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Notes

Note 1 : Agency Objectives

The Department of Transport and Regional Services (DOTARS) provides policy advice, grants administration, and other outputs to support the Government in pursuing its desired outcome for the community to Link Australia through Transport and Regional Services.

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Note 2 : Summary of Significant Accounting Policies

Note 2A - 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:

  • Requirements for the Preparation of Financial Statements of Commonwealth Agencies and Authorities made by the Minister for Finance and Administration in August 1999 (Schedule 2 to the Financial Management and Accountability (FMA) Orders);
  • Australian Accounting Standards;
  • Other authoritative pronouncements of the Australian Accounting Standards Boards; and
  • The Consensus Views of the Urgent Issues Group.

The statements have been prepared having regard to:

  • Statements of Accounting Concepts; and
  • The Explanatory Notes to Schedule 2 issued by the Department of Finance and Administration.

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 or the financial position.

The continued existence of DOTARS in its present form, and with its present outputs and programs, is dependent on the Governments policy and on continuing appropriations by Parliament for the Departments operations and programs.

Note 2B - Changes in Accounting Policy

Amounts appropriated, but not received, from the Federation Fund, were reported as an Administered Investment at 30 June 1999 ($230,004,000). Amounts still outstanding as at 30 June 2000 have been reclassified as an Administered Receivable (appropriation).

There have been no other material changes in accounting policy during the period.

Note 2C - Agency and Administered Items

Agency assets, liabilities, revenues and expenses are those items that are controlled by the Department. They are used by DOTARS in producing its outputs and include:

  • computers, plant and equipment used in providing goods and services;
  • liabilities for employee entitlements;
  • revenues from appropriations or independent sources in payment for outputs; and
  • employee, supplier and depreciation expenses incurred in producing agency outputs.

Administered items are those items incurred in providing programs that are controlled by the Government, but managed, or oversighted, by DOTARS on behalf of the Government. These items include grant payments and levies, fees and fines.

The purpose of the separation of agency and administered items is to enable assessment of the administrative efficiency of DOTARS in providing goods and services.

The basis of accounting described in Note 2A applies to both agency and administered items.

Administered items are distinguished from agency items by shading in the financial statements.

Note 2 - Summary of Significant Accounting Policies (cont)

Note 2D - Reporting by Outcomes

A comparison of Budget and Actual figures by government-desired outcome for the community specified in the Appropriation Acts relevant to DOTARS is presented in Note 19. The net cost to the Budget outcomes shown includes intra-government costs that are eliminated in calculating the actual budget outcome for the Government overall.

Note 2E - Revenues from Government

Revenues from Government are revenues relating to the core operating activities of DOTARS. Policies for accounting for revenue from the Government follow; amounts and other details are given in Note 4A.

Agency Appropriations

From 1 July 1999, the Commonwealth Budget has been prepared under an accruals framework.

Appropriations to DOTARS for its outputs are recognised as revenue to the extent they have been received into its bank account or are entitled to be received by the Department at year end.

Appropriations to DOTARS for capital items are recognised directly in equity, to the extent that the appropriation has been received into the Departments bank account or is entitled to be received by the Department at year end.

The appropriations for capital items for 1999-2000 include the re-appropriation to DOTARS of certain unspent amounts from 1998-99. These amounts were recognised directly in equity in the financial statements for 1998-99.

This is a change in the policy adopted in prior years when agency appropriations, other than for running costs, were recognised as revenue to the extent that the appropriations were spent. Amounts appropriated for agency running costs were recognised as revenue in the year of appropriation, except to the extent of:

  • unspent amounts not automatically carried over into the new financial year; and
  • running costs borrowings.

Administered Appropriations

Appropriations for administered expenses are recognised as revenues to the extent that expenses have been incurred up to the limit, if any, of each appropriation. Appropriations for capital are recognised as the amount appropriated by Parliament.

Resources Received Free of Charge

Services received free of charge are recognised in the Operating Statements 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.

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 government agency 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 agency immediately prior to the transfer.

Note 2 - Summary of Significant Accounting Policies (cont)

In prior years, net assets received under a restructuring of administrative arrangements were recognised as revenue. From 1 July 1999, such asset transfers are designated as transactions of owners and adjusted directly against equity.

Note 2F - Other Revenue

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

Agency revenue from the rendering of a service is recognised to the stage of completion of contracts or other agreements to provide services.

The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

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 core operating activities of the Agency, whether in its own right or on behalf of the Commonwealth. Details of revenue amounts are given in Note 4C.

Note 2G - Assets Sales Program

Schedule 2 to the Finance Ministers Orders effectively provides for sales of Commonwealth interests in controlled entities conducted by the Office of Asset Sales and Information Technology Outsourcing (OASITO) to be fully reported by the OASITO. At the time of sale, the Department of Transport and Regional Services writes back the carrying amount of the investment against the investments share of the Administered Investments Reserve.

