joint Departmental Information Centre _evel 5. 1 Macarlhur St EAST MELBOURNE VIC 3002 •h 03 96515660 Fax: 03 96515659 email: [email protected]
TRIAL
CONSOLIDATED
FINANCIAL
REPORT OF THE
GOVERNMENT
OF VICTORIA
YFAII ENDKD 30 JUNI: 1995
State of Victoria Trial
CONTENTS
Page Number Introduction 1-2
Summary of the State's Financial Performance 3-4
Unaudited Trial Consolidated Financial Report
Operating Statement 5 Statement of Financial Position 6
Statement of Cash Flows 7-8 Notes to the Financial Statements 9-18 List of entities forming part of the Consolidated Financial Report 19-22 Glossary of terms used in this Report 23-24
Other Financial Information
National Uniform Budget Presentation 27-30
Cash Based Financial Information
Total Appropriations and Expenditure of Departments 31
Summary of Consolidated Fund Transactions 32
Additional Financial Information
Total Recurrent Receipts 33 Detail -
Taxation Receipts 33 Regulatory Fees and Fines 34 Recoveries of Debt 34 Public Authorities Receipts 35 Commonwealth Payments to Victoria 35-37 VIC. JOINT DEPT INFO. CENTRE
20 DEC 2000
LEVEL 3, 1 MACARTHUR STREET E. MELBOURNE VIC. 3002
• State of Victoria Trial
INTRODUCTION
Purpose
The purpose of the trial Consolidated Financial Report for the year ended 30 June 1995, is to generate discussion on the issue of Consolidated Financial Reporting at all levels of Government.This Report is not fully comprehensive, as detailed on page 2 and has not been audited. The introduction of this trial Consolidated Financial Report is the first stage in a systematic program of producing regular Consolidated Financial Reports for the efficient and effective management of the State of Victoria.
First trial presentation of a Consolidated Financial Report
This is the first trial presentation of a Consolidated Financial Report comprising an Operating Statement, a Statement of Financial Position, a Statement of Cash Flows and Notes for the State of Victoria and is based on the year ended 30 June 1995. This Consolidated Financial Report is prepared on an accrual basis. The publication of this Consolidated Financial Report builds on the work underway to implement accrual accounting, monthly accrual management s reporting and output budgeting. The preparation of this Report emanates from the recommendations and findings of the Victorian Commission of Audit, May 1993 and the introduction of Exposure Draft 62 (ED 62) Financial Reporting by Governments which is due to be released as an accounting standard applicable to all Governments of Australia froml999.
Entities Consolidated
The ability to control an entity is the factor determining whether it should be consolidated within this Report. In order to ascertain whether a Government exercises control over specific entities both Australian Accounting Standard (AAS) AAS 24 Consolidated Financial Reports and ED 62 Financial Reporting by Governments provide assistance. The definition of control is dependent on particular circumstances. Where a Government has the capacity to dominate the financial and operating policies of another entity, then the Government has control over that entity. Some of the primary factors indicating control are: • the existence of a Ministerial or other government power which enables the Government to give directions to the governing body of that entity on its financial and operating policies; • the Government has broad discretion, under existing legislation, to remove a majority of members of the governing body of that entity; or • the Government has a majority of the votes that are likely to be cast at a general meeting of that entity. Given the above factors, the following groups have been consolidated: • Administrative Units/Departments • Government Business Enterprises • Financial Institutions • Water bodies • Hospitals • Controlled companies, trusts and joint ventures • Other budget sector agencies that fall under the control definition (Pages 19-22 list specific entities consolidated)
Local Government and Universities have not been included in this Report.
Consolidation Process The trial Consolidated Financial Report has been made possible due to: • nearly all Departments producing audited accrual financial statements for the year ended 30 June 1995; • the establishment of values for certain land and buildings by accredited valuers; • all other agencies already producing accrual financial data; and • the cooperation of Departments who acted as Portfolio coordinators. For the purposes of this trial, all.consolidated entities assisted the Department of Treasury and Finance in this process tojroduce the Consolidated Financial Report, by adopting the following consolidation process: • Departmental level - each department consolidated and eliminated transactions between entities within its portfolio (budget and non-budget sector, including statutory bodies); and • Central Agency level - the Department of Treasury and Finance consolidated and eliminated transactions between Portfolios, .producing the Consolidated Financial Report. To facilitate this, each Department separately identified total transactions (by category) with other Portfolios. For the 1996-97 Consolidated Financial Report, the consolidation process will be performed by the Department of Treasury and Finance, from information provided through the new financial managment system being implemented. Limitations
The Consolidated Financial Report at this stage has not been audited. Care needs to be taken when interpreting these results. Most Departments and agencies have been audited as at the 30 June 1995 by the Victorian Auditor- General. However, the Australian Accounting Research Foundation's recently released AAS 29 Financial Reporting by Government Departments gives Departments until 31 December 1996 to fully comply with this standard. A significant limitation in this Consolidated Financial Report is that certain Departments have not completed, and therefore recorded, the valuation of all their assets.
All the Non-current assets that are part of the Consolidated Statement of Financial Position as at 30 June 1995 have been valued independently by an accredited valuer or recorded at historical cost.
The following assets have not been included, as reliable asset values had not been established by the Departments of Conservation and Natural Resources, Arts, Sport and Tourism and Education. They include: • Certain heritage assets; • Certain plantations controlled by the Department of Conservation and Natural Resources; • Conservation areas; • Crown land; • National parks; • Natural resources; • State parks; and • State schools. It follows that no depreciation has been taken to account in this consolidation for the asset categories listed above.
These assets are in the process of being valued over the next two years and are to be included in subsequent Consolidated Financial Reports. The value of these assets together with their associated depreciation charge will be brought to account, once their value has been established.
In addition, eliminations of transactions between entities within the Ministerial Portfolio level are required in order for the Consolidated Financial Report to be prepared. Given that this was the first attempt at preparing a Consolidated Financial Report, certain entities were not in a position to identify accurately all these transactions. As such, certain estimates as to the value of these transactions had to be made in order for transactions to be eliminated to fairly present a Consolidated Financial Report for Victoria as at 30 June 1995.
Finally, Contingent Liability information relative to the State of Victoria should exist in clear unambiguous descriptive written form and, wherever possible, by way of financial estimates of the amounts of the individual claims made against the State. Their status as contingent liabilities implies that they are claims which the State has rejected and are in various stages of dispute resolution or are normal commercial guarantees which specific claims have either been made and not proven or not made. In those cases where the nature of the information is sufficiently vague so that financial estimates in any form cannot be made, it is appropriate that both the existence and general description of claims are acknowledged.
For the purposes of this trial Consolidated Financial Report, only estimates and descriptions of those claims that were able to be estimated and described were provided. The contingent liability information provided in this financial report is therefore limited, in the first place to the adequacy of descriptions of those claims for which estimates of the values of the claims have been made, and secondly, to the extent of those claims that have been made against the State for which neither description nor financial estimate has been provided.
M. J. VERTIGAN R. B. PAICE FCPA Secretary Deputy Secretary Department of Treasury and Finance Accounting and Financial Reporting Department of Treasury and Finance
\ V State of Victoria Trial
SUMMARY OF THE STATE'S FINANCIAL PERFORMANCE
OPERATING STATEMENT
1994-95 $ million Operating Statement Total Revenue 29,489.3 Total Expenses 29,080.7 Operating Surplus 408.6
STATEMENT OF FINANCIAL POSITION
1994-95 $ million Assets Total Current Assets 15,288.4 Total Non-Current Assets \ 48,979.7 Total Assets* 64,268.1*
Liabilities / Total Current Liabilities 16,214.1 Total Non-Current Liabilities 51.917.3 Total Liabilities 68.131.4
STATEMENT OF CASH FLOWS
\ 1994-95 $ million
Closing Cash Balance 1922.0 Increase/(decrease) in cash and cash equivalents 278.1 Net Cash Flows from Operating Activities 2404.8 Net Cash Flows used in Investing Activities (1,603.6) Net Cash Flows used in Financing Activities (523.1)
* The following assets were not included in the Statement of Financial Position because asset values were not available or reliable asset values had not been established: • Certain heritage assets, such as museum items; • Certain parks, forests and plantations; • Crown land; • Natural resources; and • Schools.
It is estimated that these assets will be valued in excess of $10 billion.
V State of Victoria Trial
SUMMARY OF THE STATE'S FINANCIAL PERFORMANCE
TOTAL REVENUE BY TYPE
Other Revenue 14.1%
TOTAL EXPENSES BY TYPE
Other 3.4%
Supplies & Services 35.4% State of Victoria Trial
OPERATING STATEMENT For The Year Ended 30 June 1995
Note 1994-95 $ millions REVENUE State Revenue State Taxation 2 7,292.0 Commonwealth Grants 5,375.0 Fines and Regulatory Fees 182.9 Total State Revenues 12,849.9
Operating Revenue Sale of Goods and Services 10,312.1 Investment Income \ 3 2,185.0 Other Operating Revenue \ v 3 4,142.3 Total Operating Revenues \ _ 16,639.4
/
TOTAL REVENUE ' ^ \ 29,489.3
EXPENSES \ ' Employee Entitlements \ , 11 7,698.9
Superannuation " x - 11 1,128.6 s\ \ Supplies and Services \ • 10,314.6 x •• x Depreciation , \ 1,610.8 Finance Costs ^ ' , \ ' 4,363.0 Grants and Subsidies y' ' 2,974.0 Other / * \ - \ . 990.8
TOTAL EXPENSES \ > 4 29,080.7
OPERATING SURPLUS/(DEFICIT) x 408.6 State of Victoria Trial
STATEMENT OF FINANCIAL POSITION As At 30 June 1995
Note 1994-95 $ millions
CURRENT ASSETS
Cash 1,818.2
Investments 6.714.3 Receivables and Advances 5.572.4 Inventories 598.9 Other 584.6
TOTAL CURRENT ASSETS 15,288.4
NON-CURRENT ASSETS
Investments 2,850.9 Receivables and Advances 880.1 Land and Buildings 19.761.4 Plant and Equipment 9,993.0
Infrastructure Systems 14.666.5 Other 827.8 48,979.7 TOTAL NON-CURRENT ASSETS
64,268.1* TOTAL ASSETS*
CURRENT LIABILITIES
Borrowings 10 9,589.0 Employee Entitlements 11 1.498.6 Payables and Provisions 2,549.8
Other 2.576.7
TOTAL CURRENT LIABILITIES 16,214.1 \
NON-CURRENT LIABILITIES
Borrowings 10 28,167.0 Employee Entitlements 11 15,722.5 Payables and Provisions 2,747.9 Other 5,279.9
51,917.3 TOTAL NON-CURRENT LIABILITIES
68,131.4 TOTAL LIABILITIES
NET ASSETS* (3,863.3)*
The following assets were not included in the Statement of Financial Position because asset values were not available or reliable asset values had not been established: • Certain heritage assets, such as museum items; • Certain parks, forests and plantations; • Crown land; • Natural resources; and • Schools.
