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Notes

Note 2 : Events Occurring after Reporting Date

No material events have occurred after balance date.

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Note 3 : Operating Revenues

2003
$'000
2002
$'000
Note 3A - Revenues from Government
Appropriations for outputs 229 034 212 793
Resources received free of charge 230 215
Total revenues from government 229 264 213 008
Note 3B - Goods and Services
Revenues from Services
Airport/Marine 2 101 1 190
Electricity, water and sewerage 4 631 4 898
Health/Housing 1 179 855
Services provided to other government agencies 1 751 1 829
Other 1 058 1 431
Total sales of services 10 720 10 203
Rendering of services to:
Related Entities 2 500 1 681
External Entities 8 220 8 522
Total rendering of services 10 720 10 203
Note 3C - Interest Revenue
Interest on Deposits 797 2 211
797 2 211
Note 3D - Net Gain from Sale of Assets
Land and Buildings
Proceeds from sale (Disposal) 3 489 3 138
Net book value of assets disposed ( 2 957) ( 3 445)
Net gain / (loss) from disposal of land and buildings 532 ( 307)
Infrastructure, plant and equipment
Proceeds from sale (Disposal) 143 229
Net book value of assets disposed ( 526) ( 300)
Net gain / (loss) from disposal of infrastructure, plant and equipment ( 383) ( 71)
TOTAL proceeds from disposal 3 632 3 367
TOTAL value of assets disposed ( 3 483) (3 745)
TOTAL net gain / (loss) from disposal of assets 149 ( 378)
Note 3E - Other Revenue
Insurance Recoveries 253 126
Rental Income 1 622 1 566
Other 532 3 260
Total 2 407 4 952

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Note 4 : Operating Expenses

2003
$'000
2002
$'000
Note 4A - Employee Expenses
Wages and Salary 63 199 60 428
Superannuation 9 930 8 799
Leave and other entitlements 5 708 3 485
Separation and redundancies 1 695 1 664
Other employee expenses 3 004 1 973
Total employee benefits expense 83 536 76 349
Worker compensation premiums 402 248
Total employee expenses 83 938 76 597
Note 4B - Suppliers Expenses
Goods from external entities 3 051 2 546
Services from related entities 23 372 18 509
Services from external entities 75 269 64 576
Operating lease rentals* 8 553 7 523
Total supplier expenses 110 245 93 153
* These comprise minimum lease payments only
Note 4C - Depreciation and Amortisation
Depreciation
Buildings 2 690 2 270
Infrastructure, property, plant and equipment 7 098 7 011
Total Depreciation 9 788 9 281
Amortization
Leasehold improvements 1 050 839
Intangibles - Computer Software 1 965 1 111
Total Amortisation 3 015 1 950
Total depreciation and amortisation 12 803 11 231
The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable assets are as follows:
Buildings on freehold land 2 690 2 270
Leasehold improvements 1 050 839
Infrastructure, plant and equipment 7 098 7 011
Intangibles 1 965 1 111
Total 12 803 11 231
No depreciation/amortisation was allocated to the carrying amounts of other assets.
Note 4D - Write Down of Assets
Non-financial assets
Land & buildings - 463
Land & buildings - revaluation decrement - 364
Infrastructure, plant and equipment 11 406
Intangibles 2 949 133
Total write down of assets 2 960 1 366
Note 4E - Other Expenses
Local Government 4 728 5 389
Rebates and subsidies 356 771
Insurance 3 262 1 440
Recognition of asset revaluation decrement - 1 473
Compensation 411 59
Other operating expenses 4 421 3 659
Total 13 178 12 791

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Note 5 : Borrowing Costs Expense

2003
$'000
2002
$'000
Leases 125 147
Total borrowing costs expense 125 147

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Note 6 : Financial Assets

(see note 19)

2003
$'000
2002
$'000
Note 6A: Cash
Cash on hand:
Departmental (other than special accounts) 12 895 4 824
Total cash 12 895 4 824
Note 6B - Receivables
Goods and services 2 855 4 264
less: Provision for doubtful debts ( 631) ( 609)
2 224 3 655
GST receivable from Australian Taxation Office 1 338 1 273
Appropropriation receivable 92 193 -
Total receivables (net) 95 755 4 928
All receivables are current assets
Receivables (Gross) are aged as follows:
Not Overdue 95 091 3 511
Overdue by:
less than 30 days 82 253
30 to 60 days 275 100
60 to 90 days 87 44
more than 90 days 851 1 630
Total receivable (gross) 96 386 5 537
The provision for doubtful debts is aged as follows:
Not overdue - -
Overdue by:
Less than 30 days - -
30 to 60 days - -
60 to 90 days - -
More than 90 days 631 609
Total provision for doubtful debts 631 609
Note 6C - Investments
Term Deposits (Current) - 28 000
Note 6D - Accrued Revenue
Related entities 406 378
External entities 503 671
Total accrued revenue 909 1 049

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Note 7 : Non-Financial Assets

2003
$'000
2002
$'000
Note 7A - Land and Buildings
Freehold land
- at valuation 30 April 2001 (deprival) 1 915 4 301
- at valuation 30 June 2001 (deprival) 2 200 -
Total freehold Land 4 115 4 301
Buildings on freehold land
- at cost 24 508 11
Accumulated depreciation ( 194) -
24 314 11
- at valuation ( 30 April 2001) (deprival) 77 046 72 575
Accumulated depreciation (4 453) (2 351)
72 593 70 224
- at valuation ( 30 June 2001) (deprival) 11 684 11 684
Accumulated depreciation ( 424) ( 233)
11 260 11 451
- work in progress (at cost) 502 8 574
Total Buildings on freehold land 108 669 90 260
Leasehold Improvements
- at Cost 1 027 -
Accumulated amortisation ( 188) -
839 -
- at valuation (30 June 2002) 7 638 7 497
Accumulated amortisation ( 907) -
6 731 7 497
- work in progress (at cost) 1 758 -
Total leasehold improvements 9 328 7 497
Total Land and Buildings 122 112 102 058

