for the period 1 July 2011 to 31 May 2012

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1.1 Objectives of the ABCC

The ABCC ceased operations on 31 May 2012 in accordance with the Fair Work (Building Industry) Act 2012. The functions, staff, assets, liabilities and Departmental appropriations of the ABCC were transferred to the Office of the Fair Work Building Industry Inspectorate (FWBII).

The Office of the Australian Building and Construction Commissioner (ABCC) is an independent statutory body responsible for investigating and prosecuting breaches of the Building and Construction Industry Improvement Act 2005, the Independent Contractors Act 2006 and the Fair Work Act 2009 in relation to the building and construction industry.

The ABCC has a single outcome and single program. The outcome is: Workplace relations laws are enforced in building and construction industry workplaces.

ABCC 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 ABCC in its own right. Administered activities involve the management or oversight by the ABCC, on behalf of the government, of items controlled or incurred by the government.

The ABCC has prime responsibility for the following matters in respect of the building and construction industry:

  • investigating suspected contraventions of the Building and Construction Industry Improvement Act 2005, the Independent Contractors Act 2006, the Fair Work Act 2009, workplace agreements, orders and awards
  • instituting proceedings against industry participants contravening the relevant Acts, agreements, orders and awards
  • intervening in matters before Fair Work Australia or the courts that involve an industry participant or building work
  • monitoring, promoting and securing compliance with the National Code
  • providing advice and assistance to industry participants regarding their rights and obligations
  • disseminating information about the relevant Acts, the National Code and promoting appropriate standards of conduct by industry participants
  • if appropriate, referring matters to other Commonwealth, state or territory bodies including the Australian Competition and Consumer Commission, the Australian Taxation Office, and the Australian Federal Police

The ABCC is part of the legal entity that is the Australian Government, which is ultimately responsible for all the ABCC’s debts.

Details of activities administered by the ABCC on behalf of the government are described at Note 1.19.

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:

a) Finance Minister’s Orders (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 results 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 entity 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.

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 accounting period.

Of the new standards, amendments to standards and interpretations issued prior to the sign off date none have had a material financial impact on the ABCC.

Other new standards/revised standards/interpretations/amending standards that were issued prior to the sign off date and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the ABCC.

Future Australian Accounting Standard Requirements

Of the new standards, amendments to standards and interpretations issued by the Australian Accounting Standards Board prior to the sign off date that are applicable to future periods none have had a material financial impact on the ABCC.

Other new standards/revised standards/interpretations/amending standards that were issued prior to the sign off date and are applicable to the future reporting period are not expected to have a future financial impact on the ABCC.

1.5 Revenue
Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer

b) the ABCC retains no managerial involvement or effective control over the goods

c) the revenue and transaction costs incurred can be reliably measured, and

d) it is probable that the economic benefits associated with the transaction will flow to the ABCC.

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:

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

b) the probable economic benefits associated with the transaction will flow to the ABCC.

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

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

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

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 these 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 agency 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 ABCC 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. Appropriation receivables 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.

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 FMO’s require that distributions to owners be debited to contributed equity unless in the nature of a dividend.

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of end of reporting period 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 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 ABCC 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 applied at the time the leave is taken, including the ABCC’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave is based on the shorthand method permitted for small agencies under the FMOs. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The ABCC 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 ABCC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

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

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance and Deregulation’s administered schedule and notes.

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

The liability for superannuation recognised as at 31 May represents outstanding contributions for the final fortnight of the year.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased 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 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.

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:

a) cash on hand

b) 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

c) cash held by outsiders and

d) cash in special accounts.

1.12 Financial Assets

The ABCC classifies its financial assets in the following categories:

a) financial assets at fair value through profit or loss

b) held-to-maturity investments

c) available-for-sale financial assets

d) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. The ABCC only holds ‘loans and receivables.’

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 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 or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

1.13 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or 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.

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 agency’s accounts immediately prior to the restructuring.

1.16 Leasehold Improvements and Plant and Equipment
Asset Recognition Threshold

Purchases of leasehold improvements and plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than:

• $20,000 for leasehold improvements and

• $2,000 for all other classes.

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

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

Revaluations

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

Asset Class

Fair value measured at:

Leasehold improvements

Depreciated replacement cost

Plant and equipment

Depreciated replacement cost

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

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised 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 is restated to the revalued amount.

Depreciation

Depreciable leasehold improvements and plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the ABCC 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 rates applying to each class of depreciable asset are based on the following useful lives:

Asset Class

2012

2011

Leasehold improvements

Lease term

Lease term

Plant and equipment

1 to 10 years

4 to 10 years

Impairment

All assets were assessed for impairment at 31 May 2012. 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 ABCC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of leasehold improvements, 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 ABCC’s intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of ABCC’s software is 3 to 6 years (2011: 3 to 6 years).

