12.10.2011
Statement of comprehensive income
For the period ended 30 June 2011
|
Notes |
2011 |
2010 |
---|---|---|---|
EXPENSES |
|||
Employee benefits |
3A |
2,095,719 |
2,374,022 |
Suppliers |
3B |
1,983,411 |
1,129,322 |
Depreciation and amortisation |
3C |
164,625 |
72,896 |
Finance costs |
3D |
4,842 |
4,842 |
Write-down and impairment of assets |
3E |
79,096 |
– |
Total expenses |
|
4,327,693 |
3,581,082 |
LESS |
|||
Own-source revenue |
|||
Sale of goods and rendering of services |
4A |
8,011 |
4,616 |
Interest |
4B |
66,331 |
58,229 |
Other revenue |
4C |
48,473 |
285 |
Total own-source revenue |
|
122,815 |
63,130 |
GAINS |
|||
Sale of assets |
4D |
10,000 |
– |
Total gains |
|
10,000 |
– |
Total own-source income |
|
132,815 |
63,130 |
Net cost of services |
|
4,194,878 |
3,517,952 |
Revenue from Government |
4E |
3,152,000 |
3,387,000 |
Deficit on continuing operations |
|
(1,042,878) |
(130,952) |
OTHER COMPREHENSIVE INCOME |
|||
Changes in asset revaluation reserves |
|
(250,333) |
324,295 |
Total other comprehensive (deficit)/income |
|
(250,333) |
324,295 |
Total comprehensive (deficit)/income |
|
(1,293,211) |
193,343 |
The above statement should be read in conjunction with the accompanying notes
Balance sheet
as at 30 June 2011
|
Notes |
2011 |
2010 |
---|---|---|---|
ASSETS |
|||
Financial Assets |
|||
Cash and cash equivalents |
5A |
1,317,656 |
1,271,808 |
Trade and other receivables |
5B |
21,214 |
23,340 |
Total financial assets |
|
1,338,870 |
1,295,148 |
Non-Financial Assets |
|||
Buildings |
6A |
– |
202,183 |
Property, plant & equipment |
6B,6C |
58,152 |
319,380 |
Other |
6D |
143,679 |
100,107 |
Total non-financial assets |
|
201,831 |
621,670 |
TOTAL ASSETS |
|
1,540,701 |
1,916,818 |
LIABILITIES |
|||
Payables |
|||
Suppliers |
7A |
46,199 |
41,547 |
Other |
7B |
– |
105 |
Lease incentive |
7B |
142,323 |
– |
Total payables |
|
188,522 |
41,652 |
Provisions |
|||
Employee provisions |
8A |
390,331 |
411,336 |
Other |
8B |
109,842 |
105,000 |
Lease Provision |
8C |
786,386 |
– |
Total provisions |
|
1,286,559 |
516,336 |
TOTAL LIABILITIES |
|
1,475,081 |
557,988 |
NET ASSETS |
|
65,620 |
1,358,830 |
EQUITY |
|||
Parent Entity Interest |
|||
Reserves |
|
135,427 |
385,759 |
Retained surplus (accumulated deficit) |
|
(69,807) |
973,071 |
Total parent entity interest |
|
65,620 |
1,358,830 |
TOTAL EQUITY |
|
65,620 |
1,358,830 |
The above statement should be read in conjunction with the accompanying notes
Statement of changes in equity
for the period ended 30 June 2011
|
Retained Earnings |
Asset Revaluation Reserve |
Total Equity |
|||
---|---|---|---|---|---|---|
|
2011 |
2010 |
2011 |
2010 |
2011 |
2010 |
OPENING BALANCE |
||||||
Balance carried forward from previous period |
973,071 |
1,104,023 |
385,759 |
61,464 |
1,358,830 |
1,165,487 |
Adjusted opening balance |
973,071 |
1,104,023 |
385,759 |
61,464 |
1,358,830 |
1,165,487 |
Comprehensive income |
||||||
Other comprehensive income/(deficit) |
– |
– |
(250,333) |
324,295 |
(250,333) |
324,295 |
Deficit for the period |
(1,042,878) |
(130,952) |
– |
– |
(1,042,878) |
(130,952) |
Total comprehensive income |
(1,042,878) |
(130,952) |
(250,333) |
324,295 |
(1,293,211) |
193,343 |
of which: Attributable to the Australian Government |
(1,042,878) |
(130,952) |
(250,333) |
324,295 |
(1,293,211) |
193,343 |
Closing balance as at 30 June |
(69,807) |
973,071 |
135,427 |
385,759 |
65,620 |
1,358,830 |
Closing balance attributable to the Australian Government |
(69,807) |
973,071 |
135,427 |
385,759 |
65,620 |
1,358,830 |
The above statement should be read in conjunction with the accompanying notes
Cash flow statement
for the period ended 30 June 2011
|
Notes |
2011 |
2010 |
---|---|---|---|
OPERATING ACTIVITIES |
|||
Cash received |
|||
Receipts from Government |
|
3,152,000 |
3,387,000 |
Sale of goods and rendering of services |
|
9,002 |
4,616 |
Interest |
|
66,194 |
58,229 |
Other |
|
48,473 |
31,467 |
Net GST received |
|
118,288 |
18,161 |
Total cash received |
|
3,393,957 |
3,499,473 |
Cash Used |
|||
Employees |
|
(2,116,724) |
(2,665,133) |
Suppliers |
|
(1,210,743) |
