Human Rights and Equal Opportunity Commission Annual Report 2000-2001
Human Rights and Equal Opportunity Commission Statement of Financial Performance for the period ended 30 June 2001
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Human Rights and Equal Opportunity Commission
Statement of Financial Performance
2000-01 $
1999-2000 $
Revenues from ordinary activities
Human Rights and Equal Opportunity Commission
Statement of Financial Position as at 30 June 2001
ASSETS 1999-00 $
Financial assets
Cash Receivables Total financial assets a Non-financial assets a a Infrastructure, plant and equipment Intangibles Other Total non-financial assets aa LIABILITIES Debt Other Total debt a Provisions Capital use charge Employees Total provisions a Payables Suppliers Other Total payables Total liabilities a EQUITY Capital Reserves Accumulated deficits Total equity a Current liabilities Non-current liabilities Current assets Non-current assets The above schedules should be read in conjunction with the accompanying notes.
Human Rights and Equal Opportunity Commission
Statement of Cash Flows for the period ended 30 June 2001
OPERATING ACTIVITIES Notes Cash received - Appropriations for outputs - Sales of goods and services - Interest - GST refunds - Total cash received - a a Cash used a Employees a Suppliers a Total cash used a Net cash from operating activities 10 a a INVESTING ACTIVITIES a Cash received a Proceeds from sales of property, plant and equipment a Total cash received a a a Cash used a Purchase of infrastructure, plant and equipment a Total cash used a Net cash used by investing activities a a a Net increase in cash held a Cash at the beginning of the reporting period a Cash at the end of the reporting period a
The above schedules should be read in conjunction with the accompanying notes.
Human Rights and Equal Opportunity Commission
Schedule of Commitments as at 30 June 2001
OTHER COMMITMENTS
Operating leases
Other commitments Total other commitments a COMMITMENTS RECEIVABLE Net commitments a BY MATURITY All net commitments
One year or less From one to five years Over five years Net commitments a Operating Lease Commitments One year or less From one to five years Over five years Commitments
Schedule of Contingencies as at 30 June 2001
CONTINGENT LOSSES a Total contingent losses - CONTINGENT GAINS - Total contingent gains - Net contingencies -
At 30 June the Commission recognised no contingent losses or gains. The contingent loss noted in 1999-00 was
realised in 2000-01 and is included in Suppliers expense.Schedule of Unquantifiable Contingencies
As at 30 June 2001, the Commission was named as the respondent in three applications for special leave in the
High Court which are yet to be heard, a number of matters before the Federal Court of Australia and a matter before the District Court of South Australia. It is not possible to estimate the amounts of the eventual payments that may be required in relation to these claims, though it is not common for costs to be awarded against the Commission in these matters.
The Commission has also intervened in three matters since June 2000. Although it is technically possible that a cost order could be made against the Commission in one of these matters, such an order is unlikely.
The above schedules should be read in conjunction with the accompanying notes.Human Rights and Equal Opportunity Commission Notes to and forming part of the Financial Statements
for the year ended 30 June 2001Note 1 - Objectives of the Human Rights and Equal Opportunity Commission
The Commission has one outcome:
"An Australian society in which the human rights of all are respected, protected and promoted ".
The Commission's objective is to ensure that Australians:
- have access to independent human rights complaint handling and public inquiries processes; and
- benefit from human rights education, promotion, monitoring and compliance activities.
Note 2 - Summary of significant accounting policies
2.1 Basis of Accounting
The financial statements are required by section 49 of the Financial Management and Accountability Act 1997
and are a general purpose financial report.The statements have been prepared in accordance with:
- Schedule 1 of the Financial Management and Accountability (Financial Statements 2000-01) Orders made by the Finance Minister for the preparation of Financial Statements in relation to financial years ending on 30 June 2001;
- Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Boards;
- other authoritative pronouncements of the Boards; and
- the Consensus Views of the Urgent Issues Group.
The statements have been prepared having regard to:
- Statements of Accounting Concepts;
- the Explanatory Notes to Schedule 1, and Guidance Notes issued by the Department of Finance and Administration.
The Agency Statements of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
Assets and liabilities are recognised in the Commission's Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionally unperformed are however not recognised unless required by an Accounting Standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies.
Revenues and expenses are recognised in the Agency Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.
The continued existence of the Commission in its present form, and with its present functions, is dependent on Government policy and on continuing appropriations by Parliament for the Commission's administration and functions.
2.2 Changes in Accounting Policy
Changes in accounting policy have been identified in this note under their appropriate headings.
