Notes to and Forming Part of the Financial Statements

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
for year ended 30 June 2015

Note 1 – Summary of Significant Accounting Policies

1.1 Objectives of the Office of the Inspector-General of Intelligence and Security

The Office of the Inspector General of Intelligence and Security (OIGIS) is an Australian Government controlled not-for-profit entity. The objective of OIGIS is to meet the following outcome:

Independent assurance for the Prime Minister, senior ministers and Parliament as to whether Australia's intelligence and security agencies act legally and with propriety by inspecting, inquiring into and reporting on their activities.

OIGIS's activities contributing towards this program are classified as departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by OIGIS in its own right.

The continued existence of the OIGIS in its present form and with its present programs is dependent on government policy and on continuing funding by Parliament for OIGIS's administration and programs.

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The Financial Statements have been prepared in accordance with:

Financial Reporting Rule (FRR) for reporting periods ending on or after 1 July 2014; and
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest dollar.

Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when and only when it is probable that future economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments.

Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.3 Significant Accounting Judgments and Estimates

In the process of applying the accounting policies listed in this note, OIGIS has made the following judgments that have the most significant impact on the amounts recorded in the financial statements.

Leave provisions involve assumptions on the likely tenure of existing staff, future salary movements and future discount rates.

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

OIGIS has elected to apply AASB 2015-7 Amendments to Australian Accounting Standards – Fair Value Disclosures of Not-for-Profit Public Sector Entities for this financial year, even though the Standard is not required to be applied until annual reporting periods beginning on or after 1 July 2016. AASB 2015-7 provides relief from disclosing quantitative information about significant unobservable inputs used in fair value, where property, plant and equipment is held for its current service potential rather than to generate future net cash inflows.

The following new standard was issued prior to the sign-off date and is applicable to the current reporting period:

AASB 1055 Budgetary Reporting applied from 1 July 2014 and resulted in significant disclosure requirement changes.

Future Australian Accounting Standard Requirements

New/revised standards, interpretations and amending standards that were issued prior to the sign-off date and are applicable to the future reporting periods are not expected to have a future financial impact on the entity.

1.5 Revenue

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when OIGIS gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Other Types of Revenue

Revenue from the sale of goods is recognised when:

the risks and rewards of ownership have been transferred to the buyer;
the agency retains no managerial involvement or effective control over the goods;
the revenue and transaction costs incurred can be reliably measured; and
it is probable that the economic benefits associated with the transaction will flow to the entity.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
the probable economic benefits associated with the transaction will flow to the entity.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed as at end of reporting period. Allowances are made when collectability of the debt is no longer probable.

1.6 Gains

Resources Received Free of Charge

Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

The main resources received free of charge in 2014-15 are office space (from the Department of the Prime Minister and Cabinet) and the installation and maintenance of the OIGIS owned internal secure computer network (from Defence Signals Directorate).

Contributions of assets at no cost of acquisition or for nominal considerations are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements.

Sale of Assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Contributed Equity

Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and

1.8 Employee Benefits

Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination

benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of OIGIS is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including OIGIS's employer superannuation contribution 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 using the short hand method per the FRR. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

Staff of OIGIS are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) and other industry super funds outside the Commonwealth.

The CSS and PSS are defined benefit schemes for the Australian Government. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.

The PSSap is a defined contribution scheme.

OIGIS makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. OIGIS accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final

1.9 Cash

Cash and cash equivalents includes cash on hand and any deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to

1.10 Financial Assets

OIGIS classifies its financial assets as 'loans and receivables'.

Financial assets are recognised and derecognised upon trade date.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

Loans and receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Credit terms are net 30 days (2013–14: 30 days).

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period.

1.11 Financial Liabilities

Financial liabilities are classified as other financial liabilities.

Financial liabilities are recognised and derecognised upon 'trade date'.

Other Financial Liabilities

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Settlement is usually made net 30 days.

1.12 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

OIGIS has no contingencies to report in either 2013-14 or in 2014-15.

No contingent rentals exist.

Note 2 – Events after the Reporting Period

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.