DOTARS had no major asset sales through OASITO to report for 1999-2000. (During 1998-99, Australian National Railways Commissions interstate passenger, SA Rail and Tasrail businesses were sold. The sale did not include interstate track and associated assets.)

Note 2H - Grants (Administered)

The Department of Transport and Regional Services administers a number of grant programs on behalf of the Commonwealth.

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. A commitment is recorded when the Commonwealth has a binding agreement to make the 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.

Note 2I - 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 DOTARS is estimated to be less than the annual entitlement for sick leave.

Note 2 - Summary of Significant Accounting Policies (cont)

The liability for annual leave reflects the value of total annual leave entitlements of all employees at 30 June 2000 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 2000. In determining the present value of the liability, DOTARS 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 DOTARS has formally identified positions as excess to requirements and a reliable estimate of the amount of the payments can be determined.

Superannuation

Staff of DOTARS contribute to the Commonwealth Superannuation Scheme or the Public Sector Superannuation Scheme, as well as non-government superannuation funds in certain cases. Employer contributions amounting to $6,047,736 (1998-99: $5,551,933) in relation to these schemes have been expensed in these financial statements.

No liability is shown for superannuation in the Balance Sheet as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.

Employer Superannuation Productivity Benefit contributions totalled $1,163,486 (1998-99: $1,175,987).

Note 2J - Leases

DOTARS entered into a sale and leaseback operating lease in 1999-2000 for IT equipment. Operating lease payments are charged to the Agency Operating Statement on a basis which is representative of the pattern of benefits derived from the leased assets. The lessor effectively retains substantially all such risks and benefits.

The carrying amounts of relevant assets were written down to fair value at that date and the consequent loss on sale of $3.4m is being amortised over three years.

The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

Lease incentives taking the form of free leasehold improvements and rent 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.

Note 2K - Cash

Cash includes notes and coins held, deposits held at call with a bank or financial institution, and term deposits with a bank or financial institutions.

Note 2 - Summary of Significant Accounting Policies (cont)

Note 2L - Financial Instruments

Accounting policies for financial instruments are summarised at Note 24.

Note 2M - Acquisition of Assets

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, unless acquired as a consequence of restructuring administrative arrangements. In the latter case, assets are initially recognised at the amounts at which they were recognised in the transferor agencys accounts immediately prior to the restructuring.

Note 2N - Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $2,000. These are expensed in the year of acquisition.

Items of plant and equipment acquired as part of a leasehold fitout are capitalised in the year of acquisition regardless of historical cost. 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.

Revaluations

Schedule 2 to the Finance Ministers Orders requires that buildings, plant and equipment be progressively revalued in accordance with the deprival method of valuation in successive 3 year cycles. Land is to be valued annually on the basis of its highest and best use, unless disposal is restricted by legislation, zoning or Government policy. In the latter cases, the deprival basis should be used and the valuations at highest and best use shown in a note.

DOTARS is implementing the requirements of Schedule 2 as follows:

  • freehold land has been revalued;
  • buildings on freehold land are revalued progressively on a geographical basis; and
  • infrastructure, plant and equipment has been revalued.

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.

DOTARS recognises all land at its current market buying price because disposal is restricted by legislation, zoning or Government policy. Highest and best use (current market selling price) valuations, where different to current market buying prices, are disclosed in the notes.

DOTARS recognises property, plant and equipment other than land at its depreciated replacement cost.

Any assets that would not be replaced or are surplus to requirements are valued at net realisable value. As at 30 June 2000, DOTARS had no such assets in this situation.

All valuations are independent.

Note 2 - Summary of Significant Accounting Policies (cont)

Recoverable amount test

Schedule 2 requires the application of the recoverable amount test to agency non-current assets in accordance with AAS 10 Accounting for the Revaluation of Non-Current Assets. The carrying amounts of these non-current assets have been reviewed to determine whether they are in excess of their recoverable amounts. In assessing recoverable amounts, the relevant cash flows have been discounted to their present value.

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

Depreciation and Amortisation

Depreciable property plant and equipment assets are written-off to their estimated residual values over their estimated useful lives. In all cases, the straight-line method of depreciation is used by DOTARS. Leasehold improvements are amortised on a straight line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in price only when assets are revalued.

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

1999-2000 1998-99

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 5 years 3 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5C.

Note 2O - 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 First In First Out basis; 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.

Note 2P - Administered Investments

Administered investments in controlled entities are not consolidated because their consolidation is relevant only at the whole-of-government level.

The Commonwealths investment in other controlled authorities and companies in this portfolio is valued at the aggregate of the Commonwealths share of the net assets or net liabilities of each entity fixed at 30 June 1997, as adjusted for any subsequent capital injections or withdrawals.

Note 2 - Summary of Significant Accounting Policies (cont)

Note 2Q - Contingencies

Contingencies are conditions that may give rise to an asset or liability on the occurrence or non-occurrence of uncertain future events. They do not satisfy the recognition criteria for assets or liabilities and are not incorporated into the Balance Sheet.

