Net cost of services | Notes | 2014 $'000 |
2013 $'000 |
---|---|---|---|
Expenses | |||
Employee benefits | 3a | 29,135 | 30,960 |
Suppliers | 3b | 18,219 | 19,480 |
Depreciation and amortisation | 3c | 1,083 | 1,198 |
Finance | 3d | 19 | 19 |
Loses | 3e | 24 | 167 |
Total expenses | 48,480 | 51,815 | |
Own-Source income | |||
Own-Source revenue | |||
Sale of goods and rendering of services | 4a | 25,985 | 29,000 |
Resources received free of charge | 4b | 42 | 39 |
Total own-source revenue | 26,027 | 29,039 | |
Gains | |||
Reversals of previous asset write-downs and impairments | 4c | 1 | 3 |
Total gains | 1 | 3 | |
Total own-source income | 26,028 | 29,042 | |
Net cost of services | (22,006) | (22,773) | |
Revenue from Government | 4d | 22,006 | 23,201 |
Surplus/(Deficit) | (446) | 428 | |
Other comprehensive income | |||
Items not subject to subsequent reclassification to net cost of services | |||
Changes in asset revaluation surplus | (119) | - | |
Total other comprehensive income | (119) | - | |
Total comprehensive income/(loss) | (565) | 428 |
Australian Public Service Commission Statement of Comprehensive Income for the period ended 30 June 2014
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission Statement of Financial Position as at 30 June 2014
Assets | Notes | 2014 $'000 |
2013 $'000 |
---|---|---|---|
Financial assets | |||
Cash and cash equivalents | 6a | 490 | 575 |
Trade and other receivables | 6b | 24,561 | 27,185 |
Total financial assets | 25,051 | 27,760 | |
Non-financial assets | |||
Land and buildings | 7a, c | 2,056 | 2,656 |
Property, plant and equipment | 7b, c | 1,279 | 1,351 |
Intangibles | 7c, e | 1,039 | 898 |
Inventories | 7f | 42 | 55 |
Prepayments paid | 7g | 522 | 992 |
Total non-financial assets | 4,938 | 5,952 | |
Total assets | 29,989 | 33,712 | |
Liabilities | |||
Payables | |||
Suppliers | 8a | 4,540 | 6,055 |
Prepayments received | 8b | 5,980 | 7,436 |
Lease incentives | 8c | 934 | 1,100 |
Other payables | 8d | 847 | 1,412 |
Provisions | |||
Employee provisions | 9a | 6,987 | 7,131 |
Provision for restoration obligations | 9b | 391 | 372 |
Total provisions | 7,378 | 7,503 | |
Total liabilities | 19,679 | 23,506 | |
Net assets | 10,310 | 10,206 | |
Equity | |||
Contributed equity | 369 | (300) | |
Asset revelation surplus | 1,204 | 1,323 | |
Retained surplus | 8,737 | 9,183 | |
Total equity | 10,310 | 10,206 |
Australian Public Service Commission Statement of Changes in Equity for the period ended 30 June 2014
Item | Retained earnings | Asset revaluation surplus | Contributed equity/capital | Total equity | ||||
---|---|---|---|---|---|---|---|---|
2014 $/000 | 2013 $/000 | 2014 $/000 | 2013 $/000 | 2014 $/000 | 2013 $/000 | 2014 $/000 | 2013 $/000 | |
Opening balance | 9,183 | 8,755 | 1,323 | 1,323 | (300) | (673) | 10,206 | 9,405 |
Comprehensive income | ||||||||
Surplus/(Deficit) for the period | (446) | 428 | - | - | - | - | (446) | 428 |
Other comprehensive income* | - | - | (119) | - | - | - | (119) | - |
Total comprehensive income | (446) | 428 | (119) | - | - | - | (565) | 428 |
Transactions with owners | ||||||||
Contributions by owners | ||||||||
Departmental capital budget | - | - | - | - | 669 | 373 | 669 | 373 |
Total transactions with owners | - | - | - | - | 669 | 373 | 669 | 373 |
Closing balance as at 30 June | 8,737 | 9,183 | 1,204 | 1,323 | 369 | (300) | 10,310 | 10,206 |
* See note 7 for details of revaluation adjustments
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission Cash Flow Statement for the period ended 30 June 2014
Operating activities | Notes | 2014 $'000 |
2013 $'000 |
---|---|---|---|
Cash received | |||
Appropriations | 21,968 | 23,201 | |
Receipts from Government | 6,000 | 7,256 | |
Sale of goods and rendering of services | 27,401 | 29,066 | |
Net GST received | 1,443 | 903 | |
Other cash received | 427 | 1,150 | |
Total cash received | 57,239 | 61,576 | |
Cash used | |||
Employees | 30,544 | 31,286 | |
Suppliers | 20,317 | 22,728 | |
Section 31 receipts transferred to OPA | 6,000 | 6,600 | |
Other cash used | 352 | 561 | |
Total cash used | 57,213 | 61,175 | |
Net cash from operating activities | 11 | 26 | 401 |
Investing activities | |||
Cash received | |||
Proceeds from sales of property, plant and equipment | - | 51 | |
Total cash received | - | 51 | |
Cash used | |||
Purchase of property, plant and equipment | 254 | 476 | |
Purchase of intangibles | 526 | 480 | |
Total cash used | 780 | 956 | |
Net cash used by investing activities | (780) | (905) | |
Financing activities | |||
Cash received | |||
Contributed equity | 669 | 373 | |
Total cash received | 669 | 373 | |
Net cash from financing activities | 669 | 373 | |
Net decrease in cash held | (85) | (131) | |
Cash and cash equivalents at the beginning of the reporting period | 575 | 706 | |
Cash and cash equivalents at the end of the reporting period | 6a | 490 | 575 |
Australian Public Service Commission Schedule of Commitments as at 30 June 2014
By type | 2014 $'000 |
2014 $'000 |
---|---|---|
Notes: 1 Commitments are GST inclusive where relevant 2 Contractual commitments for the office fit-out 3 Contractual commitments for the development of software 4 Operating leases included were effectively non-cancellable. The APSC has leases for office accommodation. Lease payments are subject to rent reviews in accordance with the lease agreement. The initial periods of office accommodation leases are still current. 5 Other commitments comprise amounts committed for fee for service, policy and administrative activities |
||
Commitments receivable | ||
Sublease rental income | (25) | (49) |
Net GST recoverable on commitments1 | (2,146) | (2,691) |
Total commitments receivable | (2,171) | (2,740) |
Commitments payable | ||
Capital commitments | ||
Property, plant and equipement2 | - | 4 |
Intangibles3 | 100 | 156 |
Total capital commitments | 100 | 160 |
Other commitments | ||
Operating leases4 | 19,223 | 21,874 |
Other5 | 4,300 | 7,624 |
Total other commitments | 25,523 | 29,498 |
Total commitments payable | 23,623 | 29,658 |
Net commitments by type | 21,452 | 26,918 |
Australian Public Service Commission Schedule of Commitments as at 30 June 2014
By maturity | 2014 $'000 |
2013 $'000 |
---|---|---|
Note: Commitments are GST inclusive where relevant | ||
Commitments receivable | ||
Operating lease income | ||
One year or less | (25) | (24) |
From one to five years | - | (25) |
Over five years | - | - |
Total operating lease income | (25) | (49) |
Net GST recoverable on commitments | ||
One year or less | (592) | (690) |
From one to five years | (956) | (1,192) |
Over five years | (598) | (809) |
Total net GST recoverable on commitments | (2,146) | (2,691) |
Total commitments receivable | (2,171) | (2,740) |
Commitments payable | ||
Capital commitments | ||
One year or less | 100 | 160 |
From one to five years | - | - |
Over five years | - | - |
Total capital commitments | 100 | 160 |
Operating lease commitments | ||
One year or less | 2,745 | 2,651 |
From one to five years | 10,003 | 10,456 |
Over five years | 6,475 | 8,767 |
Total operative lease commitments | 19,223 | 21,874 |
Other commitments | ||
One year or less | 3,694 | 4,804 |
From one to five years | 507 | 2,685 |
Over five years | 99 | 135 |
Total other commitments | 4,300 | 7,624 |
Total commitments payable | 23,623 | 29,658 |
Net commitments by maturity | 21,452 | 26,918 |
Australian Public Service Commission Schedule of Contingencies as at 30 June 2014
There are no departmental contingencies as at 30 June 2014 (2013: nil).
