2007-08 annual reports of the president of the australian ... · 2007–08, an independent valuer,...

115Australian Industrial Registry 2007–08 Annual Report

Financial Statements

Independent Audit Report ........................................................................................................... 116

Statement by the Chief Executive and the Chief Finance Officer .................................................. 118

Income Statement ....................................................................................................................... 119

Balance Sheet ............................................................................................................................. 120

Statement of Changes in Equity .................................................................................................. 121

Cash Flow Statement .................................................................................................................. 122

Schedule of Commitments .......................................................................................................... 123

Schedule of Administered Items .................................................................................................. 125

Notes to and Forming Part of the Financial Statements ................................................................ 127

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116 2007–08 Annual Report Australian Industrial Registry

5Appendix


5Appendix



5Appendix

STATEMENT BY THE CHIEF EXECUTIVE AND THE CHIEF FINANCE OFFICER

In our opinion, the attached financial statements of the Australian Industrial Registry for the year ended 30 June 2008 have been prepared based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Financial Management and Accountability Act 1997, as amended.

Signed SignedDS Williams Dennis MihelyiIndustrial Registrar and Chief Executive Chief Finance Officer17 September 2008 17 September 2008


5Appendix

2008 2007

Notes $’000 $’000

INCOMERevenue

Revenue from Government 3a 53,683 66,450

Sale of goods and rendering of services

Rental income

3b

3c

76685

43

-

Other revenue 3d 38 36

Total Revenue 54,482 66,529

GainsSale of assets 3e 3 30

Other gains 3f 24 123

Total Gains 27 153

TOTAL INCOME 54,509 66,682

EXPENSESEmployee benefits 4a 26,629 26,178

Suppliers 4b 18,427 28,869

Depreciation and amortisation 4c 820 799

Finance costs 4d 151 267

Write-down and impairment of assets 4e 13 77

Losses from asset sales 4f 5 -

Liquidated damages 4g - 1,853

TOTAL EXPENSES 46,045 58,043

SURPLUS 8,464 8,639

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

INCOME STATEMENTfor the period ended 30 June 2008



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2008 2007

Notes $’000 $’000

ASSETS

Financial Assets

Cash and cash equivalents 5a 252 446

Trade and other receivables 5b 42,397 34,402

Total financial assets 42,649 34,848

Non-financial Assets

Buildings and leasehold improvements 6a 3,256 2,894

Plant and equipment 6b 1,027 1,858

Intangibles 6c 996 729

Other non-financial assets 6d 1,236 1,133

Total non-financial assets 6,515 6,614

Total Assets 49,164 41,462

LIABILITIES

Payables

Suppliers 7a 668 1,321

Total payables 668 1,321

Provisions

Employee provisions 8a 10,818 10,580

Other provisions 8b 7,402 7,730

Total provisions 18,220 18,310

Total Liabilities 18,888 19,631

NET ASSETS 30,276 21,831

EQUITY

Parent Entity Interest

Contributed equity 8,802 8,802

Reserves 186 205

Retained surplus 21,288 12,824

Total Equity 30,276 21,831

Current Assets 43,885 35,981

Non-Current Assets 5,279 5,481

Current Liabilities 11,724 12,325

Non-Current Liabilities 7,164 7,306


BALANCE SHEETas at 30 June 2008


5Appendix

Retained Earnings

Revaluation Reserve

Contributed Equity/Capital Total Equity

2008 2007 2008 2007 2008 2007 2008 2007

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

Opening balance 12,824 4,185 205 205 8,802 2,125 21,831 6,515

Income and expensesIncome and expenses recognised Directly in Equity - - (19) - - - (19) -

Sub-total income and expenses recognised Directly in Equity - - (19) - - - (19) -

Surplus for the period 8,464 8,639 - - - - 8,464 8,639

Total income and expenses 8,464 8,639 (19) - - - 8,445 8,639

Transactions with owners

Contributions by ownersAppropriation (equity injection) - - - - - 6,677 - 6,677

Sub-total transactions with owners - - - - - 6,677 - 6,677

Closing Balance at 30 June 21,288 12,824 186 205 8,802 8,802 30,276 21,831


STATEMENT OF CHANGES IN EQUITYas at 30 June 2008



5Appendix

2008 2007

Notes $’000 $’000

OPERATING ACTIVITIES

Cash received

Goods and services 858 105

Appropriations 45,799 60,250

Net GST received from ATO 1,778 3,685

Total cash received 48,435 64,040

Cash used

Employees (26,398) (26,118)

Suppliers (21,580) (34,537)

Total cash used (47,978) (60,655)

Net cash flows from operating activities 9 457 3,385

INVESTING ACTIVITIES

Cash received

Proceeds from sale of plant and equipment 3 34

Total cash received 3 34

Cash used

Purchase of plant and equipment 228 2,766

Purchase of intangibles 426 223

Total cash used 654 2,989

Net cash flows (used by) investing activities (651) (2,955)

Net decrease in cash held (194) 430

Cash and cash equivalents at the beginning of the reporting period 446 16

Cash and cash equivalents at the end of the reporting period 5a 252 446


CASH FLOW STATEMENTfor the period ended 30 June 2008


5Appendix

2008 2007

$’000 $’000

BY TYPE

Commitments receivable

Sub-lease rental income (3,361) (970)

GST recoverable on commitments (9,453) (10,244)

Total commitments receivable (12,814) (11,214)

Other commitments

Operating leases 106,432 112,347

Other commitments 1,244 340

Total other commitments 107,676 112,687

Net commitments by type 94,862 101,473

BY MATURITY

Commitments receivable

Operating lease income

One year or less (695) (477)

From one to five years (1,333) (493)

Over five years (1,333) -

Total operating lease income (3,361) (970)

Other commitments receivable

One year or less (1,256) (1,085)

From one to five years (4,189) (4,215)

Over five years (4,008) (4,944)

Total other commitments receivable (9,453) (10,244)

Commitments payable

Operating lease commitments

One year or less 13,482 11,597

From one to five years 47,392 46,364

Over five years 45,558 54,386

Total operating lease commitments 106,432 112,347

SCHEDULE OF COMMITMENTSas at 30 June 2008



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2008 2007

$’000 $’000

Other commitments

One year or less 1,088 340

From one to five years 156 -

Over five years - -

Total other commitments 1,244 340

Net commitments by maturity 94,862 101,473

NB: All commitments are GST inclusive where relevant.

