Australian Public Service Commission
Statement of Comprehensive Income
for the period ended 30 June 2013
Notes
2013
$’000
2012
$’000
3a
3b
3c
3d
3e
3f
30,960
19,480
1,189
19
167
51,815
31,311
23,765
1,511
22
9
48
56,666
4a
4b
29,000
39
29,039
30,069
39
30,108
4c
3
-
3
-
Total own-source income
29,042
30,108
Net cost of services
22,773
26,558
23,201
25,830
428
(728)
-
(243)
(243)
428
(971)
EXPENSES
Employee benefits
Supplier
Depreciation and amortisation
Finance costs
Write-down and impairment of assets
Losses from asset sales
Total expenses
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services
Resources received free of charge
Total own-source revenue
Gains
Reversals of previous asset write-downs and
impairments
Total gains
Revenue from Government
Surplus (Deficit)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to
profit or loss
Changes in asset revaluation surplus
Total other comprehensive income
Total comprehensive income (loss)
4d
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Balance Sheet
as at 30 June 2013
Notes
2013
$’000
2012
$’000
5a
5b
575
27,185
27,760
706
26,202
26,908
6a, d
6b, d
6c, d
6e
6f
2,656
1,351
898
55
992
5,952
33,712
3,139
1,881
654
50
763
6,487
33,395
7a
7b
7c
7d
6,055
7,436
1,100
1,412
16,003
7,565
6,945
1,266
894
16,670
8a
8b
7,131
372
7,503
23,506
6,860
460
7,320
23,990
Net assets
10,206
9,405
EQUITY
Contributed equity
Asset revaluation surplus
Retained surplus
Total equity
(300)
1,323
9,183
10,206
(673)
1,323
8,755
9,405
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Non-financial assets
Land and buildings
Property, plant and equipment
Intangibles
Inventories
Prepayments paid
Total non-financial assets
Total assets
LIABILITIES
Payables
Suppliers
Prepayments received
Lease incentives
Other payables
Total payables
Provisions
Employee provisions
Provision for restoration obligations
Total provisions
Total liabilities
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Statement of Changes in Equity
for the period ended 30 June 2013
Item
Opening balance
Comprehensive income
Other comprehensive
income*
Surplus (Deficit) for the
period
Total comprehensive
income
Retained
earnings
2013
$’000
2012
$’000
Asset
revaluation
surplus
2013
2012
$’000 $’000
Contributed
equity / capital
Total equity
2013
$’000
2012
$’000
2013
$’000
2012
$’000
8,755
9,483
1,323
1,566
(673)
(857)
9,405
10,192
-
-
-
(243)
-
-
-
(243)
428
(728)
-
-
-
-
428
(728)
428
(728)
-
(243)
-
-
428
(971)
-
-
-
-
373
184
373
184
-
-
-
-
373
184
373
184
9,183
8,755
1,323
1,323
(300)
(673)
10,206
9,405
Transactions with owners
Contributions by owners
Departmental capital
budget
Sub-total transactions
with owners
Closing balance
as at 30 June
* See note 6a for details of revaluation adjustments.
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Cash Flow Statement
for the period ended 30 June 2013
Notes
2013
$’000
2012
$’000
OPERATING ACTIVITIES
Cash received
Appropriations
Receipts from Government
Sale of goods and rendering of services
Net GST received
Other cash received
Total cash received
23,201
7,256
29,066
903
1,150
61,576
25,830
2,850
32,916
1,151
62,747
Cash used
Employees
Suppliers
Net GST paid
Section 31 receipts transferred to OPA
Other cash used
Total cash used
Net cash from (used by) operating activities
31,286
22,728
6,600
561
61,175
401
31,839
24,701
411
4,361
872
62,184
563
51
51
-
Cash used
Purchase of property, plant and equipment
Purchase of intangibles
Total cash used
Net cash from (used by) investing activities
476
480
956
(905)
887
445
1,332
(1,332)
FINANCING ACTIVITIES
Cash received
Contributed equity
Total cash received
Net cash from (used by) financing activities
373
373
373
184
184
184
(131)
706
(585)
1,291
575
706
10
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment
Total cash received
Net increase (decrease) in cash held
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the
reporting period
5a
The above statement should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Schedule of Commitments
as at 30 June 2013
BY TYPE
Commitments receivable
Sublease rental income
GST recoverable on commitments 1
Total commitments receivable
Commitments payable
Capital commitments
Property, plant and equipment 2
Intangibles 3
Total capital commitments
Other commitments
Operating leases 4
Other commitments 5
Total other commitments
Total commitments payable
Net commitments by type
2013
$’000
2012
$’000
(49)
(2,691)
(2,740)
(168)
(2,615)
(2,783)
4
156
160
70
33
103
21,874
7,624
29,498
29,658
26,918
24,649
4,177
28,826
28,929
26,146
Notes:
1. Commitments are GST inclusive where relevant.
2. Contractual commitments for office fit-out.
3. Contractual commitments for the development of software.
4. Operating leases included were effectively non-cancellable. The APSC has leases for office
accommodation. Lease payments are subject to rent reviews in accordance with the lease
agreement. The initial periods of office accommodation leases are still current.
5. Other commitments comprise amounts committed for fee for service, policy and administrative
activities.
The above schedule should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Schedule of Commitments
as at 30 June 2013
2013
$’000
2012
$’000
(24)
(25)
(49)
(135)
(33)
(168)
(690)
(1,192)
(809)
(2,691)
(2,740)
(572)
(1,025)
(1,018)
(2,615)
(2,783)
160
160
103
103
2,651
10,456
8,767
21,874
2,738
10,880
11,031
24,649
4,804
2,685
135
7,624
29,658
26,918
3,584
421
172
4,177
28,929
26,146
BY MATURITY
Commitments receivable
Operating lease income
One year or less
From one to five years
Over five years
Total operating lease income
GST recoverable on commitments
One year or less
From one to five years
Over five years
Total GST recoverable on commitments
Total commitments receivable
Commitments payable
Capital commitments
One year or less
From one to five years
Over five years
Total capital commitments
Operating lease commitments
One year or less
From one to five years
Over five years
Total operating lease commitments
Other commitments
One year or less
From one to five years
Over five years
Total other commitments
Total commitments payable
Net commitments by maturity
Note: Commitments are GST inclusive where relevant.
The above schedule should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Schedule of Contingencies
as at 30 June 2013
There are no departmental contingencies as at 30 June 2013 (2012: nil).
The above schedule should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Administered Schedule of Comprehensive Income
for the period ended 30 June 2013
Notes
EXPENSES
Employee benefits
Total expenses administered on behalf of
Government
16a
2013
$’000
2012
$’000
59,323
59,323
49,596
49,596
59,323
49,596
(59,323)
(49,596)
OTHER COMPREHENSIVE INCOME
Total other comprehensive income
-
-
Total comprehensive income (loss)
(59,323)
(49,596)
Net cost of services
Surplus (Deficit)
Administered Schedule of Assets and Liabilities
as at 30 June 2013
There are no assets or liabilities administered on behalf of government as at 30 June 2013 (2012:
nil).
Administered Reconciliation Schedule
as at 30 June 2013
Opening administered assets less administered liabilities
as at 1 July
Surplus (deficit) items:
Less: Administered expenses
Administered transfers (to)/from Australian Government:
Appropriation transfers from OPA:
Special appropriations (unlimited)
Closing administered assets less administered liabilities
as at 30 June
2013
$’000
2012
$’000
-
-
(59,323)
(49,596)
59,323
49,596
-
-
The above schedules should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Administered Cash Flow Statement
for the period ended 30 June 2013
Notes
OPERATING ACTIVITIES
Cash used
Employees
Total cash used
Net cash from (used by) operating activities
Net increase (decrease) in cash held
Cash and cash equivalents at the beginning of the
reporting period
Cash from Official Public Account for appropriations
Cash and cash equivalents at the end of the
reporting period
2013
$’000
2012
$’000
59,323
59,323
(59,323)
49,596
49,596
(49,596)
(59,323)
(49,596)
59,323
49,596
-
-
Schedule of Administered Commitments
as at 30 June 2013
There are no administered commitments as at 30 June 2013 (2012: nil).
Schedule of Administered Contingencies
as at 30 June 2013
There are no administered contingencies as at 30 June 2013 (2012: nil).
The above schedules should be read in conjunction with the accompanying notes.
Australian Public Service Commission
Table of Contents - Notes
Note
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Description
Summary of significant accounting policies
Events occurring after reporting date
Expenses
Income
Financial assets
Non-financial assets
Payables
Provisions
Restructuring
Cash flow reconciliation
Contingent assets and liabilities
Senior executive remuneration
Remuneration of Auditors
Financial instruments
Financial assets reconciliation
Administered - expenses
Administered - contingent liabilities and assets
Administered - financial instruments
Appropriations
Compliance with statutory conditions for payments from the Consolidated
Revenue Fund
Special accounts
Compensation and debt relief
Reporting of outcomes
Net cash appropriation arrangements
Page 10 of 54
Note 1: Summary of Significant Accounting Policies
1.1
Objective of the APSC
The APSC is an Australian Government controlled entity. It is a not-for-profit entity. The objective of
the APSC is to lead and shape a unified, high-performing APS.
The APSC is structured to meet one outcome, increased awareness and adoption of best practice
public administration by the public service through leadership, promotion, advice and professional
development, drawing on research and evaluation.
The continued existence of the APSC in its present form and with its present programs is
dependent on Government policy and on continuing funding by Parliament for the APSC’s
administration and programs.
APSC activities contributing toward this outcome are classified as either departmental or
administered. Departmental activities involve the use of assets, liabilities, income and expenses
controlled or incurred by the APSC in its own right. Administered activities involve the management
or oversight by the APSC, on behalf of the Government, of items controlled or incurred by the
Government.
The APSC conducts the administered activity “Parliamentarians' and Judicial Office Holders'
remuneration and entitlements” on behalf of Government.
1.2
Basis of preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 49 of
the Financial Management and Accountability Act 1997.
The Financial Statements have been prepared in accordance with:

Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2011 and

Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the
historical cost convention, except for certain assets and liabilities at fair value. Except where stated,
no allowance is made for the effect of changing prices on the operating result or the financial
position.
The financial statements are presented in Australian dollars and values are rounded to the nearest
thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs,
assets and liabilities are recognised in the balance sheet when and only when it is probable that
future economic benefits will flow to the APSC or a future sacrifice of economic benefits will be
required and the amounts of the assets or liabilities can be reliably measured. However, assets and
liabilities arising under executor contracts are not recognised unless required by an accounting
standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments
or the schedule of contingencies.
Unless alternative treatment is specifically required by an accounting standard, income and
expenses are recognised in the statement of comprehensive income when and only when the flow,
consumption or loss of economic benefits has occurred and can be reliably measured.
Page 11 of 54
The Australian Government continues to have regard to developments in case law, including the
High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth
(2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of
Commonwealth programs. In accordance with its general practice, the Government will continue to
monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure
not being consistent with constitutional or other legal requirements.
1.3
Significant Accounting Judgements and Estimates
No accounting assumptions or estimates have been identified that have a significant risk of causing
a material adjustment to carrying amounts of assets and liabilities within the next reporting period.
1.4
Changes in accounting standards
Adoption of new Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the application date as stated in the
standard.
New and revised standards, interpretations and amending standards that were issued prior to the
sign-off date and are applicable to the current reporting period did not have a material financial
impact, and are not expected to have a material future financial impact on the APSC.
Future Australian Accounting Standard requirements
Accounting standard AASB 13 Fair Value Measurement applies from 1 July 2013. This standard
sets out a framework for measuring fair value and disclosing fair value measurements. All leasehold
improvement and property, plant and equipment will be valued under the new fair value framework
as at 1 July 2013. This is not expected to have a material impact on the reported fair value of
assets.
No other new or revised standards, interpretations and amending standards that were issued prior
to the sign-off date and are applicable to the future reporting period are expected to have a material
future financial impact on the APSC.
1.5
Revenue
Revenue from the sale of goods is recognised when:

the risks and rewards of ownership have been transferred to the buyer

the APSC retains no managerial involvement nor effective control over the goods

the revenue and transaction costs incurred can be reliably measured and

It is probable that the economic benefits associated with the transaction will flow to the APSC.
Revenue from rendering of services is recognised by reference to the stage of completion of
contracts at the reporting date. The revenue is recognised when:

the amount of revenue, stage of completion and transaction costs incurred can be reliably
measured and

the probable economic benefits associated with the transaction will flow to the APSC.
The stage of completion of contracts at the reporting date is determined by reference to services
performed to date as a percentage of total services to be performed.
Page 12 of 54
Receivables for goods and services, which have 30 day terms, are recognised at the nominal
amounts due less any impairment allowance account. Collectability of debts is reviewed at end of
the reporting period. Allowances are made when the collectability of the debt is no longer probable.
Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial
Instruments: recognition and measurement.
Resources received free of charge
Resources received free of charge are recognised as revenue when, and only when, a fair value
can be reliably determined and the services would have been purchased if they had not been
donated. Use of those resources is recognised as an expense. Resources received free of charge
are recorded as either revenue or gains depending on their nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as
gains at their fair value when the asset qualifies for recognition, unless received from another
Government entity as a consequence of a restructuring of administrative arrangements (refer to
Note 1.7).
Revenue from Government
Amounts appropriated for departmental appropriations for the year (adjusted for any formal
additions and reductions) are recognised as Revenue from Government when the APSC gains
control of the appropriation, except for certain amounts that relate to activities that are reciprocal in
nature, in which case revenue is recognised only when it has been earned. Appropriations
receivable are recognised at their nominal amounts.
1.6
Gains
Resources received free of charge
Resources received free of charge are recognised as gains when, and only when, a fair value can
be reliably determined and the services would have been purchased if they had not been donated.
Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either revenue or gains depending on their
nature.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as
gains at their fair value when the asset qualifies for recognition, unless received from another
Government entity as a consequence of a restructuring of administrative arrangements (refer to
Note 1.7).
Sale of assets
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
1.7
Transactions with the Government as owner
Equity injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal
reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity
in that year.
Page 13 of 54
Restructuring of Administrative Arrangements
Net assets received from or relinquished to another Government entity under a restructuring of
administrative arrangements are adjusted at their book value directly against contributed equity.
Other distributions to owners
The FMOs require that distributions to owners be debited to contributed equity unless in the nature
of a dividend.
In 2013, as announced in the 2012-13 Mid-year and Fiscal Economic Outlook, by agreement with
the Department of Finance and Deregulation, the APSC relinquished control of surplus
departmental appropriation funding of $112,000. On 29 June 2013, the Parliamentary Secretary to
the Prime Minister requested a reduction in departmental appropriations by $112,000. The amount
of the reduction under Appropriation Act (No. 1) 2012-13 is $112,000. The formal determination
occurred in August 2013.
1.8
Employee benefits
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and
termination benefits due within 12 months of balance date are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the
liability.
Other long-term employee benefits are measured as net total of the present value of the defined
benefit obligation at the end of the reporting period minus the fair value at the end of the reporting
period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No
provision has been made for sick leave as all sick leave is non-vesting and the average sick leave
taken in future years by employees of the APSC is estimated to be less than the annual entitlement
for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary
rates that will be applied at the time that the leave is taken, including the APSC’s employer
superannuation contribution rates to the extent that the leave is likely to be taken during service
rather than paid out on termination.
The liability for long service leave has been determined by using the Australian Government
shorthand method for all employees as at 30 June 2013. The estimate of the present value of the
liability takes into account attrition rates and pay rises through promotion and inflation.
Separation and redundancy
Provision is made for separation and redundancy benefit payments. The APSC recognises a
provision for termination when it has developed a detailed formal plan for the terminations and has
informed those employees affected that it will carry out the terminations.
Superannuation
Staff of the APSC are members of the Commonwealth Superannuation Scheme (CSS), the Public
Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).
Page 14 of 54
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a
defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian
Government and is settled by the Australian Government in due course. This liability is reported in
the Department of Finance and Deregulation’s administered schedules and notes.
The APSC makes employer contributions to the employees’ superannuation scheme at rates
determined by an actuary to be sufficient to meet the current cost to the Government. The APSC
accounts for the contributions as if they were contributions to defined contribution plans.
The superannuation payable (note 7d) recognised as at 30 June represents outstanding
contributions for the final fortnight of the financial year. The provision for superannuation (note 8a)
recognised as at 30 June represents the estimated superannuation payable on the provision for
annual leave and long service leave.
1.9
Leases
A distinction is made between finance leases and operating leases. Finance leases effectively
transfer from the lessor to the lessee substantially all risks and rewards incidental to ownership of
leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the
lessor effectively retains substantially all such risks and benefits.
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair
value of the lease property or, if lower, the present value of minimum lease payments at the
inception of the contract and a liability is recognised at the same time and for the same amount
The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over
the period of the lease. Lease payments are allocated between the principal component and the
interest expense.
Operating lease payments are expensed on a straight line basis which is representative of the
pattern of benefits derived from the leased assets.
Operating lease incentives taking the form of “free” leasehold improvements, lessor contributions
and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease
payments between rental expense and reduction of the liability.
1.10 Borrowing costs
All borrowing costs are expensed as incurred.
1.11 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes:

