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Treasurer’s Annual Financial Report
1
Published by the Department of Treasury and Finance
© Northern Territory Government 2013
Apart from any use permitted under the Copyright Act, no part of this document may be reproduced without prior written permission from the Northern Territory Government through the Department of Treasury and Finance.
ISSN: 2201-2125
Department of Treasury and Finance
Cavenagh House, 38 Cavenagh Street, Darwin NT 0800GPO Box 1974, Darwin NT 0801
Telephone: +61 8 8999 7406Facsimile: +61 8 8999 7150Email: [email protected]: www.treasury.nt.gov.au
3
2012-13 Treasurer’s Annual Financial ReportThe financial statements and supplementary tables presented in the 2012-13 Treasurer’s Annual Financial Report (the Report) have been prepared in accordance with Australian Accounting Standards.
A set of Uniform Presentation Framework (UPF) financial statements (Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity and Cash Flow Statement) have been provided for each sector. These sectors are: general government, public non financial corporations, non financial public sector, public financial corporations and total public sector. The Report is presented in two sections: one audited and the other unaudited.
Audited SectionThe Report complies with the Australian Accounting Standards, in particular AASB 1049 Whole of Government and General Government Sector Financial Reporting and the UPF and is consistent with the requirements of the Fiscal Integrity and Transparency Act (FITA) and Financial Management Act (FMA).
The audited section of the Report includes a set of financial statements, by sector, with notes provided for the general government sector and the total public sector.
Comparative data is provided for 2011-12 in both the financial statements and notes to the financial statements.
Unaudited SectionThe unaudited section includes a summary table outlining appropriation changes through the year, by agency. Following this is an explanation of significant variations in appropriation for each general government agency, as well as an explanation of significant variations between the latest estimate and actual result for both operating revenue and expenses. The latter is provided for both general government agencies and government business divisions.
In this section additional tables required by the UPF are also provided relating to: taxes; grant revenue; grant expense; dividend and income tax equivalents; purchases of non financial assets for the general government sector; and Loan Council Allocation for 2012-13 for the non financial public sector.
5Contents
ContentsMinisterial Portfolio Arrangements 7Overview 9
Treasurer’s Annual Financial Statement (Audited) 19Auditor-General’s Report 20
General Government Sector Comprehensive Operating Statement 22General Government Sector Balance Sheet 23General Government Sector Statement of Changes in Equity 24General Government Sector Cash Flow Statement 25Public Non Financial Corporation Sector Comprehensive Operating Statement 26Public Non Financial Corporation Sector Balance Sheet 27Public Non Financial Corporation Sector Statement of Changes in Equity 28Public Non Financial Corporation Sector Cash Flow Statement 29Non Financial Public Sector Comprehensive Operating Statement 30Non Financial Public Sector Balance Sheet 31Non Financial Public Sector Statement of Changes in Equity 32Non Financial Public Sector Cash Flow Statement 33Public Financial Corporation Sector Comprehensive Operating Statement 34Public Financial Corporation Sector Balance Sheet 35Public Financial Corporation Sector Statement of Changes in Equity 36Public Financial Corporation Sector Cash Flow Statement 37Total Public Sector Comprehensive Operating Statement 38Total Public Sector Balance Sheet 39Total Public Sector Statement of Changes in Equity 40Total Public Sector Cash Flow Statement 41
Notes to the Financial Statements 43Note 1: Statement of Significant Accounting Policies 45Note 2: Other Economic Flows 61Note 3: GFS Generally Accepted Accounting Principles (GAAP) Reconciliation 62Note 4: Taxation Revenue 64Note 5: Current Grants 64Note 6: Capital Grants 64Note 7: Sales of Goods and Services 64Note 8: Dividend and Income Tax Equivalent Income 64Note 9: Other Revenue 64Note 10: Other Operating Expenses 65Note 11: Current Grants 65Note 12: Capital Grants 65Note 13: Subsidies and Personal Benefit Payments 65Note 14: Cash and Deposits 65Note 15: Advances Paid 66Note 16: Investments, Loans and Placements 67Note 17: Receivables 68Note 18: Equity Investments – Other 68Note 19: Inventories 69Note 20: Property, Plant and Equipment 70Note 21: Investment Property 73Note 22: Intangible Assets 73Note 23: Assets Held for Sale 73Note 24: Other Non Financial Assets 74Note 25: Deposits Held 75Note 26: Advances Received 76Note 27: Borrowings 76Note 28: Superannuation Liabilities 77Note 29: Other Employee Benefits 81Note 30: Payables 81Note 31: Other Liabilities 81Note 32: Reserves 83Note 33: Commitments 84Note 34: Contingent Assets and Liabilities 85Note 35: Cash Flow Reconciliation 90
6
2012-13 Treasurer’s Annual Financial Report
Contents
Note 36: Financial Instruments and Risk Management 91Note 37: Events Subsequent to Reporting Date 98Note 38: Remuneration of Auditors 98Note 39: Write-Offs, Postponements, Waivers, Ex Gratia Payments and Gifts 99
– General Government Sector Note 40: Details of Controlled Entities at Reporting Date 100Note 41: General Government Sector Budgetary Information 101Note 42: Supplementary Tables (Functional Information) 108Note 43: Elimination Table 112Note 44: Glossary 122
Additional Financial Information (Unaudited) 131Variations to Appropriations Authorised During the Year 135Summary Agency/Government Business Division Financial Information
Auditor-General’s Office 141Northern Territory Electoral Commission 142Ombudsman’s Office 143Department of the Chief Minister 144Department of the Legislative Assembly 145Northern Territory Police, Fire and Emergency Services 146Department of Corporate and Information Services 147NT Fleet 148Government Printing Office 149Data Centre Services 150Department of Transport 151Darwin Bus Service 152Darwin Port Corporation 153Department of Treasury and Finance 154Northern Territory Treasury Corporation 155Department of Business 156Department of the Attorney-General and Justice 157Office of the Commissioner for Public Employment 158Department of Correctional Services 159Department of Health 160Top End Hospital Network 161Central Australian Hospital Network 162Department of Education and Children’s Services 163Department of Housing 164NT Home Ownership 165Department of Lands, Planning and the Environment 166Land Development Corporation 167Department of Primary Industry and Fisheries 168Department of Mines and Energy 169Department of Land Resource Management 170Office of Children and Families 171Department of Regional Development and Women’s Policy 172Department of Local Government 173Aboriginal Areas Protection Authority 174Tourism NT 175Territory Discoveries 176Department of Sport and Recreation 177Parks and Wildlife Commission of the Northern Territory 178Territory Wildlife Parks 179Department of Arts and Museums 180Department of Infrastructure 181Construction Division 182
Uniform Presentation Framework Supplementary Tables 183General Government Sector Taxes 183General Government Sector Grant Revenue 183General Government Sector Grant Expense 184General Government Sector Dividend and Income Tax Equivalent Income 184General Government Sector Purchases of Non Financial Assets by Function 185Loan Council Allocation 185
7Ministerial Portfolio Arrangements
Ministerial Portfolio ArrangementsThis schedule of Ministerial Portfolio Arrangements details the ministerial responsibilities for individual areas of Government as at 30 June 2013 (drawn from the Administrative Arrangements Order of 20 March 2013).
Ministerial Portfolio Arrangements as at 30 June 2013
Minister Portfolio
The Hon. A. G. Giles, MLA Chief Minister
Minister for Police, Fire and Emergency Services
Minister for Corporate and Information Services
Minister for Trade
Minister for Economic Development (Major Projects)
Minister for Asian Engagement
Minister for Transport
The Hon. D. W. Tollner, MLA Treasurer
Minister for Business
Minister for Employment and Training
Minister for Defence Liaison and Defence Industry Support
Minister for Alcohol Policy
The Hon. J. W. Elferink, MLA Attorney-General and Minister for Justice
Minister for Public Employment
Minister for Correctional Services
Minister for Statehood
The Hon. R. J. Lambley, MLA Minister for Health
Minister for Alcohol Rehabilitation
The Hon. P. G. Chandler, MLA Minister for Education
Minister for Housing
Minister for Lands, Planning and the Environment
The Hon. W. R. Westra van Holthe, MLA Minister for Primary Industry and Fisheries
Minister for Mines and Energy
Minister for Land Resource Management
Minister for Essential Services
The Hon. A. Anderson, MLA Minister for Children and Families
Minister for Regional Development
Minister for Local Government
Minister for Women’s Policy
The Hon. M. E. Conlan, MLA Minister for Central Australia
Minister for Tourism and Major Events
Minister for Sport and Recreation
Minister for Racing
Minister for Parks and Wildlife
Minister for Arts and Museums
The Hon. P. D. Styles, MLA Minister for Infrastructure
Minister for Multicultural Affairs
Minister for Senior Territorians
Minister for Young Territorians
8
2012-13 Treasurer’s Annual Financial Report
Ministerial Portfolio Arrangements
Since the reporting date, amendments to the Administrative Arrangements Order were made. This schedule of Ministerial Portfolio Arrangements gazetted on 16 September 2013 details the ministerial responsibilities for individual areas of government.
Ministerial Portfolio Arrangements as at 16 September 2013
Minister Portfolio
The Hon. A. G. Giles, MLA Chief Minister
Minister for Northern Australia Development
Minister for Economic Development and Major Projects
Minister for Asian Engagement and Trade
Minister for Police, Fire and Emergency Services
Minister for Strategic Defence Liaison
The Hon. D. W. Tollner, MLA Treasurer
Minister for Business
Minister for Employment and Training
Minister for Local Government and Regions
Minister for Defence Industries and Community Support
Minister for Alcohol Policy
Minister for Corporate and Information Services
The Hon. J. W. Elferink, MLA Attorney-General and Minister for Justice
Minister for Public Employment
Minister for Children and Families
Minister for Correctional Services
The Hon. R. J. Lambley, MLA Minister for Health
Minister for Alcohol Rehabilitation
The Hon. P. G. Chandler, MLA Minister for Education
Minister for Lands, Planning and the Environment
The Hon. W. R. Westra van Holthe, MLA Minister for Primary Industry and Fisheries
Minister for Mines and Energy
Minister for Land Resource Management
Minister for Essential Services
The Hon. M. E. Conlan, MLA Minister for Central Australia
Minister for Housing
Minister for Tourism
Minister for Sport, Recreation and Racing
Minister for Arts and Museums
The Hon. P. D. Styles, MLA Minister for Transport
Minister for Infrastructure
Minister for Multicultural Affairs
Minister for Senior Territorians
Minister for Young Territorians
The Hon. B. N. Price, MLA Minister for Community Services
Minister for Women’s Policy
Minister for Parks and Wildlife
Minister for Statehood
9Overview
OverviewThe Treasurer’s Annual Financial Report (TAFR) presents the Territory’s financial results for 2012-13 as required by the Fiscal Integrity and Transparency Act.
The Territory’s 2012-13 outcome continues to be influenced by constrained revenues in the general government sector as well as increased borrowings by the Power and Water Corporation affecting the public non financial corporations sector. As a result, the final non financial public sector fiscal balance, Government’s key fiscal objective against which its fiscal policy is set and assessed, is a $516 million deficit. However, this is an improved outcome compared to budget projections and the 2011-12 outcome.
A summary of the key fiscal elements of the 2012-13 outcome include:
General Government Sector
• net operating deficit of $101 million.
Non Financial Public Sector
• net operating deficit of $30 million;
• capital spend of $923 million;
• fiscal balance deficit of $516 million; and
• net debt of $3132 million with a ratio of net debt to revenue of 58 per cent, an increase of 9 percentage points from 2011-12 as a result of the fiscal deficit position.
Table 1 sets out the key fiscal aggregates for the general government sector and non financial public sector compared to the 2011-12 outcome, the 2012-13 original Budget (May 2012), 2012-13 Mini Budget (December 2012) the 2012-13 final estimate (May 2013) and the 2012-13 outcome.
Table 1: Key Fiscal Aggregates
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Budget
$M $M $M $M $M $M
Net operating balance – GGS 175 - 163 - 75 - 88 - 101 62
Fiscal balance – NFPS - 662 - 767 - 772 - 682 - 516 251
Net debt – NFPS 2 664 3 581 3 400 3 278 3 132 - 449
Net debt to revenue – NFPS (%) 49 69 63 61 58 -11
Source: Department of Treasury and Finance
In absolute terms the Territory’s 2012-13 outcome is characterised by a fiscal deficit and rising debt position, however Table 1 highlights that compared to the original 2012-13 Budget there has been a significant improvement in all measures.
The general government operating balance was an improvement of $62 million when compared to the original budget and was largely influenced by:
• increased GST revenue of $88.7 million as a result of a higher Territory share of the national population following the 2011 Census;
• increased taxation revenue of $81.8 million, $28.7 million of which is attributable to increases in payroll tax collected as a result of employment and wages growth; an additional $35.6 million increase in stamp duties on financial and capital transactions, reflecting revised revenue measures combined with the recovery in the number of residential and commercial
10
2012-13 Treasurer’s Annual Financial Report
Overview
transactions; and $17 million as a result of increases in stamp duty collected on insurance and motor vehicle registration fees; and
• the revised timing of Commonwealth funded expenditure between years.
These increases were offset by:
• higher depreciation charge of $61.1 million, largely as a result of the completion of housing stock in remote areas under the Remote Indigenous Housing program; and
• additional net funding of $56.8 million provided for new and expanded initiatives.
The $516 million non financial public sector fiscal balance deficit is also better than projected in the original 2012-13 Budget. The $251 million improvement incorporates the flow on effect of the improved general government operating balance together with the following additional factors:
• improved operational performance of the Power and Water Corporation as a result of increased utility tariffs and efficiency measures being implemented; and
• lower levels of infrastructure spending through the prioritisation and realignment of spending both in general government as private sector investment increases and by the Power and Water Corporation.
While net debt and the net debt to revenue ratio for the non financial public sector is higher in absolute terms than in 2011-12, it is also an improvement when compared to the original 2012-13 Budget. The better than expected outcome combined with increased returns on investments predominantly account for the lower than expected level of net debt and better than projected net debt to revenue ratio.
11Overview
Operating Statement Table 2 sets out changes in the fiscal balance for 2012-13 for the non financial public sector since the May 2012 original budget.
Table 2: Variations to the Non Financial Public Sector Fiscal Balance since May 2012
2012-13
Accrual
$M
2012-13 BUDGET Fiscal Balance - 767.1REVENUERevenue – policyUtility tariff increases 32.0Motor Vehicle Registration Fees 5.2Increased stamp duty reflecting revised home owner assistance arrangements 9.7Other revenue measures 8.2Total revenue – policy 55.1Revenue – non policyTaxation 67.5Revised utility demand assumptions -14.5GST revenue 88.7New and expanded Commonwealth revenue 7.9Mining royalties - 8.7Income tax equivalents and dividends 2.6Agency own-source revenue 19.0Other revenue 29.6Total revenue – non policy 192.1TOTAL REVENUE 247.2OPERATING EXPENSESExpenses – policyNet new and expanded government initiatives 83.9Unutilised Treasurer’s Advance capacity - 27.1Total expenses – policy 56.8Expenses – non policyCommonwealth payments and transfers between years and to capital - 72.3Employee entitlements -1.8Interest - 5.1Depreciation 83.5Total expenses – non policy 4.3TOTAL OPERATING EXPENSES 61.1NET CAPITALNet capital – policyRevised capital program for Power and Water Corporation - 58.3Homestart Extra 47.5Total net capital – policy - 10.8Net capital – non policyAsset sales 20.3Land under finance leases 41.4Lower capital works expenditure - 32.4Depreciation - 83.5Total net capital – non policy - 54.2TOTAL NET CAPITAL - 65.0TOTAL EXPENSES INCLUDING NET CAPITAL - 3.9TOTAL VARIATION 251.12012-13 OUTCOME - 516.0
Source: Department of Treasury and Finance
12
2012-13 Treasurer’s Annual Financial Report
Overview
Non financial public sector operating revenue has increased from the May 2012 Budget by $247.2 million. The key policy and non-policy revenue variations during 2012-13 were:
• tariff increases for electricity, water and sewerage totalling $32 million;
• additional $5.2 million from increasing vehicle registration fees for light vehicles towards the average of the states;
• increased stamp duties of $9.7 million reflecting policy changes of re-targeting home assistance measures towards the construction of new homes with offsetting increased assistance in the First Home Owner Grant;
• $8.2 million for a range of increases in fees and charges across government within the context of bringing them closer to the average of the states;
• increased taxation revenue of $67.5 million, predominantly relating to payroll tax collections, as a result of employment and wages growth, particularly among the larger employers forming part of the Territory’s payroll tax base and a large one-off commercial transaction resulting in an additional $12 million in stamp duty;
• $14.5 million reduction in Power and Water Corporation’s revenue due to revised demand assumptions;
• increased GST revenue of $88.7 million as a result of a higher Territory share of the national population following the 2011 Census;
• increased tied Commonwealth funding of $7.9 million;
• a decrease in mining royalty income of $8.7 million compared with that anticipated in May 2012, as a result of lower profits due to exchange rates and lower commodity prices; and
• increase in agency own-source revenue to move fees and charges towards the average of the states.
Non financial public sector operating expenses have increased since the May 2012 Budget by $61.1 million.
The main policy-related expenditure variations are the result of election commitments, legacy items and new initiatives. Key variations include:
• $45.7 million to meet increased demand and cost pressures for health services;
• $11 million for enhanced cardiac outreach services and 400 additional elective surgeries per annum;
• $9 million for increases to school and sports vouchers;
• $24 million for out-of-home care services;
• $10.3 million to meet increased costs of police housing and overtime; and
• $14.2 million for operational funding related to the recovery and ongoing operation of the Asset Management System.
The increases arising from the main policy-related expenditure variations were largely funded by savings measures implemented across agencies, predominantly relating to a number of administrative efficiencies, program efficiencies and rationalisation and structural reforms.
In addition, Treasurer’s Advance was not fully utilised in 2012-13 which contributed $27.1 million to the improved fiscal deficit in 2012-13.
13Overview
The key non-policy expenses variations in 2012-13 were:
• Commonwealth payments and transfer between years and to capital of $72.3 million largely related to the timing of the delivery of Commonwealth-funded programs including Municipal and Essential Services job package, Remote Indigenous Housing Program and additional expenditure related to local government and community development;
• decrease in interest paid of $5.1 million mainly due to lower costs of borrowing and the revised timing of the Territory’s borrowing program; and
• an increase in depreciation of $83.5 million largely as a result of the completion of housing stock in remote areas under the Remote Indigenous Housing Program.
Net capital spending has reduced by $65 million, the main policy and non-policy variations to net capital spending include:
• $58.3 million reduction in capital expenditure by PWC reflecting better alignment of its capital expenditure with growth requirements;
• $47.5 million increase in capital payments related to the former Homestart Extra package;
• $20.3 million lower than expected sales of non financial assets due to revised timing of land sales in the greater Darwin region;
• Recognition of finance leases over Aboriginal land totalling $41.4 million, mainly relating to the Department of Housing and Indigenous Essential Services Pty Ltd, in accordance with accounting standards; and
• $32.4 million lower than budgeted purchases of non financial assets due to a reprioritisation and realignment in the timing of capital works projects across government.
Balance SheetTable 3 provides a more detailed summary of balance sheet measures for the non financial public sector and provides a comparison at various points in time.
Table 3: Non Financial Public Sector – Balance Sheet
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Outcome
$M $M $M $M $M $M
Total assets 16 037 16 111 16 520 16 611 17 443 1 406
Financial assets 2 111 1 525 1 723 1 843 2 608 497
Non financial assets 13 926 14 586 14 798 14 768 14 835 909
Total liabilities 9 030 8 394 9 408 9 322 9 575 545
Net worth 7 008 7 717 7 113 7 289 7 868 861
Net debt 2 664 3 581 3 400 3 278 3 132 468
Net debt to revenue (%) 49 69 63 61 58 9
Source: Department of Treasury and Finance
The increase in total assets since 2011-12 of $1406 million is mainly due to new asset acquisitions and an upward revaluation of capital stock including rental properties and buildings, cultural assets and government crown land, combined with additional remote housing properties being constructed. In addition financial assets have increased predominantly as a result of higher returns on investments, mainly related to the Conditions of Service Reserve together with the prefunding of a portion of the Territory’s 2013-14 borrowing program.
14
2012-13 Treasurer’s Annual Financial Report
Overview
Total liabilities have increased by $545 million since 2011-12, largely as a result of the additional borrowing requirement in 2012-13 and the prefunding of a portion of the 2013-14 borrowing program, offset by lower superannuation liabilities of $302 million.
Included in total liabilities is the Territory’s superannuation liability. As discussed in previous reports, accounting standards require governments to value their superannuation liability using the 10-year bond rate at the time of reporting. In June 2012, the bond rate was 3.1 per cent, but had increased to 3.8 per cent at 30 June 2013 which mainly accounts for the lower liability of $3.495 billion in 2012-13 compared to the $3.797 billion recorded in 2011-12.
Figure 1 shows the Territory’s superannuation liabilities and payments profile based on 2012-13 actuarial updates, utilising the Government’s long-term bond rate assumption of 5.7 per cent.
Figure 1: Territory Superannuation Liabilities and Emerging Costs (2014-2054)
Source: Department of Treasury and Finance
The Territory cannot influence the level of its future superannuation liabilities. The schemes to which the liabilities relate are closed and any variation to the liability is a result of factors outside the Territory’s control such as longevity of members or long-term bond rates, which affect valuation.
Overall the net worth of the Territory has improved by $861 million compared to the previous year.
Non financial public sector net debt comprises both the net debt of the general government and public non financial corporation (PNFC) sectors. Net debt for the non financial public sector is $3132 million, an increase of $468 million from the 2011-12 outcome predominantly as a result of the flow-on effect of the 2012-13 fiscal deficit position. When measured as a ratio to revenue, net debt is 58 per cent in 2012-13, an increase of 9 percentage points from the 49 per cent recorded in 2011-12.
0
500
1000
1500
2000
2500
3000
0
50
100
150
200
250
300
2014 2019 2024 2029 2034 2039 2044 2049 2054
Year Ended 30 June
Emerging costs Superannuation liabilities
Emerging costs ($M) Superannuation liabilities ($M)
15Overview
Fiscal StrategyThe fiscal strategy is an important element in setting out and measuring adherence to a Government’s fiscal objectives. The Territory’s fiscal strategy was updated in the 2013-14 Budget and aims to return the Territory Budget to a sustainable financial position by 2017-18. The strategy was developed against a background of a deteriorating fiscal position evidenced by the emergence of operating deficits, increased annual borrowing requirements and rapidly rising debt. The analysis in this chapter is an assessment of the 2012-13 outcome against the government’s fiscal strategy medium term objectives and key fiscal indicators as set out in the 2013-14 Budget.
Key Fiscal target: by 2017-18 the fiscal imbalance in the Territory’s non financial public sector is to be eliminated
Table 4: Non Financial Public Sector – Fiscal Balance
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Budget
$M $M $M $M $M $M
Fiscal balance - 662 - 767 - 772 - 682 - 516 251
Source: Department of Treasury and Finance
The Government has adopted as its immediate fiscal objective the stabilising of the Territory’s debt burden by targeting the elimination of the overall fiscal deficit in the non financial public sector by 2017-18.
Table 4 highlights an improvement of $251 million against the $767 million fiscal deficit projection in the original 2012-13 Budget. The improvement since the May 2012 Budget is largely the result of higher revenues from both the GST, as a result of a higher share of the national population, and taxation revenue. In addition, the revised timing of Commonwealth tied funding and associated expenditure between years offset by additional funding provided for new or expanded initiatives also affected the outcome. The result was further influenced by a reduction in net capital payments during the year.
Despite the improvement in 2012-13, the 2016-17 fiscal balance is still projected to be a $176 million deficit, the final year of the current forward estimates. Elimination of the deficit by the end of 2017-18 will require an improved revenue outlook and/or additional efficiency measures.
Associated fiscal outcome: by 2016-17, the Territory’s general government sector is achieving a net operating surplus
Table 5: General Government Sector – Net Operating Balance
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Budget
$M $M $M $M $M $M
Net operating balance 175 - 163 - 75 - 88 - 101 62
Source: Department of Treasury and Finance
The net operating balance deficit of $101 million represents an improvement of $62 million since the original 2012-13 Budget. The improvement since the May 2012 Budget is mainly driven by the same factors influencing the fiscal balance outcome with the exception of the reduced capital spending.
The general government net operating balance is still projected to be in a modest deficit of $47 million by 2016-17. As with the projected fiscal balance deficit for 2016-17 in the absence of any additional revenues, further budget improvement measures will be required.
16
2012-13 Treasurer’s Annual Financial Report
Overview
Associated fiscal outcome: by 2016-17, taxation effort in the Territory’s general government sector is more on par with the average effort of the states
Figure 2: Territory Taxation Revenue Raising Effort
Source: 2002-03 to 2006-07 from CGC 2009 update, 2007-08 from CGC 2012 update, 2008-09 to 2011-12 from CGC 2013 update
Figure 2 above shows the Territory’s taxation revenue raising effort expressed as a percentage of the Australian average up to 2011-12, being the latest year assessed by the Commonwealth Grants Commission (CGC). The policy changes of re-targeting home assistance stamp duty measures together with increases in motor vehicle registration fees implemented in 2012-13 means that future CGC assessments of the Territory’s taxation effort should be higher, reflecting an increase in effort that is closer to being on par with the average of the states.
This measure for 2012-13 will not be known until amended by the CGC in their February 2014 update.
Associated fiscal outcome: by 2016-17, the Territory’s government owned corporation is moving towards commercial rates of return on capital employed
Table 6: Pre Tax Annual Rate of Return for the Power and Water Corporation
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Budget
$M $M $M $M $M $M
Earnings before income tax 12 28 91 23 54 27
Average total assets 2835 3 138 3 047 3 077 3 047 - 91
Pre tax annual rate of return (%) 0.43 0.88 2.98 0.75 1.79 0.91
Source: Department of Treasury and Finance
As Table 6 shows, the increases in electricity, water and sewerage tariffs implemented from 1 January 2013 combined with reduced operating and capital costs by PWC has resulted in an improved return on assets when compared to the original 2012-13 Budget. The final outcome of 1.79 per cent represents a 0.91 percentage point improvement on the May 2012 Budget with improving estimates contained in PWC’s 2013-14 Statement of Corporate Intent projected over forward years. However, further improvements are still required to achieve a commercial rate of return of around 6 per cent by 2016-17.
70
75
80
85
90
95
100
105
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
%
Year ended June
17Overview
Associated fiscal outcome: by 2020, the Territory’s non financial public sector net debt as a percentage of revenue is returning towards 60 per cent
Table 7: Non Financial Public Sector – Net Debt to Revenue
2011-12
Outcome
2012-13
Budget
2012-13
Mini Budget
2012-13
Estimate
2012-13
Outcome
Variation on
Budget
% % % % % %
Net debt to revenue 49 69 63 61 58 - 11
Source: Department of Treasury and Finance
As shown in Table 7 the net debt to revenue ratio for the non financial public sector is currently 58 per cent, an improvement of 11 percentage points from that projected in the original 2012-13 Budget. However, when compared to the 2011-12 result, net debt has worsened by 9 percentage points. The increase in the net debt to revenue ratio is the result of increased borrowings related to the 2012-13 fiscal deficit position.
The net debt to revenue ratio for the non financial public sector is projected to continue to worsen over the forward estimates as a result of the estimated fiscal balance deficits in the May 2013 Budget. By 2016-17, the net debt to revenue ratio is expected to be at 86 per cent.
ConclusionThe Territory’s 2012-13 financial result represents a significant improvement from that projected at the time of the May 2012 Budget. The fiscal deficit improvement of $251 million is reflective of increased revenues, combined with the revised timing of payments between years and lower than anticipated capital spending. Notwithstanding, continuing fiscal deficits has contributed to an increase in the Territory’s net debt position, which combined with projected deficits over the short-term, will mean the achievement of future fiscal targets will be challenging.
Treasurer’s Annual Financial Statement
(Audited)
20
21Financial Statements
22
2012-13 Treasurer’s Annual Financial Report
Financial Statements
General Government Sector
Comprehensive Operating StatementNotes 2012-13 2011-12
$000 $000
REVENUE
Taxation revenue 4 490 964 402 917
Current grants 5 3 608 405 3 505 483
Capital grants 6 170 760 480 006
Sales of goods and services 7 253 342 213 609
Interest income 57 612 67 810
Dividend and income tax equivalent income 8 40 994 41 254
Other 9 166 465 197 229
TOTAL REVENUE 4 788 542 4 908 308
less EXPENSES
Employee benefits expense 1 894 344 1 798 934
Superannuation expenses
Superannuation interest cost 113 686 140 989
Other superannuation expenses 207 486 181 147
Depreciation and amortisation 287 230 232 422
Other operating expenses 10 1 132 206 1 181 611
Interest expenses 184 095 166 249
Other property expenses 1 701 2 039
Current grants 11 767 884 800 451
Capital grants 12 133 759 78 152
Subsidies and personal benefit payments 13 167 275 150 833
TOTAL EXPENSES 4 889 666 4 732 828
equals NET OPERATING BALANCE - 101 124 175 480
plus Other economic flows – included in operating result 2 75 125 - 1 032 394
equals OPERATING RESULT - 25 999 - 856 914
plus Other economic flows – other comprehensive income 2 886 635 302 511
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
860 636 - 554 403
NET OPERATING BALANCE - 101 124 175 480
less Net acquisition of non financial assets
Purchases of non financial assets 633 546 942 786
Sales of non financial assets - 58 075 - 61 942
less Depreciation 20, 22, 24 287 230 232 422
plus Change in inventories 1 439 - 920
plus Other movements in non financial assets - 33 948 - 4 953
equals Total net acquisition of non financial assets 255 733 642 549
equals FISCAL BALANCE - 356 856 - 467 069
23Financial Statements
General Government Sector
Balance SheetNotes 2012-13 2011-12
$000 $000
ASSETS
Financial assets
Cash and deposits 14 413 584 377 948
Advances paid 15 230 602 168 717
Investments, loans and placements 16 1 269 763 1 035 858
Receivables 17 153 382 211 334
Equity
Investments in other public sector entities 2 849 755 2 509 554
Investments – other 18 100 100
Other financial assets
Total financial assets 4 917 186 4 303 511
Non financial assets
Inventories 19 10 714 9 275
Property, plant and equipment 20 10 817 006 10 418 163
Investment property 21 92 892 55 607
Intangible assets 22 1 194 1 796
Assets held for sale 23 20 979 11 073
Other non financial assets 24 122 396 64 636
Total non financial assets 11 065 182 10 560 549
TOTAL ASSETS 15 982 368 14 864 060
LIABILITIES
Deposits held 25 664 956 804 178
Advances received 26 378 272 268 583
Borrowing 27 2 700 208 2 142 534
Superannuation 28 3 495 133 3 797 653
Other employee benefits 29 562 201 544 954
Payables 30 139 413 146 456
Other liabilities 31 173 991 152 145
TOTAL LIABILITIES 8 114 175 7 856 503
NET ASSETS/(LIABILITIES) 7 868 193 7 007 557
Contributed equity
Accumulated surplus/(deficit) 584 582 610 205
Reserves 32 7 283 611 6 397 352
NET WORTH 7 868 193 7 007 557
NET FINANCIAL WORTH1 - 3 196 989 - 3 552 992
NET FINANCIAL LIABILITIES2 6 046 743 6 062 545
NET DEBT3 1 829 486 1 632 771
1 Net financial worth equals total financial assets minus total liabilities.2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
24
2012-13 Treasurer’s Annual Financial Report
Financial Statements
General Government Sector
Statement of Changes in Equity
NotesEquity at
1 JulyComprehensive
Result
Transactions with Owners in their capacity
as OwnersEquity at 30 June
$000 $000 $000 $0002012-13Accumulated funds 610 205 - 25 999 584 206Changes in accounting policy Correction of prior period errors Transfers from reserves 1 848 1 848Dividends paid/payable Other movements directly to equity - 1 472 - 1 472Total accumulated funds 610 205 - 25 623 584 582Reserves 32Asset revaluation surplus 4 172 948 546 657 4 719 605Asset realisation surplus 335 482 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus 1 887 557 340 201 2 227 758Other reserves 1 365 - 599 766Total reserves 6 397 352 886 259 7 283 611Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 007 557 860 636 7 868 1932011-12Accumulated funds 1 454 410 - 856 914 597 496Changes in accounting policy Correction of prior period errors Transfers from reserves 9 055 9 055Dividends paid/payable Other movements directly to equity 3 654 3 654Total accumulated funds 1 454 410 - 844 205 610 205Reserves 32Asset revaluation surplus 3 878 222 294 726 4 172 948Asset realisation surplus 332 868 2 615 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus 1 894 187 - 6 630 1 887 557Other reserves 2 272 - 908 1 365Total reserves 6 107 549 289 803 6 397 352Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 561 959 - 554 403 7 007 557
25Financial Statements
General Government Sector
Cash Flow StatementNotes 2012-13 2011-12
$000 $000
Cash receipts from operating activities
Taxes received 487 753 399 528
Receipts from sales of goods and services 303 295 271 774
Grants and subsidies received 3 782 829 3 988 838
Interest receipts 57 975 68 238
Dividends and income tax equivalents 41 522 25 467
Other receipts 352 616 430 650
Total operating receipts 5 025 990 5 184 495
Cash payments for operating activities
Payments for employees - 2 153 477 - 1 998 379
Payment for goods and services - 1 359 459 - 1 478 603
Grants and subsidies paid - 1 010 150 - 1 015 620
Interest paid - 184 417 - 165 205
Other payments - 14 267 - 11 499
Total operating payments - 4 721 770 - 4 669 307
NET CASH FLOWS FROM OPERATING ACTIVITIES 35 304 220 515 188
Cash flows from investments in non financial assets
Sales of non financial assets 54 847 71 942
Purchases of non financial assets - 585 953 - 993 514
Net cash flows from investments in non financial assets - 531 106 - 921 571
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 226 886 - 406 383
Net cash flows from investments in financial assets for policy purposes1 - 61 841 - 49 612
Net cash flows from investments in financial assets for liquidity purposes - 171 647 - 200 636
NET CASH FLOWS FROM INVESTING ACTIVITIES - 764 593 - 1 171 819
Net cash flows from financing activities
Advances received (net) 109 689 22 159
Borrowing (net) 525 542 321 281
Deposits received (net) - 139 222 504 873
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES 496 009 848 314
NET INCREASE/DECREASE IN CASH HELD 35 636 191 683
Net cash flows from operating activities 304 220 515 188
Net cash flows from investments in non financial assets - 531 106 - 921 571
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 406 383
Future infrastructure and superannuation contributions/earnings2 - 20 916 - 18 152
UNDERLYING SURPLUS (+)/DEFICIT (-) - 247 802 - 424 535
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 406 383
Acquisitions under finance leases and similar arrangements - 32 132
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements - 259 018 - 406 383
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
26
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Public Non Financial Corporation Sector
Comprehensive Operating Statement2012-13 2011-12
$000 $000
REVENUE
Current grants 133 434 124 346
Capital grants 36 404 22 962
Sales of goods and services 653 225 552 068
Interest income 5 072 6 716
Other 119 242 61 457
TOTAL REVENUE 947 377 767 549
less EXPENSES
Employee benefits expense 98 099 99 769
Superannuation expenses 13 417 14 139
Depreciation and amortisation 164 249 145 969
Other operating expenses 500 923 457 348
Interest expenses 84 208 79 498
Other property expenses - 1 442 4 671
Current grants 91
Capital grants 181
Subsidies and personal benefit payments 17 709 15 366
TOTAL EXPENSES 877 163 817 033
equals NET OPERATING BALANCE 70 214 - 49 484
plus Other economic flows – included in operating result 4 514 23 196
equals OPERATING RESULT 74 728 - 26 288
plus Other economic flows – other comprehensive income 167 025 15 151
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
241 753 - 11 137
NET OPERATING BALANCE 70 214 - 49 484
less Net acquisition of non financial assets
Purchases of non financial assets 289 006 254 387
Sales of non financial assets - 107 - 2 061
less Depreciation 164 249 145 969
plus Change in inventories 12 867 11 806
plus Other movements in non financial assets 92 699 23 059
equals Total net acquisition of non financial assets 230 216 141 222
equals FISCAL BALANCE - 160 001 - 190 706
27Financial Statements
Public Non Financial Corporation Sector
Balance Sheet 2012-13 2011-12
$000 $000
ASSETS
Financial assets
Cash and deposits 100 616 227 568
Advances paid
Investments, loans and placements
Receivables 148 673 87 015
Equity 3 3
Other financial assets
Total financial assets 249 292 314 585
Non financial assets
Inventories 109 766 96 899
Property, plant and equipment 3 539 970 3 201 612
Investment property 49 485 40 745
Intangible assets 70 205 25 886
Assets held for sale
Other non financial assets 70 71
Total non financial assets 3 769 496 3 365 214
TOTAL ASSETS 4 018 789 3 679 799
LIABILITIES
Deposits held 10 103 333
Advances received
Borrowing 1 392 917 1 258 337
Superannuation
Other employee benefits 50 556 47 483
Payables 71 352 78 818
Other liabilities 41 399 84 984
TOTAL LIABILITIES 1 566 327 1 469 954
NET ASSETS/(LIABILITIES) 2 452 462 2 209 844
Contributed equity 563 942 563 942
Accumulated surplus/(deficit) 721 970 644 816
Reserves 1 166 549 1 001 086
TOTAL EQUITY 2 452 461 2 209 844
NET FINANCIAL WORTH1 - 1 317 035 - 1 155 369
NET DEBT2 1 302 404 1 031 102
1 Net financial worth equals total financial assets minus total liabilities.2 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
28
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Public Non Financial Corporation Sector
Statement of Changes in Equity
Equity at 1 July
Comprehensive Result
Transactions with Owners in their capacity
as OwnersEquity at 30 June
$000 $000 $000 $0002012-13Accumulated funds 644 816 74 728 719 544Changes in accounting policy Correction of prior period errors Transfers from reserves 543 543Dividends paid/payable 864 864Other movements directly to equity 1 019 1 019Total accumulated funds 644 816 76 290 864 721 970ReservesAsset revaluation surplus 1 001 086 165 463 1 166 549Asset realisation surplus Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves Total reserves 1 001 086 165 463 1 166 549Capital – transactions with owners 563 942 563 942Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth - capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners 563 942 563 942TOTAL EQUITY AT END OF FINANCIAL YEAR 2 209 844 241 753 864 2 452 4612011-12Accumulated funds 667 919 - 26 288 641 631Changes in accounting policy Correction of prior period errors Transfers from reserves 7 643 7 643Dividends paid/payable - 4 045 - 4 045Other movements directly to equity - 413 - 413Total accumulated funds 667 919 - 19 058 - 4 045 644 816ReservesAsset revaluation surplus 993 165 7 921 1 001 086Asset realisation surplus Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves Total reserves 993 165 7 921 1 001 086Capital – transactions with owners 539 190 539 190Equity injections
Capital appropriation Equity transfers in 14 800 14 800Other equity injections 45 886 45 886Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals 25 000 25 000Equity transfers out 10 934 10 934
Total capital – transactions with owners 539 190 24 752 563 942TOTAL EQUITY AT END OF FINANCIAL YEAR 2 200 274 - 11 137 20 707 2 209 844
29Financial Statements
Public Non Financial Corporation Sector
Cash Flow Statement2012-13 2011-12
$000 $000
Cash receipts from operating activities
Receipts from sales of goods and services 541 220 599 787
Grants and subsidies received 169 637 147 121
Interest receipts 5 367 6 878
Other receipts 41 819 31 700
Total operating receipts 758 043 785 486
Cash payments for operating activities
Income tax equivalents paid - 3 318 - 430
Payments for employees - 117 386 - 117 400
Payment for goods and services - 504 354 - 454 071
Grants and subsidies paid - 17 709 - 15 508
Interest paid - 84 512 - 79 168
Other payments - 2 278 - 1 237
Total operating payments - 729 557 - 667 813
NET CASH FLOWS FROM OPERATING ACTIVITIES 28 486 117 672
Cash flows from investments in non financial assets
Sales of non financial assets 107 2 061
Purchases of non financial assets - 289 006 - 255 692
Net cash flows from investments in non financial assets - 288 899 - 253 632
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 260 413 - 135 959
Net cash flows from investments in financial assets for policy purposes1 368
Net cash flows from investments in financial assets for liquidity purposes
NET CASH FLOWS FROM INVESTING ACTIVITIES - 288 899 - 253 263
Net cash flows from financing activities
Advances received (net)
