Annual Report 2004-2005 - Financial Statementsresources.fahcsia.gov.au/annualreport/2005/_lib/pdf/facs_ar_part-five... · Part 5 |Financial statements 2004–05 327 Part 5 | Financial

327Part 5 | Financial statements 2004–05

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Part FiveFinancial statements 2004–05

Report by the Auditor General 329

Statement by the Secretary and Chief Financial Officer 331

Statement of Financial Performance 332

Statement of Financial Position 333

Statement of Cash Flows 334

Schedule of Commitments 335

Schedule of Contingencies 336

Schedule of Administered Items 337

Notes to and forming part of the financial statements 342

Summary of Significant Accounting Policies 343

Adoption of AASB Equivalents to International Financial Reporting Standards from 2005–2006 352

Events Occurring after Balance Date 356

Operating Revenues 357

Operating Expenses 361

Borrowing Costs Expense 363

Financial Assets 364

328 FaCS Annual Report 2004–05

Non-Financial Assets 365

Interest Bearing Liabilities 372

Provisions 372

Payables 373

Equity 374

Cash Flow Reconciliation 376

Contingent Liabilities and Assets 377

Executive Remuneration 378

Remuneration of Auditors 379

Average Staffing Levels 379

Financial Instruments 380

Revenues Administered on Behalf of Government 384

Expenses Administered on Behalf of Government 384

Assets Administered on Behalf of Government 386

Liabilities Administered on Behalf of Government 387

Administered Reconciliation Table 388

Administered Contingent Liabilities 389

Administered Investments 390

Administered Financial Instruments 391

Appropriations 395

Assets Held in Trust 406

Reporting of Outcomes 407


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DEPARTMENT OF FAMILY AND COMMUNITY SERVICES

STATEMENT OF FINANCIAL PERFORMANCE

for the year ended 30 June 2005

2005 2004Notes $'000 $'000

Revenues from ordinary activities Revenues from Government 4A 2,327,579 2,479,569 Goods and services 4B 2,698 1,536 Interest 4C 2 14 Revenue from sale of assets 5E 2 39 Foreign exchange gains 4D 1 4 Other 4E 3,821 2,155 Fundamental Error 4F 48,410 -

Revenues from ordinary activities 2,382,513 2,483,317

Expenses from ordinary activities (excluding borrowing costs expense) Employees 5A 234,604 299,258 Suppliers 5B 158,581 198,586 Depreciation and amortisation 5C 11,560 16,172 Write-down and impairment of assets 5D 536 672 Value of assets sold 5E 60 135 Resources Provided Free of Charge 5F 451,705 - Foreign exchange loss 5G 1 34 Payments for Service Delivery 5H 1,457,481 1,967,322 Other 5I 491 756

Expenses from ordinary activities (excluding borrowing costs expense) 2,315,019 2,482,935

Borrowing costs expense 6A 228 317

Operating Surplus or (Deficit) from Ordinary Activities after income

tax 67,266 65

Net credit/(debit) to asset revaluation reserve 453 7,535

Total Revenues, Expenses and Valuation Adjustments Attributable to

Members of the Parent Entity and Recognised Directly in Equity 453 7,535

Total Changes in Equity other than those resulting from transactions

with the Owners as Owners 67,719 7,600

The above statement should be read in conjunction with the accompanying notes.


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STATEMENT OF FINANCIAL POSITION

as at 30 June 2005

2005 2004Notes $'000 $'000

ASSETS Financial Assets

Cash 7A 5,449 2,554 Receivables 7B 151,506 74,057

Total Financial Assets 156,955 76,611 Non-Financial Assets

Land and buildings 8A,C 10,122 21,228 Infrastructure, plant and equipment 8B,C 4,565 5,992 Intangibles 8D 14,795 31,762 Other non-financial assets 8E 22,512 9,883

Total Non-Financial Assets 51,994 68,865

Total Assets 208,949 145,476

LIABILITIES Interest Bearing Liabilities

Leases 9A 1,467 2,385 Other interest bearing liabilities 9B - 2,079

Total Interest Bearing Liabilities 1,467 4,464 Provisions

Employees 10A 42,294 82,922 Other provisions 10B 3,644 3,058

Total Provisions 45,938 85,980 Payables

Suppliers 11A 28,462 35,218 Other payables 11B 48,316 610

Total Payables 76,778 35,828

Total Liabilities 124,183 126,272

NET ASSETS 84,766 19,204

EQUITY Contributed Equity 12A 3,225 10,773 Reserves 12A 8,873 10,864 Retained Surpluses / (Accumulated Deficits) 12A 72,668 (2,433)

TOTAL EQUITY 12A 84,766 19,204

Current Assets 179,467 84,142 Non-current Assets 29,482 61,334 Current Liabilities 90,430 66,772 Non-current Liabilities 33,753 59,500




STATEMENT OF CASH FLOWS


2005 2004Notes $'000 $'000

Goods and services - Non-Government Cash Received

Goods and services 2,425 5,724 Appropriations 2,352,669 2,472,297 Interest 2 13 GST received from ATO 10,820 21,914 Other 224 194

Total Cash Received 2,366,140 2,500,142

Cash Used Employees 238,914 298,233 Suppliers 148,195 219,663 Borrowing costs 228 351 Payments for Service Delivery 1,958,060 1,969,259

Total Cash Used 2,345,397 2,487,506

Net Cash From / (Used By) Operating Activities 13 20,743 12,636

INVESTING ACTIVITIES Cash Received

Proceeds from sales of property, plant and equipment 2 39

Total Cash Received 2 39

Cash Used Purchase of property, plant and equipment 15,420 5,936 Purchase of intangibles 3,080 8,054

Total Cash Used 18,500 13,990

Net Cash From / (Used By) Investing Activities (18,498) (13,951)

FINANCING ACTIVITIES Cash Received

Appropriations - contributed equity 650 925

Total Cash Received 650 925

Cash Used

Total Cash Used - -

Net Cash From / (Used By) Financing Activities 650 925

Net Increase or (Decrease) in Cash Held 2,895 (390) Cash at the beginning of the reporting period 2,554 2,944

Cash at the End of the Reporting Period 7A 5,449 2,554



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SCHEDULE OF COMMITMENTS

as at 30 June 2005

2005 2004 $'000 $'000

BY TYPE

Capital Commitments

Infrastructure, plant and equipment 20,368 - Investments - -

Total Capital Commitments 20,368 -

Other Commitments

Operating leases1 90,135 261,831

Project commitments 13,702 - Research and development 61,552 593 Other commitments2

1,430 68,593 Total Other Commitments 166,819 331,017

Commitments Receivable (16,977) (30,042) Net Commitments by Type 170,210 300,975

BY MATURITY

Operating Lease Commitments

One year or less 15,758 40,077 From one to five years 33,126 117,869 Over five years 33,075 80,082

Total Operating Lease Commitments 81,959 238,028

Other Commitments

One year or less 33,965 28,621 From one to five years 51,571 30,041 Over five years 2,715 4,285

Total Other Commitments 88,251 62,947 Net Commitments by Maturity 170,210 300,975

NB: Commitments are GST inclusive where relevant.

1 Operating leases included are effectively non-cancelable and comprise:

Nature of lease General description of leasing arrangementLeases for office accommodation The Department of Family and Community Services has 17

accommodation leases and 2 separate leases for offsite storage facilities. The Department's lease payments are subject to review in 8 cases, with one being fixed at Central Park in Western Australia. The remainder have predetermined fixed escalators or are linked to CPI movements.

Agreements for the provision of motor vehicles to senior executive officers

No contingent rentals exist.

Leases for office equipment There are a small number of office equipment leases (excluding IT) that range from 3 to 5 years.

2 Other commitments comprise other operational agreements and undertakings with suppliers to provide goods and services.



SCHEDULE OF CONTINGENCIES

as at 30 June 2005

Contingent Liabilities Indemnities Claims for damages/costs Total

2005 2004 2005 2004 2005 2004

Balance from previous period 100 100 298 200 398 300

New - - - 148 - 148

Re-measurement - - 11 (50) 11 (50)

Liabilities crystallised - - 161 - 161 -

Obligations expired 100 - - - 100 -

Total Contingent Liabilities - 100 148 298 148 398

Contingent Assets Indemnities Claims for damages/costs Total

2005 2004 2005 2004 2005 2004

Balance from previous period - - 232 218 232 218

New - - - - - -

Re-measurement - - (232) 14 (232) 14

Assets crystallised - - - - - -

Expired - - - - - -

Total Contingent Assets - - - 232 - 232

Net Contingencies - 100 148 66 148 166

Details of each class of contingent liabilities and assets, including those not included above because they cannot be quantified or considered remote, are disclosed in Note 14: Contingent Liabilities and Assets.

The above schedule should be read in conjunction with the accompanying notes.


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SCHEDULE OF ADMINISTERED ITEMS

2005 2004Notes $'000 $'000

Revenues Administered on Behalf of Government


Non-taxation Revenue

Interest 19 323 372 Child Support Revenue 19 389,442 807,370 NZ Reciprocal Agreement 19 78,013 88,887 Other sources of non-taxation revenue 19 31,560 101,572

Total Revenues Administered on Behalf of Government 499,338 998,201

Expenses Administered on Behalf of Government


Grants 20 2,751,820 2,544,872 Subsidies 20 13,323 13,081 Personal benefits - indirect 20 14,571 36,574 Personal benefits - direct 20 45,485,904 61,480,603 Suppliers 20 49,886 53,017 Write-down and impairment of assets 20 (99,929) 129,607 Interest 20 11,219 42,857 Other 20 674,826 891,891

Total Expenses Administered on Behalf of Government 48,901,620 65,192,502

This schedule should be read in conjunction with the accompanying notes.



SCHEDULE OF ADMINISTERED ITEMS (continued)

2005 2004Notes $'000 $'000

Assets Administered on Behalf of Government

as at 30 June 2005

Financial Assets

Cash 21 2,611 2,016 Receivables 21 1,160,495 2,465,834 Investments 21 41,385 905

Total Financial Assets 1,204,491 2,468,755

Non-financial Assets

Prepaid grants 21 181,180 87 Total Non-financial Assets 181,180 87 Total Assets Administered on Behalf of Government 1,385,671 2,468,842

Liabilities Administered on Behalf of Government

as at 30 June 2005

Interest Bearing Liabilities

Loans 22 - 574,521 Total Interest Bearing Liabilities - 574,521

Provisions

Personal Benefit provisions 22 2,745,140 2,598,819 Total Provisions 2,745,140 2,598,819

Payables

Personal Benefits Payable 22 413,179 1,482,685 Grants and subsidies 22 19,596 17,110 Child Support Liability 22 - 113,665 Other payables 22 3,731 16,945

Total Payables 436,506 1,630,405 Total Liabilities Administered on Behalf of Government 3,181,646 4,803,745

Net Assets Administered on Behalf of Government 23 (1,795,975) (2,334,903)

Current Assets 206,281 528,277 Non-current Assets 1,179,390 1,940,565 Current Liabilities 2,616,247 4,139,651 Non-current Liabilities 565,399 664,094



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2005 2004 $'000 $'000

Administered Cash Flows


Operating Activities

Cash Received

Interest 24 330 Reciprocal agreement with New Zealand 80,731 92,812 GST received from ATO 102,392 72,019 Child Support Payments 385,123 698,988 Other Cash Received 549,231 193,709 Appropriations from related entities 142,788 26,054

Total Cash Received 1,260,289 1,083,912

Other

Subsidies 13,331 12,873 Appropriations paid to related entities 179,926 59,261,741 Personal benefits 40,194 32,659 Grants 2,980,590 2,553,430 Child Support Payments 415,572 746,770 Other Cash Used 283,802 309,879

Total Cash Used 3,913,415 62,917,352

Net Cash From / (Used In) Operating Activities (2,653,126) (61,833,440)

Investing Activities

Cash Received

Other Cash Received - 303 Total Cash Received - 303

Total Cash Used - -

Net Cash From / (Used In) Investing Activities - 303

Financing Activities

Other

Repayment of Student Financial Supplement Scheme 24 56,091 GST Appropriation - 73,198

Total Cash Received 24 129,289

Cash Used

Student Financial Supplement Scheme - Buyback 9,223 208,935 Return of GST Appropriations to the OPA - 66,039

Total Cash Used 9,223 274,974

Net Cash From / (Used In) Financing Activities (9,199) (145,685)

Net Increase / (Decrease) in Cash Held (2,662,325) (61,978,822) Cash at the beginning of the reporting period 2,016 2,224 Cash from the Official Public Account for:

- Appropriations 3,014,805 62,628,164 - Special accounts 490,185 764,149

Cash to Official Public Account for: - Special accounts (457,662) (648,643) - Other (384,408) (765,056)

Cash at the End of the Reporting Period 2,611 2,016





2005 2004Notes $'000 $'000

Administered Commitments

as at 30 June 2005

BY TYPE

Capital Commitments

Land and buildings - - Infrastructure, plant and equipment - -

Other Commitments

Project commitments - - Research and development - - Other commitments 5,962,124 5,658,309

Total Other Commitments 5,962,124 5,658,309

Commitments Receivable (479,895) (527,083) Net Commitments by Type 5,482,229 5,131,226

BY MATURITY

Capital Commitments

One year or less - - From one to five years - - Over five years - -

Other Commitments

One year or less 2,291,105 1,995,055 From one to five years 3,317,721 3,302,390 Over five years (126,597) (166,219)

Net Administered Commitments by Maturity 5,482,229 5,131,226

NB: All commitments are GST inclusive where relevant.



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Administered Contingencies

as at 30 June 2005

Administered Contingent Liabilities Claims for Damages Total

2005 2004 2005 2004

Balance from previous period 97 - 97 -

New - 97 - 97

Re-measurement (97) - (97) -

Liabilities crystallised - - - -

Obligations expired - - - -

Total Administered Contingent Liabilities - 97 - 97

2005 2004

Administered contingent assets Nil Nil

Unquantifiable and remote contingencies are disclosed in Note 24: Administered Contingent Liabilities.

Statement of Activities Administered on Behalf of Government

The major administered activities of the Agency are directed towards achieving the three outcomes described in Note 1 to the Financial Statements. The major financial activities are the payment of benefit entitlements under the Social Security Act and A New Tax System (ANTS) Act as well as the delivery of grant and subsidy programmes.

Details of planned activities for the year can be found in the Agency Portfolio Budget and Portfolio Additional Estimates Statements for 2004-05, which have been tabled in Parliament.




NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS


Note 1: Summary of Significant Accounting Policies 14

Note 2: Adoption of AASB Equivalents to International Financial Reporting Standards from 2005-2006 23

Note 3: Events Occurring After Balance Date 27

Note 4: Operating Revenues 28

Note 5: Operating Expenses 32

Note 6: Borrowing Costs Expense 34

Note 7: Financial Assets 35

Note 8: Non-Financial Assets 36

Note 9: Interest Bearing Liabilities 43

Note 10: Provisions 43

Note 11: Payables 44

Note 12: Equity 45

Note 13: Cash Flow Reconciliation 47

Note 14: Contingent Liabilities and Assets 48

Note 15: Executive Remuneration 49

Note 16: Remuneration of Auditors 50

Note 17: Average Staffing Levels 50

Note 18: Financial Instruments 51

Note 19: Revenues Administered on Behalf of Government 55

Note 20: Expenses Administered on Behalf of Government 55

Note 21: Assets Administered on Behalf of Government 57

Note 22: Liabilities Administered on Behalf of Government 58

Note 23: Administered Reconciliation Table 59

Note 24: Administered Contingent Liabilities 60

Note 25: Administered Investments 61

Note 26: Administered Financial Instruments 62

Note 27: Appropriations 66

Note 28: Assets Held in Trust 77

Note 29: Specific Payment Disclosures 77

Note 30: Reporting of Outcomes 78


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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of Department of Family and Community Services

The objective of the Department of Family and Community Services is to create a fair and cohesive Australian society by promoting the economic and social well being of all Australians, particularly those in need.