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

Nature of lease General description of leasing arrangement

Leases for office accommodation Lease payments are subject to either increase in accordance � with fixed amounts in the lease agreement or market rental reviews.

The AIR may exercise option clauses in accordance with the � terms of the leases.

Sub-lease of office accommodation The AIR has agreed to sub-let part of the Sydney premises to � the Federal Court of Australia for a two year period with two further one year options subject to consent by the AIR and the Federal Court.

The sub-lease has one year remaining. �

The AIR has agreed to sub-let part of the Perth premises � to Western Australian Minister for Works for a period of six months and has one month remaining.

The AIR has agreed to sub-let part of the Melbourne premises � to Calliden Group Ltd for a five year period with an option for a further term of four years and eight months. The sub-lease has 4 years and nine months remaining.

Agreements for the provision of motor vehicles to senior executive officers and members of the Australian Industrial Relations Commission

Leases are part of an operating lease and there are no � purchase options available to the AIR.

Lease in relation to computer and office equipment

The lessors provide all computer and office equipment in � accordance with the lease agreements.

The AIR may negotiate extensions at expiration. �


SCHEDULE OF COMMITMENTS as at 30 June 2008 (continued)


5Appendix

2008 2007

Notes $’000 $’000

Income administered on behalf of Government

for the period ended 30 June 2008

Revenue

Non-taxation revenue

Termination of employment lodgment fees 305 228

Less refunds of termination of employment lodgment fees (33) (31)

Total non-taxation revenue 272 197

Total Revenues administered on behalf of Government 272 197

No assets or liabilities administered on behalf of the Government for 2007–08 and 2006–07.

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

SCHEDULE OF ADMINISTERED ITEMS



5Appendix

2008 2007

Notes $’000 $’000

Administered Cash Flows

for the period ended 30 June 2008

OPERATING ACTIVITIES

Cash received

Other taxes, fees & fines 272 197

Total cash received 272 197

Net cash flows from operating activities 272 197

Net Increase in Cash Held 272 197

Cash to Official Public Account for:

– Other (272) (197)

– Lease incentive and liquidated damages repaid - (15,023)

(272) (15,220)

Cash and cash equivalents at the beginning of the reporting period - 15,023

Cash and cash equivalents at the end of the reporting period - -


SCHEDULE OF ADMINISTERED ITEMS(continued)


5Appendix

Note 1 Summary of Significant Accounting Policies

Note 2 Events Occurring after Reporting Date

Note 3 Income

Note 4 Expenses

Note 5 Financial Assets

Note 6 Non-financial Assets

Note 7 Payables

Note 8 Provisions

Note 9 Cash Flow Reconciliation

Note 10 Contingent Liabilities and Assets

Note 11 Senior Executive Remuneration

Note 12 Remuneration of Auditors

Note 13 Financial Instruments

Note 14 Administered Reconciliation Table

Note 15 Administered Contingent Liabilities and Assets

Note 16 Appropriations

Note 17 Special Accounts

Note 18 Compensation and Debt Relief

Note 19 Reporting of Outcome

INDEX TO THE NOTES OF THE FINANCIAL STATEMENTS for the period ended 30 June 2008



5Appendix

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Australian Industrial Registry

The Australian Industrial Registry (AIR) is a statutory authority established under s.62 of the Workplace Relations Act 1996 (WR Act).

The AIR is responsible for a single outcome. Outcome 1 “Cooperative workplace relations which promote the economic prosperity and welfare of the people of Australia”. The AIR activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the AIR in its own right. Administered activities involve the management or oversight by the AIR, on behalf of the Government, of items controlled or incurred by the Government. Departmental activities are identified under three outputs:

Output 1.1 Dispute resolution, orders and decisions;

Output 1.2 Registered organisations, compliance checks and investigations; and

Output 1.3 Publications and information services.

The AIR conducts the following administered activities:

the collection of termination of employment lodgment fees; and �

payment of pensions to former presidential members of the Australian Industrial Relations �Commission (AIRC) or their spouses under the Judges’ Pension Act 1968 drawn down from the Attorney-General’s Department.

The AIR’s mission is to facilitate the operations of the Australian workplace relations system. To carry out its mission, the AIR seeks to achieve the following goals:

act as the registry for the AIRC and to provide administrative support to the AIRC; �

to provide advice and assistance to organisations in relation to their rights and obligations under �the WR Act; and

such other functions as conferred upon the AIR by the WR Act, the � Building and Construction Industry Improvement Act 2005 or the Registration and Accountability of Organisations Schedule.

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

1.2 Basis of Preparation of the Financial Statements

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

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the period ended 30 June 2008


5Appendix

The financial statements and notes have been prepared in accordance with:

Finance Minister’s Orders (or the FMOs) for reporting periods ending on or after 1 July 2007; and �

Australian Accounting Standards and Interpretations issued by the Australian Accounting �Standards Board (AASB) that apply for the reporting period.

