2014-15 financial statements - apsc.gov.au web viewnotes to the financial statements. ... involve...

Statement by the Australian Public Service Commissioner and Chief Financial Officer

In our opinion, the attached financial statements for the year ended 30 June 2015 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Public Service Commission will be able to pay its debts as and when they fall due.

John Lloyd PSM Kelvin Zhu CPAAustralian Public Service Commissioner Chief Financial Officer

September 2015 September 2015

Australian Public Service CommissionStatement of Comprehensive Incomefor the period ended 30 June 2015

Notes 2015$’000

2014$’000

NET COST OF SERVICESExpensesEmployee benefits 4a 26,270 29,135Suppliers 4b 16,978 18,219Depreciation and amortisation 4c 1,088 1,083Finance costs 11 19Write-down and impairment of assets 5 -Losses from asset sales 17 24Total expenses 44,369 48,480

Own-Source IncomeOwn-source revenueSale of goods and rendering of services 5a 22,740 25,985Resources received free of charge 5b 42 42Total own-source revenue 22,782 26,027

GainsReversals of previous asset write-downs and

impairments - 1Total gains - 1Total own-source income 22,782 26,028

Net cost of services (21,587) (22,452)

Revenue from Government 5c 21,637 22,006

Surplus/(Deficit) 50 (446)

OTHER COMPREHENSIVE INCOMEItems not subject to subsequent reclassification to

net cost of servicesChanges in asset revaluation surplus - (119)Total other comprehensive income - (119)

Total comprehensive income/(loss) 50 (565)

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

Australian Public Service CommissionStatement of Financial Positionas at 30 June 2015

Notes 2015$’000

2014$’000

ASSETSFinancial assetsCash and cash equivalents 1,382 490Trade and other receivables 7a 27,409 24,561Total financial assets 28,791 25,051

Non-financial assetsLand and buildings 8a, c 1,764 2,056Property, plant and equipment 8b, c 1,039 1,279Intangibles 8d, e 976 1,039Inventories 39 42Prepayments paid 8f 463 522Total non-financial assets 4,281 4,938Total assets 33,072 29,989

LIABILITIESPayablesSuppliers 9a 5,947 4,540Prepayments received 9b 7,377 5,980Lease incentives 9c 763 934Other payables 9d 926 847Total payables 15,013 12,301

ProvisionsEmployee provisions 10a 6,876 6,987Provision for restoration obligations 10b 401 391Total provisions 7,277 7,378Total liabilities 22,290 19,679Net assets 10,782 10,310

EQUITYContributed equity 791 369Asset revaluation surplus 1,204 1,204Retained surplus 8,787 8,737Total equity 10,782 10,310


Australian Public Service CommissionStatement of Changes in Equityfor the period ended 30 June 2015

Retained earnings

Asset revaluation

surplus

Contributed equity/capital

Total equity

2015$’000

2014$’000

2015$’000

2014$’000

2015$’000

2014$’000

2015$’000

2014$’000

Opening balance 8,737 9,183 1,204 1,323 369 (300) 10,310 10,206

Comprehensive incomeSurplus/(Deficit) for the

period 50 (446) - - - - 50 (446)Other comprehensive

income - - - (119) - - - (119)Total comprehensive income 50 (446) - (119) - - 50 (565)

Transactions with owners

Contributions by ownersDepartmental capital

budget - - - - 422 669 422 669Total transactions with owners - - - - 422 669 422 669Closing balance as at 30 June 8,787 8,737 1,204 1,204 791 369 10,782 10,310


Australian Public Service CommissionCash Flow Statementfor the period ended 30 June 2015

Notes 2015$’000

2014$’000

OPERATING ACTIVITIESCash receivedAppropriations 21,324 21,968Receipts from Government - 6,000Sale of goods and rendering of services 25,378 27,401Net GST received 1,297 1,443Other cash received 512 427Total cash received 48,511 57,239

Cash usedEmployees 27,327 30,544Suppliers 16,290 20,317Section 74 receipts transferred to OPA 3,350 6,000Other cash used 650 352Total cash used 47,617 57,213Net cash from operating activities 11 894 26

INVESTING ACTIVITIESCash usedPurchase of property, plant and equipment 187 254Purchase of intangibles 237 526Total cash used 424 780Net cash used by investing activities (424) (780)

FINANCING ACTIVITIESCash receivedContributed equity 422 669Total cash received 422 669Net cash from financing activities 422 669

Net increase/(decrease) in cash held 892 (85)Cash and cash equivalents at the beginning of the reporting period 490 575Cash and cash equivalents at the end of the reporting period 1,382 490


Australian Public Service CommissionSchedule of Commitmentsas at 30 June 2015

2015

Within 1 year$’000

Between 1 to 5 years

$’000

More than 5 years

$’000Total$’000

Commitments receivableSublease rental income - - - -Net GST recoverable 1 (762) (935) (379) (2,076)Total commitments receivable (762) (935) (379) (2,076)

Commitments payableIntangibles 2 101 - - 101Total capital commitments 101 - - 101

Other commitmentsOperating leases 3 2,789 9,603 4,108 16,500Suppliers 4 5,490 679 63 6,232Total other commitments 8,279 10,282 4,171 22,732Total commitments payable 8,380 10,282 4,171 22,833Net commitments 7,618 9,347 3,792 20,757

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

2014

Within 1 year$’000

Between 1 to 5 years

$’000

More than 5 years

$’000Total$’000

Commitments receivableSublease rental income (25) - - (25)Net GST recoverable 1 (742) (956) (598) (2,296)Total commitments receivable (767) (956) (598) (2,321)

Commitments payableIntangibles 2 100 - - 100Total capital commitments 100 - - 100

Other commitmentsOperating leases 3 2,745 10,003 6,475 19,223Suppliers 4 5,345 507 99 5,951Total other commitments 8,090 10,510 6,574 25,174Total commitments payable 8,190 10,510 6,574 25,274Net commitments 7,423 9,554 5,976 22,953

Note:1. Commitments are GST inclusive where relevant.2. Contractual commitments for the development of software.3. Operating leases are effectively non-cancellable. The APSC has leases for office accommodation. Lease payments are subject to rent reviews in accordance with the lease agreements. The initial periods of office accommodation leases are still current.4. Suppliers commitments comprise amounts for fee for service, policy and administrative activities.