2003
$'000
2002
$'000
Note 7B - Infrastructure, Plant and Equipment
- at cost 21 732 15
Accumulated depreciation (1 117) 0
20 615 15
- at valuation (30 June 2000) (deprival) 35 167
Accumulated depreciation ( 33) ( 93)
2 74
- at valuation (30 April 2001) (deprival) 84 843 86 884
Accumulated depreciation (11 735) (6 968)
73 108 79 916
- at valuation (30 June 2001) (deprival) 9 077 9 077
Accumulated depreciation (1 013) ( 606)
8 064 8 471
- at valuation (30 June 2002) (deprival) 2 278 2 540
Accumulated depreciation ( 348) ( 13)
1 930 2 527
- at valuation (30 June 2003) (Fair Value) 107 -
Accumulated depreciation - -
107 -
- work in progress (at cost) 12 984 17 305
Total infrastructure, plant and equipment 116 810 108 308

2003
$'000
2002
$'000
Note 7C - Intangibles
Purchased computer software - at cost (non-current) 12 194 6 040
Accumulated amortisation (4 306) (2 341)
7 888 3 699
Purchased computer software - work in progress (non-current) 1 139 6 639
Total intangibles 9 027 10 338

Note 7D - Analysis of Property, Infrastructure, Plant, Equipment and Intangibles

TABLE A - Movement Summary 2002-2003 for all assets irrespective of valuation basis

Item Land

$'000
Buildings
on Freehold
Land

$'000
Buildings -
Leasehold
Improvements

$'000
Total
land and
buildings

$'000
Infrastructure,
plant and
equipment

$'000
Intangibles

$'000
TOTAL

$'000
As at 1 July 2002
Gross book value 4 301 92 844 7 497 104 642 115 989 12 679 233 310
Accumulated depreciation / amortisation - ( 2 584) - ( 2 584) ( 7 681) ( 2 341) ( 12 606)
Net book value 4,301 90,260 7,497 102,058 108,308 10,338 220,704
Additions
by purchase - 23 839 2 881 26 720 16 164 3 590 46 474
by acquisition of operations - - - - - - -
Asset Transferred In - 31 - 31 - 13 44
Net revaluation increment / (decrement) - - - - 16 - 16
Depreciation / amortisation expense - ( 2 690) ( 1 050) ( 3 740) ( 7 098) ( 1 965) ( 12 803)
Recoverable amount write-downs - - - - - - -
Disposals
from disposal of operations - - - - - - -
other disposals ( 186) ( 2 771) - (2 957) ( 526) - ( 3 483)
Asset Transferred Out - - - - ( 43) - ( 43)
Write Offs - - - - ( 11) ( 2 949) (2 960)
As at 30 June 2003
Gross book value 4 115 113 740 10 423 128 278 131 056 13 333 272 667
Accumulated depreciation / amortisation - ( 5 071) ( 1 095) ( 6 166) ( 14 246) ( 4 306) ( 24 718)
Net book value 4 115 108 669 9 328 122 112 116 810 9 027 247 949

TABLE B - Assets at Valuation

Item Land

$'000
Buildings

$'000
Buildings -
Leasehold
Improvements


$'000
Total
land and
buildings

$'000
Infrastructure,
plant and
equipment

$'000
Computer Sofware Intangibles

$'000
TOTAL

$'000
As at 30 June 2003
Gross value 4 115 88 730 7 638 100 483 96 894 - 197 377
Accumulated depreciation / amortisation - (4 877) (907) (5 784) (13 275) - (19 059)
Net book value 4 115 83 853 6 731 94 699 83 619 - 178 318
As at 30 June 2002
Gross value 4 301 84 259 7 498 96 058 98 668 - 194 726
Accumulated depreciation / amortisation - (2 584) - (2 584) (7 680) - (10 264)
Net book value 4 301 81 675 7 498 93 474 90 988 - 184 462

TABLE C - Assets Under Construction

Item Land

$'000
Buildings

$'000
Buildings -
Leasehold
Improvements


$'000
Total
land and
buildings

$'000
Infrastructure,
plant and
equipment

$'000
Computer Sofware Intangibles

$'000
TOTAL

$'000
As at 30 June 2003
Gross value - 502 1 758 2 260 12 984 1 139 16 383
Net book value - 502 1 758 2 260 12 984 1 139 16 383
As at 30 June 2002
Gross value - 8 574 - 8 574 17 305 6 639 32 518
Net book value - 8 574 - 8 574 17 305 6 639 32 518

2003
$'000
2002
$'000
Note 7E - Inventories
Finished goods (cost) 120 8
Inventories held for sale 120 8
Inventories not held for sale (cost) 1 825 2 150
Total inventories 1 945 2 158
Current 809 960
Non-current 1 136 1 198

2003
$'000
2002
$'000
Note 7F - Other Non Financial Assets
Prepayments 1 008 2 176
All other non-financial assets are current assets

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Note 8 : Interest Bearing Liabilities

2003
$'000
2002
$'000
Note 8 - Lease Incentives
Lease incentives 2 142 2 255
Interest bearing liabilities are represented by:
Current 411 358
Non-current 1 731 1 897
Total interest bearing liabilities 2 142 2 255

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Note 9 : Provisions

2003
$'000
2002
$'000
Note 9A - Captial Use Charge Provision
Capital Use Charge - 1 289
Balance owing 1 July 1 289 -
Capital Use Charge provided for during the period 24 586 24 614
Capital Use Charge paid 25 875 23 325
Balance Owing 30 June - 1 289
The Capital Use Charge provision is a current liability
Note 9B - Employee Provisions
Salaries and wages 2 445 2 356
Annual leave 10 422 10 233
Long service leave 14 886 13 971
Superannuation 355 254
Aggregate employee entitlement liability 28 108 26 814
Current 8 508 6 095
Non-current 19 600 20 719

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Note 10 : Payables

2003
$'000
2002
$'000
Note 10A - Supplier Payables
Trade creditors 3 440 2 189
Accrued expenses 4 052 6 794
Operating lease rentals - 7
Other 60 109
Total supplier payables 7 552 9 099
Supplier payable are represented by:
Current 7 552 9 099
Non-current - -
Total supplier payables 7 552 9 099
Note 10B - Other Payables
Surplus Lease Space Liability (12 months or less) - 71
Deferred Appropriation 10 000 -
Unearned Income 547 804
Total other payables 10 547 875
All other payables are current liabilities

