Notes

Department Objectives
Summary of Significant Accounting Policies
Events Occurring after Balance Date
Operating Revenues
Operating Expenses
Borrowing Costs expense
Transitional Adjustments
Financial Assets (see note 21)
Non-Financial Assets
Interest Bearing Liabilities
Provisions
Payables
Equity
Cash Flow Reconciliation
Appropriations
Major Agency Revenue and Expenses by Outcome
Executive Remuneration
Services provided by the Auditor-General
Act of Grace Payments and Waivers and Defective Administration Scheme
Average Staffing Levels
Financial Instruments
Taxation Revenue
Non-Taxation Revenue
Expenses from ordinary activities
Expenses from ordinary activities (Program Expenses)
Financial Assets (see note 37)
Non-Financial Assets
Administered Liabilities
Transitional Adjustments
Administered Equity
Cash Flow Reconciliation
Transfers to Official Public Account
Remote Contingencies
Act of Grace Payments and Waivers and Defective Administration Scheme
Appropriations
Administered Programmes
Financial Instruments

Department Objectives

For the 2000–01 financial year the Department of Transport and Regional Services (DOTARS) objective in program delivery was expressed through the outcome statement of Linking Australia through Transport and Regional Services.

DOTARS activities contributing towards this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by DOTARS in its own right. Administered activities involve the management or oversight by DOTARS on behalf of the Government of items controlled or incurred by the Government.

In meeting the Departments objective four key result areas have been identified:

Output Group 1: Transport systems which are safer, more efficient, internationally competitive, sustainable and accessible.
Output Group 2: Regional communities which have better access to opportunities and services and which are able to take the lead in their own planning and development.
Output Group 3: Local governments which serve their communities more effectively and efficiently.
Output Group 4: Territories in which residents will have the same opportunities and responsibilities as other Australians enjoy in comparable communities.

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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:

  • Schedule 1 of the Financial Management and Accountability (Financial Statements 2000–2001) Orders made by the Finance Minister for the preparation of Financial Statements in relation to financial years ending on 30 June 2001;
  • Australian Accounting Standards and Accounting Interpretations issued by Australian Accounting Standards Boards;
  • Other authoritative pronouncements of the 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 1, and Guidance Notes issued by the Department of Finance and Administration.

The financial statements have been prepared on an accrual basis and are in accordance with the 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.

Assets and liabilities are recognised in the Agency Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an Accounting Standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than remote contingencies, which are reported at note 33).

Revenues and expenses are recognised in the Agency Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

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

Note 2B—Changes in Accounting Policy

Amounts appropriated, but not received, from the Special Account of $280,224,172 were recognised as an Administered Receivable of appropriation at 30 June 2000. The balance of this receivable as at 30 June 2001, $217,473,638 has been written down to nil and is included as an expense in the Schedule of Administered Revenues and Expenses (refer note 24B). The Special Account balance remains available for intended purposes, refer note 35C for details.

DOTARS asset recognition threshold has been increased from $2,000 to $5,000 and this change in policy has been implemented with effect from 1 July 2000 with a consequent write down to the Infrastructure, Plant and Equipment class of $1,090,356.

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 2D—Reporting by Outcomes

Note 16 provides an attribution of DOTARS actual revenues and expenses for 2000–01, to the Output Groups applicable to DOTARS from 2001–02 (as per the 2001–02 Portfolio Budget Statements). The percentages applied in the attribution of expenses are consistent with those used in the development of the budget and rely upon management estimation.

The table at Note 36 is a summary of revenues and expenses applicable to the Administered programmes specified in the Appropriation Acts.

Both notes include 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.

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 Department's bank account.

The appropriations for capital items for 2000–2001 include the re-appropriation to DOTARS of certain unspent amounts from 1999–00.

Administered Appropriations

Appropriations for administered expenses may be unlimited or limited as to amount. Where the appropriation is an annual appropriation and limited as to amount, revenue is recognised to the extent of the lesser of

  • The amount appropriated by the Parliament; or
  • An amount determined by the Finance Minister—this amount is determined having regard to the expenses incurred for the reporting period.

Where an appropriation is unlimited, revenue is recognised to the extent that expenses have been incurred. Similarly, appropriations credited to administered special accounts are recognised as revenue to the extent that expenses have been incurred.

Appropriations for capital are recognised as the amount appropriated by Parliament and received.

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.

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 4B and 23E.

Note 2G—Grants (Administered)

DOTARS 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 2H—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 by employees of DOTARS 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 2001 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 2001. 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 $6,338,658 in relation to these schemes have been expensed in these financial statements.

No liability is shown for superannuation in the Statement of Financial Position as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.

Employer Superannuation Productivity Benefit contributions totalled $1,638,183 (1999–00 $1,163,486).

Note 2I—Leases

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

The carrying amounts of relevant assets were written down to fair value with effect from 1 July 1999 with 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 2J—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 2K—Financial Instruments

Accounting policies for financial instruments are summarised at Note 37.

Note 2L—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 agency's accounts immediately prior to the restructuring.

Note 2M—Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $5,000. 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 $5,000.

Revaluations

Schedule 1 to the Finance Management and Accountability (Financial Statements 2000–2001) Orders requires that land and buildings, plant and equipment be progressively revalued in accordance with the ‘deprival’ method of valuation in successive 3 year cycles.

DOTARS is implementing this cyclical asset valuation requirement on a geographical basis and in 2000–2001, valuations were completed for assets within the Indian Ocean Territories and Jervis Bay.

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 means DOTARS values its land at its current market buying price and its property, plant and equipment at its 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 2001, DOTARS had no such assets in this situation.

All valuations are independent.

Airport Land

The Department has not placed a monetary valuation on freehold land at airports leased by the Commonwealth to private sector interests. This policy takes account of the fact that land at the 20 civilian airports owned by the Commonwealth is subject to lease arrangements whereby the land is leased for 50 years with a 49 year extension option in consideration of upfront payments from the lessors and without any subsequent annual lease payments. For the purpose of financial reporting the land at these airports is therefore assessed as having no deprival value because of the extended period before which any future revenue stream will accrue.

Infrastructure built on the freehold land is an asset of the lessor and is also not reflected in the accompanying financial statements.

Recoverable amount test

Schedule 1 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:

  2000–2001 1999–2000
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 5 years

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

Note 2N—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 2O—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 fixed at 30 June 1997, as adjusted for any subsequent capital injections or withdrawals.

