Notes 2 to 7

​DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the period ended 30 June 2012

Note 2. Events After Balance Sheet Date

There have been no events after the reporting period affecting the department.

Note 3. Expenses


2012 2011

$'000 $'000
Note 3A: Employee Benefits

Wages and salaries  339 605  321 733
Superannuation  61 099  56 460
Leave and other entitlements  57 572  36 887
Separation and redundancies  16 084  3 392
Other employee expenses  23 429  18 139
Total employee benefits  497 789 436 611

A reclassification of $853 000 from employee superannuation expense to contractors and consultants suppliers expense has been made in the 2011 comparative statements. The adjustment relates to payments made by the department for contractor superannuation expenses. The reclassification has not affected total expenses reported for 2011.

Note 3B: Supplier

Goods and services

Contractors and consultants  35 244  42 408
Travel  24 417  21 819
Property operating expense  13 311  10 909
Staff development and recruitment  12 702  10 558
Office equipment, stores and consumables  5 913  6 519
Analytical testing  10 180  10 887
IT services  25 325  29 386
Other  18 701  19 788
Total goods and services  145 793  152 274

Goods and services are made up of:


Provision of goods – related entities 1,474  1 836
Provision of goods – external parties 8,834  15 337
Rendering of services – related entities 8,474  12 828
Rendering of services – external parties 127,011  122 273
Total goods and services  145 793  152 274

Other supplier expenses


Operating lease rentals – related entities:

Minimum lease payments 280 160
Operating lease rentals – external parties:

Minimum lease payments  46 938  43 536
Workers compensation expenses  9 384  7 757
Total other supplier expenses  56 322  51 453
Total supplier expenses  202 115 203 727

Note 3C: Grants

Public sector:

Australian Government entities (related entities) 790 220
State and Territory Governments 558 921
Private sector:

Non-profit organisations  1 048  4 970
For profit organisations 712 120
Overseas organisations 597  1 088
Other - 95
Total grants  3 705 7 414

Note 3D: Depreciation and Amortisation


Depreciation:

Property, plant and equipment  1 592  1 036
Buildings 153 81
Leasehold improvements  7 955  7 702
Total depreciation  9 700  8 819

Amortisation:


Assets held under finance lease  1 808  2 510
Intangibles:

Computer software - purchased 489 469
Computer software - internally developed  2 773  2 034
Total amortisation  5 070  5 013

Total depreciation and amortisation
 14 770 13 832

Note 3E: Finance Costs


Finance leases 272 348
Unwinding of discount 168 174
Total finance costs 440 522

Note 3F: Write-Down and Impairment of Assets


Asset write-downs and impairments from:

Impairment on financial instruments 815 941
Impairment on leasehold improvements - 225
Impairment of property, plant and equipment 14 -
Impairment on intangible assets  2 127 547
Impairment on inventories 244 23
Write-down of property, plant and equipment assets 12 79
Total write-down and impairment of assets  3 212 1 815

Note 3G: Other Expenses


Grain rebates  2 500 -
Other  1 055 -
Payment for compensation for detriment for defective administration 2 4
Total other expenses  3 557 4

Note 4. Income


2012 2011

$'000 $'000
REVENUE


Note 4A: Sale of Goods and Rendering of Services


Provision of goods - related entities 1 1
Provision of goods - external parties 21 51
Rendering of services - related entities  18 505  21 641
Rendering of services - external parties  318 317  277 432
Total sale of goods and rendering of services  336 844 299 125

Note 4B: Interest


Deposits 980  1 110
Penalties 285 256
Total interest  1 265 1 366

Note 4C: Other Revenue


Levies  9 134  9 411
Other revenue  5 424  6 947
Total other revenue  14 558 16 358

A correction has been made to the 2011 total for Sale of Goods and Rendering of Services and Other revenue to correct an error in the accounting for revenue (refer note 1.23). The correction increased Sale of Goods and Rendering of Services by $1 940 000 and decreased Other revenue by $12 000 in 2011.