It is estimated that these assets will be valued in excess of $10 billion. State of Victoria Trial
STATEMENT OF CASH FLOWS For The Year Ended 30 June 1995
1994-95 $ millions Inflows (Outflows)
Cash Flows from Operating Activities State Revenues
State Taxation 7,292.0 Commonwealth Grants - Recurrent 4,867.5 Commonwealth Grants - Capital 507.3 Fines and Regulatory Fees 182.9 Total State Revenues 12,849.7
Operating Revenues
Sale of Goods and Services 10,255.2 Interest and Dividends Received 1,368.4 Other 3,423.6
Total Operating Revenue 15,347.2
Total Revenues 27,896.9
Payments
Employee Related (7,327.3) Suppliers and Other Expenses (14,064.8) Finance Costs (4,100.0)
Total Payments (25,492.1)
Net Cash Flows fropi Operating Activities 2,404.8
Cash Flows from Investing Activities
Purchase of Properties, Plant and Equipment (2,478.4)
Proceeds from Sale of Properties, Plant and Equipment 431.3
Purchase of Investments and Advances (8,401.9)
Proceeds from Sale of Investments and Advances 8,845.4
Net Cash Flows from Investing Activities (1,603.6)
Cash Flows from Financing Activities
Proceeds from Borrowings 7,202.2 Repayments of Borrowings (7,415.9) Other Financing Activities Paid (309.4)
Net Cash Flows Used in Financing Activities (523.1)
Net Increase/(Decrease) in Cash Held 278.1
Opening Cash Balance 1,643.9
Closing Cash Balance 1,922.0 State of Victoria Trial
STATEMENT OF CASH FLOWS INFORMATION
1994-95 $ million
a) Reconciliation of operating result to net cashflows from operating activities
Operating surplus 408.6
Items included in the operating balance but not in the net cashflows from operations
Physical Assets Movements y Depreciation - 1,610.8 Gain/loss on asset disposals 77.5
Valuation changes Revaluation of Other Non Current Assets 88.6 Other (307.2)
Other Non-cash items added back Movement in employee entitlements 395.0
Other deductions \ ./ Other investing and financing items \ , ' 131.5
Net cashflows from operating activities 2,404.8
b) Reconciliation of Cash For the purposes of the Statement of Cashflows, cash constitutes the following: \
Cash 1,818.2 Deposits at Call 96.4 Bank Overdraft (96.2) Other 103.6
Total Cash Balance 1,922.0
• State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity Except as noted in the introduction, in accordance with Australian Accounting Standards, these financial statements include all assets, liabilities, equity, revenues and expenses and the related cashflows of the State Government of Victoria (Government), including those of entities controlled by the Government as at 30 June 1995. The Government economic entity includes Government departments, public trading enterprises, Government- controlled financial institutions and Government-controlled not-for-profit entities. Where appropriate, these reporting entities are also classified as either Budget Sector or Non Budget Sector entities. The Budget Sector encompasses all activities funded primarily from State Appropriations and taxation, Commonwealth grants and income from public authorities and which are directly accountable through Ministers to the Parliament. The Non Budget Sector consists of Government authorities which are outside the direct ambit of Government funding and which operate either on a commercial basis with a policy of obtaining at least 50 per cent of their revenue from user charges or on a not-for-profit basis which have a commercial charter. They include entities such as public trading enterprises (eg. Melbourne Water Corporation and Gascor Limited). These are self funded from user charges except to the extent that they receive payments from thè Budget to meet defined community service obligations. The Non Budget Sector also includes entities such as the Treasury Corporation of Victoria and the Transport Accident Commission. These statements exclude from consolidation all entities whère it is considered that the Government does not have "control" over financial and operating policies and activities. Excluded entities mainly comprise local Government bodies, universities, state superannuation funds, the trust funds of the State Trustees Corporation and most professional registration boards and certain marketing authorities (particularly those having no Government guaranteed borrowings). , /
A complete listing of entities consolidated isiincluded on pages 19-22. y
Basis of Consolidation - \ Controlled reporting entities are consolidated into a single economic entity using the purchase method of consolidation. In the process of reporting the Government as a single economic entity, all material transactions and balances between Government-controlled entities have been eliminated. Where considered material, dissimilar accounting policies adopted by entities have been amended to ensure consistent policies are adopted in these financial statements. In moving from cash to accrual accounting,''previously unreported and/or material errors in reported values have been accounted for by way of direct adjustment to the relevant asset and liability accounts. /: • ' \ • *» Commitments and contingent liabilities of reporting entities are reported in Notes 14 and 15 as Statements of Commitments and Contingent Liabilities respectively. \ , \ \ / \ Basis of Accounting The financial statements are prepared in accordance with applicable Australian Accounting Standards, Generally Accepted Accounting Principles, the Financial Management Act 1994 and the Directions of the Minister of Finance issued under that Act. The statements have been prepared using the accrual basis of accounting which generally recognises the economic effects of transactions and events when they occur. The financial statements are based on the historical cost convention except for certain non-current assets which are at valuation (eg. replacement value for non current physical assets net of any depreciation charged since that revaluation, and market value for investments).
Basis of Measurement The financial statements adopt historical cost accounting, with the exception that land, buildings, infrastructure systems, national and forest parks, conservation areas, historical and cultural collections, commercial forests are revalued to their replacement cost at least every 5 years. Most assets have been revalued within the last 5 years. Revalued assets are depreciated over their estimated remaining useful lives.
Accounting Periods
The reporting period for most reporting entities is the year ended 30 June 1995. A number of Non Budget Sector reporting entities balance on a date other than 30 June. For these entities, the financial statements for the most recent year were used. As this trial Consolidated Financial Report is the first stage of introducing regular Consolidated Financial Reports, comparative information is not provided. __ State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONT.
Revenue
State Taxes and Fees
Revenues resulting from taxes, sales of goods and services, and fines and regulatory fees are, where practical, recognised when the transaction or event giving rise to the revenue occurs.
The policies adopted for the recognition of each major type of tax revenue are as follows:
As there is no direct relationship between paying tax and receiving government services and benefits, State taxation is generally recognised at the time the obligation to pay tax arises. The revenue recognition criteria for major items are:
Revenue Type Revenue Recognition Criteria
1. Payroll Tax When the cash is received by the due date plus additional revenue for assessments issued after the due date relevant to the reporting period.
2. Land Tax When assessments are issued. \ \ \ \ v\ / / \ 3. Stamp Duty When the cash is received plus additional revenue for assessments issued. 4. Liquor Licence Fees When cash is received. / \ / / .. \ 5. Motor Vehicle Registration When cash is received. v ^ \ /' 6. Petroleum Franchise Fees When the cash is received plus additional revenue for assessments issued.
Fines and Regulatory Fees
Revenue is recognised at the time at when the fine is issued. y
N\ \ Sale of Goods and Services / 1 Amounts earned in exchange for the provision of goods,or services are recognised when the goods or services are
provided. x , V / Commonwealth Grants*
These are funds provided by the Commonwealth to assist the States in meeting general or specific expenditure responsibilities and are recognised when received. Funds provided by the Commonwealth include.amounts transferred to Local Governments and Universities. \ > „ x ' \ \ Expenses ' \ \ , V \ \ Expenses are recognised when incurred and are reported in the financial period to which they relate.
Employee Entitlements
These expenses include all costs related to employment (other than superannuation) including salaries and wages, fringe benefits tax, workers' compensation, leave entitlements and redundancy payments. Superannuation costs are shown separately.
Supplies and Services
These generally represent the day-to-day running costs incurred in the normal operation of entities. They exclude transfer payments such as grants and subsidies paid to community groups which are included under "Grants and Subsidies" expenses.
Assets
Receivables
Receivables are recorded at the amounts expected to be ultimately collected in cash, that is, amount receivable less any provision for bad and doubtful debts.
• State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONT.
Investments Tradeable marketable securities and deposits are valued at market value. Marketable securities and deposits held for investment are presently recorded at market value. Marketable securities and deposits held for investment will then be recorded at the lower of cost or market value. The remaining equity investments are included at the lower of cost or net asset value, based on internal management accounts as at 30 June 1995.
Inventories Inventories are valued at the lower of cost or net realisable value. The valuation methods used are average cost and "first in first out".
Land and Buildings Land and buildings are carried at current market buying price if they are core assets "and at net realisable value if they are non-core assets. Current market buying price is the amount for which an asset.with similar service potential could be bought by a knowledgeable willing buyer from a knowledgeable willing seller in an arm's length transaction at current price, net of transaction and commissioning costs including estate agents fees, bridging finance costs, one-off start up costs, etc. All assets that are part of the Statement of Financial Position as at 30 June 1995 have been valued independently by accredited valuers. The following assets have not been included becausc asset values were not available or reliable asset values had not been established: \ • Crown Land; , • Certain Heritage assets, such as museum items; ; • Certain forests, parks'and plantations; and \ • State schools. These assets are in the process of being valued over the next two years and are to be included in subsequent Annual Reports. Land under roads cannot be reliably assessed and has therefore been assigned no value.