Australian Public Service Commission Administered Schedule of Comprehensive Income for the period ended 30 June 2014
Net cost of services | Notes | 2014 $'000 |
2013 $'000 |
---|---|---|---|
Expenses | |||
Employee benefits | 17a | 60,655 | 59,323 |
Total expenses | 60,655 | 59,323 | |
Net cost of services | (60,655) | (59,323) | |
Deficit | (60,655) | (59,323) | |
Other comprehension income | |||
Total other comprehension income | - | - | |
Total comprehensive loss | (60,655) | (59,323) |
Australian Public Service Commission Administered Schedule of Assets and Liabilities at at 30 June 2014
There are no assets or liabilities administered on behalf of the government as at 30 June 2014 (2013: nil).
Australian Public Service Commission Administered Reconciliation Schedule
2014 $'000 |
2013 $'000 |
|
---|---|---|
Opening assets less liabilities as at 1 July | - | - |
Net cost of services | ||
Expenses | ||
Payments to Non-CAC Act bodies | (60,655) | (59,323) |
Transfers from the Australian Government | ||
Special appropriations (unlimited) | ||
Payments to Non-CAC Act bodies | 60,655 | 59,323 |
Closing assets less liabilities as at 30 June | - | - |
Australian Public Service Commission Administered Cash Flow Statement for the period ended 30 June 2014
2014 $'000 |
2013 $'000 |
|
---|---|---|
Operating activities | ||
Cash used | ||
Employees | 60,655 | 59,323 |
Total cash used | 60,655 | 59,323 |
Net cash used by operating activities | (60,655) | (59,323) |
Net decrease in cash held | (60,655) | (59,323) |
Cash and cash equivalents at the beginning of the reporting period | - | - |
Cash from Official Public Account for appropriations | 60,655 | 59,323 |
Cash and cash equivalents at the end of the reporting period | - | - |
Australian Public Service Commission Schedule of Administrated Commitments as at 30 June 2014
There are no administered commitments as at 30 June 2014 (2013: nil).
Australian Public Service Commission Schedule of Administered Contingencies as at 30 June 2014
There are no administered contingencies as at 30 June 2014 (2013: nil).
Note 1: Summary of Significant Accounting Policies
1.1 Objective of the APSC
The APSC is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the APSC is to lead and shape a unified, high-performing APS.
The APSC is structured to meet one outcome, increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.
The continued existence of the APSC in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for the APSC's administration and programmes.
APSC activities contributing towards this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the APSC in its own right. Administered activities involve the management or oversight by the APSC, on behalf of the Government, of items controlled or incurred by the Government.
The APSC conducts the administered activity “Parliamentarians' and Judicial Office Holders' remuneration and entitlements” on behalf of Government.
1.2 Basis of preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.
The Financial Statements have been prepared in accordance with:
- Finance Minister's Orders (or FMOs) for reporting periods ending on or after 1 July 2011; and
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the operating result or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the APSC or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
1.3 Significant Accounting Judgements and Estimates
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.
1.4 New Australian accounting standards
Adoption of new Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
New and revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material financial impact, and are not expected to have a material future financial impact on the APSC.
Future Australian Accounting Standard requirements
No new or revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are expected to have a material future financial impact on the APSC.
AASB 1055 Budgetary Reporting will apply from 1 July 2014 and will require the disclosure of the original budget presented to Parliament, the variance of actual from budget and explanation of any material variances. The budget disclosures will apply to the statement of comprehensive income, statement of financial position, statement of changes in equity and the cash flow statement.
1.5 Revenue
Revenue from the sale of goods is recognised when:
- the risks and rewards of ownership have been transferred to the buyer
- the APSC retains no managerial involvement nor effective control over the goods
- the revenue and transaction costs incurred can be reliably measured; and
- It is probable that the economic benefits associated with the transaction will flow to the APSC.
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
- the amount of revenue, stage of completion and transaction costs incurred can be reliably
- measured; and
- the probable economic benefits associated with the transaction will flow to the APSC.
The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when the collectability of the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: recognition and measurement.
Resources received free of charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the APSC gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.
1.6 Gains
Resources received free of charge
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).
Sale of assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
1.7 Transactions with the Government as owner
Equity injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.
Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.
Other distributions to owners
The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend.
In 2013, as announced in the 2012-13 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance, the APSC relinquished control of surplus departmental appropriation funding of $112,000. On 29 June 2013, the Parliamentary Secretary to the Prime Minister requested a reduction in departmental appropriations by $112,000. The amount of the reduction under Appropriation Act (No. 1) 2012-13 is $112,000. The formal determination occurred in August 2013.
In 2014, as announced in the 2013-14 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance, the APSC relinquished control of surplus departmental appropriation funding of $38,000. Due to changes in administrative practice by the Department of Finance, a formal determination of this amount will occur as part of a general formal reduction of unused 2013-2014 appropriations in a future time period.
1.8 Employee benefits
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the APSC is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time that the leave is taken, including the APSC's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by using the Australian Government shorthand method for all employees as at 30 June 2014. The estimate of the present value of the liability takes into account attrition rates and pay rises through promotion and inflation.
Separation and redundancy
Provision is made for separation and redundancy benefit payments. The APSC recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
Superannuation
Staff of the APSC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.
The APSC makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The APSC accounts for the contributions as if they were contributions to defined contribution plans.
The superannuation payable (note 8d) recognised as at 30 June represents outstanding contributions for the final fortnight of the financial year. The provision for superannuation (note 9a) recognised as at 30 June represents the estimated superannuation payable on the provision for annual leave and long service leave.
1.9 Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.
Operating lease incentives taking the form of “free” leasehold improvements, lessor contributions and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.
1.10 Borrowing costs
All borrowing costs are expensed as incurred.
1.11 Fair value measurement
The APSC deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.
1.12 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes:
- cash on hand
- demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value
- cash held by outsiders; and
- cash in special accounts.
1.13 Financial assets
The APSC classifies its financial assets in the following category:
- loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.
Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.
Impairment of financial assets
Financial assets are assessed for impairment at the end of each reporting period.
Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the statement of comprehensive income.
1.14 Financial Liabilities
Financial liabilities are classified as either financial liabilities at fair value through profit or loss or as other financial liabilities. Financial liabilities are recognised and derecognised upon trade date.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).
1.15 Contingent liabilities and contingent assets
Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.
1.16 Acquisition of assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor's accounts immediately prior to the restructuring.
1.17 Property, plant and equipment
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000 which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to the provision for restoration obligations in property leases taken up by the APSC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the APSC's leasehold improvements with a corresponding provision for restoration obligations recognised.
Revaluations
Following initial recognition at cost, property plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets' fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
Revaluation adjustments were made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation surplus except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus or deficit. Revaluation decrements for a class of assets are recognised directly in the surplus or deficit except to the extent that they reverse a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the APSC using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
Asset class | 2014 | 2013 |
---|---|---|
Leasehold improvements | Lease term | Lease term |
Property, plant and equipment | 1 to 7 years | 1 to 7 years |
Impairment
All assets were assessed for impairment at 30 June 2014. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if the APSC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
1.18 Intangibles
The APSC's intangibles comprise intellectual property, purchased software and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses where the value of the asset exceeds $2,000 for purchased software and $60,000 for intellectual property.
Intangibles are amortised on a straight-line basis over their anticipated useful life. The useful lives of the APSC's intangibles are between 2 to 10 years (2013: 2 to 10 years).
All intangible assets were assessed for impairment as at 30 June 2014.
1.19 Inventories
Inventories held for sale are valued at the lower of cost and net realisable value.
Inventories held for distribution are valued at cost, adjusted for any loss in service potential.
Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:
- raw materials and stores – purchase cost on a first-in-first-out basis; and
- finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that are capable of being allocated on a reasonable basis.
Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.
1.20 Taxation/Competitive Neutrality
The APSC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses, assets and liabilities are recognised net of GST except:
- where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
- for receivables and payables.
The APSC is not subject to competitive neutrality arrangements.
1.21 Reporting of administered activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
Administered Cash Transfers to and from the Official Public Account
Revenue collected by the APSC for use by the Government rather than the APSC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the APSC on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.
Revenue
All administered revenues are revenues relating to ordinary activities performed by the APSC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of funds as directed.
Loans and Receivables
Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profit or loss.
Indemnities
At the time of completion of the financial statements, no indemnities have been issued and therefore no recognition of any liability or disclosure in the schedule of administered contingencies was required.
Grants and Subsidies
The APSC does not administer any grant or subsidy schemes on behalf of the Government.
Payments to CAC Act Bodies
The APSC does not administer payments to CAC Act bodies.
Note 2: Events Occurring After Reporting Date
There was no subsequent event that had the potential to affect the ongoing structure and financial activities of the APSC.
Note 3: Expenses
Employee benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Wages and salaries | 21,999 | 22,570 |
Superannuation | ||
Defined contribution plans | 1,808 | 1,707 |
Defined benefit plans | 2,396 | 2,457 |
Leave and other entitlements | 2,861 | 2,969 |
Separation and redundancies | 71 | 1,257 |
Total employee benefits | 29,135 | 30,960 |
Goods and services supplied or rendered | 2014 $'000 |
2013 $'000 |
---|---|---|
Consultants | 75 | 1,238 |
Contractors | 7,805 | 8,144 |
Travel | 1,316 | 1,733 |
Venue hire and catering | 925 | 1,141 |
Publications and printing | 217 | 237 |
Training | 400 | 460 |
Information and communications technology | 2,545 | 2,791 |
Facilities expense | 114 | 122 |
Other goods and services | 922 | 633 |
Total goods and services supplied or rendered | 15,319 | 16,499 |
Goods supplied in connection with | 2014 $'000 |
2013 $'000 |
---|---|---|
Related parties | 3 | 9 |
External parties | 359 | 463 |
Total goods supplied | 362 | 472 |
Services rendered in connection with | 2014 $'000 |
2013 $'000 |
---|---|---|
Related parties | 2,424 | 2,685 |
External parties | 12,533 | 13,342 |
Total services rendered | 14,957 | 16,027 |
Total goods and services supplied or rendered | 15,319 | 16,499 |
Other suppliers | 2014 $'000 |
2013 $'000 |
---|---|---|
Operating lease rentals in connection with | ||
Related parties - Sublease | 189 | 332 |
External parties - Minimum lease payments | 2,323 | 2,408 |
External parties - Contingent rentals | 68 | 65 |
Worker compensation expenses | 320 | 176 |
Total other suppliers | 2,900 | 2,981 |
Total suppliers | 18,219 | 19,480 |
Depreciation | 2014 $'000 |
2013 $'000 |
---|---|---|
Property, plant and equipment | 380 | 471 |
Buildings | 402 | 435 |
Total depreciation | 782 | 906 |
Amortisation | 2014 $'000 |
2013 $'000 |
---|---|---|
Intangibles | 301 | 283 |
Total amortisation | 301 | 283 |
Total depreciation and amortisation | 1,083 | 1,189 |
Finance costs | 2014 $'000 |
2013 $'000 |
---|---|---|
Unwinding of discount | 19 | 19 |
Total finance costs | 19 | 19 |
Buildings | 2014 $'000 |
2013 $'000 |
---|---|---|
Proceeds from sale | - | (50) |
Carrying value of assets sold | - | 112 |
- | 62 |
Property, plant and equipment | 2014 $'000 |
2013 $'000 |
---|---|---|
Proceeds from sale | - | (1) |
Carrying value of assets sold | 24 | 106 |
24 | 105 | |
Total losses from asset sales | 24 | 167 |
Note 4: Own-source income
Own-source revenue
Sale of goods in connection with | 2014 $'000 |
2013$'000 |
---|---|---|
Related parties | 11 | 4 |
External parties | 1 | 1 |
Total sale of goods | 12 | 5 |
Rendering of services in connection with | 2014 $'000 |
2013 $'000 |
---|---|---|
Related parties | 25,134 | 28,009 |
External parties | 839 | 986 |
Total rendering of services | 25,973 | 28,995 |
Total sale of goods and rendering of services | 25,985 | 29,000 |
Resources received free of charge | 2014 $'000 |
2013 $'000 |
---|---|---|
42 | 39 |
Gains
Reversal of impairment losses | 2014 $'000 |
2013 $'000 |
---|---|---|
1 | 3 |
Revenue from Government
Appropriations | 2014 $'000 |
2013 $'000 |
---|---|---|
Departmental appropriations | 22,006 | 23,201 |
Total revenue from Government | 22,006 | 23,201 |
Note 5: Fair Value Measurement
The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of fair value hierarchy are defined below.
Level 1: Quoted process (unadjusted) in active markets for identical assets or liabilities that the APSC can access at measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
Note 5a: fair value measurements
Fair value measurements at the end of the reporting period using | ||||
---|---|---|---|---|
Non-financial assets | Fair value $'000 | Level 1 inputs $'000 | Level 2 inputs $'000 | Level 3 inputs $'000 |
Leasehold improvements | 2,056 | - | - | 2,056 |
Other property, plant and equipment | 1,279 | - | - | 1,279 |
Total non-financial assets | 3,335 | - | - | 3,335 |
Total fair value measurements of assets in the statement of financial position | 3,335 | - | - | 3,335 |
The highest and best use of all non-financial assets are the same as their current use.