The Financial Report has been prepared on an accrual basis and is in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The Financial Report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an Accounting Standard or FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Entity or a future sacrifice or economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrealised are reported in the Schedule of Commitments.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the Income Statement when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for departmental items, except where otherwise stated at Note 1.19.

1.3 Significant Accounting Judgments and Estimates

In the process of applying the accounting policies listed in this note, the AIR has not made any judgments that have a significant impact on the amounts recorded in the financial statements.

The AIR has not made any accounting assumptions or estimates that have a significant risk or causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.




5Appendix

1.4 Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. The following new standards are applicable to the current reporting period:

Financial Instrument Disclosure

AASB 7 Financial Instruments: Disclosure is effective for reporting periods beginning on or after 1 January 2007 (the 2007–08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that previously required. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005–10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports.

The following standards, amendments to standards or interpretations for the current financial year have no material financial impact on the AIR.

AASB 1048: � Interpretation and Application of Standards (reissued September 2007)

AASB 2007–4: � Amendments to Australian Accounting Standards arising from ED 151 and other amendments

AASB 2007–5: � Amendments to Australian Accounting Standards—Inventories Held for Distribution by Not-for-Profit Entities [AASB 102]

AASB 2007–7: � Amendments to Australian Accounting Standards [AASB 1, 2, 4, 5, 107, 128]

AASB 2008–4: � Amendments to Australian Accounting Standards—Key Management Personnel Disclosures by Disclosing Entities [AASB 124]

AASB 2008–5 Amendments to Australian Accounting Standards arising from the Annual �Improvements Project [AASBs 5, 7, 101, 102, 107, 108, 110, 116, 118, 119, 120, 123, 127, 128, 129, 131, 132, 134, 136, 138, 139, 140, 141, 1023 & 1038]

AASB 2008–6 Further Amendments to the Australian Accounting Standards arising from the �Annual Improvements Project [AASB 1 & AASB 5]

AASB 2008–7 Amendments to Australian Accounting Standards—Cost of an Investment in a �Subsidary, Jointly Controlled Entity or Associate [AASB 1, AASB 118, AASB 121 & AASB 136]

AASB Interpretation 12 � Service Concession Arrangements and 2007–2 Amendments to Australian Accounting Standards arising from AASB Interpretation 12

AASB 8 � Operating Segments and 2007–3 Amendments to Australian Accounting Standards arising from AASB 8

AASB Interpretation 13 � Customer Loyalty Programmes

AASB Interpretation 14 AASB 119— � The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

ERR Erratum: � Proportionate Consolidation [AASB 101, AASB 107, AASB 121, AASB 127, Interpretation 113]



5Appendix

Interpretation 10: � Interim Financial Reporting and Impairment

Interpretation 11: � Group and Treasury Share Transactions

Interpretation 1003: � Australian Petroleum Resource Rent Tax

Future Australian Accounting Standards Requirements

The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods.

AASB 101: � Presentation of Financial Statements (issued September 2007)

AASB 123: � Borrowing Costs

AASB 1004: � Contributions

AASB 1049: � Whole of Government and General Government Sector Financial Reporting

AASB 1050: � Administered Items

AASB 1051: � Land Under Roads

AASB 1052: � Disaggregated Disclosures

AASB 2007–2: � Amendments to Australian Accounting Standards arising from AASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127, AASB 131 & AASB 139]

AASB 2007–3: � Amendments to Australian Accounting Standards arising from AASB 8



AASB 2007–9: � Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31 [AASB 3, AASB 5, AASB 8, AASB 101, AASB 114, AASB 116, AASB 127 & AASB 137]

AASB 2008–1: � Amendments to Australian Accounting Standard—Share-based Payments: Vesting Conditions and Cancellations [AASB 2]

AASB 2008–2: � Amendments to Australian Accounting Standard—Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2]

AASB 2008–3: � Amendments to Australian Accounting Standard arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107]

Interpretation 1: � Changes in Existing Decommissioning, Restoration and Similar Liabilities

Interpretation 4: � Determining Whether an Arrangement Contains a Lease

Interpretation 12: � Service Concession Arrangements

Interpretation 13: � Customer Loyalty Programmes




5Appendix

Interpretation 14: � AASB 119—The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

Interpretation 129: � Service Concession Arrangements Disclosures

Interpretation 1038: � Contributions by Owners Made To Wholly-Owned Public Sector Entities

Other

The following standards and interpretations have been issued but are not applicable to the operations of the AIR.

AASB 3: � Business Combinations

AASB 8: � Operating Segments

AASB 127: � Consolidated and Separate Financial Statements

Interpretation 13: � Customer Loyalty Programmes

AASB 1049 Whole Financial Reporting of General Government Sectors by Government

AASB 1049 specifies the reporting requirements for the General Government Sector. The FMOs does not apply to this reporting or the consolidated financial statements of the Australian Government.

1.5 Revenue

(a) Revenue from Government

Amounts appropriated for Departmental outputs appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when the agency gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

(b) Other Types of Revenue

The AIR receives rental income from the sub-leasing of space within the Melbourne, Sydney and Perth AIR offices. Revenue from rendering of services is recognised by reference to the stage of completion of contracts and transaction costs can be reliably measured, and when probable economic benefits with the transaction will flow to the AIR.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any allowance for impairments. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.



5Appendix

1.6 Gains

(a) Resources Received Free of Charge

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

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another Government Agency or Authority as a consequence of a restructuring of administrative arrangements (refer to Note 1.7).

Resources received free of charge are recorded as either revenue or gains depending on their nature.

