Schedule Sch 1 - Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005) - Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only) | Zoe
Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005)
Sch 1Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only)
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Schedule 1: Requirements for the preparation of Financial Statements for reporting periods ending on or after 1 July 2005 (Black Letter Policy and Appendix A Only)
A market where all the following conditions exist:<br>(a) the items traded within the market are homogenous;<br>(b) willing buyers and sellers can normally be found at any time; and<br>(c) the prices are available to the public.<br> (AASB 138 para. 8)<br>
The functions and activities of the Government are administered in accordance with AAOs, issued from time to time by the Government and signed by the Governor-General. The AAOs establish the principal matters or government outcomes to be dealt with by each Department of State, and the Acts of Parliament to be administered by each portfolio Minister.<br>
AEIFRS
Australian Equivalents to International Financial Reporting Standards<br>
Agency
An Agency is as defined in section 5 of the Financial Management and Accountability Act 1997.<br>
Amortisation
The systematic allocation of the depreciable amount of an intangible asset over its useful life.<br>(AASB 138 para. 8)<br>
Resources Received Free of Charge
Includes any economic benefits which are received for no or nominal consideration.<br>
Australian Government
All bodies that comprise the public sector at the national level. This includes the Commonwealth, office holders, statutory corporations and their subsidiaries.<br>
Authority<br>
A Commonwealth authority as defined in section 7 of the Commonwealth Authorities and Companies Act 1997.<br>
Business Operations
Activity or activities within an Agency that have been determined to be a Business Operation pursuant to 6.2.1 of the Financial Management and Accountability Orders 2005. They generally produce goods and services to persons or other entities for market prices and are not ‘primarily’ funded by appropriations.<br>
Carrying Amount
The amount at which an asset or liability is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses.<br>(AASB 116 para. 6)<br>
Cash-Generating Unit
The smallest identifiable group of assets that generates cash inflows that is largely independent of the cash inflows from other assets or groups of assets.<br>(AASB 5 Appendix A)<br>
Charter of Budget Honesty
The Charter of Budget Honesty Act 1998 provides a legislative framework for the conduct and reporting of fiscal policy. Broadly the Charter (Schedule 1 of the Act) requires the Government’s fiscal strategy to be based on the principles of sound fiscal management. In addition, the Secretaries of the Department of Finance and Administration and the Department of the Treasury are to publicly release a pre-election fiscal and economic outlook report if a general election is called and cost any publicly announced polices submitted by the Government or Opposition if so requested.<br>
Commonwealth
The legal entity of the Commonwealth of Australia, created by the Australian Constitution.<br>
Consolidated Financial Statements (CFS)
The Australian Government’s Consolidated Financial Statements (CFS) is the annual, end-of-year financial report prepared under section 55 of the Financial Management and Accountability Act 1997, and in accordance with Australian Accounting Standards, including AAS31 Financial Reporting by Governments. The CFS shows the consolidated results for the Australian Government includes consolidated results for all controlled entities as well as disaggregated information on the various sectors of government (general government, public non-financial corporations and public financial corporations).<br>
Contingent Assets
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.<br>
Contingent Liability
(a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or<br>(b) a present obligation that arises from past events but is not recognised because:<br>(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or<br>(ii) the amount of the obligation cannot be measured with sufficient reliability.<br>(AASB 137 para. 10)<br>
Cost
As defined in AASB 116, Property, Plant and Equipment, and amounts deemed as cost as permitted by AASB 1, First-time Adoption of Australian Equivalents to International Financial Reporting Standards, and other relevant standards.<br>
Cost Recoveries
All costs recovered by the Australian Government for provision of goods and services to the private and non-government sectors.<br>Cost recoveries do not include: intra-government charging, government business enterprises, competitively neutral commercial arrangements, taxes, loans, asset sales or other property related incomes, fines and penalties, one-off specific policy measures, industry-government partnerships or statutory marketing levies, fees and charges by courts and tribunals.<br>
Costs to sell
The incremental costs directly attributable to the disposal of an asset (or disposal group) excluding finance costs and income tax expense.<br>(AASB 5 Appendix A)<br>
Depreciable Amount<br> <br>
The cost of an asset, or other amount substituted for cost, less its residual value<br>(AASB 116 para. 6)<br>
Depreciated Replacement Cost<br>
The current cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset.<br>(AASB 136 para. 6)<br>
Draw Down
An authorised transmission (draw down) of funds from the Official Public Account (OPA) to either the respective agency’s Official Administered Payments account or Official Departmental account.<br>
Entity
As described in Clause 1B.1 of this document.<br>
Entity Assets
In the Australian Government context, assets that are controlled by an entity, rather than merely administered on behalf of Government.<br>
Fair Value
The amount for which an asset could be exchanged between knowledgeable, willing parties in an arm’s length transaction.<br>(AASB 116 para. 6)<br>
FinanceBriefs
These provide clarification and guidance on the Government’s accounting and financial reporting policies as required throughout the year and are prepared by Finance.
