Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005)
4This item must reflect total cash payments made under the special appropriation by the entity during the year.
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4 This item must reflect total cash payments made under the special appropriation by the entity during the year.
5 Entities must disclose their Portfolio Budget Statement estimated actual as reported in their 2006-07 budget papers. Cash payments are not legally limited to Budget estimates.
Table D: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Refund Provisions)1, 2
| <br>Particulars of legislation providing appropriation3 | 2006 | 2005 |
| Cash payments made during the year4 | | |
| Appropriations credited to Special Accounts | | |
| Refunds received (net) (FMA s30) | | |
| Total charged to special appropriation | | |
| Budget estimate5 (list each other legislative provision that refunds have been made under) | | |
| Budget estimate5 (FMA s28) | | |
1 Where an Agency has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid, that entity may make the following statement in the notes to their financial statements, in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 28 of the FMA Act or any other legislative provision allowing for refunds to be paid.”
2 If the Agency has made repayments using section 28 of the FMA Act or any other legislative provision for repayments required or permitted under law, the entity must disclose the aggregate of all those transactions in this table.
3 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:
4 This item must reflect the total refunds made by the Agency during the year (including s28 refunds if applicable).
5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Cash payments are not legally limited to Budget estimates.
Table E: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (section 39 of the FMA Act)1
| Investment of Public Money:<br>Special Appropriations under section 39 of the FMA Act2 | 2006 | 2005 |
| Amount invested carried from previous period | | |
| Prior year investments redeemed in current year3 | | |
| Investments made during the year3, 4 | | |
| Redemptions of current year investments4 | | |
| Amount invested carried to the next period (sum of the above) | | |
| Budget estimate5 | | |
1 Where an Agency has a delegation but has not used section 39 of the FMA Act, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Entity) has not used section 39 of the FMA Act.”
Section 4 - Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005) - This item must reflect total cash payments made under the special appropriation by the entity during the year. | Zoe
2 In the heading to the table:
3 Where a section 39 investment has earnt interest, and that interest is redeemed and reinvested, Agencies must include the amount of interest in this item, and state that this amount includes interest and the amount of interest that is included.
4 This is the gross amount.
5 Agencies must disclose their Portfolio Budget Statement estimate, and where relevant, adjust this estimate by their Portfolio Additional Estimates Statement estimate, for this item. Payments are not legally limited to Budget estimates.
Table F: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriation (Limited Amount)1, 2, 3
Particulars of legislation providing appropriation (including purpose) 2006 2005
Appropriation by type Appropriation by type
Amount available carried from previous period
Appropriation for reporting period
Appropriations to take account of recoverable GST (FMA s30A) 4
Available for payments
Cash payments made during the year (GST inclusive)
Appropriations credited to Special Accounts
Appropriations lapsed7
Amount available carried to the next period
Cash
Departmental appropriation receivable* 5,6,
Departmental appropriation receivable – drawing rights withheld by the Finance Minister (FMA s27(4))*5,6
1 Prepare a separate table for each Act, as current at reporting date. In the heading to the table:
(a) identify whether the special appropriation is administered or departmental; and
(b) disclose the outcomes it is associated with.
If a departmental special appropriation includes both outputs and capital funding, please provide separate columns for each type.
2 For cross-referencing purposes, where an entity makes disclosures under this Table, and at least one other entity has drawn from the same special appropriation, the entity making disclosures under this Table must name those other entities by making the following statement: “(Other entity/entities) also drew from (special appropriation provision/s).”
3 Agencies must disclose the amount of limited special appropriations that under the terms of the appropriation lapse due to the passage of time.
4 The amount recorded for this item will be the amounts of GST appropriated immediately before payments are made (i.e. cash paid basis), but will need to exclude GST appropriated for payments from Special Accounts. This will allow for comparability between appropriation disclosure under this Policy and the disclosure of special accounts under Policy 2E of this Schedule.
5 The amounts recorded in this table are primarily on a cash basis. However, where indicated by an asterisk (*) the amount recorded should be an accrual amount.
6 Entities must disclose the appropriation receivable net of that amount for which the Finance Minister “withheld the drawing right” and separately disclose the amount of appropriation receivable whose drawing rights have been withheld.
7 Lapsed for time, or any other, constraints contained within the provisions of the special appropriations enabling legislation. In this instance, there remains an unspent appropriation that is no longer available. This amount should reduce the ‘Amount available carried to the next period’.
Table G: Disclosure by agent in relation to special appropriations
Name of legislation providing the appropriation Responsible Agency 1 Responsible Agency 2…‘n’ Total
2C.2 The disclosures required by this Policy for appropriations, including special appropriations, are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.
2C.3 For special appropriations, a table must be prepared for each Act.
2C.4 For special appropriations, where an appropriation has not been drawn on in the current and the previous year, in place of completing the tables above, an entity may elect to make an abbreviated disclosure that includes all of the following:
whether the special appropriation is administered or departmental;
(b) the legislative provision that provides the authority for the special appropriation;
(c) the outcomes it is associated with;
(d) the fact that the special appropriation was not drawn on in the current or previous year; and
(e) for limited special appropriations, the balance available.
2C.5 Where there are material variances between the cash payments for the reporting period and the amount appropriated, otherwise authorised or estimated through Budget Estimates, entities should provide an explanation of those variances below the relevant Table.
2C.6 This Policy applies to both departmental and administered items.
Appropriation for refunds required or permitted by law
2C.7 Each Agency must ensure they have a valid appropriation for all amounts drawn from the Consolidated Revenue Fund for refunds (including repayments) required or permitted by law. These refunds, which include repayments made under section 28 of the FMA Act, should be recognised and/or disclosed under their valid appropriation, and as required by Table D of this Policy.
Investment of public money
2C.8 Each entity must recognise and/or disclose all public money invested in authorised investments under section 39 of the FMA Act or surplus funds under sections 18 and 19 of the CAC Act in Table E of this Policy. All money invested under a special account must also be disclosed in accordance with Policy 2E of this Schedule.
