Appendix 1

FINANCIAL STATEMENTS 1998-99

FEDERAL COURT OF AUSTRALIAStatement by the Registrar

FEDERAL COURT OF AUSTRALIAAGENCY REVENUES AND EXPENSESfor the year ended 30 June 1999

Notes 1998-99 1997-98 $'000 $'000

NET COST OF SERVICESExpenses

Employees 4.1 33,115 30,465Suppliers 4.2 21,921 12,777Depreciation and amortisation 4.3 1,877 1,962Net losses from sales and disposals of assets 4.4 1,332 79Write down of assets 4.5 1,961 22,683

Total expenses 60,206 67,966

Revenues from independent sourcesSales of goods and services 5 134 105Other revenues from independent sources 5 609 603

Total revenues from independent sources743 708

Net cost of services 59,463 67,258

REVENUES FROM GOVERNMENTAppropriations used for:

Ordinary annual services (net appropriations) 6 49,356 52,245Liabilities assumed by other agencies 2(i)(2) 4,729 4,203Resources received free of charge 7 166 119

Total revenues from government 54,251 56,567

Operating (deficit)/surplus (5,212) (10,691)Accumulated results at 1 July 18,308 28,999Accumulated results at 30 June 13,096 18,308

ADMINISTERED REVENUES AND EXPENSESfor the year ended 30 June 1999

REVENUESTAXATION

Court fees 8,809 8,370Court fines 1 11

Total Taxation 8,810 8,381

NON-TAXATIONOther 121 113

Total Non-taxation 121 113

Total revenues 8,931 8,494

EXPENSESRefund of Court fees 152 223Refund of Court fines 1 10

Write down of assets 4.5 143 29Total expenses 296 262

Net contribution to government 8,635 8,232

TRANSFERSCash from Official Commonwealth Public Account 152 234Cash to Official Commonwealth Public Account (8,755) (8,497)

Net change in administered assets 32 (31)Accumulated results at 1 July 259 290Accumulated results at 30 June 291 259

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

FEDERAL COURT OF AUSTRALIAAGENCY ASSETS AND LIABILITIESas at 30 June 1999

Notes 1998-99 1997-98 $'000 $'000

DEBTOther 9 1,362 1,565

Total debt 1,362 1,565

PROVISIONS AND PAYABLESEmployees 10.1 9,821 8,820Suppliers 10.2 479 283

Total provisions and payables 10,300 9,103

EQUITYCapital of business operations 11 4,585 -Accumulated results 11 13,096 18,308Reserves 11 319 -

Total equity 18,000 18,308

Total liabilities and equity29,662 28,976

FINANCIAL ASSETSCash 12.1 44 21Receivables 12.2 4,827 4,387

Total financial assets 4,871 4,408

NON-FINANCIAL ASSETSLand and buildings 13.1 3,457 3,735Infrastructure, plant and equipment 13.2 9,909 10,509Intangibles 13.3 406 -Other 13.5 11,019 10,324

Total non-financial assets 24,791 24,568

Total assets 29,662 28,976

Current liabilities 3,311 2,773Non-current liabilities 8,351 7,895Current assets 11,723 14,733Non-current assets 17,939 14,243

ADMINISTERED ASSETS AND LIABILITIESas at 30 June 1999

EQUITYAccumulated results 11 291 259

Total equity 291 259

Total liabilities and equity 291 259

FINANCIAL ASSETSCash 12.1 31 31Receivables 12.2 260 228

Total financial assets 291 259

Total Assets 291 259

Current liabilities - -Non-current liabilities - -Current assets 291 259Non-current assets - -The above statements should be read in conjunction with the accompanying notes.

FEDERAL COURT OF AUSTRALIAAGENCY REVENUES AND EXPENSES BY PROGRAMfor the year ended 30 June 1999

Program 4.1 Program 4.5 TotalFederal Court Tribunals

1998-99 1997-98 1998-99 1997-98 1998-99 1997-98$'000 $'000 $'000 $'000 $'000 $'000

NET COST OF SERVICESExpenses

Employees 32,749 30,257 366 208 33,115 30,465Suppliers 21,769 12,655 152 122 21,921 12,777Depreciation and amortisation 1,868 1,955 9 7 1,877 1,962Net losses from sales and disposals of assets 1,332 79 - - 1,332 79Write down of assets 1,961 22,683 - - 1,961 22,683

Total expenses 59,679 67,629 527 337 60,206 67,966

Revenues from independent sourcesSales of goods and services 134 105 - - 134 105Other revenues from independent sources 609 603 - - 609 603

Total revenues from independent sources 743 708 - - 743 708Net cost of services 58,936 66,921 527 337 59,463 67,258

REVENUES FROM GOVERNMENTAppropriations used for:

Ordinary annual services (netappropriations)

48,945 52,066 411 179 49,356 52,245

Liabilities assumed by other agencies 4,713 4,189 16 14 4,729 4,203Resources received free of charge 166 118 - 1 166 119

Total revenues from government 53,824 56,373 427 194 54,251 56,567

Operating (deficit)/surplus (5,112) (10,548) (100) (143) (5,212) (10,691)

ADMINISTERED REVENUES AND EXPENSES BY PROGRAMfor the year ended 30 June 1999

REVENUESTAXATION

Court fees 8,809 8,370 - - 8,809 8,370Court fines 1 11 - - 1 11

Total Taxation 8,810 8,381 - - 8,810 8,381

NON-TAXATIONOther 121 113 - - 121 113

Total Non-Taxation 121 113 - - 121 113

Total Revenues 8,931 8,494 - 8,931 8,494

EXPENSESRefund of Court fees 152 223 - - 152 223Refund of Court fines 1 10 - - 1 10Write down of assets 143 29 - - 143 29