All software assets were assessed for indications of impairment as at 31 May 2012.

1.18 Taxation

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

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

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

b) for receivables and payables.

1.19 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 ABCC for use by the government rather than the ABCC 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 ABCC 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 the course of ordinary activities performed by the ABCC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that overseas distribution or expenditure of the funds as directed.

The ABCC can receive monies for court-awarded penalties under the Building and Construction Industry Improvement Act 2005, the Independent Contractors Act 2006 and the Fair Work Act 2009.

Collectability of debts is reviewed at balance date. Impairment allowances are made when collectability of the debt is judged to be less, rather than more, likely.

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 and loss.

NOTE 2: EVENTS AFTER THE REPORTING PERIOD

There were no subsequent events that had the potential to materially affect the financial statements.

NOTE 2: EVENTS AFTER THE REPORTING PERIOD

There were no subsequent events that had the potential to materially affect the financial statements.

  2012 2011
 

$’000

$’000

 

NOTE 3: EXPENSES

NOTE 3A: EMPLOYEE BENEFITS

Wages and salaries

(11,551)

(12,244)

Superannuation

(1,926)

(1,827)

Leave and other entitlements

(1,787)

(1,059)

Separation and redundancies

(1,183)

(773)

Total employee benefits

(16,447)

(15,903)

NOTE 3B: SUPPLIERS

Goods and services

 

 

Information and communications technology

(1,452)

(1,386)

Legal

(4,170)

(4,949)

Travel

(1,074)

(1,074)

Other

(2,462)

(2,310)

Total goods and services

(9,158)

(9,719)

Goods and services are made up of:

 

 

Provision of goods – external parties

(408)

(473)

Rendering of services – related entities

(2,082)

(1,751)

Rendering of services – external parties

(6,668)

(7,495)

Total goods and services

(9,158)

(9,719)

Other supplier expenses

 

 

Operating lease rentals – external parties:

 

 

     Minimum lease payments

(3,060)

(3,398)

Workers compensation expenses

(194)

(161)

Total other supplier expenses

(3,254)

(3,559)

Total supplier expenses

(12,412)

(13,278)

  2012 2011
 

$’000

$’000

NOTE 3C: DEPRECIATION AND AMORTISATION

 

 

Depreciation

 

 

Leasehold improvements

(947)

(1,138)

Plant and equipment

(102)

(108)

Total depreciation

(1,049)

(1,246)

Amortisation

 

 

    Intangibles:

 

 

         Computer software

(124)

(135)

Total amortisation

(124)

(135)

Total depreciation and amortisation

(1,173)

(1,381)

 

NOTE 4: INCOME

 

 

Own-Source-Revenue

 

 

NOTE 4A: OTHER REVENUE

 

 

Other revenue – external parties

576

134

Total other revenue

576

134

GAINS

 

 

NOTE 4B: OTHER GAINS

 

 

Resources received free of charge

54

799

Total other gains

54

799

Revenue from Government

 

 

NOTE 4C: REVENUE FROM GOVERNMENT

 

 

Appropriation:

 

 

       Departmental appropriation

33,552

33,332

Total revenue from government

33,552

33,332

 

  2012 2011
 

$’000

$’000

NOTE 5: FINANCIAL ASSETS

 

 

 

NOTE 5A: CASH

 

 

Cash on hand or on deposit

34

258

Total cash

34

258

NOTE 5B: TRADE AND OTHER RECEIVABLES

 

 

Appropriations receivable:

 

 

     For existing programs

46,198

38,249

Total appropriations receivable

46,198

38,249

Other receivables:

 

 

     GST receivable from the Australian Taxation Office

122

318

     Other

18

11

Total other receivables

140

329

Total trade and other receivables

46,338

38,578

Receivables are expected to be recovered in:

 

 

     No more than 12 months

46,338

38,578

Total trade and other receivables

46,338

38,578

Receivables are aged as follows:

 

 

Not overdue

46,338

38,575

Overdue by:

 

 

     More than 90 days

3

Total trade and other receivables

46,338

38,578

No indicators of impairment were found for receivables.

 

  2012 2011
 

$’000

$’000

NOTE 6: NON-FINANCIAL ASSETS

 

 

NOTE 6A: LEASEHOLD IMPROVEMENTS

 

 

Leasehold improvements

 

 

     Fair value

8,488

9,055

     Accumulated depreciation

(5,037)

(4,717)

Total leasehold improvements

3,451

4,338

No indicators of impairment were found for leasehold improvements.

It is expected that the Adelaide leasehold improvement will be disposed of within the next 12 months. No other leasehold improvements are expected to be sold or disposed of within the next 12 months.