2D Reporting of Outcomes and Outputs
2D.1 Entities in the General Government Sector must disclose in the notes the following tables relating to outcomes and outputs:
Table A: Net Cost of Outcome Delivery
Outcome 11 Outcome …n1 Total2
Expenses
Total expenses
Costs recovered 3
Total costs recovered
Other external income4
Total other external income
Net cost/(contribution) of outcome
Outcomes are to be as specified in the Appropriation Acts relevant to the entity.
The amounts in the total column for departmental items must agree to the entity’s Statement of Financial Performance and the amounts in the total column for administered items must agree to the entity’s totals in the Schedule of Administered Items.
3) Cost recoveries are defined in the Commonwealth Cost Recovery Guidelines for Information and Regulatory Agencies, Department of Finance and Administration, and in Definition of Terms of this Schedule.
4) Entities should disclose the nature of these external revenues by major class. Where these include intra- or inter- government charges, such charges should be shown separately.
Table B: Major Departmental Income and Expenses by Output Groups and Outputs
Outcome 1#1 Output Group 1.1n Outcome
Output 1…n Group Total Total
Departmental expenses
Total departmental expenses
Funded by:
Show each relevant major class of income
Total departmental income
#1 Entities should prepare a separate Table B for each Outcome, with outcomes as specified in the Appropriation Acts relevant to the entity.
Paragraph 12.7 of AAS 29 Financial Reporting by Government Departments requires disclosure of revenues and expenses by ‘major activity’, which includes outputs.
Table C: Major Classes of Administered Income and Expenses by Outcome1
Outcome 12 Outcome…’n’2 Total3
Income
Expenses
1) Paragraph 12.9 of AAS 29 Financial Reporting by Government Departments requires disclosure of administered revenues and expenses by ‘major activity’.
2) Outcomes are to be as specified in the Appropriation Acts relevant to the entity.
3) The amounts in the total column for administered items must agree to the entity’s totals in the Schedule of Administered Items.
2D.2 Entities must state, in footnotes to these Tables, whether the net costs shown include intra-government costs (e.g. rent paid on Australian Government owned premises or fees for service) that would be eliminated in calculating the actual Budget outcome.
2D.3 Entities preparing these tables must attribute shared items using a basis that most accurately allocates the total cost or income to each output or outcome. If this basis differs from that used in preparing the Budget, additional disclosure must be included to explain the variation.
2D.4 Where an output or outcome changes during the year, entities must:
(a) match the changed output or outcome to accord with the adjusted output or outcome arrangements approved through the portfolio additional estimates process and published in an Appropriation Act; and
(b) apportion the amounts disclosed between the new and former outputs or outcomes, based on the date that the Appropriation Act notifying the change received Royal Assent, so that entities report against the original outputs or outcomes up to the date of the change and against the revised outputs or outcomes after that date.
2D.5 The attribution method used to apportion shared items must be reliable and must be disclosed in the text accompanying the tables (see AAS 29 paragraph 12.7).
2D.6 This Policy applies to both departmental and administered items.
2D.7 The amounts disclosed must be net of refunds and adjustments.
2E Special Accounts
2E.1 Agencies must:
(a) prepare a separate table for each Special Account used during the current year or comparative year; or
(b) apply Clause 2E.3 of this Policy where the Special Accounts have not been used during the current year and comparative year; and
(c) disclose the table/s or disclosure as required by Clause 2E.3 of this Policy, in the notes to the financial statements.
Table A: Special Accounts
| Special Account information (eg account name)1, 2 | 2006 | 2005 |
| Balance carried from previous period * | | |
| Appropriation for reporting period3 | | |
| Costs recovered | | |
| GST credits (FMA s30A) | | |
| Realised investments | | |
| Other receipts (Show each major class)4 | | |
| Total Credits | | |
| Available for payments | | |
| Payments made (Show each major class) 4 | | |
| Repayments debited from the Special Account (s 28) | | |
| Investments debited from the special account (FMA s39) | | |
| Total Debits | | |
| Balance carried to the next period * (excluding investment balances – refer Table B) | | |
| Represented by: | | |
| Cash – transferred to the Official Public Account | | |
| Cash – held by the entity | | |
| Total balance carried to the next period | | |
* Special Accounts may not have a debit balance at any point.
1) In the heading information, entities should also indicate:
(a) whether the account is administered, departmental or Special Public Money in nature;
(b) the purpose of the Special Account; and
(c) the authority under which the Special Account was established.
[Note: Where a Special Account was established by other Acts, the enabling legislation should also be disclosed.]
2) Where a Special Account’s status has changed during the year (e.g. established, varied, revoked or abolished), the nature and date of effect of each change should be included in the heading information. Where the nature of these changes are significant, consideration should be given as to whether two disclosure tables should be prepared for the “before” and “after” periods.
3) Each current year Appropriation Act should be reported on a separate line in the table and the total amount transferred and reported should agree with the Special Accounts disclosures as required by Policy 2C of this Schedule.
4) Major classes are as per the primary statements in Appendix A of this Schedule. Where legislation directly credits a Special Account with amounts, this table should include a line ‘Amounts credited under the (full name of) Act’. Where interest is credited to a Special Account, this table should include a line ‘Interest amounts credited’.
Table B: Special Accounts Investment of Public Money 1, 2, 3
| Full official title of Special Account: Investment of Public Money under section 39 of the FMA Act | 2006 | 2005 |
| Opening balance | | |
| Investments made | | |
| Interest earned | | |
| Transaction charges | | |
| Investments realised | | |
| Closing Balance | | |
1 If a delegation has been made under section 39 of the FMA Act to the CEO of the Agency in respect of the Special Account, and that delegation has been used, the Agency must disclose the aggregate of all those transactions in this table.
2 Where an Agency has not used section 39 of the FMA Act in respect of the Special Account, that Agency may make the following statement in place of disclosing this table: “For the periods 2004-05 and 2005-06, (Agency) has not used section 39 of the FMA Act in respect of this Special Account.”
3 This Table must reflect investments made under section 39 of the FMA Act by the Agency in respect of this Special Account.
2E.2 Agencies that invest amounts standing to the credit of a special account, using a valid delegation of FMA Act section 39 investment powers, should disclose the net amount invested during the year in the text accompanying the Special Account table(s).