Borrowing (net) 125 271 135 635
Deposits received (net) 9 770 - 7 222
Dividends paid - 1 580 - 262
Other financing (net) 20 886
NET CASH FLOWS FROM FINANCING ACTIVITIES 133 461 149 037
NET INCREASE/DECREASE IN CASH HELD - 126 952 13 446
Net cash flows from operating activities 28 486 117 672
Net cash flows from investments in non financial assets - 288 899 - 253 632
Dividends paid - 1 580 - 262
CASH SURPLUS (+)/DEFICIT (-) - 261 993 - 136 221
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 261 993 - 136 221
Acquisitions under finance leases and similar arrangements - 9 309
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements - 271 302 - 136 221
1 Includes equity acquisitions, disposals and privatisations (net).
30
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Non Financial Public Sector
Comprehensive Operating Statement2012-13 2011-12
$000 $000
REVENUE
Taxation revenue 482 867 395 186
Current grants 3 609 089 3 510 337
Capital grants 171 003 480 035
Sales of goods and services 825 981 697 823
Interest income 57 635 67 866
Dividend and income tax equivalent income 43 753 32 588
Other 221 361 251 854
TOTAL REVENUE 5 411 689 5 435 689
less EXPENSES
Employee benefits expense 1 992 433 1 898 665
Superannuation expenses
Superannuation interest cost 113 686 140 989
Other superannuation expenses 215 568 189 874
Depreciation and amortisation 451 479 378 391
Other operating expenses 1 543 705 1 562 058
Interest expenses 263 254 239 087
Other property expenses 1 694 2 025
Current grants 713 258 757 676
Capital grants 39 798 55 401
Subsidies and personal benefit payments 106 860 89 573
TOTAL EXPENSES 5 441 735 5 313 738
equals NET OPERATING BALANCE - 30 045 121 951
plus Other economic flows – included in operating result 79 638 - 1 009 198
equals OPERATING RESULT 49 593 - 887 247
plus Other economic flows – other comprehensive income 811 043 332 844
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
860 636 - 554 403
NET OPERATING BALANCE - 30 045 121 951
less Net acquisition of non financial assets
Purchases of non financial assets 922 552 1 197 174
Sales of non financial assets - 58 182 - 64 003
less Depreciation 451 479 378 391
plus Change in inventories 14 306 10 886
plus Other movements in non financial assets 58 751 18 105
equals Total net acquisition of non financial assets 485 949 783 771
equals FISCAL BALANCE - 515 994 - 661 820
31Financial Statements
Non Financial Public Sector
Balance Sheet 2012-13 2011-12
$000 $000
ASSETS
Financial assets
Cash and deposits 422 566 377 978
Advances paid 230 602 168 717
Investments, loans and placements 1 269 763 1 035 858
Receivables 288 155 229 019
Equity
Investments in other public sector entities 397 293 299 709
Investments – other 103 103
Other financial assets
Total financial assets 2 608 481 2 111 384
Non financial assets
Inventories 120 480 106 174
Property, plant and equipment 14 356 976 13 619 775
Investment property 142 378 96 352
Intangible assets 71 399 27 682
Assets held for sale 20 979 11 073
Other non financial assets 122 467 64 707
Total non financial assets 14 834 678 13 925 762
TOTAL ASSETS 17 443 159 16 037 146
LIABILITIES
Deposits held 583 424 576 973
Advances received 378 272 268 583
Borrowing 4 093 125 3 400 871
Superannuation 3 495 133 3 797 653
Other employee benefits 612 757 592 437
Payables 198 941 215 740
Other liabilities 213 314 177 333
TOTAL LIABILITIES 9 574 966 9 029 589
NET ASSETS/(LIABILITIES) 7 868 193 7 007 557
Contributed equity
Accumulated surplus/(deficit) 1 306 552 1 255 021
Reserves 6 561 641 5 752 536
NET WORTH 7 868 193 7 007 557
NET FINANCIAL WORTH1 - 6 966 485 - 6 918 205
NET FINANCIAL LIABILITIES2 7 363 778 7 217 914
NET DEBT3 3 131 890 2 663 873
1 Net financial worth equals total financial assets minus total liabilities.2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities. 3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
32
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Non Financial Public Sector
Statement of Changes in Equity
Equity at 1 July
Comprehensive Result
Transactions with Owners in their capacity
as OwnersEquity at 30 June
$000 $000 $000 $0002012-13Accumulated funds 1 255 021 49 593 1 304 614Changes in accounting policy Correction of prior period errors Transfers from reserves 2 391 2 391Dividends paid/payable Other movements directly to equity - 453 - 453Total accumulated funds 1 255 021 51 531 1 306 552ReservesAsset revaluation surplus 5 174 034 712 120 5 886 154Asset realisation surplus 335 482 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus 241 655 97 584 339 239Other reserves 1 365 - 599 766Total reserves 5 752 536 809 105 6 561 641Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 007 557 860 636 7 868 1932011-12Accumulated funds 2 122 328 - 887 247 1 235 082Changes in accounting policy Correction of prior period errors Transfers from reserves 16 697 16 697Dividends paid/payable Other movements directly to equity 3 242 3 242Total accumulated funds 2 122 328 - 867 308 1 255 021ReservesAsset revaluation surplus 4 871 387 302 647 5 174 034Asset realisation surplus 332 868 2 615 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus 233 103 8 551 241 655Other reserves 2 272 - 908 1 365Total reserves 5 439 631 312 906 5 752 536Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 561 959 - 554 403 7 007 557
33Financial Statements
Non Financial Public Sector
Cash Flow Statement2012-13 2011-12
$000 $000
Cash receipts from operating activities
Taxes received 479 632 391 480
Receipts from sales of goods and services 816 578 753 480
Grants and subsidies received 3 783 555 3 993 535
Interest receipts 57 998 68 293
Dividends and income tax equivalents 36 475 24 980
Other receipts 393 359 461 004
Total operating receipts 5 567 597 5 692 772
Cash payments for operating activities
Payments for employees - 2 261 884 - 2 107 112
Payment for goods and services - 1 785 775 - 1 864 085
Grants and subsidies paid - 858 949 - 888 704
Interest paid - 263 585 - 237 551
Other payments - 16 278 - 12 721
Total operating payments - 5 186 470 - 5 110 173
NET CASH FLOWS FROM OPERATING ACTIVITIES 381 127 582 599
Cash flows from investments in non financial assets
Sales of non financial assets 54 954 74 003
Purchases of non financial assets - 924 959 - 1 199 206
Net cash flows from investments in non financial assets - 870 005 - 1 125 203
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 488 879 - 542 604
Net cash flows from investments in financial assets for policy purposes1 - 61 841 - 28 358
Net cash flows from investments in financial assets for liquidity purposes - 171 647 - 200 636
NET CASH FLOWS FROM INVESTING ACTIVITIES - 1 103 492 - 1 354 196
Net cash flows from financing activities
Advances received (net) 109 689 22 159
Borrowing (net) 650 813 456 916
Deposits received (net) 6 451 483 668
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES 766 953 962 743
NET INCREASE/DECREASE IN CASH HELD 44 588 191 145
Net cash flows from operating activities 381 127 582 599
Net cash flows from investments in non financial assets - 870 005 - 1 125 203
CASH SURPLUS (+)/DEFICIT (-) - 488 879 - 542 604
Future infrastructure and superannuation contributions/earnings2 - 20 916 - 18 152
UNDERLYING SURPLUS (+)/DEFICIT (-) - 509 795 - 560 756
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 488 879 - 542 604
Acquisitions under finance leases and similar arrangements - 41 441
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements - 530 320 - 542 604
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
34
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Public Financial Corporation Sector
Comprehensive Operating Statement2012-13 2011-12
$000 $000
REVENUE
Current grants
Capital grants
Sales of goods and services 215 288 223 070
Interest income 304 910 285 997
Other 3 817 4 248
TOTAL REVENUE 524 014 513 315
less EXPENSES
Employee benefits expense 23 831 22 355
Superannuation expenses 2 501 2 357
Depreciation and amortisation 1 943 2 142
Other operating expenses 171 034 173 527
Interest expenses 245 063 230 723
Other property expenses 19 769 14 247
Current grants 3 864 3 296
Capital grants
Subsidies and personal benefit payments
TOTAL EXPENSES 468 006 448 647
equals NET OPERATING BALANCE 56 009 64 668
plus Other economic flows – included in operating result 66 407 - 36 114
equals OPERATING RESULT 122 415 28 555
plus Other economic flows – other comprehensive income 1 831 945
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
124 247 29 500
NET OPERATING BALANCE 56 009 64 668
less Net acquisition of non financial assets
Purchases of non financial assets 762 1 768
Sales of non financial assets - 52 - 96
less Depreciation 1 943 2 142
plus Change in inventories
plus Other movements in non financial assets
equals Total net acquisition of non financial assets - 1 233 - 470
equals FISCAL BALANCE 57 242 65 139
35Financial Statements
Public Financial Corporation Sector
Balance Sheet2012-13 2011-12
$000 $000
ASSETS
Financial assets
Cash and deposits 640 739 670 085
Advances paid 85 025 85 025
Investments, loans and placements 5 428 596 4 564 503
Receivables 162 614 169 687
Equity
Other financial assets
Total financial assets 6 316 974 5 489 299
Non financial assets
Inventories
Property, plant and equipment 47 827 46 353
Investment property
Intangible assets 839 1 723
Assets held for sale
Other non financial assets
Total non financial assets 48 666 48 076
TOTAL ASSETS 6 365 640 5 537 375
LIABILITIES
Deposits held 477 136 502 961
Advances received 246 993 253 068
Borrowing 4 575 500 3 794 434
Superannuation
Other employee benefits 5 325 4 990
Payables 92 286 82 683
Other liabilities 571 106 599 530
TOTAL LIABILITIES 5 968 347 5 237 666
NET ASSETS/(LIABILITIES) 397 293 299 709
Contributed equity 58 054 58 054
Accumulated surplus/(deficit) 306 089 218 312
Reserves 33 150 23 343
TOTAL EQUITY 397 293 299 709
NET FINANCIAL WORTH1 348 627 251 633
NET DEBT2 - 854 730 - 769 150
1 Net financial worth equals total financial assets minus total liabilities.2 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
36
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Public Financial Corporation Sector
Statement of Changes in Equity
Equity at 1 July
Comprehensive Result
Transactions with Owners in their capacity
as OwnersEquity at 30 June
$000 $000 $000 $0002012-13Accumulated funds 218 312 122 415 340 727Changes in accounting policy Correction of prior period errors Transfers from reserves - 8 010 - 8 010Dividends paid/payable - 26 663 - 26 663Other movements directly to equity 34 34Total accumulated funds 218 312 114 440 - 26 663 306 089ReservesAsset revaluation surplus 23 343 - 5 505 17 838Asset realisation surplus Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves 15 313 15 313Total reserves 23 343 9 807 33 150Capital – transactions with owners 58 054 58 054Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners 58 054 58 054TOTAL EQUITY AT END OF FINANCIAL YEAR 299 709 124 247 - 26 663 397 2932011-12Accumulated funds 210 654 28 555 239 209Changes in accounting policy Correction of prior period errors Transfers from reserves Dividends paid/payable - 20 948 - 20 948Other movements directly to equity 52 52Total accumulated funds 210 654 28 606 - 20 948 218 312ReservesAsset revaluation surplus 22 449 894 23 343Asset realisation surplus Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves Total reserves 22 449 894 23 343Capital – transactions with owners 58 054 58 054Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners 58 054 58 054TOTAL EQUITY AT END OF FINANCIAL YEAR 291 158 29 500 - 20 948 299 709
37Financial Statements
Public Financial Corporation Sector
Cash Flow Statement 2012-13 2011-12
$000 $000
Cash receipts from operating activities
Receipts from sales of goods and services 215 588 218 840
Grants and subsidies received
Interest receipts 304 325 283 940
Other receipts 9 793 8 659
Total operating receipts 529 705 511 439
Cash payments for operating activities
Income tax equivalents paid - 12 496 - 8 562
Payments for employees - 27 365 - 26 066
Payment for goods and services - 164 497 - 174 765
Grants and subsidies paid - 3 864 - 3 296
Interest paid - 242 073 - 223 411
Other payments - 2 719 - 2 641
Total operating payments - 453 014 - 438 741
NET CASH FLOWS FROM OPERATING ACTIVITIES 76 691 72 698
Cash flows from investments in non financial assets
Sales of non financial assets 52 96
Purchases of non financial assets - 762 - 1 768
Net cash flows from investments in non financial assets - 710 - 1 672
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
75 981 71 027
Net cash flows from investments in financial assets for policy purposes1
Net cash flows from investments in financial assets for liquidity purposes - 835 698 - 504 421
NET CASH FLOWS FROM INVESTING ACTIVITIES - 836 408 - 506 093
Net cash flows from financing activities
Advances received (net) - 6 075 - 5 495
Borrowing (net) 786 220 961 331
Deposits received (net) - 25 825 4 487
Dividends paid - 23 948 - 16 458
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES 730 372 943 865
NET INCREASE/DECREASE IN CASH HELD - 29 345 510 470
Net cash flows from operating activities 76 691 72 698
Net cash flows from investments in non financial assets - 710 - 1 672
Distributions paid - 23 948 - 16 458
CASH SURPLUS (+)/DEFICIT (-) 52 033 54 569
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) 52 033 54 569
Acquisitions under finance leases and similar arrangements
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements 52 033 54 569
1 Includes equity acquisitions, disposals and privatisations (net).
38
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Total Public Sector
Comprehensive Operating StatementNotes 2012-13 2011-12
$000 $000
REVENUE
Taxation revenue 4 481 497 393 870
Current grants 5 3 608 839 3 510 337
Capital grants 6 171 003 480 035
Sales of goods and services 7 1 028 936 911 473
Interest income 104 436 121 023
Dividend and income tax equivalent income 8
Other 9 222 396 253 335
TOTAL REVENUE 5 617 108 5 670 074
less EXPENSES
Employee benefits expense 2 014 954 1 919 929
Superannuation expenses
Superannuation interest cost 113 686 140 989
Other superannuation expenses 218 025 192 172
Depreciation and amortisation 453 422 380 533
Other operating expenses 10 1 699 568 1 723 200
Interest expenses 250 209 236 969
Other property expenses 4 414 4 665
Current grants 11 716 871 760 972
Capital grants 12 39 798 55 401
Subsidies and personal benefit payments 13 106 860 89 573
TOTAL EXPENSES 5 617 807 5 504 404
equals NET OPERATING BALANCE - 699 165 671
plus Other economic flows – included in operating result 2 146 045 - 1 045 311
equals OPERATING RESULT 145 346 - 879 641
plus Other economic flows – other comprehensive income 2 715 290 325 237
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
860 636 - 554 403
NET OPERATING BALANCE - 699 165 671
less Net acquisition of non financial assets
Purchases of non financial assets 923 314 1 198 942
Sales of non financial assets - 58 234 - 64 099
less Depreciation 20, 22, 24 453 422 380 533
plus Change in inventories 14 306 10 886
plus Other movements in non financial assets 58 751 18 105
equals Total net acquisition of non financial assets 484 716 783 301
equals FISCAL BALANCE - 485 415 - 617 630
39Financial Statements
Total Public Sector
Balance SheetNotes 2012-13 2011-12
$000 $000
ASSETS
Financial assets
Cash and deposits 14 553 717 518 990
Advances paid 15 226 083 164 322
Investments, loans and placements 16 2 454 569 2 126 857
Receivables 17 400 011 355 992
Equity
Investments in other public sector entities
Investments – other 18 103 103
Other financial assets
Total financial assets 3 634 483 3 166 264
Non financial assets
Inventories 19 120 480 106 174
Property, plant and equipment 20 14 404 803 13 666 128
Investment property 21 142 378 96 352
Intangible assets 22 72 238 29 405
Assets held for sale 23 20 979 11 073
Other non financial assets 24 122 467 64 707
Total non financial assets 14 883 344 13 973 838
TOTAL ASSETS 18 517 827 17 140 103
LIABILITIES
Deposits held 25 545 120 550 861
Advances received 26 242 474 248 674
Borrowing 27 4 723 935 3 905 358
Superannuation 28 3 495 133 3 797 653
Other employee benefits 29 618 082 597 427
Payables 30 279 055 287 097
Other liabilities 31 745 834 745 475
TOTAL LIABILITIES 10 649 634 10 132 546
NET ASSETS/(LIABILITIES) 7 868 193 7 007 557
Contributed equity
Accumulated surplus/(deficit) 1 612 641 1 473 333
Reserves 32 6 255 552 5 534 224
NET WORTH 7 868 193 7 007 557
NET FINANCIAL WORTH1 - 7 015 151 - 6 966 281
NET DEBT2 2 277 160 1 894 724
1 Net financial worth equals total financial assets minus total liabilities.2 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
40
2012-13 Treasurer’s Annual Financial Report
Financial Statements
Total Public Sector
Statement of Changes in Equity
NotesEquity at
1 JulyComprehensive
Result
Transactions with Owners in their capacity
as OwnersEquity at 30 June
$000 $000 $000 $0002012-13Accumulated funds 1 473 333 145 346 1 618 679Changes in accounting policy Correction of prior period errors Transfers from reserves - 5 619 - 5 619Dividends paid/payable Other movements directly to equity - 419 - 419Total accumulated funds 1 473 333 139 308 1 612 641Reserves 32Asset revaluation surplus 5 197 377 706 614 5 903 992Asset realisation surplus 335 482 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves 1 365 14 713 16 078Total reserves 5 534 224 721 328 6 255 552Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 007 557 860 636 7 868 1932011-12Accumulated funds 2 332 983 - 879 641 1 453 342Changes in accounting policy Correction of prior period errors Transfers from reserves 16 697 16 697Dividends paid/payable Other movements directly to equity 3 293 3 293Total accumulated funds 2 332 983 - 859 650 1 473 333Reserves 32Asset revaluation surplus 4 893 836 303 541 5 197 377Asset realisation surplus 332 868 2 615 335 482Derivative revaluation surplus Investments in public sector entities revaluation surplus Other reserves 2 272 - 908 1 365Total reserves 5 228 976 305 248 5 534 224Capital – transactions with owners Equity injections
Capital appropriation Equity transfers in Other equity injections Specific purpose payments National partnership payments Commonwealth – capital
Equity withdrawalsCapital withdrawals Equity transfers out
Total capital – transactions with owners TOTAL EQUITY AT END OF FINANCIAL YEAR 7 561 959 - 554 403 7 007 557
41Financial Statements
Total Public Sector
Cash Flow StatementNotes 2012-13 2011-12
$000 $000
Cash receipts from operating activities
Taxes received 478 263 390 164
Receipts from sales of goods and services 1 021 010 962 971
Grants and subsidies received 3 783 305 3 993 535
Interest receipts 103 886 120 944
Other receipts 400 469 467 327
Total operating receipts 5 786 932 5 934 941
Cash payments for operating activities
Payments for employees - 2 286 569 - 2 130 771
Payment for goods and services - 1 937 713 - 2 028 295
Grants and subsidies paid - 862 563 - 892 000
Interest paid - 247 221 - 229 673
Other payments - 18 997 - 15 362
Total operating payments - 5 353 063 - 5 296 101
NET CASH FLOWS FROM OPERATING ACTIVITIES 35 433 869 638 839
Cash flows from investments in non financial assets
Sales of non financial assets 55 006 74 099
Purchases of non financial assets - 925 721 - 1 200 974
Net cash flows from investments in non financial assets - 870 715 - 1 126 875
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 436 846 - 488 035
Net cash flows from investments in financial assets for policy purposes1 - 61 716 - 28 189
Net cash flows from investments in financial assets for liquidity purposes - 237 060 - 224 874
NET CASH FLOWS FROM INVESTING ACTIVITIES - 1 169 491 - 1 379 937
Net cash flows from financing activities
Advances received (net) - 6 200 - 5 664
Borrowing (net) 782 289 960 222
Deposits received (net) - 5 742 - 14 331
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES 770 348 940 228
NET INCREASE/DECREASE IN CASH HELD 34 726 199 130
Net cash flows from operating activities 433 869 638 839
Net cash flows from investments in non financial assets - 870 715 - 1 126 875
CASH SURPLUS (+)/DEFICIT (-) - 436 846 - 488 035
Future Infrastructure and Superannuation contributions/earnings2 - 20 916 - 18 152
UNDERLYING SURPLUS (+)/DEFICIT (-) - 457 762 - 506 187
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 436 846 - 488 035
Acquisitions under finance leases and similar arrangements - 41 441
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements - 478 287 - 488 035
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
Notes to the Financial Statements
45Notes to the Financial Statements
Notes to the Financial StatementsFor the year ended 30 June 2013
Note 1: Statement of Significant Accounting PoliciesThe following summary sets out the significant accounting policies adopted in the Treasurer’s Annual Financial Statement (TAFS).
a) Statement of Compliancei) Compliance FrameworkThe 2012-13 TAFS general purpose financial statements have been prepared in accordance with all standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are effective for the current annual reporting period. In particular, the financial statements are presented in a manner consistent with the requirements of AASB 1049 Whole of Government and General Government Sector Financial Reporting.
The Government Finance Statistics (GFS) information included in this report is based on the Australian Bureau of Statistics (ABS) publications: Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2005 and Amendments to Australian System of Government Finance Statistics, 2005 (ABS Catalogue No. 5514.0) (the GFS Manual).
The following new and revised accounting standards and interpretations were effective for the first time in 2012-13:
AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets [AASB 112]The standard amends AASB 112 Income Taxes to provide a presumption that recovery of the carrying amount of an asset measured using the fair value model in AASB 140 Investment Property will, normally, be through sale. The standard does not impact the financial statements.
AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the ABS GFS Manual and Related Amendments [AASB 1049]The standard makes amendments to AASB 1049 Whole of Government and General Government Sector Financial Reporting to amend the definition of the ABS GFS Manual, provide relief from adopting the latest version of the ABS GFS Manual, and require related disclosures where the latest version of the ABS GFS Manual has not been applied.
AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]The amendments require entities to group items presented in other comprehensive income on the basis of whether they are potentially reclassifiable to profit or loss subsequently.
AASB 2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049The standard amends some of the requirements in AASB 1049 Whole of Government and General Government Sector Financial Reporting to improve the standard at an operational level.
AASB 2012-8 Amendments to AASB 1049 – Extension of Transitional Relief for the Adoption of Amendments to the ABS GFS Manual relating to Defence Weapons PlatformsThe standard amends AASB 1049 Whole of Government and General Government Sector Financial Reporting to provide a further two year period of transitional relief from the requirement to adopt Chapter 2 Amendments to Defence Weapons Platforms of the Australian Bureau of Statistics publication Amendments to Australian System of Government Finance Statistics, 2005 in financial statements prepared in accordance with AASB 1049. The standard does not impact the financial statements.
46
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Compliance with IFRSA statement of compliance with the IFRS cannot be made due to the application of the not-for-profit requirements contained within Australian accounting standards (no equivalent requirements exist in IFRS).
ii) Standards and Interpretations Issued but not yet EffectiveAt the date of authorisation of the financial statements, the following standards and interpretations were in issue but not yet effective.
The following standards and interpretations are likely to have an impact on the TAFS for future reporting periods, but the exact impact is yet to be determined:
Standard/Interpretation
Effective for annual reporting
periods beginning on or after
AASB 9 Financial Instruments (December 2010), AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127], AASB 2012-6 Amendments to Australian Accounting Standards – Mandatory Effective Date of AASB 9 and Transition Disclosures [AASB 9, 200911, 2010-7, 2011-7 & 2011-8]
1 January 2015
AASB 10 Consolidated Financial Statements, AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17], AASB 2012-10 Amendments to Australian Accounting Standards – Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049 & 2011-7 and Interpretation 12]
1 January 2013
AASB 12 Disclosure of Interests in Other Entities 1 January 2013
AASB 13 Fair Value Measurement, AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 20107, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131 & 132]
1 January 2013
AASB 119 Employee Benefits (September 2011), AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, 8, 101, 124, 134, 1049 & 2011-8 and Interpretation 14]
1 January 2013
AASB 2012-2 Amendments to Australian Accounting Standards – Disclosures – Offsetting Financial Assets and Financial Liabilities [AASB 7 & 132]
1 January 2013
AASB 2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities [AASB 132]
1 January 2014
AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 20092011 Cycle [AASB 1, 101, 116, 132 & 134 and Interpretation 2]
1 January 2013
The following standards and interpretations are not expected to have a material impact on the TAFS for future reporting periods:
• AASB 11 Joint Arrangements
• AASB 127 Separate Financial Statements (2011)
• AASB 128 Investments in Associates and Joint Ventures (2011)
47Notes to the Financial Statements
Note 1 (continued)• AASB 1053 Application of Tiers of Australian Accounting Standards, AASB 2010-2 Amendments
to Australian Accounting Standards arising from Reduced Disclosure Requirements, AASB 2011-2 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project – Reduced Disclosure Requirements, AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements, AASB 2011-11 Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements, 2012-1 Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure Requirements, AASB 2012-11 Amendments to Australian Accounting Standards – Reduced Disclosure Requirements and Other Amendments
• AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements
• AASB 2012-9 Amendment to AASB 1048 arising from the Withdrawal of Australian Interpretation 1039
• Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine, AASB 2011-12 Amendments to Australian Accounting Standards arising from Interpretation 20
b) The Government Reporting EntityIn accordance with AASB 1049 Whole of Government and General Government Sector Financial Reporting, the financial statements cover the total public sector, comprising the general government, public non financial corporations, non financial public and public financial corporations sectors. The sectors are determined in accordance with the principles and rules contained in the GFS Manual. All sectors are considered to be not-for-profit for financial reporting purposes.
Financial information, in the form of a Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity and Cash Flow Statement, are presented for each of these reporting sectors. Notes to the financial statements are presented for the total public sector and the general government sector.
Note 40, Details of Controlled Entities at Reporting Date, contains a full list of entities forming each of the sectors listed below.
General Government Sector (GGS)Entities that are mainly engaged in the production of goods or services outside the normal market mechanism. Goods and services are generally provided free of charge or at nominal charges well below costs of production. It also includes certain activities, government business divisions and government-controlled enterprises that operate in a cost-recovery environment observing competitive neutrality principles, but closely aligned to the operations of general government.
Public Non Financial Corporations (PNFC) SectorA public enterprise primarily engaged in the production of goods or services of a non financial nature, for sale in the market place, at prices that aim to recover most of the costs involved.
Non Financial Public Sector (NFPS)This sector is formed through a consolidation of the general government and public non financial corporations sub-sectors. This process eliminates transactions between the two sectors.
Public Financial Corporations (PFC) SectorGovernment controlled entities that perform central bank functions, and or have the authority to incur liabilities and acquire financial assets in the market on their own account.
48
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Total Public Sector (TPS)The total public sector is formed through a consolidation of all sectors of government. This process eliminates transactions and balances between sectors.
c) Basis of PreparationThe financial statements have been prepared in accordance with the fair value basis of accounting with certain exceptions as described in the accounting policies set below.
The accounts have been prepared using the accrual basis of accounting applying the going concern assumption.
d) Basis of ConsolidationReporting entities controlled by the Territory are consolidated within these financial statements and are included in a specific reporting sector and the total public sector.
Where control of an entity is obtained during a financial year, the results of that entity are included in the Comprehensive Operating Statement from the date on which control commenced. Where control of an entity ceases during a financial year, the entity’s results are included for the part of the year for which control existed.
All material revenues, expenses, assets, liabilities and equity of the Government, including entities controlled by the Government, are included in the financial statements, and as part of the consolidation process material transactions and balances between government controlled entities are eliminated. Where necessary, adjustments are made to the financial statements of controlled entities to bring their accounting policies in line with the reporting entities controlled by the Territory.
e) ComparativesWhere necessary, comparative information for the 2011-12 financial year has been restated to provide consistency with current year disclosures.
f) Presentation and Rounding of AmountsAmounts in the financial statements are presented in Australian dollars and have been rounded to the nearest thousand dollars, with amounts of $500 or less being rounded down to zero. Totals may not add due to rounding.
g) Changes in Accounting PoliciesThere have been no changes to accounting policies adopted in 2012-13 as a result of management decisions.
h) Accounting Judgements and Estimates Preparation of the financial statements require the making of judgements and estimates that affect the recognised amounts of assets, liabilities, revenues and expenses and the disclosure of contingent liabilities. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
49Notes to the Financial Statements
Note 1 (continued)Judgements and estimates that have significant effects on the financial statements are disclosed in the relevant notes to the financial statements. Notes that include significant judgements and estimates are:
• Superannuation Liabilities – Note 1 (p) and Note 28: Assumptions are made with regard to discount rate, salary rate, expected return on scheme assets, inflation and imputed cost of interest.