The Department is structured to meet three outcomes:

Outcome 1 - Families are strong

Services and assistance that contribute to children and young people having the best possible start to life; promote healthy family relationships; allow families to adapt to changing economic and social conditions; and encourage families that nurture individuals and take an active part in their community.

Outcome 2 - Communities are strong

Services and assistance that encourage communities to be self-reliant and to connect with their members; and promote partnerships between business, communities and governments.

Outcome 3 - Individuals reach their potential

Services and assistance that facilitate people to participate actively in economic and community life, work to their capacity, access a responsive and sustainable safety net and fully develop their capabilities.

Agency activities contributing toward these outcomes are classified as either departmental or administered. Agency activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Agency in its own right. Administered activities involve the management or oversight by the Agency, on behalf of the Government, of items controlled or incurred by the Government.

Agency activities are identified under four headings for Outcome 1.

Output Group 1.1 Family Assistance

Output Group 1.2 Youth and Student Support

Output Group 1.3 Child Support and

Output Group 1.4 Child Care Support.

Agency activities are identified under two headings for Outcome 2.

Output Group 2.1 Housing Support and

Output Group 2.2 Community Support.

Agency activities are identified under four headings for Outcome 3.

Output Group 3.1 Labour Market Assistance

Output Group 3.2 Support for People with a Disability

Output Group 3.3 Support for Carers and

Output Group 3.4 Support for the Aged.

The Agency comprises the Social Security Appeals Tribunal and the Department of Family and Community Services.

The continued existence of the Agency in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for the Agency's administration and programs.



1.2 Basis of Accounting

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

Finance Minister's Orders (or FMOs, being the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 30 June 2005));

Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Board; and

Consensus Views of the Urgent Issues Group.

The Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets, which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 14).

Revenues and expenses are recognised in the Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for Departmental items, except where otherwise stated at Note 1.18.

1.3 Changes in Accounting Policy

The accounting policies used in the preparation of these financial statements are consistent with those used in 2003-04, except in respect of the Family Tax Benefit. In previous years, FaCS reported all assets and liabilities for the Family Tax Benefit (FTB) payments under the Taxation Liability Method (TLM). The TLM method recognises assets and liabilities when beneficiaries lodge their tax return. On advice from the Department of Finance and Administration, FaCS has restated all assets and liabilities for FTB under the Economic Transaction Method (ETM). The ETM method requires an entity to estimate the potential assets and liabilities that may have accrued during the current year and recognise these at the end of the reporting period. This change has resulted in an increase in the receivable for FTB of $524,292,494, and a decrease in the payable for FTB of $126,841.

A liability was recognised for the first time in 2003-04 for the Pension Bonus Scheme and is included within Age Pension expenditure figures. This year a liability has been calculated for current registrants ($132m) and a provision has also been recognised for potential registrants ($565m) of the Scheme and is based on an Actuarial Assessment of the Scheme, conducted by the Australian Government Actuary. In 2003-04 the non current portion of the liability was recorded as a payable in the financial statements. For 2004-05 this amount has been more appropriately reported as a provision.


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1.4 Revenue

Revenues from GovernmentAmounts appropriated for Departmental outputs appropriations for the year (less any current year savings and reductions) are recognised as revenue, except for certain amounts which relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Resources Received Free of ChargeServices received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of a restructuring of administrative arrangements (refer to Note 1.5).

Other RevenueRevenue from the sale of goods is recognised upon the delivery of goods to customers.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts or other agreements to provide services. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services are recognised at the nominal amounts due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is judged to be less rather than more likely.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset.

Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.

1.5 Transactions with the Government as Owner

Equity injectionsAmounts appropriated which are designated as 'equity injections' for a year (less any savings offered up in Portfolio Additional Estimates Statements) are recognised directly in Contributed Equity in that year.

Restructuring of Administrative ArrangementsNet assets received from or relinquished to another Commonwealth agency or authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

1.6 Employee Entitlements

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for wages and salaries (including non-monetary benefits), annual leave and sick leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of the reporting date are also measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.



All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

LeaveThe liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Agency is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration, including the Agency's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2005.The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancyProvision is made for separation and redundancy benefit payments. The Agency recognises an expense and liability for separation and redundancy benefit payments when an offer has been made and has been formally accepted by the employee.

SuperannuationStaff of the Agency are members of the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. The liability for their superannuation benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course.

The Agency makes employer contributions to the Australian Government at rates determined by an actuary to be sufficient to meet the cost to the Australian Government of the superannuation entitlements of the Agency's employees.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

1.7 Leases

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets and operating leases under which the lessor effectively retains substantially all such risks and benefits.

The Agency maintains finance leases for certain information technology assets. Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the beginning of the lease term and a liability recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a basis, which is representative of the pattern of benefits derived from the leased assets. The net present value of future net outlays in respect of surplus space under non-cancelable lease agreements is expensed in the period in which the space becomes surplus.

Lease incentives taking the form of 'free' leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.


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1.8 Borrowing Costs

All borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifying assets, in which case they are capitalised. The amount capitalised in a reporting period does not exceed the amount of costs incurred in that period.

1.9 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount.

1.10 Other Financial Instruments

Government loans are carried at the balance yet to be repaid. Interest is expensed as it accrues unless it is directly attributable to a qualifying asset.

Trade CreditorsTrade creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Contingent Liabilities and Contingent AssetsContingent liabilities (assets) are not recognised in the Statement of Financial Position but are discussed in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability (asset), or represent an existing liability (asset) in respect of which settlement is not probable or the amount cannot be reliably measured. Remote contingencies are part of this disclosure. Where settlement becomes probable, a liability (asset) is recognised. A liability (asset) is recognised when its existence is confirmed by a future event, settlement becomes probable or reliable measurement becomes possible.

1.11 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor Agency's accounts immediately prior to the restructuring.



1.12 Infrastructure (Land, Buildings and Property), Plant and Equipment

Asset Recognition ThresholdPurchases of infrastructure, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Revaluations

BasisBuildings, plant and equipment are carried at valuation, being revalued annually with sufficient frequency such that the carrying amount of each asset class is not materially different, at reporting date, from its fair value. Valuations undertaken in any year are as at 30 June.

Fair values for each class of asset are determined as shown below.

Asset class Fair value measured at:

Leasehold improvements Depreciated replacement cost

Plant and equipment Written down current cost

Assets which are surplus to requirements are measured at their net realisable value. As at 30 June 2005 there were no assets in this situation (30 June 2004: nil).

FrequencyLand and building assets are subject to a formal valuation every three years. Plant and equipment assets are subject to a formal revaluation every four years. Formal valuations are carried out by an independent qualified valuer. In between formal valuations, PP&E assets are revalued using an appropriate index reflecting movements in the value of similar assets.

Freehold land, buildings on freehold land and leasehold improvements subject to formal valuations are each revalued progressively on a geographical basis. In between formal valuations, these assets are revalued using an appropriate index reflecting movements in the value of similar assets.

ValuationAll valuations are conducted by an independent qualified valuer.

Depreciation Depreciable infrastructure, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Agency using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Purchased software 2 to 5 years 2 to 5 yearsLeasehold improvements 8 years or lease term 8 years or lease termPlant and equipment 3 to 10 years 3 to 10 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 5C.


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1.13 Impairment of Non-Current Assets

Non-current assets carried at up-to-date fair value at the reporting date are not subject to impairment testing.

The non-current assets carried at cost or deprival value, which are not held to generate net cash inflows, have been assessed for indications of impairment. Where indications of impairment exist, the carrying amount of the asset is compared to the higher of its net selling price and depreciated replacement cost and is written down to that value if greater.

The Department reviewed all fixed assets for impairment for which none were found to be impaired.

1.14 Intangibles

The Agency's intangibles comprise internally developed software for internal use. These assets are carried at cost.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the Agency's software is 5 to 10 years (2003-04: 5 to 10 years). Note 8D.

All software assets were assessed for indications of impairment as at 30 June 2005. Three software assets were found to be impaired. This resulted in an adjustment of $72,644.

1.15 Taxation

The Agency is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:

except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

except for receivables and payables.

1.16 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material.

1.17 Insurance

The Agency has insured for risks through the Government's insurable risk managed fund, called 'Comcover'. Workers' compensation is insured through the Government's Comcare Australia.

1.18 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for Departmental items, including the application to the greatest extent possible of Accounting Standards, Accounting Interpretations and UIG Consensus Views.

Administered Cash Transfers to and from Official Public Account



Revenue collected by the Agency for use by the Government rather than the Agency is Administered Revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Agency on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 23. Thus the Schedule of Administered Items largely reflects the Government's transactions, through the Agency, with parties outside the Government.

RevenueAll administered revenues are revenues relating to the core operating activities performed by the Agency on behalf of the Commonwealth.

LoansLoans are recognised at the balance of principal outstanding. Collectability is reviewed at balance date. Provision is made for bad and doubtful loans where collection of the loan or part thereof is judged to be less rather than more likely. In rare circumstances, loan repayment may be waived. Interest is credited to revenue as it accrues.

Administered InvestmentsAdministered investments in controlled entities are not consolidated because their consolidation is relevant only at the Whole of Government level.

Administered investments, other than those required to be equity accounted, are to be recognised on the cost basis, adjusted for any subsequent capital injections or withdrawals and for any impairment losses.

Administered ReceivablesAdministered receivables represent debts owed to the Agency by past and present customers. Administered receivables exclude amounts expected to be recovered on behalf of other agencies under the Social Security (Administration) Act 1999.

All debts known to be irrecoverable are excluded from the value of administered receivables. Irrecoverable debts comprise amounts written off pursuant to section 1236 of the Social Security Act 1991 and amounts waived pursuant to Section 1237 of the Social Security Act 1991. In accordance with Departmental guidelines for the operation of waivers under section 1237 of the Social Security Act 1991, where a debt is not likely to exceed a threshold amount and it is not cost effective for the Commonwealth to recover the debt, the total value of such amounts are waived.

The provision for doubtful debts for Personal Benefits is based on an actuarial assessment, conducted by the Australian Government Actuary (AGA) in May 2005. The provision is based on a program based percentage applied based on the historical trends in debt recovery for each program. Overall the provision reflects 18% of the total debt balance at 30 June. Current recovery rates are used to estimate the current and non current administered receivables.

Grants and Subsidies

The Agency administers a number of grant and subsidy schemes on behalf of the Government.

Grant and subsidy liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made.

A commitment is recorded when the Government enters into an agreement to make these grants but services have not been performed or criteria satisfied. When grant monies are paid in advance for performance or eligibility, a prepayment is recognised.

1.19 Voluntary Disclosure - Administered

The net value of administered personal benefit expenditure made during 2004-05 totaled $45.5 billion (2003-04: $61.5 billion). Payments to customers are determined in accordance with provisions under Social Security Law and other legislation. Payments made under Social Security Law are assessed, determined and paid by officers of Centrelink under delegation from the Agency.


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Payments made by Centrelink appear in the financial statements of the Agency, which receives appropriations for the payments.

Readers of these Financial Statements should note that the Social Security Administration Act 1999 imposes an obligation on customers to disclose to Centrelink information about financial and personal circumstances that affect entitlement to payment. This is a necessary part of Centrelink's administration, which acknowledges that, at the time certain information is required, only the customer is in a position to provide that information.

Unreported changes in circumstances can lead to incorrect payment, even if no deliberate fraud is intended. However, risks associated with relying on voluntary disclosure by customers are mitigated by a comprehensive portfolio risk management plan, underpinned by compliance strategies, which have been built up over many years. The compliance framework has been developed to meet the requirements of social security legislation and is administratively effective.

The compliance framework does not rely solely on information provided by customers to determine customers' entitlement. A comprehensive risk management strategy minimises the potential for incorrect payment by subjecting customers to a variety of review processes. If debts are identified, Centrelink seeks to recover them in a lump sum or by installments. While the risk management strategy is principally directed at minimising debts, the detection of underpayments will also result in an adjustment to the customer's level of entitlement.

The risk management strategy focuses on three objectives: prevention, detection and deterrence. It encompasses:

Pre-grant procedures, which require proof of identity and verification of key facts relevant to eligibility;

'Front door' reviews which check new client details against information held by Centrelink before any payments are made. These processes assist in preventing dual payments to customers, detecting incorrect dependant details and identifying outstanding debts owed to Centrelink;

Frequent opportunities for customers to advise changes of circumstances through personal lodgment of periodic review forms;

Data matching reviews, such as the extensive data-matching program authorised under the Data-Matching Program (Assistance and Tax) Act 1990. This program identifies client information affecting entitlement which has not been disclosed and covers information relating to identity, payments received from other Government agencies and undisclosed income or assets; and

Selective reviews which target customers with characteristics known to have a high incidence of incorrect payment. Selective reviews are targeted through the use of risk algorithms generated from statistical analysis of customer characteristics for various customer populations and are continually refined in response to the outcomes of review activity and emerging risk areas.

In addition, the Agency conducts regular random samples of payment types. These show that the most likely cause of incorrect payment is customers' failure to report employment income. Much of this is subsequently captured through data matching and overall, the residual effect on outlays is estimated to be minimal.

While Centrelink acts promptly to address all areas of material risk as they emerge, the Agency accepts that a small proportion of non-compliance may go undetected. However, given the above risk management strategy, and the results of the random samples, the Agency is satisfied that the incidence of incorrect payment is not material in terms of total payments, and that the financial statements materially reflect the activities of the Agency's administered program.



Note 2: Adoption of AASB Equivalents to International Financial Reporting Standards from

2005-2006

The Australian Accounting Standards Board has issued replacement Australian Accounting Standards to apply from 2005-06. The new standards are the Australian Equivalents to International Financial Reporting Standards (AEIFRS). The International Financial Reporting Standards are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply in the meantime, including reporting periods ending on 30 June 2005.

The purpose of issuing AEIFRS is to enable Australian entities reporting under the Corporations Act 2001 to be able to more readily access overseas capital markets by preparing their financial reports according to accounting standards more widely used overseas.

For-profit entities complying with AEIFRS will be able to make an explicit and unreserved statement of compliance with International Financial Reporting Standards (IFRS) as well as a statement that the financial report has been prepared in accordance with Australian Accounting Standards.

It is expected that the Finance Minister will continue to require compliance with the Accounting Standards issued by the AASB, including the AASB Equivalents to IFRSs, in his Orders for the Preparation of Departmental financial statements for 2005-06 and beyond.

AEIFRS contain certain additional provisions that will apply to not-for-profit entities, including Australian Government agencies. Some of these provisions are in conflict with IFRS, and therefore the Agency will only be able to assert that the financial report has been prepared in accordance with Australian Accounting Standards. AAS 29 Financial Reporting by Government Departments will continue to apply under AEIFRS.

