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

• Note 2: Events after the Balance Sheet Date
• Note 3: Income
• Note 4: Expenses
• Note 5: Financial Assets
• Note 6: Non-Financial Assets

Note 2: Events after the Balance Sheet Date

On 1 July 2009, policy responsibility and administration of the superannuation arrangements for former Governors- General transferred to the Department of Finance and Deregulation (Finance). Accordingly the special appropriation under the Governor-General Act 1974 and the administered provision for personal benefits were transferred to Finance on 1 July 2009.

In October 2009 COAG Reform Council will move from their current office to a new office location. The new lease will commence on 15 August 2009. On vacation of the current office, the fitout asset and the lease provision will be written off. These transactions have no impact on the 2008–09 financial results or financial position presented in these statements.

No matters or circumstances other than those outlined above have arisen since the end of the year that have significantly affected, or may significantly affect the results in subsequent accounting periods.

Note 3: Income

	2009 $’000		2008 $’000
Revenue
Note 3A: Revenue from Government
Appropriations:
Departmental outputs	102,602		149,118
Total revenue from Government	102,602		149,118
Note 3B: Sale of goods and rendering of services
Rendering of services - related entities	7,867		3,123
Rendering of services - external entities	5,573		5,546
Total sale of goods and rendering of services	13,440		8,669
Note 3C: Commission
Campaign Advertising Special Account	-		2,960
Total commissions revenue	-		2,960
Gains
Note 3D: Resources received free of charge
Seconded staff	1,755		1,155
ANAO audit fee	157		200
Other resources received free of charge	-		341
Total other gains	1,912		1,696
Note 3E: Reversals of previous asset write-downs and impairments
Reversals of previous asset write downs	277		107
Total reversals of previous asset write-downs	277		107

Note 4: Expenses

	2009 $’000		2008 $’000
Note 4A: Employee benefits
Wages and salaries	43,436		44,461
Superannuation
Defined benefit plan	6,563		5,942
Defined contribution plan	1,647		1,491
Leave and other entitlements	11,019		6,352
Separations and redundancies	284		-
Other	278		258
Total employee benefits	63,227		58,504
Note 4B: Suppliers
Provision of goods - related entities	374		2,980
Provision of goods - external parties	2,739		34,273
Rendering of services - related entities	3,542		2,567
Rendering of services - external parties	26,327		29,517
Operating lease rentals - external parties
Minimum lease payments	8,917		8,972
Workers compensation premium	613		303
Total supplier expenses	42,512		78,612
Note 4C: Grants
Private Sector:
Non-profit organisations	6,639		5,875
Total grants	6,639		5,875
Note 4D: Depreciation and amortisation
Depreciation:
Infrastructure, plant and equipment	4,164		3,991
Total depreciation	4,164		3,991
Amortisation:
Intangibles
Computer software	705		392
Total amortisation	705		392
Total depreciation and amortisation	4,869		4,383
Note 4E: Write-down and impairment of assets
Asset write-downs and impairments from:
Impairment on APEC infrastructure, plant and equipment	25		2,308
Impairment on other infrastructure, plant and equipment	160		1,231
Impairment on financial instruments	15		-
Total write-down and impairment of assets	200		3,539
Note 4F: Losses from assets sales
Carrying value of asset sold	146		1,107
Selling cost	41		-
Less: proceeds from sale	114		-
Total losses from asset sales	73		1,107
Note 4G: Finance costs
Unwinding of discount on makegood	16		-
Total finance costs	16		-

Note 5: Financial Assets

	2009 $’000		2008 $’000
Note 5A: Cash and cash equivalents
Cash on hand or on deposit	3,368		1,429
Total cash and cash equivalents	3,368		1,429
Note 5B: Trade and other receivables
Goods and services	4,205		939
Appropriations receivable
for existing outputs	28,508		51,237
GST receivable from the ATO	457		334
Total trade and other receivables (gross)	33,170		52,510
Less impairment allowance account:
Goods and services	(14)		(2)
Other	-		-
Total trade and other receivables (net)	33,156		52,508
Receivables are represented by:
Current	33,156		52,508
Non-current	-		-
Total trade and other receivables (net)	33,156		52,508
Receivables are aged as follows:
Not overdue	32,361		52,096
Overdue by:
less than 30 days	656		203
30 to 60 days	138		120
61 to 90 days	-		1
more than 90 days	15		90
Total receivables (gross)	33,170		52,510
The impairment allowance account is aged as follows:
Not overdue	-		-
Overdue by:
less than 30 days	-		-
30 to 60 days	-		-
61 to 90 days	-		-
more than 90 days	(14)		(2)
Total impairment allowance account	(14)		(2)

Note 5: Financial Assets (Continued)

Note 5B: Trade and other receivables (continued)

Reconciliation of the impairment allowance account:

Movements in relation to 2009

	Goods and services 2009 $’000	Other receivables 2009 $’000	Total 2009 $’000
Opening balance	(2)	-	(2)
Amounts written off	-	-	-
Amounts recovered and reversed	-	-	-
Increase/decrease recognised in net surplus	(12)	-	(12)
Closing balance	(14)	-	(14)

