2 . 1 C. FINANCIALST ATEMENT— COMMUNITY SERVICES DIRECTORATE€¦ · Net Assets transferred out as part of an 30 (200,647) - (200,647) Administrative Restructure Total Transactions

159

C.1.2 FINANCIAL STATEMENT— COMMUNITY SERVICES DIRECTORATE

INDEPENDENT AUDIT REPORT

COMMUNITY SERVICES DIRECTORATE

To the Members of the ACT Legislative Assembly

Report on the financial statements

The financial statements of the Community Services Directorate (the Directorate) for the year ended 30 June 2016 have been audited. These financial statements comprise the operating statement, balance sheet, statement of changes in equity, cash flow statement, statement of appropriation and accompanying notes.

Responsibility for the financial statements

The Director-General is responsible for the preparation and fair presentation of the financial statements in accordance with the Financial Management Act 1996. This includes responsibility for maintaining adequate accounting records and internal controls that are designed to prevent and detect fraud and error, and the accounting policies and estimates used in the preparation of the financial statements.

The auditor’s responsibility

Under the Financial Management Act 1996, I am responsible for expressing an independent audit opinion on the financial statements of the Directorate.

The audit was conducted in accordance with Australian Auditing Standards to obtain reasonable assurance that the financial statements are free of material misstatement.

I formed the audit opinion following the use of audit procedures to obtain evidence about the amounts and disclosures in the financial statements. As these procedures are influenced by the use of professional judgement, selective testing of evidence supporting the amounts and other disclosures in the financial statements, inherent limitations of internal control and the availability of persuasive rather than conclusive evidence, an audit cannot guarantee that all material misstatements have been detected.

Although the effectiveness of internal controls is considered when determining the nature and extent of audit procedures, the audit was not designed to provide assurance on internal controls.

160 Community Services Directorate: Annual Report 2015–16

The audit is not designed to provide assurance on the appropriateness of budget information included in the financial statements or to evaluate the prudence of decisions made by the Directorate.

Electronic presentation of the audited financial statements

Those viewing an electronic presentation of these financial statements should note that the audit does not provide assurance on the integrity of information presented electronically and does not provide an opinion on any other information which may have been hyperlinked to or from these financial statements. If users of these statements are concerned with the inherent risks arising from the electronic presentation of information, then they are advised to refer to the printed copy of the audited financial statements to confirm the accuracy of this electronically presented information.

Independence

Applicable independence requirements of Australian professional ethical pronouncements were followed in conducting the audit.

Audit opinion

In my opinion, the financial statements of the Directorate for the year ended 30 June 2016:

(i) are presented in accordance with the Financial Management Act 1996, Australian Accounting Standards and other mandatory financial reporting requirements in Australia; and

(ii) present fairly the financial position of the Directorate at 30 June 2016 and the results of its operations and cash flows for the year then ended.

This audit opinion should be read in conjunction with the other information disclosed in this report.

Dr Maxine Cooper Auditor-General 2 September 2016

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163

Community Services Directorate Operating Statement

For the Year Ended 30 June 2016

Hiddenword Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000Income Revenue GovernmentPaymentforOutputs 3 251,972 230,443 244,172UserCharges–ACTGovernment 4 519 - 494UserCharges–Non-ACTGovernment 4 1,699 1,933 1,518Interest - 28 -ResourcesReceivedFreeofCharge 5 1,312 460 1,075OtherRevenue 6 14,081 1,218 5,593TotalRevenue 269,583 234,082 252,852 Gains OtherGains 7 7,662 1,620 10,698TotalGains 7,662 1,620 10,698TotalIncome 277,245 235,702 263,550 Expenses

EmployeeExpenses 8 102,605 81,047 98,959SuperannuationExpenses 9 10,912 13,739 11,818SuppliesandServices 10 38,843 34,411 37,863DepreciationandAmortisation 11 2,329 3,298 2,786GrantsandPurchasedServices 12 116,469 105,364 108,846BorrowingCosts 13 (173) 91 197OtherExpenses 14 570 83 5,275AssetTransfers 16 2,184 - -TotalExpenses 273,739 238,033 265,744OperatingSurplus/(Deficit) 3,506 (2,331) (2,194) OtherComprehensiveIncome Itemsthatwillnotbereclassifiedsubsequently toprofitorloss

NetEffectofaCorrectionofanError - 889 -(Decrease)intheAssetRevaluationSurplus 28 (1,940) - -TotalOtherComprehensive(Deficit)/Income (1,940) 889 - TotalComprehensiveSurplus/(Deficit) 1,566 (1,442) (2,194)

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TheaboveOperatingStatementshouldbereadinconjunctionwiththeaccompanyingnotes.


Community Services Directorate Balance Sheet

As at 30 June 2016 Hiddenwords

6

Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000CurrentAssets

CashandCashEquivalents 18 4,286 5,878 12,282Receivables 19 5,059 2,300 4,474OtherAssets 23 287 1,066 181TotalCurrentAssets 9,632 9,244 16,937

Non-CurrentAssets

Receivables 19 - 2,220 -Property,PlantandEquipment 20 72,367 70,145 74,397IntangibleAssets 21 624 382 673CapitalWorksinProgress 22 16 1,188 474TotalNon-CurrentAssets 73,007 73,935 75,544

TotalAssets 82,639 83,179 92,481 CurrentLiabilities Payables 24 2,117 8,885 12,453FinanceLeasesandInterest-BearingLiabilities - 1,357 -EmployeeBenefits 25 25,377 24,635 23,417OtherProvisions 26 354 - 1,099OtherLiabilities 27 1,574 4,634 5,889TotalCurrentLiabilities 29,422 39,511 42,858

Non-CurrentLiabilities FinanceLeasesandInterest-BearingLiabilities - 1,504 -EmployeeBenefits 25 1,502 1,856 1,765OtherProvisions 26 1,127 - 348OtherLiabilities 27 - 1,487 -TotalNon-CurrentLiabilities 2,629 4,847 2,113TotalLiabilities 32,051 44,358 44,971

NetAssets 50,588 38,821 47,510

Equity

AccumulatedFunds 46,423 33,764 41,351AssetRevaluationSurplus 28 4,165 5,057 6,159

TotalEquity 50,588 38,821 47,510

TheaboveBalanceSheetshouldbereadinconjunctionwiththeaccompanyingnotes.

165

Community Services Directorate Cash Flow Statement

For the Year Ended 30 June 2016 Hiddenwords

7

Original Actual Budget Actual Note 2016 2016 2015 No. $’000 $’000 $’000

CashFlowsfromOperatingActivities

Receipts

GovernmentPaymentforOutputs 251,972 230,443 244,172UserCharges–ACTGovernment 366 - 377UserCharges–Non-ACTGovernment 1,213 1,933 1,360GoodsandServicesTaxInputTaxCreditsfromtheAustralianTaxationOffice 13,067 - 14,622GoodsandServicesTaxCollectedfromCustomers 247 - 490Other 16,714 13,195 10,196TotalReceiptsfromOperatingActivities 283,579 245,571 271,217

Payments

Employee 101,151 83,281 100,049Superannuation 11,276 13,753 12,017SuppliesandServices 43,317 34,024 35,281GrantsandPurchasedServices 122,049 104,696 105,577BorrowingCosts - 86 145GoodsandServicesTaxPaidtoSuppliers - - 14,629Other 13,707 12,669 -TotalPaymentsfromOperatingActivities 291,500 248,509 267,698NetCash(Outflows)/InflowsfromOperatingActivities 34 (7,921) (2,938) 3,519 CashFlowsfromInvestingActivities

Receipts

ProceedsfromSaleofProperty,PlantandEquipment 21 - 49TotalReceiptsfromInvestingActivities 21 - 49

Payments

PaymentsforProperty,PlantandEquipment 1,608 4,031 1,016TotalPaymentfromInvestingActivities 1,608 4,031 1,016NetCash(Outflows)fromInvestingActivities (1,587) (4,031) (967)


Community Services Directorate Cash Flow Statement - Continued For the Year Ended 30 June 2016

Hiddenwords

8

Original

Actual Budget Actual

Note 2016 2016 2015

No. $’000 $’000 $’000

CashFlowsfromFinancingActivities

Receipts

CapitalInjections 1,512 4,031 4,269TotalReceiptsfromFinancingActivities 1,512 4,031 4,269Payments

DistributionstoGovernment - 350 119RepaymentofFinanceLeaseLiabilities - 322 298PaymentofTransferredCashBalances - - 1,854TotalPaymentsfromFinancingActivities - 672 2,271NetCashInflowsfromFinancingActivities 1,512 3,359 1,998

Net(Decrease)/IncreaseinCashandCashEquivalents (7,996) (3,610) 4,550CashandCashEquivalentsattheBeginningofthe ReportingPeriod 12,282 9,488 7,732CashandCashEquivalentsattheEndofthe

ReportingPeriod 18

4,286 5,878 12,282

TheaboveCashFlowStatementshouldbereadinconjunctionwiththeaccompanyingnotes.

167

Community Services Directorate Statement of Changes in Equity

For the Year Ended 30 June 2016 Hidden words

9

Asset Accumulated Revaluation Total Funds Surplus Equity Original Actual Actual Actual Budget Note 2016 2016 2016 2016 No. $’000 $’000 $’000 $’000 Balanceat1July2015 41,351 6,159 47,510 36,582 ComprehensiveIncome NetEffectofaCorrectionofanError - - - 889OperatingSurplus/(Deficit) 3,506 - 3,506 (2,331)(Decrease)intheAssetRevaluationSurplus 28 - (1,940) (1,940) -TotalComprehensiveSurplus/(Deficit) 3,506 (1,940) 1,566 (1,442) Transferto/(from)Reserves 28 54 (54) - - TransactionsInvolvingOwnersAffecting AccumulatedFunds CapitalInjections 1,512 - 1,512 4,031Capital(Distributions) - - - (350)TotalTransactionsInvolvingOwnersAffecting AccumulatedFunds 1,512 - 1,512 3,681 Balanceat30June2016 46,423 4,165 50,588 38,821

TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes.


Community Services Directorate Statement of Changes in Equity - Continued


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Asset Accumulated Revaluation Total Funds Surplus Equity Actual Actual Actual Note 2015 2015 2015 No. $’000 $’000 $’000 Balanceat1July2014 190,416 55,785 246,201 ComprehensiveIncome

Operating(Deficit) (2,194) - (2,194) TotalComprehensive(Deficit) (2,194) - (2,194) Transferto/(from)Reserves 28 49,626 (49,626) - TransactionsInvolvingOwnersAffecting AccumulatedFunds CapitalInjections 4,269 - 4,269 Capital(Distributions) (119) - (119) NetAssetstransferredoutaspartofan 30 (200,647) - (200,647)AdministrativeRestructure TotalTransactionsInvolvingOwnersAffecting AccumulatedFunds (196,497) - (196,497) Balanceat30June2015 41,351 6,159 47,510

TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes.

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Community Services Directorate Summary of Directorate Output Classes


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Output Output Output Output Class1 Class2 Class3 Class4 Total $’000 $’000 $’000 $’000 $’0002016 TotalIncome 130,842 27,303 26,525 92,575 277,245TotalExpenses (125,987) (24,162) (26,085) (97,505) (273,739) OperatingSurplus/(Deficit) 4,855 3,141 440 (4,930) 3,506 2015 TotalIncome 127,209 23,622 24,102 88,617 263,550TotalExpenses (128,546) (25,587) (21,312) (90,299) (265,744) Operating(Deficit)/Surplus (1,337) (1,965) 2,790 (1,682) (2,194)


Community Services Directorate Operating Statement for Output Class 1 – Disability and Therapy

Services For the Year Ended 30 June 2016

Description

Provision of high quality community based, consumer focused disability services through government andnon-government service providers to meet the accommodation support, community access and support,respitecareandwellbeingneedsofpeoplewithmoderatetoseveredisabilities.Provision of therapy services for children with delays in development from birth to age eight, and forchildren, young people and adults with disabilities (i.e. from birth to 65 years), including counselling andsupport,andassistancewithphysical,intellectual,communicationandotherfunctionaldisabilities.The National Disability Insurance Scheme (NDIS) trial in the ACT began on 1 July 2014 over a three-yeartransitionperiodforeligibleACTparticipantsending2016-17.TheACTGovernmentannouncedthedecisionto gradually withdraw as a provider of specialist disability services, therapy services and early interventionprogramsovertheplannedthree-yearperiod.DisabilityACTwillexitasaserviceproviderby30June2017and Therapy ACT by 31 December 2016. The targets reflect the Territory’s commitment to continue toprovidequalityservicestotheCanberracommunityduringthetransitionofclientsintotheNationalDisabilityInsuranceScheme(NDIS).

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Original

Actual Budget Actual2016 2016 2015

$’000 $’000 $’000Income

Revenue

GovernmentPaymentforOutputs 113,752 104,727 115,014UserCharges–ACTGovernment 170 - -UserCharges–Non-ACTGovernment 271 1,207 216Interest - 28 296ResourcesReceivedFreeofCharge 220 142 250OtherRevenue 11,902 50 4,423TotalRevenue 126,315 106,154 120,199

Gains OtherGains 4,527 - 7,010TotalGains 4,527 - 7,010TotalIncome 130,842 106,154 127,209

Expenses

EmployeeExpenses 48,570

36,562 50,010SuperannuationExpenses 4,407 6,566 5,745SuppliesandServices 16,595 16,558 18,390DepreciationandAmortisation 618 699 722GrantsandPurchasedServices 55,682 47,298 51,011BorrowingCosts 6 41 72OtherExpenses 109 - 2,596

TotalExpenses 125,987 107,724 128,546OperatingSurplus/(Deficit)

4,855 (1,570) (1,337)

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Community Services Directorate Operating Statement for Output Class 2 – Early Intervention

Services For the Year Ended 30 June 2016

Description

Provisionofearlyinterventionandpreventionservices,whichareprovidedthroughauniversalplatformwithtargeted services for vulnerable families. Services provided include parenting information available on-lineandthroughparentingtipsheets,sustainedhomevisiting,parentingadviceandsupportservices,specialistclinical services, community development and community education. Services are delivered by communityorganisationsorinpartnershipwithotheragencies,localcommunityorganisationsandserviceproviders.