Note 5b: Level 1 and level 2 transfers for recurring fair value measurements
During 2014 there were no recurring fair value measurements transferred between Level 1 and Level 2 for assets and liabilities.
The APSC's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.
Note 5c: Valuation technique and inputs for level 2 and level 3 fair value measurements
Non-financial assets | Category (Level 2 or Level 3) | Fair value $'000 | Valuation technique(s)1 | Inputs used | Range (weighted average)2 |
---|---|---|---|---|---|
Leasehold improvements | Level 3 | 2,056 | Depreciated replacement cost | See footnote 3 | Replacement cost of $750 to $1,762 per square metre |
Other property, plant and equipment | Level 3 | 1,279 | Depreciated replacement cost | See footnote 4 | N/A |
- No change in valuation technique occurred during the period.
- Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.
- The major input relevant to leasehold improvements is an estimate of replacement cost based upon the specifics of each particular leasehold improvement including construction type, use, services, specialist components and the like. The fair value is then assessed by having regard to that portion of the likely length of the lease term that has expired, the remaining lease term and remaining useful life. Assets in this class are considered on an individual basis, not on any average or weighted average basis, as each needs to be considered specifically to represents its characteristics.
- The primary input for other property, plant and equipment is the replacement cost of the asset as at the date of valuation. The fair value is assessed by reference to the assets physical and functional characteristics, the APSC's internal policy for each class, the adopted useful life and the expended and remaining useful life of each asset. Assets are considered on an individual basis, rather than from any predetermined averaging or weighted averages, however where there are numerous alike assets, for example, computers which are all identical and purchased on the same date, the assessment of one asset is then utilised for those alike assets.
Recurring and non-recurring Level 3 fair value measurements - valuation processes
The APSC procured valuation services from Preston Rowe Patterson (PRP) and relied on valuations prepared by PRP in compliance with AASB 13.
Recurring Level 3 fair value measurements - sensitivity of inputs
There are no significant unobservable inputs used in the fair value measurement of the APSC's non-financial assets.
Note 5d: Reconciliation for recurring Level 3 fair value measurements
The APSC has no assets or liabilities at fair value using recurring level 3 fair value measurements.
Note 6: Financial Assets
Note 6a: Cash and cash equivalents
Cash on hand or on deposits | 2014 $'000 |
2013 $'000 |
---|---|---|
Cash on hand or on deposit | 490 | 575 |
Total cash and cash equivalents | 490 | 575 |
Note 6b: Trade and other receivables
Goods and services receivable in connection with | 2014 $'000 |
2013 $'000 |
---|---|---|
Related parties | 2,442 | 5,278 |
External parties | 168 | 85 |
Total goods and services receivables | 2,610 | 5,363 |
Appropriations receivables | 2014 $'000 |
2013 $'000 |
---|---|---|
Existing programmes | 21,362 | 21,324 |
Total appropriations receivables | 21,362 | 21,324 |
Other receivables | 2014 $'000 |
2013 $'000 |
---|---|---|
GST receivable from the Australian Taxation Office | 565 | 475 |
Incentive receivable | 25 | 25 |
Total other receivables | 590 | 500 |
Total trade and other receivables (gross) | 24,562 | 27,187 |
Less impairment allowance | 2014 $'000 |
2013 $'000 |
---|---|---|
Goods and services | (1) | (2) |
Total impairment allowance | (1) | (2) |
Total trade and other receivables (net) | 24,561 | 27,185 |
Trade and other receivables (net) expected to be recovered | 2014 $'000 |
2013 $'000 |
---|---|---|
No more than 12 months | 24,536 | 27,160 |
More than 12 months | 25 | 25 |
Total trade and other receivables (net) | 24,561 | 27,185 |
Trade and other receivables (gross) aged as follows | 2014 $'000 |
2013 $'000 |
---|---|---|
Not overdue | 24,308 | 26,595 |
Overdue by 0 to 30 days | 147 | 250 |
Overdue by 31 to 60 days | 49 | 247 |
Overdue by 61 to 90 days | 45 | 79 |
Overdue by More than 90 days | 13 | 16 |
Total trade and other receivables (gross) | 24,562 | 27,187 |
Impairment allowance aged as follows | 2014 $'000 |
2013 $'000 |
---|---|---|
Overdue by more than 90 days | (1) | (2) |
Total impairment allowance | (1) | (2) |
Reconciliation of impairment allowance | 2014 $'000 |
2013 $'000 |
---|---|---|
Opening balance | (2) | (6) |
Amounts written-off | - | 4 |
Amounts recovered and reversed | 2 | 2 |
(Increase)/decrease recognised in net cost of services | (1 | (2) |
Closing balance | (1) | (2) |
Credit terms for goods and services were within 30 days (2013: 30 days).
Note 7: Non-Financial Assets
Note 7a: Land and buildings
Leasehold improvements | 2014 $'000 |
2013 $'000 |
---|---|---|
Fair value | 2,056 | 3,404 |
Accumulated depreciation | - | (748) |
Total leasehold improvements | 2,056 | 2,656 |
Total land and buildings | 2,056 | 2,656 |
Leasehold improvements were subject to revaluation on 30 June 2014. The carrying amount of $2,056,000 was included in the valuation figures above.
Leasehold improvements were assessed for impairment as at 30 June 2014, no impairment loss was identified (2013: nil).
No leasehold improvements (2013: nil) are expected to be disposed of within the next 12 months.
Note 7b: Property, plant and equipment
Other property, plant and equipment | 2014 $'000 |
2013 $'000 |
---|---|---|
Fair value | 1,279 | 2,896 |
Accumulated depreciation | - | (1,545) |
Total other property, plant and equipment | 1,279 | 1,351 |
Total property, plant and equipment | 1,279 | 1,351 |
Property, plant and equipment was subject to revaluation on 30 June 2014. The carrying amount of $1,279,000 was included in the valuation figures above.
No indicators of impairment were found for property, plant and equipment.
No material items of property, plant or equipment are expected to be sold or disposed of within the next 12 months.
Revaluation of non-financial assets
Preston Rowe Paterson conducted the revaluation of leasehold improvements and other property, plant and equipment on 30 June 2014. All revaluations were conducted in accordance with the revaluation policy stated at Note 5.
Revaluation decrement for leasehold improvements was $198,000 (2013: nil). Revaluation increment for property, plant and equipment was $78,000 (2013: nil).
All increments and decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. No decrements were expensed (2013: nil).