Note 2P—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 Statement of Financial Position.

Note 2Q—Taxation

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

Note 2R—Capital Use Charge (CUC)

A CUC 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.

The format of the Statement of Financial Performance has been revised in 2000–01 to exclude such direct equity adjustments, as the CUC from the face of the statement to comply with Schedule 1 to the Finance Management and Accountability (Financial Statements 2000–2001) Orders.

Note 2S—Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction.

Note 2T—Insurance

The Commonwealth's 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 2U—Comparative Figures

Comparative figures for 2000–01 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.

Note 2V—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 Parliament's consideration of DOTARS Budget.

Note 2W—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.

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Events Occurring after Balance Date

No material events occurring after balance date warrant reporting.

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Operating Revenues

2000–2001 $'000 1999–2000 $'000
Note 4A—Revenues from Government
Appropriation for outputs 190 482   185 510
Resources received free of charge 215  1 695
Total 190 697  187 205
Note 4B—Sale of Goods and Services
Revenues from Community Services
Airport/Marine  838  835
Electricity, water and sewerage 4 470  4 572
Health/Housing 795  774
Other 1 141 1 782
Total 7 244  7 963
     
Note 4C—Proceeds and Expense from Sale of Assets
Non-financial assets—Land and Buildings
Revenue (proceeds) from sale 3 556 2 863
Expense from sale 1 134 4 138
Total 2 422 (1 275)
      
Non-financial assets—Infrastructure, plant and equipment
Revenue (proceeds) from sale 80 81
Expense from sale 1 329 2 170
Total (1 249) (2 089)
      
Note 4D—Other Revenue
Insurance Recoveries 2 500   -
OtherTotal 3 718 1 772
6 218 1 772

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Operating Expenses

Note 5A—Employee Expenses  
Remuneration (for services provided) 50 097 50 237
Separation and redundancy 3 473 1 278
Superannuation 8 107 7 428
Recreation leave 3 271 2 720
Long service leave 319 275
Other employee expenses 3 508 2 918
Total 68 775 64 856
Note 5B—Suppliers Expenses  
Road works 3 992 4 728
Property operating costs 14 467 16 205
Repairs & maintenance 2 283 3 680
Transport 3 184 2 359
Communication 9 998 8 517
Professional services 25 046 22 489
Fuel & electricity 5 645 4 621
Law enforcement 2 343 2 226
Travel 5 306 5 016
Housing rental 335 269
Health care 2 319 850
Education 7 854 8 312
Other 3 449 2 440
Total 86 221 81 712
Note 5C—Depreciation and Amortisation
Depreciation of property, plant and equipment 11 198 11 988
Amortisation of intangibles 755 656
Total 11 953 12 644
The aggregate amounts of depreciation or amortisation expensed during the reporting period for
each class of depreciable assets are as follows:
Buildings 2 867 2 681
Infrastructure, plant and equipment 8 331 9 307
Intangibles 755 656
Total 11 953 12 644
No depreciation/amortisation was allocated to the carrying amounts of other assets.
Note 5D—Write-Down of Assets 
Non-financial assets
Infrastructure, plant and equipment 15 615 427
Intangibles 253 7
Land & buildings 431 3 273
Total 16 299 3 707
Note 5E—Other Expenses  
Local government grants 4 104 3 756
Rebates and subsidies   769 693
Insurance 2 558 2 111
Other operating expenses 3 302 1 632
Total 10 733 8 193

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Borrowing Costs expense

Leases 154 30

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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

0

(8 300)

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Financial Assets (see note 21)

Note 8A—Receivables
Appropriations 0 -
Capital Use Charge 791 -
Goods and services 3 582 1 837
less: Provision for doubtful debts (507) (288)
Total 3 866 1 549
Receivables (gross) are aged as follows:
Not Overdue 3 214 1 143
Overdue by:
less than 30 days 268 116
30 to 60 days 91 93
more than 60 days 800 485
Total 4 373 1 837
Note 8B—Investments
Term Deposits 33 000 31 500
Total 33 000 31,500

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Land and Buildings

Land—at valuation (30 June 1996, 1998 & 2000) - 3 045
Land—at valuation (up to 30 June 2001) 4 674 -
Total Land 4 674 3 045
Buildings on freehold land—at cost 1 211 14 301
Accumulated depreciation ( 3) ( 73)
1 208 14 228
Buildings on freehold land—at valuation (30 June 1996, 1998 & 2000) - 82 056
Accumulated depreciation -
0 77 695
Buildings on freehold land—at valuation (up to 30 June 2001) 88,092   —
Accumulated depreciation ( 373)   —
Leasehold Improvements—at cost 7 786 301
Accumulated depreciation ( 797) ( 301)
6,989   —
Total Buildings 95 916 91 923
Total Land and Buildings 100 590 94 968
Revaluations were made as at 30 April 2001 for the Indian Ocean Territories, and 30 June 2001 for all other revaluations, in accordance with the progressive revaluation policy stated at Note 2. Valuations were completed by independent valuers, John Harvey

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Infrastructure, Plant and Equipment

Infrastructure, plant and equipment—at cost 10 774 20 396
Accumulated depreciation ( 369) ( 256)
10 405 20 140
Infrastructure, plant and equipment—at valuation (30 June 1996 to 2000) 2 526 184 890
Accumulated depreciation ( 732) (107 619)
1 794 77 271
Infrastructure, plant and equipment—at valuation (up to 30 June 2001) 88 368 9 093
Accumulated depreciation ( 866)   —
87 502 9 093
Total infrastructure, plant and equipment 99 701 106 504
Revaluations were made as at 30 April 2001 for the Indian Ocean Territories, and 30 June 2001 for all other revaluations, in accordance with the progressive revaluation policy stated at Note 2. Valuations were completed by independent valuers, John Harvey

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Intangibles

Intangibles—computer software—at cost 5 457 4 092
Accumulated depreciation (1 348) ( 674)
4 109 3 418
Total intangibles 4 109 3 418

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Analysis of Property, Infrastructure, Plant and Equipment, and Intangibles

TABLE A—Movement Summary 2000–2001 for all assets irrespective of valuation basis