The accounting policies used in the preparation of these financial statements are consistent with those used
in 1999-2000.2.3 Agency and Administered items
The Commission has no administered items.
2.4 Reporting by Outcomes
A comparison of Budget and Actual figures by outcome specified in the Appropriation Acts relevant to the Agency is presented in Note 17. The net cost to Budget outcomes shown includes intra-government costs that are eliminated in calculating the actual budget outcome for the Government overall.
2.5 Revenues from government
Revenues from government are revenues relating to the core operating activities of the Commission.
Policies for accounting for revenue from government follow; amounts and other details are given in Note 3.1.
(a) Revenues from Government - Agency Appropriations
Appropriations to the Commission for its departmental outputs are recognised as revenue to the extent that they have been received into the Commission's Bank account or are entitled to be received by the Commission at year end.
(b) Resources Received Free of Charge
Services received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
(c) Other Revenue
Revenue from the sale of goods is recognised upon delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established. Revenue from disposal of non-current assets is recognised when control of the asset has passed to the buyer.
Agency revenue from the rendering of a service is recognised by reference to the stage of completion of contracts or other agreements to provide services to Commonwealth bodies. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.
2.6 Employee entitlements
(a) Leave
The liability for employee entitlements includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Commission is estimated to be less than the annual entitlement for sick leave.
The liability for annual leave and current long service leave reflects the value of total leave entitlements of all employees at 30 June 2001 and is recognised at the nominal amount.
The non-current proportion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2001. In determining the present value of the liability, the Commission has taken into account attrition rates and pay increases through promotion and inflation.
(b) Separation and redundancy
Provision is made for separation and redundancy payments in circumstances where the Commission has formally identified positions as excess to requirements and a reliable estimate of the amount of the payments can be determined.(c) Superannuation
Staff of the Commission contribute to the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). Employer contributions amounting to $540,261 (1999-00:$730,948) in relation to these schemes have been expended in these financial statements.
No liability for superannuation is recognised as at 30 June as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth, except for that component at Note 8.1 which recognises only those employer contributions accrued in 2000-01 and paid in the subsequent year.
Employer Superannuation Productivity Benefit contributions totalled $107,398.64 (1999-00: $140,482).
2.7 Leases
A distinction is made between finance leases which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains all such risks and benefits. All leases entered into by the Commission have been classified as Operating Leases and lease payments are treated as expenses in the reporting period in which they are incurred.
Operating lease rentals as shown in Note 4.2 represent actual rental expense for the year adjusted for the impact of lease incentives. Calculations are in accordance with mandatory reporting requirements.
Lease incentives taking the form of 'free' leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.
The lease incentive recognised as a result is amortised over the lease term by allocating a portion of the rent expense against the current balance. Fixed assets that are recognised are depreciated over the term of the lease.
2.8 Unearned Revenue
As at 30 June the Commission recognised payments for services under contract, for which costs have not yet beenincurred, as unearned revenue. In the event of the services not being performed the moneys would have to be repaid.
2.9 Cash
Cash includes notes and coins held and any deposits held at call with a bank or financial institution.
2.10 Financial Instruments
Accounting policies for financial instruments are stated at Note 16.
2.11 Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring arrangements.
In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency's accounts immediately prior to restructuring.
2.12 Disposal of Assets
Assets disposed are at the end of their useful lives, or are technically obsolete or have been found
to be un-economic to repair.
2.13 Transfer of assets
Assets have been relinqushed as a consequence of restructuring arrangements, at the amounts at which they were recognised in the Commission's accounts immediately prior to restructuring.
2.14 Property, plant and equipment
Asset recognition threshold
All depreciable non-current assets with historical cost equal to or in excess of $2,000 are capitalised in the
year of acquisition and included on the Commission's Asset Register. Except where stated all plant and
equipment is valued at historical cost.
Revaluations
Infrastructure, plant and equipment are revalued progressively in accordance with the 'deprival' method of valuation in successive 3-year cycles, so that no asset has a value greater than three years old. The current cycles commenced in 1998-99. All assets on hand at the commencement of the cycle will be revalued in 2001-02.
Assets in each class acquired after the commencement of the progressive revaluation cycle are not captured by the progressive revaluation then in progress.
The Commission recognises infrastructure, plant and equipment at its depreciated replacement cost.Any assets which would not be replaced or are surplus to the requirements are valued at net realisable value. At 30 June 2001, the Commission had no assets in this situation. All valuations are independent.
Recoverable amount test
Schedule 1 requires the application of the recoverable amount test to departmental non-current assets in
accordance with AAS 10 Recoverable Amount of Non-Current Assets. The carrying amounts of these
non-current assets have been reviewed to determine whether they are in excess of their recoverable
amounts. In assessing recoverable amounts, the relevant cash flows have been discounted to their present
value.
