ATTORNEY-GENERAL’S DEPARTMENT

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION

The strategic direction statement for the Attorney-General’s Department can be found in the 2011–12 Portfolio Budget Statements. There are no changes to the Department’s strategic direction as a result of Additional Estimates.

1.2 AGENCY RESOURCE STATEMENT

The agency resource statement details the resourcing for the Department at Additional Estimates. Table 1.1 outlines the total resourcing available from all sources for the 2011–12 budget year, including variations through Appropriation Bills No. 3 and No. 4, special appropriations and special accounts.

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Table 1.1: Agency resource statement—additional estimates for 2011–12 as at A dditional Estimates, February 2012 Total Estimate Proposed estimate at Total as at Additional Additional available Budget + Estimates = Estimates appropriation 2011–12 2011–12 2011–12 2010–11 $’000 $’000 $’000 $’000 ORDINARY ANNUAL SERVICES1 Departmental appropriation Prior year departmental appropriation2 94,940 – 94,940 100,255 Departmental appropriation3 222,127 7,620 229,747 235,855 s 31 relevant agency receipts4 22,192 11,874 34,066 28,150 Total 339,259 19,494 358,753 364,260 Administered expenses Outcome 15 420,838 8,845 429,683 578,813 Outcome 2 – – – 18,005 Payments to CAC Act bodies – – – 10,127 Total 420,838 8,845 429,683 606,945 Total ordinary annual services A 760,097 28,339 788,436 971,205 OTHER SERVICES6 Administered expenses Specific payments to states, ACT, NT and local government Outcome 1 5,709 – 5,709 7,608 Total 5,709 – 5,709 7,608 Departmental non-operating Prior year departmental2 3,006 – 3,006 21,771 Equity injections 6,253 1,804 8,057 8,773 Total 9,259 1,804 11,063 30,544 Administered non-operating Prior year administered2 70,611 – 70,611 79,472 Administered assets and liabilities 66,869 (40,956) 25,913 29,576 Total 137,480 (40,956) 96,524 109,048 Total other services B 152,448 (39,152) 113,296 147,200 Total available annual appropriations 912,545 (10,813) 901,732 1,118,405 SPECIAL APPROPRIATIONS Special appropriations limited by criteria/entitlement Law Officers Act 1964 450 – 450 – National Firearms Program Implementation Act 1996 75 – 75 55 Social Security (Administration) Act 1999 55,500 – 55,500 829,123 Financial Management and Accountability Act 1997 – – – 2 Total special appropriations C 56,025 – 56,025 829,180 Total appropriations excluding special accounts 968,570 (10,813) 957,757 1,947,585

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Table 1.1: Agency resource statement—additional estimates for 2011–12 as at A dditional Estimates, February 2012 (continued) Total Estimate Proposed estimate at Total as at Additional Additional available Budget + Estimates = Estimates appropriation 2011–12 2011–12 2011–12 2010–11 $’000 $’000 $’000 $’000 SPECIAL ACCOUNTS Opening balance7 17,706 – 17,706 20,389 Non-appropriation receipts to special accounts 568 8,722 9,290 87,632 Total special accounts D 18,274 8,722 26,996 108,021 Total resourcing (A+B+C+D) 986,844 (2,091) 984,753 2,055,606 Less appropriations drawn from annual or special appropriations above and credited to special accounts and/or CAC Act bodies through annual appropriations – – – (10,127) Total net resourcing for agency 986,844 (2,091) 984,753 2,045,479 All figures are GST exclusive. CAC Act = Commonwealth Authorities and Companies Act 1997. 1. Appropriation Bills (No. 1 & No. 3) 2011–12. 2. Estimated adjusted balance carried forward from previous year for annual appropriations. 3. Includes an amount of $22.419m in 2011–12 for the departmental capital budget (see Table 3.2.5 for furth er details). For accounting purposes this amount has been designated as ‘contributions by owners’. 4. Section 31 relevant agency receipts—estimate. 5. Includes an amount of $0.891m in 2011–12 for the administered capital budget (see Table 3.2.10 for furth er details). For accounting purposes this amount has been designated as ‘contributions by owners’. 6. Appropriation Bills (No. 2 & No. 4) 2011–12. 7. Estimated opening balance for special accounts (less ‘Special Public Money’ held in accounts such as Oth er Trust Moneys accounts or Services for Other Governments and Non-Agency Bodies accounts). For furthe r information on special accounts see Table 3.1.1.

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1.3 AGENCY MEASURES TABLE

Table 1.2 summarises new government measures taken since the 2011–12 Budget. The table is split into expense and capital measures, with the affected program identified.

Table 1.2: Agency 2011–12 measures since Budget 2011–12 2012–13 2013–14 2014–15 Program $’000 $’000 $’000 $’000 Expense measures Personal Property Securities Register— additional funding 1.1 Administered expenses – – – – Departmental expenses 1,402 – – – Total 1,402 – – – Safer Suburbs 1.2, 1.6 Administered expenses – 1,500 2,000 1,000 Departmental expenses 96 205 99 100 Total 96 1,705 2,099 1,100 Reducing the cost of government administration—one-off efficiency dividend 1.1, 1.2 Administered expenses – – – – Departmental expenses – (5,126) (5,232) (5,128) Total – (5,126) (5,232) (5,128) Total expense measures Administered expenses – 1,500 2,000 1,000 Departmental expenses 1,498 (4,921) (5,133) (5,028) Total 1,498 (3,421) (3,133) (4,028) Capital measures Personal Property Securities Register— additional funding 1.1 Administered capital – – – – Departmental capital 1,804 – – – Total 1,804 – – – Departmental capital budgets—savings 1.1, 1.2 Administered capital – – – – Departmental capital – (1,828) (1,973) (3,862) Total – (1,828) (1,973) (3,862) Total capital measures Administered capital – – – – Departmental capital 1,804 (1,828) (1,973) (3,862) Total 1,804 (1,828) (1,973) (3,862) Prepared on a Government Finance Statistics (fiscal) basis.