Item Land
$'000
Buildings
$'000
Buildings-Leasehold
Improvements

$'000
Total land and buildings
$'000
Infrastructure, plant and equipment
$'000
Intangibles
$'000
TOTAL
$'000
Gross value as at  
1 July 2000 3 045 96 358 301 99 704 215 249 4 092 319 045
Additions 1,468 3 221 7 485 12 174 12 395 1 694 26 264
Revaluations: write-ups/(downs) 247 (8 566) - (8 319) (72 305) - (80 624)
Other - - - - ( 18) - ( 18)
Write-offs (2) ( 524) - ( 526) (51 524) ( 330) (52 380)
Disposals (84) (1 186) - (1 270) (2 128) - (3 398)
Gross value as at 30 June 2001 4 675 89 303 7 786 101 764 101 669 5 456 208 889
Accumulated depreciation/  
amortisation as at 1 July 2000 (4 435) ( 301) (4 736) (108 089) ( 674) (113 499)
Depreciation/amortisation charge for the year (2 689) - (2 689) (8 055) (761) (11 505)
additions n/a - ( 496) ( 496) - - ( 496)
Revaluations n/a 6 593 - 6 593 76 105 - 82 698
Other n/a - - - - - -
Write-offs n/a - - - 37 032 88 37 119
Disposals n/a 154 - 154 1039 - 1 193
Accumulated depreciation/amortisation as
at 30 June 2001

-

( 377)

(797)

(1 174)

(1 967)

(1 348)

(4 489)
Net book value as at 30 June 2001 4 675 88 926 6 989 100 590 99 701 4 109 204 400
Net book value as at 1 July 2000 3 045 91 923 0 94 968 107 160 3 418 205 546

TABLE B—Summary of balances of assets held at valuation as at 30 April 2001

Item Land
$'000
Buildings
$'000
Buildings-Leasehold
Improvements

$'000
Total land and buildings
$'000
Infrastructure, plant and equipment
$'000
Intangibles
$'000
TOTAL
$'000
As at 30 June 2001
Gross value 4 675 89 303 7 786 101 764 101 669 5,456 208 889
Accumulated depreciation /amortisation - ( 377) ( 797) (1 174) (1 967) ( 1 348) (4 489)
Net book value 4 675 88 926 6 989 100 590 99 701 4 109 204 400
As at 30 June 2000
Gross value 3 045 96 358 301 99 704 215 249 4 092 319 045
Accumulated depreciation /amortisation (4 435) ( 301) (4 736) (108 089) ( 674) (113 499)
Net book value 3 045 91 923 94 968 107 160 3 418 205 546

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Inventories

Finished goods held for sale (at cost) 22 18
Stores not held for sale (at cost) 2 041 2 432
Total 2 063 2 450

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Other

Prepayments 2 062 4 872
Other assets—deferred loss 352 1 459
Total 2 414 6 331

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Interest Bearing Liabilities

Lease incentives (12 months or less) 325 57
Lease incentives (more than 12 months) 2 255 376
2 580 433

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Provisions

Employees
Salaries and wages 1 454 1 379
Annual leave 8 314 7 855
Long service leave 12 164 13 194
Superannuation 218 208
Separation and redundancy -   —
Aggregate employee entitlement liability 22 150 22 636
Other 637 976
Total 22 787 23 612
Current 5 899 5 558
Non-current 16 888 18 054

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Suppliers

Trade creditors 3 686 3 580
Accrued expenses 7 877 3 062
Operating lease rentals 7 7
Other 176 829
Total 11 746 7 478

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Other

Surplus Lease Space Liability (12 months or less) 109 709
Surplus Lease Space Liability (more than 12 months) 71 180
Unearned Income 716 527
Total 896 1 416

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Equity

Item Capital Accumulated
Results
Asset
Revaluation
Reserve
TOTAL
EQUITY

2000–2001
$'000
1999–2000
$'000
2000–2001
$'000
1999–2000
$'000
2000–2001
$'000
1999–2000
$'000
2000–2001
$'000
1999–2000
$'000
Balance 1 July 29 396 11,974 179 803 190 685 9 959 17 371 219 158 220 030
Net surplus after extraordinary items 14 682 24 503 14 682 24 503
Equity appropriation 4 829 17 422 4 829 17 422
Capital use charge (26 502) (27 085) (26 502) (27 085)
Net Revaluation increase/(decrease) 2 328 ( 7 412) 2,328 ( 7 412)
Transitional adjustments - (8 300)  - (8 300)

Balance 30 June

34 225

29 396

167 983

179 803

12 287

9 959

214 495

219 158

Refer to Note 7 in relation to Transitional adjustments

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Cash Flow Reconciliation

Reconciliation of operating surplus/(deficit) to net cash provided by operating activities:
Net surplus/(deficit) 14 682 24 503
Revenues from government - (1 695)
Other revenue (Discovered Assets) (1 851) -
Depreciation/Amortisation 11 953 12 644
(Profit)/Loss on sale of non-current assets 837 3,364
Assets write down 16 299 3 707
Resources received free of charge - 1 695
Changes in assets/liabilities:
Decrease/(increase) in receivables (1 673) ( 276)
Decrease/(increase) in accrued revenue (2 214) ( 469)
Decrease/(increase) in inventories 387 544
Decrease/(increase) in other assets 2 411 1 090
(Decrease)/increase in other debt 2,147   —
(Decrease)/increase in payables 4 268 4 089
(Decrease)/increase in employee provisions ( 825) 2 501
(Decrease)/increase in unearned income ( 520) 1 323
Net cash provided by operating activities 45 901 53 020

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Appropriations

Annual Appropriations for Departmental Items (Price of Outputs) 2000-0
$'000
1999–00
$'000
Add Appropriation Acts Nos 1 & 3 credits:
Section 7 - Act 1—basic appropriation (Budget) 186,735 181,992
Section 7 - Act 3—basic appropriations 3,747 3,518
Total Current Appropriation Acts 190,482 185,510
Add FMA Act:
s30A appropriations (GST recoverable) 4,717 0
s31 appropriations 18,594 14,225
Total appropriated in the year 213,793 199,735
Balance brought forward from previous period 36,054 0
Total appropriations available for payment 249,847 199,735
Expenditure for the period 213,744 163,681
Balance of appropriations (unspent) for outputs at 30 June carried to next period 36,103 36,054

