Notes to and forming part of the Financial Statements - Notes 2-6

Page index

• Note 2: Events after the balance sheet date
• Note 3: Imcome
• Note 4: Expenses
• Note 5: Financial Assets
• Note 6: Non-financial Assets

Note 2: Events after the balance sheet date

There have been no events after the balance sheet date that impact on the ongoing structure or financial activities of the department.

Note 3: Imcome

	2008 $’000		2007 $’000
Revenue
NOTE 3A: REVENUE FROM GOVERNMENT
Appropriations:
Departmental outputs	149,118		136,081
Total revenue from Government	149,118		136,081
NOTE 3B: SALES OF GOODS AND RENDERING OF SERVICES
Sale of goods	349		109
Rendering of services - related entities	3,123		1,935
Rendering of services - external entities	5,546		879
Total sale of goods and rendering of services	9,018		2,923
NOTE 3C: COMMISSION
Campaign Advertising Special Account	2,960		2,893
Total commissions revenue	2,960		2,893
Gains
NOTE 3D: RESOURCES RECEIVED FREE OF CHARGE
Seconded staff	1,155		1,266
ANAO audit fee	200		164
Other resources received free of charge	341		3,968
Total other gains	1,696		5,398
NOTE 3E: REVERSAL OF PREVIOUS ASSEST WRITE DOWNS
Reversals of previous asset write downs	107		-
Total reversals of previous asset write-downs	107		-

Note 4: Expenses

	2008 $’000		2007 $’000
NOTE 4A: EMPLOYEE BENEFITS
Wages and salaries	44,461		47,814
Superannuation	7,433		7,885
Leave and other entitlements	6,352		6,706
Separations and redundancies			-
Other	258		605
Total employee benefits	58,504		63,010
NOTE 4B: SUPPLIERS
Provision of goods - related entities	2,980		3,869
Provision of goods - external entities	34,273		44,492
Rendering of services - related entities	2,567		2,088
Rendering of services - external entities	29,517		24,015
Operating lease rentals:
Minimum lease payments	8,972		8,528
Workers compensation premium	303		398
Total supplier expenses	78,612		83,390
NOTE 4C: GRANTS
Private Sector: Non-profit organisations	5,875		2,542
Total grants	5,875		2,542
NOTE 4D: DEPRECIATION AND AMORTISATION
Depreciation:
Infrastructure, plant and equipment	3,991		5,172
Total depreciation	3,991		5,172
Amortisation:
Computer software	392		609
Total amortisation	392		609
Total depreciation and amortisation	4,383		5,781
NOTE 4E: WRITE-DOWN AND IMPAIRMENT OF ASSETS
Asset write-downs from:
Impairment on financial instruments	-		96
Impairment on APEC infrastructure, plant and equipment	2,308		57
Impairment on other infrastructure, plant and equipment	1,231		200
Total write-down and impairment of assets	3,539		353
NOTE 4F: LOSSES FROM ASSET SALES
APEC infrastructure, plant and equipment	1,089		-
Other infrastructure, plant and equipment	18		-
Total losses from asset sales	1,107		-

Note 5: Financial Assets

	2008 $’000		2007 $’000
NOTE 5A: CASH AND CASH EQUIVALENTS
Cash on hand and at bank	1,429		774
Total cash and cash equivalents	1,429		774
NOTE 5B: RECEIVABLES
Goods and services	939		1,874
Appropriation receivable
for existing outputs	51,237		54,291
Commission - Campaign Advertising Special Account	-		284
GST receivable from the Australian Taxation Office	334		986
Total trade and other receivables (gross)	52,510		57,435
Less allowance for doubtful debts:
Goods and services	(2)		(107)
Other Trust Moneys Special Account	-		(9)
Total trade and other receivables (net)	52,508		57,319
Receivables are represented by:
Current	52,508		56,428
Non-current	-		891
Total trade and other receivables (net)	52,508		57,319
All trade and other receivables are current liabilities
Receivables are aged as follows:
Not overdue	52,096		55,277
Overdue by:
less than 30 days	203		1,151
30 to 60 days	120		579
61 to 90 days	1		298
more than 90 days	90		130
Total receivables (gross)	52,510		57,435
The allowance for doubtful debts is aged as follows:
Not overdue	-		-
Overdue by:
less than 30 days	-		-
30 to 60 days	-		-
61 to 90 days	-		-
more than 90 days	(2)		(116)
Total allowance for doubtful debts	(2)		(116)

Reconciliation of the allowance for doubtful debts

Movements in relation to 2008

	Goods and services 2008 $’000	Special account 2008 $’000	Total 2008 $’000
Opening balance	(107)	(9)	(116)
Amounts written off	-	-	-
Amounts recovered and reversed	105	-	105
Amounts transferred as part of administrative arrangements orders	-	9	9
Increase/decrease recognised in net surplus	-	-	-
Closing balance	(2)	-	(2)

Movements in relation to 2007

	Goods and services 2007 $’000	Special account 2007 $’000	Total 2007 $’000
Opening balance	(20)	-	(20)
Amounts written off	-	-	-
Amounts recovered and reversed	-	-	-
Increase/decrease recognised in net surplus	(87)	(9)	(96)
Closing balance	(107)	(9)	(116)

	2008 $’000		2007 $’000
NOTE 5C: ACCRUED REVENUE
Campaign Advertising Special Account	-		795
Departmental	620		170
Total accrued revenue	620		965

