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Financial Statements Business Services Trust Account
268Annual Report 2006–2007
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269Annual Report 2006–2007
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270Annual Report 2006–2007
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271Annual Report 2006–2007
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BUSINESS SERVICES TRUST ACCOUNTINCOME STATEMENTfor the period 1 July 2006 to 28 February 2007
28 February 30 June2007 2006
Notes $'000 $'000INCOME
RevenueReimbursement of remediation costs 3A - 1,382Goods and services 3B - 177Recovery of asbestos related disease settlements 3C - 6Other revenue 3D 445 527
Total revenue 445 2,092
GainsOther gains 3E 13 274
Total gains 13 274TOTAL INCOME 458 2,366
EXPENSES
Employee expenses 4A 402 591Suppliers 4B 913 1,700
TOTAL EXPENSES 1,315 2,291
Operating result before income tax (857) 75
OPERATING RESULT (857) 75
The above statement should be read in conjunction with the accompanying notes.
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BUSINESS SERVICES TRUST ACCOUNTBALANCE SHEETas at 28 February 2007
28 February 30 June2007 2006
Notes $'000 $'000ASSETSFinancial assets
Cash 5A 506 359Receivables 5B 7,073 7,256
Total financial assets 7,579 7,615
TOTAL ASSETS 7,579 7,615
LIABILITIESPayables
Suppliers 6A 516 14Other payables 6B 68 -
Total payables 584 14
ProvisionsEmployee provisions 7A 183 198Other provisions 7B 303 37
Total provisions 486 235
TOTAL LIABILITIES 1,070 249
NET ASSETS 6,509 7,366
EQUITYContributed equity 209,112 209,112Retained surpluses/(accumulated deficits) (202,603) (201,746)
TOTAL EQUITY 6,509 7,366
Current assets 7,579 7,615Non-current assets - -Current liabilities 863 132Non-current liabilities 207 117
The above statement should be read in conjunction with the accompanying notes.
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BUSI
NES
S SE
RV
ICES
TR
UST
AC
CO
UN
TST
ATE
MEN
T O
F C
HA
NG
ES IN
EQ
UIT
Yfo
r the
per
iod
1 Ju
ly 2
006
to 2
8 Fe
brua
ry 2
007
Item
Acc
umul
ated
res
ults
Con
trib
uted
equ
ityTo
tal e
quity
2007
$'00
020
06$'
000
2007
$'00
020
06$'
000
2007
$'00
020
06$'
000
Ope
ning
bal
ance
(201
,746
)(2
01,8
21)
209,
112
213,
710
7,36
611
,889
Net
ope
ratin
g re
sult
(857
)75
n/a
n/a
(857
)75
Tota
l inc
ome
and
expe
nses
(8
57)
75n/
an/
a(8
57)
75
Tran
sact
ions
with
ow
ner:
Dis
trib
utio
ns to
own
ers
Ret
urn
of c
apita
lR
etur
ns o
f con
tribu
ted
equi
ty-
--
(9,3
60)
-(9
,360
)Co
ntri
butio
ns b
y ow
ners
Res
truct
urin
g-
--
4,76
2-
4,76
2Su
b-to
tal t
rans
actio
ns w
ith o
wne
rs-
--
(4,5
98)
-(4
,598
)C
losin
g ba
lanc
e as
at p
erio
d en
d(2
02,6
03)
(201
,746
)20
9,11
220
9,11
26,
509
7,36
6Le
ss:o
utsi
de e
quity
inte
rest
s-
--
--
-To
tal e
quity
attr
ibut
able
to th
e Au
stra
lian
Gov
ernm
ent
(202
,603
)(2
01,7
46)
209,
112
209,
112
6,50
97,
366
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BUSINESS SERVICES TRUST ACCOUNTSTATEMENT OF CASH FLOWSfor the period 1 July 2006 to 28 February 2007
28 February 30 June2007 2006
Notes $'000 $'000
OPERATING ACTIVITIESCash received
Goods and services - 192Recovery of asbestos related diseases settlements - 6Other 443 512Appropriations 183 9,821Reimbursement of remediation costs - 1,382Net GST received from ATO 2 8
Total cash received 628 11,921
Cash usedEmployees 418 547Suppliers 63 1,945
Total cash used 481 2,492
Net cash from / (used by) operating activities 8 147 9,429
FINANCING ACTIVITIESCash receivedTotal cash received - -
Cash usedCapital repayments - 9,360
Total cash used - 9,360
Net cash from / (used by) financing activities - (9,360)
Net increase or (decrease) in cash held 147 69Cash at the beginning of the reporting period 359 290
Cash at the end of the reporting period 5A 506 359
The above statement should be read in conjunction with the accompanying notes.