(1,161,601) |
Total cash used |
|
(3,327,467) |
(3,826,734) |
Net cash from (used by) operating activities |
9 |
66,490 |
(327,261) |
INVESTING ACTIVITIES |
|||
Cash received |
|||
Proceeds from sales of property, plant and equipment |
|
10,000 |
– |
Total cash received |
|
10,000 |
– |
Cash used |
|||
Purchase of property, plant and equipment |
|
(30,642) |
(39,874) |
Total cash used |
|
(30,642) |
(39,874) |
Net cash used by investing activities |
|
(20,642) |
(39,874) |
Net increase in cash held |
|
45,848 |
(367,135) |
Cash and cash equivalents at the beginning of the reporting period |
|
1,271,808 |
1,638,943 |
Cash and cash equivalents at the end of the reporting period |
5A |
1,317,656 |
1,271,808 |
The above statement should be read in conjunction with the accompanying notes
Schedule of commitments
as at 30 June 2011
|
2011 |
2010 |
---|---|---|
BY TYPE |
||
Commitments receivable |
||
Net GST recoverable on commitments1 |
348,851 |
147,225 |
Total commitments receivable |
348,851 |
147,225 |
Commitments payable |
||
Other commitments |
||
Operating leases2 |
3,698,314 |
1,619,471 |
Total other commitments |
3,698,314 |
1,619,471 |
Net commitments by type |
3,349,463 |
1,472,246 |
BY MATURITY |
||
Commitments Receivable |
||
One year or less |
93,973 |
63,693 |
From one to five years |
161,054 |
83,532 |
Over five years |
93,824 |
– |
Total commitments receivable |
348,851 |
147,225 |
Operating lease commitments |
||
One year or less |
1,020,204 |
700,626 |
From one to five years |
1,706,729 |
918,845 |
Over five years |
971,381 |
– |
Total operating lease commitments |
3,698,314 |
1,619,471 |
Net commitments by maturity |
3,349,463 |
1,472,246 |
Nature of lease/general description of leasing arrangement
1. Commitments are GST inclusive where relevant.
2. Operating leases included are effectively non-cancellable and comprise:
Leases for office accommodation.
Lease payments are subject to annual increases in accordance with upwards movements in the Consumer Price Index.
Lease payments are subject to an annual increase of approximately 4%.
Schedule of contingencies
As at 30 June 2011
There are no known contingencies as at 30 June 2011. (2010: Nil)
The above schedules should be read in conjunction with the accompanying notes
Schedule of asset additions
for the period ended 30 June 2011
The following non-financial non-current assets were added in 2010–11 |
|||
|
Other property, plant & equipment |
|
Total |
---|---|---|---|
By purchase – Government funding |
|
30,642 |
30,642 |
By purchase – donated funds |
|
– |
– |
Total Additions |
|
30,642 |
30,642 |
The following non-financial non-current assets were added in 2009–10 |
|||
|
Other property, plant & equipment |
|
Total |
---|---|---|---|
By purchase – Government funding |
|
39,874 |
39,874 |
By purchase – donated funds |
|
– |
– |
Total Additions |
|
39,874 |
39,874 |
The above schedules should be read in conjunction with the accompanying notes
Notes to and forming part of the Financial Statements for the year ended 30 June 2011
- Summary of Significant Accounting Policies
- Events after the Reporting Period
- Expenses
- Income
- Financial Assets
- Non-Financial Assets
- Payables
- Provisions
- Cash Flow Reconciliation
- Members’ Remuneration
- Related Party Disclosures
- Senior Executive Remuneration
- Remuneration of Auditors
- Financial Instruments
- Reporting of Outcomes
Note 1: Summary of Significant Accounting Policies
1.1 Objective of the Australian Law Reform Commission
The Australian Law Reform Commission is an Australian Government controlled entity. The objective of the Commission is to report to the Attorney-General on the results of any review for the purposes of developing and reforming the law.
The ALRC is structured to meet one outcome:
Outcome 1: Informed government decisions about the development, reform and harmonisation of Australian laws and related processes through research, analysis, reports and community consultation and education.
The continued existence of the Commission in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Commission’s administration and programs.
