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 |
||||||
$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 |
||||||
$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 |
||||||
$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 |
||||||
$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 |
|
|
|
|
||||
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 |
||
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 |
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 |
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 |
PAYMENTS FOR |
PAYMENTS FOR OTHER PURPOSES |
TOTAL PAY-MENTS |
|||
ANNUAL APPRO-PRIATION |
APPRO-PRIATIONS RED-UCED(2) |
SECTION 32 |
||||||
DEPARTMENTAL |
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 |
PAYMENTS FOR |
PAYMENTS FOR OTHER PURPOSES |
TOTAL PAY-MENTS |
|||
ANNUAL APPRO-PRIATION |
APPRO-PRIATIONS RED-UCED(2) |
SECTION 32 |
||||||
DEPARTMENTAL |
– |
– |
– |
– |
– |
– |
– |
– |
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 |
|
|
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, |
|
|
||
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 |
2011 |
|
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 |
|
2,977 |
2,322 |
|
Plus: depreciation/amortisation expenses previously funded through |
|
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.