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BUSINESS SERVICES TRUST ACCOUNTSCHEDULE OF CONTINGENCIESas at 28 February 2007
Contingent liabilities GuaranteesClaims for
damages/costs Other Total2007 2006 2007 2006 2007 2006 2007 2006$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance from previous period - - 47 - - - 47 -New - - - 47 - - - 47Re-measurement - - (17) - - - (17) -Liabilities crystallised - - (30) - - - (30) -Obligations expired - - - - - - - -
Total contingent liabilities - - - 47 - - - 47
Contingent assets GuaranteesClaims for
damages/costs Other Total2007 2006 2007 2006 2007 2006 2007 2006$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance from previous period - - - - - - - -New - - - - - - - -Re-measurement - - - - - - - -Assets crystallised - - - - - - - -Expired - - - - - - - -
Total contingent assets - - - - - - - -Net contingencies - - - 47 - - - 47
Details of each class of contingent liabilities and assets, including those not included above because they cannot bequantified or considered remote, are disclosed in Note 9: Contingent Liabilities and Assets.
The above schedule should be read in conjunction with the accompanying notes.
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BUSINESS SERVICES TRUST ACCOUNTNOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSfor the period 1 July 2006 to 28 February 2007
Note 1: Summary of significant accounting policies 9Note 2: Events after the balance sheet date 13Note 3: Income 14Note 4: Expenses 15Note 5: Financial assets 16Note 6: Payables 17Note 7: Provisions 18Note 8: Cash flow reconciliation 19Note 9: Contingent liabilities and assets 19Note 10: Executive remuneration 20Note 11: Remuneration of auditors 20Note 12: Average staffing levels 20Note 13: Financial instruments 21Note 14: Special Accounts 24Note 15: Reporting of outcomes 25
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Notes to and forming part of the Financial Statements
Note 1: Summary of significant accounting policies
1.1 Objectives of the Business Services Trust Account (BSTA)
The objectives of the BSTA are the provision of services and matters incidental thereto in the fields of transport,printing, publishing, procurement, analytical testing, construction, project and property management and relatedcomponents, facilities management, administrative and related services and closure of various trust accounts.
The BSTA is structured to meet the following outcome:
Outcome 2: Improved and more efficient government operations.
The BSTA was abolished on 1 March 2007. The BSTA balances have been transferred to the Business ServicesSpecial Account (BSSA). The BSSA is not designated as a business operation and separate financial statements arenot required.
1.2 Basis of accounting
The financial statements are required by clause 1(b) of Schedule 1 to the Financial Management and AccountabilityAct 1997 and are a general purpose financial report.
The statements have been prepared in accordance with:· Finance Minister's Orders (FMOs) for reporting periods ending on or after 1 July 2006; and· Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board
(AASB) that apply for the reporting period.
The financial report has been prepared on an accrual basis and is in accordance with historical cost convention, exceptfor certain assets, which as noted, are at fair value. Except where stated, no allowance is made for the effect ofchanging prices on the results or the financial position.
The financial report is presented in Australian dollars and values are rounded to the nearest thousand dollars unlessdisclosure of the full amount is specifically required.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities arerecognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the BSTAand the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising underagreements equally proportionately unperformed are not recognised unless required by an accounting standard.Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule ofContingencies.
Unless an alternative treatment is specifically required by an accounting standard, revenues and expenses arerecognised in the Income Statement when and only when the flow or consumption or loss of economic benefits hasoccurred and can be reliably measured.
1.3 Statement of compliance
Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards(IFRSs) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSsand other Australian Accounting Standards contain requirements specific to not-for-profit entities that are inconsistentwith IRFS requirements. The BSTA is a not for profit business operation and has applied these requirements, so whilethis financial report complies with Australian Accounting Standards including Australian Equivalent to InternationalFinancial Reporting Standards (AEIFRSs) it cannot make this statement.