Finance Lease
A lease that transfers substantially all the risks and rewards incidental to ownership of an asset. Title may or may not eventually be transferred.<br>(AASB 117 para. 4)<br>
Financial Instrument
Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.<br>(AASB 132 para. 11)<br> <br> <br>
Financial Statements
Include:<br>(a) the statements, schedules and notes required by these Orders; and<br>(b) any other certificates, reports and notes (other than the auditor’s report and annual report) attached to or intended to be read with the statements and notes required by (a);<br>prepared in relation to:<br>- the Agency or Authority; and<br>- where the Agency or Authority is a parent entity—the economic entity comprising the Agency or Authority and its subsidiaries.<br>
For-Profit Entities
Refer to Appendix A of this document. <br>
General Government Sector (GGS)<br>
The GGS is a Government Finance Statistics (GFS) concept for entities that fulfil the functions of government as their primary activity. The primary function of this sector is to provide public services, which are mainly non-market in nature, and for the collective consumption of the community, or involve the transfer or redistribution of income. These services are largely financed through taxes and other compulsory levies.<br>
Government Business Enterprises (GBE)
A Commonwealth authority or Commonwealth company that is prescribed as a GBE in regulations under the Commonwealth Authorities and Companies Act 1997.<br>
Grants<br>
Government grants are assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity. (AASB 120 para.3).<br>
Heritage Buildings
Heritage buildings are those buildings, monuments or structures that are (or are likely to become) symbolic of government, public activities, historical significance or cultural association (eg. Australian Government buildings listed on the National Trust.)<br>
Impairment Loss
The amount by which the carrying amount of an asset exceeds its recoverable amount.<br>(AASB 116 para. 6)<br>
Intangible Asset
An identifiable non-monetary asset without physical substance.<br>(AASB 138 para. 8)<br>
Market Buying Price<br>
The amount for which an asset with similar service potential could be bought by a knowledgeable, willing buyer from a knowledgeable, willing seller in an arms-length transaction at current prices plus the buyer’s transaction costs. This equates to current market value plus the buyer’s transaction costs.<br>
Market Selling Price
The price that a willing seller would accept from a knowledgeable, willing buyer for an asset in an arms-length transaction at current prices. This does not include transaction costs.<br>
Net Selling Price
Refer to Appendix B of this document.<br>
Not-For-Profit Entities
An entity whose principal objective is not the generation of profit. A not-for-profit entity can be a single entity or a group of entities comprising the parent and each of the entities that it controls.<br>(AASB 116 para. AUS 6.1)<br>
Operating Lease
A lease other than a finance lease.<br>(AASB 117 para. 4)<br>
Personal Benefit Payments
Current transfers for the benefit of individuals or households (for example, child care and family tax benefits) that do not require any economic benefit to flow back to government.<br>
Preservation
Work performed to maintain an item in its existing state.<br>
Progressive Revaluation
Revaluation of assets within a class, conducted in a systematic manner over a number of years.<br>
Recoverable Amount
Means the higher of an asset’s fair value less costs to sell and its value in use.<br>(AASB 5 Appendix A)<br>
Reproduction Cost
The cost of replicating an existing asset.<br>
Reserves<br>
Include:<br>a) amounts set aside out of profits; or<br>b) other gains or increments not reflected in the profit or loss (or surplus or deficit) (such as gains on revaluation of assets).<br>
Revaluation
The act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses.<br>
Surplus assets