Total expenses 296 262 - - 296 262Net contribution to Government 8,635 8,232 - - 8,635 8,232

TRANSFERSCash from Official Commonwealth PublicAccount

152 234 - - 152 234

Cash to Official Commonwealth PublicAccount

(8,755) (8,497) - - (8,755) (8,497)

Net change in administered assets 32 (31) - - 32 (31)Accumulated results at 1 July 259 290 - - 259 290Accumulated results at 30 June 291 259 - - 291 259

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

FEDERAL COURT OF AUSTRALIAAGENCY CASH FLOWSfor the year ended 30 June 1999

Notes 1998-99 1997-98$'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 53,623 49,986Sales of goods and services 579 672

Total cash received 54,202 50,658

Cash usedEmployees (27,163) (25,541)Suppliers (22,625) (22,759)

Total cash used (49,788) (48,300)

Net cash from operating activities 15 4,414 2,358

INVESTING ACTIVITIESCash received

Proceeds from sales of property, plant and equipment 68 6Total cash received 68 6

Cash usedPurchase of property, plant and equipment (4,459) (2,356)

Total cash used (4,459) (2,356)

Net cash used in investing activities (4,391) (2,350)

Net increase in cash held 23 8add cash at 1 July 21 13Cash at 30 June 12.1 44 21

ADMINISTERED CASH FLOWSfor the year ended 30 June 1999

OPERATING ACTIVITIESCash receivedTAXATION

Court fees 8,635 8,383Court fines 1 10

Total Taxation 8,636 8,393NON-TAXATION

Cash from Official Commonwealth Public Account 152 234Other 120 112

Total Non-taxation 272 346Total cash received 8,908 8,739

Cash usedRefund of Court fees (152) (224)Refund of Court fines (1) (10)Cash to Official Commonwealth Public Account (8,755) (8,497)

Total cash used (8,908) (8,731)Net cash from/(used by) operating activities 15 - 8

Net increase/(decrease) in cash held - 8add cash at 1 July 31 23Cash at 30 June 12.1 31 31

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

FEDERAL COURT OF AUSTRALIASCHEDULE OF COMMITMENTSas at 30 June 1999

Agency Administered

1998-99 1997-98 1998-99 1997-98$'000 $'000 $'000 $'000

BY TYPE

CAPITAL COMMITMENTSInfrastructure, Plant and Equipment 176 946 - -

Total capital commitments 176 946 - -

OTHER COMMITMENTSOperating Leases 119,614 116,375 - -Goods and services contracts 5 8 - -Other commitments - 71 - -

Total other commitments 119,619 116,454 - -

Total commitments payable 119,795 117,400

COMMITMENTS RECEIVABLE - - - -

Net commitments 119,795 117,400 - -

BY MATURITY

All net commitmentsOne year or less 12,450 9,896 - -From one to two years 11,927 11,999 - -From two to five years 35,782 35,814 - -Over five years 59,636 59,691 - -

Net commitments 119,795 117,400 - -

Operating lease commitmentsOne year or less 12,269 8,871 - -From one to two years 11,927 11,999 - -From two to five years 35,782 35,814 - -Over five years 59,636 59,691 - -

Net commitments 119,614 116,375 - -

SCHEDULE OF CONTINGENCIESas at 30 June 1999

Agency Administered

1998-99 1997-98 1998-99 1997-98$ $ $ $

CONTINGENT LOSSES - - - -

CONTINGENT GAINS - - - -

Net contingencies - - - -

SCHEDULE OF UNQUANTIFIABLE CONTINGENCIES

A claim for damages has been lodged in the Supreme Court of Queensland against the Commonwealth. The liabilityof the Commonwealth, if any, cannot be estimated at this time as it is subject to the outcome of the legalproceedings.

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

FEDERAL COURT OF AUSTRALIANOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the year ended 30 June 1999

Note Description1 Court Objectives2 Summary of Significant Accounting Policies3 Events Occurring after Balance Sheet Date4 Goods and Services Expenses5 Revenue from Independent Sources6 Expenditure from Annual Appropriations7 Resources Received Free of Charge8 Resources Provided Free of Charge9 Other Debt10 Provisions and Payables11 Equity12 Financial Assets13 Non-Financial Assets14 Receipts of the Consolidated Revenue Fund15 Cash Flow Reconciliation16 Receipts and Expenditure of the Reserved Money Fund and Special Public Money17 Remuneration of Executives18 Services Provided by the Auditor-General19 Average Staffing Levels20 Waivers and Act of Grace Payments21 Financial Instruments

FEDERAL COURT OF AUSTRALIANOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 June 1999

NOTE 1: COURT OBJECTIVES

The Federal Court of Australia forms a single sub-program (4.1) within the Attorney-General's portfolio. Theobjectives of this sub-program are contained in the objectives section of the Court's Annual Report.

The Federal Court of Australia also provides administrative support to the following Tribunals under sub-program4.5: Copyright Tribunal; Defence Force Discipline Appeal Tribunal; Federal Police Disciplinary Tribunal; and theAustralian Competition Tribunal.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The financial statements are required by s. 49 of the Financial Management and Accountability Act 1997 and are ageneral purpose financial report.