Accounting Standard AASB 1047 Disclosing the impact of Adopting Australian Equivalents to International Financial Reporting Standards requires that the financial statements for 2004-05 disclose:

an explanation of how the transition to AEIFRS is being managed;

narrative explanations of the key policy differences arising from the adoption of AEIFRS;

any known or reliably estimable information about the impacts on the financial report had it been prepared using the Australian equivalents to IFRS; and

Where an entity is not able to make a reliable estimate, or where quantitative information is not known, the entity should update the narrative disclosures of the key differences in accounting policies that are expected to arise from the adoption of AEIFRS.

The purpose of this Note is to make these disclosures.

Management of the transition to AEIFRS

The Agency has taken the following steps for the preparation towards the implementation of AASB Equivalents:

The Agency's Audit Committee is tasked with oversight of the transition to and implementation of the AASB Equivalents to IFRSs. The Chief Finance Officer is formally responsible for the project and reports regularly to the Audit Committee on progress against the formal plan approved by the Committee.

The plan requires the following key steps to be undertaken and sets deadlines for their achievement:

All major accounting policy differences between current AASB standards and AEIFRS were identified by 30 June 2004.

Systems changes necessary to be able to report under the AEIFRS, including those necessary to capture data under both sets of rules for 2004-05, and the testing and implementation of those changes.

A transitional balance sheet as at 1 July 2004, was completed and submitted to Audit during the year. All audit findings were addressed.

An AEIFRS compliant balance sheet as at 30 June 2005 was prepared during the preparation of the 2004-05 statutory financial reports.

The 2004-05 Balance Sheet under AEIFRS will be reported to the Department of Finance and Administration in line with their reporting deadlines.

The plan also addresses the risks to successful achievement of the above objectives and includes strategies to keep implementation on track to meet deadlines.

Consultants were engaged where necessary to assist with each of the above steps.


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2005-2006 (continued)

Major changes in accounting policy

The Agency believes that the first financial report prepared under AEIFRS i.e. at 30 June 2006, will be prepared on the basis that the Agency will be a first time adopter under AASB 1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards. Changes in accounting policies under AEIFRS are applied retrospectively i.e. as if the new policy had always applied except in relation to the exemptions available and prohibitions under AASB 1. This means that an AEIFRS compliant balance sheet has to be prepared as at 1 July 2004. This will enable the 2005-06 financial statements to report comparatives under AEIFRS.

A first time adopter of AEIFRS may elect to use exemptions under paragraphs 13 to 25E. When developing the accounting policies applicable to the preparation of the 1 July opening balance sheet, no exemptions were applied by the Agency.

Changes to major accounting policies are discussed in the following paragraphs.

Management's review of the quantitative impacts of AEIFRS represents the best estimates of the impacts of the changes as at reporting date. The actual effects of the impacts of AEIFRS may differ from these estimates due to:

continuing review of the impacts of AEIFRS on the Agency's operations;

potential amendments to the AEIFRS and AEIFRS Interpretations; and

emerging interpretation as to the accepted practice in the application of AEIFRS and the AEIFRS Interpretations.

Infrastructure, plant and equipment

It is expected that the 2005-06 Finance Minister's Orders will continue to require property plant and equipment assets to be valued at fair value in 2005-06.

All borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifying assets, in which case they are capitalised. It is expected that the FMOs for 2005-06 will elect to expense all borrowing costs under AEIFRS.

An analysis of borrowing costs revealed that no material amounts have been capitalised. Consequently, there are no adjustments for borrowing costs.

Intangible Assets

The Agency currently recognises internally-developed software assets on the cost basis.

The Australian Equivalent on Intangibles does not permit intangibles to be measured at valuation unless there is an active market for the intangible. The Agency's internally-developed software is specific to the needs to the Agency and is not traded.

Prior to 1999-2000 internally developed software was valued at replacement cost. All internally developed software valued at replacement cost have a zero written down value as at 1 July 2004. As such, no adjustment is made for intangible assets.

Impairment of Intangibles and Property, Plant and Equipment

Agency’s policy on impairment of non-current assets is at Note 1.14

Under AEIFRS these assets will be subject to assessment for impairment and, if there are indications of impairment, an assessment of the degree of impairment. (Impairment measurement must also be done, irrespective of any indications of impairment, for intangible assets not yet available for use). The impairment test is that the carrying amount of an asset must not exceed the greater of (a) its fair value less costs to sell and (b) its value in use. 'Value in use' is the netpresent value of net cash inflows for cash generating units of the Agency (in particular, of the Education Services Business Operation) and depreciated replacement cost for other assets which would be replaced if Agency were deprived of them.





The most significant changes are that, for the Agency's cash generating assets, the recoverable amount is only generally to be measured where there is an indication of impairment. Previously all assets' recoverable amount was tested.

However, an impairment assessment of the Agency's assets indicated that no adjustments will be required.

Decommissioning, Restoration and Make-good

The Agency has assessed non-financial assets for obligations for decommissioning, restoration and make-good. Leasehold improvements held by the Agency have make-good obligations. AEIFRS requires that a provision for make good be recognised against the asset and be expensed through depreciation in future years. As at 30 June 2005 the Agency had recorded $3,644,000 in make-good provisions.

The impact of this change would be to increase the gross cost of leasehold improvement assets by $3,644,000 and to increase accumulated depreciation by $2,286,425. This will result in an increase to accumulated results of $1,357,575, which includes an increase to depreciation expense of $543,596.

Employment Benefits

The provision for long service leave is measured at the present value of estimated future cash outflows using market yields as at the reporting date on national government bonds.

The 2003-04 Financial reports noted that the AEIFRS standards may require the market yield on corporate bonds to be used. The AASB has decided that a deep market in high quality corporate bonds does not exist and therefore national government bonds will be referenced.

AEIFRS require that annual leave that is not expected to be taken within 12 months of balance date be discounted. After assessing the staff leave profile, the Agency does not expect that any material amounts of the annual leave balance will not be taken in the next 12 months. Consequently, there are no adjustments required for non-current annual leave.

The impact of discounting the non-current annual leave would have been a decrease to employee liabilities as at 30 June 2005 of $247,826.

Administered Items

Assessment of the administered assets and liabilities of Agency indicate that there are no adjustments due to the transition to AEIFRS.

Financial Instruments

AEIFRS include an option for entities not to restate comparative information in respect of financial instruments in the first AEIFRS report. It is expected that Finance Minister’s Orders will require entities to use this option. Therefore, the amounts for financial instruments presented in the Agency’s 2004-05 primary financial statements are not expected to change as a result of the adoption of AEIFRS.

The Agency will be required by AEFIRS to review the carrying amounts of financial instruments at 1 July 2005 to ensure they align with the accounting policies required by AEIFRS. It is expected that the carrying amounts of financial instruments held by Agency will not materially change as a result of this process.


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*30 June

2005

30 June

2004

$'000 $'000

Reconciliation of Equity

Total Departmental Equity under AGAAP 84,766 19,204

Adjustments to Accumulated Results 1,606 2,174

Total Equity under AEIFRS 86,372 21,378

Reconciliation of Accumulated Results

Total Departmental Accumulated results under AGAAP 72,668 (2,433)

Adjustments:

Asset - carrying value for makegood 1,902 1,902

Depreciation (544) -

Discounting of Employee Benefits 272 272

Interest on Non-current Employee Benefits (24) -

Total Accumulated Results under AEIFRS 74,274 (259)

Reconciliation of Net surplus/(deficit) from ordinary

Activities for year ending 30 June 2005

Net surplus/ (deficit) from Ordinary activities under AGAAP 67,264

Adjustments

Interest on Non-current Employee Benefits (24)

Depreciation (544)

Net surplus/ (deficit) from Ordinary activities under AEIFRS 66,696

* 30 June results represent the accumulated impacts of AEIFRS from the date of transition.



Note 3: Events Occurring After Balance Date

There were no post date events.


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2005 2004 $'000 $'000

Note 4: Operating Revenues

Note 4A: Revenues from GovernmentAppropriations for outputs 2,327,579 2,479,569 Total revenues from government 2,327,579 2,479,569

Note 4B: Goods and ServicesServices 2,698 1,536 Total sales of goods and services 2,698 1,536

Rendering of services to: Related entities 385 939 External entities 2,313 597

Total rendering of services 2,698 1,536

Note 4C: Interest RevenueInterest on deposits 2 14 Total interest revenue 2 14

Note 4D: Net Foreign Exchange GainNon speculative 1 4 Total foreign exchange gains 1 4

Note 4E: Other RevenuesResources received free of charge 858 1,070 Assets stocktake adjustment 2,284 4 Other 679 1,081 Total other revenues 3,821 2,155



2005 2004 $'000 $'000

Note 4F: Fundamental ErrorNet revenue impact 48,410 - Total 48,410 -

Correction of Fundamental Error

The audited financial statements for the Agency for the year ended 30 June 2004 and 30 June 2003 were found to contain a fundamental error pertaining to the recognition of appropriation revenue and cash held with the Official Public Account (OPA), recognised as a receivable in 2003-04 and 2002-03.

The Agency undertook a review of its OPA balance in September 2004 and identified inconsistencies between the balance reported in the Audited Financial Statements and the balance as held by the Department of Finance and Administration.

The effect of the error on the financial statements is as follows:

For the year ended 30 June 2003,

Receivables: understated by $19.152 million

Appropriation Revenue: understated by $46.942 million

Appropriations Payable: overstated by $27.790 million

For the year ended 30 June 2004,

Receivables: understated by $48.410 million

Other Revenue: understated by $1.468 million

Accumulated Results $46.942 million

The Department has met its requirements to restate the financial information, and are represented in the following table.

2004 Restated 2003 Restated

$'000 $'000

Statement of Financial Performance

Revenues from ordinary activities Revenue from government 2,480,639 2,422,572 Sales of goods and service 1,536 738 Interest 14 3,343 Revenue from sale of assets 39 297 Foreign exchange gains 4 4 Other 2,553 1,132Total revenues from ordinary activities 2,484,785 2,428,086

Expenses from ordinary activities (excluding borrowing

cost expense)

Employees 299,258 270,572 Suppliers 198,586 174,867 Depreciation and amortisation 16,172 14,577 Write-down of assets 672 7,370 Value of asset sold 135 845 Foreign exchange loss 34 - Other 1,968,078 1,934,430Total expenses from ordinary activities (excluding borrowing cost expense) 2,482,935 2,402,661

Borrowing cost expense 317 244


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2005 2004 $'000 $'000


$'000 $'000

Net Surplus 1,533 25,181

Net credit/(debit) to asset revaluation reserve 7,535 3,094

Decrease in accumulated deficit on initial application of fair value under accounting standard AASB 1041: Revaluation of Non Current Assets - (94)

Decrease in accumulated deficit on application of accounting standard AASB 1028 - Measurement of Employee Benefits - (1,007)

Total revenues, expenses and valuation adjustments

recognised directly in equity 7,535 1,993

Total changes in equity other than those resulting from

transactions with the Australian Government as owners 9,068 27,174



2005 2004 $'000 $'000


$'000 $'000

Statement of Financial Position

Financial Assets

Cash 2,554 2,944 Receivables 30,937 35,482 - OPA Receivable 91,530 73,344Total Financial Assets 125,021 111,770

Non Financial Assets

L&B 21,228 14,418 I,P&E 5,992 7,152 Intangibles 31,762 32,145 Other non financial assets 9,883 15,286Total Non Financial Assets 68,865 69,001

Total Assets 193,886 180,771


Leases 2,385 2,170 Interest Bearing Liabilities 2,079 2,309Total Interest Bearing Liabilities 4,464 4,479

Provisions & Payables

Employee Provisions 85,980 81,895 Appropriation Payable - - Other Payables 35,828 36,776Total Provisions & Payables 121,808 118,671

Total Liabilities 126,272 123,150

Net Assets 67,614 57,621

Equity

Contributed Equity 10,773 9,848 Reserves 10,864 3,329 Retained surpluses / (Accumulated deficits) 45,977 44,444

Total Equity 67,614 57,621


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2005 2004 $'000 $'000

Note 5: Operating Expenses

Note 5A: Employee ExpensesWages and salary 169,529 219,274 Superannuation 35,797 40,386 Leave and other entitlements 18,743 29,683 Separation and redundancies 1,087 464 Other employee expenses 6,072 5,156 Total employee benefits expense 231,228 294,963 Worker compensation premiums 3,376 4,295 Total employee expenses 234,604 299,258

Note 5B: Supplier ExpensesGoods from external entities 7,353 7,196 Services from related entities 10,489 32,991 Services from external entities 111,173 123,864 Operating lease rentals* 29,566 34,535 Total supplier expenses 158,581 198,586

* These comprise minimum lease payments only.

Note 5C: Depreciation and Amortisation(i)Depreciation Other infrastructure, plant and equipment 2,304 3,489 Leasehold Improvements 13 1,482 Total Depreciation 2,317 4,971

(ii)Amortisation Software and other intangibles 5,027 8,433 Leasehold improvements 4,216 2,768 Total Amortisation 9,243 11,201 Total depreciation and amortisation 11,560 16,172

The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable asset are as follows:

Other infrastructure, plant and equipment 2,304 3,489 Leasehold Improvements 13 1,482 Software and other intangibles 5,027 8,433 Leasehold improvements 4,216 2,768 Total depreciation and amortisation 11,560 16,172

No depreciation or amortisation was allocated to the carrying value of other assets.

Note 5D: Write Down of AssetsFinancial assets

Bad and doubtful debts expense (374) 672 Non-financial assets

Infrastructure, Plant and Equipment 65 - Intangibles - write off 845 - Total write-down of assets 536 672



2005 2004 $'000 $'000

Note 5E: Net Losses from Sale of AssetsProceeds from disposal 2 39 Net book value of assets disposed (60) (71) Costs on disposal - (64)

Total proceeds from disposals 2 39 Total value of assets disposed (60) (135) Total net loss from disposal of assets (58) (96)

Note 5F: Resources Provided Free of ChargePayments for service delivery on behalf of DEWR and DEST 451,705 - Total resources provided free of charge 451,705 -

Note 5G: Net Foreign Exchange LossNon speculative (1) (34) Total foreign exchange losses (1) (34)

Note 5H: Payments For Service DeliveryCentrelink 1,437,948 1,949,518 Health Insurance Commission 8,605 8,485 Australian Taxation Office 10,497 8,884 Department of Veteran's Affairs 184 197 Other 247 238 Total payments for service delivery 1,457,481 1,967,322

Note 5I: OtherOther 491 756 Total other expenses 491 756


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2005 2004 $'000 $'000

Note 6: Borrowing Costs Expense

Note 6A: Borrowing Costs ExpenseFinance lease 228 306 Lease incentives - 11 Total borrowing costs expense 228 317



2005 2004 $'000 $'000

Note 7: Financial Assets

Note 7A: CashCash on hand 3 10 Cash at bank - Departmental 5,446 2,544 Total cash 5,449 2,554

All cash recognised is a current asset.

Note 7B: ReceivablesGoods and services 1,897 1,625 Less: Provision for doubtful debts (94) (727)

1,803 898 GST receivable from the Australian Taxation Office 2,846 4,207 Appropriations receivable

- OPA Receivable/Appropriations Receivable 97,524 43,120 Receivable from Centrelink for over estimation of service delivery 40,364 18,426 Other receivables (Net) 8,969 7,406 Total Receivables (net) 151,506 74,057

All receivables are current assets.