Hiddenwords

13

Original Actual Budget Actual

2016 2016 2015$’000 $’000 $’000

Income

Revenue

GovernmentPaymentforOutputs 25,764 23,921 22,363UserCharges–ACTGovernment 178 - 150UserCharges–Non-ACTGovernment 136 - 133ResourcesReceivedFreeofCharge 22 - 24OtherRevenue 1,153 92 537TotalRevenue 27,253 24,013 23,207

Gains OtherGains 50 - 415TotalGains 50 - 415TotalIncome 27,303 24,013 23,622

Expenses

EmployeeExpenses 7,435 8,227 7,085SuperannuationExpenses 996 997 895SuppliesandServices 2,692 3,182 3,218DepreciationandAmortisation 292 713 305GrantsandPurchasedServices 12,490 12,077 13,259BorrowingCosts (20) 15 29OtherExpenses 277 30 796TotalExpenses 24,162 25,241 25,587OperatingSurplus/(Deficit)

3,141 (1,228) (1,965)


CommunityServicesDirectorateOperatingStatementforOutputClass3-CommunityParticipation

FortheYearEnded30June2016Description

Provisionofavarietyofsupportanddevelopmentactivitiesthatstrengthenengagement,fostercommunityrelationsandparticipation,andbuildcommunitycapacity,includingimprovedaccesstoservices.

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Original

Actual Budget Actual2016 2016 2015

$’000 $’000 $’000Income

Revenue

GovernmentPaymentforOutputs 22,062 20,439 20,884UserCharges–ACTGovernment 25 - 16UserCharges–Non-ACTGovernment 937 28 856ResourcesReceivedFreeofCharge 18 12 6OtherRevenue 711 974 185TotalRevenue 23,753 21,453 21,947

Gains OtherGains 2,772 1,620 2,155TotalGains 2,772 1,620 2,155TotalIncome 26,525 23,073 24,102

Expenses

EmployeeExpenses 6,349

4,211 4,657SuperannuationExpenses 824 443 734SuppliesandServices 4,710 5,420 3,683DepreciationandAmortisation 406 9 530GrantsandPurchasedServices 12,633 11,471 11,585BorrowingCosts (32) 1 5OtherExpenses 113 - 118AssetTransfers 1,082 - -TotalExpensesOperatingSurplus

26,085 21,555 21,312440 1,518 2,790

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Community Services Directorate Operating Statement for Output Class 4 – Child and Youth

Protection Services For the Year Ended 30 June 2016

Description

Provisionofstatutorycareandprotectionandyouthjusticeservicesaimedatimprovingandpromotingthesafetyandthewellbeingofchildren,youngpeople,theirfamiliesandthecommunity.

15

Original Actual Budget Actual

2016 2016 2015$’000 $’000 $’000

Income

Revenue

GovernmentPaymentforOutputs 90,394 81,356 85,911UserCharges–ACTGovernment 147 - 112UserCharges–Non-ACTGovernment 355 698 233ResourcesReceivedFreeofCharge 1,052 306 795OtherRevenue 315 102 448TotalRevenue 92,263 82,462 87,499

Gains OtherGains 312 - 1,118TotalGains 312 - 1,118TotalIncome 92,575 82,462 88,617

Expenses

EmployeeExpenses 40,251 32,047 37,206SuperannuationExpenses 4,684 5,733 4,444SuppliesandServices 14,845 9,251 12,573DepreciationandAmortisation 1,012 1,877 1,229GrantsandPurchasedServices 35,664 34,518 32,990BorrowingCosts (125) 34 91OtherExpenses 72 53 1,766AssetTransfers 1,102 - -TotalExpensesOperating(Deficit)

97,505 83,513 90,299(4,930) (1,051) (1,682)


Community Services Directorate Statement of Appropriation


16

Note Original Total Appropriation Appropriation No. Budget Appropriated Drawn Drawn 2016 2016 2016 2015 $’000 $’000 $’000 $’000 Controlled GovernmentPaymentforOutputs (i) 230,443 252,756 251,972 244,172CapitalInjections (ii) 4,031 4,081 1,512 4,269TotalControlledAppropriation 234,474 256,837 253,484 248,441

TheaboveStatementofAppropriationshouldbereadinconjunctionwiththeaccompanyingnotes.

ColumnHeadingExplanation

The Original Budget column shows the amounts that appear in the Cash Flow Statement in the BudgetPapers. This amount also appears in these financial statements, in the Cash Flow Statement of theCommunityServicesDirectorate(theDirectorate).

TheTotalAppropriatedcolumnisinclusiveofallappropriationvariationsoccurringaftertheOriginalBudget.

TheAppropriationDrawn is thetotalamountofappropriationreceivedbytheDirectorateduringtheyear.ThisamountappearsintheCashFlowStatement.

Variancesbetween'OriginalBudget'and'TotalAppropriated'

(i) GovernmentPaymentforOutputs(GPO)

Theincreaseof$22.313millionbetweentheOriginalBudgetfortheDirectorateandtheTotalAppropriatedlargelyrelatestotheTreasurer’sAdvance($21.529million)receivedtocovercostsrelatingtovoluntaryredundanciespaidtoDirectoratestaffastheDirectorateshiftsservicedeliverytoexternalorganisationsduetothetransitiontotheNationalDisabilityInsuranceScheme(NDIS),increasedworkers’compensationinsurancepremium,DisabilityACTservicestoemergencyclients,increasedoperationalcostsintheOfficeofChildren,YouthandFamilyServices,additionalclientsenteringtheOutofHomeCaresystemandfundsreceivedtocovertheLongServiceLeaveentitlementaspartofthevoluntaryredundancypaymentsunderSection16AoftheFinancialManagementAct1996.CapitalInjections

The increaseof$0.050millionbetweentheOriginalBudgetandTotalAppropriatedrelates toa transferofcapitalprojectfundingfrom2014-15to2015-16,astheprojecthadnotbeencompleted.

Variancesbetween'TotalAppropriated'and'AppropriationDrawn'

(i) GovernmentPaymentforOutputs(GPO)

The difference of $0.784 million between Total Appropriated and Appropriation Drawn relates to theundrawnamountsinrelationtotherecoveryofemployeelongserviceleaveentitlements.

(ii) CapitalInjections

Thedifferenceof$2.569millionbetweentheTotalAppropriatedandAppropriationDrawnrelatestoprojectsthathavebeenre-profiledto2016-17duetodelaysincommencement,includingfundingforClientManagementSystemforChildrenandYouthProtectionServices($1.188million)andDisabilityrespitepropertydesignandconstruction($1.376million).Fundingfortheseprojectswillbetransferredfrom2015-16to2016-17underSection16BoftheFinancialManagementAct1996.

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Community Services Directorate Note Index of the Financial Statements


17

NoteNote

12

ObjectivesoftheCommunityServicesDirectorateSignificantAccountingPolicies

IncomeNotes NoteNoteNoteNote

3 GovernmentPaymentforOutputs4 UserCharges5 ResourcesReceivedFreeofCharge6 OtherRevenue

Note 7 OtherGains NoteNoteNoteNoteNote

ExpenseNotes8 EmployeeExpenses9 SuperannuationExpenses10 SuppliesandServices11 DepreciationandAmortisation12 GrantsandPurchasedServices

NoteNoteNoteNote

13 BorrowingCosts14 OtherExpenses15 Waivers,ImpairmentLossesandWrite-Offs16 AssetTransfers

Note 17 Auditor'sRemuneration AssetNotes NoteNote

18 CashandCashEquivalents19 Receivables

NoteNoteNoteNote

20 Property,PlantandEquipment21 IntangibleAssets22 CapitalWorksinProgress23 OtherAssets

NoteNoteNote

Liabil242526

ityNotesPayablesEmployeeBenefitsOtherProvisions

Note 27 OtherLiabilities Note

EquityNotes28 Equity

Other NoteNoteNote

29 DisaggregatedDisclosureofAssetsandLiabilities30 RestructureofAdministrativeArrangements31 FinancialInstruments

Note 32 Commitments NoteNote

33 ContingentLiabilitiesandContingentAssets34 CashFlowReconciliation

Note 35 BudgetaryReporting


Community Services Directorate Notes to and Forming Part of the Financial Statements


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NOTE 1. OBJECTIVES OF THE COMMUNITY SERVICES DIRECTORATE

OperationsandPrincipalActivities

The Community Services Directorate (the Directorate) aims to enable all Canberrans to fulfil their potential,take advantage of the social and economic opportunities on offer, and make a valued contribution to ourcommunity. Theworkof theDirectorateaimstopromotewellbeingandcontributetothe liveabilityof thiscity. The responsibilities of the Directorate are broad and include a range of policy responsibilities andprogramsthatdeliveressentialservices.

The Directorate aims to recognising the stage of life and circumstances of its clients and to facilitating anoutcomethatisfocusedontheir individualneeds. ThisisreflectedintheDirectorate’sStrategicPlan,whicharticulatesparticipationasthecentraldriverofitswork,andissupportedbyfivegoals:

• apositivestart—individualsandfamiliesreceiveservicesandsupportwhentheyareneeded;• support togrowanddevelop— individualsand familieshavetheskills, supportand informationto

joinin;• aproductivelife—peopleofCanberraarevaluedcontributorstoourcommunity;• a connected community — people of Canberra come together to build a vibrant, resilient and

connectedcommunity;and• aleadingorganisation—leadinginthewayweworkforthepeopleofCanberra.

Communityservicesaretargetedtowardspeoplewithadisability,childrenandyoungpeople,families,carers,women, Aboriginal and Torres Strait Islander people, people from a culturally and linguistically diversebackgroundandwhoseareageing. TheDirectorate’sprimaryservicedomainscanbedescribedasaccesstoinformation,(i.e.,assessmentandreferral),early intervention, intensivesupportandchildandyoungpeoplestatutoryprotectionservices.Thenon-governmentsectorisacrucialpartneroftheDirectorateinthedeliveryof these services. The Directorate is strengthening its regulatory functions as the non-government sectorassumesmoreresponsibilityforthedeliveryofservices.

177



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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

(a) BasisofAccounting

The Financial Management Act 1996 (FMA) requires the preparation of annual financial statements for theDirectorate.

TheFMAandtheFinancialManagementGuidelines issuedundertheAct,requirestheDirectorate’sfinancialstatementstoinclude:

(i) anOperatingStatementfortheyear;

(ii) aBalanceSheetattheendoftheyear;

(iii) aStatementofChangesinEquityfortheyear;

(iv) aCashFlowStatementfortheyear;

(v) anOperatingStatementforeachclassofoutputfortheyear;

(vi) aStatementofAppropriationfortheyear;

(vii) thesignificantaccountingpoliciesadoptedfortheyear;and

(viii) such other statements as are necessary to fairly reflect the financial operations of the agencyduringtheyearanditsfinancialpositionattheendoftheyear.

These general-purpose financial statements have been prepared to comply with ‘Generally AcceptedAccountingPrinciples’as requiredby theFMA. The financial statementshavebeenprepared inaccordancewith:

(i) AustralianAccountingStandards;and

(ii) ACTAccountingandDisclosurePolicies.

The financial statements have been prepared using the accrual basis of accounting, which recognises theeffects of transactions and events when they occur. The financial statements have also been preparedaccordingtothehistoricalcostconvention,exceptforland,buildings,correctionalfacility,landimprovements;whichweremeasuredatfairvalueinaccordancewiththe(re)valuationpoliciesapplicabletotheDirectorateduringthereportingperiod.

At30June2016,theDirectorate’scurrentliabilities($30.068million)exceeditscurrentassets($9.632million)by$20.436million.However,thisisnotconsideredaliquidityriskasitscashrequirementsarefundedthroughappropriation from the ACT Government on a cash–needs basis. This is consistent with the whole–of–government cash management regime which requires excess cash balances to be held centrally rather thanwithinindividualagencybankaccounts.

ThesefinancialstatementsarepresentedinAustraliandollars,whichistheDirectorate’sfunctionalcurrency.

TheDirectorateisanindividualreportingentity.

(b) TheReportingPeriod

Thesefinancialstatementsstatethefinancialperformance,changesinequityandcashflowsoftheDirectoratefortheyearended30June2016andthefinancialpositionoftheDirectorateat30June2016.

(c) ComparativeFigures

BudgetFiguresTofacilitateacomparisonwiththeBudgetPapers,asrequiredbytheFMA,budgetinformationfor2016hasbeen presented in the financial statements. Budget numbers in the financial statements are the originalbudgetnumbersthatappearintheBudgetPapers.




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NOTE 2. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(c) ComparativeFigures-continued

PriorYearComparativesComparative information has been disclosed in respect of the previous period for amounts reported in thefinancial statements, except where an Australian Accounting Standard does not require comparativeinformationtobedisclosed.

Where the presentation or classification of items in the financial statements is amended, the comparativeamountshavebeen reclassifiedwherepractical. Wherea reclassificationhasoccurred, thenature,amountandreasonforthereclassificationisprovided.

(d) Rounding

Allamountsinthefinancialstatementshavebeenroundedtothenearestthousanddollars($’000).Useof"-"representszeroamountsoramountsroundeddowntozero.

(e) RevenueRecognition

RevenueisrecognisedatthefairvalueoftheconsiderationreceivedorreceivableintheOperatingStatement.Inadditionthefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

GovernmentPaymentforOutputsGovernment Payment for Outputs are recognised as revenues when the Directorate gains control over thefunding.Controloverappropriatedfundsisobtaineduponthereceiptofcash.

RenderingofServices

Revenuefromtherenderingofservicesisrecognisedwhenthestageofcompletionofthetransactionatthereportingdatecanbemeasuredreliablyandthecostsofrenderingtheservicecanbemeasuredreliably.

RevenueReceivedinAdvanceRevenue received in advance is recognised as a liability if there is a present obligation to return the fundsreceived,otherwiseallarerecordedasrevenue.