Annual Appropriation for Departmental Capital Items

  Equity Injections Carryovers Total
2000–01
$'000
1999–00
$'000
2000–01
$'000
1999–00
$'000
2000–01
$'000
1999–00
$'000
Appropriation Acts No 2 & 4
Section 10—Act No 2 4,151 5,974 0 6,000 4,151 11,974
Section 10—Act No 4 678 0 0 17,422 678 17,422
Total appropriated in the year 4,829 5,974 0 23,422 4,829 29,396
Balance available at 1 July brought forward from previous period 0 0 0 0 0 0
Total appropriations available for payment 4,829 5,974 0 23,422 4,829 29,396
Payments during the year 4,829 5,974 0 23,422 4,829 29,396
Balance of appropriations carried to next period 0 0 0 0 0 0

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Major Agency Revenue and Expenses by Outcome

OUTCOME 1
Output/Output Group 1 Output/Output Group 2 Output/Output Group 3 Output/Output Group 4 Total
Actual $('000) Actual $('000) Actual $('000) Actual $('000) Actual $('000) Budget $('000)
Operating revenues
Revenue from Government 80,920 22,809 3,677 83,291 190,697 186,735
Revenue from Independent Sources 5,542 1,534 219 13,288 20,583 10,077
Total operating revenues 86,462 24,343 3,896 96,579 211,280 196,812
Operating expenses
Employee expenses 42,398 11,376 1,916 13,085 68,775 67,007
Supplier expenses 34,961 10,533 1,704 39,023 86,221 78,200
Other expenses 6,103 2,323 305 32,871 41,602 23,586
Total operating expenses 83,462 24,232 3,925 84,979 196,598 168,793

Note:

  1. Budget estimates as per 2000–01 Portfolio Budget Statements in accordance with the FMO's. Please note this is inconsistent with all other references to "Budget" in the financial statements, which refer to Portfolio Additional Estimates Statements
  2. The methodology adopted is consistent with the 2001–02 Portfolio Budget Statements and involves management estimates of percentage of expenditure and revenue attributable to each Output Group.
  3. The Capital Use Charge, although reflected in Revenue from Government, it is not reflected in the Total Expenses in accordance with accounting policy.

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Executive Remuneration

The number of executives who received or were
due to receive total remuneration of $100,000 or more:
$100 000 to $110 000 1 4
$110 001 to $120 000 3 6
$120 001 to $130 000 2 6
$130 001 to $140 000 5 6
$140 001 to $150 000 1 6
$150 001 to $160 000 13 4
$160 001 to $170 000 6 2
$170 001 to $180 000 1 2
$180 001 to $190 000 1 1
$190 001 to $200 000 2
$200 001 to $210 000 1
$210 001 to $220 000   —
$230 001 to $240 000 1
$330 001 to $340 000 1   —
38 41
The aggregate amount of total remuneration of Executives shown above: $5 975 268 $5 843 742
The aggregate amount of separation and redundancy payments
during the year to Executives shown above: $315 510 $137 383
In prior years, this note reported on the number of executive positions earning total remuneration of $100,000 or more.
In 2000–2001, the note has been revised to report on the remuneration accruing to individual executives. Comparitive information has been adjusted accordingly.
A determination in respect of performance pay of the Chief Executive had not been made at the time of finalisation of these statements.

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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 (1999–00: $215 000).

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

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Act of Grace Payments and Waivers and Defective Administration Scheme

No Act of Grace Payments were made during the reporting period.
No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. $ - $10,000.00
No payments were made under the Defective Administration Scheme during the reporting period.

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Average Staffing Levels

Average staffing levels for the Agency in 2000–2001 were 971 (1999–2000 : 971).

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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 14 Deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues.
The Department invests funds at call with a commercial bank.
Receivables for goods and services
8A 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 (1999–2000: 30 days).
Investments 8B Term deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues.
The Department invests term deposits with a commercial bank.
Accrued revenue Revenues are recognised as the Department becomes entitled to the revenue. Accrued revenue reflects $2.5m of an insurance recovery following the loss of an asset due to fire damage.
Financial Liabilities
Financial liabilities are recognised when a present obligation to another party arises and the amount of the liability can be reliably measured.
Lease incentives
10
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 of the liability for financial leases and against the rental expense for operating leases. The Department has received the following lease incentives: a rent-free period on the transfer of a property operating lease to the Department in June 1999 contributions towards the cost of fitting-out two buildings, August and November 2000
Surplus lease Space Liability 12B When a lease is non-cancellable and future payments are for surplus space, a liability and an expense shall be recognised.
At the reporting date, the Department had surplus lease space liability with terms averaging 3 years and a maximum term of 5 years. The incremental borrowing rate used averaged 5.63%. The lease assets secure the lease liabilities.
Trade creditors 12A 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).
All creditors are entities that are not part of the Commonwealth legal entity. Settlement is usually made net 30 days.

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Interest Rate Risk

Financial Instrument Notes Floating Interest
Rate
Fixed Interest Rate Non-
Interest
Bearing
Total
Weighted
Average
Effective
Interest Rate
1 year or less 1 to 2 years 2 to 5 years > 5 years
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
%
99-00
%
Financial
Assets
Cash 3,781 5,232 3 781 5 232 2 2
Receivables 8A 3 866 1 549 3 866 1 549 n/a n/a
Investments 8B 33 000 31 500 33 000 31 500 5 7
Accrued
Revenue
2 980 766 2 980 766 n/a n/a
Total
Financial
Assets
36 781 36 732 6 846 2 315 43 627 39 047
(Recognised)
Total Assets 252 504 252 718
Financial Liabilities
Suppliers 11B 11,746 7,478 11 746 7 478 n/a n/a
Unearned
income
11C 716 527 716 527 n/a n/a
Total
Financial
Liabilities
12,462 8,005 12 462 8 005
(Recognised)
Total
Liabilities
38 009 34 426

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Net Fair Values of Financial Assets and Liabilities

Note 2000–2001 1999–2000
Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Financial Assets
Cash at Bank 3781 3 781 5 232 5 232
Receivables for goods and services 8A 3 866 3 866 1 549 1 549
Investments 8B 33 000 33 000 31 500 31 500
Accrued Revenue 2 980 2 980 766 766
Total Financial Assets 43 627 43 627 39 047 39 047
Financial Liabilities
Suppliers 11B 11 746 11 746 7478 7 488
Unearned income 11C 716 716 527 527
Total Financial Liabilities 12 462 12 462 8 005 8 015

Financial Assets

The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial Liabilities

The net fair values of the surplus lease space and lease incentive liabilities are based on discounted cash flows using current interest rates for liabilities with similar risk profiles.

