Web view(1,192) (1,025) Over five years (809) (1,018) Total GST recoverable on commitments (2,691)...

Australian Public Service CommissionStatement of Comprehensive Incomefor the period ended 30 June 2013

Notes 2013$’000

2012$’000

EXPENSESEmployee benefits 3a 30,960 31,311Supplier 3b 19,480 23,765Depreciation and amortisation 3c 1,189 1,511Finance costs 3d 19 22Write-down and impairment of assets 3e - 9Losses from asset sales 3f 167 48Total expenses 51,815 56,666

LESS:OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 4a 29,000 30,069Resources received free of charge 4b 39 39Total own-source revenue 29,039 30,108

GainsReversals of previous asset write-downs and

impairments4c 3 -

Total gains 3 -

Total own-source income 29,042 30,108

Net cost of services 22,773 26,558

Revenue from Government 4d 23,201 25,830

Surplus (Deficit) 428 (728)

OTHER COMPREHENSIVE INCOMEItems not subject to subsequent reclassification to

profit or lossChanges in asset revaluation surplus - (243)Total other comprehensive income - (243)

Total comprehensive income (loss) 428 (971)

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

Australian Public Service CommissionBalance Sheetas at 30 June 2013

Notes 2013$’000

2012$’000

ASSETSFinancial assetsCash and cash equivalents 5a 575 706Trade and other receivables 5b 27,185 26,202Total financial assets 27,760 26,908

Non-financial assetsLand and buildings 6a, d 2,656 3,139Property, plant and equipment 6b, d 1,351 1,881Intangibles 6c, d 898 654Inventories 6e 55 50Prepayments paid 6f 992 763Total non-financial assets 5,952 6,487Total assets 33,712 33,395

LIABILITIESPayablesSuppliers 7a 6,055 7,565Prepayments received 7b 7,436 6,945Lease incentives 7c 1,100 1,266Other payables 7d 1,412 894Total payables 16,003 16,670

ProvisionsEmployee provisions 8a 7,131 6,860Provision for restoration obligations 8b 372 460Total provisions 7,503 7,320Total liabilities 23,506 23,990Net assets 10,206 9,405

EQUITYContributed equity (300) (673)Asset revaluation surplus 1,323 1,323Retained surplus 9,183 8,755Total equity 10,206 9,405


Australian Public Service CommissionStatement of Changes in Equityfor the period ended 30 June 2013

Item Retained earnings

Asset revaluation

surplus

Contributed equity / capital

Total equity

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

2013$’000

2012$’000

Opening balance 8,755 9,483 1,323 1,566 (673) (857) 9,405 10,192

Comprehensive incomeOther comprehensive income* - - - (243) - - - (243)Surplus (Deficit) for the period 428 (728) - - - - 428 (728)

Total comprehensive income 428 (728) - (243) - - 428 (971)

Transactions with owners

Contributions by ownersDepartmental capital

budget - - - - 373 184 373 184Sub-total transactions with owners - - - - 373 184 373 184

Closing balance as at 30 June 9,183 8,755 1,323 1,323 (300) (673) 10,206 9,405

* See note 6a for details of revaluation adjustments.


Australian Public Service CommissionCash Flow Statementfor the period ended 30 June 2013

Notes 2013$’000

2012$’000

OPERATING ACTIVITIESCash receivedAppropriations 23,201 25,830Receipts from Government 7,256 2,850Sale of goods and rendering of services 29,066 32,916Net GST received 903 -Other cash received 1,150 1,151Total cash received 61,576 62,747

Cash usedEmployees 31,286 31,839Suppliers 22,728 24,701Net GST paid - 411Section 31 receipts transferred to OPA 6,600 4,361Other cash used 561 872Total cash used 61,175 62,184Net cash from (used by) operating activities 10 401 563

INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipment 51 -Total cash received 51 -

Cash usedPurchase of property, plant and equipment 476 887Purchase of intangibles 480 445Total cash used 956 1,332Net cash from (used by) investing activities (905) (1,332)

FINANCING ACTIVITIESCash receivedContributed equity 373 184Total cash received 373 184Net cash from (used by) financing activities 373 184

Net increase (decrease) in cash held (131) (585)Cash and cash equivalents at the beginning of the reporting period

706 1,291

Cash and cash equivalents at the end of the reporting period 5a 575 706


Australian Public Service CommissionSchedule of Commitmentsas at 30 June 2013

2013$’000

2012$’000

BY TYPECommitments receivable

Sublease rental income (49) (168)GST recoverable on commitments 1 (2,691) (2,615)

Total commitments receivable (2,740) (2,783)

Commitments payableCapital commitmentsProperty, plant and equipment 2 4 70Intangibles 3 156 33Total capital commitments 160 103

Other commitmentsOperating leases 4 21,874 24,649Other commitments 5 7,624 4,177Total other commitments 29,498 28,826

Total commitments payable 29,658 28,929Net commitments by type 26,918 26,146

Notes: 1. Commitments are GST inclusive where relevant.2. Contractual commitments for office fit-out.3. Contractual commitments for the development of software.4. Operating leases included were effectively non-cancellable. The APSC has leases for office accommodation. Lease payments are subject to rent reviews in accordance with the lease agreement. The initial periods of office accommodation leases are still current.5. Other commitments comprise amounts committed for fee for service, policy and administrative activities.

