Notes 11–15

Note 11: Senior Executive Remuneration
   
Note 11A: Senior Executive Remuneration Expenses for the Reporting Period
   
 
2013
 
2012
 
$
 
$
Short-term employee benefits:  
Salary
40,665,063
 
37,245,610
Annual leave accrued
446,141
 
562,054
Performance bonuses
79,583
 
712,272
Motor vehicles
3,100,574
 
3,058,575
Overseas Allowances
13,760,798
 
12,648,169
Other allowances
4,651,758
 
3,967,065
Total short-term employee benefits
62,703,917
 
58,193,747
   
Post-employment benefits:  
Superannuation
8,653,038
 
8,659,452
Total post-employment benefits
8,653,038
 
8,659,452
   
Other long-term benefits:  
Long-service leave
412,209
 
1,181,112
Total other long-term benefits
412,209
 
1,181,112
   
Termination benefits
487,242
 
490,418
Total employment benefits
72,256,406
 
68,524,728
   
Notes:  
1. Note 11A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may differ from the cash 'Bonus paid' in Note 11B).
2. Note 11A excludes acting arrangements and part-year service where total remuneration expensed for a senior executive was less than $180,000.
3. The  'Annual leave accrued' and 'Long –service leave' amounts reflect the net movement of the respective leave liabilities and not the total leave accrual amounts for the financial year. The  'Salary' amount includes payments for leave taken.  The total of 'Annual leave accrued', 'Long-service leave' and 'Salary' reflects the total accrued salary and leave expense for the financial year.
   
Note 11B: Average Annual Reportable Remuneration Paid to Substantive Senior Executives During the Reporting Period
 
   
2013
Average annual reportable remuneration1
Senior
Executives
Reportable salary2
Contributed
superannuation3
Bonus paid4
Total5
 
Salary Payments
Domestic
Allowances
Overseas
Allowances
 
No.
$
$
$
$
$
$
Total remuneration (including part-time arrangements):
less than $180,000
23
44,913
3,211
8,028
9,712
-
65,864
$180,000 to $209,999
5
143,885
10,340
18,355
31,137
511
204,229
$210,000 to $239,999
45
164,981
15,228
8,319
36,997
296
225,821
$240,000 to $269,999
29
175,369
12,292
27,772
39,414
111
254,959
$270,000 to $299,999
36
184,885
10,465
45,752
43,895
258
285,255
$300,000 to $329,999
23
182,388
12,671
78,371
42,170
539
316,139
$330,000 to $359,999
33
186,997
18,255
95,215
43,470
928
344,864
$360,000 to $389,999
16
192,921
18,319
114,904
45,934
-
372,077
$390,000 to $419,999
12
209,790
19,884
123,449
55,627
258
409,008
$420,000 to $449,999
5
258,185
9,068
111,017
60,688
182
439,140
$450,000 to $479,999
1
230,696
24,159
151,365
45,144
-
451,364
$480,000 to $509,999
5
247,508
7,074
174,417
63,012
-
492,010
$510,000 to $539,999
2
399,179
-
68,064
55,311
-
522,554
$540,000 to $569,999
1
526,193
1,570
9,220
3,391
-
540,374
$660,000 to $689,999
1
484,224
11,773
80,999
96,788
-
673,784
Total
237
 
   
2012
Average annual reportable remuneration1
Senior
Executives
Reportable salary2
Contributed
superannuation3
Bonus paid4
Total5
 
Salary
Payments
Domestic
Allowances
Overseas
Allowances
 
No.
$
$
$
$
$
$
Total remuneration (including part-time arrangements):6
less than $180,000
20
60,136
5,191
3,276
16,730
420
85,755
$180,000 to $209,999
24
146,668
12,007
5,296
35,354
2,697
202,023
$210,000 to $239,999
35
146,348
18,268
11,415
42,876
2,900
221,807
$240,000 to $269,999
32
163,298
12,801
25,010
53,583
3,415
258,106
$270,000 to $299,999
32
157,156
14,847
63,393
45,374
3,431
284,200
$300,000 to $329,999
25
168,543
15,659
80,322
50,146
3,607
318,277
$330,000 to $359,999
18
158,221
17,096
110,617
56,120
3,480
345,535
$360,000 to $389,999
8
180,355
17,916
105,651
61,766
4,141
369,829
$390,000 to $419,999
7
221,511
10,786
88,946
79,075
4,304
404,623
$420,000 to $449,999
5
203,607
14,194
150,074
60,172
4,126
432,173
$450,000 to $479,999
5
227,118
8,406
173,774
52,728
3,143
465,169
$540,000 to $569,999
1
413,178
4,449
-
138,361
-
555,988
$570,000 to $599,999
1
292,816
25,973
147,372
111,822
5,213
583,196
$660,000 to $689,999
1
286,212
25,973
168,341
117,942
5,213
603,681
Total
214
 
