2008-09 · 6 Ministerial Portfolio Arrangements Since the reporting date, amendments to the Administrative Arrangements Order were made. This schedule of Ministerial Portfolio Arrangements

Treasurer’s Annual Financial Report2008-09

Treasurer’s Annual Financial Report 2008-09

2

2008-09 Treasurer’s Annual Financial ReportThe financial statements and supplementary tables presented in the 2008-09 Treasurer’s Annual Financial Report (the Report) have been prepared in accordance with Australian Accounting Standards and are consistent with the 2008-09 revised estimate included in the May 2009 Budget.

A set of Uniform Presentation Framework (UPF) financial statements (Operating Statement, Balance Sheet and Cash Flow Statement) has been provided for each sector. These sectors are: general government, public non financial corporations, non financial public sector, public financial corporations and total public sector. The Report is presented in two sections: one audited and the other unaudited.

The Report complies with the Australian Accounting Standards, in particular AASB 1049 Whole of Government and General Government Sector Financial Reporting and the UPF and is consistent with the requirements of the Fiscal Integrity and Transparency Act (FITA) and Financial Management Act (FMA).

The audited section of the Report includes a set of financial statements, by sector, with notes provided for the total public sector and the general government sector.

Comparative data is provided for 2007-08 in both the financial statements and notes to the financial statements.

The unaudited section includes a summary table outlining appropriation changes through the year, by agency. Following this is an explanation of significant variations in appropriation for each general government agency, as well as an explanation of significant variations between the latest estimate and actual result for both operating revenue and expenses. The latter is provided for both general government agencies and government business divisions.

In this section additional tables required by the UPF are also provided relating to: taxes; grants revenue; grant expense; dividend and income tax equivalents; purchases of non financial assets for the general government sector; and Loan Council Allocation for 2008-09 for the non financial public sector.

Audited Section

Unaudited Section

3Contents

ContentsMinisterial Portfolio Arrangements 5Overview 7

Treasurer’s Annual Financial Statement (Audited) 23Auditor-Generals Report 25Financial Statements

General Government Sector Operating Statement 27General Government Sector Balance Sheet 28General Government Sector Cash Flow Statement 29Public Non Financial Corporation Sector Operating Statement 30Public Non Financial Corporation Sector Balance Sheet 31Public Non Financial Corporation Sector Cash Flow Statement 32Non Financial Public Sector Operating Statement 33Non Financial Public Sector Balance Sheet 34Non Financial Public Sector Cash Flow Statement 35Public Financial Corporation Sector Operating Statement 36Public Financial Corporation Sector Balance Sheet 37Public Financial Corporation Sector Cash Flow Statement 38Total Public Sector Operating Statement 39Total Public Sector Balance Sheet 40Total Public Sector Cash Flow Statement 41

Notes to the Financial Statements 43Note 1: Statement of Significant Accounting Policies 45Note 2: Other Economic Flows 64Note 3: GFS GAAP Reconciliation 65Note 4: Taxation Revenue 66Note 5: Current Grants 66Note 6: Capital Grants 66Note 7: Sales of Goods and Services 66Note 8: Dividend and Income Tax Equivalent Income 66Note 9: Other Revenue 67Note 10: Other Operating Expenses 67Note 11: Current Grants 67Note 12: Capital Grants 67Note 13: Subsidies and Personal Benefit Payments 67Note 14: Cash and Deposits 67Note 15: Advances Paid 68Note 16: Investments, Loans and Placements 69Note 17: Receivables 69Note 18: Equity Investments – Other 70Note 19: Inventories 70Note 20: Property Plant and Equipment 71Note 21: Investment Property 74Note 22: Intangible Assets 74Note 23: Assets Held for Sale 75Note 24: Biological Assets 75Note 25: Other Non Financial Assets 75Note 26: Deposits Held 76Note 27: Advances Received 76Note 28: Borrowings 77Note 29: Superannuation Liabilities 77Note 30: Other Employee Benefits 81Note 31: Payables 81


4 Contents

Note 32: Other Liabilities 82Note 33: Equity 83Note 34: Commitments 84Note 35: Contingent Assets and Liabilities 85Note 36: Cash Flow Reconciliation 90Note 37: Financial Instruments and Risk Management 91Note 38: Events Subsequent to Reporting Date 99Note 39: Remuneration of Auditors 100Note 40: Write-Offs, Postponements, Waivers, Ex Gratia Payments 100

and Gifts – Total Public Sector Note 41: Details of Controlled Entities at Reporting Date 101Note 42: General Government Sector Budgetary Information 102Note 43: Supplementary Tables (Functional Information) 108Note 44: Elimination Tables 112Note 45: Glossary 120

Additional Financial Information (Unaudited) 129Variations to Appropriations Authorised During the Year 133Summary Agency/Government Business Division Financial Information

Auditor-General’s Office 138Northern Territory Electoral Commission 139Ombudsman’s Office 140Department of the Chief Minister 141Department of the Legislative Assembly 142Northern Territory Police, Fire and Emergency Services 143Department of Education and Training 144Northern Territory Treasury 145Northern Territory Treasury Corporation 146Department of Justice 147Department of Planning and Infrastructure 148Darwin Bus Service 149Construction Division 150Darwin Port Corporation 151Department of Business and Employment 152Data Centre Services 153Government Printing Office 154NT Fleet 155Land Development Corporation 156Tourism NT 157Territory Discoveries 158Department of Health and Families 159Department of Regional Development, Primary Industry, Fisheries and Resources 160Department of Local Government and Housing 161NT Home Ownership 162Office of the Commissioner for Public Employment 163Aboriginal Areas Protection Authority 164Department of Natural Resources, Environment, the Arts and Sport 165Territory Wildlife Park 166

Uniform Presentation Framework Supplementary Tables 167General Government Sector Taxes 167General Government Sector Grant Revenue 167General Government Sector Grant Expense 168General Government Sector Dividend and Income Tax Equivalent Income 168General Government Sector Purchases of Non Financial Assets by Function 169Loan Council Allocation 169

Acronyms 171

5Ministerial Portfolio Arrangements

Ministerial Portfolio ArrangementsThis schedule of Ministerial Portfolio Arrangements details the ministerial responsibilities for individual areas of Government as at 30 June 2009 (drawn from the Administrative Arrangements Order of 9 February 2009).

Ministerial Portfolio Arrangements as at 30 June 2009Minister Portfolio

The Hon. P. R. Henderson, MLA Chief Minister

Minister for Police, Fire and Emergency Services

Minister for Major Projects, Employment and Economic Development

Minister for Education and Training

Minister for Climate Change

Minister for Territory-Federal Relations

Minister for Multicultural Affairs

The Hon. D. P. Lawrie, MLA Treasurer

Minister for Justice and Attorney-General

Minister for Planning and Lands

Minister for Infrastructure

Dr C. B. Burns, MLA Minister for Business

Minister for Tourism

Minister for Trade

Minister for Asian Relations

Minister for Defence Support

The Hon. K. Vatskalis, MLA Minister for Health

Minister for Primary Industry, Fisheries and Resources

Minister for Racing, Gaming and Licensing

Minister for Alcohol Policy

The Hon. D. R. Knight, MLA Minister for Housing

Minister for Local Government

Minister for Essential Services

Minister for Public Employment

The Hon. M. B. A McCarthy, MLA Minister for Children and Families

Minister for Child Protection

Minister for Statehood

Minister for Senior Territorians

Minister for Young Territorians

Minister for Women’s Policy

Minister assisting the Chief Minister on Multicultural Affairs

The Hon. A. Anderson, MLA Minister for Natural Resources, Environment and Heritage

Minister for Parks and Wildlife

Minister for Arts and Museums

Minister for Indigenous Policy

Mr K. R. Hampton, MLA Minister for Regional Development

Minister for Sport and Recreation

Minister for Information, Communications and Technology Policy

Minister assisting the Chief Minister on Major Projects and Economic Development

Minister for Central AustraliaThe Hon. G. F. McCarthy, MLA Minister for Transport

Minister for Correctional Services


6 Ministerial Portfolio Arrangements

Since the reporting date, amendments to the Administrative Arrangements Order were made. This schedule of Ministerial Portfolio Arrangements details the ministerial responsibilities for individual areas of Government as at August 2009 (drawn from the Administrative Arrangements Order of 6 August 2009).

Ministerial Portfolio Arrangements as at August 2009Minister Portfolio

The Hon. P. R. Henderson, MLA Chief Minister

Minister for Police, Fire and Emergency Services

Minister for Major Projects, Employment and Economic Development

Minister for Education and Training

Minister for Climate Change

Minister for Territory-Federal Relations

Minister for Multicultural Affairs

The Hon. D. P. Lawrie, MLA Treasurer

Minister for Justice and Attorney-General

Minister for Planning and Lands

Minister for Infrastructure

Dr C. B. Burns, MLA Minister for Business

Minister for Tourism

Minister for Trade

Minister for Asian Relations

Minister for Defence Support

The Hon. K. Vatskalis, MLA Minister for Health

Minister for Primary Industry, Fisheries and Resources

Minister for Racing, Gaming and Licensing

Minister for Alcohol Policy

The Hon. D. R. Knight, MLA Minister for Housing

Minister for Local Government

Minister for Essential Services

Minister for Public Employment

The Hon. M. B. A McCarthy, MLA Minister for Children and Families

Minister for Child Protection

Minister for Statehood

Minister for Women’s Policy

Minister for Indigenous Policy

The Hon. K. R. Hampton, MLA Minister for Regional Development

Minister for Sport and Recreation

Minister for Information, Communications and Technology Policy

Minister assisting the Chief Minister on Major Projects and Economic Development

Minister for Central Australia

Minister for Natural Resources, Environment and Heritage

Minister for Parks and Wildlife

The Hon. G. F. McCarthy, MLA Minister for Transport

Minister for Correctional Services

Minister for Arts and Museums

Minister for Senior Territorians

Minister for Young Territorians

Minister assisting the Chief Minister on Multicultural Affairs and Education

7Overview

OverviewThe Treasurer’s Annual Financial Report (the Report) presents the Northern Territory Government’s financial results for 2008-09 as required by the Fiscal Integrity and Transparency Act (FITA). Consistent with 2007-08, the 2008-09 financial statements are presented in accordance with Australian Accounting Standards, in particular AASB 1049 – Whole of Government and General Government Sector Financial Reporting.

The fiscal outlook for the Territory changed dramatically during the 2008-09 year due to the effect of the global financial crisis (GFC). When the Budget was introduced in May 2008, the cash outcome for 2008-09 was estimated to be a small surplus of $9 million. In the May 2009 Budget, the cash outcome estimated for 2008-09 was a small deficit of $17 million, $26 million worse than original projections. While this was a comparatively small change, it was as a result of a number of large offsetting adjustments most of which came about because of the GFC. The most significant of the changes was a reduction in GST revenue of $158 million as a result of the decline in national GST revenue due to reduced consumption expenditure in Australia. This is the first reduction in GST revenue collections since its introduction and has had a severe effect on the revenues of all state jurisdictions. For the Territory, the growth in GST revenue between 2007-08 and 2008-09 was just under 2 per cent, compared to growth of almost 10 per cent the previous year.

However, the decrease in GST revenue was offset by a substantial increase in mining royalties of $135 million due to higher contracted commodity prices and increases in volume. There was also a large increase in tied funding from the Commonwealth of $366 million during 2008-09 due to improved funding arrangements following the Council of Australian Governments (COAG) reforms and from the Commonwealth’s stimulus funding to support the economy during the GFC.

The Territory Government’s commitment to support jobs and the local economy to combat the effects of the GFC resulted in increased investment in both infrastructure and service delivery programs during 2008-09 and for the following two years. In May 2008, estimated total infrastructure payments were $870 million, rising to $885 million by May 2009, with an actual outcome of $911 million. This $41 million increase in infrastructure spending is high, particularly given that funding for the additional investment did not occur until late in the financial year.

The final outcome for 2008-09 was an improvement on both the original (May 2008) and estimated Budget (May 2009) due to further payments totalling $123 million from the Commonwealth made at the end of the financial year and will not be spent until 2009-10 and future years. This additional revenue is offset by Territory commitments brought forward from future years to minimise, as far as possible, timing related differences in 2008-09 and future years. The net result of these timing differences is a cash surplus of $136 million in 2008-09 but a corresponding worsening position in future years. The effect of these timing differences will be included in the 2009-10 Mid-Year Report.

Fiscal Position


8 Overview

Due to the effect of the GFC on the Territory’s financial position and in line with the FITA’s requirements, the Government significantly revised the Territory’s fiscal strategy in the 2009-10 Budget. The main changes to the fiscal strategy were to reflect the significant fall of GST revenue on the Territory’s finances and to incorporate the Government’s commitment to ensure infrastructure investment continued at high levels to maintain jobs and support the economy in an uncertain economic environment. In the medium term the strategy commits to return the Budget to surplus by limiting expenditure growth to less than revenue growth.

This Report includes an assessment of the financial performance against the Territory’s revised fiscal strategy. The key outcomes are:

cash surplus achieved, due to net timing differences largely of •Commonwealth funds offset by bringing forward some existing Territory commitments;

operating surplus maintained providing a level of capacity to invest in •infrastructure;

capital spending of $676 million for the general government sector, •a $121 million increase from 2007-08 and 3.5 times the depreciation expense;

taxation collections well below the average of the states; and•

net debt to revenue ratio decreased from 23 per cent in 2007-08 to •20 per cent in 2008-09.

Table 1 sets out the fiscal aggregates for 2008-09, compared to the 2007-08 outcome, the 2008-09 original Budget (May 2008) and the final estimate (May 2009).

Table 1: Key Fiscal Aggregates – Cash Flow and Operating Statements

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget

$M $M $M $M $M

GENERAL GOVERNMENT

Cash surplus/deficit 211 9 - 17 136 127

Net operating balance 340 111 100 187 76

Fiscal balance 198 - 81 - 116 - 22 59

Source: Northern Territory Treasury

The outcome for the general government aggregates shown in Table 1 is an improvement on both the original 2008-09 Budget and the May 2009 estimate. The cash outcome is a surplus of $136 million, an improvement of $127 million from the May 2008 Budget. The improvement in the cash outcome is largely due to timing differences associated with additional tied Commonwealth funding and Territory commitments, with increased mining royalties offset by the decrease in GST revenue. These changes also resulted in improvements in the net operating balance and fiscal balance of $76 million and $59 million respectively since the 2008 Budget.

9Overview

Table 2: Key Fiscal Aggregates – Balance Sheet

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Outcome

$M $M $M $M $M

GENERAL GOVERNMENT SECTOR

Net debt 887 1 045 969 837 - 50

Net debt to revenue (%) 23 28 24 20 - 3

Net financial liabilities 3 381 3 832 4 364 3 749 368

Net financial liabilities to revenue (%) 87 101 108 90 3


Consistent with the operating and cash aggregates, net debt from the general government sector has improved since the 2007-08 outcome, the 2008-09 original Budget and 2008-09 estimate, due to the effect of the cash surpluses in 2007-08 and 2008-09. In regards to net financial liabilities, the 2008-09 outcome is worse than 2007-08 due to the methodology in the 10-year bond rate required to be used to estimate the present value of long-term superannuation liabilities which requires the use of the 10-year find rate at 30 June of the reporting year. The 10-year bond rate at 30 June 2009 was significantly lower than at 30 June 2008 due to the effects of the GFC on interest rates and results in a significant increase in the liability. Net financial liabilities have also been affected by unrealised losses on the Conditions of Service Reserve (COSR) as a result of the effect of the GFC on investments. These notional losses had reduced markedly by 31 August 2009.

The cash outcome ($136 million), operating balance ($187 million) and fiscal balance (-$22 million) results for 2008-09 represent a significant improvement on both the original Budget and the final May 2009 estimate. The cash surplus for 2008-09 is prodominantly due to timing differences and will result in a worsening position in future years. The effect of this in 2009-10 and future years, together with other updated revenue and expenditure estimates will be reflected in the 2009-10 Mid-Year Report.

Outcome for 2008-09


10 Overview

General Government – Operating and Cash Flow Statements Table 3 presents the key components of the operating and cash flow statements for the 2007-08 outcome, original May 2008 Budget, final 2008-09 estimate and 2008-09 outcome.

Table 3: Key Operating Aggregates – General Government

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget

$M $M $M $M $M

OPERATING STATEMENT

Revenue 3 869 3 778 4 051 4 187 409

less: Expenses 3 529 3 667 3 951 4 000 332

Net operating balance 340 111 100 187 76

less: Net capital spending 143 192 216 209 17

Fiscal balance 198 - 81 - 116 - 22 59

CASH FLOW STATEMENT

Operating receipts 3 821 3 784 4 086 4 232 449

less: Operating payments 3 222 3 399 3 662 3 666 266

Net capital spending 292 375 414 407 32

Assets acquired under finance leases 33

Contribution for infrastructure/superannuation 64 27 24 24

Cash surplus/deficit 211 9 - 17 136 126


The operating result was an improvement of $76 million from the original 2008-09 Budget and $87 million from the estimate published in the 2009-10 Budget. Although an improvement, it was the result of a number of offsetting variations. The key variations are:

decrease in GST revenue of $158 million due to the GFC affecting •consumption expenditure in Australia and resulting in a reduced national GST pool available for distribution to the states and territories;

additional tied Commonwealth funding of $366 million since May 2008, •one-third of which was received in June 2009;

increased mining royalties of $135 million due to increases in both •price and volume of commodities produced;

increased expenditure of $162 million as a result of higher •Commonwealth funding arrangements; and

increased spending of $124 million as a result of policy decisions, •including a number of one-off commitments brought forward from 2009-10 to offset the effect of timing differences associated with Commonwealth funds that were received in 2008-09. This included a $20 million capital contribution for Power and Water Corporation (PWC) to support its significant infrastructure program, $33 million for the Palmerston sporting complex to meet a 2008 election commitment, $17 million for Indigenous Essential Services (IES) and $10 million for Thoroughbred Racing NT.

11Overview

A significant portion of the tied Commonwealth funding, $123 million, was received in June 2009 and was primarily made up of $60 million for Municipal and Essential Services to be spent over the next three years and $36 million for the development and implementation of the Alice Springs Transformation Plan expected to be spent in the next two years. The expenditure of these funds in 2009-10 and future years will cause a worsening effect on those years’ outcomes due to the timing difference between the receipt of the Commonwealth funding and its expenditure.

The fiscal balance has improved by $59 million and $94 million from the original Budget and May 2009 estimate respectively. The improvement in the cash outcome was $127 million compared with the original Budget and $153 million compared with the May 2009 estimate. The improvement in the cash outcome was higher than that for the operating result and fiscal balance due to usual timing effects of accrual and cash items and lower superannuation benefit payments as a result of fewer retirements than expected, which is likely to be due to uncertainty as a result of the GFC.

The following table summarises the key movements in the cash outcome and fiscal balance for 2008-09. The 2008-09 Budget has been restated in accordance with AASB 1049, with the material difference being a change in treatment of the reinvestment returns received by the Conditions of Service Reserve. In addition, during 2008-09 the former Territory Housing was transfered from a government business division into the general government agency of Local Government and Housing. This transfer did not have in any effect on Budget outcomes.


12 Overview

2008-09

Accrual Cash

$M $M

2008-09 BUDGET - 50.7 9.3

REVENUE/RECEIPTS

Revenue/receipts – non policy

Taxation 4.8 13.4

GST revenue - 158.4 - 158.4

Commonwealth revenue 366.4 390.4

Interest income 3.4 8.7

Mining royalties 135.4 135.4

Agency own source revenue 47.9 42.2

Income tax equivalents and dividends - 20.9 - 7.0

Total revenue/receipts – non policy 378.6 424.7

TOTAL REVENUE/RECEIPTS 378.6 424.7

OPERATING EXPENSES/PAYMENTS

Expenses/payments – policy

New initiatives 35.7 35.7

Election commitments 6.4 6.4

Brought forward one-off commitments 81.5 81.5

Total expenses/payments – policy 123.6 123.6

Expenses/payments – non policy

Timing of expenditure between years 57.8 39.3

New/expanded Commonwealth funded programs 162.1 162.1

Employee entitlements 16.3 - 13.9

Depreciation 12.4

Treasurer’s Advance - 40.0 - 40.0

Other 0.2 - 4.7

Total expenses/payments – non policy 208.8 142.8

TOTAL OPERATING EXPENSES/PAYMENTS 332.4 266.4

Net capital payments

New initiatives 0.9 0.9

Transfer of capital payments between years 4.6 4.6

New/expanded Commonwealth funded programs 8.6 8.6

Timing of sales of assets between years 18.7 18.7

Depreciation - 12.4

Other - 3.1 - 0.8

TOTAL NET CAPITAL PAYMENTS 17.3 32.0

TOTAL EXPENSES/PAYMENTS 349.7 298.4

TOTAL VARIATION 28.9 126.3

2008-09 OUTCOME - 21.8 135.6

Table 4: Variations to the Operating and Cash Flow Statements since

May 2008

13Overview

Operating revenue for 2008-09 was $378.6 million higher than that projected in the May 2008 Budget but cash receipts were $424.7 million higher during the same period. The main difference between the cash and accrual variation is that the revenue for some Specific Purpose Payments (SPPs) had been accrued in 2007-08 (therefore shown as operating revenue in that year) but the cash associated with those agreements was not received until 2008-09.

The key non-discretionary revenue variations during 2008-09 were:

increased taxation revenue of $4.8 million comprising higher payroll •tax revenue, stamp duty on conveyances and insurance, partly offset by lower gambling taxes. Taxation receipts have increased by $13.4 million with the difference due to stamp duty being received, but not yet assessed, and therefore not recognised as revenue in the operating statement;

reduction in GST revenue of $158.4 million due to the GFC’s effect •on consumption expenditure resulting in reduced national GST collections;

increased SPP and National Partnership (NP) revenue of $366.4 million •largely as a result of increased funding for housing, health, education and roads; cash receipts show an increase of $390.4 million with the additional $24 million due to SPPs for which cash was received in 2008-09 but revenue recognised in 2007-08;

interest revenue increased by $3.4 million and interest receipts by •$8.7 million due to higher than expected cash balances;

higher mining royalty revenue of $135.4 million resulting from increases •in both price and volume of commodities produced;

increased agency revenue of $47.9 million across all agencies •including hospital cross border and other patient revenue of $10.2 million, rental revenue of $7 million as a result of the new arrangements for remote public housing, with the balance comprising small increases across a number of agencies. These increases generally have corresponding expenditure commitments; and

dividend and income tax equivalents less than budgeted by $21 million •in revenue and $7 million in receipts due to lower than anticipated income tax equivalents from the PWC and Territory Insurance Office.

The increase in general government operating expenses and cash payments during 2008-09 was $332.4 million and $266.4 million respectively. The main policy-related expenditure variations were:

Funding of $42.1 million provided for new and expanded initiatives and •election commitments including:

funding of $6.4 million for election commitments; –

additional funding related to the provision of IES to remote –communities of $11.8 million;

funding provided for the support of the Darwin aviation hub of –$5 million;

contribution towards the Fibre Optic Project in Arnhem Land (Jabiru –to Nhulunbuy) of $4 million; and


14 Overview

other new and expanded initiatives across areas of health, –education and police.

In recognition of the significant effect on future years of Commonwealth •funds received in 2008-09, a number of one-off commitments totalling $81.5 million were brought forward from to 2008-09, to ease the timing related worsening effect on 2009-10 and future years, including:

an additional contribution of $20 million towards PWC’s ongoing, –significant infrastructure program;

one-off grant of $33 million to Charles Darwin University for the –Palmerston Sporting complex to meet a 2008 election commitment;

additional one-off funding related to the provision of IES to remote –communities of $17 million including for the sewerage system in Borroloola; and

funding to Thoroughbred Racing NT of $10 million in line with agreed –arrangements.

The key non-discretionary variations were:

timing of expenditure between years of $57.8 million in expenses •and $39.3 million in payments largely related to the delivery of Commonwealth funded programs for which funding was received in 2007-08;

increase in expenditure of $162 million associated with the additional •Commonwealth SPP and NP funding received during 2008-09; and

increase in accrued employee entitlements of $16.3 million, in part, as •a result of the application of the 10-year bond rate at 30 June 2009 which was lower than that used in the May 2008 Budget and cash payments decreasing by $13.9 million due to lower superannuation benefit payments as a result of fewer than anticipated retirements.

In addition to these expense/payment variations there have been some minor variations to net capital spending, including:

policy decisions affecting capital payments of $0.9 million;•

transfer of capital payments from previous years largely related to the •timing of delivery of Commonwealth funded programs of $13.2 million; and

revised timing of sale of asset estimates of $18.7 million largely related •to longer times to finalise contractual arrangements associated with some land sales.

15Overview

General Government Sector – Balance Sheet

Table 5: Key Asset and Liability Aggregates

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Outcome

$M $M $M $M $M

GENERAL GOVERNMENT SECTOR

Total assets 8 086 7 975 7 901 9 845 1 759

less: total liabilities 4 878 5 029 5 383 5 094 216

Net worth 3 208 2 946 2 518 4 751 1 543

Net debt 887 1 045 969 837 - 50

Net debt as a percentage of total revenue (%) 23 28 24 20 - 3

Net financial liabilities 3 381 3 832 4 364 3 749 369



Table 5 presents the key asset and liability aggregates for the general government sector for the 2007-08 outcome and 2008-09 original Budget, final estimate and outcome.

Net worth in 2008-09 is $4751 million, an improvement of $1543 million from the 2007-08 outcome, as a result of an increase in asset valuation of $1759 million, slightly offset by an increase in liabilities of $216 million. The majority of the increase in assets is due to revaluations of roads, bridges and housing assets in line with updated methodology and consistent with state practice as well as the increased asset base resulting from increases in the Territory’s capital works program over recent years. In addition there has been an increase in cash and investment balances due to the cash surpluses achieved in both 2007-08 and 2008-09, which has also contributed to the increased asset base and net worth. The increase in total liabilities of $216 million is mainly due to the increase in the Territory’s superannuation liability as a result of the difference between the discount factor at 30 June 2008 (6.5 per cent) compared to 30 June 2009 (5.6 per cent) used to estimate the net present value of future liabilities.

Net debt for 2008-09 is $837 million, $50 million lower than that recorded in the 2007-08 outcome. The improvement in net debt is largely the result of the flow-on effect of the cash surplus achieved in 2008-09. The net debt to revenue ratio has also reduced to 20 per cent, a slight improvement from the 23 per cent achieved in 2007-08 and a significant improvement from the 61 per cent recorded in the Territory’s first year of accrual accounting, 2002-03.

As discussed in the 2007-08 Treasurer’s Annual Financial Report (TAFR) and the 2009-10 Budget, AASB 1049 has resulted in governments being required to value their superannuation liability using the 10-year government bond rate in place at the time of reporting. Until 2007-08, the 10-year bond rate had been relatively stable. However, with the advent of the credit crisis in 2007-08 and then the GFC in 2008-09, the bond rate has fluctuated significantly between reporting periods and has resulted in large changes in the estimate of the present value of the Territory’s


16 Overview

superannuation liability.

Largely as a result of the effects of the bond rate changes, net financial liabilities increased from the 2007-08 outcome by $369 million. Of this, $242 million is the direct effect of the lower bond rate on the Territory’s superannuation liabilities, and $82 million is due to the revaluation of the COSR for 2008-09, incorporating unrealised losses to 30 June 2009. The net financial liabilities to revenue ratio in 2008-09 was 90 per cent, a slight increase from the 87 per cent achieved in 2007-08.

The fiscal strategy outlines the Government’s fiscal objectives and is best measured over time rather than at particular points of time. Due to the effect of the GFC on the Territory’s future revenues and the need to maintain investment in infrastructure, the Territory’s fiscal strategy was substantially revised in the 2009-10 Budget. Such revisions are required by the FITA in times of significant change to the economic or fiscal environment so that the fiscal strategy remains contemporary. The 2008-09 outcome has been assessed against this updated fiscal strategy.

The revised fiscal strategy was developed with both a short-term and a medium-term focus. In more usual times of economic growth, an operating and a cash surplus provides the capacity to invest in infrastructure without the requirement for additional borrowings. In the short term, however, the economic downturn will result in falling revenues and this, combined with increased infrastructure spending to support Territory jobs, will result in the budget incurring cash deficits. Over the medium term, once revenues return to more usual levels, the overarching objective of returning the budget to a cash surplus as well as an operating surplus will prevail and provide the capacity to reduce Territory debt to pre-GFC levels.

This element of the fiscal strategy aims to limit growth in general government operating expenses to less than the growth in revenue, excluding tied Commonwealth revenue, over the economic cycle thereby achieving a sufficient operating balance to fund general government capital spending.

This overarching objective will ensure that during the economic downturn of falling revenues and increased infrastructure spending, cash deficits are kept to the minimum required to support growth in the local economy. Once the economy returns to more usual growth trends, the objective is to have sufficient cash surpluses to fund capital spending and provide capacity to retire debt to pre-GFC levels.

Table 6 sets out the Territory’s net operating balance and cash outcome for 2007-08 and 2008-09. The net operating balance determines whether the Government earns sufficient revenue to meet its operating activities and the cash outcome is a measure of whether total receipts within the year were sufficient to meet both operating and capital payments.

Fiscal Strategy

Sustainable Service Provision

17Overview

Table 6: Net Operating Balance and Cash Outcome

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget

General Government Sector

Net operating balance ($M) 340 111 100 187 76

Cash outcome ($M) 211 9 - 17 136 127


In 2008-09 both operating and cash surpluses were achieved. The net operating balance for 2008-09 was a $76 million improvement from the original 2008-09 Budget, and a reduction of $153 million from the 2007-08 outcome.

The 2008-09 cash surplus of $136 million was a $127 million improvement on the original budget and a decrease of $75 million from 2007-08. As with the operating result, the improvement since the May 2009 estimate is largely due to Commonwealth revenue received late in 2008-09 and increased mining royalties, though this was offset by the decline in GST revenue and timing of Territory commitments. As this improved result was largely due to net timing differences, it will result in a worsening effect for 2009-10 and future years when the additional Commonwealth revenue is spent.

Infrastructure investment is a key component of the Government’s revised fiscal strategy and is essential for the delivery of the Territory’s social and economic requirements.

During the period of economic downturn, short-term counter-cyclical increases in infrastructure spending are required to support economic recovery and sustain jobs in the Territory. During this period, infrastructure spending in the general government sector is to be at least twice depreciation expenses.

When the economy and government revenue returns to more normal levels, the strategy is to maintain infrastructure at appropriate levels to support medium-term economic growth, while trending towards a general government fiscal balance. During this period, infrastructure spending in the general government sector is to be at least equal to depreciation levels.