Note 2R - Taxation

DOTARS is exempt from all forms of Commonwealth taxation except fringe benefits tax and the goods and services tax.

Note 2S - Capital Use Dividend

A capital use dividend of 12% is imposed by the Commonwealth on the net agency assets of DOTARS. The charge is adjusted to take account of asset gifts and revaluation increments during the financial year.

Note 2T - 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.

Note 2U - Insurance

The Commonwealths insurable risk managed fund, Comcover, commenced operations in 1998-99. DOTARS has insured with the fund for assets and other risks. Workers compensation is dealt with via continuing arrangements with Comcare.

Note 2V - Comparative Figures

Comparative figures for 1998-99 have been adjusted to conform with changes in presentation in these financial statements where required. In some instances, the notes include a comparative total only because reclassification or identification at a more detailed level is not practical.

Comparatives are not presented in Notes dealing with the Reporting on Outcomes, due to 1999-2000 being the first year of the implementation of accrual budgeting.

Note 2W - Budget

To assist in meeting the responsibilities of the Government to public accountability, these financial statements present Budget comparatives as presented in the Portfolio Additional Estimates Statements (PAES). The PAES supplement the original Portfolio budget statements for the year to support the Parliaments consideration of DOTARS Budget.

Note 2X - Rounding

Amounts have been rounded to the nearest $1,000 except in relation to the following:

  • act of grace payments and waivers;
  • remuneration of executives; and
  • remuneration of auditors.

Totals are the rounded sums of unrounded figures.

Note 2Y - Transitional Adjustments

Transitional 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. Details are given in Notes 8A and 8B.

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Note 3 : Events Occurring after Balance Date

No material events occurring after balance date warrant reporting. An Act was passed in Parliament during the period, however resolving to wind up the Australian National Railways Commission (ANRC). While the Department will accept those residual responsibilities of ANRC subsequent to the winding up, a number of matters need to be proclaimed before the Act can commence.

The ANRC is currently disclosed as an Administered Investment (see note 10E) at a value of $340,531,000 in the Departments Statement of Administered Assets and Liabilities.

In the subsequent financial year the investment will be written down to a nil carrying value as a result of the winding up.

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Note 4 : Operating Revenues

1999-2000 1998-99
$'000 $'000

Note 4A - Revenues from Government

Appropriation for outputs (see note 18A,19)

185 510 136 933

Resources received free of charge

1 695 592

Total

187 205 137 525

Note 4B - Administered Revenues from Government

Transfers from Official Public Account (see note 18B,19)

2 469 091 2 471 459

Appropriations accrued

109 825 114 705

Total

2 578 916 2 586 164

Note 4C - Sales of Goods and Services

Goods

5 656

Services

2 307

Total

7 963 7 523

Note 4D - Administered Sales of Goods and Services

Sales of vehicle compliance plates

7 262 7 867

Other services

111 -

Total

7 373 7 867

Note 4E - Administered Interest

Interest from other governments on state and territory loans

13 072 13 345

Interest from other sources:

Commonwealth authorities

9 -

Other loans

- 19

Total

13 081 13 364

Note 4F - Administered Dividends

Commonwealth authorities

15 221 56 000

Note 4G - Other Administered Revenue

Rental from leased properties

1 219 -

SIFC payable write-back

1 925 -

Other

4 320 28 783

Total

7 464 28 783

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Note 5 : Operating Expenses

          1999-2000   1998-99
          $'000   $'000
Note 5A - Employee Expenses          
Remuneration (for services provided)*   50 237   49 232
Separation and redundancy     1 278   4 577
Superannuation       7 428    
Recreation leave       2 720    
Long service leave       275    
Other employee expenses     2 918    
Total         64 856   53 808


* 1998-99 comparative data includes other forms of employee expenses unable to be separately identified.


Note 5B - Suppliers Expenses

         

Road works
     
4 728
   
Property operating costs     15 152    
Repairs & maintenance     3 057    
Transport       1 694    
Communication       4 631    
Professional services     21 199    
Fuel & electricity       4 621    
Law enforcement       2 114    
Travel         5 015    
Housing rental       249    
Health care       712    
Education       6 819    
Other         11 721    
Total         81 712   87 693

Note 5C - Depreciation and Amortisation
       

Depreciation of property, plant and equipment
 
11 988
 
25 533
Amortisation of intangibles     656   213
Total         12 644   25 746


The aggregate amounts of depreciation or amortisation expensed during the reporting period for

each class of depreciable assets are as follows:

     

Buildings
     
2 681
 
2 198
Infrastructure, plant and equipment   9 307   23 335
Intangibles       656   213
Total         12 644   25 746


No depreciation/amortisation was allocated to the carrying amounts of other assets.

 


Note 5D - Administered Depreciation and Amortisation

 

 

 


Depreciation of property, plant and equipment
 
262
 
-
Amortisation of intangibles     370   369
Total         632   369


The aggregate amounts of depreciation or amortisation expensed during the reporting period for

each class of depreciable assets are as follows:

 

 

 


Buildings
     
259
 
-
Infrastructure, plant and equipment   3   -
Intangibles       370   369
Total         632   369


No depreciation/amortisation was allocated to the carrying amounts of other assets.

