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Note 20 : Administered Items

Note 20A - Revenues Administered on Behalf of Government

for the year ended 30 June 2002

2001-2002

2000-2001

$'000

$'000

Revenues

Levies, fees and fines

Taxation

Levies

240 204

138 123

Fees

32 479

28 668

Fines

2 736

2 784

Royalties

448

717

275 867

170 292

Interest

LoansState and Territory Governments

13 035

12 671

LoansCommonwealth Entities

-

5

13 035

12 676

Dividends

Commonwealth entities

11 400

22 100

Associated companies

22 110

23 750

33 510

45 850

Sales of goods and services

Provision of goods and servicesOther

6 844

7 238

6 844

7 238

Other Revenue

Industry Contributions

16 090

-

Lease

1 545

1 213

Other

4 711

3 847

22 346

5 060



Total Revenues Administered on Behalf of Government

351 602

241 116



Note 20B - Expenses Administered on Behalf of Government

for the year ended 30 June 2002

2001-2002

2000-2001

$'000

$'000

Expenses

Grants

Non-profit institutions

54 435

13 463

State and Territory Government

2 815 465

2 275 425

Local Government

419 852

41 046

Overseas Entities

2 322

1 778

Private Sector

60 870

9 515

Related EntitiesCommonwealth Authorities

13 015

56 847

3 365 959

2 398 074

Subsidies

Payable to related entities

3 367

1 484

Tasmanian Freight Equalisation Scheme

71 860

68 811

Other

17 054

15 070

92 281

85 365

Suppliers

Supply of Goods and Services

52 714

41 959

Other

4 123

17 737

56 837

59 696

Depreciation and Amortisation

660

723

Write-down of assets

Non Financial Assets

1 147

-

Receivables

6 908

217 823

Cash

-

65

Investments

-

324 972

8 055

542 860



Total Expenses Administered on Behalf of Government

3 523 792

3 086 718



Note 20C - Assets Administered on Behalf of Government

as at 30 June 2002

2001-2002

2000-2001

$'000

$'000

Financial Assets

Cash

Agency

16

529

Receivables

Fees and Fines

6 831

6 463

Less: Provision for doubtful debts

(180)

(15)

6 651

6 448

Loans

State and Territory Governments

197 205

184 787

Other

8 100

1 600

Less: Provision for waiving of debts

(8 100)

(1 600)

197 205

184 787

Other Receivables

Levies

14 500

-

Other

12 614

2 775

27 114

2 775

Provision for Doubtful Debts

(2 771)

(2 738)

Goods and Services Tax

2 951

1 499

Total

231 150

192 771

Investments

Shares in Commonwealth companies

Australian River Company

-

37 965

National Rail Corp

-

293 615

-

331 580

Commonwealth Authorities

Airservices Australia

353 203

353 203

Albury Woodonga Development Corp

99 783

99 783

Australian Maritime Safety Authority

54 617

54 617

Australian National Rail Commission

-

-

Civil Aviation Safety Authority

18 670

18 670

Federal Airports Corporation

-

-

National Road Transport Commission

200

200

Australian Maritime College

58 518

58 518

Stevedoring Industry Finance Committee

14 053

14 053

Maritime Industry Finance Company Limited

-

-

599 044

599 044

Total

599 044

930 624

Accrued Revenue

Interest A

1 664

1 726

Oil Pollution Fund

7 443

9 708

Taxes, Fees and Fines

2 660

5 282

Dairy Regional Assistance Programme

3 389

-

Total

15 156

16 716

Other

Prepayments

-

266 505

Non Financial Assets

Land and Buildings

Land B

58 305

43 191

Buildings B

27 470

26 603

Total

85 775

69 794

Infrastructure, Plant and Equipment

Plant and Equipment

-

1

Total

-

1

Intangibles

Intangibles

4 670

4 958

Total

4 670

4 958


Total Assets Administered on Behalf of Government

935 811

1 481 898


Note A -


Net Interest Accrued consists of $1,882,880.27 total interest accrued and a provision of $219,045.21

Note B -

Prior year comparatives adjusted to reflect reallocation of current year land and buildings

TABLE A - Movement Summary 2001-2002 for all assets irrespective of valuation basis

Item

Land

Buildings

Total land
&
buildings

Infrastructure,
plant and equipment

Intangibles

TOTAL

$'000

$'000

$'000

$'000

Gross value as at

1 July 2001

43 191

26 952

70 143

12

5 000

75 155

Additions

-

-

-

-

-

-

Revaluations: write-up/

(down)

15 114

2 379

17 493

-

-

17 493

Write-offs

-

(1 152)

(1 152)

-

-

(1 152)