The outcome for 2008-09 is capital spending at 3.5 times depreciation levels as shown in Table 7.

Table 7: Capital Investment to Depreciation Ratio

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget


Total capital investment ($M) 556 610 637 676 66

Depreciation ($M) 179 183 193 196 13

Capital investment to depreciation ratio (%) 3.1 3.3 3.3 3.5 0.2Source: Northern Territory Treasury

Infrastructure for Economic and

Community Development


18 Overview

The fiscal balance includes the effect of both capital and operating transactions. Table 8 presents the general government sector’s fiscal balance for 2007-08 and 2008-09 in absolute terms and as a proportion of total revenue.

Table 8: Fiscal Balance – General Government

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget

Fiscal balance ($M) 198 - 81 - 116 - 22 59

As a proportion of total revenue (%) 5 - 2 -3 - 1 2


The general government’s fiscal balance for 2008-09 is a deficit of $22 million, a $59 million improvement on the original Budget and a $94 million improvement since the May 2009 estimate. This improved result is due to the increased surplus in operating balance, offset by higher capital spending. The fiscal balance outcome is lower than 2007-08 due to the minimal growth in GST revenue and the significant increase in infrastructure spending in 2008-09.

Table 9 shows the capital investment for the general government which comprises purchases of non financial assets (including construction and capital items) and capital grants to non government organisations. It excludes repairs and maintenance.

Table 9: Capital Investment – General Government

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Budget

$M $M $M $M $M

Purchases of non financial assets 349 447 459 449 2

Assets acquired under a finance lease 33

Capital grants 173 163 178 228 65

Total 555 610 637 676 66Source: Northern Territory Treasury

In total, capital investment is $66 million higher than that projected at the time of the original 2008-09 Budget and $121 million higher than the 2007-08 outcome. The increase is mainly a result of increased infrastructure investment in remote areas, schools and roads.

The tax strategy is to ensure that Territory taxes and charges are competitive with the average of the jurisdictions in order to promote increased levels of business activity in the Territory.

Comparisons of relative tax competitiveness are complex due to inherent differences in respective economies and taxation regimes. In order to measure and assess the competitiveness of the Territory’s tax system, the following are utilised:

taxation revenue per capita; and•

taxation effort as assessed by the Commonwealth Grants Commission.•

Taxation revenue per capita is a simple summary measure that affords some comparability with other jurisdictions. Table 10 shows that Territory

Competitive Tax Environment

19Overview

taxation collections of $1815 per capita are well below the average of the states and second lowest, after Tasmania.

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome¹

Variation

on Budget

$ $ $ $ $

New South Wales 2 622 2 619 2 503 2 503 - 116

Victoria 2 381 2 477 2 384 2 384 - 93

Queensland 2 179 2 307 2 000 2 000 - 307

Western Australia 2 898 2 956 2 500 2 500 - 456

South Australia 2 206 2 234 2 149 2 149 - 85

Tasmania 1 654 1 780 1 779 1 779 - 1

Australian Capital Territory 2 947 2 998 2 781 2 781 - 217

State average 2 452 2 513 2 332 2 399 - 114

Northern Territory 1 769 1 793 1 850 1 815 22Source: State and territory outcome reports, state and territory budget papers; ABS Cat. No. 3101.0

1. Based on Northern Territory’s 2008-09 outcome and the 2008-09 estimate for all other jurisdictions

Although taxation per capita is a useful comparative measure, it is limited in that it does not make any allowances for the difference in states’ capacities to raise revenue.

A more useful measure of tax competitiveness is the Commonwealth Grants Commission’s analysis of ‘tax effort’, which takes account of the extent to which a particular state’s capacity to raise revenue is above or below average. Table 11 details the Territory’s revenue raising capacity and effort expressed as a percentage of the Australian average in 2007-08, the latest year assessed by the Commission.

Capacity1 Effort2

% %

Total taxation 77 102

Total own-source revenue 89 99

Source: Commonwealth Grants Commission 2008 Update

1. Northern Territory’s capacity to raise revenue compared with the Australian average

2. Northern Territory’s revenue effort compared with the Australian average, given the capacity available

The Commission’s assessment shows that for 2007-08 the Territory’s tax effort was above the Australian average. In regard to own-source revenue, the Territory’s effort is at 99 per cent, about the Australian average.

Table 10: Taxation Revenue Per Capita – General Government

Table 11: Northern Territory Revenue – Raising Capacity and Effort 2007-08


20 Overview

This element of the fiscal strategy provides that during the period of economic downturn, short-term increases in general government debt levels are expected as a result of increased investment in infrastructure to support the Territory economy.

When the economy and government revenue returns to more normal levels, net debt in the general government sector is to reduce on average by 5 per cent per annum of additional debt incurred since 2007-08. Net financial liabilities will be maintained within current policy settings such that the ratio of net financial liabilities to revenue reduces over time.

This component of the fiscal strategy aims to ensure that debt is prudently managed, taking into consideration service delivery needs and capital investment to promote social wellbeing and economic growth. This is particularly important for the Territory due to its greater infrastructure requirements relative to other jurisdictions, resulting in the Territory traditionally having higher debt levels than other jurisdictions.

The measures of net debt and net financial liabilities for the general government sector provide the means of assessing the Territory’s performance against this element of the fiscal strategy.

Table 12: Northern Territory Net Debt – General Government Sector

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Outcome

Net debt ($M) 887 1 045 969 837 - 50

Net debt as a percentage of total revenue (%) 23 28 24 20 - 3


The 2008-09 net debt result for the general government sector is a $50 million improvement from the 2007-08 outcome, giving a ratio of net debt to revenue of 20 per cent, compared to 23 per cent in 2007-08. This improvement is the effect of a further cash surplus in 2008-09.

Net financial liabilities is a broader measure than net debt in that it encompasses all liabilities. This includes unfunded employee entitlements which consist mostly of unfunded superannuation, which is a major liability for the Territory and for most jurisdictions.

Table 13 highlights the worsening position of net financial liabilities in 2008-09 from the 2007-08 outcome in both absolute terms and as a percentage to revenue even though it was an improvement from the 2008-09 Budget and estimate. This worsening is not the result of decisions taken by Government, but rather the increase in the valuation of the Territory’s superannuation liabilities associated with the lower bond rate applicable at 30 June 2009. Net financial liabilities for 2008-09 were $3749 billion, an increase of $369 million from the 2007-08 outcome, with a ratio to revenue of 90 per cent, compared to 87 per cent.

Prudent Management of Debt and Liabilities

21Overview

Table 13: Net Financial Liabilities – General Government Sector

2007-08

Outcome

2008-09

Budget

2008-09

Estimate

2008-09

Outcome

Variation

on Outcome

Net financial liabilities ($M) 3 381 3 832 4 364 3 749 369



The increase in net financial liabilities from the 2007-08 outcome is mostly due to an increase of $310 million in the Territory’s superannuation liability largely as the result of a lower discount factor at 30 June 2009, compared to 30 June 2008, used to estimate the net present value of liabilities in accordance with Accounting Standards requirements. At 30 June 2009, the bond rate to value the Territory’s superannuation liability fell to 5.6 per cent from 6.5 per cent at 30 June 2008. In addition, the revaluation of the Conditions of Service Reserve for 2008-09 was an unrealised loss of $82 million, resulting in a further increase in net financial liabilities.

The 2008-09 financial results are in line with the fiscal strategy objectives. However, the effects of the GFC continue to be experienced and its effect on budget revenues and expenditures will result in a worsening position for 2009-10 and future years than was expected 18 months ago.

The challenge over the next two to three years will be managing the effect of timing differences each year as the cash surplus from 2008-09 flows through to the Budget and future years, maintaining a surplus operating balance to support capital investment, and limiting the growth in future spending in line with the Territory’s fiscal strategy.

Conclusion


22

23

Treasurer’s Annual Financial Statement

(Audited)


24

25Financial StatementsAuditor-General’s Report 25


26

27Financial Statements


Operating StatementNotes 2008-09 2007-08

$000 $000

REVENUE

Taxation revenue 4 404 829 394 666

Current grants 5 3 112 725 2 771 588

Capital grants 6 131 296 232 927

Sales of goods and services 7 167 719 168 796

Interest income 79 064 106 074

Dividend and income tax equivalent income 8 25 096 58 795

Other 9 266 249 136 612

TOTAL REVENUE 4 186 978 3 869 458

less EXPENSES

Employee expenses 1 408 117 1 246 014

Superannuation expenses

Superannuation interest cost 133 730 127 131

Other superannuation expenses 149 711 136 520

Depreciation and amortisation 195 627 178 919

Other operating expenses 10 962 270 873 770

Interest expenses 135 400 151 820

Other property expenses 343 75

Current grants 11 669 639 540 099

Capital grants 12 227 509 173 454

Subsidies and personal benefit payments 13 117 423 101 171

TOTAL EXPENSES 3 999 769 3 528 974

equals NET OPERATING BALANCE 187 210 340 484

plus Other economic flows – included in operating result 2 - 319 709 - 18 893

equals OPERATING RESULT - 132 499 321 591

plus Other economic flows – other non-owner movements in equity

2 1 675 455 179 279

equals COMPREHENSIVE RESULT – Total change in net worth before transactions with owners as owners

1 542 955 500 870

NET OPERATING BALANCE 187 210 340 484

less Net acquisition of non financial assets

Purchases of non financial assets 448 534 349 197

Sales of non financial assets - 41 538 - 57 541

less Depreciation 20, 22, 25 195 627 178 919

plus Change in inventories 536 357

plus Other movements in non financial assets - 2 876 29 873

equals Total net acquisition of non financial assets 209 028 142 966

equals FISCAL BALANCE - 21 818 197 518


28 Financial Statements


Balance SheetNotes 2008-09 2007-08

$000 $000

ASSETS

Financial assets

Cash and deposits 14 159 504 129 619

Advances paid 15 128 949 154 637

Investments, loans and placements 16 933 941 1 033 868

Receivables 17 122 353 179 568

Equity

Investments in other public sector entities 1 346 352 1 173 573

Investments – other 18 100

Other financial assets

Total financial assets 2 691 198 2 671 266

Non financial assets

Inventories 19 8 799 8 263

Property, plant and equipment 20 7 076 064 5 340 577

Investment property 21 48 629 47 220

Intangible assets 22 126 295

Assets held for sale 23 16 838 15 068

Biological assets 24 22 22

Other non financial assets 25 3 115 3 115

Total non financial assets 7 153 593 5 414 559

TOTAL ASSETS 9 844 791 8 085 825

LIABILITIES

Deposits held 26 193 242 207 794

Advances received 27 252 011 240 159

Borrowing 28 1 613 669 1 756 679

Superannuation 29 2 408 434 2 098 831

Other employee benefits 30 465 416 415 591

Payables 31 102 223 109 986

Other liabilities 32 59 259 49 200

TOTAL LIABILITIES 5 094 252 4 878 241

NET ASSETS/(LIABILITIES) 4 750 539 3 207 584

Contributed equity

Accumulated surplus/(deficit) 799 808 933 541

Reserves 3 950 731 2 274 043

NET WORTH 33 4 750 539 3 207 584

NET FINANCIAL WORTH1 -2 403 054 -2 206 975

NET FINANCIAL LIABILITIES2 3 749 406 3 380 548

NET DEBT3 836 527 886 508 1 Net financial worth equals total financial assets minus total liabilities.

2 Net financial liabilities equals total liabilities less total financial assets, excluding investments in other public sector entities.

3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments, loans and placements.



Cash Flow StatementNotes 2008-09 2007-08

$000 $000

Cash receipts from operating activities

Taxes received 413 375 394 775

Receipts from sales of goods and services 161 595 158 165

Grants and subsidies received 3 267 962 2 970 094

Interest receipts 77 933 103 995

Dividends and income tax equivalents 52 111 54 427

Other receipts 259 141 139 857

Total operating receipts 4 232 116 3 821 312

Cash payments for operating activities

Payments for employees -1 546 576 -1 403 789

Payment for goods and services - 973 938 - 856 862

Grants and subsidies paid -1 006 587 - 811 153

Interest paid - 137 806 - 149 838

Other payments - 749

Total operating payments -3 665 657 -3 221 642

NET CASH FLOWS FROM OPERATING ACTIVITIES 36 566 459 599 670

Cash flows from investments in non financial assets

Sales of non financial assets 41 538 57 541

Purchases of non financial assets - 448 534 - 349 197

Net cash flows from investments in non financial assets - 406 995 - 291 656

NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS

159 464 308 014

Net cash flows from investments in financial assets for policy purposes1

2 829 21 517

Net cash flows from investments in financial assets for liquidity purposes

13 303 - 248 039

NET CASH FLOWS FROM INVESTING ACTIVITIES - 390 864 - 518 178

Net cash flows from financing activities

Advances received (net) - 26 639 - 50 118

Borrowing (net) - 104 519 - 21 639

Deposits received (net) - 14 553 46 337

Other financing (net)

NET CASH FLOWS FROM FINANCING ACTIVITIES - 145 711 - 25 420

NET INCREASE/DECREASE IN CASH HELD 29 885 56 072

Net cash flows from operating activities 566 459 599 670


CASH SURPLUS (+)/DEFICIT (-) 159 464 308 014

Additional information to the Cash Flow Statement


Acquisitions under finance leases and similar arrangements - 32 608

ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements

159 464 275 406

Future infrastructure and superannuation contributions/earnings2 - 23 871 - 63 978

UNDERLYING SURPLUS (+)/DEFICIT (-) 135 593 211 4281 Includes equity acquisitions, disposals and privatisations (net).

2 Contributions for future infrastructure and superannuation requirements.



Public Non Financial Corporation Sector

Operating Statement 2008-09 2007-08

$000 $000

REVENUE

Current grants 110 387 111 455

Capital grants 117 366 82 701

Sales of goods and services 453 307 432 899


Other 53 794 39 495

TOTAL REVENUE 738 280 670 224

less EXPENSES

Employee expenses 69 654 60 908

Superannuation expenses 9 576 8 206


Other operating expenses 481 824 379 346


Other property expenses 5 411 29 223

Current grants

Capital grants 62 95

Subsidies and personal benefit payments 5 991 2 885

TOTAL EXPENSES 687 533 577 124


plus Other economic flows – included in operating result 149 933 - 3 842

equals OPERATING RESULT 200 680 89 257

plus Other economic flows – other non-owner movements in equity 7 155 806


207 835 90 063





less Depreciation 79 495 65 904

plus Change in inventories - 5 394 5 729

plus Other movements in non financial assets 17 260 13 094


equals FISCAL BALANCE - 113 982 - 38 475



Balance Sheet 2008-09 2007-08

$000 $000

ASSETS

Financial assets

Cash and deposits 112 106 95 689

Receivables 70 671 71 961

Equity 3 3

Total financial assets 182 779 167 652


Inventories 18 146 23 540

Property, plant and equipment 1 669 793 1 332 327

Intangible assets 2 361 8 595


TOTAL ASSETS 1 873 079 1 532 115

LIABILITIES

Deposits held 392 33

Borrowing 605 364 466 313

Other employee benefits 28 965 25 120

Payables 73 856 47 246

Other liabilities 15 936 52 672

TOTAL LIABILITIES 724 513 591 384

NET ASSETS/(LIABILITIES) 1 148 565 940 731

Contributed equity 362 172 356 549


Reserves 20 136 18 826

TOTAL EQUITY 1 148 565 940 731

NET FINANCIAL WORTH1 - 541 734 - 423 732






Cash Flow Statement 2008-09 2007-08

$000 $000



Grants and subsidies received 218 575 201 366



Total operating receipts 697 584 649 019


Income tax equivalents paid - 24 285 - 18 476

Payments for employees - 80 632 - 70 865


Grants and subsidies paid - 6 053 - 2 980

Interest paid - 35 313 - 29 884

Other payments

Total operating payments - 589 450 - 504 136

NET CASH FLOWS FROM OPERATING ACTIVITIES 108 134 144 883






- 124 224 - 33 773





Advances received (net)

Borrowing (net) 140 496 79 467

Deposits received (net) 359 33

Dividends paid - 214 - 128

Other financing (net) 35

NET CASH FLOWS FROM FINANCING ACTIVITIES 140 641 79 406




Dividends paid - 214 - 128

CASH SURPLUS (+)/DEFICIT (-) - 124 438 - 33 901


CASH SURPLUS (+)/DEFICIT (-) - 124 438 - 33 901

Acquisitions under finance leases and similar arrangements


- 124 438 - 33 901

1 Includes equity acquisitions, disposals and privatisations (net).


Non Financial Public Sector


$000 $000

REVENUE

Taxation revenue 399 476 389 797

Current grants 3 112 691 2 771 553




Dividend and income tax equivalent income 19 372 29 031

Other 310 134 170 308

TOTAL REVENUE 4 619 091 4 252 618

less EXPENSES






Other operating expenses 1 383 405 1 198 320





Subsidies and personal benefit payments 61 275 45 280

TOTAL EXPENSES 4 381 446 3 819 249


plus Other economic flows – included in operating result - 169 776 - 22 735


plus Other economic flows – other non-owner movements in equity 1 475 086 90 236


1 542 955 500 870














$000 $000

ASSETS

Financial assets


Advances paid 128 949 154 637

Investments, loans and placements 933 941 1 033 868


Equity

Investments in other public sector entities 197 786 232 842





Inventories 26 945 31 803

Property, plant and equipment 8 745 857 6 672 904

Investment property 48 629 47 220

Intangible assets 2 487 8 889

Assets held for sale 16 838 15 068

Biological assets 22 22

Other non financial assets 3 115 3 115


TOTAL ASSETS 10 452 204 8 548 330

LIABILITIES

Deposits held 84 680 114 914

Advances received 252 011 240 159

Borrowing 2 219 032 2 222 991

Superannuation 2 408 434 2 098 831


Payables 168 644 150 819




Contributed equity

Accumulated surplus/(deficit) 1 566 066 1 498 896

Reserves 3 184 473 1 708 688

NET WORTH 4 750 539 3 207 584

NET FINANCIAL WORTH1 - 4 093 354 - 3 571 438

NET FINANCIAL LIABILITIES2 4 291 140 3 804 280

NET DEBT3 1 330 177 1 257 164 1 Net financial worth equals total financial assets minus total liabilities.

2 Net financial liabilities equals total liabilities less total financial assets, excluding investments in other public sector entities.





$000 $000






Dividends and income tax equivalents 27 675 35 896




Payments for employees - 1 621 936 - 1 469 841

Payment for goods and services - 1 363 271 - 1 189 566


Interest paid - 169 531 - 176 340

Other payments - 733

Total operating payments - 3 940 411 - 3 455 366







35 026 274 113

Net cash flows from investments in financial assets for policy purposes1 2 829 21 517

Net cash flows from investments in financial assets for liquidity purposes 13 303 - 248 039



Advances received (net) - 26 639 - 50 118

Borrowing (net) 35 977 57 828

Deposits received (net) - 30 234 1 362


NET CASH FLOWS FROM FINANCING ACTIVITIES - 20 896 9 107









35 026 241 505






Public Financial Corporation Sector


$000 $000

REVENUE

Current grants

Capital grants



Other 5 633 6 485

TOTAL REVENUE 397 224 413 622

less EXPENSES

Employee expenses 17 918 16 566

Superannuation expenses 2 847 2 634


Other operating expenses 165 823 126 387




Capital grants

Subsidies and personal benefit payments

TOTAL EXPENSES 379 975 349 462


plus Other economic flows – included in operating result - 62 859 - 40 345

equals OPERATING RESULT - 45 611 23 815

plus Other economic flows – other non-owner movements in equity - 12 294 - 10 250


- 57 904 13 565






plus Change in inventories

plus Other movements in non financial assets

equals Total net acquisition of non financial assets - 38 928 - 11 356

equals FISCAL BALANCE 56 176 75 516




$000 $000

ASSETS

Financial assets


Advances paid 264 804 303 269

Investments, loans and placements 3 004 196 2 882 235




Property, plant and equipment 45 753 44 994

Investment property 36 937

Intangible assets 2 722 518

Total non financial assets 48 475 82 449

TOTAL ASSETS 3 634 677 3 622 363

LIABILITIES


Advances received 273 700 294 010

Borrowing 2 178 189 2 216 111


Payables 70 825 65 476



NET ASSETS/(LIABILITIES) 197 786 232 842

Contributed equity 58 054 35 206


Reserves 22 120 21 197

TOTAL EQUITY 197 786 232 842

NET FINANCIAL WORTH1 149 311 150 393

NET DEBT2 - 552 313 - 533 399 1 Net financial worth equals total financial assets minus total liabilities.






$000 $000



Grants and subsidies received


Other receipts 8 068 999

Total operating receipts 399 826 410 254


Income tax equivalents paid - 10 122 - 19 208

Payments for employees - 22 381 - 20 204



Interest paid - 184 105 - 184 863

Other payments - 3 410 - 2 774

Total operating payments - 357 578 - 360 458





Net cash flows from investments in non financial assets 36 147 9 129


78 394 58 925

Net cash flows from investments in financial assets for policy purposes1 24 024

Net cash flows from investments in financial assets for liquidity purposes - 173 529 - 8 460

NET CASH FLOWS FROM INVESTING ACTIVITIES - 113 358 669


Advances received (net) - 20 311 870

Borrowing (net) - 36 758 - 4 930

Deposits received (net) 74 406 - 4 173

Dividends paid - 17 485 - 16 554

Other financing (net) 22 849

NET CASH FLOWS FROM FINANCING ACTIVITIES 22 701 - 24 787

NET INCREASE/DECREASE IN CASH HELD - 48 409 25 679


Net cash flows from investments in non financial assets 36 147 9 129

Distributions paid - 17 485 - 16 554






60 909 42 371



Total Public Sector

Operating StatementNotes 2008-09 2007-08

$000 $000

REVENUE

Taxation revenue 4 398 197 388 616

Current grants 5 3 112 691 2 771 553


Sales of goods and services 7 714 745 695 599


Dividend and income tax equivalent income 8

Other 9 314 272 175 367

TOTAL REVENUE 4 820 590 4 442 036

less EXPENSES






Other operating expenses 10 1 535 467 1 311 806



Current grants 11 624 099 490 012


Subsidies and personal benefit payments 13 61 275 45 280

TOTAL EXPENSES 4 579 048 3 961 992


plus Other economic flows – included in operating result 2 - 232 635 - 63 080



2 1 534 048 83 906


1 542 955 500 870





less Depreciation 20, 22, 25 277 904 247 051







Total Public Sector

Balance SheetNotes 2008-09 2007-08

$000 $000

ASSETS

Financial assets

Cash and deposits 14 317 338 327 627

Advances paid 15 125 276 135 986

Investments, loans and placements 16 1 840 142 1 851 529

Receivables 17 295 224 304 370

Equity

Investments in other public sector entities

Investments – other 18 103 3




Inventories 19 26 945 31 803

Property, plant and equipment 20 8 791 610 6 717 898

Investment property 21 48 629 84 157

Intangible assets 22 5 210 9 407





TOTAL ASSETS 11 470 450 9 480 985

LIABILITIES

Deposits held 26 498 503 430 747

Advances received 27 270 105 275 461

Borrowing 28 2 292 013 2 332 700

Superannuation 29 2 408 434 2 098 831

Other employee benefits 30 498 974 445 558

Payables 31 233 730 208 716

Other liabilities 32 518 153 481 387



Contributed equity


Reserves 3 066 861 1 532 249

NET WORTH 33 4 750 539 3 207 584

NET FINANCIAL WORTH1 -4 141 829 -3 653 887




Total Public Sector

Cash Flow StatementNotes 2008-09 2007-08

$000 $000









Payments for employees -1 641 937 -1 487 919

Payment for goods and services -1 484 107 -1 306 634


Interest paid - 192 089 - 180 631


Total operating payments -4 109 944 -3 600 204

NET CASH FLOWS FROM OPERATING ACTIVITIES 36 699 141 777 667






95 934 316 484

Net cash flows from investments in financial assets for policy purposes1 8 108 22 060

Net cash flows from investments in financial assets for liquidity purposes - 138 653 - 231 175



Advances received (net) - 5 357 - 416

Borrowing (net) - 38 078 - 22 261

Deposits received (net) 67 756 - 10 862


NET CASH FLOWS FROM FINANCING ACTIVITIES 24 321 - 33 504

NET INCREASE/DECREASE IN CASH HELD - 10 289 73 865








95 934 283 876





42

43

Notes to the Financial Statements


44

45Notes to the Financial Statements

Notes to the Financial StatementsFor the year ended 30 June 2009

Note 1: Statement of Significant Accounting PoliciesThe following summary sets out the significant accounting policies adopted in the Treasurer’s Annual Financial Statement.

Statement of Compliancea) Compliance Frameworki)

The 2008-09 Treasurer’s Annual Financial Statement (TAFS) is a general purpose financial report that has been prepared in accordance with all relevant new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period. These include:

AASB 1049 Whole of Government and General Government Sector Financial ReportingAASB 1049 was issued in October 2007, requiring all Australian governments to adopt the standard for the 2008-09 Annual Reports. The Territory adopted the standard early, for the 2007-08 Annual Report.

The Uniform Presentation Framework (UPF) was updated in April 2008 to incorporate the finalised AASB 1049. The UPF sets out the minimum reporting standards which all jurisdictions are required to produce. The Territory is complying with both Australian Accounting Standards (AAS) and the UPF.

AASB 1004 Contributions (revised)The revisions have the effect of relocating the requirements on contributions from AASs 27, 29 and 31, substantively unamended (with some exceptions), into AASB 1004. The Standard will not have an impact on the Financial Statements.

AASB 1051 Land Under RoadsThe Standard requires land under roads acquired after the end of the first reporting period ending on or after 31 December 2007 to be accounted for under AASB 116 Property, Plant and Equipment, with transitional provisions for land acquired prior to that date. Land under roads is not recognised in the balance sheet as it cannot be reliably measured at this stage.

AASB 2007-9 Amendments to Australian Accounting Standards arising from the Review of AAS 27, AAS 29 and AAS 31The Standard relocates certain relevant requirements from AASs 27, 29 and 31, substantively unamended, into existing topic-based standards. This standard also makes consequential amendments, arising from the short-term review of AASs 27, 29 and 31, to AASB 5, AASB 8, AASB 101


46 Notes to the Financial Statements

and AASB 114. The Standard will not have an impact on the Financial Statements.

AASB 2008-10 Amendments to Australian Accounting Standards – Reclassification of Financial Instruments, AASB 2009-3 Amendments to Australian Accounting Standards – Embedded DerivativesAASB 2008-10 permits the reclassification of some non-derivative financial assets in particular circumstances. AASB 2009-3 specifies the treatment of embedded derivatives within reclassified instruments.

Both Standards have no financial impact on the Financial Statements because Territory entities have not reclassified their financial assets in the current period.

AASB Interpretation 14, AASB 119 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their InteractionThe interpretation clarifies when refunds or reductions in future contributions in relation to defined benefit assets should be regarded as available and provides guidance on the impact of minimum funding requirements on such assets. It also gives guidance on when a minimum funding requirement might give rise to a liability. The Standard will not have a material financial impact on the Financial Statements.

Compliance with IFRSA statement of compliance with the International Financial Reporting Standard (IFRS) cannot be made due to the application of the not-for-profit requirements contained within AAS (no equivalent requirements exist in IFRS).

Standards and Interpretations Issued but not yet Effectiveii) At the date of authorisation of the financial report, the Standards and Interpretations listed below were in issue but not yet effective.

Note 1 (continued)


The following Standards and Interpretations are expected to have an impact on the TAFS for future reporting periods:

Standard/InterpretationEffective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year

ending

AASB 101 Presentation of Financial Statements (revised September 2007), AASB 2007-8 Amendments to Australian Accounting Standards Arising from AASB 101, AASB 2007-10 Further Amendments to Australian Accounting Standards arising from AASB 101 and AASB 2008-9 Amendments to AASB 1049 for consistency with AASB 101

1 January 2009 30 June 2010

AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Project


AASB 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project

1 July 2009 30 June 2010

AASB 2008-8 Amendments to Australian Accounting Standards – Eligible Hedged Items

1 July 2009 30 June 2010

AASB Interpretation 17 Distribution of Non-Cash Assets to Owners and AASB 2008-13 Amendments to Australian Accounting Standards arising from AASB Interpretation 17 Distributions of Non-Cash Assets to Owners

1 July 2009 30 June 2010

AASB 2009-2 Amendments to Australian Accounting Standards – Improving Disclosures about Financial Instruments


AASB Interpretation 18 Transfer of Assets from Customers 1 July 2009 30 June 2010

AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Process


AASB 2009-6 Amendments to Australian Accounting Standards


AASB 2009-7 Amendments to Australian Accounting Standards

1 July 2009 30 June 2010

The following Standards and interpretations are not expected to have a material impact on the TAFS for future reporting periods:

AASB 3 Business Combinations (revised), AASB 127 Consolidated •and Separate Financial Statements, AASB 2008-3 Amendments to Accounting Standards arising from AASB 3 and AASB 127, AASB 2008-11 Amendments to Australian Accounting Standard – Business Combinations Among Not-for-Profit Entities and AASB 2009-4 Amendments to Australian Accounting Standards arising from the Annual Improvements Process

AASB 8 Operating Segments and AASB 2007-3 Amendments to •Australian Accounting Standards arising from AASB 8

AASB 2008-1 Amendments to Australian Accounting Standard – •Share-based Payments: Vesting Conditions and Cancellations

AASB 2008-2 Amendments to Australian Accounting Standards – •Puttable Financial Instruments and Obligations arising on Liquidation

AASB 2008-7 Amendments to Australian Accounting Standards – Cost •of an Investment in a Subsidiary, Jointly Controlled Entity or Associate

Note 1 (continued)



AASB 123 Borrowing Costs (revised) and AASB 2009-1 Amendments •to Australian Accounting Standards – Borrowing Costs of Not-for-Profit Public Sector Entities

AASB 2009-8 Amendments to Australian Accounting Standards – •Group Cash-Settled Share-based Payment Transactions

AASB Interpretation 15 Agreements for the Construction of Real Estate•

AASB Interpretation 16 Hedges of a Net Investment in a Foreign •Operation

b) The Government Reporting EntityIn accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting, the financial report covers the total public sector and comprises the general government, public non financial corporations, non financial public and public financial corporations sectors.

Financial information, in the form of an Operating Statement, Balance Sheet and Cash Flow Statement, has been presented for each of these reporting sectors. Notes to the Financial Statements are presented for the total public sector and the general government sector.

Note 41, ‘Details of controlled entities as at reporting date’, contains a full list of entities forming each of the sectors listed below.