Receivables (gross) are aged as follows: Current 150,564 73,284 Overdue by: Less than 30 days 29 63 30 to 60 days 17 87 60 to 90 days 108 38 More than 90 days 882 1,312 Total receivables (gross) 151,600 74,784

The provision for doubtful debts is aged as follows: Current - - Overdue by: Less than 30 days - - 30 to 60 days - - 60 to 90 days - - More than 90 days (94) (727) Total provision for doubtful debts (94) (727)


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2005 2004 $'000 $'000

Note 8: Non-Financial Assets

Note 8A: Land and Buildings

Leasehold improvements - at cost - 4,649

- Accumulated depreciation - (426) - 4,223

- at 1999-00 valuation (deprival) - 256 - Accumulated depreciation - (256)

- -

- at 2002-03 valuation (fair value) - 10,801 - Accumulated depreciation - (2,552)

- 8,249

- at 2003-04 valuation (fair value) - 11,422 - Accumulated depreciation - (2,765)

- 8,657

- at 2004-05 valuation 12,920 - - Accumulated amortisation (3,231) -

9,689 -

- Assets under construction 433 99 Total leasehold improvements 10,122 21,228

Total Land and Buildings (non-current) 10,122 21,228

Note 8B: Infrastructure, Plant and EquipmentInfrastructure, plant and equipment

- under construction 391 396 391 396

- at 1999-00 valuation (deprival) - 538 - Accumulated depreciation - (370)

- 168

- at 2000-01 valuation (deprival) - 1,792 - Accumulated depreciation - (1,675)

- 117

- at 2002-03 valuation (fair value) - 157 - Accumulated depreciation - (86)

- 71

- at 2004-05 valuation 1,220 11,069 - Accumulated depreciation (1,220) (5,829)

- 5,240

- at 2004-05 valuation 6,070 - - Accumulated amortisation (1,896) -

4,174 -

Total Infrastructure, Plant and Equipment (non-current) 4,565 5,992


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(4

,216)

(2

,304)

(6

,520)

Oth

er m

ov

emen

ts

1

,55

0

1

,55

0

(3

40

)

1,2

10

Dis

posa

ls:

Fro

m d

isposa

l of

oper

atio

ns

-

-

(565)

(5

65

)

Oth

er d

isposa

ls

-

-

498

4

98

As

at

30

Ju

ne

20

05

Gro

ss b

ook v

alue

16,2

12

16,2

12

14,6

21

30,8

33

Acc

um

ula

ted d

epre

ciat

ion/a

mort

isat

ion

(6

,090)

(6

,090)

(1

0,0

56)

(1

6,1

46)

Clo

sing

net

boo

k va

lue

10,1

22

10,1

22

4,5

65

14,6

87


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

TA

BL

E B

- A

sset

s at

valu

ati

on

Item

Bu

ild

ing

s -

Lea

seh

old

Imp

rov

emen

ts

Lan

d &

Bu

ild

ing

s -

To

tal

Oth

er I

P&

ET

OT

AL

$'0

00

$'0

00

$'0

00

$'0

00

As

at

30

Ju

ne

20

05

Gro

ss v

alue

16,2

12

16,2

12

14,6

21

30,8

33

Acc

um

ula

ted d

epre

ciat

ion /

am

ort

isat

ion

(6

,090)

(6

,090)

(1

0,0

56)

(1

6,1

46)

Net

boo

k va

lue

10,1

22

10,1

22

4,5

65

14,6

87

As

at 3

0 J

un

e 2

00

4

Gro

ss v

alue

22,4

79

22,4

79

2,4

87

24,9

66

Acc

um

ula

ted d

epre

ciat

ion /

am

ort

isat

ion

(5

,573)

(5

,573)

(2

,131)

(7

,704)

Net

boo

k v

alu

e

16,9

06

1

6,9

06

3

56

1

7,2

62

TA

BL

E C

- A

sset

s h

eld

un

der

fin

an

ce l

ease

Item

Bu

ild

ing

s -

Lea

seh

old

Imp

rov

emen

ts

Lan

d &

Bu

ild

ing

s -

To

tal

Oth

er I

P&

ET

OT

AL

$'0

00

$'0

00

$'0

00

$'0

00

As

at

30

Ju

ne

20

05

Gro

ss v

alue

-

-

2,3

78

2

,378

Acc

um

ula

ted d

epre

ciat

ion /

am

ort

isat

ion

-

-

(721)

(7

21

)

Net

boo

k va

lue

-

-

1,6

57

1

,657

As

at 3

0 J

une

2004

Gro

ss v

alue

-

-

4,5

68

4,5

68

Acc

um

ula

ted d

epre

ciat

ion /

am

ort

isat

ion

-

-

(2,2

12)

(2

,212)

Net

boo

k v

alu

e -

-

2

,356

2

,356


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

TA

BL

E D

- A

sset

s u

nd

er c

on

stru

ctio

n

Item

Bu

ild

ing

s -

Lea

seh

old

Imp

rov

emen

ts

Lan

d &

Bu

ild

ing

s -

To

tal

Oth

er I

P&

ET

OT

AL

$'0

00

$'0

00

$'0

00

$'0

00

Gro

ss v

alu

e at

30 J

un

e 2005

433

433

391

824

Gro

ss v

alue

at 3

0 J

une

2004

99

99

396

495


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Note 8D: Intangibles

Computer software: Internally developed - in progress (non-current) 2,341 6,455

2,341 6,455

Internally developed - in use (non-current) 24,571 49,444 - Accumulated amortisation (12,368) (24,575)

12,203 24,869

Externally acquired - at cost (non-current) 2,248 2,364 - Accumulated amortisation (1,997) (1,987)

251 377

Copyright - at cost - 105 - Accumulated amortisation - (44)

- 61

Total intangibles (non-current) 14,795 31,762



2005 2004 $'000 $'000

TABLE A - Reconciliation of the opening and closing balances of intangibles

Item Computer

Software

Other

Intangibles

Intangibles -

Total

$'000 $'000 $'000

As at 1 July 2004

Gross book value 58,263 105 58,368

Accumulated depreciation/amortisation (26,562) (44) (26,606)

Net book value 31,701 61 31,762

Additions

by purchase 8,172 - 8,172

by finance lease - - -

from acquisition of operations - - -

Assets removed on restructure:

Book value (37,276) (105) (37,381)

Accumulated depreciation 17,209 60 17,269

Depreciation/amortisation expense (5,011) (16) (5,027)

As at 30 June 2005

Gross book value 29,159 - 29,159

Accumulated depreciation/amortisation (14,364) - (14,364)

Net book value 14,795 - 14,795


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

TABLE B - Intangibles under construction

Item Computer

Software

Other

Intangibles

TOTAL

$'000 $'000 $'000

Gross value at 30 June 2005 2,341 - 2,341

Gross value at 30 June 2004 6,455 - 6,455



2005 2004 $'000 $'000

Note 8E: Other Non-Financial AssetsPrepayment to Centrelink 21,990 4,692 Other Prepayments 522 5,191 Total other non-financial assets 22,512 9,883

All other non-financial assets are current assets.

Note 9: Interest Bearing Liabilities

Note 9A: LeasesFinance lease commitments Payable:

Within one year 845 1,580 In one to five years 842 1,152

Minimum lease payments 1,687 2,732 Deduct: future finance charges (220) (347) Net lease liability 1,467 2,385

Lease liability is represented by: Current 716 1,383 Non-current 751 1,002

Net lease liability 1,467 2,385

Finances leases exist in relation to IT assets. The leases are non-cancelable and for fixed terms averaging three years. The interest rate implicit in the leases averaged 10.23% (2004: 10.16%). At reporting date, the Department had finance leases with terms averaging three years. The lease assets secure the lease liabilities. The Agency guarantees the residual values of all assets leased. There are no contingent rentals.

Note 9B: Other Interest Bearing Liabilities

Lease incentives - 2,079 Total other interest bearing liabilities - 2,079

Other interest bearing liabilities are represented by: Current - 331 Non-current - 1,748

Total other interest bearing liabilities - 2,079

Note 10: Provisions

Note 10A: Employee ProvisionsSalaries and wages 411 6,218 Leave 35,238 71,480 Superannuation 6,645 5,015 Other - 209 Aggregate employee benefit liability and related on-costs 42,294 82,922

Employee provisions are represented by: Current 12,581 28,524 Non-current 29,713 54,398

42,294 82,922

Note 10B: Other ProvisionsProvision for make good - current 355 706 Provision for make good - non-current 3,289 2,352 Total other provisions 3,644 3,058


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Note 11: Payables

Note 11A: Supplier PayablesTrade creditors 26,042 32,719 Other creditors 2,420 2,499 Total supplier payables 28,462 35,218

All supplier payables are current liabilities.

Note 11B: Other Payables

Payable to Government 48,106 -

Unearned income 210 610 Total other payables 48,316 610

All other payables are current liabilities.


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 1

2:

Eq

uit

y

No

te 1

2A

: A

nal

ysi

s o

f E

qu

ity

Item

Acc

um

ula

ted

Res

ult

sA

sset

Rev

alu

ati

on

Res

erv

es

Co

ntr

ibu

ted

Eq

uit

yT

OT

AL

EQ

UIT

Y

20

05

$

'00

0

20

04

$

'00

0

20

05

$

'00

0

20

04

$

'00

0

20

05

$

'00

0

20

04

$

'00

0

20

05

$

'00

0

20

04

$

'00

0

Op

enin

g b

alan

ce a

s at

1 J

uly

(2,4

33

)

(2,4

98

)

10

,86

4

3

,32

9

1

0,7

73

9

,84

8

1

9,2

04

1

0,6

79

Net

su

rplu

s/d

efic

it

6

7,2

66

6

5

n/a

n/a

n/a

6

7,2

64

6

5

Net

rev

aluat

ion i

ncr

emen

t /

(dec

rem

ent)

n

/an

/a

45

3

7

,53

5

n/a

n/a

4

53

7,5

35

Dec

reas

e in

ret

ain

ed s

urp

luse

s o

n a

pp

lica

tio

n o

f tr

ansi

tio

nal

pro

vis

ion

s in

acc

ou

nti

ng

sta

nd

ard A

AS

B

10

41

-

-

n/a

n/a

n/a

-

-

-

Tra

nsa

ctio

ns

wit

h o

wn

er:

Dis

trib

uti

ons

to o

wner

:

Ret

urn

s o

f C

apit

al

Res

tru

ctu

rin

g

7

,83

5

-

(2

,44

5)

-

(8

,19

8)

-

(2

,80

6)

-

Co

ntr

ibu

tio

ns

by

ow

ner

:

Appro

pri

atio

ns

(equit

y i

nje

ctio

ns)

-

-

-

-

65

0

9

25

65

0

9

25

Clo

sin

g b

ala

nce

as

at

30 J

un

e

72

,66

8

(2

,43

3)

8

,87

2

1

0,8

64

3

,22

5

1

0,7

73

8

4,7

65

1

9,2

04

Less

: ou

tsid

e eq

uit

y i

nte

rest

s

-

-

-

-

-

-

-

-

Tota

l equ

ity a

ttrib

utab

le to

the

Com

mon

wea

lth

7

2,6

68

(2

,43

3)

8

,87

2

1

0,8

64

3

,22

5

1

0,7

73

8

4,7

65

1

9,2

04


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Note 12B: Restructuring

Restructuring Departmental

In respect of functions assumed, the net book values of assets and liabilities transferred to the Department for no consideration and recognised as at 26 November 2001 were:

Total assets recognised 1,377 - Total liabilities recognised (5,191) -Net assets assumed (3,814) -

In respect of programs/sub programs relinquished, the following assets and liabilities were transferred by the Department:

Total assets relinquished (71,387) - Total liabilities relinquished 72,365 -Net assets relinquished 978 -

Net decrease in departmental assets during the year (2,836) -

In respect of functions assumed by the Department, the net book values of revenues and expenses are as follows:

Total revenues - -

Expenses

Recognised by the Department of Prime Minister and Cabinet 2,767 - Recognised by the Department of Family and Community Services 1,873 -Total expenses 4,640 -

Restructuring Administered

In respect of functions assumed, the net book values of assets and liabilities transferred to the Department for no consideration and recognised as at 26 November 2001 were:

Total assets recognised 40,729 - Total liabilities recognised - -Net assets assumed 40,729

In respect of programs/sub programs relinquished, the following assets and liabilities were transferred by the Department:

Total assets relinquished (1,843,601) - Total liabilities relinquished 1,408,179 -Net liabilities relinquished (435,422) -

Net decrease in administered assets during the year (394,693) -

Administered revenues and expenses for the full year for the functions assumed by the Department are as follows:

Total revenues - -

Expenses

Recognised by the Department of Prime Minister and Cabinet 3,766 - Recognised by ATSIS/ATSIC 50,945 - Recognised by the Department of Family and Community Services 210,041 -Total expenses 264,752 -



2005 2004 $'000 $'000

Note 13: Cash Flow Reconciliation

Reconciliation of cash per Statement of Financial Position to Statement of Cash

Flows

Cash at year end per Statement of Cash Flows 5,449 2,554 Statement of Financial Position items comprising above cash:

'Financial Asset - Cash' 5,449 2,554

Reconciliation of net surplus to net cash from

operating activities:

Net surplus / (deficit) 67,264 65 Depreciation and amortisation 11,560 16,171 Restructuring adjustment 4,564 - Asset stocktake adjustment (2,284) - Net write down of non-financial assets 536 1,420 Loss on disposal of assets 59 32 (Increase)/decrease in net receivables (102,311) 15,618 (Increase)/decrease in other non-financial assets (16,755) 5,404 Increase/(Decrease) in interest bearing liabilities 4,426 (15) Increase/(decrease) in employee provisions (4,310) 1,027 Increase/(decrease) in suppliers payable 10,551 (25,681) Other 47,443 (1,405) Net cash from / (used by) operating activities 20,743 12,636


Part

5 |

Fina

ncia

l sta

tem

ents


Note 14: Contingent Liabilities and Assets

Quantifiable ContingenciesThe Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $148,000 (2004: $298,000). This amount represents an estimate of the Department's liability based on precedent cases. The Department is defending the claims.

The Schedule of Contingencies reports contingent assets in respect of claims for damages/costs of Nil (2004: $232,000).



Note 15: Executive Remuneration 2005 2004

The number of executives who received or were due to receive total remuneration of $100,000 or more:

$100 000 to $109 999 4 - $110 000 to $119 999 1 6 $120 000 to $129 999 1 1 $130 000 to $139 999 4 5 $140 000 to $149 999 5 5 $150 000 to $159 999 10 10 $160 000 to $169 999 11 7 $170 000 to $179 999 5 5 $180 000 to $189 999 7 2 $190 000 to $199 999 2 7 $200 000 to $209 999 - 1 $210 000 to $219 999 3 - $220 000 to $229 999 - 1 $230 000 to $239 999 1 2 $240 000 to $249 999 - 1 $250 000 to $259 999 1 - $260 000 to $269 999 1 - $280 000 to $289 999 - 1 $290 000 to $299 999 2 1 $440 000 to $449 999 - 1

The aggregate amount of total remuneration of executives shown above. $9,805,353 $9,728,755

The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above. -- $292,908

No executive from the Child Support Agency met the $100,000 threshold while they were a part of the FaCS Portfolio.