Note 3 – Net Cash Appropriation Arrangements

	2015 $	2014 $
Total Comprehensive Income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations¹	621 612	273 640
Depreciation/amortisation expenses previously funded through revenue appropriation	(36 481)	(37 999)
Total comprehensive income (loss) as per the Statement of Comprehensive Income	585 131	235 641

1. From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

Note 4 – Expenses

	2015 $	2014 $
Note 4A – Employee Benefits
Wages and salaries	1 644 289	1 495 856
Superannuation:
Defined benefit plans	223 658	218 309
Defined contribution plans	97 823	53 396
Leave and other entitlements	222 673	148 498
Separation and Redundancies	-	-
Total employee benefits	2 188 443	1 916 059

Note 4B – Suppliers

	2015 $	2014 $
Goods and services supplied or rendered
Consultants	-	800
ICT support	46 000	46 000
Legal expenses	17 104	13 739
Printing non publications	8 868	7 837
Resources received free of charge:
Notional Rent Charge	102 000	102 000
Notional Audit Fees	18 000	18 000
Notional IT Support Costs	4 545	4 545
Stationery	9 758	5 452
Training	33 657	20 186
Travel	24 111	13 577
Translation Services	11 804	-
Other	42 325	33 888
Total goods and services supplied or rendered	318 172	266 024

Goods and services are made up of:
Provision of goods – external entities	12 677	7 727
Rendering of services – related entities	210 257	211 009
Rendering of services – external entities	95 238	47 288
Total goods and services	318 172	266 024

Other supplier expenses
Workers compensation premiums	4 760	4 659
Total other supplier expenses	4 760	4 659
Total supplier expenses	322 932	270 683

Note 5 – Own-Source Income

OWN-SOURCE REVENUE

	2015 $	2014 $
Note 5A – Other

Inquiry Funding	-	139 741
Employee FBT Contributions	5 403	8 329
Other	75	1 933
Resources Received Free of Charge:
Australian National Audit Office	18 000	18 000
Defence Signals Directorate	4 545	4 545
Total other own-source revenue	28 023	172 548

Note 5B – Other Gains

Resources Received Free of Charge:
Department of the Prime Minister & Cabinet	102 000	102 000
Total other gains	102 000	102 000

REVENUE FROM GOVERNMENT

Note 5C – Revenue from Government

Appropriations:
Departmental Appropriation	3 003 000	2 179 000
Total revenue from government	3 003 000	2 179 000

Note 6 – Fair Value Measurement

The following table provides an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for the asset or liability.

Note 6A – Fair Value Measurements, Valuation Techniques and Inputs Used

	Fair value measurement at the end of the reporting period			For Levels 2 and 3 fair value measurements
	2015	2014	Category (Level 1, 2 or 3)	Valuation Technique(s)¹	Inputs used
Non-Financial Assets
Property, plant and equipment
Level 2 assets included office equipment and furniture	22 338	30 035	Level 2	Market comparables	Sale prices of comparable assets
Level 3 assets included computer equipment and office furniture	4 880	33 700	Level 3	Market comparables and depreciated replacement cost	Sale prices of comparable assets in limited market and quotes for replacement assets adjusted for life of asset

No change in valuation technique occurred during

The OIGIS's assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.

Note 6B – Level 1 and Level 2 Transfers for Recurring Fair Value Measurements

There were no transfers between levels during 2014-15.

OIGIS's policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Note 7 – Financial Assets

	2015 $	2014 $
Note 7A – Trade and other receivables

Appropriations receivable:
For existing programs	2 987 155	2 223 593
Total appropriation receivable	2 987 155	2 223 593

Other Receivables:
GST receivable from the Australian Taxation Office	1 752	153
Other receivables	77 015	6 457
Total other receivables	78 767	6 610
Total trade and other receivables (gross)	3 065 922	2 230 203

Less Impairment Allowance:
Other	-	-
Total trade and other receivables (net)	3 065 922	2 230 203

Receivables are aged as follows: Not overdue	3 065 922	2 230 203

All receivables are expected to be recovered in less than 12 months.