General GovernmentEntities which are mainly engaged in the production of goods or services outside the normal market mechanism. Goods and services are generally provided free of charge or at nominal charges well below costs of production. It also includes certain activities, government business divisions and government-controlled enterprises that operate in a cost-recovery environment observing competitive neutrality principles, but closely aligned to the operations of general government.

Public Non Financial Corporations (PNFCs)A public enterprise primarily engaged in the production of goods or services of a non financial nature, for sale in the market place, at prices which aim to recover most of the costs involved.

Non Financial Public Sector (NFPS)This sector is formed through a consolidation of the general government and public non financial corporations sub-sectors. This process eliminates transactions between the two sectors.

Public Financial Corporations (PFCs)Government controlled entities which perform central bank functions, and/or have the authority to incur liabilities and acquire financial assets in the market on their own account.

Total Public SectorThe total public sector is formed through a consolidation of all sectors of government. This process eliminates transactions and balances between sectors.

Note 1 (continued)


Basis of Preparationc) Accrual accounting principles are employed in the preparation of the TAFS so as to recognise the financial effects of transactions and other events in the period in which they occur, rather than when cash is paid out or received.

The TAFS is prepared in accordance with the historic cost convention, except for certain non-financial assets and financial instruments, which have been measured at fair value, as described in the accounting policies set below. Cost is based on the fair values of the consideration given in exchange for assets.

Certain liabilities, most notably superannuation and workers compensation, are calculated with regard to actuarial assumptions and recorded at fair value.

Basis of Consolidationd) Reporting entities controlled by the Territory are consolidated within these Financial Statements and are included in a specific reporting sector and the total public sector.

Where control of an entity is obtained during a financial year, the results of that entity are included in the Operating Statement from the date on which control commenced. Where control of an entity ceases during a financial year, the entity’s results are included for the part of the year for which control existed.

All material revenues, expenses, assets, liabilities and equity of the Government, including entities controlled by the Government, are included in the Financial Statements, and as part of the consolidation process material transactions and balances between government controlled entities are eliminated. Where necessary, adjustments are made to the financial statements of controlled entities to bring their accounting policies in line with the reporting entities controlled by the Territory.

Note 41, ‘Details of controlled entities as at reporting date’ contains a full list of entities consolidated within these Financial Statements.

Comparativese) Where necessary, comparative information for the 2007-08 financial year has been reclassified to provide consistency with current year disclosures.

Presentation and Rounding of Amountsf) Amounts in the Financial Statements and Notes to the Financial Statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Totals may not add due to rounding.

Changes in Accounting Policiesg) There have been no changes to accounting policies adopted in 2008-09 as a result of management decisions.

Note 1 (continued)



Accounting Judgements and Estimates h) The preparation of the financial report requires the making of judgements and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgements and estimates are:

Superannuation Liabilities – Note 1(p) and Note 29: Assumptions are •made with regard to discount rate, salary rate, expected return on scheme assets, inflation and imputed cost of interest.

Other Employee Benefits – Note 1(q) and Note 30: Non-current •liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service.

Other Liabilities – Note 1(s) and Note 32: Outstanding claim liabilities •associated with TIO and the Nominal Insurer are reported at net present value based on actuarial assumptions.

Contingent Liabilities – Note 1(y) and Note 35: The present value •of material quantifiable contingent liabilities are calculated using a discount rate based on the published 10-year Government bond rate.

Doubtful Debts – Note 15: Advances Paid and Note 1(l), 17 and •37: Receivables.

Depreciation and Amortisation – Note 1(j), Note 20: Property, Plant and •Equipment, and Note 22: Intangible Assets.

Revenue from Transactionsi) Revenue is recognised at the fair value of the consideration received, exclusive of the amount of goods and services tax (GST).

TaxationTerritory taxation is recognised when the underlying transaction or event which gives rise to the right to collect revenue occurs, and can be measured reliably. Government-assessed revenues are recognised at the time the assessments are issued. Taxpayer-assessed revenues, for example payroll tax, are recognised when a taxpayer’s self assessment is received. Additional revenues are recognised for assessments subsequently issued following review of returns lodged by taxpayers.

Note 1 (continued)


The deferred tax assets and deferred tax liabilities of the PNFC and PFC entities are not recognised. Rather, tax payments in relation to these entities are recognised when payable. This is eliminated upon consolidation within the total public sector.

Grants and Other ContributionsGrants, subsidies, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Government obtains control over the assets comprising the contributions.

Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.

Contributions of assets and contributions to assist in the acquisition of assets (capital grants), being non-reciprocal transfers, are recognised, unless otherwise determined by Government, as revenue when the agency obtains control of the asset or contribution. Contributions are recognised at the fair value received or receivable.

Sale of GoodsRevenue from the sale of goods is recognised (net of returns, discounts and allowances) when:

the significant risks and rewards of ownership of the goods have •transferred to the buyer;

the agency retains neither continuing managerial involvement to the •degree usually associated with ownership nor effective control over the goods sold;

the amount of revenue can be reliably measured;•

it is probable that the economic benefits associated with the •transaction will flow to the agency; and

the costs incurred or to be incurred in respect of the transaction can •be measured reliably.

Rendering of ServicesRevenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:

the amount of revenue, stage of completion and transaction costs •incurred can be reliably measured; and

it is probable that the economic benefits associated with the •transaction will flow to the entity.

Interest IncomeInterest and other investment income is recognised as it accrues, using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Note 1 (continued)



Fees and FinesRevenue from regulatory fees and fines is recognised at the time the fine or regulatory fee is issued.

Expenses from Transactionsj) Depreciation and AmortisationItems of property, plant and equipment, including buildings but excluding land and non current assets held for sale, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives. The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. Investment properties are not subject to depreciation.

Amortisation applies in relation to intangible non current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation.

The estimated useful lives for each class of asset are summarised below for agencies and other consolidated entities and are consistent with previous years:

Entities Subject to FMA¹ Other Consolidated Entities

Buildings 20-100 years 10-50 years

Infrastructure assets 8-50 years 3-99 years

Plant and equipment 1-15 years 3-99 years

Plant and equipment under finance lease

3-5 years n/a

Cultural assets 100 years n/a

Utility assets n/a 3-99 years

Biological assets 100 years n/a

Intangibles 3-6 years 2-4 years

1 FMA means Financial Management Act.

Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.

Interest ExpensesInterest expenses include interest charges, finance lease charges and borrowing costs. Interest expenses are expensed in the period in which they are incurred. With the exception of borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, that are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Other ExpensesOther expenses from transactions include employee and other entitlements, property expenses, transfer of grants and subsities, purchase of goods and services and other operating expenses.

Note 1 (continued)


Other Economic Flowsk) Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Other economic flows include the following transactions:

Disposal of Non Financial AssetsA gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.

Revaluation of Non Financial AssetsSubsequent to initial recognition, assets belonging to the following classes of non financial assets are revalued with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from their fair value at reporting date:

land;•

buildings;•

infrastructure assets;•

heritage and cultural assets;•

investment properties;•

biological assets; and•

intangibles.•

The above classes of non current assets include certain new assets that are initially recognised at cost. Such new assets will continue to be measured at cost, which is deemed to equate to fair value, until the next revaluation for that asset class occurs.

Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Power and Water utility assets, consisting of electricity, water and sewerage systems, are currently measured at deemed cost. However AASB 1049 requires these assets to be measured at fair value if it can be reliably estimated. The process of changing over to fair value measurement has been initiated, and it is anticipated that reliable estimates will be available for the year ending 30 June 2010.

The Australian Valuation Office (AVO) has provided independent valuations for key general government land, building and infrastructure assets. Valuations are in accordance with the fair value basis, with most general government building and infrastructure assets being valued at depreciated replacement cost. Parcels of land are valued based on existing land use.

Note 1 (continued)



A revaluation of urban rental properties, remote rental dwellings, roads and bridges was completed at 30 June 2009, the results of which are reflected in these financial statements.

A plan for the periodic and systematic revaluation of all other classes of assets is currently being developed with input from the agencies and the AVO.

Other Value-based ChangesThese include changes in the value of financial instruments measured at fair value (refer Note 1u), changes in unfunded employee entitlements because of changes in the long-term bond rate and other actuarial assumptions (refer Note 1p) and changes in the fair value of investment property due to market value changes (refer Note 1m).

Impairment of AssetsAn asset is said to be impaired when its carrying amount exceeds its recoverable amount.

Non current physical and intangible assets are assessed for indicators of impairment on an annual basis.

If an indicator of impairment exists, Government determines the asset’s recoverable amount. As the public sector is a not-for-profit entity, unless an asset has been identified as a surplus asset, the asset’s recoverable amount is determined as the higher of the asset’s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.

In certain situations, an impairment loss may subsequently be reversed. The impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Financial Assetsl) Cash and DepositsFor the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash, which are subject to an insignificant risk of changes in value. Cash at bank includes monies held in the Accountable Officers’ Trust Account (AOTA) that are ultimately payable to the beneficial owner (refer also to Note 26).

Advances PaidAdvances paid include investments in financial assets for policy purposes. Advances paid are recorded at cost less allowance for impairment.

The allowance for impairment losses represents the amount of advances paid that are likely to be uncollectible and are considered doubtful. The collectability of advances paid is reviewed regularly, and part of

Note 1 (continued)


this process is to assess, at reporting date, whether an allowance for impairment loss is required.

Investments, Loans and PlacementsInvestments, loans and placements includes investments in financial assets for liquidity management purposes.

Securities and investments are initially recorded at cost and are subsequently measured at amortised cost or at net market value, after deducting estimated costs of realisation at reporting date.

Loans are carried at amortised cost using the effective interest rate method less allowance for impairment.

Interest income is applied using the effective interest rate.

ReceivablesReceivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.

The allowance for impairment losses represents the amount of receivables that are likely to be uncollectible and are considered doubtful. The collectability of receivables is reviewed regularly, and part of this process is to assess, at reporting date, whether an allowance for impairment loss is required.

Non-Financial Assetsm) InventoriesInventories include assets held either for sale or for distribution at no or nominal consideration in the ordinary course of business operations.

Inventories are valued at the lower of cost and net realisable value, except for those held for distribution, which are carried at the lower of cost and current replacement cost. The cost of inventories are assigned using a mixture of first in, first out or weighted average cost formula or using specific identification of their individual costs.

Inventory held for distribution are regularly assessed for obsolescence and loss.

Property, Plant and EquipmentAll items of property, plant and equipment with a cost, or other value, equal to or greater than $5000 are recognised in the year of acquisition and depreciated. Items of property, plant and equipment below the $5000 threshold are expensed in the year of acquisition.

Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.

Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Government in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.

Note 1 (continued)



Investment PropertiesInvestment property, which is property held to earn rentals and/or for capital appreciation, is measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment property is measured at fair value. Revaluations are performed annually at the reporting date. Gains and losses arising from changes in the fair value of investment property are included in the Operating Statement as an Other Economic Flow in the period in which they arise. Any gains or losses on the retirement or disposal of an investment property are recognised in the Operating Statement in the period in which they arose.

Intangible AssetsTotal public sector intangibles consist largely of deferred development costs associated with a gas purchase agreement to which a government controlled entity is a party. Under this agreement, certain gas field development costs are reimbursed to the gas field developers.

The costs associated with field development are capitalised and amortised over the remaining periods of the gas purchase agreement. Deferred development costs are reviewed at reporting date, and where such costs are no longer considered recoverable, they are written off as an expense in the Operating Statement.

Other intangible assets consist of purchased software and in-house installation thereof that meets the criteria for recognition as intangible assets. Intangible assets are originally stated at cost less accumulated amortisation and any accumulated impairment losses.

These intangible assets have limited useful lives and are amortised using the straight-line method over their estimated useful lives. Assets are amortised from the date of acquisition or from the time the asset is held ready for use. Amortisation rates and methods are reviewed annually for appropriateness. When adjustments are made, they are reflected prospectively in current and future periods only.

All internally generated intangible assets have met the recognition criteria as defined under AASB 138.

Assets Held for SaleAssets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction or a grant agreement. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale or granting in its present condition. Management must be committed to the sale or grant agreement, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.

Biological AssetsBiological assets are living plants or animals that are either harvested as agricultural produce or are utilised to generate agricultural produce.

Note 1 (continued)


Biological assets are measured at fair value less estimated point-of-sale costs. Where fair value cannot be reliably estimated on initial recognition, the assets are measured at cost less accumulated depreciation and any accumulated impairment loss.

Other Non Financial AssetsThis category currently consists of heritage and cultural assets. Only those assets that can be reliably measured are recognised in the TAFS.

Assets Not RecognisedFinancial information in relation to significant school items such as land and buildings has been included in the Financial Statements. However, certain Northern Territory Government school assets have not been included in the Financial Statements due to the unreliability of the information.

In addition, financial information in relation to most works of art and museum collections has not been included in the Financial Statements. The unique nature of many of these assets makes the determination of reliable financial information difficult, particularly in relation to meaningful valuations. It is anticipated that the material valuations of art and museum collections, where reliable, will be incorporated into the 2009-10 Financial Statements.

Leased Assetsn) Leases under which the agency assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases.

Finance LeasesFinance leases are capitalised and recorded under ‘property, plant and equipment’. A lease asset and a lease liability equal to the present value of the minimum lease payments are recorded at the inception of the lease.

Repayments of principal reduce lease liabilities. The interest components of the lease payments are expensed.

Operating LeasesOperating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.

Lease IncentivesLease incentives received under an operating lease of a building or office space is recognised as a liability. The aggregate benefits of the lease incentives are recognised as a reduction of rental expense on a straight line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the lease are consumed.

Financial Liabilities o) Financial liabilities such as interest bearing liabilities, advances received and borrowings are recorded initially at fair value, net of transactions costs. Subsequent to initial recognition, borrowings are measured at

Note 1 (continued)



amortised cost with any differences between the initial recognised amount and the redemption amount being recognised in the Operating Statement over the period of the borrowing using the effective interest rate method.

Interest-bearing LiabilitiesInterest-bearing liabilities are recorded at amortised cost, using the effective interest rate method, with the associated interest expense recognised in the reporting period in which it is payable.

Advances ReceivedAdvances received reflect loans received for policy purposes. These are primarily the original Commonwealth loans issued at Self Government.

BorrowingsBorrowings represent funds raised for liquidity management purposes from the following sources: loans raised by the Commonwealth on behalf of the Territory, domestic and overseas borrowings via the Northern Territory Treasury Corporation, and overdraft facilities obtained from the commercial banking sector by public non financial corporations and public financial corporations.

Superannuationp) Employees’ superannuation entitlements are provided through either a defined contribution plan or a defined benefits plan.

Defined Contribution PlansContributions to defined contribution superannuation plans are expensed when employees have rendered the service entitling them to the contributions. These include the employee nominated non-government schemes for those employees commencing on or after 10 August 1999. As they are funded on an ongoing basis, a liability is generally not recognised, however a liability is recognised for the superannuation costs associated with the benefits accrued for employees in respect of annual leave and long service leave.

Defined Benefit PlansFor defined benefit superannuation plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each reporting date. The projected unit credit method calculates the accrued liability by discounting the value of the expected future benefit payments, after allowing for future salary increases, future interest and future pension increases where applicable, arising from membership completed prior to the reporting date. The discount rate used is the 10-year government bond rate as at 30 June 2009, which was 5.6 per cent; the equivalent rate as at 30 June 2008 was 6.5 per cent.

Actuarial gains and losses are recognised in full in the Operating Statement as an Other Economic Flow in the period in which they occur (refer Note 29 for further details).

The defined benefit superannuation plans include:

Note 1 (continued)


Northern Territory Government and Public Authorities’ Superannuation •Scheme (NTGPASS);

Commonwealth Superannuation Scheme (CSS);•

Northern Territory Supplementary Superannuation Scheme;•

Northern Territory Police Supplementary Benefit Scheme; and•

Legislative Assembly Members and other statutory schemes.•

Other Employee Benefitsq) A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave, and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities recognised in respect of employee benefits which are expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.

Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows calculated using the appropriate Government bond rate and taking into consideration expected future salary and wage levels, experience of employee departures and periods of service.

No provision is made for sick leave, which is non vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period.

Workers compensation liabilities comprise those under the Work Health Act, and COMCARE liabilities under Commonwealth legislation. The change in liability for the year ended 30 June 2009 is based upon an actuarial assessment of the value of outstanding claims at the end of the period and takes into account revisions to earlier years’ estimates of the value of outstanding claims.

Payablesr) Liabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the agency.

Other Liabilitiess) Outstanding claims liabilities associated with the Territory Insurance Office and the Nominal Insurer are based on claims reported but not yet paid, claims incurred but not reported and the expected costs associated with settlement of those claims, all of which are reported at net present value.

Equityt) The values of all holdings in entities external to a sector that are controlled by that sector are included in equity. The general government sector is considered to control all other government entities. The movement in the net worth of sub-sectors (that is, the PNFCs and PFCs) is included in the value of equity for the general government sector.

Note 1 (continued)



Similarly, the non financial public sector includes the movement in the net worth of the public financial corporations sector.

In reporting the total public sector, the Government equity in public financial and non financial corporations are eliminated upon consolidation.

Financial Instrumentsu) A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial instruments include cash and deposits; receivables; advances, investments loan and placements; payables; advances received; borrowings and derivatives. Exposure to interest rate risk, foreign exchange risk, credit risk, price risk and liquidity risks arise in the normal course of activities. The Territory’s investments, loans and placements and borrowings are predominantly managed through the Northern Territory Treasury Corporation and the Territory Insurance Office adopting strategies to minimise the risk. Derivative financial arrangements are also utilised to manage financial risks inherent in the management of these financial instruments. These arrangements include swaps, forward interest rate agreements and other hedging instruments to manage fluctuations in interest or exchange rates.

Financial assets and liabilities are recognised on the Balance Sheet when the Territory becomes a party to the contractual provisions of the financial instrument. The Territory has the following financial instruments:

cash and cash equivalents;•

loans and receivables;•

trading financial assets in the normal course of operations;•

available for sale financial assets;•

trading financial liabilities in the normal course of operations;•

non-trading financial liabilities; •

derivatives; and•

held-to-maturity investments.•

Classification of Financial InstrumentsAASB 7 requires financial instruments to be classified and disclosed within specific categories. The TAFS classifies its financial assets into the following categories:

financial assets at fair value through profit and loss;•

held-to-maturity investments;•

loans and receivables; and•

available-for-sale financial assets.•

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’.

Note 1 (continued)


Financial Assets at Fair Value through Profit and lossFinancial assets classified as held for trading are included in the category ‘financial assets at fair value through profit and loss’. These are classified as held for trading if they are acquired for the purpose of selling in the near term with the intention of making a profit. Gains or losses on financial assets held for trading are recognised in profit and loss and the related assets are classified as current assets in the balance sheet.

Held-to-Maturity InvestmentsNon-derivative financial assets with fixed or determinable payments and fixed maturity dates that the entity has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Loans and ReceivablesFor details refer to Note 1(l).

Available-for-Sale Financial AssetsAvailable-for-sale financial assets are those non-derivative financial assets, principally equity securities that are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for sale securities are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the Operating Statement.

Fair Value of Financial InstrumentsThe fair value of financial instruments is determined based on quoted market prices, where available, or on estimates using present values or other valuation techniques. These techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. When market prices are not readily available, fair value is either based on estimates obtained from independent experts or quoted market prices of comparable instruments.

DerivativesThe Territory enters into a variety of derivative financial instruments to manage its exposure to interest rate risk. The Territory does not speculate on trading of derivatives.

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at each reporting date. The resulting gain or loss is recognised in the Operating Statement immediately unless the derivative is designated and qualifies as an effective hedging instrument, in which event, the timing of the recognition in the Operating Statement depends on the nature of the hedge relationship. Application of hedge accounting will only be available where specific designation and effectiveness criteria are satisfied.

Note 1 (continued)



Hedge AccountingAt the inception of the hedge relationship, the Territory documents the relationship between the hedging instrument and the hedged item, along with its risk management objectives and its strategy for undertaking the hedge transaction. Furthermore, at the inception of the hedge and on an ongoing basis, the Territory documents whether the hedging instrument that is used in a hedging relationship is highly effective in offsetting changes in the cash flows of the hedged item.

Cash Flow HedgeThe Territory has designated its hedging transactions (interest rate swaps) as cash flow hedges. Hedges are classified as cash flow hedges when they hedge the exposure to variability in cash flows that is attributable either to a particular risk associated with a recognised asset or liability or a forecast transaction. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are deferred in equity, while the gain or loss relating to the ineffective portion is recognised immediately in the Operating Statement as an Other Economic Flow.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised, or no longer qualifies for hedge accounting. At that time, any amounts deferred in equity remain in equity until the forecast transaction affects profit or loss and is thus transferred to the Operating Statement. When the hedged item is the cost of a non-financial asset or liability, the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability. Where a forecast transaction is no longer expected to occur, the cumulative gain or loss that was deferred in equity is recognised immediately in the Operating Statement.

Netting of Swap TransactionsThe Territory, from time to time, may facilitate certain structured finance arrangements, where a legally recognised right to set-off financial assets and liabilities exists, and the Territory intends to settle on a net basis. Where these arrangements occur, the revenues and expenses are set-off and the net amount is recognised in the Operating Statement.

Other Financial Instruments Issued by the TerritoryDebt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual agreement. The Territory’s compounding products are debt instruments.

Note 37 provides additional information on financial instruments.

Foreign Currencyv) Foreign currency transactions are initially translated into Australian currency at the date of the transaction. Amounts payable and receivable in foreign currencies at balance date are translated to Australian currency rates of exchange at 30 June.

The Government may undertake hedging to avoid or minimise adverse financial effects of movements in exchange rates. However, there were no foreign currency hedge contracts in place during the year ended 30 June 2009.

Note 1 (continued)


Taxationw) The Government is exempt from Commonwealth taxation with the exception of fringe benefits tax and goods and services tax.

Pursuant to National Competition Policy, the Government has implemented a tax equivalents regime that levies the equivalent of specified taxes and local government rates on certain public sector entities. Tax equivalents transactions and balances, other than taxation amounts actually payable, which are eliminated on consolidation, are excluded from these statements.

Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Taxation Office (ATO). In these circumstances, GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.

Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financial activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the ATO.

Commitmentsx) Disclosures in relation to capital and other commitments, including lease commitments, are shown at Note 34.

Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured.

Contingent Liabilities and Contingent Assetsy) Contingent liabilities are not recognised in the Balance Sheet but are disclosed in the financial report, unless the possibility of settlement is remote, in which case no disclosure is made. If settlement becomes probable, a provision is recognised.

Contingent assets are not recognised in the Balance Sheet but are disclosed in the financial report when inflows are probable. If inflows become virtually certain, an asset is recognised.

The amount disclosed as a contingent liability or contingent asset is the best estimate of the settlement or inflow.

Reporting Period z) The reporting period for consolidated entities is the year ended each 30 June, with the exception of the Batchelor Institute of Indigenous Tertiary Education which operates on a calendar year reporting period. Management information, which is considered reliable, was used in respect of the Institute.

Note 1 (continued)



Note 2: Other Economic Flows General Government Total Public Sector

2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Gain (loss) on sale of non financial assets 5 663 6 913 7 491 7 923

Net swap interest revenue 4 - 4

Bad and doubtful debt - 4 683 - 6 051 - 11 584 - 7 307

Net actuarial gains (losses) - 230 218 65 270 - 230 218 65 270

Revaluations and asset impairment - 90 632 - 85 386 1 510 - 129 322

Write down of inventory 161 360 161 360

Other economic flows – included in operating result - 319 709 - 18 893 - 232 635 - 63 080

Revaluations 1 531 147 75 683 1 534 048 83 906

Gain (loss) on investments in other sector entities 144 308 103 597

Other economic flows – other non-owner movements in equity 1 675 455 179 279 1 534 048 83 906


Note 3: GFS GAAP Reconciliation

GGS PNFC Sector Eliminations

NFPS Sector PFC Eliminations

Total Public Sector

$000 $000 $000 $000 $000 $000 $000

(a) Reconciliation to GFS Net Operating BalanceNet result from transactions – net

operating balance 187 210 50 746 - 311 237 645 17 249 - 13 351 241 543

Convergence differences

Dividends to GGS from other sector enties

- 311 311 - 13 351 13 351

GFS NET OPERATING BALANCE 187 210 50 435 237 645 3 898 241 543

(b) Reconciliation to GFS Fiscal BalanceFiscal Balance - 21 818 - 113 982 - 311 - 136 111 56 176 - 13 351 - 93 286


Relating to Net Operating Balance Note 3 (a)

- 311 311 - 13 351 13 351

GFS FISCAL BALANCE - 21 818 - 114 293 - 136 111 42 825 - 93 286

(c) Reconciliation to GFS Total Change in Net WorthComprehensive result – total change

in net worth before transactions with owners as owners

1 542 955 207 835 - 207 835 1 542 955 - 57 904 57 904 1 542 955


Relating to Net Operating Balance Note 3 (a)

- 311 311 - 13 351 13 351

Relating to other economic flows

Bad and doubtful debts 4 683 6 041 10 724 860 11 584

Net gain on equity investments in other sector entities measured at proportinal share of carrying amount of net assets/(liabilities)

6 901 - 6 041 860 - 860

Remeasurement of shares and other contributed capital

- 213 565 213 565 70 396 - 70 396

Total Convergence Difference 11 584 - 207 835 207 835 11 584 57 904 - 57 904 11 584

GFS TOTAL CHANGE IN NET WORTH

1 554 539 1 554 539 1 554 539

(d) Reconciliation to GFS Net WorthNet Worth 4 750 539 1 148 565 - 1 148 565 4 750 539 197 786 - 197 786 4 750 539


Shares and other contributed capital - 1 148 565 1 148 565 - 197 786 197 786

GFS TOTAL CHANGE IN NET WORTH

4 750 539 4 750 539 4 750 539



General Government Total Public Sector

2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 4: Taxation RevenueTaxes on employers’ payroll and labour force taxes 151 376 140 824 144 733 134 774

Stamp Duties on financial and capital transactions 110 159 113 352 110 159 113 352

Taxes on gambling 72 686 71 293 72 686 71 293

Taxes on insurance 27 132 25 143 27 143 25 143

Motor vehicle registration fees 43 477 44 055 43 477 44 055

Total taxation revenue 404 829 394 666 398 197 388 616

Note 5: Current GrantsGST revenue 2 247 514 2 207 175 2 247 514 2 207 175

General purpose grants 50 688 44 411 50 688 44 411

Specific purpose grants 472 534 438 706 472 500 438 671

Specific purpose payments 62 651 62 651

National partnerships 162 655 162 655

Other grants and non capital contributions 116 683 81 297 116 683 81 297

Total current grants 3 112 725 2 771 588 3 112 691 2 771 553

Note 6: Capital GrantsGeneral purpose capital grants 559 9 545 645 9 545

Specific purpose capital grants 75 022 178 328 75 022 178 328

National partnerships 25 684 25 684

Other Commonwealth capital contributions 30 031 45 055 30 031 45 055

Total capital grants 131 296 232 927 131 382 232 927

Note 7: Sales of Goods and ServicesFees from regulatory services 13 348 12 570 12 257 11 415

Other goods and services revenue 154 371 156 226 702 489 684 184

Total sales of goods and services 167 719 168 796 714 745 695 599

Note 8: Dividend and Income Tax Equivalent IncomeDividend income

PNFC Sector 311 214

PFC Sector 13 351 17 485

Tax equivalents regime

PNFC Sector 5 413 29 550

PFC Sector 6 021 11 546

Total dividend and income tax equivalents 25 096 58 795



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 9: Other RevenueRental income 5 527 5 408 12 548 12 941

Royalty income 224 216 95 226 224 216 95 226

Fines revenue 9 866 8 512 9 866 8 512

Miscellaneous revenue 26 488 27 388 53 257 45 518

Donated assets 153 77 14 386 13 171

Total other revenue 266 249 136 612 314 272 175 367

Note 10: Other Operating ExpensesRepairs and maintenance 181 435 138 207 242 840 187 079

Property management 130 904 113 410 109 228 90 148

Purchases of goods and services 645 268 616 267 1 178 249 1 027 995

Other operating expenses 4 663 5 886 5 150 6 584

Total other operating expenses 962 270 873 770 1 535 467 1 311 806

Note 11: Current GrantsGeneral current grants 365 352 272 034 319 812 221 947

Recurrent grants to schools 187 070 160 502 187 070 160 502

Current grants to charities and not for profit associations 117 217 107 562 117 217 107 562

Total current grants 669 639 540 099 624 099 490 012

Note 12: Capital GrantsGeneral capital grants 202 062 154 298 84 845 71 693

Capital grants to schools 17 611 14 296 17 611 14 296

Capital grants to charities and not for profit associations 4 808 2 048 4 808 2 048

Assets transferred 3 028 2 811 2 811

Total capital grants 227 509 173 454 107 264 90 848

Note 13: Subsidies and Personal Benefit PaymentsMonetary transfers to households 35 091 30 227 35 091 30 227

Community service obligations and other subsidies 82 332 70 944 26 184 15 053

Total subsidies and personal benefit payments 117 423 101 171 61 275 45 280

Note 14: Cash and DepositsCash at bank 32 582 14 445 68 728 43 359

Cash on hand 1 107 406 1 139 2 534

Cash on call or short term deposit 125 815 114 768 247 471 281 733

Total cash and deposits 159 504 129 619 317 338 327 627




2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 15: Advances Paid1

Current

Department of Business, Economic and Regional Development

578 578

Department of Business and Employment2 231 231

Department of Local Government and Housing 1 000 20 1 000 20

Department of Natural Resources, Environment, the Arts and Sport

20 20

NT Home Ownership3 2 335 2 958

Territory Housing3 1 662 1 662

Less: Provision for doubtful advances - 20 - 205 - 20 - 205

3 566 2 055 4 189 2 055

Non-current

Department of Planning and Infrastructure4 4 296 3 938

Department of the Chief Minister5 42 817 42 817 42 817 42 817

Northern Territory Treasury6 8 805 23 805 8 805 9 092

NT Home Ownership3 121 256 121 256

Territory Housing3 133 814 133 814

Less: Provision for doubtful advances - 51 792 - 51 792 - 51 792 - 51 792

125 383 152 582 121 087 133 931

Total advances paid 128 949 154 637 125 276 135 9861 Advances Paid refers to loans motivated by policy considerations rather than for liquidity management purposes.

2 Natural Disaster Relief and Recovery Arrangements advances formerly in the Department of Business, Economic and Regional Development, which ceased to exist in 2008-09.