Notes:
1. This table reports substantive senior executives who received remuneration during the reporting period.   Each row is an averaged figure based on headcount for individuals in the band.
2. 'Reportable salary' includes gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column) and comprises the following:
     a) Salary Payments;
     b) Domestic and Overseas Allowances. Allowances include reportable fringe benefits (net amount); and
     c) exempt foreign employment income.
3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to senior executives in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals' payslips.
4. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
5. Various salary sacrifice arrangements were available to senior executives including superannuation, motor vehicle and expense payment fringe benefits.  Salary sacrifice benefits are reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.
6. Adjustments to 2011-12 comparatives were made to reflect the change in executive remuneration threshold (from $150,000 to $180,000), changes to disclosure of reportable-FBT and adjustments to salary inclusions for employees promoted to SES during the financial year.
 
Note 11C: Other Highly Paid Staff
   
2013
Average annual reportable remuneration1
Staff
Reportable salary2
Contributed
superannuation3
Bonus paid4
Total5
 
Salary Payments
Domestic
Allowances
Overseas
Allowances
 
No.
$
$
$
$
$
$
Total remuneration (including part-time arrangements):
$180,000 to $209,999
109
105,260
3,459
61,899
20,938
1,585
193,140
$210,000 to $239,999
91
111,619
2,011
83,559
24,407
1,871
223,467
$240,000 to $269,999
41
113,601
2,133
109,021
26,957
2,188
253,900
$270,000 to $299,999
30
120,063
3,600
130,146
27,819
2,395
284,023
$300,000 to $329,999
13
133,136
7,346
138,834
32,114
1,408
312,839
$330,000 to $359,999
8
125,839
18,346
171,254
28,324
1,353
345,115
$360,000 to $389,999
1
134,683
35,155
151,846
35,623
2,704
360,011
Total
293
 
   
2012
Average annual reportable remuneration1
Staff
Reportable salary2
Contributed
superannuation3
Bonus
paid4
Total5
 
Salary Payments
Domestic
Allowances
Overseas
Allowances
 
No.
$
$
$
$
$
$
Total remuneration (including part-time arrangements):6
$180,000 to $209,999
134
98,723
2,145
67,497
23,514
1,258
193,138
$210,000 to $239,999
90
105,346
2,784
89,062
23,953
1,631
222,778
$240,000 to $269,999
40
113,271
4,303
106,331
27,198
1,220
252,324
$270,000 to $299,999
15
112,688
8,409
132,758
32,245
738
286,838
$300,000 to $329,999
19
109,545
12,803
151,048
34,758
955
309,109
$330,000 to $359,999
3
135,103
15,875
155,741
32,198
828
339,744
$390,000 to $419,999
1
141,200
154
225,603
24,632
2,483
394,071
Total
302
Notes:
1. This table reports staff:
     a) who were employed by the entity during the reporting period;
     b) whose reportable remuneration was $180,000 or more for the financial period; and
     c) were not required to be disclosed in Tables  B or director disclosures.
Each row is an averaged figure based on headcount for individuals in the band.
2. 'Reportable salary' includes gross payments (less any bonuses paid, which are separated out and disclosed in the 'bonus paid' column) and comprises the following:
     a) Salary Payments;
     b) Domestic and Overseas Allowances. Allowances include reportable fringe benefits (net amount); and
     c) exempt foreign employment income.
3. The 'contributed superannuation' amount is the average actual superannuation contributions paid to staff in that reportable remuneration band during the reporting period, including any salary sacrificed amounts, as per the individuals' payslips.
4. 'Bonus paid' represents average actual bonuses paid during the reporting period in that reportable remuneration band. The 'bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.
5. Various salary sacrifice arrangements were available to other highly paid staff including superannuation, motor vehicle and expense payment fringe benefits.  Salary sacrifice benefits are reported in the 'reportable salary' column, excluding salary sacrificed superannuation, which is reported in the 'contributed superannuation' column.
6. Adjustments to 2011-12 comparatives were made to reflect the change in executive remuneration threshold (from $150,000 to $180,000), changes to disclosure of reportable-FBT and adjustments to salary inclusions for employees promoted to SES during the financial year.
 