(b) Sale of Assets

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

1.7 Transactions with the Government as Owner

(a) Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.

(b) Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Australian Government Agency or Authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

(c) Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. In 2007–08, by agreement with the Department of Finance and Deregulation, the AIR reduced its appropriation under subsection 9(1) of Appropriations Act (No. 1) 2007–08 by $185,000 due to the application of the one-off two percent efficiency dividend.

1.8 Employee Benefits

Employee Benefits includes benefits paid to Presidential Members, Commissioners and AIR staff.

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

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within 12 months of balance date are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.




5Appendix

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

(a) Leave

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

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

The liability for long service leave is based on the AIR’s estimated liability at balance date of the long service leave entitlements of its employees. Eligible employees (including Commissioners) accrue 3 months long service leave after 10 years service, and progressively thereafter on a proportional basis. The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2008. The liability for long service leave is measured at the present value of estimated future cash outflows using market yields as at the reporting date on ‘national government bonds’.

Presidential Members accrue 6 months long leave after 5 years of service as a presidential member. In recognition of the nature of Presidential Members’ tenure, a provision is accrued from the first year of service.

(b) Superannuation

Staff of the AIR and Commissioners of the AIRC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS Accumulation Plan (PSSap). The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. The liability is reported by the Department of Finance and Deregulation as an administered item.

The AIR makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the AIR’s employees. The AIR accounts for the contributions as if they were contributions to defined contribution plans.

From 1 July 2005, new employees are eligible to join the PSSap scheme.

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



5Appendix

(c) Judges’ Pensions

Presidential Members of the AIRC are members of the Judges’ Pension Scheme under the Judges’ Pensions Act 1968. The fund, as at 30 June 2008, was carrying liabilities for member’s benefits which exceeded the scheme’s assets. The liability and payments are recorded as part of the Attorney-General’s Department’s financial statements. The Attorney-General’s Department has given the AIR drawing rights for this financial year in relation to the special appropriation made under the Judges’ Pensions Act 1968. The AIR makes pension payments directly to former Presidential Members of the AIRC (refer to Note 16c).

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets.

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

1.10 Cash and Cash Equivalents

Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.11 Financial Assets and Financial Liabilities

The AIR classifies its financial assets in the following categories:

cash and cash equivalent; and �

trade and other receivables. �

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

Effective interest method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, when appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets ‘at fair value through profit or loss’.




5Appendix

Loan and Receivables

Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘trade and other receivables’. They are included in current assets. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of financial assets

Financial assets are assessed for impairment at each balance date.

Financial assets held at amortised cost � —If there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Income Statement.

1.12 Financial Liabilities

Financial liabilities are classified as suppliers and other payables. Financial liabilities are recognised and derecognised upon ‘trade date’.

Suppliers and Other Payables

Suppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.13 Contingent Liabilities and Contingent Assets

Contingent Liabilities and Contingent Assets are not recognised in the Balance Sheet, but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Contingent assets are reported when settlement is probable but not virtually certain, and contingent liabilities are recognised when settlement is greater than remote (refer to Note 15).

1.14 Acquisition of Assets

Assets are recorded at their cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

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



5Appendix

1.15 Buildings, Plant and Equipment

(a) Asset Recognition Threshold

Purchases of buildings, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than:

$10,000 for leasehold improvements; and $1,000 for all other classes.

which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make-good’ provisions in property leases taken up by the AIR where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AIR’s leasehold improvements with a corresponding provision for the ‘make-good’ recognised.

(b) Revaluations

Buildings, plant and equipment are carried at fair value, being revalued with sufficient frequency such that the carrying amount of each asset class is not materially different, at reporting date, from its fair value.

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

Asset Class Fair value measured at:

Buildings—leasehold improvements depreciated replacement cost

Plant & equipment depreciated replacement cost

Under ‘fair value’ assets which are surplus to requirements are measured at their net realisable value. At 30 June 2008, the AIR did not have any assets in this situation.

Following initial recognition at cost, buildings, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amount of assets do not differ materially from the assets’ fair values as at the reporting date. It is expected that the independent valuations will be undertaken once every three to five years. All valuations are conducted by an independent qualified valuer.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating results. Revaluation decrements for a class of assets are recognised directly through operating results except to the extent that they reverse a previous revaluation increment for that class.




5Appendix

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount of the asset.

(c) Depreciation

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

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

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

2008 2007

Buildings—leasehold improvements Lease term Lease term

Plant and equipment 3 to 10 years 3 to 10 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 4c.

Impairment

All non-financial assets were assessed for impairment at 30 June 2008. Where indicators of impairment exist, the assets recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AIR were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

No indicators of impairment were found for assets at fair value.

1.16 Intangibles

The AIR’s intangibles comprise internally developed and externally purchased computer software for internal use. These assets are carried at cost.



5Appendix

Software is amortised on a straight-line basis over its anticipated useful life. Useful lives are:

2008 2007

Intangibles—computer software 3 to 10 years 3 to 10 years

All software assets were assessed for indications of impairment as at 30 June 2008. None were found to be impaired.

1.17 Decommissioning, Restoration and Make-Good Provision

When assessing accommodation leases for the preparation of the opening balance sheet, lease obligations for make-good were identified for the Sydney and Darwin premises. Make-good provisions for premises are made in accordance with the terms of the relevant lease agreements, and are based on estimates of the square metres cost of make-good provided by independent consultants.

1.18 Taxation

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

Revenues, expenses and assets are recognised net of GST:

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

except for receivables and payables. �




5Appendix

1.19 Reporting of Administered Activities

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

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for Departmental items, including the application of Australian Accounting Standards.