2E.3 Special Accounts which have not been used during the current year and comparative year, regardless of whether they have a nil or positive balance, may make the following disclosure instead of preparing the table at Clause 2E.1 of this Policy:
(a) the Special Account’s title;
(b) whether the account is administered, departmental or Special Public Money in nature;
(c) the purpose of the Special Account;
(d) the authority under which the Special Account was established;
(e) a statement noting the Special Account has not been used during the current year and comparative year; and
(f) the Special Account’s balance.
2E.4 Disclosures required by this Policy are to be included, in the form specified, regardless of whether the relevant amounts are considered to be material.
2E.5 This Policy applies to both departmental and administered items.
CHAPTER 3 ASSETS
3A Non-Financial Assets (previously Internal Use Software/Non-Current Assets/Impairment of Non-Financial Assets/Analysis of Property, Plant and Equipment and Intangibles)
Non-Financial Assets
3A.1 Subject to 3A.7, entities must revalue every class of assets that include assets of the types listed below, on the fair value basis ie the revaluation method under AASB 116 Property, Plant and Equipment, or the fair value model under AASB 140 Investment Property, as appropriate:
land;
land and buildings;
infrastructure, plant and equipment;
heritage and cultural assets; and
investment properties.
3A.2 In the absence of an active market the cost basis must be applied to intangible assets. Intangibles shall be carried at fair value where an active market exists.
3A.3 The cost basis must be applied to Specialist Military Equipment, subject to satisfactory compliance with the transitional provisions of AASB 1.
3A.4 Revaluations must be made with sufficient regularity to ensure that the carrying amount of assets does not differ materially from fair value as at reporting date. The frequency of valuations will depend on the significance and volatility in changes to the fair value of the relevant assets.
3A.5 Non-financial assets may be revalued progressively.
3A.6 This Policy applies to both entity and administered assets.
3A.7 A for-profit entity or an Authority that is a university may elect not to apply the requirements at Policies 3A.1 to 3A.5.
Impairment of Non Financial Assets
3A.8 Entities, or parts of entities, other than those whose predominant purpose is to generate net cash inflows, are not cash-generating units for the purpose of AASB 136 Impairment of Assets.
Analysis of Property, Plant and Equipment, and Intangibles
3A.9 Notes to the financial statements must include the following listed tables, where applicable, in accordance with Appendix A:
Table A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment;
Table B: Property, Plant and Equipment Held under Finance Lease;
Table C: Property, Plant and Equipment under Construction;
Table D: Reconciliation of the Opening and Closing Balances of Investment Property;
Table E: Reconciliation of the Opening and Closing Balances of Intangibles; and
Table F: Intangibles under Construction.
Borrowing Costs
3A.10 Borrowing costs are to be expensed as incurred. The Alternative Treatment allowed under AASB 123 is not to be adopted.
3B Restricted Assets
3B.1 Where the use of an asset that is recognised in the Balance Sheet and/or Schedule of Administered Items is restricted, wholly or in part of, by regulations or other externally-imposed requirements, and information about those restrictions is relevant to assessing the performance or financial position of the entity, the following must be disclosed:
the identity and carrying amount of the assets; and
the nature of the restrictions.
3B.2 Where the use or holding of an asset is subject to restrictions, the fair value ascribed to that asset should reflect those restrictions.
3B.3 This Policy applies to both entity and administered assets.
3C Assets Held in Trust
3C.1 The financial statements of entities must include a note giving particulars of assets, cash and non-cash, held in trust but not controlled by the entity nor managed on behalf of the Australian Government.
3C.2 A summary of the categories of assets held at the end of the reporting period and the purpose for which they are being held must be disclosed for assets referred to in Clause 3C.1.
3C.3 In relation to cash assets, there must be disclosed, for each significant category, the:
total amount held at the beginning of the reporting period;
total receipts during the reporting period;
total payments during the reporting period; and
total amount held at the end of the reporting period:
(i) by the entity; and
(ii) in the Official Public Account.
3C.4 In relation to non-cash assets, there must be disclosed, for each significant category:
a short description of each category;
the value of assets acquired or disposed of during the reporting period; and
the value of assets at the end of the reporting period.
3D Heritage And Cultural Assets
3D.1 Heritage and cultural items should only be recognised as assets where they meet the asset definition and recognition criteria set out in the AASB Framework for Preparation and Presentation of Financial Statements (Framework).
3D.2 Heritage and cultural assets should be depreciated over the period they will be held and used. Heritage and cultural assets should not be depreciated if there is no foreseeable limit to the period over which they are held and used.
3D.3 When an entity controls or administers heritage and cultural items that are not recognised as assets, the notes to the financial statements must disclose:
a description of those items;
the reason for non-recognition of those items;
the amount expended to acquire such items during the financial year; and
the amount of proceeds from the disposal of such items during the financial year.
3D.4 This Policy also applies to those components of assets that have heritage or cultural value, where these can be separately identified from, and are material in relation to, the asset as a whole.
3D.5 This Policy applies to both entity and administered items where applicable.
CHAPTER 4 LIABILITIES
4A Contingent Liabilities and Contingent Assets
4A.1 Contingent liabilities and contingent assets that can be reliably measured must be included in the Schedule of Contingencies, in accordance with Appendix A of this Schedule, except where the probability of a liability or asset being recognised in the future is remote. Equivalent disclosure for administered contingent liabilities and contingent assets must be included in the Schedule of Administered Items.
4A.2 Contingent liabilities and contingent assets must be classified in accordance with the categories in the Schedule of Contingencies. Material remote contingent liabilities and contingent assets must be explained in a note to the financial statements that includes the information referred to in paragraphs 86 and 89 of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
4A.3 The reference in paragraph 92 of AASB 137 to ‘entity’ must be read as ‘the entity, another Australian Government entity or the Australian Government as a whole’.
4B Commitments
4B.1 Commitments are:
intentions to create liabilities, as evidenced by undertakings or agreements to make future payments to other entities; and
unrecognised liabilities that are obligations contained in a contract, agreement or undertaking that are equally proportionately unperformed, except where the obligation is an onerous contract as defined in AASB 137 Provisions, Contingent Liabilities and Contingent Assets.