3 These balances comprise the HomeStart scheme, which provides advances to individuals to purchase homes from the private markets, and the HomeShare scheme, which provides advances to individuals to purchase Department of Local Government and Housing properties. This responsibility has now been transferred from the former Territory Housing to NT Home Ownership.

4 Advances from TIO for Home Building Certification has been increased in 2007-08, which are eliminated on consolidation at the total public sector.

5 Represents advances to the railway consortium. A full provision for doubtful advances has been provided in relation to these amounts.

6 Total public sector represents an amount advanced to Jabiru Town Development Authority. A provision for doubtful advances has been provided for in relation to this amount.



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 16: Investments, Loans and PlacementsCurrent

Securities1 463 271 409 688 823 351 698 811

Conditions of Service Reserve investments2 345 246 403 757 345 246 403 757

Loans3 18 840 17 453

Less: Allowance for impairment

808 517 813 445 1 187 438 1 120 022

Non-current

Securities1 100 000 195 000 101 429 196 836

Loans3 25 423 25 423 552 328 535 717

Less: Allowance for impairment - 1 053 - 1 045

125 423 220 423 652 704 731 508

Total investments, loans and placements 933 941 1 033 868 1 840 142 1 851 5291 Current securities are predominantly cash invested by the Northern Territory Treasury Corporation on behalf of the Territory

Government. These investments include short term securities, fixed interest securities, asset swaps and fixed rate notes. Non-current securities represent Investments by the Territory Insurance Office.

2 The Conditions of Service Reserve (COSR) investments relate to funds that have been put aside to fund the Territory Government’s employee related liabilities including salaries, leave entitlements, redundancy, superannuation payments and to meet similar payments. These funds are managed by three different external fund managers on behalf of the Territory Government. The value of the reserve at 31 August 2009 was estimated at $380 million.

3 Current and non-current loans are mainly those provided by the Territory Insurance Office as part of its normal operations. Small loans are also provided by the Northern Territory Treasury Corporation to the University, schools and local government councils and communities.


2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 17: ReceivablesCurrent

Receivables (a) 91 128 137 230 160 400 174 910

Accrued revenue 16 528 29 220 49 913 49 961

Prepaid expenses (b) 14 497 12 850 44 755 39 641

122 153 179 300 255 068 264 512

Non-current

Receivables (a) 200 268 40 156 39 858

200 268 40 156 39 858

Total receivables 122 353 179 568 295 224 304 370



Note 17 (continued) General Government Total Public Sector

2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Receivables comprise:a)

Current

Accounts receivable 31 217 33 317 101 623 100 956

Less: Provision for impairment - 10 485 - 6 281 - 13 808 - 9 823

Interest receivable 2 688 2 929 4 226 6 473

GST receivable 33 151 12 857 35 877 12 503

Other receivables 34 558 94 409 32 482 64 800

91 128 137 230 160 400 174 910

Non-current

Accounts receivable 63 352 660

Other 200 205 39 804 39 197

200 268 40 156 39 858

Total receivables 91 328 137 498 200 556 214 768

Prepaid expenses comprise:b) Current

Prepaid salaries 691 816 702 841

Other prepayments 13 806 12 034 44 053 38 800

14 497 12 850 44 755 39 641Refer to Note 31 for aging of receivables

Note 18: Equity Investments – OtherCurrent 100 103 3

Total equity investments – other 100 103 3Note: The balance represents holdings by Darnor Pty Limited in Amadeus Gas Trust ($3k) and holdings by Tourism NT in Tourism NT

Pty Ltd ($100k).


Inventory

Inventory Held for

Distribution Inventory

Inventory Held for

Distribution

$000 $000 $000 $000

Note 19: Inventories2008/09

Carrying amount as at 1 July 2008 894 7 369 22 164 9 639

Additions 311 45 718 430 45 718

Disposals - 239 - 45 093 - 239 - 50 960

Transfers in/(out) - 1 - 160 - 20 899 21 091

Carrying amount as at 30 June 2009 965 7 834 1 456 25 489

2007/08

Carrying amount as at 1 July 2007 1 051 6 856 16 592 9 126

Additions 221 43 516 5 950 43 516

Disposals - 377 - 42 643 - 378 - 42 643

Transfers in/(out) - 1 - 360 - 360

Carrying amount as at 30 June 2008 894 7 369 22 164 9 639


Land Buildings Infrastructure1

Power and Water Utility

Assets

Construction Works in Process

Plant and Equipment Total

$000 $000 $000 $000 $000 $000 $000

Note 20: Property Plant and Equipment2008-09: General Government

Asset

Balance at 1 July 2008 451 339 4 075 852 3 019 624 293 341 317 043 8 157 200

Additions 3 355 9 179 14 768 344 098 72 035 443 436

Disposals 2 844 - 9 195 - 35 350 - 41 702

Transfers in/(out) 26 504 148 254 112 162 - 305 606 10 975 - 7 711

Revaluations/impairment adjustments 34 520 115 368 1 071 054 1 220 943

Balance at 30 June 2009 (1) 518 561 4 339 459 4 217 609 331 833 364 704 9 772 166

Accumulated depreciation

Balance at 1 July 2008 1 030 512 1 656 367 129 744 2 816 623

Depreciation expense 82 369 72 812 40 363 195 543

Disposals - 15 908 - 15 908

Transfers in/(out) - 473 - 7 7 783 7 303

Revaluations/impairment adjustments - 15 096 - 292 364 - 307 460

Balance at 30 June 2009 (2) 1 097 311 1 436 807 161 983 2 696 101

Carrying amount at 30 June 2009 (1 - 2) 518 561 3 242 147 2 780 802 331 833 202 721 7 076 064

2008-09: Total Public Sector

Asset

Balance at 1 July 2008 505 535 4 287 955 3 428 858 1 514 633 522 029 359 409 10 618 418

Additions 3 3552 9 1796 14 76810 4 225 571 73414 74 79015 678 052

Disposals 2 6543 - 9 3287 - 3 986 - 37 16416 - 47 825

Transfers in/(out) 27 9094 177 7828 129 85611 128 15813 - 474 11314 24 76817 14 359

Revaluations/impairment adjustments 37 3585 122 8669 1 071 05412 281 51313 1 835 1 514 627

Balance at 30 June 2009 (1) 576 811 4 588 454 4 644 537 1 924 543 619 649 423 638 12 777 631


Balance at 1 July 2008 1 112 325 1 823 099 817 262 147 835 3 900 520

Depreciation expense 88 358 94 989 42 946 44 014 270 307

Disposals - 116 - 3 583 - 16 488 - 20 187

Transfers in/(out) 10 411 - 11 453 - 204 7 785 6 539

Revaluations/impairment adjustments - 9 822 - 292 36412 131 02813 - 171 158

Balance at 30 June 2009 (2) 1 201 155 1 614 272 987 449 183 146 3 986 021

Carrying amount at 30 June 2009 (1 - 2) 576 811 3 387 299 3 030 265 937 094 619 649 240 492 8 791 610



Note 20 (continued) Land Buildings Infrastructure1

Power and Water Utility

Assets

Construction Works in Process

Plant and Equipment Total

$000 $000 $000 $000 $000 $000 $000

2007-08: General Government

Asset

Balance at 1 July 2007 458 295 3 802 599 2 929 399 337 480 277 532 7 805 305

Additions 866 8 684 260 308 168 59 104 377 082

Disposals - 2 838 - 17 610 - 35 475 - 55 923

Transfers in/(out) - 6 362 226 097 89 965 - 352 307 15 883 - 26 724

Revaluations/impairment adjustments 1 378 56 082 57 460

Balance at 30 June 2008 (1) 451 339 4 075 852 3 019 624 293 341 317 043 8 157 200


Balance at 1 July 2007 974 137 1 586 645 114 533 2 675 315

Depreciation expense 73 745 69 722 35 164 178 631

Disposals - 14 828 - 14 828

Transfers in/(out) - 115 - 5 124 - 5 239

Revaluations/impairment adjustments - 17 255 - 17 255

Balance at 30 June 2008 (2) 1 030 512 1 656 367 129 744 2 816 623

Carrying amount at 30 June 2008 (1 - 2) 451 339 3 045 340 1 363 258 293 341 187 299 5 340 577

2007-08: Total Public Sector

Asset

Balance at 1 July 2007 513 101 4 002 125 3 328 562 1 443 871 472 323 310 901 10 070 883

Additions 866 120 885 260 485 938 61 060 669 009

Disposals - 2 838 - 22 511 - 13 999 - 105 242 - 36 258 - 180 848

Transfers in/(out) - 6 972 123 614 100 443 84 760 - 330 990 23 706 - 5 439

Revaluations/impairment adjustments 1 378 63 842 65 220

Balance at 30 June 2008 (1) 505 535 4 287 955 3 429 265 1 514 633 522 029 359 408 10 618 825


Balance at 1 July 2007 1 053 365 1 740 308 787 231 131 362 3 712 266

Depreciation expense 76 126 83 197 36 407 42 409 238 140

Disposals - 10 465 - 15 471 - 25 936

Transfers in/(out) 88 4 089 - 10 466 - 6 289

Revaluations/impairment adjustments - 17 255 - 17 255

Balance at 30 June 2008 (2) 1 112 325 1 823 506 817 262 147 835 3 900 927

Carrying amount at 30 June 2008 (1 - 2) 505 535 3 175 630 1 605 759 697 371 522 029 211 574 6 717 898


Note 20 (continued)

1 Since completion of the railway, the Government works totalling $408 million ($412 million as at 30 June 2008) are classified as infrastructure assets within AustralAsia Railway Corporation (AARC). During the 50-year concession period the rights and obligations for the new rail corridor continue to rest with AARC and the Territory as they have freehold title over large portions of the rail corridor and hold long-term head leases over the remaining portions tracking through Aboriginal land. Hence, ultimate control over the corridor rests with AARC including the rail assets contained within. As such no provision for the resulting diminution in the value of the Territory’s assessment in AARC has been made in these Financial Statements. At the expiration of the 50-year concession period, the complete railway infrastructure (including the Government works) will be transferred back to AARC. However, due to the subjectivity involved with any measurement of the future value of the asset after the expiry of the concession period, it is not considered practical, at this point, to recognise any further assets in the accounts of AARC or in these financial statements.

2 Land additions consists of acquisitions made by the Department of Planning and Infrastructure.

3 The movement in land disposals predominantly relates to Land Development Corporation’s change in accounting treatment for long-term leases ($4.05m). This is offset by land sales in both the Land Development Corporation and the Department of Local Government and Housing of $1.2 million.

4 Land transfers in relates to land improvements for the Darwin Waterfront.

5 The revaluation adjustment predominantly relates to Land Development Corporation revaluing land assets upwards by $36 million.

6 Building additions includes $4.9 million in building assets for Northern Territory Police, Fire and Emergency Services and $2.5 million for Department of Local Government and Housing.

7 Building disposals of $9.3 million relates predominantly to building asset disposals by the Department of Local Government and Housing.

8 Building transfers in consists predominantly of completed construction of $58 million in the Department of Education and Training (including $14.8 million for Palmerston High School), $56 million in Department of Local Government and Housing, $14 million in the Department of Health and Families (including $7.7 million for hospital related projects and $3.6 million for Kalkarindji Health Clinic) and $8 million in the Department of the Legislative Assembly predominantly for Parliament House cabling upgrade.

9 Department of Local Government and Housing building assets predominantly contributed to an upward revaluation of urban and remote rental properties and dwellings of $115 million to fair value. The basis for the valuation of urban rental properties is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction and for remote rental dwellings, replacement cost methodology was used. For further information on valuation methods, refer Note 1 Statement of Significant Accounting Policies.

10 Infrastructure asset additions consists of the transfer of the NT Railway Corridor ($11.9 million) from construction works in process and the Land Development Corporation acquisition of infrastructure ($2.8 million).

11 Infrastructure asset transfers in predominantly relates to completed construction of $52.2 million for the Darwin Waterfront, together with infrastructure assets of the Department of Planning and Infrastructure, (including $33 million for the Victoria Highway and $5.9 million in Stuart Highway improvements), Darwin Port Corporation and the Power and Water Corporation.

12 Infrastructure assets revaluation adjustments consists of the Department of Planning and Infrastructure’s upward revaluation of roads and bridges.

13 The movement in Power and Water utility assets predominantly relates to the addition of utility works ($128 million) and an impairment reversal ($161 million).

14 The net movement in construction works in progress of $97.6 million, taking into account $78.7 million in the transfer of expenditure relating to the Darwin Waterfront Development and $11.9 million transfer of the NT Railway Corridor to Infrastructure assets, include costs associated with:

An increase in expenditure relating to Territory roads of $30.6 million including Tiger Brennan Drive Extension ($18.9 million); –

Education and training developments including Rosebery Primary and Middle School ($11.8 million); –

Public order and safety initiatives including Casuarina police station ($6 million), Galiwin’ku police station ($4.7 million) and –upgrades at correctional centres ($9.9 million);

Health initiatives including Royal Darwin Hospital radiation oncology Unit ($9.2 million); –

Housing and community amenities including Strategic Indigenous Housing and Infrastructure program ($22.3 million); and –

over $94.1 million of additional works associated with the construction of various assets managed by the Department of Planning –and Infrastructure.

15 The increase in plant and equipment additions include $11.8 million for the Northern Territory Police, Fire and Emergency Services, motor vehicle acquisitions by NT Fleet totalling $34.1 million, $7.8 million of various assets for the Department of Health and Families, $3.9 million of additions for the Department of Business and Employment and a further $3.7 million for the Department of Planning and Infrastructure.

16 Plant and equipment disposals predominantly relate to vehicle disposals by NT Fleet of $27.5 million and Northern Territory Police, Fire and Emergency Services of $7.4 million.

17 Plant and equipment transfers in predominantly relates to computer hardware transfers into Data Centre Services of $6.6 million, together with plant and equipment transfers into the Department of Natural Resources, Environment, the Arts and Sport of $4.7 million and the Darwin Port Corporation of $12.9 million.




2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 21: Investment PropertyCarrying amount as at 1 July 47 220 50 987 84 157 91 551

Additions 5 086 4 564 5 187 4 842

Disposals - 10 081 - 10 793 - 47 120 - 18 630

Transfers in/(out)

(Write down)/reversal of write down 6 404 2 462 6 404 6 394

Carrying amount as at 30 June 48 629 47 220 48 629 84 157This represents minority interest holdings in shared equity properties under the HomeStart scheme.

Disposals at the total public sector level includes the sale of investment property (NT House) by the Territory Insurance Office.

Note 22: Intangible AssetsCarrying amounts

Intangibles with a finite useful life

Internally generated intangiblesa) At valuation 2 894

Accumulated amortisation 316

Written down value 30 June 2 578

Other intangiblesb) At valuation 4 802 4 903 87 291 86 895

Accumulated amortisation 4 676 4 608 84 659 77 488

Written down value 30 June 126 295 2 632 9 407

Total intangibles 126 295 5 210 9 407

Reconciliation of movements


Internally generated intangiblesc) Carrying amount at 1 July 2 894

Additions

Disposals

Amortisation 316

Revaluations/impairment adjustments

Carrying amount at 30 June 2 578


Other intangiblesd) Carrying amount at 1 July 294 427 6 607 14 597

Additions 141 3 577 3 801

Disposals - 100 - 307 - 94

Amortisation - 68 - 273 - 7 265 - 8 896

Revaluations/impairment adjustments 19

Carrying amount at 30 June 126 295 2 632 9 407The intangibles balance consists largely of internally generated software relating to the Territory Insurance Office and purchased software of the Power and Water Corporation.



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 23: Assets Held for SaleLand 6 520 4 750 6 520 4 750

Buildings 10 318 10 318 10 318 10 318

Total assets held for sale 16 838 15 068 16 838 15 068Assets held for sale include land and buildings. The assets are held for disposal due to the government’s intention to dispose of these assets within the following year.

Note 24: Biological AssetsCarrying amount as at 1 July 22 22 22 22

Additions

Disposals

Transfers in/(out)

(Write down)/reversal of write down

Carrying amount as at 30 June 22 22 22 22Biological assets consists of aquatic assets held by the Department of Regional Development, Primary Industry, Fisheries and Resources.

Note 25: Other Non Financial AssetsAssets

Balance – 1 July 3 434 3 017 3 434 3 017

Additions 12 22 12 22

Disposals

Transfers in/(out) 5 74 5 74

Revaluations/impairment adjustments 321 321

Balance – 30 June (1) 3 451 3 434 3 451 3 434


Balance – 1 July 320 305 320 305

Depreciation expense 16 15 16 15

Disposals

Transfers in/(out)

Revaluations/impairment adjustments

Balance – 30 June (2) 336 320 336 320

Carrying amount as at 30 June (1-2) 3 115 3 115 3 115 3 115

Other non financial assets consists of cultural assets.




2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 26: Deposits HeldAccountable Officers Trust Account (a) 19 172 18 216 19 172 18 216

Clearing money 4 779 4 449 5 928 6 207

Interest bearing deposits 152 165 174 484 455 885 395 646

Other 17 126 10 646 17 518 10 679

193 242 207 794 498 503 430 747

Accountable Officers’ Trust Account a) comprises:

Department of Health and Families 413 349 413 349

Department of Justice 963 822 963 822

Department of the Legislative Assembly 1 1

Department of Local Government and Housing 5 099 3 228 5 099 3 228

Department of Natural Resources, Environment, the Arts and Sport

153 170 153 170

Department of Planning and Infrastructure 835 695 835 695

Department of Regional Development, Primary Industry Fisheries and Resources

6 074 4 774 6 074 4 774

Land Development Corporation 7 9 7 9

Northern Territory Legal Aid Commission 2 16 2 16

Northern Territory Police, Fire and Emergency Services 641 455 641 455

Territory Discoveries 4 984 5 891 4 984 5 891

Territory Housing 1 806 1 806

19 172 18 216 19 172 18 216

Note 27: Advances Received1

Current

Department of Local Government and Housing 816

Northern Territory Treasury 78 102 78 102

NT Home Ownership 6 180

Territory Housing 6 615

Northern Territory Treasury Corporation 4 947 4 947

7 074 6 718 5 026 5 049

Non current

Central Holding Authority 1 109 1 109

Department of Local Government and Housing 84 209

NT Home Ownership 159 618

Territory Housing 232 333

Northern Territory Treasury Corporation 259 979 264 926

Territory Insurance Office 5 100 5 486

244 936 233 441 265 079 270 412

Total advances received 252 011 240 159 270 105 275 461

1 Advances Received refers to loans motivated by policy considerations rather than for liquidity management purposes.



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 28: Borrowings1

Current

Finance leases2 828 673 828 717

Loans 1 102 103 660 375 347 295 054

1 930 104 333 376 174 295 771

Non current

Finance leases2 87 997 89 011 87 997 89 011

Loans 1 523 743 1 563 335 1 827 842 1 947 918

1 611 739 1 652 346 1 915 839 2 036 929

Total borrowings 1 613 669 1 756 679 2 292 013 2 332 7001. Refer also Note 37: Financial Instruments.

2. Refer also Note 34: Commitments.

Note 29: Superannuation LiabilitiesCurrent 147 666 134 388 147 666 134 388

Non current 2 260 768 1 964 443 2 260 768 1 964 443

Total superannuation liabilities (a) 2 408 434 2 098 831 2 408 434 2 098 831

The Northern Territory Government a) Superannuation schemes comprise:

Legislative Assembly Members’ Superannuation Scheme 29 034 11 731 29 034 11 731

Commonwealth Superannuation Scheme 1 366 900 1 203 300 1 366 900 1 203 300

Northern Territory Government and Public Authorities’ 683 900 601 700 683 900 601 700

Superannuation Scheme

Northern Territory Supplementary Superannuation Scheme 186 600 164 200 186 600 164 200

Northern Territory Police Supplementary Benefit Scheme 37 200 32 000 37 200 32 000

Northern Territory Government Death and Invalidity Scheme 52 800 41 200 52 800 41 200

Statutory schemes* 52 000 44 700 52 000 44 700

2 408 434 2 098 831 2 408 434 2 098 831* The Statutory schemes comprise the superannuation liability for the Administrator and judges.

The values reported above are based on estimates of the size and timing of future benefit payments obtained through actuarial reviews conducted at three yearly intervals, that are updated on an annual basis. The Northern Territory Government and Public Authorities’ Superannuation Scheme, the Northern Territory Supplementary Superannuation Scheme, the Supreme Court Judges Pension Scheme, the Death and Invalidity Scheme, the Administrators Pension Scheme and the Legislative Assembly Members’ Superannuation Scheme are based on reviews carried out at 30 June 2007. The Northern Territory Police Supplementary Benefit Scheme and the Commonwealth Superannuation Scheme are based on reviews carried out at 30 June 2009.

Scheme InformationCommonwealth Superannuation Scheme (CSS) The benefits provided by the scheme include an employer-financed defined benefit and the members’ accumulation balances. The amount of retirement benefit is the sum of:



an employer-financed indexed pension;•

the accumulated value of productivity contributions (this can be •converted to a non-indexed pension); and

the accumulated value of member contributions.•

The employer-financed indexed pension is calculated as a percentage of final salary and discounted for early retirement before the maximum retirement age. The CSS was closed on 1 October 1986 to all new Territory employees except police who were eligible to join up until 1 January 1988.

Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS) The NTGPASS is a contributory lump sum superannuation scheme which was closed to new members from 10 August 1999. On retirement the following benefits are payable:

the members accumulation account; plus •

an accrued employer component.•

The accrued employer component is calculated as 2.5 per cent x total benefit points x benefit salary.

Northern Territory Supplementary Superannuation Scheme (NTSSS)The NTSSS is a non-contributory lump sum superannuation scheme which was closed to new members from 10 August 1999. The standard benefit is 3 percent of annual salary plus approved allowances on the last day of employment for each year of service since October 1988.

Northern Territory Government Death and Invalidity Scheme (NTDIS)The scheme provides death and disablement cover to all pubilc sector employees under Choice of Fund arrangements.

The Northern Territory Police Supplementary Benefit Scheme, Legislative Assembly Members Superannuation Scheme, Administrator and Judges Scheme are all pension based schemes.

The following schemes are included in the consolidated disclosures:

Commonwealth Superannuation Scheme •

Northern Territory Government and Public Authorities Superannuation •Scheme

Northern Territory Supplementary Superannuation Scheme •

Northern Territory Death and Invalidity Scheme •

Northern Territory Police Supplementary Benefit Scheme •

Legislative Assembly Members’ Superannuation Scheme •

Administrators Pension Scheme •

Supreme Court (Judges’ Pension) Scheme•

Note 29 (continued)


Note 29 (continued) 30 June 2009

30 June 2008

% %

Key assumptions Key assumptions as at balance date and for following year expense

Discount rate (gross of tax) 5.60 6.50

Salary rate 4.50 4.50

Expected return on scheme assets (net of tax) 6.00 6.00

Inflation (pensions) 2.50 2.50

Imputed cost of interest 6.50 6.25

Tax rate for employer contributions1 nil nil

Decrement rates

As per the last triennial review for each individual scheme

1 All employer contributions are untaxed. As such, no allowance has been made for contributions tax.

30 June 2009

30 June 2008

$000 $000

Balance sheet resultsNet liability

Defined benefit obligation 2 450 859 2 150 622

Contributions tax liability

Total defined benefit obligations 2 450 859 2 150 622

Scheme assets - 42 425 - 51 791

Deficit/(surplus) 2 408 434 2 098 831

Net liability/(asset) 2 408 434 2 098 831

Funded status Defined benefit obligations

Funded 42 425 51 791

Unfunded 2 408 434 2 098 831

Total 2 450 859 2 150 622

Scheme assets The Legislative Assembly Members Superannuation Scheme is the only scheme that holds assets and is therefore partly funded.

Fair value of scheme assets

Australian equities 14 044 16 939

Overseas equities 15 709 18 842

Fixed interest securities 11 168 14 284

Property 1 504 1 726

Total 42 425 51 791

Movement in net liability Net liability/(asset) in balance sheet at end of prior year 2 098 831 2 087 387

Expense recognised in operating statement (including other economic flows) 429 775 137 658

Actual employer contributions – benefits paid - 120 172 - 126 213

Net liability/(asset) in balance sheet at end of year 2 408 434 2 098 832



Note 29 (continued) 30 June 2009

30 June 2008

$000 $000

Operating resultsExpense

Employer service cost 73 922 75 797

Interest cost 133 730 127 131

Recognised actuarial (gains)/losses 222 123 - 65 270

Expense recognised 429 775 137 658

ReconciliationsFair value of scheme assets

Fair value scheme assets at end of prior year 51 791 57 063

Expected return on assets 3 107 3 424

Expected assets at year end 54 898 60 487

Actuarial gain/(loss) on assets - 12 473 - 8 696

Fair value scheme assets at year end 42 425 51 791

Reconciliation of actuarial (gain)/loss

Unrecognised actuarial (gain)/loss at end of prior year - 3 145 5 551

Actuarial gain/(loss) on assets - 12 473 - 8 696

Actuarial (gain)/loss on liabilities 222 123 - 65 270

Amount recognised during year in operating statement 222 123 - 65 270

Unrecognised actuarial (gain)/loss at end of year - 15 618 - 3 145

Expected return on assets

Fair value scheme assets at end of prior year 51 791 57 063

Average expected assets 51 791 57 063

Assumed rate of return 6.00% 6.00%

Calculated expected return on assets 3 107 3 424

The expected return on assets is 6 per cent, which is the long-term return expected for the class of investments held.

Actuarial gain/(loss) for year

Defined benefit obligations (net of tax, prior year assumptions) 2 206 371 2 162 531

Defined benefit obligations (net of tax, current assumptions) 2 408 434 2 098 831

Actuarial (gain)/loss for year due to assumptions - 202 063 63 700

Actuarial (gain)/loss for year due to experience - 20 060 1 570

Actuarial (gain)/loss for year - 222 123 65 270

30 June 2009

30 June 2008

30 June 2007

$000 $000 $000

HistoryThe history of experience adjustments is as follows:

Total defined benefit obligation at year end 2 450 859 2 150 622 2 144 450

Actual assets at year end 42 425 51 791 57 063

Deficit/(surplus) 2 408 434 2 098 831 2 087 387

Experience adjustment on liabilities - 20 060 1 570 - 139 870



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 30: Other Employee BenefitsCurrent

Accrued salaries 22 153 20 705 23 720 21 868

Recreation leave 128 879 115 918 139 925 125 892

Long service leave 135 245 126 771 146 629 137 553

Provision for employer superannuation contributions 10 024 13 053 10 132 13 086

Provision for workers compensation premiums 290 81 324 111

Workers compensation liability (a) 11 320 14 200 11 320 14 200

307 910 290 728 332 051 312 710

Non current

Recreation leave 57 871 47 029 59 972 48 357

Long service leave 50 187 34 329 57 503 40 985

Workers compensation liability (a) 49 448 43 506 49 448 43 506

157 506 124 864 166 923 132 848

Total other employee benefits 465 416 415 591 498 974 445 558

Workers compensation liability comprises:a) Work Health Act 51 700 48 500 51 700 48 500

COMCARE (Commonwealth Act) 9 068 9 206 9 069 9 206

60 768 57 706 60 769 57 706

Note 31: PayablesCurrent

Accounts payable 41 109 42 207 148 589 126 183

Accrued expenses 61 114 66 721 85 141 81 475

102 223 108 928 233 730 207 658

Non current

Accounts payable 1 058 1 058

1 058 1 058

Total payables 102 223 109 986 233 730 208 716




2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 32: Other LiabilitiesCurrent

Provisions:

Provision for current taxes 2 567 2 324 2 690 2 439

Provision for outstanding claims 4 161 1 106 74 838 64 134

Other provisions 240 195 240 195

Unearned revenue 24 604 30 033 115 418 118 663

31 572 33 657 193 186 185 432

Non current

Provisions:

Provision for outstanding claims 9 340 8 116 306 611 288 529

Other provisions 13 363 7 426 13 372 7 426

Unearned revenue 4 984 4 984

27 686 15 542 324 967 295 955

Total other non equity liabilities 59 259 49 200 518 153 481 387


Outstanding claims

Current Taxes Other

Outstanding claims

Current Taxes Other

$000 $000 $000 $000 $000 $000

Movements in provisions during the year were as follows:

Brought forward as at 1 July 2008 9 222 2 324 7 621 352 663 2 439 7 621

Effect of changes in assumptions 5 982 20 502 5 991

Increase in claims incurred/recoveries anticipated over the year

4 354 92 601

Payments - 1 068 - 85 588

Other movements 993 243 1 271 251

Balance at 30 June 2009 13 501 2 567 13 603 381 449 2 690 13 612

The outstanding claims predominantly relate to general claims and HIH claims originating from the workhealth system at the general government level and the total public sector level also includes outstanding claims held by the Territory Insurance Office.

Current taxes provisions largely relates to fringe benefits tax.

Other provisions predominantly relate to the construction industry’s portable long service leave benefits.



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 33: EquityEquity

Accumulated surplus/(deficit) (a) 799 808 933 541 1 683 678 1 675 335

Reserves (b) 3 950 731 2 274 043 3 066 861 1 532 249

Total equity 4 750 539 3 207 584 4 750 539 3 207 584

Accumulated Surplus/(Deficit)a) Balance at the beginning of the financial year 933 541 611 155 1 675 335 1 258 262

Current year surplus - 132 499 321 591 8 907 416 964

Transfers to reserves and other movements - 1 233 794 - 564 109

Balance at the end of the financial year 799 808 933 541 1 683 678 1 675 335

Reservesb) Balance at the beginning of the financial year 2 274 043 2 095 558 1 532 249 1 448 451

Movements through the year 1 676 688 178 485 1 534 612 83 798

Balance at the end of the financial year 3 950 731 2 274 043 3 066 861 1 532 249

Asset Revaluation ReserveBalance at the beginning of the financial year 1 170 416 1 107 232 1 208 374 1 137 430

Revaluations increments/(decrements) 1 532 380 75 037 1 534 080 82 796

Transferred from asset realisation reserve - 5 661 - 11 852 - 5 661 - 11 852

Balance at end of the financial year 2 697 135 1 170 416 2 736 793 1 208 374

Asset Realisation ReserveBalance at the beginning of the financial year 319 498 307 646 319 498 307 646

Transferred from asset revaluation reserve 5 661 11 852 5 661 11 852

Balance at end of the financial year 325 159 319 498 325 159 319 498

Investments in Publc Sector Entities Revaluation ReserveBalance at the beginning of the financial year 781 818 678 221

Movements in net assets of public sector entities 144 308 103 597

Balance at end of the financial year 926 125 781 818

Hedging ReservesBalance at the beginning of the financial year - 850 - 2 001

Movements through the year 531 1 150

Balance at end of the financial year - 319 - 850

Other ReservesBalance at the beginning of the financial year 2 311 2 459 5 228 5 376

Transferred to accumulated surplus/(deficit) - 148 - 148

Balance at end of the financial year 2 311 2 311 5 228 5 228



Total Public Sector

2008-09 2007-08

$000 $000

Note 34: CommitmentsCapital expenditure commitments a)

Capital expenditure commitments represent contracted capital expenditure with non-public sector entities additional to the amounts reported in the financial statements. These contracts are expected to require payment as follows:

Not later than one year 264 533 162 952

Later than one year and not later than five years 8 127 31 769

Later than five years

Total capital expenditure commitments 272 660 194 721

Capital commitments predominantly relate to the Government’s contracted commitments for capital works and Power and Water Corporation’s capital investment program.