Plant and Equipment / \ Plant.ahd equipment is carried at replacement cost net of depreciation.
Infrastructure System Assets Infrastructure system assets are valued at historical cost or carried at replacement cost net of depreciation. Infrastructure system assets include items such as bridges, sewerage systems, water supply and reservoirs, power generation plants and transmission lines and roads (excluding land under roads which cannot be reliably assessed and has therefore been assigned no value).
National Parks, Forest Parks and Conservation Areas Assets are carried at current market buying price.
Commercial Forests Commercial forests are recorded at estimated net current value (sustained yield approach). This approach takes into account age, quality of timber, market expectations and forest management plan. The sustained yield approach involves expensing the cost of fully maintaining the existing timber stands, together with the harvesting costs of current year timber sales as each stand is harvested. This policy recognises that sales and volumes are expected to increase over the next few years until they reach a more steady state condition. During this period the value of the forest will increase annually as the average age of the forest increases. The valuation is on a "Perpetual Forest Basis" and reflects an assessment of the value of the forest based on projected woodflows with plantation operations being maintained in perpetuity. Valuation gains are transferred to an asset revaluation reserve. State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONT.
Heritage Collections
Heritage assets are defined as those non-current assets that a government intends to preserve because of their unique historical, cultural or environmental attributes. A common feature of heritage assets is that they generally can only be replaced by reproduction or facsimile.
Heritage assets include items such as memorials, Royal Botanic Gardens, Government House, Parliament House, historic houses, certain museum exhibits, archival collections, art collections, exhibits and books of cultural interest.
Where values have been attributed to these assets, valuation of these assets is at replacement cost.
Most of these assets have not been valued.
Depreciation of Non- Current Assets
All non-current physical assets having limited useful lives are systematically depreciated over their estimated useful lives in a manner which reflects the consumption of their service potential.
Depreciation methods and the estimated useful lives are reviewed annually. This is so that adjustments can be made to reflect the most recent assessment of useful lives of assets having regard to such factors as usage, technical or commercial obsolescence and estimated residual value. \ Depreciation is generally provided on a straight line basis at rates calculated to allocate the cost or valuation of an asset, less any estimated residual value over its estimated useful life. Whilst Australian Accounting Standard AAS 4 Depreciation of Non-Current Assets requires depreciation of all physical assets except for land, it was considered that National and forest parks, conservation areas, historical and cultural collections are anticipated to have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of them. This departure from the standard is not considered to be material.
As stated under "Land and Buildings", certain assets have not been brought to account. These assets are currently in the process of being valued over the next two years. The value of these assets together with their associated depreciation charge will be brought to account, once the values have been established.
Liabilities S ^ • /
\ Borrowings,
The State's borrowings represent funds raised from the following sources: • loans raised by the Commonwealth on behalf of the State; • public domestic and overseas borrowings via the Treasury Corporation of Victoria; and • private and public domestic borrowings by Non Budget Sector entities.
Borrowings in the Statement of Financial Position are carried at face value less unamortised discount or premium. This amortisation of discounl/premium is treated as a finance cost and is amortised over the term of the debt. ^ \ Overseas borrowings are translated at exchange rates prevailing at balance date unless they are subject to forward exchange contracts where the contract rate is used. Exchange gains or losses are included in the Operating Statement in the period in which they arise.
Leases
Finance leases transfer to the lessees substantially all the risks and rewards incidental to the ownership of a leased asset. The obligations under such leases are capitalised at the present value of the lease payments. The capitalised values are amortised over the period in which the entities expect to receive benefits from their use.
Operating leases, where the lessors substantially retain the risks and rewards of ownership, are recognised as expenses systematically over the term of the leases. The costs of leasehold improvements are capitalised and amortised over the remaining term of the lease or the estimated useful lives of the improvements, whichever is the shorter. State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONT.
Employee Entitlements
Leave Provision is made in the accounts for obligations in respect of long service leave and annual leave entitlements not taken at balance date. The amounts are accrued annually at current salary and wage rates. Long term employee entitlement liabilities are measured at the present value of the estimated future cash outflows arising from employees' services to date.
Superannuation
Superannuation liabilities, in respect of the contributory service of current and past government employees, are recorded at the latest actuarial assessment of the Government's liability, net of the fund's assets.
Other Liabilities
All other liabilities are recorded at the estimated obligation to pay. /
Commitments / Commitments represent those operating and capital commitments arising from non-cancellable contractual or statutory obligations of the Government. ,
Contingent Liabilities ,
Contingent liabilities represent contingent claims arising out of the Government's operations and which could be quantified. \
' \ \ * - Cash Flows For the purposes of the Statement of Cash Flows, cash comprises cash on hand, cash at bank, bank overdraft and deposits at call. yv - J-..- •' Comparative Figures
No comparatives are disclosed as this is the first year Victoria has prepared a Consolidated Financial Report.
Roundings x \
All values in the financial statements have been rounded to the nearest hundred thousand dollars unless specifically stated otherwise.
REVENUE - STATE TAXATION • 1994-95 $ million
Payroll Tax 1,825.3 Property 581.8 Financial and Capital Transactions 1,517.8 Public Authority Contributions 309.4 Gambling 940.3 Insurance 302.5 Motor Vehicles 761.5 Other Licences and Levies 1,053.4 Total 7,292.0 State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
3. REVENUE - OPERATING REVENUE
1994-95 $million Investment Income Interest income 1,066.5 Other 1,118.5 Total 2,185.0
Other Operating Revenue Net proceeds from asset disposals 351.0 Less: written down value of disposed assets (201.7) Net gains on disposals of assets 149.3 Land Rent, Licences and Leases 457.0 Other 3,536.0 Total 4,142.3
4. EXPENSES / / By Departmental Level: / Parliament 47.6 Agriculture, Energy and Minerals 164.1 Arts, Sport and Tourism 744.7 Business and Employment 294.1 Conservation and Natural Resources 713.5 Education 3,864.3 Health and Community Services 5,344.3 Justice / / 1,758.1 Planning and Development 316.9 Premier and Cabinet \ 46.0 Transport 1,856.6 Treasury and Finance 13,930.5 Total \ 29,080.7 y Following consolidation, the amounts stated above are net of inter-departmental transactions which have been eliminated. \
5. INVESTMENTS \ y / \ Current S \ \ 6,714.3
Non- current N ' 2,850.9 Total , \ 9,565.2
Analysed as follows: \ \ - \ By Type: 6.166.4 Marketable Securities and Deposits 1.256.5 Unlisted Investments 2,142.3 Other 9,565.2 Total
6. RECEIVABLES AND ADVANCES
Current 5,572.4 Non-current 880.1 Total 6,452.5
Analysed as follows:
Receivables 5,474.3 Advances 828.9 Other 149.3 Total 6,452.5
V Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
7. INVENTORIES 1994-95 $ million
Raw materials 120.6 Work in progress 265.6 Finished goods 57.1 Consumable stores 155.5 Total 598.9
8. LAND, BUILDINGS, PLANT, EQUIPMENT AND INFRASTRUCTURE ASSETS
Land and Buildings
At valuation 22,565.8 Accumulated depreciation (2,804.4) Total Land and Buildings at written down value ' 19,761.4
Plant and Equipment - \ -
At valuation • \ N- / 12,691.9 Accumulated depreciation (2,698.9) Total Plant and Equipment at written down value '' 9,993.0
Infrastructural Systems
At valuation - ' 16,194.7 Accumulated depreciation (1,528.2) Total Infrastructural Systems at written down value 14,666.5
Most assets have been revalued within the last 5 years.
Since valuations were carried out, certain assets have been acquired at cost.
9. OTHER NON-CURRENT ASSETS \ At valuation Heritage Collections 38.2 Commercial Forests - 214.9 Other assets \ 575.5 Total cost or valuation 828.6
Accumulated depreciation Other assets (0-8) Total accumulated depreciation , (0~
Written down current cost Heritage Collections 38.2 Commercial Forests 214.9 Other assets 574.7 Total written down current cost 827.8
Note: All Non-current assets that are part of the Statement of Financial Position as at 30 June 1995 have been valued independently by an accredited valuer or recorded at historical cost. Most assets have been valued within the last 5 years. The following assets have not been included because reliable asset values were not available. This includes: • Certain heritage assets, such as museum items; • Certain forests, parks and plantations; • Crown land; • Natural resources; and • State schools. These assets are in the process of being valued over the next two years and are to be included in subsequent Annual Reports. It is expected that the value attributable to these assets will be significant. Land under roads cannot be reliably assessed and has therefore been assigned no value.
V State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
10. BORROWINGS 1994-95 $ million
Current 9,589.0 Non-current 28,167.0 Total 37,756.0 Analysed as follows:
Domestic 26,019.7 Foreign 11,736.3 Total 37,756.0
11. EMPLOYEE ENTITLEMENTS Current 1,498.6 Non-current 15,722.5 Total 17,221.1
Analysed as follows:
Unfunded superannuation / 15.101.0 Long service leave and other leave entitlements 2,120.1 Total 17.221.1
Movement in the provision: . Opening balance 1 July / » - . _ ,/ 4,541.3 Prior year adjustments \ X 12,992.9 Add: Increase in liabilities during the year \ 4,292.8 Less: Payments (4,605.9) Closing balance 30 June 17,221.1
The charges for employee entitlements and superannuation for the current year, as per the Operating Statement, are included in the movements in the provision above. The prior year adjustment relates to the recognition, for the first time, of the Government's obligation to unfunded superannuation, but not charged against the current year result.