Adoption of new Australian accounting standard requirementsNo accounting standard has been adopted earlier than the effective date in the current period.
The following amendments, revised standards or interpretations have become effective but have had no financialimpact or do not apply to the operations of the BSTA.
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Notes to and forming part of the Financial Statements
Amendments - 2005-1 Amendments to Australian Accounting Standards [AASBs 1, 101, 124]- 2005-6 Amendments to Australian Accounting Standards [AASB 3]- 2006-1 Amendments to Australian Accounting Standards [AASB 121]- 2006-3 Amendments to Australian Accounting Standards [AASB 1045]
Interpretations:- 2005-1 Amendments to Australian Accounting Standards [AASBs 1, 101, 124]- UIG 4 Determining whether an arrangement contains a lease- UIG 5 Rights to interests arising from decommissioning, restoration and environmental rehabilitation funds- UIG 7 Applying the restatement approach under AASB 129 Financial Reporting in Hyperinflationary Economies- UIG 8 Scope of AASB 2- UIG 9 Reassessment of embedded derivatives
1.4 Significant accounting judgements and estimates
No accounting judgements or estimates have been identified that have a significant risk of causing a materialadjustment to carrying amounts of assets and liabilities.
1.5 RevenueAll revenue from rendering of service is recognised when the costs incurred can be reliably measured and the probableeconomic benefits from the transaction will flow to the entity.
Gains
Resources received free of chargeServices received free of charge are recognised in the Income Statement as gains when and only when a fair value canbe reliably determined and the services would have been purchased if they had not been donated. Use of thoseresources is recognised as an expense.
1.6 Transactions by the government as owner
Equity injectionsAmounts appropriated which are designated as 'equity injections' for the reporting period (less any formal reductions)are recognised directly in Contributed Equity in that year.
Restructuring of administrative arrangementsNet assets received from or relinquished to another Commonwealth agency or authority under a restructuring ofadministrative arrangements are adjusted at their book value directly against contributed equity.
1.7 Employee benefits
The liability for employee entitlements encompasses unpaid wages and salaries, annual leave and long service leave.
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Notes to and forming part of the Financial Statements
Wages and salariesLiabilities for services rendered by employees are recognised at the reporting date to the extent that they have notbeen settled.
Liabilities for 'short-term employee benefits' (as defined in AASB 119) are measured at their nominal amounts. Thenominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
All other employee benefit liabilities are measured as the present value of the estimated future cash outflows to bemade in respect of services provided by employees up to the reporting date.
LeaveThe liability for employee benefits includes provision for annual leave and long service leave. No provision is madefor sick leave as all sick leave is non-vesting and the average sick leave estimated to be taken by employees each yearis less than the annual entitlement for sick leave.
The leave liabilities are calculated on the basis of the employees' remuneration, including the BSTA superannuationcontribution rates, to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to the work of an actuary to assess the BSTA'semployee benefit liabilities as at 30 June 2005. The estimate of the present value of the liability takes into accountattrition rates and pay increase through promotion and inflation.
Separation and redundancyProvision is made for separation and redundancy benefit payments in circumstances where the BSTA has formallyidentified positions as excess to requirements and a reliable estimate of the amount of those payments can bedetermined.
Superannuation
Staff of the BSTA are members of either the Commonwealth Superannuation Scheme (CSS) or the Public SectorSuperannuation Scheme (PSS) or the PSS Accumulation Plan (PSSAP), or other superannuation schemes held outsidethe Commonwealth.
The CSS and PSS are defined benefit schemes for the Commonwealth. The PSSAP is an accumulation scheme. From1 July 2005, new employees are eligible to join the PSSAP scheme.
The BSTA makes employer contributions to the Australian Government at rates determined by an actuary to besufficient to meet the costs to the Government of the superannuation entitlements for the BSTA employees.
The liability for superannuation recognised as at 28 February 2007 in the BSTA financial statements representsoutstanding contributions.
1.8 Leases
A distinction is made between finance leases and operating leases.
Finance leases
Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental toownership of leased non-current assets. Where a non-current asset is acquired by means of a finance lease, the asset iscapitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments atthe inception of the contract and a liability recognised at the same time and for the same amount. The discount rateused is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease paymentsare allocated between the principal component and the interest rate.