1.4 ADDITIONAL ESTIMATES AND VARIATIONS

The following tables detail the changes to the resourcing for the Department at Additional Estimates, by outcome. Table 1.3 details the additional estimates and

14 Attorney-General’s Department variations resulting from new measures since the 2011–12 Budget. Table 1.4 details additional estimates or variations through other factors, such parameter adjustments.

Table 1.3: Additional estimates and variations to outcomes from measures since 2011–12 Budget Program 2011–12 2012–13 2013–14 2014–15 impacted $’000 $’000 $’000 $’000 OUTCOME 1 Increase in estimates (administered) Safer Suburbs program expansion 1.6 – 1,500 2,000 1,000 Net impact on estimates for Outcome 1 (administered) – 1,500 2,000 1,000 Increase in estimates (departmental) Personal Property Securities Register— additional funding 1.1 1,402 – – – Personal Property Securities Register— additional funding (capital) 1.1 1,804 – – – Safer Suburbs program expansion 1.2 96 205 99 100 Reducing the cost of government administration—one-off efficiency dividend 1.1, 1.2 – (5,126) (5,232) (5,128) Departmental capital budgets—savings 1.1, 1.2 – (1,828) (1,973) (3,862) Net impact on estimates for Outcome 1 (departmental) 3,302 (6,749) (7,106) (8,890)

Table 1.4: Additional estimates and variations to outcomes from other variations Program 2011–12 2012–13 2013–14 2014–15 impacted $’000 $’000 $’000 $’000 OUTCOME 1 Increase in estimates (administered) Family Court of Western Australia— Remuneration Tribunal increase 1.3 90 84 83 82 Transfer of funding to Treasury for payment to the Northern Territory Government for remote policing 1.5 (1,720) – – – Movement of funds—payments for the provision of legal aid—Legal Aid Commissions 1.3 10,475 – – – Natural disaster relief and recovery payments—loans (40,956) 128,858 – – Changes in wage and price indices All – 428 442 108 Net impact on estimates for Outcome 1 (administered) (32,111) 129,370 525 190 Increase in estimates (departmental) Transfer of privacy and freedom of information responsibilities from the Department of the Prime Minister and Cabinet 1.1 777 1,175 1,183 1,194 Transfer of funding from Geoscience Australia for critical infrastructure protection modelling and analysis 1.2 200 200 200 200 Changes in wage and price indices All – 207 212 – Decrease in estimates (departmental) Transfer of cyber policy responsibilities to the Department of the Prime Minister and Cabinet 1.2 (555) (1,307) (1,316) (1,328)

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Net impact on estimates for Outcome 1 (departmental) 422 275 279 66

1.5 BREAKDOWN OF ADDITIONAL ESTIMATES BY APPROPRIATION BILL

The following tables detail the additional estimates sought for the Department through Appropriation Bills No. 3 and No. 4.

Table 1.5: Appropriation Bill (No. 3) 2011–12 2010–11 2011–12 2011–12 Additional Reduced Estimate Available1 Budget Revised Estimates s $’000 $’000 $’000 $’000 $’000 ADMINISTERED ITEMS Outcome 1 A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national security and emergency management system 578,813 420,838 429,683 10,565 (1,720) Total administered 578,813 420,838 429,683 10,565 (1,720) DEPARTMENTAL PROGRAMS Outcome 1 A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national security and emergency management system 235,855 222,127 229,525 7,398 – Total departmental 235,855 222,127 229,525 7,398 – Total administered and departmental 814,668 642,965 659,208 17,963 (1,720) 1. 2010–11 available appropriation is included to allow a comparison of this year’s appropriation with what w as made available for use in the previous year.

Table 1.6: Appropriation Bill (No. 4) 2011–12 2010–11 2011–12 2011–12 Additional Reduced Available1 Budget Revised Estimates Estimates $’000 $’000 $’000 $’000 $’000 Non-operating Equity injections 8,773 6,253 8,057 1,804 – Administered assets and liabilities 29,576 66,869 66,869 – (40,956) Total non-operating 38,349 73,122 74,926 1,804 (40,956) 1. 2010–11 available appropriation is included to allow a comparison of this year’s appropriation with what w as made available for use in the previous year.

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Section 2: Revisions to agency resources and planned pe rformance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

The Department’s outcome information as reported in the 2010–11 Portfolio Budget Statements has been amended to reflect the Administrative Arrangements Orders of 19 October 2011 (privacy and freedom of information coming into the Department) and 14 December 2011 (cyber security policy leaving the Department).

OUTCOME 1

Outcome 1 strategy There is one change to the strategy for Outcome 1 as reported in the 2011–12 Portfolio Budget Statements as a result of the Administrative Arrangements Orders since budget. The second dot point under program 1.2 now excludes cyber security.