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

Australian Public Service CommissionAdministered Schedule of Comprehensive Incomefor the period ended 30 June 2015

Notes 2015$’000

2014$’000

NET COST OF SERVICESExpensesEmployee benefits 15a 61,338 60,655Total expenses 61,338 60,655

IncomeGainsOther gains 2 -Total gains 2 -Total income 2 -

Net cost of services (61,336) (60,655)

Total comprehensive loss (61,336) (60,655)

Administered Reconciliation ScheduleNotes 2015

$’0002014$’000

Opening assets less liabilities as at 1 July - -

Net cost of servicesIncome 2 -Expenses

Payments to entities other than corporate Commonwealth entities (61,338) (60,655)

Transfers (to)/from the Australian GovernmentAppropriation transfers from Official Public Account

Special appropriations (unlimited)Payments to entities other than corporate Commonwealth entities 16d 61,338 60,655

Appropriation transfers to Official Public AccountTransfers to Official Public Account (2) -

Closing assets less liabilities as at 30 June - -

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

Australian Public Service CommissionAdministered Cash Flow Statementfor the period ended 30 June 2015

2015$’000

2014$’000

OPERATING ACTIVITIESCash receivedOther cash received 2 -Total cash received 2 -

Cash usedEmployees 61,338 60,655Total cash used 61,338 60,655Net cash used by operating activities (61,336) (60,655)

Net decrease in cash held (61,336) (60,655)

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

Cash from Official Public AccountAppropriations 61,338 60,655

Total cash from Official Public Account 61,338 60,655

Cash to Official Public AccountAppropriations 2 -

Total cash to Official Public Account (2) -

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


Australian Public Service Commission

Table of Contents - Notes

Note Description1 Summary of significant accounting policies2 Events after the reporting period3 Net cash appropriation arrangements4 Expenses5 Own-source income6 Fair value measurement7 Financial assets8 Non-financial assets9 Payables

10 Provisions11 Cash flow reconciliation12 Senior management personnel remuneration13 Financial instruments14 Financial assets reconciliation15 Administered - expenses16 Appropriations17 Reporting of outcomes18 Budgetary reports and explanations of major variances

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Australian Public Service CommissionNotes to the financial statements

Note 1: Summary of Significant Accounting Policies

1.1 Objective of the APSC

The Australian Public Service Commission (APSC) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the APSC is to lead and shape a unified, high-performing Australian Public Service.

The APSC is structured to meet one outcome, increased awareness and adoption of best practice public administration by the public service through leadership, promotion, advice and professional development, drawing on research and evaluation.

The continued existence of the APSC in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for the APSC’s administration and programmes.

APSC activities contributing towards this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the APSC in its own right. Administered activities involve the management or oversight by the APSC, on behalf of the Government, of items controlled or incurred by the Government.

The APSC conducts the administered activity “Parliamentarians' and Judicial Office Holders' remuneration and entitlements” on behalf of Government.

1.2 Basis of preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The Financial Statements have been prepared in accordance with:

Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; and Australian Accounting Standards and Interpretations issued by the Australian Accounting

Standards Board (AASB) that apply for the reporting period.

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

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

1.3 Significant Accounting Judgements and Estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 New Australian accounting standards

Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.

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New and revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material financial impact, and are not expected to have a material future financial impact on the APSC.

Future Australian Accounting Standard requirements

No new or revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting period are expected to have a material future financial impact on the APSC.

AASB 15 Revenue from Contracts with Customers is effective for annual reporting periods beginning on or after 1 January 2017. This will require the APSC to recognise revenue when the APSC satisfies performance obligations with its customers. This will defer the timing of the recognition of revenue for some services that the Commission provides. Potentially expenses could be incurred in a different financial year to when revenue is recognised. However this is not expected to have a material financial impact.

1.5 Revenue

Revenue from the sale of goods is recognised when:

the risks and rewards of ownership have been transferred to the buyer the APSC retains no managerial involvement nor effective control over the goods the revenue and transaction costs incurred can be reliably measured; and it is probable that the economic benefits associated with the transaction will flow to the

APSC.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

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

the probable economic benefits associated with the transaction will flow to the APSC.

The stage of completion of contracts at the reporting date is determined by reference to services performed to date as a percentage of total services to be performed.

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

Resources received free of charge

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

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the APSC 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.

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1.6 Transactions with the Government as owner

Equity injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

1.7 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.

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 APSC is estimated to be less than the annual entitlement for sick leave.

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

The liability for long service leave has been determined by using the Australian Government shorthand method for all employees as at 30 June 2015. The estimate of the present value of the liability takes into account attrition rates and pay rises through promotion and inflation.

Superannuation

APSC employees 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. This liability is reported in the Department of Finance’s administered schedules and notes.

