Department of Justice
Annual Report
2012–13
Financial report
1
Table of Contents
Accountable Officer’s and Chief Finance and Accounting Officer’s Declaration4
INDEPENDENT AUDITOR'S REPORT .................................................................... 5
Comprehensive operating statement..................................................................... 7
Balance sheet .......................................................................................................... 8
Statement of changes in equity.............................................................................. 9
Cash flow statement ............................................................................................. 10
Notes to the financial statements ........................................................................ 12
Note 1. Summary of significant accounting policies ....................................... 12
(A) Statement of compliance ............................................................................. 12
(B) Basis of accounting preparation and measurement ..................................... 12
(C) Reporting entity ........................................................................................... 13
(D) Basis of consolidation ................................................................................. 14
(E) Scope and presentation of financial statements .......................................... 15
(F) Income from transactions ............................................................................ 16
(G) Expenses from transactions ........................................................................ 17
(H) Other economic flows included in net result ................................................ 19
(I) Administered income .................................................................................... 20
(J) Financial instruments ................................................................................... 20
(K) Financial assets .......................................................................................... 22
(L) Non-financial assets .................................................................................... 23
(M) Liabilities .................................................................................................... 25
(N) Leases ........................................................................................................ 27
(O) Equity ......................................................................................................... 28
(P) Commitments .............................................................................................. 28
(Q) Contingent assets and contingent liabilities................................................. 28
(R) Service concession arrangements (public private partnerships) .................. 28
(S) Accounting for the Goods and Services Tax (GST) ..................................... 28
(T) Events after the reporting period ................................................................. 29
(U) Correction of prior period error .................................................................... 29
(V) Australian Accounting Standards issued that are not yet effective ............... 30
Note 2. Departmental (controlled) outputs ....................................................... 32
Note 3. Administered (non-controlled) items ................................................... 38
Note 4. Income from transactions..................................................................... 40
Note 5. Expenses from transactions................................................................. 40
Note 6. Other economic flows included in net result ...................................... 42
Note 7. Restructuring of administrative arrangements ................................... 43
Note 8. Receivables ........................................................................................... 44
Note 9. Investments and other financial assets ............................................... 45
Note 10. Inventories ........................................................................................... 46
Note 11. Property, plant and equipment ........................................................... 46
Note 12. Intangible assets ................................................................................. 48
Note 13. Payables .............................................................................................. 49
Note 14. Borrowings .......................................................................................... 50
Note 15. Provisions ............................................................................................ 51
Note 16. Superannuation .........................................................................................................53
Note 17. Leases ............................................................................................................................53
2
Note 18. Commitments for expenditure ............................................................ 55
Note 19. Contingent assets and contingent liabilities ..................................... 57
Note 20. Financial instruments ......................................................................... 58
Note 21. Cash flow information ......................................................................... 66
Note 22. Physical asset revaluation surplus .................................................... 67
Note 23. Summary of compliance with annual parliamentary appropriations
and special appropriations................................................................................ 69
Note 24. Ex-gratia payments ............................................................................. 72
Note 25. Annotated income agreements .......................................................... 72
Note 26. Trust account balances ...................................................................... 73
Note 27. Responsible persons .......................................................................... 76
Note 28. Remuneration of executives and payments to other personnel ...... 78
Note 29. Remuneration of auditors ................................................................... 80
Note 30. Glossary of terms and style convention ............................................ 80
Disclosure index ................................................................................................... 85
3
Accountable Officer’s and Chief Finance and
Accounting Officer’s Declaration
The attached financial statements for the Department of Justice have been prepared in
accordance with Standing Direction 4.2 of the Financial Management Act 1994, applicable
Financial Reporting Directions, Australian Accounting Standards including Interpretations and
other mandatory professional reporting requirements.
We further state that, in our opinion, the information set out in the comprehensive operating
statement, balance sheet, statement of changes in equity, cash flow statement and notes
forming part of the financial statements, presents fairly the financial transactions during the
year ended 30 June 2013 and financial position of the department as at 30 June 2013.
At the time of signing, we are not aware of any circumstance which would render any
particulars included in the financial statements to be misleading or inaccurate.
We authorise the attached financial statements for issue on 12 September 2013.
Shaun Condron
Chief Finance and Accounting Officer
Department of Justice
Melbourne
12 September 2013
Greg Wilson
Secretary
Department of Justice
Melbourne
12 September 2013
4
INDEPENDENT AUDITOR'S REPORT
VAGO
Victorian Auditor-General’s Office
Level 24, 35 Collins Street
Melbourne VIC 3000
Telephone 61 38601 7000
Facsimile 61 38601 7010
Email commentsOaudit.vlc.gov.au
Website www.audit.vlc.gov.au
To the Secretary, Department of Justice
The Financial Report
The accompanying financial report for the year ended 30 June 2013 of the Department of
Justice which comprises the comprehensive operating statement, balance sheet, statement of
changes in equity, cash flow statement, notes comprising a summary of significant accounting
policies and other explanatory information, and the Accountable Officer's and Chief Finance
and Accounting Officer's declaration has been audited.
The Secretary's Responsibility for the Financial Report
The Secretary of the Department of Justice is responsible for the preparation and fair
presentation of the financial report in accordance with Australian Accounting Standards, and
the financial reporting requirements of the Financial Management Act 1994, and for such
internal control as the Secretary determines is necessary to enable the preparation and fair
presentation of the financial report that is free from material misstatement, whether due to
fraud or error.
Auditor's Responsibility
As required by the Audit Act 1994, my responsibility is to express an opinion on the financial
report based on the audit, which has been conducted in accordance with Australian Auditing
Standards. Those standards require compliance with relevant ethical requirements relating to
audit engagements and that the audit be planned and perlormed to obtain reasonable
assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The audit procedures selected depend on judgement,
including the assessment of the risks of material misstatement of the financial report, whether
due to fraud or error. In making those risk assessments, consideration is given to the internal
control relevant to the entity's preparation and fair presentation of the financial report in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the entity's internal control. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of accounting estimates made by the Secretary, as well as evaluating the
overall presentation of the financial report.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a
basis for my audit opinion.
Independence
The Auditor-General's independence is established by the Constitution Act 1975. The
AuditorGeneral is not subject to direction by any person about the way in which his powers
and responsibilities are to be exercised. In conducting the audit, the Auditor-General, his staff
and delegates complied with all applicable independence requirements of the Australian
accounting profession.
Opinion
5
In my opinion, the financia l report presents fairly, in all material respects, the financial
position of the Department of Justice as at 30 June 2013 and of its financial performance and
its cash flows for the year then ended in accordance with applicable Australian Accounting
Standards, and the financial reporting requirements of the Financial Management Act 1994.
Matters Relating to the Electronic Publication of the Audited Financial Report
This auditor's report relates to the financial report of the Department of Justice for the year
ended 30 June 2013 included both in the Department of Justice's annual report and on the
website. The Secretary is responsible for the integrity of the Department of Justice's website. I
have not been engaged to report on the integrity of the Department of Justice's website. The
auditor's report refers only to the subject matter described above. It does not provide an
opinion on any other information which may have been hyperlinked to/from these statements.
If users of the financial report are concerned with the inherent risks arising from publication on
a website, they are advised to refer to the hard copy of the audited financial report to confirm
the information contained in the website version of the financial report.
MELBOURNE
18 September 2013
John Doyle
Auditor-General
6
Comprehensive operating statement
for the financial year ended 30 June 2013
Note
2013
$’000
2012
$’000
Output appropriations
23(a)
4,156,875
3,976,514
Special appropriations
23(b)
137,759
115,101
Interest
4(a)
41,912
60,837
Grants(i)
4(b)
7,597
56,049
Other income
4(c)
56,561
22,259
4,400,704
4,230,760
Income from transactions
Total income from transactions
Expenses from transactions
Employee expenses(i)
5(a)
(748,451)
(712,804)
Depreciation and amortisation
5(b)
(99,381)
(82,835)
Interest expense
5(c)
(33,439)
(35,252)
Grants and other transfers(ii)
5(d)
(2,711,992)
(2,612,140)
(121,288)
(110,313)
(644,971)
(637,127)
(4,359,522)
(4,190,471)
41,182
40,289
Capital asset charge
Supplies and services(ii)
5(e)
Total expenses from transactions
Net result from transactions (net operating balance)
Other economic flows included in net result
Net gain/(loss) on non-financial assets(iii)
6(a)
679
1,435
Net gain/(loss) on financial instruments(iv)
6(b)
(2,322)
(31)
Other gains/(losses) from other economic flows
6(c)
3,022
(4,365)
1,379
(2,961)
42,561
37,328
(20,745)
(4,829)
(20,745)
(4,829)
21,816
32,499
Total other economic flows included in net result
Net result
Other economic flows – other comprehensive income
Items that will not be reclassified to net result
Changes in physical asset revaluation surplus
Total other economic flows – other comprehensive
income
Comprehensive result
22
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) The 2011–12 comparative has been adjusted for the reclassification of $7.6 million from
supplies and services expense to grants expense.
(iii) Includes realised gains/(losses) from impairments and disposal of physical assets.
(iv) Includes bad and doubtful debts from other economic flows, and realised and unrealised
gains/(losses) from financial instruments.
The above comprehensive operating statement should be read in conjunction with the
accompanying notes included on pages 7 to 79.
7
Balance sheet
as at 30 June 2013
Note
2013
$’000
2012
$’000
21(a)
233,940
455,942
Receivables
8
684,974
634,971
Investments and other financial assets
9
226,702
858
1,145,616
1,091,771
5,423
5,768
6,053
6,195
1,300
703
Assets
Financial assets
Cash and deposits(i)
Total financial assets
Non-financial assets
Prepayments
Inventories
10
Assets classified as held for sale
Property, plant and equipment
11
2,548,596
2,253,550
Intangible assets
12
102,529
91,396
Total non-financial assets
2,663,901
2,357,612
Total assets
3,809,517
3,449,383
Liabilities
Payables
13
782,914
505,644
Borrowings
14
340,018
361,582
Provisions
15
190,774
185,889
Total liabilities
1,313,706
1,053,115
Net assets
2,495,811
2,396,268
624,119
581,558
959,233
979,978
912,459
834,732
2,495,811
2,396,268
Equity(ii)
Accumulated surplus/(deficit)(i)
Physical asset revaluation surplus
22
Contributed capital
Net worth
Commitments for expenditure
18
Contingent assets and contingent liabilities
19
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) Refer to the statement of changes in equity for movements in the equity amounts.
The above balance sheet should be read in conjunction with the accompanying notes
included on pages 7 to 79.
8
Statement of changes in equity
for the financial year ended 30 June 2013
($’000)
Note
Balance at 1 July 2011
Physical Accumulated Contributed
asset
surplus/
capital
revaluation
(deficit)(i)
surplus
Total
984,807
544,230
758,022
2,287,059
0
37,328
0
37,328
(4,829)
0
0
(4,829)
Transactions with the state in its capacity as
owners
0
0
148,412
148,412
Capital contribution passed onto agencies within
the Justice Portfolio
0
0
(21,368)
(21,368)
Equity transfer within government
0
0
(50,300)
(50,300)
Administrative restructure – net assets
transferred
0
0
(34)
(34)
979,978
581,558
834,732
2,396,268
0
42,561
0
42,561
(20,745)
0
0
(20,745)
Transactions with the state in its capacity as
owners
0
0
119,264
119,264
Capital contribution passed onto agencies within
the Justice Portfolio
0
0
(14,925)
(14,925)
Equity transfer within government
0
0
(27,234)
(27,234)
0
0
622
622
959,233
624,119
912,459
2,495,811
Net result for the year
Other comprehensive income for the year
22
Balance at 30 June 2012
Net result for the year
Other comprehensive income for the year
Administrative restructure – net assets
received
Balance at 30 June 2013
7
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
The above statement of changes in equity should be read in conjunction with the
accompanying notes included on pages 7 to 79.
9
Cash flow statement
for the financial year ended 30 June 2013
Note
2013
$’000
2012
$’000
4,272,164
4,075,503
7,597
56,049
Goods and services tax recovered from the
ATO(ii)
87,875
96,344
Interest received
43,528
62,685
Other receipts
30,068
45,722
Total receipts
4,441,232
4,336,303
Payments to suppliers and employees(i)
(1,489,008)
(1,466,840)
Payments of grants and other transfers
(2,711,989)
(2,604,516)
(121,288)
(110,313)
(33,439)
(35,252)
(4,355,724)
(4,216,921)
85,508
119,382
(228,304)
(858)
0
162,912
(141,686)
(115,905)
6,317
6,552
(363,673)
52,701
Owner contributions by State Government
119,264
148,412
Capital contribution passed on to agencies with
government
(14,925)
(21,368)
Equity transfers within government(iii)
(26,612)
(50,334)
Repayment of borrowings and finance leases
(21,564)
(35,494)
56,163
41,216
(222,002)
213,299
Cash flows from operating activities
Receipts
Receipts from government
Receipts from other entities(i)
Payments
Capital asset charge payments
Interest and other costs of finance paid
Total payments
Net cash flows from/(used in) operating
activities
21(b)
Cash flows from investing activities
Payments for investments
Proceeds from sale of investments
Purchases of non-financial assets(iii)
Sales of non-financial assets
Net cash flows from/(used in) investing
activities
Cash flows from financing activities
Net cash flows from/(used in) financing
activities
Net increase/ (decrease) in cash and cash
10
Note
2013
$’000
2012
$’000
Cash and cash equivalents at beginning of
financial year(i)
455,942
242,643
Cash and cash equivalents at end of financial 21(a)
year
233,940
455,942
equivalents
Reconciliation of non-cash transactions are disclosed in note 21(b)
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) GST received from ATO is presented on a net basis.
(iii) The 2011–12 comparative has been adjusted for the reclassification of payments from
investing activities to financing activities.
The above cash flow statement should be read in conjunction with the accompanying notes
included on pages 7 to 79.
11
Notes to the financial statements
for the financial year ended 30 June 2013
Note 1. Summary of significant accounting policies
These annual financial statements represent the audited general purpose financial
statements for the Department of Justice (the department) for the period ending 30 June
2013. The purpose of the report is to provide users with information about the department’s
stewardship of resources entrusted to it.
(A) Statement of compliance
These general purpose financial statements have been prepared in accordance with the
Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards
(AAS), including Interpretations, issued by the Australian Accounting Standards Board
(AASB). In particular, they are presented in a manner consistent with the requirements of the
AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been
applied.
Accounting policies are selected and applied in a manner which ensures that the resulting
financial information satisfies the concepts of relevance and reliability, thereby ensuring that
the substance of the underlying transactions or other events is reported.
To gain a better understanding of the terminology used in this report, a glossary of terms and
style conventions can be found in note 30.
These annual financial statements were authorised for issue by the Secretary of the
Department of Justice on 12 September 2013.
(B) Basis of accounting preparation and measurement
The accrual basis of accounting has been applied in the preparation of these financial
statements whereby assets, liabilities, equity, income and expenses are recognised in the
reporting period to which they relate, regardless of when cash is received or paid.
Judgements, estimates and assumptions are required to be made about the carrying values
of assets and liabilities that are not readily apparent from other sources. The estimates and
associated assumptions are based on professional judgements derived from historical
experience and various other factors that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
Revisions to accounting estimates are recognised in the period in which the estimate is
revised and also in future periods that are affected by the revision. Judgements and
assumptions made by management in the application of AASs that have significant effects on
the financial statements and estimates relate to:
 the fair value of land, buildings, plant and equipment (refer to note 1(L))
 superannuation expense (refer to note 1(G))
 assumptions for employee benefit provisions based on likely tenure of existing staff,
patterns of leave claims, future salary movements and future discount rates (refer to note
1(M))
 assumptions for other provisions based on updated mortality and financial (discount rate
and indexation) assumptions (refer to note 1(M)).
These financial statements are presented in Australian dollars, and prepared in accordance
with the historical cost convention except for:
12
 Non-financial physical assets which, subsequent to acquisition, are measured at a
revalued amount being their fair value at the date of the revaluation less any subsequent
accumulated depreciation and subsequent impairment losses. Revaluations are made with
sufficient regularity to ensure that the carrying amounts do not materially differ from their
fair value.
 Managed investment schemes after initial recognition, which are measured at fair value
with changes reflected in the comprehensive operating statement (fair value through profit
or loss).
(C) Reporting entity
The financial statements cover the department as an individual reporting entity. The
department is a government department of the State of Victoria, established pursuant to an
order made by the Premier under the Administrative Arrangements Act 1983.
The department is an administrative agency acting on behalf of the Crown.
The financial statements include all the controlled activities of the department.
A description of departmental outputs undertaken during the year is included in note 2.
The office of the Special Investigation Monitor has been consolidated into the department’s
financial statements pursuant to a determination, dated 12 June 2008, made by the Minister
for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18). The
office of the Special Investigation Monitor ceased operations on the 10 February 2013.
The office of the Road Safety Camera Commissioner has been consolidated into the
department’s financial statements pursuant to a determination, dated 16 July 2012, made by
the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act
No.18).
The office of the Fire Services Levy Monitor has been consolidated into the department’s
financial statements pursuant to a determination, dated 23 May 2013, made by the Minister
for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act No.18).
The office of the Freedom of Information Commissioner has been consolidated into the
department’s financial statements pursuant to a determination, dated 10 July 2013, made by
the Minister for Finance under section 53(1)(b) of the Financial Management Act 1994 (Act
No.18).
A number of entities within the Justice Portfolio, which report separately, receive regular
grants or transfer payments from the department (refer note 5). These are:
Country Fire Authority
Emergency Services Telecommunications Authority
Independent Broad-based Anti-corruption Commission (commenced from 1 July 2012)
Judicial College of Victoria
Metropolitan Fire and Emergency Services Board
Office of Police Integrity (ceased from 9 February 2013)
Office of Public Prosecutions
Office of the Victorian Privacy Commissioner
Sentencing Advisory Council
Victorian Inspectorate (commenced from 1 July 2012)
Victoria Legal Aid
Victoria Police
Victorian Commission for Gambling and Liquor Regulation
Victorian Electoral Commission
13
Victorian Equal Opportunity and Human Rights Commission
Victorian Institute of Forensic Medicine
Victorian Responsible Gambling Foundation (commenced from 1 July 2012)
Victoria State Emergency Service
The following organisations also form part of the Justice Portfolio and they report separately
but do not receive regular grants or transfer payments from the department:
Greyhound Racing Victoria
Harness Racing Victoria
HRV Management Limited
Melton Entertainment Trust
Legal Practitioners Liability Committee
Legal Services Board
Legal Services Commissioner
Professional Standards Council
Residential Tenancies Bond Authority
Victorian Law Reform Commission
A description of the nature of the department’s operations and its principal activities is
included in the report of operations which does not form part of these financial statements.
Objectives and funding
The department has seven key objectives:
 lead whole-of-government policing and community safety
 manage correctional facilities and programs to rehabilitate prisoners and offenders and
increase the safety of individuals and families
 lead whole-of-government emergency management to minimise adverse effects to the
community
 provide excellence in service delivery
 ensure responsible regulation
 support the justice system
 ensure the integrity of the Public Sector.
The department is predominantly funded by accrual based parliamentary appropriations for
the provision of outputs.
Outputs of the department
Information about the department’s output activities, and the expenses, income, assets and
liabilities which are reliably attributable to those output activities, is set out in the output
activities schedule (note 2). Information about expenses, income, assets and liabilities
administered by the department are given in the schedule of administered income and
expenses and the schedule of administered assets and liabilities (note 3).
(D) Basis of consolidation
In accordance with AASB 127 Consolidated and Separate Financial Statements:
 The financial statements of the department incorporate assets and liabilities of all reporting
entities controlled by the department as at 30 June 2013, and their income and expenses
for that part of the reporting period in which control existed.
14
 The financial statements exclude bodies within the department’s portfolio that are not
controlled by the department and therefore are not consolidated. Bodies and activities that
are administered (see explanation below under administered items) are also not controlled
and not consolidated.
Where control of an entity is obtained during the financial period, its results are included in the
comprehensive operating statement from the date on which control commenced. Where
control ceases during a financial period, the entity’s results are included for that part of the
period in which control existed. Where dissimilar accounting policies are adopted by entities
and their effect is considered material, adjustments are made to ensure consistent policies
are adopted in these financial statements.
In the process of preparing financial statements for the department, all material transactions
and balances between consolidated entities are eliminated.
Consistent with the requirements of AASB 1004 Contributions, contributions by owners (that
is, contributed capital and its repayment) are treated as equity transactions and, therefore, do
not form part of the income and expenses of the department.
Administered items
Certain resources are administered by the department on behalf of the state. While the
department is accountable for transactions involving administered items, it does not have the
discretion to deploy the resources for its own benefit or the achievement of the department’s
objectives. Accordingly, transactions and balances relating to administered items are not
recognised as departmental income, expenses, assets or liabilities within the body of the
financial statements.
Administered income includes taxes, fees and fines. Administered assets include government
income earned but yet to be collected. Administered liabilities include government expenses
incurred but yet to be paid.
Except as otherwise disclosed, administered resources are accounted for on an accrual basis
using the same accounting policies adopted for recognition of the departmental items in the
financial statements. Both controlled and administered items of the department are
consolidated into the financial statements of the state.
Disclosures related to administered items can be found in note 3.
Funds held in trust
Other trust activities on behalf of parties external to the Victorian Government
The department has responsibility for transactions and balances relating to trust funds on
behalf of third parties external to the Victorian Government. Income, expenses, assets and
liabilities managed on behalf of third parties are not recognised in these financial statements
as they are managed on a fiduciary and custodial basis, and therefore are not controlled by
the department or the Victorian Government. These transactions and balances are reported
in note 26.