Note 8 – Non-Financial Assets

	2015 $	2014 $
Note 8A – Property, plant and equipment

Other property, plant and equipment:
Fair value	63 635	63 735
Accumulated depreciation	(36 417)	-
Total property, plant and equipment	27 218	63 735

All revaluations are independent and are conducted in accordance with the revaluation policy stated in Note 1.14. The most recent revaluation was conducted by the B&A Valuers as at 30 June 2014.

All assets were examined for indicators of impairment during the stocktake completed on 30 June 2015 and none were found. With the exception of the secure IT system (which is due to be upgraded in late 2015) no items of property plant and equipment are expected to be sold or disposed of within the next 12 months. Note: the components of the secure IT system which are due for upgrading were given appropriate useful lives during the revaluation exercise in 2014 and were consequently not assessed as impaired at 30 June 2015.

Note 8B – Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2014-15)

Item	Other property,plant & equipment $	Total $
As at 1 July 2014
Gross book value	63 735	63 735
Accumulated depreciation and impairment	-	-
Net book value as at 1 July 2014	63 735	63 735
Revaluations and impairments recognised in other comprehensive income
Depreciation expense	(36 481)	(36 481)
Disposals	(36)	(36)
Other	-	-
Net Book Value 30 June 2015	27 218	27 218
Net Bank Value as at 30 June 2015 represented by:
Gross book value	63 635	63 635
Accumulated depreciation and impairment	36 417	36 417

Note 8B – Reconciliation

Item	Other property,plant & equipment $	Total $
As at 1 July 2013
Gross book value	165 059	165 059
Accumulated depreciation and impairment	(78 416)	(78 416)
Net book value as at 1 July 2013	86 643	86 643
Additions
by purchase	8 258	8 258
Revaluations and impairments recognised in other comprehensive income	9 308	9 308
Depreciation expense	(37 999)	(37 999)
Disposals	(2 475)	(2 475)
Net Book Value 30 June 2014	63 735	63 735
Net Bank Value as at 30 June 2014 represented by:
Gross book value	63 735	63 735
Accumulated depreciation and impairment	-	-

Note 9 – Payables

	2015 $	2014 $
Note 9A - Suppliers

Trade creditors and accruals	20 690	38 800
Total suppliers	20 690	38 800

Supplier payables expected to be settled within 12 months:
Related entities	19 626	28 882
External parties	1 064	9 918
Total supplier payables	20 690	38 800

No supplier payables expected to be settled in greater than 12 months.

Note 9B – Other Payables

Salaries and wages	67 338	48 968
Superannuation	10 572	8 411
Other	50 221	20 847
Total other payables	128 131	78 226

Total other payables are expected to be settled in:
No more than 12 months	128 131	78 226
Total other payables	128 131	78 226

Note 10 – Provisions

	2015 $	2014 $
Note 10A – Employee Provisions

Leave	865 347	730 388
Total employee provisions	865 347	730 388

Employee provisions are expected to be settled in:
No more than 12 months	145 538	106 878
More than 12 months	719 809	623 510
Total employee provisions	865 347	730 388

Note 11 – Cash Flow Reconciliation

	2015 $	2014 $
Reconciliation of Cash and cash equivalents as per Statement of Financial Position to Cash flow statement

Report cash and cash equivalents as per:
Cash Flow Statement	174 814	207 005
Statement of Financial Position	174 814	207 005
Difference	-	-

Reconciliation of net cost of services to net cash from operating activities:
Net cost of services	(2 417 869)	(1 952 667)
Add revenue from Government	3 003 000	2 179 000

Adjustments for non-cash items
Depreciation/amortisation	36 481	37 999
Loss on disposal of assets	36	2 474

Movements in assets and liabilities
Increase/(Decrease) in provision of employee liabilities	134 959	(6 679)
Increase/(Decrease) in other payables	49 905	25 418
Increase/(Decrease) in supplier trade creditors	(12 575)	28 308
(Increase)/Decrease in appropriation receivables	(748 436)	(317 623)
(Increase)/Decrease in other assets	(70 558)	(1 975)
(Increase)/Decrease in other prepayments	-	3 341
(Increase)/Decrease in GST receivable	(1 599)	92
Net cash from (used by) operating activities	(26 656)	(2 312)