Part

5 |

Fina

ncia

l sta

tem

ents


Note 16: Remuneration of Auditors 2005 2004

$ $

Financial statement audit services are provided free of charge to the department. The fair value of audit services provided was: 858,000 1,070,000

Other services provided by the Auditor General related to the verification of the 2004/05 Triple Bottom Line Report. These services are yet to be invoiced.

Triple Bottom Line Report 93,000 113,000

Note 17: Average Staffing Levels 2005 2004

The average staffing levels for the Agency during the year were: 1,905 4,647


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 1

8:

Fin

an

cia

l In

stru

men

ts

No

te 1

8A

: T

erm

s, C

on

dit

ion

s an

d A

cco

un

tin

g P

oli

cies

Fin

an

cial

Inst

rum

ent

Note

s A

ccou

nti

ng P

oli

cies

an

d M

eth

od

s (i

ncl

ud

ing r

ecogn

itio

n

crit

eria

an

d m

easu

rem

ent

basi

s)

Natu

re o

f U

nd

erly

ing I

nst

rum

ent

(in

clu

din

g s

ign

ific

an

t

term

s an

d c

on

dit

ion

s aff

ecti

ng t

he

am

ou

nt,

tim

ing a

nd

cert

ain

ty o

f ca

sh f

low

s)

FIN

AN

CIA

L A

SS

ET

SFi

nanc

ial a

sset

s are

reco

gnis

ed w

hen

cont

rol o

ver f

utur

e ec

onom

ic b

enef

its is

est

ablis

hed

and

the

amou

nt o

f the

ben

efit

can

be re

liabl

y m

easu

red.

Cas

h

7A

C

ash

in

clu

des

cas

h o

n h

and

an

d i

n b

ank

s. C

ash

is

reco

gn

ised

at

its

nom

inal

am

ount.

T

he

maj

ori

ty o

f th

e D

epar

tmen

t's c

ash

is

hel

d b

y t

he

Dep

artm

ent

of

Fin

ance

.

Rec

eivab

les

7B

T

hes

e re

ceiv

able

s ar

e re

cognis

ed a

t th

e nom

inal

am

ounts

due

less

any p

rovis

ion f

or

doubtf

ul

deb

ts.

Co

llec

tabil

ity o

f deb

ts

is r

evie

wed

at

bal

ance

dat

e. P

rovis

ions

are

mad

e w

hen

co

llec

tio

n o

f th

e d

ebt

is j

ud

ged

to

be

less

rat

her

th

an m

ore

li

kel

y.

All

rec

eivab

les

wit

h e

nti

ties

exte

rnal

to t

he

Com

monw

ealt

h

hav

e cr

edit

ter

ms

net

30

day

s o

r le

ss (

20

04

: 3

0 d

ays)

.

Appro

pri

atio

ns

rece

ivab

le

7

Thes

e re

ceiv

able

s ar

e re

cognis

ed a

t th

eir

nom

inal

am

ounts

. A

ppro

pri

atio

n r

ecei

vab

le w

ill

be

dra

wn u

po

n a

s re

qu

ired

.


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Fin

an

cial

Inst

rum

ent

Note

s A

ccou

nti

ng P

oli

cies

an

d M

eth

od

s (i

ncl

ud

ing r

ecogn

itio

n

crit

eria

an

d m

easu

rem

ent

basi

s)

Natu

re o

f U

nd

erly

ing I

nst

rum

ent

(in

clu

din

g s

ign

ific

an

t

term

s an

d c

on

dit

ion

s aff

ecti

ng t

he

am

ou

nt,

tim

ing a

nd

cert

ain

ty o

f ca

sh f

low

s)

FIN

AN

CIA

L L

IAB

ILIT

IES

Fina

ncia

l lia

bilit

ies a

re re

cogn

ised

whe

n a

pres

ent o

blig

atio

n to

ano

ther

par

ty is

ent

ered

into

and

the

amou

nt o

f the

liab

ility

ca

n be

relia

bly

mea

sure

d.F

inan

ce l

ease

lia

bil

itie

s 9A

L

iabil

itie

s ar

e re

cognis

ed a

t th

e pre

sent

val

ue

of

the

min

imu

m

leas

e pay

men

ts a

t th

e beg

innin

g o

f th

e le

ase.

T

he

dis

count

rate

s use

d a

re e

stim

ates

of

the

inte

rest

rat

es i

mpli

cit

in t

he

leas

e.

At

report

ing d

ate,

the

Dep

artm

ent

had

fin

ance

lea

ses

wit

h

term

s av

erag

ing 3

yea

rs.

The

inte

rest

rat

e im

pli

cit

in t

he

leas

es a

ver

aged

10.2

3%

(2004:

10.1

6%

).

Tra

de

cred

itors

11A

C

redit

ors

an

d a

ccru

als

are

reco

gnis

ed a

t th

eir

nom

inal

am

ounts

, bei

ng t

he

amounts

at

whic

h t

he

liab

ilit

ies

wil

l be

sett

led. L

iabil

itie

s ar

e re

cognis

ed t

o t

he

exte

nt

that

the

goods

and s

ervic

es h

ave

bee

n r

ecei

ved

(an

d i

rres

pec

tive

of

hav

ing

bee

n i

nvoic

ed).

Set

tlem

ent

is u

sual

ly m

ade

net

30

day

s.

UN

RE

CO

GN

ISE

D F

INA

NC

IAL

LIA

BIL

ITIE

S

Indem

nit

ies

D

etai

ls a

re d

iscl

ose

d i

n N

ote

14 -

Conti

ngen

t L

iabil

itie

s an

d

Ass

ets.

Ref

er N

ote

14 -

Conti

ng

ent

Lia

bil

itie

s an

d A

sset

s.


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 1

8B

: In

tere

st R

ate

Ris

k

Fin

an

cia

l In

stru

men

t N

ote

sF

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Part

5 |

Fina

ncia

l sta

tem

ents


Note 18C: Net Fair Values of Financial Assets and LiabilitiesTotal Aggregate Total Aggregate

Carrying Net Fair Carrying Net Fair Amount Value Amount Value

Notes $'000 $'000 $'000 $'000

Departmental Financial Assets

Cash 7A 5,449 5,449 2,554 2,554 OPA receivables from DoFA 7A 97,524 97,524 43,120 43,120 Receivables for goods and services 7B 51,230 51,230 31 30,937 Total Financial Assets 154,203 154,203 45,705 76,611

Financial Liabilities (Recognised)

Finance lease liabilities 9A 1,467 1,467 2,385 2,385 Trade creditors 11A 26,042 26,042 35,218 35,218 Total Financial Liabilities (Recognised) 27,509 27,509 37,603 37,603

Financial Liabilities (Unrecognised)

Indemnities 14 - - 100 100 Total Financial Liabilities (Unrecognised) - - 100 100

Financial assets

The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial liabilities

The net fair values of the finance lease liabilities are based on discounted cash flows using current interest rates for liabilities with similar risk profiles.

The net fair values for the trade creditors are approximated by their carrying amounts.

The net fair value of the indemnity given is taken to be nil as the likelihood of any part of it being called upon is regarded as remote.

Note 18D: Credit Risk ExposuresThe Department's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Statement of Financial Performance.

The Department has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or other security.



2005 2004 $'000 $'000

Note 19: Revenues Administered on Behalf of Government

Interest

Interest on BAS Refund 2 20 Interest on Advance 308 311 SFSS Interest Recovered 13 41 Total interest 323 372

Other revenue

Indexation of Student Financial Supplement Scheme 3 49,752 Special Account Revenue 3,534 4,134 Other 28,023 47,686 Total other revenue 31,560 101,572

Child Support Revenue

Child Support Penalties 23,742 51,711 Child Support Trust Revenue 365,700 755,649 Child Support Advances - 10 Total Child Support Revenue 389,442 807,370

NZ Reciprocal Agreement

NZ Reciprocal Agreement 78,013 88,887 Total NZ Reciprocal Agreement 78,013 88,887

Total Revenues Administered on Behalf of Government 499,338 998,201

Note 20: Expenses Administered on Behalf of Government

Grants

Non-Profit Institutions 674,600 523,420 State and Territory governments 1,887,585 1,860,024 Local governments 60,803 56,443 External entities - Private Sector 32,591 22,835 Overseas 210 - Other 96,031 82,150 Total grants 2,751,820 2,544,872

The nature of grants are as follows: Grants for Stronger Families 339,148 328,585

Grants for Stronger Communities 1,542,670 1,311,077

Grants for Economic and Social Participation 870,002 905,210

Total grants 2,751,820 2,544,872

Subsidies

External entities 13,323 13,081 Total subsidies 13,323 13,081

Personal benefits - indirect

Indirect 14,571 36,574 Total personal benefits - indirect 14,571 36,574


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Note 20: Expenses Administered on Behalf of Government (continued)

Personal benefits - direct

Age Pension 19,973,154 19,538,351 Family Tax Benefit 12,861,209 15,069,343 Disability Support Pension 2,499,214 7,485,330 Parenting Payment (Partnered and Single) 1,951,312 5,981,605 Newstart Allowance 1,475,358 4,753,635 Youth Allowance 733,534 2,247,575 Childcare Benefit 1,462,851 1,382,877 Carer Allowance - Adult and Child 1,108,857 965,286 Carer Payment 1,059,286 920,229 Partner Allowance (Pension) 230,666 546,638 Wife Pension (DSP) 290,107 325,299 Widow Allowance 219,647 469,751 Mature Age Allowance 95,198 372,386 Partner Allowance (Benefit) 111,455 313,865 Austudy Payment 83,189 260,347 Maternity Allowance 790,128 223,252 Wife Pension (Age) 179,134 193,960 Special Benefit 100,607 113,297 Other 134,364 317,577 Utilities Allowance 68,667 - Seniors Concession Allowance 57,967 - Total personal benefits - direct 45,485,904 61,480,603

Suppliers

Supply of goods and services 49,886 53,017 Total suppliers 49,886 53,017

Write-down and impairment of assets

Financial assets

Other 366 1,656 Student Financial Supplement Scheme (19,023) 24,555 Student Financial Supplement adjustment to opening balance (59) (918) Personal benefits 144,059 60,695 Child support bad debt expense (225,272) 43,619 Total write-down and impairment of assets (99,929) 129,607

Interest

Student Financial Supplement Scheme 11,219 42,857 Total interest 11,219 42,857

Other expenses

Child Support Trust Expenditure 612,333 670,089 Annual Appropriation Maintenance Advances - 2,552 Special Appropriation Maintenance Advances - 87,833 Special Account Expense 5,321 4,512 Other 57,172 126,905 Total other expenses 674,826 891,891

Total Expenses Administered on Behalf of Government 48,901,620 65,192,502



2005 2004 $'000 $'000

Note 21: Assets Administered on Behalf of Government

Financial Assets

Cash

Administered bank account -Department of Family and Community Services 2,502 (29,780) Administered on behalf of other entities 109 31,796 Total cash 2,611 2,016

Receivables

Student Financial Supplement Scheme - 2,130,011 Less: Provision for doubtful debts - (1,192,806)

- 937,205 Personal Benefits - Direct 1,361,569 1,848,262 Less: Provision for doubtful debts (242,320) (465,546)

1,119,249 1,382,716 Child Support Receivable - 821,845 Less: Provision for doubtful debts - (735,782)

- 86,063 Child Support Penalties - 383,824 Less: Provision for doubtful debts - (375,665)

- 8,159 Other Loans 9,277 8,362

Other receivables 32,261 58,054 Less: Provision for doubtful debts (293) (14,725)

31,968 43,329 Total receivables (net) 1,160,494 2,465,834

Receivables (gross) are aged as follows: Not overdue 1,030,082 3,583,172 Overdue by:

Less than 30 days 14,574 79,384 30 to 60 days 9,451 62,954 60 to 90 days 7,435 59,133 More than 90 days 341,565 1,465,715

Total receivables (gross) 1,403,107 5,250,358

The provision for doubtful debts is aged as follows: Not overdue (234,911) (1,514,555) Overdue by:

Less than 30 days (301) (52,109) 30 to 60 days (195) (45,019) 60 to 90 days (153) (44,426) More than 90 days (7,053) (1,128,415)

Total provision for doubtful debts (242,613) (2,784,524)

Investments

Australian Institute of Family Studies 788 788 Other 492 117 Aboriginal Hostels Limited 40,104 - Total investments 41,384 905

Total financial assets 1,204,489 2,468,755


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Non-financial Assets

Prepaid Grants 181,180 87

Total non-financial assets 181,180 87

Total Assets Administered on Behalf of Government 1,385,669 2,468,842

Note 22: Liabilities Administered on Behalf of Government


Loans

Owing to the Commonwealth Bank - Student Financial Supplement Scheme - 574,521

Maturity schedule for loans:Payable:

Within one year - 187,028 In one to five years - 387,493

Total loans - 574,521

Total interest bearing liabilities - 574,521

Provisions

Personal benefits provision

Family Tax Benefit 2,047,630 2,044,528 Pension Bonus Scheme 697,510 554,291

Total personal benefits provisions 2,745,140 2,598,819

Total provisions 2,745,140 2,598,819

Payables

Personal benefits payable 413,179 1,482,685

Grants and subsidies

State & Territory governments 129 165 ATO Payable - payments funded by ATO on behalf of CSA 636 1,628

Private sector - Non-profit entities 11,498 8,718 Other entities 7,334 6,599

Total grants and subsides 19,597 17,110

Child support liability

ATO Payable - payments funded by ATO on behalf of CSA - 4,733 CSA Creditors - 11,180 Payments in advance - 11,692 Accrued Child Support Payable - 86,060

Total child support liability - 113,665

Other payables

Student Financial Supplement Scheme - 8,724 Other 3,731 8,221

Total other payables 3,731 16,945

Total payables 436,507 1,630,405

Total Liabilities Administered on Behalf of Government 3,181,647 4,803,745



2005 2004 $'000 $'000

Note 23: Administered Reconciliation Table

Opening administered assets less administered liabilities as at 1 July (2,334,903) (122,922) Plus: Administered revenues 499,338 998,201 Less: Administered expenses (48,901,619) (65,192,502) Administered transfers to/from Australian Government: Appropriation transfers from OPA 3,504,990 63,396,019

Annual appropriations administered expenses - - Administered assets and liabilities appropriations - - Special appropriations (limited) - - Special appropriations (unlimited) - -

Transfers to OPA (842,070) (1,413,699) Special Appropriations payments made on FaCS’ behalf by Centrelink allocated drawing rights 46,667,369 - Restructuring (394,693) - Administered revaluations taken to/from reserves 376 - Other 5,234 - Movement in carrying amount of investment - - Currency translation gain/loss - -

Closing administered assets less administered liabilities as at 30 June (1,795,978) (2,334,903)


Part

5 |

Fina

ncia

l sta

tem

ents


2005 2004 $'000 $'000

Note 24: Administered Contingent Liabilities

Quantifiable Administered ContingenciesThe schedule of contingencies reports contingent liabilities in respect of damages/costs of $0 (2004: $96,600).

Unquantifiable Administered ContingenciesThere are currently a number of cases before both the Administrative Appeals Tribunal (AAT) and the Social Security Appeals Tribunal (SSAT) for which the outcomes are not yet known or able to be quantified. These cases relate to appeals regarding income support payments and other payments under the Social Security Act.