Funds under management
Funds under management do not form part of the assets of the department. These funds are
administered by the department on behalf of various beneficiaries. Funds may be received in
the form of bail monies and payments by the courts and Victims of Crime Assistance Tribunal
(VOCAT). These receipts, and any related expenditure, are excluded from the income,
expenditure and assets of the department, which is acting as Trustee. These funds under
management are disclosed in note 26(b) Third party funds under management.
(E) Scope and presentation of financial statements
Comprehensive operating statement
Income and expenses in the comprehensive operating statement are classified according to
whether or not they arise from ‘transactions’ or ‘other economic flows’. This classification is
consistent with the whole-of-government reporting format and is allowed under AASB 101
Presentation of Financial Statements.
15
‘Transactions’ and ‘other economic flows’ are defined by the Australian System of
Government Finance Statistics: Concepts, Sources and Methods 2005 and Amendments to
Australian System of Government Finance Statistics 2005 (ABS Catalogue No. 5514.0) (see
note 30).
‘Transactions’ are those economic flows that are considered to arise as a result of policy
decisions, usually interactions between two entities by mutual agreement. Transactions also
include flows within an entity, such as depreciation where the owner is simultaneously acting
as the owner of the depreciating asset and as the consumer of the service provided by the
asset. Taxation is regarded as mutually agreed interactions between the government and
taxpayers. Transactions can be in kind (e.g. assets provided/given free of charge or for
nominal consideration) or where the financial consideration is cash.
‘Other economic flows’ are changes arising from market re-measurements. They include
gains and losses from disposals; revaluations and impairments of non-financial physical and
intangible assets; and fair value changes of financial instruments.
The net result is equivalent to profit or loss derived in accordance with Australian Accounting
Standards (AAS).
Balance sheet
Assets and liabilities are presented in liquidity order, with assets aggregated into financial
assets and non-financial assets.
Current assets and liabilities, and non-current assets and liabilities (those expected to be
recovered or settled beyond 12 months) are disclosed in the notes, where relevant.
Statement of changes in equity
The statement of changes in equity presents reconciliations of non-owner and owner changes
in equity from opening balance at the beginning of the reporting period to the closing balance
at the end of the reporting period. It also shows separately changes due to amounts
recognised in the ‘comprehensive result’ and amounts recognised in ‘other economic flows –
other movements in equity’ related to ‘transactions with owner in its capacity as owner’.
Cash flow statement
Cash flows are classified according to whether they arise from operating, investing, or
financing activities. This classification is consistent with requirements under AASB 107
Statement of Cash Flows.
For cash flow statement presentation purposes, cash and cash equivalents include bank
overdrafts, which are included as borrowings on the balance sheet.
Rounding
Amounts in the financial statements (including the notes) have been rounded to the nearest
thousand dollars, unless otherwise stated. Figures in the financial statements may not equate
due to rounding.
(F) Income from transactions
Income is recognised to the extent that it is probable that the economic benefits will flow to
the entity and the income can be reliably measured at fair value.
Appropriation income
Appropriated income becomes controlled and is recognised by the department when it is
appropriated from the Consolidated Fund by the Victorian Parliament and applied to the
purposes defined under the relevant appropriations act. Additionally, the department is
permitted under section 29 of the Financial Management Act 1994 to have certain income
annotated to the annual appropriation. The income which forms part of a section 29
agreement is recognised by the department and the receipts paid into the Consolidated Fund
as an administered item. At the point of income recognition, section 29 provides for an
equivalent amount to be added to the annual appropriation. Examples of receipts which can
form part of a section 29 agreement are Commonwealth specific purpose grants, the
proceeds from the sale of assets, and income from the sale of products and services.
16
Where applicable, amounts disclosed as income are net of returns, allowances, duties and
taxes. All amounts of income over which the department does not have control are disclosed
as administered income in the schedule of administered income and expenses (see note 3).
Income is recognised for each of the department’s major activities as follows:
Output appropriations
Income from the outputs the department provides to government is recognised when those
outputs have been delivered and the relevant Minister has certified delivery of those outputs
in accordance with specified performance criteria.
Special appropriations
Special appropriation revenue is recognised on a cash basis when the amount appropriated
for a specific purpose is received by the department. Refer to note 23(b) for a listing of special
appropriation funding received by the department and an outline of their specific purposes.
Interest
Interest income includes interest received on bank term deposits and other investments.
Interest income is recognised using the effective interest method which allocates the interest
over the relevant period.
Net realised and unrealised gains and losses on the revaluation of investments do not form
part of income from transactions, but are reported either as part of income from other
economic flows in the net result or as unrealised gains and losses taken directly to equity,
forming part of the total change in net worth in the comprehensive result.
Grants
Income from grants (other than contribution by owners) is recognised when the department
obtains control over the contribution.
Where such grants are payable into the Consolidated Fund, they are reported as
administered income (refer to note 1(D) and (I)). For reciprocal grants (i.e. equal value is
given back by the department to the provider), the department is deemed to have assumed
control when the department has satisfied its performance obligations under the terms of the
grant. For non-reciprocal grants, the department is deemed to have assumed control when
the grant is receivable or received. Conditional grants may be reciprocal or non-reciprocal
depending on the terms of the grant.
Other income
Other income includes income from fines and regulatory fees, dividends from investments,
and fair value of assets received free of charge or for nominal consideration.
Dividends from investments
Dividend income is recognised when the right to receive payment is established.
Fair value of assets received free of charge or for nominal consideration
Contributions of resources received free of charge or for nominal consideration are
recognised at their fair value when control is obtained over them, irrespective of whether
these contributions are subject to restrictions or conditions over their use.
(G) Expenses from transactions
Expenses from transactions are recognised as they are incurred, and reported in the financial
year to which they relate.
Employee expenses
These expenses include all costs related to employment including wages and salaries,
superannuation, fringe benefits tax, leave entitlements, redundancy payments and
WorkCover premiums.
Superannuation
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The amount recognised in the comprehensive operating statement is the employer
contributions for members of both defined benefit and defined contribution superannuation
plans that are paid or payable during the reporting period.
The Department of Treasury and Finance (DTF) in their Annual Financial Statements,
recognises on behalf of the State as the sponsoring employer, the net defined benefit cost
related to the members of these plans. Refer to DTF’s Annual Financial Statements for more
detailed disclosures in relation to these plans.
Depreciation and amortisation
All buildings, plant and equipment and other non-financial physical assets (excluding items
under operating leases and assets held for sale) that have finite useful lives are depreciated.
Depreciation is generally calculated on a straight-line basis, at rates that allocate the asset’s
value, less any estimated residual value, over its estimated useful life. Refer to note 1(L) for
the depreciation policy for leasehold improvements.
The estimated useful lives, residual values and depreciation method are reviewed at the end
of each annual reporting period, and adjustments made where appropriate.
2013
2012
Buildings (including heritage assets)
2 to 100 years
2 to 100 years
Leasehold improvements
2 to 12 years
2 to 10 years
Plant and equipment
3 to 15 years
3 to 15 years
Intangible assets
4 to 7 years
4 to 7 years
Land and core cultural assets, which are considered to have an indefinite life, are not
depreciated. Depreciation is not recognised in respect of these assets as their service
potential has not, in any material sense, been consumed during the reporting period.
Intangible produced assets with finite useful lives are amortised as an expense from
transactions on a systematic (typically straight-line) basis over the asset’s useful life.
Amortisation begins when the asset is available for use, that is, when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management.
The amortisation period and the amortisation method for an intangible asset with a finite
useful life are reviewed at least at the end of each annual reporting period.
Interest expense
Interest expense is recognised in the period in which it is incurred. Refer to Glossary of terms
and style conventions in note 30 for an explanation of interest expense items.
Grants and other transfers
Grants and other transfers to third parties (other than contributions to owners) are recognised
as an expense in the reporting period in which they are paid or payable. They include
transactions such as: grants, personal benefit payments made in cash to individuals, other
transfer payments made to state owned agencies, local government, and community groups.
Refer to Glossary of terms and style conventions in note 30 for an explanation of grants and
other transfers.
Capital asset charge
The capital asset charge is calculated on the budgeted carrying amount of applicable nonfinancial physical assets (excluding heritage assets and leased motor vehicles).
Supplies and services
Supplies and services costs are recognised as an expense in the reporting period in which
they are incurred. The carrying amounts of any inventories held for distribution are expensed
when distributed.
Bad and doubtful debts
Refer to note 1(K) Impairment of financial assets.
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Fair value of assets and services provided free of charge or for nominal consideration
Contributions of resources provided free of charge or for nominal consideration are
recognised at their fair value when the transferee obtains control over them, irrespective of
whether restrictions or conditions are imposed over the use of the contributions, unless
received from another government department or agency as a consequence of a restructuring
of administrative arrangements. In the latter case, such a transfer will be recognised at its
carrying value.
Contributions in the form of services are only recognised when a fair value can be reliably
determined and the services would have been purchased if not donated.
The department provides resources and services free of charge to a number of statutory
offices and bodies within the Justice Portfolio. These contributions are not recognised in the
financial statements as their fair values can not be reliably determined and are considered
immaterial. Examples of the resources and services that may be provided include the use of
the department’s financial systems such as Oracle Financials, Business Objects Advisor and
payroll systems. Services that may be provided include cash management, accounts
receivable, payroll, general ledger management and in some cases the provision of IT
networks.
Borrowing costs of qualifying assets
In accordance with the paragraphs of AASB 123 Borrowing Costs applicable to not-for-profit
public sector entities, the department continues to recognise borrowing costs immediately as
an expense, to the extent that they are directly attributable to the acquisition, construction or
production of a qualifying asset.
(H) Other economic flows included in net result
Other economic flows measure the change in volume or value of assets or liabilities that do
not result from transactions.
Net gain/(loss) on non-financial assets
Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains
and losses as follows:
Revaluation gains/(losses) of non-financial physical assets
Refer to note 1(L) Revaluations of non-financial physical assets.
Disposal of non-financial assets
Any gain or loss on the disposal of non-financial assets is recognised at the date of disposal
and is determined after deducting from the proceeds the carrying value of the asset at that
time.
Impairment of non-financial assets
Intangible assets with indefinite useful lives (and intangible assets not yet available for use)
are tested annually for impairment (as described below) and whenever there is an indication
that the asset may be impaired.
All other assets are assessed annually for indications of impairment, except for non-financial
physical assets held for sale.
If there is an indication of impairment, the assets concerned are tested as to whether their
carrying value exceeds their possible recoverable amount. Where an asset’s carrying value
exceeds its recoverable amount, the difference is written off as an other economic flow,
except to the extent that the write-down can be debited to an asset revaluation surplus
amount applicable to that class of asset.
If there is an indication that there has been a change in the estimate of an asset’s recoverable
amount since the last impairment loss was recognised, the carrying amount shall be
increased to its recoverable amount. This reversal of the impairment loss occurs only to the
extent that the asset’s carrying amount does not exceed the carrying amount that would have
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been determined, net of depreciation or amortisation, if no impairment loss had been
recognised in prior years.
It is deemed that, in the event of the loss or destruction of an asset, the future economic
benefits arising from the use of the asset will be replaced unless a specific decision to the
contrary has been made. The recoverable amount for most assets is measured at the higher
of depreciated replacement cost and fair value less costs to sell. Recoverable amount for
assets held primarily to generate net cash inflows is measured at the higher of the present
value of future cash flows expected to be obtained from the asset and fair value less costs to
sell.
Refer to note 1(L) in relation to the recognition and measurement of non-financial assets.
Net gain/(loss) on financial instruments
Net gain/(loss) on financial instruments includes:
 realised and unrealised gains and losses from revaluations of financial instruments at fair
value
 impairment and reversal of impairment for financial instruments at amortised cost (refer to
note 1(J))
 disposals of financial assets.
Revaluations of financial instruments at fair value
Refer to note 1(J) Financial Instruments.
Other gains/(losses) from other economic flows
Other gains/(losses) from other economic flows include the gains or losses from:
 the revaluation of the present value of the long service leave liability due to changes in the
bond interest rates
 transfer of amounts from the reserves and/or accumulated surplus to net result due to
disposal or derecognition or reclassification.
(I) Administered income
Taxes, fines and regulatory fees
The department does not gain control over assets arising from taxes, fines and regulatory
fees, consequently no income is recognised in the department’s financial statements.
Administered income is mainly represented by taxation and fees for gaming, racing and
lotteries collected on behalf of the state by the Victorian Commission for Gambling and Liquor
Regulation and fine revenue recognised upon the issue of infringement notices. These fines
are managed by the Infringement Management and Enforcement Services unit of the
department. The department collects these amounts on behalf of the Crown. Accordingly, the
amounts are disclosed as income in the schedule of Administered Items (see note 3).
Commonwealth grants
The department’s administered grants mainly comprise of funds provided by the
Commonwealth to assist the State Government in meeting general or specific service delivery
obligations, primarily for the purpose of aiding in the financing of the operations of the
recipient, capital purposes and/or for on passing to other recipients. The department also
receives grants for on passing from other jurisdictions. The department does not have control
over these grants, and the income is not recognised in the department’s financial statements.
Administered grants are disclosed in the schedule of Administered Items in note 3.
(J) Financial instruments
Financial instruments arise out of contractual agreements that give rise to a financial asset of
one entity and a financial liability or equity instrument of another entity. Due to the nature of
the department’s activities, certain financial assets and financial liabilities arise under statute
rather than a contract. Such financial assets and financial liabilities do not meet the definition
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of financial instruments in AASB 132 Financial Instruments: Presentation. For example,
statutory receivables arising from taxes, fines and penalties do not meet the definition of
financial instruments as they do not arise under contract. However, guarantees issued by the
Treasurer on behalf of the department are financial instruments because, although authorised
under statute, the terms and conditions for each financial guarantee may vary and are subject
to an agreement.
Where relevant, for note disclosure purposes, a distinction is made between those financial
assets and financial liabilities that meet the definition of financial instruments in accordance
with AASB 132 and those that do not.
The following refers to financial instruments unless otherwise stated.
Categories of non-derivative financial instruments
Loans and receivables
Loans and receivables are financial instrument assets with fixed and determinable payments
that are not quoted on an active market. These assets are initially recognised at fair value
plus any directly attributable transaction costs. Subsequent to initial measurement, loans and
receivables are measured at amortised cost using the effective interest method, less any
impairment.
Loans and receivables category includes cash and deposits (refer to note 1(K)), term deposits
with maturity greater than three months, trade receivables and loans, but not statutory
receivables.
Financial assets at fair value through profit or loss
Financial assets are categorised as fair value through profit or loss at trade date if they are
classified as held for trading or designated as such upon initial recognition. Financial
instrument assets are designated at fair value through profit or loss on the basis that the
financial assets form part of a group of financial assets that are managed by the entity
concerned based on their fair values, and have their performance evaluated in accordance
with documented risk management and investment strategies.
Financial instruments at fair value through profit or loss are initially measured at fair value and
attributable transaction costs are expensed as incurred. Subsequently, any changes in fair
value are recognised in the net result as other economic flows. Any dividend or interest on a
financial asset is recognised in the net result from transactions.
Financial liabilities at amortised cost
Financial instrument liabilities are initially recognised on the date they are originated. They
are initially measured at fair value plus any directly attributable transaction costs. Subsequent
to initial recognition, these financial instruments are measured at amortised cost with any
difference between the initial recognised amount and the redemption value being recognised
in profit and loss over the period of the interest-bearing liability, using the effective interest
rate method.
Financial instrument liabilities measured at amortised cost include all of the department’s
contractual payables, deposits held and advances received, and interest-bearing
arrangements other than those designated at fair value through profit or loss.
Offsetting financial instruments
Financial instrument assets and liabilities are offset and the net amount presented in the
balance sheet when, and only when, the department concerned has a legal right to offset the
amounts and intend either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Reclassification of financial instruments
Subsequent to initial recognition and under rare circumstances, non-derivative financial
instrument assets that have not been designated at fair value through profit or loss upon
recognition, may be reclassified out of the fair value through profit or loss category, if they are
no longer held for the purpose of selling or repurchasing in the near term.
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Financial instrument assets that meet the definition of loans and receivables may be
reclassified out of the fair value through profit or loss category into the loans and receivables
category, where they would have met the definition of loans and receivables had they not
been required to be classified as fair value through profit or loss. In these cases, the financial
instrument assets may be reclassified out of the fair value through profit or loss category, if
there is the intention and ability to hold them for the foreseeable future or until maturity.
(K) Financial assets
Cash and deposits
Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank,
deposits at call and highly liquid investments with an original maturity of three months or less,
which are held for the purpose of meeting short term cash commitments rather than for
investment purposes, and which are readily convertible to known amounts of cash and are
subject to insignificant risk of changes in value.
Receivables
Receivables consist of:
 contractual receivables, such as debtors in relation to goods and services and accrued
investment income
 statutory receivables, such as amounts owing from the Victorian Government and GST
input tax credits recoverable.
Contractual receivables are classified as financial instruments and categorised as loans and
receivables (refer to note 1(J) for recognition and measurement). Statutory receivables, are
recognised and measured similarly to contractual receivables (except for impairment), but are
not classified as financial instruments because they do not arise from a contract.
Receivables are subject to impairment testing as described below. A provision for doubtful
receivables is recognised when there is objective evidence that the debts may not be
collected, and bad debts are written off when identified.
Investments and other financial assets
Financial assets at fair value through profit or loss
The department classified its managed investment schemes at fair value through profit or loss
on initial recognition. These financial assets are managed and their performance is evaluated
on a fair value basis, in accordance with documented risk management or investment
strategy, and information is provided internally to key management personnel.
Financial assets held at fair value through profit or loss are measured initially at fair value
excluding any transaction costs that are directly attributable to the acquisition or issue of the
financial asset. Subsequent to initial recognition, all instruments held at fair value through
profit or loss are measured at fair value with any resultant gain/(loss) recognised in the net
result as other economic flows.
Loans and receivables
The department classifies its investments in term deposits with a maturity of greater than
three months as loans and receivables.
Any interest earned on the financial asset is recognised in the comprehensive operating
statement as an income transaction.
Derecognition of financial assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is derecognised when:
 the rights to receive cash flows from the asset have expired; or
 the department retains the right to receive cash flows from the asset, but has assumed an
obligation to pay them in full without material delay to a third party under a ‘pass through’
arrangement; or
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 the department has transferred its rights to receive cash flows from the asset and either:
 has transferred substantially all the risks and rewards of the asset, or
 has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset.
Where the department has neither transferred nor retained substantially all the risks and
rewards or transferred control, the asset is recognised to the extent of the department’s
continuing involvement in the asset.
Impairment of financial assets
At the end of each reporting period, the department assesses whether there is objective
evidence that a financial asset or group of financial assets is impaired. All financial instrument
assets, except those measured at fair value through profit or loss, are subject to annual
review for impairment.
Receivables are assessed for bad and doubtful debts on a regular basis. Those bad debts
considered as written off by mutual consent are classified as a transaction expense. Bad
debts not written off by mutual consent and allowance for doubtful receivables are classified
as other economic flows in the net result.
The amount of the allowance is the difference between the financial asset’s carrying amount
and the present value of estimated future cash flows, discounted at the effective interest rate.
In assessing impairment of statutory (non-contractual) financial assets, which are not financial
instruments, professional judgement is applied in assessing materiality using estimates,
averages and other computational methods in accordance with AASB 136 Impairment of
Assets.
(L) Non-financial assets
Prepayments
Prepayments represent payments in advance of receipt of goods or services or that part of
expenditure made in one accounting period covering a term extending beyond that period.
Inventories
Inventories include goods and other property held either for sale, or for distribution at zero or
nominal cost, or for consumption in the ordinary course of business operations.
Inventories held for distribution are measured at cost, adjusted for any loss of service
potential. All other inventories are measured at the lower of cost and net realisable value.
Where inventories are acquired for no cost or nominal consideration, they are measured at
current replacement cost at the date of acquisition.
Cost, includes an appropriate portion of fixed and variable overhead expenses and measured
on the basis of a weighted average cost.
Bases used in assessing loss of service potential for inventories held for distribution include
current replacement cost and technical or functional obsolescence. Technical obsolescence
occurs when an item still functions for some or all of the tasks it was originally acquired to do,
but no longer matches existing technologies. Functional obsolescence occurs when an item
no longer functions the way it did when it was first acquired.
Non-financial physical assets classified as held for sale
Non-financial physical assets (including disposal group assets) are treated as current and
classified as held for sale if their carrying amount will be recovered through a sale transaction
rather than through continuing use.
This condition is regarded as met only when:
 the asset is available for immediate use in the current condition
 the sale is highly probable and the asset’s sale is expected to be completed within 12
months from the date of classification.
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These non-financial physical assets, related liabilities and financial assets are measured at
the lower of the carrying amount and fair value less costs to sell, and are not subject to
depreciation or amortisation.
Property, plant and equipment
All non-financial physical assets are measured initially at cost and subsequently revalued at
fair value less accumulated depreciation and impairment.
Where an asset is acquired for no or nominal cost, the cost is its fair value at the date of
acquisition.
Assets transferred as part of a machinery of government change are transferred at their
carrying amount.
The initial cost for non-financial physical assets under a finance lease (refer to note 1(N)) is
measured at amounts equal to the fair value of the lease asset or, if lower, the present value
of the minimum lease payments, each determined at the inception of the lease.
Non-financial physical assets such as Crown land and heritage assets are measured at fair
value with regard to the property’s highest and best use after due consideration is made for
any legal or constructive restrictions imposed on the asset, public announcements or
commitments made in relation to the intended use of the asset. Theoretical opportunities that
may be available in relation to the asset are not taken into account until it is virtually certain
that the restrictions will no longer apply.