1.2 Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997.
The Financial Statements have been prepared in accordance with:
- Finance Minister’s Orders (or FMOs) for reporting periods ending on or after 1 July 2010; 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 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 Commission 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 agreements equally proportionately unperformed 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
In the process of applying the accounting policies listed in this note, the Commission has made a judgement that has been the most significant impact on the amounts recorded in the financial statements.
The fair value of land and buildings has been taken from the market value of similar properties as determined by an independent valuer.
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.
1.4 New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
The following (new standards / revised standards / interpretations / amending standards) were issued prior to the sign-off date, were applicable to the current period and had a financial impact on the Commission:
The following new accounting standards (including reissued standards), interpretations are applicable to the 2010/11 financial year:
AASB 2009-5 Further Amendments to Australian Accounting Standards arising from Annual Improvements Project (AASB 5, AASB 8, AASB 101, AASB 107, AASB 117 AASB 118, AASB 136 & AASB 139)
AASB 2009-9 Amendments to Australian Accounting Standards – Additional Exemptions for the First-Time Adopters (AASB-1)
AASB 2009-13 Amendments to Australian Accounting Standards arising from Interpretation 19 (AASB 1)
AASB 2010-3 Amendment to Australian Accounting Standards arising from the Annual Improvements Project
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 Commission.
Future Australian Accounting Standard Requirements
The following (new standards / revised standards / interpretations / amending standards) were issued by the Australian Accounting Standards Board prior to the sign-off date, which are expected to have financial impact on the commission for future reporting periods:
AASB 2009-12 Amendments to Australian Accounting Standards
AASB 124 Related Party Disclosures
AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project
AASB 2010-5 Amendments to Australian Accounting Standards
AASB 2010-6 Amendments to Australian Accounting Standards-Disclosures on Transfers of Financial Assets
AASB 1054 Australian Additional Disclosures
AASB 2011-1 Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project
AASB 2013 Presentation of items of Other Comprehensive Income
AASB 119 Employee Benefits
AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9
AASB 1053 Application of Tiers of Australian Accounting Standards
AASB 9 Financial Instruments
AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)
AASB 2010-10 Further Amendments to Australian Accounting Standards-Removal of Fixed Dates for First-time Adopters
Other new standards / revised standards / interpretations / amending standards that were issued prior to the sign-off date and are applicable to the current reporting did not have a financial impact, and are not expected to have a future financial impact on the Commission.
1.5 Revenue
Revenue from sale of goods is recognised when:
- The risks and rewards of ownership have been transferred to the buyer;
- The Commission retains no managerial involvement nor effective control over the goods;
- The revenue and transaction costs incurred can be reliably measured; and
- It is probable that the economic benefits associated with the transaction will flow to the entity.
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
- The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
- The probable economic benefits with the transaction will flow to the entity.
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.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.
Interest revenue is recognised on receipt using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.
Revenue from Government
Funding received or receivable from agencies (appropriated to the agency as a CAC Act body item for payment to the Commission) is recognised as Revenue from Government unless it is in the nature of an equity injection or a loan.
1.6 Gains
Sale of Assets
Gains from disposal of non-current assets is recognised when control of the asset has passed to the buyer.
1.7 Transactions with Government as Owner
Equity Injections
Amounts that are designated as equity injections for a year 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 entity.
Other Distributions to Owners
The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.
1.8 Employee Benefits
Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the 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 benefit liabilities are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the Commission’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2011. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Superannuation
Since 1 July 1997, the Commission has not been an approved authority for the purposes of the Superannuation Act 1990 (Cth) and therefore employees appointed on or after that date are not eligible for membership of the PSS.
Employees who were appointed prior to 1 July 1997, and who have maintained their membership of the PSS or CSS, are permitted to continue their membership of those schemes.
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. The liability is reported by the Department of Finance and Deregulation as an administered item.
For employees not covered by the above, the Commission contributes to the superannuation fund nominated by the employee at the rate of 9% of salary, provided that the nominated fund is regulated by the Superannuation Industry (Supervision) Act 1993 (Cth). In addition, in the case of an employee who elects to make an additional personal superannuation contribution, the Commission makes a matching contribution up to a maximum of 3% of the employee’s annual salary.
The liability for superannuation recognised as at 30 June 2011 represents outstanding contributions for the final fortnight of the year.
1.9 Leases
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 Cash
Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand and 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.
1.11 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.
Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).
Supplier and other payables
Supplier and other payables are recognised at their nominal amounts. Liabilities are recognised to the extent that the goods and services have been received and irrespective of having been invoiced.
1.12 Financial Assets
The Australian Law Reform Commission classifies its financial assets in the following category:
a) loans and receivables.
The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.
Financial assets are recognised and derecognised upon trade date.
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 end of each reporting period.