Note 12 – Senior Management Personnel Remuneration

	2015 $	2014 $

Short-term employee benefits:
Salary	521 028	489 240
Annual leave¹	29 772	-
Total short-term employee benefits	550 800	489 240

Post-employment benefits:
Superannuation	94 438	82 538
Total post-employment benefits	94 438	82 538

Other long-term employee benefits:
Annual Leave	10 742	39 404
Long Service Leave	18 997	17 732
Total other long-term employee benefits	29 739	57 136

Termination benefits	-	-
Total senior executive remuneration expenses	674 977	628 914

The total number of senior management personnel that are included in the above table are 3 individuals (2014: 2 individuals). The 2015 figure includes one seconded officer for part of the year.

Annual Leave expected to be taken within 12 months.

Note 13 – Financial Instruments

	2015 $	2014 $
Note 13A – Categories of Financial Instruments

Financial Assets
Loans and Receivables
Loans and receivables
Cash and cash equivalents	174 814	207 005
Trade receivables	77 015	6 457
Total carrying amount of financial assets	251 829	213 462

Financial Liabilities
At amortised cost
Trade creditors	20 690	38 800
Total carrying amount of financial liabilities	20 690	38 800

The net fair values of the financial assets and liabilities are at their carrying amounts. OIGIS derived no interest income from financial assets in either the current and prior year.

Note 13B – Credit Risk

OIGIS has endorsed policies and procedures for debt management (including the provision of credit terms), to reduce the incidence of credit risk. In most instances debtors for OIGIS are other government entities and therefore represent minimal credit risk.

The carrying amount of financial assets, net of impairment losses, reported in the statement of financial position represents the Agencies maximum exposure to credit risk.

Note 13C – Liquidity Risk

OIGIS's financial liabilities only include payables. Any exposure to liquidity risk is based on the notion that OIGIS will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely as OIGIS is appropriated funding from the Australian Government and manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the entity has policies in place to ensure timely payments were made when due and has no past experience of default.

Note 13D – Market Risk

OIGIS holds only basic financial instruments that do not expose the agency to certain market risks, such as 'Currency risk' and 'Other price risk'.

Note 14 – Financial Asset Reconciliation

	2015 $	2014 $
Financial Assets

Total financial assets as per statement of financial position	3 240 736	2 437 208

Less: non-financial instrument components:

Appropriation Receivable	2 987 155	2 223 593
GST Receivable	1 752	153

Total non-financial instrument components	2 988 907	2 223 746

Total financial assets as per financial instruments note	251 829	213 462

Note 15 – Appropriations

Note 15A – Annual Appropriations ('Recoverable GST exclusive')

Ordinary Annual Services	2015 $	2014 $
Annual Appropriation	3 029 000	2 248 000
PGPA Act – Section 74¹	116 500	401 110
PGPA Act – Section 75	-	-
Total appropriation	3 145 500	2 649 110
Appropriation applied (current and prior years)	2 371 063	2 270 744
Variance²	774 437	378 366

In 2013-14 relates to FMA Act Section 31.
Variance between Total Appropriation and Appropriation Applied is due to section 74 receipts and the additional appropriation received midyear. The additional appropriation was not fully expended largely due to recruitment delays associated with security clearance requirements.

Note 15B: Departmental Capital Budget ('Recoverable GST exclusive)

Departmental Capital Budget	2015 $	2014 $
Annual DepartmentalCapitalBudget¹	26 000	69 000
Payments for non-financial assets²	5 535	2 723
Variance	20 465	66 277

Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriations, please see Table A: Annual Appropriations.
Payments made for non-financial assets include purchases of assets and expenditure on assets which have been capitalised.