NOTE 6B: PLANT AND EQUIPMENT

 

 

Plant and equipment:

 

 

     Fair value

499

543

     Accumulated depreciation

(256)

(210)

Total plant and equipment

243

333

No indicators of impairment were found for plant and equipment.

No plant and equipment is expected to be sold or disposed of within the next 12 months.

 

NOTE 6C: ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT

Table A – Reconciliation of the opening and closing balances of leasehold improvements, plant and equipment (2012)

 
 

LEASEHOLD IMPROVEMENTS

PLANT AND EQUIPMENT

TOTAL

 

$’000

$’000

$’000

 

As at 1 June 2012

Gross book value

9,055

543

9,598

Accumulated depreciation and impairment

(4,717)

(210)

(4,927)

Net book value 1 June 2012

4,338

333

4,671

Additions

60

12

72

Depreciation expense

(947)

(102)

(1,049)

Disposals

Net book value 31 May 2012

3,451

243

3,694

Net book value as at 31 May 2012 represented by:

Gross book value

8,488

499

8,987

Accumulated depreciation and impairment

(5,037)

(256)

(5,293)

Net book value 31 May 2012

3,451

243

3,694

As at 1 July 2010

Gross book value

Gross book value

8,765

568

9,333

Accumulated depreciation and impairment

(4,046)

(462)

(4,508)

Net book value 1 July 2010

4,719

106

4,825

Additions

781

356

1,137

Depreciation expense

(1,138)

(108)

(1,246)

Disposals

(24)

(21)

(45)

Net book value 30 June 2011

4,338

333

4,671

Net book value as at 30 June 2011 represented by:

Gross book value

9,055

543

9,598

Accumulated depreciation and impairment

(4,717)

(210)

(4,927)

Net book value 30 June 2011

4,338

333

4,671

 
   

2012

2011

   

$’000

$’000

NOTE 6D: INTANGIBLES

Computer software:

    Internally developed – in use

 

794

794

    Accumulated amortisation

 

(637)

(513)

Total computer software

 

157

281

Total intangibles

 

157

281

No indicators of impairment were found for intangible assets.

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

NOTE 6E: INTANGIBLES – COMPUTER SOFTWARE

Table B – Reconciliation of the opening and closing balances of intangibles (2011-12)

 
   

COMPUTER SOFTWARE –INTERNALLY DEVELOPED

TOTAL

   

$’000

$’000

As at 1 July 2011

Gross book value

 

794

794

Accumulated amortisation and impairment

 

(513)

(513)

Net book value 1 July 2011

 

281

281

Additions

 

Amortisation expense

 

(124)

(124)

Net book value 31 May 2012

 

157

157

 

Net book value as at 31 May 2012 represented by:

Gross book value

 

794

794

Accumulated amortisation and impairment

 

(637)

(637)

Net book value 31 May 2012

 

157

157

 

As at 1 July 2010

Gross book value

 

794

794

Accumulated amortisation and impairment

 

(378)

(378)

Net book value 1 July 2010

 

416

416

Additions

 

Amortisation expense

 

(135)

(135)

Net book value 30 June 2011

 

281

281

 

Net book value as at 30 June 2011 represented by:

Gross book value

 

794

794

Accumulated amortisation and impairment

 

(513)

(513)

Net book value 30 June 2011

 

281

281

 
   

2012

2011

   

$’000

$’000

 

NOTE 6F: OTHER NON-FINANCIAL ASSETS

 

Prepayments

 

635

409

Total other non-financial assets

 

635

409

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

NOTE 7: PAYABLES

NOTE 7A: SUPPLIERS

 

Trade creditors and accruals

 

(1,025)

(730)

Total supplier payables

 

(1,025)

(730)

 

Supplier payables expected to be settled within 12 months:

     

Related parties

 

(366)

(117)

External parties

 

(659)

(613)

Total supplier payables

 

(1,025)

(730)

Settlement is usually made within 30 days.