Financial assets held at cost – If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.
1.13 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.
1.14 Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The $1,000 threshold was selected because it facilitates efficient asset management and recording without greatly affecting asset values recognised.
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 make good provisions in property leases taken up by the Commission where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Commission’s leasehold improvements with a corresponding provision for the make good recognised.
Property, plant and equipment are carried at fair value, being revalued with sufficient frequency such that the carrying amount of each asset is not materially different, at reporting date, from its fair value. Valuations undertaken in each year are as at 30 June.
Revaluations
Fair values for each class of asset are determined as shown below:
Asset Class |
Fair value measured at: |
---|---|
Leasehold Improvements |
Market selling price |
Property, Plant & Equipment |
Market selling price |
Following initial recognition at cost, property, 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 materially differ from 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 through the Income Statement. Revaluation decrements for a class of assets are recognised directly through the Income Statement except to the extent that they reverse a previous revaluation increment for that class.
The Commission revalued its leasehold improvements and property, plant and equipment assets as at 30 June 2010, and thereafter these assets will be revalued progressively every three years.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property, plant and equipment are written off to their estimated residual values over their estimated useful lives to the Commission using, in all cases, the straight-line method of depreciation. Useful lives are reviewed at each balance date.
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.
|
2011 |
2010 |
---|---|---|
Leasehold improvements |
Lease term |
Lease term |
Plant and Equipment |
3-10 years |
3-10 years |
Impairment
All assets were assessed for impairment at 30 June 2011. 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 Commission were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
1.15 Taxation
The Commission 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 as net GST except:
- where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
- for receivables and payables.
Note 2: Events after the Balance Sheet Date
Effective on 1 July 2011, the ALRC became a prescribed agency under the Financial Management and Accountability Act 1997 (Cth). This transition was effected on 17 December 2010 with the enactment of the Financial Framework Legislation Amendment Act 2010 (Cth).
The Commission is not aware of any other significant events that have occurred since balance date which warrant disclosure in these statements.
Note 3: Expenses
|
2011 |
2010 |
---|---|---|
Note 3A. Employee Benefits |
||
Wages and salaries |
1,678,665 |
1,891,974 |
Superannuation |
|
|
Defined contribution plans |
103,813 |
99,950 |
Defined benefit plans |
133,420 |
152,185 |
Leave and other entitlements |
179,821 |
229,913 |
Total employee benefits |
2,095,719 |
2,374,022 |
Note 3B. Supplier |
||
Goods and Services |
||
Consultants Fees |
97,752 |
31,472 |
Library |
77,704 |
64,383 |
Professional services |
58,662 |
157,158 |
Printing and office requisites |
50,821 |
59,773 |
Travel and Subsistence |
37,788 |
59,868 |
Freight and removals |
36,445 |
6,369 |
Telephone and postage |
31,030 |
41,890 |
Incidentals |
19,868 |
25,121 |
Minor assets |
10,386 |
10,632 |
Staff training |
9,633 |
6,614 |
Maintenance |
6,323 |
22,652 |
Promotional activities |
3,711 |
15,652 |
Advertising |
1,889 |
6,843 |
Total goods and services |
442,012 |
508,427 |
Goods and services are made up of: |
||
Provision of goods – external parties |
370,285 |
488,246 |
Provision of goods – related parties |
71,727 |
20,181 |
Total goods and services |
442,012 |
508,427 |
Other supplier |
||
Operating lease rentals – external parties |
||
Minimum lease payments |
1,532,433 |
610,860 |
Workers compensation premiums |
8,966 |
10,036 |
Total other supplier |
1,541,399 |
620,895 |
Total supplier |
1,983,411 |
1,129,322 |
Note 3C. Depreciation and Amortisation |
||
Depreciation: |
||
Property, plant and equipment |
74,767 |
66,593 |
Buildings |
89,858 |
6,303 |
Total depreciation |
164,625 |
72,896 |
Total depreciation and amortisation |
164,625 |
72,896 |
Note 3D. Finance Costs |
||
Unwinding of discount |
4,842 |
4,842 |
Total finance costs |
4,842 |
4,842 |
