Financial statements

Department of Foreign Affairs and Trade

Statement of Comprehensive Income

for the period ended 30 June 2019

Net cost of services
	Notes	2019 $’000	2018 $’000	Original Budget $’000
Expenses
Employee benefits	1.1A	853,458	797,532	782,360
Suppliers	1.1B	727,856	694,351	718,166
Depreciation and amortisation	3.2A	195,539	187,155	181,778
Impairment loss allowance on financial instruments	1.1C	9	197	-
Write-down and impairment of other assets	1.1D	5,100	7,923	-
Grants and other contributions		11,197	9,052	-
Finance costs		383	314	-
Other expenses	1.1E	3,903	-	-
Total expenses		1,797,445	1,696,524	1,682,304

Own-Source Income
Own-source revenue
Sale of goods and rendering of services	1.2A	147,318	138,918	142,514
Other revenue	1.2B	9,414	6,548	11,258
Total own-source revenue		156,732	145,466	153,772

Gains
Gains from sale of assets		303	132,863	-
Other gains	1.2C	2,543	3,627	674
Foreign exchange gains - non-speculative		5,143	5,546	-
Total gains		5,143	142,036	674
Total own-source income		164,721	287,502	154,446
Net (cost of) services		(1,632,724)	(1,409,022)	(1,527,858)

Revenue from Government - departmental appropriations		1,439,258	1,355,169	1,406,137
(Deficit) from continuing operations		(193,466)	(53,853)	(121,721)

Other Comprehensive Income
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus		220,517	220,427	-
Total other comprehensive income		220,517	220,427	-

Total comprehensive income / (loss)		27,051	166,574	(121,721)

The above statement should be read in conjunction with the accompanying notes.

Department of Foreign Affairs and Trade

Statement of Financial Position

for the period ended 30 June 2019

Assets
	Notes	2019 $’000	2018 $’000	Original Budget $’000
Financial assets
Cash and cash equivalents	3.1A	430,643	405,943	366,424
Trade and other receivables	3.1B	504,542	525,662	559,111
Total financial assets		935,185	931,605	925,535

Non-financial assets
Land	3.2A	1,973,538	1,821,170	1,602,696
Buildings	3.2A	1,518,846	1,513,100	1,536,588
Plant and equipment	3.2A	304,239	280,895	311,868
Intangibles	3.2A	124,714	120,134	124,240
Inventories	3.2B	40,228	46,383	47,118
Assets held for sale		19,618	–	–
Assets held for sale	3.2C	62,218	66,258	61,662
Total non-financial assets		4,043,401	3,847,940	3,684,172
Total assets		4,978,586	4,779,545	4,609,707

Liabilities
Payables
Suppliers	3.3A	128,841	108,013	152,738
Other payables	3.3B	59,747	56,305	34,887
Total payables		188,588	164,318	187,625

Provisions
Employee provisions	6.1A	274,081	228,829	217,854
Other provisions	3.4A	25,385	17,810	19,794
Total provisions		299,466	246,639	237,648
Total liabilities		488,054	410,957	425,273

Net assets		4,490,532	4,368,588	4,184,434

Equity
Contributed equity		2,720,540	2,618,447	2,730,073
Asset revaluation reserve		1,956,346	1,735,829	1,515,402
(Accumulated deficit) / retained surplus		(186,354)	14,312	(61,041)
Total equity		4,490,532	4,368,588	4,184,434

The above statement should be read in conjunction with the accompanying notes.

Department of Foreign Affairs and Trade

Statement of Changes in Equity

for the period ended 30 June 2019

Opening balance
	Retained Earnings			Asset Revaluation Reserve			Contributed Equity			Total Equity
	2019 $’000	2018 $’000	Original Budget $’000	2019 $’000	2018 $’000	Original Budget $’000	2019 $’000	2018 $’000	Original Budget $’000	2019 $’000	2018 $’000	Original Budget $’000
Balance carried forward from previous period	14,312	68,165	67,880	1,735,829	1,515,402	1,515,402	2,618,447	2,520,217	2,638,126	4,368,588	4,103,784	4,221,408
Adjusted opening balance	14,312	68,165	67,880	1,735,829	1,515,402	1,515,402	2,618,447	2,520,217	2,638,126	4,368,588	4,103,784	4,221,408

Comprehensive income
Revaluation adjustment	–	–	–	225,846	221,457	–	–	–	–	225,846	221,457	–
Makegood revaluation adjustment	–	–	–	(5,329)	(1,030)	–	–	–	–	(5,329)	(1,030)	–
(Deficit) for the period	(193,466)	(53,853)	(121,721)	–	–	–	–	–	–	(193,466)	(53,853)	(121,721)
Total comprehensive income	(193,466)	(53,853)	(121,721)	220,517	220,427	–	–	–	–	27,051	166,574	(121,721)