(f) ResourcesReceivedandProvidedFreeofCharge

Resources received free of charge are recorded as revenue in the Operating Statement at fair value. Therevenueisseparatelydisclosedunderresourcesreceivedfreeofcharge.GoodsandservicesreceivedfreeofchargefromACTGovernmentagenciesarerecordedasresourcesreceivedfreeofcharge,whereasgoodsandservices received free of charge from entities external to the ACT Government are recorded as donations.ServicesthatarereceivedfreeofchargeareonlyrecordedintheOperatingStatementiftheycanbereliablymeasuredandwouldhavebeenpurchasedifnotprovidedtotheDirectoratefreeofcharge.

Resources provided free of charge are recorded at their fair value in the expense line items to which theyrelate.

(g) RepairsandMaintenance

The Directorate undertakes repairs and maintenance on property, plant and equipment assets. Where themaintenanceleadstoanupgradeoftheassetandincreasestheservicepotentialoftheexistingasset,thecostiscapitalised.Maintenanceexpenseswhichdonotincreasetheservicepotentialoftheassetareexpensed.

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For the Year Ended 30 June 2016

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HiddenwordsNOTE 2. SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

(h) BorrowingCosts

Borrowingcostsareexpensedintheperiodinwhichtheyareincurred.

(i) WaiversofDebt

Debts that are waived under section 131 of the FMA are expensed during the year in which the right topayment was waived. Further details of waivers are disclosed at Note 15 Waivers, Impairment Losses andWrite-Offs.

(j) CurrentandNon-CurrentItems

Assetsand liabilitiesareclassifiedascurrentornon-current in theBalanceSheetand in the relevantnotes.Assetsareclassifiedascurrentwheretheyareexpectedtoberealisedwithin12monthsafterthereportingdate.Liabilitiesareclassifiedascurrentwhentheyareduetobesettledwithin12monthsafterthereportingdate or the Directorate does not have an unconditional right to defer settlement of the liability for at least12monthsafterthereportingdate.

Assetsorliabilitieswhichdonotfallwithinthecurrentclassificationareclassifiedasnon-current.

(k) ImpairmentofAssets

TheDirectorateassessesateachreportingdatewhetherthereisanyindicationthatanassetmaybeimpaired.Assets are also reviewed for impairment whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. However, intangible assets that are not yet available for use aretestedannuallyforimpairmentregardlessofwhetherthereisanindicationofimpairment,ormorefrequentlyifeventsorcircumstancesindicatetheymightbeimpaired.

Non-financialassets thathavepreviouslybeen impairedarereviewedforpossiblereversalof impairmentateachreportingdate.

Any resulting impairment losses, for land, buildings, correctional facility and land improvements assets, arerecognisedasadecreaseintheAssetRevaluationSurplusrelatingtotheseclassesofassets.

Where the impairment loss is greater than the available balance in the Asset Revaluation Surplus for therelevantclassofasset,thedifferenceisexpensedintheOperatingStatement.Impairmentlossesforplantandequipment,leaseholdimprovementsandintangibleassetsarealsorecognisedintheOperatingStatementasthese asset classes are carried at cost. The carrying amount of the asset is also reduced to its recoverableamount.

(l) CashandCashEquivalents

Cashincludescashatbankandcashonhand.Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

(m) Receivables

Accounts receivable (including trade receivables and other trade receivables) are initially recognised at fairvalueandaresubsequentlymeasuredatamortisedcost,withanyadjustmentstothecarryingamountbeingrecordedthroughtheOperatingStatement.




22


(m) Receivables-continued

Theallowanceforimpairmentlossesrepresentstheamountoftradereceivablesandothertradereceivablesthe Directorate estimates will not be repaid. The allowance for impairment losses is based on objectiveevidenceandareviewofoverduebalances. TheDirectorateconsidersthefollowingisobjectiveevidenceofimpairment:

(a) becomingawareoffinancialdifficultiesofdebtors;

(b) defaultpayments;or

(c) debtsmorethan90daysoverdue.

TheamountoftheallowanceisrecognisedintheOperatingStatement.Theallowanceforimpairmentlossesis written off against the allowance account when the Directorate ceases action to collect the debt as itconsidersthatitwillcostmoretorecoverthedebtthanthedebtisworth.

Receivablesthathavebeenrenegotiatedbecausetheyarepastdueor impairedareaccountedforbasedontherenegotiatedterms.

(n) AcquisitionandRecognitionofProperty,PlantandEquipment

Property,plantandequipmentareinitiallyrecordedatcost.

Whereproperty,plantandequipmentareacquiredatnocost,orminimalcost,costisitsfairvalueasatthedate of acquisition. However, property, plant and equipment acquired at no or minimal cost as part of aRestructuringofAdministrativeArrangementsismeasuredatthetransferor’sbookvalue.

Property,plantandequipmentwithaminimumvalueof$5,000arecapitalised.

(o) MeasurementofProperty,PlantandEquipmentafterInitialRecognition

Property,plantandequipmentarevaluedusingthecostorrevaluationmodelofvaluation. Land,buildings,correctional facilityand land improvementsare measured at fair value. Leasehold improvements and plantandequipmentaremeasuredatcost.

Fairvalueforlandandnon-specialisedbuildingsismeasuredusingthemarketapproachvaluationtechnique.Thisapproachusespricesandotherrelevantinformationgeneratedbymarkettransactionsinvolvingidenticalorsimilarassets.

Fairvalueforspecialisedbuildingsandleaseholdimprovementsassetsaremeasuredbyreferencetothecostofreplacingtheremainingfutureeconomicbenefitsembodiedintheasset(i.e.depreciatedreplacementcost).Thisisthecostapproachvaluationtechnique.

Land,buildings,correctionalfacilityandlandimprovementsassetsarerevaluedevery3years.However,ifatanytimetheDirectorateconsidersthatthecarryingamountofanassetmateriallydiffers fromits fairvaluethen the asset will be revalued regardless of when the last valuation took place. Any accumulateddepreciation relating to buildings, correctional facility and land improvements at the date of revaluation iswrittenbackagainst thegrosscarryingamountof theassetand thenetamount is restated to the revaluedamountoftheasset.

TheDirectorate’sassets,includingLand,CorrectionalFacility,LandImprovementandBuildings,wererevaluedbyHerronToddWhitePtyLtdinaccordancewiththerequirementsofAustralianAccountingStandardAASB13‘FairValueMeasurement’.

181



23


(p) IntangibleAssets

TheDirectorate’sintangibleassetscompriseexternallyacquiredsoftwareforinternaluse.

Externallyacquiredsoftwareisrecognisedandcapitalisedwhen:

(a) itisprobablethattheexpectedfutureeconomicbenefitsthatareattributabletothesoftwarewillflowtotheDirectorate;

(b) thecostofthesoftwarecanbemeasuredreliably;and

(c) theacquisitioncostisequaltoorexceeds$50,000.

Capitalisedsoftwarehasafiniteuseful life. Softwareisamortisedonastraight-linebasisover itsuseful life,overaperiodnotexceeding5years.

IntangibleAssetsaremeasuredatcost.

(q) DepreciationandAmortisationofNon-CurrentAssets

Amortisation is used in relation to intangible assets and depreciation is applied to physical assets such asbuildings,landimprovementsandplantandequipment.

Landassetshaveanindefiniteusefullifeandarethereforenotdepreciated.

Leaseholdimprovementsaredepreciatedovertheestimatedusefullifeofeachasset,ortheunexpiredperiodoftherelevantlease,whicheverisshorter.

Alldepreciationiscalculatedafterfirstdeductinganyresidualvalueswhichremainforeachasset.

Depreciation/amortisationfornon-currentassetsisdeterminedasfollows:

ClassofAsset Depreciation/ UsefulLife(Years)AmortisationMethod

Buildings StraightLine 5–60

CorrectionalFacility StraightLine 12–45

LandImprovements StraightLine 5–60

LeaseholdImprovements StraightLine 2–10

PlantandEquipment StraightLine 4–10

ExternallyDevelopedSoftware StraightLine 2–5

Theusefullivesofallmajorassetsarereassessedonanannualbasis.

(r) Payables

Payables are initially recognised at fair value based on the transaction cost and subsequent to initialrecognitionatamortisedcost,withanyadjustmentstothecarryingamountbeingrecordedintheOperatingStatement.Allamountsarenormallysettledwithin30daysaftertheinvoicedate.

PayablesincludeTradePayables,AccruedExpensesandOtherPayables.




24


(s) Leases

TheDirectoratehasenteredintofinanceleasesandoperatingleases.Duetoachangeinwholeofgovernmentcar leasing arrangements with SG Fleet, all car finance leases for the Directorate are classified as operatingleasesfrom23April2015.Asaresult,nofinanceleasesareheldbytheDirectorateafterthisdate.

OperatingLeases

OperatingleasesdonoteffectivelytransfertotheDirectoratesubstantiallyalltherisksandrewardsincidentaltoownershipoftheassetunderanoperatinglease.OperatingleasepaymentsarerecordedasanexpenseintheOperatingStatementonastraightlinebasisoverthetermofthelease.

MotorVehicleLeasingArrangements2014-15

Changesweremadetothewhole-of-governmentmotorvehicleleasingarrangementswithSGFleetasaresultofwhichallsuchleaseswereclassifiedasoperatingleasesratherthanfinanceleasesfrom23April2015.TheleasedvehiclesheldasProperty,PlantandEquipment(underthepreviousfinanceleasearrangementwithSGFleet)werederecognisedandtheassociated lossonthederecognitionofthe leasedvehicleassetsreflectedunderOtherExpenses (refer toNote14:OtherExpenses). Thecorresponding finance lease liability (currentand non-current) was also derecognised and the associated gain from the derecognition of the liabilityreflectedunderOtherGains(refertoNote7:OtherGains).

(t) EmployeeBenefits

Employeebenefitsinclude:

• short-termemployeebenefitssuchaswagesandsalaries,annualleaveloading,andapplicableoncostifexpectedtobesettledwhollybeforetwelvemonthsaftertheendoftheannualreportingperiodinwhichtheemployeesrendertherelatedservices;

• otherlong-termbenefitssuchaslongserviceleaveandannualleave;and

• terminationbenefits.

On-costs include annual leave, long service leave, superannuation and other costs that are incurred whenemployeestakeannualandlongserviceleave.

WagesandSalaries

Accruedwagesandsalariesaremeasuredastheamountthatremainsunpaidtoemployeesattheendofthereportingperiod.

183

Community Services Directorate Notes to and Forming Part of the Financial Statem

For the Year Ended 30 June 2016 ents

Hiddenwords

25


(t) EmployeeBenefits-Continued

AnnualandLongServiceLeave

Annualandlongserviceleave,includingapplicableon-costs,thatarenotexpectedtobewhollysettledbeforetwelve months after the end of the reporting period when the employees render the related service aremeasuredat thepresentvalueofestimated futurepayments tobemade in respectofservicesprovidedbyemployeesuptotheendofthereportingperiod.Considerationisgiventothefuturewageandsalarylevels,experience of employee departures and periods of service. At the end of each reporting period end, thepresent value of future annual leave and long service leave payments is estimated using market yields onCommonwealthGovernmentbondswithtermstomaturity thatmatch,ascloselyaspossible, theestimatedfuturecashflows.

Annual leave liabilitieshavebeenestimatedontheassumptionthat theywillbewhollysettledwithinthreeyears.In2016,therateusedtoestimatethepresentvalueoffuturepaymentsis101.4%(101.0%in2015).

The rate used to estimate the present value of future payments for long service leave is 114.7% at30June2016(104.2%at30June2015).

The longservice leave liability isestimatedwithreferenceto theminimumperiodofqualifyingservice. Foremployees with less than the required minimum period of 7 years qualifying service, the probability thatemployeeswillreachtherequiredminimumperiodhasbeentakenintoaccountinestimatingtheprovisionforlongserviceleaveandapplicableon-costs.

AnnualandlongserviceleaveliabilitiesareclassifiedascurrentliabilitiesintheBalanceSheetwheretherearenounconditionalrightstodeferthesettlementoftheliabilityforatleast12months.Conditionallongserviceleave liabilitiesareclassifiedasnon-currentbecause theDirectoratehasanunconditional right todefer thesettlementoftheliabilityuntiltheemployeehascompletedtherequisiteyearsofservice.

(u) Superannuation

The Directorate receives funding for superannuation payments as part of the Government Payment forOutputs. The Directorate then makes payments on a fortnightly basis to the Territory Banking Account tocoveritssuperannuationliabilityfortheCommonwealthSuperannuationScheme(CSS)andthePublicSectorSuperannuationScheme(PSS).ThispaymentcoverstheCSS/PSSemployercontribution(butdoesnotincludetheproductivitycomponent).TheDirectoratepaystheproductivitycomponentdirectlytotheCommonwealthSuperannuationCorporation(CSC). TheCSSandPSSaredefinedbenefitsuperannuationplansmeaningthatthedefinedbenefits receivedbyemployeesarebasedon theemployee’syearsof serviceandaverage finalsalary.

Superannuationpaymentshavealsobeenmadedirectly tosuperannuation funds for thosemembersof thePublic Sector who are part of superannuation accumulation schemes. This includes the Public SectorSuperannuationSchemeAccumulationPlan(PSSAP)andschemesofemployeechoice.

The totalTerritory superannuation liability for theCSSandPSS is recognised in theChiefMinister, TreasuryandEconomicDevelopmentDirectorate’sSuperannuationProvisionAccount.TheCSCandexternal schemesrecognise the superannuation liability for the PSSAP and other schemes respectively. This superannuationliabilityisnotrecognisedatindividualagencylevel.

The ACT Government is liable for the reimbursement of the emerging costs of benefits paid each year tomembers of the CSS and PSS in respect of the ACT Government service provided after 1 July 1989. ThesereimbursementpaymentsaremadefromtheSuperannuationProvisionAccount.




26

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(v) EquityContributedbytheACTGovernment

Contributions made by the ACT Government, through its role as owner of the Directorate, are treated ascontributionsofequity.

IncreasesordecreasesinnetassetsasaresultofAdministrativeRestructuresarealsorecognisedinequity.

(w) Insurance

Major risks are insured through the ACT Insurance Authority. The excess payable, under this arrangement,variesdependingoneachclassofinsuranceheld.