The net fair values for trade creditors are approximated by their carrying amounts.

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Credit Risk Exposures

The Department's maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Performance.

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.

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Taxation Revenue

2000–2001
$'000
1999–2000
$'000

Administered Levies, Fees and Fines

Levies 138 123 121 268
Licence and registration fees 28 291 23 566
Fines 2 784 1 650
Royalties 717 1 283

169 915

147 767

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Administered Revenues from Government

Transfers from Official Public Account—Cash 2 693 850 2 463 148
Transfers from Official Public Account—Non-Cash 4 246 5 943
2 698 096 2 469 091
Movement in Appropriation Receivable—Increase/(Decrease) (40 503) 109 825
Total 2 657 593 2 578 916

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Administered Sales of Goods and Services

Sales of vehicle compliance plates 7 192 7 262
Other services 46 111
Total 7 238 7 373

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Administered Interest

Interest from other governments on state and territory loans 12 671 13 072
Interest from other sources:
Commonwealth authorities 5 9
Total 12 676 13 081

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Administered Dividends

Commonwealth Authorities 45 850 15 221

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Other Administered Revenue

Rental from leased properties 1 213 1 219
SIFC payable write-back 1 925
Other 4 224 4 320
Total 5 437 7 464

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Administered Depreciation and Amortisation

Depreciation of property, plant and equipment 374 262
Amortisation of intangibles 349 370
Total 723 632
The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable assets are as follows:
Buildings 372 259
Infrastructure, plant and equipment 2 3
Intangibles 349 370
Total 723 632
No depreciation/amortisation was allocated to the carrying amounts of other assets.

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Write-Down of Administered Assets

Receivables 217 823 14
Cash 65
Non-financial assets
Write Down of Investment 324 972
Inventory not for re-sale 376
Total

542 860

390

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Net losses from Sale of Administered Assets

Non-financial assets
Land and buildings 51
Total 51

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Administered Subsidies

Tasmanian Freight Equalisation Scheme 68 811 61 221
Bass Strait Passenger Vehicle Equalisation Scheme 15 070 13 119
Remote Air Subsidy Services Scheme 1 484 1 304
Maritime Industry Finance Company Limited - 71 490
Total 85 365 147 134

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Administered Grants

Non-profit institutions 13 463 6 631
Commonwealth Authorities 56 847 52 572
Private sector 9 515 14 660
State and Territory governments 2 275 425 2 208 381
Local governments 41 046 6 684
Overseas entities 1 778 1 527
Total 2 398 074 2 290 455
The nature of the grants are as follows:
Regional services and Local Government 1 464 212 1 362 800
Air transport 11 682 33 058
Land transport 921 042 893 534
Maritime transport 1 138 1 063
Total 2 398 074 2 290 455

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Administered Suppliers

Airport Noise Amelioration Program 39 013 60 659
Land Transport Research & Education 2 642  —
Other 304 2 104
Total 41 959 62 763

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Other

Protection of the Sea 13 909 5 943
Flood Assistance 3 353  —
Stevedoring Costs 475  —
Compensation payments for compulsory acquisition 12 202
17 737 12,202

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Administered Cash

Cash at bank and on hand 529 24 458

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Administered Receivables

Other taxes, fees and fines 6 463 6 309
less : Provision for doubtful debts ( 15) ( 22)
6 448 6 287
Loans to State and Territory Governments 184 787 190 364
less : Provision for waiving of debts  —
184 787 190 364
Other loans 1 600 1 600
less : Provision for doubtful debts (1 600) (1 600)
 —
Special Appropriations 145 514 439 695
Annual Appropriations 10 523 4 170
Proceeds from land sales  —
Other 2 775 3 376
less : Provision for doubtful debts (2 738) (2 738)
37 638
Add: Net GST Receivable 1 499  —
Net Receivables 348 808 641 154
Maturity schedule for loans to State and Territory governments :
within one year 9 617 8 675
one to two years 6 960 6 617
two to five years 20 970 21 295
over five years 147 240 153 777
Total 184 787 190 364
Taxes, Fees and Fines receivables (gross) are aged as follows : 6 448 6 287
Not Overdue
Overdue by:
less than 30 days  —
30 to 60 days  —
60 to 90 days  —
more than 90 days 15 22
Total 6 463 6 309

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Administered Investments

Shares in Commonwealth companies: C'wlth Interest
Australian River Company 100% 37 965 37 965
National Rail Corporation Limited 73% 293 615 293 615
Commonwealth authorities:
Airservices Australia 100% 353 203 378 203
Albury Wodonga Development Corporation 99% 99 783 99 783
Australian Maritime Safety Authority 100% 54 617 59 617
Australian National Rail Commission 100% 340 531
Civil Aviation Safety Authority 100% 18 670 18 670
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%  —
Total 930 624 1 301 155

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—conducts national interstate rail freight operations.
Airservices Australia—provides services to national air transport including air traffic control and navigation facilities, as well as airport firefighting services.
Albury Wodonga Development Corporation—facilitates 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 has been wound up
Civil Aviation Safety Authority—responsible for setting aviation safety standards, registration of aircraft, licensing, and compliance with safety regulations.
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.

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Administered Accrued Revenue

Interest 1,726 2 180
Taxes, fees and fines 5 282 5 204
Oil Pollution Fund 9 708  —
Total 16 716 7 384

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Administered Land and Buildings

Land—at valuation (30 June 1999) 42 500 42 500
Land—at valuation (30 June 2000) 11 919 12 387
Land—at valuation (30 June 2001) 400  —
Total Land 54 819 54 887
Buildings on freehold land—at cost 439 200
439 200
Buildings on freehold land—at valuation (30 June 1998) 19 19
Accumulated depreciation  —
19 19
Buildings on freehold land—at valuation (30 June 2000) 13 364 13 518
Accumulated depreciation (349)  —
13 015 13 518
Buildings on freehold land—at valuation (30 June 2001) 1,502  —
Accumulated depreciation  —
1 502 0
Total Buildings 14 975 13 737
Total Land and Buildings 69 794 68 624
Revaluations were made as at 30 April 2001 in accordance with the progressive revaluation policy stated at Note 2, and were completed by an independent valuer, Mr J Harvey (AAPI) (VAL) (P&M), of the Valuer General's Office. A revaluation decrement of $318,000 for land and buildings was transferred to the asset revaluation reserve. (1999–2000: increment of $7,897,109).