4B.2 The nature, and where quantifiable the amount, of each category of commitments must be disclosed in a Schedule of Commitments in accordance with the tables in Appendix A. Equivalent disclosure for administered commitments must be included in the Schedule of Administered Items.
4B.3 Commitments may be capital, non-capital, payable or receivable.
4B.4 The provisions of this Policy apply to both entity and administered items.
4C Employee Entitlements (New Policy)
4C.1 This Policy is based on the requirements of AASB 119 Employee Benefits as issued in December 2004. All entities are required to early adopt this version of AASB 119 Employee Benefits.
4C.2 Entities must identify any annual leave that is not expected to be consumed within twelve months after the end of the period in which the employees render the related service and ensure it is discounted in accordance with AASB 119.
4C.3 Entities with less than 1,000 full-time equivalent employees (FTE) may continue to use the shorthand method when calculating long-service leave liability.
4C.4 Entities with more than 1,000 FTE are to undertake their own assessments to estimate the liability for long service leave. The method of doing this would be one of the following:
if the entities employee profile is, demonstrably, not materially different than the Australian Government’s standard profile use the shorthand method;
undertake an actuarial assessment ; or
use a detailed calculation basis (eg. employee by employee).
4C.5 Public Finance Corporations (PFCs), Government Business Enterprises (GBEs) and Air Services Australia can apply any of the three recognition options for actuarial gains and losses for defined benefit plans. All other entities are to apply the “direct to retained profit” option of recognising actuarial gains and losses for defined benefit plans. This is applicable to entity and administered items.
4C.6 Defined benefit post employment plans where the actuarial and investment risk falls to other parties are considered defined contribution plans. Whilst the CSS, PSS Defined Benefit Plans and MSBS are defined benefit plans at the whole-of-government level, agencies contributing to these schemes are to account for these contributions under AASB 119 as if they were defined contribution plans.
4C.7 Entities that have been advised by Finance that they will have an additional employer lump sum contribution should show a liability for this amount at balance date.
4C.8 The new PSS Accumulation Plan is considered a Defined Contribution Plan from the point of view of both agencies and at the whole-of-government level.
4C.9 Plans where the actuarial risk falls on the agency must be accounted for as defined benefit plans.
4C.10 The market yield on long-term government bonds must be referenced when determining a discount rate for discounting purposes.
CHAPTER 5 EQUITY
5A Restructure
5A.1 Where restructures have occurred during the reporting period, the financial statements of entities must include a note giving particulars of the restructure.
5A.2 Non-reciprocal transfers of assets and liabilities resulting from a restructure between:
(a) wholly owned Australian Government entities; or
(b) departmental and administered classifications
due to:
(i) an Australian Government decision;
(ii) an Administrative Arrangements Order (AAO);
(iii) an Act of Parliament or a Regulation under an Act; or
(iv) a Written Agreement between the relevant Portfolio Minister(s) and the Finance Minister or the Prime Minister, as appropriate;
are to be treated as contributions by, or distributions to, owners and must be recognised as direct adjustments to ‘Equity’ (Restructuring) at their net book value (less any token consideration) immediately prior to transfer. For the purposes of UIG Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities, Clauses 5A.2(b)(i) to (iv) of this Policy are formal designations of transfers as contributions by or distributions to owners.
5A.3 Paragraphs 7.4, 10.6 – 10. 9 of AAS 29 Financial Reporting by Government Departments apply to all Australian Government agencies.
5A.4 Transfers of administered assets or liabilities between two wholly owned Australian Government entities do not result in any income or expenses. Transfers of administered items must always be adjusted to Administered transfers to or from Government (Restructuring) at their net book value immediately prior to transfer.
5A.5 All other transfers of assets and liabilities from one entity to another must be treated as giving rise to income or expenses in the financial period the transfer occurs.
5A.6 This Policy applies to entity and administered items.
5B Return of Funds (previously Analysis of Equity)
Returns on Capital - Dividends
5B.1 Where legislation provides that a Minister(s) may determine the amount to be paid as a dividend or similar distribution from a wholly-owned Australian Government entity, with or without recommendation or proposal from the
entity, the entity must recognise a liability for that dividend or distribution at the date of the Ministerial determination.
5B.2 Where the entity is required to pay its full profit for the year to the Australian Government, a liability must be recognised for an amount equal to profit for the current year as at the entity’s reporting date.
5B.3 Where any entity is required to pay its profit for the year to the Australian Government after the deduction of certain amounts, a liability for dividend must be recognised if those amounts are known before the date of completion of the financial statements. If these amounts are not known before this date, the entity should instead disclose a contingent liability.
Repayments of Appropriations
5B.4 Where an Agency makes payments to the Official Public Account (OPA) in the nature of repayments of amounts drawn down but does not relinquish the right to redraw those amounts, the entity should account for this by increasing ‘Appropriations Receivable’. Such payments are neither returns on capital nor returns of capital.
Returns of Capital
5B.5 Where an entity relinquishes control of funds which had been recognised as appropriation revenue in a previous year, by making a non-reciprocal payment to the Official Public Account, other than as a dividend (as provided in Clauses 5B.1 to 5B.3 of this Policy, or otherwise), the entity shall account for the payment by debiting ‘Equity’.
5B.6 An entity shall recognise a debit to ‘Equity’, as required by Clause 5B.5 of this Policy, when a departmental appropriation is reduced pursuant to a determination of reduction in accordance with Appropriation Acts, to the extent the entity has not previously recognised a debit entry evidencing control of the appropriation has been relinquished.
Timing of recognition
5B.7 Reductions in ‘Equity’ under Clauses 5B.5 and 5B.6 of this Policy are recognised in the financial statements of the entity:
(a) if they are required by Ministerial direction, at the date of that direction;
(b) if they are reductions to departmental appropriations pursuant to a determination of reduction in accordance with Appropriation Acts, at the date of that direction; or
(c) in all other cases, at the date that payment is made.