Operating lease commitmentsb) Future non-cancellable operating lease commitments are payable as follows:



Later than five years 68 630 55 589

Total operating lease commitments 223 132 202 073

Finance lease commitments c) Future finance lease commitments not provided for in the financial statements represent future interest components relating to the Darwin Convention Centre and are payable as follows:



Later than five years 61 090 67 975

Total finance lease commitments 95 366 102 807

Other non cancellable contract commitmentsd) Other future commitments not provided for in the financial statements primarily represents non-cancellable purchase, lease and hire and, expenditure contracts expiring from 1 to 25 years. Other contracted commitments relate to grants and subsidies payable to health and education service providers and are payable as follows:



Later than five years 4 767 569 4 395 243

Total other non cancellable contract commitments 5 983 193 5 574 039

The most significant portion relates to gas purchase commitments including take-or-pay obligations under a 25-year gas sale agreement, the first supply of which is expected to commence at the end of September 2009.

Grant commitments e) Grant commitments not provided for in the financial statements primarily represents tied funding that must be applied to designated services or functions as follows:



Total grant commitments 203 401 168 711

These predominantly relate to programs funded by the Commonwealth which will be expended in 2009-10 and later years.


Note 35: Contingent Assets and LiabilitiesContingent AssetsA contingent asset is a possible asset that arises from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or an asset that is not recognised because it is not probable that the future economic benefits embodied in the asset will eventuate, or the asset does not possess a cost or other value that can be measured reliably.

Under the Crimes (Victims Assistance) Act, the Territory is entitled to recover monies from an offender equal to the amount of assistance, costs and disbursements paid to victims under the Act. However, due to the circumstances of offenders including being imprisoned for lengthy terms, declared bankrupt or unable to be located, it is probable that a significant proportion of the amounts owed are uncollectable. Therefore any contingent asset cannot be reliably quantified.

Contingent LiabilitiesA contingent liability is a liability that the Government may be called on to meet at some future date if a specified event should occur. Contingent liabilities of the Territory may arise out of a range of circumstances, the most common of which are indemnities and guarantees contained in agreements executed by the Territory. Contingent liabilities may also arise as a result of undertakings made by the Territory or as a result of legislation containing a guarantee or indemnity.

The Treasurer’s Directions (G2.5 – Guarantees and Indemnities) states that:

a guarantee is an undertaking on the part of the Territory to be •responsible for another's debt or contractual performance if that other person does not pay or perform; and

an indemnity is a written undertaking to compensate, protect or insure •another person or entity against future financial loss, damage or liability.

Agencies are required to maintain a register of contingent liabilities in accordance with the Treasurer’s Directions. In relation to the reporting of contingent liabilities, the Treasurer has determined a materiality threshold of $5 million.

Net Present Value (NPV) amounts referred to in this Schedule are calculated based on a discount factor of 5.6 per cent per annum. The discount rate is based on the published 10-year bond rate. In previous years the discount rate was the published 10-year bond rate plus a margin to reflect the Territory’s cost of funds and the uncertainties associated with contingent liabilities. The effect of using the government bond rate without a margin as the discount rate may result in the NPV fluctuating from year to year, however, the change in methodology is to ensure consistency and comparability with other long term liabilities (i.e. employee entitlements such as superannuation).



Details of estimated amounts of material contingent liabilities as at 30 June 2009 resulting from guarantees or indemnities granted by the Territory are presented as follows:

Material Quantifiable Contingent LiabilitiesEstimated

Quantifiable Contingent Liability as at 30 June 2009

Estimated Quantifiable

Contingent Liability as at 30 June 2008

$M NPV1 $M NPV2

Amadeus Basin to Darwin gas pipeline 52 48

Pine Creek/McArthur River electricity purchase agreements

65 73

Public Trustee common funds 35 33

Source: Northern Territory Treasury1 Future values discounted at a nominal 5.6 per cent discount rate2 Future values discounted at a nominal 6.5 per cent discount rate

Public Trustee common funds 1, 2, 3 and 4 are reported totalling $35 million as at 30 June 2009. Common fund 1, $21 million, is government guaranteed and audited at time of publication. Common fund 2, 3 and 4, totalling $14 million, are not guaranteed or audited until after the publication of this report.

As at the date of the report, no transaction or event of a material nature has occurred that would crystallise the contingent liabilities reported in this note.

Quantifiable Contingent LiabilitiesElectricity, Gas and Water SupplyThese contingent liabilities result from arrangements for the purchase and transportation of gas, and the purchase and sale of electricity by and for the Power and Water Corporation. Material contingent liabilities relating to these arrangements are reported below.

The Power and Water Corporation has been a government owned corporation (GOC) since 1 July 2002. Under the Government Owned Corporations Act, a GOC is not within the shield of the Crown and the obligations of a GOC are not guaranteed by the Territory except where the Treasurer specifically agrees to this. The following Territory commitments were given prior to the Power and Water Corporation (formerly the Power and Water Authority) becoming a GOC and will remain in place until the relevant contractual arrangements cease.

Amadeus Basin to Darwin Gas PipelineThe Territory has indemnified the financiers of the Amadeus Basin to Darwin Gas Pipeline Lease in relation to the residual value of the pipeline to be paid by the Power and Water Corporation on expiry or termination of the pipeline lease agreement.

Note 35 (continued)


Electricity and Gas Supply to Pine Creek and McArthur RiverThe Power and Water Corporation has entered into agreements for the provision of gas and wholesale supply of electricity for the Pine Creek region and the McArthur River Mine. The agreement for the supply of gas contains three indemnities relating to the Power and Water Corporation supplying non-conforming gas.

Although the Corporation’s total contingent liability is unquantifiable, a major portion of the value of the contingent liability is quantifiable, being the cost of overhauling turbine machinery, owned by the electricity producers, damaged by the provision of non-conforming gas. The Territory’s maximum exposure is equivalent to the net present value of lease and operating charges under the purchase agreements.

Under the Power and Water Corporation’s current operating practices, the contingent events relating to each of the above indemnities are within the Corporation’s control and are expected to be avoidable.

Statutory Contingent LiabilitiesPublic Trustee ActUnder section 97 of the Public Trustee Act, the Treasurer indemnifies the Common Funds against any deficiencies in money available to meet claims on it. The Common Funds are a repository for all moneys received by the Public Trustee on behalf of estates, trusts or persons, and earns interest. Money to the credit of the Common Funds is invested according to the directions issued by an Investment Board.

Although a material statutory contingent liability exists, the prospect of this contingent liability being called upon is considered low.

Unquantifiable Contingent LiabilitiesUnquantifiable contingent liabilities exist which could pose a risk to the Government’s financial projections.

TransportThe Territory also has contingent liabilities in this category that relate to indemnities and guarantees that have been provided in support of the Adelaide to Darwin railway project.

The AustralAsia Railway Corporation (AARC) and the Northern Territory and South Australian governments have entered into a concession arrangement for the Adelaide to Darwin railway on a build, own, operate and transfer-back basis.

Unquantifiable contingent liabilities of the Territory in relation to the Adelaide to Darwin railway project relate to the following:

joint guarantee of the obligations of the AARC;•

indemnities granted in relation to title over the railway corridor (title is •secure but the indemnity continues);

agreement to compensate in the case of early termination of the •project (where a termination event is caused by the Territory); and

indemnities in favour of the Commonwealth for its financial contribution.•

Note 35 (continued)



The Darwin Port Corporation has leased facilities at the Darwin Port to Asia Pacific Transport Pty Ltd, interfacing the port and the railway. There are contingent liabilities which arise out of the performance of the facilities.

AARC and the governments have comprehensive risk management procedures in place for all events that would give rise to liabilities.

The Northern Territory Government has entered into agreements for the relocation of fuel terminals from near the Darwin central business district to the East Arm industrial estate. The agreements provide for certain unquantifiable contingent liabilities to be provided to the developer of the new fuel terminal and an oil company. Government has put in place comprehensive risk management processes to address potential exposure.

Health and Community ServicesThe Territory has granted a series of health-related indemnities for various purposes including indemnities to specialist medical practitioners employed or undertaking work in public hospitals, indemnities provided to medical professionals requested to give expert advice on inquiries before the Medical Board and indemnities to midwives.

Although the risks associated with health indemnities are potentially high, the beneficiaries of the indemnities are highly trained and qualified professionals. The indemnities generally cannot be called upon where there is wilful or gross misconduct on the part of the beneficiary.

There are no reportable contingent liabilities in this category.

Government AdministrationWhere the Territory has invited the participation of private sector persons and Government officers on boards of Government owned or funded companies, the Territory may grant indemnities to the board members to cover them for any losses which may result from good faith actions.

These indemnities are generally consistent with cover available through Directors and Officers Insurance and the policy of issuing an indemnity rather than purchasing commercial insurance is in line with the Government’s self insurance arrangements.

In relation to corporations established in accordance with the Government Owned Corporations Act (GOC Act) an indemnity given by the Territory to board members is limited to actions arising from compliance with a direction issued by the shareholding minister or the portfolio minister pursuant to the GOC Act.

The resulting contingent liabilities are considered low risk as board members are professionals selected based on their expertise and knowledge. Further the indemnities are restricted to good faith actions only. These contingent liabilities are unquantifiable.

Indemnities are also granted to the Commonwealth and other entities involved in funding or sponsoring activities and programs initiated or undertaken by the Territory. Under the indemnities, the Territory generally

Note 35 (continued)


accepts liability for damage or losses occurring as a result of the activities or programs and acknowledges that, while the Commonwealth or another party has contributed financially or provided in-kind support, the Territory is ultimately liable for the consequences of the activity or program.

Although the resulting contingent liability may, depending on the activity undertaken, not always be low risk, the Territory’s financial exposure is no greater than would have been the case without funding or sponsorship assistance. These contingent liabilities are unquantifiable.

The Territory was engaged in a number of legal proceedings and disputes at 30 June 2009. Due to the wide variety and nature of these cases and the uncertainty of any potential liability, no value can be attributed to these cases. To attempt to attribute a value to these cases also has the potential to prejudice the outcome of the proceedings and disputes.

The Government has indemnified private sector insurers who provide workers compensation insurance in the Territory. The indemnity covers insurers for losses which arise as a result of acts of terrorism.

Except for the terrorism indemnity, which is unquantifiable, there are no reportable contingent liabilities in this category.

FinanceThe Territory’s financial management framework is underpinned by centralised banking arrangements. The sole provider of banking-related services has been granted indemnities under the whole of government banking contract. The contingent liability resulting from the indemnities is unquantifiable.

In March 2009, as part of its response to the global financial crisis, the Commonwealth announced that, for a fee and subject to certain conditions, it would guarantee state and territory Australian dollar denominated debt issuances. The voluntary guarantee is structured in a similar way to the wholesale funding guarantee provided to banks. This will assist states to access the debt market and allow them to complete their borrowing programs in order to fund infrastructure projects.

Under the arrangement, the states and territories are to provide the Commonwealth with a counter-indemnity that entitles the Commonwealth to seek recovery from states which have triggered the guarantee and would indemnify the Commonwealth against actions taken as a result of the guarantee. The likelihood of the Territory triggering the guarantee is very low.

There are no reportable contingent liabilities in this category.

Property and Business ServicesAgreements for leases or licences of property, plant or equipment generally contain standard indemnity provisions, similar to those commonly found in commercial leases generally, covering the lessor or licensor for any losses suffered as a result of the lease or licence

Note 35 (continued)



arrangement. The contingent liabilities resulting from the indemnities are unquantifiable.

There are risks in relation to the Darwin Waterfront Development project that may result in payments being made by the Territory. These risks relate to discriminatory changes in law, native title and environmental clean-up costs. The amount of these risks is unable to be estimated accurately but provision has been made in the forward estimates for environmental clean-up costs and it is within the Territory’s discretion whether to make a discriminatory change in law.

There are no other reportable contingent liabilities in this category.


2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Note 36: Cash Flow ReconciliationOperating result - 132 499 321 591 8 907 416 964

less: Other economic flows – included in operating result 319 709 18 893 232 635 63 080

Gain (loss) on sale of non financial assets - 5 663 - 6 913 - 7 491 - 7 923

Net swap interest revenue - 4 4

Bad and doubtful debt 4 683 6 051 11 584 7 307

Net actuarial gains (losses) 230 218 - 65 270 230 218 - 65 270

Revaluations and asset impairment 90 471 85 025 - 1 671 128 962

equals: Net operating balance 187 210 340 484 241 543 480 044

less: Non cash items included in net operating balance

Depreciation and amortisation 195 627 178 919 277 904 247 051

Increase in employee related provisions 144 981 108 038 142 778 106 141

Assets acquired below fair value - 153 - 77 - 14 386 - 13 171

Assets donated 3 028 2 811 2 811

Gains and losses - 1 - 6 - 92 - 86

Write offs 9 4 9 4

less: Changes in assets and liabilities

Change in inventories 697 718 - 5 050 6 446

Increase in payables and borrowings - 226 352 - 159 702 - 168 696 - 179 064

Increase in receivables and investments 261 413 128 480 225 132 127 489

equals: Cash flows from operating activities 566 459 599 670 699 141 777 667

For the purposes of the Cash Flow Statement, cash includes cash at bank, cash on hand, and cash on call or short term deposit. A reconciliation of closing cash balances to the statement of cash flows for the total public sector is as below:

Cash at beginning of year 327 627 253 762

Net increase/(decrease) in cash held as per Cash Flow Statement - 10 289 73 865

Cash at end of year 317 338 327 627


Note 37: Financial Instruments and Risk Management

Financial Risk Management Objectives and Policiesa) Exposure to financial risk arises in the normal course of government activity. The Territory’s risk management strategy is incorporated into the Territory’s fiscal strategy. The fiscal strategy provides a sound financial management framework to ensure sustainable service provision, continued capital investment, reducing debt levels and a competitive tax environment that supports economic growth. Further reference to the fiscal strategy can be found in the Overview chapter of this Treasurer’s Annual Financial Report and the 2009-10 Budget Paper No. 2.

The Central Holding Authority (CHA), Northern Territory Treasury Corporation (NTTC), Power and Water Corporation (PWC) and the Territory Insurance Office (TIO) are the entities that hold complex financial instruments. NTTC manages the investments and borrowings of the CHA and reports to the NTTC Advisory Board. PWC and TIO have their own risk management policies and report to their Boards.

Categorisation of Financial Instrumentsb) The following table discloses the Territory’s financial assets and financial liabilities by category.

2009 2008

$000 $000

Financial assets


Fair value through profit and loss (FVTPL):

Held for trading 488 824 479 327

Designated as at FVTPL 395 910 454 024

Held-to-maturity investments 486 683 521 367

Loans and receivables 796 744 829 757

Available-for-sale financial assets 6 304 7 432

Financial liabilities

Fair value through profit and loss (FVTPL):

Held for trading 995 505

Designated as at FVTPL 253 186 557 992

Amortised cost 3 206 183 2 800 696

Market Riskc) Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate, price risk and currency risk.

Interest Rate Risk i) Interest rate risk is the risk of financial loss and/or increased cost due to adverse movements in the values of financial assets and liabilities as a result of changes in interest rates. The interest rate exposure arises from unmatched maturity patterns and to manage this exposure and for



hedging purposes certain Territory controlled entities enter into interest rate swap agreements.

Interest rate swaps is a transfer of interest rate obligations, where the agreement is to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Territory to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The notional principal amounts represent the contract or face value of the swap. The notional amounts do not represent the amount exchanged by the parties to the contract. The Territory had interest rate swap agreements at the end of the financial year, with a notional amount of $69.7 million (2008: $121.8 million).

Sensitivity AnalysisAssuming the financial assets and liabilities at 30 June 2009 were to remain until maturity or settlement without any action by the Territory to alter the resulting interest rate risk exposure, a change in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on the Territory’s profit or loss and equity.

Profit or Loss and Equity

100 Basis Points Increase

100 Basis Points Decrease

$000 $000

30 June 2009

Financial assets – cash at bank 3 173 - 3 173

Financial assets – receivable loans 1 253 - 1 253

Financial liabilities – borrowings

Net sensitivity 4 426 - 4 426

30 June 2008

Financial assets – cash at bank 3 276 - 3 276

Financial assets – receivable loans 1 356 - 1 356

Financial liabilities – borrowings

Net sensitivity 4 632 - 4 632

Price Risk ii) The Territory is exposed to price risk as the Territory hold units in unit trusts, price risk arises due to the changes in the market value of the units as advised by respective fund managers.

Price risk is managed through the use of strictly monitored allocation limits for units held in each class of managed funds. The Territory invests in a diverse range of managed funds thereby limiting the impact of any one underlying variable affecting unit prices.

Returns achieved by appointed fund managers are continuously monitored and compared to returns earned by a suitable peer group of other professional fund managers.

Note 37 (continued)


Sensitivity AnalysisThe analysis below demonstrates the impact of a movement in prices of units held in unlisted unit trusts. It is assumed that any relevant price change occurs as at reporting date.

Price Risk Sensitivity Analysis2009 2008

Change in Value

Impact on Profit

Impact on Equity

Impact on Profit

Impact on Equity

% $000 $000 $000 $000

Upside

Equities 10 30 029 30 029 26 737 26 737

Property securities 10 4 376 4 376 5 579 5 579

Interest bearing 1 2 155 2 155 3 075 3 075

36 560 36 560 35 391 35 391

Downside

Equities - 10 - 30 029 - 30 029 - 26 737 - 26 737

Property securities - 10 - 4 376 - 4 376 - 5 579 - 5 579

Interest bearing - 1 - 2 155 - 2 155 - 3 075 - 3 075

- 36 560 - 36 560 - 35 391 - 35 391

Currency Riskiii) Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

Foreign Exchange RiskForeign exchange risk is the risk of financial loss due to adverse movements in foreign exchange rates. The Territory’s exposure to foreign exchange risk arises when certain borrowings are denominated in foreign currencies or where the Territory has transactional currency exposures arising from purchases in a foreign currency. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

BorrowingsTo remove the currency exposure on borrowings they are fully hedged by way of cross currency interest rate swaps at initiation of the borrowing transaction. Cross currency interest rate swaps allow the Territory to raise long-term borrowings in foreign currencies and effectively swap them into Australian dollar fixed interest rates. All the cross currency interest rate swaps are designated as cash flow hedges.

By using cross currency interest rate swap contracts, the Territory agrees to exchange specified principal and interest foreign currency amounts at an agreed future date at a specified exchange rate, thereby enabling the Territory to mitigate the risk of adverse movements in foreign exchange rates. The quantum and maturity profile of the cross currency interest rate swaps are reflected in the Liquidity and Interest rate table shown under Liquidity Risk below.

Note 37 (continued)



Capital PurchasesIn the prior financial year in order to protect against exchange rate movements and to manage the cost of construction, the Territory entered into forward exchange contracts to purchase US dollars. These contracts were hedging highly probable forecast payments timed to mature, including rollover strategy, when payments were scheduled to be made.

Buy US$/Sell Aus$ June 2009 June 2008 June 2009 June 2008

$ $ Avg exch rate Avg exch rate

Maturity < 12 months 7 696 413 0.7624

Maturity > 12 months

Total 7 696 413 0.7624

Credit Riskd) Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Territory. The Territory has adopted a policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.

The Territory’s maximum exposure to credit risk is the carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, without taking account of the value of any collateral or other security obtained.

Receivablesi) In relation to trade receivables, the Territory has a minimal concentration of credit risk as it undertakes transactions with a large number of customers and counterparties. The Territory is not materially exposed to any individual customer. There are no major concentrations of credit risk on service debtors due from customers within particular industries. Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below.

Note 37 (continued)


Note 37 (continued)

2008-09Aging of

Receivables1

Aging of Impaired Receivables2

Net Receivables

$000 $000 $000

Not overdue 145 454

Overdue for less than 30 days 13 317 678

Overdue for 30 to 60 days 1 365 266

Overdue for more than 60 days 14 072 12 864

Total 174 208 13 808 160 400

Reconciliation of the allowance for impairment losses:

Opening 9 823

Written off during the year 798

Recovered during the year

Increase/(decrease) in allowance recognised in profit or loss 4 781

Total 13 806

2007-08Aging of

ReceivablesAging of Impaired

ReceivablesNet

Receivables

$000 $000 $000

Not overdue 163 463

Overdue for less than 30 days 7 128

Overdue for 30 to 60 days 2 394 603

Overdue for more than 60 days 11 748 9 220

Total 184 733 9 823 174 910

Reconciliation of the allowance for impairment losses:

Opening 9 907

Written off during the year

Recovered during the year

Increase/(decrease) in allowance recognised in profit or loss - 84

Total 9 823 1 Aging analysis is presented at the total public sector, which includes service receivables of Power and Water Corporation and are

generally 21 day terms. This also includes premium insurance receivables of Territory Insurance Office.

2 The allowance for impairment losses represents the amount of receivables that are likely to be uncollectable and are considered doubtful. The collectability of receivables is reviewed regularly, and part of this process is to assess, at reporting data, whether an allowance for impairment loss is required.

Advances Paidii) Advances paid refer to loans motivated by policy considerations rather than for liquidity management purposes. At reporting date there were no significant concentrations of credit risk.

Loansiii) Loans are mainly those provided by the Territory Insurance Office (TIO). The credit risk is largely associated to their retail loan assets including securitised loans which are managed through established credit policies with regular monitoring. The majority of the TIO loans are home loans



where there is a concentration of risk as 92 per cent of the loans are to Northern Territory residents.

All loan arrears are managed on a daily basis. The securitisation loans are originated by TIO but are then assigned to an external entity for cash consideration, but are still recognised in TIO’s balance sheet. All cash flows of the loan are passed on to the external entity. TIO takes out mortgage insurance contracts for all loans under the securitisation program to cover the risk of borrowers defaulting on their loan repayments. Although the credit risk associated with these loans is insured with a third party, there is the residual the Territory may not be eligible in some exceptional cases to seek recovery under the policy. The maturity analysis of these loans are embedded in the liquidity tables on pages 97 and 98.

Securitiesiv) The Territory’s dealings in physical instruments and/or derivative financial instruments are transacted only with counterparties possessing strong credit rating criteria as determined by the Standard and Poor’s Rating Group. In addition, derivative financial instruments are only transacted with counterparties that have signed an International Swap and Derivatives Association Master Agreement with the Territory.

Liquidity Riske) Liquidity risk is the risk of financial loss and/or increased costs due to unanticipated events or errors in cash flow forecasts which result in additional borrowing costs, reduced investment income or an inability to meet financial or operational commitments as they fall due. This is managed by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.

Liquidity risk is managed for the day-to-day operations, short-to-medium term and for the long term. NTTC predominantly assists the Territory with management of liquidity risk on a day to day basis, involving the use of cash flow forecasts and communication with the other controlled entities as they are required to advise NTTC of unusually large payments that are to occur. This monitoring allows the Territory to identify potential liquidity issues and also assists in projecting potential investment opportunities.

The Territory’s Budget is a five-year projection of the Territory’s financial position which also outlines the Territory’s fiscal strategy incorporating the medium-term fiscal objectives and financial targets. The fiscal strategy assists in protecting against a liquidity problem in the future.

The following tables detail the Territory’s remaining contractual maturity for its financial assets and financial liabilities.

Note 37 (continued)


Note 37 (continued)

Fixed Interest Rate

2008-09 LiquidityVariable Interest

Less than a Year

1 to 5 Years

More than 5 Years

Non Interest Bearing Total

Weighted Average

$000 $000 $000 $000 $000 $000 %

Cash and deposits 194 575 121 656 1 107 317 338 3.00


Advances 125 045 231 125 276 4.86

Investments loans and placements

961 924 218 756 671 25 423 1 206 774

Unit trust investments1 631 934 631 934

Derivative financial assets

Interest rate swaps 5 5

Embedded derivative 1 429 1 429


Total financial assets 951 554 1 083 811 218 756 671 238 445 2 493 237

Deposits held 146 366 286 417 27 092 19 456 479 331

Payables 233 730 233 730

Advances 5 178 269 873 275 051 4.67

Borrowings 592 148 1 655 371 481 010 2 728 529

Finance lease liabilities 6 723 34 783 142 685 184 191

Derivative financial liabilities

Interest rate swaps 1 245 - 12 1 233

Foreign currency contracts

Total financial liabilites 751 660 1 976 559 920 660 253 186 3 902 0651 Unit Trust Investments include a mix of interest bearing investments and non-interest-bearing investments (equity and securities).

Refer to Price Risk for further analysis.



Note 37 (continued)

Fixed Interest Rate

2007-08 LiquidityVariable Interest

Less than a Year

1 to 5 Years

More than 5 Years

Non Interest Bearing Total

Weighted Average

$000 $000 $000 $000 $000 $000 %

Cash and deposits 327 221 406 327 627 6.50


Advances 135 593 49 173 171 135 986 8.77

Investments loans and placements

675 039 410 248 36 221 35 684 1 157 192

Unit trust investments 691 177 691 177

Derivative financial assets

Interest rate swaps 1 324 1 324

Embedded derivative 1 836 1 836

Other financial assets 39 643 39 643

Total financial assets 1 153 991 675 088 410 421 36 392 343 622 2 619 514


Payables 127 245 127 245

Advances 17 538 75 645 422 259 515 442 6.33

Borrowings 447 033 1 754 173 1 357 535 25 000 3 583 741

Finance lease liabilities 99 673 3 756 18 564 70 542 192 535 6.69

Derivative financial liabilities

Interest rate swaps 505 505

Foreign currency contracts 1 442 1 442

Total financial liabilites 99 673 468 327 1 848 382 1 850 336 584 939 4 851 657

1 Unit Trust Investments include a mix of interest bearing investments and non-interest-bearing investments (equity and securities). Refer to Price Risk for further analysis.


f) Net Fair ValueThe carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their respective net fair values with the exception of the following:

2009 2008

Total Carrying Amount

Net Fair Value

Total Carrying Amount

Net Fair Value

$000 $000 $000 $000

Financial assets

Local government authorities – credit foncier loans

467 472 831 781

Total financial assets 467 472 831 781

Financial liabilities

Borrowings and advances

Wholesale market

Fixed interest securities 1 832 483 1 920 288 1 654 399 1 616 468

Floating rate notes 199 999 205 777

Promissory notes 49 313 49 523

Retail market

Territory bonds 170 031 173 937 170 517 166 179

Migration linked bonds 1 250 1 259 10 906 11 058

Commonwealth

Credit foncier loans 264 926 229 522 269 873 207 308

Total financial liabilities 2 318 003 2 374 529 2 305 694 2 206 790

The fair values of financial instruments disclosed above are related to NTTC and are determined on the following basis:

the fair value of cash and non-interest-bearing monetary financial assets •and liabilities approximate their carrying value, which is defined as their historical cost; and

the fair value of other monetary financial assets and liabilities is based on •discounting the expected future cashflows by applying current market interest.

Note 38: Events Subsequent to Reporting DateIn September 2009, the High Court of Australia considered an appeal by a taxpayer against an assessment made by the Northern Territory for stamp duty. The taxpayer’s appeal was allowed with legal costs.

In 2007-08 the Territory refunded to the taxpayer the value of the stamp duty assessed plus interest. The taxpayer’s legal costs could not be determined reliably at the date of signing this statement and, accordingly, no provision has been recognised.

Note 37 (continued)



Note 39: Remuneration of AuditorsWith the exception of a small number of consolidation entities, audit services within the reporting entity are provided by the Auditor-General and are predominantly funded through appropriation. The total cost of these services totalled $3.4 million (2008: $3.3 million).

Note 40: Write-Offs, Postponements, Waivers, Ex Gratia Payments and Gifts – Total Public Sector

2008-09 No. 2007-08 No.

$000 $000

1. WRITE-OFFS, POSTPONEMENTS AND WAIVERS UNDER THE FINANCIAL MANAGEMENT ACT

2 738 560

Amounts written off, postponed, waived by Treasurer 1 665 16 322 63

Irrecoverable money written off 1 041 10 190 35

Crimes compensation debts

Taxation debts 28 2

Employee debts 10 1

Government services debts 917 1 167 33

Other 86 6 23 2

Losses or deficiencies of money written off

Waiver of right to receive or recover money 624 6 137 30

Crimes compensation debts

Taxation debts 492 3 137 30

Government services debts

Other 132 3

Amounts written off, postponed, waived by delegates 1 073 2 022 238 559

Irrecoverable money written off 603 1 467 177 487

Losses or deficiencies of money written off 7 19 2 20

Value of public property written off 463 536 51 46

Waiver of right to receive or recover money 8 6

2. GIFTS1 327 21 310 22

Office furniture 1 4 1 6

Computer and other electronic equipment

Vehicles 317 15 295 13

Other 10 2 14 3

3. EX-GRATIA PAYMENTS 48 4 235 3

4. WRITE-OFFS, POSTPONEMENTS AND WAIVERS AUTHORISED UNDER OTHER LEGISLATION

51 7

Details of write-offs, postponements and waivers approved under the Financial Management Act are reported by agencies in their financial statements.

1 Agency valuations at time of gifting. Where one recipient has received more than one gift covering various categories the gift has been counted in the category which has the highest value item.