The statements have been prepared in accordance with Schedule 2 to the Financial Management andAccountability (FMA) Orders made by the Minister for Finance and Administration in December 1998. Thestatements have been prepared:• in compliance with Australian Accounting Standards, other authoritative pronouncements of the

Australian Accounting Standards Board and the Consensus Views of the Urgent Issues Group: and• having regard to Statements of Accounting Concepts.

The financial statements 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 they do not take account of changingmoney values.

The continued existence of the Court in its present form, and with its present programs, is dependent on Governmentpolicy and on continuing appropriations by Parliament for the Court’s administration and programs.

(b) Changes in Accounting Policy

Changes in accounting policy have been identified in this note under their appropriate headings.

(c) Asset Capitalisation Threshold

All depreciable non-current assets (excluding information technology equipment) with historical costs equal to or inexcess of $2,000 are capitalised in the year of acquisition. Information technology equipment is capitalised wherehistorical costs equal or exceed $1,500. Assets with historical costs less than $2,000 are expensed in the year ofacquisition unless they form a large group of similar assets which are significant in total.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fairvalue at the date of acquisition, unless acquired as a consequence of restructuring administrative arrangements. Inthe latter case, assets are initially recognised at the amounts at which they were recognised in the transfer agency’saccounts immediately prior to the restructuring. A number of items with a net book value of less than $2,000 attransfer date have been included on the Court’s assets register on the basis that their original acquisition cost wasequal to or in excess of $2,000.

(d) Measurement of Assets

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

Assets recognised in these statements for the first time, as well as assets acquired at no cost, or for nominalconsideration, are initially recognised as assets and revenues at their fair value at the date of recognition.

2. The Court’s library holdings were revalued by the Australian Valuation Office during the 1998-99 financialyear. This revaluation was in accordance with the `deprival’ method of valuation. The resulting expense isshown in the statement of Revenues and Expenses for the 1998-99 financial year (see Note 4.5).

3. Schedule 2 requires that property, plant and equipment be progressively revalued in accordance with the`deprival' method of valuation by 1 July 1999 and thereafter be revalued progressively on that basis every

three years. The Court revalued all of its’ property, plant and equipment during the 1998-99 financial year.Assets acquired after the commencement of the revaluation are reported at cost.

(e) Depreciation of Non-Current Assets

Depreciable non-current assets are written-off over their estimated useful lives. Estimated useful lives are reviewedannually. Depreciation is calculated using the straight-line method which reflects the pattern of usage of the Court'sdepreciable non-current assets.

Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of theimprovements or the unexpired period of the lease.

The depreciation rates applying to each class of depreciable asset are as follows:

1999 1998Information technology equipment 4 years 4 yearsOffice equipment 8 years 8 yearsFurniture and fittings 10 years 10 yearsLeasehold improvements Lease Term or 10 years 10 yearsLibrary material 5 to 40 years 80 years

(f) Employee Entitlements

The provision for employee entitlements encompasses annual leave and long service leave. No provision has beenmade for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees ofthe Court is estimated to be less than the annual entitlement for sick leave.

The liability for annual leave reflects the value of total annual leave entitlements of all employees at 30 June 1999and is recognised at the nominal amount.

The long service leave provision is based on the Federal Court's estimated liability at balance date for long serviceleave entitlements of its employees. Court staff employed under the Public Service Act accrue 3 months long serviceleave after 10 years service, and progressively thereafter on a proportional basis. The Federal Court accrues thisprovision for each employee (bar Judges) based on the probability that long service leave will be taken in the future orpaid out once the employee meets the qualifying 10 years. The provision for long service leave reflects the value ofthe estimated future cash flows to be made in respect of all employees. In determining the present value of theliability, the Court has taken into account attrition rates and pay increases through promotion and inflation.

Judges accrue 6 months long leave after 5 years of service. In recognition of the nature of Judges' tenure, a provisionis accrued from the first year of service.

(g) Rounding

Amounts have been rounded to the nearest $1,000 except in relation to the following:• transactions of the Consolidated Revenue Fund, the Reserved Money Fund and Special Public Moneys;• act of grace payments and waivers;• remuneration of executives; and• remuneration of auditors.

(h) Cash

Cash includes cash on hand and deposits at call which are readily convertible to cash on hand and used in the day-to-day management of the Court.

(i) Superannuation

1. Staff of the Court contribute to the Commonwealth Superannuation Scheme and the Public SectorSuperannuation Scheme. Employer contributions including the Employer Superannuation ProductivityBenefit amounting to $1,617,049 (1997-98 $1,600,711) in relation to these schemes have been expensed inthese financial statements. No liability is shown for superannuation in the statement of Assets and Liabilitiesas the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.

2. Under the Judges' Pension Act 1968 Federal Court judges are entitled to a non-contributory pension of 60%of current judicial salary after attaining the age of 60 years and having served 10 years or more as a judge orupon retirement on the ground of invalidity. Pro rata pension is payable after 6 years service as a judge uponretirement. As the liability for these pension payments is assumed by the Commonwealth, the Court has not

recognised a liability for unfunded superannuation liability. The Court has, however, recognised both anexpense and a corresponding revenue item ("Liabilities assumed by other agencies") in respect of thenotional amount of the employer's superannuation contribution for the year amounting to $4,729,070 (1997-98 $4,203,771). The amount has been calculated as 56% of the total salary expenditure in respect of FederalCourt judges.

(j) Lease Incentives

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

(k) Taxation

The Court's activities are exempt from all forms of taxation except fringe benefits tax.