There are also a number of Act of Grace Payment requests currently being considered by the Finance Minister under s.33 of the FMA Act. The outcomes of these requests are not yet or able to be quantified.

Remote Administered ContingenciesThere are no known remote administered contingencies at 30 June 2005.



2005 2004 $'000 $'000

Note 25: Administered Investments

The Commonwealth has 100% of the equity interest of the Australian Institute of Family Studies (AIFS). The principal activity of AIFS is to promote understanding of factors affecting family stability and well-being in Australia, through the conduct, co-ordination and dissemination of research and other appropriate activities.

The Commonwealth has an interest in a property occupied by Yarra Community Housing located in Melbourne. The principal activity of the site is for the provision of community housing facilities. The Commonwealth owns 31% of the unimproved market value of the land. The equity in this property is secured by a deed of agreement between the Commonwealth and Yarra Community Housing Ltd, with the Commonwealth having a controlling interest over the use of the property. The Commonwealth revalued its interest in this property in 2004-05 and the updated value has been recorded in the financial statements.

The Commonwealth has 100% of the equity interest in Aboriginal Hostels Limited (AHL). The Commonwealth's interest in this entity was previously reported as part of the Immigration and Multicultural and Indigenous Affairs portfolio but as a result of Machinery of Government changes in 2004-05 this interest is now reported as part of the FaCS portfolio. The principal activity of AHL is to provide temporary accommodation to Aboriginal and Torres Strait Islander people through a national network of hostels.


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 2

6:

Ad

min

iste

red

Fin

an

cia

l In

stru

men

ts

a)

Ter

ms,

Co

nd

itio

ns

and

Acc

ou

nti

ng

Po

lici

es

Fin

an

cial

Inst

rum

ent

Note

sA

ccou

nti

ng P

oli

cies

an

d M

eth

od

s

(in

clu

din

g r

ecogn

itio

n c

rite

ria a

nd

mea

sure

men

t b

asi

s)

Natu

re o

f U

nd

erly

ing I

nst

rum

ent

(in

clu

din

g s

ign

ific

an

t te

rms

an

d c

on

dit

ion

s aff

ecti

ng t

he

am

ou

nt,

tim

ing a

nd

cer

tain

ty o

f ca

sh f

low

s)

FIN

AN

CIA

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SS

ET

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nanc

ial a

sset

s are

reco

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ed w

hen

cont

rol o

ver f

utur

e ec

onom

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enef

its is

est

ablis

hed

and

the

amou

nt o

f the

ben

efits

ca

n be

relia

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d.

Cas

h2

1C

ash

in

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des

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h o

n h

and

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d i

n b

ank

s. C

ash

is

reco

gn

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at

its

nom

inal

am

ount.

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he

bal

ance

of

the

adm

inis

tere

d c

ash a

ccount

is n

on-i

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rest

b

eari

ng

.

Lo

ans

21

Loan

s ar

e re

cognis

ed a

t th

e am

ounts

len

t. C

oll

ecta

bil

ity o

f am

ou

nts

ou

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nd

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is

rev

iew

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t b

alan

ce d

ate.

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rov

isio

n i

s m

ade

for

bad

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d d

ou

btf

ul

loan

s w

her

e co

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tio

n o

f th

e lo

an

or

par

t th

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f is

judged

to b

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ss r

ather

than

mo

re l

ikel

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s oth

er t

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pen

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s ar

e m

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under

contr

act

for

per

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s u

p t

o 2

0 y

ears

. N

o s

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is

gen

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ly r

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.

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ple

is

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n f

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at

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al p

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Rec

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les

21

Thes

e re

ceiv

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s ar

e re

cognis

ed a

t th

e nom

inal

am

ounts

due

less

a p

rovis

ion f

or

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ul

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ts. C

oll

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ity o

f deb

ts i

s re

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at

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e. P

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are

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f th

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is j

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Coll

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f th

e deb

t is

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to b

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ather

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No

tes

to a

nd

fo

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g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Fin

an

cial

Inst

rum

ent

Note

sA

ccou

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ng P

oli

cies

an

d M

eth

od

s

(in

clu

din

g r

ecogn

itio

n c

rite

ria a

nd

mea

sure

men

t b

asi

s)

Natu

re o

f U

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erly

ing I

nst

rum

ent

(in

clu

din

g s

ign

ific

an

t te

rms

an

d c

on

dit

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s aff

ecti

ng t

he

am

ou

nt,

tim

ing a

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tain

ty o

f ca

sh f

low

s)

FIN

AN

CIA

L L

IAB

ILIT

IES

Fina

ncia

l lia

bilit

ies a

re re

cogn

ised

whe

n a

pres

ent o

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atio

n to

ano

ther

par

ty is

ent

ered

into

and

the

amou

nt o

f the

liab

ility

ca

n be

relia

bly

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sure

d.

Tra

de

cred

ito

rs

22

Cre

dit

ors

are

rec

ognis

ed a

t th

eir

nom

inal

am

ounts

, bei

ng t

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amo

un

ts a

t w

hic

h t

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liab

ilit

ies

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l b

e se

ttle

d. L

iab

ilit

ies

are

reco

gnis

ed t

o t

he

exte

nt

that

the

goods

or

serv

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hav

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n

rece

ived

(an

d i

rres

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tiv

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f h

avin

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ent

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sual

ly m

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net

30

day

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nts

an

d s

ubsi

die

s p

ayab

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22

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nt

liab

ilit

ies

are

reco

gnis

ed t

o t

he

exte

nt

that

:

the

serv

ices

req

uir

ed t

o b

e p

erfo

rmed

by

th

e g

ran

tee

hav

e b

een

per

form

ed;

or

the

gra

nt

elig

ibil

ity c

rite

ria

hav

e bee

n s

atis

fied

and

sett

lem

ent

is o

uts

tan

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gra

nts

and s

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s ar

e to

en

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es t

hat

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the

Aust

rali

an G

over

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ent.

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tlem

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sual

ly m

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to t

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term

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d c

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of

each

gra

nt.

This

is

usu

ally

w

ithin

30 d

ays

of

per

form

ance

or

elig

ibil

ity.


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

b)

Ad

min

iste

red

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tere

st R

ate

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k

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an

cia

l In

stru

men

t N

ote

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tin

g I

nte

rest

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te

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te

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ear

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to

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-

-

-

-

-

-

2

6,0

98

5

,24

7,1

29

3

2,4

86

5

,25

2,3

74

Tota

l Ass

ets

1

,38

5,6

69

2

,46

8,8

42

Fin

an

cia

l L

iab

ilit

ies

Tra

de

cred

ito

rs

22

-

8

,72

4

-

-

-

-

-

-

3

,73

1

3

,98

1,2

46

3

,73

1

3

,98

9,9

70

n/a

n/a

Gra

nts

an

d s

ub

sid

ies

pay

able

2

2

-

-

-

-

-

-

-

-

1

9,5

97

1

7,1

10

1

9,5

97

1

7,1

10

n/a

n/a

Bo

rro

win

gs

22

-

5

74

,521

-

-

-

-

-

-

-

-

-

5

74

,521

n/a

6.1

4%

Tota

l

-

5

83

,245

-

-

-

-

-

-

2

3,3

28

3

,99

8,3

56

2

3,3

28

4

,58

1,6

01

Tota

l Lia

bilit

ies

3

,18

1,6

47

4

,80

3,7

45



c) Net Fair Values of Administered Financial Assets and Liabilities

2005 2004Notes Total Aggregate Total Aggregate

Carrying Net Fair Carrying Net Fair Amount Value Amount Value

$'000 $'000 $'000 $'000

Financial Assets (Recognised)

Cash 21 2,611 2,611 2,016 2,016 Receivables (net) 21 1,382,167 1,382,167 5,241,996 5,241,996 Loans to state and territory governments (net) 21 2,889 2,889 3,117 3,117 Other loans (gross) 21 6,388 6,388 5,245 5,245 Total Financial Assets (Recognised) 1,394,055 1,394,055 5,252,374 5,252,374

Financial Liabilities (Recognised)

Trade creditors 22 3,162,050 3,162,050 3,989,970 3,989,970 Grants and subsidies payable 22 19,597 19,597 17,110 17,110 Borrowings 22 - - 574,521 574,521 Total Financial Liabilities (Recognised) 3,181,647 3,181,647 4,581,601 4,581,601

Financial Liabilities (Unrecognised)

Total Financial Liabilities (Unrecognised) - - - -

Financial AssetsThe net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts. The net fair value of loans receivable are based on discounted cash flows using current interest rates for assets with similar risk profiles. Loans to state and territory governments are carried at cost which is above their net fair value. It is intended that all the loans will be held to maturity.

Financial Liabilities The net fair values for trade creditors and grant liabilities are short-term in nature, are approximated by their carrying amounts.


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 2

7:

Ap

pro

pri

ati

on

s

No

te 2

7A

: A

cqu

itta

l o

f A

uth

ori

ty t

o D

raw

Cas

h f

rom

th

e C

on

soli

dat

ed R

even

ue

Fu

nd

fo

r O

rdin

ary

An

nu

al S

erv

ices

Ap

pro

pri

atio

ns

Part

icu

lars

A

dm

inis

tere

d E

xp

ense

s D

epart

men

tal

To

tal

Ou

tco

me

1

Ou

tco

me

2

Ou

tco

me

3

Ou

tpu

ts

Yea

r en

ded

30

Ju

ne

20

05

$$

$$

$

Bal

ance

car

ried

fro

m p

revio

us

yea

r

38,3

11

,095

4

,226

,45

7

9

2,5

04

,218

4

,426

,25

0

1

39

,46

8,0

20

Fundam

enta

l er

ror

-

-

-

4

8,4

10

,00

0

48,4

10

,000

Red

uct

ion

in

ap

pro

pri

atio

ns

(pri

or

yea

rs)

(2

0,8

38,0

53)

4

,286

,12

8

(8

6,1

13,7

37)

3

8,6

93

,402

(63,9

72,2

60)

Adj

uste

d ba

lanc

e ca

rrie

d fo

r pre

viou

s per

iod

1

7,4

73

,042

8

,512

,58

5

6

,390

,48

1

9

1,5

29

,652

1

23

,90

5,7

60

Appro

pri

atio

n A

ct (

No. 1)

2004-0

5 -

bas

ic a

ppro

pri

atio

n

4

00

,43

0,0

00

6

7,6

50

,000

5

99

,13

7,0

00

2

,630

,51

9,0

00

3

,697

,73

6,0

00

Appro

pri

atio

n A

ct (

No. 3)

2004-0

5 -

bas

ic a

ppro

pri

atio

n

7

,367,0

00

11

,104,0

00

8

,994,0

00

101,5

92,0

00

129,0

57,0

00

Appro

pri

atio

n (

Tsu

nam

i F

inan

cial

Ass

ista

nce

) A

ct 2

004-0

5

-

674

,00

0

-

1

,772

,00

0

2

,446

,00

0

Dep

artm

enta

l ad

just

men

ts b

y t

he

Fin

ance

Min

iste

r (A

ppro

pri

atio

n A

cts)

-

-

-

-

-

Com

cover

rec

eipts

(A

ppro

pri

atio

n A

ct s

13)

-

-

-

-

Advan

ce t

o t

he

Fin

ance

Min

iste

r -

-

-

-

Adju

stm

ent

of

appro

pri

atio

ns

on c

han

ge

of

enti

ty f

unct

ion (

FM

AA

s32)

(1

0,3

75,8

95

)

199

,79

6,0

25

(2

11

,380

,00

0)

(3

58

,200

,28

4)

(3

80

,160

,154)

Red

uct

ion d

ue

to w

ork

load

agre

emen

t -

-

-

(

48,1

05,9

25)

(4

8,1

05,9

25)

Tra

nsf

ers

out

-

-

-

(

16,4

27,8

38)

(1

6,4

27,8

38)

Ref

unds

cred

ited

(net

) (F

MA

A s

30)

-

-

-

-

-

Ap

pro

pri

atio

ns

lap

sed

or

red

uce

d

(27,8

62,8

84)

(9,1

38,4

69)

(16,8

31,1

60)

-

(53,8

32,5

13)

Ap

pro

pri

atio

n r

edu

ced

by

sec

tio

n 9

det

erm

inat

ion

s (c

urr

ent

yea

r)

- -

- -

-

Sub-t

ota

l 2004 -

05

Annual

Appro

pri

atio

n

387,0

31,2

63

278,5

98,1

41

386,3

10,3

21

2,4

02,6

78,6

05

3,4

54,6

18,3

30

Appro

pri

atio

ns

to t

ake

acco

unt

of

reco

ver

able

GS

T (

FM

AA

s30A

)

40,0

95

,205

2

5,8

88

,937

3

2,8

76

,722

15,4

97

,139

1

14

,35

8,0

03

Annota

tions

to 'n

et a

ppro

pri

atio

ns'

(F

MA

A s

31)

6

03

,00

1

6

,307

,66

3

-

4

,340

,60

0

1

22

,01

7,0

58

Tota

l A

ppro

pri

atio

ns

avai

lable

for

pay

men

ts

427,7

29,4

69

310,7

94,7

41

419,1

87,0

43

2,4

22,5

16,3

44

3,6

90,9

93,3

90

Cas

h p

aym

ents

mad

e duri

ng t

he

yea

r (G

ST

incl

usi

ve)

406,8

63,8

27

304,8

89,0

09

416,1

43,6

54

2,3

17,9

65,4

02

3,5

56,6

27,6

86

Appro

pri

atio

ns

cred

ited

to S

pec

ial

Acc

ounts

(ex

cludin

g G

ST

) -

- -

- -

Bal

ance

of A

utho

rity

to D

raw

Cas

h fr

om th

e C

RF

for O

rdin

ary

Ann

ual

Serv

ices

App

ropr

iatio

ns

20,8

65

,642

5

,905

,73

2

3

,043

,38

9

1

04

,55

0,9

42

134

,36

5,7

04


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Repr

esen

ted

by:

Cas

h a

t b

ank

an

d o

n h

and

-

-

-

5

,44

8,7

52

5,4

48

,75

2

Rec

eivab

les

- D

epar

tmen

tal

appro

pri

atio

ns

-

-

-

97,7

41,1

48

9

7,7

41

,148

Rec

eivab

les

– G

ST

rec

eivab

le f

rom

cust

om

ers

-

-

-

--

Rec

eivab

les

- G

ST

rec

eivab

le f

rom

the

AT

O

-

-

-

1,3

61,0

42

1

,361

,04

2

Rec

eiv

able

s –

Dep

artm

enta

l ap

pro

pri

atio

ns

rece

ivab

le –

dra

win

g r

igh

ts

wit

hh

eld

by

th

e F

inan

ce M

inis

ter

(FM

AA

s27

(4))

-

-

-

-

-

Fo

rmal

red

uct

ion

s o

f ap

pro

pri

atio

n r

even

ue

-

-

-

- -

Dep

artm

enta

l ap

pro

pri

atio

n r

ecei

vab

le (

appro

pri

atio

n f

or

addit

ional

o

utp

uts

)