The APSC makes employer contributions to employees’ superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The APSC accounts for the contributions as if they were contributions to defined contribution plans.

The superannuation payable (note 9d) represents outstanding contributions for the final fortnight of the financial year.

1.8 Leases

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

Operating lease incentives taking the form of “free” leasehold improvements, lessor contributions and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.

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1.9 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

cash on hand and cash held by outsiders

1.10 Financial assets

Trade receivables are classified as ‘loans and receivables’. Loans and receivables are measured at face value less impairment. Trade receivables are recognised and derecognised upon trade date. Trade receivables are assessed for impairment at the end of each reporting period.

1.11 Financial liabilities

Supplier 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). Supplier and other payables are recognised and derecognised upon trade date.

1.12 Contingent liabilities and contingent assets

The APSC had no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2015 (2014: nil).

1.13 Acquisition of assets

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

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements.

1.14 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases of property plant and equipment costing less than $2,000, or leasehold improvements costing less than $60,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

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 the provision for restoration obligations in property leases taken up by the APSC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the APSC’s leasehold improvements with a corresponding provision for restoration obligations recognised.

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Revaluations

Following initial recognition at cost, property plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

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

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

Depreciation

Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the APSC using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date.

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

Asset class 2015 2014Leasehold improvements Lease term Lease termProperty, plant and equipment 1 to 13 years 1 to 13 years

Impairment

All assets were assessed for impairment at 30 June 2015. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.15 Intangibles

The APSC’s intangibles comprise intellectual property, purchased software and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses where the value of the asset exceeds $2,000 for purchased software and $60,000 for internally developed software and intellectual property.

Intangibles are amortised on a straight-line basis over their anticipated useful life. The useful lives of the APSC’s intangibles are between 2 to 10 years (2014: 2 to 10 years).

All intangible assets were assessed for impairment as at 30 June 2015.

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1.16 Inventories

Inventories held for distribution are valued at cost, adjusted for any loss in service potential.

1.17 Taxation

The APSC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses, assets and liabilities are recognised net of GST except:

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

for receivables and payables.

The APSC is not subject to competitive neutrality arrangements.

1.18 Compliance with statutory conditions for payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programmes. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

1.19 Related parties

The term 'related parties' means entities which form part of the Australian Government or which the Australian Government controls. A list of these entities is contained in the Australian Government Consolidated Financial Statements (CFS) and is current at the date of preparation of the CFS.

1.20 Reporting of administered activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules 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.

Administered cash transfers to and from the Official Public Account

Revenue collected by the APSC for use by the Government rather than the APSC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the APSC on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Commitments

The APSC had no administered commitments as at 30 June 2015 (2014: nil).

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Contingent liabilities and contingent assets

The APSC had no quantifiable or unquantifiable administered contingent assets or liabilities as at 30 June 2015 (2014: nil).

Compliance with statutory conditions for payments from the Consolidated Revenue Fund

The possibility of breaches of section 83 of the Constitution for the APSC’s administered payments was investigated and confirmed in prior years. In order to reduce the risks of non-compliance to an acceptably low level, changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.

Reviews conducted by drawing entities identified that no payments (2014: No payments) were made without legal authority in contravention of section 83 of the Constitution for payments reported under the Remuneration Tribunal Act 1973.

Note 2: Events After the Reporting PeriodThere was no subsequent event that had the potential to affect the ongoing structure and financial activities of the APSC.

Note 3: Net Cash Appropriation Arrangements

2015$’000

2014$’000

Total comprehensive income less depreciation/amortisation expenses previously funded through revenue appropriations 1 1,138 169Plus: depreciation/amortisation expenses previously funded through revenue appropriation (1,088) (734)Total comprehensive income/(loss) - as per the Statement of Comprehensive Income 50 (565)

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

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Note 4: Expenses2015

$’0002014$’000

Note 4a: Employee benefitsWages and salaries 20,189 21,999Superannuation Defined contribution plans 1,503 1,808 Defined benefit plans 2,276 2,396Leave and other entitlements 2,302 2,861Separation and redundancies - 71Total employee benefits 26,270 29,135

Note 4b: SuppliersGoods and services supplied or renderedConsultants 1,375 1,075Contractors 7,112 7,805Travel 1,003 1,316Venue hire and catering 779 925Publications and printing 184 217Training 320 400Information and communications technology 2,355 2,545Facilities expense 121 114Other goods and services 687 922Total goods and services supplied or rendered 13,936 15,319

Goods supplied in connection with Related parties 4 3 External parties 260 359Total goods supplied 264 362

Services rendered in connection with Related parties 1 2,544 2,424 External parties 11,128 12,533Total services rendered 13,672 14,957Total goods and services supplied or rendered 13,936 15,319

Other suppliersOperating lease rentals in connection with Related parties Sublease 226 189 External parties Minimum lease payments 2,312 2,323 Contingent rentals 71 68

Worker compensation expenses 433 320Total other suppliers 3,042 2,900

Total suppliers 16,978 18,219

1. Related parties are defined in note 1.19.

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2015$’000

2014$’000

Note 4c: Depreciation and amortisationDepreciation

Property, plant and equipment 396 380Buildings 381 402

Total depreciation 777 782

AmortisationIntangibles 311 301

Total amortisation 311 301Total depreciation and amortisation 1,088 1,083

Note 5: Own-source income2015

$’0002014$’000

Own-source revenue

Note 5a: Sale of goods and rendering of servicesSale of goods in connection with Related parties 5 11 External parties 1 1Total sale of goods 6 12

Rendering of services in connection with Related parties 22,213 25,134 External parties 521 839Total rendering of services 22,734 25,973Total sale of goods and rendering of services 22,740 25,985

Note 5b: Resources received free of chargeRemuneration of auditors 42 42

Revenue from Government

Note 5c: Revenue from GovernmentAppropriations

Departmental appropriations 21,637 22,006Total revenue from Government 21,637 22,006

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Note 6: Fair Value MeasurementThe following table provides an analysis of assets and liabilities that are measured at fair value. The different levels of fair value hierarchy are defined below.