Note 7c: Reconciliation of the opening and closing balances of property, plant and equipment
Buildings leasehold improvements $'000 | Other property, plant & equipment $'000 | Total | |
---|---|---|---|
Gross book value (as at 1 July 2013) | 3,404 | 2,896 | 6,300 |
Accumulated depreciation and impairment (as at 1 July 2013) | (748) | (1,545) | (2,293) |
Total as at 1 July 2013 | 2,656 | 1,351 | 4,007 |
Additions - Purchase or internally developed | - | 254 | 254 |
Revaluations and impairments recognised in other comprehensive income | (198) | 78 | (120) |
Depreciation | (402) | (380) | (782) |
Disposals - Other | - | (24 | (24) |
Total as at 30 June 2014 | 2,056 | 1,279 | 3,335 |
Total as at 30 June 2014 represented by gross book value | 2,056 | 1,279 | 3,335 |
Total as at 30 June 2014 represented by accumulated depreciation and impairment | - | - | - |
Total as at 30 June 2014 | 2,056 | 1,279 | 3,335 |
Buildings leasehold improvements $'000 | Other property, plant & equipment $'000 | Total | |
---|---|---|---|
As at 1 July 2012 - gross book value | 3,856 | 3,060 | 6,916 |
As at 1 July 2012 - accumulated depreciation and impairment | (717) | (1,179) | (1,896) |
Total as at 1 July 2012 | 3,139 | 1,881 | 5,020 |
Additions - purchase or internally developed | 64 | 47 | 111 |
Depreciation | (435) | (471) | (906) |
Disposals - other disposals | (112) | (106) | (218) |
Total as at 30 June 2013 | 2,656 | 1,351 | 4,007 |
Total as at 30 June 2013 represented by - gross book value | 3,404 | 2,896 | 6,300 |
Total as at 30 June 2013 represented by - accumulated depreciation and impairment | (748) | (1,545) | (2,293) |
Total as at 30 June 2013 | 2,656 | 1,351 | 4,007 |
Note 7d: Intangibles
Computer software | 2014 $'000 |
2013 $'000 |
---|---|---|
Internally developed - in progress | - | 363 |
Internally developed - in use | 1,887 | 1,582 |
Purchased | 866 | 366 |
Accumulated amortisation | (1,729) | (1,441) |
Total computer software | 1,024 | 870 |
Intellectual property | 2014 $'000 |
2013 $'000 |
---|---|---|
Internally developed - in use | 814 | 814 |
Accumulated amortisation | (799) | (786) |
Total intellectual property | 15 | 28 |
Total intangibles | 1,039 | 898 |
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
Note 7e: Reconciliation of the opening and closing balances of intangibles
Computer software purchased $'000 | Computer software internally developed $'000 | Intellectual property $'000 | Total | |
---|---|---|---|---|
As at 1 July 2013- gross book value | 367 | 1,944 | 814 | 3,125 |
As at 1 July 2013 - accumulated depreciation and impairment | (215) | (1,226) | (786) | (2,227) |
Total as at 1 July 2013 | 152 | 718 | 28 | 898 |
Additions - by purchase or internally developed | 499 | (57) | - | 442 |
Amortisation | (158) | (130) | (13) | (301) |
Disposals - other | - | - | - | - |
Total as at 30 June 2014 | 493 | 531 | 15 | 1,039 |
Total as at 30 June 2014 represented by gross book value | 866 | 1,887 | 814 | 3,567 |
Accumulated depreciation and impairment | (373) | (1,356) | (799) | (2,528) |
Total as at 30 June 2014 | 493 | 531 | 15 | 1,039 |
Computer software purchased $'000 | Computer software internally developed $'000 | Intellectual property $'000 | Total | |
---|---|---|---|---|
As at 1 July 2012 - gross book value | 405 | 1,392 | 839 | 2,636 |
Accumulated depreciation and impairment | (98) | (1,069) | (815) | (1,982) |
Total as at 1 July 2012 | 307 | 323 | 24 | 654 |
Additions - by purchase or internally developed | (38) | 552 | 13 | 527 |
Amortisation | (117) | (157) | (9) | (283) |
Disposals -other | - | - | - | - |
Total as at 30 June 2013 | 152 | 718 | 28 | 898 |
Total as at 30 June 2013 represented by - gross book value | 367 | 1,944 | 814 | 3,125 |
Accumulated depreciation and impairment | (215) | (1,226) | (786) | (2,227) |
Total as at 30 June 2013 | 152 | 718 | 28 | 898 |
Note 7f: Inventories
2014 $'000 |
2013 $'000 |
|
---|---|---|
Inventories held for distribution | 42 | 55 |
Total inventories | 42 | 55 |
In 2014, $13,000 of inventory held for distribution was recognised as an expense (2013: $7,000). No items of inventory were recognised at fair value less cost to sell.
All inventory is expected to be sold or distributed in the next 12 months.
Note 7g: Prepayments paid
2014 $'000 |
2013 $'000 |
|
---|---|---|
Prepayments paid | 522 | 992 |
Prepayments paid expected to be recovered | 2014 $'000 |
2013 $'000 |
---|---|---|
No more than 12 months | 508 | 987 |
More than 12 months | 14 | 5 |
Total prepayments paid | 522 | 992 |
No indicators of impairment were found for prepayments paid.
Note 8: Payables
Note 8a: Suppliers
2014 $'000 |
2013 $'000 |
|
---|---|---|
Trade creditors and accruals | 2,706 | 4,254 |
Operating lease rentals | 1,834 | 1,801 |
Total suppliers | 4,540 | 6,055 |
Suppliers expected to be settled | 2014 $'000 |
2013 $'000 |
---|---|---|
No more than 12 months | 2,759 | 4,277 |
More than 12 months | 1,781 | 1,778 |
Total suppliers | 4,540 | 6,055 |
Suppliers in connection with | 2014 $'000 |
2013 $'000 |
---|---|---|
Related parties | 826 | 1,596 |
External parties | 3,714 | 4,459 |
Total suppliers | 4,540 | 6,055 |
Note 8b: Prepayments received
Prepayments received expected to be settled | 2014 $'000 |
2013 $'000 |
---|---|---|
No more than 12 months | 5,922 | 7,373 |
More than 12 months | 58 | 63 |
Total prepayments received | 5,980 | 7,436 |
Note 8c: Lease incentives
Lease incentives expected to be settled | 2014 $'000 |
2013 $'000 |
---|---|---|
No more than 12 months | 166 | 166 |
More than 12 months | 768 | 934 |
Total lease incentives | 934 | 1,100 |
Note 8d: Other payables
Other payables | 2014 $000 | 2013 $000 |
---|---|---|
Wages and salaries | 701 | 640 |
Superannuation | 115 | 105 |
Separations and redundancies | - | 638 |
Other | 31 | 29 |
Total other payables | 847 | 1,412 |
All other payables are expected to be settled in no more than 12 months.
Note 9: Provisions
Note 9a: Employee provisions
2014 $'000 |
2013 $'000 |
|
---|---|---|
Leave | 6,456 | 6,590 |
Superannuation | 531 | 541 |
Total employee provisions | 6,987 | 7,131 |
2014 $'000 |
2013 $'000 |
|
---|---|---|
No more than 12 months | 3,219 | 3,236 |
More than 12 months | 3,768 | 3,895 |
Total employee provisions | 6,987 | 7,131 |
2014 $'000 |
2013 $'000 |
|
---|---|---|
As at 1 July | 372 | 460 |
Additional provisions made | 1 | - |
Amounts used | - | (39) |
Amounts reversed | (1) | (68) |
Unwinding of discount or change in discount rate | 19 | 19 |
Total as at 30 June | 391 | 372 |
2014 $'000 |
2013 $'000 |
|
---|---|---|
No more than 12 months | - | - |
More than 12 months | 391 | 372 |
Total provision for restoration obligations | 391 | 372 |
The APSC currently has two (2013: two) agreements for the leasing of premises which have provisions requiring the APSC to restore the premises to their original condition at the conclusion of the lease. The APSC has made a provision to reflect the present value of this obligation.