Assets that are held for disposal, being those assets for which:<br>a) an entity has entered into a binding sale agreement; or<br>b) an entity’s management or governing body has approved a formal plan to dispose of the assets.<br>(AASB 116 para. 6)<br>
Useful Life
a) the period over which an asset is expected to be available for use by the entity; or<br>b) the number of production or similar units that is expected to be obtained from the asset by the entity.<br>(AASB 116 para. 6)<br>
Value in Use
The present value of the future cash flows expected to be derived from an asset or cash-generating unit.<br>In respect of not-for-profit entities, value in use is depreciated replacement cost of an asset when the future economic benefits of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits.<br>(AASB 136 para. 16)<br>
CHAPTER 1 APPLICATION AND PRESENTATION
1A Commencement
Policy
1A.1 Subject to Clause 1A.2 of this Policy, the requirements of this Schedule apply to financial statements prepared for reporting periods ending on or after 1 July 2005.
1A.2 For entities that cease to exist on or after 1 July 2005, the financial reporting requirements set out in this Schedule shall apply.
1B Application
Policy
1B.1 Financial statements must be prepared for the following entities:
(a) each Agency and Authority;
(b) the economic entity, comprising the Agency or Authority and its subsidiaries; and
(c) each activity or activities of an Agency which is/are determined to be a Business Operation.
1B.2 The financial statements of each entity must be presented in the following order:
(a) statement required by Clause 1C.2 or 1C.3 of this Schedule;
(b) primary statements (Income Statement, Balance Sheet, Cash Flow Statement and Statement of Changes in Equity or Statement of Recognised Income and Expenditure); and
(c) Schedules and Notes to the Financial Statements.
1B.3 The financial statements of each entity must:
(a) include
(i) the primary statements, schedules and notes in the form prescribed in Appendix A of this Schedule; and
(ii) all note disclosures specified by Policies in this Schedule; and
(b) comply with:
(i) all applicable requirements of this Schedule;
(ii) applicable accounting standards and accounting interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and
(iii) interpretations issued by the Urgent Issues Group (UIG) that apply for the reporting period; and
(c) have regard to:
(i) the Explanatory Notes to this Schedule;
(ii) the Statements of Accounting Concepts (SACs);
(iii) the AASB Framework for the Preparation and Presentation of Financial Statements; and
(iv) Estimates Memorandums, FinanceBriefs, Finance Circulars, Financial Management Guidances and other guidance/policies issued by the Department of Finance and Administration; and
(d) be presented in the English language and Australian dollars.
1B.4 Where competitive neutrality (CN) payments are required under the Commonwealth Competitive Neutrality Policy Statement - June 1996, entities must explain and disclose the amount of each of the following:
CN - Regulatory Neutrality Expense
CN - Debt Neutrality Expense
CN - State Tax Equivalent Expense
CN - Commonwealth Tax Equivalent Expense
CN - Other Expense
1B.5 Unless specifically otherwise stated in this Schedule or an accounting standard, comparatives must be disclosed in the financial statements and notes.
1B.6 If an entity wishes to early adopt a new accounting standard other than permitted or required by this schedule, it must seek approval from the Chief Executive of the Department of Finance and Administration due to the potential effect on the preparation of the Consolidated Financial Statements.
1B.7 The requirements of this Schedule apply where information resulting from their application is material. Information is material if its omission, misstatement or non-disclosure has the potential, individually or collectively, to:
(a) influence the economic decisions of users taken on the basis of the financial report; or
(b) affect the discharge of accountability by management or governing body of the entity.
