Notes 16–20

Note 16: Administered - Income
 
 
 
2013
 
2012
 
$'000
 
$'000
REVENUE
 
 
 
Non–Taxation Revenue
 
 
 
Note 16A: Sale of Goods and Rendering of Services
Rendering of services – related entities - passport fees
170
 
103
Rendering of services – external parties - passport fees
355,404
 
349,029
Rendering of services – external parties - consular services
7,746
 
7,377
Nuclear safeguard charges - external parties
671
 
617
Total sale of goods and rendering services
363,991
 
357,126
 
 
Note 16B: Interest
NIA
3,869
 
4,560
Other
90
 
118
Total interest
3,959
 
4,678
 
 
 
 
Note 16C: Dividends
Australian Government entities - Export Finance and Insurance
226,839
 
30,194
Corporation (EFIC)
 
Total dividends
226,839
 
30,194
 
 
Note 16D: Other Revenue
NIA - repayment of interest subsidy and recoveries
15,894
 
20,876
NIA - premiums
7,686
 
5,261
Defined benefit pension schemes - contributions
2,922
 
3,256
Industry contributions/sponsorship
-
 
233
Refund of prior year expenses
10,210
 
11,627
Other
192
 
161
Total other revenue
36,904
 
41,414
 
 
Note 17: Administered - Financial Assets
 
 
 
 
FINANCIAL ASSETS
2013
 
2012
 
$'000
 
$'000
Note 17A: Cash and Cash Equivalents
Cash on hand or on deposit
134
 
191
Total cash and cash equivalents
134
 
191
 
 
Note 17B: Trade and Other Receivables
Goods and services:
 
Goods and services receivable - external parties *
46
 
5
Total receivables for goods and services
46
 
5
 
 
Advances and loans:
 
Other - Travellers Emergency Loans
1,288
 
1,448
Total advances and loans
1,288
 
1,448
 
 
Other receivables:
 
Related entities
476
 
408
GST receivable from the ATO
20
 
354
Dividend - Export Finance and Insurance Corporation (EFIC)
-
 
30,194
Passport fees, Passport Act fines and consular fees
1,778
 
1,784
Total other receivables
2,274
 
32,740
Total trade and other receivables (gross)
3,608
 
34,193
 
 
Less: impairment allowance account:
 
Advances and loans - Travellers Emergency Loans
(403)
 
(546)
Receivables - Passport Act fines
(31)
 
-
Total impairment allowance account
(434)
 
(546)
Total trade and other receivables (net)
3,174
 
33,647
 
 
Receivables are expected to be recovered in:
 
No more than 12 months
2,759
 
33,243
More than 12 months
415
 
404
Total trade and other receivables (net)
3,174
 
33,647
 
 
Receivables were aged as follows:
 
Not overdue
2,676
 
33,119
Overdue by:
 
0 to 30 days
11
 
10
31 to 60 days
2
 
9
61 to 90 days
5
 
2
More than 90 days
914
 
1,053
Total receivables (gross)
3,608
 
34,193
 
 
The impairment allowance account is aged as follows:
 
Not overdue
-
 
-
Overdue by:
 
0 to 30 days
-
 
-
31 to 60 days
-
 
-
61 to 90 days
-
 
(1)
More than 90 days
(434)
 
(545)
Total impairment allowance account
(434)
 
(546)
 
 
*Goods and services receivable are with entities external to the Australian Government.  Credit terms were within 30 days (2012: 30 days).
 
 
Reconciliation of the Impairment Allowance Account:
 
 
Movements in relation to 2013
 
 
Advances
Other
 
 
and loans
receivables
 
Total
 
$'000
$'000
 
$'000
Opening balance
(546)
-
 
(546)
Amounts impaired
(17)
(31)
 
(48)
Amounts recovered and reversed
160
-
 
160
Increase/decrease recognised in net surplus
-
-
 
-
Closing balance
(403)
(31)
 
(434)
 
 
Movements in relation to 2012
 
 
Advances
Other
 
 
and loans
receivables
 
Total
 
$'000
$'000
 
$'000
Opening balance
(553)
-
 
(553)
Amounts impaired
-
-
 
-
Amounts recovered and reversed
7
-
 
7
Increase/decrease recognised in net surplus
-
-
 
-
Closing balance
(546)
-
 
(546)
 
 
 
2013
 
2012
 
$'000
 
$'000
Note 17C: Investments Accounted for Using the Equity Method
 
Investments in associates:
 
Export Finance and Insurance Corporation (EFIC)
216,240
 
418,063
Total equity accounted investments
216,240
 
418,063
 
 
Investments in equity accounted investments are expected to be recovered in:  
No more than 12 months
-
 
-
More than 12 months
216,240
 
418,063
Total equity accounted investments
216,240
 
418,063
 
 
Details of investments accounted for using the equity method
 
 
 
Ownership
 
2013
 
2012
Name of entity
%
 
%
Associates:
 
Export Finance and Insurance Corporation (EFIC) 1
100
 
100
 
 
 
 
1 EFIC's principal activity is the provision of competitive finance and insurance services to Australian exporters and Australian companies investing in new projects overseas.
 