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Administered Infrastructure, Plant and Equipment

Infrastructure, plant and equipment—at cost 12 12
Accumulated depreciation (11) (8)
Total infrastructure, plant and equipment 1 4
Note 27C—Administered Intangibles
Intangibles—phosphate mine licence—at valuation (30 April 2001) 5 000 7 750
Accumulated depreciation (42) ( 739)
Total intangibles 4 958 7 011
Revaluations were made as at 30 April 2001 in accordance with the progressive revaluation policy stated at Note 2, and were completed by an independent valuer, Mr J Harvey (AAPI) (VAL) (P&M), of the Valuer General's Office. A revaluation increment of $2,750,000 for Intangibles was transferred to the asset revaluation reserve.

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Other Administered Assets

Prepayments:
National Highway and Roads of National Importance Program 72,576 73 020
Road Safety Blackspot Program 6 807 5,084
Roads to Recovery Program 116 339  —
Alice Springs to Darwin Railway 55 000  —
Regional Solutions 6 002  —
Canberra Airport Upgrade 5 625  —
Local Government Incentive Program 3 286  —
Other prepayments 870 12 633
266 505 90 737

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Analysis of Property, Infrastructure, Plant, Equipment and Intangibles—Administered

TABLE A—Movement Summary 2000–2001 for all assets irrespective of valuation basis

Item Land
$'000
Buildings
$'000
Total land and buildings
$'000
Infrastructure, plant and equipment
$'000
Intangibles
$'000
TOTAL
$'000
Gross value as at 1 July 2000 54 887 13 737 68 624 12 7 750 76 386
Additions  — 1 837 1 837  —  — 1 837
Revaluations: write-ups/(downs) ( 68) (250) ( 318)  — (2 750) (3 068)
Write-offs  —  —  —  —  —  —
Disposals  —  —  —  —  — 0
Gross value as at 30 June 2001 54 819 15 324 70 143 12 5 000 75 155
Accumulated depreciation/amortisation as at 1 July 2000 n/a  —  — 8 739 747
Depreciation/amortisation charge for assets held 1 July 2000 n/a 368 368 3 349 720
Depreciation/amortisation charge for n/a 4 4  —  — 4
additions  —  —  —  —  — 0
Revaluations n/a ( 23) ( 23)  — (1 046) (1 069)
Write-offs n/a  — 0   -  — 0
Disposals n/a  — 0  —  — 0
Accumulated depreciation/amortisation as at 30 June 2001 n/a 349 349 11 42 402
Net book value as at 30 June 2001 54 819 14 975 69 794 1 4 958 74 753
Net book value as at 1 July 2000 54 887 13 737 68 624 4 7 011 75 639

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Other Administered Payables

Goods and services 16 627 6 844
Unearned income 269  —
Appropriation Payable for GST 1,462  —
18 358 6 844

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Administered Grants Payable

Private Institutions 247  —
State and Territory governments 8 445 21 581
Local governments 72
8 692 21 653

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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  —
Recognise prepayment for grants  —
Total 0 9 732

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Administered Equity

Item
Capital
Accumulated
Results
Administered
Investments
Reserve
Asset
Revaluation
Reserve
Tota
Reserves
TOTAL
EQUITY
2000–2001 1999–2000 2000–2001 1999–2000 2000–2001 1999–2000 2000–2001 1999–2000 2000–2001 1999–2000 2000–2001 1999–2000
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance 1 July 10 569 8 388 676 253 621 201 1 245 637 1 245 637 21 425 13 530 1 267 062 1 259 167 1 953 884 1 888 756
Injection
of Capital
359 2 181 359 2 181
Net change in Administered
net assets
from
operations
(188 009) 250 252 (188 009) 250 252
Amount to Official
Public
Account
(283 316) (204 932) (283 316) (204 932)
Transitional adjustments 9 732 0 9 732
Transfers
to/(from) reserves
340,531 ( 340 531) (342 530) 7 895
Net
Revaluation
Increments/
Decrements
(1 999) 7 895 (1 999) 7 895
Balance
30 June
10 928 10 569 545 459 676 253 905 106 1 245 637 19 426 21 425 924 532 1 267 062 1 480 919 1 953 884

Refer to Note 25 in relation to Transitional adjustments

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Cash Flow Reconciliation

Reconciliation of Cash per Schedule of Administered Assets and Liabilities to Statement of Administered Cash Flows
Cash at year end per Statement of Cash Flows 529 24 458
Schedule of Administered Asset and Liability items comprising above cash:
‘Financial asset-Cash’ 529 24 458
Reconciliation of ‘Net change in administered net assets’ from Schedule of Administered Revenues and Expenses to net cash provided by operating activities:
Net increase/(decrease) in administered net assets after transfers between administered functions (473 324) 45 320
Cash to OPA (relates to Financing Activities) 51 358  —
Depreciation 723 632
Net write down of assets 544 859 390
(Profit)/Loss on sale of property, plant and equipment 51
Other revenue (discovered assets)  —
Changes in assets/liabilities:
Increase/(Decrease) in supplier provisions and payables (31 089) 59 429
(Increase)/Decrease in prepayments (175 766) (11 028)
(Increase)/Decrease in accrued revenue (9 332) ( 320)
(Increase)/Decrease in receivables 68 954 (83 826)
Net cash from operating activities (24 769) 10 648

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Transfers to Official Public Account

Cash transfers 230 981 154 293
Non—cash transfers 52,335 50 639
Transfers to Official Public Account 283 316 204 932

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Remote 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 lessee's 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 financier's 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 2000–01 1999–2000
$ $ $
Northern Territory
Northern Territory (Self-Government)
Government Act 1978 s47A 148,100,000 142,100,000 153,433,100

Maritime Industry Reform

On 18 August 1998 the Commonwealth provided a guarantee to cover borrowings made by the Maritime Industry Finance Company (MIFCo) to finance redundancy related payments in the stevedoring and maritime industries. MIFCo's borrowing facility, negotiated with its bankers, was $220 million, of which approximately $193 million had been drawn down as at 31 March 2000. The Stevedoring Levy (Collection) Act 1998 has been amended to increase the expenditure cap in the in the Legislation from $250 million to $300 million.