 


Note 5E - Write-Down of Assets

         


Financial assets

           
  Receivables    

-

  561
Non-financial assets            
 

Inventory

     

-

  18
 

Infrastructure, plant and equipment

  427   961
 

Intangibles

      7   -
 

Land & buildings

    3 273   -

Total

        3 707   1 540


Note 5F - Write-Down of Administered Assets

 

 

 

 


Financial assets

 

 

 

 

 

 

 

Receivables

 

 

14

 

1 789


Non-financial assets

 

 

 

 

 

 

  Inventory not for re-sale     376   1 360
Total         390   3 149


Note 5G - Net Losses from Sale of Assets

       


Non-financial assets

           
  Land and buildings     1 275   113
 

Infrastructure, plant and equipment

  2 089   404

Total

        3 364   517


Note 5H - Net losses from Sale of Administered Assets

 

 

 


Non-financial assets

 

 

 

 

 

 

  Land and buildings     51   1 260
Total         51   1 260


Note 5I - Other Expenses*

         

Local government grants
   
3 756
   
Rebates & subsidies     693    
Insurance       2 111   -
Other operating expenses     1 662    
Total         8 222    


*1998-99 comparative data is included in Suppliers Expenses (note 5B) as it can not be separately identified.

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Note 6 : Subsidies and Grants

         

1999-2000

 

1998-99

         

$'000

 

$'000

Note 6 - Program Expenses          

Note 6A - Administered Subsidies
       

Tasmanian Freight Equalisation Scheme
 
61 221
 
28 701
Bass Srait Passenger Vehicle Equalisation Scheme 13 119   8 322
Remote Air Subsidy Services Scheme   1 304   1 259
Maritime Industry Finance Company Limited 71 490   122 541
Concessional Fares     -   67
Total         147 134   160 890

Note 6B - Administered Grants
       

Non-profit institutions
   
2 137
 
10 371
Commonwealth Authorities     52 572   134 245
Private sector       14 660   -
State and Territory governments   2 212 831   2 134 403
Local governments     6 684   1 671
Overseas entities       1 527   1 410
Total         2 290 411   2 282 100

The nature of the grants are as follows:
       
Regional services and Local Government   1 362 756   1 165 594
Air transport       33 058   81 748
Land transport       893 534   867 659
Maritime transport       1 063   167 099
Total         2 290 411   2 282 100

Note 6C - Administered Suppliers
       

Sydney Airport Noise Amelioration Program

60 703
 
58 078
Protection of the Sea     5 943   3 528

Other

 

 

 

 

2 104

 

4 061

Total         68 750   65 667

Note 6D - Other
           

Compensation payments for compulsory acquisition

12 202
 
-

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Note 7 : Extraordinary Items

Note 7A - Restructuring          
               
In respect of administrative restructuring involving other Agencies during the reporting period, the following assets
and liabilities were recognised by the Department of Transport and Regional Services at the date of the transfer:
               
Assets              
  Infrastructure, plant and equipment   -   148
  Other non-financial assets       25
Total assets recognised     -   173
               
Liabilities            
  Provision for employee entitlements   -   ( 1 354)
  Suppliers payable     -   ( 28)
Total liabilities recognised     -   ( 1 383)
               
               
Net revenues from restructuring     -   ( 1 210)

In respect of the administrative restructuring involving other Agencies during the reporting period, revenues and expenses for the affected functions over the reporting period were recognised by:

Revenues
           
  Recognised by the Department Transport and Regional Services -   4 874
  Recognised by other Commonwealth Agencies -   1 258
Total revenues       -   6 132

Expenses
           
  Recognised by the Department Transport and Regional Services -   7 911
  Recognised by other Commonwealth Agencies -   437
Total expenses       -   8 348

Note 7B - Restructuring - Administered
       
In respect of administrative restructuring involving other Agencies during the reporting period, the following assets and liabilities were recognised by the Department Of Transport and Regional Services at the date of the transfer:

Assets
             
  Receivables     -   1 789
  Investments     -   66 635
Total assets recognised     -   68 424

Liabilities
           
  Other payables     -   (4 725)
Total liabilities recognised     -   (4 725)

Net liabilities assumed
   
-
 
63 699

Net Revenues from Restructuring
   
-
 
63 699

In respect of administrative restructuring involving other Agencies during the reporting period, revenues and expenses for the affected functions over the reporting period were recognised by:

Revenues
           
  Recognised by the Department Transport and Regional Services -   14 197
  Recognised by other Commonwealth Agencies -   -
Total Revenues       -   14 197

Expenses
           
  Recognised by the Department Transport and Regional Services -   34 704
  Recognised by other Commonwealth Agencies -   527
Total Expenses       -   35 231

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Note 8 : Transitional adjustments

1999-2000

1998-99

$'000

$'000

Note 8A - Transitional Adjustments


Corrections made to amounts previously recognised as assets and liabilities:


Land & buildings

( 7 272)

-
Infrastructure, plant & equipment ( 1 136) -
Intangibles 10 -
Prepayments 7 -
Debtors 466 -
Inventory 381 -
Liabilities & creditors 251 -
Cash at bank ( 770) -
FBT expense ( 237) -
Total (8 300) -


Note 8B - Administered Transitional Adjustments


Corrections made to amounts previously recognised as assets and liabilities:


Cash at bank

( 524)
 
-
Assets transferred from the Department to the Commonwealth 6 158   -
Assets identified during stocktakes 4 098   -
Write back of loan from OPA for on-lending -   297 106
Recognise prepayment for grants -   11 856
Total 9 732   308 962

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Note 9 : Taxation Revenue

Note 9 - Administered Levies, Fees and Fines

Levies

121 268
 
84 944
Licence and registration fees 23 566   25 725
Fines 1 650   1 238
Royalties 1 283   -
Total 147 767   111 906

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Note 10 : Financial Assets
Note 10A - Administered Cash

Reserve Money Fund
   
-
 
551
Cash at bank and on hand 24 458   85
  24 458   636

1999-2000

1998-99
$'000 $'000

Note 10B - Receivables

Appropriations

-

11 974
Goods and services 1 837 1 983
less: Provision for doubtful debts (288) ( 1 030)
Total 1 549 12 927

Receivables (gross) are aged as follows:
Not Overdue 1 143 11 631
Overdue by:
less than 30 days 116 213
30 to 60 days 93 92
more than 60 days 485 2 021
Total 1 837 13 957

Note 10C - Administered Receivables

Other taxes, fees and fines

6 309
 
9 927
less : Provision for doubtful debts ( 22)   (3 722)
  6 287   6 205

Loans to State and Territory Governments

190 364
 
190 226
less : Provision for waiving of debts -   -
  190 364   190 226

Other loans

1 600
 
1 600
less : Provision for doubtful debts (1 600)   (1 600)
  -   0
Goods and services -   352
less : Provision for doubtful debts -   (7)
  -   344

Special Appropriations

439 695
 
114 705

Annual Appropriations

4 170
 
8 388

Proceeds from land sales

-
 
10 200
Other 3 376   7 899
less : Provision for doubtful debts (2 738)   (2 738)
  638   15 361

Net Receivables

641 154
 
335 230

Maturity schedule for loans to State and Territory governments :
   
  within one year     8 675   5 301
  one to two years     6 617   6 123
  two to five years     21 295   18 571
  over five years     153 777   160 231
Total         190 364   190 226

Taxes, Fees and Fines receivables (gross) are aged as follows :
Not Overdue       6 287   3 862
Overdue by:            
  less than 30 days     -   2 282
  30 to 60 days     -   5
  60 to 90 days     -   56
  more than 90 days     22   3 722
Total         6 309   9 927

Note 10D - Investments

Term Deposits

31 500

-
Total 31 500 -

Note 10E - Administered Investments
        C'wlth      
Shares in Commonwealth companies: Interest      
  Australian River Company 100% 37 965   37 965
  National Rail Corporation Limited 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   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
  National Road Transport Commission 35% 200   200
  Australian Maritime College 100% 58 518   58 518
  Australian Rail Track Corporation 100% -   -
  Stevedoring Industry Finance Committee 100% 14 053   14 053
  Maritime Industry Finance Company Limited 100% -   -
  1 301 155   1303 105
Government securities
 
Federation Fund
   
-
 
230 000

Total
       
1 301 155
 
1 533 105

The principal activities of each of the investments of controlled entities listed above are as follows:
 
Australian River Company
- established to manage residual matters and obligations remaining after the sale of the maritime shipping activities of the Australian National Line Limited.
 
National Rail Corporation Limited
- functions to conduct national interstate rail freight operations.
 
Airservices Australia
- services to national air transport include air traffic control and navigation facilities, as well as airport firefighting services.
 
Albury Wodonga Development Corporation
- the current purpose of the AWDC is to facilitate an orderly sale of the corporation's assets, in particular land development holdings.
 
Australian Maritime Safety Authority
- provides regulation and oversight of Australian shipping; maritime navigation facilities; and search and rescue services.
 
Australian National Rail Commission
- ceased rail operations and is currently winding up residual matters and obligations.
 
Civil Aviation Safety Authority
- responsible for setting aviation safety standards, registration of aircraft, licensing, and compliance with safety regulations.
 
Federal Airports Corporation
- ownership and operation of Federal airports.
  National Road Transport Commission - provides advice to Australian governments on road transport issues and reform, including safety, uniformity and environmental policies.
 
Australian Maritime College
- provides education and training for the shipping and fishing industries.
 
Australian Rail Track Corporation
- manages access to the national interstate rail track and infrastructure network, as well as train control services.
 
Stevedoring Industry Finance Committee
- manages residual matters and obligations arising from its former functions to oversee and control the disposal of levies imposed on the stevedoring industry.
 