 
Summarised financial information of associates:
 
 
2013
 
2012
 
$'000
 
$'000
Balance sheet:
 
Assets
2,706,729
 
3,273,913
Liabilities
2,490,489
 
2,855,850
Net assets
216,240
 
418,063
Statement of comprehensive income:
 
Income
181,407
 
263,495
Expenses
158,854
 
236,656
Net surplus/(deficit)
22,553
 
26,839
 
 
Share of associates' net surplus/(deficit):
22,553
 
26,839
 
 
Dividends received from associates in 2013 included: 2011-12 dividend of $26.8 million and special dividend of $200 million paid in June 2013.  
 
 

Note 18: Administered - Non-Financial Assets
 
 
NON-FINANCIAL ASSETS
2013
 
2012
 
$'000
 
$'000
Note 18A - Prepayments:
 
Prepayments
-
 
1,650
Total prepayments
-
 
1,650
 
 
Prepayments - are expected to be recovered in:
 
No more than 12 months
-
 
1,650
More than 12 months
-
 
-
Total prepayments
-
 
1,650
 
 

Note 19: Liabilities Administered on Behalf of Government
 
 
PAYABLES
2013
 
2012
 
$'000
 
$'000
Note 19A: Suppliers
Trade creditors and accruals
293
 
1,209
Other
7
 
33
Total suppliers
300
 
1,242
 
 
Supplier payables expected to be settled within 12 months:
 
Related entities
-
 
-
External parties
300
 
1,242
Total suppliers
300
 
1,242
 
 
Settlement was usually made within 30 days (2012: 30 days).
 
 
Note 19B: Other Payables
NIA*
3,791
 
10,689
Unearned income - passports revenue
7,039
 
8,749
Defined benefit pension schemes - NAPS
36,430
 
33,327
Defined benefits pension schemes - Other
12,722
 
6,945
Total other payables
59,982
 
59,710
 
 
Total other payables are expected to be settled in:
 
No more than 12 months
897
 
11,345
More than 12 months
59,085
 
48,365
Total other payables
59,982
 
59,710
 
 
* Loans on the National Interest Account (NIA) are funded from the Commercial Account at fair value.  The  amount disclosed above reflects the Commonwealth's exposure on business undertaken on the NIA. It reflects the net amount of:
1) assets in the form of loans and rescheduled credit insurance debts to overseas governments, commitment fees on loans received by EFIC but not yet paid to the Commonwealth, bond premiums receivable from exporters; and
2) liabilities relating to the reimbursement to EFIC for debt forgiveness on loans, provision for unearned income on loan premiums, accrued expenses including EFIC administration fees and other creditors.
 
 
             
Defined Benefit Pension Schemes
2013
 
2012
 
$'000
 
$'000
The amounts recognised in the Balance Sheet are as follows:
 
Present value of funded obligations
40,029
 
31,020
Fair value of plan assets
(27,307)
 
(24,075)
 
12,722
 
6,945
Present value of unfunded obligations
36,430
 
33,327
Net liability in balance sheet
49,152
 
40,272
 
Movements in the net liability recognised in the Balance Sheet as follows:
Net liability at the start of the year 1
40,898
 
32,742
Exchange differences on foreign plans
3,380
 
1,538
Net expense recognised in the income statement
2,451
 
2,852
Net actuarial losses (gains)
5,133
 
6,155
Employer financing
(2,710)
 
(3,015)
Net liability at the end of the year
49,152
 
40,272
 
 
1Adjustment to 2013 Opening Balance:
A review of the New Delhi Gratuity Scheme was conducted in 2012-13 by Aon Hewitt. The review concluded that the Department had a liability for the 2011-12 financial year of INR 35,341,333 (AUD$625,340).  This amount was expensed and the opening balance of the net liability adjusted in the Department's 2012-13 accounts.
 
 
Reconciliation of opening and closing balance of the defined benefit obligation:
Opening liability
64,347
 
55,656
Adjustment for New Delhi scheme liabilities
196
 
69
Exchange differences on foreign plans
4,990
 
2,148
Service cost
1,180
 
1,552
Interest cost
2,861
 
3,034
Contributions by plan participants (funded schemes)
68
 
63
Actuarial (gains) and losses
6,179
 
5,406
Benefits paid
(3,362)
 
(3,581)
Closing liability
76,459
 
64,347
 
 
Reconciliation of opening and closing balance of the fair value of plan assets:
Opening assets
24,075
 
22,914
Adjustment for New Delhi Scheme assets
(429)
 
69
Exchange differences on foreign plans
1,610
 
610
Expected return on plan assets
1,590
 
1,733
Contributions by plan participants (funded schemes)
68
 
63
Contributions by employer
468
 
427
Actuarial gains and (losses)
1,046
 
(749)
Benefits paid
(1,121)
 