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Note 11 : Equity

Analysis of Equity

Item Accumulated Results Asset Revaluation
Reserves
Contributed Equity TOTAL EQUITY
2003
$'000
2002
$'000
2003
$'000
2002
$'000
2003
$'000
2002
$'000
2003
$'000
2002
$'000
Opening Balance as at 1 July 178 080 167 983 12 433 12 287 32 994 34 225 223 507 214 495
Net surplus/deficit 20 088 34 711 - - - - 20 088 34 711
Net revaluation increment/(decrement) - - 16 146 - - 16 146
Transactions with owner:
Distributions to owner:
Returns on Capital
Dividends - - - - - - - -
Capital User Charge ( 24 586) ( 24 614) - - - - ( 24 586) ( 24 614)
Returns of Capital
Restructuring - - - - - ( 1 231) - ( 1 231)
Returns of contributed equity ( 413) - - - - - ( 413) -
Contributions by owner:
Appropriations (equity injections) - - - - 93 500 - 93 500 -
Restructuring - - - - - - - -
Transfers to/(from)/between reserves - - - - - - - -
Closing Balance as at 30 June 173 169 178 080 12 449 12 433 126 494 32 994 312 112 223 507
Less: outside equity interests - - - - - - - -
Total equity attributable to the Commonwealth 173 169 178 080 12 449 12 433 126 494 32 994 312 112 223 507

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Note 12 : Restructuring

As a result of administrative arrangements, DOTARS assumed responsibility on 26 November 2001 for the following functions:
- The Area Consultative Committees and the Regional Assistance Programme from the Department of Employment and Workplace Relations; and
- Natural Disaster Relief Arrangements from the Department of Finance and Administration.

DOTARS relinquished its responsibility for the customs functions in the Indian Ocean Territories to the Australian Customs Service, in accordance with Customs Amendment Ordinance 2001 (No 1).

In respect of the functions assumed, the net book values of assets and liabilities transferred to DOTARS for no consideration and recognised as at the date of transfer were:

2003
$'000
2002
$'000
Total assets recognised - 659
Total liabilities recognised - (1 514)
Net assets assumed - (855)
In respect of functions relinquished, the following assets and liabilities were transferred by DOTARS:
Total assets relinquished - (376)
Total liabilities relinquished - -
Net assets relinquished - (376)
Net contribution by Government as owner during the year - ( 1 231)
Area Consultative Committees & Regional Assistance Programme
Revenues
Recognised by the Department of Employment and Workplace Relations - 5 579
Recognised by DOTARS - 4 594
Total revenues - 10 173
Expenses
Recognised by the Department of Employment and Workplace Relations - 5 576
Recognised by DOTARS - 3 556
Total expenses - 9 132
Natural Disaster Relief Arrangements
Revenues
Recognised by the Department of Finance - 120
Recognised by DOTARS - 1 515
Total revenues - 1 635
Expenses
Recognised by the Department of Finance - 120
Recognised by DOTARS - 825
Total expenses - 945

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Note 13 : Cash Flow Reconciliation

2003
$'000
2002
$'000
Note 13 - Cash Flow Reconciliation
Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows
Cash at year end per Statement of Cash Flows 12 895 4 824
Statement of Financial Position items comprising above
cash: 'Financial Asset - Cash' 12 895 4 824
Reconciliation of operating surplus (deficit) to net cash provided by operating activities:
Net surplus (deficit) 20 088 34 711
Other revenue (Discovered Assets) - ( 620)
Depreciation/Amortisation 12 803 11 231
(Profit) Loss on sale of non-current assets ( 149) 378
Net Write-Down of Non-Financial Assets 3 056 1 366
Increase in net assets from restructuring - -
Changes in assets/liabilities:
Decrease (increase) in receivables (90 926) (1 779)
Decrease (increase) in accrued revenue 140 1 930
Decrease (increase) in inventories 213 ( 96)
Decrease (increase) in other assets 1 168 238
(Decrease) increase in other debt ( 113) ( 325)
(Decrease) increase in payables ( 1 395) ( 3 788)
(Decrease) increase in employee provisions 1 294 2 513
(Decrease) increase in unearned income 9 672 ( 21)
Net cash provided by operating activities (44 149) 45 738

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Note 14 : Contingent Liabilities & Assets

Quantifiable Contingencies

The Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $155 000 (2002: $1 751 000). The amount represents an estimate of DOTARS liability based on precedent cases. The Department is defending the claims.

Unquantifiable Contingencies

The Department has two personal injury claims which it is defending in the courts. Costs that may arise from this claim cannot be determined and is therefore unquantifiable.

The Department has resumed 42.5 hectares of mining lease from Phosphate Resources Ltd (PRL) to build a detention centre on Christmas Island. The Department will compensate PRL for loss of phosphate mining capacity. The matter is currently in arbitration and the amount of compensation settlement is yet to be determined.

Remote Contingencies

The following claims against the Department have been reported as remote contingencies as there is a low likelihood of the matters being resolved against the Department.

Arcadia & Anor V Brown & Anors

The plaintiffs allege that Minister Brown and employees of the Department neligently made statements regarding the Motor Vehicle Standards Act and imposition of a $12,000 import tariff on second hand vehicles. The amount being claimed is $3.6m.

Ain bin Marsh V Commonwealth

A claim for $1.5m is being made against the Commonwealth by ex-Christmas Island residents for unconscionable conduct.

AA Transport Projects P/L & Glennan V Commonwealth & NSW

The plaintiffs are claiming $0.5m damages resulting from the operation of Sydney Airport.

McLaughlin & Anor V Commonwealth & Ors

The plaintiffs allege that they have a right of access over Commonwealth land and are seeking declaratory and injunctive relief, unspecified damages and compensation in relation to the alleged interference with their right of access plus costs.