Note 3E. Write-Down and Impairment of Assets |
||
Asset write-downs and impairments from: |
||
Impairment of property, plant and equipment |
79,096 |
– |
Total write-down and impairment of assets |
79,096 |
– |
Note 4: Income
|
2011 |
2010 |
---|---|---|
OWN-SOURCE REVENUE |
||
Note 4A. Sale of Goods and Rendering of Services |
||
Provision of goods-external parties |
8,011 |
4,616 |
Total sales of goods and rendering of services |
8,011 |
4,616 |
Note 4B. Interest |
||
Deposits |
66,331 |
58,229 |
Total interest |
66,331 |
58,229 |
Note 4C. Other Revenue |
||
Reimbursement of Commissioner cost – Attorney-General’s Department |
48,473 |
285 |
Total other revenue |
48,473 |
285 |
Gains |
||
Note 4D. Sale of Assets |
||
Property, plant and equipment |
||
Proceeds from sale |
10,000 |
– |
Carrying value of assets sold |
– |
– |
Net gain from sale of assets |
10,000 |
– |
REVENUE FROM GOVERNMENT |
||
Note 4E. Revenue from Government |
||
Attorney-General’s Department |
||
CAC Act body payment item |
3,152,000 |
3,387,000 |
Total revenue from Government |
3,152,000 |
3,387,000 |
Note 5: Financial Assets
|
2011 |
2010 |
---|---|---|
Note 5A. Cash and cash equivalents |
||
Cash on hand or on deposit |
1,317,656 |
1,271,808 |
Total cash and cash equivalents |
1,317,656 |
1,271,808 |
Note 5B.Trade and Other receivables |
||
Good and Services |
||
Goods and services – external parties |
5,817 |
5,074 |
Total receivable for goods and services |
5,817 |
5,074 |
Other receivables: |
||
GST receivable from the Australian Taxation Office |
15,397 |
18,266 |
Total other receivables |
15,397 |
18,266 |
Total trade and other receivables (gross) |
21,214 |
23,340 |
Receivables are expected to be recovered in: |
||
No more than 12 months |
21,214 |
23,340 |
More than 12 months |
– |
– |
Total trade and other receivables (net) |
21,214 |
23,340 |
All receivables are with entities external to the entity. Credit terms are net 30 days (2011: 30 days). |
||
Receivables are aged as follows: |
||
Not overdue |
21,214 |
23,340 |
Note 6:Non-Financial Assets
|
2011 |
2010 |
|
---|---|---|---|
Note 6A. Buildings |
|||
Leasehold improvements |
|||
– Fair value |
– |
202,183 |
|
– Accumulated depreciation |
– |
– |
|
|
– |
202,183 |
|
Total leasehold improvements |
– |
202,183 |
|
Total Buildings |
– |
202,183 |
|
The leasehold improvements that had formed part of our financial statements last year have been written off as per an onerous contract reporting requirement. |
|||
No indicators of impairment were found for buildings. |
|||
Note 6B. Property, Plant and Equipment |
|||
Property, plant and equipment: |
|||
Gross carrying value (at fair value) |
80,561 |
319,380 |
|
Accumulated depreciation |
(22,409) |
– |
|
Total property, plant and equipment |
58,152 |
319,380 |
|
Total property, plant and equipment (non-current) |
58,152 |
319,380 |
|
No indicators of impairment were found for property, plant and equipment. |
|||
No property, plant or equipment is expected to be sold or disposed of within the next 12 months. |
|||
The decrease in gross carrying value of the property, plant and equipment was due to a reduction of library holdings. |
|||
Note 6C. Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2010–11) |
|||
|
|
Property, Plant & Equipment |
|
As at 1 July 2010 |
|||
Gross book value |
202,183 |
319,380 |
521,563 |
Accumulated depreciation / amortisation |
– |
– |
– |
Net book value 1 July 2010 |
202,183 |
319,380 |
521,563 |
Additions |
|||
by purchase |
– |
30,642 |
30,642 |
Depreciation / amortisation expense |
(89,858) |
(74,767) |
(164,625) |
Revaluations and impairments recognised in other comprehensive income |
(112,325) |
(138,007) |
(250,332) |
Impairment recognised in comprehensive income |
– |
(79,096) |
(79,096) |
Net book value 30 June 2011 |
– |
58,152 |
58,152 |
Net book value as of 30 June 2011 represented by: |
|||
Gross book value |
– |
350,022 |
350,022 |
Accumulated depreciation / amortisation |
– |
(291,870) |
(291,870) |
|
– |
58,152 |
58,152 |
The Commission does not hold assets under construction or finance leases. |
|||
Note 6C (Cont’d): Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2009–10) |
|||
As at 1 July 2009 |
|||
Gross book value |
63,030 |
557,523 |
620,553 |
Accumulated depreciation / amortisation |
(42,545) |
(352,164) |
(394,709) |
Net book value 1 July 2009 |
20,485 |
205,359 |
225,844 |
Additions |
|||
by purchase |
– |
39,874 |
39,874 |
Depreciation / amortisation expense |
(6,303) |
(66,593) |
(72,896) |
Revaluations and impairments recognised in other comprehensive income |
188,001 |
140,740 |
328,741 |
Net book value 30 June 2010 |
202,183 |
319,380 |
521,563 |
Net book value as of 30 June 2010 represented by: |
|||