The AIR has been granted authority and drawing rights by the Attorney-General’s Department to make payments to former Presidential Members of the AIRC under the Judges’ Pensions Act 1968 (Note 16c).

(a) Administered Cash Transfers to and from Official Public Account

Revenue collected by the AIR for use by the Government rather than the AIR is Administered Revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the Agency on behalf of the Government and reported as such in the Statement of Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 14. The Schedule of Administered Items largely reflects the Government’s transactions, through the AIR, with parties outside the Government.

(b) Revenue

All administered revenues are revenues relating to core operating activities performed by the AIR on behalf of the Australian Government. The AIR receives revenue from fees charged for lodgment of unlawful dismissals. Administered revenue is recognised when the lodgment is processed.



5Appendix

Note 2: Events Occurring after Reporting Date

There were no significant events that occurred after 30 June 2008, but prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of the AIR.

Note 3: Income

2008 2007

$’000 $‘000

Revenue

Note 3a Revenue from Government

Appropriations:

Departmental outputs 53,683 66,450

Total revenue from Government 53,683 66,450

Note 3b Rendering of services

Rendering of services—external parties 76 43

Total rendering of services 76 43

Note 3c Rental income

Operating lease:

Sub-lease of Property 685 -

Total rental income 685 -

Note 3d Other revenues

Other revenue 38 36

Total other revenue 38 36

Gains

Note 3e Sale of assets

Plant and equipment:

Proceeds from sale 3 34

Carry value of assets sold - (4)

Net gain from sale of assets 3 30

Note 3f Other gains

Resources received free of charge 24 23

Write-back of make-good provision - 100

Total rental income 24 123




5Appendix


Note 4: Expenses

2008 2007

$’000 $‘000

Note 4a Employee benefits

Wages and salaries 19,926 19,935

Superannuation

Defined benefit plan 1,933 2,398

Defined contribution plan 621 620

Leave and other entitlements 2,921 1,763

Separation and redundancies - 193

Other employee expenses 1,228 1,269

Total employee benefits 26,629 26,178

Note 4b Suppliers

Provision of goods—external parties 1,140 939

Rendering of services—related entities 229 1,163

Rendering of services—external parties 7,005 15,433

Operating lease rentals:

Minimum lease payments 9,945 11,253

Workers compensation premiums 108 81

Total supplier expenses 18,427 28,869

Note 4c Depreciation and amortisation

Depreciation

Leasehold improvements 388 347

Plant and equipment 273 286

Total depreciation 661 633

Amortisation

Intangibles:

Computer software 159 166

Total amortisation 159 166

Total depreciation and amortisation 820 799


5Appendix


2008 2007

$’000 $‘000

Note 4d Finance costs

Unwinding of discount 151 267

Total finance costs 151 267

Note 4e Write-down and impairment of assets

Asset write-downs from

Impairment of buildings, plant and equipment 13 77

Total write-down and impairment of assets 13 77

Note 4f Losses from assets sales

Plant and equipment

Proceeds from sale 5 -

Total losses from assets sales 5 -

Note 4g Liquidated damages

Liquidated damages - 1,853

Total finance costs - 1,853



5Appendix


Note 5: Financial Assets

2008 2007

$’000 $‘000

Note 5a Cash and cash equivalents

Cash at bank 236 430

Cash on hand or on deposit 6 6

Advance account 10 10

Total cash and cash equivalents 252 446

Note 5b Trade and other receivables

Goods and services 100 4

Appropriations receivable:

for existing outputs 42,120 34,235

Total appropriations receivable 42,220 34,239

GST receivable from the Australian Taxation Office 179 164

Other receivables (2) (1)

Total other receivables (2) (1)

Total trade and other receivables 42,397 34,402

Receivables are represented by:

Current 42,397 34,402

Non-current - -

Total trade and other receivables 42,397 34,402

Receivables are aged as follows:

Not overdue 42,394 34,402

Overdue by:

Less than 30 days - -

30 to 60 days - -

61 to 90 days - -

More than 90 days 3 -

Total receivables 42,397 34,402


5Appendix


Note 6: Non-financial Assets

2008 2007

$’000 $’000

Note 6a Buildings—leasehold improvements

Leasehold improvements

– fair value 12,905 17,549

– accumulated depreciation (9,649) (14,655)

Total buildings—leasehold improvements (non-current) 3,256 2,894

No leasehold improvements revaluations was undertaken during 2007–08.

No indicators of impairment were found for buildings.

Note 6b Plant and equipment

Plant and equipment:

– gross carrying value (at fair value) 1,755 2,654

– accumulated depreciation (728) (796)

Total plant and equipment (non-current) 1,027 1,858

All revaluations are conducted in accordance with the revaluation policy stated at Note 1. In 2007–08, an independent valuer, Rushton Valuers, conducted the revaluation on Artwork.

Revaluation decrement of $19,271 for plant and equipment was debited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet; no decrements were expensed.

No indicators of impairment were found for plant and equipment.

Note 6c Intangibles

Computer software at cost:

Internally developed—in use 1,185 1,797

Internally developed—in progress 542 134

Total computer software 2,357 1,931

Accumulated amortisation 1,361 1,202

Total intangibles (non-current) 996 729

No indicators of impairments were found for intangible assets.



5Appendix


2008 2007

$’000 $‘000

Note 6d Other non-financial assets

Prepayments 1,166 1,133

Lease incentive 70 -

Total other non-financial assets 1,236 1,133

All other non-financial assets are current assets.

No indicators of impairment were found for other non-financial assets.