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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Act of Grace Payments and Waivers and Defective Administration Scheme

One Act of Grace Payment was made during the reporting period. $100,000 $10,000
No waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997.
No waivers of amounts owing to the Commonwealth were made pursuant to the acts administered.
No payments were made under the Defective Administration Scheme during the reporting period.

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Administered Appropriations

Annual Appropriations for Administered Expense Items—2000–2001

OUTCOME—LINKING AUSTRALIA THROUGH TRANSPORT AND REGIONAL SERVICES

Administered Expense Other Administered Expense Specific Purpose
Payment Expenses
2000-0
$'000
1999–00
$'000
2000-0
$'000
1999–00
$'000
2000-0
$'000
1999–00
$'000
Appropriation Acts credits

 

Basic appropriations specified Acts 1/2 (budget) 234,431 114,171  — 145,937 59,414 29,555

 

Basic appropriations specified Acts 3/4 57,254 23,562 26,406 315 44,750
Total Current Appropriation Acts 291,685 137,733 172,343 59,729 74,305
Add: FMA Act
s30A appropriations (GST recoverables) 6,445  —  — 506  —
Total appropriated in the year 298,130 137,733 172,343 60,235 74,305
Less: amounts lapsed by Ministerial determination1 (85 783) (29 337) (35 691) (2 253) (25 404)
Balance available at 1 July brought forward from previous year 1,183 4,928  —
Total appropriations available for payment 213,530 108,396 4,928 136,652 57,982 48,901
Payments during the year (203 150) (107 213) (4 785) (131 724) (57 424) (48 901)
Balance of appropriations carried to next period 10,380 1,183 143 4,928 558

Annual Appropriations for Administered Capital Items—2000–2001

2000-0
$'000
1999–00
$'000
Appropriation Acts No 2 & 4
Section 10—Act No 2 (Budget) 3,500 2,100
Section 10—Act No 4 29 9,200

Total appropriated in the year

3,529 11,300
Balance available at 1 July brought forward from previous period 316 0

Total appropriations available for payment

3,845 11,300
Payments during the year ( 614) (10 274)
Balance unspent 3,231 1,026
Appropriations lapsing1 ( 61) (710)

Balance of appropriations carried to next period

3,170 316

1 The Appropriations lapsing figure is an estimation made at financial year end.

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Special Appropriations

Expenditure under Special Appropriations for Administered Items—2000–2001

Special Appropriation (Act) 2000–01
$'000
1999–00
$'000
Australian Land Transport Development Act 1988
Budget 875,707 807,101
Actual Expenditure (875 443) (855 893)
Interstate Road Transport Act 1985
Budget 27,100 20,000
Actual Expenditure (26 570) (21 805)
Local Government (Financial Assistance) Act 1995
Budget 1,322,493 1,269,585
Actual Expenditure (1322 493) (1264 536)
Roads to Recovery Act 2000
Budget 150,000  —
Actual Expenditure (150 000)  —
Protection of the Sea (Oil Pollution Compensation Fund) Act 1993
Budget 5,900 4,600
Actual Expenditure (13 909) (5 943)
Stevedoring Levy Collection Act 1998
Budget 29,940 24,980
Actual Expenditure (29 940) (28 259)

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Special Accounts

2000–2001 1999–2000
$'000 $'000
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 2
add: appropriations credited during the year 875 443 855 893
Total available funds for expenditure 875 445 855 895
less: expenditure ( 875 443) ( 855 893)
Appropriations available at year end 2 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 & commerce
Balance as at 1 July 0 22
add: appropriations credited during the year 26 570 21 805
Total available funds for expenditure 26 570 21 827
less: expenditure ( 26 570) ( 21 827)
Appropriations available at year end
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 59,097
add: appropriations credited during the year 0 61 657
Total available funds for expenditure 59 097 61 657
less: expenditure ( 6 225) ( 2 560)
Appropriations available at year end 52 872 59 097

2000–2001 1999–2000
$'000 $'000
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 221 131 230 004
add: appropriations credited during the year
Total available funds for expenditure 221 131 230 004
less: expenditure ( 56 301 ( 8 873)
appropriation withdrawn ( 20 000)  —
Appropriations available at year end 144 830 221 131

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 47
add: receipts from third parties
Available funds for allocation 47 47
less: expenditure (47)  —
Balance as at 30 June 47
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 477 477
add: receipts from third parties
Available funds for allocation 477 477
less: expenditure ( 107) 0
Balance as at 30 June 370 477
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 1 332 1 128
add: receipts from third parties 7 321 1 958
Available funds for allocation 8 653 3 086
less: expenditure (7 777) (1 754)
Balance as at 30 June 876 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 517 525
add: receipts from third parties 745 1 696
Available funds for allocation 1 262 2 221
less: expenditure ( 589) (1 704)
Balance as at 30 June 673 517

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Administered Programmes

Administered Programme Group 1
Services to Communities Administered on Behalf of the Commonwealth
Actual
Revenue Expenses
Services to Communities 2000–2001
$'000
2000–2001
$'000
Implementation of Noise Amelioration for Adelaide Airport 2 101 1 851
Implementation of Noise Amelioration for Sydney Airport 37 535 37 204
Subsidy for Transition to Location-Specific Pricing for airport control towers 7 000 7 000
Remote Air Services Subsidy Scheme 1 484 1 484
Sydney West Airport—Land Acquisition and Works 165 165
Restructuring of Australian National Railways Commission (AN) 2 509 327 489
Oil Pollution Compensation Fund 13 909 13 909
Rural Communities Program 4 493 4 167
Rural Plan 2 475 4 809
Understanding Rural Australia 726 476
Rural Domestic Violence 109 42
Regional and Rural Development Grant 257 115
Regional and Rural Research Information and Data 77 13
Rural Transaction Centres 58 951
Foundation for Rural and Regional Renewal 37 37
Regional Solutions 8 593 2 591
Special Structural Adjustment Package for the South West Forrest Region of WA
Compensation Payment to SACL for the sale of Sydney Airport land
Flood Recovery Fund 1 115 954
Flood Assistance Package—Small Business Grants 3 204 3 353
Newcastle Structural Adjustment Fund 735 735
Act of grace payment 100 100
86 624 465 445
Grants to States/Territories and Local Government    
Road Safety Black Spot Program 40 918 39 194
Local Government Incentive Program 4 046 760
Local Government Development Program 440 625
Local Govt Financial Assistance Grants 1 328 013 1 328 013
Pmt to ACT—Assist water & sewerage services 8 271 8 271
Pmt to ACT—comp National Capital Influence 20 572 20 572
Regional Flood Mitigation Program 6 416 6 874
1 408 676 1 404 309
Administered Programme Group 2
Services to Industry Administered on Behalf of the Commonwealth
Services to Industry Administered on behalf of the Commonwealth
International Civil Aviation Organisation—contribution 1 508 1 508
OECD Road Transport—contribution 30 32
International Maritime Organisation—contribution 237 237
National Road Transport Commission 1 239 1 239
Upgrade of Mainline Interstate Railway Track 36 580 46 099
Payments to MIFCo. 475 475
Tasmanian Freight Equalisation Scheme 68 811 68 811
Bass Straight Passenger Vehicle Equalisation Scheme 15 070 15 070
Supermarket to Asia 650 900
Runway upgrade for the Canberra Airport 8 800 3 175
Airport Lessees—Reimbursement of Parking Fines 27
133 427 137 546
Grants to States/Territories and Local Government      
National Highway and Roads of National Importance 834 525 834 925
Interstate Road Transport Fees 26 615 26 615
Tasmanian Rail Track Upgrading 1 000 1 000
Alice Springs to Darwin Rail Link (Non—Federation Fund) 10 000
Federation Fund Projects 0 176 090
Upgrade of Rockhampton Airport Runway 6 000 6 000
Roads to Recovery 150 000 33 661
1 028 140 1 078 291
   