Gross book value |
202,183 |
319,380 |
521,563 |
Accumulated depreciation / amortisation |
– |
– |
– |
|
202,183 |
319,380 |
521,563 |
The Commission does not hold assets under construction or finance leases. |
|||
|
2011 |
2010 |
|
Note 6D. Other Non-Financial Assets |
|||
Prepayments |
118,029 |
100,107 |
|
Other |
25,650 |
– |
|
Total other non-financial assets |
143,679 |
100,107 |
|
Total other non-financial assets – are expected to be recovered in: |
|||
No more than 12 months |
143,679 |
100,107 |
|
Total other non-financial assets |
143,679 |
100,107 |
|
No indicators of impairment were found for other non-financial assets. |
Note 7: Payables
|
2011 |
2010 |
---|---|---|
Note 7A. Suppliers |
||
Trade creditors and accruals |
46,199 |
41,547 |
Total supplier payables |
46,199 |
41,547 |
Supplier payables expected to be settled within 12 months: |
||
External entities |
46,199 |
41,547 |
Total |
46,199 |
41,547 |
Total supplier payables |
46,199 |
41,547 |
Settlement was usually made within 30 days. |
||
Note 7B. Other Payables |
||
GST payable to ATO |
– |
105 |
Lease incentive |
142,323 |
– |
Total other payables |
142,323 |
105 |
Note 8: Provisions
|
2011 |
2010 |
---|---|---|
Note 8A. Employee Provisions |
||
Leave |
303,088 |
328,544 |
Other |
87,243 |
82,792 |
Total employee provisions |
390,331 |
411,336 |
Employee provisions are expected to be settled in: |
||
No more than 12 months |
355,120 |
400,967 |
More than 12 months |
35,211 |
10,369 |
Total employee provisions |
390,331 |
411,336 |
Note 8B. Other Provisions |
||
Provision restoration obligations |
109,842 |
105,000 |
Other provisions are expected to be settled in: |
||
More than 12 months |
109,842 |
105,000 |
Total other provisions |
109,842 |
105,000 |
All other provisions are non-current liabilities. |
||
|
Provision for restoration |
Provision for restoration |
Carrying amount 1 July 2010 |
105,000 |
95,712 |
Revaluation |
– |
4,446 |
Unwinding of discount or change in discount rate |
4,842 |
4,842 |
Closing balance 2011 |
109,842 |
105,000 |
The Commission has an agreement for leasing its premises which has provisions requiring the Commission to restore the premises to their original condition at the conclusion of the lease. The Commission has made a provision to reflect the present value of this obligation. |
||
|
2011 |
2010 |
Note 8C. Lease Provisions |
|
|
Provision for lease |
786,386 |
– |
|
786,386 |
– |
The Commission has a rent provision resulting from vacating its previous premises. The provision will be applied to the lease term ending 30 September 2012. |
Note 9: Cash Flow Reconciliation
|
2011 |
2010 |
---|---|---|
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement |
||
Report cash and cash equivalents as per: |
||
Cash Flow Statement |
1,317,656 |
1,271,808 |
Balance Sheet |
1,317,656 |
1,271,808 |
Difference |
– |
– |
Reconciliation of net cost of services to net cash from operating activities: |
||
Net cost of services |
(4,194,878) |
(3,517,952) |
Add revenue from Government |
3,152,000 |
3,387,000 |
Adjustments for non-cash items |
||
Depreciation / amortisation |
164,625 |
72,896 |
Net write down of non-financial assets |
79,096 |
– |
Gain on disposal of assets |
(10,000) |
– |
Changes in assets / liabilities |
||
(Increase) / decrease in net receivables |
2,126 |
6,526 |
(Increase) / decrease in prepayments and other non financial assets |
(43,572) |
(26,588) |
Increase / (decrease) in supplier payables |
146,870 |
(11,813) |
Increase / (decrease) in other provisions |
791,228 |
(9,288) |
Increase / (decrease) in employee provisions |
(21,005) |
(228,042) |
Net cash from (used) operating activities |
66,490 |
(327,261) |
Note 10: Members’ Remuneration
|
2011 |
2010 |
---|---|---|
The number of Members of the Commission included in these figures is shown below in the relevant remuneration bands. |
||
|
Number |
Number |
less than $150,000 |
1 |
1 |
$ 180,000–$ 209,999 |
– |
1 |
$ 330,000–$ 359,999 |
– |
1 |
$ 420,000–$ 449,999 |
1 |
– |
Total number of Members of the Commission |
2 |
3 |
Total Remuneration received or due and receivable by the Members of the Commission. |
474,625 |
637,543 |
The two Members included in this Note are the full-time Members disclosed in Note 11. |
Note 11: Related Party Disclosures
Members of the Commission during the year were:
Full-time Members
Professor Rosalind Croucher (from 05/02/07)
Professor Terry Flew (from 28/04/11)
Part-time Members
Justice Berna Collier (from 27/10/10)
Magistrate Anne Goldsbrough (from 14/12/09–31/8/10)
Justice Susan Kenny (from 14/05/09)
Justice Bruce Lander (from 27/10/10–30/4/11)
Justice Arthur Emmett (from 27/10/10–30/4/11)
The aggregate remuneration of Members is disclosed in Note 10.