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

Australian Public Service CommissionSchedule of Commitmentsas at 30 June 2013

2013$’000

2012$’000

BY MATURITY

Commitments receivableOperating lease incomeOne year or less (24) (135)From one to five years (25) (33)Over five years - -Total operating lease income (49) (168)

GST recoverable on commitmentsOne year or less (690) (572)From one to five years (1,192) (1,025)Over five years (809) (1,018)Total GST recoverable on commitments (2,691) (2,615)

Total commitments receivable (2,740) (2,783)

Commitments payableCapital commitmentsOne year or less 160 103From one to five years - -Over five years - -Total capital commitments 160 103

Operating lease commitmentsOne year or less 2,651 2,738From one to five years 10,456 10,880Over five years 8,767 11,031Total operating lease commitments 21,874 24,649

Other commitmentsOne year or less 4,804 3,584From one to five years 2,685 421Over five years 135 172Total other commitments 7,624 4,177

Total commitments payable 29,658 28,929Net commitments by maturity 26,918 26,146

Note: Commitments are GST inclusive where relevant.


Australian Public Service CommissionSchedule of Contingenciesas at 30 June 2013

There are no departmental contingencies as at 30 June 2013 (2012: nil).


Australian Public Service Commission

Administered Schedule of Comprehensive Incomefor the period ended 30 June 2013

Notes 2013$’000

2012$’000

EXPENSESEmployee benefits 16a 59,323 49,596Total expenses administered on behalf of Government

59,323 49,596

Net cost of services 59,323 49,596

Surplus (Deficit) (59,323) (49,596)

OTHER COMPREHENSIVE INCOMETotal other comprehensive income - -

Total comprehensive income (loss) (59,323) (49,596)

Administered Schedule of Assets and Liabilitiesas at 30 June 2013

There are no assets or liabilities administered on behalf of government as at 30 June 2013 (2012: nil).

Administered Reconciliation Scheduleas at 30 June 2013

2013$’000

2012$’000

Opening administered assets less administered liabilities as at 1 July - -Surplus (deficit) items:

Less: Administered expenses (59,323) (49,596)Administered transfers (to)/from Australian Government:

Appropriation transfers from OPA:Special appropriations (unlimited) 59,323 49,596

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

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

Australian Public Service Commission

Administered Cash Flow Statementfor the period ended 30 June 2013

Notes 2013$’000

2012$’000

OPERATING ACTIVITIESCash usedEmployees 59,323 49,596Total cash used 59,323 49,596Net cash from (used by) operating activities (59,323) (49,596)

Net increase (decrease) in cash held (59,323) (49,596)Cash and cash equivalents at the beginning of the

reporting period - -Cash from Official Public Account for appropriations 59,323 49,596Cash and cash equivalents at the end of the reporting period - -

Schedule of Administered Commitmentsas at 30 June 2013

There are no administered commitments as at 30 June 2013 (2012: nil).

Schedule of Administered Contingenciesas at 30 June 2013

There are no administered contingencies as at 30 June 2013 (2012: nil).

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

Australian Public Service CommissionTable of Contents - Notes

Note Description1 Summary of significant accounting policies2 Events occurring after reporting date3 Expenses4 Income5 Financial assets6 Non-financial assets7 Payables8 Provisions9 Restructuring

10 Cash flow reconciliation11 Contingent assets and liabilities12 Senior executive remuneration13 Remuneration of Auditors14 Financial instruments15 Financial assets reconciliation16 Administered - expenses17 Administered - contingent liabilities and assets18 Administered - financial instruments19 Appropriations20 Compliance with statutory conditions for payments from the Consolidated

Revenue Fund21 Special accounts22 Compensation and debt relief23 Reporting of outcomes24 Net cash appropriation arrangements

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Note 1: Summary of Significant Accounting Policies

1.1 Objective of the APSC

The 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 APS.

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 programs is dependent on Government policy and on continuing funding by Parliament for the APSC’s administration and programs.

APSC activities contributing toward 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 49 of the Financial Management and Accountability Act 1997.

The Financial Statements have been prepared in accordance with: Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2011 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.

Unless an alternative treatment is specifically required by an accounting standard or the 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 APSC or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.

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

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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 (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs. 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.

1.3 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 Changes in 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.

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

Accounting standard AASB 13 Fair Value Measurement applies from 1 July 2013. This standard sets out a framework for measuring fair value and disclosing fair value measurements. All leasehold improvement and property, plant and equipment will be valued under the new fair value framework as at 1 July 2013. This is not expected to have a material impact on the reported fair value of assets.

No other 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.

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.

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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.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: recognition and measurement.

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.

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

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.

1.6 Gains

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.

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

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

Sale of assets

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

1.7 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.

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Restructuring of Administrative Arrangements

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

Other distributions to owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend.

In 2013, as announced in the 2012-13 Mid-year and Fiscal Economic Outlook, by agreement with the Department of Finance and Deregulation, the APSC relinquished control of surplus departmental appropriation funding of $112,000. On 29 June 2013, the Parliamentary Secretary to the Prime Minister requested a reduction in departmental appropriations by $112,000. The amount of the reduction under Appropriation Act (No. 1) 2012-13 is $112,000. The formal determination occurred in August 2013.

1.8 Employee benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) 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.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

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 2013. The estimate of the present value of the liability takes into account attrition rates and pay rises through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The APSC recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

Staff of the APSC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

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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 and Deregulation’s administered schedules and notes.

