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Financial statements

APSC Statement of Comprehensive Income for the period ended 30 June 2014
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

APSC Statement of Financial Position (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

APSC Statement of Changes in Equity (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

APSC Cash Flow Statement (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

APSC Schedule of Commitments (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

APSC Schedule of Commitments (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

APSC Administered Schedule of Comprehensive Income (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

APSC 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

APSC Administered Cash Flow Statement (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 depreciation rates for 2014 and 2013
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 (Note 3a)
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
Suppliers - Goods and services supplied (Note 3b)
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
Suppliers - Goods supplied in connection with (Note 3b)
Goods supplied in connection with 2014

$'000
2013

$'000
Related parties 3 9
External parties 359 463
Total goods supplied 362 472
Suppliers - Services rendered in connection with (Note 3b)
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
Suppliers - Other suppliers (Note 3b)
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 and amortisation - Depreciation (Note 3c)
Depreciation 2014

$'000
2013

$'000
Property, plant and equipment 380 471
Buildings 402 435
Total depreciation 782 906
Depreciation and amortisation - Amortisation (Note 3c)
Amortisation 2014

$'000
2013

$'000
Intangibles 301 283
Total amortisation 301 283
Total depreciation and amortisation 1,083 1,189
Finance costs - Unwinding of discount (Note 3d)
Finance costs 2014

$'000
2013

$'000
Unwinding of discount 19 19
Total finance costs 19 19
Finance costs - Losses from asset sales (Note 3d)
Buildings 2014

$'000
2013

$'000
Proceeds from sale - (50)
Carrying value of assets sold - 112
  - 62
Property, plant and equipment - Losses from asset sales (Note 3d)
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 and rendering of services (Note 4a)
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
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
Resources received free of charge 2014

$'000
2013

$'000
  42 39

Gains

Reversal of impairment losses
Reversal of impairment losses 2014

$'000
2013

$'000
  1 3

Revenue from Government

Revenue from Government (Note 4d)
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 by hierarchy for assets and liabilities in 2014
  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

Level 2 and 3 fair value measurements - valuation technique and the inputs used for assets and liabilities in 2014
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
  1. No change in valuation technique occurred during the period.
  2. Significant unobservable inputs only. Not applicable for assets or liabilities in the Level 2 category.
  3. 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.
  4. 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 cash equivalents - Cash and cash equivalents (Note 6a)
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 - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
Appropriations receivables 2014

$'000
2013

$'000
Existing programmes 21,362 21,324
Total appropriations receivables 21,362 21,324
Other receivables - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
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 - Trade and other receivables (Note 6b)
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 - Land and buildings (Note 7a)
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 - Property, plant and equipment (Note 7b)
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

Reconciliation of the opening and closing balances of property, plant and equipment for 2014 - Reconciliation of the opening and closing balances of property, plant and equipment (Note 7c)
  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
Reconciliation of the opening and closing balances of property, plant and equipment for 2013 - Reconciliation of the opening and closing balances of property, plant and equipment (Note 7c)
  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 - Intangibles (Note 7d)
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 - Intangibles (Note 7d)
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

Intellectual property - Reconciliation of the opening and closing balances of intangibles for 2014 (Note 7e)
  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
Intellectual property - Reconciliation of the opening and closing balances of intangibles for 2013 (Note 7e)
  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

Inventories held for distribution - Inventories (Note 7f)
  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

Prepayments paid
  2014

$'000
2013

$'000
Prepayments paid 522 992
Prepayments paid expected to be recovered - Prepayments paid (Note 7g)
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

Suppliers (Note 8a)
  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 - Suppliers (Note 8a)
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 - Suppliers (Note 8a)
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 - Prepayments received (Note 8b)
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 (Note 8c)
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 (Note 8d)
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

Employee provisions (Note 9a)
  2014

$'000
2013

$'000
Leave 6,456 6,590
Superannuation 531 541
Total employee provisions 6,987 7,131
Employee provisions expected to be settled - Employee provisions (Note 9a)
  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
Provision for restoration obligations (Note 9b)
  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
Provision for restoration obligations expected to be settled - Provision for restoration obligations (Note 9b)
  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