 

NOTE 7B: OTHER PAYABLES

 

Wages and salaries

 

(324)

(270)

Superannuation

 

(51)

(41)

Performance pay

 

(1,343)

Lease incentive

 

(1,765)

(2,208)

Lease straightline

 

(457)

(426)

Other

 

(19)

(16)

Total other payables

 

(2,616)

(4,304)

 

Total other payables are expected to be settled in:

No more than 12 months

 

(971)

(2,199)

More than 12 months

 

(1,645)

(2,105)

Total other payables

 

(2,616)

(4,304)

NOTE 8: PROVISIONS

NOTE 8: EMPLOYEE PROVISIONS

 

Annual leave

 

(1,269)

(1,098)

Long service leave

 

(2,401)

(1,746)

Separations and redundancies

 

(624)

Total employee provisions

 

(4,009)

 

Employee provisions are expected to be settled in:

No more than 12 months

 

(3,498)

(2,324)

More than 12 months

 

(796)

(520)

Total employee provisions

 

(4,294)

(2,844)

 
      2012 2011

 

 

 

$’000

$’000

NOTE 9: CASH FLOW RECONCILIATION

Reconciliation of cash as per Balance Sheet to Cash Flow Statement

 

 

Cash as per:

 

Cash flow statement

   

34  

258 

Balance sheet

   

34  

258 

Difference

   

–  

– 

 

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

Net cost of services

   

(29,403)  

(29,629) 

Add revenue from Government

   

33,552  

33,332 

 

Adjustments for non-cash items

Loss on disposal of assets

   

–  

45 

Write on of assets

   

–  

(770) 

Depreciation / amortisation

   

1,173  

1,381 

 

Changes in assets/liabilities

(Increase) in net receivables

   

(7,760)  

(3,852) 

(Increase) in prepayments

   

(225)  

(5) 

(Decrease) in supplier payables

   

(1,393)  

(186) 

(Decrease) in employee provisions

   

1,450  

118 

Net cash from operating activities

   

(2,606)  

434 

NOTE 10: CONTINGENT ASSETS AND LIABILITIES

 

 CLAIMS FOR COSTS

    TOTAL

 

2012

2011   

2012

2011   

 

$'000

$'000   

$'000

$'000   

Contingent assets

 

 

 

 

 

 

    Balance recognised from transfer from ABCC

– 

–    

– 

–    

    New contingent assets recognised

15 

–    

15 

–    

Total contingent assets

15 

–    

15 

–    

 

Quantifiable Contingencies

The Schedule of Contingencies reports $15,000 of contingent assets in respect to court matters settled that include an amount for costs in favour of the ABCC but the court has yet to issue a decision (2011: Nil).

The ABCC has no quantifiable contingent liabilities (2011: Nil).

Unquantifiable Contingencies

The ABCC has fourteen unquantifiable contingent assets for matters before the court that are considered more likely than not to lead to costs in favour of the ABCC (2011: Nil).

The ABCC has one unquantifiable contingent liability for a matter before the court that is considered more likely than not to lead to costs against the ABCC (2011: Nil).

Significant Remote Contingencies

The ABCC has no significant remote contingent assets (2011: Nil).

The ABCC has no significant remote contingent liabilities (2011: Nil).

      2012 2011

 

 

 

$’000

$’000

NOTE 11: SENIOR EXECUTIVE REMUNERATION

NOTE 11A: SENIOR EXECUTIVE REMUNERATION EXPENSE FOR THE REPORTING PERIOD

 

Short-term employee benefits

    Salary

 

 

(1,841,410)

(1,469,638)

    Annual leave accrued

 

 

(80,076)

(70,830)

    Performance bonuses

 

 

(176,000)

(194,900)

    Motor vehicle and other allowances

 

 

(316,245)

(348,502)

Total short-term employee benefits

 

 

(2,413,731)

(2,083,870)

 

Post-employment benefits:

    Superannuation

 

 

(292,451)

(248,054)

Total post-employment benefits

 

  (292,451)

(248,054)

 

Other long-term benefits:

    Long-service leave

 

 

(79,900)

(129,874)

Total other long-term benefits

 

  (79,900)

(129,874)

 

Termination benefits

 

 

(283,705)

(95,479)

Total employment benefits

 

  (3,069,787)

(2,557,277)

Notes:

1 Note 11a was prepared on an accrual basis (so the performance bonus expenses disclosed above differ from the cash ‘Bonus paid’ in Note 11b.

2 Note 11a excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $150,000.

NOTE 11B: AVERAGE ANNUAL REPORTABLE REMUNERATION PAID FOR SUBSTANTIVE SENIOR EXECUTIVES DURING THE REPORTING PERIOD

2012

AVERAGE ANNUAL REPORTABLE REMUNERATION1 SENIOR EXECUTIVES NO.  REPORTABLE SALARY2
$
CONTRIBUTED SUPERANNUATION3
$
REPORTABLE ALLOWANCES4
$
BONUS PAID5
$
    TOTAL

$

TOTAL REMUNERATION
(INCLUDING PART-TIME ARRANGEMENTS):