The fair value of cultural assets and collections, heritage assets and other non-financial
physical assets that the state intends to preserve because of their unique historical, cultural or
environmental attributes, is measured at the replacement cost of the asset less, where
applicable, accumulated depreciation (calculated on the basis of such cost to reflect the
already consumed or expired future economic benefits of the asset) and any accumulated
impairment. These policies and any legislative limitations and restrictions imposed on their
use and/or disposal may impact their fair value.
The fair value of plant, equipment and vehicles, is normally determined by reference to the
asset’s depreciated replacement cost. The existing depreciated historical cost is generally a
reasonable proxy for depreciated replacement cost because of the short lives of the assets
concerned.
Certain assets are acquired under finance leases, which may form part of a service
concession arrangement. Refer to notes 1(N) Leases and 1(P) Commitments for more
information.
The cost of constructed non-financial physical assets includes the cost of all materials used in
construction, direct labour on the project, and an appropriate proportion of variable and fixed
overheads.
For the accounting policy on impairment of non-financial physical assets, refer to impairment
of non-financial assets under note 1(H) Impairment of non-financial assets.
Leasehold improvements
The cost of leasehold improvements is capitalised as an asset and depreciated over the
shorter of the remaining term of the lease or the estimated useful life of the improvements.
Restrictive nature of cultural and heritage assets, and Crown land
The department holds cultural assets, heritage assets, and Crown land, which are deemed
worthy of preservation because of the social rather than financial benefits they provide to the
community. Consequently, there are certain limitations and restrictions imposed on their use
and/or disposal.
Revaluations of non-financial physical assets
Non-financial physical assets are measured at fair value on a cyclical basis, in accordance
with the Financial Reporting Directions (FRDs) issued by the Minister for Finance. A full
revaluation normally occurs every five years, based on the asset’s government purpose
classification, but may occur more frequently if fair value assessments indicate material
24
changes in values. Independent valuers are used to conduct these scheduled revaluations.
Any interim revaluations are determined in accordance with the requirements of the FRDs.
Revaluation increases or decreases arise from differences between an asset’s carrying value
and fair value.
Net revaluation increases (where the carrying amount of a class of assets is increased as a
result of a revaluation) are recognised in ‘Other economic flows – other movements in equity’,
and accumulated in equity under the asset revaluation surplus. However, the net revaluation
increase is recognised in the net result to the extent that it reverses a net revaluation
decrease in respect of the same class of property, plant and equipment previously recognised
as an expense (other economic flows) in the net result.
Net revaluation decreases are recognised in ‘Other economic flows – other movements in
equity’ to the extent that a credit balance exists in the asset revaluation surplus in respect of
the same class of property, plant and equipment. Otherwise, the net revaluation decreases
are recognised immediately as other economic flows in the net result. The net revaluation
decrease recognised in ‘Other economic flows – other movements in equity’ reduces the
amount accumulated in equity under the asset revaluation surplus.
Revaluation increases and decreases relating to individual assets within a class of property,
plant and equipment are offset against one another within that class but are not offset in
respect of assets in different classes. Any asset revaluation surplus is not normally
transferred to accumulated funds on derecognition of the relevant asset.
Intangible assets
Purchased intangible assets are initially recognised at cost. Subsequently, intangible assets
with finite useful lives are carried at cost less accumulated amortisation and accumulated
impairment losses. Costs incurred subsequent to initial acquisition are capitalised when it is
expected that additional future economic benefits will flow to the state.
When the recognition criteria in AASB 138 Intangible Assets are met, internally generated
intangible assets are recognised and measured at cost less accumulated amortisation and
impairment.
The department’s intangible assets consist only of software.
Refer to note 1(G) Depreciation and amortisation and (H) Impairment of non-financial assets.
Expenditure on research activities is recognised as an expense in the period in which it is
incurred.
An internally-generated intangible asset arising from development (or from the development
phase of an internal project) is recognised if, and only if, all of the following are demonstrated:
 the technical feasibility of completing the intangible asset so that it will be available for use
or sale
 an intention to complete the intangible asset and use or sell it
 the ability to use or sell the intangible asset
 the intangible asset will generate probable future economic benefits
 the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset
 the ability to measure reliably the expenditure attributable to the intangible asset during its
development.
(M) Liabilities
Payables
Payables consist of:
 contractual payables, such as accounts payable, and unearned income. Accounts payable
represent liabilities for goods and services provided to the department prior to the end of
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the financial year that are unpaid, and arise when the department becomes obliged to
make future payments in respect of the purchase of those goods and services
 statutory payables, such as goods and services tax and fringe benefits tax payables.
Contractual payables are classified as financial instruments and categorised as financial
liabilities at amortised cost (refer to note 1(J)). Statutory payables are recognised and
measured similarly to contractual payables, but are not classified as financial instruments and
not included in the category of financial liabilities at amortised cost, because they do not arise
from a contract.
Borrowings
All interest bearing liabilities are initially recognised at fair value of the consideration received,
less directly attributable transaction costs (refer to note 1(N) Leases).
Subsequent to initial recognition, interest bearing liabilities are measured at amortised cost.
Any difference between the initial recognised amount and the redemption value is recognised
in the net result over the period of the borrowing using the effective interest method.
Provisions
Provisions are recognised when the department has a present obligation, the future sacrifice
of economic benefits is probable, and the amount of the provision can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to
settle the present obligation at reporting period, taking into account the risks and uncertainties
surrounding the obligation. Where a provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the present value of those cash flows,
using discount rate that reflects the time value of money and risks specific to the provision.
When some or all of the economic benefits required to settle a provision are expected to be
received from a third party, the receivable is recognised as an asset if it is virtually certain that
recovery will be received and the amount of the receivable can be measured reliably.
Other provisions
Other provisions mainly represent amounts agreed under legal settlement to be paid in future
years.
Employee benefits
Provision is made for benefits accruing to employees in respect of annual leave, long service
leave, and on-costs for services rendered to the reporting date.
(i) Annual leave
Liabilities for annual leave are recognised in the provision for employee benefits, classified as
current liabilities. Those liabilities which are expected to be settled within 12 months of the
reporting period, are measured at nominal values.
Those liabilities that are not expected to be settled within 12 months are also recognised in
the provision for employee benefits as current liabilities, but are measured at present value of
the amounts expected to be paid when the liabilities are settled using the remuneration rate
expected to apply at the time of settlement.
(ii) Long service leave
Liability for long service leave (LSL) is recognised in the provision for employee benefits.
 Current liability – unconditional LSL (representing seven or more years of continuous
service for all staff) is disclosed in the notes to the financial statements as a current
liability, even where the department does not expect to settle the liability within 12 months
because it will not have the unconditional right to defer the settlement of the entitlement
should an employee take leave within 12 months.
The components of this current LSL liability are measured at:
nominal value – component that the department expects to settle within 12 months
present value – component that the department does not expect to settle within 12
months.
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 Non-current liability - conditional LSL (representing less than seven years of continuous
service for all staff) is disclosed as a non-current liability. There is an unconditional right to
defer the settlement of the entitlement until the employee has completed the requisite
years of service. This non-current LSL liability is measured at present value using a model
provided by Treasury. This model uses a wage inflation rate based on the average of
forward estimates of the rates as assumed in the 2013–14 Budget plus one per cent for
progression and promotion. The values are then discounted using the Reserve Bank of
Australia’s indicative Mid Rates of Commonwealth Government Securities.
Any gain or loss following revaluation of the present value of non-current LSL liability is
recognised as a transaction, except to the extent that a gain or loss arises due to changes in
bond interest rates for which it is then recognised as an other economic flow (refer to note
1(H) Other economic flows included in net result).
The probability that staff will remain with the department and become entitled to their long
service leave is also factored in the calculation of the provision for long service leave.
(iii) Employee benefits on-costs
Employee benefits on-costs such as payroll tax, workers compensation, and superannuation
are recognised separately from the provision for employee benefits.
Derecognition of financial liabilities
A financial liability is derecognised when the obligation under the liability is discharged,
cancelled or expires.
(N) Leases
A lease is a right to use an asset for an agreed period of time in exchange for payment.
Leases are classified at their inception as either operating or finance leases based on the
economic substance of the agreement so as to reflect the risks and rewards incidental to
ownership. Leases of property, plant and equipment are classified as finance leases
whenever the terms of the lease transfer substantially all the risks and rewards of ownership
from the lessor to the lessee. All other leases are classified as operating leases.
Finance leases
Department as lessee
At the commencement of the lease term, finance leases are initially recognised as assets and
liabilities at amounts equal to the fair value of the lease property or, if lower, the present value
of the minimum lease payment, each determined at the inception of the lease. The lease
asset is accounted for as a non-financial physical asset. Where the asset reverts back to the
state at the end of the lease term, the asset is depreciated over its estimated useful life.
Where the asset does not revert back to the state at the end of the lease term, the asset is
depreciated over the shorter of the estimated useful life of the asset or the term of the lease.
Minimum finance lease payments are apportioned between reduction of the outstanding lease
liability, and periodic finance expense which is calculated using the interest rate implicit in the
lease and charged directly to the comprehensive operating statement. Contingent rentals
associated with finance leases are recognised as an expense in the period in which they are
incurred. Leases are recognised at the commencement of the lease term.
Operating leases
Department as lessee
Operating lease payments, including any contingent rentals, are recognised as an expense in
the comprehensive operating statement on a straight-line basis over the lease term, except
where another systematic basis is more representative of the time pattern of the benefits
derived from the use of the leased asset. The leased asset is not recognised in the balance
sheet.
27
(O) Equity
Contributions by owners
Additions to net assets which have been designated as contributions by owners are
recognised as contributed capital. Other transfers that are in the nature of contributions or
distributions have also been designated as contributions by owners.
Transfers of net assets arising from administrative restructurings are treated as distributions
to or contributions by owners.
(P) Commitments
Commitments for future expenditure include operating and capital commitments arising from
contracts. These commitments are disclosed by way of a note (refer to note 18) at their
nominal value and inclusive of the goods and services tax (GST) payable. In addition, where
it is considered appropriate and provides additional relevant information to users, the net
present values of significant individual projects are stated. These future expenditures cease
to be disclosed as commitments once the related liabilities are recognised in the balance
sheet.
(Q) Contingent assets and contingent liabilities
Contingent assets and contingent liabilities are not recognised in the balance sheet, but are
disclosed by way of a note (refer to note 19) and, if quantifiable, are measured at nominal
value. Contingent assets and liabilities are presented inclusive of GST receivable or payable
respectively.
(R) Service concession arrangements (public private partnerships)
The department sometimes enters into certain arrangements with private sector participants
to design and construct or upgrade an asset used to provide public services. These
arrangements are typically complex and usually include the provision of operational and
maintenance services for a specified period of time. These arrangements are often referred to
as either public private partnerships (PPPs) or service concession arrangements (SCAs).
These SCAs usually take one of two main forms. In the more common form, the department
pays the operator over the period of the arrangement, subject to specified performance
criteria being met. At the date of commitment to the principal provisions of the arrangement,
these estimated periodic payments are allocated between a component related to the design
and construction or upgrading of the asset and components related to the ongoing operation
and maintenance of the asset. The former component is accounted for as a lease payment
(see note 1(N) Leases). The remaining components are accounted for as commitments (see
note 1(P) Commitments) for operating costs which are expensed in the comprehensive
operating statement as they are incurred.
The other, less common form of SCA, is one in which the department grants to an operator,
for a specified period of time, the right to collect fees from users of the SCA asset, in return
for which the operator constructs the asset and has the obligation to supply agreed upon
services, including maintenance of the asset for the period of the concession. These private
sector entities typically lease land, and sometimes state works, from the State and construct
infrastructure. At the end of the concession period, the land and State works, together with
the constructed facilities, will be returned to the grantor department.
There is currently no authoritative accounting guidance applicable to grantors (the
department) on the recognition and measurement of the right of the department to receive
assets from such concession arrangements. Due to the lack of such guidance, there has
been no change to existing policy and those assets are not currently recognised.
(S) Accounting for the Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST, except
where GST incurred is not recoverable from the taxation authority. In this case, the GST
payable is recognised as part of the cost of acquisition of the asset or as part of the expense.
28
Receivables and payables are stated inclusive of the amount of GST receivable or payable.
The net amount of GST recoverable from, or payable to, the taxation authority is included with
other receivables or payables in the balance sheet.
Cash flows are presented on a gross basis. The GST components of cash flows arising from
investing or financing activities which are recoverable from, or payable to the taxation
authority, are presented as operating cash flow.
Commitments and contingent assets and liabilities are also stated inclusive of GST.
(T) Events after the reporting period
Assets, liabilities, income or expenses arise from past transactions or other past events.
Where the transactions result from an agreement between the department and other parties,
the transactions are only recognised when the agreement is irrevocable at or before the end
of the reporting period. Adjustments are made to amounts recognised in the financial
statements for events which occur after the reporting period and before the date the financial
statements are authorised for issue, where those events provide information about conditions
which existed in the reporting period. Note disclosure is made about events between the end
of the reporting period and the date the financial statements are authorised for issue where
the events relate to conditions which arose after the end of the reporting period and which
may have a material impact on the results of subsequent years.
(U) Correction of prior period error
The department’s 2011–12 annual financial statements incorrectly included trust fund
amounts from the Judicial College of Victoria. The error has been corrected by restating each
of the affected line items in the current set of financial statements for the 2012 comparative
year.
The affected line items from the face of the financial statements are shown below.
Restated line items from the Comprehensive operating statement
Notes
2012
Published
Amount
overstated
2012
Restated
$’000
$’000
$’000
56,329
(280)
56,049
4,231,040
(280)
4,230,760
(712,848)
44
(712,804)
(4,190,515)
44
(4,190,471)
Net result from transactions (net operating
balance)
40,525
(236)
40,289
Net result
37,564
(236)
37,328
Comprehensive result
32,735
(236)
32,499
456,488
(546)
455,942
Total financial assets
1,092,317
(546)
1,091,771
Total assets
3,449,929
(546)
3,449,383
Net assets
2,396,814
(546)
2,396,268
Income from transactions
Grants
4(b)
Total income from transactions
Expenses from transactions
Employee expenses
5(a)
Total expenses from transactions
Restated line items from the Balance sheet
Financial assets
Cash and deposits
21(a)
Equity
29
Notes
2012
Published
Amount
overstated
2012
Restated
$’000
$’000
$’000
582,104
(546)
581,558
2,396,814
(546)
2,396,268
544,540
(310)
544,230
37,564
(236)
37,328
582,104
(546)
581,558
56,329
(280)
56,049
4,336,583
(280)
4,336,303
Payments to suppliers and employees
(1,466,884)
44
(1,466,840)
Total payments
(4,216,965)
44
(4,216,921)
Net cash flows from/(used in) operating activities
119,618
(236)
119,382
Net increase/ (decrease) in cash and cash
equivalents
213,535
(236)
213,299
Cash and cash equivalents at beginning of financial
year
242,953
(310)
242,643
Cash and cash equivalents at end of financial year
456,488
(546)
455,942
Accumulated surplus/(deficit)
Net worth
Restated line items from the Statement of changes in equity
Accumulated surplus/(deficit)
Balance at 1 July 2011
Net result for the year
Balance at 30 June 2012
Restated line items from the Cash flow statement
Cash flows from operating activities
Receipts
Receipts from other entities
Total receipts
Payments
(V) Australian Accounting Standards issued that are not yet effective
Certain new AASs have been published that are not mandatory for the 30 June 2013
reporting period. DTF assesses the impact of these new standards and advises the
department of their applicability and early adoption where applicable.
As at 30 June 2013, the following standards and interpretations that are applicable to the
department had been issued but were not mandatory for the financial year ending 30 June
2013. Standards and Interpretations that are not applicable to the department have been
omitted. The department has not early adopted these standards.
Standard/
Interpretation
Summary
Applicable for annual
reporting periods
beginning after
AASB 9 Financial
instruments
This standard simplifies requirements Beginning
for the classification and
1 January 2015
measurement of financial assets
resulting from Phase 1 of the IASB’s
project to replace IAS 39 Financial
Instruments: Recognition and
Measurement (AASB 139 Financial
Instruments: Recognition and
Measurement).
Impact on departmental
financial statements
Subject to AASB’s further
modifications to AASB 9,
together with the
anticipated changes
resulting from the staged
projects on impairments
and hedge accounting,
details of impacts will be
assessed.
30
Standard/
Interpretation
Summary
Applicable for annual
reporting periods
beginning after
Impact on departmental
financial statements
AASB 10
Consolidated
Financial
Statements
This Standard forms the basis for
Beginning
determining which entities should be
1 January 2014
consolidated into an entity’s financial
statements. AASB 10 defines ‘control’
as requiring exposure or rights to
variable returns and the ability to affect
those returns through power over an
investee, which may broaden the
concept of control for public sector
entities.
The AASB has issued an exposure
draft ED 238 Consolidated Financial
Statements - Australian
Implementation Guidance for Not-forProfit Entities that explains and
illustrates how the principles in the
Standard apply from the perspective of
not-for-profit entities in the private and
public sectors.”
Not-for-profit entities are
not permitted to apply this
Standard prior to the
mandatory application
date.
Subject to AASB’s final
deliberations on ED 238
and any modifications
made to AASB 10 for notfor-profit entities, the
department will need to reassess the nature of its
relationships with other
entities, including those
that are currently not
consolidated.
AASB 12
Disclosure of
Interests in Other
Entities
This Standard requires disclosure of
Beginning
information that enables users of
1 January 2014
financial statements to evaluate the
nature of, and risks associated with,
interests in other entities and the effects
of those interests on the financial
statements. This Standard replaces the
disclosure requirements in AASB 127
Separate Financial Statements and
AASB 131 Interests in Joint Ventures.
The exposure draft ED 238 proposes to
add some implementation guidance to
AASB 12, explaining and illustrating the
definition of a ‘structured entity’ from a
not-for-profit perspective.
Not-for-profit entities are
not permitted to apply this
Standard prior to the
mandatory application
date.
Impacts on the level and
nature of the disclosures
will be assessed based on
the eventual implications
arising from AASB 10,
AASB 11 and AASB 128
Investment in Associates
and Joint Ventures.
AASB 13 Fair
Value
Measurement
This Standard outlines the
Beginning
requirements for measuring the fair
1 January 2013
value of assets and liabilities and
replaces the existing fair value
definition and guidance in other
Australian accounting standards.
AASB 13 includes a ‘fair value
hierarchy’ which ranks the valuation
technique inputs into three levels using
unadjusted quoted prices in active
markets for identical assets or
liabilities; other observable inputs; and
unobservable inputs.
Disclosure for fair value
measurements using
unobservable inputs are
relatively detailed
compared to disclosure for
fair value measurements
using observable inputs.
Consequently, the
Standard may increase the
disclosures required for
assets measured using
depreciated replacement
cost.
AASB 1053
Application of
Tiers of Australian
Accounting
Standards
This Standard establishes a
Beginning
differential financial reporting
1 July 2013
framework consisting of two tiers of
reporting requirements for preparing
general purpose financial statements.
The Victorian Government
is currently considering the
impacts of Reduced
Disclosure Requirements
(RDRs) for certain public
sector entities and has not
decided if RDRs will be
implemented in the
Victorian public sector.
31
Note 2. Departmental (controlled) outputs
A description of each output activity of the department during the year ended 30 June 2013,
and the objectives of each output activity, are summarised below:
Public safety and crime reduction
Description of output
This output contributes towards enabling individuals and families to undertake their lawful
pursuits confidently, safely and without fear of crime.
Objectives
 This output group contributes to the department’s objective to lead whole-of-government
policing and community safety.
Public Sector integrity
Description of output
This output includes a range of activities related to achieving a high standard in Public Sector
integrity through the establishment of new bodies and new powers to address corruption.
Objectives
 This output group contributes to the department’s objective to ensure the integrity of the
Public Sector.
Legal support to government and protecting the rights of Victorians
Description of output
These outputs include a range of activities delivered by the department including:
 legal policy advice to government, law reform and implementation of new or amended
legislation, and providing legal advice to other departments and agencies
 provision of services relating to rights and equal opportunity, identity protection, and
advocacy and guardianship for Victorians with a disability or mental illness
 legal aid to support access to justice, supporting victims of crime, and delivery of
independent, expert forensic medical services to the justice system
 privacy regulation
 the administration of the Victorian electoral system
 enhancing government transparency through the establishment of an independent
Freedom of Information (FOI) Commissioner.
Objectives
This output group contributes to the department’s objective of supporting the Justice System.
Dispensing justice
Description of output
These outputs involve supporting the state’s judiciary in its dispensation of criminal and civil
matters, maintaining the administrative operations of the system of courts and statutory
tribunals, and providing appropriate civil dispute resolution mechanisms. These outputs also
incorporate the management of criminal prosecutions on behalf of the state.
Through these outputs, the department aims to:
 administer justice according to law
 build the capacity of law enforcement agencies
 ensure a more efficient justice system
 protect the vulnerable
32
 resolve disputes appropriately and efficiently.
Objectives
 This output group contributes to the department’s objective of supporting the Justice
System.
Community operations
Description of output
These outputs include the fair and effective enforcement of judicial fines, court orders and
warrants, and processing of traffic infringement notices.
These outputs include implementation of crime prevention strategies to reduce the propensity
to offend such as the Working with Children Check scheme and the Aboriginal Justice
Agreement. These outputs include implementation of strategies to support local community
engagement in crime prevention strategies.
Objectives
 This output group will contribute to the department’s objective to provide excellence in
service delivery.