Note 10: Restructuring
Note 10a: Departmental Restructuring
There were no restructures for 2014 (2013: nil).
Note 10b: Administered Restructuring
There were no restructures for 2014 (2013: nil).
Note 11: Cash Flow Reconciliation
Cash and cash equivalents as per: | 2014 $'000 |
2013 $'000 |
---|---|---|
Cash flow statement | 490 | 575 |
Statement of financial position | 490 | 575 |
Discrepancy | - | - |
2014 $'000 |
2013 $'000 |
|
---|---|---|
Net cost of services | (22,452) | (22,773) |
Revenue from Government | 22,006 | 23,201 |
2014 $'000 |
2013 $'000 |
|
---|---|---|
Depreciation and amortisation | 1,083 | 1,189 |
Loss on sale of assets | 24 | 167 |
Assets | 2014 $'000 |
2013 $'000 |
---|---|---|
(Increase)/decrease in net receivables | 2,624 | (983) |
(Increase)/decrease in inventories | 13 | (5) |
(Increase)/decrease in prepayments paid | 470 | (229) |
Liabilities | 2014 $'000 |
2013 $'000 |
---|---|---|
Increase/(decrease) in supplier payables | (1,429 | (1,192) |
Increase/(decrease) in prepayments received | (1,456) | 491 |
Increase/(decrease) in lease incentives | (166) | (166) |
Increase/(decrease) in other payables | (566) | 518 |
Increase/(decrease) in employee provisions | (144) | 271 |
Increase/(decrease) in provision for restoration obligations | 19 | (88) |
Net cash from operating activities | 26 | 401 |
Note 12: Contingent Assets and Liabilities
The APSC has no quantifiable, unquantifiable or significant remote departmental contingent assets and liabilities (2013: nil).
Note 13: Senior Executive Remuneration
Note 13a: Senior Executive remuneration expenses for the reporting period
Short-term employee benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Salary | 2,548,914 | 2,573,527 |
Motor vehicle and other allowances | 292,454 | 339,655 |
Total short-term employee benefits | 2,841,368 | 2,913,182 |
Post employment benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Superannuation | 439,468 | 461,830 |
Total post employment benefits | 439,468 | 461,830 |
Other long-term benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Annual leave accrued | 254,046 | 250,413 |
Long-service leave | 114,238 | 191,523 |
Total other long-term benefits | 368,284 | 441,936 |
Termination benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Voluntary redundancy payments | - | - |
Total other long-term benefits | - | - |
2014 $'000 |
2013 $'000 |
|
---|---|---|
Total employment benefits | 3,649,120 | 3,816,948 |
Notes:
- This note is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may differ from the cash ‘Bonus paid’ in note 13b – please note that no bonuses were paid in 2014 (2013: nil)).
- This note excludes acting arrangements and part year service where total remuneration expensed for a senior executive was less than $195,000.
Note 13b: Average annual reportable remuneration paid to substantive Senior Executives during the reporting period
Average annual reportable remuneration 1 | Substantive Senior Executives No. | Reportable salary 2 $ | Contributed superannuation 3 $ | Reportable allowances 4 $ | Bonus paid 5 $ | Total reportable remuneration $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements) | ||||||
Less than $195,000 | 1 | 84,605 | 5,204 | - | - | 89,809 |
$195,000 to $224,999 | 4 | 191,845 | 29,176 | - | - | 221,021 |
$225,000 to $254,999 | 4 | 204,385 | 30,157 | - | - | 234,542 |
$255,000 to $284,999 | 2 | 240,047 | 36,473 | - | - | 276,520 |
$285,000 to $314,999 | 1 | 265,397 | 42,245 | - | - | 307,642 |
$645,000 to $674,999 | 1 | 576,750 | 86,942 | - | - | 663,692 |
Total number of substantive senior executives | 13 |
Average annual reportable remuneration 1 | Substantive Senior Executives No. | Reportable salary 2 $ | Contributed superannuation 3 $ | Reportable allowances 4 $ | Bonus paid 5 $ | Total reportable remuneration $ |
---|---|---|---|---|---|---|
Total remuneration (including part-time arrangements) | ||||||
Less than $195,000 | 2 | 98,745 | 11,368 | - | - | 110,113 |
$195,000 to $224,999 | 6 | 185,273 | 28,128 | - | - | 213,401 |
$225,000 to $254,999 | 2 | 206,686 | 31,403 | - | - | 238,089 |
$255,000 to $284,999 | 3 | 227,868 | 37,690 | - | - | 265,558 |
$315,000 to $344,999 | 1 | 282,864 | 45,145 | - | - | 328,009 |
$555,000 to $584,999 | 1 | 493,276 | 72,038 | - | - | 565,314 |
Total number of substantive senior executives | 15 |
Notes:
- This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.
- ‘Reportable salary’ includes the following:
- gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column)
- reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits)
- reportable employer superannuation contributions and
- exempt foreign employment income
- The ‘contributed superannuation’ amount is the average cost to the APSC for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.
- ‘Reportable allowances’ are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
- ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the APSC during the financial year.
Note 13c: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period
The APSC had no other highly paid staff during 2014 (2013: Nil).
Note 14: Remuneration of Auditors
Fair value of the services provided | 2014 $'000 |
2013 $'000 |
---|---|---|
Financial statement audit services | 42 | 39 |
No other services were provided by the ANAO.
Note 15: Financial Instruments
Note 15a: Categories of financial instruments
Loans and receivables | 2014 $'000 |
2013 $'000 |
---|---|---|
Cash and cash equivalents | 490 | 575 |
Trade and other receivables | 2,609 | 5,361 |
Incentive receivable | 25 | 25 |
Total loans and receivables: | 3,124 | 5,961 |
Total financial assets | 3,124 | 5,961 |
Financial liabilities measured at amortised cost | 2014 $'000 |
2013 $'000 |
---|---|---|
Trade creditors | 2,706 | 4,254 |
Other payables | 31 | 29 |
Total financial liabilities measured at amortised cost | 2,737 | 4,283 |
Carrying amount of financial liabilities | 2014 $'000 |
2013 $'000 |
---|---|---|
Carrying amount of financial liabilities | 2,737 | 4,283 |
Note 15b: Net gains or losses on financial assets
Loans and receivables | 2014 $'000 |
2013 $'000 |
---|---|---|
Impairment on goods and services receivable | 1 | 3 |
Net gains/(losses) on loans and receivables | 1 | 3 |
Net gains/(losses) on financial assets | 1 | 3 |
Note 15c: Net gains or losses on financial liabilities
The net total interest expense from financial liabilities not at fair value from profit and loss is nil (2013: nil).
Note 15d: Fair value of financial instruments
The carrying amount of all financial assets and liabilities is a reasonable approximation of their fair value. The net fair values of finance lease liabilities are based on discounted cash flows using the interest rate implicit in the lease.