CHAPTER 6 ADMINISTERED ITEMS
6A Administered Reporting
6A.1 The financial statements of an entity which administers activities for the Australian Government must include a Schedule of Administered Items and associated Administered Notes:
(a) is in the form prescribed in Appendix A Section 3 of this Schedule;
(b) includes the Administered Reconciliation Table in accordance with Clause 6A.3 of this Policy;
(c) includes disclosures in relation to accounting policies and financial instruments in accordance with the relevant accounting standards, and
(d) uses background shading for the Schedule of Administered items and Administered Notes.
The Australian Office of Financial Management (AOFM) is excluded from the requirement to present a ‘Schedule of Income Administered on Behalf of Government’ and a ‘Schedule of Expenses Administered on Behalf of Government’ and associated disclosures as presented in Appendix A, Section 3. AOFM should instead adhere to the income statement reporting requirements contained in AASB 101 Presentation of Financial Statements.
6A.2 The Schedule of Administered Items and Administered Notes must:
(a) to the extent that it is applicable, comply with Policy 1B of this Schedule;
(b) comply with all applicable requirements of this Schedule; and
(c) state in the heading of or as a footnote to the Schedule of Administered Items a brief description of the activities being administered on behalf of the Australian Government.
6A.3 Administered Reconciliation Table
Note
2006
2005
Opening administered assets less administered liabilities at 1 July
Plus Administered income
Less Administered expenses
Administered transfers to/from Australian Government:<br>Appropriation Transfers from OPA:<br>Annual Appropriations Administered expenses<br>Administered assets and liabilities Appropriations<br>Special Appropriations (limited)<br>Special Appropriations (unlimited)<br>Transfers to OPA<br>Restructuring<br>Transfers to other Entities (Finance – Whole of Government)<br>Transfers from other Entities (Finance – Whole of Government)
Administered revaluations taken to/from reserves
Currency translation gain/loss
Changes in accounting policies
Closing administered assets less administered liabilities
6B Administered Investments
6B.1 “Administered investment” is defined for the purpose of this Policy as an investment by the Australian Government in a subsidiary, associate or joint venture that is managed by an entity on behalf of the Australian Government.
6B.2 Administered investments, other than those held for sale in accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, should be measured at fair value. If it is necessary to use cost or deemed cost, in accordance with paragraph 19 of AASB 1, the fair value approximation of cost to be used is fair value at 30 June 2005 as adjusted for known changes, such as changes in equity, during the year ended 30 June 2006. For the purposes of paragraph 19 of AASB 1, the transition to AEIFRS and the changes in valuation requirements are considered to be a significant event.
Impairment
6B.3 Administered investments, other than those held for sale or carried at fair value, are subject to impairment under AASB 136 Impairment of Assets.
6B.4 For the purposes of AASB 136, the depreciated replacement cost of an administered investment is equal to the Commonwealth’s share of the net assets of the investee measured in accordance with the Australian Accounting Standards applicable to the investee.
Administered Investments Held for Sale
6B.5 Administered investments are subject to the measurement provisions of AASB 5 when they become held for sale as defined in that Standard.
6B.6 The costs of sale of an administered investment are expensed as incurred, regardless of whether the investment meets the criteria to be ‘held for sale’ in AASB 5. Costs of sale are not added to the carrying amount of administered investments.
6B.7 The following particulars must be disclosed in the administered notes for each sale of an administered investment:
proceeds from sale;
written down value of the asset sold;
recognised gain or loss on sale;
selling costs incurred; and
the net gain or loss after deducting selling costs incurred.
CHAPTER 7 SPECIFIC NOTE DISCLOSURES
7A Compensation and Debt Relief in Special Circumstances
7A.1 Disclosures under this Policy must be made regardless of whether the relevant amounts are considered to be material.
7A.2 The financial statements must include a note showing any expenses and/or liabilities in relation to each of the following:
(a) act of grace payments made under subsection 33(1) of the Financial Management and Accountability Act 1997 (FMA Act);
(b) waivers of debt owing to the Australian Government, (being amounts that the entity would, but for the waiver, have been entitled to receive on behalf of the Australian Government);
(i) pursuant to subsection 34(1) of the FMA Act; and
(ii) pursuant to other legislation, which must be specified;
(c) payments under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme;
(d) payments under approved ex-gratia programmes, the nature of which must be identified; and
(e) payments in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act).
7A.3 The note must disclose the number of cases and total amount expensed during the reporting period under each of the mechanisms specified at Clause 7A.2. In addition, where any of the act of grace cases expensed during the reporting period include periodical payments for specified periods (paragraph 33(1)(b) of the FMA Act refers), the note must separately identify the number of such cases and the total amount expensed in relation to those cases.
7A.4 The note must disclose the number and aggregate present value amount of those cases relating to any provisions at the end of the reporting period under each of the mechanisms specified at Clause 7A.2. This requirement is particularly relevant where cases under the act of grace mechanism include periodical payments for specified periods past the reporting date, but may also apply to any of the other mechanisms in particular circumstances.
7A.5 Each disclosure required by this Policy must be cross-referenced with other relevant notes, and/or schedules, as applicable.
7A.6 This Policy applies to departmental and administered items, which must be distinguished in the relevant note.
7B Director/Executive Remuneration
7B.1 Disclosures under this Policy must be made by Australian Government entities. For-profit entities are exempt from this Policy, as they are already required to disclose information in accordance with AASB 124 Related Party Disclosures.
7B.2 The following must be disclosed in the notes to the financial statements of an Authority:
the number of Directors of the Authority whose total remuneration for the financial year derived from the Authority in connection with the management of the affairs of the entity or its subsidiaries, whether as a Director or otherwise, falls within each band of $15,000;
the total of the remuneration referred to in paragraph (a) of all Directors referred to in that paragraph; and
the consolidated financial statements must include in a note the total of the remuneration of all Directors of each entity in the economic entity, comprising the Authority and its subsidiaries, for the financial year.