$0 TO $149,999 1 141,835 1,680 - - 143,515
$150,000 TO $179,999 1 116,902 21,674 - 18,900 157,476
$180,000 TO $209,999 2 180,277 12,866 - - 193,143
$210,000 TO $239,999 3 192,984 16,884 - 14,200 224,068
$240,000 TO $269,999 2 194,508 33,898 - 23,800 252,206
$270,000 TO $299,999 - - - - - -
$300,000 TO $329,999 1 229,962 48,910 - 31,500 310,372
$330,000 TO $359,999 2 283,227 37,754 - 12,950 333,931

TOTAL

12

 

 

   

 

 

 

2011

AVERAGE ANNUAL REPORTABLE REMUNERATION1 SENIOR EXECUTIVES NO.  REPORTABLE SALARY2
$
CONTRIBUTED SUPERANNUATION3
$
REPORTABLE ALLOWANCES4
$
BONUS PAID5
$
    TOTAL

$

TOTAL REMUNERATION
(INCLUDING PART-TIME ARRANGEMENTS):

$0 TO $149,999 1 94,399 1,453 - 22,798 118,650
$150,000 TO $179,999 3 139,881 22,707 - 11,333 173,921
$180,000 TO $209,999 3 177,943 8,077 - 11,833 197,853
$210,000 TO $239,999 3 194,281 17,293 - 16,167 227,741
$240,000 TO $269,999 1 175,758 45,603 - 22,500 243,861
$270,000 TO $299,999 1 197,930 50,001 - 32,000 281,808
$300,000 TO $329,999 1 215,060 63,599 - 30,000 308,659

TOTAL

13

 

 

   

 

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 net amount prior to ‘grossing up’ to account for tax benefits); and

c) exempt foreign employment income.

3 The ‘Contributed superannuation’ amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslips.

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 remuneration band. The ‘Bonus paid’ within a particular band may vary between financial years due to factors such as individuals commencing with or leaving the ABCC during the financial year.

6 Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘Reportable salary’ column, excluding salary sacrificed superannuation which is reported in the ‘Contributed superannuation’ column.

NOTE 11C: OTHER HIGHLY PAID STAFF

2012

AVERAGE ANNUAL REPORTABLE REMUNERATION1 SENIOR EXECUTIVES NO.  REPORTABLE SALARY2
$
CONTRIBUTED SUPERANNUATION3
$
REPORTABLE ALLOWANCES4
$
BONUS PAID5
$
    TOTAL

$

TOTAL REMUNERATION
(INCLUDING PART-TIME ARRANGEMENTS):

$150,000 TO $179,999 1 154,718 2,407 - 20,200 177,325
$210,000 TO $239,999 1 180,576 25,859 - 23,000 229,435

TOTAL

2

 

 

   

 

 

2011

AVERAGE ANNUAL REPORTABLE REMUNERATION1 SENIOR EXECUTIVES NO.  REPORTABLE SALARY2
$
CONTRIBUTED SUPERANNUATION3
$
REPORTABLE ALLOWANCES4
$
BONUS PAID5
$
    TOTAL

$

TOTAL REMUNERATION
(INCLUDING PART-TIME ARRANGEMENTS):

$150,000 TO $179,999 1 154,129 17,686 - 16,800 188,615

TOTAL

1

 

 

   

 

 

Notes:

1 This table reports staff:

a) who were employed by the ABCC during the reporting period;

b) whose reportable remuneration was $150,000 or more for the financial period; and

c) were not required to be disclosed in Tables A, 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 net amount prior to ‘grossing up’ to account for tax benefits); and

c) exempt foreign employment income.

3 The ‘Contributed superannuation’ amount is the average actual superannuation contributions paid to other highly paid staff in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals’ payslips.

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 remuneration band. The ‘Bonus paid’ within a particular band may vary between financial years due to factors such as individuals commencing with or leaving the ABCC during the financial year.

6 Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and expense payment fringe benefits. Salary sacrifice benefits are reported in the ‘Reportable salary’ column, excluding salary sacrificed superannuation which is reported in the ‘Contributed superannuation’ column.

NOTE 12: REMUNERATION OF AUDITORS

      2012 2011

 

 

 

$’000

$’000

 

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

 

 

 

 

 

Fair value of the services provided

 

 

 

 

 

     Financial statement audit services

 

 

(22)

(22)

No other services were provided free of charge to the ABCC by the ANAO.

NOTE 13: FINANCIAL INSTRUMENTS

NOTE 13A: CATEGORIES OF FINANCIAL INSTRUMENTS

 

Financial Assets

Loans and receivables:

    Cash

 

 

34

258

    Trade receivables and other receivables

 

 

18

11

Carrying amount of financial assets

 

 

52

269

 

Financial Liabilities

At amortised cost:

    Payables – suppliers

 

 

(1,025)

(730)

    Carrying amount of financial liabilities

 

 

(1,025)

(730)

The carrying amount represents the fair value of the above categories of financial instruments.