Supporting the state’s fire and emergency services
Description of output
This output supports emergency prevention and response services provided by the
Metropolitan Fire and Emergency Services Board, Country Fire Authority and Victoria State
Emergency Service, to reduce death and injury rates and to improve emergency responses.
Key strategic priorities involve emergency services working together in a coordinated manner,
developing common arrangements that apply to a range of hazards facing the community,
focusing on prevention and minimising the risk of emergencies and ensuring emergency
services work in active partnership with the community.
Objectives
 This output contributes to the department’s objective to lead whole of government
emergency management to minimise adverse effects to the community.
Enforcing correctional orders
Description of output
These outputs ensure that correctional dispositions of the courts, and orders of the Adult
Parole Board, are implemented through the management of the State’s system of correctional
facilities and programs for the containment and rehabilitation of prisoners as well as the
community-based supervision of offenders. These outputs reflect the Government’s focus on
reducing the overall incidence and fear of crime and enhancing the safety of individuals and
families.
Objectives
 This output group contributes to the department’s objective to manage correctional
facilities and programs to rehabilitate prisoners and offenders and increase the safety of
individuals and families.
Protecting consumers
Description of output
This output promotes informed, confident and protected consumers through appropriate
regulation and education that promote awareness and compliance with consumer laws,
specifically focusing on the needs of vulnerable and disadvantaged consumers and providing
flexible dispute resolution.
This output involves developing and administering consumer protection legislation, including
legislation relating to misleading and deceptive conduct, unconscionable conduct and unfair
contract terms. It informs people of their rights and responsibilities in the marketplace,
33
promotes more informed and educated buying decisions, provides assistance, promotes
compliance by business with the law, and ensures that laws are appropriately enforced.
Registers and licences are maintained to ensure minimum standards of transparency and
competence are achieved and, where necessary, to influence and regulate trading behaviour.
Objectives
 This output contributes to the department’s objective to provide excellence in service
delivery, and to ensure responsible regulation.
Gambling and liquor regulation and racing industry development
Description of output
This output provides for the provision of policy advice to the Minister for Gaming and the
Minister for Consumer Affairs on the ongoing enhancement of gambling and liquor industries
and the management of problem gambling.
The output also provides for the provision of policy advice to the Minister for Racing on issues
of significance to the national racing and wagering industries, industry regulation and
compliance, and funding support for the growth and development of the racing industry of
Victoria.
Objectives
 This output contributes to the department’s objective to ensure responsible regulation.
Other information
In addition to, and incorporated in, the above output activities are a number of entities within
the Justice Portfolio which report separately. The financial statements contain the
appropriation revenue for these entities and the expenditure is represented in the receipt of
regular grants expense and transfer payments. These are:
Public safety and crime reduction
Victoria Police
Public Sector integrity
Independent Broad-based Anti-corruption Commission (commenced from 1 July 2012)
Office of Police Integrity (ceased from 9 February 2013)
Victorian Inspectorate (commenced from 1 July 2012)
Legal support to government and protecting the rights of Victorians
Office of the Victorian Privacy Commissioner
Victoria Legal Aid
Victorian Electoral Commission
Victorian Equal Opportunity and Human Rights Commission
Victorian Institute of Forensic Medicine
Victorian Law Reform Commission
Dispensing justice
Judicial College of Victoria
Office of Public Prosecutions
Sentencing Advisory Council
Support the state’s fire and emergency services
Country Fire Authority
Emergency Services Telecommunications Authority
Metropolitan Fire and Emergency Services Board
34
Victoria State Emergency Service
Protecting consumers
Residential Tenancies Bond Authority
Gambling and liquor regulation and racing industry development
Victorian Commission for Gambling and Liquor Regulation
Victorian Responsible Gambling Foundation (commenced from 1 July 2012)
The following organisations form part of the Justice Portfolio but are excluded from the above
output activities as they are not funded out of the Budget Sector:
Greyhound Racing Victoria
Harness Racing Victoria
HRV Management Limited
Melton Entertainment Trust
Legal Practitioners Liability Committee
Legal Services Board
Legal Services Commissioner
Professional Standards Council.
35
Schedule A – Controlled income and expenses for the year ended 30 June 2013
Public safety and
crime reduction
Public Sector
integrity(i)
Legal support to
government and
protecting the rights
of Victorians
Dispensing justice(ii)
Community
operations
Supporting the
state’s fire and
emergency
services
Enforcing
correctional orders
Protecting Gambling and liquor
consumers regulation and racing
industry
development
Departmental total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
2,065,961 27,562
0
270,962
262,641
393,001
399,602
225,908
214,390
689,350
38,781
51,750
61,897
4,156,875
3,976,514
Continuing operations
Income from transactions
Output appropriations
2,121,978
255,068 230,923
753,364
70,251
Special appropriations
0
0
0
0
40,250
21,685
97,149
92,840
0
0
269
420
91
156
0
0
0
0
137,759
115,101
Interest
0
0
0
0
0
0
0
0
0
0
0
0
166
201
41,686
60,553
60
83
41,912
60,837
Grants
0
0
0
0
2,166
1,149
116
744
47
0
3,136
700
191
16,263
19
154
1,922
37,039
7,597
56,049
0
2
0
0
880
204
118
2,335
409
17
35,825
2,411
1,524
72
17,593
17,163
212
2,121,978
2,065,963
0
314,258
285,679
490,384
495,521
226,364
214,407
706,042
98,079
129,620
Other income
Total income from
transactions
294,298 234,454
27,562
755,336
55
56,561
22,259
99,074
4,400,704
4,230,760
12,900
748,451
712,804
72,445
Expenses from transactions
Employee expenses
0
929
759
0
62,959
58,586
249,687
240,546
55,614
53,751
16,671
12,217
284,157
42,196
49,718
310,122
10,443
Depreciation and
amortisation
0
89
5
0
1,576
1,616
35,306
23,311
8,169
9,655
4,094
2,429
49,409
44,983
474
564
348
188
99,381
82,835
Interest expense
0
(5)
2
0
(5)
(6)
10,894
11,644
211
177
(16)
(11)
22,327
23,426
31
26
(5)
1
33,439
35,252
Grants and other
transfers(iii)
2,121,978
2,062,674 26,520
0
212,547
185,764
63,839
67,012
10,778
6,934
206,575 199,019
6,710
6,944
11,608
20,706
63,087
2,711,992
2,612,140
51,437
Capital asset charge
0
607
0
0
898
1,291
46,429
58,896
2,025
3,342
5,458
2,339
Supplies and services(iii)
0
1,769
241
0
40,675
41,166
89,201
105,833
144,431
140,866
27,167
19,788
66,430
43,430
0
66
48
342
121,288
110,313
285,424
27,002
20,570
9,837
21,711
644,971
637,127
688,364
81,311
91,650
98,229
4,359,522
4,190,471
306,417
Total expenses from
transactions
Net result from
transactions
(net operating balance)
2,121,978
2,066,063 27,527
0
318,650
288,417
495,356
507,242
221,228
214,725
259,949 235,781
761,415
0
72,108
(100)
35
0
(4,392)
(2,738)
(4,972)
(11,721)
5,136
(318)
34,349
(1,327)
(6,079)
17,678
16,768
37,970
337
845
41,182
40,289
Other economic flows included in net result
Net gain/(loss) on nonfinancial assets
0
24
0
0
251
180
467
353
191
165
178
93
(584)
506
77
79
99
35
679
1,435
Net gain/(loss) on financial
instruments
0
0
0
0
0
0
0
(1)
0
0
0
0
134
(30)
(2,456)
0
0
0
(2,322)
(31)
Other gains/(losses) from
other economic flows
0
(53)
0
0
293
(399)
1,214
(1,905)
220
(362)
205
(205)
884
(1,170)
90
(173)
116
(98)
3,022
(4,365)
Total other economic
flows included in net
result
0
(29)
0
0
544
(219)
1,681
(1,553)
411
(197)
383
(112)
434
(694)
(2,289)
(94)
215
(63)
1,379
(2,961)
36
Public safety and
crime reduction
Net result
0
(129)
Public Sector
integrity(i)
Legal support to
government and
protecting the rights
of Victorians
Dispensing justice(ii)
Community
operations
Supporting the
state’s fire and
emergency
services
Enforcing
correctional orders
Protecting Gambling and liquor
consumers regulation and racing
industry
development
Departmental total
35
0
(3,848)
(2,957)
(3,291)
(13,274)
5,547
(515)
34,732
(1,439)
(5,645)
16,984
14,479
37,876
552
782
42,561
37,328
Other economic flows – other comprehensive income
Items that will not be reclassified to net result
Changes in physical
asset revaluation surplus
0
0
0
0
0
0
0
(4,663)
0
0
(20,745)
0
0
(163)
0
(3)
0
0
(20,745)
(4,829)
Total other economic
flows – other
comprehensive income
0
0
0
0
0
0
0
(4,663)
0
0
(20,745)
0
0
(163)
0
(3)
0
0
(20,745)
(4,829)
Comprehensive result
0
(129)
35
0
(3,848)
(2,957)
(3,291)
(17,937)
5,547
(515)
13,987
(1,439)
(5,645)
16,821
14,479
37,873
552
782
21,816
32,499
Schedule B – Controlled assets and liabilities as at 30 June 2013
Public safety and
crime reduction
Public Sector
integrity(i)
Legal support to
government and
protecting the
rights
of Victorians
Dispensing justice(ii)
Community
operations
Supporting the
state’s fire and
emergency services
Enforcing
correctional orders
Protecting
consumers
Gambling and
liquor regulation
and racing
industry
development
Departmental total
Assets
Financial assets
Non-financial assets
Total assets
337,447
338,095
(5,199)
0
49,192
47,116
185,438
88,545
22,397
30,769
68,307
44,047
67,296
93,872
417,075
427,952
3,663
21,375
1,145,616
1,091,771
0
1,883
56
0
15,593
17,264
895,427
924,074
74,632
75,531
74,283
19,624
1,594,912
1,309,403
3,985
6,389
5,013
3,444
2,663,901
2,357,612
337,447
339,978
(5,143)
0
64,785
64,380
1,080,865
1,012,619
97,029
106,300
142,590
63,671
1,662,208
1,403,275
421,060
434,341
8,676
24,819
3,809,517
3,449,383
337,447
336,373
284
0
59,302
28,744
234,326
225,210
44,339
55,601
17,276
11,313
589,018
362,177
17,887
19,960 13,827
13,737
1,313,706
1,053,115
0
3,605
(5,427)
0
5,483
35,636
846,539
787,409
52,690
50,699
125,314
52,358
1,073,190
1,041,098
403,173
414,381 (5,151)
11,082
2,495,811
2,396,268
Liabilities
Total liabilities
Net assets
(i) New output in 2012–13.
(ii) The 2011–12 comparative has been adjusted (refer to note 1U).
(iii) The 2011–12 comparative has been adjusted for the reclassification of payments from other supplies and services expense to grants expense.
37
Note 3. Administered (non-controlled) items
In addition to the specific departmental operations which are included in the financial statements (comprehensive operating statement, balance sheet, statement of
changes in equity and cash flow statement), the department administers or manages other activities and resources on behalf of the state. The transactions relating to these
activities are reported as administered items (refer to Note 1(D) and 1(J)) in this note.(i)
Public safety
and crime
reduction
Public Sector
integrity(ii)
Legal support to
government and
protecting the
rights of
Victorians
Dispensing
justice
Community
operations
Supporting the
state’s fire and
emergency
services
Enforcing
correctional
orders
Protecting
consumers
Gambling and liquor
regulation and racing
industry development
Departmental total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Appropriations – Payments made on behalf of the
state
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
35,420
41,149
35,420
41,149
Special appropriations applied
0
0
0
0
2,417
5,383
41,338
38,539
3,939
2,975
0
0
0
0
0
0
0
0
47,694
46,897
Sale of goods and services
0
160
0
0
72,264
53,121
58,770
50,384
27,794
26,363
25,441
11,457
10,415
12,135
246
4,592
1,025
839
195,955
159,051
Commonwealth grants
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Taxation income
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,780,740
1,771,740
1,780,740
1,771,740
Fines
0
0
0
0
635
2,521
21,664
20,326
647,890
496,481
0
0
176
171
0
114
109
80
670,474
519,693
Fees
0
0
0
0
8,889
8,196
87
102
260,397
207,867
0
0
0
0
2,163
12,167
10,292
8,903
281,828
237,235
Other income
0
0
1
0
617
896
2,903
3,068
25,136
20,928
254
232
1,569
1,906
166
243
17,729
253
48,375
27,526
Total administered income from transactions
0
160
1
0
84,822
70,117 124,762 112,419
965,156
754,614
25,695
11,689
12,160
14,212
2,575
17,116
1,845,315
1,822,964
3,060,486
2,803,291
Administered income from transactions
Administered expenses from transactions
Payments made on behalf of the state
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
35,420
41,149
35,420
41,149
Payments into the Consolidated Fund
0
160
0
0
73,852
55,624
58,789
50,372
498,632
468,272
25,442
11,459
16,523
12,058
246
5,635
1,803,317
2,171,530
2,476,801
2,775,110
Other expenses
0
0
0
0
2,772
2,299
Total administered expenses from
transactions
0
160
0
0
76,624
Total administered net result from
transactions (net operating balance)
0
0
1
0
8,198
41,645
39,424
7,843
10,899
250
205
1,458
1,746
109
176
139
77
54,216
54,826
57,923 100,434
89,796
506,475
479,171
25,692
11,664
17,981
13,804
355
5,811
1,838,876
2,212,756
2,566,437
2,871,085
12,194
24,328
22,623
458,681
275,443
3
25
(5,821)
408
2,220
11,305
6,439
(389,792)
494,049
(67,794)
Administered other economic flows included in administered net result
Net gain/(loss) on non-financial assets
0
(12)
(7)
0
(7)
(7)
(26)
(10)
8
(30)
8
0
(7)
(184)
3
(11)
(13)
(95)
(41)
(349)
Net gain/(loss) on financial instruments
0
0
0
0
0
(4)
(529)
270
(345,459)
(272,874)
0
0
0
0
0
0
(4,225)
0
(350,213)
(272,608)
Other gains/(losses) from other economic flows
0
0
0
0
0
0
0
0
1
(1)
0
0
0
0
0
0
0
0
1
(1)
Total administered other economic flows
0
(12)
(7)
0
(7)
(11)
(555)
260
(345,450)
(272,905)
8
0
(7)
(184)
3
(11)
(4,238)
(95)
(350,253)
(272,958)
Total administered comprehensive result
0
(12)
(6)
0
8,191
12,183
23,773
22,883
113,231
2,538
11
25
(5,828)
224
2,223
11,294
2,201
(389,887)
143,796
(340,752)
Administered financial assets
Cash and deposits
0
0
0
0
20,427
1,706
9,006
10,294
12,151
20,753
682
580
9,483
7,007
300
740
355
146
52,404
41,226
Receivables
0
39
0
0
11,745
8,437
16,941
9,513
736,458
606,406
1,811
268
0
852
7
127
830,704
83,632
1,597,666
709,274
38
Public safety
and crime
reduction
Public Sector
integrity(ii)
Legal support to
government and
protecting the
rights of
Victorians
Dispensing
justice
Community
operations
Supporting the
state’s fire and
emergency
services
Enforcing
correctional
orders
Protecting
consumers
Gambling and liquor
regulation and racing
industry development
Departmental total
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
Equity investments in other justice portfolio
entities
0
0
0
0
42,195
42,195
0
0
0
0 476,080 456,193
0
0
0
0
11,098
11,098
529,373
509,486
Total administered financial assets
0
39
0
0
74,367
52,338
25,947
19,807
748,609
627,159 478,573 457,041
9,483
7,859
307
867
842,157
94,876
2,179,443
1,259,986
Creditors and accruals
0
0
0
0
8
785
20
(22)
110
102
2
(2)
20
20
3
(4)
2,885
2,592
3,048
3,471
Deposits payable
0
0
0
0
19,296
14,517
8,404
7,557
9,778
8,421
605
342
6,848
4,458
262
289
338
130
45,531
35,714
Provisions
0
0
0
0
0
0
0
0
22
22
0
0
40
41
0
0
0
0
62
63
Unearned revenue
0
0
0
0
2,408
450
5
45
2
3
293
2
8
9
11
1
1,298,490
553,863
1,301,217
554,373
Other
0
0
0
0
288
68
880
1,700
0
0
0
0
0
0
0
0
0
0
1,168
1,768
Total administered liabilities
0
0
0
0
22,000
15,820
9,309
9,280
9,912
8,548
900
342
6,916
4,528
276
286
1,301,713
556,585
1,351,026
595,389
Total administered net assets
0
39
0
0
52,367
36,518
16,638
10,527
738,697
618,611 477,673 456,699
2,567
3,331
31
581
(459,556)
(461,709)
828,417
664,597
Administered liabilities
(i) This note now includes all Justice portfolio entities’ administered items. The 2011–12 comparatives have been adjusted accordingly.
(ii) New output in 2012–13.
Administered income from fines is recognised upon the issue of infringement notices. These fines are managed by the Infringement Management and Enforcement
Services unit of the department. All fines collected during the year are paid into the Consolidated Fund.
The majority of the fines $647.890 million (2012: $496.481 million) disclosed under the Community Operations activity comprises traffic camera fines of $278.289 million
(2012: $259.448 million) and on the spot fines of $162.658 million (2012: $126.212 million) issued by Victoria Police.
Administered income also includes taxation income for gaming, racing and lotteries collected on behalf of the State by the Victorian Commission for Gambling and Liquor
Regulation totalling $1,780.740 million (2012: $1,771.740 million). Administered expenses reflect payments made to other states for their share of Tattersall’s duty
payments which are collected and on-passed to other jurisdictions totalling $35.420 million (2012: $41.149 million).
Administered receivables comprises $1,530.876 million (2012: $1,278.790 million) debtors, plus $832.045 million (2012: $80.983 million) taxes receivable, less $765.254
million (2012: $650.499 million) provision for doubtful debts.
Administered liabilities includes unearned revenue from gambling licence renewals totalling $1,298.488 million (2012: $553.861 million).
39
Note 4. Income from transactions
In addition to the specific departmental operations which are included in the financial statements
(comprehensive operating statement, balance sheet, statement of changes in equity and cash
flow statement), the department administers or manages other activities and resources on
behalf of the state. The transactions relating to these activities are reported as administered
items (refer to Note 1(D) and 1(J)) in this note.(i)
2013
2012
$’000
$’000
- Interest from investments
13,760
19,066
- Interest from real estate agent trust accounts
28,152
41,771
Total interest
41,912
60,837
- General government outside portfolio(i)
6,389
54,080
- Other states and local government
1,208
1,969
Total grants
7,597
56,049
10,700
10,310
Sale of goods
289
319
Dividends from investments
177
0
9,694
11,630
Fair value of assets received free of charge or for nominal
consideration
35,701
0
Total other income
56,561
22,259
2013
2012
$’000
$’000
555,231
541,116
Superannuation (note 16)
49,985
49,207
Annual leave and long service leave expense
74,093
69,534
Other on-costs (fringe benefits tax, payroll tax and workcover
levy)
45,979
43,942
6,505
7,871
(a) Interest
Interest from financial assets at fair value through profit or loss:
(b) Grants
Other specific purpose from:
(i)The 2011–12 comparative has been adjusted (refer to note 1U).
(c) Other income
Fines and fees
Other
Note 5. Expenses from transactions
(a) Employee expenses(i)
Salary and wages
Staff training
40
2013
2012
$’000
$’000
16,658
1,134
748,451
712,804
Buildings
35,729
29,800
Buildings leasehold
26,347
25,702
Leasehold improvements
9,344
6,111
Plant and equipment
9,564
9,350
Leased plant and equipment
7,199
7,412
Software
11,198
4,460
Total depreciation and amortisation
99,381
82,835
Interest on finance leases
33,439
35,252
Total interest expense
33,439
35,252
Departure packages
Total employee expenses
(i)The 2011–12 comparative has been adjusted (refer to note 1U).
(b) Depreciation and amortisation
(c) Interest expense
(d) Grants and other transfers
Payments for specific purpose to:
- Victoria Police
2,121,978 2,041,299
119,502
116,072
- Country Fire Authority
86,113
84,838
- Office of Public Prosecution
57,587
58,747
- Victoria State Emergency Service
48,399
39,662
- Metropolitan Fire and Emergency Services Board
38,977
37,477
- Victorian Electoral Commission
40,250
21,685
- Victorian Commission for Gambling and Liquor Regulation
37,808
16,174
- Victorian Commission for Gambling Regulation (ceased in
2011–12)
0
15,781
- Victorian Institute of Forensic Medicine
28,053
26,354
- Office of Police Integrity (ceased in 2012–13)
12,364
21,375
- Independent Broad-based Anti-corruption Commission
(commenced in 2012–13)
13,335
0
- Emergency Services Telecommunications Authority
13,941
14,916
- Victorian Equal Opportunity and Human Rights Commission
8,836
8,712
- Office of the Victorian Privacy Commissioner
2,110
2,273
- Judicial College of Victoria
2,259
2,156
- Sentencing Advisory Council
1,765
2,162
- Victoria Legal Aid
41
2013
2012
$’000
$’000
- Victorian Inspectorate (commenced in 2012–13)
822
0
- Victorian Responsible Gambling Foundation (commenced in
2012–13)
420
0
77,473
102,457
- Other parties(i)
Total grants and other transfers
2,711,992 2,612,140
(i)
The 2011–12 comparative has been adjusted for the reclassification of payments from
other supplies and services expense to grants expense for other parties.
