PBS 2013-14 High Court

HIGH COURT OF AUSTRALIA

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

The High Court of Australia is the highest court in the Australian judicial system. It was established in 1901 by section 71 of the Constitution.

The Constitution confers both an appellate and an original jurisdiction upon the High Court. Appeals from the supreme courts of the states and territories, from the Federal Court of Australia and from the Family Court of Australia are heard pursuant to special leave granted. The High Court is also the final arbiter upon constitutional questions. These may come on appeal from a lower court or be initiated by an application to the High Court itself.

75 High Court of Australia

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources.

Table 1.1: Agency resource statement—Budget estimates for 2013–14 as at Budget May 2013 Estimate of prior year Actual amounts + Proposed = Total available available in at Budget estimate appropriation 2013–14 2013–14 2013–14 2012–13 Source $’000 $’000 $’000 $’000 Opening balance/reserves at bank 10,246 – 10,246 11,845 REVENUE FROM GOVERNMENT Ordinary annual services¹ Outcome 1: To interpret and uphold the Australian Constitution and perform the functions of the ultimate appellate Court in Australia2 – 16,749 16,749 15,821 Total ordinary annual services – 16,749 16,749 15,821 Other services3 Non-operating – 1,450 1,450 1,450 Total other services – 1,450 1,450 1,450 Total annual appropriations – 18,199 18,199 17,271 Total funds from government 18,199 18,199 17,271 FUNDS FROM OTHER SOURCES Interest – 410 410 510 Sale of goods and services – 165 165 165 Other – 55 55 55 Total – 630 630 730 Total net resourcing for agency 10,246 18,829 29,075 29,846 All figures are GST exclusive. The High Court is neither a prescribed agency under the Financial Management and Accountability Act 1997 nor a statutory authority under the Commonwealth Authorities and Companies Act 1997. Consequently, tables for the High Court may differ from the standard tables for FMA Act or CAC Act bodies. 1. Appropriation Bill (No. 1) 2013–14. 2. Includes an amount of $3.353m in 2013–14 for the departmental capital budget (see Table 3.2.5 for further details). For accounting purposes this amount has been designated as ‘contributions by owners’. 3. Appropriation Bill (No. 2) 2013–14.

1.3 BUDGET MEASURES

Budget measures announced since the 2012–13 Mid-Year Economic and Fiscal Outlook (MYEFO) relating to the High Court are detailed in Budget Paper No. 2 and are summarised in Part 1 of Table 1.2. MYEFO measures not previously reported in a portfolio statement are summarised in Part 2.

Table 1.2: Agency 2013–14 Budget measures Part 1: Measures announced since the 2012–13 MYEFO 2012–13 2013–14 2014–15 2015–16 2016–17 Program $’000 $’000 $’000 $’000 $’000 Expense measures Attorney-General’s Portfolio savings—redirection 1.1 Departmental expenses – (22) (22) (22) (23) Total expense measures – (22) (22) (22) (23) Prepared on a Government Finance Statistics (fiscal) basis.

Part 2: MYEFO measures not previously reported in a portfolio statement 2012–13 2013–14 2014–15 2015–16 2016–17 Program $’000 $’000 $’000 $’000 $’000 Expense measures Targeted savings—public service efficiencies 1.1 Departmental expenses – (33) (14) (6) – Fire Services Levy—reduction Departmental expenses 1.1 (94) (98) (103) (103) – Total expense measures (94) (131) (117) (109) – Prepared on a Government Finance Statistics (fiscal) basis.

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs that contribute to government outcomes over the budget and forward years.

The High Court’s outcome is described below together with its related program. The outcome does not include judicial salaries and allowances. These are administered by the Attorney-General’s Department through a drawing right on a special appropriation held by the Australian Public Service Commission.

Outcome 1: To interpret and uphold the Australian Constitution and perform the functions of the ultimate appellate Court of Australia

Outcome 1 expense statement Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted expenses for Outcome 1 2012–13 Estimated 2013–14 actual Estimated Outcome 1: To interpret and uphold the Australian Constitution and expenses expenses perform the functions of the ultimate appellate Court in Australia $’000 $’000 Program 1.1: High Court Business Revenue from government Ordinary annual services (Appropriation Bill No. 1) 13,401 13,396 Revenues from other independent sources 730 630 Expenses not requiring appropriation in the budget year1 6,252 6,320 Total expenses for Outcome 1 20,383 20,346

2012–13 2013–14 Average staffing level (number) 81 82 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. 1. Expenses not requiring appropriation in the budget year are made up of $4.517m in depreciation and amortisation expenses and $1.803m in goods and services received free of charge.