Level 1: Quoted process (unadjusted) in active markets for identical assets or liabilities that the APSC can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The APSC determines fair value for non-financial assets using level 3 inputs in the fair value hierarchy. The following table discloses the fair value at 30 June and the valuation techniques used to derive fair value.

Note 6a Fair value measurements - valuation technique and the inputs used for assets in 2015

Fair 2015$'000

value2014$'000

Category level

Valuation technique(s)1

Inputs used

Range (weighted average)2

Non-financial assetsLeasehold improvements

1,764 2,056 Level 3 Depreciated replacement

cost

See footnote 1

Replacement cost of $750

to $1,762 per square metre

Other property, plant and equipment

1,039 1,279 Level 3 Depreciated replacement

cost

See footnote 2

N/A

1. The major input relevant to leasehold improvements is an estimate of replacement cost based upon the specifics of each particular leasehold improvement including construction type, use, services, specialist components and the like. The fair value is then assessed by having regard to that portion of the likely length of the lease term that has expired, the remaining lease term and remaining useful life. Assets in this class are considered on an individual basis, not on any average or weighted average basis, as each needs to be considered specifically to represent its characteristics.

2. The primary input for other property, plant and equipment is the replacement cost of the asset as at the date of valuation. The fair value is assessed by reference to the asset’s physical and functional characteristics, the APSC’s internal policy for each class, the adopted useful life and the expended and remaining useful life of each asset. Assets are considered on an individual basis, rather than from any predetermined averaging or weighted averages, however where there are numerous alike assets, for example, computers which are all identical and purchased on the same date, the assessment of one asset is then utilised for those alike assets.

The highest and best use of all non-financial assets are the same as their current use. No change in valuation technique occurred during the period.

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Note 7: Financial Assets2015

$’0002014$’000

Note 7a: Trade and other receivablesGoods and services in connection with

Related parties 1,743 2,442External parties 108 168

Total goods and services receivables 1,851 2,610

Appropriation receivablesExisting programmes 25,025 21,362

Total appropriation receivables 25,025 21,362

Other receivablesGST receivable from the Australian Taxation Office 539 565Incentive receivable - 25

Total other receivables 539 590

Total trade and other receivables (gross) 27,415 24,562

Less impairment allowanceGoods and services (6) (1)

Total impairment allowance (6) (1)Total trade and other receivables (net) 27,409 24,561

Trade and other receivables (net) expected to be recovered

No more than 12 months 27,409 24,536More than 12 months - 25

Total trade and other receivables (net) 27,409 24,561

Trade and other receivables (gross) aged as followsNot overdue 26,986 24,308Overdue by

0 to 30 days 92 14731 to 60 days 93 4961 to 90 days 120 45More than 90 days 1 124 13

Total trade and other receivables (gross) 27,415 24,562

1. The increase in overdue receivables is predominantly due to a pricing review for APSJobs, which resulted in invoices being issued to customers later in the financial year and also required additional time to communicate the new pricing structure to customers. At the time of preparing the 2014-15 financial statements, the majority of these receivables had been paid by customers.

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Note 7a: Trade and other receivables (continued)

Impairment allowance aged as followsOverdue by

more than 90 days (6) (1)Total impairment allowance (6) (1)

These items are assessed as impaired as it will be uneconomic to pursue them.

Reconciliation of impairment allowanceOpening balance (1) (2)

Amounts written-off - -Amounts recovered and reversed - 2(Increase)/decrease recognised in net cost of services (5) (1)

Closing balance (6) (1)

Credit terms for goods and services are within 30 days (2014: 30 days).

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Note 8: Non-Financial Assets2015

$’0002014$’000

Note 8a: Land and buildingsLeasehold improvements

Fair value 2,145 2,056Accumulated depreciation (381) -

Total leasehold improvements 1,764 2,056Total land and buildings 1,764 2,056

Leasehold improvements were assessed for impairment as at 30 June 2015, no impairment loss was identified (2014: nil).

No leasehold improvements (2014: nil) are expected to be disposed of within the next 12 months.

Note 8b: Property, plant and equipmentOther property, plant and equipment

Fair value 1,411 1,279Accumulated depreciation (372) -

Total other property, plant and equipment 1,039 1,279Total property, plant and equipment 1,039 1,279

No indicators of impairment were found for property, plant and equipment (2014: nil).

No material items of property, plant or equipment (2014: nil) are expected to be sold or disposed of within the next 12 months.

Revaluation of non-financial assetsNo revaluation was performed during the 2014-15 financial year. In the 2013-14 financial year Preston Rowe Paterson conducted a revaluation of leasehold improvements and other property, plant and equipment. The revaluation was conducted in accordance with the revaluation policy stated at Note 6.

Revaluation decrement for leasehold improvements was nil (2014: $198,000).

Revaluation increment for property, plant and equipment was nil (2014: $78,000).

All increments and decrements were transferred to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. No decrements were expensed (2014: nil).

