Notes to and forming part of the Financial Statements - Notes 7 to 13

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Note 7: Liabilities

Payables 2009
$’000		   2008
$’000
Note 7A: Suppliers
Trade creditors 3,673   3,522
Total supplier payables 3,673   3,522
Supplier payables represented by:      
Current 3,673   3,522
Non-current -   -
Total supplier payables 3,673   3,522
Settlement is usually made net 30 days.      
       
Note 7B: Grants payable
Grants payable 380   1,381
Total grants payable 380   1,381
Grants payables represented by:      
  Current 380   1,381
  Non-current      
Total grants payable 380   1,381
       
Note 7C: Other payables
Unearned revenue 861   241
Salaries and wages 2,043   1,836
Superannuation 139   76
Other payables 32   32
Total other payables 3,075   2,185
All other payables are current liabilities      
       
Provisions 2009
$’000		   2008
$’000
Note 7D: Employee provisions
Annual leave 7,449   6,119
Long service leave 9,694   8,344
Total employee provisions 17,143   14,463
Employee provisions are represented by:      
  Current 15,000   12,827
  Non-current 2,143   1,636
Total employee provisions 17,143   14,463

Amounts reported against ‘salaries and wages’ and ‘superannuation’ in 2007–08 have been reclassified from employee provisions to other payables consistent with the requirements of the Finance Minister’s Orders 2008–09.

The classification of current employee provisions includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification does not represent the amount expected to be settled within one year of reporting date. Employee provisions expected to be settled in twelve months from the reporting date were $7,801,404 (2008: $6,537,979), and in excess of one year $9,341,828 (2008: $7,925,013).

  2009
$’000		   2008
$’000
 Note 7E: Other provisions      
Provision for return of APEC funding 1,593   24,704
Provision for return of Australia 2020 Summit funding -   214
Provision for return of Community Cabinet funding 814   -
Provision for lease incentive 61   -
Make good provision 285   281
Lease provision 2,715   1,672
Total other provisions 5,468   26,871
       
Other provisions are represented by:      
  Current 2,473   24,918
  Non-current 2,995   1,953
Total other provisions 5,468   26,871
The provision for the return of APEC funding and Community Cabinet funding and the provision for lease incentive are current liabilities. All other provisions are non-current liabilities.

  Make good
provision
$’000		 Lease
liability		 Total
Carrying amount 1 July 2008 281 1,672 1,953
Additional provisions made - 1,043 1,043
Amounts used - - -
Amounts reversed - - -
Unwinding of discount or change in discount rate 4 - -
Closing balance 2009 285 2,715 3,000

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Note 8: Restructuring

Note 8A: Departmental restructuring

2008–09
The Department did not assume or relinquish any departmental functions as a result of restructuring during 2008–09.

2007–08
As a result of a restructuring of administrative arrangements, the department assumed responsibility for the Privacy and Freedom of Information Policy Branch (received from Attorney General’s Department) and the Office of Work and Family (received from the Department of Families, Housing, Community Services and Indigenous Affairs). The Department relinquished responsibility for the Campaign Advertising Special Account and AUSPIC to the Department of Finance and Deregulation, and the Office of Climate Change to the newly formed Department of Climate Change.

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

  2008
$’000
Total assets recognised 515
Total liabilities recognised (556)
Net assets assumed (41)
   
Total asset relinquished 8,580
Total liabilities relinquished (298)
Net assets relinquished 8,282
   
Net increase (decrease) in net assets (8,232)
   
Privacy and Freedom of Information Policy Branch
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 623
Recognised by the Attorney General’s Department 746
Total revenue 1,369
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 635
Recognised by the Attorney General’s Department 746
Total expense 1,381
   
Office of Work and Family
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 1,603
Recognised by the Dept of Families, Housing, Community Services & Indigenous Affairs 257
Total revenue 1,860
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 547
Recognised by the Dept of Families, Housing, Community Services & Indigenous Affairs 257
Total expense 804
   
Campaign Advertising Special Account
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 2,960
Recognised by the Dept of Finance & Deregulation 512
Total revenue 3,472
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 402
Recognised by the Dept of Finance & Deregulation 276
Total expense 678
   
Office of Climate Change
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 1,023
Recognised by the Dept of Climate Change 6,273
Total revenue 7,296
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 1,175
Recognised by the Dept of Climate Change 6,273
Total expense 7,448
   
AUSPIC
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 175
Recognised by the Department of Finance & Deregulation 260
Total revenue 435
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 290
Recognised by the Department of Finance & Deregulation 239
Total expense 529

Note 8B: Administered restructuring

2008–09
The Department did not assume or relinquish any administered functions as a result of restructuring during 2008–09.

2007–08
As a result of a restructuring of administrative arrangements, the Department relinquished responsibility for the Media Commissions Special Account to the Department of Finance and Deregulation.