The APSC makes employer contributions to the employees’ superannuation scheme 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 7d) recognised as at 30 June represents outstanding contributions for the final fortnight of the financial year. The provision for superannuation (note 8a) recognised as at 30 June represents the estimated superannuation payable on the provision for annual leave and long service leave.

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 risks and rewards incidental to ownership of leased 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.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a 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.

1.10 Borrowing costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes: cash on hand demand 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 held by outsiders and cash in special accounts.

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1.12 Financial assets

The APSC classifies its financial assets in the following categories: loans and 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, where appropriate, a shorter period.

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

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and 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 the end of each reporting period.

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables 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 statement of comprehensive income.

1.13 Financial Liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or as other financial liabilities. Financial liabilities are recognised and derecognised upon trade date.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other financial liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

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

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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).

1.14 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 asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

1.15 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 plus transaction costs where appropriate.

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. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

1.16 Property, plant and equipment

Asset recognition threshold

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

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.

Revaluations

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

Asset class Fair value measured at:Leasehold improvements Depreciated replacement costProperty, plant and equipment Market selling price

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.

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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 / deficit. Revaluation decrements for a class of assets are recognised directly in the surplus / 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 and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

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

Asset class 2013 2012Leasehold improvements Lease term Lease termProperty, plant and equipment 1 to 7 years 1 to 7 years

Impairment

All assets were assessed for impairment at 30 June 2013. 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.

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 APSC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

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.

1.17 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 software and $60,000 (2012: $10,000) for 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 (2012: 2 to 10 years).

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All intangible assets were assessed for impairment as at 30 June 2013.

1.18 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value.

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

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows: raw materials and stores – purchase cost on a first-in-first-out basis and finished goods and work-in-progress – cost of direct materials and labour plus attributable

costs that are capable of being allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

1.19 Taxation / Competitive Neutrality

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.

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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 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 APSC on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Revenue

All administered revenues are revenues relating to ordinary activities performed by the APSC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of funds as directed.

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through profit or loss.

Indemnities

The maximum amounts payable under the indemnities given is disclosed in the schedule of administered contingencies. At the time of completion of the financial statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.

Grants and Subsidies

The APSC does not administer any grant or subsidy schemes on behalf of the Government.

Payments to CAC Act Bodies

The APSC does not administer payments to CAC Act bodies.

Note 2: Events Occurring After Reporting Date

There was no subsequent event that had the potential to affect the ongoing structure and financial activities of the APSC.

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Note 3: Expenses

2013$’000

2012$’000

Note 3a: Employee benefitsWages and salaries 22,570 23,805Superannuation: Defined contribution plans 1,707 1,594 Defined benefit plans 2,457 2,390Leave and other entitlements 2,969 3,018Separation and redundancies 1,257 504Total employee benefits 30,960 31,311

Note 3b: SupplierGoods and ServicesConsultants 1,238 1,922Contractors 8,144 9,666Stationery 101 168Travel 1,733 2,187Venue hire and catering 1,141 1,468Publications and printing 237 436Advertising and communications 63 61Training 460 534Information and communications technology 2,791 2,645Facilities expense 122 325Other goods and services expense 469 600Total goods and services 16,499 20,012

Goods and services are made up of:Provision of goods - related entities 9 40Provision of goods - external parties 463 821Rendering of services - related entities 2,685 2,801Rendering of services - external parties 13,342 16,350Total goods and services 16,499 20,012

Other supplier expensesOperating lease rentals - related parties Sublease 332 320Operating lease rentals - external parties Minimum lease payments 2,408 2,801 Contingent rentals 65 418Worker compensation expenses 176 214Total other supplier expenses 2,981 3,753

Total supplier expenses 19,480 23,765

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2013$’000

2012$’000

Note 3c: Depreciation and amortisationDepreciation:

Buildings 435 734Property, plant and equipment 471 468

Total depreciation 906 1,202

Amortisation:Intangibles 283 309

Total amortisation 283 309Total depreciation and amortisation 1,189 1,511

Note 3d: Finance costsUnwinding of discount on provision for restoration obligations 19 22Total finance costs 19 22

Note 3e: Write-down and impairment of assetsAsset write-downs and impairment from:

Impairment on goods and services receivable - 9Total write-down and impairment of assets - 9

Note 3f: Losses from asset salesBuildings:

Proceeds from sale (50) -Carrying value of assets sold 112 24

62 24

Property, plant and equipment:Proceeds from sale (1) -Carrying value of assets sold 106 12

105 12

Intangibles:Proceeds from sale - -Carrying value of assets sold - 12

- 12

Total losses from asset sales 167 48

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Note 4: Income

2013$’000

2012$’000

Own-source revenue

Note 4a: Sale of goods and rendering of servicesProvision of goods - related entities 4 5Provision of goods - external parties 1 2Rendering of services - related entities 28,009 28,219Rendering of services - external parties 986 1,843Total sale of goods and rendering of services 29,000 30,069

Note 4b: Resources received free of chargeResources received free of charge 39 39

Gains

Note 4c: Reversals of previous asset write-downs and impairmentsReversal of impairment losses 3 -

Revenue from Government

Note 4d: Revenue from GovernmentAppropriations: Departmental appropriations 23,201 25,830Total revenue from Government 23,201 25,830

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Note 5: Financial Assets

2013$’000

2012$’000

Note 5a: Cash and cash equivalentsCash on hand or on deposit 575 706Total cash and cash equivalents 575 706

Note 5b: Trade and other receivablesGoods and services:

Goods and services – related entities 5,278 3,802Goods and services – external parties 85 238

Total goods and services receivable 5,363 4,040

Appropriations receivable:For existing programs 21,324 21,980

Total appropriations receivable 21,324 21,980

Other receivables:GST receivable from the Australian Taxation Office 475 163Incentive receivable 25 25

Total other receivables 500 188

Total trade and other receivables (gross) 27,187 26,208Less: impairment allowance account - goods and services (2) (6)

Total trade and other receivables (net) 27,185 26,202

All receivables are expected to be recovered in no more than 12 months.