1C Certification
Policy
1C.1 The signed auditor’s report on the financial statements must be attached to the financial statements.
1C.2 Each economic entity, comprising an Authority’s and its subsidiaries’ financial statements, must present a statement signed by the Chair of the Board (or equivalent) and Chief Executive Officer stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) for entities other than financial institutions which apply AASB 130 Disclosures in the Financial Statements of Banks and Similar Financial Institutions whether, in their opinion, there are, when the statement is made, reasonable grounds to believe that the entity will be able to pay its debts as and when they fall due;
(d) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements.
(e) that the statement has been made in accordance with a resolution of the Directors; and
(f) the date on which the statement is made.
1C.3 Each other entity required to prepare financial statements, must include a statement signed by the Chief Executive stating:
(a) whether the financial statements, in their opinion, give a true and fair view of the matters required by this Schedule;
(b) whether the financial statements, in their opinion, have been prepared based on properly maintained financial records;
(c) when additional information is included in the notes to give a true and fair view, then the reasons for forming this view and the location of the additional notes in the financial statements; and
(d) the date on which the statement is made.
1D Exemptions
Policy
1D.1 The Finance Minister may grant a written exemption to the Chief Executive of an Agency or Directors of an Authority, as the case may be, from any specified requirements of this Schedule.
1D.2 An exemption granted under Clause 1D.1 of this Policy may be granted subject to conditions, including a requirement for alternative forms of disclosure.
1D.3 The Chief Executive or Directors must disclose the particulars of any exemption granted under this Policy in the notes to the financial statements.
1E Rounding Off
Policy
1E.1 Unless otherwise provided in this schedule, amounts in the financial statements may be rounded off as follows:
(a) where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $10 million — it may round an amount to the nearest $1,000, unless that amount is $500 or less, in which case the amount should be rounded to zero; and
(b) where a reporting entity has assets, liabilities, expenses, income, commitments or contingencies in excess of $1 billion — it may round an amount to the nearest $1 million, unless that amount is $500,000 or less, in which case the amount should be rounded to zero.
1E.2 Rounding off must be applied consistently throughout the financial statements.
1E.3 This Policy applies to both entity and administered items.
1F Simplified Reporting
Policy
1F.1 Entities may adopt the simplified reporting provisions set out in this Policy.
Presentation of primary financial statements
1F.2 Where an entity’s net surplus/deficit is solely attributable to the Australian Government in both the current and immediately preceding reporting periods, the Income Statement line items ‘Net Surplus or Deficit attributable to the Australian Government’ or ‘Net Surplus or Deficit attributable to minority interest’ may be omitted.
1F.3 Where an amount is disclosed on the face of a primary statement, it is not necessary to repeat this information in the notes to the financial statements, unless this is required in conjunction with the presentation of other information.
Schedules
1F.4 Where there are no commitments or contingencies in either the current or the immediately preceding reporting periods, it is not necessary to include a Schedule for such items. Instead, the fact that there are no such items should be disclosed in the notes to the financial statements.
Notes to the financial statements
1F.5 Where the fair value of each class of an entity’s financial assets and financial liabilities equals its carrying amount in both the current and immediately preceding reporting periods entities may state this fact, instead of disclosing these amounts in accordance with paragraph 86 of AASB 132 Financial Instruments: Presentation and Disclosure.
1F.6 In relation to Policy 7A of this Schedule, an entity that has no transactions in either the current reporting or any comparative period, should disclose by way of note that there were no such transactions or balances.
1F.7 This Policy applies to both entity and administered items.
CHAPTER 2 APPROPRIATIONS AND OUTCOMES REPORTING
2A Recognition of Appropriations
Policy
Appropriations
2A.1 The earliest point of recognition and/or disclosure for appropriations is as follows:
(a) for Appropriation Acts (No. 1) and (No. 2) and Appropriation (Parliamentary Departments) Act (No. 1) — the commencement of the financial period (e.g. 1 July);
(b) for departmental special appropriations — when the obligation for which the special appropriation exists is incurred;
(c) for administered special appropriations – when appropriation funds are transferred into an agency’s administered bank account.