Note 41: Details of Controlled Entities at Reporting DateTotal Public Sector

Non Financial Public SectorGeneral GovernmentAboriginal Areas Protection AuthorityAuditor-General’s OfficeAustralAsia Railway Corporation3

Batchelor Institute of Indigenous Tertiary Education3

Central Holding AuthorityConstruction Division1

Darwin Waterfront Corporation3

Data Centre Services1

Department of Business and EmploymentDepartment of the Chief Minister Department of Education and TrainingDepartment of Health and FamiliesDepartment of JusticeDepartment of the Legislative AssemblyDepartment of Local Government and HousingDepartment of Natural Resources, Environment, the Arts and SportDepartment of Planning and InfrastructureDepartment of Regional Development, Primary Industry, Fisheries and ResourcesDesert Knowledge Australia3

Government Printing Office1

Land Development CorporationNatural Resource Management Board3

Nominal Insurer Fund3

Northern Territory Electoral CommissionNorthern Territory Legal Aid Commission3

Northern Territory Major Events Company Pty Ltd3

Northern Territory Police, Fire and Emergency ServicesNorthern Territory TreasuryNT Build Statutory Corporation3

NT Fleet1

NT Home Ownership1

Office of the Commissioner for Public EmploymentOmbudsman’s OfficeTerritory Discoveries1

Territory Wildlife Parks1

Tourism NTPublic Non Financial Corporations Darnor Pty Ltd3

Darwin Bus Service1

Darwin Port Corporation1

Gasgo Pty Ltd3

Indigenous Essential Services Pty Ltd3

Power and Water Corporation2,3

Public Financial Corporations Northern Territory Treasury Corporation1

Territory Insurance Office3

1 Government business divisions2 Government owned corporation3 Non budget sector entity



Note 42(a): General Government Sector Budgetary Information

2008-09 Actual

2008-09 Original Budget

General Government Sector Operating Statement (Audited) (Unaudited) Variance Note

$000 $000 $000

REVENUE

Taxation revenue 404 829 400 036 4 793 1

Current grants 3 112 725 2 869 716 243 009 2

Capital grants 131 296 166 290 - 34 994 2

Sales of goods and services 167 719 131 496 36 223 3

Interest income 79 064 45 354 33 710 4

Dividend and income tax equivalent income 25 096 46 089 - 20 993 5

Other 266 249 119 137 147 112 6

TOTAL REVENUE 4 186 978 3 778 118 408 860

less EXPENSES

Employee expenses 1 408 117 1 344 510 63 607 7


Superannuation interest cost 133 730 131 288 2 442

Other superannuation expenses 149 711 120 223 29 488 7

Depreciation and amortisation 195 627 183 270 12 357 8

Other operating expenses 962 270 948 301 13 969 9

Interest expenses 135 400 138 041 - 2 641


Current grants 669 639 570 297 99 342 10

Capital grants 227 509 163 384 64 125 11

Subsidies and personal benefit payments 117 423 68 087 49 336 10

TOTAL EXPENSES 3 999 769 3 667 401 332 368

equals NET OPERATING BALANCE 187 210 110 717 76 493

plus Other economic flows – included in operating result - 319 709 44 710 - 364 419 12

equals OPERATING RESULT - 132 499 155 427 - 287 926

plus Other economic flows - other non-owner movements in equity 1 675 455 55 961 1 619 494 13


1 542 955 211 388 1 331 567

NET OPERATING BALANCE 187 210 110 717 76 493


Purchases of non financial assets 448 534 447 137 1 397

Sales of non financial assets - 41 538 - 72 128 30 590 14

less Depreciation 195 627 183 270 12 357

plus Change in inventories 536 536

plus Other movements in non financial assets - 2 876 - 2 876

equals Total net acquisition of non financial assets 209 028 191 739 17 289

equals FISCAL BALANCE - 21 818 - 81 022 59 204


42(a) Notes:The $4.8 million increase in taxation revenue from the May 2008 Budget is related to higher economic 1. activity in the Territory and comprised an increase in payroll tax revenue, stamp duty collections and taxes on insurance, partly offset by lower gambling taxes.Current and capital grants and have increased by $208 million since May 2008, due to:2.

increased Specific Purpose Payments and National Partnership agreements of $366.4 million largely –as a result of increased funding for housing, health, education and roads; offset by a reduction in GST revenue of $158.4 million due to the national economic slowdown –affecting consumption growth and resulting in a reduced national GST pool.

Sales of goods and services has increased by $36.2 million due to increases across various agencies 3. including:

hospital cross border and other patient revenue of $10.2 million; –new arrangements for remote public housing resulted in revenue of $7 million, offset by grants –provided to shires for the provision of property management services; increased NT Build scheme contributions $3.4 million due to higher levels of construction than –expected also resulting in higher scheme liabilities; and$15.6 million comprising small increases across a number of agencies. –

Interest income has increased by $33.7 million since budgeted predominantly due to:4. a change in accounting treatment as a result of the introduction of AASB 1049 resulting in the –separate identification of $27.9 million reinvested distributions within the Conditions of Service Reserve and Medium Term Investment Fund. Previously this has been included within the capital value of investments; and higher than budgeted cash balances. –

Dividend and income tax equivalents is less than budgeted by $21 million due to lower than anticipated 5. income tax equivalents by the Power and Water Corporation and Territory Insurance Office.Other revenue has increased by $147.1 million, due largely to increased royalty income of $135.4 million 6. resulting from increases in both price and volume of commodities subject to pre-existing contract provisions.Employee and superannuation expenses have increased by $93.1 million, due to higher enterprise 7. bargaining outcomes and increased staffing levels especially in key service delivery personnel to support additional Commonwealth and Territory funded initiatives.Depreciation and amortisation expenses has increased by $12.4 million due to increased levels of 8. infrastructure investment resulting in higher amounts of capitalised assets.Other operating expenses has increased by $14 million since May 2008 in line with increased revenue 9. across agencies, including to support additional Commonwealth and Territory funded initiatives.Current grants and subsidies is $148.7 million higher than budgeted, largely due to the on-passing of 10. higher Commonwealth grants.Capital grants is $64.1 million higher than budgeted, predominantly due to a capital contribution to 11. Power and Water Corporation of $20 million, a grant to Charles Darwin University for the Palmerston Sporting Complex of $33 million together with other increases associated with additional Commonwealth funding.This largely represents the actuarial loss for the year, due to a movement between years in the discount 12. bond rate used for valuing the Territory’s superannuation liabilities, as required by accounting standards. Additionally, this also incorporates the unrealised fall in market value of the Conditions of Service Reserve as a result of the recent volatility in financial markets. As at 31st August 2009, a large proportion of this unrealised loss had been recovered (note 16).This represents the increase in net worth held by the General Government sector in government trading 13. entities and the increase in the Territory’s non-financial asset base following an upward revaluation of roads and bridges and urban and remote rental properties and dwellings.Sales of non financial assets is $30.6 million lower than budgeted predominantly due to revised timing of 14. land sales and lower than originally anticipated sales from government fleet auctions.



Note 42(b): General Government Sector Budgetary Information

General Government Sector Balance Sheet

2008-09 Actual

(Audited)


(Unaudited) Variance Note

$000 $000 $000

ASSETS

Financial assets

Cash and deposits 159 504 48 713 110 791 1

Advances paid 128 949 186 191 - 57 242 2

Investments, loans and placements 933 941 853 538 80 403 1

Receivables 122 353 108 408 13 945 3

Equity

Investments in other public sector entities 1 346 352 1 224 589 121 763 4



Total financial assets 2 691 198 2 421 439 269 759


Inventories 8 799 7 905 894

Property, plant and equipment 7 076 064 5 494 916 1 581 148 5

Investment property 48 629 47 573 1 056

Intangible assets 126 368 - 242


Biological assets 22 22


Total non financial assets 7 153 593 5 553 474 1 600 119

TOTAL ASSETS 9 844 791 7 974 913 1 869 879

LIABILITIES

Deposits held 193 242 142 231 51 011 7

Advances received 252 011 281 800 - 29 789 8

Borrowing 1 613 669 1 709 726 - 96 057 8

Superannuation 2 408 434 2 371 367 37 067 9

Other employee benefits 465 416 407 552 57 864 10

Payables 102 223 97 936 4 287 11

Other liabilities 59 259 18 121 41 138 12

TOTAL LIABILITIES 5 094 252 5 028 733 65 519

NET ASSETS/(LIABILITIES) 4 750 539 2 946 180 1 804 359

Contributed equity


Reserves 3 953 749 2 250 207 1 703 542 13

NET WORTH 4 750 539 2 946 180 1 804 359

NET FINANCIAL WORTH1 - 2 403 054 - 2 607 294 204 240

NET FINANCIAL LIABILITIES2 3 749 406 3 831 883 - 82 477

NET DEBT3 836 527 1 045 315 - 208 788 1 Net financial worth equals total financial assets minus total liabilities.

2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.



42 (b) Notes: The increase in cash and deposits and investments, loans and placements reflects the improvement in 1. the cash outcomes, in 2007-08 and 2008-09. Advances paid are lower than budgeted by $57.2 million predominantly due to advances in NT Home 2. Ownership being $34 million lower than anticipated and a debt to equity swap with TIO of $15 million. The increase in receivables largely relates to a higher GST receivable as a result of timing differences 3. associated with higher capital expenditure than anticipated. Investments in other public sector entities have increased by $121.8 million as a result of the increase in 4. net worth of government trading entities. Property, plant and equipment are $1.6 billion higher largely due to the upward revaluation of roads and 5. bridges and housing assets, together with an overall increased investment in Territory infrastructure and buildings.The increase in assets held for sale is largely due to the expected transfer of buildings and land in 6. 2009-10. The net $51 million increase in deposits held is largely due to an increase in cash invested on behalf 7. of government trading entities by the Central Holding Authority of $67.5 million offset by a reduction in interest bearing deposits. The net reduction in advances received and borrowings of $125.8 million relates predominantly to 8. a repayment of debt by the Central Holding Authority of $100 million and loan repayments by the Department of Local Government and Housing. The increase in superannuation liabilities of $37.1 million is predominantly due to the movement in the 9. discount bond rate (2009: 5.6 per cent, Budget: 5.7 per cent) in valuing the Territory's superannuation liabilities, as required by accounting standards.The increase to other employee benefits of $57.9 million is due to increased staffing levels to support 10. Commonwealth and Territory Government initiatives and higher enterprise bargaining outcomes affecting end of year salary accruals and leave provisions. Payables have increased by $4.3 million across various agencies due to changes in the estimated timing 11. of payments compared with the May 2008 estimate. Other liabilities have increased by $41.1 million across various agencies relating to revenue received in 12. advance from agency fees and charges, and increases in NT Build’s scheme provisions due to higher levels of construction than expected and the Nominal Insurer's outstanding claims provisions. The increase in reserves includes an increase to the asset revaluation reserve largely relating to the 13. upward revaluation of roads and bridges and urban and remote rental properties and dwellings.



Note 42(c): General Government Sector Budgetary Information

2008-09 Actual


General Government Sector Cash Flow Statement (Audited) (Unaudited) Variance Note

$000 $000 $000

Cash receipts from operating activitiesTaxes received 413 375 400 036 13 339 1

Receipts from sales of goods and services 161 595 131 864 29 731 2

Grants and subsidies received 3 267 962 3 036 006 231 956 3

Interest receipts 77 933 45 354 32 579 4

Dividends and income tax equivalents 52 111 59 216 - 7 105 5

Other receipts 259 141 111 069 148 072 6

Total operating receipts 4 232 116 3 783 545 448 571Cash payments for operating activitiesPayments for employees - 1 546 576 - 1 510 957 - 35 619 7

Payment for goods and services - 973 938 - 948 476 - 25 462 8

Grants and subsidies paid - 1 006 587 - 801 723 - 204 864 9

Interest paid - 137 806 - 138 064 258

Other payments - 749 - 749

Total operating payments - 3 665 657 - 3 399 220 - 266 437NET CASH FLOWS FROM OPERATING ACTIVITIES 566 459 384 325 182 134Cash flows from investments in non financial assetsSales of non financial assets 41 538 72 128 - 30 590 10

Purchases of non financial assets - 448 534 - 447 137 - 1 397

Net cash flows from investments in non financial assets - 406 995 - 375 009 - 31 986NET CASH FROM OPERATING ACTIVITIES AND

INVESTMENTS IN NON FINANCIAL ASSETS 159 464 9 316 150 148


2 829 - 25 2 854


13 303 24 888 - 11 585 11

NET CASH FLOWS FROM INVESTING ACTIVITIES - 390 864 - 350 146 - 40 718


Advances received (net) - 26 639 82 - 26 721 12

Borrowing (net) - 104 519 - 11 083 - 93 436 13

Deposits received (net) - 14 553 - 36 013 21 460 14

Other financing (net)

NET CASH FLOWS FROM FINANCING ACTIVITIES - 145 711 - 47 014 - 98 697

NET INCREASE/DECREASE IN CASH HELD 29 885 - 12 835 42 720

Net cash flows from operating activities 566 459 384 325 182 134

Net cash flows from investments in non financial assets - 406 995 - 375 009 - 31 986

CASH SURPLUS (+)/DEFICIT (-) 159 464 9 316 150 148Additional Information to the Cash Flow StatementCASH SURPLUS (+)/DEFICIT (-) 159 464 9 316 150 148Acquisitions under finance leases and similar arrangements


159 464 9 316 150 148

Future infrastructure and superannuation contributions/earnings2 - 23 871 - 23 871 15

UNDERLYING SURPLUS (+)/DEFICIT (-) 135 593 9 316 126 2771 Includes equity acquisitions, disposals and privatisations (net).



42(c) Notes:The $13.3 million increase in taxation received from the May 2008 Budget is related to higher economic 1. activity in the Territory and comprised of an increase in payroll tax revenue, stamp duty collections and taxes on insurance, partly offset by lower gambling taxes. Receipts from sales of goods and services has increased by $29.7 million due to increases across 2. various agencies including:

hospital cross border and other patient revenue; –new arrangements for remote public housing resulted in revenue, offset by grants provided to shires –for the provision of property management services; andincreases in NT Build’s scheme contribution collections due to higher levels of construction than –expected also resulting in higher scheme liabilities.

Grants and subsidies received has increased by $232 million since May 2008, due to:3. increased Specific Purpose Payments and National Partnership agreements of $390.4 million largely –as a result of increased funding for housing, health, education and roads also including receipt of grants raised as receivables last financial year; andoffset by a reduction in GST revenue of $158.4 million due to the national economic slowdown –affecting consumption growth and resulting in a reduced national GST pool.

Interest receipts has increased by $32.6 million since budgeted predominantly due to:4. a change in accounting treatment as a result of the introduction of AASB 1049 resulting in the –separate identification of $27.9 million reinvested distributions within the Conditions of Service Reserve and Medium Term Investment Fund. Previously this has been included within the capital value of investments; and higher than budgeted cash balances. –

Dividend and income tax equivalents receipts is less than budgeted by $7.1 million due to lower than 5. anticipated income tax equivalents by the Power and Water Corporation and Territory Insurance Office.Other receipts has increased by $148 million, due largely to increased royalty receipts of $135.4 million 6. resulting from increases in both price and volume of commodities subject to pre-existing contract provisions.Payments for employees has increased by $35.6 million, due to higher enterprise bargaining outcomes 7. and increased staffing levels especially in key service delivery personnel to support additional Commonwealth and Territory funded initiatives.Payment for goods and services has increased by $25.5 million since May 2008 in line with increased 8. receipts across agencies, to include supporting additional Commonwealth and Territory funded initiatives.Grants and subsidies paid is $204.9 million higher than budgeted, largely due to the on-passing of 9. higher Commonwealth grants, a capital contribution payment to Power and Water Corporation of $20 million and a grant payment to Charles Darwin University for the Palmerston Sporting Complex of $33 million.Sales of non financial assets is $30.6 million lower than budgeted predominantly due to revised timing of 10. land sales and lower than originally anticipated sales from government fleet auctions.The $11.6 million represents the investment of increased cash holdings.11. Advances received has decreased by $26.7 million predominantly due to the repayment of NT Home 12. Ownership loans to the Treasury Corporation.Borrowings received has decreased by $93.4 million due to the repayment of debt by the Central 13. Holding Authority.The $21.5 million movement in deposits received represents increased cash invested on behalf of 14. government trading entities by the Central Holding Authority.This is due to a change in accounting treatment as a result of the introduction of AASB 1049 resulting 15. in the separate identification of $23.9 million reinvested distributions within the Conditions of Service Reserve, previously this has been included within the capital value of investments.



Note 43: Supplementary Tables (Functional Information)General Government Total Pubic Sector

2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

General Government Sector and Total a) Public Sector Expenses by Function

General public services

Government superannuation benefits 2 751 2 919 2 751 2 919

Other general public services 114 485 104 570 115 598 104 570

Total general public services 117 236 107 489 118 349 107 489

Public order and safety

Police and fire protection services

Police services 204 710 175 404 204 710 175 404

Fire protection services 28 410 26 673 28 410 26 673

Law courts and legal services 112 995 107 219 112 995 107 219

Prisons and corrective services 92 780 86 255 92 780 86 255

Other public order and safety 7 429 7 728 7 429 7 728

Total public order and safety 446 324 403 279 446 324 403 279

Education

Primary and secondary education

Primary education 365 338 330 922 365 338 330 922

Secondary education 259 239 217 509 259 239 217 509

Primary and secondary education n.e.c. 2 535 2 535

Tertiary education

University education 115 124 115 124

Technical and further education 82 777 86 652 82 777 86 652

Tertiary education n.e.c. 29 634 31 724 29 634 31 724

Preschool education and education not definable by level

Preschool education 31 762 25 428 31 762 25 428

Special education 2 832 2 832

Other education not definable by level 870 870

Transportation of students

Transportation of non-urban school children 1 785 2 728 1 785 2 728

Transportation of other students 12 073 14 523 12 073 14 523

Education n.e.c. 1 532 661 1 532 661

Total Education 790 491 710 272 790 491 710 272

Health

Acute care institutions

Admitted patient services in acute care institutions 418 504 384 098 418 504 384 098

Non-admitted patient services in acute care institutions 105 879 66 484 105 879 66 484

Mental health institutions 13 352 8 727 13 352 8 727

Community health services

Community mental health services 24 926 22 755 24 926 22 755

Patient transport 30 934 23 937 30 934 23 937

Other community health services 157 506 142 886 157 506 142 886

Public health services 29 501 38 694 29 501 38 694


Note 43 (continued) General Government Total Pubic Sector

2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Pharmaceuticals, medical aids and appliances 26 202 25 462 26 202 25 462

Health research 5 982 13 615 5 982 13 615

Health administration n.e.c. 603 966 603 966

Total health 813 390 727 624 813 390 727 624

Social security and welfare

Welfare Services

Family and child welfare services 85 177 69 857 85 177 69 857

Welfare services for the aged 13 774 15 712 13 774 15 712

Welfare services for people with a disability 69 896 56 109 69 896 56 109

Welfare services n.e.c. 34 158 17 892 34 158 17 892

Social security and welfare services n.e.c. 1 653 1 474 1 653 1 474

Total social security and welfare 204 657 161 043 204 657 161 043

Housing and community amenities

Housing and community development

Housing 216 097 165 826 216 097 165 826

Aboriginal community development 99 507 83 552 99 507 83 552

Other community development 36 187 48 919 36 187 48 919

Water supply

Aboriginal community water supply 32 407 13 910 38 950 13 910

Other water supply 25 896 7 809 49 408 24 120

Sanitation and protection of the environment

Aboriginal community sanitation services 30 172 4 078 33 775 4 078

Other sanitation and protection of the environment 50 393 23 680 65 718 43 319

Other community amenities 2 240 3 050 2 240 3 050

Total housing and community amenities 492 900 350 823 541 883 386 774

Recreation and culture

Recreation facilities and services

National parks and wildlife 36 299 28 493 36 299 28 493

Recreation facilities and services n.e.c. 73 128 28 692 73 128 28 692

Cultural facilities and services 60 366 59 651 60 366 59 651

Broadcasting and film production 944 715 944 715

Recreation and culture n.e.c. 564 378 564 378

Total recreation and culture 171 301 117 929 171 301 117 929

Fuel and energy

Fuel affairs and services

Gas 927 927

Fuel affairs and services n.e.c. 15 293 6 657 15 293 6 657

Electricity and other energy

Aboriginal community electricity services 52 069 49 830 89 367 49 830

Other electricity 98 361 133 719 350 066 321 209

Other energy 989 210 1 158

Fuel and energy n.e.c. 2 129 985 2 129 985

Total fuel and energy 168 779 192 180 457 991 379 839




2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Agriculture, forestry, fishing and hunting

Agriculture 44 835 46 022 44 835 46 022

Forestry, fishing and hunting 19 740 15 761 19 740 15 761

Total agriculture, forestry, fishing and hunting 64 574 61 783 64 574 61 783

Mining and minerial resources other than fuels; manufacturing; and construction

Mining and mineral resources other than fuels 18 098 14 815 18 098 14 815

Construction 6 056 2 122 6 056 2 122

Total mining and minerial resources other than fuels; manufacturing; and construction

24 154 16 936 24 154 16 936

Transport and other communications

Road transport

Aboriginal community road transport services 476 263 476 263

Road maintenance 146 625 128 533 146 625 128 533

Road rehabilitation 1 600 2 104 1 600 2 104

Road construction 7 727 7 727

Road transport n.e.c. 32 031 14 660 36 048 14 660

Water transport

Urban water transport services 4 056 3 136 17 008 25 692

Non-urban water transport services 835 460 835 460

Rail transport

Non-urban rail transport freight services 4 201 4 419 4 201 4 419

Non-urban rail transport passenger services 84 84

Air transport

Aboriginal community air transport services 1 693 2 926 1 693 2 926

Other air transport services 6 629 200 6 629 200

Pipelines 106 11 686 11 640

Other transport

Multi-mode urban transit systems 16 294 15 899 16 294 15 899

Other transport n.e.c. 5 068 7 698 5 068 7 698

Communications 7 640 5 599 7 640 5 599

Total transport and other communications 234 873 186 086 263 528 220 177

Other economic affairs

Storage, saleyards, and markets 180 180

Tourism and area promotion 57 431 47 399 57 431 47 399

Vocational training 1 901 1 901

Labour and employment affairs

Other labour and employment affairs 49 324 30 938 49 324 30 938

Other economic affairs 58 599 41 505 58 599 41 505

Total other economic affairs 167 435 119 842 167 435 119 842

Other purpose

Public debt transactions 269 130 279 027 351 036 311 101

General purpose inter-government transactions 14 857 8 322 14 857 8 322



2008-09 2007-08 2008-09 2007-08

$000 $000 $000 $000

Natural disaster relief 13 736 15 522 13 736 15 522

Other purposes n.e.c. 5 931 70 818 135 340 214 062

Total other purpose 303 654 373 689 514 969 549 007

Total operating expenses 3 999 769 3 528 974 4 579 048 3 961 992

General Government Sector and Total Public Sector b) Assets by Function

For public policy purposes Government undertakes a centralised approach to investing in financial assets. In addition a number of Government’s non financial assets are multipurpose and utilised across a number of functions, particularly in remote areas of the Territory. Accordingly it is not considered that the carrying amounts of assets recognised in the respective general government and total public sector balance sheets can be reliably attributable to specific functions.



Note 44: Elimination Table – Operating Statement

2008-09 GG PNFC NFPS

Eliminations NFPS PFC TPS

Eliminations TPS

$000 $000 $000 $000 $000 $000 $000

REVENUE

Taxation revenue 404 829 - 5 353 399 476 - 1 278 398 197

Current grants 3 112 725 110 387 - 110 421 3 112 691 3 112 691

Capital grants 131 296 117 366 - 117 280 131 382 131 382

Sales of goods and services 167 719 453 307 - 54 163 566 863 160 007 - 12 125 714 745

Interest income 79 064 3 426 - 3 317 79 173 231 584 - 161 455 149 302

Dividend and income tax equivalent income

25 096 - 5 724 19 372 - 19 372

Other 266 249 53 794 - 9 909 310 134 5 633 - 1 494 314 272

TOTAL REVENUE 4 186 978 738 280 - 306 167 4 619 091 397 224 - 195 725 4 820 590

less EXPENSES

Employee expenses 1 408 117 69 654 - 12 1 477 759 17 918 - 1 097 1 494 580



Other superannuation expenses

149 711 9 576 - 5 683 153 604 2 847 - 45 156 406

Depreciation and amortisation 195 627 79 495 275 123 2 781 277 904

Other operating expenses 962 270 481 397 - 60 262 1 383 405 165 823 - 13 761 1 535 467

Interest expenses 135 400 35 520 - 3 317 167 603 178 453 - 161 455 184 601

Other property expenses 343 5 411 - 5 426 327 9 410 - 6 015 3 722

Current grants 669 639 - 48 283 621 356 2 743 624 099

Capital grants 227 509 62 - 120 307 107 264 107 264


117 423 5 991 - 62 138 61 275 61 275

TOTAL EXPENSES 3 999 769 687 106 - 305 428 4 381 446 379 975 - 182 373 4 579 048

equals NET OPERATING BALANCE 187 210 51 174 - 739 237 645 17 249 - 13 351 241 543

plus Other economic flows – included in operating result

- 319 709 149 933 - 169 776 - 62 859 - 232 635

equals OPERATING RESULT - 132 499 201 107 - 739 67 869 - 45 611 - 13 351 8 907


1 675 455 7 155 - 207 524 1 475 086 - 12 294 71 256 1 534 048


1 542 955 208 262 - 208 262 1 542 955 - 57 904 57 904 1 542 955

NET OPERATING BALANCE 187 210 51 174 - 739 237 645 17 249 - 13 351 241 543


Purchases of non financial assets 448 534 233 830 - 428 681 936 3 726 685 662

Sales of non financial assets - 41 538 - 1 045 - 42 583 - 39 872 - 82 455

less Depreciation 195 627 79 495 275 123 2 781 277 904

plus Change in inventories 536 - 5 394 - 4 859 - 4 859


- 2 876 17 260 14 385 14 385

equals Total net acquisition of non financial assets

209 028 165 156 - 428 373 757 - 38 928 334 829

equals FISCAL BALANCE - 21 818 - 113 982 - 311 - 136 111 56 176 - 13 351 - 93 286


Note 44: Elimination Table – Balance Sheet



Eliminations TPS

$000 $000 $000 $000 $000 $000 $000

ASSETS

Financial assets

Cash and deposits 159 504 112 106 - 108 954 162 656 184 708 - 30 027 317 338

Advances paid 128 949 128 949 264 804 - 268 477 125 276

Investments, loans and placements

933 941 933 941 3 004 196 - 2 097 995 1 840 142

Receivables 122 353 70 671 - 8 147 184 877 132 493 - 22 145 295 224

Equity


1 346 352 - 1 148 565 197 786 - 197 786

Investments – other 100 3 103 103


Total financial assets 2 691 198 182 779 - 1 265 666 1 608 311 3 586 202 - 2 616 431 2 578 082


Inventories 8 799 18 146 26 945 26 945

Property, plant and equipment 7 076 064 1 670 220 - 428 8 745 857 45 753 8 791 610

Investment property 48 629 48 629 48 629

Intangible assets 126 2 361 2 487 2 722 5 210

Assets held for sale 16 838 16 838 16 838


Other non financial assets 3 115 3 115 3 115

Total non financial assets 7 153 593 1 690 727 - 428 8 843 893 48 475 8 892 368

TOTAL ASSETS 9 844 791 1 873 507 - 1 266 094 10 452 204 3 634 677 - 2 616 431 11 470 450

LIABILITIES

Deposits held 193 242 392 - 108 954 84 680 449 508 - 35 685 498 503

Advances received 252 011 252 011 273 700 - 255 605 270 105

Borrowing 1 613 669 605 364 2 219 032 2 178 189 - 2 105 208 2 292 013

Superannuation 2 408 434 2 408 434 2 408 434

Other employee benefits 465 416 28 965 494 381 4 593 498 974

Payables 102 223 73 856 - 7 435 168 644 70 825 - 5 739 233 730

Other liabilities 59 259 15 936 - 712 74 482 460 076 - 16 406 518 153

TOTAL LIABILITIES 5 094 252 724 513 - 117 101 5 701 665 3 436 891 - 2 418 644 6 719 911

NET ASSETS/(LIABILITIES) 4 750 539 1 148 993 - 1 148 993 4 750 539 197 786 - 197 786 4 750 539

Contributed Equity 362 172 - 362 172 58 054 - 58 054

Accumulated surplus/(deficit) 799 808 766 685 - 428 1 566 066 117 612 1 683 678

Reserves 3 950 731 20 136 - 786 394 3 184 473 22 120 - 139 732 3 066 861

NET WORTH 4 750 539 1 148 993 - 1 148 993 4 750 539 197 786 - 197 786 4 750 539

NET FINANCIAL WORTH1 - 2 403 054 - 541 734 - 1 148 565 - 4 093 354 149 311 - 197 786 - 4 141 829

NET FINANCIAL LIABILITIES2 3 749 406 541 734 4 291 140 - 149 311 4 141 829

NET DEBT3 836 527 493 650 1 330 177 - 552 313 777 865

1 Net financial worth equals total financial assets minus total liabilities.

2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.