Note 15C: Unspent Annual Appropriations ('Recoverable GST exclusive)

	2015 $	2014 $
Departmental
Appropriation Act (No 1) 2010-11 – DCB¹	-	1 874
Appropriation Act (No 1) 2011-12 – DCB¹	-	9 000
Appropriation Act (No 1) 2013-14	-	2 142 718
Appropriation Act (No 1) 2013-14 - DCB	69 000	69 000
Appropriation Act (No 1) 2014-15	2 051 155
Appropriation Act (No 3) 2014-15	840 000
Appropriation Act (No 1) 2014-15 – DCB	26 000
Cash	174 814	207 005
Total Departmental	3 160 969	2 429 597

Appropriation Act (No. 1) 2010-2011 – DCB and Appropriation Act (No 1) 2011-2012 -DCB lapsed with effect from 1 July 2014. The effect has been reflected in the Statement of Financial Position in Contributed Equity.

Note 16 – Reporting of Outcomes

There is only one outcome for OIGIS as detailed in the objectives in Note 1.1. Note 16A – Net Cost of Outcome Delivery

	Outcome 1		Total
	2015	2014	2015	2014
	$	$	$	$

Departmental
Expenses	2 547 892	2 227 215	2 547 892	2 227 215
Own-source income	130 023	274 548	130 023	274 548
Net cost/(contribution) of outcome delivery	2 417 869	1 952 667	2 417 869	1 952 667

Note 17 – Budgetary Reports and Explanation of Major Variances

The following tables provide a comparison of the original budget as presented in the 2014-15 Portfolio Budget Statements (PBS) to the 2014-15 final outcome as presented in accordance with Australian Accounting Standards for OIGIS. The Budget is not audited. Explanations of major variances are provided further below.

Note 17A: Departmental Budgetary Reports

Statement of Comprehensive Income for not-for-profit Reporting Entities
for year ended 30 June 2015

	Actual	Budget Estimate
		Original	Variance
	2015 $	2015 $	2015 $
NET COST OF SERVICES

Expenses
Employee benefits	2 188 443	1 905 000	283 443
Supplier	322 932	376 000	(53 068)
Depreciation and amortisation	36 481	13 000	23 481
Loss on asset disposal	36	-	36
Total Expenses	2 547 892	2 294 000	253 892

Own-Source Income

Own-source revenue
Other revenue	28 023	-	28 023
Total own-source revenue	28 023	-	28 023

Gains
Other gains	102 000	118 000	(16 000)
Total gains	102 000	118 000	(16 000)
Total own-source income	130 023	118 000	12 023
Net Cost of services	2 417 869	2 176 000	241 869

Revenue from Government	3 003 000	2 163 000	840 000
Surplus attributable to the Australian Government	585 131	(13 000)	598 131

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus	-	-	-
Total comprehensive income	585 131	(13 000)	598 131

ASSETS

Financial Assets
Cash and cash equivalents	174 814	202 000	(27 186)
Trade and other receivables	3 065 922	1 840 000	1 225 922
Total financial assets	3 240 736	2 042 000	1 198 736

Non-Financial Assets
Property, plant and equipment	27 218	157 000	(129 782)
Other non-financial assets	-	-	-
Total non-financial assets	27 218	157 000	(129 782)
Total Assets	3 267 954	2 199 000	1 068 954

LIABILITIES

Payables
Suppliers	20 690	5 000	15 690
Other payables	128 131	-	128 131
Total payables	148 821	5 000	143 821

Provisions
Employee provisions	865 347	774 000	91 347
Total provisions	865 347	774 000	91 347

Total Liabilities	1 014 168	779 000	235 168
Net Assets	2 253 786	1 420 000	833 786

EQUITY

Contributed equity	478 126	489 000	(10 874)
Reserves	16 105	7 000	9 105
Retained surplus	1 759 555	924 000	835 555

Total Equity	2 253 786	1 420 000	833 786

Statement of Comprehensive Income for not-for-profit Reporting Entities
for year ended 30 June 2015