GAINS    
Note 4D: Sale of Assets

Property, plant and equipment:

Proceeds from sale 50 55
Carrying value of assets sold ( 49) ( 37)
Net gain from sale of assets 1 18

Note 4E: Gain on Derecognition of Finance Lease Liability

Carrying value of lease liability derecognised 208 698
Carrying value of asset derecognised ( 198) ( 429)
Total Gain on Derecognition of Finance Lease Liability 10 269

Note 4F: Other Gains

Resources received free of charge  2 860  2 876
Other 305 776
Total other gains  3 165 3 652

REVENUE FROM GOVERNMENT


Note 4G: Revenue from Government


Appropriations:

Departmental appropriation  327 536  353 995
Total revenue from Government  327 536 353 995

Note 5. Financial Assets


2012 2011

$'000 $'000
Note 5A: Cash and Cash Equivalents

Special Accounts  2 668  2 212
Cash on hand or on deposit 764  4 030
Total cash and cash equivalents  3 432  6 242

Note 5B: Trade and Other Receivables

Good and Services:

Goods and services - related entities  2 111  2 425
Goods and services - external parties  17 918  11 716
Total receivables for goods and services  20 029  14 141

Appropriations receivable:


For existing programs  128 369  134 269
For departmental capital budget -  5 648
For equity injection - 723
For departmental supplementations  5 885  6 335
Total appropriations receivable  134 254  146 975

Other receivables:


GST receivable from the Australian Taxation Office  5 110  3 462
Advances 46 145
Operating lease receivable - 106
Other 785 557
Total other receivables  5 941  4 270
Total trade and other receivables (gross)  160 224 165 386

Less impairment allowance account:


Goods and services ( 667) ( 661)
Total impairment allowance account ( 667) ( 661)
Total trade and other receivables (net)  159 557 164 725

Receivables are expected to be recovered in:


No more than 12 months  159 557  164 72
More than 12 months  - -
Total trade and other receivables (net)  159 557 164 725

Receivables are aged as follows:


Not overdue  151 716  160 384
Overdue by:

0 to 30 days  5 826  2 135
31 to 60 days  1 045 676
61 to 90 days 537 227
More than 90 days  1 100  1 964
Total receivables (gross)  160 224 165 386

The impairment allowance account is aged as follows:


Not overdue  - -
Overdue by:

0 to 30 days  - -
31 to 60 days  - -
61 to 90 days  - -
More than 90 days 667 661
Total impairment allowance account 667 661

Reconciliation of the Impairment Allowance Account:

Movements in relation to 2012



Goods
and
services
Other
receivable
Total

$'000 $'000 $'000
Opening balance ( 661) - ( 661)
Amounts written off 601  - 601
Amounts recovered and reversed 59  - 59
Increase/decrease recognised in net surplus (666)  - ( 666)
Closing balance ( 667) - ( 667)

Movements in relation to 2011




Goods
and
services
Other
receivables
Total

$'000 $'000 $'000
Opening balance ( 421) - ( 421)
Amounts written off 710 - 710
Amounts recovered and reversed ( 11)  - ( 11)
Increase/decrease recognised in net surplus ( 939) - ( 939)
Closing balance ( 661) - ( 661)


2012 2011

$'000 $'000
Note 5C: Other Investments

Deposits1  15 000  17 000
Total other investments  15 000  17 000

Total other investments are expected to be recovered in:


No more than 12 months  15 000  17 000
More than 12 months  - -
Total other investments  15 000  17 000

1 Other investments are negotiable certificates of deposit. There are 11 certificates of deposit maturing at different dates within the next 12 months. Interest rates range from 5.00% to 6.20%, payable upon maturity.

Note 5D: Other Financial Assets

Accrued interest 448 541
Accrued revenue - goods and services  6 834  7 321
Total other financial assets  7 282  7 862

Total other financial assets are expected to be recovered in:


No more than 12 months  7 282  7 862
More than 12 months  - -
Total other financial assets  7 282  7 862

Note 6. Non-Financial Assets


2012 2011

$'000 $'000
Note 6A: Land and Buildings

Land:

Fair value  2 790  2 790
Accumulated depreciation ( 8) ( 8)
Total land  2 782  2 782

Buildings on freehold land:


Fair value  2 517  2 460
Accumulated depreciation ( 153) -
Total buildings on freehold land  2 364  2 460

Leasehold improvements:


Work in progress  4 059 327
Fair value  58 279  57 535
Accumulated depreciation ( 15 417) ( 7 464)
Total leasehold improvements  46 921  50 398
Total land and buildings  52 067  55 640

Land and buildings were subject to independent valuation at 30 June 2011. The valuation was conducted in accordance with the valuation policy stated at Note 1.