-

- -

- -

Pay

able

s –

GS

T p

ayab

le

-

-

-

- -

Un

dra

wn

, u

nla

pse

d a

dm

inis

tere

d a

pp

rop

riat

ion

s

2

0,8

65

,64

2

5

,90

5,7

32

3,0

43

,38

9

-

2

9,8

14

,762

Tota

l

2

0,8

65,6

42

5,9

05,7

32

3,0

43,3

89

104,5

50,9

42

134,3

65,7

05


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Part

icu

lars

A

dm

inis

tere

d E

xp

ense

s D

epart

men

tal

To

tal

Ou

tco

me

1

Ou

tco

me

2

Ou

tco

me

3

Ou

tpu

ts

Yea

r en

ded

30

Ju

ne

20

04

(co

mp

ara

tiv

e p

erio

d)

$$

$$

$

Bal

ance

car

ried

fro

m p

revio

us

yea

r

6,6

09,7

29

307,7

15

60,6

35,3

66

4,2

66,0

00

71,8

18,8

10

Add/L

ess:

adju

stm

ents

to o

pen

ing b

alan

ces

9,2

69,8

10

-

(1

,485,0

00)

-

7,7

84,8

10

Add:

esti

mat

ed a

dm

inis

tere

d a

ppro

pri

atio

n l

apse

d 0

2-0

3

10,1

39,3

84

4,8

07,7

83

8,9

98,2

98

-

23,9

45,4

65

Adju

sted

bal

ance

car

ried

fro

m p

revio

us

yea

r

26,0

18

,923

5

,115

,49

8

6

8,1

48

,664

4

,266

,00

0

103,5

49,0

85

Appro

pri

atio

n A

ct (

No.1

) 20

03-0

4

356,7

34,0

00

67,8

64,0

00

544,6

33,0

00

2,4

75,0

01,0

00

3,4

44,2

32,0

00

App

rop

riat

ion

Act

(N

o.3

) 20

03

-04

1,3

42

,00

0

2

,412

,00

0

-

6

09

,00

0

4

,363

,00

0

Dep

artm

enta

l ad

just

men

ts b

y t

he

Fin

ance

Min

iste

r (A

ppro

pri

atio

n A

cts)

-

-

-

-

-

Adv

ance

to F

inan

ce M

inis

ter

-

-

-

-

-

Ref

un

ds

cred

ited

(F

MA

A s

30)

-

-

-

-

-

Appro

pri

atio

ns

to t

ake

acco

unt

of

reco

ver

able

GS

T (

FM

A s

30A

)

35,7

22,0

66

5,6

73,3

94

36,9

24,4

86

19,2

52,9

66

97,5

72,9

12

Annota

tions

to 'n

et a

ppro

pri

atio

ns'

(F

MA

A s

31)

-

-

-

5,7

76,9

42

5,7

76,9

42

Adju

stm

ent

of

appro

pri

atio

ns

on c

han

ge

of

enti

ty f

un

ctio

n (

FM

AA

s32)

-

-

-

-

-

Appro

pri

atio

n l

apse

d

(1

1,2

09,1

15)

(4

,695

,943

)

(6,7

67

,133

) -

(2

2,6

72,1

91)

Tota

l ap

pro

pri

atio

ns

avai

lable

for

pay

men

ts

408,6

07,8

74

76,3

68,9

49

642,9

39,0

17

2,5

04,9

05,9

08

3,6

32,8

21,7

48

Pay

men

ts m

ade

duri

ng t

he

yea

r (G

ST

incl

usi

ve)

370,2

96,7

79

7

2,1

42

,492

550,4

34,7

99

2,5

00,4

79,6

58

3,4

93,3

53,7

28

Appro

pri

atio

ns

cred

ited

to S

pec

ial

Acc

ounts

-

- -

- -

Bal

ance

car

ried

to

th

e n

ext

per

iod

38

,31

1,0

95

4,2

26

,457

92,5

04,2

18

4,4

26,2

50

139,4

68,0

20

1 U

nder

Sec

tion 3

1 o

f th

e F

inan

cial

Man

agem

ent

and A

ccounta

bil

ity A

ct 1

997 (

the

FM

A A

ct),

the

Min

iste

r fo

r F

inan

ce m

ay e

nte

r in

to a

net

app

rop

riat

ion

ag

reem

ent

wit

h a

n a

gen

cy

Min

iste

r. A

pp

rop

riat

ion

Act

s n

os

1 a

nd

3 (

for

the

ord

inar

y a

nn

ual

ser

vic

es o

f g

ov

ern

men

t) a

uth

ori

se t

he

sup

ple

men

tati

on

of

an a

gen

cy’s

annual

net

appro

pri

atio

n b

y a

mounts

rec

eived

in

ac

cord

ance

wit

h i

ts S

ecti

on 3

1 A

gre

emen

t e.

g. re

ceip

ts f

rom

char

gin

g f

or

goods

and s

ervic

es.

One

of

the

condit

ions

whic

h m

ust

be

sati

sfie

d u

nder

Sec

tion 3

1 o

f th

e F

MA

Act

in

ord

er f

or

an a

nnual

net

appro

pri

atio

n t

o b

e in

crea

sed l

awfu

lly i

n t

his

way

is

that

the

Agre

emen

t is

mad

e bet

wee

n t

he

Fin

ance

Min

iste

r an

d t

he

agen

cy M

inis

ter

or

by o

ffic

ials

ex

pre

ssly

del

egat

ed (

wher

e per

mit

ted)

or

auth

ori

sed b

y t

hem

. A

n a

gen

cy’s

Ch

ief

Exec

uti

ve

is t

aken

to b

e so

au

thori

sed.

A d

eleg

ate

of

the

Min

iste

r fo

r F

inan

ce a

nd a

dep

artm

enta

l off

icer

exec

ute

d t

he

Dep

artm

ent’

s S

ecti

on 3

1 A

gre

emen

t co

ver

ing t

he

per

iod f

rom

1 J

uly

1998 t

o 3

0 J

une

1999.

Whil

st t

he

Dep

artm

ent

oper

ated

and r

ecord

ed S

ecti

on 3

1 m

onie

s as

though a

val

id a

gre

emen

t ex

iste

d,

the

FaC

S s

ignat

ory

did

not

hav

e ex

pre

ss d

eleg

atio

n o

r au

thori

ty f

or

signin

g t

he

Agre

emen

t, w

ith

the

resu

lt t

hat

th

e D

epar

tmen

t’s

Sec

tio

n 3

1 A

gre

emen

t w

as i

nef

fect

ive

and

th

e D

epar

tmen

t d

id n

ot

hav

e co

ntr

ol

ov

er S

ecti

on

31

mo

nie

s.

A d

eleg

ate

of

the

Min

iste

r fo

r F

inan

ce a

nd a

dep

artm

enta

l off

icer

exec

ute

d t

he

Dep

artm

ent’

s S

ecti

on 3

1 A

gre

emen

t co

ver

ing t

he

per

iod f

rom

1 J

uly

1999 t

o 3

0 S

epte

mb

er 2

004. W

hil

st t

he

Dep

artm

ent

op

erat

ed a

nd

rec

ord

ed S

ecti

on

31

mo

nie

s as

tho

ug

h a

val

id a

gre

emen

t ex

iste

d,

the

Fin

ance

sig

nat

ory

did

no

t h

ave

exp

ress

del

egat

ion o

r au

tho

rity

for

signin

g t

he

Agre

emen

t.

This

mea

ns

that

the

Dep

artm

ent’

s S

ecti

on 3

1 A

gre

emen

t is

consi

der

ed t

o b

e in

effe

ctiv

e w

ith t

he

resu

lt t

hat

the

Dep

artm

ent

did

not

hav

e a

val

id a

uth

ori

ty t

o s

pen

d S

ecti

on 3

1 r

ecei

pts

. In

the

2001-0

2 f

inan

cial

yea

r th

is r

esu

lted

in a

contr

aven

tion o

f s8

3 o

f th

e C

onst

ituti

on.


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Th

e D

epar

tmen

t’s

curr

ent

Sec

tio

n 3

1 A

gre

emen

t w

as m

ade

on

1 O

ctob

er 2

00

4 b

etw

een

th

e M

inis

ter

for

Fam

ily

an

d C

om

mu

nit

y S

erv

ices

an

d t

he

Min

iste

r fo

r F

inan

ce a

nd A

dm

inis

trat

ion.

Ack

now

ledgin

g t

he

inef

fect

iven

ess

of

the

pri

or

agre

emen

t, t

he

Ch

ief

Ex

ecuti

ve

Off

icer

of

the

Dep

artm

ent

of

Fin

ance

an

d A

dm

inis

trat

ion v

arie

d t

his

agre

emen

t on

24 J

une

2005, w

ith e

ffec

t fr

om

30 J

une

2005,

to c

aptu

re r

etro

spec

tivel

y a

ll m

onie

s th

at w

ere

subje

ct t

o t

he

pri

or

agre

emen

t.

It s

hould

be

note

d t

hat

th

e m

ajori

ty o

f th

e se

ctio

n 3

1 r

ecei

pts

that

wer

e sp

ent

wit

hout

the

appro

pri

ate

del

egat

ion i

n p

rior

per

iods

rela

te t

o c

ost

rec

over

y r

even

ue

rece

ived

by C

om

monw

ealt

h

Reh

abil

itat

ion S

ervic

es (

CR

S)

Aust

rali

a, w

hen

th

ey w

ere

par

t of

the

FaC

S P

ort

foli

o. C

RS

Aust

rali

a w

as t

ransf

erre

d t

o t

he

Dep

artm

ent

of

Hea

lth a

nd A

gei

ng P

ort

foli

o f

rom

1 J

uly

2003.

Acc

ord

ingly

:

- am

ou

nts

dis

clo

sed

in

pre

vio

us

fin

anci

al y

ears

as

avai

lab

le f

or

spen

din

g u

nd

er t

he

dep

artm

enta

l o

utp

uts

ap

pro

pri

atio

ns

up

to

30

Jun

e 2

005

wer

e ov

erst

ated

by $

143

,855

,94

2;

- of

this

am

ount,

$109,9

68,9

42 w

as u

nsp

ent

as a

t 30 J

une

2004 a

nd w

as i

nco

rrec

tly r

efle

cted

in t

he

bal

ance

bro

ught

forw

ard t

o 1

July

2004;

- th

e 30 J

une

2005 v

aria

tion t

o o

ur

agre

emen

t in

crea

sed o

ur

appro

pri

atio

n b

y t

he

amount

of

inval

id r

ecei

pts

, bei

ng $

148,1

96,5

42;

- of

this

am

ount,

$33,8

87,0

00 i

s not

avai

lable

as

it h

as a

lrea

dy b

een s

pen

t in

pri

or

per

iods.

A y

ear

by

yea

r an

aly

sis

of

ov

erst

atem

ent

of

the

dep

artm

enta

l o

utp

ut

app

rop

riat

ion

s an

d o

ver

spen

din

g s

ince

th

e in

tro

du

ctio

n o

f th

e ac

cru

al a

pp

rop

riat

ion

fra

mew

ork

is

giv

en b

elo

w.

1998

-99

T

ota

l p

re-a

ccru

al

bu

dg

etin

g

1999

-00

2

000

-01

2

001

-02

2

002

-03

2

003

-04

T

ota

l 2

004

-05

T

ota

l

Rec

eipts

aff

ecte

d

1,3

46,0

00

1

,346

,00

0

3

9,3

41

,000

4

5,5

33

,000

4

5,0

56

,000

8

,149

,00

0

5,7

76

,94

2

143,8

55,9

42

4

,340

,60

0

148,1

96,5

42

Un

spen

t

1,3

46

,00

0

1,3

46

,00

0

3

9,3

41

,000

4

5,5

33

,000

1

1,1

69

,000

8

,149

,00

0

5,7

76

,94

2

109,9

68,9

42

4

,340

,60

0

114,3

09,5

42

Am

ou

nt

spen

t w

ithout

appro

pri

atio

n-

- -

- 3

3,8

87

,000

-

- 3

3,8

87

,000

- 3

3,8

87

,000

2 T

his

am

ount

repre

sents

rec

eipts

of

$148,1

96

,542 a

ppro

pri

ated

by t

he

var

iati

on o

f 30 J

une

2005,

less

the

amount

spen

t pri

or

to 2

004

-05

of

$3

3,8

87

,000

.


Part

5 |

Fina

ncia

l sta

tem

ents

No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

No

te 2

7B

: A

cqu

itta

l o

f A

uth

ori

ty t

o D

raw

Cas

h f

rom

th

e C

on

soli

dat

ed R

even

ue

Fu

nd

fo

r O

ther

th

an O

rdin

ary

An

nu

al S

erv

ices

Ap

pro

pri

atio

ns

Pa

rtic

ula

rsA

dm

inis

tered

N

on

-op

era

tin

gT

ota

l

Ou

tco

me

1

Ou

tco

me

2

Ou

tco

me

3

SPPs

NAE

SPPs

NAE

SPPs

NAE

Equi

tyLo

ans

Prev

ious

yea

rs'

outp

uts

Adm

in a

sset

s an

d lia

bilit

ies

Yea

r en

ded

30 J

un

e 2005

$

$$

$$

$$

$$

$$

Bal

ance

car

ried

fro

m p

rev

iou

s y

ear

3

0,0

00

-

-

-

-

-

-

-

-

-

3

0,0

00

Red

uct

ion

of

app

rop

riat

ion

s (p

rio

r y

ears

)1

-

-

24

,32

5

- -

- -

- -

-

24

,32

5

Adj

uste

d ba

lanc

e ca

rrie

d fr

om

prev

ious

per

iod

3

0,0

00

-

2

4,3

25

-

-

-

-

-

-

-

5

4,3

25

Ap

pro

pri

atio

n A

ct (

No

.2)

20

04

-

20

05

1

1,0

11

,00

0

-

1

,39

2,9

96

,00

0

-

5

70

,185

,00

0

-

5

20

,000

-

-

-

1

,97

4,7

12

,00

0

Ap

pro

pri

atio

n A

ct (

No

.4)

20

04

-

20

05

-

-

-

-

5

53

,000

-

1

30

,000

-

-

-

6

83

,000

Dep

artm

enta

l A

dju

stm

ents

an

d

Bo

rro

win

gs

-

-

-

-

-

-

-

-

-

-

-

Ad

van

ce t

o t

he

Fin

ance

Min

iste

r -

-

-

-

-

-

-

-

-

-

-

Ad

just

men

t o

f ap

pro

pri

atio

ns

on

ch

ang

e o

f en

tity

fu

nct

ion

(F

MA

A

s32

) -

-

-

-

-

-

-

-

-

-

-

Ref

un

ds

cred

ited

(n

et)

(FM

AA

s3

0)

-

-

-

-

-

-

-

-

-

-

-

Ap

pro

pri

atio

ns

lapse

d

(2

,52

5)

-

(8

4,8

59

,278

)

-

(65

5,4

20

)

-

-

-

-

-

(85

,51

7,2

23

)

Ap

pro

pri

atio

n r

edu

ced

by a

sec

tio

n

11

det

erm

inat

ion

(cu

rren

t yea

r)

-

- -

- -

- -

- -

- -

Su

b-t

ota

l 2

00

4 -

05

An

nu

al

Ap

pro

pri

atio

n

11

,03

8,4

75

-

1

,30

8,1

61

,04

7

-

5

70

,082

,58

0

-

6

50

,000

-

-

-

1

,88

9,9

32

,10

2

Ap

pro

pri

atio

ns

to t

ake

acco

un

t o

f re

cov

erab

le G

ST

(F

MA

A s

30

A)

