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Financial Performance
The financial statements included in this Annual Report provide detailed information on the Department's financial results for 2000-2001 and its financial position at 30 June 2001.
The following summarises significant issues in the financial statements. The 2000-2001 year is the second under the Government's accrual budgeting framework.
Department Financial Performance
The Department recorded a net surplus of $718.191 million for the year, compared with a surplus of $46.370 million in the 1999-2000 financial year. The major reason for this variance is the recognition of the Heritage Assets Collection (under the responsibility of the National Archives of Australia) valued on 1 July 2000 at $697 million.
In comparing the budgeted net surplus of $18.570 million published in the Portfolio Additional Estimates Statements, the Department's actual net surplus of $718.191 million resulted in a $699.621 million increase. The major reason for this variance relates to the recognition of the Heritage Assets Collection as mentioned above.
Department Financial Position
The major cause of the net decrease in equity was the transfer of $765.789 million to the National Archives of Australia who became a prescribed agency on 1 July 2000.
The introduction of the GST on 1 July 2000 has had no material impact upon our Financial Position.
The actual Assets and Liabilities for 2000-2001 compared favourably with the published Additional Estimates Statements. The increase in net assets was due to an increase in cash of $8.442 million and receivable of $8.570 million, offset by the increase in provision for unearned income of
$4.391 million.
Department Cash Flow
Cash at 30 June 2001 represents unspent appropriation to be expensed in 2001-2002, and provisions and payables.
The unspent appropriations explain the major variance to the budgeted Cash Flow Statement included in the Portfolio Additional Estimates Statements.
In accordance with Australian Accounting Profession, UIG 31 pronouncement Operating Cash Flow figures have been grossed up to include GST.
Schedule of Administered Revenues and Expenses
The Administered net surplus/deficit is not a reliable indication of year-on-year performance, as timing issues affect the Administered items.
Summary of major items of significance:
- Telstra dividend income decreased from $2,746.475 million to $1,160.469 million, following the sale in 1999-2000 of a further 16.6% of Telstra.
- Licence fees and other revenues collected by the Australian Broadcasting Authority (previously reported by the Department) are reported by the Authority from 1 July 2000.
- DOCITA transferred a building to the National Museum of Australia at a value of $143.257 million.
- Recognition of the change in equity position in accordance with the Finance Ministers Orders for Administered Investments.
- The National Institute of Drama and Arts building has been capitalised at a value of $16.508 million. This has been recorded through other revenue in accordance with Accounting Standard AAS1.
estimate arrangements.
Schedule of Administered Assets and Liabilities
The major reduction of financial assets were due to, the change in accounting policy that removes recognition of appropriation receivables, and the change in equity position for administered investments in accordance with the Finance Ministers Orders.
Non-Financial Assets have decreased from $114.983 million in 1999-2000 to $87.410 million. Major movements are the transfer out of the building to the National Museum of Australia, and the recognition of National Institute of Drama and Arts building.
The budgeted Statement of Assets and Liabilities published in the Portfolio Additional Estimates Statements excludes values for Telstra and Australia Post investments in accordance with budget estimate arrangements.
Administered Cash Flow
The cash flows reflect transfers to and from accounts maintained by the Department of Finance and Administration. As a result of these arrangements, the Department holds minimal cash balances reflecting timing variances
In accordance with Australian Accounting Profession, UIG 31 pronouncement Operating Cash Flow figures have been grossed up to include GST.