Table 2.1.1: Budgeted expenses and resources for Outcome 1 2011–12 2010–11 Revised Actual estimated Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national expenses expenses security and emergency management system $’000 $’000 Program 1.1: Attorney-General’s Department Operating Expenses— Civil Justice and Legal Services Departmental expenses Departmental appropriation1 105,102 100,497 Expenses not requiring appropriation in the budget year2 7,958 9,860 Total for Program 1.1 113,060 110,357 Program 1.2: Attorney-General’s Department Operating Expenses— National Security and Criminal Justice Departmental expenses Departmental appropriation1 130,471 140,898 Expenses not requiring appropriation in the budget year3 19,288 11,221 Total for Program 1.2 149,759 152,119 Program 1.3: Justice Services Administered expenses Ordinary annual services (Appropriation Bill No. 1) 85,133 90,086 Special appropriations – 450 Expenses not requiring appropriation in the budget year 15 – Total for Program 1.3 85,148 90,536 Program 1.4: Family Relationships Administered expenses Ordinary annual services (Appropriation Bill No. 1) 161,166 164,747 Expenses not requiring appropriation in the budget year 22 –

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2011–12 2010–11 Revised Actual estimated Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national expenses expenses security and emergency management system $’000 $’000 Total for Program 1.4 161,188 164,747 Table 2.1.1: Budgeted expenses and resources for Outcome 1 (continued) 2011–12 2010–11 Revised Actual estimated Outcome 1: A just and secure society through the maintenance and improvement of Australia’s law and justice framework and its national expenses expenses security and emergency management system $’000 $’000 Program 1.5: Indigenous Law and Justice Administered expenses Ordinary annual services (Appropriation Bill No. 1) 126,096 127,000 Total for Program 1.5 126,096 127,000 Program 1.6: National Security and Criminal Justice Administered expenses Ordinary annual services (Appropriation Bill No. 1) 65,485 46,959 Other services (Appropriation Bill No. 2) 6,781 5,709 Special appropriations 14 75 Special accounts 10,631 15,584 Expenses not requiring appropriation in the budget year4 10,136 5,991 Total for Program 1.6 93,047 74,318 Program 1.7: Australian Government Disaster Financial Support Payments Administered expenses Ordinary annual services (Appropriation Bill No. 1) 79,867 – Special appropriations 829,123 55,500 Special accounts 75,002 – Total for Program 1.7 983,992 55,500 Outcome 1 totals by appropriation type Administered expenses Ordinary annual services (Appropriation Bill No. 1) 517,746 428,792 Other services (Appropriation Bill No. 2) 6,781 5,709 Special appropriations 829,137 56,025 Special accounts 85,633 15,584 Expenses not requiring appropriation in the budget year 10,173 5,991 Departmental expenses Departmental appropriation 235,573 241,395 Expenses not requiring appropriation in the budget year 27,246 21,081 Total expenses for Outcome 1 1,712,289 774,577

2010–11 2011–12 Average staffing level (number) 1,420 1,430 Note: Departmental appropriation splits and totals are indicative estimates and may change in the course of the budget year as government priorities change. 1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bills No. 1 & No. 3)’ and ‘Revenue from independent sources (s 31)’. 2. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.150m and depreciation and amortisation expenses of $9.710m. 3. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.198m and depreciation and amortisation expenses of $11.023m.

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4. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses.

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Program 1.1 objective Add the following dot point under program 1.1 objective (between the third and fourth): • Government legislation and policy that supports the protection of individuals’ priv acy and access to government information.

Program 1.1 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses 105,102 100,497 94,414 98,301 98,335 Expenses not requiring appropriation in the budget year1 7,958 9,860 9,194 9,132 9,020 Total program expenses 113,060 110,357 103,608 107,433 107,355 1. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.150m and depreciation and amortisation expenses of $9.710m.

Program 1.1 deliverables The first and third dot points under program 1.1 deliverables have been amended to reflect the transfer of privacy and freedom of information responsibilities to the Department: • Accurate, relevant, comprehensive and timely advice to the Australian Government on national and international issues relating to the rights and obligations of Australi a and its citizens in the areas of civil justice, family law, access to justice, human rig hts, privacy, freedom of information and social inclusion, both now and into the fut ure. • A comprehensive and practical framework of policy, legislation, delegation, process and programs that meets current and identifiable future needs in the areas of civil j ustice, family law, access to justice, human rights, privacy, freedom of information and social inclusion.

Program 1.2 objective The first dot point under program 1.2 objective has been amended to reflect the transfer of cyber security policy responsibilities to the Department of the Prime Minister and Cabinet: • Australian governments, businesses, individuals and non-government organisation s are well prepared to deal with and recover from adverse events and security threa ts, particularly in the areas of natural disasters, identity security, critical infrastruct ure and chemicals of concern.

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Program 1.2 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual departmental expenses 130,471 140,898 133,611 130,411 125,449 Expenses not requiring appropriation in the budget year1 19,288 11,221 10,460 10,387 10,253 Total program expenses 149,759 152,119 144,071 140,798 135,702 1. Expenses not requiring appropriation in the budget year are made up of resources received free of charge of $0.198m and depreciation and amortisation expenses of $11.023m.

Program 1.2 key performance indicators The first dot point that appears in the 2011–12 Portfolio Budget Statements under program 1.2 key performance indicators has been removed.