Note 12: Remuneration of Auditors  
   
 
2013
 
2012
 
$'000
 
$'000
Financial statement audit services were provided free of charge to the entity by the Australian National Audit Office (ANAO).  
   
Fair value of the services provided  
The fair value of the services provided was:
460
 
410
Total
460
 
410
   
No other services were provided by the ANAO
   

Note 13: Financial Instruments
   
 
2013
 
2012
 
$'000
 
$'000
Note 13A: Categories of Financial Instruments
Financial Assets  
Loans and receivables:  
Cash
59,346
 
54,787
Receivables for goods and services
30,746
 
23,877
Other receivables
20,868
 
19,231
Carrying amount of financial assets
110,960
 
97,895
   
Financial Liabilities  
At amortised cost:  
Trade creditors and accruals
79,870
 
76,099
Carrying amount of financial liabilities
79,870
 
76,099
   
Note 13B: Net Income and Expense from Financial Assets
Loans and receivables  
Exchange gains/(loss)
(5,072)
 
(2,051)
Impairment gain/(loss)
18
 
156
Net gain/(loss) from loans and receivables
(5,054)
 
(1,895)
   
Note 13C: Net Income and Expense from Financial Liabilities
Financial liabilities - at amortised cost  
Interest expense
-
 
-
Net gain/(loss) from financial liabilities - at amortised cost
-
 
-
   
Note 13D: Fair Value of Financial Instruments
   
As the Department only holds basic financial instruments (cash, receivables and payables), the carrying amounts are a reasonable approximation of fair value.
   
Note 13E: Credit Risk
 
The Department is exposed to minimal credit risk as loans and receivables comprise trade and other receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This is equal to the total amount of these outstanding receivables of $51,635,000 (2012: $43,562,000).
The Department has assessed the risk of default on payment and has allocated $311,000 (2012: $453,000) to an allowance for doubtful debts account.
The Department has no collateral to mitigate against credit risk.
 
Ageing of financial assets that were past due but not impaired for 2013
 
Not past due nor impaired $'000
0 to 30 days $'000
31 to 60 days $'000
61 to 90 days $'000
90+ days
$'000

Total
$'000
Not impaired
Cash
59,346
-
-
-
-
59,346
Receivables for goods and services
19,747
8,108
1,192
10
2,000
31,057
Other receivables
13,239
71
15
11
7,532
20,868
Impaired
Receivables for goods and services
-
-
-
-
(311)
(311)
Total
92,332
8,179
1,207
21
9,221
110,960
 
Ageing of financial assets that were past due but not impaired for 2012
 
Not past due nor impaired $'000
0 to 30 days $'000
31 to 60 days $'000
61 to 90 days $'000
90+ days
$'000

Total
$'000
Not impaired
Cash
54,787
-
-
-
-
54,787
Receivables for goods and services
19,355
1,829
1,826
728
592
24,330
Other receivables
12,476
100
4
5
6,646
19,231
Impaired
Receivables for goods and services
-
-
-
-
(453)
(453)
Total
86,618
1,929
1,830
733
6,785
97,895
 
Note 13F: Liquidity Risk
 
The Department's financial liabilities are trade creditors. It is highly unlikely that the Department will encounter difficulty in meeting its obligations associated with these liabilities given that it is a Commonwealth entity and has funding mechanisms available to ensure default does not occur. In addition, the Department has internal policies and procedures in place to ensure there are sufficient resources to make payments and has no history of default. The following table illustrates the maturities  for financial liabilities:
 
Maturities for non-derivative financial liabilities 2013
 
On
within 1
1 to 2
2 to 5
> 5
 
demand
year
years
years
years
Total
 
$'000
$'000
$'000
$'000
$'000
$'000
Trade creditors
-
79,870
-
-
-
79,870
Total
-
79,870
-
-
-
79,870
 
Maturities for non-derivative financial liabilities 2012
 
On
within 1
1 to 2
2 to 5
> 5
 
demand
year
years
years
years
Total
 
$'000
$'000
$'000
$'000
$'000
$'000
Trade creditors
-
76,099
-
-
-
76,099
Total
-
76,099
-
-
-
76,099
 
The entity had no derivative financial liabilities in either 2013 or 2012.
 