(x) BudgetaryReporting

Explanations of major variances between the 2016 original budget and the 30 June 2016 actual results arediscussedinNote35BudgetaryReporting.

Thedefinitionof‘majorvariances’isprovidedinNote2(y)SignificantAccountingJudgementsandEstimates–BudgetaryReporting.

(y) SignificantAccountingJudgementsandEstimates

Intheprocessofapplyingtheaccountingpolicies listed inthisnote, theDirectoratehasmadethefollowingjudgements and estimates that have the most significant impact on the amounts recorded in the financialstatements:

(a) FairValueofAssets:TheDirectoratehasmadeasignificantestimateregardingthefairvalueofitsassets.Landandbuildings,includingthecorrectionalfacilityandlandimprovementsassets,havebeenrecordedat themarketvalueof similarpropertiesorassetsasdeterminedbyan independentvaluer.Thevaluerdiscountsthelandvaluetoreflectitsuseforcommunitypurposes.Insomecircumstances,buildingsthatare purpose built may in fact realise more or less in the market. The fair value of assets is subject tomanagementassessmentbetweenformalvaluations.

(b) Employee Benefits: Significant judgements have been applied in estimating the liability for employeebenefits. Theestimatedliabilityforannualandlongservice leaverequiresaconsiderationofthefuturewageandsalarylevels,experienceofemployeedepartures,probabilitythatleavewillbetakeninserviceandperiodsofservice. Theestimatealso includesanassessmentoftheprobabilitythatemployeeswillmeettheminimumserviceperiodrequiredtoqualifyforlongserviceleaveandthaton-costswillbecomepayable.

Thesignificant judgementsandassumptions included intheestimationofannualand longservice leaveliabilities include an assessment by an actuary. The Australian Government Actuary performed thisassessmentinMay2014.Theassessmentbyanactuaryisperformedevery5years.Howeveritmaybeperformed more frequently if there is a significant contextual change in the parameters underlying the2014report.ThenextactuarialreviewisexpectedtobeundertakenbyMay2019.

(c) ImpairmentLosses:Debtsarewrittenoffasimpairedwhensoidentified.Thewrite-offistoexpenseor,totheextentanallowance for impairmentalreadyexisted,asa reversalof theallowance.Anallowance israisedforanyimpairmentbasedonareviewofalloutstandingaccountsatyearend.

185



27

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED

(y) SignificantAccountingJudgementsandEstimates-Continued

(d) Estimationof theUseful LifeofProperty,PlantandEquipment: TheDirectoratehasmadea significantestimateindeterminingtheusefullivesofitsproperty,plantandequipment.Theestimationofproperty,plantandequipmenthasbeenbasedonthehistoricalexperienceofsimilarassets.Forassetsvaluedbyanexternal valuer, the Directorate applies the estimated remaining useful life of assets as assessed in thevaluation reports. Leasehold Improvements under a finance lease have a useful life equal to theestimatedusefullifeassessedbytheDirectorateatthetimeofacquisitionortheunexpiredperiodofthelease.Forallotherplantandequipment,anassessmentoftheusefullifeoftheassetisdoneatthetimeof acquisition. The useful lives are assessed on an annual basis and any adjustments made whenconsidered necessary. Further disclosure concerning an asset’s useful life can be found at Note 2(q)DepreciationandAmortisationofNon-CurrentAssets.

(e) Budgetary Reporting – Explanation of Major Variances between Actual Amounts and Original BudgetAmounts: Significant judgements have been applied in determining what variances are considered as‘majorvariances’requiringexplanationsinNote35BudgetaryReporting.Variancesareconsideredtobemajorvariancesifbothofthefollowingcriteriaaremet:

• Thelineitemisasignificantlineitem:thelineitemactualamountaccountsformorethan10%oftherelevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. CurrentLiabilitiesandReceiptsfromOperatingActivitiestotals)ofthefinancialstatements;and

• Thevariances(originalbudgettoactual)aregreaterthanplus(+)orminus(-)10%ofthebudgetforthefinancialstatementlineitem.

FurtherinformationonthisisprovidedinNote2(x)BudgetaryReporting.

No other accounting assumptions or estimates have been identified that have a significant risk of causing amaterialadjustmenttocarryingamountsofassetsandliabilitieswithinthenextaccountingperiod.

(z) EarlyAdoptionofRevisedAccountingStandards

AASB2015-2amendsAASB101PresentationofFinancialStatementsincludingclarifyingthatagenciesshouldnotbedisclosingimmaterialinformationandthatthepresentationofinformationinnotescanandshouldbetailoredtoprovideuserswiththeclearestviewofanagency’sfinancialperformanceandfinancialposition.

AASB 2015-7 amends AASB 13 Fair Value Measurement to provide disclosure relief to not-for profit publicsectoragenciesfromcertaindisclosuresaboutthefairvaluemeasurementsofproperty,plantandequipmentheld for their current service potential rather than to generate net cash inflows. This includes relief fromdisclosures of quantitative information about the significant unobservable inputs used in fair valuemeasurementsandofthesensitivityofcertainfairvaluemeasurementstochangesinunobservableinputs.

(aa) AccountingStandardsadoptedearlyforthe2015-16reportingperiod

AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB101 andAASB2015-7Amendments toAustralian AccountingStandards –FairValueDisclosuresofNot-For -ProfitPublicSectorEntitieshavebeenearlyadoptedforthe2016reportingperiod,eventhoughthestandardsarenotrequiredtobeapplieduntilannualreportingperiodsbeginningonorafter1July2016.




28


(ab) ImpactofAccountingStandardsIssuedbutyettobeApplied

New and revised accounting standards and interpretations have been issued by the Australian AccountingStandardsBoardbutdonotapply to thecurrent reportingperiod. Thesestandardsand interpretationsareapplicable to future reporting periods. The Directorate does not intend to adopt these standards andinterpretations early. Where applicable, these Australian Accounting Standards will be adopted from theirapplication date. The implications of adopting the below pronouncements, when applicable, has beenaddressedbelow:

Standard Background ImplicationsforDirectorate

the

AASB 9 Financial Instruments (December(applicationdate1January2018)

2014) Thechangesrelatetotheclassification,measurementanddisclosuresoftheDirectorate’sfinancialassets.

Directoratehasnotassessedtheimpactthisstandardforitsmaterialimpact.

of

AASB 2010-7 Amendments to AustralianAccounting Standards arising from AASB 9(December2010)[AASB1,3,4,5,7,101,102,108,112, 118, 120, 121, 127, 128, 131, 132, 136, 137,139, 1023 and 1038 and Interpretations 2, 5, 10,12,19and127](applicationdate1January2018)

Thechangesrelatetodisclosurerequirements,andonlysomearerelevanttotheDirectorate


of

AASB 2014-1 Amendments to AustralianAccounting Standards –Part E FinancialInstruments[AASB1,3,4,5,7,9(December2009),9 (December2010),101,102,108,112,118,120,121,132,136,137,139,Interpretation2,5,10,12,16,19,and107](applicationdate1January2018)

Thechangesrelatetodisclosurerequirements


of

AASB 2014-7 Amendments to AustralianAccounting Standards arising from AASB 9(December 2014) [AASB 1, 2, 3, 4, 5, 7, 13, 101,102, 108, 110, 112, 120, 121, 123, 128, 132, 133,136,137,139,1023,1038,1049,Interpretation2,5,10,12,16,19&127](applicationdate1January2018)



of

AASB 2016-2 Amendments to AustralianAccounting Standards – Disclosure Initiative:Amendments to AASB 107 (application date1January2017)



of

187

CommunityServicesDirectorateNotes to and Forming Part of the Financial Statements

FortheYearEnded30June2016Hiddenwords

29

NOTE 3. GOVERNMENT PAYMENT FOR OUTPUTS

GovernmentPaymentforOutputs(GPO)isrevenuereceivedfromtheACTGovernmenttofundthecostsofdeliveringoutputs.TheACTGovernmentpaysGPOappropriationonafortnightlybasis.

2016 2015 $’000 $’000 RevenuefromtheACTGovernment GovernmentPaymentforOutputsa 251,972 244,172 TotalGovernmentPaymentforOutputs 251,972 244,172

a) Increase in Government Payment for Outputs from 2015 of $7.800 million is mainly due to additionalfundingreceived fornew initiatives,suchasAStepup forOurKidsandtheadditional fundingreceived forcostpressuresinthe2015-16yearviatheTreasurer’sAdvancerelatingtovoluntaryredundancies,paymentsowed to the Commonwealth, increased workers’ compensation insurance premiums, and service demandpressures. These were partially offset by reductions in relation to Social and Community Services (SACS)funding,CommonwealthGrants– for theNationalDisabilityServiceSpecialPurposePaymentsandgeneralwholeofgovernmentsavingsefficiencies.

NOTE 4. USER CHARGES

UserChargesrevenueisderivedbyprovidingservicestootherACTGovernmentagenciesandtothepublic.User-chargesrevenue isnotpartofACTGovernmentappropriationand ispaidbytheuserof theservices.Thisrevenueisdrivenbyconsumerdemandandiscommercialinnature.

2016 2015$’000 $’000

UserCharges-ACTGovernment

UserCharges-ACTGovernment

519

494

TotalUserCharges-ACTGovernment 519 494

UserCharges-Non-ACTGovernment

RespiteCareforDisabilityClients

- 7IndividualSupportAccommodationforDisabilityClients 154 198TenantRentalIncome 421 359FacilitiesHire 621 613Other 503 341

TotalUserCharges-Non-ACTGovernment 1,699 1,518TotalUserCharges

2,218 2,012




30

NOTE 5. RESOURCES RECEIVED FREE OF CHARGE

2016 2015 $’000 $’000RevenuefromACTGovernmentEntities ResourcesreceivedfreeofchargefromotherACTGovernment entitiesaredetailedasfollows: JusticeandCommunitySafetyDirectorate 1,312 1,075 TotalResourcesReceivedFreeofCharge 1,312 1,075

NOTE 6. OTHER REVENUE

OtherRevenuearisesfromthecoreactivitiesoftheDirectorate.OtherRevenueisdistinctfromOtherGains,asOtherGainsareitemsthatarenotpartofthecoreactivitiesoftheDirectorate.

2016 2015 $’000 $’000OtherRevenuefromACTGovernmentEntities Grants 213 241Other 926 154 TotalOtherRevenuefromACTGovernmentEntities 1,139 395 OtherRevenuefromNon-ACTGovernmentEntities Workers'CompensationInsuranceRecoveries 155 630Grantsa 9,922 4,150ReturnofPriorYear'sExpenditureb 2,634 291Other 231 127 TotalOtherRevenuefromNon-ACTGovernmentEntities 12,942 5,198TotalOtherRevenue 14,081 5,593

a)Theincreaseof$5.772millionfrom2014-15relatesmainlytofundingreceivedfromtheCommonwealthfortheNationalDisabilityInsuranceScheme(NDIS).

b)Theincreaseof$2.344millionfrom2014-15relatestorecoveryofcostsforNDIS($1.700m)andreturnedGrantsfromNon-GovernmentOrganisationsduetoearlyentryintotheNDIS($0.811m).

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31

NOTE 7. OTHER GAINS

OtherGainsare transactions thatarenotpartof theDirectorate's coreactivities. OtherGainsaredistinctfromotherrevenue,asotherrevenuearisesfromthecoreactivitiesoftheDirectorate.

2016 2015 $’000 $’000 GainsfromtheSaleofAssets 21 50GainfromDerecognitionofFinanceLeaseLiabilitya - 2,782GainsfromtheContributionofAssetsb 2,138 2,151RestructureFundc 5,503 5,714Donations - 1 TotalOtherGains 7,662 10,698

a) The decrease of $2.782 million from 2014-15 relates to the change in the whole-of government motorvehicle leasing arrangements with SG Fleet on 23 April 2015. In 2015-16 all motor vehicle leases for theDirectoratewereclassifiedasoperatingleases.

b) Gains from Contribution of Assets for 2015-16 relate to the transfer of six Affordable Rental OfficepropertiesfromHousingACT(2015:seven).

c) Restructure Fund relates to reimbursement of monies from Chief Minister, Treasury and EconomicDevelopment Directorate for employee redundancies and associated restructure costs relating to thetransitionofservicesfromDisabilityACTandTherapyACTtotheNDIS.

NOTE 8. EMPLOYEE EXPENSES

2016 2015$’000 $’000

aSalariesandWages 71,093 78,583

AnnualLeaveExpense 4,190 4,688LongServiceLeaveExpense 1,548 1,255

Workers'CompensationInsurancePremiumbTerminationExpense

11,09513,867

10,1103,606

OtherEmployeeBenefitsandOn-Costs

TotalEmployeeExpenses

812 717

102,605 98,959

a) Thedecreaseof$7.490million from2014-15 reflects the reduction in thenumberof staffasvoluntaryredundanciesweretakenbyDisabilityACTandTherapyACTstaffwiththetransitiontotheNDIS.

b) The increase of $10.261 million from 2014-15 relates mainly to employees leaving the Directorate as aresultofthetransitionofDisabilityACTandTherapyACTservicestotheNDISandrecognitionofaprovisionof$6.503millionforstaffleavingtheACTPublicServicein2016-17.




32

NOTE 9. SUPERANNUATION EXPENSES The Directorate receives funding for superannuation payments as part of the Government Payment forOutputs.TheDirectoratethenmakespaymentsonafortnightlybasistotheTerritoryBankingAccountforitsportion of the Territory's Commonwealth Superannuation Scheme (CSS) and Public Sector SuperannuationScheme (PSS) superannuation liability. The Productivity Benefit for these schemes is paid directly to theCommonwealthSuperannuationCorporation(CSC).

SuperannuationpaymentsaremadedirectlytoCSCtocoverthesuperannuationliabilityforemployeesthatareinthePublicSectorSuperannuationSchemeAccumulationPlan(thePSSAP).

Superannuation payments are also made to external providers as part of the employee Fund of Choicearrangements,andtoemploymentagenciesforthesuperannuationcontributiontheDirectorateisrequiredtomakeforthecontractstaffitemploys.