(e) Supplies and services
Outsourced contracted costs(ii)
322,152
305,164
Contractors and professional services
89,624
102,433
Prison operating expenses(ii)(iii)
23,106
21,974
Accommodation and property services
74,332
69,029
Printing, stationery and other office expenses
39,874
49,915
Technology services costs(iv)
45,236
46,058
50,647
42,554
644,971
637,127
Other
(i)(iii)(iv)
Total supplies and services
(i) The 2011–12 comparative has been adjusted for the reclassification of payments from other
supplies and services expense to grants expense for other parties.
(ii) The 2011–12 comparative has been adjusted for the reclassification of payments from prison
operating expenses to outsourced contracted costs.
(iii) The 2011–12 comparative has been adjusted for the reclassification of payments from
prison operating expense to other supplies and services expense.
(iv) The 2011–12 comparative has been adjusted for the reclassification of payments from other
supplies and services expense to technology services costs.
Note 6. Other economic flows included in net result
2013
2012
$’000
$’000
(1,351)
0
2,030
1,435
679
1,435
138
(30)
0
(1)
(2,460)
0
(a) Net gain/(loss) on non-financial assets
Impairment of intangible asset
Net gain/(loss) on disposal of property, plant and equipment
Total net gain/(loss) on non-financial assets
(b) Net gain/(loss) on financial instruments
Impairment of loans and receivables(i)
Bad debts written off by unilateral agreement
Net gain/(loss) from revaluation of financial assets at fair value
42
Total net gain/(loss) on financial instruments
2013
2012
$’000
$’000
(2,322)
(31)
1,726
(4,365)
1,296
0
3,022
(4,365)
(c) Other gains/(losses) from other economic flows
Net gain/(loss) from revaluation of long service leave liability(ii)
Net gain/(loss) from revaluation of other provision
(iii)
Total other gains/(losses) from other economic flows
(i) Includes provision for doubtful debts from other economic flows (see note 1(H)).
(ii) Revaluation gain/(loss) due to changes in bond rates.
(iii) Revaluation gain/(loss) due to changes in bond rates and actuarial assumptions.
Note 7. Restructuring of administrative arrangements
Transfer of net assets to Department of Justice
Following a review of the National Coronial Information System (NCIS) in 2011, the Board of
Management for NCIS, the Victorian Institute of Forensic Medicine and the Department of
Justice agreed to transfer the management and operation of NCIS from the Victorian Institute of
Forensic Medicine to the Department of Justice on 1 July 2012. As part of this restructure of
administrative arrangements, the department received a number of employees and equipment
from the Victorian Institute of Forensic Medicine.
The net assets transferred to the department as a result of the administrative restructure were
recognised at the carrying amount of those assets in the balance sheet immediately prior to the
transfer.
The net assets transfer was treated as a contribution of capital by the Crown in compliance with
the accounting requirements of Financial Reporting Direction 119 Contributions by Owners. No
revenue and expenditure has been recognised by the department in respect of the net assets
transferred from the Victorian Institiute of Forensic Medicine.
In respect of the activities assumed, the following assets and liabilities were recognised at the
date of transfer:
2013
2012
$’000
$’000
699
0
44
0
(121)
0
622
0
(622)
0
Controlled
Assets
Cash
Property, plant and equipment – carrying value
Liabilities
Provisions
Net assets recognised at the date of transfer
Net capital contribution from the Crown
Transfer of net assets to Victorian Responsible Gambling Foundation
Upon the commencement of the Victorian Responsible Gambling Foundation on 1 July 2012,
some of the functions previously performed by the Department of Justice were transferred to the
new statutory reporting body. As part of this restructure of administrative arrangements, the
43
department transferred a number of employees and other net assets to the Victorian
Responsible Gambling Foundation.
The net assets transferred out of the department as a result of the administrative restructure
were recognised at the carrying amount of those assets in the balance sheet immediately prior
to the transfer.
The transfer of net assets was recognised as an expense for the department (as transferor) and
as income for the Victorian Responsible Gambling Foundation (as transferee) in compliance
with the accounting requirements of Financial Reporting Direction 119 Contributions by Owners.
In respect of the activities relinquished, the following assets and liabilities were transferred at
the date of the transfer:
2013
2012
$’000
$’000
Cash
580
0
Prepayment
634
0
Payables
(446)
0
Provisions
(749)
0
19
0
(19)
0
2013
2012
$’000
$’000
Other receivables(i)
16,375
17,774
Provision for doubtful contractual receivables(i) (See also
note 8(a) below)
(1,449)
(1,587)
14,926
16,187
447,500
409,404
42,644
18,692
490,144
428,096
505,070
444,283
Controlled
Assets
Liabilities
Net assets transferred
Expense recognised at the date of transfer
Note 8. Receivables
Current receivables
Contractual
Statutory
Amounts owing from Victorian Government(ii)*
GST input tax credit recoverable
Total current receivables
* $182.288 million (2012: $165.930 million) relates to Victoria Police.
Non-current receivables
Statutory
44
2013
2012
$’000
$’000
Amounts owing from Victorian Government *
179,904
190,688
Total non-current receivables
179,904
190,688
Total receivables
684,974
634,971
(ii)
* $155.159 million (2012: $167.223 million) relates to Victoria Police.
(i) The department’s policy on the average credit period on sales of goods is 30 days. No
interest is charged on other receivables. An allowance has been made for estimated
irrecoverable amounts from the sale of goods when there is objective evidence that an
individual receivable is impaired. The increase was recognised in the net result for the current
financial year.
(ii) The amounts recognised from the Victorian Government represent funding for all
commitments incurred through the appropriations and are drawn from the Consolidated Fund as
the commitments fall due.
(a) Movement in the provision for doubtful contractual receivables
Balance at beginning of the year
Reversal of unused provision recognised in net result
Increase in provision recognised in the net result
Reversal of provision for receivables written off during the
year as uncollectible
Balance at end of the year
2013
2012
$’000
$’000
1,587
1,557
(44)
0
0
30
(94)
0
1,449
1,587
(b) Ageing analysis of contractual receivables
Please refer to note 20(b) (table 20.4) for the ageing analysis of contractual receivables.
(c) Nature and extent of risk arising from contractual receivables
Please refer to note 20 for the nature and extent of credit risk arising from contractual
receivables.
Note 9. Investments and other financial assets
2013
2012
$’000
$’000
- Term deposits(i) > 3 months
93,796
858
Total current investments and other financial assets
93,796
858
- Equity trust(ii)
76,294
0
- Fixed interest trust(ii)
39,535
0
Current investments and other financial assets
Non-current investments and other financial assets
Managed investment schemes:
45
2013
2012
$’000
$’000
17,077
0
Total non-current investments and other financial
assets
132,906
0
Total investments and other financial assets
226,702
858
- Unlisted property trust
(ii)
(i) Term deposits under ‘investments and other financial assets’ class include only term deposits
with maturity greater than 3 months.
(ii) The department designated all its managed investment schemes at fair value through profit
or loss.
(a) Ageing analysis of investments and other financial assets
Please refer to note 20(b) (table 20.4) for the ageing analysis of investments and other financial
assets.
(b) Nature and extent of risk arising from investments and other financial assets
Please refer to note 20 for the nature and extent of risks arising from investments and other
financial assets.
Note 10. Inventories
2013
2012
$’000
$’000
Supplies and consumables – at cost
2,836
2,765
Raw materials – at cost
3,216
3,039
1
391
6,053
6,195
Current inventories
Work in progress – at cost
Total inventories
Note 11. Property, plant and equipment
Classification by ‘Public Safety and Environment’ purpose group – Carrying amounts
Gross carrying
amount
Accumulated
depreciation
Net carrying
amount
2013
2012
2013
2012
2013
2012
$’000
$’000
$’000
$’000
$’000
$’000
377,506
377,396
0
0
377,506
377,396
953,612
822,632
(72,878)
(32,094)
880,734
790,538
Assets under construction at cost
425,389
159,220
0
0
425,389
159,220
Buildings leasehold at fair value(i)
743,793
848,840
(46,994)
(25,702)
696,799
823,138
Leasehold improvements at fair value(ii)
101,637
82,943
(39,574)
(30,598)
62,063
52,345
152,605
88,732
(64,884)
(56,456)
87,721
32,276
Land at fair
value(i)
Buildings at fair
value(i)
Plant and equipment at fair
value(iii)*
46
Gross carrying
amount
Plant and equipment under finance
lease at fair value(iii)
Total property, plant and equipment
Accumulated
depreciation
Net carrying
amount
28,676
29,551
(10,292)
(10,914)
18,384
18,637
2,783,218
2,409,314
(234,622)
(155,764)
2,548,596
2,253,550
(i) Fair value assessments have been performed for all classes of assets and the decision was
made that movements were not material (less than or equal to 10 per cent) for a full revaluation.
An independent valuation of the department’s land, buildings, leased buildings and cultural
assets was performed by the Valuer General in 2010–11. The next scheduled full revaluation of
the department’s land, buildings, leased buildings and cultural assets will be conducted in 2016
(refer to note 1(L)).
(ii) Fair value of leasehold improvements is depreciated cost. Expenditure is depreciated over
the life of the lease agreement, to reflect the consumption of economic resources over the
period of the agreement.
(iii) The fair value of plant and equipment is depreciated cost. This represents a reasonable
approximation of fair value as there is no evidence of a reliable market-based fair value for this
class of asset.
*The department has a number of properties listed as heritage assets which are deemed worthy
of preservation for reasons other than the financial benefits they provide to the community.
These assets are subject to restrictions on use and generally cannot be modified or disposed of
unless ministerial approval is obtained.
Classification by ‘Public Safety and Environment’ Purpose Group – Movement in
carrying amounts
Land at
fair value
Buildings Buildings
Leasehold
Plant &
at fair leasehold improvements equipment
value
at fair
at fair value at fair value
value
Leased
Assets
plant &
under
equipment construction
at fair value
at cost
Total
$’000
$’000
$’000
$’000
$’000
$’000
$’000
$’000
377,396
790,538
823,138
52,345
32,276
18,637
159,220
2,253,550
Additions
21,914
2,369
0
1,839
9,021
11,471
330,488
377,102
Disposals
0
0
0
0
0
(4,285)
0
(4,285)
Transfer out of assets under
construction
0
23,564
0
23,088
25,783
0
(72,435)
0
Revaluation of PPE(i)
0
0
0
0
0
0
0
0
Impairment of assets
(20,744)
0
0
0
0
0
0
(20,744)
Reclassification between
classes
0
99,992
(99,992)
0
0
0
2,957
2,957
Machinery of government
transfer in
0
0
0
0
44
0
0
44
Machinery of government
transfer out
0
0
0
0
0
0
0
0
Fair value of assets received
free of charge or for nominal
consideration
0
0
0
316
30,226
0
5,159
35,701
Depreciation(ii)
0
(35,729)
(26,347)
(9,344)
(9,564)
(7,199)
0
(88,183)
Transfer to disposal group
held for sale
(1,060)
0
0
0
0
(241)
0
(1,301)
Net transfers contributed
0
0
0
(6,181)
(65)
1
0
(6,245)
2013
Opening written down
balance
47
Land at
fair value
Buildings Buildings
Leasehold
Plant &
at fair leasehold improvements equipment
value
at fair
at fair value at fair value
value
Leased
Assets
plant &
under
equipment construction
at fair value
at cost
Total
capital
Closing written down
balance
377,506
880,734
696,799
62,063
87,721
18,384
425,389
2,548,596
(i) Fair value assessments have been performed for all classes of assets and the decision was
made that movements were not material (less than or equal to 10 per cent) for a full revaluation.
The next scheduled revaluation will occur in 2016 (refer to note 1(L)).
(ii) Aggregate depreciation allocated during the year is recognised as an expense and disclosed
in Note 5(b) to the financial statements.
Land at
fair value
Leased
Assets
plant &
under
equipment construction
at fair value
at cost
$’000
$’000
$’000
$’000
$’000
$’000
$’000
377,031
705,151
848,840
36,995
43,794
18,140
203,783
2012
Opening written down
balance
Buildings Buildings
Leasehold
Plant &
at fair leasehold improvements
equipment
value
at fair
at fair value at fair value
value
Total
$’000
2,233,734
Additions
340
42,805
0
4,613
3,294
13,706
49,136
113,894
Disposals
0
0
0
0
(24)
(5,094)
0
(5,118)
Transfer out of assets under
construction
0
76,799
0
16,858
42
0
(93,699)
0
(200)
14
0
0
0
0
0
(186)
Impairment of assets
0
(4,643)
0
0
0
0
0
(4,643)
Reclassification between
classes
0
0
0
0
(5,423)
0
0
(5,423)
Machinery of government
transfer in
0
0
0
0
0
0
0
0
Machinery of government
transfer out
0
0
0
0
(34)
0
0
(34)
Fair value of assets received
free of charge or for nominal
consideration
0
0
0
0
0
0
0
0
Depreciation
0
(29,800)
(25,702)
(6,111)
(9,350)
(7,412)
0
(78,375)
Transfer to disposal group
held for sale
0
0
0
0
0
(703)
0
(703)
Net transfers contributed
capital
225
212
0
(10)
(23)
0
0
404
377,396
790,538
823,138
52,345
32,276
18,637
159,220
Revaluation of PPE
Closing written down
balance
2,253,550
Aggregate depreciation allocated during the year is recognised as an expense and disclosed in
Note 5(b) to the financial statements.
Note 12. Intangible assets
2013
2012
$’000
$’000
Gross carrying amount
48
2013
2012
$’000
$’000
108,343
78,674
7,558
5,904
Reclassification from/(to) plant and equipment
(2,957)
5,423
Net additions to/(from) software works in progress
19,082
18,342
Impairment
(1,352)
0
130,674
108,343
Opening balance
16,947
12,487
Amortisation expense(i)
11,198
4,460
Closing balance
28,145
16,947
102,529
91,396
Opening balance
Additions
Closing balance
Accumulated amortisation
Net book value at end of financial year
(i) The consumption of intangible produced assets is included in the ‘depreciation and
amortisation’ expense line item in note 5(b) and the comprehensive operating statement.
Significant intangible asset additions
The department has capitalised $4.289 million of expenditure on the Location Based
Emergency Warning System software associated with the existing bushfire emergency warning
system. This is an enhancement to the existing emergency alert system.
Note 13. Payables
2013
2012
$’000
$’000
Trade creditors and other payables(i)(ii)(iii)
114,047
101,266
Accrued capital works
279,926
24,775
Salaries and wages
8,953
6,733
Departure packages
933
0
403,859
132,774
4,198
4,181
855
878
218,843
200,588
223,896
205,647
627,755
338,421
Current payables
Contractual
Statutory
Payroll tax(iii)
Fringe benefits tax
Amounts payable to government agencies*
Total current payables
* $182.288 million (2012: $165.930 million) relates to Victoria Police.
49
2013
2012
$’000
$’000
Amounts payable to government agencies *
155,159
167,223
Total non-current payables
155,159
167,223
Total payables
782,914
505,644
Non-current payables
Statutory
* $155.159 million (2012: $167.223 million) relates to Victoria Police.
(i) The department’s policy on the average credit period is 30 days.
(ii) This amount includes accrued expenses and other payables.
(iii) The 2011–12 comparative has been adjusted for the reclassification of payroll tax from
contractual to statutory payables.
(a) Maturity analysis of contractual payables
Please refer to note 20(c) (table 20.5) for the maturity analysis of contractual payables.
(b) Nature and extent of risk arising from contractual payables
Please refer to note 20 for the nature and extent of risks arising from contractual payables.
Note 14. Borrowings
2013
2012
$’000
$’000
Lease liabilities(i) (note 17)
28,879
31,110
Total current borrowings
28,879
31,110
Lease liabilities(i) (note 17)
311,139
330,472
Total non-current borrowings
311,139
330,472
Total borrowings
340,018
361,582
Current borrowings
Non-current borrowings
(i) Secured by the assets leased. Finance leases are effectively secured as the rights to the
leased assets revert to the lessor in the event of default.
(a) Maturity analysis of borrowings
Please refer to note 20(c) (table 20.5) for the maturity analysis of borrowings.
(b) Nature and extent of risk arising from borrowings
Please refer to note 20 for the nature and extent of risk arising from borrowings.
(c) Defaults and breaches
During the current and prior years, there were no defaults and breaches of any of the loans.
50
Note 15. Provisions
2013
2012
$’000
$’000
Current provisions
Employee benefits(i) (note 15(a)) – annual leave:
- Unconditional and expected to be settled within 12 months(ii)
- Unconditional and expected to be settled after 12 months
(iii)
38,810 37,043
5,785
5,428
Employee benefits(i) (note 15(a)) – long service leave:
- Unconditional and expected to be settled within 12 months(ii)
52,026 51,928
- Unconditional and expected to be settled after 12 months(iii)
34,304 30,430
130,92 124,82
5
9
Provisions related to employee benefit on-costs (note 15(a) and (b)):
- Unconditional and expected to be settled within 12 months(ii)
- Unconditional and expected to be settled after 12 months(iii)
Other provisions
18,014 16,221
6,474
5,650
287
279
24,775 22,150
Total current provisions
155,70 146,97
0
9
Non-current provisions
Employee benefits(i) (note 15(a))
23,747 26,049
Provisions related to employee benefits on-costs (note 15(a) and (b))
3,237
3,577
Other provisions
8,090
9,284
Total non-current provisions
35,074 38,910
Total provisions
190,77 185,88
4
9
(a) Employee benefits(i) and related on-costs
Current employee benefits
Annual leave entitlements
56,096 52,742
Long service leave entitlements
74,829 72,087
130,92 124,82
5
9
Non-current employee benefits
Long service leave entitlements
23,747 26,049
Total employee benefits
154,67 150,87
2
8
Current on-costs
24,488 21,871
Non-current on-costs
3,237
3,577
51
2013
2012
$’000
$’000
Total on-costs
27,725 25,448
Total employee benefits and related on-costs
182,39 176,32
7
6
(i) Provisions for employee benefits consist of amounts for annual leave and long service leave
accrued by employees, not including on-costs.
(ii) The amounts disclosed are nominal amounts.
(iii) The amounts disclosed are discounted to present value.
(b) Movement in provisions
2013
Employee benefit
on-costs
Other
provisions
Total
$’000
$’000
$’000
Opening balance
25,448
9,563
35,011
Additional provisions recognised
16,021
394
16,415
(13,744)
(284)
(14,028)
0
(1,296)
(1,296)
Closing balance
27,725
8,377
36,102
Current
24,488
287
24,775
3,237
8,090
11,327
Employee benefit
on-costs
Other
provisions
Total
$’000
$’000
$’000
Opening balance
24,242
0
24,242
Additional provisions recognised
13,406
9,563
22,969
(12,200)
0
(12,200)
0
0
0
Closing balance
25,448
9,563
35,011
Current
21,871
279
22,150
3,577
9,284
12,861
Reductions arising from
payments/other sacrifices of future
economic benefits
Unwind of discount and effect of
changes in the discount rate
Non-current
2012
Reductions arising from
payments/other sacrifices of future
economic benefits
Unwind of discount and effect of
changes in the discount rate
Non-current
52
Note 16. Superannuation
Employees of the department are entitled to receive superannuation benefits and the
department contributes to both defined benefit and defined contribution plans. The defined
benefit plans provides benefits based on years of service and final average salary.
The department does not recognise any defined benefit liability in respect of the plan(s)
because the entity has no legal or constructive obligation to pay future benefits relating to its
employees; its only obligation is to pay superannuation contributions as they fall due. The
Department of Treasury and Finance recognises and discloses the state’s defined benefit
liabilities in its disclosure for administered items.
However, superannuation contributions paid or payable for the reporting period are included as
part of employee benefits in the comprehensive operating statement of the department.
The name, details and amounts expensed in relation to the major employee superannuation
funds and contributions made by the department are as follows:
Fund
Paid contribution for
the year
Contribution
outstanding at year
end
2013
2012
2013
2012
$’000
$’000
$'000
$'000
8,274
8,983
21
0
34,211
33,529
92
0
7,365
6,700
22
0
49,850
49,212
135
0
Defined benefit plans:
Emergency Services and State
Super
- revised and new
Defined contribution plans:
VicSuper
Various other
Total
The basis for contributions is determined by the various schemes.
Note 17. Leases
Leasing arrangements
As part of the Corrections’ Long Term Management Strategy, the state entered into a 25 year
public private partnership (PPP) arrangement for the design, construction and maintenance of
two prisons, Marngoneet Correctional Centre and Metropolitan Remand Centre. The
Marngoneet Correctional Centre is a medium security facility located at Lara, providing intensive
treatment and offender management programs for males who are at moderate to high risk of reoffending. The Metropolitan Remand Centre is a maximum security facility located at Ravenhall
for unsentenced male prisoners. The finance leases for the provision of these prison facilities
end in 2031, and are disclosed in the table below. The commitments for facilities maintenance
and security services, which also expire in 2031, are disclosed in note 18.
The state also entered into finance leases for the provision of prison facilities for 20 years at
Fulham Correctional Centre and 15 years at Port Phillip Prison. Fulham Correctional Centre
accommodates predominantly mainstream sentenced prisoners. Port Phillip Prison is a
maximum security facility providing remand, mainstream, protection and specialist
accomodation for prisoners. The finance lease for Fulham’s prison facilities ends in 2017, and is
disclosed in the table below. The finance lease for Port Phillip’s prison facilities ended in
September 2012, and the asset reverted to the state. The commitments for facilities
53
maintenance and correctional services for both prisons, which expire in 2017, are disclosed in
note 18.
The state has also entered into a 20 year contract with the private sector for the design,
construction and management of the County Court. The facility will provide the County Court
and court users with accommodation services at the facility throughout the term of the contract,
which ends in 2022. The finance lease for these facilities are disclosed in the table below. The
operation and maintenance commitments are disclosed in note 18.