Receivables are aged as follows:Not overdue 26,595 25,667Overdue by:

0 to 30 days 250 43031 to 60 days 247 4961 to 90 days 79 8More than 90 days 16 54

592 541Total receivables (gross) 27,187 26,208

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2013$’000

2012$’000

Note 5b: Trade and other receivables (continued)

The impairment allowance account is aged as follows:Overdue by:

more than 90 days (2) (6)Total impairment allowance account (2) (6)

Reconciliation of impairment allowance accountOpening balance (6) (8)

Amounts written-off 4 5Amounts recovered and reversed 2 2(Increase) / decrease recognised in net surplus (2) (5)

Closing balance (2) (6)

Credit terms for goods and services were within 30 days (2012: 30 days).

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Note 6: Non-Financial Assets

2013$’000

2012$’000

Note 6a: Land and buildingsLeasehold improvements:

Fair value 3,404 3,856Accumulated depreciation (748) (717)

Total leasehold improvements 2,656 3,139Total land and buildings 2,656 3,139

Leasehold improvements were assessed for impairment as at 30 June 2013, no impairment loss was identified (2012: a loss of $242,000 was debited to the asset revaluation surplus by asset class and included in the equity section of the balance sheet).

No leasehold improvements (2012: gross value of $266,000 and net value of $8,000) are expected to be disposed of within the next 12 months.

Leasehold improvements were last subject to revaluation on 30 June 2011. All leasehold improvements acquired since 1 July 2011 are carried at cost, which is materially reflective of fair value.

Note 6b: Property, plant and equipmentOther property, plant and equipment:

Fair value 2,896 3,060Accumulated depreciation (1,545) (1,179)

Total other property, plant and equipment 1,351 1,881Total property, plant and equipment 1,351 1,881

No indicators of impairment were found for property, plant and equipment.

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

Leasehold improvements were last subject to revaluation on 30 June 2011. All leasehold improvements acquired since 1 July 2011 are carried at cost, which is materially reflective of fair value. Property, plant and equipment was last subject to revaluation on 30 June 2009. All property, plant and equipment acquired since 1 July 2009 are carried at cost, which is materially reflective of fair value.

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2013$’000

2012$’000

Note 6c: IntangiblesComputer software:

Internally developed - in progress 363 -Internally developed - in use 1,582 1,392Purchased 366 405Accumulated amortisation (1,441) (1,167)

Total computer software 870 630

Intellectual property:Internally developed - in use 814 839Accumulated amortisation (786) (815)

Total intellectual property 28 24

Total intangibles 898 654

No indicators of impairment were found for intangible assets.

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

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Note 6d: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles 2013

Item Buildings leasehold

improvements

Other property,

plant & equipment

Computer software

purchased

Computer software

internally developed

Intellectual property

Total intangibles

Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2012

Gross book value 3,856 3,060 405 1,392 839 2,636 9,552Accumulated depreciation / amortisation and impairment

(717) (1,179) (98) (1,069) (815) (1,982) (3,878)

Net book value 1 July 2012 3,139 1,881 307 323 24 654 5,674Additions

By purchase or internally developed 64 47 (38) 552 13 527 638Revaluations and impairments through equity

- - - - - - -

Depreciation / amortisation expense (435) (471) (117) (157) (9) (283) (1,189)Disposals

Other disposals (112) (106) - - - - (218)

Net book value 30 June 2013 2,656 1,351 152 718 28 898 4,905

Net book value as at 30 June 2012 represented by:


(748) (1,545) (215) (1,226) (786) (2,227) (4,520)


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Note 6d: (continued) Reconciliation of the opening and closing balances of property, plant and equipment and intangibles 2012

Item Buildings leasehold

improvements

Other property,

plant & equipment

Computer software

purchased

Computer software

internally developed

Intellectual property

Total intangibles

Total

$’000 $’000 $’000 $’000 $’000 $’000 $’000As at 1 July 2011

Gross book value 3,553 2,588 130 1,170 1,005 2,305 8,446Accumulated depreciation / amortisation and impairment

(11) (767) (41) (851) (962) (1,854) (2,632)

Net book value 1 July 2011 3,542 1,821 89 319 43 451 5,814Additions

By purchase or internally developed 598 541 274 223 27 524 1,663Revaluations and impairments through equity

(243) - - - - - (243)

Depreciation / amortisation expense (734) (468) (56) (219) (34) (309) (1,511)Disposals

Other disposals (24) (13) - - (12) (12) (49)


Net book value as at 30 June 2012 represented by:


(717) (1,179) (98) (1,069) (815) (1,982) (3,878)


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2013$’000

2012$’000

Note 6e: InventoriesInventories held for distribution 55 50Total inventories 55 50

In 2013, $7,000 of inventory held for distribution was recognised as an expense (2012: $37,000).

No items of inventory were recognised at fair value less cost to sell.

All inventory is expected to be sold or distributed in the next 12 months.

