15
FINANCIAL STATEMENTS
FOR YEAR ENDED 30 JUNE 2006
CONTENTS
Independent Audit Report
Financial Statements
- / Statement by Chief Executive Officer- / Income Statement
- / Balance Sheet
- / Statement of Cash Flows
- / Statement of Changes in Equity
- / Schedule of Commitments
- / Schedule of Contingencies
- / Schedule of Administered Items
- / Notes to and forming part of the Financial Statements
Independent Audit Report
Certification by the Auditor General
[Leave two pages blank for insertion of signed copy of certification]
ADMINISTRATIVE APPEALS TRIBUNAL
STATEMENT BY THE CHIEF EXECUTIVE AND CHIEF FINANCE OFFICER
In our opinion, the attached financial statements for the year ended 30 June 2006 have been prepared based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, as amended.
DOUGLAS HUMPHREYS STEPHEN WISE
Chief Executive Chief Finance Officer
30 August 2006 30 August 2006
ADMINISTRATIVE APPEALS TRIBUNAL
INCOME STATEMENT
for the year ended 30 June 2006Notes / 2006
$’000 / 2005
$’000
INCOME
Revenue
Revenues from Government / 4A / 28,896 / 28,162Goods and services / 4B / 1,069 / 891
Total revenue / 29,965 / 29,053
Gains
Other gains / 4C / 196 / 190
Total Gains / 196 / 190
TOTAL INCOME
/ 30,161 / 29,243EXPENSES
Employees / 5A / 17,041 / 15,926Suppliers / 5B / 12,815 / 12,400
Depreciation and amortisation / 5C / 762 / 1,187
Write-down and impairment of assets / 5D / 77 / 126
Net loss on disposal of assets / 5E / 7 / -
TOTAL EXPENSES
/ 30,702 / 29,639OPERATING RESULT
/ (541) / (396)The above statement should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
BALANCE SHEET
as at 30 June 2006Notes / 2006
$’000 / 2005
$’000
ASSETS
Financial assets
Cash and cash equivalents / 6A / 538 / 276Receivables / 6B / 6,973 / 9,769
Total Financial Assets / 7,511 / 10,045
Non-financial assets
Leasehold improvements / 7A,C / 6,161 / 295
Plant and equipment / 7B,C / 1,342 / 1,432
Intangibles / 7D / 133 / 20
Other non-financial assets / 7E / 2,042 / 2,126
Total Non-Financial Assets / 9,678 / 3,873
TOTAL ASSETS / 17,189 / 13,918
LIABILITIES
Payables
Suppliers / 9A / 755 / 671Total Payables / 755 / 671
Non-Interest Bearing Liabilities
Other / 8 / 706 / 110Total Non-Interest Bearing Liabilities / 706 / 110
Provisions
Employee provisions / 10A / 4,234 / 3,936Other provisions / 10B / 385 / 275
Total Provisions / 4,619 / 4,211
TOTAL LIABILITIES / 6,080 / 4,992
NET ASSETS / 11,109 / 8,926
EQUITY
Contributed equity / 2,133 / 2,133Reserves / 2,996 / 272
Retained surpluses / 5,980 / 6,521
TOTAL EQUITY / 11,109 / 8,926
Current assets / 9,553 / 12,171
Non-current assets / 7,636 / 1,747
Current liabilities / 4,656 / 4,680
Non-current liabilities / 1,424 / 312
The above statement should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
STATEMENT OF CASH FLOWS
for the year ended 30 June 2006Notes / 2006
$’000 / 2005
$’000
OPERATING ACTIVITIES
Cash received
Goods and services / 968 / 982Appropriations / 31,793 / 27,116
Net GST received from Australian Taxation Office / 1,366 / 1,139
Total cash received
/ 34,127 / 29,237Cash used
Employees / (16,580) / (16,279)Suppliers / (13,659) / (13,122)
Total cash used
/ (30,239) / (29,401)Net cash from or (used by) operating activities / 11 / 3,888 / (164)