Finance lease liabilities payable
Minimum future
lease payments
Present value of
minimum future
lease payments
2013
2012
2013
2012
$’000
$’000
$’000
$’000
50,695
53,675
19,380
21,144
Longer than 1 year and not longer than
5 years
199,161
205,379
87,903
88,396
Longer than 5 years
456,874
501,098
213,975
232,610
706,730
760,152
321,258
342,150
10,382
10,863
9,500
9,965
9,744
10,048
9,260
9,467
0
0
0
0
20,126
20,911
18,760
19,432
726,856
781,063
340,018
361,582
(386,838) (419,481)
0
0
340,018
361,582
28,879
31,110
311,139
330,472
340,018
361,582
PPP related finance lease liabilities
payable
Not longer than 1 year
Other finance lease liabilities payable
Not longer than 1 year
Longer than 1 year and not longer than
5 years
Longer than 5 years
Minimum future lease payments*
Less future finance charges
Present value of minimum lease
payments
340,018
361,582
Included in the financial statements as:
Current borrowings lease liabilities
(note 14)
Non-current borrowings lease liabilities (note 14)
* Minimum future lease payments include the aggregate of all lease payments and any
guaranteed residual.
(a) Maturity analysis of finance lease liabilities
Please refer to note 20(c) (table 20.5) for the maturity analysis of finance lease liabilities.
(b) Nature and extent of risk arising finance lease liabilities
54
Please refer to notes 20(c) and (d) for the nature and extent of risk arising from finance lease
liabilities.
Note 18. Commitments for expenditure
(a) Commitments other than public private partnerships
($’000)
2013
2012
Nominal
value
Nominal
value
Property, plant and equipment
323,450
795,999
Total capital expenditure commitments
323,450
795,999
Software
37,216
22,216
Total intangible asset commitments
37,216
22,216
298,253
297,831
475
562
298,728
298,393
Prison operation and maintenance contracts
454,410
466,175
Infringement Management and Enforcement Services
contracts
122,655
164,887
68,108
102,295
173,018
207,013
Working with children contracts
32,375
39,925
Other
45,624
54,927
896,190
1,035,222
1,555,584
2,151,830
Capital expenditure commitments(i)(ii)
Intangible asset commitments(ii)
Operating lease commitments(iii)
Accomodation leases
Other
Total operating lease commitments
Outsourcing commitments
Traffic camera services contracts
Health services contracts
Total outsourcing commitments
Total commitments other than public private
partnerships
(i) The movement in capital expenditure commitments reflects the revised agreement for the
Ararat Prison redevelopment whereby the timing of the quarterly capital payments over the
contract term changed to comprise two payments at completion of stage 1 and stage 2 of the
prison.
(ii) The 2011–12 comparative has been adjusted for the reclassification of item from capital to
intangible asset commitments.
(iii) The 2011–12 comparative has been adjusted for the reclassification of make good
provisions as contingent liabilities.
(b)Public private partnerships (i)(ii)
55
($’000)
2013
2012
Net Nominal
present
value
value
Net Nominal
present
value
value
Commissioned public private
partnerships –
operation and maintenance
commitments
Private Prisons(iii)
372,777 389,589 253,047 278,119
46,506
County Court
Total commissioned public private
partnerships – operation and
maintenance commitments
47,971
49,268
52,729
419,283 437,560 302,315 330,848
(i) The present values of the minimum lease payments for commissioned public private
partnerships (PPPs) are recognised on the balance sheet and are not disclosed as
commitments.
(ii) Refer to note 17 for further details on the commissioned public private partnership projects.
This note discloses only other operating and maintenance commitments for these projects.
(iii) The contract for Fulham prison’s operation and maintenance commitments has been
renewed and ends in April 2017.
(c) Commitments payable (i)
($’000)
2013
2012
Nominal
value
Nominal
value
Less than 1 year
184,727
58,715
Longer than 1 year and not longer than 5 years
138,723
175,853
0
561,431
323,450
795,999
37,216
22,216
Longer than 1 year and not longer than 5 years
0
0
Longer than 5 years
0
0
37,216
22,216
42,420
41,041
Longer than 1 year and not longer than 5 years
143,891
128,927
Longer than 5 years
112,417
128,425
Total operating lease commitments
298,728
298,393
Capital expenditure commitments payable(ii)(iii)
Longer than 5 years
Total capital expenditure commitments
Intangible assets commmitments payable(iii)
Less than 1 year
Total intangible assets commitments
Operating lease commitments payable(iv)
Less than 1 year
56
($’000)
2013
2012
Nominal
value
Nominal
value
Less than 1 year
171,969
170,268
Longer than 1 year and not longer than 5 years
314,911
443,414
Longer than 5 years
409,310
421,540
Total outsourcing commitments
896,190
1,035,222
Outsourcing commitments payable
Public private partnership operation and maintenance commitments payable(v)
Less than 1 year
116,795
103,287
Longer than 1 year and not longer than 5 years
162,851
55,291
Longer than 5 years
157,914
172,270
Total public private partnership operation and
maintenance commitments
437,560
330,848
1,993,144
2,482,678
Total commitments
(i) For future finance lease payments refer to note 17.
(ii) The movement in capital expenditure commitments reflects the revised agreement for the
Ararat Prison redevelopment whereby the timing of the quarterly capital payments over the
contract term changed to comprise two payments at completion of stage 1 and stage 2 of the
prison.
(iii) The 2011–12 comparative has been adjusted for the reclassification of item from capital to
intangible asset commitments.
(iv) The 2011–12 comparative has been adjusted for the reclassification of make good
provisions as contingent liabilities.
(v) The contract for Fulham prison’s operation and maintenance commitments has been
renewed and ends in April 2017.
Note 19. Contingent assets and contingent liabilities
2013
2012
$’000
$’000
2,516
2,675
Liabilities pending the outcome of legal action
11,312
3,475
Pending criminal injuries claims
41,000
52,500
54,828
58,650
Contingent assets
Nil contingent assets
Contingent liabilities
Make good provisions
57
The Victims of Crime Assistance Tribunal was established under the Victims of Crime
Assistance Act 1996 and came into operation on 1 July 1997. The tribunal was set up to help
victims of crime recover from the act of violence to which they had been subjected and to assist
with expenses that have resulted from the crime.
The above pending criminal injuries claims is the estimated amount of financial award that will
be paid on pending claims.
Unquantifiable contingent liability
Native Title
A number of claims have been filed with the Federal Court under the Commonwealth Native
Title Act 1993 that affect Victoria. It is not feasible at this time to quantify any future liability.
Note 20. Financial instruments
(a) Financial risk management objectives and policies
The department’s principal financial instruments comprise of:
 cash assets
 term deposits
 receivables (excluding statutory receivables)
 managed investment schemes
 payables (excluding statutory payables)
 finance lease payables.
Details of the significant accounting policies and methods adopted, including the criteria for
recognition, the basis of measurement, and the basis on which income and expenses are
recognised, with respect of each class of financial asset, financial liability and equity instrument
are disclosed in note 1 to the financial statements.
The main purpose in holding financial instruments is to prudentially manage the department’s
financial risk within the government policy parameters.
The department’s main financial risks include credit risk, liquidity risk, interest rate risk, and
equity price risk. The department manages these financial risks in accordance with its financial
risk management policy.
The department uses different methods to measure and manage the different risks to which it is
exposed. Primary responsibility for the identification and management of financial risks rests
with the Department of Justice Finance Committee.
The carrying amounts of the department’s financial assets and financial liabilities by category
are in Table 20.1 below.
Categorisation of financial instruments(i)(ii)
Table 20.1
($’000)
2013
Contractual financial
assets/liabilities
designated at fair value
through profit or loss
Contractual
Contractual
financial assets
financial
– loans and
liabilities at
receivables amortised cost
Total
Contractual financial assets
Cash and deposits
0
233,940
0
233,940
Receivables
0
14,926
0
14,926
132,906
0
0
132,906
0
93,796
0
93,796
Investments and other contractual financial assets:
Managed investment schemes
Term deposits > 3 months
58
($’000)
2013
Total contractual financial assets
Contractual financial
assets/liabilities
designated at fair value
through profit or loss
Contractual
Contractual
financial assets
financial
– loans and
liabilities at
receivables amortised cost
Total
132,906
342,662
0
475,568
Trade creditors and other payables
0
0
114,047
114,047
Accrued capital works
0
0
279,926
279,926
Salary and wages
0
0
8,953
8,953
Departure Packages
0
0
933
933
Lease liabilities
0
0
340,018
340,018
Total contractual financial liabilities
0
0
743,877
743,877
Contractual financial
assets/liabilities
designated at fair value
through profit or loss
Contractual
financial assets
– loans and
receivables
Contractual
financial
liabilities at
amortised cost
Total
Cash and deposits
0
455,942
0
455,942
Receivables
0
16,187
0
16,187
Managed investment schemes
0
0
0
0
Term deposits > 3 months
0
858
0
858
Total contractual financial assets
0
472,987
0
472,987
Trade creditors and other payables
0
0
101,266
101,266
Accrued capital works
0
0
24,775
24,775
Salary and wages
0
0
6,733
6,733
Lease liabilities
0
0
361,582
361,582
Total contractual financial liabilities
0
0
494,356
494,356
Contractual financial liabilities
Payables:
Borrowings:
($’000)
2012
Contractual financial assets
Investments and other contractual financial assets:
Contractual financial liabilities
Payables:
Borrowings:
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) Amounts disclosed in this table exclude statutory amounts (e.g. amounts owing from
Victorian Government and GST input tax credit recoverable and tax payable).
Net holding gain/(loss) on financial instruments by category
Table 20.2
($’000)
2013
Net holding
gain/(loss)
Total interest
income/(expense)
Total
Contractual financial assets
59
($’000)
2013
Net holding
gain/(loss)
Total interest
income/(expense)
Total
(2,460)
0
(2,460)
138
13,760
13,898
(2,322)
13,760
11,438
At amortised cost
0
33,439
33,439
Total contractual financial liabilities
0
33,439
33,439
Designated at fair value through profit or loss
Loans and receivables (at amortised cost)
Total contractual financial assets
Contractual financial liabilities
($’000)
2012
Net holding
gain/(loss)
Total interest
income/(expense)
Total
Contractual financial assets
Designated at fair value through profit or loss
0
0
0
Loans and receivables (at amortised cost)
(22)
19,057
19,035
Total contractual financial assets
(22)
19,057
19,035
At amortised cost
0
35,252
35,252
Total contractual financial liabilities
0
35,252
35,252
Contractual financial liabilities
The net holding gains or losses disclosed above are determined as follows:
 for cash and deposits, and loans or receivables, the net gain or loss is calculated by taking
the movement in the fair value of the asset, the interest income, and minus any impairment
recognised in the net result
 for financial liabilities measured at amortised cost, the net gain or loss is the interest
expense
 for financial assets designated at fair value through profit or loss, the net gain or loss is
calculated by taking the movement in the fair value of the financial asset.
(b) Credit risk
Credit risks arise from the contractual financial assets of the department, which comprises of
cash and deposits, non-statutory receivables and investments and other contractual financial
assets. The department’s exposure to credit risk arises from the potential default of a
counterparty on their contractual obligations resulting in financial loss to the department. Credit
risk is measured at fair value and is monitored on a regular basis.
Credit risk associated with the department’s contractual financial assets is minimal because the
main debtor is the Victorian Government. Credit risk in relation to receivables is also monitored
by management by reviewing the ageing of receivables on a monthly basis.
In addition, the department does not engage in hedging for its contractual financial assets and
mainly obtains contractual financial assets that are on fixed interest, except for cash assets,
which are mainly cash at bank.
Credit risk in relation to the department’s investments and other contractual financial assets is
managed by Treasury Corporation Victoria and the Victorian Funds Management Corporation.
Provision of impairment for contractual financial assets is recognised when there is objective
evidence that the department will not be able to collect on a receivable. Objective evidence
includes financial difficulties of the debtor, default payments, debts which are more than 60 days
overdue, and changes in debtor credit ratings.
60
Except as otherwise detailed in the following table, the carrying amount of contractual financial
assets recorded in the financial statements, net of any allowances for losses, represents the
department’s maximum exposure to credit risk without taking account of the value of any
collateral obtained.
Credit quality of contractual financial assets that are neither past due nor impaired(i)(ii)
Table 20.3
($’000)
Financial institutions
Government agencies
Other
Total
(2,129)
53,416
182,653
233,940
3,051
4,456
3,134
10,641
0
0
226,702
226,702
922
57,872
412,489
471,283
(2,658)
458,600
0
455,942
4,667
6,785
119
11,571
0
858
0
858
2,009
466,243
119
468,371
2013
Cash and deposits
Receivables
Investments and other financial assets
Total contractual financial assets
2012
Cash and deposits
Receivables
Investments and other financial assets
Total contractual financial assets
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) The total amounts disclosed here exclude statutory amounts (e.g. amounts owing from
Victorian Government and GST input tax credit recoverable).
Contractual financial assets that are either past due or impaired
There are no material financial assets which are individually determined to be impaired.
Currently the department does not hold any collateral as security nor credit enhancements
relating to any of its financial assets.
There are no financial assets that have had their terms renegotiated so as to prevent them from
being past due or impaired, and they are stated at the carrying amounts as indicated.
The ageing analysis table below discloses the ageing only of contractual financial assets that
are past due but not impaired.
Ageing analysis of contractual financial assets(i)
Table 20.4
($’000)
Carrying
amount
Not past
due and
not
impaired
Past due but not impaired
3,051
3,051
0
0
0
0
11,875
7,590
842
2,220
1,088
135
132,906
132,906
0
0
0
0
93,796
93,796
0
0
0
0
241,628
237,343
842
2,220
1,088
135
Less
than
1 month
1 to 3 3 months
months to 1 year
1 to 5
years
2013
Receivables:
Accrued interest
Other receivables
Investments and other contractual financial assets
Managed investment schemes
Term deposits
2012
61
($’000)
Carrying
amount
Not past
due and
not
impaired
Past due but not impaired
4,667
4,667
0
0
0
0
11,520
6,904
2,559
1,096
306
655
858
858
0
0
0
0
17,045
12,429
2,559
1,096
306
655
Less
than
1 month
1 to 3 3 months
months to 1 year
1 to 5
years
Receivables:
Accrued interest
Other receivables
Investments and other contractual financial assets
Term deposits
(i) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from
Victorian Government and GST input tax credit recoverable).
(c) Liquidity risk
Liquidity risk arises when the department is unable to meet its financial obligations as they fall
due. The department operates under the government’s fair payments policy of settling financial
obligations within 30 days and in the event of a dispute, making payments within 30 days from
the date of resolution.
The department’s maximum exposure to liquidity risk is the carrying amounts of financial
liabilities as disclosed in the balance sheet. The exposure to liquidity risk is deemed insignificant
based on prior periods’ data and current assessment of risk.
The carrying amount detailed in the following table of contractual financial liabilities recorded in
the financial statements represents the department’s maximum exposure to liquidity risk.
Table 20.5 discloses the contractual maturity analysis for the department’s contractual financial
liabilities.
Maturity analysis of contractual financial liabilities(i)(ii)
Table 20.5
($’000)
Carrying
amount
Nominal
amount
403,859
Maturity dates (i)
Less
than 1
month
1 to 3
months
3 months
to 1 year
1 to 5
years
Greater
than 5
years
403,859
166,564
80
237,215
0
0
340,018
726,856
6,286
9,902
44,889
208,905
456,874
743,877
1,130,715
172,850
9,982
282,104
208,905
456,874
132,774
132,774
131,010
1,261
503
0
0
361,582
781,063
7,871
11,828
44,839
215,427
501,098
494,356
913,837
138,881
13,089
45,342
215,427
501,098
2013
Contractual payables:
Other payables
Borrowings:
Lease liabilities
2012
Contractual payables:
Other payables
Borrowings:
Lease liabilities
(i) Maturity analysis is presented using the contractual undiscounted cash flow.
(ii) The carrying amounts disclosed exclude statutory amounts (e.g. GST payable).
62
(d) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. The department’s exposures to market risk are
insignificant and primarily through interest rate risk and equity price risk, with only minimal
exposure to foreign currency risk.
Foreign currency risk
The department is not exposed to significant foreign currency risk through its payables relating
to purchases of supplies from overseas. This is because of a limited amount of purchases
denominated in foreign currencies and a short timeframe between commitment and settlement.
Interest rate risk
Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate
because of changes in market interest rates. The department does not hold any interest bearing
financial instruments that are measured at fair value, and therefore has no exposure to fair
value interest rate risk.
Cash flow interest rate risk is the risk that future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.
The department has minimal exposure to cash flow interest rate risks through its cash and
deposits that are at floating rate. Management has concluded for cash at bank, it can be left at
floating rate without necessarily exposing the department to significant risk. Management
monitors movement in interest rates on a regular basis.
Interest rate exposures are insignificant and arise predominantly from assets bearing variable
interest rates. The aim is to reduce risk by implementing a duration limits policy and restricting
exposure to illiquid, long dated floats. Minimisation of risk on financial liabilities is achieved by
undertaking fixed rate finance lease arrangements.
The carrying amounts of financial assets and financial liabilities that are exposed to interest
rates are set out in Table 20.6.
Equity price risk
The department is exposed to equity price risk through its managed investment schemes. The
department appointed the Victorian Funds Management Corporation to manage its investment
portfolio in accordance with the Investment Risk Management Plan approved by the Treasurer.
The fund manager on behalf of the department closely monitors performance and manages the
equity price risk through diversification of its investment portfolio.
Interest rate exposure of financial instruments(i)(ii)
Table 20.6
($’000)
Weighted
average
effective
interest rate
%
Carrying
amount
3.38%
Interest rate exposure
Fixed
interest
rate
Variable
interest
rate
Noninterest
bearing
233,940
195,339
1,037
37,564
2013
Financial assets
Cash and deposits
Receivables:
Accrued interest
3.11%
Other receivables
Investment and other contractual financial assets
Total financial assets
3.58%
3,051
3,051
0
0
11,875
0
0
11,875
226,702
93,796
0
132,906
475,568
292,186
1,037
182,345
63
($’000)
Weighted
average
effective
interest rate
%
Carrying
amount
Interest rate exposure
Fixed
interest
rate
Variable
interest
rate
Noninterest
bearing
8,571
0
0
8,571
395,288
0
0
395,288
340,018
340,018
0
0
743,877
340,018
0
403,859
3.20%
455,942
400,880
55,062
0
3.80%
4,667
4,667
0
0
11,520
0
0
11,520
858
858
0
0
472,987
406,405
55,062
11,520
Financial liabilities
Payables:
Amounts payable to government agencies
Other payables
Borrowings:
8.77%
Lease liabilities
Total financial liabilities
2012
Financial assets
Cash and deposits
Receivables:
Accrued interest
Other receivables
Investment and other contractual financial assets
4.33%
Total financial assets
Financial liabilities
Payables:
Amounts payable to government agencies
Other payables
9,918
0
0
9,918
122,856
0
0
122,856
361,582
361,582
0
0
494,356
361,582
0
132,774
Borrowings:
Lease liabilities
8.81%
Total financial liabilities
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from
Victorian Government, GST input tax credit recoverable, and GST payable).
Taking into account past performance, future expectations, economic forecasts and fund
managers’ knowledge and experience of the financial markets, the department believes the
following movements are ‘reasonably possible’ over the next 12 months:
Market risk sensitivity
Table 20.7
($’000)
2013
Carrying
amount
Interest rate risk
Net
result
Other price risk
Equity
Net
result
Equity
Net
result
Equity
Net
result
Equity
(+)1.0% (+)1.0%
(-)1.0%
(-)1.0%
(+)10%
(+)10%
(-)10%
(-)10%
Contractual financial assets:
1,037
10
0
(10)
0
0
0
0
0
Equity trust
76,294
0
0
0
0
7,629
7,629
(7,629)
(7,629)
Fixed interest trust
39,535
0
0
0
0
3,954
3,954
(3,954)
(3,954)
Cash and deposits
64
17,077
0
0
0
0
1,708
1,708
(1,708)
(1,708)
133,943
10
0
(10)
0
13,291
13,291
(13,291)
(13,291)
Unlisted property trust
Total impact
($’000)
2012
Carrying
amount
Interest rate risk
Net
result
Other price risk
Equity
Net
result
Equity
Net
result
Equity
Net
result
Equity
(+)1.0% (+)1.0%
(-)1.0%
(-)1.0%
(+)10%
(+)10%
(-)10%
(-)10%
Contractual financial assets:
Cash and deposits(i)
55,062
551
0
(551)
0
0
0
0
0
Equity trust
0
0
0
0
0
0
0
0
0
Fixed interest trust
0
0
0
0
0
0
0
0
0
Unlisted property trust
0
0
0
0
0
0
0
0
0
55,062
551
0
(551)
0
0
0
0
0
Total impact
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(e) Fair Value
The fair values and net fair values of financial instrument assets and liabilities are determined
as follows:
Level 1 – the fair value of financial instrument with standard terms and conditions and traded in
active liquid markets are determined with reference to quoted market prices;
Level 2 – the fair value is determined using inputs other than quoted prices that are observable
for the financial asset or liability, either directly or indirectly; and
Level 3 – the fair value is determined in accordance with generally accepted pricing models
based on discounted cash flow analysis using unobservable market inputs.
The department’s managed investment schemes are within level 2 of the fair value hierarchy.
The department considers that the carrying amount of financial assets and liabilities recorded in
the financial statements to be a fair approximation of their fair values, because of the short term
nature of the financial instruments and the expectation that they will be paid in full.
The following table shows that the fair values of the contractual financial assets and liabilities
are the same as the carrying amounts.