2016 2015$’000 $’000

SuperannuationContributionstotheTerritoryBankingAccount 5,176 5,724ProductivityBenefit 713 787SuperannuationPaymenttoCSC(forthePSSAP) 451 488SuperannuationtoExternalProviders

aTotalSuperannuationExpenses

4,572 4,819

10,912 11,818

a) The decrease in Superannuation expenses is due to the reduction in the average number of full-timeequivalent(FTE)staffin2015-16asaresultofthetransitionofDisabilityACTandTherapyACTservicestotheNDIS.

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33

NOTE 10. SUPPLIES AND SERVICES

2016 2015$’000 $’000

ClientServices 716 609EmploymentAgencyServices 7,205 7,488

aITServices 6,286 5,600bTravelandTransport 649 1,448

ContractorsandConsultants 3,228 3,490cOperatingLeaseRentalPayments 7,069 5,768

StaffDevelopmentandRecruitment 1,708 1,935RepairsandMaintenance 972 794Printing,StationeryandPublications 445 527Communications 744 805DomesticServicesandSupplies 1,418 1,650OtherPropertyExpenses 1,061 1,020MinorPlantandEquipment 143 144ExternalBureauServices 2,873 2,861InsuranceExpenses 358 335LegalExpenses 1,430 1,085HireCharges 1,071 772PublicRelationsandMedia 528 709Other

TotalSuppliesandServices

939

38,843

823 37,863

a)Theincreaseof$0.686millionfrom2014-15relatestoSharedServicesICTServicePartnershipAgreement(SPA)chargesandsoftwarelicenceandmaintenancecosts.

b)Thedecreaseof$0.799millionfrom2014-15isassociatedwithfewermotorvehiclesin2015-16resultinginadecreaseinaccidentrepairs,registration,petrolandfleetmanagementfees.

c)Theincreaseof$1.301millionfrom2014-15isassociatedwiththechangetoleasearrangementsforleasedmotor vehicles which took effect on 23 April 2015. This change in arrangements resulted in increase inoperatingleasecostsin2015-16.




34

NOTE 11. DEPRECIATION AND AMORTISATION

2016 2015$’000 $’000

Depreciation

CorrectionalFacility 934

931Buildings 589 625LandImprovements 87 89LeaseholdImprovements 391 417CommunityandHeritageAssets - 11PlantandEquipment 48 53MotorVehicles - 525

aTotalDepreciation 2,049

2,651

Amortisation

ExternallyPurchasedSoftware 280

135

TotalAmortisation 280 135

TotalDepreciationandAmortisation 2,329

2,786

a)Thedecreaseindepreciationisduemainlytothechangeinmotorvehiclesleasingarrangementswhichtookeffecton23April2015andleasedmotorvehiclesarenolongerrecordedasProperty,PlantandEquipment.Asaresultnodepreciationwasrecordedonmotorvehiclesin2015-16financialyear.

NOTE 12. GRANTS AND PURCHASED SERVICES

Grantsareamountsprovidedtonon-ACTGovernmententitiesunderthecommunityservicesanddisabilityservicesprograms.Grantsmaybeforcapitalorrecurrentpurposesandthenameorcategoryreflectstheuseof the grant. The grants given are usually subject to terms and conditions set out in the contract,correspondence,orbylegislation.

Purchased services are amounts paid to obtain services from other ACT Government entities and externalparties.

2016 2015$’000 $’000

Paymentsto

TotalGrants

ServiceProvidersandNon-Government

andPurchasedServices

Organisationsa 116,469 108,846

116,469 108,846

a) Payments to Service Providers and Non-Government Organisations (NGO) are largely for the delivery ofdisabilityservices,outofhomecareforchildreninneedandtheprovisionofprogramsfortheChildandYouthProtectionServices.AsignificantproportionofthisincreaseisduetoahigherACTGovernmentcontributiontotheCommonwealthGovernmenttosupporttheoperationsoftheNDIS.

193



35

NOTE 13. BORROWING COSTS

2016 2015

$’000 $’000

FinanceCostonMakeGood (173) 52FinanceChargesonFinanceLeases - 145

TotalBorrowingCosts (173) 197

NOTE 14. OTHER EXPENSES

2016 2015$’000 $’000

aWaivers,ImpairmentLossesandWrite-Offs(seeNote15) 26 2,169

LossonDisposalofAssetsLossonDerecognitionofMotorVehiclesunderaFinanceLeaseb

--

652,702

ResourcesProvidedFreeofCharge

TotalOtherExpenses

544 339

570 5,275

a)ThedecreaseinWaivers, ImpairmentLossesandWrite-OffsrelatemainlytothewaiveroftheBoundlessPlaygroundloan.On8December2014,theTreasurerexercisedauthorityundersubsection131(1)(a)oftheFinancialManagementActtowaivetheloanowingtotheAustralianCapitalTerritory.b)Duetothechangeinthewhole-of-governmentcarleasingarrangementswithSGFleeton23April2015,allcarleasesfortheDirectoratewereclassifiedasoperatingleasesandthemotorvehicleswerede-recognisedin2014-15.Therewerenofinanceleasesin2015-16.




36

NOTE 15. WAIVERS, IMPAIRMENT LOSSES AND WRITE-OFFS

Under Section 131 of the FMA the Treasurer may, in writing, waive the right to payment of an amountpayabletotheAustralianCapitalTerritory.

A waiver is the relinquishment of a legal claim to a debt. The write-off of a debt is the accounting actiontakentoremoveadebtfromthebooks,butdoesnotrelinquishthelegalrightoftheDirectoratetorecovertheamount.

Thewaivers,impairmentlossesandwrite-offslistedbelowhaveoccurredduringthereportingperiodfortheDirectorate.

2016 2015$’000 $’000

Waivers aWaivers - 2,164

TotalWaivers - 2,164

ImpairmentLosses

ImpairmentLossfromReceivables TradeReceivables 20 (219)TotalImpairmentLossesfromReceivables 20 (219)

TotalImpairmentLosses 20 (219)

Write-Offs

IrrecoverableDebts 6

224

TotalWrite-Offs 6 224

TotalImpairmentLossesandWrite-Offs

26 2,169

a) On 8 December 2014, the Treasurer exercised authority under subsection 131 (1) (a) of the FinancialManagement Act to waive the loan owing to the Australian Capital Territory, in relation to the BoundlessPlaygroundloan.

NOTE 16. ASSET TRANSFERS 2016 2015 $’000 $’000 AssetTransfersa 2,184 -TotalAssetTransfers 2,184 -

a)AssetTransfersconsistsmainlyofthetransferofMarlowCottagetoHousingACT($1.102m)andDisabilityRespiteHouse inChifley toChiefMinister,TreasuryandEconomicDevelopmentDirectorate -ACTPropertyGroup($1.082m).

-2015-16Comment

-16

195



37

NOTE 17. AUDITOR’S REMUNERATION

Auditor'sremunerationconsistsoffinancialauditservicesprovidedtotheDirectoratebytheACTAuditOffice.

NootherserviceswereprovidedbytheACTAuditOffice.

2016 2015$’000 $’000

AuditServices

Audit

Total

FeesPaidorPayable

AuditServices

totheACTAuditOffice 112

108

112 108

NOTE 18. CASH AND CASH EQUIVALENTS

TheDirectorateholdsonebankaccountwiththeWestpacBankaspartofthewhole-of-governmentbankingarrangements.Aspartofthesearrangements,theDirectoratedoesnotreceiveanyinterestonthisaccount.

2016 2015

$’000 $’000

BankaCashat 4,262 12,258CashonHand

TotalCashandCashEquivalents

24 24

4,286 12,282

a)Thereductionin2015-16ismainlyduetomorefundsheldatbankat30June2015forfinalfortnight’spayof salaries and wages ($3.700m) and less cash held at bank for NDIS sector development grant funding($3.753m)andothersmallerprojectsfundedbyexternalorganisationssubsequentlypaidin2015-16.




38

NOTE 19. RECEIVABLES

2016 2015$’000 $’000

CurrentReceivables aTradeReceivables 2,159

873Less:AllowanceforImpairmentLosses (26) (14)

2,133 859

NetGoodsandServicesTaxReceivable 767 464bAccruedRevenue 2,159 3,140

OtherCurrentReceivables

TotalCurrentReceivables

TotalReceivables

-

5,059

5,059

11

4,474 4,474

a)Theincreaseof$1.286millionmainlyrelatestorecoveryofgrantsforYoungerPeopleinAgedCarefromACTHealth($1.000m).

b)Thedecreaseof$0.981millionrelates tomoniesrecoveredfromChiefMinister,TreasuryandEconomicDevelopment Directorate relating to voluntary redundancy payments and associated restructure costs as aresultofthetransitionofservicesfromDisabilityACTandTherapyACTtotheNDIS.

AgeingofReceivables

Overdue Not Lessthan 30to Greaterthan

Overdue 30Days 60Days 60Days Total$'000 $'000 $'000 $'000 $'000

2016

NotImpaired1 Receivables 4,507 546 4 2 5,059

Impaired Receivables - - - 26 26 2015

NotImpaired1 Receivables 4,230 191 2 51 4,474Impaired Receivables - - - 14 14

1) "NotImpaired"referstoNetReceivables(thatisGrossReceivableslessImpairedReceivables).

The $0.546 million mainly relates to a recovery from Housing ACT to the Directorate to covercorporatecosts.

197



39

NOTE 19. RECEIVABLES - CONTINUED 2016 2015 $’000 $’000ReconciliationoftheAllowanceforImpairmentLosses AllowanceforImpairmentLossesattheBeginningoftheReportingPeriod 14 233AdditionalAllowanceRecognised 26 5ReductioninAllowancefromAmountsRecovered (8) -

ReductioninAllowancefromAmountsWrittenOff (6) (224) AllowanceforImpairmentLossesattheEndoftheReportingPeriod 26 14

Therearenocarryingamountoffinancialassetsthatarepastdueorimpaired,whosetermshavebeenrenegotiated. 2016 2015 $’000 $’000ClassificationofACTGovernment/Non-ACTGovernmentReceivables ReceivableswithACTGovernmentEntities NetTradeReceivables 1,912 173AccruedRevenue 2,140 3,058OtherCurrentReceivables - 11 TotalReceivableswithACTGovernmentEntities 4,052 3,242 ReceivableswithNon-ACTGovernmentEntities NetTradeReceivables 221 686AccruedRevenue 19 82NetGoodsandServicesTaxReceivable 767 464 TotalReceivableswithNon-ACTGovernmentEntities 1,007 1,232TotalReceivables 5,059 4,474




40

NOTE 20. PROPERTY, PLANT AND EQUIPMENT

Property,plantandequipment includethe followingclassesofassets - Land,CorrectionalFacility,Buildings,LandImprovements,LeaseholdImprovementsandPlantandEquipment.

LandincludesalllandheldbytheDirectoraterelatingtoyouthfacilities.

TheCorrectionalFacilityheldbytheDirectoraterelatestothebuildingsattheBimberiYouthJusticeCentre.

BuildingsandLandImprovementsheldbytheDirectorateincludeyouthfacilitiesacquiredforthedeliveryofoutputsandincludethewrittendownvalueoflandimprovementsmadeinrelationtothosefacilities.LandImprovementsareadditionstoareasoflandthatincreasetheutilityofthelandandhavealimitedusefullifeand are depreciated e.g. parking lots, retaining walls and purpose built children's playground structuresadjoiningabuilding.

Leasehold Improvements represent capital expenditure incurred in relation to leased assets and any makegoodrequirementsrelatingtotheleasedpremises.Thisincludesfit-outofleasedbuildingsundertakenbytheDirectoratemainly inrelationto itsoccupancyofSwansonPlazaBelconnen,NatureConservationHouseandtheGroundFloorandLevels4,5,6,7and8of11MooreStreetCanberraCity.

Plant and Equipment includes communications equipment, furniture and fittings, medical equipment andofficeequipment.

ValuationofNon-CurrentAssets

The Directorate’s assets were revalued by an independent property valuation and advisory organisation,Herron Todd White Pty Ltd in 2016. All Land, Buildings and Land improvements assets were valued inaccordance with the requirements of Australian Accounting Standard AASB 13 ‘Fair Value Measurement’ at30June2016.

199



41

NOTE 20. PROPERTY, PLANT AND EQUIPMENT – CONTINUED

2016 2015$’000 $’000

LandandBuildingsaLandatFairValue 10,220 9,530

TotalLandAssets 10,220 9,530

bCorrectionalFacilityatFairValue 39,032 42,115Less:AccumulatedDepreciation

TotalWrittenDownValueofCorrectionalFacility

cBuildingsatFairValue Less:AccumulatedDepreciationLess:AccumulatedImpairmentLosses

TotalWrittenDownValueofBuildings

dLandImprovementsatFairValue Less:AccumulatedDepreciationLess:AccumulatedImpairmentLosses

TotalWrittenDownValueofLandImprovements

TotalWrittenDownValueofCorrectionalFacility,

(77) (1,938)38,955 40,177

18,441(47)

(367)

20,719 (1,164)

(367)18,027 19,188

3,333(7)

(42)

.3,656(175)

(42)3,284 3,439

BuildingsandLandImprovementsTotalLandandWrittenDownValueofCorrectionalFacility,Buildingsand

60,266 62,804

LandImprovements

LeaseholdImprovements

70,486 72,334

LeaseholdImprovementsatCost 13,848 13,552Less:AccumulatedDepreciation

TotalWrittenDownValueofLeaseholdImprovements

PlantandEquipment

(12,167) (11,776)1,681 1,776

PlantandEquipmentatCost 517 556Less:AccumulatedDepreciation

TotalWrittenDownValueofPlantandEquipment

TotalWrittenDownValueofProperty,PlantandEquipment

(317) (269)200 287

72,367 74,397




42


a)TheincreaseinLandatFairValuerelatestotransferofsixAffordableRentalOfficepropertiesfromHousingACTandrevaluationincrementin2015-16.ThiswaspartiallyoffsetbytransferofMarlowCottagetoHousingACT.

b) The decrease in Correctional Facility at Fair Value relates to revaluation decrement in 2015-16, partiallyoffsetbycapitalupgradeadditionsin2016.

c)ThedecreaseinBuildingsatFairValuerelatestorevaluationdecrementin2015-16andtransferofMarlowCottage to Housing ACT and Disability Respite House to CMTEDD. This was partially offset by capitalisedprojectscompletedin2016.

d) Thedecrease inLand ImprovementsatFairValue relates to revaluationdecrement in2015-16.Thiswaspartiallyoffsetbysomeminoradditionsin2016.