Note 6e Analysis of property, plant and equipment

Table A—Reconciliation of the opening and closing balances of building, plant and equipment (2007–08)

ItemLeasehold

Improvements$’000

Plant and Equipment

$’000Total$’000

As at 1 July 2007

Gross book value 17,549 2,861 20,410

Accumulated depreciation and impairment (14,655) (1,003) (15,658)

Net book value 1 July 2007 2,894 1,858 4,752

Additions:

by purchase 129 99 228

Net revaluation (decrement) - (20) (20)

Depreciation expense (388) (273) (661)

Impairments recognised in opening balance - 30 30

Other movements:

– transfer between asset class 655 (655) -

– make-good (34) - (34)

Disposals - (12) (12)

Net book value 30 June 2008 3,256 1,027 4,283

Net book value as of 30 June 2008 as represented by:

Gross book value 12,905 1,755 14,660

Accumulated amortisation and impairment (9,649) (728) (10,377)

3,256 1,027 4,283


5Appendix


Table B—Reconciliation of the opening and closing balances of building, plant and equipment (2006–07)

ItemLeasehold

Improvements$’000

Plant and Equipment

$’000Total$’000

As at 1 July 2006

Gross book value 16,818 906 17,724

Accumulated depreciation and impairment (14,308) (717) (15,025)

Net book value 1 July 2006 2,510 189 2,699

Additions:

by purchase 807 1,959 2,766

Depreciation expense (347) (286) (633)

Other movements—make-good 488 - 488

Disposals (564) (4) (568)

Net book value 30 June 2007 2,894 1,858 4,752

Net book value as of 30 June 2007 as represented by:

Gross book value 17,549 2,861 20,410

Accumulated depreciation and impairment (14,655) (1,003) (15,658)

2,894 1,858 4,752

Note 6f Analysis of intangibles

Table C—Reconciliation of the opening and closing balances of intangibles (2007–08)

ItemIntangibles

$’000Total$’000

As at 1 July 2007

Gross book value 1,931 1,931

Accumulated amortisation and impairment (1,202) (1,202)

Net book value 1 July 2007 729 729

Additions:

by purchase or internally developed 426 426

Amortisation (159) (159)

Net book value 30 June 2008 996 996

Net book value as of 30 June 2008 represented by:






5Appendix


Table D—Reconciliation of the opening and closing balances of intangibles (2006–07)

ItemIntangibles

$’000Total$’000

As at 1 July 2006



Net book value 1 July 2006 673 673

Additions:

by purchase or internally developed 223 223

Amortisation (167) (167)


Net book value as of 30 June 2007 represented by:



729 729

Note 7: Payables

2008 2007

$’000 $‘000

Note 7a Suppliers

Trade creditors 668 1,306

Unearned revenue - 15

Total supplier payables 668 1,321

Supplier payables are represented by:

Current 668 1,321

Non-current - -

Total supplier payables 668 1,321


5Appendix


Note 8: Provisions

2008 2007

$’000 $‘000

Note 8a Employee provisions

Salaries and Wages 271 216

Leave 10,523 10,136

Superannuation 24 228

Total employee provisions 10,818 10,528

Employee provisions are represented by:

Current 10,167 9,129

Non-current 651 1,451

Total employee provisions 10,818 10,580

The classification of current includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification does not represent the amount expected to be settled within one year of reporting date. Employee provisions expected to be settled in twelve months from the reporting date are $2,692,498 (2007: $2,008,768), and in excess of one year $7,830,386 (2007: $8,126,958).

Note 8b Other provisions

Leasehold make-good 2,426 2,319

Lease incentives 3,113 3,558

Leasehold provisions 1,853 1,853

Total other provisions 7,402 7,730

Other provisions are represented by:

Current 889 1,875

Non-current 6,513 5,855

Total other provisions 7,402 7,730



5Appendix


Leasehold make-good

$’000

Lease incentives

$’000

Leasehold provisions

$’000Total $’000

Carrying amount 1 July 2007 2,319 3,558 1,853 7,730

Additional provisions made 1 - - 1

Amounts used (35) (445) - (480)

Finance cost 151 - - 151

Closing balance 2008 2,436 3,113 1,853 7,402

The AIR currently has two agreements for the leasing of premises which have provisions requiring the AIR to restore the premises to their original condition at the conclusion of the lease. The AIR has made a provision to reflect the present value of this obligation.

Note 9: Cash Flow Reconciliation

2008 2007

$’000 $‘000

Reconciliation of operating result to net cash from operating activities:

Operating result 8,464 8,639

Depreciation/amortisation 820 799

Net gain from write-back of make-good provision - (100)

Gain on disposal of assets (3) (30)

Loss on write-back of assets 18 77

(Increase)/decrease in net receivables (7,994) (5,576)

(Increase)/decrease in other non-financial assets (103) 1,414

Increase/(decrease) in employee provisions 238 51

Increase/(decrease) in supplier payables (639) 94

Increase/(decrease) in unearned income (15) 9

Increase/(decrease) in payable to the OPA - (3,180)

Increase/(decrease) in other provisions (329) 1,188

Net cash from (used by) operating activities 457 3,385


5Appendix


Note 10: Contingent Liabilities and Assets

Quantifiable Contingencies

There were no quantifiable contingent liabilities or assets requiring disclosure for 2007–08 or 2006–07.

Unquantifiable Contigencies

There were no unquantifiable contingent liabilities or assets requiring disclosure for 2007–08 or 2006–07.

Note 11: Senior Executive Remuneration

The number of executive officers who received or were due to receive total remuneration of $130,000 or more:

2008 2007

$145,000 to $159,999 - 1

$160,000 to $174,999 - -

$175,000 to $189,999 - -

$190,000 to $204,999 - 1

$205,000 to $219,999 1 -

$220,000 to $234,999 - -

$235,000 to $249,999 - -

$250,000 to $264,999 1 -

Total 2 2*

The aggregate amount of total remuneration of senior executives shown above. $468,629 $352,901*

* One executive in 2007 was only part of the year.