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Note 15 : Executive Remuneration

2003 2002
The number of executives who received or were due to receive
total remuneration of $100,000 or more:
$100 000 to $110 000 - -
$110 001 to $120 000 - 1
$120 001 to $130 000 2 3
$130 001 to $140 000 3 9
$140 001 to $150 000 9 7
$150 001 to $160 000 7 5
$160 001 to $170 000 5 4
$170 001 to $180 000 5 4
$180 001 to $190 000 4 2
$190 001 to $200 000 5 1
$200 001 to $210 000 2 2
$210 001 to $220 000 1 1
$220 001 to $230 000 1 -
$230 001 to $240 000 1 -
$330 001 to $340 000 1 -
$350 001 to $360 000 - 1
46 40
The aggregate amount of total remuneration of Executives shown above: $7 859 162 $6 382 167
The aggregate amount of separation and redundancy payments during the year to Executives shown above: $0 $0
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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Note 16 : Remuneration of Auditors

Financial statement audit services are provided free of charge to the Department. The fair value of audit services provided was: $ 230 000 $ 215 000
No other services were provided by the Auditor-General

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Note 17 : Average Staffing Levels

Average staffing levels for the Agency during the year were: 1 058 1 045

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Note 18 : Act of Grace Payments, 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. - -
No payments were made under the Defective Administration Scheme during the reporting period. - -

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Note 19 : Financial Instruments

Note 19A - 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 6A Deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues. The Department was in the practice of investing funds at call with a commercial bank. However the Department, as at year end 30 June 2003, no longer invests funds with the cessation of the Agency Banking Incentive Scheme.
Receivables for goods and services 6B 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. Credit terms are net 30 days (2001-2002: 30 days).
Investments 6C Term deposits are recorded at their nominal amounts. Interest is credited to revenue as it accrues. The Department historically invested term deposits with a commercial bank. However, the Department no longer invests funds with the cessation of the Agency Banking Incentive Scheme during the financial year 30 June 2003.
Accrued revenue 6D Revenues are recognised as the Department becomes entitled to the revenue. When the entitlement is generated, revenue is recorded through the Accrued Revenue balance. Should the Department have issued an invoiced then the revenue would be captured through the Receivables balance - Note 6B.
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 8 The lease incentive is recognised as a liability on receipt of the incentive. The amount of the liability is reduced on a straight-line over the life of the lease by allocating lease payments between rental expense and reduction of the liability for financial leases and against the rental expense for operating leases. The Department has received the following lease incentives:
  • a rent-free period on the transfer of a property operating lease to the Department in June 1999 and the recent establishment of the Adelaide, Melbourne and Brisbane Leases in September 2002, March 2003 and June 2003 respectively.
  • contributions towards the cost of fitting-out two buildings, August and November 2000
Surplus lease Space Liability 10B 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 30 June 2002, 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. There is no surplus lease space liability as at 30 June 2003.
Trade creditors 10A 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). Settlement is usually made net 30 days.
Unearned Income 10B Unearned Income is recorded when the Department receives a revenue stream in advance of performing the services that generated that revenue. This balance reflects a liability for the Department, as a responsibility to perform the services is assumed by the collection of the revenue stream.


Note 19B - 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
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
%
01-02
%
Financial Assets
Cash 6A - - 12 895 4 824 - - - - - - 12 895 4 824 2 2
Receivables (Gross) 6B - - - - - - - - - - 95 755 4 928 95 755 4 928 n/a n/a
Investments 6C - - - 28 000 - - - - - - - - 28 000 n/a 5
Accrued Revenue 6D - - - - - - - - - - 909 1 049 909 1 049 n/a n/a
Total Financial Assets - - 12 895 32 824 - - - - - - 96 664 5 977 109 559 38 801
(Recognised)
Total Assets 360 461 263 839
Financial Liabilities
Suppliers 10A - - - - - - - - - - 7 552 9 099 7 552 9 099 n/a n/a
Unearned income 10B - - - - - - - - - - 547 804 547 804 n/a n/a
Lease Incentives 8 - - - - - - - - - - 2 142 2 255 2 142 2 255 n/a n/a
Total Financial Liabilities - - - - - - - - - - 10 241 12 158 10 241 12 158
(Recognised)
Total Liabilities 48 349 40 332

Note 19C - Net Fair Values of Financial Assets and Liabilities

2003 2002
Note Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Financial Assets
Cash at Bank 6A 12 895 12 895 4 824 4 824
Receivables for goods and services (net) 6B 95 755 95 755 4 928 4 928
Investments 6C - - 28 000 28 000
Accrued Revenue 6D 909 909 1 049 1 049
Total Financial Assets 109 559 109 559 38 801 38 801
Financial Liabilities
Suppliers 10A 7 552 7 552 9 099 9 099
Unearned income (Other Payables) 10B 547 547 804 804
Lease Incentives 8 2 142 2 142 2 255 2 255
Total Financial Liabilities 10 241 10 241 12 158 12 158

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.

Note 19D - 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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Note 20 : Revenues Administered on Behalf of Government

Note 2003
$'000
2002
$'000
Taxation Revenue
Levies, Fees and Fines
Levies 21A 252 384 195 934
Fees 37 980 32 479
Fines 3 484 2 736
Royalties 1 030 448
294 878 231 597
Non - Taxation Revenue
Goods and Services
Marine Industry Fees 45 750 44 270
Motor Vehicle Compliance Plates 8 335 6 682
Other 211 162
54 296 51 114
Interest
Loans - State and Territories Governments 12 373 13 035
Loans - Commonwealth Entities - -
12 373 13 035
Dividends
Commonwealth entities 25 900 11 400
Associated companies 15 725 22 110
41 625 33 510
Proceeds from Sale of Assets
Land and Buildings 20A 5 332 -
5 332 -
Other revenue
Industry Contributions 14 462 16 090
Lease 2 567 1 545
Prior years' grants returned 1 316 4 591
Other 437 120
18 782 22 346
Total Revenues Administered on Behalf of Government 427 286 351 602

Note 20A - Net Gains from Sale of Assets
2003 2002
$'000 $'000
Net Gains from Sale of Assets
Land and Buildings
Proceeds from disposal 5 332 -
Compensation payments related to the sale of airport land (2 747) -
Net book value of assets disposed ( 442) -
Net gain from disposal of land and buildings 2 143 -

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Note 21 : Expenses Administered on Behalf of Government