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Note 8c: Reconciliation of the opening and closing balances of property, plant and equipment

Buildings leasehold

improvements

Other property,

plant & equipment

Total

2015 $’000 $’000 $’000As at 1 July 2014Gross book value 2,056 1,279 3,335Accumulated depreciation and impairment - - -Total as at 1 July 2014 2,056 1,279 3,335Additions – by purchase 89 173 262Depreciation (381) (396) (777)Disposals - (17) (17)Total as at 30 June 2015 1,764 1,039 2,803

Total as at 30 June 2015 represented byGross book value 2,145 1,411 3,556Accumulated depreciation and impairment (381) (372) (753)Total as at 30 June 2015 1,764 1,039 2,803

Buildings leasehold

improvements

Other property, plant

& equipment

Total

2014 $’000 $’000 $’000As at 1 July 2013Gross book value 3,404 2,896 6,300Accumulated depreciation and impairment (748) (1,545) (2,293)Total as at 1 July 2013 2,656 1,351 4,007Additions – by purchase - 254 254Revaluations and impairments recognised

in other comprehensive income (198) 78 (120)Depreciation (402) (380) (782)Disposals - (24) (24)Total as at 30 June 2014 2,056 1,279 3,335

Total as at 30 June 2014 represented byGross book value 2,056 1,279 3,335Accumulated depreciation and impairment - - -Total as at 30 June 2014 2,056 1,279 3,335

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2015$’000

2014$’000

Note 8d: IntangiblesComputer software

Internally developed - in use 1,941 1,887Purchased 1,043 866Accumulated amortisation (2,012) (1,729)

Total computer software 972 1,024

Intellectual propertyInternally developed - in use 814 814Accumulated amortisation (810) (799)

Total intellectual property 4 15

Total intangibles 976 1,039

No indicators of impairment were found for intangible assets.

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 8e: Reconciliation of the opening and closing balances of intangibles

Computer software

purchased

Computer software

internally developed

Intellectual property

Total

2015 $’000 $’000 $’000 $’000As at 1 July 2014Gross book value 866 1,887 814 3,567Accumulated depreciation and impairment (373) (1,356) (799) (2,528)Total as at 1 July 2014 493 531 15 1,039Additions - by purchase or internally

developed 194 54 - 248Amortisation (168) (132) (11) (311)Total as at 30 June 2015 519 453 4 976

Total as at 30 June 2015 represented byGross book value 1,043 1,941 814 3,798Accumulated depreciation and impairment (524) (1,488) (810) (2,822)Total as at 30 June 2015 519 453 4 976

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Note 8e: Reconciliation of the opening and closing balances of intangibles (continued)

Computer software

purchased

Computer software internally

developed

Intellectual property

Total intangibles

2014 $’000 $’000 $’000 $’000As at 1 July 2013Gross book value 367 1,944 814 3,125Accumulated depreciation and impairment (215) (1,226) (786) (2,227)Total as at 1 July 2013 152 718 28 898Additions - by purchase or internally

developed499 (57) - 442

Amortisation (158) (130) (13) (301)Total as at 30 June 2014 493 531 15 1,039

Total as at 30 June 2014 represented byGross book value 866 1,887 814 3,567Accumulated depreciation and impairment (373) (1,356) (799) (2,528)Total as at 30 June 2014 493 531 15 1,039

Note 8f: Prepayments paid2015 2014

Prepayments paid expected to be recoveredNo more than 12 months 454 508More than 12 months 9 14

Total prepayments paid 463 522

No indicators of impairment were found for prepayments paid.

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Note 9: Payables2015

$’0002014$’000

Note 9a: SuppliersTrade creditors and accruals 4,166 2,706Operating lease rentals 1,781 1,834Total suppliers 5,947 4,540

Suppliers expected to be settledNo more than 12 months 4,299 2,759More than 12 months 1,648 1,781


Suppliers in connection withRelated parties 1,360 826External parties 4,587 3,714


Note 9b: Prepayments receivedPrepayments received expected to be settled

No more than 12 months 7,312 5,922More than 12 months 65 58

Total prepayments received 7,377 5,980

Note 9c: Lease incentivesLease incentives expected to be settled

No more than 12 months 163 166More than 12 months 600 768

Total lease incentives 763 934

Note 9d: Other payablesWages and salaries 737 701Superannuation 130 115Other 59 31Total other payables 926 847

All other payables are expected to be settled in no more than 12 months.

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Note 10: Provisions2015

$’0002014$’000

Note 10a: Employee provisionsLeave 6,876 6,987Total employee provisions 6,876 6,987

Employee provisions expected to be settledNo more than 12 months 2,985 3,219More than 12 months 3,891 3,768

Total employee provisions 6,876 6,987

Note 10b: Provision for restoration obligationsAs at 1 July 391 372

Additional provisions made - 1Amounts reversed - (1)Unwinding of discount or change in discount rate 10 19

Total as at 30 June 401 391

Provision for restoration obligations expected to be settledNo more than 12 months 189 -More than 12 months 212 391

Total provision for restoration obligations 401 391

The APSC currently has two (2014: two) leasing agreements which have provisions requiring the APSC to restore the premises to their original condition at the conclusion of the lease. The APSC has made provisions to reflect the present value of these obligations.