Depreciation and Amortisation
Depreciation is calculated on a straight line basis so as to write off the cost of each item of infrastructure,
plant and equipment over its expected useful life. For leasehold improvements the depreciation is calculated
over the lease term or the useful life, whichever is the shorter.
Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary
adjustments are recognised in the current, and future reporting periods, as appropriate. Residual values
are re-estimated for a change in prices only when assets are revalued.
Depreciation and amortisation rates applying to each class of depreciable asset are based on the following
useful lives:
a 2000-2001 1999-2000 Leasehold improvements Lease term Lease term Plant and equipment 4 to 10 years 4 to 10 years
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The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 4.3.
2.15 Taxation
The Commission's activities are exempt from all forms of taxation except fringe benefits tax and the goods
and services tax.
2.16 Foreign Currency
Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material.
2.17 Insurance
The Commission has insured for risks through the Government's insurable risk managed fund, called Comcover. Workers compensation is insured through Comcare Australia.
2.18 Comparative Figures
Comparative figures have been adjusted to conform to changes in presentation in these financial statements
where required.
2.19 Capital use charge (CUC)
A capital usage charge of 12% is imposed by the Government on the net departmental assets of the Commission.
aThe revaluations were as at 1July 1999 in accordance with the progressive revaluation policy stated at Note 2 and were completed by an independent valuer, Australian Valuation Office.
6.2 Analysis of Property, Plant, Equipment and Intangibles
TABLE A: Movement summary 2000-01 for all assets irrespective of valuation basis
Gross Value as at 1 July 2000 Additions: - acquisition of new assets Revaluations: write-ups (write-downs) Assets transferred in/(out) Write-offs Disposals Gross Value as at 30 June 2001 Accumulated Depreciation/Amortisation as at 1July 2000 Depreciation/Amortisation charges for assets held 1July 2000 Depreciation/Amortisation charges for additions Revaluations Assets transferred in/(out) Write-offs Disposals Accumulated Depreciation/Amortisation as at 30 June 2001 Net book value as at 30 June 2001 2,123,841 Net book value as at 1 July 2000 2,334,501
As at 30 June 2001 Gross Value Accumulated Depreciation/Amortisation Net book value As at 30 June 2000 Gross Value Accumulated Depreciation/Amortisation Net book value
a 6.3 Intangibles Computer software - internally developed Less: Accumulated depreciation Total 6.4 Other Prepayments Rent Other Total Note 7 Other Debt Lease incentives Note 8 Provisions and Payables 8.1 Employee Provisions Salaries and wages Leave Superannuation Separation and redundancies Aggregate employee entitlement liability Current Non-current 8.2 Supplier Payables Trade creditors Operating lease rentals Total 8.3 Other Payables Unearned revenue
Note 9 - Equity (cont)
Restructuring
As a result of a restructuring of administrative arrangements, the Commission relinquished its responsibility for
the delivery of functions under the Privacy Act 1988.
The Privacy Amendment (Office of the Privacy Commissioner) Act 2000 amended the Privacy Act 1988
and established the Office of the Federal Privacy Commissioner as a separate entity.