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Notes to and forming part of the Financial Statements
Operating leasesAn operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantiallyall such risks and benefits. Operating lease payments are expensed on a straight line basis which is representative ofthe pattern of benefits derived from the leased assets.
1.9 Cash
Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognisedat its nominal amount.
1.10 Impairment of financial assets
Financial assets are assessed for impairment at each balance date.
1.11 Receivables
A provision is raised for any doubtful debts based on a review of all outstanding accounts as at the end of thereporting period.
Bad debts are recognised as an expense, or as a reduction in the doubtful debts provision, during the reporting periodin which they are identified.
1.12 Unearned income
Deposits and prepayments for services yet to be rendered are recognised as a liability at the time of receipt. Revenuesare recognised in relation to these items at the time the service is provided.
1.13 Financial instruments
Accounting policies for financial instruments are stated at Note 13.
1.14 Commitments
The BSTA had no commitments in either the current or the immediately preceding reporting period.
1.15 Administered transactions
The BSTA has recorded no administered transactions or balances in either the current or comparative reportingperiods.
1.16 Comparative figures
Comparative figures are provided and, where necessary, have been adjusted in accordance with the FMOs.
1.17 Rounding
Amounts have been rounded to the nearest $1,000 unless stated otherwise.
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Notes to and forming part of the Financial Statements
Note 2: Events after the balance sheet date
The BSTA was abolished on 1 March 2007. The Business Services Special Account (BSSA) was established on1 March 2007. The balances of the BSTA were transferred to the BSSA. The BSSA is not designated as a businessoperation and therefore separate financial reports are not required.
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 3: Income
Revenues
Note 3A: Reimbursement of remediation costsReimbursement of Kingston Foreshore remediation costs - 1,382Total reimbursement of remediation costs - 1,382
Note 3B: Goods and servicesRent - related entities - 15Rent - external entities - 162Total sales of goods and services - 177
Note 3C: Recovery of asbestos related disease settlementsRecovery of asbestos related disease settlements - 6Total recovery of asbestos related diseases settlements - 6
Note 3D: Other revenueFleet Monitoring Body cost recovery 440 512Other 5 15Total other revenues 445 527
Note 3E: Other gainsAdjustment to prior year provision - 263Resources received free of charge 13 11Total other gains 13 274
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 4: Expenses
Note 4A: Employee expensesWages and salaries 262 428Superannuation 73 97Leave and other entitlements 67 66Total employee expenses 402 591
Note 4B: SuppliersProvision of goods - external entities 883 1,700Legal settlements 30 -Total suppliers expenses 913 1,700
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 5: Financial assets
Note 5A: CashCash at bank 506 359Total cash 506 359
All cash recognised is a current asset.
Note 5B: Trade and other receivablesGoods and services 2,500 2,500Appropriation receivable 7,073 7,256Total trade and other receivables (gross)
9,573 9,756Less Allowance for doubtful debts:
Goods and services (2,500) (2,500)Total trade and other receivables (net) 7,073 7,256
All receivables are current assets. Credit terms are net 30 days (2005: 30 days).
Receivables (gross) are aged as follows:Not overdue 9,573 9,756Overdue by:Less than 30 days - -30 to 60 days - -61 to 90 days - -More than 90 days - -Total receivables (gross) 9,573 9,756
The allowance for doubtful debts is aged as follows:Not overdue (2,500) (2,500)Overdue by:Less than 30 days - -30 to 60 days - -61 to 90 days - -More than 90 days - -Total allowance for doubtful debts (2,500) (2,500)
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 6: Payables
Note 6A: SuppliersAccrued expense 513 13Goods and services tax 3 1Total supplier payables 516 14
All supplier payables are current liabilities.
Note 6B: Other payablesUnearned revenue 68 -Total other payables 68 -
All other payables are current liabilities.