There was no net income/expense from financial assets.

NOTE 13B: CREDIT RISK

The ABCC is exposed to minimal credit risk through trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. The ABCC's debtors are generally limited to other Australian Government agencies and ABCC employees. The ABCC has policies and procedures that guide the recovery of employee debts.

The ABCC holds no collateral to mitigate against credit risk.

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

  NOT PAST DUE
NOR IMPAIRED
NOT PAST DUE NOR IMPAIRED PAST DUE OR IMPAIRED PAST DUE OR IMPAIRED
  2012 2011 2012 2011

 

$’000

$’000

$’000

$’000

Loans and receivables

    Trade receivables

18

8

3

Total

18

8

3

 

NOTE 13C: LIQUIDITY RISK

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

Maturities for non-derivative financial liabilities 2012

    WITHIN 1 YEAR 1 TO 5 YEARS TOTAL

 

 

2012

2012

2012

 

 

$’000

$’000

$’000

 

Other liabilities

    Payables – suppliers

 

1,025

1,025

Total

 

1,025

1,025

 
Maturities for non-derivative financial liabilities 2011
 
    WITHIN 1 YEAR 1 TO 5 YEARS Total

 

 

2011

2011

2011

 

 

$’000

$’000

$’000

 

Other liabilities

    Payables – suppliers

 

730

730

Total

 

730

730

 

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

The ABCC has no derivative financial liabilities in the current and prior year.

NOTE 13D: MARKET RISK

The ABCC holds basic financial instruments that do not expose the agency to certain market risks. The ABCC is not exposed to ‘interest rate risk’, ‘currency risk’ or ‘other price risk’.

 

    Notes 2012 2011

 

   

$’000

$’000

NOTE 14: FINANCIAL ASSETS RECONCILIATION

Financial assets

 

Total financial assets as per balance sheet

 

 

46,372

38,836

Less: non-financial instrument components

 

 

 

     Appropriation receivable

 

5b

46,198

38,249

     Other receivables

 

 

122

318

Total non-financial instrument components

 

 

46,320

38,567

 

 

 

 

 

Total financial assets as per financial instruments note

 

 

52

269

 
 

 

2012

2011

 

$(*)

$(*)

NOTE 15: ADMINISTERED EXPENSES

Impairment of Assets

 

 

 

Asset impairments from court-awarded penalties

 

(16,000)

Total impairment of assets

 

(16,000)

NOTE 16: ADMINISTERED – INCOME

Own-Source Revenue

 

 

 

Non-taxation revenue

 

 

 

Court-awarded penalties1

 

652,100

83,500

Total non-taxation revenue

 

652,100

83,500

(*) These amounts are rounded to the nearest dollar, as required by the Finance Minister’s Orders.

1 The ABCC can receive administered moneys for court-awarded penalties under the Building and Construction Industry Improvement Act 2006, the Independent Contractor’s Act 2009 and the Fair Work Act 2009. The ABCC forwards these moneys directly to the Official Public Account. The ABCC accounts for these monies on a cash accounting basis with an adjustment at the end of the financial year to provide for outstanding debts. The Federal Magistrates Court (FMC) can also receive monies under the abovementioned acts which pertain to matters pursued by the ABCC. The FMC forwards these moneys directly to the Official Public Account and independently accounts for these moneys in the FMC financial statements.

 

2012

2011

 

$(*)

$(*)

NOTE 17: ADMINISTERED – FINANCIAL ASSETS

Receivables

Court-awarded penalties

121,240

Less: impairment allowance account

16,000

Total receivables (net)

105,240

Receivables are expected to be recovered in:

No more than 12 months

105,240

More than 12 months

Total receivables

105,240

Receivables were aged as follows:

Not overdue

85,240

0 to 30 days

20,000

31 to 60 days

61 to 90 days

More than 90 days

16,000

Total receivables (gross)

105,240

 

Reconciliation of the Impairment Allowance Account

Opening balance

Increase recognised in net surplus

16,000

Closing balance

16,000

(*) These amounts are rounded to the nearest dollar, as required by the Finance Minister’s Orders.

 

$(*)

$(*)

NOTE 18: ADMINISTERED – CASH FLOW RECONCILIATION

Reconciliation of cash as per Administered Schedule of Assets and
Liabilities to Administered Cash Flow Statement

Cash as per:

Schedule of administered cash flows

Schedule of administered assets and liabilities

Difference

 

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

     Net cost of services

636,100

83,500

(Increase) / decrease in net receivables

(105,240)

Net cash from operating activities

530,860

83,500

(*) These amounts are rounded to the nearest dollar, as required by the Finance Minister’s Orders.