(d) for all other Appropriation Acts (except loan appropriations)— the date of royal assent;
(e) for the increased appropriation provided by amounts received that are eligible section 31 receipts — as the revenue is earned; and
(f) for other amounts determined by the Finance Minister (or delegate) or an Agency Minister or Presiding Officer under Part 3 Additions to basic appropriations of Appropriation Acts — the date of the determination or the date applicable as stated in the determination.
2A.2 For Authorities, all moneys received from the Commonwealth, excluding grants and non-operating annual appropriations are to be recognised as revenue. Additional disclosure in accordance with this Policy and Policy 2C of this Schedule is required as if they drew the funds from the Consolidated Revenue Fund.
Departmental annual appropriations
Departmental outputs
2A.3 For departmental output appropriations, recognise the full amount appropriated for departmental outputs as revenue of the year of appropriation, adjusted by all applicable current year formal additions and reductions listed at Clause 2A.13 of this Policy.
Non-operating appropriations
2A.4 Subject to Clause 2A.8, departmental non-operating appropriations must be recognised and disclosed at the amounts in the Appropriation Acts, adjusted, where applicable, in accordance with Clause 2A.13 of this Policy.
Equity injections and returns
2A.5 Departmental equity injection appropriations must be recognised as a contribution by owners, increasing ‘Contributed Equity’ from the commencement of the period to which the appropriation applies, irrespective of when drawn down. Equity injections for appropriations in Acts passed after the commencement of the period for which the appropriation applies will be recognised from the date of royal assent.
2A.6 Departmental equity returns must be recognised as a return of capital in accordance with Clause 5B.5 of this Schedule, and not as a reduction in, or refund of, revenue. This will directly reduce ‘contributed equity’ from the time the return of capital is paid.
2A.7 Departmental equity injections or returns can include restructuring agreements resulting from a transfer of function (refer to Clause 5A.2 of this Schedule) and determinations of reductions in accordance with the Appropriations Acts (refer to Clause 5B.6 of this Schedule).
Loan appropriations
2A.8 Departmental loan appropriations must be recognised as increases in borrowings, when the appropriation is drawn down. They are not revenue.
2A.9 Where an entity has undrawn appropriation which is required to be returned to Government under a purchasing, workload or other agreement, the entity must recognise the undrawn amount as a liability and not as a reduction in appropriation revenue.
-Previous years’ outputs
2A.10 Where additional work is requested by government with funding to follow in the subsequent period, as ‘previous years outputs’, the agency may book a revenue and an appropriation receivable so long as the transaction is appropriately evidenced. Evidence will include at a minimum, written ministerial agreement. The subsequent appropriation for prior years’ outputs will reduce the appropriation receivable.
Appropriations – adjustments to current year appropriation
2A.11 Formal additions or reductions to recognition of departmental appropriations occur when an entity has gained or lost the capacity to control the appropriation. Formal additions or reductions necessitate adjustments to recognition and/or disclosure of appropriations to the extent they have not already resulted in adjustments in previous years.
2A.12 To be a formal addition or reduction, the gain or loss of control must be evidenced in writing from the appropriate authority as outlined in Clause 2A.13 of this Policy.
2A.13 Departmental appropriations may only be adjusted, by formal additions or reductions, in the current year, for the current year, which are as follows:
(a) appropriations under section 31 of the FMA Act;
(b) transfers of appropriation under section 32 of the FMA Act;
(c) other amounts (excluding section 31) determined by the Finance Minister (or delegate) or an Agency Minister or Presiding Officer under Part 3 Additions to basic appropriations of Appropriation Acts;
(d) determination of reductions in accordance with the Appropriation Acts;
(e) adjustments as stipulated by any agreement that provides for additional revenue for over delivery, such as purchasing, workload or other agreements;
(f) adjustments made as a result of a decision by the Government, for an entity to provide additional outputs during the current financial period that will be provided for in the subsequent financial period; and/or
(g) all other reductions (including savings approved during the year), made as a consequence of a policy of the Government, evidenced by a decision of the Cabinet or the Prime Minister.