/ 12. TRUST FUNDS / Budget Sector 316.1 Non-budget sector 77.7 393.8 Analysed as follows:
Opening balance 367.5 Contributions 167.5 Distributions (196.8) Revenue 4,410.6 Expenses (4,355.0) Closing balance 393.8
Budget Sector trust monies mainly comprise Supreme Court trust funds held in statutory accounts. Trust monies held by Non Budget Sector agencies include Treasury Corporation Victoria monies held for non-consolidated public sector agencies. State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
13. EXPENDITURE COMMITMENTS 1994-95 $ million
A. CAPITAL EXPENDITURE
Capital expenditure commitments payable: not later than one year 844.4 later than one year and not later than two years 634.8 later than two years and not later than five years 1,741.9 - later than five years 590.7 Total capital expenditure commitments 3,811.8
B. OPERATING LEASE EXPENDITURE /X Operating lease expenditure payable: - \ - not later than one year \ 189.2 - later than one year and not later than two years \ \ , 158.7 later than two years and not later than five years \ 1 - 290.8 - later than five years y •- \ - 385.7 Total operating lease expenditure commitments / s- ^ 1,024.4
Aggregate expenditure contracted for at balance date \ /
but not provided for , • v „ \ 4,836.2
. v -, These contractual commitments are not recognised in the statement of / financial position as liabilities ' x
C. FINANCE LEASES PAYABLE (recognised in the statement of financial position):
not later than one year \ x 31.5 later than one year and not later than two years 28.6 later than two years and not later than five years\ 79.8 - later than Eyewears .vfy \\ 293.0 Total minimum lease payments "X'"* 432.9 Z,ess:future finance charges ^ (261.0) Total finance lease liability ' • , / 171.9
These contractual commitments are recognised in the Statement of Financial Position as Liabilities and the corresponding assets are classified Nin the appropriate Non-current "asset categories.
V State of Victoria Trial
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS
14. CONTINGENT LIABILITIES
Contingent liabilities arise from guarantees, indemnities and other forms of support provided by the Government. Contingent liabilities also arise from legal disputes and other claims against the Government.
Contingent liabilities, by definition, are not actual liabilities. They represent circumstances under which there is the possibility due to some future event that an actual liability could arise.
The valuation basis used is that of conservatism, with the maximum expected liability being reported. No offsetting asset or security value, where they exist, has been deducted from the contingent liability reported. The figures presented require careful interpretation. They represent the maximum potential exposure of quantifiable contingent liabilities of the Government, with no explicit assessment of the likelihood of any of the contingent liabilities being converted to actual liabilities in the future.
QUANTIFIABLE CONTINGENT LIABILITIES 1994-95 $ million
Budget Sector 1,449.5 Non-Budget Sector 543.2 1,992.7 Analysed as follows: Guarantees and Indemnities * 1,015.3 Legal Proceedings and Disputes \ - 133.6 Other Contingent Liabilities x / 843.4 Total 1,992.7
OTHER CONTINGENT LIABILITIES NOT QUANTIFIED \ In addition to the items reported above, there are other commitments which have been made by the Government, many of which are unquantifiable arising from: • indemnities provided in relation to financing arrangements, consultancy services, directors and administrators; and • performance guarantees. -
QUANTIFIABLE GUARANTEES AND INDEMNITIES N New guarantees and indemnities executed in 1994-95 ' 30.5
Guarantees and indemnities that were extended during 1994-95 196.4 Y 15. SUBSEQUENT-EVENTS \ \ \ \ Since 30 June 1995, the Government has sold United Energy Pty Ltd, Solaris Power Pty Ltd, Eastern Energy Pty Ltd, Citipower Ltd, Powercor Australia and Yallourn Energy for $10.7 billion. \ / State of Victoria Trial
LIST OF ENTITIES CONSOLIDATED
Department of Agriculture, Department of Business and Tambo Nicholson River Management Board Energy & Minerals Employment Tarwin River Management Board Upper Goulburn River Management Departmental Operations Departmental Operations Authority Chief Electrical Inspectors Office Employee Relations Commission of Upper North East River Daratech Pty Ltd Victoria Management Authority Energy Brix Australia Corporation Lifts and Cranes Tribunal Victorian Conservation Trust Gas Transmission Corporation Liquor Licensing Commission Victorian Institute of Marine Gascor Melbourne Exhibition Trust Sciences Office of Rural Affairs National Tennis Centre Trust Victorian Plantations Corporation Office of the Chief Scientist Small Business Victoria Victorian Recreational Fishermen's Office of the Mining Warden Advisory Council Quarry Managers Advisory Panel Department of Conservation Victorian Snow Resorts Pty Ltd Tomato Industry Negotiating Water Training Centre Committee & Natural Resources Western Region Water Authority Veterinary Board of Victoria Westernport Region Water Victorian Broiler Industry Departmental Operations Authority Negotiation Committee Barwon Region Water Authority Wimmera Mallee Rural Water Victorian Dairy Industry Authority Central Gippsland Region Water Corporation Victorian Dried Fruits Board Authority Yarra Bend Park Trust Victorian Meat Authority Central Highlands Region Water Yarra Valley Water Limited Victorian Power Exchange Authority Zoological Board of Victoria Victorian Strawberry Industry City West Water Limited Development Committee Colac Region Water Authority Wine Grape Industry Negotiating Coliban Region Water Authority Department of Education Committee East Gippsland Region Water Authority Departmental Operations Environment Protection Authority Adult, Community and Further Department of Arts, Sport Gippsland Rural Water Education Board and Tourism Glenelg Region Water Authority Directorate of School Education Goulburn Murray Rural Water Office of Training and Further Departmental Operations Authority Education Alpine Resorts Advisory Council Goulburn Valley Region Water Registered Schools Board Alpine Resorts Commission Authority Victorian Tertiary Admissions Australian Grand Prix Corporation Grampians Region Water Authority Centre BASS Victoria Kiewa Murray Region Water Vocational Education and Training Bookmakers and Bookmakers' Authority Accreditation Board Clerks Registration Committee Lower Murray Region Water TAFE's Council of the Museum of Victoria Authority Batman Automotive College of Council of the State Library of Melbourne Parks and Waterways TAFE Victoria Melbourne Water Corporation Box Hill College of TAFE Council of Trustees of the National Mid-Goulburn Region Water Board Broadmeadows College of TAFE Gallery of Victoria Mineral Springs Advisory Casey College of TAFE Emerald Tourist Railway Board Committee Central Gippsland Institute of TAFE Film Victoria Mitchell River Management Board East Gippsland Community College Geelong Performing Arts Centre National Parks Advisory Council of TAFE Trust North Central Waterway Frankston College of TAFE Greyhound Racing Control Board Management Authority Gordon Institute Greyhound Racing Ground Office of Water Reform Goulburn Valley Institute of TAFE Development Board Ovens Region Water Authority Holmesglen Institute of TAFE Harness Racing Board Ovens River Management Board Loddon Campaspe College of TAFE Professional Boxing Control Board Pental Island River Improvement Melbourne Institute of Textiles Public Records Advisory Council Trust Moorabbin College of TAFE Racing Appeals Tribunal Portland Coast Region Water Northern Metropolitan College of State Film Centre of Victoria Authority TAFE Council Recycling and Resource Recovery Outer Eastern College of TAFE State Film Centre of Victoria Council South West College of TAFE Council Royal Botanic Gardens Board Sunraysia Institute of TAFE State Sports Council Royal Botanic Gardens of Victoria Wangaratta College of TAFE Tourism Victoria Rural Water Corporation (shell) Western Metropolitan College of Victorian Arts Centre Trust South East Water Ltd TAFE Victorian Casino and Gaming South Gippsland Region Water William Angliss College of TAFE Authority Authority Wimmera Institute of TAFE Victorian WorkCover Authority South West Water Authority Wodonga College of TAFE South West Water Limited Southern Rural Water Authority Sunrasyia Rural Water Authority State of Victoria Trial
LIST OF ENTITIES CONSOLIDATED
Department of Health & * Cohuna District Hospital * Portland & District Hospital * Colac District Hospital * Preston and Northcote Community Services * Coleraine & District Hospital Community Hospital * Corryong & District Hospital * Ripon Peace Memorial Hospital Departmental Operations * Creswick District Hospital * Robinvale & District Hospital Advanced Dental Technicians * Dandenong Hospital * Rochester & Elmore District Qualifications Board * Daylesford District Hospital Health Service Chiropodists Registration Board * Dimboola District Hospital * Royal Children's Hospital Chiropractors and Osteopaths * Donald District Hospital * Royal Dental Hospital of Registration Board * Eastern Suburbs Geriatric Centre Melbourne Dental Board of Victoria * Echuca District Hospital * Royal Eye and Ear Hospital Dental Technicians Licensing * Edenhope & District Hospital * Royal Melbourne Hospital Committee * Eldon & District Community * Royal Talbot General Food Standards Committee Hospital Rehabilitation Health Services Commissioner * Fairfield Hospital * Royal Women's Hospital Intellectual Disability Review Panel * Geelong Hospital * Rutherglen Hospital Medical Practitioners Board of * Gippsland Base Hospital * Sandringham & District Memorial Victoria * Goulburn Valley Base Hospital Hospital Nurses Board of Victoria * Hamilton Base Hospital * Seymour District Memorial Optometrists Registration Board * Hampton Rehabilitation Hospital Hospital Pathology Services Accreditation * Healesville & District Hospital * Shelley Memorial Hospital Board * Heathcote District Hospital * Skipton & District Hospital Pharmacy Board of Victoria * Heatherton Hospital * South Gippsland Hospital Victorian Psychological Council * Heywood & District Memorial * St Arnaud District Hospital Ambulance Services Victoria Hospital * St George's Hospital Inner Alexandra and District Ambulance * Inglewood Hospital Eastern Geriatric Centre Service * Jeparit Annexe Hospital * St Vincent's Hospital (Melbourne) Ambulance Officers Training Centre * Kaniva District Hospital Ltd * North Western Region * Kerang & District Hospital * Stawell District Hospital * South Eastern Region * Kilmore & District Hospital * Swan Hill District Hospital * South Western Region * Koroit & District Memorial * Tallangatta Hospital * Western Region Hospital * Tatura Hospital Cemeteries * Kyabram & District Memorial * Tawonga District General * Fawkner Crematorium and Cooperative Hospital Hospital Memorial Park * Kyneton District Hospital * Terang & District Community * Geelong Cemeteries Trust * Latrobe Regional Hospital Hospital * Memorial Park Altona * Lismore & District Hospital * Timboon & District Hospital * Necropolis Springvale * Lome Community Hospital * Tweddle Child & Family Health Hospitals * MacArthur Memorial Hospital Service * Alexandra District Hospital * Maffra District Hospital * Wangaratta District Base Hospital * Alfred Group of Hospitals * Maldon Hospital * Waranga Memorial Hospital * Altona District Hospital * Manangatang & District Hospital * Warracknabeal District Hospital * Angliss Hospital, The * Mansfield District Hospital * Warrnambool & District Base * Anne Caudle Centre * Maroondah Hospital Hospital * Apollo Bay & District Memorial * Mercy Public Hospital * West Gippsland Hospital Hospital * Mildura Base Hospital * Western Hospital * Ararat & District Hospital * Monash Medical Centre * Westernport Memorial Hospital * Austin Hospitals * Mordialloc-Cheltenham * Willaura & District Hospital * Bacchus Marsh & Melton Community Hospital * Williamstown Hospital Memorial Hospital * Mornington Peninsula * Wimmera Base Hospital * Ballarat Base Hospital Hospital * Winchelsea & District Hospital * Beeac & District Hospital * Mortlake & District Hospital * Wodonga District Hospital * Beechworth Hospital * Mt Alexander Hospital * Wonthaggi District Hospital * Benalla & District Memorial * Murtoa Hospital * Woorayl District Memorial Hospital * Myrtleford District War Memorial Hospital * Bendigo Hospital * Nathalia Hospital * Wycheproof District Hospital * Bethlehem Hospital Inc. * Nhill Hospital * Yarrawonga District Hospital * Birregurra & District Community * North West Hospital * Yea & District Memorial Hospital Hospital * Numurkah & District War Mental Health Review Board * Boort District Hospital Memorial Hospital Prince Henry's Institute for Medical * Box Hill Hospital * Omeo District Hospital Research * Bright District Hospital * Orbost & District Hospital Psychosurgery Review Board * Burwood & District Community * Ouyen & District Hospital Physiotherapists Registration Board Hospital * Ovens & Murray Hospital for the of Victoria * Camperdown District Hospital Aged Victorian Health Promotion * Casterton Memorial Hospital * Penshurst & District Memorial Foundation * Caulfield General Medical Centre Hospital Victorian Nursing Council * Clunes District Hospital * Peter MacCallum Cancer Institute Victorian Psychological Council * Cobram District Hospital * Port Fairy Hospital State of Victoria Trial
LIST OF ENTITIES CONSOLIDATED
Department of Justice * Bendigo Community Based * Dromana Magistrates Court Corrections * Echuca Magistrates Court * Boronia Community Based * Elsternwick Magistrates Court Departmental Operations Corrections * Ferntree Gully Magistrates Court Administrative Appeals Tribunal * Box Hill Community Based * Frankston Magistrates Court Adult Parole Board Corrections * Geelong Magistrates Court Appeals Costs Board * Carlton Community Based * Hamilton Magistrates Court Coroners Court of Victoria Corrections * Heidelberg Magistrates Court Country Fire Authority * Caulfield Community Based * Hopetoun Magistrates Court Country Fire Authority Appeal Corrections * Horsham Magistrates Court Tribunal * Coburg Community Based * Kerang Magistrates Court County Court of Victoria Corrections * Korumburra Magistrates Court Equal Opportunity Board * Dandenong Community Based * Kyneton Magistrates Court Equal Opportunity Commission Corrections * Lakes Entrance Magistrates Court Estate Agents Guarantee Fund * Frankston Community Based * Lilydale Magistrates Court Firearms Consultative Committee Corrections * Mansfield Magistrates Court Guardianship and Administration * Geelong Community Based * Maryborough Magistrates Court Board Corrections * Melbourne Magistrates Court Judicial Studies Board * Heidelberg Community Based * Melton Magistrates Court Land Titles Office Corrections * Mildura Magistrates Court Land Valuation Boards of Review * Horsham Community Based * Moe Magistrates Court Legal Aid Commission Corrections * Moonee Ponds Magistrates Court Metropolitan Fire Brigades Board * Lilydale Community Based * Mordialloc Magistrates Court Metropolitan Fire Brigades Board Corrections * Mornington Magistrates Court Appeal Tribunal * Loddon Community Based * Morwell Magistrates Court Motor Car Traders Guarantee Fund Corrections * Myrtleford Magistrates Court Claims Committee * Mildura Community Based * Nhill Magistrates Court Motor Car Traders Licensing Corrections * Oakleigh Magistrates Court Authority * Morwell Community Based * Omeo Magistrates Court Office of Fair Trading and Business Corrections * Orbost Magistrates Court Affairs * Northcote Community Based * Ouyen Magistrates Court Office of Public Prosecutions Corrections * Perin Court Office of the Chief Commissioner of * Oakleigh Community Based * Portland Magistrates Court Police Corrections * Prahran Magistrates Court Office of the Chief Parliamentary * Prahran Community Based * Preston Magistrates Court Counsel Corrections * Ringwood Magistrates Court Office of the Director of Public * Shepparton Community Based * Robinvale Magistrates Court Prosecutions Corrections * Sale Magistrates Court Office of the Public Advocate * Spotswood Community Based * Sandringham Magistrates Court Office of the Victorian Government Corrections * Seymour Magistrates Court Solicitor * Sunshine Community Based * Shepparton Magistrates Court Office of Woman's Affairs Corrections * Sth.Melbourne Magistrates Court Patriotic Funds Council * Swan Hill Community Based * Springvale Magistrates Court Police Board of Victoria Corrections * St.Arnaud Magistrates Court Police Review Commission * Wangaratta Community Based * Stawell Magistrates Court Police, Emergency Services and Corrections * Sunshine Magistrates Court Corrections Directorate * Warrnambool Community Based * Swan Hill Magistrates Court Principal Registrar, Crimes Corrections * Traralgon Magistrates Court Compensation Tribunal * Wodonga Community Based * Wangaratta Magistrates Court Residential Tenancies Tribunal Corrections * Warrnambool Magistrates Court Sheriff's Office Magistrates Courts * Werribee Magistrates Court Small Claims Tribunal * Ararat Magistrates Court * Williamstown Magistrates Court Solicitor's Guarantee Fund * Bacchus Marsh Magistrates Court Prisons Solicitor-General * Bairnsdale Magistrates Court * HM Melbourne Remand Centre State Electoral Office * Ballarat Magistrates Court * HM Metropolitan Reception Supreme Court of Victoria * Benalla Magistrates Court Prison Travel Agents Licensing Authority * Bendigo Magistrates Court * HM Prison Ararat Victoria State Emergency Services * Box Hill Magistrates Court * HM Prison Barwon Victorian Community Council * Broadmeadows Court * HM Prison Beechworth Against Violence * Brunswick Magistrates Court * HM Prison Bendigo Victorian Consumer Affairs * Camberwell Magistrates Court * HM Prison Dhurringile Committee * Casterton Magistrates Court * HM Prison F airle a Victorian Prison Industries * Castlemaine Magistrates Court * HM Prison Langi Kal Kal Commission * Cheltenham Magistrates Court * HM Prison Loddon Community Corrections Centres * Children's Magistrates Court * HM Prison Morwell River * Bairnsdale Community Based * Cobram Magistrates Court * HM Prison Pentridge Corrections * Colac Magistrates Court * HM Prison Sale * Ballarat Community Based * Corryong Magistrates Court * HM Prison Tarrengower Corrections * Dandenong Magistrates Court * HM Prison Won Won State of Victoria Trial
LIST OF ENTITIES CONSOLIDATED
Parliament Department of Treasury & Finance Departmental Operations Electoral Boundaries Commission of Departmental Operations Victoria Aluminium Smelters of Victoria Pty State Electoral Office Ltd (ALUVIC) State Parliament Refreshment Alupac Pty Ltd Rooms Aluvic Asia Ltd Aluvic Services Ltd Department of Planning & Citipower Ltd Eastern Energy Ltd Development Electricity Services Victoria Generation Victoria Departmental Operations Government Employee Housing Architects Registration Board of Authority Victoria Hazelwood Power Corporation Ltd Building Advisory Council Loy Yang Power Ltd Building Appeals Board Municipal Electoral Tribunal Building Control Commission National Electricity Market Building Practitioners Board Management Company Building Regulation Advisory Office of Local Government Committee Office of the Regulator-General Docklands Authority Office of the Valuer-General Historic Buildings Council Ombudsman Home Opportunity Loans Ltd Opalwood Pty Ltd Land Conservation Council Printing and Publishing Services Latrobe Regional Commission Victoria Office of Building Office of Housing Probate Duty Hardship Relief Board Office of Major Projects Rural Finance Corporation of Office of Planning and Heritage Victoria Plumbers Gasfitters and Drainers Solaris Power Ltd Southern Hydro Ltd Registration Board Southgate Control Ltd Upper Yarra Valley and Dandenong State Insurance Office Ranges Authority State Revenue Office Urban Land Authority State Trustees Limited Waste Management Council Surveyors' Board of Victoria Transport Accident Commission Department of Premier & Treasury Corporation of Victoria Cabinet Tricontinental Holdings Ltd and Controlled Entities United Energy Ltd Departmental Operations Valuer's Qualification Board Melbourne Major Events Co Ltd Vic Fleet Pty Ltd Office of Public Sector Management Victorian Financial Institution and Co-ordinator General Commission Office of Public Service Victorian Funds Management Commissioner Corporation Office of State Administration Vistel Ltd Office of the Governor Yallourn Energy Ltd Office of the Ombudsman Victorian Auditor-General's Office Victorian Ethnic Affairs Commission Victorian Relief Committee
Department of Transport
Departmental Operations Citylink Authority Marine Board of Victoria Port of Geelong Authority Port of Melbourne Authority Port of Portland Authority Public Transport Corporation Roads Corporation State of Victoria Trial
GLOSSARY
OPERATING STATEMENT
State Taxation This consists of tax items collected/collectible for the Government as prescribed under the State tax legislation. Revenues collected/collectible for State taxation by Government Departments are administered items and therefore unable to be used to fund the operations of a reporting entity.