Maritime Industry Finance Company Limited
- provides financial assistance in connection with the reform and restructuring of the maritime (shipping and stevedoring) industry.

Note 10F - Administered Accrued Revenue

Interest

2 180
 
1 825
Taxes, fees and fines 5 204   2 644
Other -   2 595
Total 7 384   7 064

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Note 11 : Non-financial Assets

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Note 12 : Debt

Note 12 - Other Debt

Lease incentives

433

14

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Note 13 : Provisions and Payables


Note 13A - Employees
1999-00
$'000
1998-99
$'000

Salaries and wages

1 379

888
Annual leave 7 855 6 634
Long service leave 13 194 12 614
Superannuation 208 127
Separation and redundancy - 78
Aggregate employee entitlement liability 22 636 20 341
Other 976 769
Total 23 612 21 110

Note 13B - Suppliers

Trade creditors

3 580

2 643
Accrued expenses 3 072 -
Operating lease rentals 7 7
Other 829 -
Total 7 488 2 650

Note 13C - Other

Finance Lease Commitments:

Not later than one year

407

-
Later than one year but not later than two years 394 -
Later than two years but not later than five years 239 -
Minimum lease payments 1 040 -
Deduct: future finance charges ( 75) -
Total Finance Lease Liability * 965 -
Surplus Lease Space Liability 889 -
Unearned Income 527 93
Total 2 381 93

* Finance Lease Liability is represented by:

Current

362

-
Non-current 603 -
965 -

Note 13D - Other Administered Payables

Goods and services

6 844
 
7 498
Unearned income -   109
  6 844   7 607

Note 13E - Administered Grants Payable

Private Institutions

-
 
25
Commonwealth Authorities -   2 092
State and Territory governments 21 581   2 312
Local governments 72   557
  21 653   4 986

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Note 14 : Equity

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Note 15 : Cash Flow Reconciliation

1999-2000
$'000

1998-99
$'000


Note 15A - Cash Flow Reconciliation


Reconciliation of operating surplus/(deficit) to net cash provided by operating activities:


Operating surplus/(deficit) before extraordinary items


24 858


(24 256)

Extraordinary item - restructuring

-

(1 210)

Net surplus/(deficit)

24 858

(25 466)


Revenues from government


(1 695)


(592)

Depreciation/Amortisation

12 823

25 746

(Profit)/Loss on sale of non-current assets

2 982

517

Assets write down

3 707

1 540

Resources received free of charge

1 695

592

Restructuring adjustment

-

(148)


Changes in assets/liabilities:


Decrease/(increase) in receivables


( 276)


9 347

Decrease/(increase) in accrued revenue

( 469)

-

Decrease/(increase) in inventories

544

583

Decrease/(increase) in other assets

1 090

2 448

(Decrease)/increase in other debt

-

(338)

(Decrease)/increase in payables

4 099

( 7)

(Decrease)/increase in employee provisions

2 501

2 798

(Decrease)/increase in unearned income

1 323

( 61)

Net cash provided by operating activities

53 182

16 958


Note 15B - Cashflow Reconciliation - Administered


Reconciliation of net contribution to budget outcome to net cash provided by operating activities:


Net contribution/(cost) to the budget outcome (before extraordinary items)


250 252

 


531 299

Extraordinary items - Restructuring

-

 

63 699

Net contribution/(cost) to the budget outcome

250 252

 

594 998

Cash to Official Public Account from operations

( 204 932)

 

(362 152)

Net surplus/(deficit)

45 320

 

232 845


Transitional adjustments


-

 


308 962

Depreciation

632

 

369

Net write down of assets

390

 

3 149

(Profit)/Loss on sale of property, plant and equipment

51

 

1 260

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

59 429

 

113 790

(Increase)/Decrease in prepayments

( 11 028)

 

(80 085)

(Increase)/Decrease in accrued revenue

( 320)

 

 

(Increase)/Decrease in operating receivables

( 83 826)

 

(25 665)

Net cash from operating activities

10 648

 

( 138 182)

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Note 16 : Remote Contingencies


Note 16A - Contingencies

There are no Agency remote contingencies.

Note 16B - Administered Contingencies

Guarantees

Tripartite Deed relating to the sale of 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, airport lessees and lessees financiers provide for the Commonwealth to usurp control as airport operator in defined circumstances. The Deeds also provide protection to secured financiers where a lease termination event occurs.

The potential liability of the Commonwealth would vary considerably with the specific factors leading to a lease termination. 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, the Airport lessee company and potentially, from the financiers themselves.

Where the Commonwealth takes action to terminate the Airport Lease, secured financiers can recover their loans from funds obtained by the Commonwealth from reselling the airport lease. If not resold, the Commonwealth and the financiers are to obtain a valuation of the airport lease that will set the basis for a repayment of financiers loans by the Commonwealth.

State and Territory Governments

The following borrowings have been guaranteed by the Commonwealth in respect of State and Territory Governments.