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 7: Provisions
Note 7A: Employee provisionsSalaries and wages 21 12Leave 162 186Aggregate employee benefit liability 183 198
Employee provisions are represented by:Current 77 81Non-current 106 117
183 198
Note 7B: Other provisionsKingston Foreshore land remediation 303 37Total other provisions 303 37
Other provisions are represented by:Current 202 37Non-current 101 -
Total other provisions 303 37
Provision forland
remediation$'000
Otherprovisions
$'000 Total
Carrying amount at beginning of period 37 - 37Additional provisions made 266 - 266Amount owing at end of period 303 - 303
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Notes to and forming part of the Financial Statements
28 February 30 June2007 2006
$'000 $'000
Note 8: Cash flow reconciliation
Reconciliation of cash per balance sheet to Statement of Cash FlowsCash at year end per Statement of Cash Flows 506 359
Balance sheet items comprising above cash:'Financial asset - Cash' 506 359
Reconciliation of operating result to net cash from operating activities:Operating result (857) 75Adjustment of prior year provision - (263)(Increase) / decrease in net receivables 183 9,094Increase / (decrease) in employee provisions (17) (219)Increase / (decrease) in supplier payables 502 700Increase / (decrease) in GST payable 2 5Increase / (decrease) in other provisions 266 37Increase / (decrease) in other payables 68 -Net cash from / (used by) operating activities 147 9,429
Note 9: Contingent liabilities and assets
Unquantifiable contingenciesDavis Samuel CaseThe Department is engaged in legal action seeking recovery of funds misappropriated during 1997-98. The quantumof funds which may be recovered cannot be reliably measured.
Remote contingenciesDavis Samuel CaseThe Department is subject to a counter-claim in relation to legal action before the Courts. This matter is subject tosufficient uncertainty that it is not possible to quantify the amount, if any, of the liability. The Department isdefending this case and believes that no liability will arise.
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Notes to and forming part of the Financial Statements
Note 10: Executive remuneration
There were no officers employed in the operations of the BSTA that exceeded thetotal remuneration of $130,000.
Note 11: Remuneration of auditors2007 2006
$ $
Financial statement audit services are provided free of charge to the BSTA.
The fair value of audit services provided was:Business Services Trust Account 13,000 11,000
13,000 11,000
No other services are provided by the Auditor-General.
Figures in Note 11 are presented in whole dollars.
Note 12: Average staffing levels2007 2006
The average staffing levels for the BSTA during the year were: 6 6
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Not
es to
and
form
ing
part
of t
he F
inan
cial
Sta
tem
ents
Not
e 13
:Fi
nanc
ial i
nstr
umen
ts
Not
e 13
A:
Term
s, co
nditi
ons a
nd a
ccou
ntin
g po
licie
s
Fina
ncia
l ins
trum
ent
Not
esA
ccou
ntin
g po
licie
s and
met
hods
(inc
ludi
ng r
ecog
nitio
ncr
iteri
a an
d m
easu
rem
ent b
asis
)N
atur
e of
und
erly
ing
inst
rum
ent (
incl
udin
g si
gnifi
cant
term
s and
con
ditio
ns a
ffec
ting
the
amou
nt, t
imin
g an
dce
rtai
nty
of c
ash
flow
s)FI
NA
NC
IAL
ASS
ETS
Fina
ncia
l ass
ets a
re re
cogn
ised
whe
n co
ntro
l ove
r fut
ure
econ
omic
ben
efits
is e
stab
lishe
d an
d th
e am
ount
of t
hebe
nefit
can
be
relia
bly
mea
sure
d.C
ash
5AC
ash
is re
cogn
ised
at i
ts n
omin
al a
mou
nts.
R
ecei
vabl
es fo
r goo
ds a
nd se
rvic
es5B
Thes
e re
ceiv
able
s are
reco
gnis
ed a
t the
nom
inal
am
ount
s due
less
any
pro
visi
on fo
r bad
and
dou
btfu
l deb
ts.
Col
lect
abili
tyof
deb
ts is
revi
ewed
at b
alan
ce d
ate.
Pro
visi
ons a
re m
ade
whe
n co
llect
ion
of th
e de
bt is
judg
ed to
be
less
rath
er th
anm
ore
likel
y.
Cre
dit t
erm
s are
gen
eral
ly n
et 3
0 da
ys.