(992)
Closing assets
27,307
 
24,075
 
 
The amounts recognised in the Income Statement are as follows:
 
Current service cost
1,180
 
1,552
Interest on obligation
2,861
 
3,034
Expected return on plan assets
(1,590)
 
(1,733)
Past service cost
 
Losses (gains) on curtailments and settlements
 
Total included in 'employee benefit expense account'
2,451
 
2,853
 
 
Amounts recognised directly in administered equity
 
Financial year ended
2013
$'000
 
2012
$'000
Actuarial Gains (Losses)
(5,133)
 
(6,155)
 
 
Cummulative amounts of gains and losses recognised in administered equity
Financial year ended
2013
$'000
 
2012
$'000
Actuarial Gains (Losses)
(21,850)
 
(16,717)
 
 
Pension Scheme Assets
 
The fair value of scheme assets is represented by:
 
Financial year ended
2013
 
2012
UK equities
0.0%
 
0.0%
Overseas equities
0.0%
 
0.0%
Long dated UK corporate bonds
13.7%
 
15.6%
Long dates UK Gilts
10.9%
 
10.1%
Cash
0.3%
 
0.3%
Insured Pensioner
1.9%
 
2.0%
Investment in LIC India
0.4%
 
2.6%
Diversified Growth Fund
72.8%
 
69.4%
 
 
Fair Value of pension scheme assets
The fair value of scheme assets does not include amounts relating to:
* any of the Department's (and the Australian Government's) own financial instruments; and
* any property occupied by, or other assets used by the Department (or the Australian Government)
 
 
Expected return on pension schemes assets
The expected return on assets is  based on the weighted average of the London and New Delhi scheme asset balances applied to the discount rate for both schemes.
 
 
Actual return on scheme assets
 
Financial year ended
2013
$'000
 
2012
$'000
Actual return on scheme assets
2,636
 
984
Actual return on scheme assets as a percentage
11%
 
4%
 
 
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
Financial year ended
2013
 
2012
Discount rate at 30 June
3.85%
 
4.25%
Expected return on assets at 30 June
3.82%
 
3.07%
Salary growth
3.28%
 
3.12%
Pension growth
2.92%
 
1.09%
 
 
Historical Information
 
Financial year ended
2013
$'000
2012
$'000
2011
$'000
2010
$'000
 
2009
$'000
Present value of defined benefit obligations
(76,459)
(64,347)
(55,656)
(64,981)
 
(60,950)
Fair value of scheme assets
27,307
24,075
22,914
24,648
 
21,484
Surplus / (deficit) in the scheme
(49,152)
(40,272)
(32,742)
(40,333)
 
(39,466)
Actuarial gains (losses) - net liabilities
(5,133)
(6,155)
28
(3,414)
 
(4,629)
Effect of exchange rate gains (losses)
(3,380)
(1,538)
7,134
2,604
 
(5,237)
 
 
Expected Employer Contributions
 
Financial year ended
2014
$'000
 
2013
$'000
Expected employer contributions1
2,831
 
902
1 This represents the employer contributions, which are paid into the schemes fund
 
Scheme Information
The Department administers on behalf of the Australian Government, defined benefit pension schemes for locally engaged staff at posts in London and New Delhi, and also the North American Pension Scheme. All schemes, with the exception of the New Delhi Gratuity Scheme, have been closed to new employees and provide pensions that are linked to final salaries.  Figures disclosed are based on formal actuarial reviews that are generally conducted triennially and reviewed and updated by the actuary on an annual basis.  The New Delhi and London schemes are partially funded and the North American Pension Scheme is fully unfunded.  Contributions for the North American Scheme are made to the Consolidated Revenue Fund which will provide funding for benefits payable under the scheme.
 
 
Note 20: Administered - Cash Flow Reconciliation
 
 
 
2013
 
2012
 
$'000
 
$'000
Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement
 
 
 
Cash and cash equivalents as per:
 
Schedule of administered cash flows
134
 
191
Schedule of administered assets and liabilities
134
 
191
Difference
-
 
-
 
 
Reconciliation of net cost of services to net cash from operating activities:
       
Net cost of services
353,376
 
153,862
 
 
Adjustments for non-cash items
 
Administered revaluations taken to/from reserves
(201,823)
 
9,981
Actuarial gains/losses taken to/from reserves
(5,133)
 
(6,155)
 
 
Changes in assets / liabilities
 
(Increase) / decrease in net receivables
30,473
 
(31,081)
(Increase) / decrease in investments
201,823
 
(9,981)
(Increase) / decrease in prepayments
1,650
 
(37)
Increase / (decrease) in supplier payables
(942)
 
910
Increase / (decrease) in other payables (NIA)
(6,898)
 
(10,372)
Increase / (decrease) in other payables pensions
8,880
 
7,530
Increase / (decrease) in other payables
(1,710)
 
(2,095)
Net cash from (used by) operating activities
379,696
 
112,562