Note 6f: Prepayments paidPrepayments paid 992 763

Prepayments paid are expected to be recovered in:No more than 12 months 987 757More than 12 months 5 6

Total prepayments paid 992 763

No indicators of impairment were found for prepayments paid.

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Note 7: Payables

2013$’000

2012$’000

Note 7a: SuppliersTrade creditors and accruals 4,254 5,783Operating lease rentals 1,801 1,782Total supplier payables 6,055 7,565

Supplier payables expected to be settled within 12 months:Related entities 1,596 939External parties 2,681 4,870

Total 4,277 5,809

Supplier payables expected to be settled in greater than 12 months:Related entities - -External parties 1,778 1,756

Total 1,778 1,756Total suppliers payable 6,055 7,565

Note 7b: Prepayments receivedPrepayments received are expected to be settled in:

No more than 12 months 7,373 6,826More than 12 months 63 119

Total prepayments received 7,436 6,945

Note 7c: Operating Lease incentivesOperating lease incentives are expected to be settled in:

No more than 12 months 166 166More than 12 months 934 1,100

Total lease incentives 1,100 1,266

Note 7d: Other payablesWages and salaries 640 748Superannuation 105 102Separations and redundancies 638 -Other 29 44Total other payables 1,412 894

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

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Note 8: Provisions

2013$’000

2012$’000

Note 8a: Employee provisionsLeave 6,590 6,354Superannuation 541 506Total employee provisions 7,131 6,860

Employee provisions are expected to be settled in:No more than 12 months 3,236 2,860More than 12 months 3,895 4,000

Total employee provisions 7,131 6,860

Note 8b: Provision for restoration obligationsCarrying amount 1 July 460 458

Additional provisions made - 6Amounts used (39) (26)Amounts reversed (68) -Unwinding of discount or change in discount rate 19 22

Closing balance 30 June 372 460

Provision for restoration obligations are expected to be settled in:No more than 12 months - 38More than 12 months 372 422

Total provision for restoration obligations 372 460

The APSC currently has two (2012: four) agreements for the leasing of premises which have provisions requiring the APSC to restore the premises to their original condition at the conclusion of the lease. The APSC has made a provision to reflect the present value of this obligation.

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Note 9: Restructuring

Note 9a: Departmental Restructuring

There were no restructures for 2013 (2012: nil).

Note 9b: Administered Restructuring

There were no restructures for 2013 (2012: nil).

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Note 10: Cash Flow Reconciliation

2013$’000

2012$’000

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement:

Cash and cash equivalents as per:Cash flow statement 575 706Balance sheet 575 706

Difference - -

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

Net cost of services (22,773) (26,558)Add revenue from Government 23,201 25,830

Adjustments for non-cash itemsDepreciation and amortisation 1,189 1,511(Gain) / loss on sale of assets 167 48

Changes in assets / liabilities(Increase) / decrease in net receivables (983) (1,920)(Increase) / decrease in inventories (5) 38(Increase) / decrease in prepayments paid (229) (257)Increase / (decrease) in supplier payables (1,192) 1,356Increase / (decrease) in prepayments received 491 (208)Increase / (decrease) in operating lease incentives (166) 165Increase / (decrease) in other payables 518 (165)Increase / (decrease) in employee provisions 271 721

Increase / (decrease) in provision for restoration obligations

(88) 2

Net cash from / (used by) operating activities 401 563

Note 11: Contingent Assets and Liabilities

The APSC has no quantifiable, unquantifiable or significant remote departmental contingent assets and liabilities (2012: nil).

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Note 12: Senior Executive Remuneration

Note 12a: Senior Executive remuneration expenses for the reporting period

2013 2012$ $

Short-term employee benefits:Salary 2,573,527 2,369,232Annual leave accrued 250,413 230,477Performance bonuses - 4,745Motor vehicle and other allowances 339,655 385,803

Total short-term employee benefits 3,163,595 2,990,257

Post employment benefits:Superannuation 461,830 418,056

Total post employment benefits 461,830 418,056

Other long-term benefits:Long service leave 191,523 84,539

Total other long-term benefits 191,523 84,539

Termination benefits:Voluntary redundancy payments - -

Total other long-term benefits - -

Total employment benefits 3,816,948 3,492,852

Notes:1. This note is prepared on an accrual basis (therefore the performance bonus expenses disclosed

above may differ from the cash ‘Bonus paid’ in note 12b).2. This note excludes acting arrangements and part year service where total remuneration

expensed for a senior executive was less than $180,000.

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Note 12b: Average annual reportable remuneration paid to substantive Senior Executives during the reporting period

Average annual reportable remuneration paid to substantive senior executives in 2013

Average annual reportable remuneration 1

Substantive Senior

Executives No.

Reportable salary 2

$

Contributed superannuation 3

$Reportable

allowances 4

$

Bonus paid 5

$

Total reportable

remuneration $

Total remuneration (including part-time arrangements):Less than $180,000 2 98,745 11,368 - - 110,113$180,000 to $209,999 2 178,559 27,787 - - 206,346$210,000 to $239,999 6 194,649 29,334 - - 223,983$240,000 to $269,999 2 223,250 39,415 - - 262,665$270,000 to $299,999 1 237,105 34,240 - - 271,345$300,000 to $329,999 1 282,864 45,145 - - 328,009$540,000 to $569,999 1 493,276 72,038 - - 565,314

Total 15

Average annual reportable remuneration paid to substantive senior executives in 2012


Substantive Senior

Executives No.