cash on hand

demand deposits in bank accounts with an original maturity of 3 months or less that are readily
convertible to known amounts of cash and subject to insignificant risk of changes in value

cash held by outsiders and

cash in special accounts.
Page 15 of 54
1.12 Financial assets
The APSC classifies its financial assets in the following categories:

loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at
the time of initial recognition. Financial assets are recognised and derecognised upon trade date.
Effective Interest Method
The effective interest method is a method of calculating the amortised cost of a financial asset and
of allocating interest income over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts through the expected life of the financial asset, or,
where appropriate, a shorter period.
Income is recognised on an effective interest rate basis except for financial assets that are
recognised at fair value through profit or loss.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are
not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are
measured at amortised cost using the effective interest method less impairment. Interest is
recognised by applying the effective interest rate.
Impairment of financial assets
Financial assets are assessed for impairment at the end of each reporting period.
Financial assets held at amortised cost - if there is objective evidence that an impairment loss has
been incurred for loans and receivables held at amortised cost, the amount of the loss is measured
as the difference between the asset’s carrying amount and the present value of estimated future
cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced
by way of an allowance account. The loss is recognised in the statement of comprehensive income.
1.13 Financial Liabilities
Financial liabilities are classified as either financial liabilities at fair value through profit or loss or as
other financial liabilities. Financial liabilities are recognised and derecognised upon trade date.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent
fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or
loss incorporates any interest paid on the financial liability.
Other financial liabilities
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction
costs. These liabilities are subsequently measured at amortised cost using the effective interest
method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and
of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability,
or, where appropriate, a shorter period.
Page 16 of 54
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the
extent that the goods or services have been received (and irrespective of having been invoiced).
1.14 Contingent liabilities and contingent assets
Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported
in the relevant schedules and notes. They may arise from uncertainty as to the existence of a
liability or asset, or represent an asset or liability in respect of which the amount cannot be reliably
measured. Contingent assets are disclosed when settlement is probable but not virtually certain
and contingent liabilities are disclosed when settlement is greater than remote.
1.15 Acquisition of assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes
the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are
initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and
income at their fair value at the date of acquisition, unless acquired as a consequence of
restructuring of administrative arrangements. In the latter case, assets are initially recognised as
contributions by owners at the amounts at which they were recognised in the transferor’s accounts
immediately prior to the restructuring.
1.16 Property, plant and equipment
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet,
except for purchases costing less than $2,000 which are expensed in the year of acquisition (other
than where they form part of a group of similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item
and restoring the site on which it is located. This is particularly relevant to the provision for
restoration obligations in property leases taken up by the APSC where there exists an obligation to
restore the property to its original condition. These costs are included in the value of the APSC’s
leasehold improvements with a corresponding provision for restoration obligations recognised.
Revaluations
Fair values for each class of asset are determined as shown below:
Asset class
Fair value measured at:
Leasehold improvements
Property, plant and equipment
Depreciated replacement cost
Market selling price
Following initial recognition at cost, property plant and equipment were carried at fair value less
subsequent accumulated depreciation and accumulated impairment losses. Valuations were
conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially
differ from the assets’ fair values as at the reporting date. The regularity of independent valuations
depends upon the volatility of movements in market values for the relevant assets.
Page 17 of 54
Revaluation adjustments were made on a class basis. Any revaluation increment is credited to
equity under the heading of asset revaluation surplus except to the extent that it reverses a
previous revaluation decrement of the same asset class that was previously recognised in the
surplus / deficit. Revaluation decrements for a class of assets are recognised directly in the
surplus / deficit except to the extent that they reverse a previous revaluation increment for that
class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment assets are written off to their estimated residual values
over their estimated useful lives to the APSC using, in all cases, the straight-line method of
depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date
and necessary adjustments are recognised in the current, or current and future reporting periods,
as appropriate.
Depreciation and amortisation rates applying to each class of depreciable asset are based on the
following useful lives:
Asset class
2013
2012
Leasehold improvements
Lease term
Lease term
Property, plant and equipment
1 to 7 years
1 to 7 years
Impairment
All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist,
the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s
recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in
use. Value in use is the present value of the future cash flows expected to be derived from the
asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s
ability to generate future cash flows, and the asset would be replaced if the APSC were deprived of
the asset, its value in use is taken to be its depreciated replacement cost.
Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
1.17 Intangibles
The APSC’s intangibles comprise intellectual property, purchased software and internally
developed software for internal use. These assets are carried at cost less accumulated amortisation
and accumulated impairment losses where the value of the asset exceeds $2,000 for software and
$60,000 (2012: $10,000) for intellectual property.
Intangibles are amortised on a straight-line basis over their anticipated useful life. The useful lives
of the APSC’s intangibles are between 2 to 10 years (2012: 2 to 10 years).
Page 18 of 54
All intangible assets were assessed for impairment as at 30 June 2013.
1.18 Inventories
Inventories held for sale are valued at the lower of cost and net realisable value.
Inventories held for distribution are valued at cost, adjusted for any loss in service potential.
Costs incurred in bringing each item of inventory to its present location and condition are assigned
as follows:

raw materials and stores – purchase cost on a first-in-first-out basis and

finished goods and work-in-progress – cost of direct materials and labour plus attributable
costs that are capable of being allocated on a reasonable basis.
Inventories acquired at no cost or nominal consideration are initially measured at current
replacement cost at the date of acquisition.
1.19 Taxation / Competitive Neutrality
The APSC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods
and Services Tax (GST).
Revenues, expenses, assets and liabilities are recognised net of GST except:

where the amount of GST incurred is not recoverable from the Australian Taxation Office and