Note 44: Elimination Table – Cash Flow Statement



Eliminations TPS

$000 $000 $000 $000 $000 $000 $000


Taxes received 413 375 - 5 258 408 117 - 1 278 406 839

Receipts from sales of goods and services

161 595 428 684 - 53 122 537 157 158 625 - 13 816 681 966

Grants and subsidies received 3 267 962 218 575 - 218 352 3 268 185 3 268 185

Interest receipts 77 933 3 697 - 3 588 78 042 233 132 - 161 548 149 627

Dividends and income tax equivalents 52 111 - 24 436 27 675 - 27 675

Other receipts 259 141 46 627 - 10 155 295 613 8 068 - 1 213 302 468

Total operating receipts 4 232 116 697 584 - 314 910 4 614 790 399 826 - 205 530 4 809 085


Income tax equivalents paid - 24 285 24 285 - 10 122 10 122

Payments for employees - 1 546 576 - 80 632 5 272 - 1 621 936 - 22 381 2 379 - 1 641 937

Payment for goods and services - 973 938 - 442 740 53 407 - 1 363 271 - 134 817 13 980 - 1 484 107

Grants and subsidies paid - 1 006 587 - 6 053 227 701 - 784 939 - 2 743 - 787 682

Interest paid - 137 806 - 35 313 3 588 - 169 531 - 184 105 161 548 - 192 089

Other payments - 749 16 - 733 - 3 410 15 - 4 128

Total operating payments - 3 665 657 - 589 022 314 268 - 3 940 411 - 357 578 188 045 - 4 109 944

NET CASH FLOWS FROM OPERATING ACTIVITIES

566 459 108 562 - 642 674 379 42 247 - 17 485 699 141


Sales of non financial assets 41 538 1 045 42 583 39 872 82 455

Purchases of non financial assets - 448 534 - 233 830 428 - 681 936 - 3 726 - 685 662

Net cash flows from investments in non financial assets

- 406 995 - 232 785 428 - 639 353 36 147 - 603 207


159 464 - 124 224 - 214 35 026 78 394 - 17 485 95 934


2 829 2 829 24 024 - 18 745 8 108


13 303 13 303 - 173 529 21 573 - 138 653

NET CASH FLOWS FROM INVESTING ACTIVITIES

- 390 864 - 232 785 428 - 623 221 - 113 358 2 828 - 733 751


Advances received (net) - 26 639 - 26 639 - 20 311 41 594 - 5 357

Borrowing (net) - 104 519 140 496 35 977 - 36 758 - 37 297 - 38 078

Deposits received (net) - 14 553 359 - 16 041 - 30 234 74 406 23 583 67 756

Dividends paid - 214 214 - 17 485 17 485

Other financing (net) 22 849 - 22 849

NET CASH FLOWS FROM FINANCING ACTIVITIES

- 145 711 140 641 - 15 826 - 20 896 22 701 22 517 24 321

NET INCREASE/DECREASE IN CASH HELD

29 885 16 417 - 16 041 30 261 - 48 409 7 859 - 10 289

Net cash flows from operating activities 566 459 108 562 - 642 674 379 42 247 - 17 485 699 141


Note 44 (continued) GG PNFC NFPS

Eliminations NFPS PFCTPS

Eliminations TPS

$000 $000 $000 $000 $000 $000 $000


- 406 995 - 232 785 428 - 639 353 36 147 - 603 207

Dividends paid - 214 214 - 17 485 17 485

CASH SURPLUS (+)/(DEFICIT) (-) 159 464 - 124 438 35 026 60 909 95 934

Additional Information to the Cash Flow Statement

CASH SURPLUS (+)/(DEFICIT) (-) 159 464 - 124 438 35 026 60 909 95 934



159 464 - 124 438 35 026 60 909 95 934

Future infrastructure and Superannuation contributions/earnings2

- 23 871 - 23 871 - 23 871

UNDERLYING SURPLUS (+)/DEFICIT (-) 135 593 - 124 438 11 155 60 909 72 063





Note 44: Elimination Table – Operating Statement



Eliminations TPS

$000 $000 $000 $000 $000 $000 $000

REVENUE

Taxation revenue 394 666 - 4 869 389 797 - 1 181 388 616

Current grants 2 771 588 111 455 - 111 490 2 771 553 2 771 553

Capital grants 232 927 82 701 - 82 701 232 927 232 927

Sales of goods and services 168 796 432 899 - 48 910 552 785 154 065 - 11 251 695 599

Interest income 106 074 3 674 - 3 531 106 217 253 072 - 181 315 177 973

Dividend and income tax equivalent income

58 795 - 29 764 29 031 - 29 031

Other 136 612 39 495 - 5 799 170 308 6 485 - 1 426 175 367

TOTAL REVENUE 3 869 458 670 224 - 287 064 4 252 618 413 622 - 224 204 4 442 036

less EXPENSES

Employee expenses 1 246 014 60 908 - 9 1 306 914 16 566 - 945 1 322 535



Other superannuation expenses 136 520 8 206 - 5 090 139 636 2 634 - 36 142 234

Depreciation and amortisation 178 919 65 904 244 824 2 227 247 051

Other operating expenses 873 770 379 346 - 54 797 1 198 320 126 387 - 12 900 1 311 806

Interest expenses 151 820 30 556 - 3 531 178 845 184 725 - 181 315 182 255

Other property expenses 75 29 223 - 29 232 66 14 297 - 11 523 2 841

Current grants 540 099 - 52 714 487 385 2 627 490 012

Capital grants 173 454 95 - 82 701 90 848 90 848


101 171 2 885 - 58 776 45 280 45 280

TOTAL EXPENSES 3 528 974 577 124 - 286 849 3 819 249 349 462 - 206 719 3 961 992

equals NET OPERATING BALANCE 340 484 93 099 - 214 433 369 64 160 - 17 485 480 044

plus Other economic flows – included in operating result

- 18 893 - 3 842 - 22 735 - 40 345 - 63 080

equals OPERATING RESULT 321 591 89 257 - 214 410 634 23 815 - 17 485 416 964


179 279 806 - 89 849 90 236 - 10 250 3 920 83 906


500 870 90 063 - 90 063 500 870 13 565 - 13 566 500 870

NET OPERATING BALANCE 340 484 93 099 - 214 433 369 64 160 - 17 485 480 044


Purchases of non financial assets 349 197 180 123 529 320 2 020 531 340

Sales of non financial assets - 57 541 - 1 467 - 59 008 - 11 149 - 70 157

less Depreciation 178 919 65 904 244 824 2 227 247 051

plus Change in inventories 357 5 729 6 085 6 085


29 873 13 094 42 967 42 967

equals Total net acquisition of non financial assets

142 966 131 574 274 540 - 11 356 263 184

equals FISCAL BALANCE 197 518 - 38 475 - 214 158 829 75 516 - 17 485 216 860


Note 44: Elimination Table – Balance Sheet



Eliminations TPS

$000 $000 $000 $000 $000 $000 $000

ASSETS

Financial assets

Cash and deposits 129 619 95 689 - 92 913 132 395 233 118 - 37 886 327 627

Advances paid 154 637 154 637 303 269 - 321 920 135 986

Investments, loans and placements 1 033 868 1 033 868 2 882 235 - 2 064 573 1 851 529

Receivables 179 568 71 961 - 35 966 215 563 121 294 - 32 487 304 370

Equity


1 173 573 - 940 731 232 842 - 232 842

Investments – other 3 3 3


Total financial assets 2 671 266 167 652 - 1 069 610 1 769 308 3 539 915 - 2 689 709 2 619 514


Inventories 8 263 23 540 31 803 31 803

Property, plant and equipment 5 340 577 1 332 327 6 672 904 44 994 6 717 898

Investment property 47 220 47 220 36 937 84 157

Intangible assets 295 8 595 8 889 518 9 407

Assets held for sale 15 068 15 068 15 068


Other non financial assets 3 115 3 115 3 115

Total non financial assets 5 414 559 1 364 462 6 779 022 82 449 6 861 471

TOTAL ASSETS 8 085 825 1 532 115 - 1 069 610 8 548 330 3 622 363 - 2 689 709 9 480 985

LIABILITIES

Deposits held 207 794 33 - 92 913 114 914 375 101 - 59 269 430 747

Advances received 240 159 240 159 294 010 - 258 708 275 461

Borrowing 1 756 679 466 313 2 222 991 2 216 111 - 2 106 402 2 332 700

Superannuation 2 098 831 2 098 831 2 098 831

Other employee benefits 415 591 25 120 - 4 440 707 4 851 445 558

Payables 109 986 47 246 - 6 413 150 819 65 476 - 7 579 208 716

Other liabilities 49 200 52 672 - 29 549 72 323 433 972 - 24 908 481 387

TOTAL LIABILITIES 4 878 241 591 384 - 128 879 5 340 746 3 389 521 - 2 456 866 6 273 401

NET ASSETS/(LIABILITIES) 3 207 584 940 731 - 940 731 3 207 584 232 842 - 232 842 3 207 584

Contributed equity 356 549 - 356 549 35 206 - 35 206

Accumulated surplus/(deficit) 933 541 565 355 1 498 896 176 439 1 675 335

Reserves 2 274 043 18 826 - 584 181 1 708 688 21 197 - 197 636 1 532 249

NET WORTH 3 207 584 940 731 - 940 731 3 207 584 232 842 - 232 842 3 207 584

NET FINANCIAL WORTH1 - 2 206 975 - 423 732 - 940 731 - 3 571 438 150 393 - 232 842 - 3 653 887

NET FINANCIAL LIABILITIES2 3 380 548 423 732 3 804 280 - 150 393 3 653 887

NET DEBT3 886 508 370 657 1 257 164 - 533 398 723 766

1 Net financial worth equals total financial assets minus total liabilities.

2 Net financial liabilities equals total liabilities less total financial assets excluding investments in other public sector entities.




Note 44: Elimination Table – Cash Flow Statement



Eliminations TPS

$000 $000 $000 $000 $000 $000 $000


Taxes received 394 775 - 4 744 390 031 - 1 181 388 850

Receipts from sales of goods and services

158 165 431 668 - 47 785 542 048 159 237 - 13 475 687 810

Grants and subsidies received 2 970 094 201 366 - 203 863 2 967 597 2 967 597

Interest receipts 103 995 3 524 - 3 382 104 137 250 018 - 180 572 173 583

Dividends and income tax equivalents 54 427 - 18 531 35 896 - 35 896

Other receipts 139 857 12 461 7 765 160 083 999 - 1 050 160 031

Total operating receipts 3 821 312 649 019 - 270 540 4 199 790 410 254 - 232 174 4 377 871


Income tax equivalents paid - 18 476 18 476 - 19 208 19 208

Payments for employees - 1 403 789 - 70 865 4 813 - 1 469 841 - 20 204 2 126 - 1 487 919

Payment for goods and services - 856 862 - 381 930 49 226 - 1 189 566 - 130 782 13 715 - 1 306 634

Grants and subsidies paid - 811 153 - 2 980 194 514 - 619 618 - 2 627 - 622 245

Interest paid - 149 838 - 29 884 3 382 - 176 340 - 184 863 180 572 - 180 631


Total operating payments - 3 221 642 - 504 136 270 412 - 3 455 366 - 360 458 215 620 - 3 600 204

NET CASH FLOWS FROM OPERATING ACTIVITIES

599 670 144 883 - 129 744 424 49 796 - 16 554 777 667


Sales of non financial assets 57 541 1 467 59 008 11 149 70 157

Purchases of non financial assets - 349 197 - 180 123 - 529 320 - 2 020 - 531 340


- 291 656 - 178 656 - 470 312 9 129 - 461 183


308 014 - 33 773 - 129 274 113 58 925 - 16 554 316 484


21 517 21 517 543 22 060


- 248 039 - 248 039 - 8 460 25 324 - 231 175

NET CASH FLOWS FROM INVESTING ACTIVITIES

- 518 178 - 178 656 - 696 834 669 25 867 - 670 298


Advances received (net) - 50 118 - 50 118 870 48 832 - 416

Borrowing (net) - 21 639 79 467 57 828 - 4 930 - 75 159 - 22 261

Deposits received (net) 46 337 33 - 45 008 1 362 - 4 173 - 8 051 - 10 862

Dividends paid - 128 128 - 16 554 16 554

Other financing (net) 35 35 35

NET CASH FLOWS FROM FINANCING ACTIVITIES

- 25 420 79 406 - 44 880 9 107 - 24 787 - 17 824 - 33 504

NET INCREASE/DECREASE IN CASH HELD

56 072 45 634 - 45 008 56 697 25 679 - 8 511 73 865

Net cash flows from operating activities 599 670 144 883 - 129 744 424 49 796 - 16 554 777 667


Note 44 (continued) GG PNFCNFPS

Eliminations NFPS PFCTPS

Eliminations TPS

$000 $000 $000 $000 $000 $000 $000


- 291 656 - 178 656 - 470 312 9 129 - 461 183

Dividends paid - 128 128 - 16 554 16 554

CASH SURPLUS (+)/DEFICIT (-) 308 014 - 33 901 274 113 42 371 316 484

Additional Information to the Cash Flow Statement

CASH SURPLUS (+)/DEFICIT (-) 308 014 - 33 901 274 113 42 371 316 484


32 608 32 608 32 608


275 406 - 33 901 241 505 42 371 283 876

Future infrastructure and superannuation contributions/earnings2

- 63 978 - 63 978 - 63 978

UNDERLYING SURPLUS (+)/DEFICIT (-) 211 428 - 33 901 177 527 42 371 219 898





Note 45: GlossaryABS GFS Manual The Australian Bureau of Statistics (ABS) publication Australian System

of Government Finance Statistics: Concepts, Sources and Methods as updated from time to time.

Accountable Officer’s Trust Account

Established under section 7(1) of the Financial Management Act to enable agencies to hold money in trust for another person or entity. Transactions in these accounts are excluded from the Public Account.

Accounts Payable The value of short-term and long-term trade debt and accounts payable, interest payable and prepayments received.

Accounts Receivable The value of short-term and long-term trade credit and accounts receivable interest receivable and prepayments made.

Accrual Accounting A recording method in which revenues, expenses, lending and borrowing are recognised as they are earned or incurred regardless of when a cash payment is made or received.

Administrative Arrangements Order

A list of Ministers of the Northern Territory, agencies, Acts and principal areas of government for which they are responsible.

Advances/Advances Paid Loans acquired for policy rather than liquidity management purposes. Included are long-term and short-term loans, non marketable debentures and long and short term promissory agreements (bonds and bills) issued to public sector units for achieving government policy objectives.

Agency A unit of government administration, or office or statutory corporation, nominated in an Administrative Arrangements Order for the purposes of the Financial Management Act and including, where the case requires, a part or division (by whatever name called) of an agency.

Appropriation An authority given by the Legislative Assembly to make payments, now or at some future time, for the purposes stated, up to the limit of the amount in the particular Act.

Appropriation Act Includes a Supply Act and an annual Appropriation Act or an additional Appropriation Act.

Australian Accounting Standards

Statements of accounting standards which can be applied in the preparation and presentation of financial statements.

Capital Grants Transactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realised by the disposal of another asset are transferred, for which no economic benefits of equal value are receivable or payable in return.

Cash Accounting A recording method in which transactions are recognised when cash payments are made or received.

Cash Surplus/Deficit Reported in the cash flow statement that measures the net impact of cash flows during the period. It equals net cash flows from operating activities plus net cash flows from acquisition and disposal of non-financial assets, less distributions paid less value of assets acquired under finance leases and similar arrangements.

Net cash flows from operating plus net cash from acquisition and disposal of non-financial assets (less dividends paid for the PNFC and PFC sectors).


Community Service Obligation

A community service obligation (CSO) arises when the Government requires a government business division of government owned corporation to carry out activities which it would not choose to do on a commercial basis or would only do at higher commercial prices. CSOs allow the Government to achieve identifiable community or social objectives that would not be achieved if left to commercial considerations.

Commonwealth Own-Purpose Expenses

Payments by the Commonwealth for goods and service and associated transfer payments for the conduct of it general government activities.

Central Holding Authority Created by section 5 of the Financial Management Act, the Central Holding Authority is a representation of the revenue, expenses, assets and liabilities of the Territory. Credited to this account is all money received by or on behalf of the Territory or an agency, except that required or permitted by or under the Financial Management Act or any other Act to be credited to an Operating Account or to an Accountable Officer’s Trust Account.

Change in Net Worth Change in net worth (comprehensive result) is revenue from transactions less expenses from transactions plus other economic flows, and measures the variation in a government’s accumulated assets and liabilities.

Comprehensive Result The net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other movements in equity, other than transactions with owners as owners.

Contingent Liability A potential financial obligation arising out of a condition, situation, guarantee or indemnity, the ultimate effect of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events.

Convergence Difference The difference between the amounts recognised in the financial statements compared with the amounts determined for GFS purposes as a result of differences in definition, recognition, measurement, classification and consolidation principles and rules.

Current Grants Amounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.

Doubtful Debt A debt which is treated as a possible future loss and for which a provision has been made.

Eliminations Adjustments relating to interrelated transactions or entries between entities within the total public sector.

Finance Lease Lease agreements that transfer substantially all the risks and benefits relating to ownership of an asset from the lessor (legal owner) to the lessee (party using the asset).



Financial Asset Any asset that is:

cash;•

an equity instrument of another entity;•

a contractual right:•

to receive cash or another financial asset from another entity; or –

to exchange financial assets or financial liabilities with another –entity under conditions that are potentially favourable to the entity; or

a contract that will or may be settled in the entity’s own equity •instruments and is:

a non derivative for which the entity is or may be obliged to receive –a variable number of the entity’s own equity instruments; or

a derivative that will or may be settled other than by the exchange –of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.

For this purpose, the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.

Fiscal Aggregates Analytical balances that are useful for macroeconomic analysis purposes, including assessing the impact of a government and its sectors on the economy. AASB 1049 prescribes net operating balance, net lending/borrowing (fiscal balance), change in net worth (comprehensive result), net worth and cash surplus/deficit. The UPF prescribes additional fiscal aggregates not included in AASB 1049: these are net debt, net financial worth, net financial liabilities and ABS GFS cash surplus/deficit.

Generally Accepted Accounting Principles (GAAP)

Term used to describe broadly the body of principles that governs the accounting for financial transactions underlying the preparation of a set of financial statements.

General Government Sector (GGS)

Defined in Government Finance Statistics as an entity or group of entities which are mainly engaged in the production of goods and/or services outside the normal market mechanism. Goods and services are provided free of charge or at nominal charges well below costs of production.

Goods and Services Tax (GST) Revenue

On 1 July 2000, the Commonwealth introduced the goods and services tax (GST). Payments from the Commonwealth return the GST revenue to the states and territories, replacing the previous general purpose grants.

Government Business Division (GBD)

A Territory-controlled trading entity that follows commercial practices and is required to comply with competitive neutrality principles.

Government Finance Statistics

Refers to statistics that measure the financial transactions of governments and reflect the impact of those transactions on other sectors of the economy. Government Finance Statistics in Australia are developed by the Australian Bureau of Statistics in conjunction with all governments and are mainly based on international statistical standards developed, in consultation with member countries, by the International Monetary Fund.


Government Owned Corporation (GOC)

An entity whose objectives are to operate at least as efficiently as any corporate business and maximise the sustainable return to government. The Government Owned Corporations Act adopts the shareholder model of corporate governance. The Power and Water Corporation became the Territory’s first government owned corporation on 1 July 2002.

Government Purpose Classification

Classifies outlays or expenditure transactions by the purpose served, eg. health, education.

Guarantee An undertaking to answer for the debt or obligations of another person or entity.

Grants Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be of a current or capital nature (see current grants and capital grants).

While grants to government may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers.

Grants can be paid as general purpose grants which refer to grants which are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants which are paid for a particular purpose and/or have conditions attached regarding their use.

Grants for On-Passing

All grants paid to one institutional sector (eg. a state general government) to be passed on to another institutional sector (for example, local government or a non-profit institution).

Indemnity A written undertaking to compensate, protect or insure another person or entity against future financial loss, damage or liability.

Intergovernmental Agreement An agreement signed by all state and the Commonwealth in December 2008 defining the framework for federal financials relations, encompassing Commonwealth funding to states through general revenue assistance, Specific Purpose Payments and National Partnership payments.

Interest Expense Costs incurred in connection with the borrowing of funds. It includes interest on advances, loans, overdrafts, bonds and bills, deposits, interest components of finance lease repayments, and amortisation of discounts or premiums in relation to borrowing.

International Financial Reporting Standards

The term used to describe the move to standardise existing global international accounting standards. Australian equivalents to these new standards have been adopted for reporting periods on or after 1 January 2005.

Inventories Includes goods or other property used in the production of goods or services, or held for sale, but does not include livestock and other regenerative natural resources.



Loan Council The Australian Loan Council coordinates borrowing by Australian and state governments. Current arrangements seek to emphasise transparency of public sector finances, through financial market scrutiny of proposed borrowing to restrict borrowing to prudent levels.

Loan Council Allocation The nomination to the Loan Council of the level of financing required.

Memorandum Items – Loan Council

Memorandum items are used to adjust the cash surplus/deficit to include in the Loan Council Allocation certain transactions that may have the characteristics of public sector borrowings but do not constitute formal borrowings.

Net Acquisition/ (Disposal) of Non-Financial Assets from

Transactions

Purchases (or acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets.

Purchases and sales (or net acquisitions) of non-financial assets generally include accrued expenses and payables for capital items. Purchases exclude non-produced assets and valuables which are included in other movements in non-financial assets.

Net Actuarial Gains Includes actuarial gains and losses on defined benefit superannuation plans.

Net Cash Flows from Investments in Financial

Assets (Liquidity Management purposes)

Cash receipts from liquidation or repayment of investments in financial assets for liquidity management purposes less cash payments for such investments. Investment for liquidity management purposes means making funds available to others with no policy intent and with the aim of earning a commercial rate of return.

Net Cash Flows from Investments in Financial Assets(Policy Purposes)

Cash receipts from the repayment and liquidation of investments in financial assets for policy purposes less cash payments for acquiring financial assets for policy purposes. Acquisition of financial assets for policy purposes is distinguished from investments in financial assets (liquidity management purposes) by the underlying government motivation for acquiring the assets. Acquisition of financial assets for policy purposes is motivated by government policies such as encouraging the development of certain industries or assisting citizens affected by natural disaster.

Net Debt Net debt measures a government’s net stock of selected gross financial liabilities less financial assets.

Net debt equals sum of deposits held, advances received, government securities, loans and other borrowing less the sum of cash and deposits, advances paid and investments, loans and placements.

Net Financial Liabilities Total liabilities less financial assets, other than equity in PNFCs and PFCs. This measure is broader than net debt as it includes significant liabilities, other than borrowings (for example, accrued employee liabilities such as superannuation and long service leave entitlements). For the PNFC and PFC sectors, it is equal to negative net financial worth.

Net Financial Worth A measure of a government’s net holdings of financial assets. It is calculated from the Uniform Presentation Framework balance sheet as financial assets minus liabilities. Net financial worth is a broader measure than net debt, in that it incorporates provisions (such as superannuation, but excludes depreciation and doubtful debts) as well as holdings of equity. Net financial worth includes all classes of financial assets and liabilities.


Net Gain on Equity Investment in other Sector

Entities Measured at Proportional Share of the Carrying Amount of Net

Assets/(Liabilities)

Comprises the net gains relating to the equity held by the General Government Sector in other sector entities. It arises from a change in the carrying amount of net assets of the subsidiaries. The net gains are measured based on the proportional share of the subsidiary’s carrying amount of net assets /(liabilities) before elimination of intersector balances.

Net Lending/Borrowing (also referred to as

Fiscal Balance)

An operating statement measure that differs from the net operating balance in that it includes spending on capital items but excludes depreciation. The net lending/borrowing measure more accurately reflects the cash requirements of a government in any given year. A net lending (or fiscal surplus) balance indicates that a government is saving more than enough to finance all its investment spending. A net borrowing (or fiscal deficit) position indicates that a government’s level of investment is greater than its level of savings.

Net Other Economic Flows

The net change in the volume or value of assets and liabilities that does not result from transactions.

Net Result from Transactions – Net Operating Balance

The revenue from transaction minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations and excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.

Net Worth Provides a relatively comprehensive picture of a government’s overall financial position. It is calculated as total assets less total liabilities less shares and other contributed capital. It includes a government’s non financial assets such as land and other fixed assets, which may be sold and used to repay debt, as well as its financial assets and liabilities including debtors, creditors and superannuation liabilities. Net worth also shows asset acquisitions over time, giving an indication of the extent to which borrowings are used to finance asset purchases, rather than only current expenditure.

Non Financial Assets Assets that are not financial assets, predominantly land and other fixed assets.


The sector formed through a consolidation of the general government and public non financial corporation subsectors.

Non-Profit Institution A legal or social entity that is created for the purpose of producing or distributing foods and services but is not permitted to be a source of income, profit or other financial gain for the units that establish, control or finance it.

Operating Account A government business division Operating Account or an agency Operating Account established under section 6(1) of the Financial Management Act.

Operating Result A measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner movements in equity’.

Other Current Revenues Current Revenue other then current revenue from taxes, sales of goods and services, and property income. It includes revenue from fines other than penalties imposed by tax authorities.



Other Economic Flows Changes in the volume or value of an asset or liability that do not result from transactions (i.e. revaluations and other changes in the volume of assets).

Payables Includes short-term and long-term trade debt and accounts payable, grants and interest payable.

Provisions Amounts set aside by entities from current revenue or income for future payments.

Public Account Comprises agencies subject to the Financial Management Act, where the financial transactions of the Northern Territory Government are recorded. As defined in section 4(2) of the Act, it comprises the Central Holding Authority and Operating Accounts.

Public Financial Corporation (PFC)

Government-controlled entities which perform central bank functions, and/or have the authority to incur liabilities and acquire financial assets in the market on their own account.

Public Non Financial Corporation (PNFC)

Public enterprise primarily engaged in the production of goods or services of a non financial nature, for sale in the market place, at prices which aim to recover most of the costs involved.

Public Private Partnerships (PPPs)

A term used to describe a method of procuring government infrastructure and associated services. PPPs create opportunities with the private sector for increasing investment in social and economic infrastructure. The Territory’s PPP policy framework, Territory Partnerships, defines the protocol for such commercial dealings between the public and private sectors.

Quasi-corporation An unincorporated enterprise that functions as if it were a corporation, has the same relationship with its owner as a corporation, and keeps a separate set of accounts

Receivables Includes short-term and long-term trade credit and accounts receivable, grants, taxes and interest receivable.

Sale of Goods and Services Revenue from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rental income from the use of non-produced assets such as land. User charges includes sale of goods and services revenue.

Securities other than Shares

Negotiable financial instruments serving as evidence of the obligations to settle by means of providing cash, a financial instrument, or some other item of economic value. The security normally specifies a schedule for interest payments and principal repayments. Some examples are: bills, bonds and debentures, commercials paper, and securitised mortgage loans.

Social Benefits Transfers in cash or in kind to relieve households of the burden of a defined set of social risks, which are events or circumstances that may adversely affect the welfare of households by imposing additional demands on their resources or by reducing their income.

Specific Purpose Payments (SPPs)

A commonwealth financial contribution to support state delivery of service in a particular sector. Payments are made from the Commonwealth Treasury to state treasuries, and are appropriated to the relevant Northern Territory agency.


Superannuation Interest Cost The expense resulting from the increase in the liability due to the fact that, for all participants in the scheme, retirement (and death) is one year nearer, and so one fewer discount factors must be used to calculate the present value of the benefits for each future year. Interest cost is the increase during a period in the present value of a defined benefit obligation which arises because the benefits are one period closer to settlement, as per the relevant accounting standard. The cost is measured net of the actuarial return on plan assets of defined benefit schemes calculated using an actuarially determined long-term rate of return.

Other Superannuation Expense

Includes all superannuation expenses from transactions except superannuation interest cost. It generally includes current service cost, which is the increase in entitlements associated with the employment services provided by employees in the current period. Superannuation actuarial gains/losses are excluded as they are considered other economic flows.

Tax Equivalents Regime The mechanism to ensure that GBDs and GOCs incur similar tax liabilities to privately owned organisations. Thus, greater parity exists between the cost structures of government controlled trading entities and the private sector, aiding in the achievement of competitive neutrality.

Transactions Interactions between two institutional units by mutual agreement or actions within a unit that are analytically useful to treat as transactions.

Treasurer’s Advance An appropriation purpose of that name as specified in an Appropriation Act, which provides a pool of funds specifically set aside in each Budget to meet operational contingencies that arise during the year.

Uniform Presentation Framework

A uniform reporting framework (UPF) agreed by the Australian Loan Council in 2000, which is a revision of the agreement reached at the 1991 Premiers’ Conference. The UPF was further updated and reissued in April 2008 to incorporate accounting standard AASB 1049 Whole Government and General Government Sector Financial Reporting. The UPF specifies that the Commonwealth, state and territory governments will present a minimum set of budget and financial outcome information on the Government Finance Statistics basis according to an agreed format and specified Loan Council reporting arrangements.

Use of Goods and Services The total value of goods and services used in production, and use of goods acquired for resale. Goods and services acquired for use as direct in-kind transfer to household or as grants are excluded.

Wages, Salaries and Supplements

Consist of all uncapitalised compensation of employees except for superannuation. It includes pay in cash or in-kind.

Whole of Government Financial Report

A financial report prepared by a government that is prepared in accordance with Australian Accounting Standards, including AASB 127 Consolidated and Separate Financial Statements, and thereby separately recognises assets, liabilities, income, expenses and cash flows of all entities under the control of the government on a line-by-line basis.


128

129

Additional Financial

Information (Unaudited)


130

131Additional Financial Information

Additional Financial InformationThis section of the Report provides financial information for agencies and government business divisions (GBDs) to supplement the whole of government and sectoral tables presented in the audited section. This information is not required under the Uniform Presentation Framework (UPF) or the Fiscal Integrity and Transparency Act (FITA) and accordingly is not audited. The summary agency financial information and explanations ensure that the Report is a comprehensive financial report and evidence of further enhancements to, and improvements in, transparency and accountability in the Territory’s financial reporting framework. The intent of this section is to highlight changes in appropriation (the direct funding to agencies approved by Parliament in the Appropriation Act and subsequent adjustments approved in accordance with the Financial Management Act (FMA)) to agencies and to provide a summary of the key financial performance for both agencies and GBDs, with significant movements during 2008-09 explained.

This section also includes supplementary tables that are required under UPF, but not required to be audited.

Appropriation is the term used in the FMA to describe an amount authorised to be paid from the Central Holding Authority for operational and capital expenditure purposes to general agencies. Appropriation in prior years was described as either Output Appropriation or Capital Appropriation. In 2009-10 however, a new type of appropriation has been included, that is, Commonwealth Appropriation. This is the result of the Intergovernmental Agreement on Federal Financial Relations agreed by the Council of Australian Governments effective 1 January 2009. Appropriation to agencies for the 2008-09 financial year is specified in the 2008-09 Appropriation Act, passed by the Legislative Assembly. Commonwealth Appropriation from January 2009 for the 2008-09 financial year, is reflected in the Appropriation (Additional for 2008-09) Act. During the course of any financial year, situations can change which necessitate variations to appropriation.

Section 18 of the FMA provides that the Treasurer can approve additional appropriation through the use of Treasurer’s Advance.

Section 19 of the FMA provides that the Administrator can approve, within specified parameters, an increase in Treasurer’s Advance.

Section 19 (A) of the FMA allows the Treasurer to increase Commonwealth Appropriation where there has been an increase in Commonwealth funding to the Territory.

Section 20 (1) of the FMA provides that the Treasurer can approve appropriation transfers within a financial year.

Section 21 of the FMA allows the transfer of appropriation between agencies following redistribution of government business (public sector restructure).

Variations to Appropriations

Authorised During the Year


132 Additional Financial Information

Appropriation transfers can also affect the Treasurer’s Advance, which provides a pool of funds specifically set aside in each Budget to meet operational contingencies that arise during the year.

Appropriation transfers change the distribution of appropriation across agencies and the Treasurer’s Advance but do not change the total Budget funding approved by Parliament.

Variations to appropriations recorded in the table reflect the net effect on appropriation arising from Government decisions taken during 2008-09.

In addition to appropriation, agencies also receive agency revenue that comprises funding from external bodies and own-source revenue in the form of fees and charges.

General agency information is presented in two parts – an Appropriation summary and an Operating Statement summary which includes expense and revenue variations. GBD information is presented as an Operating Statement summary. As commercially focused entities, GBDs do not receive appropriation and only one summary is necessary. All schedules include explanations of variations over 1 per cent or $50 000.

For the Appropriation summary, the original 2008-09 Budget is compared to the final approved budget with significant variations reflecting approved Government decisions as they pertain to resources provided to general agencies. The appropriation changes in this summary align with the Variations to Appropriation table.