Contributions to Outcome 1

Program 1.1: High Court Business

Program 1.1 objective The program objective is to interpret and uphold the Australian Constitution and perform the functions of the ultimate appellate court in Australia.

Program 1.1 expenses The expenses attributable to the High Court’s program are estimated to remain relatively constant over the forward years.

2012–13 2014–15 2015–16 2016–17 Revised 2013–14 Forward Forward Forward budget Budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses Departmental item 14,131 14,026 14,112 14,261 14,513 Expenses not requiring appropriation in the budget year1 6,252 6,320 6,422 6,471 6,280 Total program expenses 20,383 20,346 20,534 20,732 20,793 1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses and goods and services received free of charge.

Program 1.1 deliverables The High Court decides cases arising in its original and appellate jurisdictions.

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2013–14 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years The High Court has not moved any administered funds between years.

3.1.2 Special accounts The High Court has no special accounts.

3.1.3 Australian Government Indigenous expenditure The High Court has no Indigenous-specific expenses.

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements There is no material difference between the agency resourcing and financial statements.

3.2.2 Analysis of budgeted financial statements Comprehensive income statement The budgeted net cost of services for 2013–14 is $17.913m, an increase of $0.045m from the estimate for 2012–13.

Total budgeted operating expenses for 2013–14 are $20.346m, which is broadly consistent with the estimated total operating expenditure for 2012–13.

Own-source income for 2013–14 is expected to be $2.433m, a decrease of $0.082m from the estimate for 2012–13. The decrease reflects a decline in interest revenue due to a reduction in the High Court’s cash holdings from the finalisation of major capital works in the High Court precinct.

Revenue from government for 2013–14 is budgeted at $13.396m, a decrease of $0.005m from the 2012–13 estimated actual. The decrease is a result of the impact of the savings measures. Marginal increases across the forward estimates are the net result of adjustments in indexation and the efficiency dividend. Revenue in 2016–17 has not been affected by the Fire Services Levy adjustment.

Budgeted departmental balance sheet The value of the High Court’s net assets will increase by $0.286m to $225.031m in 2013–14. The increase is the net result of the equity injection of $4.803m for capital purchases and the 2013–14 operating deficit of $4.517m.

3.2.3 Budgeted financial statements tables Departmental Table 3.2.1: Comprehensive income statement (showing net cost of services) for the period ended 30 June Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 8,524 8,653 8,743 8,833 8,898 Supplier expenses 7,392 7,176 7,189 7,280 7,445 Depreciation and amortisation 4,467 4,517 4,602 4,619 4,450 Total expenses 20,383 20,346 20,534 20,732 20,793 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 165 165 165 170 175 Interest 510 410 360 360 350 Other 55 55 60 60 60 Total own-source revenue 730 630 585 590 585 Gains Resources received free of charge 1,785 1,803 1,820 1,852 1,830 Total gains 1,785 1,803 1,820 1,852 1,830 Total own-source income 2,515 2,433 2,405 2,442 2,415 Net cost of (contribution by) services 17,868 17,913 18,129 18,290 18,378 Revenue from government 13,401 13,396 13,527 13,671 13,928 Surplus (deficit) attributable to the Australian Government (4,467) (4,517) (4,602) (4,619) (4,450) OTHER COMPREHENSIVE INCOME Changes in asset revaluation surplus – – – – – Total other comprehensive income – – – – – Total comprehensive income (loss) (4,467) (4,517) (4,602) (4,619) (4,450) Total comprehensive income (loss) attributable to the Australian Government (4,467) (4,517) (4,602) (4,619) (4,450)

Note: Impact of net cash appropriation arrangements 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) excluding depreciation/amortisation expenses previously funded through revenue appropriations – – – – – Less depreciation/amortisation expenses previously funded through revenue appropriations 4,467 4,517 4,602 4,619 4,450 Total comprehensive income (loss) as per the statement of comprehensive income (4,467) (4,517) (4,602) (4,619) (4,450) Prepared on Australian Accounting Standards basis.