In respect of functions relinquished, the net book values of assets and liabilities transferred by the Department for no consideration and recognised as at the date of transfer were:

  2008
$’000
Total assets assumed -
Total liabilities assumed -
Net assets assumed -
   
Total asset relinquished 23,383
Total liabilities relinquished -
Net assets relinquished 23,383
   
Net increase (decrease) in net assets (23,383)

Departmental revenue and expense for the full year for the functions relinquished are as follows:

Media Commissions Special Account 2008
$’000
Revenue  
Recognised by the Department of the Prime Minister & Cabinet 8,481
Recognised by the Department of Finance & Deregulation 2,175
Total revenue 10,656
   
Expense  
Recognised by the Department of the Prime Minister & Cabinet 1,371
Recognised by the Department of Finance & Deregulation 6,775
Total expense 8,146

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Note 9: Cash flow reconciliation

  2009
$’000		   2008
$’000
Reconciliation of cash and cash equivalents as per balance sheet to cash flow statement
       
Report cash and cash equivalents as per:      
Cash flow statement 3,368   1,429
Balance sheet 3,368   1,429
Difference -   -
       
Reconciliation of operating result to net cash from operating activities
Operating result 695   10,879
Depreciation/amortisation 4,869   4,383
Net write down of non-financial assets 200   3,539
Net loss (gain) on disposal of assets 73   1,107
Proceeds from sales of infrastructure, plant and equipment -   (349)
Gain from reversal of asset write down (277)   (107)
Net GST received 155   (1,938)
Cash drawn from special accounts -   1,058
(Increase)/decrease in net receivables and accrued revenue (5,269)   (4,913)
(Increase)/decrease in prepayments (29)   (300)
Increase/(decrease) in suppliers payable 111   (10,758)
Increase/(decrease) in grants payable (1,001)   1,381
Increase/(decrease) in other payables 270   (89)
Increase/(decrease) in employee provisions 2,680   (576)
Increase/(decrease) in makegood provisions 4   197
Increase/(decrease) in lease liabilibites provision 1,043   950
Increase/(decrease) in other provisions -   -
Increase/(decrease) in unearned revenue 621   (992)
       
Net cash from/(used by) operating activities 4,144   3,474

Note 10: Contingent liabilities and assets

Departmental contingent liabilities and assets

Quantifiable contingencies

The Department is not aware of any quantifiable contingent liabilities or assets as at signing date that would require disclosure in the financial statements.

Unquantifiable contingencies

The Department is not aware of any unquantifiable contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.

Remote contingencies

The Department is not aware of any remote contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.

There were no departmental contingent liabilities or assets reported in 2007–08.

Administered contingent liabilities and assets

Quantifiable contingencies

The Department is not aware of any quantifiable contingent liabilities or assets as at signing date that would require disclosure in the financial statements.

Unquantifiable contingencies

The Department is not aware of any unquantifiable contingent liabilities and assets as at the signing date that would require disclosure in the financial statments.

Remote contingencies

The Department is not aware of any remote contingent liabilities and assets as at the signing date that would require disclosure in the financial statements.

There were no administered contingent liabilities or assets reported in 2007–08.

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Note 11: Impact of the APEC Taskforce on the income statement

The APEC Taskforce was funded from 2005–06 to 2007–08 on a no-win / no-loss basis. A return of equity of $24,704,025 was provided for in 2007–08 including $21,294,794 of operating funding and $3,409,231 of capital funding. An interim return of $23,276,345 was made in 2008–09 with $1,602,030 of operating funding being retained for residual expenses. Expenses of $9,633 were incurred in 2008–09 and a provision has been recognised for the return of the remaining $1,592,397 to the Budget in 2009–10.

Note 12: Senior Executive remuneration

  2009   2008
The number of senior executives who received or were due to receive total remuneration of $130,000 or more:
       
$130,000 to $144,999 3   4
$145,000 to $159,999 3   4
$160,000 to $174,999 2   2
$175,000 to $189,999 8   2
$190,000 to $204,999 5   6
$205,000 to $219,999 3   9
$220,000 to $234,999 7   1
$235,000 to $249,999 8   1
$250,000 to $264,999 3   4
$265,000 to $279,999 1   2
$280,000 to $294,999 2   2
$295,000 to $309,999 3   -
$310,000 to $324,999 2   2
$325,000 to $339,999 -   1
$340,000 to $354,999 -   1
$400,000 to $414,999 1   -
$520,000 to $534,999 1   -
$565,000 to $579,999 1   -
Total 53   41
       
The aggregate amount of total remuneration of senior executives shown above. $12,464,625   $8,901,671
       
The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above. $193,035   -

Under the Finance Minister’s Orders remuneration includes wages and salaries; allowances; accrued leave; performance pay; superannuation; cost of motor vehicles; housing; other allowances and FBT included in remuneration agreements. Reimbursements of out-of-pocket expenses and amounts paid in relation to work performed wholly or mainly outside Australia are excluded from remuneration.

Note 13: Renumeration of auditors

  2009
$’000		   2008
$’000
Reconciliation of cash and cash equivalents as per balance sheet to cash flow statement      
       
The fair value of the services provided was:      
Audit services 157   200
  157   200
No other services were provided by the Auditor-General.      

 

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Last Updated: 1 December, 2009