A review of major indicators and events was conducted in accordance with the Australian Accounting Standards and it was determined that asset carrying values did not differ from fair value at 30 June 2012.

No indicators of impairment were found for land and buildings. In 2010-11, these impairments were recognised in the operating result as a decrement of $225 000.

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

Note 6B: Property, Plant and Equipment

Property, plant and equipment not under finance lease

Fair value  9 819  5 399
Work in progress -  1 341
Accumulated depreciation ( 1 812) ( 282)
Total property, plant and equipment not under finance lease  8 007  6 458



Property, plant and equipment under finance lease

Fair value  8 063  7 627
Accumulated depreciation ( 4 798) ( 3 558)
Total property, plant and equipment under finance lease  3 265  4 069
Total property, plant and equipment  11 272  10 527

Property, plant and equipment were subject to independent valuation at 30 June 2011. The valuation was conducted in accordance with the valuation policy stated at Note 1.

A review of major indicators and events was conducted in accordance with the Australian Accounting Standards and it was determined that asset carrying values did not differ from fair value at 30 June 2012.

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.

Note 6C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2011-12)

Land Buildings Leasehold Improvements Total land
and buildings
Other
property,
plant &
equipment
Total

$’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2011





Gross book value  2 790  2 460  57 862  63 112  14 367  77 479
Accumulated depreciation and impairment ( 8) - ( 7 464) ( 7 472) ( 3 840) ( 11 312)
Net book value 1 July 2011  2 782  2 460  50 398  55 640  10 527  66 167
Additions:





By purchase or internally developed - 57  4 480  4 537  3 215  7 752
By finance lease - -  1 208  1 208
Impairments recognised in the operating result - - - - ( 14) ( 14)
Depreciation expense - ( 153) ( 7 955) ( 8 108) ( 3 400) ( 11 508)
Other movements1 - - ( 2) ( 2) ( 203) ( 205)
Disposals:





By write-off - - - - ( 12) ( 12)
By sale - - - - ( 49) ( 49)
Net book value 30 June 2012  2 782  2 364  46 921  52 067  11 272  63 339

Net book value as of 30 June 2012 represented by:






Gross book value  2 790  2 517  62 338  67 645  17 882  85 527
Accumulated depreciation and impairment ( 8) ( 153) ( 15 417) ( 15 578) ( 6 610) ( 22 188)
Net book value as of 30 June 2012  2 782  2 364  46 921  52 067  11 272  63 339

1 In 2012 the department derecognised finance leased IT equipment, resulting in a total amount of $203 000 being recorded as other movements. A $2 000 rounding adjustment in accumulated depreciation for leasehold improvements has also been recorded as other movement.


Land Buildings Leasehold Improvements Total land
and buildings
Other
property,
plant &
equipment
Total

$’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2010





Gross book value  2 220  2 150  63 777  68 147  13 350  81 497
Accumulated depreciation and impairment ( 7) ( 77) ( 11 165) ( 11 249) ( 4 329) ( 15 578)
Net book value 1 July 2010 2 213 2 073 52 612  56 898 9 021 65 919
Additions:





By purchase or internally developed - 149  3 359  3 508  2 796  6 304
By finance lease -  3 091  3 091
Revaluations and impairments recognised in other comprehensive income 570 319  1 968  2 857 ( 219)  2 638
Impairments recognised in the operating result - - ( 225) ( 225) - ( 225)
Reclassification - - 386 386 19 405
Depreciation expense - ( 81) ( 7 702) ( 7 783) ( 3 546) ( 11 329)
Other movements1 ( 1) - ( 1) ( 519) ( 520)
Disposals:





By write-off - - - ( 79) ( 79)
By sale - - - ( 37) ( 37)
Net book value 30 June 2011 2 782 2 460 50 398 55 640 10 527 66 167

Net book value as of 30 June 2011 represented by:






Gross book value  2 790  2 460  57 862  63 112  14 367  77 479
Accumulated depreciation and impairment ( 8) - ( 7 464) ( 7 472) ( 3 840) ( 11 312)
Net book value as of 30 June 2011 2 782 2 460 50 398 55 640 10 527 66 167

1 In 2011 the department derecognised finance leased IT equipment, resulting in a total amount of $519 000 being recorded as other movements. A $1 000 rounding adjustment in accumulated depreciation for land and buildings has also been recorded as other movement.