Note 2003
$'000
2002
$'000
Grants
Government
State & Territory Government 2 667 296 2 815 465
Local Governments 203 237 419 852
Related Entities - Commonwealth Authorities 9 243 13 015
Non Government
Private Sector Commercial Entities 43 136 60 870
Non-profit Organisations 41 858 54 435
Overseas Non-profit Organisations 1 793 2 322
2 966 563 3 365 959
The nature of grants are as follows:
Urban and Regional Development 60 300 67 831
Rural Assistance - 3 524
Mining and Mineral Resources (other than fuels) - 167
Rail Transport 17 259 69 776
Air Transport 15 219 32 045
Road Transport 1 267 413 1 696 987
Sea Transport 306 307
Labour Market Assistance to Job Seekers and Industry 36 789 38 753
Local Government Assistance 1 455 106 1 394 413
Assistance to Other Governments 21 571 24 372
Natural Disaster Relief 92 600 37 784
2 966 563 3 365 959
Subsidies
Payable to related entities 38 985 3 367
Tasmanian Freight Equalisation Scheme 77 186 71 860
Bass St Passenger Vehicle Equal Scheme 31 736 17 013
Other 38 41
147 945 92 281
Suppliers
Rendering of Services - External Entities 33 310 52 714
33 310 52 714
Depreciation and Amortisation
Depreciation
Buildings 1 448 10
Heritage Assets 366 361
Plant and Equipment - 1
Amortisation
Intangibles 284 288
2 098 660
Write-down of assets
Financial Assets
Receivables 148 6 908
Non Financial Assets
Land and Buildings - stocktake adjustments 282 1 147
430 8 055
Value of Assets Sold
Land and Buildings 20A 442 -
442 -
Other Expenses
Compensation payments related to the sale of airport land 20A 2 747 -
Oil Pollution Compensation Fund 21A ( 471) 2 478
Other - Related Entities - 1 536
Other - External Entities 128 109
2 404 4 123
Total Expenses Administered on Behalf of Government 3 153 192 3 523 792

Note 21 A - Revision of Accounting Estimate

At 30 June 2002, accrued revenues and corresponding accrued expenses related to contributions to the International Oil Pollution Compensation Fund were estimated at $7.4m. These estimates were based on information available at balance date. Due to events beyond DOTARS' control, actual receipts for this period amounted to $4.8m, which resulted in Administered recording a negative revenue and corresponding negative expense for Oil Pollution Compensation Fund payments of $0.47m in 2002-03.


Note 21B - Administered Act of Grace Payments, Waivers and Defective Administration Scheme
2003
$
2 002
$
One Act of Grace Payment was made during the reporting period 10 000 30 774
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. - -

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Note 22 : Assets Administered on Behalf of Government

2003
$'000
2002
$'000
Financial Assets
Cash
Administered Bank Accounts 246 16
Receivables
Levies, Fees and Fines 11 314 431
Less: Provision for Doubtful Debt ( 171) ( 179)
11 143 252
Loans
State and Territory Governments 193 574 197 205
Other 6 500 8 100
Less: Provision for Waiving of Debts ( 6 500) ( 8 100)
193 574 197 205
Other Receivables
GST Receivable from the ATO 1 169 2 969
Other Receivables 98 3 820
Less: Provision for Doubtful Debt ( 98) ( 2 772)
1 169 4 017
Total Receivables (net) 205 886 201 474
Receivables (gross) are aged as follows:
Not overdue 205 655 200 368
Overdue by:
Less than 30 days - 11
30 to 60 days 93 -
60 to 90 days - -
more than 90 days 6 907 12 146
Total Receivables (gross) 212 655 212 525
The Provision for Doubtful Debts is aged as follows:
Not overdue - -
Overdue by:
Less than 30 days - -
30 to 60 days - -
60 to 90 days - -
more than 90 days ( 6 769) ( 11 051)
Total Provision for Doubtful Debts ( 6 769) ( 11 051)
Accrued Revenue
Noise Levy 3 652 6 400
Airport Ticket Levy 18 458 14 500
IRT Act Registrations 3 579 3 394
Airport Land Tax - 5 400
Interest 1 645 1 664
Dividends 11 000 -
Oil Pollution Fund 1 055 7 443
Stevedoring Levies 2 900 2 660
Dairy Regional Assistance Program - 3 389
Total Accrued Revenue 42 289 44 850
Investments
Shares in Commonwealth Companies
National Road Transport Commission 200 200
Australian Maritime College 58 518 58 518
Shares in Commonwealth Authorities
Airservices Australia 303 203 353 203
Albury Woodonga Development Corporation 99 783 99 783
Australian Maritime Safety Authority 54 617 54 617
Civil Aviation Safety Authorties 18 670 18 670
Stevedoring Industry Finance Committee 14 053 14 053
Australian Rail Track Corporation - -
Maritime Industry Finance Company - -
Total Investments 549 044 599 044
Total Financial Assets 797 465 845 384

Non Financial Assets
2003
$'000
2002
$'000
Freehold land
- Deprival valuation (30 June 2000) - 11 919
- Deprival valuation (30 April 2001) 220 -
- Fair value (30 June 2003) 8 859 -
Total freehold land 9 079 11 919
Buildings on Freehold land
- at cost - 240
- Deprival valuation (30 June 2002) 60 270 60 270
Accumulated depreciation ( 1 442) ( 4)
58 828 60 266
- Fair value (30 June 2003) 255 -
Total Buildings on Freehold land 59 083 60 506
Total Land and Buildings (non-current) 68 162 72 425
Land and buildings were revalued at 30 June 2003, in accordance with the progressive revaluation policy stated at note 1. The valuations were completed by an independent valuer, Chris Tuttle FAPI of the Australian Valuation Office. A revaluation decrement of $3,035,628.09 was transferred to the asset revaluation reserve.
Heritage
- at cost 1 1
- at Deprival valuation (30 June 2000) - 13 363
Accumulated depreciation - ( 698)
- 12 665
- at Deprival valuation (30 April 2001) 19 691
Accumulated depreciation - ( 8)
19 683
- at Fair value (30 June 2003) 13 341 -
Accumulated depreciation ( 1) -
13 340 -
Total Heritage assets 13 360 13 349
Heritage assets were revalued at 30 June 2003, in accordance with the progressive revaluation policy stated at note 1. The valuations were completed by an independent valuer, Chris Tuttle FAPI of the Australian Valuation Office. A revaluation increment of $1,321,424.55 was transferred to the asset revaluation reserve.
Infrastructure, Plant & Equipment
- at cost - 11
Accumulated depreciation - ( 11)
- -
- at Fair value (30 June 2003) 2 -
Total Infrastructure, Plant & Equipment 2 -
Plant and Equipment was revalued at 30 June 2003, in accordance with the progressive revaluation policy stated at note 1. The valuations were completed by an independent valuer, Chris Tuttle FAPI of the Australian Valuation Office. A revaluation increment of $1,799.31 was transferred to the asset revaluation reserve.
Intangibles
Phosphate mine licence
- at Deprival valuation (30 April 2001) 5 000 5 000
Accumulated amortisation ( 613) ( 329)
Total intangibles 4 387 4 671
Other
Prepayments - -
Total Other - -
Total Non Financial Assets 85 911 90 445
Total Assets Administered on Behalf of Government 883 376 935 829
Current Assets 55 658 47 975
Non Current Assets 827 718 887 854