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement - Cash Flow Reconciliation (Note 11)
Cash and cash equivalents as per: 2014

$'000
2013

$'000
Cash flow statement 490 575
Statement of financial position 490 575
Discrepancy - -
Reconciliation of net cost of services to net cash from operating activities - Cash Flow Reconciliation (Note 11)
  2014

$'000
2013

$'000
Net cost of services (22,452) (22,773)
Revenue from Government 22,006 23,201
Adjustments for non-cash items - Cash Flow Reconciliation (Note 11)
  2014

$'000
2013

$'000
Depreciation and amortisation 1,083 1,189
Loss on sale of assets 24 167
Changes in assets/liabilities - Cash Flow Reconciliation (Note 11)
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)
Changes in assets/liabilities - Cash Flow Reconciliation (Note 11)
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

Senior Executive Remuneration - Senior Executive remuneration expenses for the reporting period (Note 13a)
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
Senior Executive Remuneration - Senior Executive remuneration expenses for the reporting period (Note 13a)
Post employment benefits 2014

$'000
2013

$'000
Superannuation 439,468 461,830
Total post employment benefits 439,468 461,830
Senior Executive Remuneration - Senior Executive remuneration expenses for the reporting period (Note 13a)
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
Senior Executive Remuneration - Senior Executive remuneration expenses for the reporting period (Note 13a)
Termination benefits 2014

$'000
2013

$'000
Voluntary redundancy payments - -
Total other long-term benefits - -
Senior Executive Remuneration - Senior Executive remuneration expenses for the reporting period (Note 13a)
  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 paid to substantive Senior Executives during the reporting period 2014 (Note 13b)
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 paid to substantive Senior Executives during the reporting period 2013 (Note 13b)
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:

  1. 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.
  2. ‘Reportable salary’ includes the following:
    1. gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column)
    2. reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits)
    3. reportable employer superannuation contributions and
    4. exempt foreign employment income
  3. 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.
  4. ‘Reportable allowances’ are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
  5. ‘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

Financial statement audit services were provided free of charge to the APSC by the Australian National Audit Office (ANAO)
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

Financial Assets - Categories of financial instruments (Note 15a)
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 - Categories of financial instruments (Note 15a)
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 - Categories of financial instruments (Note 15a)
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

Financial Assets - Net gains or losses on financial assets (Note 15b)
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.

Credit quality of financial instruments not past due or individually determined as impaired - Credit risk (Note 15e)
  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
Ageing of financial assets that are past due but not impaired - Credit risk (Note 15e)
  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

Financial assets - Credit risk (Note 15e)
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.

Maturities for non-derivative financial liabilities in 2014 - Liquidity risk (Note 15f)
  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
Maturities for non-derivative financial liabilities in 2013 - Liquidity risk (Note 15f)
  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 Reconciliation (Note 16)
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 (Note 17a)
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

Annual Appropriation 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:

  1. 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

Annual Appropriation 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:

  1. 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’)

Departmental Capital Budgets (‘Recoverable GST exclusive’) for 2014
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:

  1. 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.
  2. 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.
  3. 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.
Departmental Capital Budgets (‘Recoverable GST exclusive’) for 2013
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:

  1. 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.
  2. 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.
  3. 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’)

Unspent Departmental Annual Appropriations (‘Recoverable GST exclusive’) (Note 20c)
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')

Appropriations Applied ('Recoverable GST exclusive') (Note 20d)
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:

  1. (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.
  2. (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:

  1. changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.
  2. systems and procedural changes have been reviewed for the Remuneration Tribunal Act 1973.

Reviews conducted by drawing agencies identified:

  1. 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.
Table A – Summary of conditions, breaches and remedial action 2014
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.
Table A – Summary of conditions, breaches and remedial action 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

Compensation and debt relief - Departmental
  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) - -
Compensation and debt relief - Administered
  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

Net cost of Outcome delivery (Note 24a)
  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

Net cash appropriations arrangements (Note 25)
  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
  1. 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.