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Note 11: Cash Flow Reconciliation2015

$’0002014$’000

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

Net cost of services (21,587) (22,452)Revenue from Government 21,637 22,006

Adjustments for non-cash itemsDepreciation and amortisation 1,088 1,083Loss on sale of assets 17 24

Changes in assets/liabilitiesAssets(Increase)/decrease in net receivables (2,848) 2,624(Increase)/decrease in inventories 3 13(Increase)/decrease in prepayments paid 59 470

LiabilitiesIncrease/(decrease) in supplier payables 1,321 (1,429)Increase/(decrease) in prepayments received 1,397 (1,456)Increase/(decrease) in lease incentives (171) (166)Increase/(decrease) in other payables 79 (566)Increase/(decrease) in employee provisions (111) (144) Increase/(decrease) in provision for restoration obligations 10 19

Net cash from operating activities 894 26

Note 12: Senior Management Personnel Remuneration2015 2014

$ $Short-term employee benefits

Salary 2,536,090 2,573,652Motor vehicle and other allowances 279,786 296,141

Total short-term employee benefits 2,815,876 2,869,793

Post-employment benefitsSuperannuation 430,870 444,673

Total post-employment benefits 430,870 444,673

Other long-term benefitsAnnual leave accrued 247,233 263,099Long-service leave 77,797 126,194

Total other long-term benefits 325,030 389,293

Total senior executive remuneration expenses 3,571,776 3,703,759

The total number of senior management personnel that are included in the above table are 13 (2014: 13).

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Note 13: Financial InstrumentsNotes 2015

$’0002014$’000

Note 13a: Categories of financial instrumentsFinancial AssetsLoans and receivablesCash and cash equivalents 1,382 490Goods and services receivables 7a 1,845 2,609Incentive receivable 7a - 25Total loans and receivables: 3,227 3,124

Total financial assets 3,227 3,124

Financial LiabilitiesFinancial liabilities measured at amortised costTrade creditors and accruals 9a 4,166 2,706Other payables 9d 59 31Total financial liabilities measured at amortised cost 4,225 2,737

Carrying amount of financial liabilities 4,225 2,737

The carrying amount of all financial assets and liabilities is a reasonable approximation of their fair value.

Note 13b: Credit riskThe APSC was exposed to minimal credit risk as loans and receivables were goods and services receivables. The maximum exposure to credit risk was the risk that arises from the potential default of a debtor. This amount was equal to the total amount of goods and services receivables (see note 13a). The APSC has assessed the risk of the default on payment and has allocated an allowance for impairment on goods and services receivables (see note 7a). The ageing of goods and services receivables and a reconciliation of the impairment allowance are disclosed in note 7a.

The APSC’s goods and services receivables are principally recoverable from other Australian Government entities. In addition, the APSC had policies and procedures that guide the debt recovery processes.

The APSC holds no collateral to mitigate against credit risk.

Note 13c: Liquidity riskThe APSC is exposed to minimal liquidity risk as it has sufficient appropriation funding from the Australian Government to ensure it meets payment obligations as they fall due. In addition, the APSC has policies in place to ensure timely payments are made when due and has no past experience of default.

The APSC had no derivative financial instruments in 2015 (2014: nil).

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Note 13d: Market riskThe APSC holds basic financial instruments that do not expose the APSC to certain market risks such as ‘Currency risk’ and ‘Other price risk’.

There are no interest-bearing items on the statement of financial position.

Note 14: Financial Assets ReconciliationNotes 2015

$’0002014$’000

Total financial assets as per statement of financial position 28,791 25,051

Less: non-financial instrument componentsAppropriations receivables 7a 25,025 21,362Other receivables 7a 539 565

Total non-financial instrument components 25,564 21,927Total financial assets as per financial instruments

note 3,227 3,124

Note 15: Administered - Expenses

Note 15a: Employee Benefits2015

$’0002014$’000

Employee benefitsWages and salaries 61,338 60,655Total employee benefits 61,338 60,655

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Note 16: Appropriations

Note 16a: Annual Appropriations ('Recoverable GST exclusive')

Departmental Ordinary Annual Services2015$'000

2014$'000

Appropriation ActAnnual Appropriation 1 22,072 22,675Total Appropriation Act 22,072 22,675PGPA ActSection 74 2 25,860 27,757Total PGPA Act 25,860 27,757Total Appropriation 47,932 50,432Appropriation applied (current and prior years) (43,407) (50,536)Variance 3 4,525 (104)Section 51 determinations 4 (13) (112)

1. In 2014, as announced in the 2013-14 Mid-year and Fiscal Economic Outlook, the Department of Finance temporarily quarantined the APSC’s surplus departmental appropriation funding of $38,000. Formal reduction of this temporarily quarantined appropriation will be made in a future period by the Department of Finance.

In 2015, no appropriation has been temporarily withheld (see footnote 4 for amounts that have been permanently withheld).

2. Receipts in 2014 were appropriated under section 31 of the Financial Management and Accountability Act 1997.

3. The variance in 2015 occurred due to the operating result excluding non-cash depreciation expense (see note 3) and an increase in suppliers payables (note 9a) and prepayments received (note 9b). These factors resulted in higher cash inflows for the year.

4. In 2013, as announced in the 2012-13 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance, the APSC relinquished control of surplus departmental appropriation funding of $112,000. This reduction of $112,000 under section 10 of Appropriation Act (No. 1) 2012-13 was determined by the Minister for Finance on 5 August 2013.

In 2015, as announced in the 2014-15 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance, the APSC relinquished control of surplus departmental appropriation funding of $13,000. This unused appropriation was permanently withheld by direction of a delegate for the Minister for Finance under section 51 of the PGPA Act on 30 June 2015.