FIN
AN
CIA
L LI
ABI
LITI
ESFi
nanc
ial l
iabi
litie
s are
reco
gnis
ed w
hen
a pr
esen
t obl
igat
ion
to a
noth
er p
arty
is e
nter
ed in
to a
nd th
e am
ount
of t
he li
abili
tyca
n be
relia
bly
mea
sure
d.Tr
ade
cred
itors
6AC
redi
tors
and
acc
rual
s are
reco
gnis
ed a
t the
ir no
min
alam
ount
s, be
ing
the
amou
nts a
t whi
ch th
e lia
bilit
ies w
ill b
ese
ttled
. Li
abili
ties a
re re
cogn
ised
to th
e ex
tent
that
the
good
san
d se
rvic
es h
ave
been
rece
ived
(and
irre
spec
tive
of h
avin
gbe
en in
voic
ed).
Settl
emen
t is u
sual
ly m
ade
net 3
0 da
ys fr
om re
ceip
t of
invo
ice.
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Not
es to
and
form
ing
part
of t
he F
inan
cial
Sta
tem
ents
Not
e 13
B:
Inte
rest
rate
risk
The
BST
A's
expo
sure
to in
tere
st ra
te ri
sk a
nd th
e ef
fect
ive
wei
ghte
d av
erag
e in
tere
st ra
te fo
r eac
h cl
ass o
f fin
anci
alas
sets
and
fina
ncia
l lia
bilit
ies i
s set
out
as f
ollo
ws:
Fina
ncia
l ins
trum
ent
Not
esFl
oatin
g in
tere
stra
teFi
xed
inte
rest
rat
e m
atur
ing
inN
on-in
tere
st b
eari
ngTo
tal
Wei
ghte
d av
erag
eef
fect
ive
inte
rest
rate
1 Y
ear
or L
ess
1 to
5 Y
ears
> 5
Yea
rs20
07$'
000
2006
$'00
020
07$'
000
2006
$'00
020
07$'
000
2006
$'00
020
07$'
000
2006
$'00
020
07$'
000
2006
$'00
020
07$'
000
2006
$'00
020
07 %20
06 %Fi
nanc
ial A
sset
sC
ash
5A-
--
--
--
-50
635
950
635
9n/
an/
aR
ecei
vabl
es5B
--
--
--
--
2,50
02,
500
2,50
02,
500
n/a
Tota
l-
--
--
--
-3,
006
2,85
93,
006
2,85
9To
tal A
sset
s7,
579
7,61
5
Fina
ncia
l Lia
bilit
ies
Supp
liers
6A-
--
--
--
-51
614
516
14n/
an/
aO
ther
pay
able
s6B
--
--
--
--
68-
68-
n/a
n/a
Tota
l-
--
--
--
-58
414
584
14To
tal L
iabi
litie
s1,
070
249
-22-
Annual Report 2006–2007
BS
TA
Fin
An
ciA
l S
TA
Te
me
nT
S
292
Notes to and forming part of the Financial Statements
Note 13C: Net fair values of financial assets and liabilities2007 2006
Total Aggregate Total Aggregatecarrying net fair carrying net fairamount value amount value
Notes $'000 $'000 $'000 $'000
Departmental financial assetsCash 5A 506 506 359 359Total financial assets 506 506 359 359
Financial liabilities (recognised)Suppliers 6A 516 516 14 14Other payables 6B 68 68 - -Total financial liabilities (recognised) 584 584 14 14
The fair value of cash and cash equivalents and non-interest bearing monetary financial assets and financial liabilitiesof the BSTA approximates their carrying value.
Trade creditors and other liabilities are short term in nature and their fair values are approximated by their carryingamounts.
The fair value of each class of financial asset and liability equals its carrying amount in both current and the precedingreporting periods and none of these financial assets or liabilities are readily traded on organised markets in astandardised form.
Note 13D: Credit risk exposures
The BSTA's maximum exposures to credit risk at reporting date in relation to each class of recognised financial assetsis the carrying amount of those assets as indicated in the Balance Sheet.
The BSTA has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
-23-
Annual Report 2006–2007
BS
TA
Fin
An
ciA
l S
TA
Te
me
nT
S
293
Notes to and forming part of the Financial Statements
Note 14: Special Accounts
Business Services Trust Account2007 2006$'000 $'000
Legal Authority: Financial Management and Accountability Act 1997, Section 20.Purpose: For expenditure relating to services in the fields of transport, printing, publishing, procurement, analyticaltesting, construction, project and property management and related components, facilities management, administrativeand related services and closure of various trust accounts.