Disposals

-

-

-

-

-

-

Gross value as at

30 June 2002

58 305

28 179

86 484

12

5 000

91 496

Accumulated depreciation/

amortisation as at

1 July 2001

-

349

349

11

42

402

Depreciation/ amortisation

charge

-

371

371

1

288

660

Additions

-

-

-

-

-

-

Revaluations: write-up/

(down)

-

(6)

(6)

-

-

(6)

Write-offs

-

(5)

(5)

-

-

(5)

Disposals

-

-

-

-

-

-

Accumulated depreciation/

amortisation as at

30 June 2002

-

709

709

12

330

1 051

Net book value as at

30 June 2002

58 305

27 470

85 775

-

4 670

90 445

Net book value as at

1 July 2001

43 191

26 603

69 794

1

4 958

74 753



Note 20D - Liabilities Administered on Behalf of Government

as at 30 June 2002

2001-2002

2000-2001

$'000

$'000

Payables

Suppliers

Trade Creditors

8 899

16 627

Grants

State and Territory Governments

22 122

8 445

Private sector

1 571

-

Non-Profit Institutions

1 601

247

25 294

8 692

Subsidies

103 348

129 966

Other

Unearned Revenue

-

269

Appropriation for GST

2 854

1 462

2 854

1 731

Total Payables

140 395

157 016

Total Liabilities Administered on Behalf of Government

140 395

157 016



Note 20E - Administered Cash Flows

for the year ended 30 June 2002

2001-2002

2000-2001

$'000

$'000

OPERATING ACTIVITIES

Cash received

TAXATION

Other Taxes, Levies, fees and fines

205 734

112 956

Total taxation

205 734

112 956

NON-TAXATION

Sales of goods and services

6 484

7 792

Interest & Dividends

46 389

58 981

Cash from Official Public Account

3 259 856

2 727 597

Other

22 346

4 285

Total non-taxation

3 335 075

2 798 655

Total cash received

3 540 809

2 911 611

Cash used

Subsidies

118 899

113 545

Grants

3 082 896

2 585 694

Suppliers

60 284

33 284

Cash to Official Public Account

276 701

184 623

Goods and Services Tax paid

80

1 497

Other

4 240

17 737

Total cash used

3 543 100

2 936 380

Net cash from/(used by) operating activities

(2 291)

(24 769)

INVESTING ACTIVITIES

Cash received

Equity repayments

-

40 552

Repayment of loans

9 737

5 936

Proceeds from sales of land, PP&E and intangibles

-

-

Total cash received

9 737

46 488

Cash used

Purchase of property, plant and equipment

-

685

Advances made

9 692

359

Cash to Official Public Account

-

46 358

Total cash used

9 692

47 402

Net cash from/(used by) investing activities

45

(914)

FINANCING ACTIVITIES

Cash received

Cash from Official Public Account

341

359

GST Appropriations

14 688

8 503

Total cash received

15 029

8 862

Cash used

Return of GST Appropriations to OPA

13 296

7 043

Total cash used

13 296

7 043

Net cash from/(used by) financing activities

1 733

1 819

Net increase/(decrease) in cash held

(513)

(23 864)

Cash at the beginning of reporting period

529

24 458

Write off

-

(65)

Cash at the end of reporting period

16

529



Note 20F - Administered Commitments

as at 30 June 2002

2001-2002

2000-2001

$'000

$'000

SCHEDULE OF COMMITMENTS DISCLOSURE

BY TYPE

CAPITAL COMMITMENTS

Land & Buildings

-

-

Infrastructure, Plant and Equipment

-

-

Investments

-

-

Intangibles

-

-

Other Capital Commitments

-

-

Total Capital Commitments

-

-

OTHER COMMITMENTS

Operating Leases

-

-

Project Commitments

3 318 768

3 556 900

Research & Development

-

-

Goods & Services

5 127

-

Other Commitments

41 246

165

Total Other Commitments

3 365 141

3 557 065

COMMITMENTS RECEIVABLE

1 538

2 462

Net Commitments

3 363 603

3 554 603

BY MATURITY

All Net Commitments

One year or less

1 109 060

1 138 830

From one to five years

2 254 543

2 409 523

Over five years

-

6 250

Net Commitments

3 363 603

3 554 603

Operating Lease Commitments

One year or less

-

-

From one to five years

-

-

Over five years

-

-

Net Commitments

-

-



Note 20G - Administered Contingencies

as at 30 June 2002

2001-2002

2000-2001

$'000

$'000

CONTINGENT LOSSES

Claims for damages/costs

-

2 799

Other

-

-

Total Contingent Losses

-

2 799

CONTINGENT GAINS

Claims for damages/costs

-

-

Net Contingencies

-

2 799

UNQUANTIFIABLE ADMINISTERED CONTINGENCIES

Australian Capital Territory (ACT) funding agreements

As at 30 June 2002 the Commonwealth is party to ongoing funding agreements with the Australian Capital Territory (assistance for water and sewerage, and compensation for national capital influences). The future liabilities of these agreements cannot be reliably measured.