Reportable salary 2

$


$Reportable

allowances 4

$

Bonus paid 5

$

Total reportable

remuneration$

Total remuneration (including part-time arrangements):Less than $180,000 3 110,106 14,099 - - 124,205$180,000 to $209,999 3 176,258 22,566 - - 198,824$210,000 to $239,999 6 196,624 28,960 - - 225,584$240,000 to $269,999 1 209,298 39,529 - - 248,827$270,000 to $299,999 2 247,742 36,198 - 2,372 286,312$480,000 to $509,999 1 444,375 64,673 - - 509,048

Total 16

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Note 12b (continued): Average annual reportable remuneration paid to substantive Senior Executives during the reporting period

Notes:1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column) b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits) c) exempt foreign employment income and d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the APSC for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.

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Note 12c: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period

Average annual reportable remuneration paid to other highly paid staff in 2013


Other highly paid

staff No.

Reportable salary 2

$


$

Reportable allowances

4

$

Bonus paid 5

$

Total reportable

remuneration$

Total remuneration (including part-time arrangements):

$180,000 to $209,999 0 - - - - -Total number of other highly paid staff 0

Average annual reportable remuneration paid to other highly paid staff in 2012


Other highly paid staff

No.

Reportable salary 2

$


$

Reportable allowances

4

$

Bonus paid 5

$

Total reportable

remuneration$

Total remuneration (including part-time arrangements):$180,000 to $209,999 1 179,677 18,802 - - 198,479

Total number of other highly paid staff 1

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Note 12c (continued): Other highly paid staff

Notes:1. This table reports staff: a) who were employed by the APSC during the reporting period b) whose reportable remuneration was $180,000 or more for the financial period and c) were not required to be disclosed in Table B or director disclosures. Each row is an averaged figure based on headcount for individuals in the band.

2. 'Reportable salary' includes the following: a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column) b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits) c) exempt foreign employment income and d) salary sacrificed benefits.

3. The 'contributed superannuation' amount is the average cost to the APSC for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.

4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.

5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.

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Note 13: Remuneration of Auditors

2013$’000

2012$’000

Financial statement audit services were provided free of charge to the APSC by the Australian National Audit Office (ANAO).

Fair value of the services provided Financial statement audit services 39 39

No other services were provided by the ANAO.

Note 14: Financial Instruments

Note 14a: Categories of financial instruments

2013$’000

2012$’000

Financial AssetsLoans and receivables:

Cash and cash equivalents 575 706Trade and other receivables 5,361 4,034Incentive receivable 25 25

Total 5,961 4,765

Carrying amount of financial assets 5,961 4,765

Financial LiabilitiesAt amortised cost:

Trade creditors 4,254 5,783Other payables 29 44

Total 4,283 5,827

Carrying amount of financial liabilities 4,283 5,827

Note 14b: Net income and expense from financial assetsLoans and receivables

Impairment on goods and services receivable 3 (9)Net gain/(loss) loans and receivables 3 (9)

Net gain/(loss) from financial assets 3 (9)

Note 14c: Net income and expense from financial liabilities

The total interest expense from financial liabilities not at fair value from profit and loss is nil (2012: nil).

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Note 14d: Fair value of financial instruments

The carrying amount of all financial assets and liabilities is a reasonable approximation of their fair value. The net fair values of finance lease liabilities are based on discounted cash flows using the interest rate implicit in the lease.

Note 14e: Credit risk

The APSC was exposed to minimal credit risk as loans and receivables were goods and services receivable and incentive receivable. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of goods and services and incentive receivable (see note 14a). The APSC has assessed the risk of the default on payment and has allocated an allowance for impairment on goods and services receivable.

The APSC’s goods and services receivable are principally recoverable from other Australian Government agencies. The incentive receivable is recoverable from a building lessor, with the amount recoverable specified in the lease agreement. In addition, the APSC had policies and procedures that guide debt recovery techniques that were to be applied.

The APSC holds no collateral to mitigate against credit risk.

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

Not Past Due Nor

Impaired2013

$’000

Not Past Due Nor Impaired

2012$’000

Past due or

impaired2013

$’000

Past due or impaired

2012$’000

Cash - - - -Goods and services receivable 4,771 3,499 592 541Incentive receivable 25 25 - -

Total 4,796 3,524 592 541

Ageing of financial assets that are past due but not impaired

Year

0 to 30 days$’000

31 to 60 days$’000

61 to 90days

$’000

90+days

$’000

Total

$’000

Goods and services receivable:

2013 250 247 79 14 5902012 430 49 8 48 535

The following list of assets have been individually assessed as impaired

Financial Assets 2013$’000

2012$’000

Loans and receivablesGoods and services receivable (2) (6)

Total (2) (6)

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These items are assessed as impaired as they are past due by 90 + days and it will be uneconomic to pursue them.

Note 14f: Liquidity risk

The APSC’s financial liabilities were payables. The exposure to liquidity risk was based on the notion that the APSC will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the APSC is appropriated funding from the Australian Government and the APSC manages its budgeted funds to ensure it has adequate funds to meet payments 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.