The Operating Statement summary contains a high level comparison of financial performance for each agency and GBD. Comparison is made between the final approved budget and the actual result for 2008-09 highlighting significant variations between revenue and expenses. Explanations have been provided for material movements between the final estimate and the actual result. The actual results and the overall effect of movements explained in these summaries are reflected in the whole of government financial statements.

These tables are required by the UPF framework and provide detailed information on taxes, grants revenue and expense, dividends and income tax equivalents, purchases of non financial assets and Loan Council Allocations. All tables are based on the general government sector only, except for the Loan Council Allocation that is based on the non financial public sector.

Summary Agency/Government Business

Division Financial Information

UPF Supplementary Tables


Variations to Appropriations Authorised During the Year

Appropriation

Act

Appropriation

(Additional for

2008-09) Act

Variations actioned under the

Financial Management Act Final

AGENCY/Purpose 2008-09 2008-09 s18 s19 s19(A) s20 s21 Appropriation

$000 $000 $000 $000 $000 $000 $000 $000

AUDITOR-GENERAL’S OFFICE

2 923 2 923

Output 2 923 2 923

Capital

Commonwealth

NORTHERN TERRITORY ELECTORAL COMMISSION

1 685 1 480 3 165

Output 1 685 1 480 3 165

Capital

Commonwealth

OMBUDSMAN’S OFFICE 1 902 100 2 002

Output 1 902 100 2 002

Capital

Commonwealth

DEPARTMENT OF THE CHIEF MINISTER

58 817 5 759 6 203 575 71 354

Output 58 422 5 759 6 203 575 70 959

Capital 395 395

Commonwealth

DEPARTMENT OF THE LEGISLATIVE ASSEMBLY

20 084 1 341 21 425

Output 20 043 1 341 21 384

Capital 41 41

Commonwealth

NORTHERN TERRITORY POLICE, FIRE AND EMERGENCY SERVICES

225 845 1 390 420 11 992 239 647

Output 217 219 420 11 703 229 342

Capital 8 626 289 8 915

Commonwealth 1 390 1 390

(Continued)



Appropriation

Act

Appropriation

(Additional for

2008-09) Act




$000 $000 $000 $000 $000 $000 $000 $000

DEPARTMENT OF EMPLOYMENT, EDUCATION AND TRAINING

534 408 - 534 408

Output 534 408 - 534 408

Capital

Commonwealth

DEPARTMENT OF EDUCATION AND TRAINING

56 587 4 200 6 875 20 862 523 536 612 060

Output 4 200 20 862 523 536 548 598

Capital

Commonwealth 56 587 6 875 63 462

NORTHERN TERRITORY TREASURY

150 053 20 000 10 291 1 566 181 910

Output 150 029 20 000 1 566 171 595

Capital 24 24


DEPARTMENT OF JUSTICE

151 061 107 14 013 1 013 8 638 174 832

Output 150 815 14 013 980 8 638 174 446

Capital 246 33 279

Commonwealth 107 107

DEPARTMENT OF PLANNING AND INFRASTRUCTURE

395 166 11 066 33 000 10 771 450 003

Output 155 927 33 000 18 832 207 759

Capital 239 239 - 8 061 231 178


DEPARTMENT OF CORPORATE AND INFORMATION SERVICES

98 543 - 98 543

Output 93 972 - 93 972

Capital 4 571 - 4 571

Commonwealth

DEPARTMENT OF BUSINESS AND EMPLOYMENT

9 558 116 658 126 216

Output 13 367 112 087 125 454

Capital - 3 809 4 571 762

Commonwealth

(Continued)


Appropriation

Act

Appropriation

(Additional for

2008-09) Act




$000 $000 $000 $000 $000 $000 $000 $000

LAND DEVELOPMENT CORPORATION

1 484 1 484

Output 1 484 1 484

Capital

Commonwealth

TOURISM NT 35 749 1 699 1 801 39 249

Output 35 672 1 699 1 801 39 172

Capital 77 77

Commonwealth

DEPARTMENT OF HEALTH AND FAMILIES

646 241 36 285 6 144 41 888 730 558

Output 642 556 6 144 41 123 689 823

Capital 3 685 765 4 450


DEPARTMENT OF BUSINESS, ECONOMIC AND REGIONAL DEVELOPMENT

23 692 - 23 692

Output 23 692 - 23 692

Capital

Commonwealth

DEPARTMENT OF PRIMARY INDUSTRY, FISHERIES AND MINES

53 605 - 53 605

Output 53 354 - 53 354

Capital 251 - 251

Commonwealth

DEPARTMENT OF REGIONAL DEVELOPMENT PRIMARY INDUSTRY, FISHERIES AND RESOURCES

245 1 860 641 108 59 040 61 894

Output 1 560 - 133 58 789 60 216

Capital 300 241 251 792

Commonwealth 245 641 886

DEPARTMENT OF LOCAL GOVERNMENT, HOUSING AND SPORT

200 570 - 200 570

Output 200 525 - 200 525

Capital 45 - 45

Commonwealth

(Continued)



Appropriation

Act

Appropriation

(Additional for

2008-09) Act




$000 $000 $000 $000 $000 $000 $000 $000

DEPARTMENT OF LOCAL GOVERNMENT AND HOUSING

74 285 58 342 7 036 196 021 335 684

Output 6 036 141 409 147 445

Capital 1 000 54 612 55 612

Commonwealth 74 285 58 342 132 627

OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT

6 024 156 6 180

Output 6 024 156 6 180

Capital

Commonwealth

ABORIGINAL AREAS PROTECTION AUTHORITY

2 460 2 460

Output 2 422 2 422

Capital 38 38

Commonwealth

DEPARTMENT OF NATURAL RESOURCES, ENVIRONMENT AND THE ARTS

108 325 - 108 325

Output 107 188 - 107 188

Capital 1 137 - 1 137

Commonwealth

DEPARTMENT OF NATURAL RESOURCES, ENVIRONMENT, THE ARTS AND SPORT

3 840 1 054 - 3 823 136 100 137 171

Output 3 840 - 3 326 134 918 135 432

Capital - 497 1 182 685


CENTRAL HOLDING AUTHORITY

363 195 - 89 336 154 000 - 111 850 - 23 226 292 783

Treasurer’s Advance 40 000 - 89 336 154 000 - 77 295 - 23 226 4 143

Interest, Taxes and Administration

139 129 - 8 623 130 506

Employee Entitlements 184 066 - 25 932 158 134

(Continued)


Appropriation

Act

Appropriation

(Additional for

2008-09) Act




$000 $000 $000 $000 $000 $000 $000 $000

TOTAL APPROPRIATION 3 081 832 179 965 154 000 77 203 3 493 000

Output Appropriation 2 460 262 89 036 121 889 - 31 386 2 639 801

Capital Appropriation 258 375 300 - 10 039 54 612 303 248

Commonwealth 179 965 77 203 257 168

Treasurer’s Advance 40 000 - 89 336 154 000 - 77 295 - 23 226 4 143

Interest, Taxes and Administration

139 129 - 8 623 130 506

Employee Entitlements 184 066 - 25 932 158 134

TOTAL 3 081 832 179 965 154 000 77 203 3 493 000



Auditor-General’s OfficeAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000

Output Appropriation 2 923 2 923 2 923

Capital Appropriation

Commonwealth Appropriation

TOTAL APPROPRIATION 2 923 2 923 2 923

Significant Variances

No variations to Appropriation

Operating Statement Final

Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 3 578 3 777 199 (1)

Expenses 3 578 3 764 186 (2)

Net Surplus(+)/Deficit(-) 14 14


(1) Increased revenue from audit activity 184

(2) Higher operational expenses due to increased audit activity 171


Northern Territory Electoral CommissionAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000

Output Appropriation 1 685 3 165 3 165 1 480 (1)



TOTAL APPROPRIATION 1 685 3 165 3 165 1 480


(1) Funding for the Legislative Assembly General Election 1 300

Inaugural Shire and Rural Elections 100

Redevelopment of the Northern Territory Electoral Commission website 80


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 4 269 4 771 502 (2)

Expenses 4 272 4 450 178 (3)

Net Surplus(+)/Deficit(-) - 3 321 324


(2) Higher than expected goods and services received free of charge 350

Commonwealth funding to support the Alice Springs Electoral Office 105

(3) Department of Business and Employment charges higher than expected 350

Lower than anticipated operational expenses - 176



Ombudsman’s OfficeAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000

Output Appropriation 1 902 1 902 2 002 100 (1)



TOTAL APPROPRIATION 1 902 1 902 2 002 100


(1) Additional funding for employee expenses 100


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 2 352 2 408 56

Expenses 2 394 2 445 51

Net Surplus(+)/Deficit(-) - 42 - 37 5


No significant variations


Department of the Chief MinisterAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 395 395 395




(1) Additional funding to support climate change initiatives and the Territory Growth Planning Unit

2 030

Additional funding for community grants and initiatives including the Ethnic Communities Facilities Development program and support for the NT Show Society

2 439

Additional funding to support policy and coordination activities 750

Addtional funding for Major Events including Arafura Games and V8 Supercars 2 600

Support of Ministerial offices and Leader of the Opposition 3 117

Closed circuit television in Alice Springs 1 100


Approved

Budget

2008-09

Actual Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 77 834 114 021 36 187 (2)

Expenses 78 380 79 937 1 557 (3)

Net Surplus(+)/Deficit(-) - 546 34 084 34 630


(2) Additional Commonwealth funding for the Alice Springs Transformation Plan 36 000

(3) Higher than anticipated operational expenses 933



Department of the Legislative AssemblyAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000






(1) Remuneration Tribunal Determination 659

Additional funding to deliver Statehood workshops 550

Increased Parliamentary sitting days 132


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 23 265 23 407 142

Expenses 25 224 24 525 - 699 (2)

Net Surplus(+)/Deficit(-) - 1 959 - 1 117 842


(2) Lower than expected repairs and maintenance expenses - 466


Northern Territory Police, Fire and Emergency ServicesAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 8 626 8 915 8 915 289

Commonwealth Appropriation 1 390 1 390 1 390



(1) Establishment of Police Beats and Bagot Police Post 1 167

Transfer funding from the Department of Justice for the First Response Patrol 953

Funding associated with the Northern Territory Police Consent Agreement, including the police housing allowance

5 495

Additional funding for higher police numbers, overtime allowances and police housing entitlements

4 000


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 266 437 266 826 389

Expenses 272 481 284 655 12 174 (2)

Net Surplus(+)/Deficit(-) - 6 044 - 17 829 - 11 785


(2) Higher than expected employee expenses including overtime and police housing entitlements

6 748

Costs associated with increased operational activities including the provision of services in remote communities

6 400

Lower than expected depreciation expense - 1 360



Department of Education and TrainingAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000



Commonwealth Appropriation 56 587 63 462 63 462 (2)



(1) Transfer funding for the Closing the Gap Early Childhood Development initiative from the Department of Health and Families

500

Transfer NT Worksafe function to the Department of Justice - 8 638

Transfer Employment function to the Department of Business and Employment - 2 234

Additional funding to increase Back to School Payments 1 050

Implementation of the IT Parents Portal 300

Funding for Families as First Teachers 1 300

Additional funding for the Milikapiti Training Facility 500

Funding for repairs and maintenance and furniture, fitout and equipment 5 400

Teachers and Educators Enterprise Bargaining Agreement 2 515

Additional per capita funding for non-government schools 1 257

Funding for the implementation of National Partnerships in Schools 4 550

Funding to support the National Skills and Workforce Development Agreement 2 250

Funding for additional teachers and employee expenses 5 000

(2) Variation to reflect revised arrangements for payments from the Commonwealth 63 462


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 760 268 769 724 9 456 (2)

Expenses 777 563 777 075 - 488

Net Surplus(+)/Deficit(-) - 17 295 - 7 351 9 944


(2) Commonwealth funding for various teaching programs 7 558

Additional Commonwealth funding for the National Skills and Workforce Program 1 155


Northern Territory TreasuryAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000



Commonwealth Appropriation 10 291 10 291 (2)



(1) Capital contribution to Power and Water Corporation 20 000



Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 186 874 186 487 - 387

Expenses 183 675 183 637 - 38

Net Surplus(+)/Deficit(-) 3 199 2 850 - 349





Northern Territory Treasury CorporationOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 471 471

Community Service Obligations

Other Revenue 160 005 159 704 - 301

Operating Expenses (after Income Tax) 149 036 146 824 - 2 212 (1)

Net Surplus(+)/Deficit(-) 11 440 13 351 1 911


(1) Interest expense lower than estimated due to refinancing maturing debt at lower rates - 2 744


Department of JusticeAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 246 279 279 33

Commonwealth Appropriation 107 107 107



(1) Transfer of prisoner primary health care services to the Department of Health and Families - 4 251

Additional funding for judges and magistrates including Remuneration Tribunal Determinations

759

Transfer funding for the First Response Patrol behaviour initiatives to Northern Territory Police, Fire and Emergency Services

- 953

Transfer of NT Worksafe function from the Department of Education and Training 8 638

Funding for closed circuit television in Alice Springs 200

Additional funding for Crime Victims Assistance 2 500

Additional funding for prisoner costs including juvenile detainees 4 125

Support for Thoroughbred Racing NT, the Darwin Turf Club and the Darwin Greyhound Racing Association

11 243


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 204 456 203 352 - 1 104 (2)

Expenses 206 622 210 293 3 671 (3)



(2) Transfer of Commonwealth funding to 2009-10 - 3 841

Additional revenue from Crime Victims Assistance receipts and prisoner canteen 946

Higher than expected goods and services revenue received free of charge 1 476

(3) Higher than anticipated employee and legal expenses 2 433

Department of Business and Employment notional charges higher than estimated 1 476

Lower than expected expenditure for the Community Benefit Fund and Commonwealth funded grant activities

- 351



Department of Planning and InfrastructureAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 239 239 231 178 231 178 - 8 061 (2)




(1) Additional funding for repairs and maintenance to Darwin Port Corporation 1 300

Transfer funding related to the provision of Land Information Services from the Department of Natural Resources, Environment, the Arts and Sport

1 508

Transfer of the Drive Safe NT program from the Department of Education and Training 300

Additional funding for disaster maintenance repairs, legal expenses and transport services 14 428

Capital grant to Charles Darwin University for the Palmerston Sporting Complex 33 000

(2) Variation throughout the year to the Capital Works Program, including Commonwealth funded projects

- 8 061



Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 297 835 295 295 - 2 540

Expenses 338 519 336 533 - 1 986

Net Surplus(+)/Deficit(-) - 40 684 - 41 238 - 554




Darwin Bus ServiceOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 7 620 7 914 294 (1)


Other Revenue 769 652 - 116 (2)

Operating Expenses (after Income Tax) 8 052 7 946 - 106 (3)

Net Surplus(+)/Deficit(-) 337 621 284


(1) Increased revenue for additional bus service 294

(2) Lower than anticipated interest revenue, subsidies and disposal of assets - 116

(3) Lower than anticipated repairs and maintenance expenses - 106



Construction DivisionOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 58 909 65 565 6 656 (1)


Other Revenue 480 540 60

Operating Expenses (after Income Tax) 57 573 61 731 4 158 (2)

Net Surplus(+)/Deficit(-) 1 816 4 374 2 558


(1) Additional project management revenue from higher than anticipated construction activity 6 656

(2) Additional project management expenses from higher than anticipated construction activity 3 061

Increased income tax expenses due to higher than anticipated operating surplus 1 097


Darwin Port CorporationOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 20 549 21 185 636 (1)

Community Service Obligations 3 606 3 606

Other Revenue 2 670 2 761 91 (2)

Operating Expenses (after Income Tax) 29 247 29 065 - 182

Net Surplus(+)/Deficit(-) - 2 422 - 1 513 909


(1) Higher than anticipated revenue from recovery of bulk minerals trade 636

(2) Additional interest revenue 24

Timing delays for Commonwealth fuel tax credits 76



Department of Business and EmploymentAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 4 571 762 762 - 3 809 (2)




(1) Budget transfers resulting from agency restructure of the former Department of Business, Economic and Regional Development and the former Department of Employment, Education and Training

18 503

Transfer funding from the Department of Natural Resources, Environment, the Arts and Sport for climate change initiatives

657

Additional funding for the Major Projects Forum 200

Support for the Darwin Aviation Hub 5 000

Funding for the Arnhem Land fibre optic project 4 000

Funding for electronic service delivery consultancy 300

Additional funding for the ICT Sourcing Strategy, workers compensation settlement, Centre Bush Bus and the Professional Procurement initiative

1 520

(2) Transfer of a capital works project to the Department of Planning and Infrastructure - 2 300

Transfer Capital projects to outer years - 1 509


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 142 362 146 687 4 325 (3)

Expenses 144 016 142 778 - 1 238

Net Surplus(+)/Deficit(-) - 1 654 3 909 5 563


(3) Additional revenue resulting from an IT licensing settlement 3 614


Data Centre Services

Operating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 19 379 19 331 - 48




Net Surplus(+)/Deficit(-) 1 662 1 871 209


(1) Timing delays for capital acquisitions - 159



Government Printing OfficeOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 5 717 5 713 - 4








NT FleetOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 37 915 39 097 1 182 (1)


Other Revenue 1 312 1 613 301 (2)

Operating Expenses (after Income Tax) 32 739 33 729 990 (3)



(1) Additional income due to higher lease revenue 1 182

(2) Higher than anticipated profit on disposal of vehicles 301

(3) Increased expenses and depreciation due to higher than expected asset base 741



Land Development CorporationAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000






No variations to Appropriation


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 3 154 2 961 - 193 (1)

Expenses 2 342 2 960 618 (2)

Net Surplus(+)/Deficit(-) 812 1 - 811


(1) Lower than anticipated net rental revenue - 75

Revised timing for development projects - 118

(2) Higher than anticipated operational expenses 669

Lower than anticipated depreciation expenses - 51


Tourism NTAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000






(1) Additional funding to market the Northern Territory internationally 1 000

Additional funding to market the Jetstar Darwin Hub 300

Budget transfers resulting from agency restructure 1 801

Additional funding for the Tourism Response Package 317


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 42 325 42 383 58

Expenses 42 136 42 428 292

Net Surplus(+)/Deficit(-) 189 - 44 - 233





Territory DiscoveriesOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 4 314 4 036 - 278 (1)

Community Service Obligations 833 833

Other Revenue 2 526 2 576 50


Net Surplus(+)/Deficit(-) 0 - 143 - 143


(1) Lower than expected goods and services revenue - 278


Department of Health and FamiliesAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 3 685 3 900 4 450 765 (2)




(1) Transfer funding for the Closing the Gap Early Childhood Development initiative to the Department of Education and Training

- 500

Transfer funding for the prisoner health care program from the Department of Justice 4 251

Funding for additional staff to implement mandatory reporting of domestic violence 500

Increase funding for youth rehabilitation camps and youth services officers 880

Revised timing of Appropriation to align with expenditure requirements 30 000

Nurses workplace agreement 5 687

Additional funding for aeromedical helicopter services to the Katherine district 200

Dentists workplace agreement 369

Expansion of emergency accommodation for young people in Alice Springs 544

Transfer of Appropriation to Capital for the Eye Health Program - 550

Additional funding for central coordination of aeromedical services 650

Pensioner concession increase for power and water services 733

Additional funding for repairs and maintenance program 6 000

Transfers between agencies - 1 186

(2) Additional funds for purchase of laboratory equipment 160

Transfer of Appropriation from Output for the Eye Health Program 550



Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 1 024 454 1 028 563 4 109

Expenses 1 028 576 1 011 787 - 16 789 (4)

Net Surplus(+)/Deficit(-) - 4 122 16 776 20 898


(4) Transfer of funding to 2009-10 - 25 996

Higher than expected hospital repairs and maintenance expenses 892

Higher than anticipated administrative and grants and subsidies expenses 7 820



Department of Regional Development, Primary Industry, Fisheries and ResourcesAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 251 492 792 541 (2)

Commonwealth Appropriation 245 886 886 (3)



(1) Transfer of functions from former Department of Business, Economic and Regional Development

5 435

Additional funding for fishing licence buyback and agency restructure 1 560

(2) Purchase of laboratory vehicles and testing equipment 241

Additional funding for the Capital Equipment Replacement Program 300

(3) Variation to reflect revised arrangements for payments from the Commonwealth 886


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 85 169 79 557 - 5 612 (4)

Expenses 91 611 87 704 - 3 907 (5)



(4) Timing variations for the Remote Renewable Power Generation Program - 6 418

Additional funding received for research programs 1 062

(5) Timing variations for the Remote Renewable Power Generation Program - 4 962

Higher than expected employee expenses and operational and administrative expenses for externally funded programs

1 339


Department of Local Government and HousingAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000

Output Appropriation 200 525 147 445 147 445 - 53 080 (1)

Capital Appropriation 45 55 612 55 612 55 567 (2)




(1) Transfer of Sport and Recreation and Libraries functions to the Department of Natural Resources, Environment, the Arts and Sport

- 27 730

Appropriation changes associated with the restructure of Territory Housing and NT Home Ownership

- 33 468

Funding to support Tiwi Island local government 1 000

Funding to Indigenous Essential Services for increased distillate costs 3 000

Additional funding for the Safe Water Strategy 2 500

Additional funding for natural disaster relief and recovery activities 1 013

(2) Appropriation changes associated with the restructure of Territory Housing and NT Home Ownership

54 612

(3) Variation to reflect revised arrangements for payments received from the Commonwealth 132 637


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 426 290 431 584 5 294 (4)

Expenses 417 388 425 480 8 092 (5)

Net Surplus(+)/Deficit(-) 8 902 6 104 - 2 798


(4) Late receipt of Commonwealth Financial Assistance grants for local governments 6 850

Higher than anticipated rental revenue 2 227

Lower than anticipated Commonwealth funding for the Indigenous employment program - 3 236

(5) Higher than anticipated depreciation and doubtful debt expenses 6 754

Higher than expected repairs and maintenance expenses 945



NT Home OwnershipOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 22 22

Community Service Obligations 781 781

Other Revenue 11 738 17 689 5 951 (1)

Operating Expenses (after Income Tax) 11 715 13 208 1 493 (2)



(1) Profit from disposal and revaluation of investments 5 870

(2) Lower than anticipated employee expenses - 72

Variation to management fees - 212

Lower than expected utilisation of the First Home Owner concessions - 151

Increased income tax expenses due to higher than anticipated operating surplus 1 921


Office of the Commissioner for Public EmploymentAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000

Output Appropriation 6 024 6 180 6 180 156 (1)



TOTAL APPROPRIATION 6 024 6 180 6 180 156


(1) Employee Assistance Program funding brought forward 86

Additional repairs and maintenance funding 70


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 7 498 7 413 - 85 (2)

Expenses 7 525 7 271 - 254 (3)



(2) Lower than anticipated goods and services revenue - 91

(3) Lower than estimated employee expenses - 95

Lower than anticipated professional development program costs - 85

Lower than estimated repairs and maintenance expenses - 62



Aboriginal Areas Protection AuthorityAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000






No variations to appropriation


Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 3 915 4 060 145 (1)

Expenses 3 958 4 086 128 (2)

Net Surplus(+)/Deficit(-) - 43 - 26 17


(1,2) Increased demand for services


Department of Natural Resources, Environment, the Arts and SportAppropriation May 2008

Published

Budget

May 2009

Final

Estimate

Final

Approved

Budget

Total

Variance

$000 $000 $000 $000


Capital Appropriation 1 137 685 685 - 452 (2)

Commonwealth Appropriation 1 054 1 054 (3)



(1) Funding for the Touring Indigenous Art Project 150

Transfer of funding to various agencies to deliver climate change initiatives - 1 248

Transfer of funding to 2009-10 for the Strategic Weeds Management Program - 500

Transfer of funding relating to the provision of Land Information Services to the Department of Planning and Infrastructure

- 1 508

Transfer of funding to 2009-10 for the Daly River Assessment and Biodiversity Monitoring - 170

Additional grant funding including recycling equipment for Alice Springs, natural disaster repairs, Regional Arts Conference and wildfire prevention

3 840

Transfer of Sport and Recreation and Libraries functions from the Department of Local Government

27 730

Transfer of funding to 2009-10 for climate change initiatives - 210

(2) Revised timing for the Darwin region Air Quality Program - 497



Approved

Budget

2008-09

Actual

Result

2008-09

Total

Variance

$000 $000 $000

Operating Statement

Income 159 719 161 525 1 806 (4)

Expenses 174 118 173 013 - 1 105 (5)

Net Surplus(+)/Deficit(-) - 14 399 - 11 487 2 912


(4) Lower than anticipated Commonwealth revenue for the Natural Disaster Mitigation Program - 381

Higher than anticipated revenue from Natural Heritage Trust cost recovery 1 240

Higher than estimated revenue for Northern Territory Institue of Sport, libraries, biodiversity surveys and fringe benefits tax adjustments

458

(5) Higher than anticipated employee expenses 658

Timing delays in externally funded programs - 1 921



Territory Wildlife ParkOperating Statement May 2009

Final

Estimates

2008-09

Actual

Result

2008-09 Variance

$000 $000 $000

Operating Statement

Goods and Services Revenue 2 166 1 919 - 247 (1)

Community Service Obligations 7 915 7 915



Net Surplus(+)/Deficit(-) - 1 875 -1 991 - 116


(1) Lower than anticipated visitor numbers and outsourcing of gift shop and cafe - 247

(2) Lower than expected employee and operational expenses due to outsourcing of gift shop and cafe

- 156

167Uniform Presentation Framework Supplementary Tables

Uniform Presentation Framework

Supplementary TablesGeneral Government Sector Taxes

2008-09

Actual

2007-08

Actual

$M $M

Taxes on employers’ payroll and labour force 151 141

Taxes on property

Stamp duties on financial and capital transactions 110 113

Taxes on the provision of goods and services

Taxes on gambling 73 71

Taxes on insurance 27 25

Taxes on the use of goods and performance of activities

Motor vehicle registration fees 43 44

Total Taxes 405 395

General Government Sector Grant Revenue 2008-09

Actual

2007-08

Actual

$M $M

Current grants revenue

Current grants from the Commonwealth

National partnership agreements 163

Specific purpose payments 63

General purpose grants 2 757 2 673

Grants for on-passing 127 99

Other contributions and grants 3

Total current grants revenue 3 113 2 772

Capital grants revenue

Capital grants from the Commonwealth

National partnership agreements 26

Specific purpose payments

General purpose grants 70 154

Grants for on-passing 25 79

Other contributions and grants 10

Total capital grants revenue 131 233

Total grants revenue 3 244 3 005


168

General Government Sector Grant Expense 2008-09

Actual

2007-08

Actual

$M $M

Current grant expense including subsidies and personal benefit payments

Local government 124 71

Private and not-for-profit sector 342 279

Private and not-for-profit sector on-passing 127 99

Grants to other sectors of government 48 53

Other 145 138

Total current grants expense including subsidies and personal benefit payments

786 641

Capital grants expense

Local government 7 11

Private and not-for-profit sector 81 8

Private and not-for-profit sector on-passing 19 70

Grants to other sectors of government 117 83

Other 3 3

Total capital grants expense 228 174

Total grant expense 1 013 816

General Government Sector Dividend and Income Tax Equivalent Income 2008-09

Actual

2007-08

Actual

$M $M

Dividend and income tax equivalent income from PNFC sector 6 30

Dividend and income tax equivalent income from PFC sector 19 29

Total dividend and income tax equivalent income 25 59

169Uniform Presentation Framework Supplementary Tables

General Government Sector Purchases of Non Financial Assets by Function 2008-09

Actual

2007-08

Actual

$M $M

General public services 16 12

Public order and safety 49 29

Education 75 62

Health 38 36

Social security and welfare 5 2

Housing and community amentities 101 54

Recreation and culture 30 48

Fuel and energy 6 5

Agriculture, forestry, fishing and hunting 6 5

Mining, manufacturing and construction 1 3

Transport and communications 116 91

Other economic affairs 6 2

Total purchases of non financial assets 449 349

Loan Council Allocation Original

Budget

2008-09

Actual

2008-09

$M $M

General government sector cash deficit (+)/surplus (-) - 9 - 159

Public non financial corporations sector cash deficit (+)/surplus (-) 137 124

Non financial public sector cash deficit (+)/surplus (-) 128 -35

minus Acquisitions under finance leases and similar arrangements

equals ABS GFS cash deficit (+)/surplus (-) 128 - 35

minus Net cash fows from investments in financial assets for policy purposes 3

plus Memorandum Items

2008-09 Loan Council Allocation1 128 - 321. The actual result for 2008-09 is a surplus of $32 million, an improvement of $160 million from the 2008-09 Budget time estimate of

$128 million deficit. This is outside the revised tolerance limit of 2 per cent of non financial public sector operating cash receipts, albeit in a positive direction, which is calculated based on the 2008-09 Budget-time estimate.


170

171Acronyms

AcronymsAARC AustralAsia Railway Corporation AAS Australian Accounting StandardsAASB Australian Accounting Standards BoardAOTA Accountable Officer’s Trust AccountAVO Australian Valuation OfficeCHA Central Holding AuthorityCOAG Council of Australian GovernmentsCOSR Conditions of Service ReserveCSS Commonwealth Superannuation SchemeFITA Fiscal Integrity and Transparency ActFMA Financial Management ActFVTPL Fair Value Through Profit and LossGAAP Generally Accepted Accounting PrinciplesGFC Global Financial CrisisGG General Government GOC Government Owned CorporationGST Goods and Services TaxIES Indigenous Essential ServicesIFRS International Financial Reporting StandardsNFPS Non Financial Public SectorNP National PartnershipNPV Net Present ValueNTGDIS Northern Territory Government Death and Invalidity SchemeNTGPASS Northern Territory Government Public Authorities’ Superannuation SchemeNTSSS Northern Territory Supplementary Superannuation SchemeNTTC Northern Territory Treasury CorporationPFC Public Financial CorporationPNFC Public Non Financial CorporationPWC Power and Water CorporationSPP Specific Purpose PaymentsTAFR Treasurer’s Annual Financial ReportTAFS Treasurer’s Annual Financial StatementTIO Territory Insurance OfficeUPF Uniform Presentation Framework


172

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Northern Territory Treasury38 Cavenagh Street

GPO Box 1974, Darwin NT 0801

Telephone: (08) 8999 7406

Facsimile: (08) 8999 7150

Website: www.nt.gov.au/ntt

Documents

2008-09 · 6 Ministerial Portfolio Arrangements Since the reporting date, amendments to the Administrative Arrangements Order were made. This schedule of Ministerial Portfolio Arrangements