Commonwealth Grants This consists of amounts received/receivable from the Commonwealth Government. Other revenue received/receivable from the Commonwealth is usually for goods and services. In these instances, the revenue is disclosed under "Sale of Goods and Services".
Funds provided by the Government include amounts transferred to Local Government and Universities.
Fines and Regulatory Fees This consists of penalties and charges received/receivable under legislation and/or regulations. These items are unable to be used to finance the operations of an entity. Revenue is recognised at the time at which the fine is determined by the courts. Sale of Goods and Services This includes Recurrent and Works and Services Appropriation revenues that are forwarded to Departments to enable them to provide their services.
Other Operating Revenue This consists of net revenues/losses from disposal of non-current assets, assets received free of charge or for nominal consideration, donations, user charges, grants, subsidies and all other miscellaneous revenue items.
Salaries and Wages This covers all transactions (except superannuation expenses) in the nature of salaries and wages including all leave entitlements such as annual/recreation, sick leave and long service leave.
Supplies and Services This covers maintenance, rental expenses from operating leases and audit expenses. These generally represent the day-to-day running costs incurred in the normal operation of entities. They exclude transfer payments such as grants and subsidies on-passed to community groups which are included under "Grants and Subsidies" expenses.
Finance Costs This includes interest expenses on current and non-current borrowing and finance charges on finance lease.
Grants and Subsidies This includes grants, subsidies, transfers to other entities, research and development, investment incentives, compensation and ex gratia payments. Other Expenses
This includes bad and doubtful debts, net foreign exchange losses (gains) and all other miscellaneous expenses.
STATEMENT OF FINANCIAL POSITION Investments This includes marketable securities held for trading and investment purposes, foreign and domestic (fixed and/or floating interest) deposits, share investments and unlisted investments. Surplus land and buildings are classified as "Other" investments.
Receivables and Advances This includes taxes receivable, fines and regulatory fees receivable, accrued investment income and loan advances.
Inventories Inventories include all stocks traded within the normal course of operations. This includes land traded by the Urban Land Authority. Infrastructure System Assets These are assets that comprise public facilities and which provide essential services and enhance the productive capacity of the economy including roads, bridges, railways, sewerage systems, water supplies and reservoirs.
Commercial Forests Commercial forests takes into account tradeable stocks and account for the age, quality of timber, market expectations and forest management plan. State of Victoria Trial
GLOSSARY
STATEMENT OF FINANCIAL POSITION Cont.
Heritage Collections Includes assets such as works, library collections, monuments and historic buildings and other treasures which are irreplaceable and are held in perpetuity because of the unique historical, cultural or environmental attributes.
Payables and Provisions
This includes payables for supplies and services, lease liabilities, interest and dividend provisions.
Borrowings This includes short and long term Government Bonds, Euro Commercial Papers and Medium Term Notes. The State's borrowings represent funds raised from the following sources: • loans raised by the Commonwealth on behalf of the State; • public domestic and overseas borrowings via the Treasury Corporation of Victoria; and • private and public domestic borrowings by Non Budget Sector entities. Leases Finance leases transfer to the entities as lessees substantially all the risks and rewards incidental to the ownership of a leased asset. They can include buildings, computers and other significant assets.
Operating leases, where the lessors substantially retain the risks and rewards of ownership, are to be recognised as expenses systematically over the term of the leases. Typically they include computers, faxes, photocopiers, etc.
Employee Leave Entitlements Provision is made in the accounts for obligations in respect of long service leave, sick leave and annual leave entitlements not taken at balance date. These amounts are accrued annually at current wage rates.
Superannuation Unfunded superannuation liabilities, in respect of the contributory service of current and past Government employees, are recorded at the latest actuarial assessment of the Government's liability adjusted for any subsequent movements in value.
Commitments Commitments include operating and capital commitments arising from non-cancellable contractual or statutory obligations and any finance lease liabilities. The finance lease liabilities have been recognised as a liability in the Statement of Financial Position under "Payables and Provisions".
Contingent Liabilities Quantifiable contingent liabilities are recorded within Contingent Liabilities. They include amounts that may be incurred as a result of a past event, for example, litigation before a court.
State of Victoria Trial
OTHER FINANCIAL INFORMATION
National Uniform Budget Presentation Cash Based Financial Information Additional Financial Information State of Victoria Trial
UNIFORM BUDGET PRESENTATION
GENERAL GOVERNMENT SECTOR TRANSACTIONS PURLIC TRADING ENTERPRISE SECTOR
1994-95 TRANSACTIONS $m 1994-95 $m Current Outlays Gross current expenditure 11 336.5 Current Outlays Less Sales of goods and service -1 421.7 Interest payments Equals Final consumption expenditure 9 914.8 General government 79.6 Interest payments 2 116.6 Other enterprises 1 087.9 Subsidies to PTEs 487.6 Income transferred to general government 581.9 Current grants to other governments 423.8 Other transfer payments 27.3 Other transfer payments 1 978.2 Total current outlays 1 776.7 Total current outlays 14 921.1 Capital Outlays Capital Outlays Expenditure on new fixed assets 1 228.3 Expenditure on new fixed assets 1 219.7 Plus Expenditure on secondhand Expenditure on secondhand assets (net) - 133.1 assets (net) 75.3 Gross fixed capital expenditure 1 086.6 Equals Gross fixed capital expenditure 1 303.6 Capital grants to other governments 271.5 Expenditure on land and intangibles (net) - 30.3 Advances paid to PTEs (net) 9.7 Other capital outlays - 46.8 Other capital outlays - 357.8 Total capital outlays 1 226.5 Total capital outlays 1 010.0 Total Outlays 3 003.1 Total Outlays 15 931.0 Revenue and Grants Received Revenue and Grants Received Sales of goods and services 9 306.3 Taxes, fees and fines 7 768.8 Plus Subsidies received 487.5 Interest received from PTEs 73.8 Less Operating expenditure 7 679.1 Interest received from other enterprises 193.6 Grants received Equals Net operating surplus 2 114.6 for own use 6 570.7 Interest received 91.8 for on-passing 805.1 Capital grants received 237.3 Other revenue 873.8 Other revenue 120.7 Total Revenue 16 285.7 Total Revenue 2 564.5 Financing Transactions Financing Transactions Increase in provisions - 9.6 Increase in provisions Advances received (net) -667.9 - depreciation 844.5 Borrowing (net) - 517.5 - other 179.1 Other financing transactions 840.3 Advances received (net) 97.4 Total Financing - 354.7 Borrowing (net) - 886.9 Other financing transactions 204.7 Current deficit/(surplus) - 752.8 Total Financing 438.7 Capital defici1/(surplus) 407.7 Total deficit - 345.1 Current deficit/surplus -1 472.3 Net financing requirement 322.8 Capital deficit/surplus 887.5 Total deficit - 584.9 Source: 1995-96 Budget Paper N° 2 Net financing requirement - 682.2
Source: 1995-96 Budget Paper N° 2
V State of Victoria Trial
UNIFORM BUDGET PRESENTATION
STATE NON-FINANCIAL PUBLIC SECTOR STATE PUBLIC SECTOR TAXES, FEES & FINES TRANSACTIONS 1994-95 $m 1994-95 $m Employers' payroll taxes 1 841.0 Taxes on property Current Outlays Taxes on immovable property 637.1 Gross current expenditure 11 336.5 Stamp duties 960.6 Less Sales of goods and services 1 421.7 Financial institutions taxes 557.4 Taxes on provision of goods and services Equals Final consumption expenditure 9 914.8 Excises 328.6 Interest payments 3 211.4 Taxes on gambling 907.7 Subsidies to PTEs 487.6 Taxes on insurance 464.3 Current grants to other governments 423.8 Taxes on use of goods and performance of Other transfer payments 2 024.7 activities Total current outlays 16 062.3 Motor vehicle taxes 795.5 Franchise taxes 1 068.9 Capital Outlays Other 14.1 Expenditure on new fixed assets 2 462.6 Fees 64.1 Plus Expenditure on secondhand Fines 129.5 assets (net) - 57.8 Equals Gross fixed capital expenditure 2 404.8 TOTAL TAXES, FEES AND FINES 7 768.8 Expenditure on land and intangibles (net) - 24.5 Capital grants to other governments 35.6 Source: 1995-96 Budget Paper N° 2 Advances paid to other governments - 83.5 Other capital outlays - 425.3 Total capital outlays 1 907.0 Total Outlays 17 969.4
Revenue and Grants Received Taxes, fees and fines 7 768.8 Net operating surplus of PTEs 2 114.6 Interest received 286.5 Grants received for own use 6 578.5 for on-passing 805.1 Other revenue 425.2 Total Revenue 17 978.6
Financing Transactions Increase in provisions - depreciation 844.5 - other 169.5 Advances received (net) -664.0 Borrowing (net) - 1 403.5 Other financing transactions 1 043.7 Total Financing - 9.8 Current deficit/surplus -2 225.6 Capital deficit/surplus 1 202.0 Total deficit -1 023.7
Source: 1995-96 Budget Paper N° 2 State of Victoria Trial
UNIFORM BUDGET PRESENTATION
STATE PUBLIC SECTOR OUTLAYS BY PURPOSE STATE PUBLIC SECTOR OUTLAYS BY PURPOSE