Note 12: Remuneration of Auditors

Financial statement audit services are provided free of charge to the AIR.

2008$’000

2007

$’000

The fair value of the services provided was: 24 23

24 23

No other services were provided by the Auditor-General.



5Appendix


Note 13: Financial Instruments

2008 2007

$’000 $‘000

Note 13a Categories of financial instruments

Financial Assets

Loans and receivables financial assets

Cash and cash equivalents 252 446

Trade receivables 98 4

350 450

Carrying amount of financial assets 350 450

Financial Liabilities

Other liabilities

Payables—suppliers 668 1,306

668 1,306

Carrying amount of financial assets 668 1,306

Note 13b Net income and expense from financial assets

There is no income or expense from financial assets—loans and receivables in the year ending 30 June 2008. (2007: nil)

Note 13c Net income and expense from financial liabilities

There is no income or expense from financial liabilities—payable in the year ending 30 June 2008. (2007: nil)

Note 13d Fair value of financial instruments

There are no financial instruments held at 30 June 2008 where the carrying amount is not a reasonable approximation of fair value. (2007: nil)

Note 13e Credit risk

The AIR is exposed to minimal credit risk as loans and receivables are cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This is equal to the total of trade receivables (2008: $94,000 and 2007: $3,000). The AIR’s debtors are generally limited to other Commonwealth Government agencies and AIR and AIRC employees. The AIR has policies and procedures that guide the recovery of employee debts.


5Appendix


The AIR has no significant exposure to any concentrations of credit risk.

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

Credit quality of financial instruments not past due or individually determined as impaired.

Not Past Due Nor Impaired

Not Past Due Nor Impaired

Past Due or Impaired

Past Due or Impaired

2008 2007 2008 2007

$’000 $’000 $’000 $’000

Loans and receivables

Trade receivables 98 3 2 1

Total 98 3 2 1

Ageing of financial assets that are past due but not impaired for 2008

0 to 30 days 31 to 60 days 61 to 90 days 90+ days Total

$’000 $’000 $’000 $’000 $’000


Trade receivables - - - 2 2

Total - - - 2 2

Ageing of financial assets that are past due but not impaired for 2007

0 to 30 days 31 to 60 days 61 to 90 days 90+ days Total

$’000 $’000 $’000 $’000 $’000


Trade receivables - - - 1 1

Total - - - 1 1



5Appendix


Note 13f Liquidity risk

The AIR’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the AIR will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the AIR (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The AIR is appropriated funding from the Australian Government. The AIR manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the AIR has policies in place to ensure timely payments are made when due and has no past experience of default.

All financial liabilities mature within one year (2007: one year).

The following tables illustrate the maturities for financial liabilities.

On demand 2008 $’000

within 1 year 2008 $’000

1 to 5 years 2008 $’000

>5 years 2008 $’000

Total 2008 $’000

Other liabilities

Trade creditors - 668 - - 668

Unearned revenue - - - - -

Total - 668 - - 668

On demand 2007 $’000

within 1 year 2007 $’000

1 to 5 years 2007 $’000

>5 years 2007 $’000

Total 2007 $’000

Other liabilities

Trade creditors - 1,306 - - 1,306

Unearned revenue - 15 - - 15

Total - 1,321 - - 1,321

Note 13g Market risk

The AIR holds basic financial instruments that do not expose the AIR to certain market risks.

The AIR is not exposed to currency risk, other price risk or interest rate risk.


5Appendix


Note 14: Administered Reconciliation Table

2008 2007

$’000 $‘000

Opening administered assets less administered liabilities

as at 1 July - 5,677

Plus: Administered income 272 197

Less:

Administered write-down of lease incentive - 6,493

Administered liability transferred to Departmental - 1,853

Administered GST liability transferred to Departmental - 1,000

Transfers to OPA (272) (15,220)

Closing administered assets less administered liabilities as at 30 June - -

Note 15: Administered Contingent Liabilities and Assets

As at 30 June 2008 there were no unrecognised or contingent liabilities or unrecognised or contingent assets requiring disclosure.



5Appendix


Note 16: Appropriations

Table A—Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

Departmental Outputs Total

Particulars2008$’000

2007

$’000

2008$’000

2007

$’000

Balance brought forward from previous period

26,043 17,027 26,043 17,027

Appropriation Act:

Appropriation Act (No. 1) 2007–08 53,868 58,067 53,868 58,067

Appropriation Act (No. 3) 2007–08 - 8,383 - 8,383

Reductions of appropriations (Appropriations Act s9)

(185) - - -

FMA Act:

Appropriations to take account of recoverable GST (FMA s30A)

1,793 3,685 1,793 3,685

Annotations to ‘net appropriations’ (FMA s31)

861 139 861 139

Total appropriations available for payments 82,380 87,301 82,380 87,301

Cash payments made during the year (GST inclusive)

(48,632) (61,258) (48,632) (61,258)

Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

33,748 26,043 33,748 26,043

Represented by

Cash at bank and on hand 252 446 252 446

Departmental appropriations receivable 33,317 25,433 33,317 25,433

Receivable—GST receivable 179 164 179 164

Total 33,748 26,043 33,748 26,043

Departmental and non-operating appropriations do not lapse at financial year end. However, the responsible Minister may decide that part of all of a departmental or non-operating appropriation is not required and request the Finance Minister to reduce that appropriation. In 2007–08, a determination was sought to reduce the AIR’s departmental appropriation from Appropriation Act (No. 1) 2007–08 by $185,000 after the application of the one-off two percent efficiency dividend.