Australian Maritime Safety Authority (AMSA) litigation

AMSA is subject to a professional negligence claim seeking unspecified damages arising from a search and rescue incident involving loss of one life. The flotation device manufacturer and the retailer are second and third defendants. The claim is being defended, although it is not possible to estimate the amounts of any eventual payments that may result.

Australian Maritime Safety Authority (AMSA) incident costs

In the normal course of operation, AMSA is responsible for the provision of funds necessary to meet the clean up costs arising from ship-sourced marine pollution. The Commonwealth has agreed that AMSAs responsibility should be limited to a maximum expense of $10million, and has arranged a stand by loan facility for this purpose. The Commonwealth will provide funds in the event that costs exceed the limit. In all circumstances, the Authority is responsible for making appropriate efforts to recover the costs of any such incidents.


Note 20H - Administered Remote Contingencies

Aviation War Risk Insurance indemnities for Australian carriers, airports and service providers

Following terrorist attacks in the United States on 11 September 2001, regular insurance cover for claims arising out of war and terrorism was withdrawn or significantly limited, placing global aviation operations at risk. The Commonwealth agreed to provide third party war indemnity up to US$5 billion per aircraft per event. As at 30 June 2002 the Department holds 28 Deed Polls of Indemnity for aviation war risk cover for airlines, airports and other aviation service providers. The value of each indemnity is stated in either Australian dollars, United States dollars or Pounds Sterling. The total value of the indemnities is $27.235 billion Australian. Values of indemnities in foreign currencies have been converted into Australian dollars using the exchange rate at 30 June 2002.

Indemnities
in $A

Indemnities
in $US

Indemnities
in UK
Pound Sterling

Total Indemnities in $A.1

No.

($000)

No.

($000)

No.

($000)

No.

($000)

Airlines

1

180 000

5

3 700 000

0

0

6

6 730 992

Airports

12

11 500 000

1

50 000

0

0

13

11 588 527

Other Service and

Facility Providers

5

2 966 000

3

2 750 000

1

400 000

9

8 916 061

Total

18

14 646 000

9

6 500 000

1

400 000

28

27 235 580


1 Foreign currencies converted at 30 June 2002.

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 limited step-in rights for the financiers in circumstances where the Airport Lease is terminated. Assuming the financiers step-in rights are not triggered, the potential liability of the Commonwealth can vary under the Tripartite Deed, depending on whether the Airport Lease is able to be sold on to a third party or not.

The Commonwealths potential liability to the lessees financiers is limited to the value received for the affected Airport Lease or the valuation of the airport site. Where the Commonwealth is able to sell on the Airport Lease, secured financiers have a limited ability to recover their loans from funds obtained by the Commonwealth from selling on the Airport Lease, subject to higher ranking claims being met first. Where the Airport Lease is not sold on, the Commonwealth is required to obtain a valuation of the airport site that will determine the limit for a repayment (or partial repayment) of financiers loans, again subject to higher ranking claims being met. If the Commonwealth enters into possession of an Airport site, it would seek to recover its costs from a number of sources, including airport revenues and the airport lessee Company, in addition to funds obtained from selling on the Airport Lease.

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

On 24 September 1998, the Commonwealth assumed responsibility for all remaining assets, liabilities and contracts of the FAC on the wind-up of the Corporation. All of the known liabilities have been settled, however there is a risk that undisclosed liabilities remain.

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. As at 30 June 2002, no claims have been made.

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 advise 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 the liability.


Note 20I - Administered Investments

Cwlth

2001-2002

2000-2001

Interest

$000

$000

Shares in Commonwealth companies:

Australian River Company

-

-

37 965

National Rail Corporation Limited

-

-

293 615

Commonwealth authorities:

Airservices Australia

100%

353 203

353 203

Albury Wodonga Development Corporation

99%

99 783

99 783

Australian Maritime Safety Authority

100%

54 617

54 617

Australian National Rail Commission

100%

-

-

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

599 044

930 624

The principal activities of each of the investments of controlled entities listed above are as follows:

Australian River Companyestablished to manage residual matters and obligations remaining after the sale of the maritime shipping activities of the Australian National Line Limited.

National Rail Corporation Limitedconducts national interstate rail freight operations.

Airservices Australiaprovides services to national air transport including air traffic control and navigation facilities, as well as airport firefighting services.

Albury Wodonga Development Corporationfacilitates an orderly sale of the corporations assets, in particular land development holdings.

Australian Maritime Safety Authorityprovides regulation and oversight of Australian shipping; maritime navigation facilities; and search and rescue services.