Comparison between carrying amount and fair value(i)(ii)
Table 20.8
($’000)
Carrying amount
Fair value
Carrying amount
Fair value
2013
2013
2012
2012
233,940
233,940
455,942
455,942
3,051
3,051
4,667
4,667
11,875
11,875
11,520
11,520
Investment and other contractual financial
assets
226,702
226,702
858
858
Total contractual financial assets
475,568
475,568
472,987
472,987
Contractual financial assets
Cash and deposits
Receivables:
Accrued interest
Other receivables
Contractual financial liabilities
Payables:
65
($’000)
Carrying amount
Fair value
Carrying amount
Fair value
2013
2013
2012
2012
8,571
8,571
9,918
9,918
395,288
395,288
122,856
122,856
Lease liabilities
340,018
340,018
361,582
361,582
Total contractual financial liabilities
743,877
743,877
494,356
494,356
Amounts payable to government agencies
Other payables
Borrowings:
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(ii) The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from
Victorian Government, GST input tax credit recoverable, and GST payable).
Note 21. Cash flow information
(a) Reconciliation of cash and cash equivalents
For the purposes of the cash flow statement and balance sheet, cash includes cash on hand
and in banks and investments in term deposits of less than three months, net of outstanding
bank overdrafts. Cash at the end of the financial year as shown in the cash flow statement is
reconciled to the related items in the balance sheet as follows:
Cash (i)
Funds held in trust
(ii)
- cash
(iii)
- term deposits
2013
2012
$’000
$’000
(2,034)
(2,564)
40,992
57,626
194,982
400,880
233,940
455,942
The above figures are reconciled to cash at the end of the financial year as shown in the cash
flow statement as follows:
Balance as per cash flow statement
233,940
455,942
533
533
12,539
12,668
1,475
948
17,582
40,089
162,853
346,642
Term deposits comprise the following:
Victorian Consumer Law Fund
Domestic Builders Fund
National Gambling Research Trust
Residential Tenancies Fund
Victorian Property Fund
194,982
400,880
(i) Due to the State of Victoria’s investment policy and government funding arrangements,
government departments generally do not hold a large cash reserve in their bank accounts.
Cash received by a department from the generation of revenue is generally paid into the State’s
bank account, known as the Public Account. Similarly, any departmental expenditure, including
those in the form of cheques drawn by the department for the payment of goods and services to
its suppliers and creditors are made via the Public Account. The process is such that, the Public
Account would remit to the department the cash required for the amount drawn on the cheques.
This remittance by the Public Account occurs upon the presentation of the cheques by the
department’s suppliers or creditors.
The above funding arrangements often result in departments having a shortfall in the cash at
bank required for payment of unpresented cheques at the reporting date.
66
At 30 June 2013, cash at bank includes the amount of a shortfall for the payment of
unpresented cheques of $1.758 million (2012: $2.240 million).
(ii) Funds held in trust are quarantined for use specifically for the purposes under which each
trust fund has been established and is not used for operating purposes.
(iii) The 2011–12 comparative has been adjusted (refer to note 1U).
(b) Reconciliation of net result for the period
2013
2012
$’000
$’000
42,561
37,328
Net (gain)/loss on disposal of non-current assets
(2,030)
(1,435)
Depreciation and amortisation of non-current assets
99,381
82,835
1,351
0
(35,701)
0
Allowance for doubtful debts
(138)
30
Net (gain)/loss from revaluation of financial assets at fair value
2,460
0
Decrease/(increase) in receivables
(49,826)
1,376
Decrease/(increase) in inventories
142
(268)
Decrease/(increase) in prepayments
345
3,251
Increase/(decrease) in payables
22,078
(31,594)
Increase/(decrease) in provisions
4,885
27,859
85,508
119,382
2013
2012
$’000
$’000
979,978
984,807
Balance at beginning of financial year
241,200
241,400
Revaluation increment/(decrement) during the year
(20,745)
(200)
Balance at end of financial year
220,455
241,200
738,778
743,407
0
14
Net result for the period
(i)
Non-cash movements:
Impairment of non-current assets
Resources received free of charge or for nominal consideration
Movements in operating assets and liabilities:
Net cash flows from/(used in) operating activities
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
Note 22. Physical asset revaluation surplus
Physical asset revaluation surplus:
(i)
Balance at beginning of financial year
Land
Buildings
Balance at beginning of financial year
Revaluation increment/(decrement) during the year
67
2013
2012
$’000
$’000
0
(4,643)
Balance at end of financial year
738,778
738,778
Total physical asset revaluation surplus
959,233
979,978
Net change in physical asset revaluation surplus
(20,745)
(4,829)
Impairment losses
(i) The physical asset revaluation surplus arises from the revaluation of land and buildings.
68
Note 23. Summary of compliance with annual parliamentary appropriations and special appropriations
(a) Summary of compliance with annual parliamentary appropriations
The following table discloses the details of the various parliamentary appropriations received by the department for the year. In accordance with accrual output-based
management procedures ‘provision of outputs’ and ‘additions to net assets’ are disclosed as ‘controlled’ activities of the department. Administered transactions are those that
are undertaken on behalf of the State over which the department has no control or discretion.
APPROPRIATION ACT
Annual Appropriation
$’000
FINANCIAL MANAGEMENT ACT 1994
Advance from
Treasurer
$’000
Section 3(2)
Section 29
Section 30
Section 32
$’000
$’000
$’000
$’000
Section 35
Advances
$’000
Total Parliamentary
Authority
$’000
Appropriations
Applied
$’000
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
2012
2013
3,982,759
3,837,908
42,614
7,351
1,101
0
238,663
242,705
(61,737)
(42,419)
95,812
96,140
0
0
4,299,211
4,141,685
949
927
0
0
0
0
0
0
(158)
(33)
0
0
0
0
791
894
3,983,708
3,838,835
42,614
7,351
1,101
0
238,663
242,705
(61,895)
(42,452)
95,812
96,140
0
0
4,300,002
4,142,579
242,488
203,982
0
0
0
0
10,090
5,882
61,895
42,452
53,908
38,097
0
0
368,381
290,413
114,876
54,461
54,461
0
0
0
0
0
0
0
0
0
0
0
0
54,461
54,461
35,420
4,280,657
4,097,278
42,614
7,351
1,101
0
248,753
248,587
0
0
149,720
134,237
0
0
4,722,844
4,487,453
Variance
$’000
2012
2013
4,156,875 3,976,514
142,336
2012
Controlled
Provision of outputs
Victorian Law Reform
Commission
Additions to net
assets
791
165,171 (i)
894
0
0
4,157,666 3,977,408
142,336
165,171
144,422
253,505
145,991 (ii)
41,149
19,041
13,312 (iii)
4,307,962 4,162,979
414,882
Administered
Payments made on
behalf of the State
Total
324,474
69
(a) Summary of compliance with annual parliamentary appropriations (continued)
(i) Provision of outputs (including Victorian Law Reform Commission)
The majority of the $142.336 million variance (2012: $165.171 million) relates to rephasing and
carryover of output appropriations from 2012–13 to 2013–14.
The primary drivers of the rephasing and carryover are:
 Emergency Alert Location Based Capability – the project is to develop and implement
enhancements to the existing Emergency Alert system. The project is to be completed by
December 2013. Carryover funding is required for the state’s contribution to the
development of the software.
 Regional Racing Infrastructure Fund and the Victorian Racing Industry Fund – the timing of
certain projects will extend beyond the 2012–13 financial year in which they are
approved/initially anticipated to occur. While funds are committed, the precise timing of
claims is dependant upon receipt of appropriate documentation indicating project stages
have been completed in line with ministerial approval, payment is then facilitated.
 Infringement Management and Enforcement Services build (IMES) – ongoing
implementation delays to the IMES system baseline build has delayed the implementation of
system enhancements to accommodate changes in business practice.
 Neighbourhood Safer Places Programs – a place that may provide shelter for people from
the immediate life-threatening effects of a bushfire. The nature of the works, the depth of
community engagement required and issues around land tenure have caused this project to
continue into the 2013–14 year.
 National Disaster Resilience Program – funding is provided from the Commonwealth for the
National Partnership grant program that focuses on building resilience to withstand natural
disasters. Grant payments to communities extend after July 2013.
(ii) Additions to net asset base
The majority of the $253.505 million variance (2012: $145.991 million) relates to rephasing and
carryover of ATNAB appropriation into 2013–14.
The primary drivers of this are outlined below:
 Delays in the design phase of additional prison beds for Metropolitan Remand Centre and
Marngoneet Prison, and finalisation of the tender process for Loddon Prison have resulted in
the appropriation being recashflowed and rephased to 2013–14. Additional permanent beds
for these prisons are expected to be delivered in 2014.
 Hopkins Correctional Centre – as a consequence of the voluntary administration of key
consortium parties, works on site ceased on 15 May 2012. Due to the longer than
anticipated commercial discussions with the Private Sector Consortium and the appointment
of a new builder for works to recommence, funds have been rephased into future years
according to the revised project timelines.
 Infringement Management and Enforcement Services platform – certain project milestones
have carried over into the 2013–14 financial year due to delays in the new software
development to replace the current Victorian Infringement Management System.
 The State Coronial Services Redevelopment Project had a change in overall project scope
to include the Donor Tissue Bank (DTB) and to address the latent site conditions (soil
contamination). The intensive investigation to determine the extent of the contamination,
coupled with the requirement to document the incorporation of the DTBV into the project and
delays in the certificiation of laboratories in the Donor Tissue Bank, has caused a substantial
delay so appropriation has been rephased to future years.
 New Children’s Court at Broadmeadows – increased project scope of works has caused
delays in commencing of the design phase, resulting in the appropriation being recashflowed
and rephased into future years.
 The Victoria Police revised cashflows for capital works projects into 2013–14 and outyears
include:
70
 CBD City West police complex due to the finalisation of the public tender process;
 Police station upgrades due to protracted site identification and land acquisition issues;
and
 Police academy upgrade due to delays in the firing and simulation range procurement.
(iii) Administered – Payments on behalf of state
The variance of $19.041 million (2012: $13.312 million) is due to an over estimate of amounts
paid/payable to other states and jurisdictions for their share of Tattersall’s taxation which is
collected in Victoria.
(b) Summary of compliance with special appropriations
Authority
Purpose
Appropriations
applied
2013
2012
$’000
$’000
17,893
17,421
6,322
6,090
26,647
25,195
1
Constitution Act 1975 (No. 8750/1975), s.82 (7)
Remuneration to Judges of the Supreme Court
of Victoria and the Chief Justice
2
Constitution Act 1975 (No. 8750/1975), s.82 (7)
Remuneration to the President and Judges of
the Court of Appeal Division of the Supreme
Court of Victoria
3
County Court Act 1958 (No. 6230/1958) s.10 (7)
Remuneration to Judges of the County Court of
Victoria
4
Victims of Crime Assistance Act 1996 (No.
81/1996), s.69
Operating costs of the Victims of Crime
Assistance Tribunal
2,365
2,357
5
Electoral Act 2002 (No. 23/2002), s.181
Cost incurred by the Victorian Electoral
Commission
40,250
21,685
6
Magistrates’ Court Act 1989 (No. 51/1989), sch.1
Pt 1 cl.10
Remuneration to Magistrates of the Magistrates’
Court of Victoria
43,550
41,640
7
Juries Act 2000 (No. 53/2000), s.59
Compensation to jurors from the WorkCover
Authority Fund under the Accident
Compensation Act 1985
372
138
8
VicSES Volunteer Work Comp (Victoria State
Emergency Service Act 2005 (Act No 51/2005),
s.52)
Payments to SES volunteers for work related
injuries under 2005 Act
135
280
9
Volunteer Work Comp (Emergency Management
Act 1986 (Act No 30/1986), s.32)
Payments to volunteers for work related injuries
under 1986 Act
134
139
10
Corrections Act 1986 (No. 117/1986), s.104ZW
Compensation to CCS from the WorkCover
Authority Fund under the Accident
Compensation Act 1985
91
156
137,759 115,101
Total
2,239
1,713
Capital component of remuneration to Judges of
the Supreme Court of Victoria.
363
366
Constitution Act 1975 (No. 8750/1975), s.82 (7)
Capital component of remuneration to Judges of
the Court of Appeals Division of the Supreme
Court of Victoria
81
86
14
County Court Act 1958
(No. 6230/1958) s.10 (7)
Capital component of remuneration to Judges of
the County Court of Victoria
603
644
15
Magistrates’ Court Act 1989 (No. 51/1989), sch.1
Pt 1 cl.10
Capital component of remuneration to
Magistrates of the Magistrates’ Court of Victoria
1,102
1,180
4,388
3,989
2,339
5,339
11
Electoral Act 2002 (No. 23/2002), s.181
Capital component of remuneration to Victorian
Electoral Commission
12
Constitution Act 1975 (No. 8750/1975), s.82 (7)
13
Administered Special Appropriations Applied
16
Crown Proceedings Act 1958
(No. 6232/1958), s.26
Payments due for Crown Proceedings in the
Supreme Court of Victoria
71
Authority
Purpose
Appropriations
applied
17
Victims of Crime Assistance Act 1996 (No.
81/1996), s.69
Costs incurred by the Tribunal and payments to
victims of crime
18
Melbourne City Link Act 1995 (No. 107/1995),
s.14 (4)
19
20
41,338
38,539
Payments to CityLink
2,797
1,970
EastLink Project Act 2004 (No 39/2004), s.26
Payments to EastLink
1,142
1,005
Electoral Act 2002 (No. 23/2002), s.215
Electoral entitlements
78
44
47,694
46,897
Total
Note 24. Ex-gratia payments
The department made the following ex-gratia payments:
2013
2012
$’000
$’000
195
Ex-gratia payments
The ex-gratia payments in 2013 were mainly to private individuals as compensation for loss
suffered as a result of departmental actions.
12,953
Note 25. Annotated income agreements
The following is a listing of Annotated Revenue Retention Agreements approved by the
Treasurer under section 29 of the Financial Management Act 1994:
2013
2012
$’000
$’000
Application Fees collected with VCAT
4,212
2,961
Birth, Deaths and Marriages
5,681
6,106
24
22
43,890
34,593
131
180
0
1,042
27,418
25,266
3,461
2,715
Office of the Emergency Services Commissioner
23,531
17,818
OPA Public Information and Education Programs
77
57
8,815
8,533
856
797
0
400
1,094
1,660
94
2,627
1,213
1,212
35,960
34,657
2,099
0
User charges, or sales of goods and services
Civil Marriage Services (Magistrates Court)
Court Fees
Dispute Settlement Services Victoria
Financial Counselling (Office of Gaming and Racing)
Infringement Court Services – Filing Fees
National Emergency Warning System
Prison Industries
Probate Notification Fees
Responsible Alcohol Victoria
Retailing of Court Data (Magistrates Court)
Sale of Business Name Information
Secretariat for Council of Legal Education and Board of Examiners
Solicitor Fees
State Control Centre Facility Charge
72
2013
2012
$’000
$’000
7,641
7,822
166,197
148,468
0
0
500
4,000
6,885
30,328
407
0
44,388
43,644
52,180
77,972
218,377
226,440
Victorian Workcover Authority (Magistrates Court)
Asset sales
Asset sale proceeds
Commonwealth Specific Purpose Payments
Donor Tissue Bank
Emergency Management Council
National Coronial Information System
Victoria Legal Aid
Total annotated income agreements
Note 26. Trust account balances
(a) Trust account balances relating to trust accounts controlled and/or administered by the
department:
Cash and cash equivalents and investments
2013
Opening
balance as
at
1 July 2012
Total
receipts
Total
payments
Closing
balance
as at
30 June 2013
$’000
$’000
$’000
$’000
621
9
33
597
5,448
9,599
9,568
5,479
Crime Prevention and Victims’ Aid Fund
- Confiscation Act 1997 (No. 108/1997), s.134
- Holds monies paid into and out of the fund under s.134 of this Act.
41
0
0
41
Domestic Builders Fund
- Domestic Building Contracts Act 1995 (No 91/1995), s.124
- Holds monies paid into and out of the fund under s.124 of this Act.
14,605
9,139
10,033
13,711
558
4,394
4,349
603
2,396
1,255
620
3,031
42,866
17,486
23,901
36,451
Controlled trusts
Victorian Consumer Law Fund (supersedes Consumer Credit Fund)
- Australian Consumer Law and Fair Trading Act 2012
(No. 21/2012), s.134
- Holds monies paid into and out of the fund under s.134 and
Part 6.2 respectively of this Act.
Correctional Enterprises Working Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for Correctional Enterprises
Motor Car Traders’ Guarantee Fund
- Motor Car Traders Act 1986 (No. 104/1986), s.74
- Holds monies paid into and out of the fund under s.74 of this Act.
National Gambling Research Trust
- Memorandum of Understanding between the State and Federal
Governments.
- Funds a multi jurisdictional group devoted to national gambling research
Residential Tenancies Fund
- Residential Tenancies Act 1997 (No. 109/1997), s.491
- Holds monies paid into and out of the fund under s.492 and s.493
respectively of this Act.
73
2013
Opening
balance as
at
1 July 2012
Total
receipts
Total
payments
Closing
balance
as at
30 June 2013
$’000
$’000
$’000
$’000
269
1,695
1,636
328
38,815
8,306
21,647
25,474
0
2,115
2,115
0
Victorian Property Fund
- Estate Agents Act 1980 (No. 9428/1980), s.72
- Holds monies paid into and out of the fund under s.73 and s.75
respectively of this Act.
353,745
41,926
18,710
376,961
Total Controlled trusts
459,364
95,924
92,612
462,676
11,201
1,749
(3)
12,953
Courtlink Trust Account (amalgamated with Court Case Management
System Trust Account)
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Magistrates Courts’ court orders
1,011
624
537
1,098
Departmental Suspense Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
4,512
1,887
107
6,292
Public Service Commuter Club
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Public Service Commuter Club
(780)
2,752
2,697
(725)
7
(45)
0
(38)
26
1
0
27
Treasury Trust Fund
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
5,234
1,539
0
6,773
Security Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Holds monies as security for good behaviour
0
5
0
5
Victorian Government Solicitor’s Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Victorian Government Solicitors Office
14,653
3,792
0
18,445
Total Administered trusts
35,864
12,304
3,338
44,830
Opening
balance as
at
1 July 2011
Total
receipts
Total
payments
Closing
balance
as at
30 June 2012
$’000
$’000
$’000
$’000
815
40
234
621
4,634
5,177
4,363
5,448
Sex Work Regulation Fund
- Sex Work Act 1994 (No. 102/1994), s.66
- Holds monies paid into and out of the fund under s.66 of this Act.
Treasury Trust Fund(i)
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the department
Vehicle Lease Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the sale of VicFleet motor vehicles
Administered trusts
Asset Confiscation Office Retained Monies Trust Account
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the Asset Confiscation Office
Revenue Suspense
- Financial Management Act 1994 (No. 18/1994), Part 4
- Working account for the allocation of revenue
Sundry Deposits
- Financial Management Act 1994 (No. 18/1994), Part 4
- Holds monies in term deposits for the Victorian Government Solicitors
Office
2012
Controlled trusts
Consumer Credit Fund, Act No. 10091/1984, s.86AA
Correctional Enterprises Working Account
74
2012
Opening
balance as
at
1 July 2011
Crime Prevention and Victims’ Aid Fund, Act No. 108/1997, s.134
Domestic Builders Fund, Act No 91/1995, s.124
Motor Car Traders’ Guarantee Fund, Act No. 104/1986, s.74
National Gambling Research Trust
Residential Tenancies Fund, Act No. 109/1997, s.491
Sex Work Regulation Fund, Act No. 102/1994, s.66
Treasury Trust
Fund(i)
Total
receipts
Total
payments
Closing
balance
as at
30 June 2012
41
0
0
41
15,207
9,755
10,357
14,605
203
4,534
4,179
558
2,337
1,648
1,589
2,396
41,006
27,162
25,302
42,866
291
1,471
1,493
269
14,868
58,888
34,941
38,815
0
1,698
1,698
0
Victorian Property Fund, Act 9428/1980, s.72
325,662
59,783
31,700
353,745
Total Controlled trusts
405,064
170,156
115,856
459,364
14,220
(3,051)
(32)
11,201
Courtlink Trust Account
385
130
0
515
Court Case Management System Trust Account
231
6
(259)
496
Departmental Suspense Account
5,496
2,349
3,333
4,512
Public Service Commuter Club
(443)
2,571
2,908
(780)
7
0
0
7
25
1
0
26
4,795
439
0
5,234
0
0
0
0
Victorian Government Solicitor’s Trust Account
34,120
(19,467)
0
14,653
Total Administered trusts
58,836
(17,022)
5,950
35,864
Vehicle Lease Trust Account
Administered trusts
Asset Confiscation Office Retained Monies Trust Account
Revenue Suspense
Sundry Deposits
Treasury Trust Fund
Security Account
(i) The 2011–12 comparative has been adjusted (refer to note 1U).
(b) Third party funds under management
The third party funds under management are funds held in trust for certain clients. They are not
used for government purposes and therefore are not included in the department’s financial
statements.
Any earnings on the funds held pending distribution are also applied to the trust funds under
management as appropriate.
2013
2012
$’000
$’000
2,821
2,927
25
49
1,506
1,370
1,377,863
1,259,679
1,382,215
1,264,025
Courts
Bail Monies(i)
Courts Infant Investment Accounts (i)
Crimes Compensation Infant Investment Accounts (i)
Funds under management by the Senior Master of the
Supreme Court (Funds in Court)
(i) Included under Dispensing Justice output group in note 3 Administered Items.