The BSTA was varied by determination on 21 October 2006 and subsequently abolished on 1 March 2007. In place ofthe BSTA, the Business Services Special Account (BSSA) was established on 1 March 2007.Balance carried from previous year 7,615 17,371
Goods and services - 192Recovery of asbestos related disease settlements - 6Other 443 1,890GST credits (FMAA s30A) 41 103Total credits 484 2,191Available for payments 8,099 19,562Payments made - -Employees (418) (810)Suppliers (63) (1,682)Capital repayments - (9,360)GST paid to ATO (39) (95)Total debits (520) (11,947)Balance carried to next period 7,579 7,615
Represented by:Cash at bank 506 359Add: Funds receivable from the OPA 7,073 7,256Less: Net GST payable to the ATO - -Add: Receivable - Net GST receivable from the ATO - -Total balance carried to the next period 7,579 7,615
-24-
Annual Report 2006–2007
BS
TA
Fin
An
ciA
l S
TA
Te
me
nT
S
294
Not
es to
and
form
ing
part
of t
he F
inan
cial
Sta
tem
ents
Not
e 15
:R
epor
ting
of o
utco
mes
Not
e 15
A:
Net
cos
t of o
utco
me
deliv
ery
Out
com
e 2
Tot
al20
0720
0620
0720
06$'
000
$'00
0$'
000
$'00
0A
dmin
iste
red
expe
nses
--
--
Dep
artm
enta
l exp
ense
s1,
315
2,29
11,
315
2,29
1To
tal e
xpen
ses
1,31
52,
291
1,31
52,
291
Cos
ts re
cove
red
from
pro
visi
on o
f goo
ds a
nd se
rvic
es to
the
non-
gove
rnm
ent s
ecto
rA
dmin
iste
red
--
--
Dep
artm
enta
l-
--
-To
tal c
osts
reco
vere
d-
--
-O
ther
Inco
me
--
--
Dep
artm
enta
lO
ther
reve
nue
from
rela
ted
entit
ies
137
1,93
013
71,
930
Oth
er re
venu
e fr
om e
xter
nal e
ntiti
es30
816
230
816
2O
ther
gai
ns13
274
1327
4To
tal d
epar
tmen
tal
458
2,36
645
82,
366
Tota
l oth
er in
com
e45
82,
366
458
2,36
6N
et c
ost/(
cont
ribu
tion)
of o
utco
me
857
(75)
857
(75)
Out
com
e 2
is d
escr
ibed
in N
ote
1.1.
Net
cos
ts sh
own
incl
ude
intra
-gov
ernm
ent c
osts
that
are
elim
inat
ed in
cal
cula
ting
the
actu
al B
udge
t out
com
e.
-25-
Annual Report 2006–2007
BS
TA
Fin
An
ciA
l S
TA
Te
me
nT
S
295
Not
es to
and
form
ing
part
of t
he F
inan
cial
Sta
tem
ents
Not
e 15
B:
Maj
or c
lass
es o
f dep
artm
enta
l inc
ome
and
expe
nses
by
outp
ut g
roup
s and
out
puts
Out
com
e 2
Out
put g
roup
2.1
Out
com
e 2
tota
lO
utpu
t 2.1
.220
0720
0620
0720
06$'
000
$'00
0$'
000
$'00
0D
epar
tmen
tal e
xpen
ses
Empl
oyee
s40
259
140
259
1Su
pplie
rs91
31,
700
913
1,70
0To
tal d
epar
tmen
tal e
xpen
ses
1,31
52,
291
1,31
52,
291
Fund
ed b
y:Sa
le o
f goo
ds a
nd se
rvic
es-
177
-17
7R
ecov
ery
of a
sbes
tos r
elat
ed d
isea
se se
ttlem
ents
-6
-6
Rei
mbu
rsem
ent o
f Kin
gsto
n Fo
resh
ore
rem
edia
tion
cost
s-
1,38
2-
1,38
2O
ther
reve
nue
and
gain
s45
880
145
880
1To
tal d
epar
tmen
tal i
ncom
e45
82,
366
458
2,36
6
-26-
Annual Report 2006–2007
BS
TA
Fin
An
ciA
l S
TA
Te
me
nT
S