In accordance with the Australian Law Reform Commission Act 1996, only Members who do not hold a judicial office are to be paid such remuneration as the Remuneration Tribunal determines.
All part-time Members hold judicial office and therefore are not remunerated.
Note 12: Senior Executive Remuneration
Note 12A. Senior Executive Remuneration Expense for the Reporting Period |
|||||||
|
2011 |
2010 |
|||||
---|---|---|---|---|---|---|---|
Short-term employee benefits: |
|||||||
Salary |
130,294 |
126,883 |
|||||
Annual leave accrued |
9,990 |
9,588 |
|||||
Performance bonuses |
10,423 |
10,003 |
|||||
Motor vehicle and other allowances |
24,493 |
23,313 |
|||||
Total short-term employee benefits |
175,200 |
169,788 |
|||||
Post-employment benefits: |
|||||||
Superannuation |
30,474 |
29,498 |
|||||
Total post-employment benefits |
30,474 |
29,498 |
|||||
Other long-term benefits |
|||||||
Long-service leave |
3,247 |
3,116 |
|||||
Total other long-term benefits |
3,247 |
3,116 |
|||||
Total |
208,921 |
202,402 |
|||||
Notes: 1. Note 12A was prepared on an accrual basis. 2. There were no acting arrangements or part year service where remuneration expensed for a senior executive was less than $150,000. |
|||||||
Note 12B: Average Annual Remuneration packages and bonus paid for substantive Senior Executives as at the end of the Reporting Period. |
|||||||
|
As at 30 June 2011 |
||||||
|
Fixed elements |
||||||
Fixed Elements and Bonus Paid1 |
Senior Executives No. |
Salary |
Allowances |
Total |
Bonus paid2 |
||
Total remuneration* |
|||||||
$140,000–$169,999 |
1 |
130,294 |
16,582 |
146,876 |
10,423 |
||
Total |
1 |
130,294 |
16,582 |
146,876 |
10,423 |
||
|
As at 30 June 2010 |
||||||
|
Fixed elements |
||||||
Fixed Elements and Bonus Paid1 |
Senior Executives No. |
Salary |
Allowances |
Total |
Bonus paid2 |
||
Total remuneration* |
|||||||
$140,000–$169,999 |
1 |
125,040 |
16,582 |
141,622 |
10,003 |
||
Total |
1 |
125,040 |
16,582 |
141,622 |
10,003 |
||
*Excluding acting arrangements and part-year service Notes: 1. This table reports the senior executive who was employed by the Commission at the end of the reporting period. Fixed elements were based on the employment agreement. Each row represents an average annualised figure for the individual in that remuneration package band (i.e. the ‘Total’ column). 2. This represents average bonus paid during the reporting period in the remuneration package band. The ‘bonus paid’ was excluded from the ‘Total’ calculation, (for the purpose of determining remuneration package bands). The ‘bonus paid’ within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the Commission during the financial year. |
Variable Elements:
With the exception of bonuses, variable elements were not included in the ‘Fixed Elements’ and ‘Bonus Paid’ table above. The following variable elements were available as part of Senior Executive remuneration package.
- Bonuses: Bonuses were based on the performance rating of the individual. The maximum bonus that an individual could receive was 8 per cent of the base salary.
-
On average the Senior Executive was entitled to the following leave entitlements:
Annual Leave (AL) entitled to 20 days (2010: 20 days) each full year worked.
Personal Leave (PL) entitled to 15 days (2010: 15 days); and
Long Service Leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act 1976. -
The Senior Executive was a member of the following superannuation fund:
Public Sector Superannuation Scheme (PSS): this scheme is closed to new members, with current employer contributions were approximately at 15.4 per cent (2010: 15.4 per cent) (including productivity component). More information on PSS can be found at http://www.pss.gov.au.
Note 12C. Other Highly Paid Staff
During the reporting period, there was no employees (2010: no employees) whose salary plus performance bonus were $150,000 or more.