TABLE A - Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles
Item Land

$'000
Buildings

$'000
Total land and buildings

$'000
Heritage Assets

$'000
Infrastructure, plant and equipment

$'000
Intangibles

$'000
TOTAL

$'000
As at 1 July 2002
Gross book value 11 919 60 510 72 429 14 055 11 5 000 91 495
Accumulated depreciation / amortisation - ( 4) ( 4) ( 706) ( 11) ( 329) (1 050)
Net book value 11 919 60 506 72 425 13 349 - 4 671 90 445
Additions
by purchase - - - - - - -
by finance lease - - - - - - -
by acquisition of entities or operations (incuding restructuring) - - - - - - -
Net revaluation increment / (decrement) (3 050) 15 (3 035) 1 321 2 - (1 712)
Reclassifications 210 10 220 ( 220) - - -
Depreciation / amortisation expense - (1 448) (1 448) ( 366) - ( 284) (2 098)
Recoverable amount write downs - - - - - - -
Stocktake adjustment - - - ( 282) - - ( 282)
Other movements (give details below) - - - - - - -
Disposals
from disposal of entities or operations (incuding restructuring) - - - - - - -
other disposals - - - ( 442) - - ( 442)
As at 30 June 2003
Gross book value 9 079 60 525 69 604 13 361 2 5 000 87 967
Accumulated depreciation / amortisation - (1 442) (1 442) ( 1) - ( 613) (2 056)
Net book value 9 079 59 083 68 162 13 360 2 4 387 85 911

TABLE B - Assets at Valuation
Item Land

$'000
Buildings

$'000
Total land and buildings

$'000
Heritage Assets

$'000
Infrastructure, plant and equipment

$'000
Intangibles

$'000
TOTAL

$'000
As at 30 June 2003
Gross book value 9 079 60 525 69 604 13 360 2 5 000 87 966
Accumulated depreciation / amortisation - (1 442) (1 442) ( 1) - ( 613) (2 056)
Net book value 9 079 59 083 68 162 13 359 2 4 387 85 910
As at 30 June 2002
Gross book value 11 919 60 270 72 189 14 054 - 5 000 91 243
Accumulated depreciation / amortisation - ( 4) ( 4) ( 706) - ( 329) (1 039)
Net book value 11 919 60 266 72 185 13 348 - 4 671 90 204

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Note 23 : Liabilities Administered on Behalf of Government

2003
$'000
2002
$'000
Payables
Suppliers
Trade Creditors 1 165 8 899
Grants and Subsidies
Public Sector
Commonwealth Authorities 98 477 100 766
State and Territory Governments 9 611 19 522
Local Governments - -
Private Sector
Non Profit Entities 1 590 4 916
Commercial Entities 3 280 3 438
112 958 128 642
Total Liabilities Administered on Behalf of Government 114 123 137 541
Current Liabilities 25 628 44 495
Non Current Liabilities 88 495 93 046

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Note 24 : Administered Reconciliation Table

2003
$'000
2002
$'000
Administered Assets less Administered Liabilities as at 1 July 798 288 1 326 343
Plus Administered Revenues 427 286 351 602
Less Administered Expenses (3 153 192) (3 523 794)
Administered Transfers to / from Government
Appropriation Transfers from OPA 3 186 707 3 274 885
Transfers to OPA ( 488 124) ( 335 606)
Restructuring - ( 296 662)
Administered Revaluations taken to / from Reserves ( 1 712) 1 520
Administered Assets less Administered Liabilities as at 30 June 769 253 798 288

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Note 25 : Administered Contingent Liabilities and Assets

Quantifiable Administered Contingencies

Quantifiable administered Contingencies that are not remote are disclosed in the Schedule of Administered Items as Quantifiable Administered Contingencies.

Unquantifiable Administered Contingencies

Australian Capital Territory (ACT) funding agreements

As at 30 June 2003 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) - 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 and in all circumstances, is responsible for making appropriate efforts to recover the costs of any such incidents. The Commonwealth meets costs that cannot be recovered from such incidents.

Deep Vein Thrombosis class action

The Civil Aviation Safety Authority (CASA) and the Commonwealth have been named in a number of writs, which allege that CASA was negligent in not making air travellers aware of the risks of Deep Vein Thrombosis during long periods of immobility. The Commonwealth's exposure is limited to claims for the years 1995 to 30 June 1998, as CASA was covered by a Commonwealth Deed of Indemnity in relation to the performance of its regulatory functions.

Sale Indemnities

Indemnities given to Australian National Sales in relation to the acquisition of SA Rail, PAXRAIL and TASRAIL from the Commonwealth.

Service Level Agreement Indemnities

Indemnities given to Western Australian agencies and employees against all actions, suits, demands, claims, verdicts, judgements, costs and expenses which may arise from the administration or operation of the agreed services to Christmas Island and Cocos Keeling Island.

Territory Insurance Office (TIP) Indemnity

Relates to the agreement with TIP to provide motor vehicle compulsory third party (personal injury) insurance services for Christmas and Cococs (Keeling) Islands.

Remote Administered Contingencies

Aviation War Risk Insurance - indemnities for Australian carriers

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. In common with other countries, the Commonwealth has been providing temporary third party war and terrorist risk indemnity cover to air operators, airports and other aviation service providers.

With the return of insurance coverage to the aviation sector, only one carrier remains indemnified under the scheme and is indemnified for $US 1 billion.

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 Commonwealth's potential liability to the lessee's 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.

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 2003, no claims have been made.

Stevedoring Industry Finance Committee- members' indemnity

Indemnities for SIFC committee members have been provided to protect against civil claims relating to employment and conduct as committee members of SIFC. These indemnities are unquantifiable and no expiry date has been set. As at 30 June 2003, no claims have been made.

National Rail Corporation (NRC) Ltd - directors indemnity

The Commonwealth jointly indemnifies with other shareholders of the corporation the directors of NRC against claims and legal costs as a consequence of actions that relate to the sale of NRC.

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Note 26 : Administered Investments

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

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.

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.

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

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.

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

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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Note 27 : Restructuring

As a result of restructuring of administrative arrangements, DOTARS assumed responsibility on 26 November 2001 for the following functions:
- The Area Consultative Committees and the Regional Assistance Programme from the Department of Employment and Workplace Relations; and
- Natural Disaster Relief Arrangements from the Department of Finance and Administration.