Not 6: Non-financial assets

	2008 $’000		2007 $’000
NOTE 6A: INFRASTRUCTURE, PLANT AND EQUIPMENT
Infrastructure, plant and equipment:
Gross carrying value (at fair value)	30,878		33,225
Accumulated depreciation	(1,390)		(702)
Work in progress	1,951		911
Total infrastructure, plant and equipment (non-current)	31,439		33,434

All revaluations of non-current assets are conducted in accordance with the revaluation policy stated at Note 1.  In 2007–08, the department engaged the services of two independent valuers. The Australian Valuation Office was engaged to value the department’s leasehold fitout at One National Circuit, Barton, Canberra. Preston Rowe Paterson (PRP) were separately engaged to perform a desktop valuation of all remaining assets.

The revaluation of the department’s leasehold fitout at One National Circuit resulted in a revaluation increment of $2,228,511 (2007: carried at cost).  PRP reviewed the carrying amounts of all other assets and concluded that carrying amounts are suitably representative of fair value.

TABLE A - Reconciliation of the opening and closing balances of infrastructure, plant and equipment (2007–08)	Total $’000
NOTE 6B: ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
As at 1 July 2007
Gross book value	33,225
Accumulated depreciation/amortisation	(702)
opening balance adjustment	(65)
Net book value 1 July 2007	32,458
Additions:
Purchases	2,821
Movements:
Gross revaluation increment/(decrement)	2
Revaluation - write back of accumulated depreciation	2,160
Movements in makegood	269
Depreciation/amortisation expense	(3,991)
Impairments recognised in the operating result	(127)
Assets moved to held for sale	(156)
Disposals:
From disposal of entities or operations (including restructuring)	(4,991)
Other disposals	-
Disposal depreciation	1,043
Net book value 30 June 2008	29,488
Net book value as of 30 June 2008 represented by:
Gross book value	30,878
Accumulated depreciation/amortisation and impairment	(1,390)
	29,488

TABLE A - Reconciliation of the opening and closing balances of infrastructure, plant and equipment (2006–07)	Total $’000
NOTE 6B: ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT
As at 1 July 2006
Gross book value	24,044
Accumulated depreciation/amortisation	(16,874)
Net book value 1 July 2006	7,170
Additions:
Purchases	28,784
Movements:
Gross revaluation increment/(decrement)	(10,246)
Revaluation - write back of accumulated depreciation	13,127
Reduction in make good	(18)
Depreciation/amortisation expense	(5,172)
Disposals:
Other disposals	(10,404)
Disposal depreciation	9,282
Net book value 30 June 2007	32,523
Net book value as of 30 June 2007 represented by:
Gross book value	33,225
Accumulated depreciation/amortisation and impairment	(702)
	32,523

 

	2008 $’000		2007 $’000
NOTE 6C: INTANGIBLES
Computer software at cost:
Internally developed - in use	1,762		1,792
Purchased	2,652		3,347
Total computer software	4,414		5,139
Accumulated amortisation	(3,923)		(4,127)
Total intangibles (non-current)	491		1,012
No indicators of impairment were found for intangible assets.

 

Table B: Reconciliation of the opening and closing balances of intangibles (2007–08)	Computer software internally developed $’000	Computer software purchased $’000	Total $’000
NOTE 6D: ANALYSIS OF INTANGIBLES
As at 1 July 2007
Gross book value	1,792	3,347	5,139
Accumulated amortisation	(1,231)	(2,896)	(4,127)
Opening balance correction	7	-	7
Net book value 1 July 2007	568	451	1,019
Additions:
Purchase/Internally developed	-	270	270
Movements:
Amortisation	(135)	(258)	(393)
Impairments recognised in the operating result	-	-	-
Disposals:
Gross value	(37)	(1,011)	(1,048)
Amortisation	16	627	643
Net book value 30 June 2008	412	79	491
Net book value as of 30 June 2008 represented by:
Gross book value	1,762	2,652	4,414
Accumulated amortisation	(1,350)	(2,573)	(3,923)
	412	79	491

Table B: Reconciliation of the opening and closing balances of intangibles (2006–07)	Computer software internally developed $’000	Computer software purchased $’000	Total $’000
NOTE 6D: ANALYSIS OF INTANGIBLES
As at 1 July 2006
Gross book value	1,733	3,093	4,826
Accumulated amortisation	(1,064)	(2,572)	(3,636)
Net book value 1 July 2006	669	521	1,190
Additions:
Purchase/Internally developed	59	368	427
Movements:
Amortisation	(167)	(442)	(609)
Impairments recognised in the operating result	-	-	-
Disposals:
Gross value	-	(114)	(114)
Depreciation	-	118	118
Net book value 30 June 2007	561	451	1,012
Net book value as of 30 June 2007 represented by:
Gross book value	1,792	3,347	5,139
Accumulated amortisation	(1,231)	(2,896)	(4,127)
	561	451	1,012

 

	2008 $’000		2007 $’000
NOTE 6E: PREPAYMENTS
Prepayments	978		678
Total other non-financial assets	978		678
No indicators of impairment were found for other non-financial assets.
NOTE 6F: ASSETS HELD FOR SALE
APEC assets	55		-
Desktop computers	101		-
Total assets held for sale	156		-

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