for receivables and payables.
The APSC is not subject to competitive neutrality arrangements.
Page 19 of 54
1.20 Reporting of administered activities
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the
administered schedules and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and
using the same policies as for departmental items, including the application of Australian
Accounting Standards.
Administered Cash Transfers to and from the Official Public Account
Revenue collected by the APSC for use by the Government rather than the APSC is administered
revenue. Collections are transferred to the Official Public Account (OPA) maintained by the
Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make
payments under Parliamentary appropriation on behalf of Government. These transfers to and from
the OPA are adjustments to the administered cash held by the APSC on behalf of the Government
and reported as such in the schedule of administered cash flows and in the administered
reconciliation schedule.
Revenue
All administered revenues are revenues relating to ordinary activities performed by the APSC on
behalf of the Australian Government. As such, administered appropriations are not revenues of the
individual entity that oversees distribution or expenditure of funds as directed.
Loans and Receivables
Where loans and receivables are not subject to concessional treatment, they are carried at
amortised cost using the effective interest method. Gains and losses due to impairment,
derecognition and amortisation are recognised through profit or loss.
Indemnities
The maximum amounts payable under the indemnities given is disclosed in the schedule of
administered contingencies. At the time of completion of the financial statements, there was no
reason to believe that the indemnities would be called upon, and no recognition of any liability was
therefore required.
Grants and Subsidies
The APSC does not administer any grant or subsidy schemes on behalf of the Government.
Payments to CAC Act Bodies
The APSC does not administer payments to CAC Act bodies.
Note 2: Events Occurring After Reporting Date
There was no subsequent event that had the potential to affect the ongoing structure and financial
activities of the APSC.
Page 20 of 54
Note 3: Expenses
2013
$’000
2012
$’000
22,570
23,805
1,707
2,457
2,969
1,257
30,960
1,594
2,390
3,018
504
31,311
Note 3b: Supplier
Goods and Services
Consultants
Contractors
Stationery
Travel
Venue hire and catering
Publications and printing
Advertising and communications
Training
Information and communications technology
Facilities expense
Other goods and services expense
Total goods and services
1,238
8,144
101
1,733
1,141
237
63
460
2,791
122
469
16,499
1,922
9,666
168
2,187
1,468
436
61
534
2,645
325
600
20,012
Goods and services are made up of:
Provision of goods - related entities
Provision of goods - external parties
Rendering of services - related entities
Rendering of services - external parties
Total goods and services
9
463
2,685
13,342
16,499
40
821
2,801
16,350
20,012
332
320
2,408
65
176
2,981
2,801
418
214
3,753
19,480
23,765
Note 3a: Employee benefits
Wages and salaries
Superannuation:
Defined contribution plans
Defined benefit plans
Leave and other entitlements
Separation and redundancies
Total employee benefits
Other supplier expenses
Operating lease rentals - related parties
Sublease
Operating lease rentals - external parties
Minimum lease payments
Contingent rentals
Worker compensation expenses
Total other supplier expenses
Total supplier expenses
Page 21 of 54
Note 3c: Depreciation and amortisation
Depreciation:
Buildings
Property, plant and equipment
Total depreciation
Amortisation:
Intangibles
Total amortisation
Total depreciation and amortisation
Note 3d: Finance costs
Unwinding of discount on provision for restoration obligations
Total finance costs
2013
$’000
2012
$’000
435
471
906
734
468
1,202
283
283
1,189
309
309
1,511
19
19
22
22
-
9
9
(50)
112
62
24
24
(1)
106
105
12
12
-
12
12
167
48
Note 3e: Write-down and impairment of assets
Asset write-downs and impairment from:
Impairment on goods and services receivable
Total write-down and impairment of assets
Note 3f: Losses from asset sales
Buildings:
Proceeds from sale
Carrying value of assets sold
Property, plant and equipment:
Proceeds from sale
Carrying value of assets sold
Intangibles:
Proceeds from sale
Carrying value of assets sold
Total losses from asset sales
Page 22 of 54
Note 4: Income
2013
$’000
2012
$’000
4
1
28,009
986
29,000
5
2
28,219
1,843
30,069
39
39
3
-
23,201
23,201
25,830
25,830
Own-source revenue
Note 4a: Sale of goods and rendering of services
Provision of goods - related entities
Provision of goods - external parties
Rendering of services - related entities
Rendering of services - external parties
Total sale of goods and rendering of services
Note 4b: Resources received free of charge
Resources received free of charge
Gains
Note 4c: Reversals of previous asset write-downs and
impairments
Reversal of impairment losses
Revenue from Government
Note 4d: Revenue from Government
Appropriations:
Departmental appropriations
Total revenue from Government
Page 23 of 54
Note 5: Financial Assets
2013
$’000
2012
$’000
575
575
706
706
5,278
85
5,363
3,802
238
4,040
21,324
21,324
21,980
21,980
475
25
500
163
25
188
27,187
(2)
27,185
26,208
(6)
26,202
Note 5a: Cash and cash equivalents
Cash on hand or on deposit
Total cash and cash equivalents
Note 5b: Trade and other receivables
Goods and services:
Goods and services – related entities
Goods and services – external parties
Total goods and services receivable
Appropriations receivable:
For existing programs
Total appropriations receivable
Other receivables:
GST receivable from the Australian Taxation Office
Incentive receivable
Total other receivables
Total trade and other receivables (gross)
Less: impairment allowance account - goods and services
Total trade and other receivables (net)
All receivables are expected to be recovered in no more than 12 months.
Receivables are aged as follows:
Not overdue
Overdue by:
0 to 30 days
31 to 60 days
61 to 90 days
More than 90 days
Total receivables (gross)
Page 24 of 54
26,595
25,667
250
247
79
16
592
27,187
430
49
8
54
541
26,208
2013
$’000
2012
$’000
The impairment allowance account is aged as follows:
Overdue by:
more than 90 days
Total impairment allowance account
(2)
(2)
(6)
(6)
Reconciliation of impairment allowance account
Opening balance
Amounts written-off
Amounts recovered and reversed
(Increase) / decrease recognised in net surplus
Closing balance
(6)
4
2
(2)
(2)
(8)
5
2
(5)
(6)
Note 5b: Trade and other receivables (continued)
Credit terms for goods and services were within 30 days (2012: 30 days).
Page 25 of 54
Note 6: Non-Financial Assets
Note 6a: Land and buildings
Leasehold improvements:
Fair value
Accumulated depreciation
Total leasehold improvements
Total land and buildings
2013
$’000
2012
$’000
3,404
(748)
2,656
2,656
3,856
(717)
3,139
3,139
Leasehold improvements were assessed for impairment as at 30 June 2013, no
impairment loss was identified (2012: a loss of $242,000 was debited to the asset
revaluation surplus by asset class and included in the equity section of the balance sheet).
No leasehold improvements (2012: gross value of $266,000 and net value of $8,000) are
expected to be disposed of within the next 12 months.
Leasehold improvements were last subject to revaluation on 30 June 2011. All leasehold
improvements acquired since 1 July 2011 are carried at cost, which is materially reflective
of fair value.
Note 6b: Property, plant and equipment
Other property, plant and equipment:
Fair value
Accumulated depreciation
Total other property, plant and equipment
Total property, plant and equipment
2,896
(1,545)
1,351
1,351
3,060
(1,179)
1,881
1,881
No indicators of impairment were found for property, plant and equipment.
No material items of property, plant or equipment are expected to be sold or disposed of
within the next 12 months.
Leasehold improvements were last subject to revaluation on 30 June 2011. All leasehold
improvements acquired since 1 July 2011 are carried at cost, which is materially reflective of fair
value. Property, plant and equipment was last subject to revaluation on 30 June 2009. All property,
plant and equipment acquired since 1 July 2009 are carried at cost, which is materially reflective of
fair value.
Page 26 of 54