• Other Employee Benefits – Note 1 (q) and Note 29: Non current liabilities in respect of employee benefits are measured as the present value of estimated future cash outflows based on the appropriate Government bond rate, estimates of future salary and wage levels and employee periods of service.
• Other Liabilities – Note 1 (s) and Note 31: Outstanding claim liabilities associated with the Territory Insurance Office (TIO) and the Nominal Insurer are reported at net present value based on actuarial assumptions.
• Contingent Liabilities – Note 1 (y) and Note 34: The present value of material quantifiable contingent liabilities are calculated using a discount rate based on the published 10-year Government bond rate.
• Allowance for Impairment – Note 15: Advances Paid; Note 16: Investments, Loans and Placements; Note 1 (l); and Note 17: Receivables.
• Depreciation and Amortisation – Note 1 (j); Note 20: Property, Plant and Equipment; Note 22: Intangible Assets; and Note 24: Other Non Financial Assets.
i) Revenue from TransactionsRevenue is recognised at the fair value of the consideration received, exclusive of the amount of goods and services tax (GST).
TaxationTerritory taxation is recognised when the underlying transaction or event that gives rise to the right to collect revenue occurs, and can be measured reliably. Government-assessed revenues are recognised at the time the assessments are issued. An example of an assessment-based tax is conveyance duty.
Taxpayer-assessed revenues, for example payroll tax, are recognised when a taxpayer’s self assessment is received. Additional revenues are recognised for assessments subsequently issued following review of returns lodged by taxpayers.
The deferred tax assets and deferred tax liabilities of the public non financial corporation and public financial corporation entities are not recognised. Rather, tax payments in relation to these entities are recognised when payable. This is eliminated upon consolidation within the total public sector.
Grants and Other ContributionsGrants, subsidies, donations, gifts and other non-reciprocal contributions are recognised as revenue when the Government obtains control over the assets comprising the contributions.
Contributions are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated.
Contributions of assets and contributions to assist in the acquisition of assets (capital grants), being non-reciprocal transfers, are recognised, unless otherwise determined by Government, as revenue when the agency obtains control of the asset or contribution. Contributions are recognised at the fair value received or receivable.
50
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Sale of GoodsRevenue from the sale of goods is recognised (net of returns, discounts and allowances) when:
• the significant risks and rewards of ownership of the goods have transferred to the buyer;
• the agency retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
• the amount of revenue can be reliably measured;
• it is probable that the economic benefits associated with the transaction will flow to the agency; and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of ServicesRevenue from rendering services is recognised by reference to the stage of completion of the contract. The revenue is recognised when:
• the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
• it is probable that the economic benefits associated with the transaction will flow to the entity.
Interest IncomeInterest and other investment income is recognised as it accrues, using the effective interest rate method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.
Fees and FinesRevenue from regulatory fees and fines is recognised at the time the fine or regulatory fee is issued.
j) Expenses from TransactionsDepreciation and AmortisationItems of property, plant and equipment, including buildings but excluding land and non current assets held for sale, have limited useful lives and are depreciated or amortised using the straight-line method over their estimated useful lives. The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. Investment properties are not subject to depreciation.
Amortisation applies in relation to intangible non current assets with limited useful lives and is calculated and accounted for in a similar manner to depreciation.
The estimated useful lives for each class of asset are summarised below for agencies and other consolidated entities:
Entities Subject to FMA¹
Other Consolidated
Entities
Buildings 10-100 years 3-93 years
Infrastructure assets 8-70 years n/a
Plant and equipment 1-20 years 2-20 years
Property, plant and equipment under finance lease 3-40 years n/a
Cultural assets 100 years n/a
Utility assets n/a 1-100 years
Intangibles 2-10 years 1-21 years
1 Financial Management Act.
51Notes to the Financial Statements
Note 1 (continued)Assets are depreciated or amortised from the date of acquisition or from the time an asset is completed and held ready for use.
Interest ExpensesInterest expenses include finance lease charges and borrowing costs. Interest expenses are expensed in the period in which they are incurred.
Other ExpensesOther expenses from transactions include employee and other entitlements, property expenses, transfer of grants and subsidies, purchase of goods and services and other operating expenses.
k) Other Economic FlowsOther economic flows measure the change in volume or value of assets or liabilities that do not result from transactions. Other economic flows include the following transactions:
Disposal of Non Financial AssetsA gain or loss on disposal of assets is included as a gain or loss on the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal.
Revaluation of Non Financial AssetsSubsequent to initial recognition, assets belonging to the following classes of non financial assets are revalued with sufficient regularity to ensure that the carrying amount of these assets does not differ materially from their fair value at reporting date:
• land;
• buildings;
• infrastructure assets;
• heritage and cultural assets;
• investment properties;
• biological assets; and
• intangibles.
The above classes of non current assets include certain new assets that are initially recognised at cost. Such new assets will continue to be measured at cost, which is deemed to equate to fair value, until the next revaluation for that asset class occurs.
Plant and equipment are stated at historical cost less depreciation, which is deemed to equate to fair value. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
The Australian Valuation Office (AVO) has provided independent valuations for key general government land, building and infrastructure assets. Valuations are in accordance with the fair value basis, with most general government building and infrastructure assets being valued at depreciated replacement cost. Parcels of land are valued based on existing land use.
A revaluation of urban public housing rental properties, remote government employee housing rental dwellings, vacant Crown land and the Museum and Art Gallery of the Northern Territory’s natural sciences and archaeology collection was completed at 30 June 2013, the results of which are reflected in these financial statements.
52
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Net revaluation movement of investment properties are classified as ‘other economic flows – included in operating result’; whereas, net revaluation movement of other non financial assets are recognised as ‘other economic flows – other comprehensive income’.
Other Value-Based ChangesThese include changes in the value of financial instruments measured at fair value (refer Note 1 (u)), changes in unfunded employee entitlements because of changes in the long-term bond rate and other actuarial assumptions (refer Note 1 (p)) and changes in the fair value of investment property due to market value changes (refer Note 1 (m)).
Impairment of AssetsAn asset is said to be impaired when its carrying amount exceeds its recoverable amount.
Non current physical and intangible assets are assessed for indicators of impairment on an annual basis.
If an indicator of impairment exists, Government determines the asset’s recoverable amount. As the public sector is a not-for-profit entity, unless an asset has been identified as a surplus asset, the asset’s recoverable amount is determined as the higher of the asset’s depreciated replacement cost and fair value less costs to sell. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an impairment loss.
In certain situations, an impairment loss may subsequently be reversed. The impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
l) Financial AssetsCash and DepositsFor the purposes of the Balance Sheet and the Cash Flow Statement, cash includes cash on hand, cash at bank and cash equivalents. Cash equivalents are highly liquid short-term investments that are readily convertible to cash, which are subject to an insignificant risk of changes in value. Cash at bank includes monies held in the Accountable Officers’ Trust Account that are ultimately payable to the beneficial owner (refer also to Note 25).
Advances PaidAdvances paid include investments in financial assets for policy purposes. Advances paid are recorded at cost less allowance for impairment.
The allowance for impairment losses represents the amount of advances paid that are likely to be uncollectible and are considered doubtful. The collectability of advances paid is reviewed regularly and part of this process is to assess, at reporting date, whether an allowance for impairment loss is required.
Investments, Loans and PlacementsInvestments, loans and placements include investments in financial assets for liquidity management purposes.
Securities and investments are initially recorded at cost and are subsequently measured at amortised cost or at net market value, after deducting estimated costs of realisation at reporting date.
Loans are carried at amortised cost using the effective interest rate method less allowance for impairment.
Interest income is applied using the effective interest rate.
53Notes to the Financial Statements
Note 1 (continued)ReceivablesReceivables include accounts receivable and other receivables and are recognised at fair value less any allowance for impairment losses.
The allowance for impairment losses represents the amount of receivables that are likely to be uncollectible and are considered doubtful. The collectability of receivables is reviewed regularly, and part of this process is to assess, at reporting date, whether an allowance for impairment loss is required.
m) Non Financial AssetsInventoriesInventories include assets held either for sale or for distribution at no or nominal consideration in the ordinary course of business operations including land held for sale by the Land Development Corporation.
Inventories are valued at the lower of cost and net realisable value, except for those held for distribution, which are carried at the lower of cost and current replacement cost. The cost of inventories is assigned using a mixture of first in, first out, a weighted average cost formula or using specific identification of individual costs.
Inventory held for distribution is regularly assessed for obsolescence and loss.
Property, Plant and EquipmentAll items of property, plant and equipment with a cost, or other value, equal to or greater than $10 000 are recognised in the year of acquisition and depreciated. Items of property, plant and equipment below the $10 000 threshold are expensed in the year of acquisition.
Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset.
Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Government in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives.
Investment PropertiesInvestment property, which is property held to earn rentals and or for capital appreciation, is measured initially at its cost, including transaction costs. Subsequent to initial recognition, investment property is measured at fair value. Revaluations are performed annually at the reporting date. Gains and losses arising from changes in the fair value of investment property are included in the Comprehensive Operating Statement as an ‘other economic flows – included in operating result’ in the period in which they arise. Any gains or losses on the retirement or disposal of an investment property are recognised in the Comprehensive Operating Statement as an ‘other economic flows – included in operating result’ in the period in which they arose.
Investment land held for lease up to 50 years is initially measured at cost and subsequently revalued to fair value. Formal revaluation is underway and will be completed in year ending 30 June 2014.
54
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Intangible AssetsTotal public sector intangibles consist largely of deferred development costs associated with a gas purchase agreement to which a government-controlled entity is a party. Under this agreement, certain gas field development costs are reimbursed to the gas field developers.
The costs associated with field development are capitalised and amortised over the remaining periods of the gas purchase agreement. Deferred development costs are reviewed at reporting date, and where such costs are no longer considered recoverable, they are written off as an expense in the Comprehensive Operating Statement.
Other intangible assets consist of purchased software and in-house installation thereof that meets the criteria for recognition as intangible assets. Intangible assets are originally stated at cost less accumulated amortisation and any accumulated impairment losses.
These intangible assets have limited useful lives and are amortised using the straight-line method over their estimated useful lives, which reflects the pattern of when expected economic benefits are likely to be realised. Assets are amortised from the date of acquisition or from the time the asset is held ready for use. Amortisation rates and methods are reviewed annually for appropriateness. When adjustments are made, they are reflected prospectively in current and future periods only.
All internally generated intangible assets have met the recognition criteria as defined under AASB 138.
Assets Held for SaleAssets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction or a grant agreement. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale or granting in its present condition. Management must be committed to the sale or grant agreement, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.
Assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.
Other Non Financial AssetsThis category currently consists of heritage and cultural assets. Only those assets that can be reliably measured are recognised in the TAFS.
Assets Not RecognisedFinancial information in relation to significant school items such as land and buildings has been included in the financial statements. However, certain Northern Territory Government school assets have not been included in the financial statements due to the unreliability of the information.
In addition, land under roads cannot be meaningfully valued and consequently are not included in the financial statements.
n) Leased AssetsLeases under which the agency assumes substantially all the risks and rewards of ownership of an asset are classified as finance leases. Other leases are classified as operating leases.
Finance LeasesFinance leases are capitalised and recorded under property, plant and equipment. A lease asset and a lease liability equal to the lower of the fair value of the leased property and present value of the minimum lease payments, each determined at the inception of the lease, are recognised.
55Notes to the Financial Statements
Note 1 (continued)Repayments of principal reduce lease liabilities. The interest components of the lease payments are expensed.
Long-term leases over Aboriginal land are recognised as assets on the balance sheet of the Northern Territory and amortised accordingly over the term of the lease arrangements. A corresponding liability is recognised under Borrowings.
Darwin Convention Centre Concession Arrangements – The Territory entered into contractual arrangements with Darwin Cove Convention Centre Pty Ltd (‘the concession holder’) under which, in return for a right to operate a Convention Centre, the concession holder was required to design, finance, construct, commission, control, operate, maintain, repair and refurbish the centre at the end of the concession period prior to the transfer of the centre to the Territory.
The concession holder, in turn, entered into a contractual arrangement with Ogden IFC (Darwin) Pty Ltd, now AEG Ogden, (‘the operator’) to operate and manage the centre. The concession arrangement will operate for a period of 25 years until June 2033, including a three-year handover phase.
The concession holder has also entered into separate contractual arrangements with Honeywell Ltd (‘the facilities manager’) for the maintenance, repair and refurbishment of the facility over the period until the centre is handed over to the Territory.
The concession arrangements provide for a payment by the Territory of periodic payments to the concession holder for the life of the concession period of 25 years following the construction of the centre. This payment primarily represents payments made in respect of debt, equity, construction and maintenance aspects of the project. Up to 75 per cent of this payment is subject to abatement if the facility should be unavailable, if the facility fails to meet availability standards or if the operator fails to achieve key performance indicators.
In addition the arrangements also provide for the payment of a Territory operating payment that comprises the net cash shortfall arising from the operation of the Convention Centre during a year, capped to a maximum contribution and subject to negotiation. The legal framework for the centre includes incentives intended to encourage the operator to exceed benchmark levels of performance.
Expenses incurred under the availability payment and operating payment arrangements are included in the Comprehensive Operating Statement for the year.
The liability under the Territory availability payment arrangement has been recognised as a liability of the Territory. This liability will reduce over the life of the concession arrangement in line with those payments that represent the principal component of the availability payment. The Territory has also recognised the Convention Centre as an asset, being the Territory’s equitable interest in the underlying physical asset. That asset will be amortised on a straight-line basis over the useful life of the asset.
Operating LeasesOperating lease payments made at regular intervals throughout the term are expensed when the payments are due, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased property.
Lease IncentivesLease incentives received under an operating lease of a building or office space are recognised as a liability. The aggregate benefits of the lease incentives are recognised as a reduction of rental expense on a straight line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the lease are consumed.
56
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)o) Financial Liabilities Financial liabilities such as interest-bearing liabilities, advances received and borrowings are recorded initially at fair value, net of transaction costs. Subsequent to initial recognition, borrowings are measured at amortised cost with any differences between the initial recognised amount and the redemption amount being recognised in the Comprehensive Operating Statement over the period of the borrowing using the effective interest rate method.
Interest-Bearing LiabilitiesInterest-bearing liabilities are recorded at amortised cost, using the effective interest rate method, with the associated interest expense recognised in the reporting period in which it is payable.
Advances ReceivedAdvances received reflect loans received for policy purposes. These are primarily the original Commonwealth loans issued at Self-Government.
BorrowingsBorrowings represent funds raised for liquidity management purposes from the following sources: loans raised by the Commonwealth on behalf of the Territory, domestic and overseas borrowings via the Northern Territory Treasury Corporation (NTTC), and overdraft facilities obtained from the commercial banking sector by public non financial corporations and public financial corporations.
p) SuperannuationEmployees’ superannuation entitlements are provided through either a defined contribution plan or a defined benefits plan.
Defined Contribution PlansContributions to defined contribution superannuation plans are expensed when employees have rendered the service entitling them to the contributions. These include the employee nominated non-government schemes for those employees commencing on or after 10 August 1999. As they are funded on an ongoing basis, a liability is generally not recognised, however a liability is recognised for the superannuation costs associated with the benefits accrued for employees in respect of annual leave and long service leave.
Defined Benefit PlansFor defined benefit superannuation plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at each reporting date. The projected unit credit method calculates the accrued liability by discounting the value of the expected future benefit payments, after allowing for future salary increases, future interest and future pension increases where applicable, arising from membership completed prior to the reporting date. The discount rate used is the 10-year government bond rate as at 30 June 2013, which was 3.8 per cent; the equivalent rate as at 30 June 2012 was 3.1 per cent.
Actuarial gains and losses are recognised in full in the Comprehensive Operating Statement as an ‘other economic flow – included in operating result’ in the period in which they occur (refer Note 28 for further details).
The defined benefit superannuation plans include:
• Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS);
• Commonwealth Superannuation Scheme (CSS);
• Northern Territory Supplementary Superannuation Scheme (NTSSS);
• Northern Territory Police Supplementary Benefit Scheme (NTPSBS); and
• Legislative Assembly Members’ (LAMS) Fund and other statutory schemes.
57Notes to the Financial Statements
Note 1 (continued)q) Other Employee BenefitsA liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and sick leave when it is probable that settlement will be required and they are capable of being measured reliably.
Liabilities recognised in respect of employee benefits that are expected to be settled within 12 months are measured at their nominal values using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of employee benefits that are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows calculated using the appropriate government bond rate and taking into consideration expected future salary and wage levels, experience of employee departures and periods of service.
All recreation leave and unconditional long service leave liabilities are classified as current liabilities.
No provision is made for sick leave, which is non vesting, as the anticipated pattern of future sick leave to be taken is less than the entitlement accruing in each reporting period.
r) PayablesLiabilities for accounts payable and other amounts payable are carried at cost, which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the agency.
s) Other LiabilitiesOutstanding claims liabilities associated with TIO and the Nominal Insurer are based on claims reported but not yet paid, claims incurred but not reported and the expected costs associated with settlement of those claims, all of which are reported at net present value.
Workers compensation liabilities comprise those under the Workers Rehabilitation and Compensation Act, and COMCARE liabilities under Commonwealth legislation. The change in liability for the year ended 30 June 2013 is based upon an actuarial assessment of the value of outstanding claims at the end of the period and takes into account revisions to earlier years’ estimates of the value of outstanding claims.
t) EquityThe values of all holdings in entities external to a sector that are controlled by that sector are included in equity. The general government sector is considered to control all other government entities. The movement in the net worth of sub-sectors (that is, the public non financial corporations and public financial corporations) is included in the value of equity for the general government sector. Similarly, the non financial public sector includes the movement in the net worth of the public financial corporations sector.
In reporting the total public sector, the Government equity in public financial and non financial corporations are eliminated upon consolidation.
u) Financial InstrumentsA financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and liabilities are recognised on the Balance Sheet when the Territory becomes a party to the contractual provisions of the financial instrument. The Territory’s financial instruments include cash and deposits; receivables; advances; investments loan and placements; payables; advances received; borrowings and derivatives.
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2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)Exposure to interest rate risk, foreign exchange risk, credit risk, price risk and liquidity risks arise in the normal course of activities. The Territory’s investments, loans and placements, and borrowings are predominantly managed through the NTTC and TIO adopting strategies to minimise the risk. Derivative financial arrangements are also utilised to manage financial risks inherent in the management of these financial instruments. These arrangements include swaps, forward interest rate agreements and other hedging instruments to manage fluctuations in interest or exchange rates.
Classification of Financial InstrumentsAASB 7 Financial Instruments: Disclosures requires financial instruments to be classified and disclosed within specific categories depending on their nature and purpose.
The TAFS classifies its financial assets into the following categories:
• financial assets at fair value through profit or loss;
• held-to-maturity investments;
• loans and receivables; and
• available-for-sale financial assets.
Financial liabilities are classified into the following categories:
• financial liabilities at fair value through profit or loss (FVTPL); and
• financial liabilities at amortised cost.
Financial Assets or Financial Liabilities at Fair Value through Profit or LossFinancial instruments are classified as at FVTPL when the instrument is either held for trading or is designated as at FVTPL.
An instrument is classified as held for trading if it is:
• acquired or incurred principally for the purpose of selling or repurchasing it in the near term with an intention of making a profit; or
• part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
• a derivative that is not a financial guarantee contract or a designated and effective hedging instrument.
A financial instrument may be designated as at FVTPL upon initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
• the instrument forms part of a group of financial instruments, which is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and AASB 139 Financial Instruments: Recognition and Measurement permits the contract to be designated as at FVTPL.
59Notes to the Financial Statements
Note 1 (continued)Held-to-Maturity InvestmentsNon-derivative financial assets with fixed or determinable payments and fixed maturity dates that the entity has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.
Loans and ReceivablesFor details refer to Note 1 (l).
Available-for-Sale Financial AssetsAvailable-for-sale financial assets are those non-derivative financial assets, principally equity securities that are designated as available-for-sale or are not classified as any of the three preceding categories. After initial recognition available-for-sale securities are measured at fair value with gains or losses being recognised as a separate component of equity until the investment is derecognised or until the investment is determined to be impaired, at which time the cumulative gain or loss previously reported in equity is recognised in the Comprehensive Operating Statement.
Financial Liabilities at Amortised CostAmortised cost is calculated using the effective interest method.
Fair Value of Financial InstrumentsThe fair value of financial instruments is determined based on quoted market prices, where available, or on estimates using present values or other valuation techniques. These techniques are significantly affected by the assumptions used, including discount rates and estimates of future cash flows. When market prices are not readily available, fair value is either based on estimates obtained from independent experts or quoted market prices of comparable instruments.
DerivativesThe Territory enters into a variety of derivative financial instruments to manage its exposure to interest rate risk. The Territory does not speculate on trading of derivatives.
Derivatives are initially recognised at fair value on the date a derivative contract is entered in to and are subsequently remeasured at their fair value at each reporting date. The resulting gain or loss is recognised in the Comprehensive Operating Statement immediately unless the derivative is designated and qualifies as an effective hedging instrument, in which event, the timing of the recognition in the Comprehensive Operating Statement depends on the nature of the hedge relationship. Application of hedge accounting will only be available where specific designation and effectiveness criteria are satisfied.
Netting of Swap TransactionsThe Territory, from time to time, may facilitate certain structured finance arrangements, where a legally recognised right to set-off financial assets and liabilities exists, and the Territory intends to settle on a net basis. Where these arrangements occur, the revenues and expenses are offset and the net amount is recognised in the Comprehensive Operating Statement.
Other Financial Instruments Issued by the TerritoryDebt and equity instruments are classified as either liabilities or as equity in accordance with the substance of the contractual agreement. The Territory’s compounding products are debt instruments.
Note 36 provides additional information on financial instruments.
60
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 1 (continued)v) Foreign CurrencyForeign currency transactions are initially translated into Australian currency at the date of the transaction. Amounts payable and receivable in foreign currencies at balance date are translated to Australian currency rates of exchange at 30 June.
The Government may undertake hedging to avoid or minimise adverse financial effects of movements in exchange rates. However, there were no foreign currency hedge contracts in place during the year ended 30 June 2013.
w) TaxationThe Government is exempt from Commonwealth taxation with the exception of fringe benefits tax and GST.
Pursuant to National Competition Policy, the Government has implemented a tax equivalents regime that levies the equivalent of specified taxes and local government rates on certain public sector entities. Tax equivalents transactions and balances, other than taxation amounts actually payable, which are eliminated on consolidation, are excluded from these statements.
Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred on a purchase of goods and services is not recoverable from the Australian Taxation Office (ATO). In these circumstances, GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Balance Sheet.
Cash flows are included in the Cash Flow Statement on a gross basis. The GST components of cash flows arising from investing and financial activities that are recoverable from, or payable to, the ATO are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the ATO.
x) CommitmentsDisclosures in relation to capital and other commitments, including lease commitments, are shown at Note 33.
Commitments are those contracted as at 30 June where the amount of the future commitment can be reliably measured.
y) Contingent Liabilities and Contingent AssetsContingent liabilities are not recognised in the Balance Sheet but are disclosed in the notes, unless the possibility of settlement is remote, in which case no disclosure is made. If settlement becomes probable, a provision is recognised.
Contingent assets are not recognised in the Balance Sheet but are disclosed in the notes when inflows are probable. If inflows become virtually certain, an asset is recognised.
The amount disclosed as a contingent liability or contingent asset is the best estimate of the settlement or inflow.
z) Reporting Period The reporting period for consolidated entities is the year ended each 30 June, with the exception of the Batchelor Institute of Indigenous Tertiary Education, which operates on a calendar year reporting period. Management information, which is considered reliable, was used in respect of the Institute.
61Notes to the Financial Statements
Note 2: Other Economic Flows General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Gain (loss) on sale of non financial assets 10 777 5 645 10 900 8 072
Bad and doubtful debt - 6 220 - 2 877 - 10 584 - 4 453
Net actuarial gains (losses) 322 950 - 1 007 215 360 926 - 1 071 961
Revaluations and asset impairment - 252 032 - 27 009 - 214 847 23 969
Write down of inventory - 351 - 937 - 351 - 937
Other economic flows – included in operating result 75 125 - 1 032 394 146 045 - 1 045 311
Revaluations 545 185 300 994 706 196 309 448
Gain (loss) on investments in other sector entities 340 201 - 6 630
Other 1 249 8 147 9 094 15 790
Other economic flows – other comprehensive income 886 635 302 511 715 290 325 237
62
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 3: GFS Generally Accepted Accounting Principles (GAAP) Reconciliation2012-13 GFS GAAP Reconciliation
GGS
PNFC
Sector Eliminations NFPS
PFC
Sector Eliminations
Total Public
Sector
$000 $000 $000 $000 $000 $000 $000
a) Reconciliation to GFS Net Operating BalanceNet result from transactions – net
operating balance - 101 124 70 214 864 - 30 045 56 009 - 26 663 - 699
Convergence differences
Dividends to general government sector from other sector entities
864 - 864 - 26 663 26 663
Total convergence difference 864 - 864 - 26 663 26 663
GFS NET OPERATING BALANCE - 101 124 71 078 - 30 045 29 346 - 699
b) Reconciliation to GFS Fiscal BalanceFiscal balance - 356 856 - 160 001 864 - 515 994 57 242 - 26 663 - 485 415
Convergence differences
Relating to net operating balance Note 3 (a)
864 - 864 - 26 663 26 663
Total convergence difference 864 - 864 - 26 663 26 663
GFS FISCAL BALANCE - 356 856 - 159 137 - 515 994 30 579 - 485 415
c) Reconciliation to GFS Total Change in Net WorthComprehensive result – total change
in net worth before transactions with owners as owners
860 636 241 753 - 241 753 860 636 124 247 - 124 247 860 636
Convergence differences
Relating to net operating balance Note 3 (a)
864 - 864 - 26 663 26 663
Relating to other economic flows
Bad and doubtful debts 6 220 4 324 10 544 40 10 584
Net gain on equity investments in other sector entities measured at proportional share of carrying amount of net assets/(liabilities)
4 364 - 4 324 40 - 40
Remeasurement of shares and other contributed capital
- 246 941 246 941 - 97 624 97 624
Total convergence difference 10 584 - 241 753 241 753 10 584 - 124 247 124 247 10 584
GFS TOTAL CHANGE IN NET WORTH 871 220 871 220 871 220
d) Reconciliation to GFS Net WorthNet worth 7 868 193 2 452 461 - 2 452 461 7 868 193 397 293 - 397 293 7 868 193
Convergence differences
Shares and other contributed capital - 2 452 461 2 452 461 - 397 293 397 293
Total convergence difference - 2 452 461 2 452 461 - 397 293 397 293
GFS TOTAL CHANGE IN NET WORTH 7 868 193 7 868 193 7 868 193
63Notes to the Financial Statements
Note 3: (continued)
2011-12 GFS GAAP Reconciliation
GGS
PNFC
Sector Eliminations NFPS
PFC
Sector Eliminations
Total Public
Sector
$000 $000 $000 $000 $000 $000 $000
a) Reconciliation to GFS Net Operating BalanceNet result from transactions – net
operating balance 175 480 - 49 484 - 4 045 121 951 64 668 - 20 948 165 671
Convergence differences
Dividends to general government sector from other sector entities
- 4 045 4 045 - 20 948 20 948
Total convergence difference - 4 045 4 045 - 20 948 20 948
GFS NET OPERATING BALANCE 175 480 - 53 529 121 951 43 720 165 671
b) Reconciliation to GFS Fiscal BalanceFiscal balance - 467 069 - 190 706 - 4 045 - 661 820 65 139 - 20 948 - 617 630
Convergence differences
Relating to net operating balance Note 3 (a)
- 4 045 4 045 - 20 948 20 948
Total convergence difference - 4 045 4 045 - 20 948 20 948
GFS FISCAL BALANCE - 467 069 - 194 751 - 661 820 44 190 - 617 630
c) Reconciliation to GFS Total Change in Net WorthComprehensive result – total change
in net worth before transactions with owners as owners
- 554 403 - 11 137 11 137 - 554 403 29 500 - 29 500 - 554 403
Convergence differences
Relating to net operating balance Note 3 (a)
- 4 045 4 045 - 20 948 20 948
Relating to other economic flows
Bad and doubtful debts 2 877 1 437 4 314 139 4 453
Net gain on equity investments in other sector entities measured at proportional share of carrying amount of net assets/(liabilities)
1 576 - 1 437 139 - 139
Remeasurement of shares and other contributed capital
13 745 - 13 745 - 8 691 8 691
Total convergence difference 4 453 11 137 - 11 137 4 453 - 29 500 29 500 4 453
GFS TOTAL CHANGE IN NET WORTH - 549 950 - 549 950 - 549 950
d) Reconciliation to GFS Net WorthNet worth 7 007 557 2 209 844 - 2 209 844 7 007 557 299 709 - 299 709 7 007 557
Convergence differences
Shares and other contributed capital - 2 209 844 2 209 844 - 299 709 299 709
Total convergence difference - 2 209 844 2 209 844 - 299 709 299 709
GFS TOTAL CHANGE IN NET WORTH 7 007 557 7 007 557 7 007 557
64
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 4: Taxation RevenueTaxes on employers’ payroll and labour force taxes 205 460 171 447 195 994 162 400
Stamp duties on financial and capital transactions 128 411 93 192 128 411 93 192
Taxes on gambling 54 647 52 804 54 647 52 804
Taxes on insurance 42 162 35 236 42 162 35 236
Motor vehicle registration fees 60 284 50 238 60 284 50 238
Total taxation revenue 490 964 402 917 481 497 393 870
Note 5: Current GrantsGST revenue 2 792 729 2 506 625 2 792 729 2 506 625
Specific purpose payments 238 778 355 566 238 778 355 566
National partnerships 247 000 394 235 247 000 394 235
Other 329 898 249 057 330 332 253 911
Total current grants 3 608 405 3 505 483 3 608 839 3 510 337
Note 6: Capital GrantsNational partnerships 163 594 449 513 163 594 449 513
Other 7 167 30 493 7 410 30 522
Total capital grants 170 760 480 006 171 003 480 035
Note 7: Sales of Goods and ServicesFees from regulatory services 32 923 19 388 30 624 18 163
Other goods and services revenue 220 419 194 220 998 312 893 310
Total sales of goods and services 253 342 213 609 1 028 936 911 473
Note 8: Dividend and Income Tax Equivalent IncomeDividend income
Public non financial corporations sector - 864 4 045
Public financial corporations sector 26 663 20 948
Tax equivalents regime
Public non financial corporations sector - 1 895 4 621
Public financial corporations sector 17 090 11 639
Total dividend and income tax equivalent income 40 994 41 254
Note 9: Other RevenueRental income 7 278 5 945 15 550 13 262
Royalty income 112 029 145 764 112 029 145 764
Fines revenue 12 566 11 817 12 566 11 817
Miscellaneous revenue 33 835 33 096 55 905 58 696
Donated assets 757 607 26 347 23 796
Total other revenue 166 465 197 229 222 396 253 335
65Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 10: Other Operating ExpensesRepairs and maintenance 207 448 211 176 304 025 301 138
Property management 192 687 176 879 154 517 145 427
Purchases of goods and services 722 860 786 647 1 230 239 1 269 067
Other operating expenses 9 211 6 909 10 787 7 567
Total other operating expenses 1 132 206 1 181 611 1 699 568 1 723 200
Note 11: Current Grants1
Current grants 767 884 800 451 716 871 760 972
Total current grants 767 884 800 451 716 871 760 972
1 Current grants expenditure are general grants including grants to race clubs, state schools, independent schools and to non-profit organisations.
Note 12: Capital GrantsGeneral capital grants 62 630 77 380 26 470 54 498
Capital grants to charities and not for profit associations 4 300 416 4 300 416
Assets transferred 66 829 357 9 028 487
Total capital grants 133 759 78 152 39 798 55 401
Note 13: Subsidies and Personal Benefit PaymentsMonetary transfers to households 60 026 61 424 60 026 61 424
Community service obligations and other subsidies 107 249 89 408 46 834 28 148
Total subsidies and personal benefit payments 167 275 150 833 106 860 89 573
Note 14: Cash and DepositsCash at bank 30 483 23 064 65 766 51 807
Cash on hand 812 598 841 627
Cash on call or short-term deposit 382 289 354 287 487 110 466 556
Total cash and deposits 413 584 377 948 553 717 518 990
66
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 15: Advances Paid1
Current
Department of Business2 124 124
Department of Business and Employment2 161 161
Department of Housing, Local Government and Regional Services3 1 000 1 000
Department of Local Government3 1 000 1 000
Department of Natural Resources, Environment, the Arts and Sport4 20 20
Department of Sport and Recreation4 20 20
NT Home Ownership5 3 300 3 207 3 300 3 207
less: Allowance for impairment - 101 - 147 - 101 - 147
4 343 4 241 4 343 4 241
Non current
Department of Lands and Planning6 4 394
Department of Lands, Planning and the Environment6 4 519
Department of Transport 66 66
Department of Treasury and Finance7 8 805 8 805
Northern Territory Treasury7 8 805 8 805
NT Home Ownership5 221 878 160 284 221 878 160 284
less: Allowance for impairment - 9 008 - 9 008 - 9 008 - 9 008
226 259 164 475 221 740 160 081
Total advances paid 230 602 168 717 226 083 164 322
1 Advances paid refers to loans motivated by policy considerations rather than for liquidity management purposes. 2 Natural disaster relief and recovery arrangement advances within the Department of Business. The Department of Business and Employment ceased
to exist in 2012-13. Business and Employment functions transitioned to the Department of Business.3 The Department of Housing, Local Government and Regional Services ceased to exist in 2012-13. Local Government functions transitioned to the
Department of Local Government.4 The Department of Natural Resources, Environment, the Arts and Sport ceased to exist in 2012-13. Sport and Recreation functions transitioned to the
Department of Sport and Recreation. 5 These balances comprise the former Homestart NT, Homestart Extra and My New Home, and current HomeBuild Access schemes, which provide
assistance to individuals to purchase and build homes.6 The Department of Lands and Planning ceased to exist in 2012-13. Provision of advances to TIO for home building certification transitioned to the
Department of Lands, Planning and Environment.7 The Department of Treasury and Finance was formerly the Northern Territory Treasury, which ceased to exist in 2012-13. The advance represents an
amount advanced to Jabiru Town Development Authority. A provision for doubtful advances has been provided for in relation to this amount.
67Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 16: Investments, Loans and Placements Current
Securities1 730 608 570 628 1 378 597 1 139 766
Conditions of Service Reserve (COSR) investments2 512 957 434 808 512 957 434 808
Loans3 16 467 15 747
less: Allowance for impairment
1 243 565 1 005 435 1 908 021 1 590 320
Non current
Securities1 5 000 5 000
Loans3 26 198 25 423 547 234 532 172
less: Allowance for impairment - 686 - 635
26 198 30 423 546 548 536 537
Total investments, loans and placements 1 269 763 1 035 858 2 454 569 2 126 857
1 Current securities are predominantly cash invested by the NTTC on behalf of the Territory Government. These investments include short-term securities, fixed-interest securities, and fixed-rate notes.
2 COSR investments relate to funds that have been set aside to fund the Territory Government’s employee-related liabilities including salaries, leave entitlements, redundancy, superannuation payments and to meet similar payments. These funds are managed by three different external fund managers on behalf of the Territory Government. The value of the reserve at 31 August 2013 was estimated at $535 million.
3 Current and non current loans are mainly those provided by TIO as part of its normal operations. Small loans are also provided by the NTTC to the University, schools and local government councils and communities.
68
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 17: ReceivablesCurrent
Receivables (a) 110 541 117 197 220 423 189 603
Accrued revenue 23 697 27 824 78 874 62 429
Prepaid expenses (b) 19 144 66 313 49 848 43 957
153 382 211 334 349 144 295 989
Non current
Receivables (a) 50 867 60 003
50 867 60 003
Total receivables 153 382 211 334 400 011 355 992
a) Receivables comprise:
Current
Accounts receivable 49 846 48 052 181 751 129 383
less: Provision for impairment - 17 314 - 13 171 - 21 975 - 14 690
Interest receivable 570 933 3 751 3 223
GST receivable 24 145 28 830 22 815 29 481
Other receivables 53 295 52 553 34 081 42 207
110 541 117 197 220 423 189 603
Non current
Accounts receivable 11 17
Other 50 856 59 986
50 867 60 003
Total receivables 110 541 117 197 271 290 249 606
b) Prepaid expenses comprise:
Current
Prepaid salaries 1 278 1 168 1 331 1 224
Other prepayments 17 866 65 145 48 517 42 733
Total prepayments 19 144 66 313 49 848 43 957Refer to Note 36(d) for aging of receivables.
Note 18: Equity Investments – OtherCurrent 100 100 103 103
Total equity investments – other 100 100 103 103
Note: The balance largely represents holdings by Tourism NT in Tourism NT Pty Ltd.
69Notes to the Financial Statements
General Government Total Public Sector
Inventory
Inventory
Held for
Distribution Inventory
Inventory
Held for
Distribution
$000 $000 $000 $000
Note 19: Inventories2012-13
Carrying amount as at 1 July 917 8 358 67 467 38 707
Additions 3 162 54 485 8 307 64 215
Disposals - 2 901 - 52 957 - 5 142 - 52 957
Transfers in/(out) - 1 - 350 234 - 350
Revaluations/impairment adjustments
Carrying amount as at 30 June 1 177 9 537 70 865 49 615
2011-12
Carrying amount as at 1 July 1 019 9 175 61 732 33 556
Additions 4 121 51 973 9 906 57 940
Disposals - 4 223 - 51 853 - 12 446 - 51 853
Transfers in/(out) - 1 - 936 8 276 - 936
Revaluations/impairment adjustments
Carrying amount as at 30 June 917 8 358 67 467 38 707
70
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 20: Property, Plant and Equipment
Land Buildings Infrastructure1
Power and
Water Utility
Assets
Construction
Works in
Process
Plant and
Equipment
Leased
Property,
Plant and
Equipment Total
$000 $000 $000 $000 $000 $000 $000 $000
2012-13: General Government
Asset
Balance at 1 July 1 808 823 5 737 273 4 562 069 1 486 271 502 408 105 64314 202 487
Additions 3 792 1 731 6 528 526 61 325 32 132 627 513
Disposals - 13 691 - 5 840 - 45 151 - 64 682
Transfers in/(out) 2 030 727 414 228 124 - 1 333 375 7 302 - 22 - 368 527
Revaluations/impairment adjustments
255 576 149 151 - 46 740 - 3 816 - 199 353 972
Balance at 30 June (1) 2 056 531 6 609 729 4 743 458 681 422 522 069 137 55514 750 764
Accumulated depreciation/amortisation
Balance at 1 July 1 961 133 1 580 402 234 065 8 725 3 784 324
Depreciation/amortisation expense 156 765 66 592 60 433 2 828 286 618
Disposals - 25 892 - 25 892
Transfers in/(out) - 1 593 - 49 75 - 22 - 1 590
Revaluations/impairment adjustments
- 92 259 - 13 631 - 3 614 - 199 - 109 702
Balance at 30 June (2) 2 024 045 1 633 313 265 067 11 332 3 933 758
Carrying amount at 30 June (1 - 2) 2 056 531 4 585 684 3 110 145 681 422 257 001 126 22310 817 006
2012-13: Total Public Sector
Asset
Balance at 1 July 1 967 647 6 229 589 5 227 727 4 394 967 1 878 382 561 585 106 10420 366 001
Additions 3 7922 1 823 6 814 710 12 64 51213 41 44114 926 284
Disposals - 13 6913 - 5 8406 - 45 84013 - 65 370
Transfers in/(out) 2 8734 755 9407 293 5049 258 96011- 1 654 12312 7 07713 - 22 - 335 789
Revaluations/impairment adjustments
255 0755 172 6678 - 37 14810 - 32 50011 - 3 81613 - 199 354 080
Balance at 30 June (1) 2 215 696 7 154 180 5 484 089 4 621 428 1 038 969 583 518 147 32521 245 205
Accumulated depreciation/amortisation
Balance at 1 July 2 155 568 1 901 551 2 377 323 256 245 9 186 6 699 873
Depreciation/amortisation expense 169 556 88 282 116 352 63 909 3 749 441 848
Disposals - 26 545 - 26 545
Transfers in/(out) - 943 - 671 1 546 - 425 - 22 - 515
Revaluations/impairment adjustments
- 102 048 - 8 586 - 159 813 - 3 614 - 199 - 274 260
Balance at 30 June (2) 2 222 133 1 980 575 2 335 409 289 572 12 714 6 840 402
Carrying amount at 30 June (1 - 2) 2 215 696 4 932 047 3 503 514 2 286 019 1 038 969 293 947 134 61114 404 803
71Notes to the Financial Statements
Note 20 (continued)
Land Buildings Infrastructure1
Power and
Water Utility
Assets
Construction
Works in
Process
Plant and
Equipment
Leased
Property,
Plant and
Equipment Total
$000 $000 $000 $000 $000 $000 $000 $000
2011-12: General Government
Asset
Balance at 1 July 1 513 165 5 422 537 4 472 240 1 157 286 464 768 105 92313 135 919
Additions 3 655 4 442 51 841 251 85 799 935 199
Disposals - 22 450 - 54 - 45 748 - 68 252
Transfers in/(out) 10 801 335 646 89 777 - 512 267 - 2 411 - 280 - 78 734
Revaluations/impairment adjustments
303 652 - 25 298 278 354
Balance at 30 June (1) 1 808 823 5 737 273 4 562 069 1 486 271 502 409 105 64314 202 487
Accumulated depreciation/amortisation
Balance at 1 July 1 862 532 1 532 745 206 648 6 898 3 608 823
Depreciation/amortisation expense 126 307 47 170 56 188 2 107 231 772
Disposals - 24 677 - 24 677
Transfers in/(out) - 785 486 - 4 094 - 280 - 4 672
Revaluations/impairment adjustments
- 26 922 - 26 922
Balance at 30 June (2) 1 961 133 1 580 402 234 065 8 725 3 784 324
Carrying amount at 30 June (1 - 2) 1 808 823 3 776 140 2 981 667 1 486 271 268 343 96 91810 418 163
2011-12: Total Public Sector
Asset
Balance at 1 July 1 657 123 5 827 016 5 093 027 4 037 281 1 684 812 527 424 106 38518 933 069
Additions 3 655 5 417 372 2 354 1 086 960 87 421 1 186 179
Disposals - 22 450 - 54 - 46 615 - 69 119
Transfers in/(out) 165 402 290 120 620 184 554 - 893 389 - 6 645 - 280 - 192 685
Revaluations/impairment adjustments
329 154 - 5 080 13 707 170 777 508 558
Balance at 30 June (1) 1 967 647 6 229 589 5 227 727 4 394 967 1 878 383 561 584 106 10520 366 001
Accumulated depreciation/amortisation
Balance at 1 July 2 031 089 1 826 124 2 243 050 229 904 7 360 6 337 527
Depreciation/amortisation expense 138 643 69 477 103 825 59 789 2 107 373 841
Disposals - 25 448 - 25 448
Transfers in/(out) - 2 085 - 2 530 - 97 006 - 8 000 - 280 -109 900
Revaluations/impairment adjustments
- 12 080 8 480 127 454 123 854
Balance at 30 June (2) 2 155 568 1 901 551 2 377 323 256 245 9 187 6 699 873
Carrying amount at 30 June (1 - 2) 1 967 647 4 074 021 3 326 176 2 017 644 1 878 383 305 340 96 91813 666 128
72
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 20 (continued)
1. Since completion of the railway, the Government works totalling $394 million ($398 million as at 30 June 2012), are classified as infrastructure assets within AustralAsia Railway Corporation (AARC). During the 50-year concession period the rights and obligations for the new rail corridor rest with AARC and the Territory as they have freehold title over large portions of the rail corridor and hold long-term head leases over the remaining portions on Aboriginal land. Hence, control over the corridor including the rail assets rests with AARC. As such no provision for the resulting diminution in the value of the Territory’s assessment in AARC has been made in these financial statements. At the expiration of the 50-year concession period, the railway infrastructure (including the Government works) will be transferred to AARC. However, due to the subjectivity involved with any measurement of the future value of the asset after the expiry of the concession period, it is not considered practical, at this point, to recognise any further assets in the accounts of AARC or in these financial statements.
2. Land additions of $4 million consist of acquisitions made by the Department of Lands, Planning and the Environment.
3. Land disposals of $13.7 million predominantly relate to the sale of land including Bellamack and Johnston.
4. Land transfers of $2.8 million predominantly relate to upgrades to Hidden Valley Motor Sports Complex within the Department of Sports and Recreation.
5. Land revaluation of $255 million predominantly relate to the Department of Lands, Planning and the Environment upwards revision in Crown Land in Alice Springs and Litchfield.
6. Buildings disposals of $5.8 million relate to public housing stock in the Department of Housing.
7. Building transfers in of $756 million consist of completed construction of $615 million for building stock in relation to the Remote Indigenous Housing National Partnership within the Department of Housing.
8. Building revaluation of $173 includes the upward revaluation by the Department of Housing for public housing stock.
9. Infrastructure asset transfer in of $294 million predominantly consist of completed construction of roads within the Department of Transport of $144 million and essential infrastructure within the Department of Housing of $85 million.
10. Infrastructure asset revaluation adjustments of $37 million predominantly consist of a revaluation decrement made by the Department of Housing of $46.5 million in relation to Remote Indigenous Housing Infrastructure.
11. The movement in Power and Water utility assets relate to completed works in progress of $259 million offset by revaluation movement of $33 million.
12. The net movement in construction works in progress of $839 million largely relate to community amenities including Remote Indigenous Housing.
13. Net movement in plant and equipment of $22 million predominantly relate to fleet vehicles across government, fire and emergency vehicles and hospital equipment.
14. Leased property, plant and equipment additions of $41 million predominantly relate to assets on Aboriginal land.
73Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 21: Investment Property1
Carrying amount as at 1 July 55 607 52 730 96 352 106 339
Additions 42 978 9 032 43 258 9 126
Disposals - 8 508 - 6 893 - 8 508 - 6 893
Transfers in/(out) 8 460 - 12 958
Revaluations/impairment adjustments 2 816 738 2 816 738
Carrying amount as at 30 June 92 892 55 607 142 378 96 352
1 The total public sector represents minority interest holdings in shared equity properties under the former Homestart NT scheme and Homestart Extra scheme reported in the general government sector, combined with the recognition of investment land generating revenue by Land Development Corporation.
Note 22: Intangible Assets1
a) Carrying Amounts
At valuation 5 887 7 258 118 932 127 877
Accumulated amortisation 4 693 5 462 46 694 98 472
Written down value 30 June 1 194 1 796 72 238 29 405
Total intangible assets 1 194 1 796 72 238 29 405
b) Reconciliation of movements
Carrying amount at 1 July 1 796 1 771 29 404 24 435
Additions 659 68 083 21 563
Disposals - 5 - 16 339 - 10 450
Amortisation - 598 - 634 - 11 559 - 6 676
Revaluations/impairment adjustments 2 648 533
Carrying amount at 30 June 1 194 1 796 72 238 29 405
1 The intangible balance consists largely of software relating to the TIO and purchased software, gas stocks and renewal energy certificates of the Power and Water Corporation.
Note 23: Assets Held for Sale1
Land 20 979 11 073 20 979 11 073
Buildings
Total assets held for sale 20 979 11 073 20 979 11 073
1 Assets held for sale include land and buildings. The assets are held for disposal due to the Government’s intention to dispose of these assets within the following year.
74
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 24: Other Non Financial Assets1
Asset
Balance at 1 July 65 017 3 321 65 091 3 395
Additions 10 10
Disposals
Transfers in/(out)
Revaluations/impairment adjustments 57 775 61 686 57 776 61 686
Balance at 30 June (1) 122 793 65 017 122 868 65 091
Accumulated depreciation
Balance at 1 July 382 366 385 368
Depreciation expense 15 16 16 17
Disposals
Transfers in/(out)
Revaluations/impairment adjustments 1 1
Balance at 30 June (2) 398 382 401 385
Carrying amount as at 30 June (1 - 2) 122 396 64 636 122 467 64 707
1 Other non financial assets consists of natural sciences and archaeology collection following the Australian Valuation Office revaluation in 2012-13.
75Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 25: Deposits HeldAccountable Officers Trust Account (a) 37 529 32 284 37 565 32 322
Clearing money 19 191 10 390 19 469 11 331
Interest bearing deposits 601 602 757 057 471 384 502 466
Other 6 634 4 447 16 701 4 742
Total deposits held 664 956 804 178 545 120 550 861
a) Accountable Officers’ Trust Account comprises1:Central Australian Hospital Network 500 500
Department of Arts and Museums 68 68
Department of the Attorney-General and Justice 806 806
Department of Business 322 322
Department of Business and Employment 1 677 1 677
Department of Construction and Infrastructure 1 177 1 177
Department of Corporate and Information Services 1 614 1 614
Department of Correctional Services 463 463
Department of Health 9 510 9 510
Department of Housing 3 345 3 345
Department of Housing, Local Government and Regional Services 6 446 6 446
Department of Infrastructure 1 053 1 053
Department of Justice 1 264 1 264
Department of Lands, Planning and the Environment 1 006 1 006
Department of Lands and Planning 219 219
Department of Local Government 3 243 3 243
Department of Mines and Energy 19 169 19 169
Department of Natural Resources, Environment, the Arts and Sport 123 123
Department of Primary Industry and Fisheries 339 339
Department of Resources 16 745 16 745
Department of Transport 83 83
Northern Territory Electoral Commission 1 2 1 2
Northern Territory Police, Fire and Emergency Services 1 280 1 318 1 280 1 318
NT Legal Aid Commission 13 15 13 15
Parks and Wildlife Commission of the Northern Territory 112 112
Territory Discoveries 3 776 2 785 3 776 2 785
Territory Wildlife Parks 7 3 7 3
Top End Hospital Network 321 321
Land Development Corporation 35 38
37 529 32 284 37 565 32 322
1 As a result of machinery of government changes some government agencies ceased to exist in 2012-13.
76
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 26: Advances Received1
Current
Department of Housing2 1 363 1 199
NT Home Ownership 7 454 7 112
Northern Territory Treasury Corporation 5 925 5 925
8 816 8 311 5 925 5 925
Non current
Department of Housing2 79 665 81 028
NT Home Ownership 289 790 179 244
Northern Territory Treasury Corporation 236 549 242 749
369 455 260 272 236 549 242 749
Total advances received 378 272 268 583 242 474 248 674
1 Advances received refers to loans motivated by policy considerations rather than for liquidity management purposes.2 The Department of Housing was formerly the Department of Housing, Local Government and Regional Services, which ceased to exist in 2012-13.
Note 27: Borrowings1
Current
Finance leases (a) 2 562 1 268 3 277 1 268
Loans 2 017 1 801 28 141 5 871
4 579 3 069 31 418 7 139
Non current
Finance leases (a) 112 837 84 656 120 158 84 656
Loans 2 582 792 2 054 808 4 572 359 3 813 563
2 695 629 2 139 465 4 692 517 3 898 219
Total borrowings 2 700 208 2 142 534 4 723 935 3 905 358
1 Refer also Note 36: Financial Instruments and Risk Management.
(a) Finance lease liabilities represent components relating to:
2012-13 2011-12
$000 $000
i) Darwin Convention Centre
Not later than one year 1 439 1 268
Later than one year and not later than five years 7 755 6 924
Later than five years 75 463 77 732
ii) Long term leases on Aboriginal land
Not later than one year 1 123
Later than one year and not later than five years 4 415
Later than five years 25 204
Total finance lease liabilities 115 399 85 924
77Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 28: Superannuation LiabilitiesCurrent 221 378 213 604 221 378 213 604
Non current 3 273 755 3 584 049 3 273 755 3 584 049
Total superannuation liabilities (a) 3 495 133 3 797 653 3 495 133 3 797 653
a) The Northern Territory Government Superannuation schemes comprise:
Legislative Assembly Members’ Superannuation (LAMS) 61 680 78 970 61 680 78 970
Commonwealth Superannuation Scheme (CSS) 1 999 736 2 213 175 1 999 736 2 213 175
Northern Territory Government and Public Authorities’ 964 670 1 004 390 964 670 1 004 390
Superannuation Scheme (NTGPASS)
Northern Territory Supplementary Superannuation Scheme (NTSSS) 259 524 273 410 259 524 273 410
Northern Territory Police Supplementary Benefit Scheme (NTPSBS) 57 800 63 800 57 800 63 800
Northern Territory Government Death and Invalidity Scheme (NTGDIS) 62 223 67 108 62 223 67 108
Statutory Schemes1 89 500 96 800 89 500 96 800
3 495 133 3 797 653 3 495 133 3 797 653
1 Statutory schemes comprise the superannuation liability for the Administrator and judges.
The values reported above are based on estimates of the size and timing of future benefit payments obtained through actuarial reviews conducted at three-year intervals that are updated on an annual basis. NTGPASS, NTSSS, Supreme Court Judges Pension Scheme, NTGDIS, Administrators Pension Scheme and the LAMS Fund are based on tri-annual reviews as at 30 June 2013. The NTPSBS and the CSS are based on tri-annual reviews conducted on 30 June 2012, however updated for 30 June 2013. The movement in liability in 2012-13 compared to 2011-12 is predominantly due to movement in 10-year bond rate from 3.1 per cent to 3.8 per cent.
Scheme InformationCommonwealth Superannuation SchemeThe benefits provided by the scheme include an employer-financed defined benefit and the members’ accumulation balances.
The amount of retirement benefit is the sum of:
• an employer-financed indexed pension;
• the accumulated value of productivity contributions (this can be converted to a non-indexed pension); and
• the accumulated value of member contributions.
The employer-financed indexed pension is calculated as a percentage of final salary and discounted for early retirement before the maximum retirement age. The CSS was closed on 1 October 1986 to all new Territory employees except police who were eligible to join up until 1 January 1988.
78
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 28 (continued)Northern Territory Government and Public Authorities’ Superannuation SchemeThe NTGPASS is a contributory lump sum superannuation scheme that was closed to new members from 10 August 1999. On retirement the following benefits are payable:
• the members accumulation account; plus
• an accrued employer component.
The accrued employer component is calculated as 2.5% x total benefit points x benefit salary.
Northern Territory Supplementary Superannuation SchemeThe NTSSS is a non-contributory lump sum superannuation scheme that was closed to new members from 10 August 1999. The standard benefit is 3 per cent of annual salary plus approved allowances on the last day of employment for each year of service since October 1988.
Northern Territory Government Death and Invalidity Scheme The scheme provides death and disablement cover to all public sector employees under Choice of Fund arrangements.
The NTPSBS, LAMS, Administrator and Judges Scheme are all pension based schemes.
30 June
2013
30 June
2012
% %
Key AssumptionsKey assumptions as at balance date and for following year expense:
Discount rate (gross of tax) 3.80 3.10
Salary rate 4.50 4.50
Expected return on scheme assets (net of tax) 6.00 6.00
Inflation (pensions) 2.50 2.50
Imputed cost of interest 3.10 5.30
Tax rate for employer contributions nil nil
30 June
2013
30 June
2012
$000 $000
Balance Sheet ResultsNet liability
Defined benefit obligation 3 550 955 3 846 746
Contributions tax liability
Total defined benefit obligations 3 550 955 3 846 746
Scheme assets - 55 822 - 49 093
Deficit/(surplus) 3 495 133 3 797 653
Unrecognised past service cost
Unrecognised net (gain)/loss
Net liability/(asset) 3 495 133 3 797 653
Funded Status Defined benefit obligations
Funded 55 822 49 093
Unfunded 3 495 133 3 797 653
Total 3 550 955 3 846 746
79Notes to the Financial Statements
Note 28 (continued) 30 June
2013
30 June
2012
$000 $000
Scheme Assets The LAMS Fund is the only scheme that holds assets and is therefore partly funded.
Fair value of scheme assets
Australian equities 17 326 15 539
Overseas equities 20 043 18 456
Fixed-interest securities 4 185 13 268
Property 14 268 1 830
Total 55 822 49 093
Movement in Net Liability Movements in net liabilities
Gross liability/(asset) in balance sheet at end of prior year 3 849 692 2 792 970
Plan assets - 52 039 - 53 777
3 797 653 2 739 193
Expense recognised in operating statement (including other economic flows) - 122 844 1 211 620
Actual employer contributions – benefits paid - 179 676 - 153 160
Net liability/(asset) in balance sheet at end of year 3 495 133 3 797 653
Operating ResultsExpense
Employer service cost 91 400 73 700
Interest cost 116 632 144 034
Return on assets - 2 946 - 3 044
Recognised actuarial (gains)/losses (included in other economic flows) - 327 930 996 930
Expense recognised - 122 844 1 211 620
80
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 28 (continued) 30 June
2013
30 June
2012
$000 $000
ReconciliationsFair value of scheme assets
Fair value scheme assets at end of prior year 49 093 50 733
Expected return on assets 2 946 3 044
Expected assets at year end 52 039 53 777
Actuarial gain/(loss) on assets 3 783 - 4 684
Fair value scheme assets at year end 55 822 49 093
Reconciliation of actuarial (gain)/loss
Unrecognised actuarial (gain)/loss at end of prior year - 8 018 - 12 702
Actuarial gain/(loss) on assets 3 783 - 4 684
Actuarial (gain)/loss on liabilities - 327 930 996 930
Less: Amount recognised during year in operating statement - 327 930 996 930
Unrecognised actuarial (gain)/loss at end of year - 11 801 - 8 0181
Expected return on assets2
Fair value scheme assets at end of prior year 49 093 50 733
Average expected assets 49 093 50 733
Assumed rate of return 6.00% 6.00%
Calculated expected return on assets 2 946 3 044
Actuarial (gain)/loss for year
Defined benefit obligations (net of tax, prior year assumptions) 3 849 633 2 805 008
Defined benefit obligations (net of tax, current assumptions) 3 495 133 3 797 653
Actuarial (gain)/loss for year due to assumptions - 354 500 992 645
Actuarial (gain)/loss for year due to experience 26 570 4 285
Actuarial (gain)/loss for year (included in other economic flows) - 327 930 996 9301
30 June
2013
30 June
2012
30 June
2011
$000 $000 $000
HistoryThe history of experience adjustments is as follows:
Total defined benefit obligation at year end 3 550 955 3 846 746 2 789 926
Actual assets at year end 55 822 49 093 50 733
Deficit/(surplus) 3 495 133 3 797 653 2 739 193
Experience adjustment on liabilities 26 570 4 2851 15 100
1 2011-12 restated due to presentation change adopted in 2012-13.2 The expected return on assets is 6 percent which is the long term return expected for the class of investments held.
81Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 29: Other Employee BenefitsCurrent
Accrued salaries 46 529 44 540 49 528 47 439
Recreation leave 249 917 246 665 279 817 274 799
Long service leave 167 734 162 188 185 444 179 181
Provision for employer superannuation contributions 17 757 16 159 17 851 16 239
481 936 469 552 532 641 517 658
Non current
Long service leave 80 265 75 403 85 442 79 769
80 265 75 403 85 442 79 769
Total other employee benefits 562 201 544 954 618 082 597 427
Note 30: PayablesCurrent
Accounts payable 53 156 72 922 169 815 179 642
Accrued expenses 86 258 73 534 109 240 107 455
Total payables 139 413 146 456 279 055 287 097
Note 31: Other LiabilitiesCurrent
Provisions:
Provision for current taxes 3 181 2 981 3 234 3 011
Provision for outstanding claims 3 065 3 065 68 224 78 984
Provision for workers compensation premiums 438 424 438 529
Other provisions 58 57 13 159 185
Unearned revenue 28 870 33 111 160 171 154 697
Workers compensation liability (a) 16 281 14 030 16 281 14 030
51 893 53 668 261 507 251 436
Non current
Provisions:
Provision for outstanding claims 6 266 2 904 368 323 398 104
Other provisions 32 786 28 537 32 958 28 899
Unearned revenue
Workers compensation liability (a) 83 046 67 036 83 046 67 036
122 098 98 477 484 327 494 039
Total other liabilities 173 991 152 145 745 834 745 475
a) Workers compensation liability comprises:Workers Rehabilitation and Compensation Act 91 090 72 130 91 090 72 130
COMCARE (Commonwealth Act) 8 237 8 936 8 237 8 936
99 327 81 066 99 327 81 066
82
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 31 (continued) General Government Total Public Sector
Outstanding
claims Current Taxes Other
Outstanding
claims Current Taxes Other
$000 $000 $000 $000 $000 $000
Movements in provisions during the year were as follows:
Brought forward as at 1 July 2012 5 969 2 981 29 018 477 088 3 011 29 613
Effect of changes in assumptions 4 249 - 37 976 4 249
Increase in claims incurred/recoveries anticipated over the year
2 797 101 813
Payments - 537 - 105 479
Other movements 1 102 200 16 1 102 222 12 694
Balance at 30 June 2013 9 331 3 181 33 283 436 547 3 234 46 555
The outstanding claims predominantly relate to general claims and HIH claims originating from the WorkHealth system at general government and at the total public sector level and also include outstanding claims held by TIO.
Current taxes provisions largely relates to fringe benefits tax.
Other provisions predominantly relate to the construction industry’s portable long service leave benefits.
83Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 32: ReservesReserves
Balance at the beginning of the financial year 6 397 352 6 107 549 5 534 224 5 228 976
Movements through the year 886 259 289 803 721 328 305 248
Balance at the end of the financial year (a) 7 283 611 6 397 352 6 255 552 5 534 224
a) Reserves comprise:Asset revaluation surplus
This reserve is used to record increments and decrements on the revaluation of non current assets. The reserve may also be adjusted as a result of asset impairment adjustments.
Balance at the beginning of the financial year 4 172 948 3 878 222 5 197 377 4 893 836
Revaluations increments/(decrements) 546 657 297 340 706 614 306 155
Transferred to/from asset realisation reserve - 2 615 - 2 615
Balance at end of the financial year 4 719 605 4 172 948 5 903 992 5 197 377
Asset realisation surplus
This reserve is used to record asset revaluation surplus amounts associated with revalued assets that have been derecognised.
Balance at the beginning of the financial year 335 482 332 868 335 482 332 868
Transferred to/from asset revaluation reserve 2 615 2 615
Balance at end of the financial year 335 482 335 482 335 482 335 482
Investments in public sector entities revaluation surplus
This reserve comprises the general government’s share of the asset revaluation surplus of investments in other sectors of government.
Balance at the beginning of the financial year 1 887 557 1 894 187
Movements in net assets of public sector entities 340 201 - 6 630
Balance at end of the financial year 2 227 758 1 887 557
Other reserves
Balance at the beginning of the financial year 1 365 2 272 1 365 2 272
Transferred to accumulated surplus/(deficit) - 599 - 908 14 713 - 908
Balance at end of the financial year 766 1 365 16 078 1 365
84
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
2012-13 2011-12
$000 $000
Note 33: Commitmentsa) Capital expenditure commitments Capital expenditure commitments represent contracted capital expenditure with non-public sector entities additional to the amounts reported in the financial statements. These contracts are expected to require payment as follows:
Not later than one year 409 715 461 195
Later than one year and not later than five years 20 521 105 931
Later than five years
Total capital expenditure commitments 430 236 567 126
b) Operating lease commitmentsFuture non-cancellable operating lease commitments are payable as follows:
Not later than one year 80 141 91 014
Later than one year and not later than five years 205 501 163 748
Later than five years 213 724 110 701
Total operating lease commitments 499 366 365 463
c) Other non cancellable contract commitmentsNot later than one year 420 008 447 991
Later than one year and not later than five years 1 270 242 1 890 872
Later than five years 5 095 759 5 111 629
Total other non cancellable contract commitments 6 786 009 7 450 492
The most significant portion relates to gas purchase commitments including take-or-pay obligations under a 25-year gas sale agreement.
85Notes to the Financial Statements
Note 34: Contingent Assets and LiabilitiesContingent Assets A contingent asset is a possible asset that arises from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or an asset that is not recognised because it is not probable that the future economic benefits embodied in the asset will eventuate, or the asset does not possess a cost or other value that can be measured reliably.
Under the Crimes (Victims Assistance) Act, the Territory is entitled to recover monies from an offender equal to the amount of assistance, costs and disbursements paid to victims under the Act. However, due to the circumstances of offenders including being imprisoned for lengthy terms, declared bankrupt or unable to be located, it is probable that a significant proportion of the amounts owed are uncollectable. Therefore any contingent asset cannot be reliably quantified.
For disclosure of a contingent asset associated with the granting of a concession to Darwin Cove Convention Centre Pty Ltd, refer to the Property and Business Services section under Unquantifiable Contingent Liabilities.
Contingent LiabilitiesA contingent liability is a liability that the Government may be called on to meet at some future date if a specified event should occur. Contingent liabilities of the Territory may arise out of a range of circumstances, the most common of which are indemnities and guarantees contained in agreements executed by the Territory. Contingent liabilities may also arise as a result of undertakings made by the Territory or as a result of legislation containing a guarantee or indemnity.
The Treasurer’s Directions (G2.5 – Guarantees and Indemnities) states that:
• a guarantee is an undertaking on the part of the Territory to be responsible for another’s debt or contractual performance if that other person does not pay or perform; and
• an indemnity is a written undertaking to compensate, protect or insure another person or entity against future financial loss, damage or liability.
Agencies are required to maintain a register of contingent liabilities in accordance with the Treasurer’s Directions. In relation to the reporting of contingent liabilities, the Treasurer has determined a materiality threshold of $5 million.
Net present value amounts referred to in this Schedule are calculated based on a discount factor of 3.8 per cent per annum. The discount rate is based on the published 10-year bond rate.
Details of estimated amounts of material contingent liabilities as at 30 June 2013 resulting from guarantees or indemnities granted by the Territory are presented as follows:
Material Quantifiable Contingent LiabilitiesEstimated Quantifiable
Contingent Liability as at
30 June 2013
Estimated Quantifiable
Contingent Liability as at
30 June 2012
$M NPV $M NPV
Pine Creek/McArthur River electricity purchase agreements
181 312
Public Trustee Common Fund 25 22
1 Future values discounted at a nominal 3.8 per cent discount rate.2 Future values discounted at a nominal 3.1 per cent discount rate.
86
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 34 (continued)Public Trustee Common Fund 1 is reported totalling $25 million as at 30 June 2013 and is government guaranteed and audited at time of publication.
As at the date of the report, no transaction or event of a material nature has occurred that would crystallise the contingent liabilities reported in this note.
Quantifiable Contingent LiabilitiesElectricity, Gas and Water SupplyThese contingent liabilities result from arrangements for the purchase and transportation of gas, and the purchase and sale of electricity by and for the Power and Water Corporation (PWC). Material contingent liabilities relating to these arrangements are reported below.
PWC has been a government owned corporation (GOC) since 1 July 2002. Under the Government Owned Corporations Act, a GOC is not within the shield of the Crown and the obligations of a GOC are not guaranteed by the Territory except where the Treasurer specifically agrees to this. The following Territory commitments were given prior to PWC (formerly the Power and Water Authority) becoming a GOC and will remain in place until the relevant contractual arrangements cease.
Electricity and Gas Supply to Pine Creek and McArthur RiverPWC has entered into agreements for the provision of gas and wholesale supply of electricity for the Pine Creek region and the McArthur River Mine. The agreement for the supply of gas contains three indemnities relating to the PWC supplying nonconforming gas.
Although the Corporation’s total contingent liability is unquantifiable, a major portion of the value of the contingent liability is quantifiable, being the cost of overhauling turbine machinery, owned by the electricity producers, damaged by the provision of nonconforming gas. The Territory’s maximum exposure is equivalent to the net present value of lease and operating charges under the purchase agreements.
Under the PWC’s current operating practices, the contingent events relating to each of the above indemnities are within the Corporation’s control and are expected to be avoidable.
Statutory Contingent LiabilitiesPublic Trustee ActUnder section 97 of the Public Trustee Act, the Treasurer indemnifies the Common Fund against any deficiencies in money available to meet claims on it. The Common Fund is a repository for all moneys received by the Public Trustee on behalf of estates, trusts or persons, and earns interest. Money to the credit of the Common Fund is invested according to the directions issued by an Investment Board.
Although a material statutory contingent liability exists, the prospect of this contingent liability being called upon is considered low.
Unquantifiable Contingent LiabilitiesUnquantifiable contingent liabilities exist which could pose a risk to the Government’s financial projections.
TransportThe Territory has contingent liabilities in this category that relate to indemnities and guarantees that have been provided in support of the Adelaide to Darwin railway project.
The AustralAsia Railway Corporation (AARC) and the Northern Territory and South Australian governments have entered into a concession arrangement for the Adelaide to Darwin railway on a build, own, operate and transfer-back basis.
87Notes to the Financial Statements
Note 34 (continued)Unquantifiable contingent liabilities of the Territory in relation to the Adelaide to Darwin railway project relate to the following:
• joint guarantee of the obligations of the AARC; and
• indemnities granted in relation to title over the railway corridor (title is secure but the indemnity continues).