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 3,106 3,129 3,129 3,129 3,129 Trade and other receivables 179 178 178 178 178 Other investments 7,140 3,355 2,132 1,779 1,975 Total financial assets 10,425 6,662 5,439 5,086 5,282 Non-financial assets Land and buildings 195,786 197,557 196,575 195,551 194,158 Property, plant and equipment 17,563 19,330 20,812 21,462 22,152 Intangibles 252 652 802 952 1,102 Heritage and cultural assets 3,625 3,725 3,725 3,725 3,725 Other non-financial assets 70 80 90 100 100 Total non-financial assets 217,296 221,344 222,004 221,790 221,237 Total assets 227,721 228,006 227,443 226,876 226,519 LIABILITIES Payables Suppliers 139 128 128 128 128 Other payables 299 299 299 299 299 Total payables 438 427 427 427 427 Provisions Employee provisions 2,538 2,548 2,558 2,568 2,568 Total provisions 2,538 2,548 2,558 2,568 2,568 Total liabilities 2,976 2,975 2,985 2,995 2,995 Net assets 224,745 225,031 224,458 223,881 223,524 EQUITY Parent entity interest Contributed equity 74,752 79,555 83,584 87,626 91,719 Reserves 168,252 168,252 168,252 168,252 168,252 Retained surplus (accumulated deficit) (18,259) (22,776) (27,378) (31,997) (36,447) Total parent entity interest 224,745 225,031 224,458 223,881 223,524 Total equity 224,745 225,031 224,458 223,881 223,524 Prepared on Australian Accounting Standards basis.

Table 3.2.3: Departmental statement of changes in equity—summary of movement (budget year 2013–14) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2013 Balance carried forward from previous period (18,259) 168,252 74,752 224,745 Adjustment for changes in accounting policies – – – – Adjusted opening balance (18,259) 168,252 74,752 224,745 Comprehensive income Surplus (deficit) for the period (4,517) – – (4,517) Total comprehensive income (22,776) 168,252 74,752 220,228 Of which: Attributable to the Australian Government (22,776) 168,252 74,752 220,228 Transactions with owners Contributions by owners Equity injection – – 1,450 1,450 Departmental capital budget – – 3,353 3,353 Sub-total transactions with owners – – 4,803 4,803 Estimated closing balance as at 30 June 2014 (22,776) 168,252 79,555 225,031 Closing balance attributable to the Australian Government (22,776) 168,252 79,555 225,031 Prepared on Australian Accounting Standards basis.

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Appropriations 13,401 13,396 13,527 13,671 13,928 Sale of goods and rendering of services 165 165 165 170 175 Interest 510 410 360 360 350 Net GST received 770 770 770 800 800 Other 55 55 60 60 60 Total cash received 14,901 14,796 14,882 15,061 15,313 Cash used Employees 8,644 8,773 8,863 8,953 9,018 Suppliers 5,486 5,263 5,249 5,308 5,495 Net GST paid 770 770 770 800 800 Total cash used 14,900 14,806 14,882 15,061 15,313 Net cash from (used by) operating activities 1 (10) – – – INVESTING ACTIVITIES Cash received Investments 1,950 3,785 1,223 353 – Total cash received 1,950 3,785 1,223 353 – Cash used Purchase of property, plant and equipment 5,470 8,555 5,252 4,395 3,897 Investments – – – – 196 Total cash used 5,470 8,555 5,252 4,395 4,093 Net cash from (used by) investing activities (3,520) (4,770) (4,029) (4,042) (4,093) FINANCING ACTIVITIES Cash received Contributed equity 3,870 4,803 4,029 4,042 4,093 Total cash received 3,870 4,803 4,029 4,042 4,093 Net cash from (used by) financing activities 3,870 4,803 4,029 4,042 4,093 Net increase (decrease) in cash held 351 23 – – – Cash and cash equivalents at the beginning of the reporting period 2,755 3,106 3,129 3,129 3,129 Cash and cash equivalents at the end of the reporting period 3,106 3,129 3,129 3,129 3,129 Prepared on Australian Accounting Standards basis.

Table 3.2.5: Departmental capital budget statement Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 NEW CAPITAL APPROPRIATIONS Capital budgets—Bill 1 (DCB) 2,420 3,353 2,579 2,592 2,643 Equity injections—Bill 2 1,450 1,450 1,450 1,450 1,450 Total new capital appropriations 3,870 4,803 4,029 4,042 4,093 Provided for: Purchase of non-financial assets 3,870 4,803 4,029 4,042 4,093 Total items 3,870 4,803 4,029 4,042 4,093 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 1,950 3,346 1,450 1,450 1,450 Funded by capital appropriation—DCB2 3,520 5,209 3,802 2,945 2,447 Total 5,470 8,555 5,252 4,395 3,897 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 5,470 8,555 5,252 4,395 3,897 Total cash used to acquire assets 5,470 8,555 5,252 4,395 3,897 Prepared on Australian Accounting Standards basis. DCB = departmental capital budget. 1. Includes both current Bill 2 and prior year Act 2, 4 and 6 appropriations and special capital appropriations. 2. Does not include annual finance lease costs. Includes purchases from current and previous years’ departmental capital budgets.