201

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ReconciliationofProperty,Plantand

Equ

ipment

Thefollowingtableshow

sthemovem

ento

fProperty,Plantand

Equ

ipmentd

uring2015-16.

Bu

ildingsand

Correctio

nal

Land

Leasehold

Planta

nd

Land

Facility

Improvem

entsImprovem

ents

Equipm

ent

Total

$’000

$’000

$’000

$’000

$’000

$’000

CarryingAmou

ntattheBeginningoftheReportin

gPerio

d9,530

40,177

22,627

1,776

287

74,397

Additio

ns

-394

1,354

1,160

82,916

Disposals

--

-(911)

-(911)

NetTransfersoutoftheDire

ctorate

(690)

-(1,494)

--

(2,184)

NetTransfersto

theDirectorate

707

-1,431

--

2,138

RevaluationIncrem

ent/(Decrement)

673

(682)

(1,931)

--

(1,940)

Reclassification

--

-47

(47)

-De

preciatio

n-

(934)

(676)

(391)

(48)

(2,049)

CarryingAmou

ntattheEnd

oftheReportin

gPerio

d10,220

38,955

21,311

1,681

200

72,367


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ReconciliationofProperty,Plantand

Equ

ipment

Thefollowingtableshow

sthemovem

ento

fProperty,Plantand

Equ

ipmentd

uring2014-15.

Bu

ildingsand

Commun

ity

Co

rrectio

nal

Land

Leasehold

andHerita

ge

Worksof

Planta

nd

Land

Facility

Improvem

entsImprovem

ents

Assets

Art

Equipm

ent

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

CarryingAmou

ntattheBeginningoftheReportin

gPerio

d52,725

41,108

132,026

2,110

29,031

14,021

3,492

274,513

Additio

ns

--

34

175

--

1,041

1,250

Disposals

--

(53)

(92)

--

(904)

(1,049)

NetTransfersoutth

roughAd

ministrativeRe

structuring

(43,795)

-(110,217)

-(29,020)

(14,021)

(62)

(197,115)

NetTransfersto

theDirectorate

600

-1,551

--

--

2,151

OtherM

ovem

ents

--

--

--

(2,702)

(2,702)

Depreciatio

n-

(931)

(714)

(417)

(11)

-(578)

(2,651)

CarryingAmou

ntattheEnd

oftheReportin

gPerio

d9,530

40,177

22,627

1,776

--

287

74,397

203



45


FairValueHierarchy

Thedirectorateisrequiredtoclassifyproperty,plantandequipmentintoaFairValueHierarchythatreflectsthesignificanceoftheinputsusedindeterminingtheirfairvalue.TheFairValueHierarchyismadeupofthefollowingthreelevels:

• Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that thedirectoratecanaccessatthemeasurementdate;

• Level 2 – inputs other than quoted prices included within Level 1 that are observable for asset orliability,eitherdirectlyorindirectly;and

• Level3–inputsthatareunobservableforparticularassetsorliabilities.

DetailsoftheDirectorate’sproperty,plantandequipmentatfairvalueandinformationabouttheFairValueHierarchyat30June2016areasfollows: 2016 ClassificationAccordingtotheFairValueHierarchy

Level1 Level2 Level3 Total $’000 $’000 $’000 $’000

Property,PlantandEquipmentatFairValue Land - 5,010 5,210 10,220Buildings - 7,366 13,945 21,311CorrectionalFacility - - 38,955 38,955

- 12,376 58,110 70,486

DetailsoftheDirectorate’sproperty,plantandequipmentatfairvalueandinformationabouttheFairValueHierarchyat30June2015areasfollows: 2015 ClassificationAccordingtotheFairValueHierarchy

Level1 Level2 Level3 Total $’000 $’000 $’000 $’000

Property,PlantandEquipmentatFairValue Land - 3,640 5,890 9,530Buildings - 7,337 15,290 22,627CorrectionalFacility - - 40,177 40,177

- 10,977 61,357 72,334




46


FairValueHierarchy

ValuationTechniques,Inputsandprocesses

Level2ValuationTechniquesandInputs

ValuationTechnique:ThevaluationtechniqueusedtovalueLandandBuildingsassociatedwiththeAffordableRentalOfficeproperties (for thecomparativeyear) is themarketapproachwhichreflects recenttransactionpricesforsimilarproperties(comparableinlocationandsize).

Inputs:Pricesandotherrelevantinformationgeneratedbymarkettransactionsinvolvingcomparablelandandbuildingsandmarketanalysiswereconsidered.RegardwastakenoftheCrownLeasetermsandtenure,theAustralianCapitalTerritoryPlanandtheNationalCapitalPlan,whereapplicable,aswellascurrentzoning.

Level3ValuationTechniquesandInputs

ValuationTechnique:Landheldwherethereisnoactivemarketorsignificantrestrictionsisvaluedthroughthemarketapproachwhichvaluesaselectionoflandwithsimilarapproximateutility.

Inputs:Indeterminingthevalueoflandwithsimilarapproximateutilitysignificantadjustmenttomarketbaseddatawasrequired.

ValuationTechnique:BuildingsandCorrectionalFacilitywereconsideredspecialisedassetsbythevaluerandmeasured using the cost approach that reflects the cost to a market participant to construct assets ofcomparableutilityadjustedforobsolescence.ForBuildings,historicalcostpersquaremetreoffloorareawasalsousedinmeasuringfairvalue.

Inputs: In determining the value of Buildings and Correctional Facility regard was given to the age andcondition of the assets, their estimated replacement cost and current use. This required the use of datainternaltotheDirectorate.

Therehasbeennochangetotheabovevaluationtechniquesduringtheyear.

Transfers inandoutofafairvaluelevelarerecognisedonthedateoftheeventorchangeincircumstancesthatcausedthetransfer.

205




FairValueMeasurementsusingSignificantUnobservableInputs(Level3)

47

Correctional

Land Buildings Facility2016 $’000 $’000 $’000

FairValueattheBeginningoftheReportingPeriod 5,890 15,290 40,177Additions - 1,354 394RevaluationIncrements/(Decrements)RecognisedinOtherComprehensiveIncome 10 (743) (682)(Disposal)FromTransfers (690) (1,494) -Depreciation - (462) (934)

FairValueattheEndoftheReportingPeriod 5,210 13,945 38,955 Community

Correctional andHeritageLand Buildings Facility Assets

2015 $’000 $’000 $’000 $’000

FairValueattheBeginningoftheReportingPeriod 49,685 126,071 41,108 29,031Additions - 34 - -(Disposal)throughAdministrativeRestructuring (43,795) (110,217) - (29,020)Depreciation - (545) (931) (11)WriteOffFairValueattheEndoftheReportingPeriod

- (53) - -5,890 15,290 40,177 -





InformationaboutSignificantUnobservableInputs(Level3)inFairValueMeasurements

48

Item FairValueat30June SignificantUnobservableInputs

2016 2015$'000 $'000

ValuationTechnique:MarketApproachLand 5,210 5,890 Selectionoflandwithsimilarapproximateutility

ValuationTechnique:DepreciatedReplacementCostBuildings

13,945

15,290

Costsderivedfromquantityfromactualcostsforrecent

surveyorsourcedmaterialcapitalworks

and

Historicalcostpersquaremetre

CorrectionalFacility

38,955

40,177 Costsderivedfromquantityfromactualcostsforrecent

surveyorsourcedmaterialcapitalworks

and

Historicalcostpersquaremetre

207



NOTE 21. INTANGIBLE ASSETS

IntangibleAssetsconsistsofexternallypurchasedreportingandrecordsmanagementsoftware.

49

2016 2015$’000 $’000

ExternallyPurchasedSoftwareComputerSoftwareatCost 1,786 1,556

Less:AccumulatedAmortisation (1,162) (883)TotalExternallyPurchasedSoftware 624 673TotalIntangibleAssets 624 673

ReconciliationofIntangibleAssets

ThefollowingtableshowsthemovementofIntangibleAssetsfromthebeginningtotheendof2015-16.

ExternallyPurchasedSoftware Total$’000 $’000

CarryingAmountattheBeginningoftheReportingPeriod 673 673

Additions 231 231Amortisation (280) (280)CarryingAmountattheEndoftheReportingPeriod 624 624

ThefollowingtableshowsthemovementofIntangibleAssetsfromthebeginningtotheendof2014-15.

ExternallyPurchasedSoftware Total$’000 $’000

CarryingAmountattheBeginningoftheReportingPeriod 252 252

Additions 556 556AmortisationCarryingAmountattheEndoftheReportingPeriod

(135) (135)673 673




50

NOTE 22. CAPITAL WORKS IN PROGRESS CapitalWorksinProgressareassetsbeingconstructedoverperiodsoftimeinexcessofthepresentreportingperiod.Theseassetsoftenrequireextensiveinstallationworkorintegrationwithotherassets,andcontrastwith simpler assets that are ready for use when acquired, such as motor vehicles and equipment. CapitalWorksinProgressarenotdepreciatedastheDirectorateisnotcurrentlyderivinganyeconomicbenefitsfromthem.

Assets,whichareunderconstruction,includebuildingsandlandimprovements.

2016

2015 $’000 $’000

CapitalWorksinProgress 16 395SoftwareWorksinProgress - 79

TotalCapitalWorksinProgress 16 474ReconciliationofCapitalWorksinProgress

ThefollowingshowsthemovementofCapitalWorksinProgressduring2015-16and2014-15.

2016 2015 $’000 $’000 CarryingAmountattheBeginningoftheReportingPeriod 474 3,485 aAdditions 1,564

963

TransferoutofCapitalWorksinProgressduetoAdministrativeArrangementOrders(AAO) - (3,209)CapitalWorksinProgressCompletedandTransferred

btoProperty,PlantandEquipment (1,791) (209)CapitalWorksinProgressCompletedandTransferredtoIntangiblesCarryingAmountattheEndoftheReportingPeriod

(231) (556)16 474

a) Additionstocapitalworks inprogress in2015-16mainlyrelatestocapitalupgradesoftheBimberiYouthJusticeCentre,refurbishmentoftheTherapyACTBuildinginHolderandtheDisabilityRespiteHouseinChiefly.

b) CapitalWorksinProgresscompletedandtransferredtoPropertyPlantandEquipmentin2015-16mainlyrelates to refurbishment works finalised in the Therapy ACT Building in Holder, capital upgrade in BimberiYouthJusticeCentreandtheworkfinalisedintheDisabilityRespiteHouseinChiefly.

.

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ThefollowingtableshowsthemovementofCapitalWorksinProgressduring2015-16.

Bu

ildin

gsa

nd

La

nd

Im

prov

emen

ts

Softw

are

Capi

talW

orks

W

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in

in

Pro

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Tota

l

$’00

0$’

000

$’00

0

CarryingAmountattheBeginningoftheReportingPeriod

395

79

474

Additions

1,412

152

1,56

4CapitalWorksinProgressCompletedandTransferredto

Property,PlantandEquipment

(1,791)

-(1

,791

)CapitalWorksinProgressCompletedandTransferredto

Intangibles

-(231)

(231

)Ca

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Reco

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ThefollowingtableshowsthemovementofCapitalWorksinProgressduring2014-15.

Build

ings

and

Her

itage

and

La

nd

Com

mun

ity

Wor

kso

fArt

Impr

ovem

ents

As

sets

Cap

ital

Capi

tal

Softw

are

Wor

ksin

W

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in

Wor

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W

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Prog

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Pr

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ss

Prog

ress

Pr

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ss

Tota

l

$’00

0$’

000

$’00

0$’

000

$’00

0

CarryingAmountattheBeginningoftheReportingPeriod

3,390

14

12

69

3,48

5Additions

397

--

566

963

CapitalWorksinProgressTransferredoutduetoAAO

(3,183)

(14)

(12)

-(3

,209

)CapitalWorksinProgressCompletedandTransferredto

Property,PlantandEquipment

(209)

--

-(2

09)

CapitalWorksinProgressCompletedandTransferredto

Intangibles

--

-(556)

(556

)Ca

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211



53

NOTE 23. OTHER ASSETS

2016 2015

$’000 $’000

CurrentOtherAssets Prepayments 287 181TotalOtherAssets 287 181 NOTE 24. PAYABLES 2016 2015 $’000 $’000CurrentPayables a TradePayables 3 6,069

OtherPayables 1,119 870bAccruedExpenses 995 5,514

TotalCurrentPayables 2,117 12,453TotalPayables 2,117 12,453

Payablesareagedasfollows:

NotOverdue 2,117 6,853OverdueforLessthan30Days - 2,118Overduefor30to60Days - 2,907OverdueforMorethan60Days - 575TotalPayables 2,117 12,453

ClassificationofACTGovernment/Non-ACTGovernmentPayables PayableswithACTGovernmentEntities

TradePayables - 4,746OtherPayables 119 99AccruedExpenses 382 709TotalPayableswithACTGovernmentEntities 501 5,554

PayableswithNon-ACTGovernmentEntities

TradePayables 3 1,323OtherPayables 1,000 771AccruedExpenses 613 4,805TotalPayableswithNon-ACTGovernmentEntities 1,616 6,899TotalPayables 2,117 12,453

a) The decrease of $6.066 million mainly relates to the payment of Shared Services ICT, Finance and HRcharges,officeaccommodationoperatingleasesandgrantspaymentsowingat30June2015.

b) The decrease of $4.519 million relates to a reduction in accrued expenses in 2015-16 for the ACTGovernment obligations under the National Partnership Agreement for Young People in Residential AgedCare.