Note 15e: Credit risk
The APSC was exposed to minimal credit risk as loans and receivables were goods and services receivable and incentive receivable. The maximum exposure to credit risk was the risk that arises from the potential default of a debtor. This amount was equal to the total amount of goods and services and incentive receivable (see note 15a). The APSC has assessed the risk of the default on payment and has allocated an allowance for impairment on goods and services receivable.
The APSC's goods and services receivable are principally recoverable from other Australian Government agencies. The incentive receivable is recoverable from a building lessor, with the amount recoverable specified in the lease agreement. In addition, the APSC had policies and procedures that guide debt recovery techniques that were to be applied.
The APSC holds no collateral to mitigate against credit risk.
Not Past Due Nor Impaired 2014 $'000 |
Not Past Due Nor Impaired 2013 $'000 |
Past due or impaired 2014 $'000 |
Past due or impaired 2013 $'000 |
|
---|---|---|---|---|
Goods and services receivable | 2,356 | 4,771 | 254 | 592 |
Incentive receivable | 25 | 25 | - | - |
Total | 2,381 | 4,796 | 254 | 592 |
Year | 0 to 30 days $'000 |
31 to 60 days $'000 |
61 to 90 days $'000 |
90+ days $'000 |
Total $'000 |
|
---|---|---|---|---|---|---|
Goods and services receivable | 2014 | 147 | 49 | 45 | 12 | 253 |
2013 | 250 | 247 | 79 | 14 | 590 |
The following list of assets have been individually assessed as impaired
Loans and receivables | 2014 $'000 |
2013 $'000 |
---|---|---|
Goods and services receivable | (1) | (2) |
Total | (1) | (2) |
These items are assessed as impaired as they are past due by 90 + days and it will be uneconomic to pursue them.
Note 15f: Liquidity risk
The APSC's financial liabilities were payables, including credit cards with a facility limit of $900,000 (2013: $900,000). The exposure to liquidity risk is based on the notion that the APSC will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as the APSC is appropriated funding from the Australian Government and the APSC manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the APSC has policies in place to ensure timely payments are made when due and has no past experience of default.
On demand $'000 |
Within 1 year $'000 |
1 to 2 years $'000 |
2 to 5 years $'000 |
>5 years $'000 |
Total $'000 |
|
---|---|---|---|---|---|---|
Trade creditors | - | 2,706 | - | - | - | 2,706 |
Other payables | - | 31 | - | - | - | 31 |
- | 2,737 | - | - | - | 2,737 |
On demand $'000 |
Within 1 year $'000 |
1 to 2 years $'000 |
2 to 5 years $'000 |
>5 years $'000 |
Total $'000 |
|
---|---|---|---|---|---|---|
Trade creditors | - | 4,254 | - | - | - | 4,254 |
Other payables | - | 29 | - | - | - | 29 |
Total | - | 4,283 | - | - | - | 4,283 |
The APSC had no derivative financial instruments in 2014 (2013: nil).
Note 15g: Market risk
The APSC held basic financial instruments that did not expose the APSC to certain market risks such as ‘Currency risk‘ and ‘Other price risk‘.
There are no interest-bearing items on the statement of financial position.
Note 16: Financial Assets Reconciliation
Financial assets | Notes | 2014 $'000 |
2013 $'000 |
---|---|---|---|
Total financial assets as per statement of financial position | 25,051 | 27,760 | |
Less: non-financial instrument components - appropriations receivables | 6b | 21,362 | 21,324 |
Less: non-financial instrument components - other receivables | 6b | 565 | 475 |
Total non-financial instrument components | 21,927 | 21,799 | |
Total financial assets as per financial instruments note | 3,124 | 5,961 |
Note 17: Administered - Expenses
Note 17a: Employee Benefits
Employee benefits | 2014 $'000 |
2013 $'000 |
---|---|---|
Wages and salaries | 60,655 | 59,323 |
Total employee benefits | 60,655 | 59,323 |
Note 18: Administered - Contingent Assets and Liabilities
The APSC has no quantifiable, unquantifiable or significant remote administered contingent assets and liabilities (2013: nil).
Note 19: Administered - Financial Instruments
The APSC has no administered financial instruments.
Note 20: Appropriations
Note 20a: Annual Appropriations (‘Recoverable GST exclusive’)
Annual Appropriations for 2014
Appropriation Act | FMA Act | Total Appropriations $'000 | Appropriations applied in 2014 (current and prior years) $'000 |
Variance $'000 | ||||
---|---|---|---|---|---|---|---|---|
Annual Appropriation $'000 |
Appropriations reduced 1 $'000 |
Section 30 $'000 |
Section 31 $'000 |
Section 32 $'000 |
||||
Departmental - ordinary annual services | 22,675 | (112) | - | 27,757 | - | 50,320 | (50,536) | (216) |
Total Departmental | 22,675 | (112) | - | 27,757 | - | 50,320 | (50,536) | (216) |
Notes:
- Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2013-14: sections 10, 11 and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2013-14: sections 12, 13, and 14. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.
On 29 June 2013, the Parliamentary Secretary to the Prime Minister sent a letter to the Finance Minister requesting a reduction in 2012-13 departmental appropriations under Appropriation Act (No. 1) 2012-13 of $112,000. This reduction was determined by the Finance Minister on 5 August 2013 and is disclosed as a formal reduction in the 2013-14 Annual Appropriation table.
In 2014, as announced in the 2013-14 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance, the APSC relinquished control of surplus departmental appropriation funding of $38,000. On 11 October 2013 this amount was quarantined in the Central Budget Management System. A formal determination to reduce this unused 2013-2014 appropriation will be made under a general appropriation reduction in a future period.
Annual Appropriations for 2013
Appropriation Act | FMA Act | Total Appropriations $'000 | Appropriations applied in 2014 (current and prior years) $'000 |
Variance $'000 | ||||
---|---|---|---|---|---|---|---|---|
Annual Appropriation $'000 |
Appropriations reduced 1 $'000 |
Section 30 $'000 |
Section 31 $'000 |
Section 32 $'000 |
||||
Departmental - ordinary annual services | 23,686 | - | 29,918 | - | 53,604 | (53,717 | (113) | |
Total Departmental | 23,686 | - | 29,918 | - | 53,604 | (53,717 | (113) |
Notes:
- Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2012-13: sections 10, 11 and 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2012-13: sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.
Note 20b: Departmental Capital Budgets (‘Recoverable GST exclusive’)
2014 Capital Budget Appropriations | Capital Budget Appropriations applied in 2014 (current and prior years) | Variance $'000 |
||||||
---|---|---|---|---|---|---|---|---|
Appropriations Act | FMA Act | Total Capital Budget Appropriations $'000 |
Payments for non-financial assets 3 $'000 |
Payments for other purposes $'000 |
Total payments $'000 |
|||
Annual Capital Budget $'000 |
Appropriations reduced 2 $'000 |
Section 32 $'000 | ||||||
Departmental: Ordinary annual services – Departmental Capital Budget 1 | 669 | - | - | 669 | 669 | - | 669 | - |
Notes:
- Departmental Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
- Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2013-14: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
- Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.
