Department of Foreign Affairs and Trade
Notes to and Forming Part of the Financial Statements

Note 11: Restructuring

Note 11A: Departmental Restructuring
         
  2014
  International development and aid1
  DFAT AusAID DFAT AusAID
  Assumed2 Relinquished2 Assumed Relinquished
  1 Jul 2013 1 Jul 2013 31 Oct 2013 31 Oct 2013
  $’000 $’000 $’000 $’000
Assets recognised/relinquished
Financial assets
    Cash and cash equivalents 1,016 1,016 206 206
    Trade and other receivables 87,389 87,389 111,241 111,241
Total financial assets 88,405 88,405 111,447 111,447
Non-financial assets
   Leasehold improvements 35,518 35,518 34,475 34,475
   Property, plant and equipment 26,718 26,718 23,887 23,887
   Intangibles 6,793 6,793 7,219 7,219
   Other non-financial assets 10,959 10,959 13,487 13,487
Total non-financial assets 79,988 79,988 79,068 79,068
Total assets recognised/relinquished 168,393 168,393 190,515 190,515
 
Liabilities recognised/relinquished
Payables
   Suppliers 19,749 19,749 12,224 12,224
   Other payables 13,713 13,713 8,991 8,991
Total payables 33,462 33,462 21,215 21,215
Provisions
    Employee provisions 54,781 54,781 53,858 53,858
    Other provisions 2,902 2,902 6,047 6,047
Total provisions 57,683 57,683 59,905 59,905
Total liabilities recognised/relinquished 91,145 91,145 81,120 81,120
Net assets recognised/relinquished2 77,248 77,248 109,395 109,395
 
Income assumed
    Recognised by the receiving entity 357,096 237,260
    Recognised by the losing entity – 119,836
Total income 357,096 357,096
Expenses assumed
    Recognised by the receiving entity 337,349 222,895
    Recognised by the losing entity – 114,454
Total expenses 337,349 337,349
         
1. The international development and aid function was assumed from AusAID due to the Administrative Arrangements Order issued on 18 September 2013, which integrated the activities of AusAID with the department. AusAID ceased to be an entity on 1 November 2013.
2. For the purposes of these financial statements the activities of this function are fully consolidated with DFAT from 1 July 2013. The figures as at 1 July 2013 assumed by DFAT and relinquished by AusAID represent the assets and liabilities of AusAID as at 30 June 2013. All income and expenses attributable to this function are reported as part of DFAT in 2013-14. The net assets of AusAID as at 30 June 2013 were $77,247,944. The net book value of assets and liabilities were transferred and consolidated with DFAT for no consideration.
         
There have been no departmental restructures of administrative arrangements affecting DFAT in 2014-15.
         
  2014
  International climate change & tourism industry functions assumed from Department of Industry3,5 Tourism industry (international policy) functions assumed from Department of Resources, Energy and Tourism4,5
  $’000 $’000
FUNCTION ASSUMED
Assets recognised
Financial assets
    Trade and other receivables 57 87
Total financial assets 57 87
Non-financial assets
   Property, plant and equipment 51 –
Total non-financial assets 51 –
Total assets recognised 108 87
 
Liabilities recognised
Provisions
    Employee provisions 1,256 87
Total provisions 1,256 87
Total liabilities recognised 1,256 87
Net (liabilities) assumed6 ( 1,148) –
 
Income assumed
    Recognised by the receiving entity 18,505 134
    Recognised by the losing entity 2,669 253
Total income 21,174 387
Expenses assumed
    Recognised by the receiving entity 1,206 138
    Recognised by the losing entity 2,669 253
Total expenses 3,875 391
3. The international climate change and tourism industry functions were assumed from the Department of Industry during 2013-14 due to the Administrative Arrangements Order issued on 18 September 2013, which transferred responsibility for the functions to DFAT. Appropriations related to this function were transferred at 2013-14 Additional Estimates, including $14,232,000 of departmental funding for tourism grants. The department subsequently received administered funding for the tourism grants, however the departmental appropriation remains legal and the funding has been recorded as revenue as per the FRRs (formerly FMOs).
4. The tourism industry (international policy) function was assumed from the Australian Trade Commission during 2013-14 due to amendments to the Administrative Arrangements Order issued on 3 October 2013, which transferred responsibility for the function to DFAT. The former Department of Resources, Energy and Tourism (DRET) was originally responsible for this function. The function was transferred to the Australian Trade Commission due to the Administrative Arrangements Order issued on 18 September 2013 before being transferred to DFAT. The transfer of functions however was treated as coming directly from DRET for accounting purposes.
5. The net liabilities assumed from both entities was $1,148,177. In respect of functions assumed, the net book values of assets and liabilities were transferred to the department for no consideration.
There have been no departmental restructures of administrative arrangements affecting DFAT in 2014-15.