The Darwin Port Corporation has leased facilities at the Darwin Port to the concession holder, interfacing the port and the railway. There are contingent liabilities which arise out of the performance of the facilities.
AARC and the governments have comprehensive risk management procedures in place for all events that would give rise to liabilities.
The Territory Government has entered into agreements for the relocation of fuel terminals from near the Darwin central business district to the East Arm industrial estate. The agreements provide for certain unquantifiable contingent liabilities to be provided to the developer of the new fuel terminal and an oil company. Government has put in place comprehensive risk management processes to address potential exposure.
The Darwin Port Corporation (DPC) has entered into an agreement that indemnifies the other party against any claim, loss, damage, liability, cost and expense that may be incurred or sustained by Shell arising out of any breach of DPC’s obligation under the agreement or in connection with any failure or defect in the integrity of the bunker lines.
The Territory has provided an indemnity to DPC in relation to certain remedial works at East Arm Port. The indemnity covers third party claims which may be made against DPC as well as rectification of damage to the wharf or other DPC property caused by the carrying out of the remedial works. Comprehensive risk management procedures are in place to minimise risk exposure to the Territory.
Health and Community ServicesThe Territory has granted a series of health-related indemnities for various purposes including indemnities to specialist medical practitioners employed or undertaking work in public hospitals, indemnities provided to medical professionals requested to give expert advice on inquiries before the Medical Board and indemnities to midwives.
Although the risks associated with health indemnities are potentially high, the beneficiaries of the indemnities are highly trained and qualified professionals. The indemnities generally cannot be called upon where there is wilful or gross misconduct on the part of the beneficiary.
There are no reportable contingent liabilities in this category.
Government AdministrationWhere the Territory has invited the participation of private sector persons and Government officers on boards of Government owned or funded companies, the Territory may grant indemnities to the board members to cover them for any losses which may result from good faith actions.
These indemnities are generally consistent with cover available through Directors and Officers Insurance and the policy of issuing an indemnity rather than purchasing commercial insurance is in line with the Government’s self insurance arrangements.
88
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 34 (continued)In relation to corporations established in accordance with the Government Owned Corporations Act (GOC Act) an indemnity given by the Territory to board members is limited to actions arising from compliance with a direction issued by the shareholding minister or the portfolio minister pursuant to the GOC Act.
The resulting contingent liabilities are considered low risk as board members are professionals selected based on their expertise and knowledge. Further the indemnities are restricted to good faith actions only. These contingent liabilities are unquantifiable.
Indemnities are also granted to the Commonwealth and other entities involved in funding or sponsoring activities and programs initiated or undertaken by the Territory. Under the indemnities, the Territory generally accepts liability for damage or losses occurring as a result of the activities or programs and acknowledges that, while the Commonwealth or another party has contributed financially or provided in-kind support, the Territory is ultimately liable for the consequences of the activity or program.
Although the resulting contingent liability may, depending on the activity undertaken, not always be low risk, the Territory’s financial exposure is no greater than would have been the case without funding or sponsorship assistance. These contingent liabilities are unquantifiable.
The Territory was engaged in a number of legal proceedings and disputes at 30 June 2013. Due to the wide variety and nature of these cases and the uncertainty of any potential liability, no value can be attributed to these cases. In addition, the attribution of value to those cases also has the potential to prejudice the outcome of the proceedings and disputes.
The Government has indemnified private sector insurers who provide workers compensation insurance in the Territory. The indemnity covers insurers for losses which arise as a result of acts of terrorism.
Except for the terrorism indemnity, which is unquantifiable, there are no reportable contingent liabilities in this category.
Secure FacilitiesThe Territory has contingent liabilities in this category that relate to indemnities and guarantees that have been provided in support of the new secure facilities project that will be conducted under a Public Private Partnership (PPP) agreement.
The Territory has indemnified the proponent for losses arising from uninsurable risks. Except for this indemnity, which is unquantifiable, there are no other reportable contingent liabilities in this category.
FinanceThe Territory’s financial management framework is underpinned by centralised banking arrangements. The sole provider of banking-related services has been granted indemnities under the whole of government banking contract. These indemnities are considered not to involve significant risk.
There are no reportable contingent liabilities in this category.
Property and Business ServicesAgreements for leases or licences of property, plant or equipment generally contain standard indemnity provisions, similar to those commonly found in commercial leases, covering the lessor or licensor for any losses suffered as a result of the lease or licence arrangement. The contingent liabilities resulting from the indemnities are unquantifiable.
89Notes to the Financial Statements
Note 34 (continued)The granting of a concession to Darwin Cove Convention Centre Pty Ltd, which has been described in Note 1(n) gives rise to contingent liabilities associated with:
• discriminatory changes in law;
• environmental clean-up costs;
• incentive payments to the Operator if performance targets established for the Centre are exceeded; and
• negotiated payments to the Operator in the early years of the Centre’s operation.
For the categories listed above, neither the probability nor the amount that the Territory might be called upon to pay at some future date can be determined reliably. As a result these items are regarded as contingent liabilities, where the existence of an actual liability in the future will be confirmed only by the occurrence of uncertain future events that lie outside the control of the Territory.
A contingent asset also arises as a consequence of the concession arrangement. As described in Note 1(n), a Territory Availability Payment (TAP) is recognised as a liability on the General Government Sector and Whole of Government Balance Sheets. However, the Territory has the right to recover up to 75 per cent of that liability if the Operator should not achieve certain performance criteria. Because neither the probability of such a recovery nor the amount that might be recovered can be determined reliably, the part of the TAP that might be subject to abatement is classified as a contingent asset.
90
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
General Government Total Public Sector
2012-13 2011-12 2012-13 2011-12
$000 $000 $000 $000
Note 35: Cash Flow ReconciliationOperating result - 25 999 - 856 914 145 346 - 879 641
less: Other economic flows – included in operating result - 75 125 1 032 394 - 146 045 1 045 311
Gain (loss) on sale of non financial assets - 10 777 - 5 645 - 10 900 - 8 072
Bad and doubtful debt 6 220 2 877 10 584 4 453
Net actuarial gains (losses) - 322 950 1 007 215 - 360 926 1 071 961
Revaluations and asset impairment 252 382 27 946 215 197 - 23 032
equals: Net operating balance - 101 124 175 480 - 699 165 671
less: Non cash items included in net operating balance
Depreciation and amortisation 287 230 232 422 453 422 380 533
Changes in provisions 62 040 139 968 60 096 139 595
Changes in inventories 2 258 8 364
Assets acquired below fair value - 757 - 607 - 26 347 - 23 796
Assets donated 66 837 5 560 9 036 5 691
Gains and losses - 1 - 22 - 134
Write offs 23 2 23 2
less: Changes in assets and liabilities
Change in inventories 1 790 18 14 423 3 547
Increase in payables and borrowings - 250 023 - 297 173 - 274 513 - 312 151
Increase in receivables and investments 238 205 259 519 196 193 271 519
equals: Cash flows from operating activities 304 220 515 188 433 869 638 839
For the purposes of the Cash Flow Statement, cash includes cash at bank, cash on hand, and cash on call or short-term deposit. A reconciliation of closing cash balances to the statement of cash flows for the total public sector is as below:
Cash at beginning of year 518 990 319 860
Net increase/(decrease) in cash held as per Cash Flow Statement 34 726 199 130
Cash at end of year 553 717 518 990
91Notes to the Financial Statements
Note 36: Financial Instruments and Risk Managementa) Financial Risk Management Objectives and PoliciesExposure to financial risk arises in the normal course of government activity. The Territory’s risk management strategy is incorporated into the Territory’s fiscal strategy. The fiscal strategy provides a sound financial management framework to ensure sustainable service provision, continued capital investment, reducing debt levels and a competitive tax environment that supports economic growth. Further reference to the fiscal strategy can be found in the Overview chapter of this Treasurer’s Annual Financial Report and the 2013-14 Budget Paper No. 2.
The Central Holding Authority (CHA), Northern Territory Treasury Corporation (NTTC) and Territory Insurance Office (TIO) are the entities that hold complex financial instruments. NTTC manages the investments and borrowings of the CHA and reports to the NTTC Advisory Board. TIO have their own risk management policies and report to their Boards.
b) Categorisation of Financial InstrumentsThe following table discloses the Territory’s financial assets and financial liabilities by category.
2012-13 2011-12
$000 $000
Financial assets
Cash and deposits 553 717 518 990
Fair value through profit or loss (FVTPL):
Held for trading 758 662 682 501
Designated as at FVTPL 579 056 496 746
Held-to-maturity investments 602 971 467 239
Loans and receivables 1 005 728 898 797
Available-for-sale financial assets 54 437 20 283
Financial liabilities
Fair value through profit or loss (FVTPL):
Held for trading 278 141
Designated as at FVTPL 677 370 700 7551
Amortised cost 4 966 684 4 154 032
1 2011-12 restated to align with 2012-13 presentation.
c) Market RiskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. It comprises interest rate, price risk and currency risk.
i) Interest Rate Risk Interest rate risk is the risk of financial loss and/or increased cost due to adverse movements in the values of financial assets and liabilities as a result of changes in interest rates. The interest rate exposure arises from unmatched maturity patterns and to manage this exposure and for hedging purposes certain Territory controlled entities enter into interest rate swap agreements.
Interest rate swaps is a transfer of interest rate obligations, where the agreement is to exchange the difference between fixed and floating rate interest amounts calculated on agreed notional principal amounts. Such contracts enable the Territory to mitigate the risk of changing interest rates on the fair value of issued fixed rate debt held and the cash flow exposures on the issued variable rate debt held. The notional principal amounts represent the contract or face value of the swap. The notional amounts do not represent the amount exchanged by the parties to the contract. The Territory has no interest rate swap agreements at the end of the 2012-13 financial year (2011-12: $3.1 million).
92
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 36 (continued)Sensitivity AnalysisAssuming the financial assets and liabilities at 30 June 2013 were to remain until maturity or settlement without any action by the Territory to alter the resulting interest rate risk exposure, a change in the variable rates of 100 basis points (1 per cent) at reporting date would have the following effect on the Territory’s profit or loss and equity.
Profit or Loss and Equity
100 Basis
Points
Increase
100 Basis
Points
Decrease
$000 $000
30 June 2013
Financial assets – cash and deposit 5 537 - 5 537
Financial assets – receivable loans 2 261 - 2 261
Financial liabilities – borrowings
Net sensitivity 7 798 - 7 798
30 June 2012
Financial assets – cash and deposit 5 190 - 5 190
Financial assets – receivable loans 1 643 - 1 643
Financial liabilities – borrowings
Net sensitivity 6 833 - 6 833
ii) Price Risk The Territory is exposed to price risk as the Territory holds units in unit trusts. Price risk arises due to the changes in the market value of the units as advised by respective fund managers.
Price risk is managed through the use of strictly monitored allocation limits for units held in each class of managed funds. The Territory invests in a diverse range of managed funds thereby limiting the impact of any one underlying variable affecting unit prices.
Returns achieved by appointed fund managers are continuously monitored and compared to returns earned by a suitable peer group of other professional fund managers.
Sensitivity AnalysisThe analysis below demonstrates the impact of a movement in prices of units held in unlisted unit trusts. It is assumed that any relevant price change occurs as at reporting date.
93Notes to the Financial Statements
Note 36 (continued)Price Risk Sensitivity Analysis
2012-13 2011-12
Change
in Value
Impact on
Profit or Loss
and Equity
Impact on
Profit or Loss
and Equity
% $000 $000
Upside
Equities 10 55 291 41 887
Property securities 10 9 142 6 826
Interest bearing 1 1 847 2 635
66 280 51 348
Downside
Equities - 10 - 55 291 - 41 887
Property securities - 10 - 9 142 - 6 826
Interest bearing - 1 - 1 847 - 2 635
- 66 280 - 51 348
iii) Currency RiskCurrency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Foreign Exchange RiskForeign exchange risk is the risk of financial loss due to adverse movements in foreign exchange rates. The Territory’s exposure to foreign exchange risk arises when certain borrowings are denominated in foreign currencies or where the Territory has transactional currency exposures arising from purchases in a foreign currency. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts. There were no foreign exchange contracts at balance date in 2011-12 and 2012-13.
BorrowingsTo remove the currency exposure on borrowings they are fully hedged by way of cross currency interest rate swaps at initiation of the borrowing transaction. Cross currency interest rate swaps allow the Territory to raise long-term borrowings in foreign currencies and effectively swap them into Australian dollar fixed interest rates. All the cross currency interest rate swaps are designated as cash flow hedges.
By using cross currency interest rate swap contracts, the Territory agrees to exchange specified principal and interest foreign currency amounts at an agreed future date at a specified exchange rate, thereby enabling the Territory to mitigate the risk of adverse movements in foreign exchange rates. The quantum and maturity profile of the cross currency interest rate swaps are reflected in the Liquidity and Interest rate table shown under Liquidity Risk below. There were no cross currency interest rate swaps contracts at balance date in 2011-12 and 2012-13.
d) Credit RiskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Territory. The Territory has adopted a policy of only dealing with credit worthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults.
94
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 36 (continued)The Territory’s maximum exposure to credit risk is the carrying amount of financial assets recorded in the financial statements, net of any allowances for losses, without taking account of the value of any collateral or other security obtained.
i) ReceivablesIn relation to trade receivables, the Territory has a minimal concentration of credit risk as it undertakes transactions with a large number of customers and counterparties. The Territory is not materially exposed to any individual customer. There are no major concentrations of credit risk on service debtors due from customers within particular industries. Receivable balances are monitored on an ongoing basis to ensure that exposure to bad debts is not significant. A reconciliation and aging analysis of receivables is presented below.
2012-13
Aging of
Receivables1
Aging of
Impaired
Receivables2
Net
Receivables
$000 $000 $000
Not overdue 216 848 394 216 454
Overdue for less than 30 days 6 366 648 5 718
Overdue for 30 to 60 days 6 831 364 6 467
Overdue for more than 60 days 12 353 20 569 - 8 216
Total 242 398 21 975 220 423
Reconciliation of the allowance for impairment losses
Opening 14 775
Written off during the year - 3 393
Recovered during the year 508
Increase/(decrease) in allowance recognised in profit or loss 10 085
Total 21 975
2011-12
Not overdue 162 638 162 638
Overdue for less than 30 days 3 802 107 3 695
Overdue for 30 to 60 days 3 172 215 2 957
Overdue for more than 60 days 34 681 14 368 20 313
Total 204 293 14 690 189 603
Reconciliation of the allowance for impairment losses
Opening 13 944
Written off during the year - 2 766
Recovered during the year - 51
Increase/(decrease) in allowance recognised in profit or loss 3 563
Total 14 6901 Aging analysis is presented at the total public sector, which includes service receivables of Power and Water Corporation that are
generally 21 day terms. This also includes premium insurance receivables of Territory Insurance Office.2 The allowance for impairment losses represents the amount of receivables that are likely to be uncollectable and are considered
doubtful. The collectability of receivables is reviewed regularly, and part of this process is to assess, at reporting date, whether an allowance for impairment loss is required.
95Notes to the Financial Statements
Note 36 (continued)ii) Advances PaidAdvances paid refer to loans motivated by policy considerations rather than for liquidity management purposes. At reporting date there were no significant concentrations of credit risk.
iii) LoansLoans are mainly those provided by the Territory Insurance Office (TIO). The credit risk is largely associated with its retail loan assets including securitised loans which are managed through established credit policies with regular monitoring. At the reporting date there were no significant concentrations of credit risk.
All loan arrears are managed on a daily basis. The securitisation loans are originated by TIO but are then assigned to an external entity for cash consideration, but are still recognised in TIO’s balance sheet. All cash flows of the loan are passed on to the external entity. TIO takes out mortgage insurance contracts for all loans under the securitisation program to cover the risk of borrowers defaulting on their loan repayments. Although the credit risk associated with these loans is insured with a third party, in some exceptional cases there maybe a residual amount which the Territory is unable to seek recovery for under the policy. The maturity analyses of these loans are embedded in the liquidity tables on page 96.
iv) SecuritiesThe Territory’s dealings in physical instruments and/or derivative financial instruments are transacted only with counterparties possessing strong credit rating criteria as determined by the Standard and Poor’s Rating Group. In addition, derivative financial instruments are only transacted with counterparties that have signed an International Swap and Derivatives Association Master Agreement with the Territory.
e) Liquidity RiskLiquidity risk is the risk of financial loss and/or increased costs due to unanticipated events or errors in cash flow forecasts which result in additional borrowing costs, reduced investment income or an inability to meet financial or operational commitments as they fall due. This is managed by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.
Liquidity risk is managed for day-to-day operations, the short-to-medium term and for the long term. NTTC predominantly assists the Territory with the management of liquidity risk on a day to day basis, using cash flow forecasts and communication with other controlled entities that advise NTTC of the occurrence of unusually large payments. This monitoring allows the Territory to identify potential liquidity issues and also assists in projecting potential investment opportunities.
The Territory’s Budget is a five-year projection of the Territory’s financial position, which incorporates the medium-term fiscal objectives and financial targets. The fiscal strategy assists in protecting against a liquidity problem in the future.
The following tables detail the contractual maturity for the Territory’s remaining financial assets and liabilities.
96
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 36 (continued) Fixed Interest Rate
2012-13 LiquidityVariable
Interest
Less than
a Year
1 to 5
Years
More than
5 Years
Non Interest
Bearing Total
Weighted
Average
$000 $000 $000 $000 $000 $000 %
Cash and deposits 448 084 104 821 812 553 717 2.50
Receivables 320 201 320 201
Advances 224 974 1 109 226 083 6.77
Investments loans and placements 1 148 635 109 113 255 899 26 198 1 539 845
Unit trust investments1 917 413 917 413
Derivative financial assets
Interest rate swaps
Other financial assets
Total financial assets 1 590 471 1 253 456 109 113 255 899 348 320 3 557 259
Deposits held 98 851 372 155 36 549 507 555
Payables 169 815 169 815
Advances 242 749 242 749 4.66
Borrowings 860 898 2 712 844 2 184 925 25 000 5 783 667
Finance lease liabilities 1 439 7 755 75 463 38 777 123 434
Derivative financial liabilities
Interest rate swaps 79 - 29 50
Foreign currency contracts
Total financial liabilities 98 851 1 234 571 2 720 570 2 503 137 270 141 6 827 270
1 Unit Trust Investments include a mix of interest bearing investments and non-interest-bearing investments (equity and securities). Refer to Price Risk for further analysis.
2011-12 LiquidityCash and deposits 406 123 112 269 598 518 990 3.5
Receivables 274 745 274 745
Advances 163 288 1 034 164 322 7.0
Investments loans and placements1 984 900 73 501 207 279 25 423 1 291 103
Unit trust investments2 838 257 838 257
Derivative financial assets
Interest rate swaps 357 357
Other financial assets
Total financial assets 1 407 668 1 097 169 73 501 207 279 302 157 3 087 774
Deposits held 91 747 394 026 16 247 16 520 518 540
Payables 182 215 182 215
Advances 248 674 248 674 4.66
Borrowings 662 885 2 553 401 1 510 564 25 000 4 751 850
Finance lease liabilities 1 148 6 341 78 435 85 924
Derivative financial liabilities
Interest rate swaps - 22 249 227
Foreign currency contracts
Total financial liabilities 91 747 1 058 037 2 576 238 1 837 673 223 735 5 787 4301 2011-12 restated to align with 2012-13 presentation.2 Unit Trust Investments include a mix of interest bearing investments and non-interest-bearing investments (equity and securities). Refer to Price Risk
for further analysis.
97Notes to the Financial Statements
Note 36 (continued)f) Net Fair ValueThe following table discloses the fair value of those financial instruments whose fair value is not equal to the carrying amount. The fair values of the financial instruments are grouped into level 1 to 3 based on the degree to which fair value is observable:
Level 1 – derived from quoted prices in active markets for identical assets or liabilities.
Level 2 – derived from inputs other than quoted prices that are observable directly or indirectly.
Level 3 – derived from inputs not based on observable market data.
2012-13Total Carrying
Amount
Net Fair
Value Level 1
Net Fair
Value Level 2
Net Fair
Value Level 3
Net Fair
Value Total
$000 $000 $000 $000 $000
Financial Liabilities
Fixed interest securities 4 379 399 4 612 636 4 612 636
Floating rate notes
Promissory notes
Retail market
Territory bonds 107 569 112 800 112 800
Migration linked bonds 1 750 1 835 1 835
Commonwealth
Credit foncier loans 242 749 233 843 233 843
Finance lease 84 657 94 121 94 121
Total 4 816 124 5 055 235 5 055 235
2011-121
Financial Assets
Local government authorities – credit foncier loans
361 383 383
Total 361 383 383
Financial Liabilities
Fixed interest securities 3 574 854 3 854 628 3 854 628
Floating rate notes
Promissory notes 49 759 49 751 49 751
Retail market
Territory bonds 118 425 124 303 124 303
Migration linked bonds 2 500 2 614 2 614
Commonwealth
Credit foncier loans 248 674 258 362 258 362
Finance lease 85 924 96 243 96 243
Total 4 080 136 4 385 901 4 385 901
1 2011-12 presentation restated to represent items where fair value is not equal to the carrying amount.
98
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 36 (continued)The fair values of financial instruments disclosed above are related to NTTC, TIO and Darwin Waterfront Corporation. There are no transfers between levels during 2013.
Fair values of financial instruments are determined on the following basis:
• the fair value of cash and non-interest bearing monetary financial assets and liabilities approximate their carrying value, which is defined as their historical cost;
• the fair value of other monetary financial assets and liabilities is based on discounting the expected future cash flows by applying current market interest rates for assets and liabilities with similar risk profiles. The market rates are then used to discount the expected future cash flows arising from the financial assets and liabilities to their present value. The margins applied to the current market interest rates on loans and borrowings take into account credit quality and liquidity considerations; and
• the fair value of derivative financial instruments are derived using current market yields and exchange rates appropriate to the instrument.
Note 37: Events Subsequent to Reporting DateIn 2005, the Northern Territory Government commenced legal action against a third party regarding a breach of contract in respect of design and construction of redevelopment works concerning a major project.
In July 2013, a settlement agreement was entered into between the Northern Territory Government and the third party for the sum of $24 million.
Note 38: Remuneration of AuditorsWith the exception of a small number of consolidation entities, audit services within the reporting entity are provided by the Auditor-General and are predominantly funded through appropriation. The total cost of these services totalled $3.9 million (2012: $3.8 million).
99Notes to the Financial Statements
Note 39: Write-Offs, Postponements, Waivers, Ex Gratia Payments and Gifts – General Government Sector1
2012-13 No. 2011-12 No.
$000 $000
1 Write-offs, postponements and waivers under the Financial Management Act
1 817 470
Amounts written off, postponed, waived by Treasurer 1 044 515 185 8
Irrecoverable money written off 892 377 185 8
Crimes compensation debts
Taxation debts
Employee debts 9 1
Government services debts 834 373 30 4
Other 49 3 155 4
Losses or deficiencies of money written off
Waiver of right to receive or recover money 152 138
Crimes compensation debts
Taxation debts
Government services debts 152 138
Other
Amounts written off, postponed, waived by delegates 773 1 414 285 857
Irrecoverable money written off 645 1 268 224 566
Losses or deficiencies of money written off 7 2 6
Value of public property written off 128 139 59 285
Waiver of right to receive or recover money
2 Gifts2 9 027 5 298 7
Office furniture 1 4 1
Computer and other electronic equipment 2
Vehicles 28 2 75 1
Other 8 999 2 219 3
3 Ex-gratia payments 813 5 534 4
4 Write-offs, postponements and waivers authorised under other legislation
41 3 59 7
1 Details of write-offs, postponements and waivers approved under the Financial Management Act are reported by agencies in their financial statements.
2 Agency valuations at time of gifting. Where one recipient has received more than one gift covering various categories the gift has been counted in the category which has the highest value item.
100
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 40: Details of Controlled Entities at Reporting DateTotal Public Sector
Non Financial Public SectorGeneral GovernmentAboriginal Areas Protection AuthorityAuditor-General’s OfficeAustralAsia Railway Corporation1
Batchelor Institute of Indigenous Tertiary Education1
Central Australian Hospital Network2
Central Holding AuthorityConstruction Division2
Darwin Waterfront Corporation1
Data Centre Services2
Department of Arts and MuseumsDepartment of the Attorney-General and JusticeDepartment of BusinessDepartment of the Chief MinisterDepartment of Corporate and Information ServicesDepartment of Correctional ServicesDepartment of Education and Children’s ServicesDepartment of Health Department of HousingDepartment of InfrastructureDepartment of Land Resource Management Department of Lands, Planning and the EnvironmentDepartment of the Legislative AssemblyDepartment of Local GovernmentDepartment of Mines and EnergyDepartment of Primary Industry and FisheriesDepartment of Regional Development and Women’s PolicyDepartment of Sport and RecreationDepartment of TransportDepartment of Treasury and Finance Desert Knowledge Australia1
Government Printing Office2
Nominal Insurer’s Fund1
Northern Territory Electoral CommissionNorthern Territory Legal Aid Commission1
Northern Territory Major Events Company Pty Ltd1
Northern Territory Police, Fire and Emergency ServicesNT Build Statutory Corporation1
NT Fleet2
NT Home Ownership2
Office of Children and FamiliesOffice of the Commissioner for Public EmploymentOmbudsman’s OfficeParks and Wildlife Commission of the Northern TerritoryTerritory Discoveries2
Territory Wildlife Parks2
Top End Hospital Network2
Tourism NT
Public Non Financial Corporations Darwin Bus Service2
Darwin Port Corporation2
Indigenous Essential Services Pty Ltd1
Land Development Corporation2
Power and Water Corporation1,3
Public Financial Corporations Northern Territory Treasury Corporation2
Territory Insurance Office1
1 Non budget sector entity.2 Government business division.3 Government owned corporation.
101Notes to the Financial Statements
Note 41 (a) – General Government Sector Budgetary Information
General Government Sector Comprehensive Operating Statement
2012-13
Actual
(Audited)
2012-13
Original
Budget
(Unaudited) Variance Note
$000 $000 $000
REVENUE
Taxation revenue 490 964 409 193 81 771 1
Current grants 3 608 405 3 474 483 133 922 2
Capital grants 170 760 208 992 - 38 232 2
Sales of goods and services 253 342 197 077 56 265 3
Interest income 57 612 58 778 - 1 166
Dividend and income tax equivalent income 40 994 49 280 - 8 286 4
Other 166 465 152 620 13 845 5
TOTAL REVENUE 4 788 542 4 550 423 238 119
less EXPENSES
Employee benefits expense 1 894 344 1 788 665 105 679 6
Superannuation expenses
Superannuation interest cost 113 686 122 007 - 8 321 7
Other superannuation expenses 207 486 177 449 30 037 7
Depreciation and amortisation 287 230 226 102 61 128 8
Other operating expenses 1 132 206 1 212 208 - 80 002 9
Interest expenses 184 095 182 472 1 623
Other property expenses 1 701 1 701
Current grants 767 884 796 843 - 28 959 10
Capital grants 133 759 65 852 67 907 11
Subsidies and personal benefit payments 167 275 141 720 25 555 12
TOTAL EXPENSES 4 889 666 4 713 318 176 348
equals NET OPERATING BALANCE - 101 124 - 162 895 61 771
plus Other economic flows – included in operating result 75 125 245 895 - 170 770 13
equals OPERATING RESULT - 25 999 83 000 - 108 999
plus Other economic flows – other comprehensive income 886 635 117 011 769 624 14
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
860 636 200 011 660 625
NET OPERATING BALANCE - 101 124 - 162 895 61 771
less Net acquisition of non financial assets
Purchases of non financial assets 633 546 654 659 - 21 113 15
Sales of non financial assets - 58 075 - 78 372 20 297 16
less Depreciation 287 230 226 102 61 128
plus Change in inventories 1 439 1 439
plus Other movements in non financial assets - 33 948 - 23 313 - 10 635
equals Total net acquisition of non financial assets 255 733 326 872 - 71 139
equals FISCAL BALANCE - 356 856 - 489 767 132 911
102
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
41 (a) Notes: The following note descriptions relate to variances greater than 10 per cent or $5 million or where multiple significant variances have occurred.
1. The $81.8 million increase in taxation revenue from the May 2012 Budget reflects:
– increased payroll tax collections as a result of employment and wages growth particularly among the larger employers forming part of the Territory’s payroll tax base;
– increased stamp duties on financial and capital transactions reflecting the recovery in the number of residential and commercial transactions along with an increase in the average value of those transactions;
– increased taxes on gambling due to the increase in collection of lotteries taxes;
– increased stamp duty collections on insurance reflecting strong growth in insurance premiums; and
– increased motor vehicle registration fees due to increased new motor vehicle sales and light vehicle registration fees.
2. Current and capital grants have increased by $95.7 million since the May 2012 Budget due to:
– increased GST revenue of $88.7 million as a result of a higher Territory share of the national population following the 2011 Census; and
– increased other Commonwealth funding of $29 million primarily relating to additional funding received for Critical Infrastructure Projects in Remote Communities, Municipal and Essential Services Jobs Package, Health and Hospital Services and Remote Indigenous Housing; offset by
– a reduction in National Partnership funding of $22.4 million largely as a result of revised timing of funding for education, health and roads.
3. Sales of goods and services have increased by $56.3 million across various agencies including:
– higher licence fees of $10.6 million received by Licensing, Regulation and Alcohol Strategy and NT Worksafe;
– increase in rent collections of $13.7 million for remote and government employee housing dwellings; and
– increased growth in project based business revenue of $9.1 million in delivery of tertiary programs in Northern Territory communities.
4. Dividend and income tax equivalents are lower than budgeted due to lower dividends paid by trading entities and adjustments to the tax equivalent calculation on unrealised gains on long term leased land held by Land Development Corporation.
5. Other revenue has increased by $13.8 million largely as a result of a higher volume of fines revenue from police-issued infringement notices together with increased miscellaneous income across a number of agencies. This is offset by a decrease in mining royalty collections as a result of lower profits due to exchange rates and lower commodity prices.
6. Employee expenses have increased by $105.7 million largely due to a reclassification of expenditure from operating expenses to employee expenses.
7. Superannuation expenses have increased by $21.7 million in line with employee expenditure offset by the movement in nominal interest on superannuation following an actuarial review.
8. Depreciation and amortisation has increased by $61.1 million largely related to Remote Indigenous Housing combined with increased values of property, plant and equipment.
9. Other operating expenses have decreased by $80 million due to a reclassification of expenditure from operating expenses to employee expenses, offset by increased property management costs and repairs and maintenance across agencies.
10. Current grants have decreased by $29 million predominantly due to a reclassification from current grants to subsidies, offset by increased expenditure related to the First Home Owner Grant and expenditure associated with Commonwealth COPE funded Municipal and Essential Services Jobs Package.
11. Capital grants have increased by $67.9 million largely due to increased projects under Remote Service Delivery including utility infrastructure assets transferred to the Indigenous Essential Services Pty Ltd under the Remote Indigenous Housing Program and assets gifted to the Catholic Education Office.
12. Subsidies and personal benefit payments have increased by $25.6 million largely as a result of reclassifications between current grants and current subsidies related to child protection providers and out-of-home care and the Back to School Bonus program, offset by a reduction in Commonwealth funding for the National Disability SPP.
103Notes to the Financial Statements
13. Predominantly relates to repairs and maintenance undertaken as part of the Remote Indigenous Housing program that was previously recognised as works in progress. This is partially offset by the effect of the movement between years in the 10-year bond rate used in valuing the Territory’s superannuation liability as required by accounting standards combined with a gain in the market value of the Conditions of Service Reserve as a result of improved market conditions.
14. This reflects the increase in the Territory’s non financial asset base following the upward revaluation of urban public housing stock, remote government employee housing, government Crown land in Alice Springs and Litchfield and the movement in equity investments in the public non financial sector and public financial corporation sector.
15. Purchases of non financial assets are $21.1 million lower than budgeted predominantly due to revised timing of capital works projects across government.
16. Sales of non financial assets are $20.3 million lower than budgeted predominantly due to the deferral of land sales into 2013-14 and reduced public housing sales.
104
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 41 (b) – General Government Sector Budgetary Information
General Government Sector Balance Sheet
2012-13
Actual
(Audited)
2012-13
Original
Budget
(Unaudited) Variance Note
$000 $000 $000
ASSETS
Financial assets
Cash and deposits 413 584 115 742 297 842 1
Advances paid 230 602 171 672 58 930 2
Investments, loans and placements 1 269 763 672 243 597 520 1
Receivables 153 382 156 496 - 3 114
Equity
Investments in other public sector entities 2 849 755 2 805 498 44 257 3
Investments – other 100 100
Other financial assets
Total financial assets 4 917 186 3 921 751 995 435
Non financial assets
Inventories 10 714 10 194 520
Property, plant and equipment 10 817 006 10 573 811 243 195 4
Investment property 92 892 49 416 43 476 5
Intangible assets 1 194 808 386
Assets held for sale 20 979 34 225 - 13 246 6
Other non financial assets 122 396 2 941 119 455 7
Total non financial assets 11 065 182 10 671 395 393 787
TOTAL ASSETS 15 982 368 14 593 146 1 389 222
LIABILITIES
Deposits held 664 956 130 291 534 665 8
Advances received 378 272 270 272 108 000 9
Borrowing 2 700 208 2 733 465 - 33 257 10
Superannuation 3 495 133 2 916 245 578 888 11
Other employee benefits 562 201 536 473 25 728 12
Payables 139 413 173 718 - 34 305 13
Other liabilities 173 991 115 464 58 527 14
TOTAL LIABILITIES 8 114 175 6 875 928 1 238 247
NET ASSETS/(LIABILITIES) 7 868 193 7 717 218 150 975
Contributed equity
Accumulated surplus/(deficit) 584 582 1 387 454 - 802 872
Reserves 7 283 611 6 329 764 953 847 15
NET WORTH 7 868 193 7 717 218 150 975
NET FINANCIAL WORTH1 - 3 196 989 - 2 954 177 - 242 812
NET FINANCIAL LIABILITIES2 6 046 743 5 759 675 287 068
NET DEBT3 1 829 486 2 174 371 - 344 885
1 Net financial worth equals total financial assets minus total liabilities.2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
105Notes to the Financial Statements
41 (b) Notes: The following note descriptions relate to variances greater than 10 per cent or $5 million or where multiple significant variances have occurred.
1. The increase in cash and deposits and investments, loans and placements largely reflects the revised timing of the Territory’s borrowing program.
2. Advances paid have increased by $58.9 million predominantly due to an increase in the volume of advances provided to individuals under home incentive schemes.
3. Investments in other public sector entities have increased by $44.3 million due to the timing of borrowings and capital expenditure in government trading entities.