NOTE 19: ADMINISTERED – CONTINGENT ASSETS AND LIABILITIES

Quantifiable Administered Contingencies

 

The ABCC has no quantifiable administered contingent assets (2011: Nil).

The ABCC has no quantifiable administered contingent liabilities (2011: Nil).

Unquantifiable Administered Contingencies

The ABCC has twenty four unquantifiable administered contingent assets for matters before the court that are considered more likely than not to lead to a penalty order (2011: Nil).

The ABCC has no unquantifiable administered contingent liabilities (2011: Nil).

Significant Remote Administered Contingencies

The ABCC has no significant remote administered contingent assets (2011: Nil).

The ABCC has no significant remote administered contingent liabilities (2011: Nil).

 

2012

2011

 

$(*)

$(*)

NOTE 20: ADMINISTERED – FINANCIAL INSTRUMENTS

Categories of Financial Instruments

Receivables – court awarded penalties

105,240

 

105,240

The administered activities of the ABCC were not exposed to a high level of credit risk as the majority of financial assets were penalties imposed by courts.

There are no administered financial instrument risks from FWBII activities.

NOTE 21: ADMINISTERED FINANCIAL ASSETS RECONCILIATION

Financial Assets

Total financial assets as per administered schedule of assets and liabilities

105,240

Less: non-financial instrument components

Total financial assets as per financial instruments note

105,240

(*) These amounts are rounded to the nearest dollar, as required by the Finance Minister’s Orders.

NOTE 22: APPROPRIATIONS

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

 

2012 APPROPRIATIONS

APPRO-PRIATION APPLIED IN 2012 (CURRENT AND PRIOR YEARS)

VARI-ANCE $’000

APPROPRIATION ACT

FMA ACT

TOTAL APPRO-PRIATION

ANNUAL APPRO-PRIATION

APPRO-PRIATIONS REDUCED(1)

SECTION 30

SECTION 31

  $’000 $'000 $'000 $'000 $'000 $'000 $'000

DEPARTMENTAL
    Ordinary
    annual
    services

36,006

576

36,582

(28,634)

7,948

Total departmental

36,006

576

36,582

(28,634)

7,948

Notes:

1 Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2011-12: sections 10, 11, 12 and 15 and under Appropriation Acts (No. 2, 4, 6) 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 the Finance Minister to reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister’s determination and is disallowable by Parliament. In 2011-12, there was no reduction in departmental and non-operating departmental appropriations.

 

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

 

2012 APPROPRIATIONS

APPRO-PRIATION APPLIED IN 2012 (CURRENT AND PRIOR YEARS)

VARI-ANCE $’000

APPROPRIATION ACT

FMA ACT

TOTAL APPRO-PRIATION

ANNUAL APPRO-PRIATION

APPRO-PRIATIONS REDUCED(1)

SECTION 30

SECTION 31

  $’000 $'000 $'000 $'000 $'000 $'000 $'000

DEPARTMENTAL
    Ordinary
    annual
    services

33,332

134

33,466

(29,807)

3,659

Total departmental

33,332

134

33,466

(29,807)

3,659

Notes:

1 Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2010-11: sections 10, 11, 12 and 15 and under Appropriation Acts (No. 2, 4) 2010-11: 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 the Finance Minister to reduce that appropriation.

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

 

2012 APPROPRIATIONS

CAPITAL BUDGET APPROPRIATIONS APPLIED IN 2012 (CURRENT AND PRIOR YEARS)

VARI-ANCE $’000

APPROPRIATION ACT

FMA ACT

TOTAL CAPITAL BUDGET APPRO-PRIATIONS
$’000

PAYMENTS FOR
NON-FINANCIAL ASSETS
$’000

PAYMENTS FOR OTHER PURPOSES
$’000

TOTAL PAY-MENTS
$’000

ANNUAL APPRO-PRIATION
$’000

APPRO-PRIATIONS RED-UCED(2)
$’000

SECTION 32
$’000

DEPARTMENTAL
    Ordinary
    annual
    services
Departmental
Capital Budget

2,454

2,454

(72)

(72)

2,382

Notes:

1 Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No.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.