(l) Insurance

A new Commonwealth insurable risk managed fund, called ‘Comcover’, commenced operations from 1 July 1998.From that date, the Court has insured with the fund for risks other than workers compensation, which is dealt with viacontinuing arrangements with Comcare.

The new arrangements replace the previous policy of non-insurance and require systematic identification,quantification, reporting and management of risk across the Court.

(m) Leases

A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially allthe risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessoreffectively retains all such risks and benefits. All leased assets have been classified as operating leases. Operatinglease payments are charged to the statement of Revenues and Expenses on a basis which is representative of thepattern of benefits derived from the leased assets.

(n) Bad and Doubtful Debts

Debts are written off as bad when so identified. The write-off is to expense or, to the extent that a provision for adoubtful debt already existed, as a reversal of the provision.

A provision is raised for any doubtful debts based on a review of all outstanding accounts at year end.

(o) Agency and Administered Items

Agency assets, liabilities, revenues and expenses are those items that are controlled by the Court including:• property, plant and equipment used in providing goods or services;• liabilities for employee entitlements;• revenues from running costs appropriations;• revenues from user charging where the proceeds are deemed appropriated under s. 31 of the Financial

Management and Accountability Act 1997; and• employee expenses and other administrative expenses incurred in providing goods and services.

Administered items are those items which are controlled by the Government and managed or oversighted by the Courton behalf of the Government. These include fees and fines.

The purpose of the separation of agency and administered items is to enable the assessment of administrativeefficiency of the Court in providing goods and services.

The basis of accounting described in Note 2(a) applies to both agency and administered items.

Schedule 2 to the Financial Management and Accountability (FMA) Orders requires that administered transactionsbe accounted for on a double entry basis. The effects of this requirement are that;• transfers of cash to and from the Official Commonwealth Public Account (CPA) will be reported on the face

of the statement of Administered Revenues and Expenses where operating transactions are involved, and that,• where transactions involving financial assets and liabilities not arising from operations are involved,

receivables from and payables to the CPA will be recognised in the statement of Administered Assets andLiabilities.

Administered items are distinguished from agency items in the financial statements by shading.

(p) Appropriations

Appropriations for the Court’s operations other than running costs are recognised as revenue to the extent that theappropriations are spent.

Appropriations for the Court’s running costs have, until 1998-99, been recognised as revenue in the year ofappropriation, except to the extent that;• amounts unspent at year end are not automatically carried over into the new financial year, and• the appropriations involve running costs borrowings, the repayment of which has been effected by an appropriate

reduction in the appropriation actually received in the year of repayment. (Interest may also be charged onborrowings).

With the introduction of accrual budgeting by the Commonwealth for 1999-2000, any reappropriation to the Court ofthe automatic running costs carryover for 1999-2000 will be by way of a capital rather than a revenue appropriation.Accordingly, the carryover is not recognised as revenue but directly in equity in the financial statements for 1998-99.

(q) Allocation of Costs and Revenues to Court Programs

An attribution model based on expenditure is used by the Court for reporting a notional share of the total runningcosts expenditure to each sub-program.

(r) Comparative Figures

Where necessary, comparative figures have been adjusted to conform to changes in presentation in these financialstatements.

(s) Resources Received Free of Charge

Resources received free of charge are recognised in the statement of Revenues and Expenses as revenue when andonly when a fair value can be reliably determined and the services would have been purchased if they had not beendonated. Use of these resources is recognised in the Net Cost of Services or where there is a long-term benefit anasset is recognised.

(t) Financial Instruments

Accounting policies in relation to financial instruments are disclosed in Note 21.

NOTE 3: EVENTS OCCURRING AFTER BALANCE SHEET DATE

The Government has introduced an accrual budgeting framework with effect from 1 July 1999. Under this framework, amongother things:• departmental annual appropriations will be paid into a bank account controlled by the Court and will not lapse at year-end;

as a result in future years the practice of carrying over revenue to the new financial year becomes redundant. Accountingfor carryovers to 1999-2000 is affected by the re-appropriation of the carryover as a capital rather than a revenueappropriation in 1999-2000 (refer note 2 (p));

• the Reserved Moneys Fund is abolished and consolidated into the Consolidated Revenue Fund (CRF); components ofthese funds as at 30 June 1999 become ‘special accounts’ within the CRF, the funds are ‘hypothecated’ for the purposes ofeach account.

NOTE 4: GOODS AND SERVICES EXPENSES

4.1: Employee Expenses 1998-99$'000

1997-98$'000

Remuneration (for services provided) 26,497 24,194Superannuation 6,346 5,804Separation and redundancy payments 201 341Other 71 126Total employee expenses 33,115 30,465The separation and redundancy expense is calculated on the basis of two weeks pay for every year of service byemployees made redundant.

4.2: Suppliers Expenses 1998-99$’000

1997-98$’000

Supply of goods and services 11,770 11,038Prepayments not previously recognised - (4,121)Operating lease rentals 10,151 5,860Total supplier expenses 21,921 12,777

4.3: Depreciation and Amortisation

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

1998-99$’000

1997-98$’000

Leasehold improvements 576 880 Plant and equipment 1,277 1,082 Computer Software 24 -Total depreciation and amortisation 1,877 1,962Depreciation expenses in 1998-99 are $164,000 higher than they would have been as a result of the reduction inthe useful lives of the Court's Library Holdings (1997-98: nil).