54

NOTE 25. EMPLOYEE BENEFITS 2016 2015 $’000 $’000 CurrentEmployeeBenefits

aAnnualLeave 6,478 8,018LongServiceLeave 12,072 12,199

bAccruedSalaries 286 2,799cTermination 6,503 -

OtherBenefits 38 401TotalCurrentEmployeeBenefits 25,377 23,417 Non-CurrentEmployeeBenefits

LongServiceLeave 1,502 1,765TotalNon-CurrentEmployeeBenefits 1,502 1,765TotalEmployeeBenefits 26,879 25,182 ForDisclosurePurposesOnly EstimateofwhenLeaveisPayable

EstimatedAmountPayablewithin12months

AnnualLeave 5,332 4,582LongServiceLeave 4,161 1,387AccruedSalaries 286 2,799Termination 6,503 -OtherBenefits 38 401TotalEmployeeBenefitsPayablewithin12months 16,320 9,169 EstimatedAmountPayableafter12months

AnnualLeave 1,146 3,436LongServiceLeave 9,413 12,577TotalEmployeeBenefitsPayableafter12months 10,559 16,013 TotalEmployeeBenefits 26,879 25,182

At 30 June 2016, the Directorate employed 727 full-time equivalent (FTE) staff. There was 899 staff at30June2015.

a)Thereductionof$1.540millionrelatesmainlytoareductioninthenumberofFTEstaffin2015-16duetostafftakingvoluntaryredundanciesorterminatingtheiremploymentwiththeDirectorate.

b)Thereductionof$2.513millionisaresultofonedayofsalariesaccruedat30June2016comparedtoninedaysat30June2015.

c) The increase of $6.503 million relates to provision for termination payments to be made to staff takingvoluntaryredundanciesandexitingtheACTPublicService in2016-17duetotransitionofDisabilityACTandTherapyACTservicestotheNDIS.

213



55

NOTE 26. OTHER PROVISIONS 2016 2015 $’000 $’000CurrentOtherProvisions ProvisionforMakeGood 354 1,099 TotalCurrentOtherProvisions 354 1,099 Non-CurrentOtherProvisions ProvisionforMakeGood 1,127 348 TotalNon-CurrentOtherProvisions 1,127 348

aTotalOtherProvisions 1,481 1,447

a) The Provision for Make Good consists of the recognition of a provision for the Directorate’s leasedaccommodation ($1.481m). The make good provision is based on an agreed rate per square metre ofoccupancy,being$182persquaremeter(sqm)for11MooreSt,$50persqmforSwansonPlazaand$203persqmforNatureConservationHouse.

2016 2015 $’000 $’000ReconciliationoftheProvisionforMakeGood ProvisionforMakeGoodattheBeginningoftheReportingPeriod 1,447 1,487Increase/(Decrease)inProvisionduetochangesoftheLeaseTerm 206 (92)DecreaseinProvisionduetounwindingofDiscount (201) -IncreaseinProvisionduetounwindingofDiscount 29 52 ProvisionforMakeGoodattheEndoftheReportingPeriod 1,481 1,447 NOTE 27. OTHER LIABILITIES 2016 2015 $’000 $’000CurrentOtherLiabilities a OtherRevenueReceivedinAdvance 1,574 5,889 TotalCurrentOtherLiabilities 1,574 5,889 TotalOtherLiabilities 1,574 5,889 a)Thereductionof$4.315millionin2015-16ismainlyduetoareductioningrantsheldinadvanceforNDISsector development received from the Commonwealth Government and subsequently used for the NDISsectordevelopmentgrantsin2015-16.




56

NOTE28.EQUITY

AssetRevaluationSurplus

TheAssetRevaluationSurplusisusedtorecordtheincrementsanddecrementsinthevalueofeachclassofproperty,plantandequipment.

2016 2015 $’000 $’000 BalanceattheBeginningoftheReportingPeriod 6,159 55,785IncrementinLandduetoRevaluation 673 -(Decrement)inBuildingsandLandImprovements

aduetoRevaluation (2,613) -

Total(Decrease)intheAssetRevaluationSurplus (1,940) -

Transfer(from)AssetRevaluationSurplus (54)

(49,626)

BalanceattheEndoftheReportingPeriod 4,165 6,159

a)Thereductionof$2.613millionrelatestothenetassetrevaluationdecrementin2015-16.

215



57

NOTE 29. DISAGGREGATED DISCLOSURE OF ASSETS AND LIABILITIES

At30June2016 716INTRA

OutputClass OutputClass OutputClass OutputClass Unallocated Total

1 2 3 4

$’000 $’000 $’000 $’000 $’000 $’000

CurrentAssets a CashandCashEquivalents 1,090 204 323 95 2,574 4,286

bReceivables 2,804 67 905 518 765 5,059OtherAssets 54 7 113 113 287TotalCurrentAssets 3,948 278 1,341 726 3,339 9,632 Non-CurrentAssets

Property,PlantandEquipment 4,490 10,478 14,782 42,617 - 72,367IntangibleAssets 490 16 - 118 - 624CapitalWorksinProgress - - 16 - - 16TotalNon-CurrentAssets 4,980 10,494 14,798 42,735 - 73,007 TotalAssets 8,928 10,772 16,139 43,461 3,339 82,639 CurrentLiabilities

c Payables 723 78 359 941 16 2,117EmployeeBenefits 12,441 2,052 1,867 9,017 - 25,377OtherProvisions 354 - - - - 354OtherLiabilities 988 184 323 79 - 1,574TotalCurrentLiabilities 14,506 2,314 2,549 10,037 16 29,422 Non-CurrentLiabilities

EmployeeBenefits 243 169 54 1,036 - 1,502OtherProvisions - 114 314 699 - 1,127TotalNon-CurrentLiabilities 243 283 368 1,735 - 2,629 TotalLiabilities 14,749 2,597 2,917 11,772 16 32,051 Net(Liabilities)/Assets (5,821) 8,175 13,222 31,689 3,323 50,588

a)UnallocatedCashandCashEquivalentsAportionof cashandcashequivalentshasbeen included in the 'Unallocated' columnabove,as this cannotbe 'reliablyattributed' to the Directorate's output classes. As the amount of cash and cash equivalents held by the Directorate iscomprisedofanumberofdisparatecomponents,onlytheamountsheld foraspecificpurposewereabletobe 'reliablyattributed' toanoutputclass. Cashwhich isheld forunforeseenoperationalexpenditurescannotbereliablyattributedandhavebeendisclosedinthe'Unallocated'columnabove.

b)ReceivablesA portion of current receivables has been included in the 'Unallocated' column above, as this amount relates to GSTReceivablefortheperiodwhichcannotbe'reliablyattributed'toanoutputclass.

c)PayablesAportionofcurrentpayableshasbeenincludedinthe'Unallocated'columnabove,asthisamountrelatestoGSTcollectedongoodsandservicesfortheperiodwhichcannotbe'reliablyattributed'toanoutputclass.




58

NOTE 29. DISAGGREGATED DISCLOSURE OF ASSETS AND LIABILITIES -

CONTINUED

YearEnded30June2015 716INTRA

OutputClass OutputClass OutputClass OutputClass Unallocated Total

1 2 3 4

$’000 $’000 $’000 $’000 $’000 $’000CurrentAssets

a CashandCashEquivalents 7,504 697 1,227 1,666 1,188 12,282bReceivables 3,419 100 224 269 462 4,474

OtherAssets 52 7 1 121 - 181TotalCurrentAssets 10,975 804 1,452 2,056 1,650 16,937 Non-CurrentAssets

Property,PlantandEquipment 4,694 10,324 14,334 45,045 - 74,397IntangibleAssets 673 - - - - 673CapitalWorksinProgress 12 - 462 - - 474TotalNon-CurrentAssets 5,379 10,324 14,796 45,045 - 75,544 TotalAssets 16,354 11,128 16,248 47,101 1,650 92,481 CurrentLiabilities

c Payables 7,981 601 1,170 2,526 175 12,453EmployeeBenefits 10,876 2,073 1,411 9,057 - 23,417OtherProvisions - 213 36 850 - 1,099OtherLiabilities 4,974 329 451 135 - 5,889TotalCurrentLiabilities 23,831 3,216 3,068 12,568 175 42,858 Non-CurrentLiabilities

EmployeeBenefits 657 132 86 890 - 1,765OtherProvisions 348 - - - - 348TotalNon-CurrentLiabilities 1,005 132 86 890 - 2,113 TotalLiabilities 24,836 3,348 3,154 13,458 175 44,971 Net(Liabilities)/Assets (8,482) 7,780 13,094 33,643 1,475 47,510

a)UnallocatedCashandCashEquivalentsAportionof cashandcashequivalentshasbeen included in the 'Unallocated' columnabove,as this cannotbe 'reliablyattributed' to the Directorate's output classes. As the amount of cash and cash equivalents held by the Directorate iscomprisedofanumberofdisparatecomponents,onlytheamountsheld foraspecificpurposewereabletobe 'reliablyattributed' toanoutputclass. Cashwhich isheld forunforeseenoperationalexpenditurescannotbereliablyattributedandhavebeendisclosedinthe'Unallocated'columnabove.

b)ReceivablesA portion of current receivables has been included in the 'Unallocated' column above, as this amount relates to GSTReceivablefortheperiodwhichcannotbe'reliablyattributed'toanoutputclass.

c)PayablesAportionofcurrentpayableshasbeenincludedinthe'Unallocated'columnabove,asthisamountrelatestoGSTcollectedongoodsandservicesfortheperiodwhichcannotbe'reliablyattributed'toanoutputclass.

217



NOTE 30. RESTRUCTURE OF ADMINISTRATIVE ARRANGEMENTS RestructureofAdministrativeArrangements2015-16

The Directorate was not impacted by any restructuring of the Administrative Arrangements during 2015-16financialyear.

RestructureofAdministrativeArrangements2014-15

On7July2014,arestructuringofadministrativearrangementsoccurredinvolvingthetransferofcommunityfacilitiesandartsACTfromtheDirectoratetoCMTEDD.ThisAdministrativeArrangementOrder(AAO)involvedthetransferof17.1FTEstafffromtheDirectorateaswellas67communityfacilities,landandbuildings,17artsfacilitieslandandbuildingsand103worksofart.

AssetsandLiabilities

The assets and liabilities transferred from the Directorate to CMTEDD as part of the restructuring ofadministrativearrangementsatthedatesoftransferwereasfollows:

59

TransferredOut TransferredOutAmounts Amounts

2016 2015$’000 $’000

Assets CashandCashEquivalents - 1,854Property,PlantandEquipment - 197,115CapitalWorksinProgress - 3,209TotalAssetsTransferredOut - 202,178 Liabilities AccruedExpenses - 325EmployeeBenefits - 632Borrowings - 408RevenueReceivedinAdvance - 166TotalLiabilitiesTransferredOut - 1,531TotalNetAssetsTransferredOut -

200,647




60

NOTE 31. FINANCIAL INSTRUMENTS Details of the significant policies and methods adopted, including the criteria for recognition, the basis ofmeasurement, and the basis on which income and expenses are recognised, with respect to each class offinancialassetandfinancialliabilityaredisclosedinNote2SignificantAccountingPolicies.

InterestRateRisk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuatebecauseofchangesinmarketinterestrates.

TheDirectorateisconsideredtohaveinsignificantexposuretointerestraterisk,asitholdsonlycashandcashequivalentswithWestpacBankingCorporationaspartofthewhole-of-governmentbankingarrangements.Aspartofthesearrangements,theDirectoratedoesnotreceiveanyinterestonthiscashandcashequivalents.Receivablesarenon-interestbearing.

Therehavebeennochangesinriskexposureorprocessesformanagingrisksincethelastfinancialreportingperiod.

SensitivityAnalysis

A sensitivity analysis has not been undertaken as the Directorate has insignificant exposure to interest raterisk.

CreditRisk

Creditriskistheriskthatonepartytoafinancialinstrumentwillfailtodischargeanobligationandcausetheotherpartytoincurafinancialloss.

Financialassetsconsistofcashandcashequivalentsandreceivables.TheDirectorate'screditriskislimitedtothecarryingamountofthefinancialassetsitholdsnetofanyallowancemadeforimpairment.

Cash and cash equivalents are held with the Westpac Banking Corporation, a high credit, quality financialinstitution,inaccordancewithwholeofACTGovernmentbankingarrangementsandtheDirectorateholdsnoinvestments.

A significant proportion of the Directorate's receivables are from ACT Government and CommonwealthGovernmentagencies.TheDirectoratereviewsoutstandingdebtorsonamonthlybasisandthoseunresolvedarereferredtotheACTGovernmentSolicitor'sOfficeforlegalaction.

CreditriskfortheDirectorateisthereforeconsideredtobelow.

Therehavebeennochangesincreditriskexposuresincethelastreportingperiod.

LiquidityRisk

Liquidity risk is the risk that the Directorate will be unable to meet its financial obligations associated withfinancial liabilities that are settled by delivering cash or another financial asset. The Directorate's mainfinancial obligations relate to the purchase of supplies and services including payments for operating leasesandgrants.Purchasesofsuppliesandservicesandpaymentsforoperating leasesarepaidwithin28daysofreceivingthegoodsorservices,whilepaymentsofgrantsaremostlyinadvanceonaquarterlybasis.

ThemainsourceofcashtopaytheseobligationsisappropriationfromtheACTGovernmentwhichispaidonafortnightlybasisduringtheyear.TheDirectoratemanagesitsliquidityriskthroughforecastingappropriationdrawdownrequirementstoenablepaymentofanticipatedobligations.

TheDirectorate'sexposuretoliquidityriskhasnotchangedsincethepreviousreportingperiod.

219



61

NOTE 31. FINANCIAL INSTRUMENTS - CONTINUED PriceRisk

Priceriskistheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchanges in market prices (other than those arising from interest rate risk or currency risk), whether thesechangesarecausedbyfactorsspecifictotheindividualfinancialinstrumentoritsissuer,orbyfactorsaffectingallsimilarfinancialinstrumentstradedinthemarket.

TheDirectoratedoesnothaveanyfinancialinstrumentsthataresubjecttopricerisk.Accordinglyasensitivityanalysishasnotbeenundertaken.