Note 13: Remuneration of Auditors
|
2011 |
2010 |
---|---|---|
The fair value of the services provided was: |
||
Australian National Audit Office |
21,500 |
20,100 |
No other services were provided by the Auditor-General. |
Note 14: Financial Instruments
|
2011 |
2010 |
||||
---|---|---|---|---|---|---|
Note 14A. Categories of Financial Instruments |
||||||
Financial Assets |
||||||
Loans and receivables: |
||||||
Cash on hand or on deposit |
1,317,656 |
1,271,808 |
||||
Trade and other receivables |
21,214 |
23,340 |
||||
Total |
1,338,870 |
1,295,148 |
||||
Carrying amount of financial assets |
1,338,870 |
1,295,148 |
||||
Financial Liabilities |
||||||
At amortised cost: |
||||||
Trade creditors |
46,199 |
41,547 |
||||
Other |
142,323 |
105 |
||||
Total |
188,522 |
41,652 |
||||
Carrying amount of financial liabilities |
188,522 |
41,652 |
||||
Note 14B. Net Income and Expense from Financial Assets |
||||||
Loans and receivables |
||||||
Interest revenue (see note 4B) |
66,331 |
58,229 |
||||
Net gain loans and receivables |
66,331 |
58,229 |
||||
Net gain from financial assets |
66,331 |
58,229 |
||||
Note 14C. Net Income and Expense from Financial Liabilities |
||||||
Financial liabilities There is no income or expense from financial liabilities at amortised cost in the year ending 30 June 2011. |
||||||
Note 14D. Fair Values of Financial Instruments |
||||||
|
2011 |
2010 |
||||
|
Carrying amount |
|
Carrying amount |
|
||
Financial Assets |
||||||
Cash at bank |
1,317,656 |
1,317,656 |
1,271,808 |
1,271,808 |
||
Receivables for goods and services (net) |
21,214 |
21,214 |
23,340 |
23,340 |
||
Total |
1,338,870 |
1,338,870 |
1,295,148 |
1,295,148 |
||
Financial Liabilities |
||||||
Trade creditors |
46,199 |
46,199 |
41,547 |
41,547 |
||
Other payables |
142,323 |
142,323 |
105 |
105 |
||
Total |
188,522 |
188,522 |
41,652 |
41,652 |
||
Financial Assets |
||||||
The net fair values of cash, deposits on call and receivables approximate their carrying amounts. |
||||||
Financial Liabilities |
||||||
The net fair value for trade creditors all of which are short-term in nature is approximated by the carrying amounts. |
Note 14 E. Credit Risk
The Commission’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.
The Commission has no significant exposures to any concentrations of credit risk.
Note 14 F. Liquidity Risk
The Commission’s financial liabilities are supplier payables. The exposure to liquidity risk is based on the notion that the Commission will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to CAC Act payments and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
Note 14 G. Market Risk
The Commission holds basic financial instruments that do not expose the Commission to certain market risks. The Commission is not exposed to ‘Currency Risk’ or ‘Other Price Risk’.
Interest Rate Risk
The Commission is not exposed to Interest Rate Risk.
Note 15: Reporting of Outcomes
Note 15A: Outcomes of the Commission
The Commission operates predominantly in one industry, being a statutory authority whose primary function is to provide policy advice to the Federal Government and Parliament on matters referred to it by the Attorney-General.
Outcome: Informed government decisions about the development, reform and harmonisation of Australian laws and related processes through research, analysis, reports and community consultation and education.
Note 15B: Net Cost of Outcome Delivery
|
Outcome 1 |
Total |
||
---|---|---|---|---|
|
2011 |
2010 |
2011 |
2010 |
Expenses |
4,327,693 |
3,581,082 |
4,327,693 |
3,581,082 |
Income from non-government Sector |
||||
Activities subject to cost recovery |
– |
– |
– |
– |
Total |
– |
– |
– |
– |
Other own-source income |
132,815 |
63,130 |
132,815 |
63,130 |
Net cost of outcome delivery |
4,194,878 |
3,517,952 |
4,194,878 |
3,517,952 |
Note 15C. Major Classes of Expenses, Income, Assets and Liabilities by Outcome.
|
Outcome Total |
|
---|---|---|
|
2011 |
2010 |
Expenses: |
||
Employees |
2,095,719 |
2,374,022 |
Suppliers |
1,983,411 |
1,129,322 |
Depreciation and amortisation |
164,625 |
72,896 |
Finance Costs |
4,842 |
4,842 |
Write-down and impairment of assets |
79,096 |
– |
Total |
4,327,693 |
3,581,082 |
Income |
||
Income from Government |
3,152,000 |
3,387,000 |
Sale of goods and services |
8,011 |
4,616 |
Interest |
66,331 |
58,229 |
Gain from disposal of assets |
10,000 |
– |
Other |
48,473 |
285 |
Total |
3,284,815 |
3,450,130 |
Assets |
||
Liabilities |
||
Suppliers |
46,199 |
41,547 |
Other |
– |
105 |
Lease incentive |
142,323 |
– |
Employee Provisions |
390,331 |
411,336 |
Other Provisions |
109,842 |
105,000 |
Lease Provision |
786,386 |
– |
Total |
1,475,081 |
557,988 |
The Commission’s outcomes are described in Note 15A.