4.4: Net Losses from Sales and Disposals of Assets

Non-financial assets:1998-99

$’0001997-98

$’000 Leasehold improvements 1,074 - Plant and equipment 258 79Total net losses from sales and disposals 1,332 79

4.5: Write Down of Assets

Non-financial assets:1998-99

$’0001997-98

$’000 Library Holdings 1,961 22,683Total revaluation decrement 1,961 22,683

ADMINISTEREDFinancial assets:Bad and doubtful debts expense 143 29Total 143 29

NOTE 5: REVENUE FROM INDEPENDENT SOURCES5.1: Revenues from Independent Sources

Gross revenue earned1998-99

$’0001997-98

$’000 Goods 39 3 Services 95 102

134 105Other revenues from independent sources comprise: Resources received free of charge - non government 10 41 Reimbursement of ACT Supreme Court Judges’ remuneration 599 562

609 603Total Revenue from Independent Sources 743 708

5.2: Reconciliation of Revenues from Independent Sources

Gross revenue earned1998-99

$’0001997-98

$’000 Sales of goods and services 134 105

134 105Amounts not recognised as departmental revenue: Proceeds from the disposal of assets reduced the loss on disposal of assets 68 -Revenue from independent sources 202 105

NOTE 6: EXPENDITURE FROM ANNUAL APPROPRIATIONS

1998-99Appropriation

$

1998-99Actual

$

1997-98Actual

$ORDINARY ANNUAL SERVICES OF GOVERNMENTAPPROPRIATION ACT No's 1 and 3Division 1341. Running Costs 58,294,000 53,709,500 50,634,5042. Judges Long Leave 572,000 554,634 -3. Other Services

01. Library Assistance to South Pacific Nations02. Compensation and Legal Expenses

3,00022,000

2,7913,483

2,98721,000

Total - Appropriation Act No's 1 and 3 58,891,000 54,270,408 50,658,491

Reconciliation of Agency Running Costs 1998-99$’000

1997-98$’000

Appropriation spent (Div 134) 54,271 50,658

Less: appropriation under FMA Act section 31 (648) (672)53,623 49,986

Add: Carryover at 30 June (see note 2 (p)) - 4,267Less: Carryover at 1 July (4,267) (2,008)Revenue (included in statement of Revenues and Expenses) 49,356 52,245Revenue from Government – ordinary annual services (perstatement of Revenues and Expenses) 49,356 52,245

NOTE 7: RESOURCES RECEIVED FREE OF CHARGE 1998-99$’000

1997-98$’000

Australian National Audit Office- Provision of audit services 62 73Department of Finance- Provision of accounting services - payroll processing and ledger transactions - 4- Provision of insurance coverage 64 -Australian Archives- Storage and disposal facilities 12 7Attorney-General’s Dept- PABX service - 19Various libraries 28 16

166 119

NOTE 8: RESOURCES PROVIDED FREE OF CHARGE

Legislation passed by Federal Parliament in late November 1996, specifically Schedule 16 of the Workplace Relations andOther Legislation Amendment Act 1996 (WROLA), provided for the jurisdiction previously exercised by the Industrial RelationsCourt of Australia to be transferred to the Federal Court on 26 May 1997.

Despite the transfer of the industrial relations jurisdiction to the Federal Court, the Industrial Relations Court of Australiacontinues to have jurisdiction over certain matters where a substantive hearing in the proceedings had commenced, or wherehearings had been completed before the transfer date. Schedule 16 of the Workplace Relations and Other LegislationAmendment Act 1996 provides that the Chief Justice of the Federal Court may arrange with the Chief Justice of the IndustrialRelations Court for staff, facilities and any other necessary support to be made available to the Industrial Relations Court for thepurposes of the Industrial Relations Court. It is estimated that the cost of the resources provided free of charge by the FederalCourt to the Industrial Relations Court during 1998-99 was $2,839,404 (1997-98: $4,434,308).

NOTE 9: OTHER DEBT

Current1998-99

$’0001997-98

$’000Lease Incentives: 203 203Total 203 203

Non-CurrentLease Incentive 1,159 1,362Total 1,159 1,362

Total Other Debt 1,362 1,565

NOTE 10: PROVISIONS AND PAYABLES

10.1: Employee Liabilities

Current1998-99

$’0001997-98

$’000Annual leave 1,496 1,396Long service leave 241 264Judges long leave 222 159Performance Pay 183 55Salary 266 187Superannuation 33 24Fringe Benefits Tax 188 181Other - 21Total current liabilities 2,629 2,287

Non-CurrentLong service leave 1,982 1,651Judges long leave 5,210 4,882Total non-current liabilities 7,192 6,533

Aggregate employee entitlements liabilities 9,821 8,820

10.2: Suppliers1998-99

$’0001997-98

$’000Trade Creditors 479 283

NOTE 11: EQUITY

Item Capital Accumulatedresults

Asset revaluationreserve

Total equity

1998-99$'000

1997-98$'000

1998-99$'000

1997-98$'000

1998-99$'000

1997-98$'000

1998-99$'000

1997-98$'000

Balance 1 July - - 18,308 28,999 - - 18,308 28,999Operating result - - (5,212) (10,691) - - (5,212) (10,691)Net revaluationincreases

- - - - 319 - 319 -

Capital injection 4,585 - - - - - 4,585 -Balance 30 June 4,585 - 13,096 18,308 319 - 18,000 18,308

ADMINISTERED EQUITY AccumulatedResults$'000

TotalEquity$'000

Balance 1 July 1998 259 259Net change in administered assets 32 32Balance 30 June 1999 291 291