FairValueofFinancialAssetsandLiabilities

Thecarryingamountsandfairvaluesoffinancialassetsandliabilitiesattheendofthereportingperiodare:

Carrying Carrying Note Amount FairValue Amount FairValueNo. 2016 2016 2015 2015

$’000 $’000 $’000 $’000

FinancialAssets

CashandCashEquivalents 18 4,286

4,286 12,282 12,282TradeReceivables 19 2,133 2,133 859 859AccruedRevenue 19 36 36 - -TotalFinancialAssets 6,455 6,455 13,141 13,141

FinancialLiabilities

Payables 24 2,117 2,117 12,453 12,453TotalFinancialLiabilities 2,117 2,117 12,453 12,453

FairValueHierarchyTheDirectorate'sfinancialassetsandliabilitiesaremeasured,subsequentto initialrecognition,atamortisedcostandassucharenotsubjecttotheFairValueHierarchy.


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CommunityServicesDirectorate

Notes to and Forming Part of the Financial Statements FortheYearEnded30June2016

64

NOTE 31. FINANCIAL INSTRUMENTS - CONTINUED

2016 2015 $’000 $’000CarryingAmountofEachCategoryofFinancialAssetandFinancialLiability

FinancialAssets

LoansandReceivablesMeasuredatAmortisedCost

2,169 859 FinancialLiabilities

FinancialLiabilitiesMeasuredatAmortisedCost 2,117 12,453TheDirectoratedoesnothaveanyfinancialassetsinthe'FinancialAssetsatFairValuethroughProfitandLoss'category,'AvailableforSale'categoryorthe'HeldtoMaturity'categoryandassuchthesecategoriesarenotincludedabove. TheDirectoratealsodoesnothaveanyfinancial liabilities inthe 'FinancialLiabilitiesatFairValuethroughProfitandLoss'categoryand,assuch,thiscategoryisnotincludedabove.NOTE 32. COMMITMENTS CapitalCommitments

Capital commitments contracted at reporting date mainly relate to the upgrade of various communityfacilitiesandyouth facilities,anewrespiteproperty,an integratedstatutoryclient informationsystemandotherminorupgradeprojectsthathavenotbeenrecognisedasliabilities,payables:

2016 2015$’000 $’000

WithinOneYear 4,542 4,031LaterthanOneYearbutnotTotalCapitalCommitments

latera

thanFiveyears 1,297 -5,839 4,031

a) The increaseof$1.808millionrelatestothecommitmentsforcapitalprojectswithinthenextfiveyears,including building a Disability Respite House, purchasing a Client Management System for Child and YouthProtectionServicesandcapitalupgradefortheDirectorate’sfacilitiesincludingBimberiYouthJusticeCentre,threeChildandFamilyCentresandACTTherapyBuildinginHolder.

OtherCommitments

Other commitments contracted at reporting date that mainly relate to grants to Non-GovernmentOrganisations and the service partnership agreement with Shared Services for Finance, Human Resources,InformationTechnologyandProcurementServicesthathavenotbeenrecognisedasliabilitiesasfollow:

2016 2015

$’000 $’000

WithinOneYear 187,262 110,913LaterthanOneYearbutnotlaterthanFiveYears 120,361 44,854

bTotalOtherCommitments 307,623 155,767

b)TheincreaseinothercommitmentsmainlyrelatestocommitmentsbytheDirectorateforpaymentstotheCommonwealthGovernmentunderBilateralNDISAgreementandcontractpaymentstonon-governmentagenciesfortheprovisionofOutofHomeCareservicesaspartofAStepupforKids’program.

223



65

NOTE 32. COMMITMENTS – CONTINUED OperatingLeaseCommitments

TheDirectoratehastwonon-cancellableoperatingleasesforbuildings.Oneoftheleasesexpireswithinoneyear, one expires within two years. The leases have varying terms, escalation clauses and renewal rights.There are conditions in the lease agreements requiring the Directorate to restore sites which the leasedbuildings are situated on. These amounts have been included in make good liabilities (see Note 26OtherProvisions). The operating lease agreements give the Directorate the right to renew the leases followingrenegotiationsoftheleaseterms.

Contingent rental payments have not been included in the commitments below. Total non-cancellableoperating lease commitments also include leased Shared Services IT equipment and motor vehicle leaseswhicharepayableasfollows:

2016 2015$’000 $’000

WithinOneYear 8,966 4,072LaterthanOneYearbutnotlaterthan

cTotalOperatingLeaseCommitments FiveYears 27,491 3,008

36,457 7,080

c) The increase of $29.377 million relates mainly to the renewal of property leases for Moore Street andNatureConservationHousepartiallyoffsetbyadecreaseinmotorvehicleleasesasaresultofareductioninthefleetby39vehicles.

AllamountsshowninthecommitmentsnoteareinclusiveofGSTwhereGSTisapplicable.

NOTE 33. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

ContingentLiabilities

TheDirectorateisthesubjectof20legalclaims.IfclaimsaresuccessfultheDirectorateisliabletopayatotalof $200,000 which represents the excess amount on these claims the Directorate is covered by InsuranceArrangementwiththeACTInsuranceAuthority(ACTIA).

ContingentAssets

TheDirectorate’scontingentassetsat30June2016relatestoinsurancearrangementswherereimbursementfromACTIAoccursforanysuccessfullegalclaims.




66

NOTE 34. CASH FLOW RECONCILIATION

(a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting Period in the

Cash

Flow

StatementtotheequivalentitemsintheBalanceSheet.

2016

2015

$’000

$’000

TotalCashandCashEquivalentsRecordedintheBalanceSheet 4,286 12,282

CashandCashEquivalentsattheEndoftheReportingPeriodasRecordedintheCashFlowStatement 4,286 12,282 (b) ReconciliationoftheOperatingSurplus/(Deficit)totheNetCash(Outflows)/Inflowsfrom OperatingActivities Operating Surplus/(Deficit) 3,506 (2,194) Add/(Less)Non-CashItems

DepreciationandAmortisation 2,329 2,786NetAssetsTransferredorContributed 46 (2,151)ImpairmentLossesandWrite-Offs 26 5TransfersasaResultofAdministrativeArrangements - 1,123FinanceCostonMakeGood (173) 52WaiversandIrrecoverableLoansReceivables - 2,164FinanceLeaseAdjustment - 298 AddItemsClassifiedasInvestingorFinancing

NetGain/(Loss)/onDisposalofNon-CurrentAssets (21) 15(Gain)fromDerecognitionofFinanceLeaseLiability - (2,782)LossonDerecognitionofMotorVehiclesunderaFinanceLease - 2,702FinanceLeaseBorrowingCosts - 145

CashBeforeChangesinOperatingAssetsandLiabilities 5,713 2,163 ChangesinOperatingAssetsandLiabilities

(Increase)inReceivables (610) (1,611)Increase/DecreaseinOtherAssets (106) 884(Decrease)/IncreaseinPayables (10,300) 2,867Increase/(Decrease)inEmployeeBenefits 1,697 (2,040)(Decrease)/IncreaseinOtherLiabilities (4,315) 1,256

NetChangesinOperatingAssetsandLiabilities (13,634) 1,356 NetCash(Outflows)/InflowsfromOperatingActivities (7,921) 3,519 (c) Non-CashFinancingandInvestingActivities AcquisitionofMotorVehiclesbymeansofFinanceLease - 777

225



67

NOTE 35. BUDGETARY REPORTING The following are brief explanations of major line item variances between budget estimates and actualoutcomes.Variancesareconsideredtobemajorvariancesifbothofthefollowingcriteriaaremet:

(a) The line item isa significant line item: the line itemactualamountaccounts formore than10%of therelevantassociatedcategory(Income,ExpensesandEquitytotals)orsub-element(e.g.CurrentLiabilitiesandReceiptsfromOperatingActivitiestotals)ofthefinancialstatements;and

(b) Thevariances(originalbudgettoactual)aregreaterthanplus(+)orminus(-)10%ofthebudgetforthefinancialstatementlineitem.

OperatingLineItems

Statement

Actual

2015-16$’000

Original1Budget

2015-16$’000

Variance$’000

%

VarianceExplanation

GovernmentforOutputs

Payments 251,972 230,443 21,529 9

ThevariancerelatestotheTreasurer’sAdvance($21.529million)receivedtocovercostsrelatingtovoluntaryredundanciespaidtoDirectoratestaffastheorganisationshiftsservicedeliverytoexternalorganisationsduetothetransitiontotheNationalDisabilityInsuranceScheme(NDIS),increasedworkers’compensationinsurancepremium,DisabilityACTservicestoemergencyclients,increasedoperationalcostsintheOfficeofChildren,YouthandFamilyServices,additionalclientsenteringtheOutofHomeCaresystemandfundsreceivedtocovertheLongServiceLeaveentitlementaspartofthevoluntaryredundancypaymentsunderSection16AoftheFinancialManagementAct1996.

EmployeeExpenses 102,605 81,047 21,558 26 Thevarianceismainlyattributedtothefollowingfactors:1.paymentsforvoluntaryredundancyandotheremployeeentitlementsduetoemployeestakingvoluntaryredundanciesin2015-16($10.5m);2.unbudgetedemployeeterminationprovisionsforstaffexitingtheACTPublicServiceduetothetransitiontotheNDIS($6.5m);3.higherthananticipatedpaymentstostaffretiringfromtheDirectorate($1.3m);and4.higherrateusedtoestimatethepresentliabilitiesvalueof114.7%(Budget:104.2%)forlongserviceleave.

SuppliesandServices 38,843 34,411 4,432 13 TheincreaseinSuppliesandServicesincludedhigherthanexpectedcostsforSharedServicesICT,HRandfinancechargesandoperatingleaserentalpayments.

GrantsandPurchaseServices

116,470 105,364 11,106 11 ThevarianceismainlyduetohigherthananticipatedgrantspaidforservicesprovidedtoclientstransitioningtotheNDIS,providedbyadditionalCommonwealthfunding($7.5m).AdditionaldemandforservicesincreasedgrantsinChildandYouthProtectionServices($1.5m),servicesprovidedtopeoplewithdisabilities($1.0m)andcommunityparticipationgrants($1.0m).




NOTE 35. BUDGETARY REPORTING – CONTINUED

68

BalanceSheetLineItems

Actual2015-16

$’000

Original1

Budget 2015-16

$’000Variance

$’000

Variance%

VarianceExplanation

CashandCashEquivalents

4,286

5,878

(1,592)

(27)

CashheldatbankislowerthanbudgetduelesscashheldforNDISsectordevelopmentgrantsandsubsequentpaymentsmadein2015-16.

to

CurrentReceivables 5,059 2,300 2,759 120

ReceivablebalancesarehigherthanbudgetmainlyduetoadministrationcostsrecoverablefromHousingACT,uncollectedpaymentforJervisBayservices,recoveriesfromACTHealthcontributionsforYoungPeopleinResidentialAgedCare,accruedfundingforthereimbursementofterminationpaymentstobereceivedfromRestructureFundinCMTEED.

Non-CurrentEmployeeBenefits

1,502 1,856 (354) (19)

Thereductioninnon-currentemployeebenefitsliabilityismainlyisduetonumberofstafftakingvoluntaryredundanciesasaresultofthetransitiontoNDISandrecognitionofemployeebenefitsliabilitiesascurrentforDisabilityACT,TherapyACTandServiceStrategyandCommunityBuildingstaffacceptingvoluntaryredundancies.

OtherNon-CurrentProvision

1,127 1,487 (360) (24)

Othernon-currentprovisionrelatestorecognitionofmakegoodforre-newedofficeaccommodationleasedcontractsin2015-16.

AccumulatedFunds 46,423 33,764 12,659 37

Theincreaseinaccumulatedfundsisduetohigherthanexpectedoperatingresults,capitalinjectionsandchangestoadministrativearrangementorders.

StatementofChangesinEquity Theselineitems

statementsarecoveredinotherfinancial

227



NOTE 35. BUDGETARY REPORTING – CONTINUED

69

CashFlowStatementLineItems

Actual2015-16

$’000

Original1

Budget 2015-16

$’000

Variance$’000

Variance%

VarianceExplanation

EmployeePayments

101,151 83,281 17,870 21 Thevarianceismainlyduetohigher:1.voluntaryredundancyandotheremployeeentitlementpaymentstoemployeesexitingtheACTPublicServicein2015-16(10.5m);2.employeeexpenditurefortheNDIStaskforcefundedfromCommonwealthfunding($0.7m);3.paymentstostaffretiringfromtheDirectorate($1.3m);and4.thepaymentoffinalpayfor2014-15in2015-16($3.9m).

SuppliesServices

and 43,317 34,024 9,293 27 Themainlyvariancerelatestopaymentofoutstandingpayableat30June2015in2015-16.ThisincludedSharedServiceschargesforInformationTechnology,HumanServicesandFinance($2.9m)andbuildingoperatingleasepayments($1.4m).

GrantsandPurchasedServices

122,049 104,696 17,353 17 ThevarianceismainlyattributedtohighergrantspaidforservicesprovidedtoclientstransitingtoNDIS,fundedfromCommonwealthfunding($7.5m).InadditionmoregrantswereprovidedforChild,YouthandProtectionservices($1.5m),grantsforpeoplewithdisabilities($1.0m),communityparticipationgrants($1.0m)andpaymentsforoutstandinggrantspayableat30June2015($5.0m).

PaymentsforPropertyPlantEquipment

and1,608 4,031 (2,423) (60) Thevarianceisattributedtodelaysinprojects

commencementincludingClientManagementSystemforChildrenandYouthProtectionServicesandDisabilityRespitepropertyproject.

CapitalInjectionfromGovernment

1,512 4,031 (2,519) (62) Thevarianceisattributedtoprojectsthathavebeenre-profiledto2016-17duetodelaysincommencementincludingfundingforClientManagementSystemforChildrenandYouthProtectionServicesandDisabilityRespitepropertyproject.

1 Original Budget in Note 35 refers to the amounts presented to the Legislative Assemblybudgetedfinancialstatementsinrespectofthereportingperiod(2015-16BudgetStatements).havenotbeenadjustedtoreflectsupplementaryappropriationorappropriationinstruments.

in the originalTheseamounts

Documents

2 . 1 C. FINANCIALST ATEMENT— COMMUNITY SERVICES DIRECTORATE€¦ · Net Assets transferred out as part of an 30 (200,647) - (200,647) Administrative Restructure Total Transactions