Note 6c: Intangibles
Computer software:
Internally developed - in progress
Internally developed - in use
Purchased
Accumulated amortisation
Total computer software
Intellectual property:
Internally developed - in use
Accumulated amortisation
Total intellectual property
Total intangibles
2013
$’000
2012
$’000
363
1,582
366
(1,441)
870
1,392
405
(1,167)
630
814
(786)
28
839
(815)
24
898
654
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
Page 27 of 54
Note 6d: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles 2013
Item
Intellectual
property
Total
intangibles
Total
$’000
Computer
software
internally
developed
$’000
$’000
$’000
$’000
3,060
(1,179)
405
(98)
1,392
(1,069)
839
(815)
2,636
(1,982)
9,552
(3,878)
3,139
1,881
307
323
24
654
5,674
64
-
47
-
(38)
-
552
-
13
-
527
-
638
-
(435)
(471)
(117)
(157)
(9)
(283)
(1,189)
(112)
(106)
-
-
-
-
(218)
Net book value 30 June 2013
2,656
1,351
152
718
28
898
4,905
Net book value as at 30 June 2012
represented by:
Gross book value
Accumulated depreciation / amortisation
and impairment
Net book value 30 June 2013
3,404
(748)
2,896
(1,545)
367
(215)
1,944
(1,226)
814
(786)
3,125
(2,227)
9,425
(4,520)
2,656
1,351
152
718
28
898
4,905
As at 1 July 2012
Gross book value
Accumulated depreciation / amortisation
and impairment
Net book value 1 July 2012
Additions
By purchase or internally developed
Revaluations and impairments through
equity
Depreciation / amortisation expense
Disposals
Other disposals
Page 28 of 54
Buildings
leasehold
improvements
Computer
software
purchased
$’000
Other
property,
plant &
equipment
$’000
3,856
(717)
Note 6d: (continued) Reconciliation of the opening and closing balances of property, plant and equipment and intangibles 2012
Item
Intellectual
property
Total
intangibles
Total
$’000
Computer
software
internally
developed
$’000
$’000
$’000
$’000
2,588
(767)
130
(41)
1,170
(851)
1,005
(962)
2,305
(1,854)
8,446
(2,632)
3,542
1,821
89
319
43
451
5,814
598
(243)
541
-
274
-
223
-
27
-
524
-
1,663
(243)
(734)
(468)
(56)
(219)
(34)
(309)
(1,511)
(24)
(13)
-
-
(12)
(12)
(49)
Net book value 30 June 2012
3,139
1,881
307
323
24
654
5,674
Net book value as at 30 June 2012
represented by:
Gross book value
Accumulated depreciation / amortisation
and impairment
Net book value 30 June 2012
3,856
(717)
3,060
(1,179)
405
(98)
1,392
(1,069)
839
(815)
2,636
(1,982)
9,552
(3,878)
3,139
1,881
307
323
24
654
5,674
As at 1 July 2011
Gross book value
Accumulated depreciation / amortisation
and impairment
Net book value 1 July 2011
Additions
By purchase or internally developed
Revaluations and impairments through
equity
Depreciation / amortisation expense
Disposals
Other disposals
Page 29 of 54
Buildings
leasehold
improvements
Computer
software
purchased
$’000
Other
property,
plant &
equipment
$’000
3,553
(11)
2013
$’000
2012
$’000
55
55
50
50
Note 6e: Inventories
Inventories held for distribution
Total inventories
In 2013, $7,000
(2012: $37,000).
of
inventory
held
for
distribution
was
recognised
as
an
expense
No items of inventory were recognised at fair value less cost to sell.
All inventory is expected to be sold or distributed in the next 12 months.
Note 6f: Prepayments paid
Prepayments paid
992
763
Prepayments paid are expected to be recovered in:
No more than 12 months
More than 12 months
Total prepayments paid
987
5
992
757
6
763
No indicators of impairment were found for prepayments paid.
Page 30 of 54
Note 7: Payables
2013
$’000
2012
$’000
Note 7a: Suppliers
Trade creditors and accruals
Operating lease rentals
Total supplier payables
4,254
1,801
6,055
5,783
1,782
7,565
Supplier payables expected to be settled within 12 months:
Related entities
External parties
Total
1,596
2,681
4,277
939
4,870
5,809
Supplier payables expected to be settled in greater than 12 months:
Related entities
1,778
External parties
Total
1,778
Total suppliers payable
6,055
1,756
1,756
7,565
Note 7b: Prepayments received
Prepayments received are expected to be settled in:
No more than 12 months
More than 12 months
Total prepayments received
7,373
63
7,436
6,826
119
6,945
Note 7c: Operating Lease incentives
Operating lease incentives are expected to be settled in:
No more than 12 months
More than 12 months
Total lease incentives
166
934
1,100
166
1,100
1,266
Note 7d: Other payables
Wages and salaries
Superannuation
Separations and redundancies
Other
Total other payables
640
105
638
29
1,412
748
102
44
894
All other payables are expected to be settled in no more than 12 months.
Page 31 of 54
Note 8: Provisions
2013
$’000
2012
$’000
Leave
Superannuation
Total employee provisions
6,590
541
7,131
6,354
506
6,860
Employee provisions are expected to be settled in:
No more than 12 months
More than 12 months
Total employee provisions
3,236
3,895
7,131
2,860
4,000
6,860
Note 8b: Provision for restoration obligations
Carrying amount 1 July
Additional provisions made
Amounts used
Amounts reversed
Unwinding of discount or change in discount rate
Closing balance 30 June
460
(39)
(68)
19
372
458
6
(26)
22
460
Provision for restoration obligations are expected to be settled in:
No more than 12 months
More than 12 months
Total provision for restoration obligations
372
372
38
422
460
Note 8a: Employee provisions
The APSC currently has two (2012: four) agreements for the leasing of premises which
have provisions requiring the APSC to restore the premises to their original condition at the
conclusion of the lease. The APSC has made a provision to reflect the present value of this
obligation.
Page 32 of 54
Note 9: Restructuring
Note 9a: Departmental Restructuring
There were no restructures for 2013 (2012: nil).
Note 9b: Administered Restructuring
There were no restructures for 2013 (2012: nil).
Page 33 of 54
Note 10: Cash Flow Reconciliation
2013
$’000
2012
$’000
575
575
-
706
706
-
(22,773)
23,201
(26,558)
25,830
1,189
167
1,511
48
(983)
(5)
(229)
(1,192)
491
(166)
518
271
(88)
(1,920)
38
(257)
1,356
(208)
165
(165)
721
2
401
563
Reconciliation of cash and cash equivalents as per
Balance Sheet to Cash Flow Statement:
Cash and cash equivalents as per:
Cash flow statement
Balance sheet
Difference
Reconciliation of net cost of services to net cash from
operating activities:
Net cost of services
Add revenue from Government
Adjustments for non-cash items
Depreciation and amortisation
(Gain) / loss on sale of assets
Changes in assets / liabilities
(Increase) / decrease in net receivables
(Increase) / decrease in inventories
(Increase) / decrease in prepayments paid
Increase / (decrease) in supplier payables
Increase / (decrease) in prepayments received
Increase / (decrease) in operating lease incentives
Increase / (decrease) in other payables
Increase / (decrease) in employee provisions
Increase / (decrease) in provision for restoration
obligations
Net cash from / (used by) operating activities
Note 11: Contingent Assets and Liabilities
The APSC has no quantifiable, unquantifiable or significant remote departmental contingent assets
and liabilities (2012: nil).
Page 34 of 54
Note 12: Senior Executive Remuneration
Note 12a: Senior Executive remuneration expenses for the reporting period
2013
$
2012
$
2,573,527
250,413
339,655
3,163,595
2,369,232
230,477
4,745
385,803
2,990,257
Post employment benefits:
Superannuation
Total post employment benefits
461,830
461,830
418,056
418,056
Other long-term benefits:
Long service leave
Total other long-term benefits
191,523
191,523
84,539
84,539
-
-
3,816,948
3,492,852
Short-term employee benefits:
Salary
Annual leave accrued
Performance bonuses
Motor vehicle and other allowances
Total short-term employee benefits
Termination benefits:
Voluntary redundancy payments
Total other long-term benefits
Total employment benefits
Notes:
1. This note is prepared on an accrual basis (therefore the performance bonus expenses disclosed
above may differ from the cash ‘Bonus paid’ in note 12b).
2. This note excludes acting arrangements and part year service where total remuneration
expensed for a senior executive was less than $180,000.
Page 35 of 54
Note 12b: Average annual reportable remuneration paid to substantive Senior Executives during the reporting period
Average annual reportable remuneration paid to substantive senior executives in 2013
Substantive
Contributed
Senior Reportable superannuation 3
Executives
salary 2
$
1
Average annual reportable remuneration
No.
$
Total remuneration (including part-time arrangements):
Less than $180,000
2