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Note 16b: Departmental Capital Budgets (‘Recoverable GST exclusive’)Ordinary annual servicesDepartmental Capital Budget 1

2015$'000

2014$'000

Appropriation ActAnnual Capital Budget 422 669Total Appropriation Act 422 669Total Capital Budget Appropriations 422 669Capital Budget Appropriation applied (current and prior years)Payments for non-financial assets 2 (422) (669)Total payments (422) (669)Variance - -

1. Departmental Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 & 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Note 16a: Annual appropriations.

2. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset to its original condition, and the capital repayment component of finance leases.

Note 16c: Unspent Departmental Annual Appropriations (‘Recoverable GST exclusive’)

2015$’000

2014$’000

DepartmentalAppropriation Act (No. 1) 2013-14 38 22,285Appropriation Act (No. 1) 2014-15 26,759 -Total departmental 26,797 22,285

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Note 16d: Special Appropriations Applied ('Recoverable GST exclusive')

Appropriation applied

Authority Type Purpose2015

$’0002014$’000

Remuneration Tribunal Act 1973 – section 7(13) – Administered

Unlimited amount

An Act to inquire into, and determine or provide advice on, remuneration and related matters 1. 61,338 60,655

Remuneration and Allowances Act 1990 – section 8 – Administered

Unlimited amount

An Act to provide for the remuneration and allowances of holders and judicial offices, Secretaries of Departments and holders of public offices, Senators and Members of the House of Representatives, Ministers and office holders of the Parliament related matters 2. - -

Total special appropriations applied 61,338 60,655

1. The Department of the House of Representatives, the Department of the Senate and the Attorney-General’s Department drew from the Remuneration Tribunal Act 1973 - section 7(13) for the purpose of making payments of Parliamentarians' and Judicial Office Holders' remuneration and entitlements.

2. Due to amendments made in 2011 to the Remuneration Tribunal Act 1973, from 15 March 2012 payments are no longer made under the Remuneration and Allowances Act 1990.

Note 17: Reporting of Outcomes

Note 17a: Net cost of Outcome delivery Outcome 12015

$’0002014$’000

DepartmentalExpenses 44,369 48,480Own-source income 22,782 26,028

AdministeredExpenses 61,338 60,655Income 2 -

Net cost of outcome delivery 82,923 83,107

Outcome 1 is described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget outcome.

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Note 17b: Major classes of Departmental expense, income, assets and liabilities by outcomeAs the APSC only has one outcome, major classes of departmental assets and liabilities for Outcome 1 are as per the statement of financial position and major classes of departmental expenses and income for Outcome 1 are as per the statement of comprehensive income.

Note 17c: Major classes of Administered expense, income, assets and liabilities by outcomeAdministered expenses for Outcome 1 are as per the administered schedule of comprehensive income.

Note 18: Budgetary Reports and Explanations of Major VariancesThe following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for the APSC. The Budget is not audited.

Note 18a: Departmental Budgetary ReportsStatement of Comprehensive Incomefor the period ended 30 June 2015

Actual Budget EstimateOriginal1 Variance2

2015$’000

2015$’000

2015$’000

NET COST OF SERVICESExpensesEmployee benefits 26,270 27,519 (1,249)Suppliers 16,978 15,772 1,206Depreciation and amortisation 1,088 1,396 (308)Finance costs 11 20 (9)Write-down and impairment of assets 5 - 5Losses from asset sales 17 - 17Total expenses 44,369 44,707 (338)

Own-Source IncomeOwn-source revenueSale of goods and rendering of services 22,740 21,894 846Resources received free of charge 42 41 1Total own-source revenue 22,782 21,935 847Total own-source income 22,782 21,935 847

Net cost of services (21,587) (22,772) 1,185

Revenue from Government 21,637 21,650 (13)

Surplus/(Deficit) 50 (1,122) 1,172

Total comprehensive income/(loss) 50 (1,122) 1,172

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1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS).

2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Statement of Financial Positionas at 30 June 2015


2015$’000

2015$’000

2015$’000

ASSETSFinancial assetsCash and cash equivalents 1,382 450 932Trade and other receivables 27,409 26,802 607Total financial assets 28,791 27,252 1,539

Non-financial assetsLand and buildings 1,764 1,924 (160)Property, plant and equipment 1,039 993 46Intangibles 976 1,418 (442)Inventories 39 55 (16)Prepayments paid 463 992 (529)Total non-financial assets 4,281 5,382 (1,101)Total assets 33,072 32,634 438

LIABILITIESPayablesSuppliers 5,947 7,447 (1,500)Prepayments received 7,377 7,436 (59)Lease incentives 763 768 (5)Other payables 926 - 926Total payables 15,013 15,651 (638)

ProvisionsEmployee provisions 6,876 7,131 (255)Provision for restoration obligations 401 411 (10)Total provisions 7,277 7,542 (265)Total liabilities 22,290 23,193 (903)Net assets 10,782 9,441 1,341

EQUITYContributed equity 791 791 -Asset revaluation surplus 1,204 1,323 (119)Retained surplus 8,787 7,327 1,460Total equity 10,782 9,441 1,341


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Statement of Changes in Equityfor the period ended 30 June 2015

Retained earnings Asset revaluation surplus Contributed equity/capital Total equityActual Budget Estimate Actual Budget Estimate Actual Budget Estimate Actual Budget Estimate

Original1 Variance2 Original1 Variance2 Original1 Variance2 Original1 Variance2

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

2015$’000

Opening balance 8,737 8,449 288 1,204 1,323 (119) 369 369 - 10,310 10,141 169

Comprehensive incomeSurplus/(Deficit) for the

period 50 (1,122) 1,172 - - - - - - 50 (1,122) 1,172Total comprehensive income 50 (1,122) 1,172 - - - - - - 50 (1,122) 1,172