 

Note 11B: Administered Restructuring
2014
International development and aid1
DFAT AusAID DFAT AusAID
Assumed2 Relinquished2 Assumed Relinquished
1 Jul 2013 1 Jul 2013 31 Oct 2013 31 Oct 2013
$’000 $’000 $’000 $’000
Assets recognised/relinquished
Financial assets
    Cash and cash equivalents 24,571 24,571 582 582
    Loans and receivables 117,410 117,410 115,210 115,210
    Investments 1,493,609 1,493,609 1,493,609 1,493,609
Total financial assets 1,635,590 1,635,590 1,609,401 1,609,401
Non-financial assets
    Leasehold improvements 2,625 2,625 2,434 2,434
    Property, plant and equipment 951 951 26 26
    Intangibles 6,110 6,110 5,760 5,760
    Other non-financial assets 2,381 2,381 1,418 1,418
Total non-financial assets 12,067 12,067 9,638 9,638
Total assets recognised/relinquished 1,647,657 1,647,657 1,619,039 1,619,039
Liabilities recognised
Payables
    Suppliers 1,143,571 1,143,571 992,219 992,219
    Grants 492,252 492,252 434,654 434,654
Total Payables 1,635,823 1,635,823 1,426,873 1,426,873
Provisions
    Employee provisions 11,342 11,342 10,660 10,660
    Other provisions 58 58 13 13
Total Provisions 11,400 11,400 10,673 10,673
Total liabilities recognised/relinquished 1,647,223 1,647,223 1,437,546 1,437,546
Net assets recognised/relinquished2 434 434 181,493 181,493
 
Income assumed
    Recognised by the receiving entity 111,486 100,091
    Recognised by the losing entity – 11,395
Total Income 111,486 111,486
Expenses assumed
    Recognised by the receiving entity 4,287,042 3,168,679
    Recognised by the losing entity – 1,118,363
Total expenses 4,287,042 4,287,042
1. The international development and aid function was assumed from AusAID due to the Administrative Arrangements Order issued on 18 September 2013, which integrated the activities of AusAID with the department. AusAID ceased to be an entity on 1 November 2013.
2. For the purposes of these financial statements the activities of this function are fully consolidated with DFAT from 1 July 2013. The figures as at 1 July 2013 assumed by DFAT and relinquished by AusAID represent the assets and liabilities of AusAID as at 30 June 2013. All income and expenses attributable to this function are reported as part of DFAT in 2013-14. The net assets of AusAID as at 30 June 2013 were $434,000. The net book value of assets and liabilities were transferred and consolidated with DFAT for no consideration.
There have been no administered restructures of administrative arrangements affecting DFAT in 2014-15.
    2014
    International climate change and tourism industry functions assumed from Department of Industry3,5 Tourism industry (international policy) functions assumed from Department of Resources, Energy and Tourism4,5
    $’000 $’000
FUNCTIONS ASSUMED
Assets recognised
Financial assets
    Investments     22,447 –
Total financial assets     22,447 –
Total assets recognised     22,447 –
Net Assets assumed5     22,447 –
Expenses
    Recognised by the receiving entity     11,560 –
    Recognised by the losing entity     14,622 –
Total expenses     26,182 –
     
3. The international climate change and tourism industry functions were assumed from the Department of Industry during 2013-14 due to the Administrative Arrangements Order issued on 18 September 2013, which transferred responsibility for the functions to DFAT. Appropriations related to this function were transferred at 2013-14 Additional Estimates, including $14,232,000 of departmental funding for tourism grants. The department subsequently received administered funding for the tourism grants, however the departmental appropriation remains legal and the funding has been recorded as revenue as per the FMOs.
4. The tourism industry (international policy) function was assumed from the Australian Trade Commission during 2013-14 due to amendments to the Administrative Arrangements Order issued on 3 October 2013, which transferred responsibility for the function to DFAT. The former Department of Resources, Energy and Tourism (DRET) was originally responsible for this function. The function was transferred to the Australian Trade Commission due to the Administrative Arrangements Order issued on 18 September 2013 before being transferred to DFAT. No administered functions were transferred in relation to the tourism policy function.
5. The net liabilities assumed from both entities was $22,447,000. In respect of functions assumed, the net book values of assets and liabilities were transferred to the department for no consideration.