2A.14 The agreements referred to in Sub-clause 2A.13(e) of this Policy must:
(a) set out one or more quantifiable deliverable(s) and/or a specific amount of appropriation relating to each; and
(b) be approved by, or arise from, Ministerial or cabinet decisions prior to the funding being given.
Administered Annual Appropriations
2A.15 Administered appropriations must be disclosed when drawn down in the ‘Administered Reconciliation Table’ (in accordance with Clause 6A.3 of this Schedule), and not as revenue.
-State Payment Items
2A.16 The funding for State payment items (Specific Purpose Payments to the States and Territories) shall be reported as administered appropriations.
Special Appropriations – limited and unlimited
2A.17 Agencies must report the amounts appropriated in the current year, under limited and unlimited special appropriations for which they are responsible as follows:
(a) for departmental special appropriations, recognise and disclose the amount appropriated as revenue when the obligation for which the special appropriation exists is incurred; and
(b) for administered special appropriations, disclose in the ‘Administered Reconciliation Table’ the amount appropriated when it is transferred into an agency’s administered bank account.
2A.18 Where an Agency has paid money out of the CRF from a special appropriation that is not the ‘responsible entity’:
(a) the ‘responsible entity’ must disclose the name of the entity to which it has given authority to act as its agent and apply the reporting requirements outlined at Clause 2A.19 of this Policy; and
(b) the entity that has paid money out of the CRF against a special appropriation must disclose the name of the ‘responsible entity’ and apply the reporting requirements outlined at Clause 2A.20 of this Policy.
2A.19 The ‘responsible entity’ is to include the relevant details of its special appropriations in the following elements of its financial statements:
(a) For administered special appropriations:
(i) administered expenses as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;
(ii) administered assets and liabilities as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;
(iii) administered cash flows as part of the Schedule of Administered Items in accordance with Appendix A of this Schedule;
(iv) administered reconciliation table in accordance with Clause 6A.3 of this Schedule;
(v) appropriation Tables C, D, E and F of Policy 2C of this Schedule (as appropriate); and
(vi) where applicable, full disclosure of the relationship between the ‘responsible entity’ and the entity paying moneys from the CRF.
(b) For departmental special appropriations:
(i) departmental revenues and expenses as part of the Income Statement in accordance with Appendix A of this Schedule;
(ii) departmental assets and liabilities as part of the Balance Sheet in accordance with Appendix A of this Schedule;
(iii) departmental cash flows as part of the Cash Flow Statement in accordance with Appendix A of this Schedule;
(iv) appropriation Tables C, D, E and F of Policy 2C of this Schedule (as appropriate); and
(v) where applicable, full disclosure of the relationship between the ‘responsible entity’ and the entity paying moneys from the CRF.
2A.20 An Agency paying moneys out of the CRF on behalf of a ‘responsible entity’ against a special appropriation must include relevant details of the special appropriation as a separate note in its financial statements as follows:
(a) full disclosure of the relationship between the entity paying from the CRF and each ‘responsible entity’; and
(b) for each special appropriation, the amount of receipts, subsequent payments from the CRF and the resulting balance of any moneys held using Table G of Policy 2C of this Schedule.
2A.21 Where an agent pays money out of the CRF on behalf of the ‘responsible agency’, the ‘responsible agency’ must ensure that systems and processes are in place to enable appropriate reporting of the special appropriation.
2B Departmental and Administered Items
Policy
2B.1 This Policy applies when determining the classification of an item as ‘departmental’ or ‘administered’ for the purpose of preparing accrual-based financial statements (i.e. for all reporting other than in the appropriation and Special Account disclosures notes required by Policies 2C and 2E of this Schedule).
2B.2 Subject to a reclassification by the Finance Minister of an item under Clause 2B.6 of this Policy, an amount explicitly described in an Act (including an annual Appropriation Act) as being ‘departmental’ or ‘administered’, is classified, for the purposes of accrual reporting in the financial statements as described in the Act.