Grand Total for all Administered Programmes 2 656 867 3 085 591
(1) (2)

Items not directly attributable to programmes, but included in the Schedule of Administered Revenues & Expenses:

(1) revenue for depreciation (723)
(2) expenses arising from write off of financial assets (405) & depreciation (723)

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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
31
Deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues. The Department invests term deposits and funds at call with a commercial bank. Monies remaining in the Administered's bank accounts are swept into the Official Public Account nightly and interest is earned on the daily balance at rates based on money market call rates. Rates on these investments have averaged 9% for the year (1999–00: 7%). Interest is paid at month end.
Receivables for goods and services
26B 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 (1999–00: 30 days).
Investments 26C Administered Investment in other Commonwealth agencies are valued at the aggregate of the Commonwealth's share of the net assets or net liabilities of each entity, fixed as at 30 June 1997, as adjusted for subsequent capital injections or withdrawals.
Dividends may be received from investments. Capital repayments are accounted for as a reduction in the carrying value of the investment.
Accrued revenue
26D
Interest is credited to revenue as it accrues. Interest on term deposits is on maturity and overnight deposits is paid quarterly. 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.
Loans
26B
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 not likely. In rare circumstances, loan repayment may be waived. Interest is credited to revenue as it accrues.
Loans are made under contract. No security is generally required. Interest rates are fixed. Loan repayments are generally made annually. Some loan repayments are required bi-annually and loan payments are split between principal and interest.
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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 arises and the amount of the liability can be reliably measured.
Trade creditors 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).
All creditors are entities that are not part of the Commonwealth legal entity. Settlement is usually made net 30 days.
Grants Payable
25B
Grant liabilities are measured at nominal value. Grant liabilities are recognised to the extent that:
  1. the services required to be performed by the grantee have been performed;
  2. or the grant eligibility criteria have been met.
Grant payments are normally required to be made as specified by each individual grant agreement.

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Administered Interest Rate Risk

Financial Instrument Notes Floating Interest
Rate
Fixed Interest Rate Non-
Interest
Bearing
 
Total  Weighted
Average
Effective
Interest Rate
1 year or less 1 to 2 years 2 to 5 years > 5 years
Financial Assets 00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
$'000
99-00
$'000
00-01
%
99-00
%
Cash 26A 529 24 458 529 24 458 n/a n/a
Fees Receivables 26B 6 485 6 925 6 485 6 925 n/a n/a
Loans to
State and Territory
26B 9 617 8 675 6 960 6 617 20 970 21 295 147 240 153 777 184 787 190 364 9.00 7.00
Govts
Other loans 26B n/a n/a
Investments 26C 930 624 1 301 155 930 624 1 301 155 n/a n/a
Accrued revenues 26D 16 716 7 384 16 716 7 384 n/a n/a
Total
Financial
Assets
9 617 8 675 6 960 6 617 20 970 21 295 147 240 153 777 954 354 1 339 922 1 139 141 1 530 286
(Recognised)
Total
Assets
2 140 527 2 140 527
Financial Liabilities
Subsidies 129 966 158 146 129 966 158 146 n/a n/a
Grants 28B 8 692 21 653 8 692 21 653 n/a n/a
Other 28A 18 358 6 844 18 358 6 844 n/a n/a
Total
Financial
Liabilities
157 016 186 643 157 016 186 643
(Recognised)
Total Liabilities 157 016 186 643
Liabilities
not
recognised
Contingencies n/a n/a
Guarantee to authority n/a n/a
Other guarantees n/a n/a
Indemntities * * * * n/a n/a
Total
Financial
Liabilities
(Unrecognised)
*Unquantifiable

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Net Fair Values of Administered Financial Assets and Liabilities

Financial Assets
Cash 26A 529 529 24 458 24 458
Receivables 26B 6 485 6 485 6 925 6 925
Loans to State and Territory Govts 26B 184 787 184 787 190 364 128 669
Investments 26C 930 624 930 624 1 301 155 1 301 155
Accrued revenues 26D 16 716 16 716 7 384 7 384
Total Financial Assets 1 139 141 1 139 141 1 530 286 1 468 591
Financial Liabilities (Recognised)
Subsidies 129 966 129 966 158 146 158 146
Grants 28B 8 692 8 692 21 653 21 653
Other 28A 18 358 18 358 6 844 6 844
Total Financial Liabilities (Recognised) 157 016 157 016 186 643 186 643

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Net Fair Values of Financial Assets and Liabilities

Financial assets

The net fair values of cash and non-interest-bearing monetary financial assets approximate their carrying amounts.

Financial liabilities

The net fair values of surplus space and lease incentives liabilities are based on discounted cash flows using current interest rates for liabilities with similar risk profiles. (Where the liability is on a floating rate of interest, the method returns the principal amount.)

The net fair values for trade creditors are short-term in nature, and are approximated by their carrying amounts.

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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 Statements 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.

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