Maturities for non-derivative financial liabilities 2013On

demand$’000

Within 1 year$’000

1 to 2 years$’000

2 to 5 years$’000

> 5 years

$’000

Total

$’000Financial LiabilitiesLiabilities at amortised cost

Trade creditors - 4,254 - - - 4,254Other payables - 29 - - - 29

Total liabilities at amortised cost

- 4,283 - - - 4,283

Total - 4,283 - - - 4,283

Maturities for non-derivative financial liabilities 2012On

demand$’000

Within 1 year$’000

1 to 2 years$’000

2 to 5 years$’000

> 5 years

$’000

Total

$’000Financial LiabilitiesLiabilities at amortised cost

Trade creditors - 5,783 - - - 5,783Other payables - 44 - - - 44

Total liabilities at amortised cost

- 5,827 - - - 5,827

Total - 5,827 - - - 5,827

The APSC had no derivative financial instruments in either 2013 or 2012.

Note 14g: Market risk

The APSC held basic financial instruments that did not expose the APSC to certain market risks such as ‘Currency risk’ and ‘Other price risk’.

There are no interest-bearing items on the balance sheet.

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Note 15: Financial Assets Reconciliation

Financial assets Notes2013

$’0002012$’000

Total financial assets as per balance sheet 27,760 26,908Less: non-financial instrument components:

Appropriations receivable 5b 21,324 21,980Other receivables 5b 475 163

Total non-financial instrument components 21,799 22,143Total financial assets as per financial instruments note

5,961 4,765

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Note 16: Administered - Expenses

Note 16a: Employee Benefits

2013$’000

2012$’000

Employee benefitsWages and salaries 59,323 49,596Total employee benefits expense 59,323 49,596

Note 17: Administered - Contingent Assets and Liabilities

The APSC has no quantifiable, unquantifiable or significant remote administered contingent assets and liabilities (2012: nil).

Note 18: Administered - Financial Instruments

The APSC has no administered financial instruments.

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Note 19: Appropriations

Table A: Annual Appropriations (‘Recoverable GST exclusive’)

2013 Appropriations Appropriation applied in 2013

(current and prior years) Variance

Appropriation Act FMA ActTotal

AppropriationAnnual

AppropriationAppropriations

reduced 1 Section 30 Section 31 Section 32$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental:Ordinary annual

services 23,686 - 29,918 - 53,604 (53,717) (113)Other services:

Equity - - - - - - -Total Departmental 23,686 - 29,918 - 53,604 (53,717) (113)

Notes:1. Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2012-13: sections 10, 11 and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2012-13: sections 12, 13, and 14. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.

On 29 June 2013, the Parliamentary Secretary to the Prime Minister sent a letter to the Finance Minister requesting a reduction in 2012-13 departmental appropriations under Appropriation Act (No. 1) 2012-13 of $112,000. This reduction was determined by the Finance Minister on 5 August 2013 and will be disclosed as a formal reduction in the 2013-14 Annual Appropriation table.

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Table A: Annual Appropriations (‘Recoverable GST exclusive’)

2012 Appropriations Appropriation applied in 2012

(current and prior years) Variance

Appropriation Act FMA ActTotal

AppropriationAnnual

AppropriationAppropriations

reduced 1 Section 30 Section 31 Section 32$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental:Ordinary annual

services 26,014 - - 31,356 - 57,370 (56,514) 856Other services:

Equity - - - - - - -Total Departmental 26,014 - - 31,356 - 57,370 (56,514) 856

Notes:1. Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2011-12: sections 10, 11 and 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2011-12: sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.

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Table B: Departmental Capital Budgets (‘Recoverable GST exclusive’)

2013 Capital Budget Appropriations Capital Budget Appropriations applied in 2013 (current and prior years)

Variance

Appropriation Act FMA ActTotal Capital

Budget Appropriations

Payments for non-

financial assets 3

Payments for other

purposesTotal

paymentsAnnual Capital

BudgetAppropriations

reduced 2Section

32$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental:Ordinary annual services – Departmental Capital Budget 1 373 - - 373 373 - 373 -

Notes: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 Table A: Annual appropriations.2. Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.3. 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.

2012 Capital Budget Appropriations Capital Budget Appropriations applied in 2012 (current and prior years)

Variance

Appropriation Act FMA ActTotal Capital

Budget Appropriations

Payments for non-

financial assets 3

Payments for other

purposesTotal

paymentsAnnual Capital

BudgetAppropriations

reduced 2Section

32$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Departmental:Ordinary annual services – Departmental Capital Budget 1 184 - - 184 184 - 184 -

Notes: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 Table A: Annual appropriations.2. Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2011-12: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.3. 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.

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Table C: Unspent Departmental Annual Appropriations (‘Recoverable GST exclusive’)

Authority2013

$’0002012$’000

DEPARTMENTALAppropriation Act (No. 1) 2011-12 - 22,590Appropriation Act (No. 1) 2012-13 22,365 -Appropriation Act (No. 2) 2007-08 24 24Total 22,389 22,614

Table D: Special Appropriations ('Recoverable GST exclusive')Appropriation applied

Authority Type Purpose2013

$’0002012$’000

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(a).

- 18,467

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(b).

59,323 31,129

Total 59,323 49,596

Notes:(a) This special appropriation is administered by the APSC; however the Department of the House of Representatives spends money from the CRF for the purposes of the Act. Due to amendments in 2011 to the Remuneration Tribunal Act 1973, from 15 March 2012 payments are no longer made under this special appropriation.

(b) This special appropriation is administered by the APSC; however the Department of the House of Representatives, the Department of the Senate and the Attorney General’s Department spends money from the CRF for the purposes of the Act.

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Note 20: 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 Department of Finance and Deregulation provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations.