During 2001-02 DOTARS transferred its investments in the Australian River Company and the Australian Rail Corporation Limited to the Department of Finance and Administration. No restructurings affecting the administered accounts occurred during 2002-03.

2003
$'000
2002
$'000
In respect of the functions assumed, the net book values of assets and liabilities transferred to DOTARS for no consideration and recognised as at the date of transfer were:
Total assets recognised - 18 939
Total liabilities recognised - -
Net assets assumed - 18 939
In respect of functions relinquished, the following assets and liabilities were transferred by DOTARS:
Total assets relinquished - 315 601
Total liabilities relinquished - -
Net assets relinquished - 315 601
Net decrease in administered net assets during the year - (296 662)
Administered revenues and expenses for the full year of the functions assumed by DOTARS are as follows:
Area Consultative Committees & Regional Assistance Programme
Revenues
Recognised by the Department of Employment and Workplace Relations - 1 913
Recognised by DOTARS - 14 301
Total revenues - 16 214
Expenses
Recognised by the Department of Employment and Workplace Relations - 10 375
Recognised by DOTARS - 38 753
Total expenses - 49 128
Natural Disaster Relief Arrangements
Revenues
Recognised by the Department of Finance - -
Recognised by DOTARS - 4 821
Total revenues - 4 821
Expenses
Recognised by the Department of Finance - 47 985
Recognised by DOTARS - 39 623
Total expenses - 87 608

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Note 28 : 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 22 Deposits are recognised at their nominal amounts. Balances of the administered bank accounts are non interest bearing.
Receivables for goods and services 22 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 22 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 22 Interest is credited to revenue as it accrues. Other revenues are recognised as the administered entity becomes entitled to the revenue. The majority of interest payments are received annually, at the time that loan repayments are received.
Loans 22 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. The effective interest rate averaged 7% p.a. Loan repayments are generally made annually. Some loan repayments are required bi-annually and loan payments are split between principal and interest.
Financial liabilities 23 Financial liabilities are recognised when a present obligation to another party arises and the amount of the liability can be reliably measured.
Trade creditors 23 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 23 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.
Unrecognised Financial liabilities
Guarantees 25 The maximum amount payable under guarantees given is disclosed in the Schedule of Contingencies. At the time of completion of the financial statements, there was no reason to believe that the guarantee would be called upon, and recognition of the liability was therefore not required. A guarantee has been given by the Commonwealth to underwrite the construction of the Alice Springs to Darwin Railway.

b) 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
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
02-03
$'000
01-02
$'000
Financial Assets
Cash 22 - - - - - - - - - - 246 16 246 16 n/a n/a
Fees Receivables (gross) 22 - - - - - - - - - - 11 314 431 11 314 431 n/a n/a
Loans to State and Territory Govts 22 - - 10 302 10 536 9 845 10 036 28 018 28 177 145 409 148 456 - - 193 574 197 205 7 7
Other loans 22 - - - - - - - - - - 6 500 8 100 6 500 8 100 n/a n/a
Investments 22 - - - - - - - - - - 549 044 599 044 549 044 599 044 n/a n/a
Accrued revenues 22 - - - - - - - - - - 42 289 44 850 42 289 44 850 n/a n/a
Total Financial Assets - - 10 302 10 536 9 845 10 036 28 018 28 177 145 409 148 456 609 393 652 441 802 967 849 646
(Recognised)
Total Assets 883 376 935 829
Financial Liabilities
Trade Creditors 23 - - - - - - - - - - 1 165 8 899 1 165 8 899 n/a n/a
Grants and Subsidies Payable 23 - - - - - - - - - - 112 958 128 642 112 958 128 642 n/a n/a
Total Financial Liabilities - - - - - - - - - - 114 123 137 540 114 123 137 541
(Recognised)
Total Liabilities 114 123 137 541
Liabilities not recognised
Contingencies - - - - - - - - - - - - - - n/a n/a
Guarantee to authority - - - - - - - - - - - - - - n/a n/a
Other guarantees - - - - - - - - - - 12 500 - 12 500 - n/a n/a
Indemntities - - - - - - - - - - * * * * n/a n/a
Total Financial Liabilities - - - -
(Unrecognised) 12 500 - 12 500 -
*Unquantifiable

c) Net Fair Values of Administered Financial Assets and Liabilities
2003 2002
Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Total
Carrying
Amount
$'000
Aggregate
Net Fair
Value
$'000
Financial Assets Notes
Cash 22 246 246 16 16
Fees Receivables (net) 22 11 143 11 143 252 252
Loans to State and Territory Govts 22 193 574 220 089 197 205 197 205
Investments 22 549 044 549 044 599 044 599 044
Accrued revenues 22 42 289 42 289 44 850 44 850
Total Financial Assets 796 296 822 811 841 367 841 367
Financial Liabilities (Recognised)
Trade Creditors 23 1 165 1 165 8 899 8 899
Grants and Subsidies Payable 23 112 958 112 958 128 642 128 642
Total Financial Liabilities (Recognised) 114 123 114 123 137 541 137 541
Financial Liabilities (Unrecognised)
Guarantees 12 500 - - -
Total Financial Liabilities (Unrecognised) 12 500 - - -

Financial Assets

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

Loans to State and Territory Governments are carried at cost which is below their net fair value. It is intended that these loans will be held to maturity. The net fair value of loans receivable are based on discounted cash flows using current interest rates for assets with similar risk profiles.

The net fair values of investments in Commonwealth authorities approximate their carrying amounts.

Financial Liabilities

The net fair values of Trade Creditors and Grants and Subsidies Payable are approximated by their carrying value.

The fair values of unrecognised guarantees are zero because the likelihood that they will be called upon has been assessed as remote.


c) Credit Risk Exposure

The maximum exposure of Administered 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 Schedule of Administered Items.

Administered has no significent 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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Note 30 : Assets Held in Trust

2003
$'000
2002
$'000
Comcare Trust Account
Purpose: moneys held in trust and advanced to DOTARS by Comcare for the purpose of distributing compensation payments made in accordance with the Safety Rehabilition and Compensation Act 1998
Balance carried forward from previous year 954 844
Receipts during the year 144 216
Available funds for payments 1 098 1 060
Payments made ( 190) ( 106)
Balance carried forward to next year 908 954

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Note 31 : Reporting of Outcomes

Where possible actual usage of the service or resource is the basis for the attribution of shared costs. The basis of attribution in the below table is consistent with the basis used for the 2002-03 Budget.