2012 2011

$'000 $'000
Note 6D: Intangibles

Computer software:

Internally developed – in progress  32 523  21 742
Internally developed – in use  36 980  27 256
Purchased software  20 206  11 054
Accumulated amortisation ( 34 564) ( 31 418)
Total computer software  55 145  28 634

Total intangibles
 55 145 28 634

A review of major indicators and events was conducted in accordance with the Australian Accounting Standards and it was determined that asset carrying values did not differ materially from fair value at 30 June 2012.

Indicators of impairment were found for a number of intangible assets. These impairments were recognised in the operating result to the value of $2.127 million.

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

Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles (2011-12)



Computer
software
internally
developed
Computer
software
purchased
Total

$’000 $’000 $’000
As at 1 July 2011


Gross book value  48 403  11 649  60 052
Accumulated amortisation and impairment ( 21 328) ( 10 090) ( 31 418)
Net book value 1 July 2011  27 075  1 559  28 634
Additions:


By purchase or internally developed  24 990  6 860  31 850
Impairments recognised in the operating result ( 2 127) - ( 2 127)
Amortisation ( 2 723) ( 489) ( 3 262)
Net book value 30 June 2012  47 215  7 930  55 145

Net book value as of 30 June 2012 represented by:



Gross book value  71 266  18 443  89 709
Accumulated amortisation and impairment ( 24 051) ( 10 513) ( 34 564)
Net book value as of 30 June 2012  47 215  7 930  55 145

Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles (2010-11)



Computer
software
internally
developed
Computer
software
purchased
Total

$’000 $’000 $’000
As at 1 July 2010


Gross book value  36 979  11 054  48 033
Accumulated amortisation and impairment ( 19 294) ( 9 621) ( 28 915)
Net book value 1 July 2010 17 685 1 433 19 118
Additions:


By purchase or internally developed  12 414 557  12 971
Impairments recognised in the operating result ( 547) - ( 547)
Amortisation ( 2 034) ( 469) ( 2 503)
Reclassifications ( 443) 38 ( 405)
Net book value 30 June 2011 27 075 1 559 28 634

Net book value as of 30 June 2011 represented by:



Gross book value  48 403  11 649  60 052
Accumulated amortisation and impairment ( 21 328) ( 10 090) ( 31 418)
Net book value as of 30 June 2011 27 075 1 559 28 634


2012 2011

$'000 $'000
Note 6F: Inventories

Inventories held for distribution  2 911 2 689
Total inventories  2 911 2 689

No items of inventory were recognised at fair value less cost to sell.

During 2012, $2 232 947 of inventory was recognised as an expense (2011: $1 517 442).

All inventory is expected to be distributed in the next 12 months.

Note 6G: Other Non-Financial Assets

Prepayments  4 862  3 375
Lease incentives 173 206
Total other non-financial assets  5 035  3 581

Total other non-financial assets - are expected to be recovered in:


No more than 12 months  4 895  3 407
More than 12 months 140 174
Total other non-financial assets  5 035  3 581

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

Note 7. Payables


2012 2011

$'000 $'000
Note 7A: Suppliers

Trade creditors  4 361  7 401
Other suppliers 663 688
Total supplier payables  5 024 8 089

Supplier payables expected to be settled within 12 months:


Related entities 382 681
External parties  4 642  7 408
Total supplier payables  5 024 8 089

No supplier payables are expected to be settled in greater than 12 months.

Settlement was usually made within 30 days.

Note 7B: Other Payables

Salaries and wages  9 060  7 113
Superannuation  1 567  2 246
Accrued expenses  36 731  23 110
Unearned income  8 294  9 567
Other  1 216 521
Total other payables  56 868  42 557

Total other payables are expected to be settled in:


No more than 12 months  56 868  41 905
More than 12 months - 652
Total other payables  56 868  42 557

An adjustment has been made to the 2011 unearned income total to correct an error in the accounting for revenue received in certain instances. The correction decreased the unearned income balance from $15 018 000 to $9 567 000, a total decrease of $5 451 000. Only $1 928 000 of the total decrease relates to 2010–11.

Last reviewed: 4 November 2019
Thanks for your feedback.
Thanks! Your feedback has been submitted.

We aren't able to respond to your individual comments or questions.
To contact us directly phone us or submit an online inquiry

Please verify that you are not a robot.

Skip