Note 20a: Departmental payments

During 2013 additional legal advice was received that indicated there could be breaches of section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. The APSC will review its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. The APSC has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to departmental payments. The APSC is not aware of any specific breaches of section 83 in respect of these items.

Note 20b: Administered payments

The possibility of this being an issue for the APSC’s administered payments was reported in the notes to the 2010-11 financial statements and the APSC undertook to investigate the issue during 2012. Payments are made by the drawing agencies from the special appropriations for the payment of salaries and allowances to Parliamentarians’ and Judicial Office Holders.

During 2012, the APSC requested each drawing agency to review their exposure to risks of not complying with statutory conditions on payments from appropriations. This involved:

identifying each special appropriation determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions

and assessing the extent to which existing payment systems and processes satisfy those conditions determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of

non-compliance, if any, in higher risk situations obtaining legal advice as appropriate to resolve questions of potential non-compliance and considering legislative or procedural changes to reduce the risk of non-compliance in the future to an

acceptably low level.

The APSC and drawing agencies identified that special appropriations containing statutory conditions for payment, comprised:

Remuneration Tribunal Act 1973 and Remuneration and Allowances Act 1990 (from 15 March 2012 no payments were made from this special

appropriation).

During 2012 this work was completed in respect of special appropriations with statutory conditions for payment, representing total expenditure of $59,323,000 in 2013 (2012: $49,596,000).The work conducted to date has identified:

a) One payment (2012: Three payments) was made without legal authority and are in contravention of section 83 of the Constitution. This occurred for payments reported under the Remuneration Tribunal Act 1973.

Of the total amount paid in contravention of section 83 identified in (a) above: amounts totalling $3,278 (2012 $3,605) were incorrectly paid and amounts totalling $3,278 (2012 $3,605) have been recovered or offset against a later payment.

In order to reduce the risks of non-compliance to an acceptably low level:a) changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.b) systems and procedural changes have been reviewed for the Remuneration Tribunal Act 1973.

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Table A – Summary of conditions, breaches and remedial actionAppropriations identified as subject to conditions

Expenditure in 2013

$000

Review complete?

Breaches identified to 30 June 2013 Potential breaches to date yet to be resolved

Remedial action taken or proposed

Special Appropriations

Yes/No Number Total$000

Incorrect $000

Recovered/offset As at 30 June 2013$000

Yes/No Indicative extent

Remuneration Tribunal Act 1973

59,323 Yes 1 3 3 3 No - Legislative change enacted on 28 May 2013.

Remuneration and Allowances Act 1990

- - - - - - No - As this appropriation is no longer utilised, no further action is required.

Appropriations identified as subject to conditions

Expenditure in 2012

$000

Review complete?

Breaches identified to 30 June 2012 Potential breaches to date yet to be resolved

Remedial action taken or proposed

Special Appropriations

Yes/No Number Total$000

Incorrect $000

Recovered/offset As at 30 June 2012$000

Yes/No Indicative extent

Remuneration Tribunal Act 1973

31,129 Yes 3 4 4 4 No - Legislative change planned.

Remuneration and Allowances Act 1990

18,467 Yes Nil - - - No - As this appropriation is no longer utilised, no further action is required.

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Note 21: Special Accounts

Other Trust Moneys Special Account (Departmental)

Appropriation: Financial Management and Accountability Act 1997; s21.

Establishing Instrument: Financial Management and Accountability Act 1997; s20.

Purpose: Expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

A determination issued by the Finance Minister on 30 May 2012 abolished this account on 20 June 2012.

For the period 1 July 2011 to 20 June 2012, the account had nil balances and there were no transactions debited or credited to it.

Note 22: Compensation and Debt Relief

2013$

2012$

Compensation and debt relief -Departmental

No ‘Act of Grace’ expenses were expended during the reporting period (2012: no expenses). - -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: no waivers). - -

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: no payments). - -

No ex-gratia payments were provided for during the reporting period (2012: no payments). - -

No payments were provided in special circumstances relating to APS employment under s73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: no payments). - -

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2013

$

2012

$

Compensation and debt relief – Administered

No ‘Act of Grace’ expenses were expended during the reporting period (2012: no expenses). - -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: no waivers). - -

No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: no payments). - -

No ex-gratia payments were provided for during the reporting period (2012: no payments). - -

No payments were provided in special circumstances relating to APS employment under s73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: no payments). - -

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Note 23: Reporting of Outcomes

Note 23a: Net cost of Outcome deliveryOutcome 12013

$’0002012$’000

DepartmentalExpenses (51,815) (56,666)Own-source income 29,042 30,108

AdministeredExpenses (59,323) (49,596)Own-source income - -

Net (cost) / contribution of outcome delivery (82,096) (76,154)

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

Note 23b: Major classes of Departmental expense, income, assets and liabilities by outcome

As the APSC only has one outcome, major classes of departmental assets and liabilities for Outcome 1 are as per the balance sheet and major classes of departmental expenses and income for Outcome 1 are as per the statement of comprehensive income.

Note 23c: Major classes of Administered expense, income, assets and liabilities by outcome

Administered expenses for Outcome 1 are as per the schedule of expenses administered on behalf of Government.

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Note 24: Net cash appropriation arrangements

2013$’000

2012$’000

Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations 1 1,165 (194)Plus: depreciation / amortisation expenses previously funded through revenue appropriation

(737) (777)

Total comprehensive income (loss) - as per the statement of comprehensive income

428 (971)

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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