1994-95 (Cont) $m 1994-95 $m General Public Services Current outlays 1,360.7 Fuel & Energy Capital outlays 136.6 Current outlays 33.1 Total 1,497.3 Capital outlays 556.2 Total 589.2 Public Order & Safety Current outlays 1,015.2 Agriculture, Forestry, Fishing & Hunting Capital outlays 122.7 Current outlays 238.8 Total 1,137.9 Capital outlays 27.3 Total 266.1 Education Current outlays 4,363.8 Mining & Minerals Resources, Manufacturing Capital outlays 232.8 & Construction Total 4,596.6 Current outlays 37.8 Capital outlays 2.7 Health Total 40.5 Current outlays 2,771.4 Capital outlays 124.6 Transport & Communication Total 2,896.0 Current outlays 798.4 Capital outlays 635.4 Social Security and Welfare Total 1,433.8 Current outlays 852.8 Capital outlays 30.4 Other Economic Affairs Total 883.2 Current outlays 485.8 Capital outlays -43.4 Housing & Community Amenities Total 442.3 Current outlays 282.6 Capital outlays 564.3 Other Purposes Total 847.0 Current outlays Public debt - including interest 3,194.0 Recreation & Culture Other 443.6 Current outlays 184.5 Capital outlays -43.4 Capital outlays -439.4 Total 3,594.2 Total -254.9 TOTAL OUTLAYS STATE PUBLIC SECTOR 17,969.2
Source: 1995-96 Budget Paper N° 2 State of Victoria Trial
UNIFORM BUDGET PRESENTATION
FINANCIAL ASSETS AND LIABILITIES
General Public Trading Total Government Enterprises Non Financial Public Sector 1994-95 1994-95 1994-95 $m $m $m
Gross Debt Deposits Held 102.1 78.5 84.9 Advances Received 3 574.4 1 606.2 3 612.4 Other Borrowings Finance Leases 613.4 38.9 652.4 Loans (a) -11 533.1 10 421.9 -1 141.5 Debt Securities - Maturing < 1 Year 4 876.6 102.2 4 447.9 - Other 26 355.1 1 789.4 27 982.2 Total Gross Debt 23 988.5 14 037.1 35 638.3
Financial Assets - Cash, Deposits and Lending Cash and Deposits 435.5 469.8 809.6 Advances Paid 1 613.2 385.6 430.6 Other Lending Loans & Placements 1 652.2 64.4 1 686.3 Debt Securities - Maturing < 1 Year 1 090.8 230.0 790.0 - Other 185.0 40.8 63.6 Total Cash, Deposits 4 976.8 1 190.6 3 780.0 and Lending
Net Debt (b) 19 011.7 12 846.5 31 858.2
Other Liabilities Accounts payable and other 2 736.9 3 523.5 6 260.4 debt items (c) Unfunded Employee 16 791.2 711.2 17 502.5 Entitlements
Other Financial Assets Accounts Receivables and Other Non-Equity Financial Assets (d) 1 917.8 1 609.0 3 526.8 Less Provision for Doubtful -155.7 - 21.9 - 177.6 Debts
Equity Equity of Listed Entities - Public Trading Enterprises 23.3 - Other 217.4 34.2 251.6 Residual Equity - Public Trading Enterprises - Other 2.3 2.9 5.2
Excess of Total Liabilities over Financial Assets 36 534.9 15 457.0 52 015.2
Notes: a) Loans by Central Borrowing Authorities to other government organisations (including Public Financial Enterprises) are consolidated out of the General Government sector by assigning a negative value to the General Government loans. This has resulted in a negative value for total non-financial public sector loans because the value of loans by Treasury Corporation of Victoria to government organisations exceeds the total value of loans reported by other non-financial public sector entities. b) Total Gross Debt less Total Cash, Deposits and Lending. c) Includes prepayments received and accrued interest due but not paid. d) Includes prepayments made and accrued interest due but not received.
Source: 1995-96 Budget Paper N« 2 State of Victoria Trial
CASH BASED FINANCIAL INFORMATION
These two tables show, in summary form, the actual receipts and payments of the Consolidated Fund for the year ended 30 June 1995. As indicated in the Table on page 32, a temporary advance of $833.6 million was received during the year and borrowings of $1,055.1 million were repaid. This resulted in a net repayment of borrowings of $221.6 million by the Consolidated Fund for the year.
TOTAL APPROPRIATIONS AND EXPENDITURE OF DEPARTMENTS Total Payments Under Parliamentary Parliamentary Authority Authority 1994-95 1994-95 $m $m
SPECIAL APPROPRIATIONS - Parliament 18.6 18.6 Agriculture, Energy and Minerals . : " 1.8 1.8 Arts, Sport and Tourism 67.8 67.8 Conservation and Natural Resources 6.7 6.7 Education 0.4 0.4 Health and Community Services 792.0 792.0 Justice 72.1 72.1 Planning and Development 0.7 0.7 Premier and Cabinet 4.6 4.6 Transport 273.4 273.4 Treasury and Finance 653.5 653.5 Total Special Appropriations 1 891.6 1 891.6
ANNUAL APPROPRIATIONS - Parliament 29.2 27.5 Agriculture, Energy and Minerals 152.4 132.0 Arts, Sport and Tourism 217.9 204.4 Business and Employment 244.0 222.4 Conservation and Natural Resources 288.5 279.3 Education 3 230.9 3 201.5 Health and Community Services 2 880.1 2 790.5 Justice 1 370.3 1 343.8 Planning and Development 246.7 240.5 Premier and Cabinet 53.7 49.7 Transport 955.4 940.9 Treasury and Finance 4 443.8 4 316.4 Advance to Treasurer 300.9 0 Total Annual Appropriations 14 413.8 13 748.9 TOTAL PAYMENTS 16 305.4 15 640.5
Source: 1994-95 Statement of Financial Operations
V State of Victoria Trial
CASH BASED FINANCIAL INFORMATION
SUMMARY OF CONSOLIDATED FUND TRANSACTIONS
1994-95 $m
Recurrent Receipts - State Taxation 7 547.2 Commonwealth Grants 4 867.5 Other Recurrent State Sources 2 297.9 14 712.6 Current Account Financing 0.0 14 712.6
Works and Services Receipts - Commonwealth Grants 507.4 Assets Sales 214.0 Other State Sources 722.9 Works and Services Account 77.6 1 521.8 TOTAL RECEIPTS 16 234.3
Recurrent Payments - Annual Appropriations (a) 12 966.9 Special Appropriations 1 821.1 14 788.0
Works and Services Payments - Annual Appropriations 2 209.4 Special Appropriations 70.5 2 279.9 TOTAL PAYMENTS 17 067.9
TOTAL CONSOLIDATED FUND (b) -833.5
Consolidated Fund Borrowing Requirement - Repayment of borrowings (c) 1 055.1 LESS New borrowings during the year as Temporary Advances pursuant to Section 39 of the Financial Management Act 1994 833.6
NET Consolidated Fund borrowing Requirements 221.6
(a) Includes the repayment of borrowings.
(b) /Is represented by the Temporary Advances Account balance held in the Trust Fund as at 30 June 1995. $m Gross Borrowings 1 037.0 Repayments during the year 164.0 873.0
(c) A temporary advance of $833.5 million was received during the year after an amount of SI 055.1 million was repaid from Annual Appropriations earlier in 1994-95, resulting in a net repayment of borrowings of $221.6 million on the Consolidated Fund for the year.
In addition to temporary borrowings, the balance of the Works and Services Account of $77.6 million was paid into the Consolidated Fund during the year, thus applying prior year borrowings towards the financing of the Consolidated Fund.
Source: 1994-95 Statement of Financial Operations State of Victoria Trial
ADDITIONAL FINANCIAL INFORMATION
TABLE 1 - TOTAL RECURRENT RECEIPTS
1994-95 Heads of Receipt $m
Taxation 7 547.2 Regulatory Fees and Fines 182.9 Recoveries of Debt 242.2 Charges and Reimbursements 853.2 Public Authorities 774.7 Rents, Royalties, Interest and Other Dividends 164.9 Miscellaneous Receipts 79.9 Commonwealth Payments 4 867.6
TOTAL RECURRENT RECEIPTS 14 712.6
TABLE 2 - TAXATION RECEIPTS - Detaü
1994-95 $m RECURRENT RECEIPTS
TAXATION
Pay-roll 2 080. 5 Property - Land 401.9 State Deficit Levy 179.7 Other Property 0.2 581.8
Financial and Capital Transactions - Land Transfers Stamp Duty 635.4 Marketable Securities Stamp Duty 194.6 Debits Tax 250.2 Financial Institutions Duty 307.2 Other Financial and Capital Transactions 130.4 1 517.8
Public Authority Contribution - Gas and Fuel Corporation of Victoria 309.4
Gambling - Totalizator 130.2 Tattersalls Duty 335.1 Electronic Gaming Machines 383.9 Casino 67.8 Other Gambling 23.2 940.2
Insurance 302.4
Motor Vehicles - Road Safety Act Fees 383.1 Motor Vehicle Transfers Stamp Duty 304.7 Motor Drivers Licence Fees 65.6 Other Motor Vehicles 8.1 761.5
Other Licences and Levies - Petroleum Franchise Fees 483.8 Liquor Licence Fees 146.6 Tobacco Franchise Fees 416.6 Energy Consumption Levy 6.6 1 053.6
Total Taxation 7 547.2
Source: 1994-95 Statement of Financial Operations State of Victoria Trial
ADDITIONAL FINANCIAL INFORMATION
TABLE 3 - REGULATORY FEES AND FINES - Detail
1994-95 $m REGULATORY FEES AND FINES Environment Protection Authority 8.8 Registration and Inspection Fees 4.8 Boating Fees 5.3 Miscellaneous Licences 9.2 Other Regulatory Fees 28.2 Fines 126.6
Total Regulatory Fees and Fines 182.9
TABLE 4 - RECOVERIES OF DEBT - Detail
1994-95 $m RECOVERIES OF DEBT Commonwealth - State Housing Agreement 19.1 Development Funds 1.1 Director of Housing 6.8 Home Builders Account 0.9 Rural Finance Corporation 4.4 Softwood Forestry Agreement 3.4 State Development Account 154.6 Tricontinental - Bad Debts Recovered 50.7 Water and Sewerage Authorities 0.2 All Other 0.9
Total Recoveries of Debt 242.1
Source: 1994-95 Statement of Financial Operations State of Victoria Trial
ADDITIONAL FINANCIAL INFORMATION
TABLE 5 - PUBLIC AUTHORITIES RECEIPTS - Detail
1994-95 $m PUBLIC AUTHORITIES Aluminium Smelters of Victoria Pty. Ltd. 23.7 Electricity Sector 286.5 Gas Sector 120.5 National Mortgage Market Corporation Limited 0.5 Port of Melbourne Authority 12.0 Rural Finance Corporation 4.3 Rural Water Corporation 1.0 State Insurance Office 10.0 Transport Accident Commission 178.0 Victorian Plantations Corporation 4.0 Water Sector 134.2
Total Public Authorities 774.7
TABLE 6 COMMONWEAL! H GOVERNMENT PAYMENTS TO VICTORIA - Detail
1994-95 $m COMMONWEALTH PAYMENTS General Recurrent - Debt Redemption Assistance 27.8 Financial Assistance Grant 794.6 Hospital Funding Grant 938.9 Special Revenue Assistance - Medicare Guarantee 215.4 Schools 232.6 Commonwealth Offshore Petroleum Compensation 1.1 Commonwealth Regional Development Program 0.8 Compensation for the Extension of Pensioner Benefits 32.4 Department of Veteran's Affairs - Ambulance Transport 1.8 Medicare Bonus Pool 17.0 Medicare Incentives 17.5 Melbourne Sexual Health Centre - Grant 2.5 Compensation for Transfer of Corporate Regulatory Function to the Commonwealth 35.6 Emergency Services 0.5
Total Commonwealth General Recurrent 4 318.5
COMMONWEALTH PAYMENTS Receipts Credited to Appropriations - Section 29, Financial Management Act 1994 Agriculture, Energy and Minerals - Eradication of Brucellosis and Tuberculosis 0.2 National Landcare Program - Soil Projects 1.4 National Landcare Program - Water Projects 0.3 Natural Resources Management Strategy - Intrastate 1.0 2.9 Arts, Sport and Tourism - Aboriginal and Torres Strait Islander Commission Young Persons Sport and Recreation Program 0.2 Junior Sports Development 0.6 National Volunteer Improvement Program 0.1 0.9 Business and Employment - New Enterprise Incentive Scheme 0.7 0.7
Source: 1994-95 Statement of Financial Operations State of Victoria Trial
ADDITIONAL FINANCIAL INFORMATION
TABLE 6 - COMMONWEALTH GOVERNMENT PAYMENTS TO VICTORIA Cont.