4. Property, plant and equipment is $243.2 million higher than budget largely due to the upward revaluation of urban public housing dwellings, remote government employee housing properties, government crown land in Litchfield and Alice Springs and additional remote indigenous housing.
5. Investment property has increased by $43.5 million predominantly due to minority interest holdings in shared equity properties within NT Home Ownership.
6. Assets held for sale have decreased by $13.2 million due to timing of land development activities in Bellamack, Johnston, Palmerston and Darwin.
7. Other non financial assets have increased by $119.5 million due to the revaluation of cultural assets including library collections, regional history and arts and the natural sciences and archaeology collection within the Museum and Art Gallery of the NT.
8. Deposits held have increased by $534.7 million due to higher cash balances held by the Central Holding Authority on behalf of trading entities primarily as a result of prefunding a portion of the 2013-14 borrowing program.
9. Advances received have increased by $108 million largely related to the increased take up of home incentive schemes.
10. The $33.3 million decrease in borrowings reflects the revised timing of Government’s funding requirements offset by the recognition of long term leases on aboriginal land as borrowings.
11. The $578.9 million increase in superannuation liabilities is predominantly due to the movement in the bond rate (2013: 3.8 per cent, Original Budget: 5 per cent) in valuing the Territory’s superannuation liabilities as required by accounting standards.
12. Other employee benefits have increased by $25.7 million primarily in line with wages growth, movement in the bond rate and the timing of entitlement payments.
13. Payables have decreased by $34.3 million predominantly due to lower than budgeted accruals across a number of agencies.
14. Other liabilities have increased by $58.5 million largely due to an increased workers compensation liability and higher unearned revenue across government agencies.
15. The increase in reserves includes an increase to the asset revaluation reserve largely relating to the upward revaluation of remote government employee housing and urban public housing properties, cultural assets and government crown land.
106
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 41 (c) – General Government Sector Budgetary Information
General Government Sector Cash Flow Statement
2012-13
Actual
(Audited)
2012-13
Original
Budget
(Unaudited) Variance Note
$000 $000 $000
Cash receipts from operating activities
Taxes received 487 753 409 103 78 650 1
Receipts from sales of goods and services 303 295 242 138 61 157 2
Grants and subsidies received 3 782 829 3 683 475 99 354 3
Interest receipts 57 975 58 747 - 772
Dividends and income tax equivalents 41 522 40 275 1 247
Other receipts 352 616 368 621 - 16 005 4
Total operating receipts 5 025 990 4 802 359 223 631
Cash payments for operating activities
Payments for employees - 2 153 477 - 2 020 096 - 133 381 5
Payment for goods and services - 1 359 459 - 1 474 286 114 827 6
Grants and subsidies paid - 1 010 150 - 981 057 - 29 093 7
Interest paid - 184 417 - 182 144 - 2 273
Other payments - 14 267 - 14 267 6
Total operating payments - 4 721 770 - 4 657 583 - 64 187
NET CASH FLOWS FROM OPERATING ACTIVITIES 304 220 144 776 159 444
Cash flows from investments in non financial assets
Sales of non financial assets 54 847 78 372 - 23 525 8
Purchases of non financial assets - 585 953 - 654 659 68 706 9
Net cash flows from investments in non financial assets - 531 106 - 576 287 45 181
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 226 886 - 431 511 204 625
Net cash flows from investments in financial assets for policy purposes1 - 61 841 - 75 696 13 855
Net cash flows from investments in financial assets for liquidity purposes - 171 647 392 385 - 564 032 10
NET CASH FLOWS FROM INVESTING ACTIVITIES - 764 593 - 259 598 - 504 995
Net cash flows from financing activities
Advances received (net) 109 689 1 689 108 000 11
Borrowing (net) 525 542 590 931 - 65 390 12
Deposits received (net) - 139 222 - 474 695 335 473 13
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES 496 009 117 925 378 084
NET INCREASE/DECREASE IN CASH HELD 35 636 3 103 32 533
Net cash flows from operating activities 304 220 144 776 159 444
Net cash flows from investments in non financial assets - 531 106 - 576 287 45 181
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 431 511 204 625
Future infrastructure and superannuation contributions/earnings2 - 20 916 - 17 801 - 3 115
UNDERLYING SURPLUS (+)/DEFICIT (-) - 247 802 - 449 312 201 510
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 431 511 204 625
Acquisitions under finance leases and similar arrangements - 32 132
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements
- 259 018 - 431 511 172 493
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
107Notes to the Financial Statements
41 (c) Notes: The following note descriptions relate to variances greater than 10 per cent or $5 million or where multiple significant
variances have occurred.
1. The $78.7 million increase in taxation revenue from the May 2012 Budget reflects:
– increased payroll tax collections as a result of employment and wages growth particularly among the larger employers forming part of the Territory’s payroll tax base;
– increased stamp duties on financial and capital transactions reflecting the recovery in the number of residential and commercial transactions along with an increase in the average value of those transactions;
– increased taxes on gambling due to the increase in collection of lotteries taxes;
– increased stamp duty collections on insurance reflecting strong growth in insurance premiums; and
– increased motor vehicle registration fees due to increased new motor vehicle sales and light vehicle registration fees.
2. Receipts from sales of goods and services have increased by $61.1 million across various agencies including:
– higher licence fees received by Licensing, Regulation and Alcohol Strategy and NT Worksafe;
– increase in rent collections for remote and government employee housing dwellings; and
– increased growth in project based business revenue in delivery of tertiary programs in Northern Territory communities.
3. Grants and subsidies received have increased by $99.4 million since May 2012, due to:
– increased GST revenue of $88.7 million as a result of a higher Territory share of the national population following the 2011 Census;
– increased other Commonwealth funding of $29 million primarily relating to additional funding received for Critical Infrastructure Projects in Remote Communities, Municipal and Essential Services Jobs Package, Health and Hospital Services and Remote Indigenous Housing; offset by
– a reduction in National Partnership funding of $22.4 million largely as a result of revised timing of funding for education, health and roads.
4. Other receipts decreased by $16 million largely as a result of a decrease in mining royalty collections as a result
of lower profits due to exchange rates and lower commodity prices and the timing of ATO GST refunds, offset by
increased miscellaneous income across a number of agencies.
5. The $133.4 million increase in payments for employees is largely due to a reclassification of expenditure from operating
payments to employee payments.
6. The net decrease in payments for goods and services and other payments of $100.6 million largely relate to the timing
of ATO GST payments and the reclassification of operating payments to employee payments, offset by an increase in
repairs and maintenance and property management payments.
7. Grants and subsidies paid are $29 million higher than budgeted, largely due to increased projects under Remote
Service Delivery in Communities, increased expenditure related to the First Home Owner Grant and Commonwealth
COPE funded Municipal and Essential Services Jobs Package.
8. Sales of non financial assets are $23.5 million lower than budgeted predominantly due to the deferral of land sales into
2013-14 and reduced public housing sales.
9. Purchases of non financial assets has decreased by $68.7 million predominantly due to revised timing of capital works
projects across government combined with the effect of the revised arrangements associated with the National Rental
Affordability Scheme.
10. The $564 million movement represents the investment of increased cash holdings largely within government trading
entities, including the prefunding a portion of the 2013-14 borrowing program due to favourable market conditions.
11. Advances received have increased by $108 million largely related to the increased take up of home incentive schemes.
12. Reflects the revised borrowing requirement.
13. The net $335.5 million increase in deposits held is largely the result of prefunding a portion of the 2013-14 borrowing
program due to favourable market conditions.
108
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 42: Supplementary Tables (Functional Information)General Government Total Public Sector
2012-13
(Audited)
2011-12
(Audited)
2012-13
(Audited)
2011-12
(Audited)
$000 $000 $000 $000
a) General Government Sector and Total Public Sector Expenses by Function
General public services
Government superannuation benefits 3 363 3 072 3 363 3 072
Other general public services 113 098 90 846 113 098 90 846
Total general public services 116 461 93 918 116 461 93 918
Public order and safety
Police and fire protection services
Police services 275 699 259 886 275 699 259 886
Fire protection services 34 642 35 105 34 642 35 105
Law courts and legal services 158 345 138 959 158 345 138 959
Prisons and corrective services 146 407 129 955 146 407 129 955
Other public order and safety 4 832 6 133 4 832 6 133
Total public order and safety 619 924 570 038 619 924 570 038
Education
Primary and secondary education
Primary education 419 536 405 498 419 536 405 498
Secondary education 330 555 309 154 330 555 309 154
Primary and secondary education n.e.c.
Tertiary education
University education 13 389 19 615 13 389 19 615
Technical and further education 90 835 97 639 90 835 97 639
Tertiary education n.e.c. 15 439 19 306 15 439 19 306
Preschool education and education not definable by level
Pre-school education 39 076 34 648 39 076 34 648
Special education 55 668 54 783 55 668 54 783
Other education not definable by level
Transportation of students
Transportation of non-urban school students 2 181 2 031 2 181 2 031
Transportation of other students 12 583 10 674 12 583 10 674
Education n.e.c. 360 360 360 360
Total education 979 622 953 708 979 622 953 708
Health
Acute care institutions
Admitted patient services in acute care institutions 604 908 564 479 604 908 564 479
Non-admitted patient services in acute care institutions 157 606 150 460 157 606 150 460
Mental health institutions 12 981 14 554 12 981 14 554
Community health services
Community mental health services 33 938 33 673 33 938 33 673
Patient transport 74 728 80 789 74 728 80 789
continued
109Notes to the Financial Statements
Note 42 (continued) General Government Total Public Sector
2012-13
(Audited)
2011-12
(Audited)
2012-13
(Audited)
2011-12
(Audited)
$000 $000 $000 $000
Other community health services 192 257 202 460 192 257 202 460
Public health services 39 885 53 981 39 885 53 981
Pharmaceuticals, medical aids and appliances 36 241 33 999 36 241 33 999
Health research 6 433 7 294 6 433 7 294
Health administration n.e.c. 2 049 2 049
Total health 1 161 026 1 141 691 1 161 026 1 141 691
Social security and welfare
Welfare services
Family and child welfare services 190 336 193 008 190 336 193 008
Welfare services for the aged 48 237 43 246 48 237 43 246
Welfare services for people with a disability 62 252 80 749 62 252 80 749
Welfare services n.e.c. 39 122 32 511 39 122 32 511
Social security and welfare services n.e.c. 2 393 2 289 2 393 2 289
Total social security and welfare 342 340 351 804 342 340 351 804
Housing and community amenities
Housing and community development
Housing 343 352 229 864 343 352 229 864
Aboriginal community development 109 244 132 487 109 244 132 487
Other community development 30 651 31 451 30 651 31 451
Water supply
Aboriginal community water supply 24 713 21 861 33 221 31 633
Other water supply 17 617 17 070 48 192 52 187
Sanitation and protection of the environment
Aboriginal community sanitation services 29 483 12 902 34 169 18 284
Other sanitation and protection of the environment 19 113 24 120 39 042 47 009
Other community amenities
Total housing and community amenities 574 173 469 754 637 871 542 916
Recreation and culture
Recreation facilities and services
National parks and wildlife 43 902 36 361 43 902 36 361
Recreation facilities and services n.e.c. 69 217 34 957 69 217 34 957
Cultural facilities and services 73 352 97 209 73 352 97 209
Broadcasting and film production 744 1 296 744 1 296
Recreation and culture n.e.c. 6 172 6 105 6 172 6 105
Total recreation and culture 193 386 175 929 193 386 175 929
Fuel and energy
Fuel affairs and services
Gas 550 2 845 550 2 845
Fuel affairs and services n.e.c. 2 333 6 456 2 333 6 456
Electricity and other energy
Aboriginal community electricity services 39 513 38 835 88 014 94 543
Other electricity 68 880 55 963 396 196 431 908
continued
110
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 42 (continued) General Government Total Public Sector
2012-13
(Audited)
2011-12
(Audited)
2012-13
(Audited)
2011-12
(Audited)
$000 $000 $000 $000
Other energy 273 314
Fuel and energy n.e.c. 524 7 278 524 7 278
Total fuel and energy 111 799 111 377 487 890 543 344
Agriculture, forestry, fishing and hunting
Agriculture 39 603 42 685 39 603 42 685
Forestry, fishing and hunting 30 569 16 401 30 569 16 401
Total agriculture, forestry, fishing and hunting 70 172 59 086 70 172 59 086
Mining and mineral resources other than fuels; manufacturing; and construction
Mining and mineral resources other than fuels 20 474 18 846 20 474 18 846
Construction 3 329 4 130 3 329 4 130
Total mining and mineral resources other than fuels; manufacturing; and construction
23 804 22 976 23 804 22 976
Transport and other communications
Road transport
Aboriginal community road transport services 169 310 169 310
Road maintenance 157 047 186 099 157 047 186 099
Road rehabilitation 2 379 3 786 2 379 3 786
Road construction
Road transport n.e.c. 22 748 20 721 27 310 25 960
Water transport
Urban water transport services 4 106 3 613 23 319 25 681
Non-urban water transport services 13 560 1 196 13 560 1 196
Rail transport
Non-urban rail transport freight services 4 082 4 338 4 082 4 338
Non-urban rail transport passenger services
Air transport
Aboriginal community air transport services 4 937 5 413 4 937 5 413
Other air transport services 370 635 370 635
Pipelines 15 196 17 454
Other transport
Multi-mode urban transport 24 206 24 057 24 206 24 057
Other transport n.e.c. 10 034 8 838 10 034 8 838
Communications 2 416 2 416
Total transport and other communications 243 638 261 423 282 610 306 185
Other economic affairs
Storage, saleyards, and markets
Tourism and area promotion 55 083 61 033 55 083 61 033
Vocational training 24 679 11 347 24 679 11 347
Labour and employment affairs
Other labour and employment affairs 24 596 40 340 24 596 40 340
Other economic affairs 37 726 64 456 37 726 64 456
continued
111Notes to the Financial Statements
Note 42 (continued) General Government Total Public Sector
2012-13
(Audited)
2011-12
(Audited)
2012-13
(Audited)
2011-12
(Audited)
$000 $000 $000 $000
Total other economic affairs 142 085 177 177 142 085 177 177
Other purpose
Public debt transactions 297 781 307 238 413 359 419 987
General purpose inter-government transactions 9 368 29 327 9 368 29 327
Natural disaster relief 3 387 5 279 3 387 5 279
Other purposes n.e.c. 700 2 102 134 503 111 039
Total other purpose 311 236 343 946 560 617 565 631
Total operating expenses 4 889 666 4 732 828 5 617 807 5 504 404
b) General Government Sector and Total Public Sector Assets by FunctionFor public policy purposes Government undertakes a centralised approach to investing in financial assets. In addition a number of Government’s non financial assets are multipurpose and utilised across a number of functions, particularly in remote areas of the Territory. Accordingly it is not considered that the carrying amounts of assets recognised in the respective general government and total public sector balance sheets can be reliably attributable to specific functions.
112
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 43: Elimination Table – Comprehensive Operating Statement
2012-13 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
REVENUE
Taxation revenue 490 964 - 8 097 482 867 - 1 370 481 497
Current grants 3 608 405 133 434 - 132 750 3 609 089 - 250 3 608 839
Capital grants 170 760 36 404 - 36 161 171 003 171 003
Sales of goods and services 253 342 653 225 - 80 586 825 981 215 288 - 12 333 1 028 936
Interest income 57 612 5 072 - 5 049 57 635 304 910 - 258 109 104 436
Dividend and income tax equivalent income
40 994 2 759 43 753 - 43 753
Other 166 465 119 242 - 64 346 221 361 3 817 - 2 782 222 396
TOTAL REVENUE 4 788 542 947 377 - 324 230 5 411 689 524 014 - 318 596 5 617 108
less EXPENSES
Employee benefits expense 1 894 344 98 099 - 11 1 992 433 23 831 - 1 310 2 014 954
Superannuation expenses
Superannuation interest cost 113 686 113 686 113 686
Other superannuation expenses 207 486 13 417 - 5 335 215 568 2 501 - 43 218 025
Depreciation and amortisation 287 230 164 249 451 479 1 943 453 422
Other operating expenses 1 132 206 500 923 - 89 424 1 543 705 171 034 - 15 172 1 699 568
Interest expenses 184 095 84 208 - 5 049 263 254 245 063 - 258 109 250 209
Other property expenses 1 701 - 1 442 1 436 1 694 19 769 - 17 049 4 414
Current grants 767 884 - 54 626 713 258 3 864 - 250 716 871
Capital grants 133 759 - 93 962 39 798 39 798
Subsidies and personal benefit payments
167 275 17 709 - 78 124 106 860 106 860
TOTAL EXPENSES 4 889 666 877 163 - 325 094 5 441 735 468 006 - 291 933 5 617 807
equals NET OPERATING BALANCE - 101 124 70 214 864 - 30 045 56 009 - 26 663 - 699
plus Other economic flows – included in operating result
75 125 4 514 79 638 66 407 146 045
equals OPERATING RESULT - 25 999 74 728 864 49 593 122 415 - 26 663 145 346
plus Other economic flows – other comprehensive income
886 635 167 025 - 242 617 811 043 1 831 - 97 584 715 290
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
860 636 241 753 - 241 753 860 636 124 247 - 124 247 860 636
NET OPERATING BALANCE - 101 124 70 214 864 - 30 045 56 009 - 26 663 - 699
less Net acquisition of non financial assets
Purchases of non financial assets 633 546 289 006 922 552 762 923 314
Sales of non financial assets - 58 075 - 107 - 58 182 - 52 - 58 234
less Depreciation 287 230 164 249 451 479 1 943 453 422
plus Change in inventories 1 439 12 867 14 306 14 306
plus Other movements in non financial assets
- 33 948 92 699 58 751 58 751
equals Total net acquisition of non financial assets
255 733 230 216 485 949 - 1 233 484 716
equals FISCAL BALANCE - 356 856 - 160 001 864 - 515 994 57 242 - 26 663 - 485 415
113Notes to the Financial Statements
Note 43: Elimination Table – Balance Sheet
2012-13 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
ASSETS
Financial assets
Cash and deposits 413 584 100 616 - 91 635 422 566 640 739 - 509 588 553 717
Advances paid 230 602 230 602 85 025 - 89 544 226 083
Investments, loans and placements 1 269 763 1 269 763 5 428 596 - 4 243 790 2 454 569
Receivables 153 382 148 673 - 13 900 288 155 162 614 - 50 758 400 011
Equity
Investments in other public sector entities 2 849 755 - 2 452 461 397 293 - 397 293
Investments – other 100 3 103 103
Other financial assets
Total financial assets 4 917 186 249 292 - 2 557 997 2 608 481 6 316 974 - 5 290 973 3 634 483
Non financial assets
Inventories 10 714 109 766 120 480 120 480
Property, plant and equipment 10 817 006 3 539 970 14 356 976 47 827 14 404 803
Investment property 92 892 49 485 142 378 142 378
Intangible assets 1 194 70 205 71 399 839 72 238
Assets held for sale 20 979 20 979 20 979
Other non financial assets 122 396 70 122 467 122 467
Total non financial assets 11 065 182 3 769 496 14 834 678 48 666 14 883 344
TOTAL ASSETS 15 982 368 4 018 789 - 2 557 997 17 443 159 6 365 640 - 5 290 973 18 517 827
LIABILITIES
Deposits held 664 956 10 103 - 91 635 583 424 477 136 - 515 440 545 120
Advances received 378 272 378 272 246 993 - 382 790 242 474
Borrowing 2 700 208 1 392 917 4 093 125 4 575 500 - 3 944 691 4 723 935
Superannuation 3 495 133 3 495 133 3 495 133
Other employee benefits 562 201 50 556 612 757 5 325 618 082
Payables 139 413 71 352 - 11 824 198 941 92 286 - 12 172 279 055
Other liabilities 173 991 41 399 - 2 076 213 314 571 106 - 38 586 745 834
TOTAL LIABILITIES 8 114 175 1 566 327 - 105 536 9 574 966 5 968 347 - 4 893 680 10 649 634
NET ASSETS/(LIABILITIES) 7 868 193 2 452 462 - 2 452 461 7 868 193 397 293 - 397 293 7 868 193
Contributed equity 563 942 - 563 942 58 054 - 58 054
Accumulated surplus/(deficit) 584 582 721 970 1 306 552 306 089 1 612 641
Reserves 7 283 611 1 166 549 - 1 888 519 6 561 641 33 150 - 339 239 6 255 552
NET WORTH 7 868 193 2 452 461 - 2 452 461 7 868 193 397 293 - 397 293 7 868 193
NET FINANCIAL WORTH1 - 3 196 989 -1 317 035 - 2 452 461 - 6 966 485 348 627 - 397 293 - 7 015 151
NET FINANCIAL LIABILITIES2 6 046 743 1 317 035 7 363 778 - 348 627 7 015 151
NET DEBT3 1 829 486 1 302 404 3 131 890 - 854 730 2 277 160
1 Net financial worth equals total financial assets minus total liabilities.2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
114
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 43: Elimination Table – Statement of Changes in Equity
2012-13 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
Equity as at 30 June 2012
Accumulated funds
Accumulated funds – opening balance 610 205 644 816 1 255 021 218 312 1 473 333
Current year surplus(+)/deficit(-) - 25 999 74 728 864 49 593 122 415 - 26 663 145 346
Changes in accounting policy
Correction of prior period errors
Transfers from reserves 1 848 543 2 391 - 8 010 - 5 619
Dividends paid/payable 864 - 864 - 26 663 26 663
Other movements directly to equity - 1 472 1 019 - 453 34 - 419
Total accumulated funds 584 582 721 970 1 306 552 306 089 1 612 641
Reserves
Asset revaluation surplus 4 719 605 1 166 549 5 886 154 17 838 5 903 992
Asset realisation surplus 335 482 335 482 335 482
Derivative revaluation surplus
Investments in public sector entities revaluation surplus
2 227 758 - 1 888 519 339 239 - 339 239
Other reserves 766 766 15 313 16 078
Total reserves 7 283 611 1 166 549 - 1 888 519 6 561 641 33 150 - 339 239 6 255 552
Capital – transactions with owners 563 942 - 563 942 58 054 - 58 054
Equity injections
Capital appropriation
Equity transfers in
Other equity injections
Specific purpose payments
National partnership payments
Commonwealth – capital
Equity withdrawals
Capital withdrawals
Equity transfers out
Total capital – transactions with owners 563 942 - 563 942 58 054 - 58 054
TOTAL EQUITY AT END OF FINANCIAL YEAR
7 868 193 2 452 461 - 2 452 461 7 868 193 397 293 - 397 293 7 868 193
115Notes to the Financial Statements
Note 43: Elimination Table – Cash Flow Statement
2012-13 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
Cash receipts from operating activities
Taxes received 487 753 - 8 121 479 632 - 1 370 478 263
Receipts from sales of goods and services 303 295 541 220 - 27 938 816 578 215 588 - 11 156 1 021 010
Grants and subsidies received 3 782 829 169 637 - 168 911 3 783 555 - 250 3 783 305
Interest receipts 57 975 5 367 - 5 344 57 998 304 325 - 258 437 103 886
Dividends and income tax equivalents 41 522 - 5 047 36 475 - 36 475
Other receipts 352 616 41 819 - 1 076 393 359 9 793 - 2 683 400 469
Total operating receipts 5 025 990 758 043 - 216 436 5 567 597 529 705 - 310 370 5 786 932
Cash payments for operating activities
Income tax equivalents paid - 3 318 3 318 - 12 496 12 496
Payments for employees - 2 153 477 - 117 386 8 979 -2 261 884 - 27 365 2 680 - 2 286 569
Payment for goods and services - 1 359 459 - 504 354 78 038 -1 785 775 - 164 497 12 558 - 1 937 713
Grants and subsidies paid - 1 010 150 - 17 709 168 911 - 858 949 - 3 864 250 - 862 563
Interest paid - 184 417 - 84 512 5 344 - 263 585 - 242 073 258 437 - 247 221
Other payments - 14 267 - 2 278 267 - 16 278 - 2 719 - 18 997
Total operating payments - 4 721 770 - 729 557 264 857 -5 186 470 - 453 014 286 421 - 5 353 063
NET CASH FLOWS FROM OPERATING ACTIVITIES
304 220 28 486 48 420 381 127 76 691 - 23 948 433 869
Cash flows from investments in non financial assets
Sales of non financial assets 54 847 107 54 954 52 55 006
Purchases of non financial assets - 585 953 - 289 006 - 50 000 - 924 959 - 762 - 925 721
Net cash flows from investments in non financial assets
- 531 106 - 288 899 - 50 000 - 870 005 - 710 - 870 715
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 226 886 - 260 413 - 1 580 - 488 879 75 981 - 23 948 - 436 846
Net cash flows from investments in financial assets for policy purposes1
- 61 841 - 61 841 124 - 61 716
Net cash flows from investments in financial assets for liquidity purposes
- 171 647 - 171 647 - 835 698 770 285 - 237 060
NET CASH FLOWS FROM INVESTING ACTIVITIES
- 764 593 - 288 899 - 50 000 -1 103 492 - 836 408 770 410 - 1 169 491
Net cash flows from financing activities
Advances received (net) 109 689 109 689 - 6 075 - 109 814 - 6 200
Borrowing (net) 525 542 125 271 650 813 786 220 - 654 744 782 289
Deposits received (net) - 139 222 9 770 135 903 6 451 - 25 825 13 632 - 5 742
Dividends paid - 1 580 1 580 - 23 948 23 948
Other financing (net)
NET CASH FLOWS FROM FINANCING ACTIVITIES
496 009 133 461 137 483 766 953 730 372 - 726 977 770 348
continued
116
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 43 (continued) GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
NET INCREASE/DECREASE IN CASH HELD
35 636 - 126 952 135 903 44 588 - 29 345 19 484 34 726
Net cash flows from operating activities 304 220 28 486 48 420 381 127 76 691 - 23 948 433 869
Net cash flows from investments in non financial assets
- 531 106 - 288 899 - 50 000 - 870 005 - 710 - 870 715
Dividends paid - 1 580 1 580 - 23 948 23 948
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 261 993 - 488 879 52 033 - 436 846
Future infrastructure and superannuation contributions/earnings2
- 20 916 - 20 916 - 20 916
UNDERLYING SURPLUS (+)/DEFICIT (-) - 247 802 - 261 993 - 509 795 52 033 - 457 762
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 226 886 - 261 993 - 488 879 52 033 - 436 846
Acquisitions under finance leases and similar arrangements
- 32 132 - 9 309 - 41 441 - 41 441
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements
- 259 018 - 271 302 - 530 320 52 033 - 478 287
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
117Notes to the Financial Statements
Note 43: Elimination Table – Comprehensive Operating Statement
2011-12 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
REVENUE
Taxation revenue 402 917 - 7 731 395 186 - 1 316 393 870
Current grants 3 505 483 124 346 - 119 492 3 510 337 3 510 337
Capital grants 480 006 22 962 - 22 932 480 035 480 035
Sales of goods and services 213 609 552 068 - 67 854 697 823 223 070 - 9 420 911 473
Interest income 67 810 6 716 - 6 660 67 866 285 997 - 232 840 121 023
Dividend and income tax equivalent income
41 254 - 8 666 32 588 - 32 588
Other 197 229 61 457 - 6 831 251 854 4 248 - 2 767 253 335
TOTAL REVENUE 4 908 308 767 549 - 240 167 5 435 689 513 315 - 278 930 5 670 074
less EXPENSES
Employee benefits expense 1 798 934 99 769 - 38 1 898 665 22 355 - 1 091 1 919 929
Superannuation expenses
Superannuation interest cost 140 989 140 989 140 989
Other superannuation expenses 181 147 14 139 - 5 413 189 874 2 357 - 59 192 172
Depreciation and amortisation 232 422 145 969 378 391 2 142 380 533
Other operating expenses 1 181 611 457 348 - 76 901 1 562 058 173 527 - 12 386 1 723 200
Interest expenses 166 249 79 498 - 6 660 239 087 230 723 - 232 840 236 969
Other property expenses 2 039 4 671 - 4 686 2 025 14 247 - 11 606 4 665
Current grants 800 451 91 - 42 866 757 676 3 296 760 972
Capital grants 78 152 181 - 22 932 55 401 55 401
Subsidies and personal benefit payments
150 833 15 366 - 76 626 89 573 89 573
TOTAL EXPENSES 4 732 828 817 033 - 236 122 5 313 738 448 647 - 257 982 5 504 404
equals NET OPERATING BALANCE 175 480 - 49 484 - 4 045 121 951 64 668 - 20 948 165 671
plus Other economic flows – included in operating result
- 1 032 394 23 196 - 1 009 198 - 36 114 - 1 045 311
equals OPERATING RESULT - 856 914 - 26 288 - 4 045 - 887 247 28 555 - 20 948 - 879 641
plus Other economic flows – other comprehensive income
302 511 15 151 15 182 332 844 945 - 8 551 325 237
equals COMPREHENSIVE RESULT – total change in net worth before transactions with owners in their capacity as owners
- 554 403 - 11 137 11 137 - 554 403 29 500 - 29 500 - 554 403
NET OPERATING BALANCE 175 480 - 49 484 - 4 045 121 951 64 668 - 20 948 165 671
less Net acquisition of non financial assets
Purchases of non financial assets 942 786 254 387 1 197 174 1 768 1 198 942
Sales of non financial assets - 61 942 - 2 061 - 64 003 - 96 - 64 099
less Depreciation 232 422 145 969 378 391 2 142 380 533
plus Change in inventories - 920 11 806 10 886 10 886
plus Other movements in non financial assets
- 4 953 23 059 18 105 18 105
equals Total net acquisition of non financial assets
642 549 141 222 783 771 - 470 783 301
equals FISCAL BALANCE - 467 069 - 190 706 - 4 045 - 661 820 65 139 - 20 948 - 617 630
118
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 43: Elimination Table – Balance Sheet
2011-12 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
ASSETS
Financial assets
Cash and deposits 377 948 227 568 - 227 538 377 978 670 085 - 529 072 518 990
Advances paid 168 717 168 717 85 025 - 89 419 164 322
Investments, loans and placements 1 035 858 1 035 858 4 564 503 - 3 473 505 2 126 857
Receivables 211 334 87 015 - 69 329 229 019 169 687 - 42 714 355 992
Equity
Investments in other public sector entities 2 509 554 -2 209 844 299 709 - 299 709
Investments – other 100 3 103 103
Other financial assets
Total financial assets 4 303 511 314 585 - 2 506 712 2 111 384 5 489 299 - 4 434 419 3 166 264
Non financial assets
Inventories 9 275 96 899 106 174 106 174
Property, plant and equipment 10 418 163 3 201 612 13 619 775 46 353 13 666 128
Investment property 55 607 40 745 96 352 96 352
Intangible assets 1 796 25 886 27 682 1 723 29 405
Assets held for sale 11 073 11 073 11 073
Other non financial assets 64 636 71 64 707 64 707
Total non financial assets 10 560 549 3 365 214 13 925 762 48 076 13 973 838
TOTAL ASSETS 14 864 060 3 679 799 - 2 506 712 16 037 146 5 537 375 - 4 434 419 17 140 103
LIABILITIES
Deposits held 804 178 333 - 227 538 576 973 502 961 - 529 072 550 861
Advances received 268 583 268 583 253 068 - 272 977 248 674
Borrowing 2 142 534 1 258 337 3 400 871 3 794 434 - 3 289 947 3 905 358
Superannuation 3 797 653 3 797 653 3 797 653
Other employee benefits 544 954 47 483 592 437 4 990 597 427
Payables 146 456 78 818 - 9 533 215 740 82 683 - 11 326 287 097
Other liabilities 152 145 84 984 - 59 796 177 333 599 530 - 31 388 745 475
TOTAL LIABILITIES 7 856 503 1 469 954 - 296 868 9 029 589 5 237 666 - 4 134 710 10 132 546
NET ASSETS/(LIABILITIES) 7 007 557 2 209 844 - 2 209 844 7 007 557 299 709 - 299 709 7 007 557
Contributed equity 563 942 - 563 942 58 054 - 58 054
Accumulated surplus/(deficit) 610 205 644 816 1 255 021 218 312 1 473 333
Reserves 6 397 352 1 001 086 - 1 645 902 5 752 536 23 343 - 241 655 5 534 224
NET WORTH 7 007 557 2 209 844 - 2 209 844 7 007 557 299 709 - 299 709 7 007 557
NET FINANCIAL WORTH1 - 3 552 992 - 1 155 369 - 2 209 844 - 6 918 205 251 633 - 299 709 - 6 966 281
NET FINANCIAL LIABILITIES2 6 062 545 1 155 369 7 217 914 - 251 633 6 966 281
NET DEBT3 1 632 771 1 031 102 2 663 873 - 769 150 1 894 724
1 Net financial worth equals total financial assets minus total liabilities.2 Net financial liabilities equals the sum of total liabilities less total financial assets excluding investments in other public sector entities.3 Net debt equals the sum of deposits held, advances received and borrowing, minus the sum of cash and deposits, advances paid and investments,
loans and placements.