98,745
11,368
$180,000 to $209,999
2
178,559
27,787
$210,000 to $239,999
6
194,649
29,334
$240,000 to $269,999
2
223,250
39,415
$270,000 to $299,999
1
237,105
34,240
$300,000 to $329,999
1
282,864
45,145
$540,000 to $569,999
1
493,276
72,038
Total
15
Average annual reportable remuneration paid to substantive senior executives in 2012
Substantive
Senior
Reportable
Executives
salary 2
Average annual reportable remuneration 1
No.
$
Total remuneration (including part-time arrangements):
Less than $180,000
3
110,106
$180,000 to $209,999
3
176,258
$210,000 to $239,999
6
196,624
$240,000 to $269,999
1
209,298
$270,000 to $299,999
2
247,742
$480,000 to $509,999
1
444,375
Total
16
Page 36 of 54
Contributed
superannuation 3
$
14,099
22,566
28,960
39,529
36,198
64,673
Reportable
allowances 4
$
Bonus
paid 5
$
Total
reportable
remuneration
$
-
-
110,113
206,346
223,983
262,665
271,345
328,009
565,314
Reportable
allowances 4
$
Bonus
paid 5
$
Total
reportable
remuneration
$
-
2,372
-
124,205
198,824
225,584
248,827
286,312
509,048
Note 12b (continued): Average annual reportable remuneration paid to substantive Senior Executives during the reporting period
Notes:
1. This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount
for individuals in the band.
2. 'Reportable salary' includes the following:
a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column)
b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits)
c) exempt foreign employment income and
d) salary sacrificed benefits.
3. The 'contributed superannuation' amount is the average cost to the APSC for the provision of superannuation benefits to other highly paid staff in that
reportable remuneration band during the reporting period.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band
may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
Page 37 of 54
Note 12c: Average Annual Reportable Remuneration Paid to Other Highly Paid Staff during the Reporting Period
Average annual reportable remuneration paid to other highly paid staff in 2013
Average annual reportable remuneration
Total remuneration (including part-time
arrangements):
$180,000 to $209,999
Total number of other highly paid staff
1
Other
highly paid
staff No.
Reportable
salary 2
$
Contributed
superannuation 3
$
0
0
-
-
Other highly
paid staff
No.
Reportable
salary 2
$
Contributed
superannuation 3
$
1
1
179,677
18,802
Reportable
allowances
$
Bonus
paid 5
$
Total
reportable
remuneration
$
-
-
-
$
Bonus
paid 5
$
Total
reportable
remuneration
$
-
-
198,479
4
Average annual reportable remuneration paid to other highly paid staff in 2012
Average annual reportable remuneration 1
Total remuneration (including part-time arrangements):
$180,000 to $209,999
Total number of other highly paid staff
Page 38 of 54
Reportable
allowances
4
Note 12c (continued): Other highly paid staff
Notes:
1. This table reports staff:
a) who were employed by the APSC during the reporting period
b) whose reportable remuneration was $180,000 or more for the financial period and
c) were not required to be disclosed in Table B or director disclosures.
Each row is an averaged figure based on headcount for individuals in the band.
2. 'Reportable salary' includes the following:
a) gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column)
b) reportable fringe benefits (at the net amount prior to 'grossing up' to account for tax benefits)
c) exempt foreign employment income and
d) salary sacrificed benefits.
3. The 'contributed superannuation' amount is the average cost to the APSC for the provision of superannuation benefits to other highly paid staff in that
reportable remuneration band during the reporting period.
4. 'Reportable allowances' are the average actual allowances paid as per the 'total allowances' line on individuals' payment summaries.
5. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band
may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
Page 39 of 54
Note 13: Remuneration of Auditors
2013
$’000
2012
$’000
39
39
2013
$’000
2012
$’000
Financial Assets
Loans and receivables:
Cash and cash equivalents
Trade and other receivables
Incentive receivable
Total
575
5,361
25
5,961
706
4,034
25
4,765
Carrying amount of financial assets
5,961
4,765
Financial Liabilities
At amortised cost:
Trade creditors
Other payables
Total
4,254
29
4,283
5,783
44
5,827
Carrying amount of financial liabilities
4,283
5,827
Note 14b: Net income and expense from financial assets
Loans and receivables
Impairment on goods and services receivable
Net gain/(loss) loans and receivables
3
3
(9)
(9)
Net gain/(loss) from financial assets
3
(9)
Financial statement audit services were provided free of
charge to the APSC by the Australian National Audit Office
(ANAO).
Fair value of the services provided
Financial statement audit services
No other services were provided by the ANAO.
Note 14: Financial Instruments
Note 14a: Categories of financial instruments
Note 14c: Net income and expense from financial liabilities
The total interest expense from financial liabilities not at fair value from profit and loss is nil
(2012: nil).
Page 40 of 54
Note 14d: Fair value of financial instruments
The carrying amount of all financial assets and liabilities is a reasonable approximation of their fair
value. The net fair values of finance lease liabilities are based on discounted cash flows using the
interest rate implicit in the lease.
Note 14e: Credit risk
The APSC was exposed to minimal credit risk as loans and receivables were goods and services
receivable and incentive receivable. The maximum exposure to credit risk was the risk that arises
from potential default of a debtor. This amount was equal to the total amount of goods and services
and incentive receivable (see note 14a). The APSC has assessed the risk of the default on
payment and has allocated an allowance for impairment on goods and services receivable.
The APSC’s goods and services receivable are principally recoverable from other Australian
Government agencies. The incentive receivable is recoverable from a building lessor, with the
amount recoverable specified in the lease agreement. In addition, the APSC had policies and
procedures that guide debt recovery techniques that were to be applied.
The APSC holds no collateral to mitigate against credit risk.
Credit quality of financial instruments not past due or individually determined as impaired
Cash
Goods and services receivable
Incentive receivable
Total
Not Past
Due Nor
Impaired
2013
$’000
4,771
25
4,796
Past due
or
impaired
2013
$’000
592
592
Not Past
Due Nor
Impaired
2012
$’000
3,499
25
3,524
Past due
or impaired
2012
$’000
541
541
Ageing of financial assets that are past due but not impaired
Goods and services
receivable:
Year
0 to 30
days
$’000
31 to 60
days
$’000
61 to 90
days
$’000
90+
days
$’000
Total
$’000
2013
2012
250
430
247
49
79
8
14
48
590
535
The following list of assets have been individually assessed as impaired
Financial Assets
Loans and receivables
Goods and services receivable
Total
Page 41 of 54
2013
$’000
2012
$’000
(2)
(2)
(6)
(6)
These items are assessed as impaired as they are past due by 90 + days and it will be uneconomic
to pursue them.
Note 14f: Liquidity risk
The APSC’s financial liabilities were payables. The exposure to liquidity risk was based on the
notion that the APSC will encounter difficulty in meeting its obligations associated with financial
liabilities. This was highly unlikely as the APSC is appropriated funding from the Australian
Government and the APSC manages its budgeted funds to ensure it has adequate funds to meet
payments as they fall due. In addition, the APSC has policies in place to ensure timely payments
are made when due and has no past experience of default.
Maturities for non-derivative financial liabilities 2013
On
Within
1 to 2
demand
1 year
years
$’000
$’000
$’000
Financial Liabilities
Liabilities at amortised cost
4,254
Trade creditors
29
Other payables
Total liabilities at
4,283
amortised cost
Total
-
4,283
Maturities for non-derivative financial liabilities 2012
On
Within
demand
1 year
$’000
$’000
Financial Liabilities
Liabilities at amortised cost
Trade creditors
5,783
Other payables
44
Total liabilities at
5,827
amortised cost
Total
-
5,827
2 to 5
years
$’000
> 5 years
Total
$’000
$’000
-
-
4,254
29
4,283
-
-
-
4,283
1 to 2
years
$’000
2 to 5
years
$’000
> 5 years
Total
$’000
$’000
-
-
-
5,783
44
5,827
-
-
-
5,827