Program 1.3 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Payments for Services under Family Law Act 1975 and the Child Support Scheme legislation 1,202 2,354 2,455 2,609 2,672 Payments to Law Courts Limited for contributions to operating and capital expenses 9,700 2,430 2,473 2,538 2,586 Family Court of Western Australia 21,386 17,448 14,672 15,073 15,408 Payments for membership of international bodies 656 550 550 550 550 Payments for grants to Australian organisations 1,429 1,263 1,289 1,909 1,935 Payments for the provision of legal aid— Legal Aid Commissions 10,197 20,889 10,646 3,697 3,767 Payments for the provision of community legal services 34,072 34,325 35,625 36,496 37,207 Financial Assistance towards legal costs and related expenses 4,350 7,147 4,834 5,140 5,294 Commonwealth Human Rights Education Program 351 509 520 792 807 Personal Property Securities—public awareness campaign 230 1,602 – – – Publications of Acts and legislative instruments 1,562 1,569 1,609 1,655 1,691 Expenses not requiring appropriation in the budget year1 15 – – – – Special appropriations Law Officers Act 1964 – 450 450 450 450 Total program expenses 85,150 90,536 75,123 70,909 72,367

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Program 1.4 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Family Relationships Services Program 161,166 164,747 166,884 170,428 173,866 Expenses not requiring appropriation in the budget year 22 – – – – Total program expenses 161,188 164,747 166,884 170,428 173,866

Program 1.5 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Payments under the Indigenous Justice Program 12,394 11,387 11,606 11,959 12,223 Payments for the provision of Family Violence Prevention Legal Services for Indigenous Australia 19,491 19,833 20,230 20,835 21,232 Indigenous Legal Aid and Policy Reform Program 64,611 65,466 66,666 69,266 70,674 Payments for Indigenous interpreter services in the Northern Territory 1,233 1,285 1,309 1,349 1,375 Closing the Gap in the Northern Territory law and order measures 27,625 28,503 4,413 3,598 3,629 Native title system 742 526 541 576 586 Total program expenses 126,096 127,000 104,765 107,583 109,719

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Program 1.6 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses National Community Crime Prevention program 2,768 259 – – – Payments for membership of international bodies 172 106 106 106 106 Payments for grants to Australian organisations 1,621 1,204 1,212 1,577 1,580 Safer Suburbs 4,317 3,780 2,000 2,000 1,000 Australia’s contribution to the International Criminal Court 6,137 7,862 8,164 8,457 8,655 Pacific Police Development 290 279 – – – Disaster Resilience Australia— Emergency Warning System Database 8,572 1,792 1,624 1,672 1,704 Disaster Resilience Australia Package 8,851 2,006 2,016 2,020 2,064

National Counter-Terrorism Committee —special fund and operating expenses 14,113 12,650 12,994 13,400 13,912 Counter-terrorism exercises 1,026 1,038 1,058 1,098 1,100 National security public information campaign 943 530 – – – National Crisis Coordination Capability 529 – – – – National aerial firefighting 14,000 13,946 13,997 14,484 14,804 Countering Violent Extremism to Prevent Terrorism 2,146 1,507 1,515 1,523 – Expenses not requiring appropriation in the budget year1 10,136 5,991 23,285 5,411 5,450 Specific purpose payment Schools Security Program 6,781 5,709 5,005 5,005 – Special appropriations National Firearms Program Implementation Act 1996 14 75 75 75 75 Special account expenses Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account2 10,631 15,584 7,614 5,026 2,462 Total program expenses 93,047 74,318 80,665 61,854 52,912 1. Expenses not requiring appropriation in the budget year are made up of depreciation and amortisation expenses. 2. Payments in 2010–11 were made from the Services for Other Governments and Non-Agency Bodies special account, which has been abolished and replaced with the Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account.

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Program 1.7 expenses 2011–12 2012–13 2013–14 2014–15 2010–11 Revised Forward Forward Forward Actual budget year 1 year 2 year 3 $’000 $’000 $’000 $’000 $’000 Annual administered expenses Disaster Income Recovery Subsidy— Flooding and severe weather 74,746 – – – – Ex gratia assistance—New Zealand citizens 5,121 – – – – Special appropriations Social Security (Administration) Act 1999 829,123 55,500 55,500 55,500 55,500 Special account expenses Services for Other Governments and Non-Agency Bodies 75,002 – – – – Total program expenses 983,992 55,500 55,500 55,500 55,500

OUTCOME 2

On 1 October 2010, responsibility for Australian territories functions was transferred to the Department of Regional Australia, Local Government, Arts and Sport. The 2010–11 actual expenses for Outcome 2 were incurred before this transfer took effect.

Table 2.1.2: Budgeted expenses and resources for Outcome 2 2011–12 2010–11 Revised Outcome 2: Good governance in the Australian Territories through Actual estimated the maintenance and improvement of the overarching legislative framework for self-governing territories, and laws and services for expenses expenses non self-governing territories $’000 $’000 Program 2.1: Attorney-General’s Department Operating Expenses —Territories Departmental expenses Departmental appropriation1 2,875 – Expenses not requiring appropriation in the budget year 335 – Total for Program 2.1 3,210 – Program 2.2: Services to Territories Administered expenses Ordinary annual services (Appropriation Bill No. 1) 28,332 – Expenses not requiring appropriation in the budget year 7,254 – Total for Program 2.2 35,586 – Total expenses for Outcome 2 38,796 –

2010–11 2011–12 Average staffing level (number) 14 – 1. Departmental appropriation combines ‘Ordinary annual services (Appropriation Bills No. 1 & No. 3)’ and ‘Revenue from independent sources (s 31)’.

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Section 3: Explanatory tables and budgeted financial stat ements

3.1 EXPLANATORY TABLES

Estimates of special account flows Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the Department. The corresponding table in the 2011–12 Portfolio Budget Statements is Table 3.1.2.