In respect of the functions relinquished, the following assets and liabilities were transferred by the
Commission:
a Total assets relinquished Total liabilities relinquished Net assets relinquished Net Contribution by Government as owner during the period Note 10 - Cash flow reconcilation
Reconciliation of Cash per Statement of Financial Position to Statement of Cash Flows Cash at year end per Statement of Cash Flows Statement of Financial Position items comprising above cash: 'Financial Asset -Cash' Reconciliation of operating surplus to net cash from operating activities: Net surplus - Restructuring transfers Fixed asset transfer Other asset transfer Provision for doubtful debts Depreciation and Amortisation Loss on disposal Recognition of capital reserve (Increase)/Decrease in Receivables (Increase)/Decrease in Prepayments Increase/(Decrease) in Employee provision Increase/(Decrease) in Suppliers Increase/(Decrease) in Debt Increase/(Decrease) in Other payables provision Net cash from operating activities
Note 11 - Executive Remuneration
The number of Executives who received or were due to receive total remuneration of $100,000 or more:
REMUNERATION OF 2000-01
Number
1999-00
Number
$100,000-$109,999 $120,000-$129,999 $130,000-$139,999 $140,000-$149,999 $150,000-$159,999 $170,000-$179,999 $180,000-$189,999 $190,000-$199,999 $200,000-$209,999 a The aggregate amount of total remuneration of Executives
shown above.The aggregate amount of separation and redundancy
payments during the year to executive officers shown aboveNote 12 - Remuneration of Auditors
Financial statement audit services are provided free of charge to the
Commission by the Auditor-General. The fair value of the audit services
was:25,000 Other Services
Amounts paid in relation to the audit of two special purpose
financial reports
2,773 Total 27,773 Note 13 - Act of grace payments and waivers
No Act of Grace payments were made during the reporting period. - -
No waivers of amounts owing to the Commonwealth were made - -
pursuant to subsection 34(1) of the Financial Management and
Accountability Act 1997.Note 14 - Average Staffing Levels
The average staffing levels for the Commission during the year were:
ASL ASL 91 126 Note 15 - Appropriations
15.1 Agency appropriations
Annual Appropriations for Departmental items (outputs)Appropriation Acts 1 & 3 credits:
Section 7 - Act 1 - basic appropriations (budget)
Section 7 - Act 3 - basic appropriations
Section 10 - adjustments
Section 11 - Advance to the Finance Minister
Section 12 - Comcover receipts
10,584,000
-
-
-
-
14,396,000
-
-
-
-Total Current Appropriation Acts
247,120
-
3,832,048
-
-
3,049,741Total appropriated in the year Balance brought forward from previous period Total appropriations available for payments Payments during the year Balance of appropriations (unspent) at 30 June carried to next period The brought forward figure for the balance of appropriations for the prior period has been amended toincorporate petty cash on hand of $5,727. 15.2 Annual Appropriations for Departmental Capital items
a Equity injections Loans Carryovers a 2000-01 1999-00 2000-01 1999-00 2000-01 1999-00 Appropriation Act No 2 & 4
Section 10 - Act No 2 (Budget)
Section 10 - Act No 4
Advance to the Finance Ministera
89,000
a a
56,000
950,000
56,000
1,039,000Total Current Appropriation ActsAdd: FMA Act appropriations Add: Appropriation Act No 4 s30 appropriations s30A appropriations (GST recoverables) a 89,000
a a 56,000
950,000 56,000
Total appropriated in the year Balance available at 1 July brought forward from previous period -
58,49489,000
-
a a 56,000
950,000 56,000
58,494
Payments during the year 58,494 30,506 - - 56,000 950,000 Balance of appropriations at 30 June carried to next period - 58,494 - - - -
Note 16 - Financial Instruments
16.1 Terms, conditions and accounting policies
16.2 Interest rate risk
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16.3 Net Fair Values of Financial Assets and Liabilities
a a 2001-01 1999-00 Agency financial assets Note Total Carrying amount $ Aggregate Net Fair Value Total carrying amount $ Aggregate Net Fair Value Cash - Interest receivable 5 Receivables for goods and services 5 Appropriations 5 Total Financial Assets - Financial Liabilities (Recognised) - Lease incentives 7 Trade Creditors 8.2 Operating lease rentals 8.2 Unearned revenue 8.3 Total Financial Liabilities (Recognised) -
Financial Assets
The net fair values of cash and non-interest bearing monetary financial assets approximate their carrying amounts.
Financial liabilities
The net fair values of lease incentives liabilities are based on discounted cash flows using current interest rates
for liabilities with similar risk profiles.
The net fair values for trade creditors are short-term in nature and are approximated by their carrying amounts.
d) Credit Risk Exposures
The Commission's maximum exposures to credit risk at reporting date in relation to each class of recognised
financial assets is the carrying amount of those assets as indicated in the Statement of Financial Position.
The Commission has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
Net Subsidies, benefits and grant expenses Other administered expenses Total net administered expenses Add Net cost of departmental outputs Outcome before extraordinary items
14,334,000Extraordinary items Net Cost to Budget Outcome
14,334,000
10,098,845Outcome specific assets deployed as at 30/6/01 Assets that are not outcome specific deployed as at 30/6/01 Major Agency Revenues & Expenses by Outcome Operating Revenues Revenues from government Sale of goods and services Other non-taxation revenues Total operating revenues Operating Expenses Employees Suppliers Other Total operating expenses
Note 18 Trust Moneys Comcare Trust Account
Purpose - monies held in trust and advanced to the Commission by COMCARE for the purpose of distributing compensation payments made in accordance with the Safety Rehabilitation and Compensation Act 1988.
Comcare Trust Account Trust Money
a 2000-01 $ 1999-2000 $ Balance carried forward from previous period - - Receipts during the period 2,648 - Available for payments 2,648 - Payments made 2,648 - Balance carried forward to next period - -