Transactions with owners

Contributions by ownersDepartmental capital

budget - - - - - - 422 422 - 422 422 -Total transactions with owners - - - - - - 422 422 - 422 422 -Closing balance as at 30 June 8,787 7,327 1,460 1,204 1,323 (119) 791 791 - 10,782 9,441 1,3411. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS).2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

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Cash Flow Statementfor the period ended 30 June 2015


2015$’000

2015$’000

2015$’000

OPERATING ACTIVITIESCash receivedAppropriations 21,324 21,650 (326)Sale of goods and rendering of services 25,378 21,894 3,484Net GST received 1,297 2,252 (955)Other cash received 512 - 512Total cash received 48,511 45,796 2,715

Cash usedEmployees 27,327 27,519 (192)Suppliers 16,290 17,635 (1,345)Section 74 receipts transferred to OPA 3,350 - 3,350Other cash used 650 - 650Total cash used 47,617 45,154 2,463Net cash from operating activities 894 642 252

INVESTING ACTIVITIESCash usedPurchase of property, plant and equipment 187 242 (55)Purchase of intangibles 237 822 (585)Total cash used 424 1,064 (640)Net cash used by investing activities (424) (1,064) 640

FINANCING ACTIVITIESCash receivedContributed equity 422 422 -Total cash received 422 422 -Net cash from financing activities 422 422 -

Net decrease in cash held 892 - 892Cash and cash equivalents at the beginning of the reporting period 490 450 40Cash and cash equivalents at the end of the reporting period 1,382 450 932



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Note 18b: Departmental Major Budget Variances for 2015Explanations of major variances Affected line items (and statement)

Employee expenses are lower than budget due to lower staffing levels throughout the year, primarily as a result of the government interim recruitment arrangements.

Supplier expenses are higher than budget, which is in line with the higher own-source income, where additional resources are required to deliver higher than expected levels of services in a number of business areas, including development and training, panel services and international assistance.

The total expenses is on budget.

The operating surplus variance is mainly due to lower than budget staffing expenses. This variance is within 3% of the total expenses budget.

Statement of Comprehensive Income:- Employee benefits$1,249,000 lower than budget

- Suppliers$1,206,000 higher than budget

- Surplus/(Deficit)$1,172,000 higher than budget

The balances for both ‘Cash’ and ‘Other payables’ are higher than budget due to the first fortnightly pay day for 2015-16 occurring on 1 July. Nine days of payroll is reported as ‘Other payables’ ($867,000), and the equivalent fund was drawn down in advance to the payroll bank account.

‘Prepayments paid’ is lower than budget as the timing of the Comcare premium payment (about $400,000) has now been changed from June to July.

The ‘Supplier payables’ balance is lower than budget as the accrual for nine days of payroll ($867,000) is reported separately as ‘Other payables’, but was originally budgeted under ‘Supplier payables’.

Statement of Financial Position:- Cash $932,000 higher than budget- Other payables $926,000 higher than budget

- Prepayments paid $529,000 lower than budget

- Suppliers (payables) $1,500,000 lower than budget

Receipts from customers are higher than budget due to higher levels of ‘Sale of goods and rendering of services’ revenue ($846,000), combined with a decrease in ‘Trade and other receivables’ ($2,848,000).

Payments to suppliers are lower than budget due to an increase in ‘Suppliers payables’ ($1,500,000) and lower than planned payments of GST.

The level of section 74 receipts transferred to the OPA varies according to the cash levels at the time of receipt.

The purchase of intangibles is lower than budget due to a lower level of capital investment, partially as a result of the transition to the Shared Service Centre where there is less requirement to invest in systems.

Cash Flow Statement:- Sale of goods and rendering of services $3,484,000 higher than budget

- Suppliers $1,345,000 lower than budget

- Section 74 receipts transferred to OPA $3,350,000 higher than budget

- Purchase of intangibles $585,000 lower than budget

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Note 18c: Administered Budgetary ReportsAdministered Schedule of Comprehensive Incomefor the period ended 30 June 2015


2015$’000

2015$’000

2015$’000

NET COST OF SERVICESExpensesEmployee benefits 61,338 61,963 (625)Total expenses 61,338 61,963 (625)

IncomeGainsOther gains 2 - 2Total gains 2 - 2Total income 2 - 2

Net cost of services (61,336) (61,963) 627

Total comprehensive loss (61,336) (61,963) 627

1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS).2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

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Administered Cash Flow Statementfor the period ended 30 June 2015


2015$’000

2015$’000

2015$’000

OPERATING ACTIVITIESCash receivedOther 2 - 2Total cash received 2 - 2

Cash usedEmployees 61,338 61,963 (625)Total cash used 61,338 61,963 (625)Net cash used by operating activities (61,336) (61,963) 627

Net decrease in cash held (61,336) (61,963) 627

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

Cash from Official Public AccountAppropriations 61,338 61,963 (625)Total cash from official public account 61,338 61,963 (625)

Cash to Official Public AccountAppropriations 2 - 2Total cash to official public account (2) - (2)

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

1. The original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e. from the 2014-15 PBS).2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided further below.

Note 18d: Administered Major Budget Variances for 2015Explanations of major variances Affected line items (and statement)

Employee expenses were within 1% of the original budget.

Statement of Comprehensive Income:- Employee benefits $625,000 lower than budget

Payments to employees were within 1% of the original budget.

Cash Flow Statement: - Employees $625,000 lower than budget

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2014-15 financial statements - apsc.gov.au web viewnotes to the financial statements. ... involve...

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