2B.3 All amounts appropriated as State payment items (Specific Payments to the States and Territories) in the annual Appropriation Acts are to be classified as administered items for accrual reporting purposes in the financial statements.
2B.4 Other than as provided in Clauses 2B.2 and 2B.3 of this Policy, all other assets, liabilities, income, expenses, cash flows, contingencies and commitments will be classified as ‘departmental’ or ‘administered’ according to the following rules:
(a) ‘Departmental items’ are those which the entity controls that are applied to the production of the entity’s own outputs; [1] and
(b) ‘Administered items’ are those that the entity does not control and which are subject to highly prescriptive rules or conditions established by legislation, or Australian Government Policy, in order to achieve Australian Government outcomes.
2B.5 Specific reporting requirements apply in relation to trust moneys (refer to Policy 3C of this Schedule).
2B.6 Approval for classifications of new items and reclassifications of existing items is to be obtained from the Finance Minister or a person authorised by the Finance Minister.
2C Disclosures of Appropriations
Policy
2C.1 Entities must make the disclosures in tabular form in the notes to the financial statements required by this Policy for all appropriations.
Table A: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations1, 14
Particulars Administered Expenses Departmental Outputs Total
Outcome 1 Outcome …'n'
2006 2005 2006 2005 2006 2005 2006 2005
$ $ $ $ $ $ $ $
Balance carried from previous period
Reductions of appropriations (prior years) 2
Adjusted balance carried from previous period [A]
Appropriation Act (No.1) 3
Appropriation Act (No.3) 4
Departmental adjustments by the Finance Minister (Appropriation Acts) 5
Comcover receipts (Appropriation Act s13)
Advance to the Finance Minister 6
Adjustment of appropriations on change of entity function (FMA s 32)
Refunds credited (FMA s 30)
Appropriation reduced by section 9 determinations (current year) 7
Sub-total Annual Appropriation [B]
Appropriations to take account of recoverable GST (FMA s 30A) 8 [C]
Annotations to ‘net appropriations’ (FMA s 31) [D]
Total appropriation available for payments [A+B+C+D]
Cash payments made during the year (GST inclusive) [E]
Appropriations credited to Special Accounts (excluding GST) [F]
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations13 [A+B+C+D+E+F]
Represented by:
Cash at bank and on hand
Departmental appropriations receivable*1, 9
GST receivable from the ATO*1
Departmental appropriations receivable – drawing rights withheld by the Finance Minister (FMA s27(4))*1, 9
Formal reductions of appropriation*1, 10
Departmental appropriation receivable (appropriation for additional outputs)*1, 11
Undrawn, unlapsed administered appropriations
Total
1 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.
2 Entities must distinguish between “reductions for prior years” through section 8 and 9 determinations relating to previous years, and “appropriation that was reduced by a section 9 determination for the current year”, and disclose the former here. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (e.g. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).
3 As per Appropriation Act (No.1) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.
4 This item must be as per Appropriation Act (No.3) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.2) 2005-2006.
5 Section 11 Appropriation Acts (No.1) and (No.3) 2005-2006 or section 13 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
6 Section 12 Appropriation Acts (No.1) and (No.3) 2005-2006 or section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
7 This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 3 determinations by the Finance Minister before 30 June.
8 The amount recorded will be the amounts of GST appropriated during the reporting period (i.e. cash paid basis), but will need to exclude GST appropriated for payments to 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.
9 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.
10 Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.15 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.
11 This item must equal the amount of appropriation promised to an entity to provide additional outputs in the current year with appropriation to be provided in the following year.
12 If an entity prefers, the comparative year information may be shown to the right of the current year columns. If this approach is taken, the more extensive current year disclosure requirements must be used for both years.
13 This table refers to the long title of Appropriation Acts 1 and 3, which is “An Act to appropriate money out of the Consolidated Revenue Fund for the ordinary annual services of the Government, and for related purposes”. This table includes Appropriation (Parliamentary Departments) (No. 1) Act.