NOTE 12: FINANCIAL ASSETS

12.1: Cash 1998-99$’000

1997-98$’000

Cash on hand 14 12Cash at bank 30 9Total Cash 44 21

ADMINISTERED

Cash on hand 23 22Cash at bank 8 9Total Cash 31 31

12.2: Receivables 1998-99$’000

1997-98$’000

Goods and services 242 121Appropriations 4,585 4,267Less provision for doubtful debts - (1)Total Receivables 4,827 4,387

Receivables are aged as follows:Overdue by:- Less than 30 days 7 81- 30 to 60 days - -- More than 60 days 2 40

ADMINISTEREDFees 443 264Fines - 3Other - 1Less: provision for doubtful debts (183) (40)Total Receivables 260 228

Receivables are aged as follows:Overdue by:- Less than 30 days 116 86- 30 to 60 days 27 30- More than 60 days 290 152

NOTE 13: NON-FINANCIAL ASSETS

13.1: Land and Buildings 1998-99$’000

1997-98$’000

Leasehold Improvements – at cost 1,282 5,057Accumulated amortisation (55) (1,322)

1,227 3,735

Leasehold Improvements – at 1999 valuation 3,275 -Accumulated amortisation (1,045) -

2,230 -

Total Land and Buildings 3,457 3,735

The Court does not own any land or buildings.

13.2: Plant and Equipment

Plant and Equipment – at cost 2,016 8,737Accumulated depreciation (101) (2,631)

1,915 6,106

Plant and Equipment – at 1996 valuation - 4,516Accumulated depreciation - (113)

- 4,403Plant and Equipment – at 1999 valuation 10,184 -Accumulated depreciation (2,190) -

7,994 -

Total Plant and Equipment 9,909 10,509

13.3: Intangibles

Computer Software Purchased – at cost 430 -Accumulated amortisation (24) -

406 -

Total Intangibles 406 -

The revaluations were as at 30 June 1999 in accordance with the policy stated in Note 2 and were completed by anindependent valuer, the Australian Valuation Office. Revaluation increments of $98,000 for leasehold improvements and$221,000 for plant and equipment were transferred to the asset revaluation reserve; decrements of $1,961,000 for libraryholdings were expensed.

13.4: Analysis of Property, Plant and Equipment

Table A: Movement summary 1998-99 for all assets irrespective of valuation basis

Item Leaseholdimprovements

Total landand

buildings

Otherinfrastructure,

plant andequipment

Totalproperty,plant andequipment

Intangibles Total

Gross Value: $'000 $'000 $'000 $'000 $'000 $'000

As at 1 July 1998 5,057 5,057 13,253 18,310 - 18,310

Additions: 1,282 1,282 2,747 4,029 430 4,459

Revaluations 164 164 (2,411) (2,247) (2,247)

Written-off (1,294) (1,294) (444) (1,738) (1,738)

Disposals: (652) (652) (936) (1,588) (1,588)

- other (9) (9) (9)

As at 30 June 1999 4,557 4,557 12,200 16,757 430 17,187

Accumulated Depreciation/Amortisation:As at 1 July 1998 1,322 1,322 2,744 4,066 - 4,066

Depreciation chargefor:- assets held at 1 July 521 521 1,155 1,676 1,676

- additions 55 55 112 167 24 191

Adjustment for:

- revaluation 66 66 (671) (605) (605)

- written-off (769) (769) (366) (1,135) (1,135)

- other disposals (95) (95) (693) (788) (788)

- other 10 10 10

As at 30 June 1999 1,100 1,100 2,291 3,391 24 3,415

Net Book Value asat 30 June 1999

3,457 3,457 9,909 13,366 406 13,772

Net Book Value asat 1 July 1998

3,735 3,735 10,509 14,244 - 14,244

Table B: Summary of balances of assets at valuation as at 30 June 1999

Item Leaseholdimprovements

Total landand

buildings

Otherinfrastructure,

plant andequipment

Total

As at 30 June 1999 $'000 $'000 $'000 $'000

Gross value 3,275 3,275 10,184 13,459

Accumulated Depreciation 1,045 1,045 2,190 3,235

Net book value 2,230 2,230 7,994 10,224

As at 30 June 1998

Gross value - - 4,516 4,516

Accumulated depreciation - - 113 113

Net book value - - 4,403 4,403

13.5: Other

Prepayments:1998-99

$’0001997-98

$’000Library Expenses 198 247Accommodation Expenses 10,728 9,948Other 93 129Total Prepayments 11,019 10,324

NOTE 14: RECEIPTS OF THE CONSOLIDATED REVENUE FUND

1998-99 1998-99 1997-98Budget Actual Actual

$ $ $Court fees { 11,140,000 8,482,748 8,160,068Court fines {Other 190,000 121,074 111,903Section 31 receipts 979,000 648,012 672,317

Total receipts 12,309,000 9,251,834 8,944,288

NOTE 15: CASH FLOW RECONCILIATION

Reconciliation of net cost of services to net cash from operating activities.

1998-99$’000

1997-98$’000

NET COST OF SERVICES – (DEFICIT) (59,463) (67,258)Revenues from Government 54,251 56,567Operating result (5,212) (10,691)Depreciation/amortisation expense 1,877 1,962Losses on disposal of non-current assets 1,332 79Write down of assets 1,961 22,682Other changes in non-current assets 12 (12)Decrease (increase) in receivables (440) (2,358)Decrease (increase) in prepayments (695) (9,729)Increase (decrease) in liability to suppliers 196 (144)Increase in provisions for employee entitlements 1,001 805Increase (decrease) in other liabilities (203) (236)Capital injection 4,585 -NET CASH FROM OPERATING ACTIVITIES 4,414 2,358

ADMINISTERED

Reconciliation of net change in administered assets to net cash from operating activities.