Transactions with owners
Distribution to owners
Returns on / of capital:
Dividends	(7,200)	–	(7,200)	–	–	–	–	–	–	(7,200)	–	(7,200)
Departmental equity returns	–	–	–	–	–	–	(59,155)	(13,851)	–	(59,155)	(13,851)	–
Contributions by owners
Equity injection - Appropriations	–	–	–	–	–	–	101,121	65,580	22,182	101,121	65,580	22,182
Departmental capital budget	–	–	–	–	–	–	60,127	46,501	69,765	60,127	46,501	69,765
Total transactions with owners	(7,200)	–	(7,200)	–	–	–	102,093	98,230	91,947	94,893	98,230	84,747
Closing balance as at 30 June	(186,354)	14,312	(61,041)	1,956,346	1,735,829	1,515,402	2,720,540	2,618,447	2,730,073	4,490,532	4,368,588	4,184,434

Accounting Policy

Equity Injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

2018-19 includes a quarantined amount of $3.016m (2018: $5.829m) relating to no-win / no-loss for Security Funding Agreements

Departmental Equity Returns
Lapsed appropriations are recognised as departmental equity returns. This amount represents prior year appropriations, which have been repealed in the Appropriation Act (No. 4) 2017-18.

Departmental Capital Budget
2018-19 includes $9.638m withheld under section 51.

Dividends
2018-19 includes a transfer of $7.2m from Overseas Property Office special account to the consolidated revenue fund.

Department of Foreign Affairs and Trade

Cash Flow Statement

for the period ended 30 June 2019

Operating Activities
	Notes	2019 $’000	2018 $’000	Original Budget $’000
Cash received
Appropriations		1,595,586	1,586,806	1,398,707
Sale of goods and rendering of services		135,956	135,453	152,808
GST received		37,901	40,598	41,088
Other		8,320	6,407	11,258
Total cash received		1,777,763	1,769,264	1,603,861
Cash used
Employees		825,095	794,026	780,170
Suppliers		723,143	778,804	763,634
Section 74 receipts transferred to OPA		114,931	157,224	–
Other		15,971	9,052	–
Total cash used		1,679,140	1,739,106	1,543,804
Net cash from operating activities		98,623	30,158	60,057

Investing Activities
Cash received
Proceeds from sales of property, plant and equipment		864	243,292	–
Total cash received		864	243,292	–
Cash used
Purchase of land and buildings		89,868	74,579	125,044
Purchase of plant and equipment		55,498	58,076	35,534
Purchase and development of intangibles		31,491	20,521	14,628
Total cash used		176,857	153,176	175,206
Net cash (used by) / from investing activities		(175,993)	90,116	(175,206)

Financing Activities
Cash received
Contributed equity		104,127	101,720	97,493
Total cash received		104,127	101,720	97,493
Cash used
Dividends paid		7,200	–	7,200
Total cash used		7,200	–	7,200
Net cash from financing activities		96,927	101,720	90,293

Net increase / (decrease) in cash held		19,557	221,994	(24,856)
Cash and cash equivalents at the beginning of the reporting period		405,943	178,403	391,280
Effect of exchange rate movements on cash and cash equivalents at the beginning of the reporting period		5,143	5,546	–
Cash and cash equivalents at the end of the reporting period	3.1A	430,643	405,943	366,424

The above statement should be read in conjunction with the accompanying notes.

Department of Foreign Affairs and Trade

Administered Schedule of Comprehensive Income

for the period ended 30 June 2019

Net Cost of Services
	Notes	2019 $’000	2018 $’000	Original Budget $’000

Expenses
International development assistance	2.1A	3,205,464	3,067,706	3,217,811
Multilateral replenishments and other loans	2.1B	254,833	99,664	93,000
Other grants and contributions	2.1C	454,965	418,422	523,422
Export Finance and Insurance Corporation (Efic)		1,365	1,349	1,300
Impairment loss allowance on financial instruments	2.1D	242	728	–
Other expenses	2.1E	10,617	10,048	3,799
Payments to corporate Commonwealth entities - Tourism Australia		135,141	129,308	132,488
Depreciation and amortisation	4.2A	847	985	500
Total expenses		4,063,474	3,728,210	3,972,320

Income
Fees and charges	2.2A	559,992	538,985	607,410
Multilateral replenishments and other loans	2.2B	12,697	401,181	12,697
Efic National Interest Account (NIA)	2.2C	35,513	33,653	30,751
Efic dividend and competitive neutrality	2.2D	15,023	13,122	14,800
Return of prior year administered expenses	2.2E	19,259	56,925	33,478
Other revenue and gains	2.2F	4,605	4,925	255
Total income		647,089	1,048,791	699,391

Net cost of services		(3,416,385)	(2,679,419)	(3,272,929)

Other Comprehensive Income
Items not subject to subsequent reclassification to net cost of services
Re-measurements of defined benefit plans		(5,309)	6,414	–
Items subject to subsequent reclassification to net cost of services
Re-measurements of multilateral subscriptions		150,987	–	–
Movement in the carrying amount of investments		95,127	(6,191)	–
Total other comprehensive income		240,805	223	–
Total comprehensive (loss)		(3,175,580)	(2,679,196)	(3,272,929)