Table 3.1.1: Estimates of special account flows Opening Closing balance Receipts Payments Adjustments balance 2011–12 2011–12 2011–12 2011–12 2011–12 2010– 2010–11 2010–11 2010–11 2010–11 11 Outcome $’000 $’000 $’000 $’000 $’000 Services for Other Entities and Trust Moneys— Attorney-General’s Department Special Account —FMA Act s 20 (A)1 1 – 9,290 15,584 17,706 11,412 Other Trust Moneys— 1 1,869 – – (1,869) – FMA Act s 20 (A)2 1 1,846 1,701 1,678 – 1,869 Services for Other Governments and Non-Agency Bodies— 1 15,837 – – (15,837) – FMA Act s 20 (A)3 1 15,755 85,931 85,849 – 15,837 Total special accounts 2011–12 Budget estimate 17,706 9,290 15,584 – 11,412 Total special accounts 2010–11 estimated actual 17,601 87,632 87,527 – 17,706 FMA Act = Financial Management and Accountability Act 1997. (A) = Administered. 1. Since the 2011–12 Portfolio Budget Statements, the special accounts titled Other Trust Moneys and Servi ces for Other Governments and Non-Agency Bodies have been abolished and replaced with the Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account. 2. The purpose of the Other Trust Moneys account was for expenditure of moneys temporarily held in trust fo r the benefit of a person other than the Australian Government. The account was used for recording unidentif ied receipts pending investigation and transfer to the correct account or return to payer. These figures are inc luded in Table 1.1 to align with resources included in Budget Paper No. 4; however, they are excluded from Table 1.2 as they are not resources the Department can use for its own purposes. Payments are now made from the Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account. 3. The Department makes payments on behalf of organisations such as the ACT Supreme Court (Chief Justice’s salary), and state and territory governments (including the Queensland Premier’s Disaster Relief Appeal Fund). In these cases payments are made against moneys received from relevant organisations/jurisdictions. The Department also receives moneys and makes payments in relation to approved law enforcement initiatives under the Proceeds of Crime Act 2002. Payments are now made from the Services for Other Entities and Trust Moneys—Attorney-General’s Department Special Account.

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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Analysis of budgeted financial statements Changes to departmental and administered budgeted financial statements since the 2011–12 Portfolio Budget Statements include actual financial results for 2010–11, new measures, movement of administered funds, revision of natural disaster relief and recovery arrangement loan advances, Administrative Arrangements Orders, Remuneration Tribunal decisions and indexation updates.

Departmental Income statement The overall change in the budgeted departmental income statement for 2011–12 primarily reflects the changes associated with transfer of appropriation and corresponding expenses through the implementation of the Administrative Arrangements Orders of 19 October 2011 and 14 December 2011.

Balance sheet The overall change to the budgeted departmental balance sheet reflects the update of the 2010–11 actuals which resulted in changed opening balances for 2011–12, and the changes associated with the implementation of the Administrative Arrangements Orders.

Statement of changes in equity The changes in equity estimates from the 2011–12 Portfolio Budget Statements reflect the updated 30 June 2011 actual operating result, the inclusion of new measures and the implementation of the Administrative Arrangements Orders.

Administered Schedule of budgeted income and expenses The revised schedule reflects the impact on administered expenses of approved movement of funds, Remuneration Tribunal decisions and concessions on loan advances.

Schedule of budgeted assets and liabilities The revised budget for administered assets and liabilities shows the impact of the 2010–11 actuals and additional loan advances for natural disaster relief and recovery arrangements.

Schedule of budgeted administered cash flows The changes to the schedule represent the impact of the 2010–11 actual results on the schedule of assets and liabilities.

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3.2.2 Budgeted financial statements Departmental Table 3.2.1: Budgeted departmental comprehensive income statement (showing net cost of services) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 EXPENSES Employee benefits 165,401 168,026 163,922 164,408 162,623 Supplier expenses 82,070 72,440 62,697 62,902 59,763 Depreciation and amortisation 18,139 22,010 21,060 20,921 20,671 Finance costs 180 – – – – Write-down and impairment of assets 188 – – – – Other 50 – – – – Total expenses 266,028 262,476 247,679 248,231 243,057 LESS: OWN-SOURCE INCOME Own-source revenue Sale of goods and rendering of services 29,096 34,066 29,424 25,961 25,118 Interest 1 – – – – Total own-source revenue 29,097 34,066 29,424 25,961 25,118 Gains Other—resources received free of charge 340 348 352 356 360 Total gains 340 348 352 356 360 Total own-source income 29,437 34,414 29,776 26,317 25,478 Net cost of (contribution by) services 236,591 228,062 217,903 221,914 217,579 Revenue from government 218,819 207,329 198,601 202,751 198,666 Surplus (deficit) (17,772) (20,733) (19,302) (19,163) (18,913) Surplus (deficit) attributable to the Australian Government (17,772) (20,733) (19,302) (19,163) (18,913) OTHER COMPREHENSIVE INCOME Changes in asset revaluation reserves – – – – – Total other comprehensive income – – – – – Total comprehensive income (17,772) (20,733) (19,302) (19,163) (18,913) Total comprehensive income attributable to the Australian Government (17,772) (20,733) (19,302) (19,163) (18,913) Prepared on Australian Accounting Standards basis.

Note: Reconciliation of comprehensive income attributable to the agency 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 Total comprehensive income (loss) attributable to the Australian Government (17,772) (20,733) (19,302) (19,163) (18,913) Plus non-appropriated expenses Depreciation and amortisation expenses1 18,139 20,733 19,302 19,163 18,913 Total comprehensive income (loss) attributable to the agency 367 – – – – 1 .These amounts vary from the depreciation and amortisation expenses shown in Table 3.2.1 above due to the inclusion of depreciation associated with the Auscheck function which is funded from cost-recovery revenue.