14 The “Represented by” lines in Table A and related footnotes 9-11 are intended to report a reconciliation between the balance of each appropriation legally available as at 30 June each year and the balances of cash and appropriations receivables for departmental items and the balance of cash in an agency’s administered bank accounts for administered items. Entities should report any other reconciling items if applicable.
Table B: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations1, 15
Adjustment of appropriations on change of entity function (FMA s32)
Refunds credited (FMA s30)
Appropriation reduced by a section 11 determination (current year) 11
Sub-total Annual Appropriation [B]
Appropriations to take account of recoverable GST (FMA s30A) 9[C]
Total appropriations available for payments[A+B+C]
Cash payments made during the year (GST inclusive) [D]
Appropriations credited to Special Accounts (GST exclusive) [E]
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Other Than Ordinary Annual Services Appropriations15 [A+B+C+D+E]
Represented by:
Cash at bank and on hand
Appropriation receivable*1, 11
GST receivable from the ATO*1
Departmental appropriation receivable – Drawing rights withheld by the Finance Minister (FMA s27(4)) *1, 11
Formal reductions of appropriation revenue*12
Departmental appropriation receivable (appropriation for additional outputs)* 13
Undrawn, unlapsed administered appropriations
Total
1 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.
2 State payment items (Specific Payments to the States and Territories) (refer Budget Papers).
3 New Administered Expenses.
4 For this item, entities must distinguish between “reductions for prior years” through section 7, 8 and 11 determinations made during the current year that relate to previous years, and “appropriation that was reduced by a section 11 determination for the current year”, and disclose the former. In determining the amount to be disclosed for section 8 determinations, entities must disclose the amount the appropriation was reduced by (i.e. annual appropriation, less all adjustments such as section 32, less section 8 determination amount equals the amount of appropriation reduced by the section 8 determination).
5 As per Appropriation Act (No.2) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) 2005-2006.
6 This item must be as per Appropriation Act (No.4) 2005-2006, and where appropriate, Appropriation (Parliamentary Departments) Act (No.1) and (No. 2) 2005-2006.
7 Section 12 Appropriation Act (No.2) and (No.4) 2005-2006 and section 13 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
8 Section 13 Appropriation Act (No.2) and (No.4) 2005-2006 and section 14 of Appropriation (Parliamentary Departments) Acts (No.1) and (No.2) 2005-2006.
9 The amount recorded 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.
10 This amount will be the current year amount of appropriation for departmental and/or administered items that was reduced by a section 9 for Act 1 and equivalent for Act 4 determinations by the Finance Minister before 30 June.
11 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.
12 Where an adjustment meets the recognition criteria of a formal reduction to an appropriation, in accordance with Clause 2A.13 of this Schedule, but at law the appropriation has not been reduced, the entity must disclose those amounts as an aggregate.
13 This item must equal the amount of appropriation promised to an entity to provide additional outputs in the current year with appropriation to be provided in the following year.
14 If an entity prefers, the comparative year information may be shown to the right of the current year columns. If this approach is taken, the more extensive current year disclosure requirements must be used for both years.
15 To distinguish between appropriations in Table A, for Appropriation Act 1, 3 and Parliamentary Departments 1, this Table B refers to “Other than Ordinary Annual Services Appropriations”. (Refer to note 13, Table A of this Policy.)
Table C: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount) 1, 2, 3
Particulars of legislation providing appropriation (including purpose)
2006
2005
Cash payments made during the year4
Appropriations credited to Special Accounts
Refunds credited (net) (FMA s 30)
Total charged to appropriation
Estimated actual5
1 Prepare a separate table for each Act, current as at reporting date. In the heading to the table:
(a) identify whether the special appropriation is administered or departmental; and
(b) disclose the outcome it is associated with.
2 Entities must disclose all unlimited special appropriations in this format, excluding those unlimited special appropriations required to be disclosed under Tables D and E of this Policy.
3 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).”
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.