments for the Maritime function from 21 October 1998. Payments prior to 21 October 1998 and for 1997-98 (post 9 October 1997) are reported in Workplace Relations and Small Business's financial statements.

Note 21 : Expenditure from Annual Appropriations

Note 21 contains a large table and is therefore presented in PDF format [PDFPDF: 64 KB]

Note 22 : Receipts and Expenditure of the Reserved Money Fund

Note 22 contains a large table and is therefore presented in PDF format [PDFPDF: 64 KB]

Note 23 : Executive Remuneration

Note 23 - Executive Remuneration
The number of executive positions which received or were due        
to receive total fixed remuneration of $100,000 or more:        
              Number   Number
  $100,000 to 110,000         -   3
  $110,001 to 120,000         3   5
  $120,001 to 130,000         8   7
  $130,001 to 140,000         7   4
  $140,001 to 150,000         6   3
  $150,001 to 160,000         1   -
  $160,001 to 170,000         5   1
  $170,001 to 180,000         1   1
  $230,001 to 240,000         1   1
  $240,001 to 250,000         -   1
  $320,001 to 330,000         1   1
The aggregate amount of fixed remuneration of executive        
positions shown above.         $5 149 464   $4 040 329
The aggregate amount of performance pay paid during the        
year to executive positions shown above.       n/a   $97 541
The aggregate amount of separation and redundancy payments $289 389   $581 810
made during the year to executive positions shown above.        

Note 24 : Services provided by the Auditor-General

Note 24 - Services provided by the Auditor-General
Financial statement audit services are provided free of charge to the Department.    
The fair value of audit services provided was $200,000 (1997-98: $185,000).    
No other services were provided by the Auditor-General.        
              1998-99   1997-98
              $   $

Note 25 : Acts of Grace Payments and Waivers

Note 25 - Act of Grace Payments and Waivers
A waiver of amounts owing to the Commonwealth was made pursuant to subsection 34(1) of the Financial Management and Accountability Act in relation to principal and interest on loans under the Urban and Regional Development Act 1974
      -   11 817 855

Note 26 : Average Staffing Level

Note 26 - Average Staffing Levels
              1998-99   1997-98
              Number   Number
Average staffing levels by program and in total were as follows:      
Program 1: Aviation         222   216
Program 2: Land Transport         161   156
Program 3: Maritime         29   -
Program 4: Corporate         257   270
Program 5: Regional Services, Territories and Local Government 126   87
              795   729

Note 27 : Financial Instruments

Note 27 - Financial Instruments

  1. Terms, conditions and accounting policies
Financial Instrument Notes Accounting Policies and Methods

(including recognition criteria and measurement basis)

Nature of underlying instrument

(including significant terms and conditions affecting the amount, timing and certainty of cash flows)

Financial Assets Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.
Cash - deposits at call Deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues. Cash balances represent balances in operating cash accounts at call. Not all operating cash accounts held by the Department attract interest. The average interest for interest bearing accounts for the year was not readily ascertainable.
Receivables for goods and services 14B,

14C

These receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less rather than more likely. All receivables are with entities external to the Commonwealth. Credit terms are net 30 days (1997-98: 30 days).
Loans 14C,

8B

Loans are recognised at the amounts lent. Collectability of amounts outstanding is reviewed at balance date. Provision is made for bad and doubtful loans where collection of the loan or part thereof is judged to be less rather than more likely. In rare circumstances, loan repayment may be waived. Interest is credited to revenue as it accrues. Loans were made under contract for periods up to 118 years. Security was not generally required. Principal and interest payments are due either half-yearly or annually. Interest rates are fixed over the period of the loan.
Fees receivable 14C Fees accrue and are recognised at the time services are performed. As for receivables for goods and services.
Investments 14D In accordance with advice from the Department of Finance and Administration, the carrying amount of each investment and the associated investment reserve is to be fixed as at 30 June 1997, unless the Minister for Finance and Administration requests otherwise. The Commonwealth's investment in other controlled authorities and companies in this portfolio is valued at the aggregate of the Commonwealth's share of the net assets or net liabilities of each entity.
Accrued revenue 14E Interest is credited to revenue as it accrues. Interest is payable either half-yearly or annually. Dividends from portfolio bodies are recognised when a determination is made by the Minister. The basis for the payment of dividends is a memorandum of understanding between Ministers.