119Notes to the Financial Statements
Note 43: Elimination Table – Statement of Changes in Equity
2011-12 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
Equity as at 30 June 2011
Accumulated funds
Accumulated funds – opening balance 1 454 410 667 919 2 122 328 210 654 2 332 983
Current year surplus(+)/deficit(-) - 856 914 - 26 288 - 4 045 - 887 247 28 555 - 20 948 - 879 641
Changes in accounting policy
Correction of prior period errors
Transfers from reserves 9 055 7 643 16 697 16 697
Dividends paid/payable - 4 045 4 045 - 20 948 20 948
Other movements directly to equity 3 654 - 413 3 242 52 3 293
Total accumulated funds 610 205 644 816 1 255 021 218 312 1 473 333
Reserves
Asset revaluation surplus 4 172 948 1 001 086 5 174 034 23 343 5 197 377
Asset realisation surplus 335 482 335 482 335 482
Derivative revaluation surplus
Investments in public sector entities revaluation surplus
1 887 557 - 1 645 902 241 655 - 241 655
Other reserves 1 365 1 365 1 365
Total reserves 6 397 352 1 001 086 - 1 645 902 5 752 536 23 343 - 241 655 5 534 224
Capital – transactions with owners 539 191 - 539 191 58 054 - 58 054
Equity injections
Capital appropriation
Equity transfers in 14 800 - 14 800
Other equity injections 45 886 - 45 886
Specific purpose payments
National partnership payments
Commonwealth – capital
Equity withdrawals
Capital withdrawals 25 000 - 25 000
Equity transfers out 10 934 - 10 934
Total capital – transactions with owners 563 942 - 563 942 58 054 - 58 054
TOTAL EQUITY AT END OF FINANCIAL YEAR
7 007 557 2 209 844 - 2 209 844 7 007 557 299 709 - 299 709 7 007 557
120
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 43: Elimination Table – Cash Flow Statement
2011-12 GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
Cash receipts from operating activities
Taxes received 399 528 - 8 049 391 480 - 1 316 390 164
Receipts from sales of goods and services 271 774 599 787 - 118 081 753 480 218 840 - 9 350 962 971
Grants and subsidies received 3 988 838 147 121 - 142 424 3 993 535 3 993 535
Interest receipts 68 238 6 878 - 6 823 68 293 283 940 - 231 289 120 944
Dividends and income tax equivalents 25 467 - 487 24 980 - 24 980
Other receipts 430 650 31 700 - 1 346 461 004 8 659 - 2 336 467 327
Total operating receipts 5 184 495 785 486 - 277 209 5 692 772 511 439 - 269 270 5 934 941
Cash payments for operating activities
Income tax equivalents paid - 430 430 - 8 562 8 562
Payments for employees - 1 998 379 - 117 400 8 667 - 2 107 112 - 26 066 2 407 - 2 130 771
Payment for goods and services - 1 478 603 - 454 071 68 588 - 1 864 085 - 174 765 10 555 - 2 028 295
Grants and subsidies paid - 1 015 620 - 15 508 142 424 - 888 704 - 3 296 - 892 000
Interest paid - 165 205 - 79 168 6 823 - 237 551 - 223 411 231 289 - 229 673
Other payments - 11 499 - 1 237 14 - 12 721 - 2 641 - 15 362
Total operating payments - 4 669 307 - 667 813 226 947 - 5 110 173 - 438 741 252 813 - 5 296 101
NET CASH FLOWS FROM OPERATING ACTIVITIES
515 188 117 672 - 50 262 582 599 72 698 - 16 458 638 839
Cash flows from investments in non financial assets
Sales of non financial assets 71 942 2 061 74 003 96 74 099
Purchases of non financial assets - 993 514 - 255 692 50 000 - 1 199 206 - 1 768 - 1 200 974
Net cash flows from investments in non financial assets
- 921 571 - 253 632 50 000 - 1 125 203 - 1 672 - 1 126 875
NET CASH FROM OPERATING ACTIVITIES AND INVESTMENTS IN NON FINANCIAL ASSETS
- 406 383 - 135 959 - 262 - 542 604 71 027 - 16 458 - 488 035
Net cash flows from investments in financial assets for policy purposes1
- 49 612 368 20 886 - 28 358 168 - 28 189
Net cash flows from investments in financial assets for liquidity purposes
- 200 636 - 200 636 - 504 421 480 183 - 224 874
NET CASH FLOWS FROM INVESTING ACTIVITIES
- 1 171 819 - 253 263 70 886 - 1 354 196 - 506 093 480 352 - 1 379 937
Net cash flows from financing activities
Advances received (net) 22 159 22 159 - 5 495 - 22 327 - 5 664
Borrowing (net) 321 281 135 635 456 916 961 331 - 458 024 960 222
Deposits received (net) 504 873 - 7 222 - 13 984 483 668 4 487 - 502 485 - 14 331
Dividends paid - 262 262 - 16 458 16 458
Other financing (net) 20 886 - 20 886
NET CASH FLOWS FROM FINANCING ACTIVITIES
848 314 149 037 - 34 607 962 743 943 865 - 966 380 940 228
continued
121Notes to the Financial Statements
Note 43 (continued) GGS PNFC
NFPS
Eliminations NFPS PFC
TPS
Eliminations TPS
$000 $000 $000 $000 $000 $000 $000
NET INCREASE/DECREASE IN CASH HELD
191 683 13 446 - 13 984 191 145 510 470 - 502 485 199 130
Net cash flows from operating activities 515 188 117 672 - 50 262 582 599 72 698 - 16 458 638 839
Net cash flows from investments in non financial assets
- 921 571 - 253 632 50 000 - 1 125 203 - 1 672 - 1 126 875
Dividends paid - 262 262 - 16 458 16 458
CASH SURPLUS (+)/DEFICIT (-) - 406 383 - 136 221 - 542 604 54 569 - 488 035
Future infrastructure and superannuation contributions/earnings2
- 18 152 - 18 152 - 18 152
UNDERLYING SURPLUS (+)/DEFICIT (-) - 424 535 - 136 221 - 560 756 54 569 - 506 187
Additional information to the Cash Flow Statement
CASH SURPLUS (+)/DEFICIT (-) - 406 383 - 136 221 - 542 604 54 569 - 488 035
Acquisitions under finance leases and similar arrangements
ABS GFS SURPLUS (+)/DEFICIT (-) including finance leases and similar arrangements
- 406 383 - 136 221 - 542 604 54 569 - 488 035
1 Includes equity acquisitions, disposals and privatisations (net).2 Contributions for future infrastructure and superannuation requirements.
122
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Note 44: GlossaryABS GFS Manual
The Australian Bureau of Statistics (ABS) publication Australian System of Government Finance Statistics: Concepts, Sources and Methods as updated from time to time.
Accountable Officer’s Trust AccountEstablished under section 7(1) of the Financial Management Act to enable agencies to hold money in trust for another person or entity. Transactions in these accounts are excluded from the Public Account.
Accounts PayableThe value of short-term and long-term trade debt and accounts payable, interest payable and prepayments received.
Accounts ReceivableThe value of short-term and long-term trade credit and accounts receivable, interest receivable and prepayments made.
Accrual AccountingA recording method in which revenues, expenses, lending and borrowing are recognised as they are earned or incurred regardless of when a cash payment is made or received.
Administrative Arrangements OrderA list of Ministers of the Northern Territory, agencies, Acts and principal areas of government for which they are responsible.
Advances/Advances PaidLoans acquired for policy rather than liquidity management purposes. Included are long-term and short-term loans, non-marketable debentures and long and short-term promissory agreements (bonds and bills) issued to public sector units for achieving government policy objectives.
AgencyA unit of government administration, or office or statutory corporation, nominated in an Administrative Arrangements Order for the purposes of the Financial Management Act and including, where the case requires, a part or division (by whatever name called) of an agency.
AppropriationAn authority given by the Legislative Assembly to make payments, now or at some future time, for the purposes stated, up to the limit of the amount in the particular Act.
Appropriation ActIncludes a Supply Act and an annual Appropriation Act or an additional Appropriation Act.
Australian Accounting StandardsStatements of accounting standards that can be applied in preparation and presentation of financial statements.
Capital GrantsTransactions in which the ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realised by the disposal of another asset are transferred, for which no economic benefits of equal value are receivable or payable in return.
Cash AccountingA recording method in which transactions are recognised when cash payments are made or received.
123Notes to the Financial Statements
Cash Surplus/DeficitReported in the Cash Flow Statement that measures the net impact of cash flows during the period. It equals net cash flows from operating activities plus net cash flows from acquisition and disposal of non financial assets, less distributions paid less value of assets acquired under finance leases and similar arrangements.
Net cash flows from operating plus net cash from acquisition and disposal of non financial assets (less dividends paid for the public non financial corporations and public financial corporations sectors).
Central Holding AuthorityCreated by section 5 of the Financial Management Act, the Central Holding Authority is a representation of the revenue, expenses, assets and liabilities of the Territory. Credited to this account is all money received by or on behalf of the Territory or an agency, except that required or permitted by or under the Financial Management Act or any other Act to be credited to an operating account or to an Accountable Officer’s Trust Account.
Change in Net WorthChange in net worth (comprehensive result) is revenue from transactions less expenses from transactions plus other economic flows, and measures the variation in a government’s accumulated assets and liabilities.
Commonwealth Own-Purpose Expenses (COPE)Payments by the Commonwealth for goods and services and associated transfer payments for the conduct of its general government activities.
Community Service Obligation A community service obligation (CSO) arises when the Government requires a government business division or government owned corporation to carry out activities that it would not choose to do on a commercial basis or would only do at higher commercial prices. CSOs allow the Government to achieve identifiable community or social objectives that would not be achieved if left to commercial considerations.
Comprehensive ResultThe net result of all items of income and expense recognised for the period. It is the aggregate of operating result and other movements in equity, other than transactions with owners as owners.
Contingent LiabilityA potential financial obligation arising out of a condition, situation, guarantee or indemnity, the ultimate effect of which will be confirmed only on the occurrence or non-occurrence of one or more uncertain future events.
Convergence DifferenceThe difference between the amounts recognised in the financial statements compared with the amounts determined for GFS purposes as a result of differences in definition, recognition, measurement, classification and consolidation principles and rules.
Current GrantsAmounts payable or receivable for current purposes for which no economic benefits of equal value are receivable or payable in return.
Doubtful DebtA debt that is treated as a possible future loss and for which a provision has been made.
Eliminations Adjustments relating to interrelated transactions or entries between entities within the total public sector.
124
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Finance LeaseLease agreements that transfer substantially all the risks and benefits relating to ownership of an asset from the lessor (legal owner) to the lessee (party using the asset).
Financial AssetAny asset that is:
• cash;
• an equity instrument of another entity;
• a contractual right:
– to receive cash or another financial asset from another entity; or
– to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity; or
• a contract that will or may be settled in the entity’s own equity instruments and is:
– a non derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments; or
– a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments.
For this purpose, the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
Fiscal AggregatesAnalytical balances that are useful for macroeconomic analysis purposes, including assessing the impact of a government and its sectors on the economy. AASB 1049 prescribes net operating balance, net lending/borrowing (fiscal balance), change in net worth (comprehensive result), net worth and cash surplus/deficit. The UPF prescribes additional fiscal aggregates not included in AASB 1049: these are net debt, net financial worth, net financial liabilities and ABS GFS cash surplus/deficit.
General Government Sector Defined in Government Finance Statistics as an entity or group of entities that are mainly engaged in the production of goods and or services outside the normal market mechanism. Goods and services are provided free of charge or at nominal charges well below costs of production.
Generally Accepted Accounting Principles (GAAP)Term used to describe broadly the body of principles that governs the accounting for financial transactions underlying the preparation of a set of financial statements.
Goods and Services Tax RevenueOn 1 July 2000, the Commonwealth introduced the goods and services tax (GST). Payments from the Commonwealth return the GST revenue to the states and territories, replacing the previous general purpose grants.
Government Business Division (GBD)A Territory-controlled trading entity that follows commercial practices and is required to comply with competitive neutrality principles.
Government Finance StatisticsRefers to statistics that measure the financial transactions of governments and reflect the impact of those transactions on other sectors of the economy. Government Finance Statistics in Australia are developed by the Australian Bureau of Statistics in conjunction with all governments and are mainly based on international statistical standards developed, in consultation with member countries, by the International Monetary Fund.
125Notes to the Financial Statements
Government Owned CorporationAn entity whose objectives are to operate at least as efficiently as any corporate business and maximise the sustainable return to government. The Government Owned Corporations Act adopts the shareholder model of corporate governance. The Power and Water Corporation became the Territory’s first government owned corporation on 1 July 2002.
Government Purpose ClassificationClassifies outlays or expenditure transactions by the purpose served, for example, health or education.
GrantsTransactions in which one unit provides goods, services, assets (or extinguishes a liability) or labour to another unit without receiving approximately equal value in return. Grants can either be of a current or capital nature (see current grants and capital grants).
While grants to government may result in the provision of some goods or services to the transferor, they do not give the transferor a claim to receive directly, benefits of approximately equal value. Receipt and sacrifice of approximately equal value may occur, but only by coincidence. For example, governments are not obliged to provide commensurate benefits, in the form of goods or services, to particular taxpayers in return for their taxes. For this reason, grants are referred to by the AASB as involuntary transfers and are termed non-reciprocal transfers.
Grants can be paid as general purpose grants, which refer to grants that are not subject to conditions regarding their use. Alternatively, they may be paid as specific purpose grants, which are paid for a particular purpose and or have conditions attached regarding their use.
Grants for On-PassingAll grants paid to one institutional sector (for example, a state general government) to be passed on to another institutional sector (for example, local government or a non-profit institution).
GuaranteeAn undertaking to answer for the debt or obligations of another person or entity.
IndemnityA written undertaking to compensate, protect or insure another person or entity against future financial loss, damage or liability.
Intergovernmental AgreementAn agreement signed by all states and the Commonwealth in December 2008 defining the framework for federal financial relations, encompassing Commonwealth funding to states through general revenue assistance, specific purpose payments and National Partnership payments.
Interest ExpenseCosts incurred in connection with the borrowing of funds. It includes interest on advances, loans, overdrafts, bonds and bills, deposits, interest components of finance lease repayments, and amortisation of discounts or premiums in relation to borrowing.
International Financial Reporting StandardsThe term used to describe the move to standardise existing global international accounting standards. Australian equivalents to these new standards have been adopted for reporting periods on or after 1 January 2005.
InventoriesIncludes goods or other property used in the production of goods or services, or held for sale, but does not include livestock and other regenerative natural resources.
126
2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Loan CouncilThe Australian Loan Council coordinates borrowing by Commonwealth and state governments. Current arrangements seek to emphasise transparency of public sector finances, through financial market scrutiny of proposed borrowing, to restrict borrowing to prudent levels.
Loan Council AllocationThe nomination to the Loan Council of the level of financing required.
Memorandum Items – Loan CouncilMemorandum items are used to adjust the cash surplus/deficit to include in the Loan Council Allocation certain transactions that may have the characteristics of public sector borrowings but do not constitute formal borrowings.
National Partnership AgreementsNational Partnership (NP) agreements are agreements between the Commonwealth, states and territories with defined objectives, outcomes, outputs and performance measures related to the delivery of projects of national significance or to facilitate reforms.
National Partnership PaymentsNP payments are tied Commonwealth grants provided to states and territories to enable them to achieve the outcomes and outputs of an NP agreement.
Net Acquisition/(Disposal) of Non Financial Assets from TransactionsPurchases (or acquisitions) of non financial assets less sales (or disposals) of non financial assets less depreciation plus changes in inventories and other movements in non financial assets.
Purchases and sales (or net acquisitions) of non financial assets generally include accrued expenses and payables for capital items. Purchases exclude non-produced assets and valuables, which are included in other movements in non financial assets.
Net Actuarial GainsIncludes actuarial gains and losses on defined benefit superannuation plans.
Net Cash Flows from Investments in Financial Assets (Liquidity Management Purposes)Cash receipts from liquidation or repayment of investments in financial assets for liquidity management purposes less cash payments for such investments. Investment for liquidity management purposes means making funds available to others with no policy intent and with the aim of earning a commercial rate of return.
Net Cash Flows from Investments in Financial Assets (Policy Purposes) Cash receipts from the repayment and liquidation of investments in financial assets for policy purposes less cash payments for acquiring financial assets for policy purposes. Acquisition of financial assets for policy purposes is distinguished from investments in financial assets (liquidity management purposes) by the underlying government motivation for acquiring the assets. Acquisition of financial assets for policy purposes is motivated by government policies such as encouraging the development of certain industries or assisting citizens affected by natural disaster.
Net DebtNet debt measures a government’s net stock of selected gross financial liabilities less financial assets.
Net debt equals sum of deposits held, advances received, government securities, loans and other borrowing less the sum of cash and deposits, advances paid and investments, loans and placements.
127Notes to the Financial Statements
Net Financial LiabilitiesTotal liabilities less financial assets, other than equity in public non financial corporations and public financial corporations. This measure is broader than net debt as it includes significant liabilities, other than borrowings (for example, accrued employee liabilities such as superannuation and long service leave entitlements). For the public non financial corporations and public financial corporations sectors, it is equal to negative net financial worth.
Net Financial WorthA measure of a government’s net holdings of financial assets. It is calculated from the Uniform Presentation Framework Balance Sheet as financial assets minus liabilities. Net financial worth is a broader measure than net debt, in that it incorporates provisions (such as superannuation, but excludes depreciation and doubtful debts) as well as holdings of equity. Net financial worth includes all classes of financial assets and liabilities.
Net Gain on Equity Investment in other Sector Entities Measured at Proportional Share of the Carrying Amount of Net Assets/(Liabilities)
Comprises the net gains relating to the equity held by the General Government Sector in other sector entities. It arises from a change in the carrying amount of net assets of the subsidiaries. The net gains are measured based on the proportional share of the subsidiary’s carrying amount of net assets /(liabilities) before elimination of intersector balances.
Net Lending/Borrowing (also referred to as Fiscal Balance)An Operating Statement measure that differs from the net operating balance in that it includes spending on capital items but excludes depreciation. The net lending/borrowing measure more accurately reflects the cash requirements of a government in any given year. A net lending (or fiscal surplus) balance indicates that a government is saving more than enough to finance all its investment spending. A net borrowing (or fiscal deficit) position indicates that a government’s level of investment is greater than its level of savings.
Net Other Economic FlowsThe net change in the volume or value of assets and liabilities that does not result from transactions.
Net Result from Transactions – Net Operating BalanceThe revenue from transactions minus expenses from transactions. It is a summary measure of the ongoing sustainability of operations and excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of the change in net worth that is due to transactions and can be attributed directly to government policies.
Net WorthProvides a relatively comprehensive picture of a government’s overall financial position. It is calculated as total assets less total liabilities less shares and other contributed capital. It includes a government’s non financial assets such as land and other fixed assets, which may be sold and used to repay debt, as well as its financial assets and liabilities including debtors, creditors and superannuation liabilities. Net worth also shows asset acquisitions over time, giving an indication of the extent to which borrowings are used to finance asset purchases, rather than only current expenditure.
Non Financial AssetsAssets that are not financial assets, predominantly land and other fixed assets.
Non Financial Public Sector The sector formed through a consolidation of the general government and public non financial corporation subsectors.
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2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Non-Profit InstitutionA legal or social entity that is created for the purpose of producing or distributing goods and services but is not permitted to be a source of income, profit or other financial gain for the units that establish, control or finance it.
Operating AccountA government business division operating account or an agency operating account established under section 6(1) of the Financial Management Act.
Operating ResultA measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner movements in equity’.
Other Current RevenuesCurrent revenue other then current revenue from taxes, sales of goods and services, and property income. It includes revenue from fines other than penalties imposed by tax authorities.
Other Economic FlowsChanges in the volume or value of an asset or liability that do not result from transactions (such as revaluations and other changes in the volume of assets).
Other Superannuation ExpenseIncludes all superannuation expenses from transactions except superannuation interest cost. It generally includes current service cost, which is the increase in entitlements associated with the employment services provided by employees in the current period. Superannuation actuarial gains/losses are excluded as they are considered other economic flows.
PayablesIncludes short-term and long-term trade debt and accounts payable, grants and interest payable.
ProvisionsAmounts set aside by entities from current revenue or income for future payments.
Public AccountComprises agencies subject to the Financial Management Act, where the financial transactions of the Northern Territory Government are recorded. As defined in section 4(2) of the Act, it comprises the Central Holding Authority and operating accounts.
Public Financial Corporation Government-controlled entities which perform central bank functions, and or have the authority to incur liabilities and acquire financial assets in the market on their own account.
Public Non Financial Corporation Public enterprise primarily engaged in the production of goods or services of a non financial nature, for sale in the market place, at prices which aim to recover most of the costs involved.
Public Private Partnerships A term used to describe a method of procuring government infrastructure and associated services. Private Public Partnerships (PPPs) create opportunities with the private sector for increasing investment in social and economic infrastructure. The Territory’s PPP policy framework, Territory Partnerships, defines the protocol for such commercial dealings between the public and private sectors.
Quasi-CorporationAn unincorporated enterprise that functions as if it were a corporation, has the same relationship with its owner as a corporation and keeps a separate set of accounts.
129Notes to the Financial Statements
ReceivablesIncludes short-term and long-term trade credit and accounts receivable, grants, taxes and interest receivable.
Sale of Goods and ServicesRevenue from the direct provision of goods and services and includes fees and charges for services rendered, sales of goods and services, fees from regulatory services and work done as an agent for private enterprises. It also includes rental income under operating leases and on produced assets such as buildings and entertainment, but excludes rental income from the use of non-produced assets such as land. User charges includes sale of goods and services revenue.
Securities other than SharesNegotiable financial instruments serving as evidence of the obligations to settle by means of providing cash, a financial instrument, or some other item of economic value. The security normally specifies a schedule for interest payments and principal repayments. Some examples are: bills, bonds and debentures, commercial paper, and securitised mortgage loans.
Social BenefitsTransfers in cash or in-kind to relieve households of the burden of a defined set of social risks, which are events or circumstances that may adversely affect the welfare of households by imposing additional demands on their resources or by reducing their income.
Specific Purpose Payments (SPPs)A Commonwealth financial contribution to support state delivery of service in a particular sector. Payments are made from the Commonwealth Treasury to state treasuries, and are appropriated to the relevant Northern Territory agency.
Superannuation Interest CostThe expense resulting from the increase in the liability due to the fact that, for all participants in the scheme, retirement (and death) is one year nearer, and so one fewer discount factors must be used to calculate the present value of the benefits for each future year. Interest cost is the increase during a period in the present value of a defined benefit obligation that arises because the benefits are one period closer to settlement, as per the relevant accounting standard. The cost is measured net of the actuarial return on plan assets of defined benefit schemes calculated using an actuarially determined long-term rate of return.
Tax Equivalents RegimeThe mechanism to ensure that GBDs and Government Owned Corporations incur similar tax liabilities to privately owned organisations. Thus, greater parity exists between the cost structures of government-controlled trading entities and the private sector, aiding in the achievement of competitive neutrality.
Total Public SectorThe total public sector is formed through a consolidation of the non financial public sector and public financial corporations.
TransactionsInteractions between two institutional units by mutual agreement or actions within a unit that are analytically useful to treat as transactions.
Treasurer’s AdvanceAn appropriation purpose of that name as specified in an Appropriation Act, which provides a pool of funds specifically set aside in each Budget to meet operational contingencies that arise during the year.
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2012-13 Treasurer’s Annual Financial Report
Notes to the Financial Statements
Uniform Presentation FrameworkA uniform framework agreed by the Australian Loan Council in 2000, which is a revision of the agreement reached at the 1991 Premiers’ Conference. The Uniform Presentation Framework (UPF) was further updated and reissued in April 2008 to incorporate accounting standard AASB 1049 Whole Government and General Government Sector Financial Reporting. The UPF specifies that the Commonwealth, state and territory governments will present a minimum set of budget and financial outcome information on the Government Finance Statistics basis according to an agreed format and specified Loan Council reporting arrangements.
Use of Goods and ServicesThe total value of goods and services used in production and use of goods acquired for resale. Goods and services acquired for use as direct in-kind transfer to household or as grants are excluded.
Wages, Salaries and SupplementsConsist of all uncapitalised compensation of employees except for superannuation. It includes payments in cash or in-kind.
Whole of Government Financial ReportA financial report prepared by a government in accordance with Australian Accounting Standards, including AASB 127 Consolidated and Separate Financial Statements, and thereby separately recognises assets, liabilities, income, expenses and cash flows of all entities under the control of the government on a line-by-line basis.
Additional Financial Information (Unaudited)
133Additional Financial Information
Additional Financial InformationThis section of TAFR provides financial information for agencies and government business divisions (GBDs) to supplement the whole of government and sectoral tables presented in the audited section. This information is not required under the Uniform Presentation Framework (UPF) or the Fiscal Integrity and Transparency Act (FITA) and accordingly is not audited. The summary agency financial information and explanations ensure that the report is a comprehensive financial report. The intent of this section is to highlight changes in appropriation (the direct funding to agencies approved by Parliament in the Appropriation Act and subsequent adjustments approved in accordance with the Financial Management Act (FMA)) to agencies and to provide a summary of the key financial performance for both agencies and GBDs, with significant movements during 2012-13 explained.
This section also includes supplementary tables that are required under the UPF, but not required to be audited.
Variations to Appropriations Authorised During the YearAppropriation is the term used in the FMA to describe an amount authorised to be paid from the Central Holding Authority for operational and capital expenditure purposes to general agencies. Appropriation by purpose to agencies for the 2012-13 financial year is specified in the 2012-13 Appropriation Act, passed by the Legislative Assembly. During the course of any financial year, situations can change that necessitate variations to appropriation.
Section 18 of the FMA provides that the Treasurer can approve additional appropriation through the use of Treasurer’s Advance.
Section 19 of the FMA provides that the Administrator can approve, within specified parameters, an increase in Treasurer’s Advance.
Section 19 (A) of the FMA allows the Treasurer to increase Commonwealth appropriation where there has been an increase in Commonwealth funding to the Territory.
Section 20 (1) of the FMA provides that the Treasurer can approve appropriation transfers within a financial year.
Section 21 of the FMA allows the transfer of appropriation between agencies following redistribution of government business (public sector restructure).
Appropriation transfers can also affect the Treasurer’s Advance, which provides a pool of funds specifically set aside in each Budget to meet operational contingencies that arise during the year.
Appropriation transfers change the distribution of appropriation across agencies and the Treasurer’s Advance but do not change the total Budget funding approved by Parliament.
Variations to appropriations recorded in the table reflect the net effect on appropriation arising from Government decisions taken during 2012-13.
Summary Agency/Government Business Division Financial InformationIn addition to appropriation, agencies also receive other forms of revenue that comprises funding from external bodies and own-source revenue in the form of fees and charges.
General agency information is presented in two parts – an Appropriation summary and an Operating Statement summary, which includes expense and revenue variations. GBD information is presented as an Operating Statement summary. As commercially focused entities, GBDs do not receive appropriation and only one summary is necessary. All schedules include explanations of variations over 1 per cent or $50 000.
134
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
For the Appropriation summary, the original 2012-13 Budget is compared to the final approved budget with significant variations reflecting approved Government decisions as they pertain to resources provided to general agencies. The appropriation changes in this summary align with the Variations to Appropriation table.
Where agencies have been significantly altered as a result of changes to the Administrative Arrangements Order since the original 2012-13 Budget, those agencies have no original 2012-13 Budget stated and the variations compare the May 2013 Estimate to the final approved budget.
The Operating Statement summary contains a high-level comparison of financial performance for each agency and GBD. Comparison is made between the final approved budget and the actual result for 2012-13, highlighting significant variations between revenue and expenses. Explanations have been provided for material movements between the final estimate and the actual result. The actual results and the overall effect of movements explained in these summaries are reflected in the whole of government financial statements.
UPF Supplementary TablesThese tables are required by the UPF framework and provide detailed information on taxes, grant revenue and expense, dividends and income tax equivalents, purchases of non financial assets and Loan Council Allocations. All tables are based on the general government sector only, except for the Loan Council Allocation, which is based on the non financial public sector.
135Additional Financial Information
Variations to Appropriations Authorised During the YearAppropriation
Act Variations actioned under the
Financial Management Act Final AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
AUDITOR-GENERAL’S OFFICE
3 090 3 090
Output 3 090 3 090
Capital
Commonwealth
NORTHERN TERRITORY ELECTORAL COMMISSION
2 261 600 1 630 4 491
Output 2 261 600 1 630 4 491
Capital
Commonwealth
OMBUDSMAN’S OFFICE 1 868 1 868
Output 1 868 1 868
Capital
Commonwealth
DEPARTMENT OF THE CHIEF MINISTER
63 410 2 247 3 353 - 25 485 43 525
Output 63 015 3 353 - 25 485 40 883
Capital 395 395
Commonwealth 2 247 2 247
DEPARTMENT OF THE LEGISLATIVE ASSEMBLY
22 513 - 337 22 176
Output 22 472 - 337 22 135
Capital 41 41
Commonwealth
NORTHERN TERRITORY POLICE, FIRE AND EMERGENCY SERVICES
285 957 1 553 15 320 302 830
Output 268 422 17 943 286 365
Capital 11 404 - 2 623 8 781
Commonwealth 6 131 1 553 7 684
DEPARTMENT OF CORPORATE AND INFORMATION SERVICES
- 6 465 115 366 108 901
Output - 5 739 114 337 108 598
Capital - 726 1 029 303
Commonwealth
continued
136
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Appropriation Act
Variations actioned under the Financial Management Act Final
AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
DEPARTMENT OF TRANSPORT
30 296 247 435 277 731
Output 7 556 142 716 150 272
Capital 22 740 25 950 48 690
Commonwealth 78 769 78 769
DEPARTMENT OF TREASURY AND FINANCE
607 3 625 105 465 109 697
Output 3 625 105 465 109 090
Capital
Commonwealth 607 607
DEPARTMENT OF BUSINESS
473 - 1 211 136 838 136 100
Output 9 115 982 115 991
Capital - 1 220 1 220
Commonwealth 473 19 636 20 109
DEPARTMENT OF THE ATTORNEY-GENERAL AND JUSTICE
4 563 75 460 80 023
Output 4 563 75 460 80 023
Capital
Commonwealth
OFFICE OF THE COMMISSIONER FOR PUBLIC EMPLOYMENT
5 992 - 1 110 4 882
Output 5 992 - 1 110 4 882
Capital
Commonwealth
DEPARTMENT OF CORRECTIONAL SERVICES
3 146 123 297 126 443
Output 3 116 122 391 125 507
Capital 30 626 656
Commonwealth 280 280
DEPARTMENT OF HEALTH 1 046 100 3 679 67 324 6 484 1 123 587
Output 822 852 69 740 4 857 897 449
Capital 4 445 - 2 416 2 029
Commonwealth 218 803 3 679 1 627 224 109
continued
137Additional Financial Information
Appropriation Act
Variations actioned under the Financial Management Act Final
AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
DEPARTMENT OF EDUCATION AND CHILDREN’S SERVICES
9 702 - 4 991 777 748 782 459
Output - 4 991 562 172 557 181
Capital
Commonwealth 9 702 215 576 225 278
DEPARTMENT OF HOUSING
22 490 - 18 975 303 944 307 459
Output 324 59 168 59 492
Capital - 19 299 72 406 53 107
Commonwealth 22 490 172 370 194 860
DEPARTMENT OF LANDS, PLANNING AND THE ENVIRONMENT
3 454 63 896 67 350
Output 2 254 63 314 65 568
Capital 1 200 582 1 782
Commonwealth
DEPARTMENT OF PRIMARY INDUSTRY AND FISHERIES
2 983 36 815 39 798
Output 2 988 36 564 39 552
Capital - 5 251 246
Commonwealth
DEPARTMENT OF MINES AND ENERGY
1 696 18 059 19 755
Output 1 630 16 585 18 215
Capital 66 66
Commonwealth 1 474 1 474
DEPARTMENT OF LAND RESOURCE MANAGEMENT
743 39 278 40 021
Output 743 34 797 35 540
Capital 345 345
Commonwealth 4 136 4 136
OFFICE OF CHILDREN AND FAMILIES
393 10 348 140 665 151 406
Output 10 348 132 711 143 059
Capital
Commonwealth 393 7 954 8 347
continued
138
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Appropriation Act
Variations actioned under the Financial Management Act Final
AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
DEPARTMENT OF REGIONAL DEVELOPMENT AND WOMEN’S POLICY
585 120 400 120 985
Output 585 111 044 111 629
Capital
Commonwealth 9 356 9 356
DEPARTMENT OF LOCAL GOVERNMENT
2 314 200 1 800 40 555 44 869
Output 2 314 1 800 40 555 44 669
Capital
Commonwealth 200 200
ABORIGINAL AREAS PROTECTION AUTHORITY
3 153 - 355 2 798
Output 3 115 - 317 2 798
Capital 38 - 38
Commonwealth
TOURISM NT 39 184 - 395 2 919 41 708
Output 39 184 - 395 2 919 41 708
Capital
Commonwealth
DEPARTMENT OF SPORT AND RECREATION
8 387 38 282 46 669
Output 8 387 38 282 46 669
Capital
Commonwealth
PARKS AND WILDLIFE COMMISSION OF THE NORTHERN TERRITORY
2 179 44 059 46 238
Output 2 179 43 677 45 856
Capital 382 382
Commonwealth
DEPARTMENT OF ARTS AND MUSEUMS
807 54 33 402 34 263
Output 54 33 364 33 418
Capital 38 38
Commonwealth 807 807
DEPARTMENT OF INFRASTRUCTURE
32 586 279 810 312 396
Output 19 347 13 105 32 452
Capital 13 239 207 833 221 072
Commonwealth 58 872 58 872
continued
139Additional Financial Information
Appropriation Act
Variations actioned under the Financial Management Act Final
AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
DEPARTMENT OF NATURAL RESOURCES, ENVIRONMENT, THE ARTS AND SPORT
151 595 - 151 595
Output 146 644 - 146 644
Capital 815 - 815
Commonwealth 4 136 - 4 136
NORTHERN TERRITORY TREASURY
105 465 - 105 465
Output 105 465 - 105 465
Capital
Commonwealth
DEPARTMENT OF EDUCATION
777 755 - 777 755
Output 562 179 - 562 179
Capital
Commonwealth 215 576 - 215 576
DEPARTMENT OF CHILDREN AND FAMILIES
159 634 - 159 634
Output 146 377 - 146 377
Capital
Commonwealth 13 257 - 13 257
DEPARTMENT OF JUSTICE
229 813 - 229 813
Output 224 936 - 224 936
Capital 626 - 626
Commonwealth 4 251 - 4 251
DEPARTMENT OF LANDS AND PLANNING
281 105 - 281 105
Output 175 854 - 175 854
Capital 26 482 - 26 482
Commonwealth 78 769 - 78 769
DEPARTMENT OF CONSTRUCTION AND INFRASTRUCTURE
279 185 - 279 185
Output 13 105 - 13 105
Capital 207 208 - 207 208
Commonwealth 58 872 - 58 872
continued
140
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Appropriation Act
Variations actioned under the Financial Management Act Final
AppropriationAGENCY/Purpose 2012-13 s18 s19 s19(A) s20 s21
$000 $000 $000 $000 $000 $000 $000
DEPARTMENT OF RESOURCES
54 794 - 54 794
Output 53 069 - 53 069
Capital 251 - 251
Commonwealth 1 474 - 1 474
DEPARTMENT OF BUSINESS AND EMPLOYMENT
229 142 - 229 142
Output 209 601 - 209 601
Capital 2 249 - 2 249
Commonwealth 17 292 - 17 292
DEPARTMENT OF HOUSING, LOCAL GOVERNMENT AND REGIONAL SERVICES
456 204 - 456 204
Output 207 375 - 207 375
Capital 72 406 - 72 406
Commonwealth 176 423 - 176 423
CENTRAL HOLDING AUTHORITY
416 581 - 2 914 190 991 - 160 233 444 425
Treasurer’s Advance 30 000 - 2 914 190 991 - 159 722 58 355
Interest, taxes and administration
187 803 - 25 772 162 031
Employee entitlements 198 778 25 261 224 039
TOTAL APPROPRIATION 4 614 801 190 991 42 151 4 847 943
Output 3 076 876 2 914 149 285 - 625 3 228 450
Capital 326 360 10 948 625 337 933
Commonwealth 794 984 42 151 837 135
Treasurer’s Advance 30 000 - 2 914 190 991 - 159 722 58 355
Interest, taxes and administration
187 803 - 25 772 162 031
Employee entitlements 198 778 25 261 224 039
Total 4 614 801 190 991 42 151 4 847 943
141Additional Financial Information
Auditor-General’s Office
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 3 090 3 090 3 090
Capital
Commonwealth
TOTAL APPROPRIATION 3 090 3 090 3 090
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 3 923 3 884 - 39
Expenses 3 923 4 141 218 (1)
Net surplus(+)/deficit(-) 0 - 257 - 257
Significant variances
(1) Higher than anticipated employee and operating expenses due to increased audit activity 206
142
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Northern Territory Electoral Commission
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 2 261 3 891 4 491 2 230 (1)
Capital
Commonwealth
TOTAL APPROPRIATION 2 261 3 891 4 491 2 230
Significant variances
(1) Funding for the 2012 Legislative Assembly General Election, offset by program efficiencies 2 230
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 5 576 5 341 - 235 (2)
Expenses 5 599 5 744 145 (3)
Net surplus(+)/deficit(-) - 23 - 403 - 380
Significant variances
(2) Lower than anticipated income from commercial charges for municipal and shire by-elections - 220
(3) Higher than anticipated depreciation expense 139
143Additional Financial Information
Ombudsman’s Office
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 1 868 1 868 1 868
Capital
Commonwealth
TOTAL APPROPRIATION 1 868 1 868 1 868
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 2 175 2 227 52
Expenses 2 221 2 253 32
Net surplus(+)/deficit(-) - 46 - 26 20
Significant variances
No significant variations
144
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of the Chief Minister
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 63 015 40 883 40 883 - 22 132 (1)
Capital 395 395 395
Commonwealth 2 247 2 247 (2)
TOTAL APPROPRIATION 63 410 41 278 43 525 - 19 885
Significant variances
(1) Transfer of functions resulting from the Public Sector restructure - 25 482
Program efficiencies and rationalisation - 700
Funding for ministerial offices and protocol events to reflect historical expenditure 1 200
One-off costs associated with the change of government 4 000
(2) Funding for the Stronger Futures National Partnership Agreement 2 247
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 48 070 55 851 7 781 (3)
Expenses 56 602 54 742 - 1 860 (4)
Net surplus(+)/deficit(-) - 8 532 1 110 9 642
Significant variances
(3) Higher than anticipated Commonwealth funding relating to Ilpeye Ilpeye Community Development Initiative
7 453
(4) Higher than anticipated employee expenses due to cessation of contracts and department restructures
325
Higher than anticipated operating expenses, including consultancies and the relocation of the NT Major Events Company
2 370
Revised timing of Commonwealth funded grant payments - 4 651
145Additional Financial Information
Department of the Legislative Assembly
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 22 472 22 135 22 135 - 337 (1)
Capital 41 41 41
Commonwealth
TOTAL APPROPRIATION 22 513 22 176 22 176 - 337
Significant variances
(1) Funding for Member Termination payments 299
Program efficiencies and rationalisation - 636
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 24 274 24 383 109
Expenses 28 377 27 617 - 760 (2)
Net surplus(+)/deficit(-) - 4 103 - 3 235 868
Significant variances
(2) Lower than anticipated employee expenses - 655
146
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Northern Territory Police, Fire and Emergency Services
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 268 422 286 865 286 365 17 943 (1)
Capital 11 404 8 781 8 781 - 2 623 (2)
Commonwealth 6 131 7 604 7 684 1 553 (3)
TOTAL APPROPRIATION 285 957 303 250 302 830 16 873
Significant variances
(1) Transfer of funding from the Department of the Attorney-General and Justice for CCTV monitoring in Alice Springs
200
Funding for the Alice Springs Youth Centre to upgrade and transition to a Police and Citizens Youth Club
2 500
Additional police officers in the Top End and Alice Springs 2 500
Funding to conduct the Safe Street Audit 300
Support for the Northern Territory Joint Emergency Services Communications Centre in Darwin, CCTV in Katherine and additional staff to operate a 24/7 front counter service at the Alice Springs Police Station
1 400
Increased funding for cost of police housing 5 700
Increased funding for cost of police overtime 4 600
Funding for legacy information, communication and technology systems 3 884
Increased funding for repairs and maintenance 1 600
Transfer of funding to the Department of Corporate and Information Services for property management - 318
Transfer of funding to the Department of Infrastructure for the Peter McAuley Centre fire system and airconditioning upgrade and Katherine Police Station upgrades
- 2 500
Transfer of funding from the Department of Housing for Public Housing Safety Officers 97
Transfer of capital to output appropriation for various projects 318
Program efficiencies and rationalisation - 2 338
(2) CCTV expansion into Parap 1 000
Transfer of capital to output appropriation for various projects - 318
Program efficiencies and rationalisation - 3 305
(3) Additional funding for National Partnership Agreements relating to the Provision of Fire Services and Community Safety and Justice
1 553
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 333 193 333 811 618
Expenses 367 713 361 201 - 6 512 (4)
Net surplus(+)/deficit(-) - 34 520 - 27 391 7 129
Significant variances
(4) Lower than anticipated employee expenses for Commonwealth funded programs - 5 838
147Additional Financial Information
Department of Corporate and Information Services
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 108 598 108 598
Capital 303 303
Commonwealth
TOTAL APPROPRIATION 108 901 108 901
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 155 332 155 900 568
Expenses 152 748 152 349 - 399
Net surplus(+)/deficit(-) 2 584 3 551 967
Significant variances
No significant variations
This agency was formed as a result of the 2012 Public Sector restructures.