Department of Foreign Affairs and Trade

Administered Schedule of Assets and Liabilities

for the period ended 30 June 2019

Assets
	Notes	2019 $’000	2018 $’000	Original Budget $’000
Financial assets
Cash and cash equivalents	4.1A	41,796	2,592	12,162
Trade and other receivables	4.1B	190,146	192,342	32,967
Investments	4.1C	3,006,238	2,756,164	2,526,457
Total financial assets		3,238,180	2,951,098	2,571,586
Non-financial assets
Leasehold improvements	4.2A	–	–	81
Plant and equipment	4.2A	–	19	27
Computer software internally developed	4.2A	2,675	3,046	3,512
Prepayments		181	64	128
Total non-financial assets		2,856	3,129	3,748
Total assets administered on behalf of Government		3,241,036	2,954,227	2,575,334

Liabilities
Payables
Grants	4.3A	930,179	1,110,323	1,796,954
Other payables	4.3B	631,120	759,933	284,049
Total payables		1,561,299	1,870,256	2,081,003
Provisions
Employee provisions	6.1B	86,943	79,611	82,253
Total provisions		86,943	79,611	82,253
Total liabilities administered on behalf of Government		1,648,242	1,949,867	2,163,256

Net assets		1,592,794	1,004,360	412,078

Department of Foreign Affairs and Trade

Administered Reconciliation Schedule

for the period ended 30 June 2019

Net (cost of) / contribution by services
	2019 $’000	2018 $’000

Opening assets less liabilities as at 1 July	1,004,360	288,239

Income	647,089	1,048,791
Expenses
Payments to entities other than corporate Commonwealth entities	(3,928,333)	(3,598,902)
Payments to corporate Commonwealth entities - Tourism Australia	(135,141)	(129,308)

Other comprehensive income
Movement in the carrying amount of investments	95,127	(6,191)
Movement in the carrying amount of multilateral subscriptions	150,987	–
Actuarial (losses) / gains on defined benefit plans	(5,309)	6,414

Transfers (to) / from the Australian Government
Appropriation transfers from OPA
Administered assets and liabilities appropriations	–	135,933
Annual appropriations
Payments to entities other than corporate Commonwealth entities	4,376,986	3,918,176
Payments to corporate Commonwealth entities - Tourism Australia	135,141	129,308
Special accounts
Payments to entities other than corporate Commonwealth entities	24,677	16,347
Special appropriations (unlimited)
Payments to entities other than corporate Commonwealth entities	1,054	715
Appropriation transfers to OPA
Transfers to OPA	(773,844)	(805,162)
Closing assets less liabilities as at 30 June	1,592,794	1,004,360

Accounting policy

Administered cash transfers to and from the Official Public Account

Revenue collected by DFAT on behalf of the Government is administered revenue. Collections are transferred to the OPA maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the OPA are adjustments to the administered cash held by DFAT on behalf of the Government and reported as such in the Administered Cash Flow Statement and in the Administered Reconciliation Schedule.

Payments to corporate Commonwealth entities

Payments to corporate Commonwealth entities from amounts appropriated for that purpose are classified as administered expenses, equity injections or loans of the relevant portfolio department. The appropriation to DFAT is disclosed in Note 5.1A: Annual Appropriations (‘Recoverable GST exclusive’).

Department of Foreign Affairs and Trade

Administered Cash Flow Statement

for the period ended 30 June 2019

Operating Activities
	Notes	2019 $’000	2018 $’000
Cash received
Fees and charges		561,832	532,713
GST received		137,915	103,769
Return of prior year administered expenses		19,259	56,925
Efic dividend		6,941	5,791
Efic competitive neutrality		8,082	7,331
Efic - NIA		32,422	30,927
Other		3,431	3,743
Total cash received		769,882	741,199
Cash used
International development assistance		3,755,726	3,356,812
Other contributions		454,965	418,422
Payments to corporate Commonwealth entities - Tourism Australia		135,141	129,308
Other		3,641	3,350
Total cash used		4,349,473	3,907,892
Net cash (used by) operating activities		(3,579,591)	(3,166,693)

Investing Activities
Cash received
Proceeds from concessional financial instruments		9,751	9,752
Total cash received		9,751	9,752
Cash used
Purchase of intangibles		457	382
Purchase of concessional financial instruments		154,513	247,564
Total cash used		154,970	247,946
Net cash (used by) investing activities		(145,219)	(238,194)

Net (decrease) in cash held		(3,724,810)	(3,404,887)

Cash and cash equivalents at the beginning of the reporting period		2,592	12,162
Cash from Official Public Account
Purchase of concessional financial instruments		4,513,181	4,184,132
Special accounts		24,677	16,347
Total cash from official public account		4,537,858	4,200,479
Cash to Official Public Account
Appropriations		(773,844)	(805,162)
Total cash to official public account		(773,844)	(805,162)

Cash and cash equivalents at the end of the reporting period	4.1A	41,796	2,592