Note 27 - Financial Instruments (cont.)

Financial Instrument Notes Accounting Policies and Methods

(including recognition criteria and measurement basis)

Nature of underlying instrument

(including significant terms and conditions affecting the amount, timing and certainty of cash flows)

Financial liabilities Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.
Lease incentives 11A The lease incentive is recognised as a liability on receipt of the incentive. The amount of the liability is reduced on a straight-line over the life of the lease by allocating lease payments between rental expense and reduction of the liability for financial leases and against the rental expense for operating leases. The Department has received fitout incentives on entering a property operating lease in January 1994. Lease payments are made monthly.
Trade creditors 12B,

12E

Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Trade liabilities are normally settled on 30 day terms.
Grant liabilities 12D Multi-year grants to State and Territory governments are expensed when the recipient government provides the agreed services.

Other grants are recognised as liabilities and expensed in the year in which the grant agreements are made. Amounts reported as liabilities at balance date relate mainly to reimbursements due from the Department for agreed expenditure undertaken in the reporting period.

The Commonwealth makes various funding agreements with State and Territory Governments, including under the Australian Land Transport Development Act 1988 and the Local Government (Financial Assistance) Act 1995, in order to meet its public policy objectives. Funds are provided annually in accordance with the agreements. As these grants are not contractual in nature, no further disclosure is required.

The Department administers other grants, which, in the majority of cases, cover only the financial year in which the agreement is made.

Note 27 - Financial Instruments (cont.)

Financial Instrument Notes Accounting Policies and Methods

(including recognition criteria and measurement basis)

Nature of underlying instrument

(including significant terms and conditions affecting the amount, timing and certainty of cash flows)

Unrecognised financial liabilities
Guarantees to Authorities 17B The amounts guaranteed by the Commonwealth have been disclosed in the Remote Contingencies note. At the time of completion of the financial statements, there was no reason to believe that the guarantees would be called upon, and recognition of a liability was therefore not required. The guarantees are disclosed at values relating to (principal) amounts originally borrowed by respective entities and still outstanding at year end, converted to Australian dollars. Additionally, one of the guarantees includes in its balance interest payments due under the underlying borrowing arrangements. The guarantees have been given principally in relation borrowings of a Commonwealth authority.
Other Guarantees 17B As for guarantees to Authorities. The guarantees have been given principally in relation borrowings of a State / Territory government.
Indemnities 17B The maximum amount payable under the indemnities given is disclosed in the Remote Contingencies note. At the time of completion of the financial statements, there was no reason to believe that the guarantee would be called upon, and recognition of the liability was therefore not required. Details in respect of the indemnities are stated in Budget Paper No. 4. Indemnities are given to community support groups in relation to approved public activities up to a specified maximum amount for each activity.

Note 27 - Financial Instruments (cont.)

(b) Interest Rate Risk: Agency/Administered

This section contains a large table and is therefore presented in PDF Format [PDFPDF: 37 KB].

Note 27 - Financial Instruments (cont.)

(c) Net Fair Values of Financial Assets and Liabilities

Financial assets

The net fair values of cash, receivables, investments and accrued revenues approximate their carrying amounts.

Loans to Commonwealth Authorities, State and Territory Governments and other loans, reflected in the Administered receivables balance, are carried at cost, which is above their net fair value, because it is intended to hold them to maturity.

Financial liabilities

The net fair values for lease incentives, subsidy and grant liabilities, as well as those of trade creditors and unearned income, which are short-term in nature, are approximated by their carrying amounts.

(d) Credit Risk Exposure

The Department's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets are the carrying amount of those assets as indicated in the Statement of Assets and Liabilities.

The Department has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.