Table 3.2.6: Statement of asset movements (2013–14) Other property, Computer plant & Heritage software & Land Buildings equipment & cultural intangibles Total $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2013 Gross book value 8,925 190,344 19,226 3,625 972 223,092 Accumulated depreciation/ amortisation and impairment – (3,483) (1,663) – (720) (5,866) Opening net book balance 8,925 186,861 17,563 3,625 252 217,226 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity1 – 1,896 1,450 – – 3,346 By purchase—appropriation ordinary annual services2 – 3,294 1,315 100 500 5,209 Total additions – 5,190 2,765 100 500 8,555 Other movements Depreciation/amortisation expense – (3,419) (998) – (100) (4,517) Total other movements – (3,419) (998) – (100) (4,517) As at 30 June 2014 Gross book value 8,925 195,534 21,991 3,725 1,472 231,647 Accumulated depreciation/ (10,383 amortisation and impairment – (6,902) (2,661) – (820) ) Closing net book balance 8,925 188,632 19,330 3,725 652 221,264 Prepared on Australian Accounting Standards basis. 1. ‘Appropriation equity’ refers to equity injections or administered assets and liabilities appropriations provided through Appropriation Bill (No. 2) 2013–14. 2. ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bill (No. 1) 2013–14 for depreciation and amortisation expenses, departmental capital budgets or other operational expenses.

Administered Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Total expenses administered on behalf of government – – – – – LESS: OWN-SOURCE INCOME Own-source revenue Non-taxation revenue Sale of goods and rendering of services 1,584 1,802 1,829 1,834 1,840 Total non-taxation revenue 1,584 1,802 1,829 1,834 1,840 Total own-source revenue administered on behalf of government 1,584 1,802 1,829 1,834 1,840 Total own-source income administered on behalf of government 1,584 1,802 1,829 1,834 1,840 Net cost of (contribution by) services (1,584) (1,802) (1,829) (1,834) (1,840) Surplus (deficit) 1,584 1,802 1,829 1,834 1,840 Total comprehensive income (loss) 1,584 1,802 1,829 1,834 1,840 Prepared on Australian Accounting Standards basis.

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of government (as at 30 June) The High Court has no assets or liabilities administered on behalf of government.

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate estimate 2012–13 2013–14 2014–15 2015–16 2016–17 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 1,584 1,802 1,829 1,834 1,840 Total cash received 1,584 1,802 1,829 1,834 1,840 Net cash from (used by) operating activities 1,584 1,802 1,829 1,834 1,840 Net increase (decrease) in cash held 1,584 1,802 1,829 1,834 1,840 Cash and cash equivalents at the beginning of the reporting period – – – – – Cash to Official Public Account for: Other (1,584) (1,802) (1,829) (1,834) (1,840) Cash and cash equivalents at the end of the reporting period – – – – – Prepared on Australian Accounting Standards basis.

3.2.4 Notes to the financial statements Basis of accounting The budgeted financial statements have been prepared on an accrual basis, having regard to Statements of Accounting Concepts, and in accordance with the Finance Minister’s Orders, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board.

Revenue from government Appropriations for ordinary annual services are recognised as revenue. Appropriations for the departmental capital budget are recognised as equity injections.

Gains—resources free of charge Resources free of charge are recognised as gains when the service would have been purchased if it had not been donated. Use of those resources is recognised as an expense.

Sale of goods and services Sales of goods and services consist of subscriptions to High Court judgments and transcripts, room hire to legal practitioners and other minor revenue.

Employee expenses Employee expenses consist of salaries, allowances, superannuation and leave entitlements.

Supplier expenses Supplier expenses consist of travel expenses, communications, consultant and contractor costs, and other administrative costs.

Cash Cash includes cash on hand, funds on deposit and highly liquid investments that are readily convertible to known amounts of cash.

Assets and liabilities Assets include land and buildings, interest receivable on cash reserves, sundry debtors and prepaid expenses. Liabilities include creditors and payables, unearned income and employee provisions.

Administered revenue Administered revenue comprises fees and charges collected in accordance with Schedule 1 of the High Court of Australia (Fees) Regulations 2004. The fees and charges collected are transferred to consolidated revenue.