Borrower
 
Legislation
 
Principal

Balance
 
Balance
    Authorising   Covered by Outstanding   Outstanding
    Guarantee   Guarantee 1999-00   1998-99
        $ $   $
    Northern Territory        
Northern Territory (Self-Government)        
Government Act 1978 s47A 161,979,100 153,433,100   155,134,400

Maritime Industry Reform

The Maritime Industry Finance Company Ltd (MIFCo) provides assistance in connection with the reform and restructuring of the stevedoring industry through funding redundancy-related payments in the industry. On 15 July 1999, the Commonwealth provided a guarantee to cover a borrowing facility for MIFCo of $220m, replacing the $155m previously guaranteed on 18 August 1998. Approximately $195m (including principle, interest and charges) had been drawn down at 30 June 2000. The Stevedoring Levy (Collection) Act 1998 has been amended to increase the expenditure cap in the legislation from $250 million to $300 million. Amounts drawn by MIFCo and not yet funded by the Commonwealth are recognised as a liability in the Statement of Administered Assets and Liabilities.

Indemnities

Maritime Industry Finance Company Limited 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.

National codes of practice for railways - Industry Advisory Committee

Under an Inter-Governmental Agreement on Rail Operational Uniformity, an advisory committee has been formed to provide advice to the Australian Rail Operations Unit on all aspects of the development and implementation of uniform operational codes for the defined interstate rail network. The Commonwealth indemnifies members of the Advisory Committee as if they were Commonwealth employees. It is not possible to quantify liability risk.

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Note 17 : Assets not recognised

Note 17 - Assets not recognised

Control of a number of Federal airports has passed to other Commonwealth and private 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.

Appropriations for Rural Transaction Centres and certain land transport programs are provided by specific legislation and received through special accounts (see Note 18C). Only those amounts, including accumulated balances, which have been, or are expected to be, received have been brought to account as revenue and receivable assets as appropriate.

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Note 18 : Appropriations


Note 18A - Agency Appropriations

Annual Appropriations for Departmental Items (Price of Outputs) - 1999-2000

$'000

Balance available at 1 July

-

Add: Appropriation Acts Nos 1 & 3 credits:

Section 6

- Act 1 - basic appropriation

181 992
Section 6 - Act 3 - basic appropriations 3 518

Add: FMA Act

s31 appropriations

14 225
Total appropriations available for the year 199 735
Expenditure for the period 163 681
Balance of appropriations for outputs at 30 June 36 054

Annual Agency Non-Revenue Appropriations - 1999-2000
Equity Injections Loans Carryovers
$'000 $'000 $'000

Balance available at 1 July

-

-

-
Add: Appropriation Act No 2 5 974 - 6 000
Add: Advance to the Finance Minister - - -
Add: FMA Act s30 appropriations - - -
Add: Appropriation Act No 4 - - 17 422
Total appropriations available for the year 5 974 - 23 422
Expenditure for the period 5 974 - 23 422
Balance of appropriations for capital at 30 June 2000 - - -

Note 18B - Administered Appropriations

Annual Appropriations for Administered Expense Items - 1999-2000
OUTCOME - LINKING AUSTRALIA THROUGH TRANSPORT AND REGIONAL SERVICES
     
Administered Expenses

Other Administered Expenses

Specific Purpose Payment Expenses
     
$'000
 
$'000
 
$'000

Balance available at 1 July

-
 
-
 
-

Add: Appropriation Acts
 
Basic appropriations specified Acts 1/2

114 171
 
145 937
 
29,555
  Basic appropriations specified Acts 3/4 23 562   26 406   44,750
Total appropriations available for the year 137 733   172 343   74 305
Expenditure for the period 107 213   131 724   48 901
Balance unspent   30 520   40 619   25 404
Retained appropriations at 30 June 1 183   4 928   -
Appropriations lapsinga 29 337   35 691   25 404

a The amount of the appropriation that lapsed was based on the unexpensed component of the appropriations as determined by the Finance Minister in accordance with Section 7 of the Appropriation Acts.

Annual Administered Non-Revenue Appropriations - 1999-2000
             
Capital
              $'000

Balance available at 1 July
       
-
Add: Appropriation Act No 2         2 100
Add: Appropriation Act No 4         9 200
Total appropriations available for the year         11 300
Expenditure for the period         10 274
Balance unspent         1 026
Retained appropriations at 30 June         ( 316)
Appropriations lapsinga         710

a The amount of the appropriation that lapsed was based on the unexpensed component of the appropriations as determined by the Finance Minister in accordance with Section 7 of the Appropriation Acts.