148
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
NT Fleet
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 48 470 48 208 - 262
Community service obligations
Other revenue 6 091 5 714 - 377 (1)
Operating expenses (after income tax) 43 458 42 956 - 502 (2)
Net surplus(+)/deficit(-) 11 103 10 967 - 136
Significant variances
(1) Lower than anticipated profit on disposal of assets - 434
Increased interest revenue on higher than anticipated cash balances 45
(2) Lower than anticipated employee expenses - 223
Lower than anticipated depreciation expenses - 180
149Additional Financial Information
Government Printing Office
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 5 659 4 647 - 1 012 (1)
Community service obligations
Other revenue 74 71 - 3
Operating expenses (after income tax) 5 943 5 479 - 464 (2)
Net surplus(+)/deficit(-) - 210 - 761 - 551
Significant variances
(1) Lower operating revenue due to lower than anticipated sales - 1 012
(2) Lower than anticipated operating costs related to lower demand for services - 493
150
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Data Centre Services
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 26 398 26 378 - 20
Community service obligations
Other revenue 297 285 - 12
Operating expenses (after income tax) 23 220 23 760 540 (1)
Net surplus(+)/deficit(-) 3 475 2 904 - 571
Significant variances
(1) Higher than anticipated operational expenses relating to increased information, communication and technology costs, offset by lower employee expenses
633
Higher than anticipated depreciation expenses 133
Lower than anticipated income tax expenses due to reduced surplus - 244
151Additional Financial Information
Department of Transport
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 144 962 150 272 5 310 (1)
Capital 53 750 48 690 - 5 060 (2)
Commonwealth 78 769 78 769
TOTAL APPROPRIATION 277 481 277 731 250
Significant variances
(1) Transfer of funding from the Department of Infrastructure for the grant to Thamarrur Development Corporation for the Port Keats aerodrome apron
250
Transfer from capital to output appropriation for Disaster Maintenance, legal fees and bus trials 5 060
(2) Transfer from capital to output appropriation for Disaster Maintenance, legal fees and bus trials - 5 060
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 186 909 189 584 2 675 (3)
Expenses 229 187 231 697 2 510 (4)
Net surplus(+)/deficit(-) - 42 278 - 42 113 165
Significant variances
(3) Timing variations for Commonwealth funding largely relating to repairs and maintenance and for the NT Regional Infrastructure study
2 717
(4) Higher than anticipated employee, operational and depreciation expenses due to increased service demand
7 430
Lower than anticipated repairs and maintenance expenditure and timing of grant applications largely relating to DriveSafe Urban
- 4 828
This agency was formed as a result of the 2012 Public Sector restructures.
152
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Darwin Bus Service
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 8 272 8 633 361 (1)
Community service obligations
Other revenue 662 538 - 124 (2)
Operating expenses (after income tax) 8 585 8 839 254 (3)
Net surplus(+)/deficit(-) 349 332 - 17
Significant variances
(1) Higher than anticipated operating revenue 361
(2) Lower than anticipated interest revenue and disposal of assets - 132
(3) Higher than anticipated employee expenses offset by lower than anticipated depreciation expenses
154
153Additional Financial Information
Darwin Port Corporation
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 37 025 43 020 5 995 (1)
Community service obligations 3 496 3 496
Other revenue 3 019 4 070 1 051 (2)
Operating expenses (after income tax) 36 978 38 891 1 913 (3)
Net surplus(+)/deficit(-) 6 562 11 695 5 133
Significant variances
(1) Higher than anticipated cargo volume and vessel activity 5 995
(2) Higher than anticipated rent received for land at East Arm Wharf 633
Higher than anticipated insurance recoveries and other ancillary charges 254
(3) Higher than anticipated operating expenses relating to increased volumes and costs associated with the incinerator
1 755
154
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Treasury and Finance
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 105 465 109 090 109 090 3 625 (1)
Capital
Commonwealth 7 607 607
TOTAL APPROPRIATION 105 465 109 097 109 697 4 232
Significant variances
(1) Funding to support extension of the BuildBonus scheme 900
Administrative efficiencies - 1 200
Increased First Home Owner Grant 4 000
Support for increased taxation compliance 100
Transfer of funding to the Department of Corporate and Information Services for property management
- 175
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 112 880 112 497 - 383 (2)
Expenses 112 548 113 490 942 (3)
Net surplus(+)/deficit(-) 332 - 993 - 1 325
Significant variances
(2) Lower than anticipated goods and services received free of charge - 243
Lower than anticipated fees and charges - 94
(3) One-off employee expenses associated with the change of government and operational costs associated with negotiation of the building lease
834
This agency was renamed from Northern Territory Treasury as part of the 2012 Public Sector restructures.
155Additional Financial Information
Northern Territory Treasury Corporation
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 473 471 - 2
Community service obligations
Other revenue 257 528 257 583 55
Operating expenses (after income tax) 234 925 234 392 - 533
Net surplus(+)/deficit(-) 23 076 23 663 587
Significant variances
No significant variations
156
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Business
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 115 991 115 991
Capital
Commonwealth 19 962 20 109 147
TOTAL APPROPRIATION 135 953 136 100 147
Significant variances
No significant variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 147 502 149 413 1 911 (1)
Expenses 150 440 149 278 - 1 162 (2)
Net surplus(+)/deficit(-) - 2 938 136 3 074
Significant variances
(1) Revised timing of Commonwealth funding including for the Gaming and Licensing Signage program
2 670
Lower than anticipated goods and services received free of charge - 689
(2) Lower than anticipated goods and services free of charge - 689
Lower than anticipated depreciation expenses - 303
This agency was formed as a result of the 2012 Public Sector restructures.
157Additional Financial Information
Department of the Attorney-General and Justice
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 80 023 80 023
Capital
Commonwealth
TOTAL APPROPRIATION 80 023 80 023
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 100 869 100 483 - 386
Expenses 105 978 105 549 - 429
Net surplus(+)/deficit(-) - 5 109 - 5 066 43
Significant variances
No significant variations
This agency was formed as a result of the 2012 Public Sector restructures.
158
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Office of the Commissioner for Public Employment
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 5 992 4 882 4 882 - 1 110 (1)
Capital
Commonwealth
TOTAL APPROPRIATION 5 992 4 882 4 882 - 1 110
Significant variances
(1) Program efficiencies and rationalisation - 1 057
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 7 048 7 089 41
Expenses 6 996 6 666 - 330 (2)
Net surplus(+)/deficit(-) 52 423 371
Significant variances
(2) Lower than anticipated employee and operational expenses mainly relating to changes in lease arrangements
- 320
159Additional Financial Information
Department of Correctional Services
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 125 507 125 507
Capital 656 656
Commonwealth 280 280
TOTAL APPROPRIATION 126 443 126 443
Significant variances
No variation in appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13 Total Variance
$000 $000 $000
Income 134 682 137 509 2 827 (1)
Expenses 145 304 145 216 - 88
Net surplus(+)/deficit(-) - 10 622 - 7 708 2 914
Significant variances
(1) Higher than anticipated goods and services received free of charge 2 015
Higher than anticipated revenue from prison canteen sales 674
This agency was formed as a result of the 2012 Public Sector restructures.
160
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Health
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 822 852 899 449 897 449 74 597 (1)
Capital 4 445 2 029 2 029 - 2 416 (2)
Commonwealth 218 803 220 430 224 109 5 306 (3)
TOTAL APPROPRIATION 1 046 100 1 121 908 1 123 587 77 487
Significant variances(1) Transfer of functions resulting from the Public Sector restructure 15 071
Program efficiencies and rationalisation - 2 902
Administrative efficiencies - 9 749
Funding for the operation of secure care facilities 1 600
Funding for operational expenses of clients in 24-hour supported accommodation under Forensic Part IIA orders
503
Grant to BushMob for youth rehabilitation service 570
Review of the Patient Assistance Travel Scheme 2 000
Enhanced cardiac outreach services and cardiac rehabilitation services and the commencement of low risk angioplasty services
6 500
Increased utilities concessions to pensioners and seniors 3 900
Additional 400 elective surgeries per annum 4 460
Operational costs for the expanded Alice Springs Hospital Emergency Department 2 357
Increased repairs and maintenance funding 2 600
Transfer of capital to output appropriation resulting from the Public Sector restructure 2 416
Additional funding to meet increased demand and cost pressures for health services 44 926
(2) Transfer of capital to output appropriation resulting from the Public Sector restructure - 2 416
(3) Additional funding for various National Partnership Agreements 5 306
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 1 241 798 1 238 124 - 3 674 (4)
Expenses 1 257 453 1 235 013 - 22 440 (5)
Net surplus(+)/deficit(-) - 15 655 3 110 18 765
Significant variances(4) Revised timing of Commonwealth funding for National Partnership Agreements including Disability
Services and Tackling Alcohol Abuse- 3 802
Lower than anticipated goods and services received free of charge - 2 994
Cost recovery from the Department of Immigration and Citizenship for additional ambulance services at the detention centre
3 092
(5) Lower than anticipated employee and operational expenses - 31 593
Lower than anticipated repairs and maintenance and goods and services free of charge - 4 011
Higher than anticipated grant expenditure 13 913
Lower than anticipated payments for the Pensioner Concession Scheme - 1 074
161Additional Financial Information
Top End Hospital Network
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 256 778 257 159 381
Community service obligations
Other revenue 295 568 298 971 3 403 (1)
Operating expenses (after income tax) 569 159 562 922 - 6 237 (2)
Net surplus(+)/deficit(-) - 16 813 - 6 792 10 021
Significant variances
(1) Higher than anticipated Commonwealth grants received late in the financial year 3 049
(2) Lower than anticipated costs associated with lower hospital activity and cross border charges - 7 043
162
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Central Australian Hospital Network
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 152 738 150 555 - 2 183 (1)
Community service obligations
Other revenue 69 331 71 166 1 835 (2)
Operating expenses (after income tax) 228 522 230 805 2 283 (3)
Net surplus(+)/deficit(-) - 6 453 - 9 085 - 2 632
Significant variances
(1) Lower than anticipated revenue primarily relating to cross border activities - 2 183
(2) Revised timing of Commonwealth grants received late in the financial year 1 625
(3) Higher than anticipated employee and grant expenses 3 515
Lower than anticipated repairs and maintenance and depreciation expenses - 1 243
163Additional Financial Information
Department of Education and Children’s Services
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 562 179 557 181 557 181 - 4 998 (1)
Capital
Commonwealth 215 576 225 278 225 278 9 702 (2)
TOTAL APPROPRIATION 777 755 782 459 782 459 4 704
Significant variances
(1) Net result of transfer of funding from various agencies 692
Transfer of funding to the Department of Infrastructure for various minor new works and capital projects
- 2 932
Additional funding for the increased Back to School Voucher scheme 3 300
Additional funding for the Child Care Toy Fund 150
Increase in repairs and maintenance funding 5 800
Additional funding for School Councils to offset utility costs in schools 2 825
Program efficiencies and rationalisation - 14 833
(2) Additional funding under the National Schools Specific Purpose Payment 3 800
Additional funding for various National Partnerships 5 902
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Operating statement
Income 823 087 814 468 - 8 619 (3)
Expenses 863 227 864 922 1 695
Net surplus(+)/deficit(-) - 40 140 - 50 453 - 10 313
Significant variances
(3) Revised timing of Commonwealth revenue - 3 228
Delay in the process to convert a grant to a loan - 6 000
This agency was renamed from the Department of Education and Training as part of the 2012 Public Sector restructures.
164
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Housing
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 59 492 59 492
Capital 53 107 53 107
Commonwealth 194 545 194 860 315
TOTAL APPROPRIATION 307 144 307 459 315
Significant variances
No significant variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 217 778 229 847 12 069 (1)
Expenses 262 034 678 743 416 709 (2)
Net surplus(+)/deficit(-) - 44 256 - 448 897 - 404 641
Significant variances
(1) Higher than anticipated Commonwealth revenue for Ampilatwatja septic systems 1 460
Higher than anticipated rent revenue from remote public housing and government employee housing
11 067
Lower that anticipated goods and services received free of charge - 586
(2) Higher than anticipated property management expenses, including head-leasing, council rates and utilities
10 887
Remote Indigenous Housing expenditure, previously recognised as works in progress, has been expensed on completion, in accordance with Australian Accounting Standards
276 105
Higher than anticipated depreciation expenses due to the completion of remote housing assets 39 150
Transfer of remote utility infrastructure assets to Indigenous Essential Services Pty Ltd 96 119
Timing of expenses relating to Remote Indigenous Housing projects, Alice Springs town camps fencing, and supported accommodation and homelessness grants
- 6 705
This agency was formed as a result of the 2012 Public Sector restructures.
165Additional Financial Information
NT Home Ownership
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Operating statement
Goods and services revenue 42 42
Community service obligations 815 815
Other revenue 14 346 15 649 1 303 (1)
Operating expenses (after income tax) 15 029 15 917 888 (2)
Net surplus(+)/deficit(-) 132 590 458
Significant variances
(1) Higher than anticipated revaluation of shared equity properties 1 496
Lower than anticipated interest revenue - 193
(2) Higher than anticipated expenses relating to increase in loan approvals 994
Lower than anticipated grant payments - 63
166
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Lands, Planning and the Environment
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 65 568 65 568
Capital 1 782 1 782
Commonwealth
TOTAL APPROPRIATION 67 350 67 350
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 74 883 79 680 4 797 (1)
Expenses 78 024 74 889 - 3 135 (2)
Net surplus(+)/deficit(-) - 3 141 4 792 7 933
Significant variances
(1) Higher than anticipated profit on sale of land 4 585
(2) Higher than anticipated employee expenses 955
Lower than anticipated repairs and maintenance expenditure - 3 569
This agency was formed as a result of the 2012 Public Sector restructures.
167Additional Financial Information
Land Development Corporation
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 7 078 6 668 - 410 (1)
Community service obligations
Other revenue 4 049 12 922 8 873 (2)
Operating expenses (after income tax) 10 235 7 796 - 2 439 (3)
Net surplus(+)/deficit(-) 892 11 794 10 902
Significant variances
(1) Lower than anticipated industrial land sales - 410
(2) Higher than anticipated unrealised gains on long term leased land 8 924
(3) Lower than anticipated repairs and maintenance expenses - 1 026
Tax credit related to change in methodology used in calculating tax expenses - 1 265
168
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Primary Industry and Fisheries
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 39 647 39 552 - 95
Capital 151 246 95
Commonwealth
TOTAL APPROPRIATION 39 798 39 798
Significant variances
No significant variation in appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 50 521 51 583 1 062 (1)
Expenses 54 799 53 897 - 902 (2)
Net surplus(+)/deficit(-) - 4 278 - 2 314 1 964
Significant variances
(1) Additional Commonwealth revenue relating to the Ord River project and revised timing of externally funded projects
1 022
(2) Higher than anticipated employee expenses for externally funded projects 894
Revised timing of expenditure for externally funded programs and the NT Fishing Industry Research Development Fund
- 1 644
This agency was formed as a result of the 2012 Public Sector restructures.
169Additional Financial Information
Department of Mines and Energy
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 18 215 18 215
Capital 66 66
Commonwealth 1 474 1 474
TOTAL APPROPRIATION 19 755 19 755
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 24 077 23 343 - 734 (1)
Expenses 25 819 25 473 - 346 (2)
Net surplus(+)/deficit(-) - 1 742 - 2 131 - 389
Significant variances
(1) Lower than anticipated services received free of charge - 206
Lower than anticipated revenue largely relating to conference registrations for the Australia China Minerals Investment Summit and lower than estimated revenue for an Independent Monitor for McArthur River Mine
- 525
(2) Lower than anticipated expenditure relating to the Rum Jungle mine site rehabilitation - 231
Increased depreciation expenses 115
Lower than anticipated services free of charge - 206
This agency was formed as a result of the 2012 Public Sector restructures.
170
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Land Resource Management
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 35 540 35 540
Capital 345 345
Commonwealth 4 136 4 136
TOTAL APPROPRIATION 40 021 40 021
Significant variances
No variation in appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 54 631 56 281 1 650 (1)
Expenses 55 770 55 157 - 613 (2)
Net surplus(+)/deficit(-) - 1 139 1 124 2 263
Significant variances
(1) Higher than anticipated goods and services received free of charge 1 693
(2) Lower employee expenses and revised timing of expenditure on externally funded programs, offset by higher services free of charge
- 463
This agency was formed as a result of the 2012 Public Sector restructures.
171Additional Financial Information
Office of Children and Families
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 146 377 143 059 143 059 - 3 318 (1)
Capital
Commonwealth 13 257 8 123 8 347 - 4 910 (2)
TOTAL APPROPRIATION 159 634 151 182 151 406 - 8 228
Significant variances
(1) Transfer of functions resulting from the Public Sector restructure - 14 366
Transfer of funding to the Department of Corporate and Information Services for property management
- 202
Redirection of savings for child protection staff and out-of-home care services 14 200
Additional funding for child protection and out-of-home care services 10 000
Expansion of the Somerville Community Centre in Palmerston 2 000
Administrative efficiencies - 5 900
Program efficiencies and rationalisation - 9 300
(2) Transfer of funding resulting from the Public Sector restructure - 5 303
Additional funding under the Stronger Futures National Partnership Agreement 393
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 159 605 160 760 1 155 (3)
Expenses 171 533 176 641 5 108 (4)
Net surplus(+)/deficit(-) - 11 928 - 15 881 - 3 953
Significant variances
(3) Repayments of unspent grant funding from prior years 1 156
(4) Lower than anticipated employee and operational expenses - 7 318
Higher than anticipated expenses associated with the delivery of child protection and out-of-home care services
12 074
This agency was renamed from the Department of Children and Families as part of the 2012 Public Sector restructures.
172
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Regional Development and Women’s Policy
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 111 629 111 629
Capital
Commonwealth 9 356 9 356
TOTAL APPROPRIATION 120 985 120 985
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Operating statement
Income 144 169 146 526 2 357 (1)
Expenses 161 947 153 102 - 8 845 (2)
Net surplus(+)/deficit(-) - 17 778 - 6 576 11 202
Significant variances
(1) Timing of Commonwealth funding for cross border Indigenous interpreter services 714
Higher than anticipated revenue for Service Level Agreement payments relating to land tenure and infrastructure delivery
1 047
Higher that anticipated goods and services received free of charge 281
Revised timing of external grants 336
(2) Higher than anticipated employee expenses relating to Service Level Agreements for land tenure and infrastructure delivery
1 399
Lower than anticipated expenditure relating to the Cadastral Survey Program in remote communities
- 1 249
Revised timing for grant payments relating to Homelands and Housing Maintenance Program - 9 277
This agency was formed as a result of the 2012 Public Sector restructures.
173Additional Financial Information
Department of Local Government
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 42 355 44 669 2 314 (1)
Capital
Commonwealth 200 200
TOTAL APPROPRIATION 42 555 44 869 2 314
Significant variances
(1) Additional funding for Natural Disaster claims by local councils 2 314
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 61 344 77 599 16 255 (2)
Expenses 63 824 77 353 13 529 (3)
Net surplus(+)/deficit(-) - 2 480 246 2 726
Significant variances
(2) Timing variations of Commonwealth funding relating to Financial Assistance and Roads grants 16 327
(3) Revised timing of expenditure relating to Commonwealth funded programs - 2 000
Timing variations of Commonwealth funding relating to Financial Assistance and Roads grants 16 327
This agency was formed as a result of the 2012 Public Sector restructures.
174
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Aboriginal Areas Protection Authority
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 3 115 2 798 2 798 - 317 (1)
Capital 38 - 38 (2)
Commonwealth
TOTAL APPROPRIATION 3 153 2 798 2 798 - 355
Significant variances
(1) Administrative efficiencies - 317
(2) Program efficiencies and rationalisation - 38
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 5 460 5 626 166 (3)
Expenses 5 475 6 072 597 (4)
Net surplus(+)/deficit(-) - 15 - 446 - 431
Significant variances
(3) Increased Authority Certificate services 118
(4) Higher than anticipated operating expenses due to unforseen legal costs, the continuation of the information technology replacement project and higher depreciation expenses
559
175Additional Financial Information
Tourism NT
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000 $000
Output 39 184 42 208 41 708 2 524 (1)
Capital
Commonwealth
TOTAL APPROPRIATION 39 184 42 208 41 708 2 524
Significant variances
(1) Transfer of functions resulting from the Public Sector restructure 3 160
Establishment of the Tourism Commission Board 250
Additional support for the V8 Supercars and Superbikes 159
Revised timing of funding to support airline industries - 250
Transfer funding to the Department of Infrastructure for works at Harbour View Plaza and Jaliston House
- 695
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 46 515 47 023 508 (2)
Expenses 46 047 47 061 1 014 (3)
Net surplus(+)/deficit(-) 468 - 38 - 506
Significant variances
(2) Funding received from the Department of Business as contribution towards fitout of Harbour View Plaza
250
Higher than anticipated goods and services received free of charge 236
(3) Higher than anticipated operating expenses due to increased marketing 528
Higher than anticipated services free of charge 236
Additional grant paid to the NT Major Events Company 305
176
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Territory Discoveries
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 2 692 2 932 240 (1)
Community service obligations 1 041 1 041
Other revenue 1 593 1 630 37
Operating expenses (after income tax) 5 458 5 646 188 (2)
Net surplus(+)/deficit(-) - 132 - 43 89
Significant variances
(1) Increase in priority partner funding 240
(2) Increase in marketing expenses 229
Lower than anticipated employee expenses - 44
177Additional Financial Information
Department of Sport and Recreation
Appropriation
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 46 669 46 669
Capital
Commonwealth
TOTAL APPROPRIATION 46 669 46 669
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 48 529 48 177 - 352
Expenses 52 721 51 532 - 1 189 (1)
Net surplus(+)/deficit(-) - 4 192 - 3 355 837
Significant variances
(1) Timing of expenditure, largely related to the School Sports Voucher scheme - 2 412
Increased depreciation expenses 736
Increased capital grant to upgrade ANZAC Oval 600
This agency was formed as a result of the 2012 Public Sector restructures.
178
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Parks and Wildlife Commission of the Northern Territory
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 45 856 45 856
Capital 382 382
Commonwealth
TOTAL APPROPRIATION 46 238 46 238
Significant variances
No variation to appropriation
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 50 370 49 128 - 1 242 (1)
Expenses 53 839 53 760 - 79
Net surplus(+)/deficit(-) - 3 469 - 4 633 - 1 164
Significant variances
(1) Lower than anticipated goods and services received free of charge - 1 593
Additional revenue for compliance activities 268
This agency was formed as a result of the 2012 Public Sector restructures.
179Additional Financial Information
Territory Wildlife Parks
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 2 320 2 153 - 167 (1)
Community service obligations 7 915 7 915
Other revenue 18 19 1
Operating expenses (after income tax) 12 057 11 941 - 116 (2)
Net surplus(+)/deficit(-) - 1 804 - 1 854 - 50
Significant variances
(1, 2) Decline in visitor numbers resulting in lower revenue and expenses - 167
180
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Department of Arts and Museums
Appropriation May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 33 418 33 418
Capital 38 38
Commonwealth 696 807 111 (1)
TOTAL APPROPRIATION 34 152 34 263 111
Significant variances
(1) Additional National Partnership Agreement funding to support Remote Indigenous Public Internet Access
111
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 40 008 40 915 907 (2)
Expenses 43 210 43 879 669 (3)
Net surplus(+)/deficit(-) - 3 202 - 2 964 238
Significant variances
(2) Higher than anticipated services received free of charge 1 083
(3) Higher that anticipated services free of charge, offset by lower employee and operational expenses 669
This agency was formed as a result of the 2012 Public Sector restructures.
181Additional Financial Information
Department of Infrastructure
Appropriation May 2012 Published
Budget
May 2013 Final
Estimate
Final Approved
BudgetTotal
Variance
$000 $000 $000
Output 13 105 25 170 32 452 19 347 (1)
Capital 207 208 228 204 221 072 13 864 (2)
Commonwealth 58 872 58 872 58 872
TOTAL APPROPRIATION 279 185 312 246 312 396 33 211
Significant variances
(1) Transfer from capital to output appropriation for legal fees, grants and information technology 7 282
Funding to support the Asset Management System 12 900
Administrative efficiencies - 835
(2) Transfer from capital to output appropriation for legal fees, grants and information technology - 7 282
Funding to support the Asset Management System 1 300
Revised timing of funding for the Marine Supply Base - 10 500
Net transfers of funding from government agencies for various infrastructure projects 4 957
Increase in capital works cash to support capital works projects 24 000
Operating Statement Final Approved
Budget 2012-13
Actual Result
2012-13Total
Variance
$000 $000 $000
Income 42 589 42 560 - 29
Expenses 45 062 45 815 753 (3)
Net surplus(+)/deficit(-) - 2 473 - 3 255 - 782
Significant variances
(3) Lower than anticipated employee and goods and services expenses offset by higher than anticipated repairs and maintenance
631
This agency was renamed from the Department of Construction and Infrastructure as part of the 2012 Public Sector restructures.
182
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
Construction Division
Operating Statement May 2013 Final
Estimates 2012-13
Actual Result
2012-13 Variance
$000 $000 $000
Goods and services revenue 57 782 73 613 15 831 (1)
Community service obligations
Other revenue 201 201 (2)
Operating expenses (after income tax) 56 085 73 593 17 508 (3)
Net surplus(+)/deficit(-) 1 697 221 - 1 476
Significant variances
(1) Additional project management revenue from higher than anticipated construction activity 15 831
(2) Various miscellaneous revenue items 201
(3) Additional project management expenses associated with higher than anticipated construction activity
17 508
183Additional Financial Information
Uniform Presentation Framework
Supplementary Tables
General Government Sector Taxes
2012-13 Actual
2011-12 Actual
$M $M
Taxes on employers’ payroll and labour force 205 171
Taxes on property
Stamp duties on financial and capital transactions 128 93
Taxes on the provision of goods and services
Taxes on gambling 55 53
Taxes on insurance 42 35
Taxes on the use of goods and performance of activities
Motor vehicle registration fees 60 50
Total taxes 491 403
General Government Sector Grant Revenue
2012-13 Actual
2011-12 Actual
$M $M
Current grant revenue
Current grants from the Commonwealth (Including for on-passing)
National partnership payments 247 394
Specific purpose payments 239 356
General purpose grants 3 123 2 756
Total current grant revenue 3 608 3 505
Capital grant revenue
Capital grants from the Commonwealth (including for on-passing)
National partnership payments 164 450
General purpose grants 7 30
Total capital grant revenue 171 480
Total grant revenue 3 779 3 985
184
2012-13 Treasurer’s Annual Financial Report
Additional Financial Information
General Government Sector Grant Expense
2012-13 Actual
2011-12 Actual
$M $M
Current grant expense including subsidies and personal benefit payments
Local government 118 146
Private and not-for-profit sector (including for on-passing) 591 584
Grants to other sectors of government 55 43
Other 172 178
Total current grants expense including subsidies and personal benefit payments 935 951
Capital grant expense
Local government 7 23
Private and not-for-profit sector (including for on-passing) 24 32
Grants to other sectors of government 36 23
Other 67
Total capital grant expense 134 78
Total grant expense 1 069 1 029
General Government Sector Dividend and Income Tax Equivalent Income
2012-13 Actual
2011-12 Actual
$M $M
Dividend and income tax equivalent income from public non financial corporations sector - 2 9
Dividend and income tax equivalent income from public financial corporations sector 43 32
Total dividend and income tax equivalent income 41 41
185Additional Financial Information
General Government Sector Purchases of Non Financial Assets by Function
2012-13 Actual
2011-12 Actual
$M $M
General public services 12 26
Public order and safety 57 67
Education 40 88
Health 76 109
Housing and community amenities 265 373
Recreation and culture 25 71
Agriculture, forestry, fishing and hunting 2 6
Mining, manufacturing and construction 54 40
Transport and communications 100 160
Other purposes 2 4
Total Purchases of Non Financial Assets 633 943
Loan Council Allocation
Original Budget 2012-13
Actual 2012-13
$M $M
General government sector cash deficit (+)/surplus (-) 432 227
Public non financial corporations sector cash deficit (+)/surplus (-) 307 262
Non financial public sector cash deficit (+)/surplus (-) 738 489
minus Acquisitions under finance leases and similar arrangements - 41
equals ABS GFS cash deficit (+)/surplus (-) 738 530
minus Net cash flows from investments in financial assets for policy purposes - 12 - 62
plus Memorandum Items
2012-13 Loan Council allocation1 750 592
1 The actual result for 2012-13 is a deficit of $592 million, a $158 million decrease from the 2012-13 Budget time estimate of $750 million deficit. This is outside the revised tolerance limit of 2 per cent of non financial public sector operating cash receipts, which is calculated based on the 2012-13 Budget-time estimate.
Treasurer’s Annual Financial Report
2012-13 Treasurer’s Annual Financial R
eport
Department of Treasury and Finance38 Cavenagh Street
GPO Box 1974, Darwin NT 0801Telephone: (08) 8999 7406Facsimile: (08) 8999 7150
Website: www.treasury.nt.gov.au