Note 13G: Market Risk
 
Currency risk
Foreign currency risk refers to the risk that the fair value of future cash flows of a financial instruments will fluctuate due to changes in foreign currency exchange rates. The Department is exposed to foreign currency exchange risk primarily through undertaking certain transactions denominated in a wide range of foreign currency through its operations overseas.
The following table illustrates the effect on the Department's operating result (profit or loss) and equity as at 30 June 2013 from a 15.7% (2012: 15%) increase or decrease against the AUD in the currencies in which financial instruments were held by the Department, with all other variables held constant. 
 
Sensitivity analysis of the risk that the entity is exposed to for 2013
 

 + Favourable
Effect on

 - Unfavourable
Effect on
 
 
Risk variable
Change in
risk
variable
Profit and loss
Equity
Profit and loss
Equity
 
$
$'000
$'000
$'000
$'000
Cash
43,884
15.7%
(5,955)
(5,955)
8,173
8,173
Receivables for goods and services (net)
(378)
15.7%
51
51
(70)
(70)
Other receivables
2,120
15.7%
(288)
(288)
395
395
Trade creditors
(345)
15.7%
47
47
(64)
(64)
Total
45,281
(6,145)
(6,145)
8,434
8,434
 
Sensitivity analysis of the risk that the entity is exposed to for 2012
   
+ Favourable
Effect on
 
- Unfavourable
Effect on
 
 
Risk variable
Change in
risk
variable
Profit and loss
Equity
Profit and loss
Equity
 
$
$'000
$'000
$'000
$'000
Cash
44,389
15%
(5,790)
(5,790)
7,833
7,833
Receivables for goods and services (net)
1,506
15%
(196)
(196)
266
266
Other receivables
4,188
15%
(546)
(546)
739
739
Trade creditors
2,890
15%
377
377
(510)
(510)
Total
52,973
(6,155)
(6,155)
8,328
8,328
 
Interest rate and Other price risk.
The Department holds basic financial instruments that do not expose it to 'Interest rate risk' or 'Other price risk'.
 
Note 14: Financial Assets Reconciliation
 
 
 
2013
 
2012
 
$'000
 
$'000
Financial assets
Notes
 
 
 
Total financial assets as per balance sheet
1,047,657
 
998,585
Less: non-financial instrument components:
 
Appropriations receivable
5B
934,126
 
897,997
Other receivables (GST receivable from the ATO)
5B
2,571
 
2,693
Total non-financial instrument components
936,697
 
900,690
Total financial assets as per financial instruments note
13A
110,960
 
97,895
 
 
Note 15: Administered - Expenses
   
   
EXPENSES
2013
 
2012
 
$'000
 
$'000
Note 15A: Employee Benefits
Wages and salaries
142
 
678
Superannuation:  
Defined benefit plans
23
 
109
Leave and other entitlements
37
 
103
North American Pension Scheme - transfers and payments
3,747
 
3,661
Other
1,269
 
928
Total employee benefits expense
5,218
 
5,479
   
Note 15B: Suppliers
Goods and services  
Professional services
647
 
7,138
Australia Network
21,984
 
19,766
Other suppliers
489
 
2,064
Total goods and services
23,120
 
28,968
   
Goods and services are made up of:  
Rendering of services – related entities
21,984
 
19,766
Rendering of services – external parties
1,136
 
9,202
Total goods and services
23,120
 
28,968
   
Note 15C: Grants and Contributions
Private sector:  
Non-profit organisations - external
4,575
 
8,057
Overseas - International organisations
91,615
 
83,227
Overseas - UN peacekeeping
136,227
 
139,634
Other
4
 
93
Total grants and contributions
232,421
 
231,011
   
Note 15D: Write-Down and Impairment of Assets
Asset write-downs and impairments from:  
Impairment of financial assets
135
 
4
Total write-down and impairment of assets
135
 
4
   
Note 15E: Foreign Exchange Losses
Non-speculative - NIA
237
 
305
Non-speculative - other
3,380
 
1,541
Total foreign exchange losses
3,617
 
1,846
   
Note 15F: Other
NIA - Interest
2,752
 
1,809
NIA - Debt forgiveness
7,989
 
8,085
NIA - Other financial costs
-
 
17
EFIC - Administration costs
2,234
 
1,446
Passport and consular fee refunds
831
 
885
Total other expenses
13,806
 
12,242