8

,85

0

-

1

,41

1,3

64

-

-

-

-

-

-

-

1

,42

0,2

14

To

tal

app

rop

riat

ion

s av

aila

ble

fo

r p

aym

ents

11

,04

7,3

25

-

1

,30

9,5

72

,41

1

-

5

70

,082

,58

0

-

6

50

,000

-

-

-

1

,89

1,3

52

,31

6

Cas

h p

aym

ents

mad

e d

uri

ng

th

e yea

r (G

ST

incl

usi

ve)

10

,98

2,6

07

-

1,3

09

,572

,41

1

-

56

5,2

29

55

1

-

65

0,0

00

- -

-

1,8

86

,434

,56

9

Ap

pro

pri

atio

ns

cred

ited

to

Sp

ecia

l A

cco

un

ts (

GS

T e

xcl

usi

ve)

-

- -

- -

- -

- -

- -

Bal

ance

of

Au

tho

rity

to

Dra

w C

ash

fr

om

th

e C

RF

fo

r O

ther

Th

an

Ord

inar

y A

nn

ual

Ser

vic

es

Ap

pro

pri

atio

ns

6

4,7

18

-

-

-

4

,85

3,0

29

-

-

-

-

-

4

,91

7,7

47

Repr

esen

ted

by:

No

t d

raw

n f

rom

th

e O

PA

64

,71

8

-

-

-

4

,85

3,0

29

-

-

-

-

-

4

,91

7,7

47

To

tal

6

4,7

18

-

-

-

4

,85

3,0

29

-

-

-

-

-

4,9

17

,747


No

tes

to a

nd

fo

rmin

g p

art

of

the

Fin

an

cia

l S

tate

men

ts

Pa

rtic

ula

rsA

dm

inis

tered

N

on

-op

era

tin

gT

ota

l

Ou

tco

me

1

Ou

tco

me

2

Ou

tco

me

3

SPPs

N

ew

SPPs

N

ew

SPPs

N

ew

Equi

ty

Loan

s Pr

evio

us y

ears

' ou

tput

sAd

min

ass

ets

and

liabi

litie

s Y

ear

end

ed 3

0 J

un

e 2004

(Co

mp

ara

tiv

e P

erio

d)

$

$$

$$

$$

$$

$$

Bal

ance

car

ried

fro

m p

rev

iou

s y

ear

3

5,8

88

-

-

-

10,1

47,5

59

-

-

-

-

-

10,1

83,4

47

Ap

pro

pri

atio

n A

ct (

No

.2)

20

03

-04

9,8

96

,000

-

1

,33

9,1

16

,00

0

-

5

48

,738

,00

0

-

6

8,0

00

-

-

-

1

,89

7,8

18

,00

0

Ap

pro

pri

atio

n A

ct (

No

.4)

20

03

-04

52

9,0

00

-

-

-

1

0,2

29

,00

0

-

8

57

,000

-

-

-

1

1,6

15

,00

0

Adju

stm

ents

by t

he

Fin

ance

Min

iste

r

-

-

-

-

-

-

-

-

-

-

-

Advan

ce t

o t

he

Fin

ance

Min

iste

r

-

-

-

-

-

-

-

-

-

-

-

Ref

unds

cred

ited

(F

MA

s30)

-

-

-

-

-

-

-

-

-

-

-

Ap

pro

pri

atio

ns

to t

ake

acco

un

t o

f re

cov

erab

le G

ST

(F

MA

A s

30

A)

1

7,9

44

-

-

-

-

-

9

2,5

00

-

-

-

1

10

,444

An

no

tati

on

s to

'net

ap

pro

pri

atio

ns'

(F

MA

A s

31

) -

-

-

-

-

-

-

-

-

-

-

Oth

er c

ash a

dju

stm

ents

-

-

-

-

-

-

-

-

-

-

-

Ad

just

men

t o

f ap

pro

pri

atio

ns

on

ch

ang

e o

f en

tity

fu

nct

ion

(F

MA

A

s32

) -

-

-

-

-

-

-

-

-

-

-

Ap

pro

pri

atio

n l

apse

d

(5

,26

0)

-

(5

1,2

81

,344

)

-

-

-

-

-

-

-

(51

,28

6,6

04

)

To

tal

app

rop

riat

ion

av

aila

ble

fo

r p

aym

ents

10

,47

3,5

72

-

1

,28

7,8

34

,65

6

-

5

69

,114

,55

9

-

1

,01

7,5

00

-

-

-

1

,86

8,4

40

,28

7

Cas

h p

aym

ents

mad

e d

uri

ng

th

e yea

r (G

ST

incl

usi

ve)

10

,44

3,5

72

-

1,2

87

,834

,65

6

-

56

9,1

14

,55

9

-

1,0

17

,500

- -

-

1,8

68

,410

,28

7

Ap

pro

pri

atio

ns

cred

ited

to

Sp

ecia

l A

cco

un

ts-

- -

- -

- -

- -

- -

Bal

ance

car

ried

to

th

e n

ext

yea

r

3

0,0

00

-

-

-

-

-

-

-

-

-

30

,00

0


Part

5 |

Fina

ncia

l sta

tem

ents


Note 27C: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Unlimited Amount)

Legislation: Social Security Act2005 2004

Outcome 1

$ $

Purpose: to enable the payment of income support paymentsAll transactions under this Act are recognised as administered items.

Cash payment made during the year - 2,669,954,000

Budget estimate 1,039,290,068 2,811,766,507

FaCS is responsible for the administration of payments made under the Social Security Act, however, Centrelink has made payments under drawing rights of $904,196,000 on behalf of FaCS.

Legislation: Social Security Act2005 2004

Outcome 3

$ $

Purpose: to enable the payment of income support paymentsAll transactions under this Act are recognised as administered items.


Budget estimate 30,145,046,020 41,686,489,643

FaCS is responsible for the administration of payments made under the Social Security Act, however, Centrelink has made payments under drawing rights of $28,985,599,000 on behalf of FaCS and the Department of Veteran’s Affairs has made payments under drawing rights of $59,738,000 on behalf of FaCS.

Legislation: Childcare Rebate Act 19932005 2004

Outcome 1

$ $

Purpose: to enable the provision of a rebate relating to the provision of child care for dependant children of registered familiesAll transactions under this Act are recognised as administered items.

Cash payment made during the year - -

Budget estimate - 2,524

Legislation: Child Support (Registration and Collection) Act 19882005 2004

Outcome 1

$ $

Purpose: to enable payments to be made to cover shortfalls in the Child Support Trust AccountAll transactions under this Act are recognised as administered items.

Cash payment made during the year 28,811,000 90,765,000

Budget estimate - 87,833,315

Legislation: A New Tax System (Family Assistance) (Administration) Act 19992005 2004

Outcome 1

$ $

Purpose: to enable the payment of family assistance to support familiesAll transactions under this Act are recognised as administered items.


Budget estimate 15,868,415,613 14,750,757,246

FaCS is responsible for the administration of payments made under the Social Security Act, however, Centrelink has made payments under drawing rights of $14,905,954,000 on behalf of FaCS.



Legislation: A New Tax System (Bonuses for Older Australians) Act 19992005 2004

Outcome 3

$ $

Purpose: to enable special one-off payments to pensioners and self-funded retirees to protect the value of their savings and retirement income after the implementation of the GST Tax Reform packageAll transactions under this Act are recognised as administered items.


Budget estimate 95,004 181,645

Legislation: State Grants (Housing) Act 19712005 2004

Outcome 2

$ $

Purpose: To provide to states and territories grants for the purposes of housingAll transactions under this Act are recognised as administered items.


Budget estimate - -

Totals for unlimited special appropriations

Payments made 28,811,000 57,003,087,000

Budget estimate 47,052,846,705 59,337,030,880

Note 27D: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund - Special Appropriations (Limited Amount)

Legislation: Appropriations (Supplementary Measures) Act (No.1) 1999 2005 2004 1

Outcome 2

$ $

Purpose: To provide Supported Accommodation Assistance (Administered)

Balance carried from previous period 60,000,000 45,000,000

Appropriation for reporting period - 15,000,000

Available for payments 60,000,000 60,000,000

Appropriation lapsed - -

Payments made - -

Balance carried to the next period 60,000,000 60,000,000

Represented by:

Cash - -

Total - -

This amount was appropriated and paid under Appropriation Act No. 2 and the amount shown above will lapse.


Part

5 |

Fina

ncia

l sta

tem

ents


Note 27E: Special Accounts

Child Support Trust Account (Administered)

Legal Authority: Section 73 Child Support Act 1988Appropriation: Financial Management and Accountability Act 1997: s21Purpose: for the receipt of maintenance payments and the making of regular and timely payments to custodial parents This account was transferred to DHS 16 December 2004

2005 2004

$ $

Balance carried from previous year 28,742,967 28,424,833

Appropriation Act (No. 2) 2004-2005 454,753,293 -

Other revenue for reporting period - 755,153,574


Payments made to suppliers (483,496,260) (754,835,440)

Balance carried to next year - 28,742,967

Represented by:Cash - 28,742,967

Total - 28,742,967

The Department transferred responsibility for the Child Support Agency to the Department of Human Services in December 2004 and no longer administers this account.

Other Trust Monies (Administered)

Legal Authority: Section 20 of the Financial Management and Accountability Act 1997Purpose: for the receipt of unreconciled monies from clients

2005 2004

$ $

Balance carried from previous year - -

Available for payments - -

Payments made to suppliers - -

Balance carried to next year - -

Represented by:Cash - -

Total - -

Social Security - Services for Other Government and Non-Government Bodies (Administered)

Legal Authority: Section 20 of the Financial Management and Accountability Act 1997Purpose: for services relating to specific Government and Non-Government bodies

2005 2004

$ $

Balance carried from previous year 381,608 372,895

Appropriation Act (No. 2) 2003-04 - -

Previous year adjustments 18,182 -

Other revenue for reporting period - 813,525

Available for payments 399,790 1,186,420

Payments made to suppliers (1,751) (804,812)

Balance carried to next year 398,039 381,608

Represented by:Cash 398,039 381,608

Total 398,039 381,608



Other Services – Services for Other Government and Non-Government Bodies (Administered)

Legal Authority: Financial Management and Accountability Act 1997Purpose: for expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies.

2005 2004

$ $

Balance carried from previous year - -

Restructuring 152,721 -

Available for payments 152,721 -

Payments made to suppliers (60,087) -

Balance carried to next year 92,634 -

Represented by:Cash 92,634 -

Total 92,634 -

Commonwealth State Disability Agreement Reserve (Administered)

Legal Authority: Section 20 of the Financial Management and Accountability Act 1997Purpose: for expenditure on projects which relate to the Commonwealth/State Disability research and development agenda

2005 2004

$ $

Balance carried from previous year 1,023,008 415,628

Previous year adjustment 1,783 -

Other revenue for reporting period 221,404 780,380



Balance carried to next year 1,024,622 1,023,008

Represented by:Cash 1,024,622 1,023,008

Total 1,024,622 1,023,008

Child Care Capital Replacement and Upgrade Program Trust Account (Administered)

Legal Authority: Please refer to Note 1 Section 1.20 for detailsPurpose: to receive and hold money arising from the sale of Commonwealth funded childcare centres until such time as that money may be reinvested into the building of a new childcare centre or another project funded under the capital replacement and upgrade

2005 2004

$ $

Balance carried from previous year - 449,266

Available for payments - 449,266

Payments returned to the OPA - (449,266)


Represented by:Cash transferred to the Official Public Account - -

Cash – held by the agency - -

Total - -


Part

5 |

Fina

ncia

l sta

tem

ents


Victorian Outside School Care Official Trust Account

Legal Authority: Please refer to Note 1 Section 1.20 for detailsPurpose: the receipt of monies contributed by the Victorian State Government for the administration of outside school hours care

2005 2004

$ $

Balance carried from previous year - 5,752,931

Available for payments - 5,752,931

Payments made to OPA - (5,752,931)


Represented by:Cash transferred to the Official Public Account - -

Total - -

Supported Accommodation Assistance Program R&D Special Account (Administered)

Legal Authority: Section 20 of the Financial Management and Accountability Act 1997Purpose: the receipt of monies for the National Date Collection, national evaluations, national committees and research projects under FaCS' Supported Accommodation Assistance Program

2005 2004

$ $

Balance carried from previous year 1,208,630 1,872,478

Other revenue for reporting period 2,340,000 2,300,000


Payments made to suppliers (2,400,414) (2,963,848)

Balance carried to next year 1,148,216 1,208,630

Represented by:Cash transferred to the Official Public Account 1,148,216 1,208,630

Total 1,148,216 1,208,630

National Youth Affairs Research Scheme (Administered)

Legal Authority: Section 20 of the Financial Management and Accountability Act 1997Purpose: for the receipt of monies from State Governments to meet expenditure in respect of the National Youth Affairs Research Scheme

2005 2004

$ $

Balance carried from previous year 719,947 889,670

Previous year adjustment (260,132) -

Other revenue for reporting period 255,768 240,000

Available for payments 715,583 1,129,670


Balance carried to next year 464,337 719,947

Represented by:Cash transferred to the Official Public Account 464,337 719,947

Total 464,337 719,947



Note 28: Assets Held in Trust

This account holds monies advanced to The Department of Family and Community Services by Comcare for the purpose of distributing compensation payments made in accordance with the Safety Rehabilitation and Compensation Act 1998. Where Department of Family and Community Services makes payments against accrued sick leave entitlements pending determination of an employee's claim, permission is obtained in writing from each individual to allow Department of Family and Community Services to recover the payments from the monies in the account.

2005

$'000

2004 $'000

Balance carried forward from previous year 1,547 1,529 Receipts during the year 505 274 Available for payments 2,052 1,803 Payments made 1,943 256 Balance carried forward to next year held by the entity 109 1,547

Note 29: Specific Payment Disclosures 2005

$

2004$

Administered

273 'Act of Grace' expenses were incurred during the reporting period. (2004: 147 payments made) 372,292 173,777 228 of the above expenses amounting to $105,968 were paid on a periodic basis (2004: 119 payments amounting to $49,081). Both are expected to continue in future years. The estimated amount outstanding in relation to payments being made on a periodic basis as at 30 June 2005 was $213,325 ($189,291 at 30 June 2004).

11 waivers of amounts owing to the Commonwealth were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2004: 12 waivers). 482,150 26,127

511,861 waivers of amounts owing to the Commonwealth were made pursuant to s1237 of the Social Security Act (2004: 797,487 waivers). 42,626,283 58,654,668

1,089 ex-gratia payments were provided for during the reporting period (2004: 1,784 payments). 1,007,924 3,039,166 Ex-gratia programs provide financial assistance to victims of national and international disasters.

3 payments made under the 'Defective Administration Scheme' (2004: 26 payments). 6,213 36,671

Departmental

Nil payments were made under the 'Defective Administration Scheme' during the reporting period (2004: nil payments). Nil Nil

Nil payments were made under s73 of the Public Service Act 1999 during the reporting period (2004: 2 payments). Nil 20,500


Part

5 |

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73

,230

1,5

85

,74

3

1,3

55

,61

2

30,4

89

,967

43,1

41

,515

48,9

01

,620

64,9

70

,357

Documents

Annual Report 2004-2005 - Financial Statementsresources.fahcsia.gov.au/annualreport/2005/_lib/pdf/facs_ar_part-five... · Part 5 |Financial statements 2004–05 327 Part 5 | Financial