1994-95 $m
Conservation and Natural Resources - Contract Employment for Aboriginals 0.1 Endangered Species 0.6 Feral Pest Program 0.2 National Estate 0.7 National Forest Policy 0.4 National Landcare Program 2.0 Natural Resources Management Strategy 0.7 Vermin and Noxious Weeds 0.2 Water Watch Program 5.0
Education - Aboriginal Advancement 3.4 Disadvantaged Schools 14.7 English as a Second Language - New Arrivals 8.4 26.5
Health and Community Services - Aboriginal Pre-school Services 0.7 AIDS - Medicare 10.2 Alternative Birth Services 0.5 Area Health Management 0.6 Bendigo Pathology Service 3.6 Blood Transfusion Services 10.3 Bone Marrow Registry 0.2 Casemix Development Program 0.9 Cervical Cancer Screening 0.7 Child Care Services 0.7 Cytology and Gynaecological Services 3.1 Day Surgery 3.4 Dental Program 15.0 Disability Services 59.4 Drug Campaign Program 5.1 Funds to combat AIDS 5.1 High Cost Drugs Programl 6.6 Home and Community Care 110.5 Hospital Access 0.2 Hospital Infrastructure 1.5 Immunization Program 3.1 Innovative Health Services for Homeless Youth 0.6 Mammography Screening Project 8.2 Medicare Bonus Pool 29.9 Mental Health 7.2 National Equity Program For Schools 3.9 National Women's Health Program 1.8 Out of School Hours-Children's Services 5.0 Post Acute and Palliative Care 11.9 Supported Accommodation Assistance 26.0 Integration of Heidelberg Repatriation Hospital 55.5 Artificial Limbs Scheme 1.9 39373 State of Victoria Trial
ADDITIONAL FINANCIAL INFORMATION
TABLE 6 - COMMONWEALTH GOVERNMENT PAYMENTS TO VICTORIA Cont.
1994-95 $m
Transport - Identified Road Funds 103.2 Interstate Road Transport 6.3 109.5
Total Receipts Credited to Appropriations 538.5
Total Commonwealth Payments 4 857.3
WORKS AND SERVICES RECEIPTS COMMONWEALTH PAYMENTS General Works and Services - Education - School Buildings 48.3 Commonwealth Regional Development Program 1.7
Total Commonwealth General Works and Services 50.0
Receipts Credited to Appropriations - Section 29, Financial Management Act 1994 - Agriculture, Energy and Minerals - National Landcare Program 0.6 Natural Resources Management Strategy (M 1.0 Conservation and Natural Resources - National Landcare Program 8.5 Natural Resources Management Strategy 0-9 9.4 Health and Community Services - Australian Red Cross Society Building 0.6 Home and Community Care 0.9 Hospital Infrastructure 6.0 Nuclear Magnetic Resonance Imaging Equipment 3.9 Integration of Heidelberg Repatriation Hospital 2.0 Aboriginal Pre-School Services 0-6 14.0 Planning and Development - Better Cities Program 4.0 Housing 253.5 293.5 Transport - Roads 137.0 Transport Infrastructure 2.5 139.5
Total Receipts Credited to Appropriations 457.4 Total Commonwealth Payments 507.4
Source: 1994-95 Statement of Financial Operations State of Victoria Trial State of Victoria Trial
DATE DUE
WQSCQ State of Victoria Trial
TRIAL CONSOLIDATED FINANCIAL REPORT OF THE GOVERNMENT OF VICTORIA
YEAR ENDED 30 JUNE 1995
ACCRUAL BASIS OF ACCOUNTING
As disclosed in Note 1 Statement of Significant Accounting Policies, the Trial Consolidated Financial Report has been prepared using the accrual basis of accounting.
Traditionally financial information disclosed by governments has been prepared using the cash basis of accounting. For completeness and comparison, financial statements prepared on this traditional basis are included in the Trial Consolidated Financial Report. These statements are described as Cash Based Financial Information.
Differences arise between the amounts recorded for transactions in the Operating Statement and the Cash Based Financial Information. These differences arise because with the accrual basis of accounting, transactions are recorded in the period to which they relate, as well as transactions between government controlled entities being eliminated.
By way of example, State Taxation included in the Operating Statement amounts to $7.292 billion whereas State Taxation disclosed under Recurrent Receipts in the Cash Based Financial Information amounts to $7.547.2 billion.
COMPARISONS OF THE STATE'S FINANCIAL POSITION WITH PREVIOUS STUDIES
Set out in the following table is a comparison of the various Statements of Financial Position previously published. In 1989 and 1990, the Independent Review of Victoria's Public Sector Finances, did not produce an Operating Statement or Statement of Cash Flows and thus no similar comparisons can be made.
In addition, in 1989 and 1990, broad based valuation estimates were made of all non-current assets that were not valued by an accredited valuer. For example, Crown land, natural resources, schools, heritage assets, etc. These asset values are not included in the 1992 and 1995 balance sheets as the professional valuation process is not yet complete. Therefore, it follows that year to year comparisons of the Financial Position are not entirely practical.
The non-current assets mentioned above are in the process of being valued over the next two years and will be included in the Consolidated Financial Statements by 30 June 1997. COMPARISONS OF THE VARIOUS STUDIES ON THE STATE'S FINANCIAL POSITION
ASSETS (a)19§9 Ca)l99f «1992 (c)1995 $ million $ million $ million $ million
Cash 266 303 401 1,818 Receivables, loans and advances 2,412 2,534 5,492 6,453 Inventories 408 451 411 599 Investments 2,710 3,250 8,484 9,565 Property, plant, equipment and infrastructure 84,510 87,040 48,029 44,420 Other 261 165 1,633 1,413 Total Assets 90,567 93,743 64,450 64,268 Assets to be valued over the next two years (estimate) 10,000 Revised Total Assets 74,268
LIABILITIES
Payables and provisions 1,865 2,224 2,145 5,298 Borrowings 24,801 27,330 39,227 37,756 Employee entitlements 17,088 17,680 20,390 17,221 Other 7,356 6,568 8,060 7,856 Total Liabilities 51,110 53,802 69,822 68,131
Sources: (a) Independent Review Of Victoria's Public Sector Finances, September 1992 (b) Report of the Victorian Commission of Audit, May 1993 (c) Unaudited Trial Consolidated Financial Report 1994-95
COMMENTS
In comparing the 1994-95 trial Consolidated Financial Report with the other studies, the following comments are made: • The aforementioned broad based estimates which were made for Crown land, infrastructure assets, heritage assets and other non-current assets were around $15 billion. • In 1989, 1990 and 1992 Departments were not as advanced in establishing their accounting infrastructure to fully implement accrual accounting, therefore receivables, payables and advances were not accurately recorded. • The Victorian Commission of Audit, in 1992 included Universities in its consolidation at a value approximating $4 billion. The 1994-95 Trial Consolidated Financial Report does not include Universities. • Several asset sales have taken place between 1992 and 1995, including schools, TAR and the SIO. • Employee entitlements have reduced since 1992 following the restructure of the unfunded superannuation liability in 1993-94. • Borrowings have remained fairly stable, reflecting the Government's policy of not undertaking any new borrowings. • Between August and October 1995, the Government sold United Energy Ltd, Solaris Power, Eastern Energy Ltd, Powercor Australia, CitiPower Ltd and Yallourn Energy for $10.7 billion. Those sales will flow through the 1995-96 Consolidated Financial Statements, due to be completed later this year.
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