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment / (3,505) / (113)Purchase of intangibles / (121) / (16)
Total cash used / (3,626) / (129)
Net cash from or (used by) investing activities / (3,626) / (129)
Net increase or (decrease) in cash held / 262 / (293)
Cash at the beginning of the reporting period / 276 / 569
Cash at the end of the reporting period / 11 / 538 / 276
The above statement should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2006Accumulated Results / Asset Revaluation reserve / Contributed Equity/Capital / Total Equity
2006 / 2005 / 2006 / 2005 / 2006 / 2005 / 2006 / 2005
$’000 / $’000 / $’000 / $’000 / $’000 / $’000 / $’000 / $’000
Opening Balance / 6,521 / 6,917 / 272 / - / 2,133 / 2,133 / 8,926 / 9,050
Adjusted opening balance / 6,521 / 6,917 / 272 / - / 2,133 / 2,133 / 8,926 / 9,050
Income and expense
Revaluation adjustment / - / - / 2,724 / 272 / - / - / 2,724 / 272
Subtotal income and expenses recognised directly in equity / - / - / 2,724 / 272 / - / - / 2,724 / 272
Net operating result / (541) / (396) / - / - / - / - / (541) / (396)
Total income and expenses / (541) / (396) / 2,724 / 272 / - / - / 2,183 / (124)
Transactions with owners / - / - / - / - / - / - / - / -
Sub-total Transactions with owners / - / - / - / - / - / - / - / -
Closing balance at 30 June / 5,980 / 6,521 / 2,996 / 272 / 2,133 / 2,133 / 11,109 / 8,926
The above statement should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF COMMITMENTS
as at 30 June 2006Notes / 2006
$’000 / 2005
$’000
BY TYPE
Capital commitments
Plant and equipment / 739 / -Total capital commitments / 739 / -
Other commitments
Operating leases 1,2 / 34,696 / 13,223Total other commitments / 34,696 / 13,223
Commitments receivable / (3,221) / (1,202)
Net commitments by type / 32,214 / 12,021
BY MATURITY
Capital commitments
One year or less / 739 / -From one to five years / - / -
Over five years / - / -
Total capital commitments / 739 / -
Operating lease commitments
One year or less / 4,987 / 4,671From one to five years / 23,257 / 7,610
Over five years / 6,452 / 942
Total operating lease commitments / 34,696 / 13,223
Commitments receivable / (3,221) / (1,202)
Net commitments by maturity / 32,214 / 12,021
NB: Commitments are GST inclusive where relevant.
1 These commitments comprise leases of hearing rooms and office accommodation for the Tribunal.
2 Operating leases included are effectively non-cancellable and comprise:
Nature of lease / General description of leasing arrangementLeases for office accommodation / · lease payments are subject to fixed or market review increases as listed in the lease agreements;
· all office accommodation leases are current and most have extension options for the Tribunal following a review of rentals to current market; and
· A commitment for four years has been included for the Commonwealth Law Courts Buildings in Brisbane and Hobart even though there is no lease. This is because budget funding has been approved for this period.
Agreements for the provision of motor vehicles to senior executives / · no contingent rentals exist; and
· there are no renewal or purchase options available to the Tribunal.