7B.3 The following information must be disclosed in the notes to the financial statements in regard to the remuneration of senior executives:
(a) the aggregate remuneration of all senior executives of the entity whose remuneration for the financial year is $130,000 or more; and
(b) the number of managers of the entity whose total remuneration for the financial year falls within each successive $15,000 band, commencing at $130,000;
being remuneration received or due and receivable, directly or indirectly, from the entity or any related party in connection with the management of the affairs of the entity or any of its subsidiaries, whether as a senior executive or otherwise.
7B.4 The following information must be disclosed in the notes to the financial statements of an economic entity where an Agency or Authority is the parent entity in the economic entity:
(a) the aggregate remuneration of all senior executives of the economic entity whose remuneration for the financial year is $130,000 or more; and
(b) the number of managers of the economic entity whose total remuneration for the financial year falls within each successive $15,000 band, commencing at $130,000;
being remuneration received or due and receivable, directly or indirectly, from the entities in the economic entity or a related party in connection with the management of the affairs of the entities in the economic entity, whether as a senior executive or otherwise.
7B.5 In addition to all other requirements of this Policy, the aggregate amount of separation and redundancy expenses for senior executives should be disclosed separately.
7C Remuneration of Auditors
7C.1 Disclosures under this Policy must be made regardless of whether the relevant amounts are considered to be material.
7C.2 The financial statements of an entity must include a note giving particulars of the remuneration of auditors for:
(a) auditing the financial statements for that reporting period; and
(b) any other services provided during that reporting period.
7C.3 The fair value of any of the services provided free of charge by the Auditor-General must be shown in the notes to the financial statements. For the purpose of this Policy, performance audits are not taken to be services provided to an entity.
7C.4 Authorities must disclose the extent to which auditors’ remuneration is paid to an auditor other than the Auditor-General.
7D Investment of Surplus Money by Authorities (New Policy)
7D.1 The financial statements of an Authority must include a note giving particulars of any investments held that are not covered by paragraphs 18(3)(a)-(c) of the Commonwealth Authorities and Companies Act 1997 (CAC Act).
7D.2 Details should include the statutory basis for holding additional investment(s) outside those allowed under paragraphs 18 (3)(a)-(c) of the CAC Act, including whether an approval has been received by the authority under paragraph 18(3)(d) of the CAC Act.
CHAPTER 8
8A Financial Instruments (New Policy)
8A.1 AEIFRS give entities a choice over whether to restate comparative (i.e. 2004-05) information on financial instruments in the first financial report prepared under AEIFRS. For consistency across government, this Policy prohibits restatement. Instead, entities should make the additional disclosures required by paragraph 36A of AASB 1 First Time Adoption of International Financial Reporting Standards viz:
the fact that comparatives have not been restated;
the recognition and measurement basis for the comparative information; and
the nature of the main adjustments that would be necessary to conform the comparative information to AEIFRS.
Public Finance Corporations (PFCs) may choose not to apply this policy, if by its non-application, more useful financial information results.
8A.2 On initial adoption of AEIFRS, an entity must classify all financial instruments that are traded in markets as either:
available-for-sale financial instruments; or
held at fair value through profit and loss,
where these classifications are permitted by AASB 139 Financial Instruments: Recognition and Measurement, unless it is a financial liability resulting from the issue or reissue of Australian currency notes, in which case it should be classified in accordance with AASB 139. Where an accounting standard or other financial framework document requires an entity to make a designation to adopt a particular accounting treatment, a designation made during the 2005-06 financial year is deemed to be effective on 1 July 2005 unless stated otherwise or could not be effective on that date in the particular circumstances. The designation of financial instruments by agencies will have the affect of designating those instruments in the consolidated whole of government accounts.
8A.3 Where an entity first recognises, after the beginning of the first AEIFRS reporting period, a financial instrument that is traded in a market, the entity must classify it as set out in clause 8A.2 of this Policy.
8A.4 All impairment losses on financial instruments under AASB 139 should be debited to a separate account, rather than being debited directly against the carrying amount of assets. A separate account must be maintained for each class of financial asset.
8A.5 Where AASB 139 allows entities to choose between:
capitalising gains and losses on hedges into the carrying amount of the underlying assets; and
progressively transferring such gains and losses from equity to income or expense,
entities should adopt the former treatment in all cases.
8A.6 Where an entity has held derivative financial instruments at any time during the period, it shall disclose:
its objectives for holding or issuing those derivatives;
the context needed to understand those objectives; and
the strategies for achieving those objectives.
Note: Entities’ ability to enter into hedging or derivative arrangements is bound by their legislative framework and relevant government policies.
APPENDIX A - Forms of Financial Statements, Schedules and Notes:
Liabilities included in disposal groups held for sale
Other non-current liabilities
Total Current Liabilities
<br> <br>
Balance Sheet for For-Profit Reporting Entities (continued)
Non-Current Liabilities
Payables (note x)
Interest bearing liabilities (note x)
Provisions (note x)
Deferred Tax liabilities (note x)
Other non-current liabilities
Total Non-current Liabilities
Total Liabilities
EQUITY
Parent Entity Interest
Contributed equity
Statutory funds
Total Parent Entity Interest
Minority Interest
Contributed Equity
Statutory Funds
Total Minority Interest
Total Equity
Statement of Cash Flows for For-Profit Reporting Entities
for the period ended __________
Operating Activities 2006 2005
Net Cash From or (Used by) Operating Activities
Proceeds from sales of property, plant and equipment
Proceeds from sales of financial instruments
Repayments of loans made
Investments (section 18 & section 19 CAC Act)
Purchase of property, plant and equipment
Purchase of financial instruments
Loans made
Investments (section 18 & section 19 CAC Act)
Net Cash From or (Used by) Investing Activities
Proceeds from issuing financial instruments
Proceeds from loans
Repayments of debt
Net Cash From or (Used by) Financing Activities
Cash at the beginning of the reporting period
Effect of exchange rate movements on cash at the beginning of the reporting period
Cash at the End of the Reporting Period
STATEMENT of CHANGES in EQUITY for For-Profit Reporting Entities
Accumulated Results Asset Revaluation Reserve Other Reserves Contributed equity/capital Total Equity
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Opening Balance
Balance carried forward from previous period
Adjustment for errors
Adjustment for changes in accounting policies
Adjusted Opening Balance
Income and Expense
Income and Expenses recognised Directly in Equity (each item)Subtotal income and expenses recognised directly in equityNet Operating Result
Total income and expenses recognised directly in equity
Sub-total Income and Expenses
of which:
attributable to Australian Government
attributable to minority interest
Transactions with Owners
Distributions to owners
Returns on Capital
Returns of Capital
Other (give details)
Contributions by Owners
Appropriation (equity injection)
Other (give details below)
Sub-total Transactions with Owners
Transfers between equity components
Closing balance
Less: minority interests
Closing balance attributable to the Australian Government
SCHEDULE OF COMMITMENTS for For-Profit Reporting Entities
As at________________________
Schedule of Contingencies for For-Profit Reporting Entities
Contingent Liabilities Guarantees Indemnities Uncalled shares or capital subscriptions Claims for damages or costs Warranties Letters of Comfort TOTAL
Contingent Assets
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note [specify number]
Income 2006 2005
Corporation Law fees
License fees
Other goods and services
Bills receivable
Other revenues
Gains
Net gains from sale of assets
Other net gain on sale of assets
Reversal of previous asset write-downs
Assets revaluation increments
Reversal of impairment losses
Resources received free of charge
Expenses 2006 2005
Wages and salaries
Workers compensation premiums and claims
Other employee expenses
Note: Separation and redundancy payments must exclude any benefits that would have been accrued and payable if redundancy had not occurred (e.g. accrued leave entitlements and lump sum superannuation payments).