	Retained Earnings			Asset Revaluation Surplus			Contributed Equity/Capital			Total Equity
	Actual	Budget Estimate		Actual	Budget Estimate		Actual	Budget Estimate		Actual	Budget Estimate
		Original	Variance		Original	Variance		Original	Variance		Original	Variance
	2015	2015	2015	2015	2015	2015	2015	2015	2015	2015	2015	2015
	$	$	$	$	$	$	$	$	$	$	$	$

Opening Balance
Balance carried forward from previous period	1 174 424	937 000	237 424	16 105	7 000	9 105	463 000	463 000	-	1 653 529	1 407 000	246 529
Adjusted opening balance	1 174 424	937 000	237 424	16 105	7 000	9 105	463 000	463 000	-	1 653 529	1 407 000	246 529

Comprehensive Income
Surplus for the period	585 131	(13 000)	598 131	-	-	-	-	-	-	585 131	(13 000)	598 131
Other Comprehensive Income	-	-	-	-	-	-	-	-	-	-	-	-
Total Comprehensive Income	585 131	(13 000)	598 131	-	-	-	-	-	-	585 131	(13 000)	598 131

Transactions with owners
Contributions by owners
Reduction of Appropriation – Omnibus Repeal Day Act 2014							(10 874)	-	(10 874)
Departmental Capital Budget	-	-	-	-	-	-	26 000	26 000	-	15 126	26 000	(10 874)
Total Transactions with Owners	-	-	-	-	-	-	15 126	26 000	(10 874)	15 126	26 000	(10 874)
Closing balance as at 30 June	1 759 555	924 000	835 555	16 105	7 000	9 105	478 126	489 000	(10 874)	2 253 786	1 420 000	833 786

Statement of Comprehensive Income for not-for-profit Reporting Entities
for year ended 30 June 2015

	Actual	Budget Estimate
		Original	Variance
	2015 $	2015 $	2015 $
OPERATING ACTIVITIES

Cash received
Appropriations	2 371 063	2 339 000	32 063
Sales of goods and rendering of services	-	-	-
Other	125 097	-	125 097
Total cash received	2 496 160	2 339 000	157 160

Cash used
Employees	(2 092 294)	(1 932 000)	160 294
Suppliers	(314 023)	(407 000)	(92 977)
Net GST paid	-	-	-
Other	(116 499)	-	116 499
Total cash used	(2 522 816)	(2 339 000)	(183 816)

Net cash from operating activities	(26 656)	-	(26 656)

INVESTING ACTIVITIES

Cash received
Proceeds from sales of property, plant and equipment	-	-	-
Total cash received			-

Cash used
Purchase of property, plant and equipment	(5 535)	(92 000)	86 465
Total cash used	(5 535)	(92 000)	86 465

Net cash from (used by) investing activities	(5 535)	(92 000)	86 465

FINANCING ACTIVITIES

Cash received
Contributed equity	-	92 000	(92 000)
Total cash received	-	92 000	(92 000)

Net cash from financing activities	-	92 000	(92 000)

Net increase in cash held	(32 191)	-	(32 191)
Cash and cash equivalents at the beginning of the reporting period	207 005	202 000	5 005

Cash and cash equivalents at the end of the reporting period	174 814	202 000	(27 186)

Note 17B – Departmental Major Budget Variances for 2015

Explanation of major variances	Affected line items (and statement)
At MYEFO the office received additional funding as part of the measure 'National Security- additional counterterrorism funding'. This included funding for five additional ASL for the full financial year. Three of these positions were filled with already cleared staff. Recruitment delays are associated with the lengthy security clearance process.	Impacted: Revenue from government Employee expenses Supplier expenses Appropriations receivable Employee provisions Other payables Retained surplus Cashflow statement operating activities
The variance is partly due to the effect on depreciation of changes in asset values and estimated remaining lives after the asset revaluation conducted at 30 June 2014.	Impacted: Depreciation Expenses
The value of resources received free of charge (office space) was less than originally budgeted for.	Impacted: Other Gains
The planned secure IT system upgrade was deferred until late 2015. The departmental capital funding was moved to 2015-16 during the year.	Impacted: Property, plant and equipment Cash flow statement – cash used for investing activities and cash received from contributed equity.