Movements in relation to 2008

	Goods and services 2008 $’000	Other receivables 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 arrangments orders	-	9	9
Increase/decrease recognised in net surplus	-	-	-
Closing balance	(2)	-	(2)

	2009 $’000		2008 $’000
Note 5C: Accrued revenue
Recovery of departmental costs	1,650		620
Total accrued revenue	1,650		620

Note 6: Non-Financial Assets

	2009 $’000		2008 $’000
Note 6A: Infrastructure, plant and equipment
Infrastructure, plant and equipment:
Gross carrying value (at fair value)	33,868		30,878
Accumulated depreciation	(5,030)		(1,390)
Work in progress	113		1,951
Total infrastructure, plant and equipment (non-current)	28,951		31,439

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. In 2008–09 all departmental assets were subject to an independent desktop review by Preston Rowe Paterson NSW Pty Ltd. The review concluded that the carrying amounts of all departmental assets are suitably representative of fair value.

No indicators of impairment were found for infrastructure, plant and equipment.

Note 6B: Analysis of infrastructure, plant and equipment
TABLE A – Reconciliation of the opening and closing balances of infrastructure, plant and equipment (2008–09)	Total $’000
As at 1 July 2008
Gross book value	30,878
Opening balance adjustment– gross book value	(332)
Accumulated depreciation	(1,390)
Opening balance adjustment– accumulated depreciation	332
Net book value 1 July 2008	29,488
Additions:
By purchase	3,654
Revaluations and impairments through equity	32
Revaluations and impairments recognised in the operating result	(2)
Reclassification	-
Revaluation– write back of accumulated depreciation	55
Movements in makegood	(67)
Depreciation expense	(4,164)
Assets moved (to)/from held for sale	9
Other movements	-
Disposals:
Other disposals	(266)
Disposal depreciation	99
Net book value 30 June 2009	28,838
Net book value as of 30 June 2009 represented by:
Gross book value	33,868
Accumulated depreciation	(5,030)
Total net book value	28,838
Work in progress	113
Total infrastructure, plant and equipment	28,951
As at 1 July 2007
Gross book value	33,225
Accumulated depreciation/amortisation and impairment	(702)
Opening balance adjustment	(65)
Net book value 1 July 2007	32,458
Additions:
By purchase	2,821
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)
Total net book value	29,488
Work in progress	1,951
Total infrastructure, plant and equipment	31,439

	2009 $’000		2008 $’000
Note 6C: Intangibles
Computer software at cost:
Internally developed– in progress	312		-
Internally developed - in use	4,421		1,762
Purchased	1,837		2,652
Total computer software	6,570		4,414
Accumulated amortisation	(3,955)		(3,923)
Total intangibles (non-current)	2,615		491
No indicators of impairment were found for intangible assets.

Note 6D: Analysis of intangibles
Table C: Reconciliation of the opening and closing balances of intangibles (2008–09)	Computer software internally developed $’000	Computer software purchased $’000	Total $’000
As at 1 July 2008
Gross book value	1,762	2,652	4,414
Opening balance adjustment– gross book value	1,079	(1,079)	-
Accumulated amortisation	(1,350)	(2,573)	(3,923)
Opening balance adjustment– accumulated depreciation	(1,266)	1,266	-
Net book value 1 July 2008	225	266	491
Additions:
By purchase or internally developed	2,152	369	2,521
Revaluations and impairments through equity	-	-	-
Revaluations and impairments recognised in the operating result	-	-	-
Reclassifications	-	-	-
Amortisation:	(600)	(105)	(705)
Disposals:
Gross value	(572)	(105)	(677)
Amortisation	572	101	673
Net book value 30 June 2009	1,777	526	2,303
Net book value as of 30 June 2009 represented by:
Gross book value	4,421	1,837	6,258
Accumulated amortisation and impairment	(2,644)	(1,311)	(3,955)
Total net book value	1,777	526	2,303
Work in progress	312	-	312
Total intangibles	2,089	526	2,615

Note 6D: Analysis of intangibles (continued)
Table C: Reconciliation of the opening and closing balances of intangibles (2007–08)	Computer software internally developed $’000	Computer software purchased $’000	Total $’000
As at 1 July 2007
Gross book value	1,792	3,347	5,139
Accumulated amortisation and impairment	(1,231)	(2,896)	(4,127)
Opening balance correction	7	-	7
Net book value 1 July 2007	568	451	1,019
Additions:
By purchase or internally developed	-	270	270
Amortisation	(135)	(258)	(393)
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)
Total net book value	412	79	491
Work in progress	-	-	-
Total intangibles	412	79	491

	2009 $’000		2008 $’000
Note 6E: Prepayments
Prepayments	1,007		978
Total prepayments	1,007		978
.
Note 6F: Assets held for sale
APEC assets	-		55
Desktop computers	9		101
Total assets held for sale	9		156

All other non-financial assets were current assets. No indicators of impairment were found for other non-financial assets.

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