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Local governments
Individuals
Depreciation and amortisation
Finance Costs
Other finance costs
Write-down and impairment of assets
Revaluation decrements – Non-financial Assets
Net foreign exchange losses
Net losses from sale of assets
Other net losses from sale of assets
Other expenses
Guarantees, undertakings and indemnities
Assets 2006 2005
Trust Accounts
Deposits made under section 18 CAC Act; section 19 CAC Act
Repayments of debt (including finance lease principal)
Net Cash From or (Used by) Financing Activities
Cash at the beginning of the reporting period
Effect of exchange rate movements on cash at the beginning of the reporting period
Cash at the End of the Reporting Period
STATEMENT of CHANGES in EQUITY for Not-For-Profit Reporting Entities
Accumulated Results Asset Revaluation Reserve Other Reserves Contributed equity/capital Total Equity
2006 2005 2006 2005 2006 2005 2006 2005 2006 2005
Opening Balance
Balance carried forward from previous period
Adjustment for errors
Adjustment for changes in accounting policies
Adjusted Opening Balance
Income and Expense
Income and Expenses Recognised Directly in Equity (each item)Subtotal income and expenses recognised directly in equityNet Operating Result
Total income and expenses recognised directly in equity
Sub-total Income and Expenses
of which:
attributable to Australian Government
attributable to minority interest
Transactions with Owners
Distributions to owners
Returns on Capital
Returns of Capital
Other (give details)
Contributions by Owners
Appropriation (equity injection)
Other (give details below)
Sub-total Transactions with Owners
Transfers between equity components
Closing balance
Less: minority interests
Closing balance attributable to the Australian Government
SCHEDULE OF COMMITMENTS for Not-For-Profit Reporting Entities
As at________________________
Schedule of Contingencies for Not-For-Profit Reporting Entities
Contingent Liabilities Guarantees Indemnities Uncalled shares or capital subscriptions Claims for damages or costs Warranties Letters of Comfort TOTAL
Contingent Assets
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note [specify number]
Income
Revenue from Government
Appropriations:
Departmental Outputs
Departmental Special Appropriations
License fees
Other goods and services
Bills Receivable
Other revenue
Reversal of previous asset write-downs
Assets revaluation increments
Reversal of impairment losses
Net gain from sale of assets
Other net gain from sale of assets
Resources received free of charge
Expenses 2006 2005
Wages and Salaries
Workers compensation premiums and claims
Other Employee expenses
Note: Separation and redundancy payments must exclude any benefits that would have been accrued and payable if redundancy had not occurred (e.g. accrued leave entitlements and lump sum superannuation payments).
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.
Depreciation and amortisation
Finance Costs
Other finance costs
Write-down and impairment of assets
Revaluation decrements Non-financial Assets
Net foreign exchange losses
Net losses from sale of assets
Other net losses from sale of assets
Other losses
Guarantees, undertakings and indemnities
Assets
Trust Accounts
Deposits made under section 39 FMA Act; section 18 CAC Act; section 19 CAC Act
Infrastructure, plant and equipment (disclosed by class)
Patents, trademarks, brand names and licences
Purchased
Internally developed
Intangibles under development
Goodwill
Other Non-Financial Assets
Other non-financial assets
Assets held for sale
Liabilities
Public Sector
Private sector not for-profit entities
Private sector for-profit entities
Interest payable
Maturity schedule must be included for total loans showing amounts payable within:
Maturity schedule must be included for total leases showing amounts payable within:
Leave
Workers’ compensation
Other provisions
Table 3A.9 A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment.
Item Land ($’000) Investment property ($’000) Buildings ($’000) Specialist military equipment ($’000) Other infra-structure, plant and equipment ($’000) Heritage and cultural assets ($’000)
As at 1 July (previous year)
Gross book value
Opening Net book value
Additions:
by purchase
by finance lease
Internally developed
from acquisitions of entities or operations (including restructuring)
Revaluations and impairments through equity
Reclassifications
Depreciation/amortisation
Impairments recognised in the operating result
Other movements (give details below)
Disposals:
from disposal of entities or operations (including restructuring)
other disposals
As at 30 June (current year)
Gross Book Value
Closing Net Book Value
Table 3A.9 B: Property, Plant and Equipment Held under Finance Lease.
Item<br>
Land<br> <br> <br> <br>($’000)
Investment property<br> <br> <br>($’000)
Buildings<br> <br> <br> <br>($’000)
Specialist military equipment<br> <br>($’000)
Other infra-structure, plant and equipment<br>($’000)
Heritage and cultural assets<br> <br>($’000)
As at 30 June (current year)
Gross value
Accumulated deprecation/amortisation
Closing Net book value
As at 30 June (previous year)
Gross value
Accumulated deprecation/amortisation
Closing Net book value
Table 3A.9 C: Property, Plant and Equipment under Construction.