NET CHANGE IN ADMINISTERED ASSETS – (DEFICIT)/GAIN 32 (31)Changes in assets and liabilities Decrease (increase) in receivables (32) 40 Increase (decrease) in provisions - (1)NET CASH FROM OPERATING ACTIVITIES - 8

NOTE 16: RECEIPTS AND EXPENDITURE OF THE RESERVED MONEY FUND AND SPECIAL PUBLICMONEY

16.1: Reserved Money Fund

The Federal Court has two reserved money funds, Trust Funds and Other Trust Moneys (TFOTM) andCOMCARE.

(a) RESERVED MONEY FUND (TRUST MONEYS)

This trust fund is established under s. 20 of the Financial Management and Accountability Act 1997 and is usedto account for funds held by the Commonwealth while acting as trustee for private moneys in its possession.

16.1: Reserved Money Fund (continued) 1998-99$

1997-98$

Opening balance 479,695 216,092Receipts – from other sources 4,788,848 1,257,414Expenditure – for operations 1,368,175 993,811Closing balance 3,900,368 479,695

Represented by:Cash 3,900,368 9,695Investments - 470,000Total 3,900,368 479,695

(b) RESERVED MONEY FUND (COMCARE)

This trust fund is established under s. 20 of the Financial Management and Accountability Act 1997 and is used toaccount for funds held by the Commonwealth pending finalisation of compensation determinations byCOMCARE.

1998-99$

1997-98$

Opening balance - -Receipts – from other sources 69,454 20,632Expenditure – for operations 30,423 20,632Closing balance 39,031 -

Represented by:Cash 39,031 -Investments - -Total 39,031 -

16.2 Special Public Money

Federal Court of Australia Litigants' Fund* Legal Authority - Order 63 rule 2 Federal Court Rules* Purpose - to hold private moneys for litigants pending acceptance of moneys paid into Court by litigants;

security for costs or pursuant to an order of a Federal Court Judge.* Each District Registry of the Federal Court administers a Litigants' Fund account.

1998-99$

1997-98$

Opening balance 929,180 591,494Receipts 12,518,335 4,501,784Expenditure 12,137,141 4,164,098Closing balance 1,310,374 929,180

Represented by:Cash 1,310,374 929,180Investments - -Total 1,310,374 929,180

Other Investments* Legal Authority - Order 63 rule 4 of the Federal Court Rules* Purpose - To invest private moneys paid by litigants pursuant to an order of a Federal Court Judge,

pending an order for payment out by a Federal Court Judge.

1998-99$

1997-98$

Invested Balance at 1 July 6,059,290 3,427,919Purchase of Investments 27,210,430 5,226,382Realisation of Investments 2,005,528 2,595,011Balance at 30 June 31,264,192 6,059,290

16.2 Special Public Money (continued)

* Investments - The balance of investments as at 30 June 1999 consisted of cash management and fixed term bankaccounts to which various interest rates apply. Money is paid out pursuant to orders of the Court. A summary ofthese accounts is set out below:

Face ValueInvestment

$

Cost of Investment

$

Rate ofInterest

%

Date of Maturity

Cash Management AccountsFixed Deposits

4,300,73726,963,455

4,264,63525,992,076

VariousVarious

VariousVarious

Balance at 30 June 1999 31,264,192 30,256,711

NOTE 17: REMUNERATION OF EXECUTIVES

The number of executive officers of the Court whose total remuneration (including non salary components) received, or dueand receivable, in relation to the financial year, directly or indirectly from the Court or any related body, whether as executiveofficer or otherwise, that exceeded $100,000 is as follows:

Total Remuneration 1998-99No.

1997-98No.

$110,001 to $120,000 - 1$120,001 to $130,000 3 6$130,001 to $140,000 6 1$140,001 to $150,000 - 2$180,001 to $190,000 1 1

The aggregate amount of total remuneration of executive officers shown above was $1,365,246 (1997-98 $1,465,101).

The aggregate amount of performance pay paid during the year to executive officers shown above was $59,000 (1997-98$51,300).

The aggregate amount of separation and redundancy payments during the year to executive officers shown above was $NIL(1997-98 $87,058).

NOTE 18: SERVICES PROVIDED BY THE AUDITOR-GENERAL1998-99

$1997-98

$Financial statement audit services are provided by the Australian National AuditOffice free of charge. The fair value of audit services provided was: 62,000 73,000

The 1998-99 audit fee for the Industrial Relations Court of Australia was borne by the Federal Court and has beenincluded in the amount disclosed in this note. No other services were provided by the Auditor-General during thefinancial year.

NOTE 19: AVERAGE STAFFING LEVELS

Average staffing levels by program and in total were as follows:1998-99Number

1997-98Number

Program 4.1: Federal Court of Australia 306.5 284.2Program 4.5: Other Tribunals 1.5 1.5

308 285.7

NOTE 20: WAIVERS AND ACT OF GRACE PAYMENTS

(a) WAIVERS

No payments were waived during the financial year 1998-99 under sub-section 34(1) of the Financial Management andAccountability Act 1997.

The following details are furnished in relation to amounts waived during the financial year under legislation administered by theCourt. Registrars are given the authority to waive or postpone fees where payment would cause hardship or where the potentialpayer is in receipt of legal aid from an approved organisation.