75
From 1 July 2004, the Courts Legislation Act 2004 allowed funds held in the County Court Infant
Investment Trust Accounts, the VOCAT Infant Investment Trust Accounts and the Magistrates
Court Infant Investment Trust Accounts to be transferable to the management of the Senior
Masters Office (Funds in Court) of the Supreme Court. The decision for transferring funds is
discretionary. Each court retains discretion as to where control of the funds is held and each
case is considered individually to determine whether the funds should be transferred to the
Senior Master. Although in the majority of cases, funds have been transferred from the courts to
the Senior Master, the courts have used their discretion to retain control of a portion of the funds
held for persons with a disability.
2013
2012
$’000
$’000
4,114
2,520
(4,114)
(2,520)
0
0
124
0
(124)
0
0
0
247,385
237,621
Non-government transactions
Prisoner Private Monies Account(ii)
Cash
Amounts owing to prisoners
Prisoner Compensation Quarantine Account(ii)
Cash
Amounts owing to prisoners
Non-government fines(iii)
Receivables
less provision for doubtful debts
Amounts owing to non-government entities
(226,480) (217,407)
20,905
20,214
(20,905)
(20,214)
0
0
(ii) Included under Enforcing Correctional Orders output group in note 3 Administered Items.
(iii) Note disclosure only - not included in the balance sheet or note 3 Administered Items.
Note 27. Responsible persons
In accordance with the Ministerial Directions issued by the Minister for Finance under the
Financial Management Act 1994, the following disclosures are made regarding responsible
persons for the reporting period.
Names
The persons who held the positions of Ministers and Accountable Officers in the department are
as follows:
Attorney-General
The Hon. Robert Clark, MP
1 July 2012
to
30 June 2013
Acting Attorney-General
The Hon. Gordon Rich-Phillips, MLC
29 June 2013
to
30 June 2013
Minister for Consumer Affairs
The Hon. Michael O’Brien, MP
1 July 2012
to
12 March 2013
The Hon. Heidi Victoria, MP
13 March 2013
to
30 June 2013
The Hon. Matthew Guy, MLC
1 July 2012
to
8 July 2012
The Hon. Gordon Rich-Phillips, MLC
3 January 2013
to
11 January 2013
Acting Minister for Consumer Affairs
76
Minister for Corrections
The Hon. Andrew McIntosh, MP
1 July 2012
to
15 April 2013
The Hon. Edward O’Donohue, MLC
22 April 2013
to
30 June 2013
The Hon. Robert Clark, MP
14 July 2012
to
29 July 2012
The Hon. Robert Clark, MP
16 April 2013
to
21 April 2013
The Hon. Andrew McIntosh, MP
1 July 2012
to
15 April 2013
The Hon. Edward O’Donohue, MLC
22 April 2013
to
30 June 2013
The Hon. Robert Clark, MP
14 July 2012
to
29 July 2012
The Hon. Robert Clark, MP
16 April 2013
to
21 April 2013
Minister for Gaming
The Hon. Michael O’Brien, MP
1 July 2012
to
12 March 2013
Minister for Gaming Regulation
The Hon. Andrew McIntosh, MP
13 March 2013
to
15 April 2013
Minister for Liquor and Gaming
Regulation
The Hon. Edward O’Donohue, MLC
22 April 2013
to
30 June 2013
Acting Minister for Gaming
The Hon. Matthew Guy, MLC
1 July 2012
to
8 July 2012
The Hon. Gordon Rich-Phillips, MLC
3 January 2013
to
11 January 2013
Acting Minister for Gaming Regulation
The Hon. Robert Clark, MP
16 April 2013
to
21 April 2013
Minister for Racing
The Hon. Denis Napthine, MP
1 July 2012
to
30 June 2013
Acting Minister for Racing
The Hon. Terence Mulder, MP
15 June 2013
to
22 June 2013
Minister for Police and Emergency
Services
The Hon. Peter Ryan, MLA
1 July 2012
to
12 March 2013
The Hon. Kimberley Wells, MP
13 March 2013
to
30 June 2013
The Hon. Robert Clark, MP
13 July 2012
to
29 July 2012
The Hon. Robert Clark, MP
29 September
2012
to
5 October 2012
The Hon. Andrew McIntosh, MP
14 January 2013
to
28 January 2013
The Hon. Andrew McIntosh, MP
7 February 2013
to
17 February 2013
The Hon. Peter Ryan, MLA
1 July 2012
to
12 March 2013
The Hon. Kimberley Wells, MP
13 March 2013
to
30 June 2013
The Hon. Robert Clark, MP
13 July 2012
to
29 July 2012
The Hon. Peter Walsh, MP
29 September
2012
to
5 October 2012
The Hon. Peter Walsh, MP
14 January 2013
to
28 January 2013
The Hon. Andrew McIntosh, MP
7 February 2013
to
17 February 2013
Minister responsible for the
establishment of an anti-corruption
commission
The Hon. Andrew McIntosh, MP
1 July 2012
to
12 March 2013
Minister responsible for Independent
Broad-based Anti-corruption
Commission*
The Hon. Andrew McIntosh, MP
13 March 2013
to
15 April 2013
Acting Minister for Corrections
Minister for Crime Prevention
Acting Minister for Crime Prevention
Acting Minister for Police and
Emergency Services
Minister for Bushfire Response
Acting Minister for Bushfire Response
*On 16 April 2013, this Ministerial position ceased to exist, and the Attorney-General became responsible for the administration of
the Independent Broad-based Anti-corruption Commission Act 2011
Acting Minister responsible for the
establishment of an anti-corruption
commission
The Hon. Robert Clark, MP
14 July 2012
to
29 July 2012
Secretary to the Department of Justice
Penny Armytage
1 July 2012
to
20 July 2012
Greg Wilson
15 April 2013
to
30 June 2013
Dr Claire Noone
21 July 2012
to
14 April 2013
Gail Moody
21 February 2013 to
Acting Secretary to the Department of
Justice
25 February 2013
77
Remuneration
Remuneration received or receivable by the Accountable Officer (Secretary) in connection with
the management of the department during the reporting period was in the range:
Income band
Total remuneration
2013
2012
No.
No.
$90,000-99,999
1
$210,000-219,999
1
$270,000-279,999
1
$440,000-449,999
1
Total number of Accountable Officers (Secretaries)
3
1
$570,000 - $579,999* ($440,000 - $449,999 in 2011–12)
* This includes a Secretary who resigned effective 21 September 2012 with subsequent
payment of leave entitlements on termination (long service from 23 July 2012), an Acting
Secretary from 21 July 2012 to 14 April 2013, and the appointment of a new Secretary effective
15 April 2013.
Amounts relating to ministers are reported in the financial statements of the Department of
Premier and Cabinet.
Note 28. Remuneration of executives and payments to other personnel
(i.e. contractors with significant management responsibilities)
(a) Remuneration of executives
The number of executive officers from the department, other than ministers and the
Accountable Officer, whose total remuneration exceeded $100,000 during the reporting period,
are shown in their relevant income bands in the first two columns of the table below. The total
remuneration of executive officers includes base remuneration, which is shown in the third and
fourth columns, plus bonus payments, long service leave payments, redundancy payments and
retirement benefits. The total annualised employee equivalent represents the equivalent to all
executive officers working 38 ordinary hours per week for the reporting period.
The variation from last year’s base and total remuneration figures is primarily due to the
abolition of the Victorian Commission for Gambling Regulation in February 2012 and the
subsequent establishment of the Victorian Commission for Gambling and Liquor Regulation
(VCGLR) on 6 February 2012. Under the new legislation, executive officers of the VCGLR are
no longer reported under the Department of Justice but rather reported in their respective
Annual Report. The reduction in termination payments from the previous year would also
account for the decrease in total remuneration with reduced payments on leave entitlements.
Income band
Total remuneration
Base remuneration
2013
2012
2013
2012
No.
No.
No.
No.
$100,000-109,999
1
3
0
2
$110,000-119,999
0
0
0
2
$120,000-129,999
1
2
2
1
$130,000-139,999
1
2
2
3
78
Income band
Total remuneration
Base remuneration
2013
2012
2013
2012
No.
No.
No.
No.
$140,000-149,999
1
2
0
1
$150,000-159,999
0
1
5
7
$160,000-169,999
6
9
8
7
$170,000-179,999
5
4
6
7
$180,000-189,999
6
6
2
6
$190,000-199,999
5
2
6
4
$200,000-209,999
4
6
8
5
$210,000-219,999
6
4
4
3
$220,000-229,999
3
4
0
0
$230,000-239,999
4
1
3
2
$240,000-249,999
1
2
1
4
$250,000-259,999
3
1
2
1
$260,000-269,999
3
1
2
1
$270,000-279,999
1
4
1
1
$280,000-289,999
1
2
0
0
$290,000-299,999
1
2
0
0
$310,000-319,999
1
0
1
0
Total number of executives
54
58
53
57
Total annualised employee
equivalent (AEE)(i)
52.6
55.0
52.6
54.4
Total amount
$11,154,04 $11,488,77 $10,315,28 $10,373,95
8
1
8
4
(i) Annualised employee equivalent is based on working 38 ordinary hours per week over the
reporting period.
The reconciliation between the above table and the actual number of executive officers
employed at 30 June 2013 is included in the supplementary information to the annual report
Appendix F Reconciliation of Executive Officer Positions.
The above table includes 1 executive officer from the Victorian Law Reform Commission
(2012:1), 1 from the Judicial College of Victoria (2012:1), and 1 from the Sentencing Advisory
Council (2012:1) all of which will also be reported in their respective Annual Reports for 2012–
13.
In 2012–13 there were 2 executive officers (2012:16) whose total remuneration paid by the
department was less than $100,000 for the year, and 3 executive officers (2012:17) whose base
remuneration paid by the department was less than $100,000 for the year.
Related parties
It should be noted that 3 executive officers employed by the department, and because of their
positions in the department, held key positions in the following portfolio entities during the year
ended 30 June 2013: 1 from the Victorian Law Reform Commission (2012:1), 1 from the Judicial
College of Victoria (2012:1) and 1 from the Sentencing Advisory Council (2012:1).
79
Other related transactions and loans requiring disclosure under the Directions of the Minister for
Finance have been considered and there are no matters to report.
Note 29. Remuneration of auditors
2013
2012
$’000
$’000
405
408
405
408
Victorian Auditor-General’s Office
Audit of the financial statements
Note 30. Glossary of terms and style convention
Amortisation
Amortisation is the expense which results from the consumption, extraction or use over time of
a non-produced physical or intangible asset. This expense is classified as an other economic
flow.
Borrowings
Borrowings refers to interest-bearing liabilities mainly raised from public borrowings raised
through the Treasury Corporation of Victoria, finance leases and other interest-bearing
arrangements.
Borrowings also include non-interest-bearing advances from government that is acquired for
policy purposes.
Capital asset charge
The capital asset charge represents the estimated opportunity cost of capital invested in the
non-financial physical assets used in the provision of outputs.
Commitments
Commitments include those operating, capital and other outsourcing commitments arising from
non-cancellable contractual or statutory sources.
Comprehensive result
The net result of all items of income and expense recognised for the period. It is the aggregate
of operating results and other non-owner movements in equity.
Current grants
Amounts payable or receivable for current purposes for which no economic benefits of equal
value are receivable or payable in return.
Depreciation
Depreciation is an expense that arises from the consumption through wear or time of a
produced physical or intangible asset. This expense is classified as a ‘transaction’ and so
reduces the ‘net result from transactions’.
Effective interest method
The effective interest method is used to calculate 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
instrument, or, where appropriate, a shorter period to the net carrying amount of the financial
asset or financial liability.
Employee benefits expenses
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Employee benefits expenses include all costs related to employment including wages and
salaries, fringe benefits tax, leave entitlements, redundancy payments and superannuation
contributions.
Ex gratia payments
Ex gratia payments are the gratuitous payment of money where no legal obligation exists.
Financial asset
A financial asset is any asset that is:
(a) cash;
(b) an equity instrument of another entity;
(c) a contractual or statutory right:
 to receive cash or another financial asset from another entity; or
 to exchange financial assets or financial liabilities with another entity under conditions
that are potentially favourable to the entity; or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
 a non-derivative for which the entity is or may be obliged to receive a variable number of
the entity’s own equity instruments; or
 a derivative that will or may be settled other than by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the entity’s own equity instruments.
Financial instrument
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. Financial assets or liabilities that are not
contractual (such as statutory receivables or payables that arise as a result of statutory
requirements imposed by governments) are not financial instruments.
Financial liability
A financial liability is any liability that is:
(a) a contractual or statutory obligation:
 to deliver cash or another financial asset to another entity; or
 to exchange financial assets or financial liabilities with another entity under conditions
that are potentially unfavourable to the entity; or
(b) a contract that will or may be settled in the entity’s own equity instruments and is:
 a non-derivative for which the entity is or may be obliged to deliver a variable number of
the entity’s own equity instruments; or
 a derivative that will or may be settled other than by the exchange of a fixed amount of
cash or another financial asset for a fixed number of the entity’s own equity instruments.
For this purpose the entity’s own equity instruments do not include instruments that are
themselves contracts for the future receipt or delivery of the entity’s own equity
instruments.
Financial statements
Depending on the context of the sentence where the term ‘financial statements’ is used, it may
include only the main financial statements (i.e. comprehensive operating statement, balance
sheet, cash flow statement, and statement of changes in equity); or it may also be used to
replace the old term ‘financial report’ under the revised AASB101 (September 2007), which
means it may include the main financial statements and the notes.
Grants and other transfers
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Transactions in which one unit provides goods, services, assets (or extinguishes a liability) or
labour to another unit without receiving approximately equal value in return. Grants can be
either operating or capital in nature.
While grants to governments may result in the provision of some goods or services to the
transferor, they do not give the transferor a claim to receive directly benefits of approximately
equal value. For this reason, grants are referred to by the AASB as involuntary transfers and
are termed non-reciprocal transfers. Receipt and sacrifice of approximately equal value may
occur, but only by coincidence. For example, governments are not obliged to provide
commensurate benefits, in the form of goods or services, to particular taxpayers in return for
their taxes.
Grants can be paid as general purpose grants which refer to grants that are not subject to
conditions regarding their use. Alternatively, they may be paid as specific purpose grants which
are paid for a particular purpose and/or have conditions attached regarding their use.
Intangible produced assets
Refer to produced assets in this glossary.
Intangible non-produced assets
Refer to non-produced assets in this glossary.
Interest expense
Costs incurred in connection with the borrowings of funds. Interest expense includes the interest
component of finance lease repayments, and the increase in financial liabilities and nonemployee provisions due to the unwinding of discounts to reflect the passage of time.
Interest income
Interest income includes interest received on bank term deposits, interest from investments, and
other interest received.
Net acquisition of non-financial assets (from transactions)
Purchases (and other acquisitions) of non-financial assets less sales (or disposals) of nonfinancial assets less depreciation plus changes in inventories and other movements in nonfinancial assets. Includes only those increases or decreases in non-financial assets resulting
from transactions and therefore excludes write-offs, impairment write-downs and revaluations.
Net result
Net result is a measure of financial performance of the operations for the period. It is the net
result of items of income, gains and expenses (including losses) recognised for the period,
excluding those that are classified as ‘other non-owner changes in equity’.
Net result from transactions/net operating balance
Net result from transactions or net operating balance is a key fiscal aggregate and is income
from transactions minus expenses from transactions. It is a summary measure of the ongoing
sustainability of operations. It excludes gains and losses resulting from changes in price levels
and other changes in the volume of assets. It is the component of the change in net worth that
is due to transactions and can be attributed directly to government policies.
Net worth
Assets less liabilities, which is an economic measure of wealth.
Non-financial assets
Non-financial assets are all assets that are not ‘financial assets’. It includes inventories, land,
buildings, plant and equipment, cultural and heritage assets and intangible assets.
Non-profit institution
A legal or social entity that is created for the purpose of producing or distributing goods and
services but is not permitted to be a source of income, profit or other financial gain for the units
that establish, control or finance it.
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Non-produced assets
Non-produced assets are assets needed for production that have not themselves been
produced. They include land, subsoil assets, and certain intangible assets. Non-produced
intangibles are intangible assets needed for production that have not themselves been
produced. They include constructs of society such as patents.
Other economic flows
Other economic flows are changes in the volume or value of an asset or liability that do not
result from transactions. It includes:
 gains and losses from disposals, revaluations and impairments of non-financial physical and
intangible assets
 actuarial gains and losses arising from defined benefit superannuation plans
 fair value changes of financial instrument.
In simple terms, other economic flows are changes arising from market re-measurements.
Payables
Includes short and long term trade debt and accounts payable, grants and interest payable.
Produced assets
Produced assets include buildings, plant and equipment, inventories, cultivated assets and
certain intangible assets. Intangible produced assets may include computer software, and
research and development costs (which does not include the start up costs associated with
capital projects).
Receivables
Includes amounts owing from government through appropriation receivable, short and long term
trade credit and accounts receivable, accrued investment income, grants, taxes and interest
receivable.
Sales of goods and services
Refers to income from the direct provision of goods and services and includes fees and charges
for services rendered, sales of goods and services, fees from regulatory services, and work
done as an agent for private enterprises. User charges includes sale of goods and services
income.
Supplies and services
Supplies and services generally represent cost of goods sold and the day-to-day running costs,
including maintenance costs, incurred in the normal operations of the department.
Taxation income
Taxation income represents income received from the State’s taxpayers and includes:
 gambling taxes levied mainly on private lotteries, electronic gaming machines, casino
operations and racing
 other taxes, including licence fees.
Transactions
Transactions are those economic flows that are considered to arise as a result of policy
decisions, usually an interaction between two entities by mutual agreement. They also include
flows within an entity such as depreciation where the owner is simultaneously acting as the
owner of the depreciating asset and as the consumer of the service provided by the asset.
Taxation is regarded as mutually agreed interactions between the government and taxpayers.
Transactions can be in kind (e.g. assets provided/given free of charge or for nominal
consideration) or where the final consideration is cash. In simple terms, transactions arise from
the policy decisions of the government.
Style conventions
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Figures in the tables and in the text have been rounded. Discrepancies in tables between totals
and sums of components reflect rounding. Percentage variations in all tables are based on the
underlying unrounded amounts.
The notation used in the tables is as follows:
(xxx.x) negative numbers
201x year period
201x-1x year period
The financial statements and notes are presented based on the illustration for a government
department in the 2012–13 Model Report for Victorian Government departments. The
presentation of other disclosures is generally consistent with the other disclosures made in
earlier publications of the department’s annual reports.
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Disclosure index
The Annual Report of the Department of Justice is prepared in accordance with all Victorian
legislation and pronouncements. This index has been prepared to facilitate identification of the
department’s compliance with statutory disclosure requirements.
Legislation
Requirement
Ministerial Directions
Report of Operations – Financial Reporting Directions (FRD) guidance
Charter and purpose
FRD 22D
Manner of establishment and the relevant ministers
FRD 22D
Objectives, functions, powers and duties
FRD 22D
Nature and range of services provided
Management and structure
FRD 22D
Organisational structure
Financial and other information
FRD 8B
Budget Portfolio Outcomes
FRD 10
Disclosure index
FRD 12A
Disclosure of major contracts
FRD 15B
Executive officer disclosures
FRD 22D, SD 4.2(k)
Operational and budgetary objectives and performance against
objectives
FRD 22D
Employment and conduct principles
FRD 22D
Occupational health and safety policy
FRD 22D
Summary of the financial results for the year
FRD 22D
Significant changes in financial position during the year
FRD 22D
Major changes or factors affecting performance
FRD 22D
Subsequent events
FRD 22D
Application and operation of Freedom of Information Act 1982
FRD 22D
Compliance with building and maintenance provisions of Building
Act 1993
FRD 22D
Statement on National Competition Policy
FRD 22D
Application and operation of the Protected Disclosure Act 2012
FRD 22C
Details of consultancies over $100,000
FRD 22C
Details of consultancies under $100,000
FRD 22D
Statement of availability of other information
FRD 24C
Reporting of office-based environmental impacts
FRD 25A
Victorian Industry Participation Policy disclosures
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Legislation
Requirement
FRD 29
Workforce data disclosures
SD 4.5.5
Risk management compliance attestation
SD 4.5.5.1
Ministerial Standing Direction 4.5.5.1 compliance attestation
SD 4.2(g)
General information requirements
SD 4.2(j)
Sign-off requirements
Financial statements
Financial statements required under Part 7 of the Financial Management Act 1994
(FMA)
SD 4.2(a)
Statement of changes in equity
SD 4.2(b)
Operating statement
SD 4.2(b)
Balance sheet
SD 4.2(b)
Cash flow statement
Other requirements under Standing Directions (SD) 4.2
SD 4.2(c)
Compliance with AASs and other authoritative pronouncements
SD 4.2(c)
Compliance with Ministerial Directions
SD 4.2(d)
Rounding of amounts
SD 4.2(c)
Accountable officer’s declaration
SD 4.2(f)
Compliance with Model Financial Report
Other disclosures as required by FRDs in notes to the financial statements
FRD 9A
Departmental disclosure of administered assets and liabilities
FRD 11
Disclosure of ex-gratia payments
FRD 13
Disclosure of parliamentary appropriations
FRD 21B
Responsible person and executive officer disclosures
FRD 102
Inventories
FRD 103D
Non-current physical assets
FRD 106
Impairment of assets
FRD 109
Intangible assets
FRD 110
Cash flow statements
FRD 112C
Defined benefit superannuation obligations
FRD 114A
Financial Instruments – General government entities and public nonfinancial corporations
FRD 119
Contributions by owners
Legislation
Freedom of Information Act 1982
Building Act 1983
Protected Disclosure Act 2012
Victorian Industry Participation Policy Act 2003
Financial Management Act 1994
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