Item<br>
Buildings<br>($’000)
Specialist military equipment<br>($’000)
Other infra-structure, plant and equipment<br>($’000)
Carrying amount at 30 June (current year)
Carrying amount at 30 June (previous year)
Table 3A.9 D: Reconciliation of the Opening and Closing Balances of Investment Property
| Item<br> <br> | 2005<br>($’000) | 2006<br>($’000) |
| As at 1 July (previous year) | | |
| Additions: | | |
| by acquisition | | |
| by subsequent expenditure | | |
| Disposals and property held for sale | | |
| Net gain (loss) from fair value adjustments | | |
| Net foreign currency exchange differences | | |
| Transfers | | |
| Other changes | | |
| As at 30 June (current year) | | |
Table 3A.9 E: Reconciliation of the Opening and Closing Balances of Intangibles1.
Item Computer software internally developed ($’000) Computer software purchased ($’000) Other intangibles internally developed ($’000) Other intangibles purchased ($’000)
As at 1 July (previous year)
Gross book value
Opening Net book value
Additions
from acquisitions of entities or operations (including restructuring)
Reclassifications
Depreciation/amortisation
Impairments recognised in the operating result
Other movements (give details below)
Disposals:
from disposal of entities or operations (including restructuring)
other disposals
As at 30 June (current year)
Gross Book Value
Closing Net Book Value
Entities may incorporate this table into the main asset table (Table 3A.9.A) where it is considered appropriate. Sufficient information and subtotal columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the Balance Sheet.
Other intangibles internally developed<br> <br> <br>($’000)
Other intangibles purchased<br> <br> <br> <br>($’000)
Carrying amount at 30 June (current year)
Carrying amount at 30 June (previous year)
Entities may incorporate this table into Table 3A.9.C where it is considered appropriate. Sufficient information and subtotal columns must be disclosed to enable reconciliation of amounts to the corresponding line items disclosed on the Balance Sheet.
Appendix A
Section 3: Administered Reporting
Income Administered on Behalf of Government
for the period ended ___________________
Taxation
Income tax (note x)
Indirect tax (note x)
Other taxes, fees and fines (note x)
Total Taxation
Non-Taxation
Goods and services (note x)
Interest (note x)
Dividends (note x)
Other sources of non-taxation revenues (note x)
Rents (note x)
Royalties (note x)
Total Non-Taxation
Total Revenues Administered on Behalf of Government
Net foreign exchange gains (note x)
Net gain from sale of assets (note x)
Other gains (note x)
Total Gains Administered on Behalf of Government
Total Income Administered on Behalf of Government
Expenses Administered on Behalf of Government
for the period ended _______________________
Grants (note x)
Subsidies (note x)
Personal benefits (note x)
Employees (note x)
Suppliers (note x)
Depreciation and amortisation (note x)
Write-down and impairment of assets (note x)
Interest (note x)
Losses
Net foreign exchange losses (note x)
Net loss from sale of assets (note x)
Other losses (note x)
Total Expenses Administered on Behalf of Government
Assets Administered on Behalf of Government
as at ___________________
Financial Assets
Cash and cash equivalents (note x)[Note this can include Investments including (section 39 FMA Act)
Receivables (note x)
Investments including section 39 FMA Act
Accrued revenues (note x)
Other financial assets (note x)
Total Financial Assets
Non-Financial Assets
Land and buildings (note x)
Infrastructure, plant and equipment (note x)
Heritage and cultural assets (note x)
Investment Properties (note x)
Inventories (note x)
Intangibles (note x)
Biological Assets (note x)
Assets held for sale (note x)
Total Non-Financial Assets
Total Assets Administered on Behalf of the Government
Liabilities Administered on Behalf of Government
as at ___________________
Australian Government Securities (note x)
Loans (note x)
Leases (note x)
Deposits (note x)
Overdraft
Total Interest Bearing Liabilities
Employees (note x)
Taxation refunds provided
Australian currency on issue
Other Provisions (note x)
Total Provisions
Suppliers (note x)
Grants and subsidies (note x)
Borrowing Costs
Personal benefits payable
Taxation refunds due
Other payables (note x)
Total Payables
Liabilities included in disposal groups held for sale
Total Liabilities Administered on Behalf of the Government
Administered Cash Flows
for the period ended _________
Operating Activities
Indirect tax
Other taxes, fees and fines
Sales of goods
Rendering of services
Grant payments
Interest paid
Subsidies paid
Personal benefits
Net Cash from Operating Activities
Proceeds from sales of property, plant and equipment and intangibles
Proceeds from sales of equity instruments
Proceeds from sales of investments
Repayments of advances
Transfers from other entities
Purchase of property, plant and equipment and intangibles
Purchase of equity instruments
Advances and loans made
Transfers to Other Entities
Net Cash from Investing Activities
Administered Cash Flows continued 2006 2005
Proceeds from borrowing
Cash from Official Public Account
Net repayment of borrowings
Cash to Official Public Account
Net Cash from Financing Activities
Cash at beginning of reporting period
Cash from Official Public Account for:
Appropriations
Special Accounts
Transfer from other entities (Finance – Whole Of Government)
Cash to Official Public Account for:
Appropriations
Special Accounts
Transfers to Other Entities (Finance – Whole Of Government)
Effect of exchange rate movements on cash at beginning of reporting period
Cash at End of Reporting Period
Administered Commitments
as at _____________
Administered Contingencies
Administered Contingent Liabilities Guarantees Indemnities Uncalled shares or capital subscriptions Claims for damages or costs Warranties Letters of Comfort TOTAL
Administered Contingent Assets
Details of each class of contingent liabilities and contingent assets, including those not included above because they cannot be quantified, or are considered remote, are shown at Note (specify number)
Note: Where supplier’s expenses relate to the provision of employee benefits included in a remuneration package, they should be included in employee expenses.