2013 Capital Budget Appropriations | Capital Budget Appropriations applied in 2013 (current and prior years) | Variance $'000 |
||||||
---|---|---|---|---|---|---|---|---|
Appropriations Act | FMA Act | Total Capital Budget Appropriations $'000 |
Payments for non-financial assets 3 $'000 |
Payments for other purposes $'000 |
Total payments $'000 |
|||
Annual Capital Budget $'000 |
Appropriations reduced 2 $'000 |
Section 32 $'000 | ||||||
Departmental: Ordinary annual services – Departmental Capital Budget 1 | 373 | - | - | 373 | 373 | - | 373 | - |
Notes:
- Departmental Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
- Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
- Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.
Note 20c: Unspent Departmental Annual Appropriations (‘Recoverable GST exclusive’)
Departmental | 2014 $'000 |
2013 $'000 |
---|---|---|
Appropriation Act (No. 1) 2012–13 | - | 22,477 |
Appropriation Act (No. 1) 2013–14 | 22,285 | - |
Appropriation Act (No. 2) 2007–08 | - | 24 |
Total departmental | 22,285 | 22,501 |
Note 20d: Special Appropriations Applied ('Recoverable GST exclusive')
Authority | Type | Purpose | Appropriation applied | |
---|---|---|---|---|
2014 $'000 |
2014 $'000 |
|||
Remuneration Tribunal Act 1973 - Section 7(13) - Administered | Unlimited amount | An Act to inquire into, and determine or provide advice on, remuneration and related matters (a) | 60,655 | 59,323 |
Remuneration and Allowances Act 1990 - Section 8 - Administered | Unlimited amount | An Act to provide for the remuneration and allowances of holders and judicial offices, Secretaries of Departments and holders of public offices, Senators and Members of the House of Representatives, Ministers and office holders of the Parliament related matters (b) | - | - |
Total special appropriations applied | 60,655 | 59,323 |
Notes:
- (a) This special appropriation is administered by the APSC; however the Department of the House of Representatives, the Department of the Senate and the Attorney General's Department spend money from the CRF for the purposes of the Act.
- (b) Due to amendments in 2011 to the Remuneration Tribunal Act 1973, from 15 March 2012 payments are no longer made under the Remuneration and Allowances Act 1990.
Note 21: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Australian Government continues to have regard to developments in case law, including the High Court's most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programmes. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.
Note 21a: Departmental payments
During 2013 legal advice was received that indicated there could be breaches of section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. During 2014, the APSC reviewed its processes and controls over payments for these items to determine the possibility of breaches as a result of these payments. The APSC has determined that there is minimal risk of the certain circumstances mentioned in the legal advice applying to departmental payments. The APSC has not identified any specific breaches of section 83 in respect of these items.
Note 21b: Administered payments
The possibility of breaches of section 83 of the Constitution for the APSC's administered payments was investigated and confirmed in prior years. The APSC and drawing agencies identified those special appropriations containing statutory conditions for payment, comprised:
- Remuneration Tribunal Act 1973; and
- Remuneration and Allowances Act 1990 (from 15 March 2012 no payments were made from this special appropriation).
These special appropriations with statutory conditions for payment, represented total expenditure of $60,655,000 in 2014 (2013: $59,323,000).
In order to reduce the risks of non-compliance to an acceptably low level:
- changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.
- systems and procedural changes have been reviewed for the Remuneration Tribunal Act 1973.
Reviews conducted by drawing agencies identified:
- No payments (2013: One payment) were made without legal authority in contravention of section 83 of the Constitution for payments reported under the Remuneration Tribunal Act 1973.
Of the total amount paid in contravention of section 83 identified in (a) above:
- No amounts (2013: $3,278) were incorrectly paid; and
- No amounts (2013: $3,278) were recovered or offset against a later payment.
Appropriations identified as subject to conditions | Expenditure in 2014 $'000 |
Review complete? | Breaches identified to 30 June 2014 | Potential breaches to date yet to be resolved | Remedial action taken | ||||
---|---|---|---|---|---|---|---|---|---|
Special Appropriations | Yes/No | Number | Total $'000 | Incorrect $'000 | Recovered/off set As at 30 June 2014 $'000 |
Yes/No | Indicative extent | ||
Remuneration Tribunal Act 1973 | 60,655 | Yes | - | - | - | - | No | - | Legislative change enacted on 28 May 2013. |
Appropriations identified as subject to conditions | Expenditure in 2014 $'000 |
Review complete? | Breaches identified to 30 June 2014 | Potential breaches to date yet to be resolved | Remedial action taken | ||||
---|---|---|---|---|---|---|---|---|---|
Special Appropriations | Yes/No | Number | Total $'000 | Incorrect $'000 | Recovered/off set As at 30 June 2014 $'000 |
Yes/No | Indicative extent | ||
Remuneration Tribunal Act 1973 | 59,323 | Yes | 1 | 3 | 3 | 3 | No | - | Legislative change enacted on 28 May 2013. |
Note 22: Special Accounts
The APSC has no special accounts (2013: nil).
Note 23: Compensation and Debt Relief
2014 $ | 2013 $ | |
---|---|---|
No ‘Act of Grace’ expenses were expended during the reporting period (2013: no expenses) | - | - |
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: no waivers | - | - |
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2013: no payments) | - | - |
No ex-gratia payments were provided for during the reporting period (2013: no payments) | - | - |
No payments were provided in special circumstances relating to APS employment under s73 of the Public Service Act 1999 (PS Act) during the reporting period (2013: no payments) | - | - |
2014 $ | 2013 $ | |
---|---|---|
No ‘Act of Grace’ expenses were expended during the reporting period (2013: no expenses) | - | - |
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: no waivers | - | - |
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2013: no payments) | - | - |
No ex-gratia payments were provided for during the reporting period (2013: no payments) | - | - |
No payments were provided in special circumstances relating to APS employment under s73 of the Public Service Act 1999 (PS Act) during the reporting period (2013: no payments) | - | - |
Note 24: Reporting of Outcomes
Note 24a: Net cost of Outcome delivery
Outcome 1 | ||
---|---|---|
2014 $'000 |
2013 $'000 |
|
Departmental - Expenses | 48,480 | 51,815 |
Departmental - Own-source income | 26,028 | 29,042 |
Administered - Expenses | 60,655 | 59,323 |
Net cost of outcome delivery | 83,107 | 82,096 |
Outcome 1 is described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget outcome.
Note 24b: Major classes of Departmental expense, income, assets and liabilities by outcome
As the APSC only has one outcome, major classes of departmental assets and liabilities for Outcome 1 are as per the statement of financial position and major classes of departmental expenses and income for Outcome 1 are as per the statement of comprehensive income.
Note 24c: Major classes of Administered expense, income, assets and liabilities by outcome
Administered expenses for Outcome 1 are as per the schedule of expenses administered on behalf of Government.
Note 25: Net cash appropriation arrangements
2014 $'000 |
2014 $'000 |
|
---|---|---|
Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations 1 | 169 | 1,165 |
Plus: depreciation/amortisation expenses previously funded through revenue appropriation | (734 | (737) |
Total comprehensive income/(loss) - as per Statement of Comprehensive Income | (565) | 428 |
- From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.