The APSC had no derivative financial instruments in either 2013 or 2012.
Note 14g: Market risk
The APSC held basic financial instruments that did not expose the APSC to certain market risks
such as ‘Currency risk’ and ‘Other price risk’.
There are no interest-bearing items on the balance sheet.
Page 42 of 54
Note 15: Financial Assets Reconciliation
Financial assets
Total financial assets as per balance sheet
Less: non-financial instrument components:
Appropriations receivable
Other receivables
Total non-financial instrument components
Total financial assets as per financial instruments
note
Page 43 of 54
Notes
5b
5b
2013
$’000
2012
$’000
27,760
26,908
21,324
475
21,799
5,961
21,980
163
22,143
4,765
Note 16: Administered - Expenses
Note 16a: Employee Benefits
Employee benefits
Wages and salaries
Total employee benefits expense
2013
$’000
2012
$’000
59,323
59,323
49,596
49,596
Note 17: Administered - Contingent Assets and Liabilities
The APSC has no quantifiable, unquantifiable or significant remote administered contingent assets
and liabilities (2012: nil).
Note 18: Administered - Financial Instruments
The APSC has no administered financial instruments.
Page 44 of 54
Note 19: Appropriations
Table A: Annual Appropriations (‘Recoverable GST exclusive’)
Appropriation Act
Annual
Appropriations
reduced 1
Appropriation
$'000
$'000
Departmental:
Ordinary annual
services
Other services:
Equity
Total Departmental
23,686
-
23,686
-
2013 Appropriations
FMA Act
Section 30
$'000
Section 31
$'000
Section 32
$'000
Total
Appropriation
$'000
Appropriation
applied in 2013
(current and
prior years)
$'000
29,918
-
53,604
(53,717)
(113)
29,918
-
53,604
(53,717)
(113)
-
Variance
$'000
Notes:
1. Appropriations reduced under Appropriation Acts (Nos. 1, 3 & 5) 2012-13: sections 10, 11 and 12 and under Appropriation Acts (Nos. 2, 4 & 6) 2012-13:
sections 12, 13, and 14. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a
departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the
Finance Minister's determination and is disallowable by Parliament.
On 29 June 2013, the Parliamentary Secretary to the Prime Minister sent a letter to the Finance Minister requesting a reduction in 2012-13 departmental
appropriations under Appropriation Act (No. 1) 2012-13 of $112,000. This reduction was determined by the Finance Minister on 5 August 2013 and will be
disclosed as a formal reduction in the 2013-14 Annual Appropriation table.
Page 45 of 54
Table A: Annual Appropriations (‘Recoverable GST exclusive’)
Appropriation Act
Annual
Appropriations
reduced 1
Appropriation
$'000
$'000
Departmental:
Ordinary annual
services
Other services:
Equity
Total Departmental
2012 Appropriations
FMA Act
Section 30
$'000
Section 31
$'000
Section 32
$'000
Total
Appropriation
$'000
Appropriation
applied in 2012
(current and
prior years)
$'000
Variance
$'000
26,014
-
-
31,356
-
57,370
(56,514)
856
26,014
-
-
31,356
-
57,370
(56,514)
856
Notes:
1. Appropriations reduced under Appropriation Acts (Nos. 1 & 3) 2011-12: sections 10, 11 and 12 and 15 and under Appropriation Acts (Nos. 2 & 4) 2011-12:
sections 12, 13, 14 and 17. Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a
departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the
Finance Minister's determination and is disallowable by Parliament.
Page 46 of 54
Table B: Departmental Capital Budgets (‘Recoverable GST exclusive’)
2013 Capital Budget Appropriations
Appropriation Act
Annual Capital Appropriations
Budget
reduced 2
$'000
$'000
FMA Act
Section
32
$'000
Total Capital
Budget
Appropriations
$'000
Capital Budget Appropriations applied
in 2013 (current and prior years)
Payments
for nonPayments
financial
for other
Total
assets 3
purposes
payments
$'000
$'000
$'000
Variance
$'000
Departmental:
Ordinary annual
services –
Departmental Capital
373
373
373
373
Budget 1
Notes:
1. Departmental Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 & 5). They form part of ordinary annual services, and are not separately
identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
2. Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2012-13: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset
to its original condition, and the capital repayment component of finance leases.
2012 Capital Budget Appropriations
Appropriation Act
Annual Capital Appropriations
Budget
reduced 2
$'000
$'000
FMA Act
Section
32
$'000
Total Capital
Budget
Appropriations
$'000
Capital Budget Appropriations applied
in 2012 (current and prior years)
Payments
for nonPayments
financial
for other
Total
assets 3
purposes
payments
$'000
$'000
$'000
Variance
$'000
Departmental:
Ordinary annual
services –
Departmental Capital
184
184
184
184
Budget 1
Notes:
1. Departmental Capital Budgets are appropriated through Appropriation Acts (Nos. 1, 3 & 5). They form part of ordinary annual services, and are not separately
identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual appropriations.
2. Appropriations reduced under Appropriation Acts (No. 1, 3 & 5) 2011-12: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.
3. Payments made on non-financial assets include purchases of assets, expenditure on assets which has been capitalised, costs incurred to make good an asset
to its original condition, and the capital repayment component of finance leases.
Page 47 of 54
Table C: Unspent Departmental Annual Appropriations (‘Recoverable GST exclusive’)
Authority
DEPARTMENTAL
Appropriation Act (No. 1) 2011-12
Appropriation Act (No. 1) 2012-13
Appropriation Act (No. 2) 2007-08
Total
2013
$’000
2012
$’000
22,365
24
22,389
22,590
24
22,614
Table D: Special Appropriations ('Recoverable GST exclusive')
Appropriation applied
2013
2012
$’000
$’000
Authority
Type
Purpose
Remuneration and
Allowances Act 1990 –
Section 8 - Administered
Unlimited
amount
An Act to provide for the remuneration and
allowances of holders and judicial offices,
Secretaries of Departments and holders of
public offices, Senators and Members of the
House of Representatives, Ministers and office
holders of the Parliament related matters(a).
-
18,467
Remuneration Tribunal
Act 1973 – Section 7(13)
- Administered
Total
Unlimited
amount
An Act to inquire into, and determine or provide
advice on, remuneration and related matters (b).
59,323
31,129
59,323
49,596
Notes:
(a) This special appropriation is administered by the APSC; however the Department of the House of Representatives
spends money from the CRF for the purposes of the Act. Due to amendments in 2011 to the
Remuneration Tribunal Act 1973, from 15 March 2012 payments are no longer made under this special appropriation.
(b) This special appropriation is administered by the APSC; however the Department of the House of Representatives,
the Department of the Senate and the Attorney General’s Department spends money from the CRF for the purposes of
the Act.
Page 48 of 54
Note 20: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund
Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except
under an appropriation made by law. The Department of Finance and Deregulation provided information to all
agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on
payments from special appropriations.
Note 20a: Departmental payments
During 2013 additional legal advice was received that indicated there could be breaches of section 83 under certain
circumstances with payments for long service leave, goods and services tax and payments under determinations of
the Remuneration Tribunal. The APSC will review its processes and controls over payments for these items to
minimise the possibility for future breaches as a result of these payments. The APSC has determined that there is a
low risk of the certain circumstances mentioned in the legal advice applying to departmental payments. The APSC
is not aware of any specific breaches of section 83 in respect of these items.
Note 20b: Administered payments
The possibility of this being an issue for the APSC’s administered payments was reported in the notes to the 201011 financial statements and the APSC undertook to investigate the issue during 2012. Payments are made by the
drawing agencies from the special appropriations for the payment of salaries and allowances to Parliamentarians’
and Judicial Office Holders.
During 2012, the APSC requested each drawing agency to review their exposure to risks of not complying with
statutory conditions on payments from appropriations. This involved:

identifying each special appropriation

determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions
and assessing the extent to which existing payment systems and processes satisfy those conditions

determining procedures to confirm risk assessments in medium risk cases and to quantify the extent of
non-compliance, if any, in higher risk situations

obtaining legal advice as appropriate to resolve questions of potential non-compliance and

considering legislative or procedural changes to reduce the risk of non-compliance in the future to an
acceptably low level.
The APSC and drawing agencies identified that special appropriations containing statutory conditions for payment,
comprised:

Remuneration Tribunal Act 1973 and

Remuneration and Allowances Act 1990 (from 15 March 2012 no payments were made from this special
appropriation).
During 2012 this work was completed in respect of special appropriations with statutory conditions for payment,
representing total expenditure of $59,323,000 in 2013 (2012: $49,596,000).
The work conducted to date has identified:
a) One payment (2012: Three payments) was made without legal authority and are in contravention of
section 83 of the Constitution. This occurred for payments reported under the Remuneration Tribunal Act
1973.
Of the total amount paid in contravention of section 83 identified in (a) above:

amounts totalling $3,278 (2012 $3,605) were incorrectly paid and

amounts totalling $3,278 (2012 $3,605) have been recovered or offset against a later payment.
In order to reduce the risks of non-compliance to an acceptably low level:
a) changes were made to the Remuneration Tribunal Act 1973 which were enacted on 28 May 2013.
b) systems and procedural changes have been reviewed for the Remuneration Tribunal Act 1973.
Page 49 of 54
Table A – Summary of conditions, breaches and remedial action
Appropriations Expenditure Review
Breaches identified to 30 June 2013
identified as
in 2013
complete?
subject to
conditions
$000
Special
Appropriations
Remuneration
Tribunal Act
1973
Remuneration
and Allowances
Act 1990
59,323
Yes
1
3
3
Recovered/off
set As at 30
June 2013
$000
3
-
-
-
-
-
-
Appropriations
identified as
subject to
conditions
Expenditure
in 2012
Review
complete?
Page 50 of 54
Number
Total
$000
Incorrect
$000
Breaches identified to 30 June 2012
Remedial action taken
or proposed
Yes/No
Indicative
extent
No
-
Legislative change
enacted on 28 May 2013.
No
-
As this appropriation is
no longer utilised, no
further action is required.
Potential breaches to
date yet to be
resolved
Remedial action taken or
proposed
$000
Special
Appropriations
Remuneration
Tribunal Act
1973
Remuneration
and Allowances
Act 1990
Yes/No
Potential breaches
to date yet to be
resolved
Yes/No
Number
Total
$000
Incorrect
$000
Yes/No
Indicative
extent
4
Recovered/offset
As at 30 June
2012
$000
4
31,129
Yes
3
4
No
-
Legislative change
planned.
18,467
Yes
Nil
-
-
-
No
-
As this appropriation is
no longer utilised, no
further action is required.
Note 21: Special Accounts
Other Trust Moneys Special Account (Departmental)
Appropriation: Financial Management and Accountability Act 1997; s21.
Establishing Instrument: Financial Management and Accountability Act 1997; s20.
Purpose: Expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the
Commonwealth.
A determination issued by the Finance Minister on 30 May 2012 abolished this account on 20 June 2012.
For the period 1 July 2011 to 20 June 2012, the account had nil balances and there were no transactions debited or
credited to it.
Note 22: Compensation and Debt Relief
2013
$
2012
$
No ‘Act of Grace’ expenses were expended during the
reporting period (2012: no expenses).
-
-
No waivers of amounts owing to the Australian Government
were made pursuant to subsection 34(1) of the Financial
Management and Accountability Act 1997 (2012: no waivers).
-
-
No payments were provided under the Compensation for
Detriment caused by Defective Administration (CDDA)
Scheme during the reporting period (2012: no payments).
-
-
No ex-gratia payments were provided for during the reporting
period (2012: no payments).
-
-
No payments were provided in special circumstances relating
to APS employment under s73 of the Public Service Act 1999
(PS Act) during the reporting period (2012: no payments).
-
-
Compensation and debt relief -Departmental
Page 51 of 54
2013
2012
$
$
No ‘Act of Grace’ expenses were expended during the
reporting period (2012: no expenses).
-
-
No waivers of amounts owing to the Australian Government
were made pursuant to subsection 34(1) of the Financial
Management and Accountability Act 1997 (2012: no waivers).
-
-
No payments were provided under the Compensation for
Detriment caused by Defective Administration (CDDA)
Scheme during the reporting period (2012: no payments).
-
-
No ex-gratia payments were provided for during the reporting
period (2012: no payments).
-
-
No payments were provided in special circumstances relating
to APS employment under s73 of the Public Service Act 1999
(PS Act) during the reporting period (2012: no payments).
-
-
Compensation and debt relief – Administered
Page 52 of 54
Note 23: Reporting of Outcomes
Note 23a: Net cost of Outcome delivery
Outcome 1
2013
$’000
Departmental
Expenses
Own-source income
Administered
Expenses
Own-source income
Net (cost) / contribution of outcome delivery
2012
$’000
(51,815)
29,042
(56,666)
30,108
(59,323)
(82,096)
(49,596)
(76,154)
Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in
calculating the actual Budget outcome.
Note 23b: Major classes of Departmental expense, income, assets and liabilities by outcome
As the APSC only has one outcome, major classes of departmental assets and liabilities for Outcome 1 are as per
the balance sheet and major classes of departmental expenses and income for Outcome 1 are as per the
statement of comprehensive income.
Note 23c: Major classes of Administered expense, income, assets and liabilities by outcome
Administered expenses for Outcome 1 are as per the schedule of expenses administered on behalf of Government.
Page 53 of 54
Note 24: Net cash appropriation arrangements
Total comprehensive income (loss) less
depreciation/amortisation expenses previously funded
through revenue appropriations 1
Plus: depreciation / amortisation expenses previously funded
through revenue appropriation
Total comprehensive income (loss) - as per the statement
of comprehensive income
2013
$’000
2012
$’000
1,165
(737)
(194)
(777)
428
(971)
1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations
for depreciation / amortisation expenses ceased. Entities now receive a separate capital budget provided through
equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital
expenditure is required.
Page 54 of 54