1998-99 1997-98Number Amount

$Number Amount

$Sub-rule 183(3) Bankruptcy Rules - - 2 1,000

Sub-regulation 2(4) Federal Court Regulations - Sub-regulation 2(4)(a) (Legal Aid) 265 81,751 81 41,003 - Sub-regulation 2(4)(b) (Holder of Pension or Health Card or Prison Inmate) 557 287,120 310 191,281 - Sub-regulation 2(4)(c) (Waive on basis of level of income) 567 296,664 384 221,652

Sub-regulation 2A(2) Federal Court Regulations - Sub-regulation 2A(2)(e) (Legal Aid) 135 39,203 32 34,292 - Sub-regulation 2A(2)(f) (Holder of Pension or Health Card or Prison Inmate) 198 56,969 61 63,311 - Sub-regulation 2A(2)(g) (Waive on basis of level of income) 182 75,991 47 40,250

Sub-regulation 2AA(2) Federal Court Regulations - Sub-regulation 2AA(2)(f) (Legal Aid) 86 86,723 58 56,500 - Sub-regulation 2AA(2)(g) (Holder of Pension or Health Card or Prison Inmate) 289 292,915 76 72,823 - Sub-regulation 2AA(2)(h) (Waive on basis of level of income) 452 460,224 115 121,943Total 2,731 1,677,560 1,166 844,055

(b) ACT OF GRACE PAYMENTS1998-99 1997-98

Number Amount$

Number Amount$

Act of Grace payments made were - - - -Total - - - -

NOTE 21: FINANCIAL INSTRUMENTS

a) Terms, conditions and accounting policies

Financial Instrument Notes Accounting Policies and Methods (including recognitioncriteria and measurement basis)

Nature of underlying instrument(including significant terms & conditions affectingthe amount, timing and certainty of cash flows)

Financial Assets Financial assets are recognised when control over future economicbenefits is established and the amount of the benefit can be reliablymeasured.

Cash 12.1 Deposits are recognised at their nominal amounts. No interest isaccrued on moneys held in bank accounts as all bank accounts arewith the Reserve Bank of Australia.

Receivables 12.2 These receivables are recognised at the nominal amounts due lessany provision for bad and doubtful debts. Collectability of debtsis reviewed at balance date. Provisions are made when collectionof the debt is judged to be less rather than more likely.

Receivables are with entities both internal and external tothe Commonwealth.

Fees receivable 12.2 Fees accrue and are recognised at the time services are performed. As for receivables for goods and services. The paymentof fees are set out in the Federal Court rules.

Financial liabilities Financial liabilities are recognised when a present obligation toanother party is entered into and the amount of the liability canbe reliably measured.

Lease incentives 9 The lease incentive is recognised as a liability on receipt of theincentive. The amount of the liability is reduced on a straight-line over the life of the lease by allocating lease paymentsbetween rental expense and reduction of the liability.

The Court has received fitout incentives on entering aproperty operating lease in September 1995.

Trade creditors 10.2 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 serviceshave been received (and irrespective of having been invoiced).

Creditors are entities that are both internal and external tothe Commonwealth. Settlement is usually made net 30days.

NOTE 21: FINANCIAL INSTRUMENTS (Continued)

(b) Interest Rate Risk: Agency

Financial Notes Floating InterestRate

Fixed Interest Rate Non- Total WeightedAverage

Instrument 1 year or less 1 to 2 years 2 to 5 years > 5 years Interest Bearing Effective InterestRate

98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %

Financial AssetsCash 12.1 - - - - - - - - - - 44 21 44 21 n/a n/aReceivables 12.2 - - - - - - - - - - 4,827 4,387 4,827 4,387 n/a n/aTotal FinancialAssets (recognised) - - - - - - - - - 4,871 4,408 4,871 4,408Total assets 29,662 28,976

FinancialLiabilitiesLease incentives 9 - - - - - - - - - - 1,362 1,565 1,362 1,565 n/a n/aTrade creditors 10.2 - - - - - - - - - - 479 283 479 283 n/a n/aTotal FinancialLiabilities(recognised) - - - - - - - - - - 1,841 1,848 1,841 1,848Total liabilities 11,662 10,668

(b) Interest Rate Risk : Administered

FinancialInstrument

Notes Floating InterestRate

Fixed Interest Rate Non-Interest Bearing

Total WeightedAverage

1 year or less 1 to 2 years 2 to 5 years > 5 years EffectiveInterest Rate

98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 % %

Financial AssetsCash 12.1 - - - - - - - - - - 31 31 31 31 n/a n/aFees receivable 12.2 - - - - - - - - - - 260 228 260 228 n/a n/aTotal financialassets (recognised) - - - - - - - - - - 291 259 291 259Total assets 291 259

FinancialLiabilitiesTrade creditors - - - - - - - - - - - - - - n/a n/aTotal FinancialLiabilities(recognised) - - - - - - - - - - - - - -Total Liabilities - -

NOTE 21: FINANCIAL INSTRUMENTS (continued)

(c) Net Fair Values of Financial Assets and Liabilities

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 for lease incentives and trade creditors are approximated by their carrying amounts.

(d) Credit Risk Exposures

The Court’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets isthe carrying amount of those assets as indicated in the statement of Assets and Liabilities.

The Court has no significant exposures to any concentrations of credit risk. All figures for credit risk referred to do nottake into account the value of any collateral or other security.