Expenditure under Special Appropriations for Administered Items - 1999-2000
         
Budget
 
Actual Expenditure
Special Appropriation (Act)     $'000   $'000

Australian Land Transport Development Act 1988

807 101
 
855 893
Interstate Road Transport Act 1985     20 000   21 805
Local Government (Financial Assistance) Act 1995 1 269 585   1 264 536
Protection of the Sea (Oil Pollution Compensation Fund) Act 1993 4 600   5 943
Stevedoring Levy Collection Act 1998     24 980   28 259
  2 126 266   2 176 436

Note 18C - Special Accounts

Special appropriations which are included in the administered financial statements:

Australian Land Transport Development

Legal authority - Australian Land Transport Development Act 1988

Purpose - to provide assistance to the States & Territories for land transport upgrading and maintenance, including funding for urban public transport and land transport research.

Balance as at 1 July
       
2
add: receipts from appropriations         855 893
Available funds for allocation         855 895
less: expenditure         ( 855 893)
Balance as at 30 June (Appropriation receivable)         2

Interstate Road Transport Charges

Legal authority - Interstate Road Transport Act 1985.

Purpose - to provide for payments to the States or Territories for maintenance and upkeep of roads from registration charges received from vehicles engaged in interstate trade and commerce.

Balance as at 1 July
       
22
add: receipts from appropriations         21 805
Available funds for allocation         21 827
less: expenditure         ( 21 827)
Balance as at 30 June (Appropriation receivable)         -

Rural Transaction Centres

Legal authority - Telstra (Further Dilution of Public Ownership) Act 1999.

Purpose - enabling people in rural areas to have access to services and technology that enable them to obtain information or carry out transactions.

Balance as at 1 July
       
-
add: receipts from appropriations*         61 657
Available funds for allocation         61 657
less: expenditure         ( 2 560)
Balance as at 30 June (Appropriation receivable)         59 097

* While $70m has been provided for Rural Transaction Centres, it is intended that the remaining funding be provided through annual agency appropriations for outputs. The funding is reserved for spending over five years.

Federation Fund Reserve

Legal authority - Financial Management and Accountability Act 1997; s20

Purpose - to fund projects of national significance to mark the Centenary of Federation.

Balance as at 1 July
       
230 004
add: receipts from appropriations         -
Available funds for allocation         230 004
less: expenditure         ( 8 873)
Balance as at 30 June (Appropriation receivable)         221 131

Moneys which are held on behalf of third parties:

Christmas Island Community Benefit Fee

Legal authority - Financial Management and Accountability Act 1997

Purpose - for expenditure of moneys received from Christmas Island Resort Pty Ltd as a community benefit fee on projects that benefit the Christmas Island community.

Balance as at 1 July

47
add: receipts from third parties -
Available funds for allocation 47
less: expenditure -
Balance as at 30 June* 47

* The special account is being wound up.

Road Safety Research and Public Education

Legal authority - Financial Management and Accountability Act 1997

Purpose - to accept funds from public and private sector sources towards the cost of particular projects.

Balance as at 1 July

477
add: receipts from third parties -
Available funds for allocation 477
less: expenditure -
Balance as at 30 June 477

Services for Other Government and Non-Agency Bodies

Legal authority - Financial Management and Accountability Act 1997

Purpose - for expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies.

Balance as at 1 July

1 128
add: receipts from third parties 1 958
Available funds for allocation 3 086
less: expenditure (1 754)
Balance as at 30 June 1 332

Other Trust Moneys Reserve

Legal authority - Financial Management and Accountability Act 1997

Purpose - for receipt of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

Balance as at 1 July

525
add: receipts from third parties 1 696
Available funds for allocation 2 221
less: expenditure (1 704)
Balance as at 30 June 517

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Note 19 : Reporting by Outcomes

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Note 20 : Executive Remuneration

The number of executive positions receiving, or entitled to receive, total remuneration of $100,000 or more:
1999-2000 1998-99

$100 000 to $110 000

2

-
$110 001 to $120 000 1 3
$120 001 to $130 000 7 8
$130 001 to $140 000 6 7
$140 001 to $150 000 5 6
$150 001 to $160 000 3 1
$160 001 to $170 000 4 5
$170 001 to $180 000 - 1
$190 001 to $200 000 1 -
$200 001 to $210 000 2 -
$210 001 to $220 000 2 -
$230 001 to $240 000 1 1
$240 001 to $250 000 1 -
$250 001 to $260 000 1 -
$290 001 to $300 000 1 -
$320 001 to $330 000 - 1
$330 001 to $340 000 1 -

The aggregate amount of remuneration of executive positions shown above:

$6 266 689

$5 149 464

The aggregate amount of separation and redundancy payments made during the year to executive positions shown above:

$137 383

$289 389

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Note 21 : 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 $215 000 (1998-99: $200 000).

No other services were provided to the Department by the Auditor-General.

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Note 22 : Act of Grace Payments and Waivers

One Act of Grace payment, amounting to $10 000 (1998-99: nil), was made pursuant to the Financial Management and Accountability Act 1997.

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.

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Note 23 : Average Staffing Levels

Average staffing levels for the Agency in 1999-2000 were 971 (1998-99 : 909). (The 1998-99 staffing level has been recast to include relevant Commonwealth-employed staff based on Australia's external Territories and previously excluded from these estimates.)

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Note 24 : Financial Instruments

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