Note 31A: Net Cost of Outcome Delivery

2003 Total
Outcome 1
$'000
Outcome 2 2003
$'000
2002
$'000
Administered Expenses 1 484 465 1 668 727 3 153 192 3 523 792
Departmental Expenses 93 398 133 334 226 732 195 663
Total Expenses 1 577 863 1 802 061 3 379 924 3 719 455
Costs recovered from the provision of goods and services to the non-government sector
Administered 92 131 - 92 131 92 208
Departmental 1 755 7 214 8 969 8 374
Other costs recovered from the non-government sector
Administered (industry contributions and lease revenue) 4 141 12 888 17 029 17 635
Departmental - - - -
Total Costs Recovered 98 027 20 102 118 129 118 217
Other external revenues
Administered
Levies, Fees and Fines 253 796 3 247 257 043 190 503
Interest on loans to State and Territory Governments 422 11 951 12 373 13 035
Dividends from Commonwealth entities and associated companies 33 625 8 000 41 625 33 510
Revenue from Sale of Assets 4 931 401 5 332 -
Other 902 851 1 753 4 711
Total Administered 293 676 24 450 318 126 241 759
Departmental
Interest 286 511 797 2 211
Revenue from disposal of assets - 3 632 3 632 3 367
Rental Income - 1 622 1 622 1 566
Other 281 504 785 3 386
Goods and Services Revenue from Related Entities 343 1 408 1 751 1 829
Total Departmental 910 7 677 8 587 12 359
Total Other External Revenues 294 586 32 127 326 713 254 118
Net Cost/(contribution) of outcome 1 185 250 1 749 832 2 935 082 3 347 120

Outcomes 1 and 2 are described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome.
The Capital Usage Charge is not included in any of the outcomes as it is not an operating expense in end-of-year financial reports.

Note 31B: Major Classes of Departmental Revenues and Expenses by Outputs

Outcome 1 Output 1.1 Output 1.2 Output 1.3 Output 1.4 Output 1.5 Output Group 1 Outcome 1 Total
2002-03
$'000
2002-03
$'000
2002-03
$'000
2002-03
$'000
2002-03
$'000
2001-02
$'000
2002-03
$'000
2001-02
$'000
Departmental Expenses
Employees 12 877 8 828 4 234 4 774 5 219 37 667 35 932 37 667
Suppliers 19 328 13 250 6 355 7 165 7 833 34 806 53 931 34 806
Depreciation 512 432 346 197 336 1 566 1 823 1 566
Other expenses 614 420 202 228 249 5 800 1 712 5 800
Total departmental expenses 33 332 22 929 11 137 12 364 13 637 79 839 93 398 79 839
Funded by:
Revenues from government 32 384 22 354 10 988 12 020 13 371 76 724 91 117 76 724
Sale of goods and services 527 82 291 876 322 2 338 2 098 2 338
Other non-taxation revenues 182 118 60 67 140 3 745 567 3 745
Total departmental revenues 33 093 22 554 11 339 12 963 13 833 82 807 93 782 82 807


Outcome 2 Output 2.1 Output 2.2 Output 2.3 Output 2.4 Output 2.5 Output 2.6 Output Group 2 Output Group 3 Output Group 4 Outcome 2 Total
2002-03
$'000
2002-03
$'000
2002-03
$'000
2002-03
$'000
2002-03
$'000
2002-03
$'000
2001-02
$'000
2001-02
$'000
2001-02
$'000
2002-03
$'000
2001-02
$'000
Departmental Expenses
Employees 3 691 11 077 29 520 1 559 1 288 871 22 698 1 265 14 967 48 006 38 930
Suppliers 5 541 16 626 44 309 2 340 1 933 1 308 11 669 1 007 45 671 72 057 58 347
Depreciation 120 365 10 353 49 40 53 639 8 9 018 10 981 9 665
Other expenses 176 528 1 408 74 61 42 3 554 198 5 130 2 290 8 882
Total departmental expenses 9 528 28 596 85 590 4 023 3 322 2 274 38 560 2 478 74 786 133 334 115 824
Funded by:
Revenues from government 9 231 27 712 91 864 3 896 3 217 2 227 46 018 2 547 87 719 138 147 136 284
Sale of goods and services 7 173 8 378 0 0 63 304 - 7 561 8 622 7 865
Other non-taxation revenues 58 146 5 978 27 23 38 1 144 14 2 260 6 269 3 418
Total departmental revenues 9 296 28 031 106 220 3 922 3 240 2 329 47 466 2 561 97 540 153 038 147 567

Note:
1. The methodology adopted is consistent with the 2002-03 Portfolio Budget Statements and involves management estimates of percentage expenditure and revenue attributable to each output. Where possible, corporate overhead has been attributed to outputs based on actual usage.
2. The Capital Use Charge, although reflected in Revenue from Government, is not reflected in the Total Expenses in accordance with accounting policy.
3. For 2002-03 the Department moved to a new outcomes/output structure with two outcomes and removal of output groups. As the revised outputs do not have a one-to-one relationship to the former output groups, Outcome 2 comparison is on an aggregate basis.

Note 31C: Major Classes of Administered Revenues and Expenses by Outcomes

2003 Total
Outcome 1
$'000
Outcome 2
$'000
2003
$'000
2002
$'000
Administered Revenues
Levies, Fees and Fines 291 631 3 247 294 878 231 597
Sales of Goods and Services 54 296 - 54 296 51 114
Interest 422 11 951 12 373 13 035
Dividends 33 625 8 000 41 625 33 510
Revenue from Sale of Assets 4 931 401 5 332 -
Other 5 043 13 739 18 782 22 346
Total Administered Revenues 389 948 37 338 427 286 351 602
Administered Expenses
Grants 1 300 198 1 666 365 2 966 563 3 365 959
Subsidies 147 945 - 147 945 92 281
Suppliers 32 477 833 33 310 52 714
Depreciation and Amortisation 1 448 650 2 098 660
Write-down of Assets - 430 430 8 055
Value of Assets Sold - 442 442 -
Other 2 397 7 2 404 4 123
Total Administered Expenses 1 484 465 1 668 727 3 153 192 3 523 792

Outcomes 1 and 2 are described in Note 1.1.

Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

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