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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 ASSETS Financial assets Cash and cash equivalents 3,971 1,600 1,600 1,600 1,600 Trade and other receivables 104,672 67,130 61,862 62,335 63,353 Total financial assets 108,643 68,730 63,462 63,935 64,953 Non-financial assets Land and buildings 64,948 90,306 89,761 82,315 74,869 Property, plant and equipment 21,292 13,434 7,076 4,661 3,056 Heritage and cultural assets 1,815 1,815 1,815 1,815 1,815 Intangibles 38,251 37,922 37,430 36,661 34,789 Inventories 58 58 58 58 58 Other 2,130 1,011 958 1,023 934 Total non-financial assets 128,494 144,546 137,098 126,533 115,521 Total assets 237,137 213,276 200,560 190,468 180,474 LIABILITIES Payables Suppliers 17,942 13,543 13,273 14,506 13,734 Other 13,113 2,513 2,269 2,284 2,093 Total payables 31,055 16,056 15,542 16,790 15,827 Interest-bearing liabilities Leases 658 – – – – Other – 1,975 1,670 1,365 1,108 Total interest-bearing liabilities 658 1,975 1,670 1,365 1,108 Provisions Employee provisions 33,005 39,089 38,624 39,126 39,528 Other 634 670 275 11 – Total provisions 33,639 39,759 38,899 39,137 39,528 Total liabilities 65,352 57,790 56,111 57,292 56,463 Net assets 171,785 155,486 144,449 133,176 124,011 EQUITY Parent entity interest Contributed equity 150,643 155,077 163,344 171,239 180,987 Reserves 19,124 19,124 19,124 19,124 19,124 Retained surplus (accumulated deficit) 2,018 (18,715) (38,019) (57,187) (76,100) Total parent entity interest 171,785 155,486 144,449 133,176 124,011 Total equity 171,785 155,486 144,449 133,176 124,011 Prepared on Australian Accounting Standards basis.

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Table 3.2.3: Departmental statement of changes in equity—summary of moveme nt (budget year 2011–12) Asset Contributed Retained revaluation equity/ Total earnings reserve capital equity $’000 $’000 $’000 $’000 Opening balance as at 1 July 2011 Balance carried forward from previous period 2,018 19,124 150,643 171,785 Adjustment for changes in accounting policies – – – – Adjusted opening balance 2,018 19,124 150,643 171,785 Comprehensive income Surplus (deficit) for the period (20,733) – – (20,733) Total comprehensive income (20,733) – – (20,733) Transactions with owners Returns of capital Restructuring – – (26,883) (26,883) Contributions by owners Appropriation (equity injection) – – 8,057 8,057 Departmental capital budget – – 22,419 22,419 Other – – 841 841 Sub-total transactions with owners – – 4,434 4,434 Estimated closing balance as at 30 June 2012 (18,715) 19,124 155,077 155,486 Closing balance attributable to the Australian Government – – – – Prepared on Australian Accounting Standards basis.

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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Goods and services 33,164 33,921 29,343 25,643 25,037 Appropriations 218,819 243,698 203,390 202,336 197,268 Interest 1 – – – – Net GST received 8,739 (22) 11 (31) 13 Total cash received 260,723 277,597 232,744 227,948 222,318 Cash used Employees 162,703 169,235 164,384 163,962 162,286 Suppliers 96,045 75,328 62,960 61,586 60,032 Borrowing costs 180 – – – – Total cash used 258,928 244,563 227,344 225,548 222,318 Net cash from (used by) operating activities 1,795 33,034 5,400 2,400 – INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment, and buildings 44,768 66,064 13,665 10,291 9,748 Total cash used 44,768 66,064 13,665 10,291 9,748 Net cash from (used by) investing activities (44,768) (66,064) (13,665) (10,291) (9,748) FINANCING ACTIVITIES Cash received Contributed equity 47,501 31,317 8,265 7,891 9,748 Total cash received 47,501 31,317 8,265 7,891 9,748 Cash used Repayments of borrowings 2,324 658 – – – Total cash used 2,324 658 – – – Net cash from (used by) financing activities 45,177 30,659 8,265 7,891 9,748 Net increase (decrease) in cash held 2,204 (2,371) – – – Cash and cash equivalents at the beginning of the reporting period 1,767 3,971 1,600 1,600 1,600 Cash and cash equivalents at the end of the reporting period 3,971 1,600 1,600 1,600 1,600 Prepared on Australian Accounting Standards basis.

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Table 3.2.5: Departmental capital budget statement Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 CAPITAL APPROPRIATIONS Capital budget—Bill 1 (DCB) 17,036 22,419 7,310 7,891 9,748 Equity injections—Bill 2 8,773 8,057 234 – – Total capital appropriations 25,809 30,476 7,544 7,891 9,748 Total new capital appropriations Represented by: Purchase of non-financial assets 44,768 30,476 7,544 7,891 9,748 Total items 44,768 30,476 7,544 7,891 9,748 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations 24,759 17,457 234 – – Funded by capital appropriation—DCB1 15,798 40,994 10,310 7,891 9,748 Funded internally from departmental resources2 4,211 7,613 3,121 2,400 – Total 44,768 66,064 13,665 10,291 9,748 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 44,768 66,064 13,665 10,291 9,748 Total cash used to acquire assets 44,768 66,064 13,665 10,291 9,748 Consistent with information contained in the statement of asset movements and the budgeted statement of c ash flows. DCB = departmental capital budget. 1. Does not include annual finance lease costs. Includes purchases from current and previous years’ depart mental capital budgets. 2. Includes funding from annual and prior year appropriations and section 31 relevant agency receipts.