5Appendix


Table B—Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for other than Ordinary Annual Services Appropriations

Departmental Outputs Total

Particulars2008$’000

2007

$’000

2008$’000

2007

$’000

Balance brought forward from previous period

8,802 2,125 8,802 2,125

Appropriation Act:

Appropriation Act (No. 2) 2007–08 - - - -

Appropriation Act (No. 4) 2007–08 - 6,677 - 6,677

Appropriation Act (No. 6) 2007–08 - - - -

FMA Act:

Appropriations to take account of recoverable GST (FMA s30A)

- - - -

Total appropriations available for payments 8,802 8,802 8,802 8,802

Cash payments made during the year (GST inclusive)

- - - -

Balance of Authority to Draw Cash from the Consolidated Revenue Fund for other than Ordinary Annual Services Appropriations

8,802 8,802 8,802 8,802

Represented by

Appropriation receivable 8,802 8,802 8,802 8,802

Total 8,802 8,802 8,802 8,802

Table C—Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund—Special Appropriations (Unlimited Amount)

During the year, the AIR was granted authority and drawing rights by the Attorney-General’s Department to make payments under the Judges’ Pensions Act 1968. The AIR makes pension payments directly to former Presidential Members of the AIRC.

Judges’ Pensions Act 1968 (Administered)

2008$’000

2007

$’000

Legal Authority: Judges’ Pensions Act 1968.

Purpose: To make payments to former Presidential Members of the Australian Industrial Relations Commission.

Total receipts 3,267 2,996

Total payments (3,267) (2,996)

Balance - -



5Appendix


Note 17: Special Accounts

Other Trust Money Account 2008$’000

2007

$’000

Legal Authority: Financial Management and Accountability Act 1997.

Purpose: For expenditure of monies temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

Balance carried from previous period - -

Other receipts 11 19

Total credits 11 19

Payments made 11 19

Total debits 11 19

Balance carried to the next period - -

Services for Other Government and Non-Agency Bodies Account

Legal Authority: Financial Management and Accountability Act 1997.

Purpose: For expenditure in connection with services performed on behalf of other Governments and bodies that are not Agencies under the FMA Act.

Balance carried from previous period - -

Other receipts - -

Total credits - -

Payments made - -

Total debits - -

Balance carried to the next period - -


5Appendix


Note 18: Compensation and Debt Relief

Administered 2008 $

2007 $

No ‘Act of Grace’ payments were made during the reporting period. (2007: No payments made)

- -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2007: No waivers)

- -

No ex-gratia payments were made during the reporting period. (2007: No payments made)

- -

No payments were made under the ‘Defective Administration Scheme’ during the reporting period. (2007: No payments made)

- -

No payments were made under s.73 of the Public Service Act 1999 during the reporting period. (2007: No payments made)

- -

Departmental 2008 $

2007 $

No ‘Act of Grace’ payments were made during the reporting period. (2007: No payments made)

- -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2007: No waivers)

- -

No ex-gratia payments were made during the reporting period. (2007: No payments made)

- -

No payments were made under the ‘Defective Administration Scheme’ during the reporting period. (2007: No payments made)

- -

No payments were made under s.73 of the Public Service Act 1999 during the reporting period. (2007: No payments made)

- -



5Appendix


Note 19: Reporting of Outcome

The AIR determines the attribution of its shared items based on a survey of employee time spent on each activity and the salary paid to these employees. The basis of attribution in the table is consistent with the basis used for the 2007–08 Budget.

Note 19a Net Cost of Outcome Delivery

2008 2007

$’000 $‘000

Expenses

Administered - -

Departmental 46,045 58,043

Total expenses 46,045 58,043

Costs recovered from provision of goods and services to the non-government sector

Administered - -

Departmental 76 43

Total costs recovered 76 43

Other external revenues

Administered

Other taxes, fees and fines 272 197

Interest on cash deposits - -

Total Administered 272 197

Departmental

Interest on cash deposits - -

Other 38 36

Total Departmental 38 36

Total other external revenues 310 233

Net cost/(contribution) of outcome 45,659 57,767

The Outcome is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.


5Appendix

Note 19b Major Classes of Departmental Revenues and Expenses by Output Groups

Outcome 1

Output Group 1.1

Output Group 1.2

Output Group 1.3

Total

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

2008 $’000

2007 $’000

Departmental expenses

Employees 24,129 23,777 2,143 2,017 357 384 26,629 26,178

Suppliers 16,697 28,147 1,483 2,388 247 454 18,427 30,989

Depreciation and amortisation 743 725 66 62 11 12 820 799

Other expenses 153 70 14 6 2 1 169 77

Total departmental expenses 41,722 52,719 3,706 4,473 617 851 46,045 58,043

Funded by:

Revenues from Government 48,644 61,141 4,320 4,910 719 399 53,683 66,450

Sale of goods and services 69 40 6 3 1 - 76 43

Other non-taxation revenues 655 54 58 5 10 - 723 59

Gains 25 120 2 10 - - 27 130

Total departmental revenues 49,393 61,355 4,386 4,928 730 399 54,509 66,682

The Outcome is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget Outcome.

Note 19c Major Classes of Administered Revenues and Expenses by Outcome

Actual

2008 $’000

2007 $’000

Administered Revenues

Other non-taxation revenues 272 197

Interest on deposits - -

Liabilities transferred to Departmental - 2,853

Write-down of liability - 6,493

Total administered revenues 272 9,543

The Outcome is described in Note 1.1.


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