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

 

2012 APPROPRIATIONS

CAPITAL BUDGET APPROPRIATIONS APPLIED IN 2012 (CURRENT AND PRIOR YEARS)

VARI-ANCE $’000

APPROPRIATION ACT

FMA ACT

TOTAL CAPITAL BUDGET APPRO-PRIATIONS
$’000

PAYMENTS FOR
NON-FINANCIAL ASSETS
$’000

PAYMENTS FOR OTHER PURPOSES
$’000

TOTAL PAY-MENTS
$’000

ANNUAL APPRO-PRIATION
$’000

APPRO-PRIATIONS RED-UCED(2)
$’000

SECTION 32
$’000

DEPARTMENTAL
    Ordinary
    annual
    services
Departmental
Capital Budget

Notes:

1 Departmental and Administered Capital Budgets are appropriated through Appropriation Acts (No.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) 2010-11: 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

2011

 

$’000

$’000

 

 

 

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

 

 

Appropriation Act (No. 1 2009-10)

5,251

Appropriation Act (No. 1 2010-11)

10,298

33,256

Appropriation Act (No. 1 2011-12)

35,934

Total

46,232

38,507

NOTE 23: SPECIAL ACCOUNTS

The Minister for Finance and Deregulation abolished the Other Trust Moneys – Office of the Australian Building and Construction Commissioner Special Account on 12 October 2010, Determination 2010/13 refers. There were no balances and no transactions in the 2010, 2011 and 2012 financial years.

NOTE 24: COMPENSATION AND DEBT RELIEF

During the reporting period there were no departmental waivers of amounts owing to the Australian Government pursuant to s. 34(1) of the Financial Management and Accountability Act 1997 (2011: 0 waivers made). There were no departmental ‘Act of Grace’ payments, no ex-gratia payments, no payments made under the ‘Defective Administration Scheme’ and no payments made under s. 73 of the Public Service Act 1999 in the current and preceding reporting period.

During the reporting period there were no administered waivers of amounts owing to the Australian Government pursuant to s. 34(1) of the Financial Management and Accountability Act 1997 (2011: 0 waivers made). There were no administered ‘Act of Grace’ payments, no ex-gratia payments, no payments made under the ‘Defective Administration Scheme’ and no payments made under s. 73 of the Public Service Act 1999 in the current and preceding reporting period.

NOTE 25: REPORTING OF OUTCOMES

The ABCC has a single outcome and single program. The outcome is: Workplace relations laws are enforced in building and construction industry workplaces.

NOTE 25A: NET COST OF OUTCOME DELIVERY

Overcome 1

Total

2012

2011

$’000

$’000

Departmental

 

 

     Expenses

(30,032)

 

 

(30,562)

     Own–source income

630

 

 

933

     Administered

 

 

 

 

     Expenses

(16)

 

 

     Own–source income

652

 

 

84

Net cost of outcome delivery

(28,766)

 

 

(29,545)

NOTE 25B: MAJOR CLASSES OF DEPARTMENTAL EXPENSE,
INCOME, ASSETS AND LIABILITIES BY OUTCOME

 

 

Expenses

 

 

     Employees

(16,447)

 

 

(15,903)

     Suppliers

(12,412)

 

 

(13,278)

     Depreciation and amortisation

(1,173)

 

 

(1,381)

Total

(30,032)

 

 

(30,562)

Income

 

 

 

 

     Revenue from government

33,552

 

 

33,332

     Sale of goods and services

576

 

 

134

     Other non-taxation revenues

54

 

 

799

Total

34,182

 

 

34,265

Assets

 

 

 

 

     Cash

34

 

 

258

     Trade and other receivables

46,338

 

 

38,578

     Leasehold improvements

3,451

 

 

4,338

     Property, plant and equipment

243

 

 

333

     Intangibles

157

 

 

281

     Other non-financial assets

635

 

 

409

Total

50,858

 

 

44,197

Liabilities

 

 

 

 

     Suppliers

(1,025)

 

 

(730)

     Other payables

(2,616)

 

 

(4,304)

     Employee provisions

(4,294)

 

 

(2,844)

Total

(7,935)

 

 

(7,878)

NOTE 25C: MAJOR CLASSES OF ADMINISTERED EXPENSES, INCOME, ASSETS AND LIABILITIES BY OUTCOME

 
 

Outcome 1

Total
2012
$’000

2011
$’000

Expenses

 

 

 

Total

 

Income

 

 

 

     Other non-taxation revenue

 

652

84

Total

 

652

84

Assets

 

105

Total

 

105

Liabilities

 

Total

 

Outcome 1 is described in Note 1.1.

 

    2012 2011

 

 

$’000

$’000

NOTE 26: NET CASH APPROPRIATION ARRANGEMENTS

    Total comprehensive income less depreciation/amortisation expenses
previously funded through revenue appropriations1

 

2,977

2,322

    Plus: depreciation/amortisation expenses previously funded through
revenue appropriation

 

1,173

1,381

    Total comprehensive income – as per the Statement of Comprehensive Income

 

4,150

3,703

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.

NOTE 27: 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, including special accounts.

During 2011-12, the ABCC reviewed its exposure to risks of not complying with statutory conditions on payments from appropriations and non-compliance with Section 83. The review did not identify any appropriations involving statutory conditions for payment or any issues of non-compliance with Section 83.