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Table 3.2.6: Statement of asset movements (2011–12) Other Heritage property, and plant and cultural Land Buildings equipment assets Intangibles Total $’000 $’000 $’000 $’000 $’000 $’000 As at 1 July 2011 Gross book value 865 78,230 51,099 1,815 55,850 187,859 Accumulated depreciation/ (61,553 amortisation and impairment – (14,147) (29,807) – (17,599) ) Opening net book balance 865 64,083 21,292 1,815 38,251 126,306 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity1 – – – – 11,757 11,757 By purchase—appropriation ordinary annual services2 – 33,433 6,492 – 13,542 53,467 By purchase—other – – – – 840 840 Total additions – 33,433 6,492 – 26,139 66,064 Other movements Depreciation/amortisation (22,010 expense – (8,075) (8,715) – (5,220) ) Disposals From disposal of entities or operations (including (26,883 restructuring) – – (5,635) – (21,248) ) As at 30 June 2012 Gross book value 865 111,663 50,433 1,815 60,448 225,224 Accumulated depreciation/ (81,747 amortisation and impairment – (22,222) (36,999) – (22,526) ) Closing net book balance 865 89,441 13,434 1,815 37,922 143,477 Prepared on Australian Accounting Standards basis. 1. ‘Appropriation equity’ refers to equity injections or administered assets and liabilities appropriations provid ed through Appropriation Bills (No. 2 & No. 4) 2011–12. 2. ‘Appropriation ordinary annual services’ refers to funding provided through Appropriation Bills (No. 1 & N o. 3) 2011–12 for depreciation/amortisation expenses, departmental capital budgets or other operational exp enses.

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Administered

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of government (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 INCOME ADMINISTERED ON BEHALF OF GOVERNMENT Revenue Taxation revenue Indirect tax 361 – – – – Total taxation revenue 361 – – – – Non-taxation revenue Sale of goods and rendering of services 11,298 6,527 6,676 10,864 10,705 Interest 3,560 1,144 5,186 12,055 11,493 Dividends 5,858 7,000 2,400 2,500 2,500 Royalties 562 – – – – Other 10,009 160 5,032 5,032 5,032 Total non-taxation revenue 31,287 14,831 19,294 30,451 29,730 Total revenues administered on behalf of government 31,648 14,831 19,294 30,451 29,730 Total income administered on behalf of government 31,648 14,831 19,294 30,451 29,730 EXPENSES ADMINISTERED ON BEHALF OF GOVERNMENT Employee benefits 3,059 400 100 – – Supplier expenses 68,810 23,262 21,274 22,303 22,617 Subsidies 9,724 2,430 2,473 2,538 2,586 Personal benefits 978,815 55,950 55,950 55,950 55,950 Grants 406,216 408,484 372,241 375,046 375,299 Depreciation and amortisation 10,007 2,564 1,876 1,678 1,678 Write-down and impairment of assets 1,246 – – – – Other 17,346 3,427 21,409 3,733 3,772 Total expenses administered on behalf of government 1,495,223 496,517 475,323 461,248 461,902 Prepared on Australian Accounting Standards basis.

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Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf o f government (as at 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 ASSETS ADMINISTERED ON BEHALF OF GOVERNMENT Financial assets Cash and cash equivalents 169 – – – – Receivables 44,746 47,894 173,002 167,433 144,534 Other investments 396,052 396,052 396,052 396,052 396,052 Other – 30 27 29 29 Total financial assets 440,967 443,976 569,081 563,514 540,615 Non-financial assets Land and buildings – 338 680 1,021 1,365 Property, plant and equipment 5,979 5,638 5,485 4,537 3,475 Intangibles 610 440 271 101 49 Other 308 30 27 29 29 Total non-financial assets 6,897 6,446 6,463 5,688 4,918 Total assets administered on behalf of government 447,864 450,442 575,544 569,206 545,533 LIABILITIES ADMINISTERED ON BEHALF OF GOVERNMENT Payables Suppliers 2,461 837 765 802 813 Grants 20,699 15,466 14,094 14,200 14,209 Other 961 – – – – Total payables 24,121 16,303 14,859 15,002 15,022 Provisions Employee provisions 46 – – – – Total provisions 46 – – – – Total liabilities administered on behalf of government 24,167 16,303 14,859 15,002 15,022 Prepared on Australian Accounting Standards basis.

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Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 OPERATING ACTIVITIES Cash received Sales of goods and rendering of services 10,384 7,012 6,584 10,360 10,715 Interest 3,560 1,144 2,887 6,251 5,798 Dividends 5,858 7,000 2,400 2,500 2,500 Taxes 1,228 – – – – Net GST received 20,447 – – – – Other 9,703 3,996 2,404 2,340 2,340 Total cash received 51,180 19,152 14,275 21,451 21,353 Cash used Grant payments 401,032 413,717 373,613 374,940 375,290 Subsidies paid 9,724 2,430 2,473 2,538 2,586 Personal benefits 978,815 56,900 55,950 55,950 55,950 Suppliers 85,328 24,608 21,343 22,268 22,606 Employees 3,195 460 100 – – CAC Act body payment item 10,127 – – – – Other – 48 – – – Total cash used 1,488,221 498,163 453,479 455,696 456,432 Net cash from (used by) operating activities (1,437,041) (479,011) (439,204) (434,245) (435,079) INVESTING ACTIVITIES Cash received Repayments of advances and loans 6,638 8,354 7,427 16,587 33,238 Total cash received 6,638 8,354 7,427 16,587 33,238 Cash used Purchase of property, plant and equipment 23,192 2,391 1,896 901 908 Advances and loans made – 25,913 133,858 5,000 5,000 Total cash used 23,192 28,304 135,754 5,901 5,908 Net cash from (used by) investing activities (16,554) (19,950) (128,327) 10,686 27,330 FINANCING ACTIVITIES Cash received Other 21,913 – – – – Total cash received 21,913 – – – – Cash used Other 25,097 – – – – Total cash used 25,097 – – – – Net cash from (used by) financing activities (3,184) – – – –