The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF CONTINGENCIES
as at 30 June 2006Notes / 2006
$’000 / 2005
$’000
Contingent liabilities
Restoration of Lease CostsBalance from previous period / 425 / 510
New / - / 75
Re-measurement / (75) / -
Liabilities crystallised / (100) / (160)
Obligations expired / (250) / -
Total Contingent Liabilities / - / 425
The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF ADMINISTERED ITEMS
Notes / 2006$’000 / 2005
$’000
Income Administered on Behalf of Government
for the year ended 30 June 2006
RevenueNon-taxation
Filing fees / 1,053 / 1,094
Total Revenues Administered on Behalf of Government
/ 1,053 / 1,094Total Income Administered on Behalf of Government / 1,053 / 1,094
Expenses Administered on Behalf of Government
for the year ended 30 June 2006
Refund of filing fees / 700 / 371
Total Expenses Administered on Behalf of Government / 700 / 371
The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF ADMINISTERED ITEMS (continued)
There were no administered assets or liabilities as at 30 June 2006, (2005:Nil).The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF ADMINISTERED ITEMS (continued)
2006$’000 / 2005
$’000
Administered Cash Flows
for the year ended 30 June 2006
Operating activitiesCash received
Filing fees / 1,053 / 1,094
Total cash received / 1,053 / 1,094
Cash used
Refund of filing fees / 700 / 371
Total cash used / 700 / 371
Net Cash from Operating Activities / 353 / 723
Net Increase (Decrease) in Cash Held / 353 / 723
Cash at the beginning of the reporting period / - / -
Cash from Official Public Account for:
- Appropriations / 700 / 371
Cash to Official Public Account for:
- Appropriations / (1,053) / (1,094)
Cash at End of Reporting Period / - / -
The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
SCHEDULE OF ADMINISTERED ITEMS (continued)
As at 30 June 2006
There were no administered commitments or contingencies as at 30 June 2006 , (2005:Nil).The major administered activities of the Tribunal are directed towards achieving the outcome described in Note 1 to the Financial Statements. The major financial activities are the collection of fees payable on lodging with the Tribunal of an application for a review of a decision, other than in income maintenance matters. On matters other than income maintenance, applicants may apply for a waiver of the fee under regulation 19(6) of the Administrative Appeals Tribunal Regulations 1976.
Fees are refunded in whole if the proceedings terminate in a manner favourable to the applicant except for Small Taxation Claims Tribunal applications where a smaller once-only fee is payable irrespective of the outcome of the decision.
The above schedule should be read in conjunction with the accompanying notes.
ADMINISTRATIVE APPEALS TRIBUNAL
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
NOTE / DESCRIPTION / PAGE1. / Summary of Significant Accounting Policies
2. / The impact of the Transition to AEIFRS from previous AGAAP
3 / Events Occurring After Balance Sheet Date
4. / Income
5. / Operating Expenses
6. / Financial Assets
7. / Non-Financial Assets
8. / Other Non-Interest Bearing Liabilities
9. / Payables
10. / Provisions
11. / Cash Flow Reconciliation
12. / Contingent Liabilities and Assets
13. / Executive Remuneration
14. / Remuneration of Auditors
15. / Average Staffing Levels
16. / Financial Instruments
17. / Administered Reconciliation Table
18. / Appropriations
19. / Special Accounts
20. / Reporting of Outcomes
21. / Compensation and Debt Relief
41
Notes to and forming part of the financial statements
NOTE 1 - Summary of Significant Accounting Policies
1.1 Objectives of the Tribunal
The Administrative Appeals Tribunal (the Tribunal) is an Australian Public Service organisation. The objective and sole outcome of the Tribunal is to provide independent review on the merits of a wide range of administrative decisions of the Australian Government so as to ensure in each case the correct or preferable decision is made.
Tribunal activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Tribunal in its own right. Administered activities involve the management or oversight by the Tribunal, on behalf of the Government, of items controlled or incurred by the Government.
The continued existence of the Tribunal in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament of the Tribunal’s administration and programs.
1.2 Basis of Preparation of Financial Statements
The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report.
The statements have been prepared in accordance with:
· Finance Minister's Orders (or FMOs, being the Financial Management and Accountability Orders (Financial Statements for reporting periods ending on or after 1 July 2005));
· Australian Accounting Standards issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period; and
· Interpretations issued by the AASB and UIG that apply for the reporting period.
This is the first financial report to be prepared under Australian Equivalents to International Financial Reporting Standards (AEIFRS). The impacts of adopting AEIFRS are disclosed in Note 2.
The Income Statement and Balance Sheet have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets and liabilities which, as noted, are at fair value or amortised cost. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unless disclosure of the full amount is specifically required.
Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow 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 which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 12).