Civil Aviation Safety Authorityresponsible for setting aviation safety standards, registration of aircraft, licensing, and compliance with safety regulations.

National Road Transport Commissionprovides advice to Australian governments on road transport issues and reform, including safety, uniformity and environmental policies.

Australian Maritime Collegeprovides education and training for the shipping and fishing industries.

Australian Rail Track Corporationmanages access to the national interstate rail track and infrastructure network, as well as train control services.

Stevedoring Industry Finance Committeemanages 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 Limitedprovides financial assistance in connection with the reform and restructuring of the maritime (shipping and stevedoring) industry.

Note 20J - Administered Financial Instruments

a) 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

20C

Deposits are recognised 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 Administereds 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 (2000-01: 9%). Interest is paid at month end.

Receivables for goods and services

20C

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 (2000-01: 30 days).

Investments

20C

Administered Investment in other Commonwealth agencies are valued at the aggregate of the Commonwealths 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

20C

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

20C

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.

Financial liabilities

20D

Financial liabilities are recognised when a present obligation to another party arises and the amount of the liability can be reliably measured.

Trade creditors

20D

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

20D

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; or
  2. the grant eligibility criteria have been met.

Grant payments are normally required to be made as specified by each individual grant agreement.

b) Interest Rate Risk

Financial Instrument

Notes

Floating Interest Rate

Fixed Interest Rate

Non- Interest Bearing

Total

Weighted Average Effective

1 year
or less

1 to 2
years

2 to 5
years

> 5
years

Interest Rate

01-02

00-01

01-02

00-01

01-02

00-01

01-02

00-01

01-02

00-01

01-02

00-01

01-02

00-01

01-02

00-01

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

%

%

Financial Assets

Cash

20C

-

-

-

-

-

-

-

-

-

-

16

529

16

529

n/a

n/a

Fees Receivables

20C

-

-

-

-

-

-

-

-

-

-

30 200

6 485

30 200

6 485

n/a

n/a

Loans to State and

Territory Govts

20C

-

-

5 871

9 617

6 213

6 960

19 479

20970

165642

147240

-

-

197 205

184 787

9

9

Other loans

20C

-

-

-

-

-

-

-

-

-

-

-

-

-

-

n/a

n/a

Investments

20C

-

-

-

-

-

-

-

-

-

-

599044

930624

599044

930624

n/a

n/a

Accrued revenues

20C

-

-

-

-

-

-

-

-

-

-

15156

16716

15156

16716

n/a

n/a

Total Financial Assets

-

-

5 871

9 617

6 213

6 960

19 479

20970

165642

147240

644 416

954354

841621

1 139141

(Recognised)

Total Assets

935 811

1 481898

Financial Liabilities

Subsidies

20D

-

-

-

-

-

-

-

-

-

-

103 348

129 966

103 348

129 966

n/a

n/a

Grants

20D

-

-

-

-

-

-

-

-

-

-

25 294

8 692

25 294

8 692

n/a

n/a

Other

20D

-

-

-

-

-

-

-

-

-

-

11 753

18 358

11 753

18 358

n/a

n/a

Total Financial Liabilities

-

-

-

-

-

-

-

-

-

-

140 395

157 016

140 395

157 016

(Recognised)

Total Liabilities

140 395

157 016

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

c) Net Fair Values of Administered Financial Assets and Liabilities

2001-2002

2000-2001

Total

Aggregate

Total

Aggregate

Carrying

Net Fair

Carrying

Net Fair

Amount

Value

Amount

Value

Note

$'000

$'000

$'000

$'000

Financial Assets

Cash

20C

16

16

529

529

Fees Receivables

20C

30 200

30 200

6 485

6 485

Loans to State and Territory Govts

20C

197 205

197 205

184 787

184 787

Investments

20C

599 044

599 044

930 624

930 624

Accrued revenues

20C

15 156

15 156

16 716

16 716

Total Financial Assets

841 621

841 621

1 139 141

1 139 141

Financial Liabilities (Recognised)

Subsidies

20D

103 348

103 348

129 966

129 966

Grants

20D

25 294

25 294

8 692

8 692

Other

20D

11 753

11 753

18 358

18 358

Total Financial Liabilities (Recognised)

140 395

140 395

157 016

157 016


Note 20K - Administered Act of Grace Payments, Waivers and Defective Administration Scheme

2001-2002

2000-2001

$'000

$'000

One Act of Grace Payment was made during the reporting period

30 774

100 000

No waivers of amounts owing to the Commonwealth were made pursuant

to subsection 34(1) of the Financial Management and Accountability

Act 1997.

-

-

No payments were made under the Defective Administration Scheme

during the reporting period.

-

-