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Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June) (continued) Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 Net increase (decrease) in cash held (1,456,779) (498,961) (567,531) (423,559) (407,749) Cash and cash equivalents at beginning of reporting period 41 169 – – – Cash from Official Public Account for: – Appropriations 1,595,140 517,330 587,792 461,738 462,360 Cash to Official Public Account for: – Appropriations (138,233) (18,538) (20,261) (38,179) (54,611) Cash and cash equivalents at end of reporting period 169 – – – – Prepared on Australian Accounting Standards basis.

Table 3.2.10: Schedule of administered capital budget Revised Forward Forward Forward Actual budget estimate estimate estimate 2010–11 2011–12 2012–13 2013–14 2014–15 $’000 $’000 $’000 $’000 $’000 CAPITAL APPROPRIATIONS Capital budget—Bill 1 (ACB) 9,871 891 1,896 901 908 Administered assets and liabilities—Bill 2 29,576 25,913 133,858 5,000 5,000 Total capital appropriations 39,447 26,804 135,754 5,901 5,908 Total new capital appropriations Represented by: Purchase of non-financial assets 23,192 891 1,896 901 908 Other items – 25,913 133,858 5,000 5,000 Total items 23,192 26,804 135,754 5,901 5,908 PURCHASE OF NON-FINANCIAL ASSETS Funded by capital appropriations1 20,445 1,500 – – – Funded by capital appropriation—ACB1, 2 2,364 891 1,896 901 908 Funded by finance leases 383 – – – – Total 23,192 2,391 1,896 901 908 RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases 23,192 2,391 1,896 901 908 Total cash used to acquire assets 23,192 2,391 1,896 901 908 Consistent with information contained in the statement of asset movements and the schedule of budgeted ca sh flows. ACB = administered capital budget. 1. Includes funding from annual and prior year appropriations. 2. Does not include annual finance lease costs. Includes purchases from current and previous years’ adminis tered capital budgets.

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Table 3.2.11: Statement of administered asset movements (2011–12) Other property, plant and Buildings equipment Intangibles Total $’000 $’000 $’000 $’000 As at 1 July 2011 Gross book value – 11,642 1,105 12,747 Accumulated depreciation/ amortisation and impairment – (5,663) (495) (6,158) Opening net book balance – 5,979 610 6,589 CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase—appropriation equity1 443 1,948 – 2,391 Total additions 443 1,948 – 2,391 Other movements Depreciation/amortisation expense (105) (2,289) (170) (2,564) As at 30 June 2012 Gross book value 443 13,590 1,105 15,138 Accumulated depreciation/ – amortisation and impairment (105) (7,952) (665) (8,722) Closing net book balance 338 5,638 440 6,416 Prepared on Australian Accounting Standards basis. 1. ‘Appropriation equity’ refers to equity injections or administered assets and liabilities appropriations provid ed through Appropriation Bills (No. 2 & No. 4) 2011–12.

3.2.3 Notes to the financial statements Basis of accounting The budgeted financial statements have been prepared on an accrual accounting 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.

Departmental Revenue from government Amounts appropriated are recognised as revenue, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Other revenue Revenue from rendering of specific services is recognised by reference to the stage of completion of contracts or other agreements.

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Employee expenses Employee expenses consist of salaries, leave entitlements, redundancy expenses, superannuation and non-salary benefits.

Supplier expenses Supplier expenses consist of administrative costs, consultants’ fees, travel expenses and property operating expenses.

Leases A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the lower of fair value or the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the income statement on a basis that is representative of the pattern of benefits derived from the lease assets.

Depreciation and amortisation Computer equipment is depreciated using the declining-balance method while, for all other plant and equipment, the straight-line method of depreciation is applied. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated life of the improvements or the unexpired period of the lease.

Depreciation/amortisation rates (useful lives) are reviewed at each balance date and necessary adjustments are recognised.

Cash Cash includes notes and coins held and any deposits held at call with a bank or other financial institution.

Asset valuation The Department has adopted fair value as a basis for valuing its leasehold improvements and plant and equipment. Valuation is conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date.

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Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition.

Receivables A provision is raised for any doubtful debts based on a review of the collectability of all outstanding accounts as at year-end.

Bad debts are written off during the year in which they are identified.

Provisions and payables Provisions and payables represent liabilities for miscellaneous accruals and employee benefits, including accrued salary and leave entitlements, provisions for make-good of leased premises and lease incentives. No provision for sick leave is required as all sick leave is non-vesting.

Administered Revenue All administered revenues are revenues relating to the core operating activities performed by the Department on behalf of the Australian Government. Levies, fees and fines revenue is recognised when it is probable that the economic benefit comprising the consideration will flow to the entity.

Revenue from the rendering of service is recognised on delivery of that service to customers. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset. Dividend revenue is recognised when the right to receive a dividend has been established.

Assets Administered financial assets are made up of receivables and investments. The administered investments are recorded at fair value. Administered non-financial assets comprise land and buildings; infrastructure, plant and equipment; intangibles; heritage and cultural assets; inventories; and prepayments. The accounting policies in relation to non-financial assets are the same as for departmental non-financial assets.

Liabilities Administered liabilities are made up of employee provisions, creditors for suppliers, grants and subsidy arrangements.

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