The Australian Electoral Commission (AEC) is an independent statutory body established under the Commonwealth Electoral Act 1918 for the purpose of conducting elections and referendums, maintaining the electoral roll, providing electoral information, education programs and related services and managing funding and disclosure in relation to political parties.
While the AEC is predominantly funded by Parliamentary appropriations, revenue is also received for the provision of electoral services to other organisations.
The AEC is structured under one outcome to meet the following three programs:
Program 1: Voter entitlement for Australians and support for electoral events and redistributions through maintaining an accurate and up-to-date electoral roll.
Program 2: Access to an impartial and independent electoral system for Australians through the provision of electoral services.
Program 3: Informed Australians through the provision of information services on electoral matters.
AEC activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the AEC in its own right. Administered activities involve the management or oversight by the AEC, on behalf of the Government, of items controlled or incurred by the Government.
Administered items managed for the Government by the AEC are primarily the payment of Election Public Funding and collection of Electoral Fees and Fines under the operations of Program 2 (Impartial and independent electoral services).
The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth (2012) 288 ALR 410, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.
The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.
The financial statements have been prepared in accordance with:
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 thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the AEC 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 executor contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
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.
No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
No accounting standard has been adopted earlier than the application date as stated in the standard. Of the new standards, amendments to standards and interpretations issued prior to the sign-off date, where applicable to the current reporting period had no financial impact on the AEC, although changes to AASB 101 Presentation of Financial Statements have changed the presentation of the AEC’s Financial Statements.
The new standards, amendments to standards and interpretations issued by the Australian Accounting Standards Board prior to the sign-off date, are not expected to have a financial impact on the AEC for future reporting periods.
Revenue from the sale of goods is recognised when:
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 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 at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
The AEC receives funding for programs under a Record of Understanding with AusAID. The nature of funding falls within two broad categories:
Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AEC 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.
Amounts received under the Parental Leave Payments Scheme by the AEC not yet paid to employees are presented gross as cash and a liability (payable). The total amount received under this scheme is disclosed as a footnote to the Note 7A: Suppliers.
Resources received free of charge are recognised as either revenue or gains depending on their nature 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.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).
Gains from disposal of assets are recognised when control of the asset has passed to the buyer.
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and from 1 July 2010, Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.
Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.
The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. There were no distributions to owners in 2012–13 or 2011–12.
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of 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.
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 the AEC 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 the AEC’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 reference to the work of an actuary as at 30 June 2013. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Annual leave is disclosed as current as there is a legal right to the payment, irrespective of whether the payment is expected to be paid within 12 months or not.
Provision is made for separation and redundancy benefit payments. The AEC recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
AEC staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or have exercised SuperChoice and nominated their own fund.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
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 and Deregulation’s administered schedules and notes.
The AEC 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. The AEC 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 seven working days of the year.
Temporary staff members of the AEC have their superannuation paid into their nominated fund or if no fund is nominated, the Australian Government Employees Superannuation Trust (AGEST) fund is used.
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.
The AEC did not have any finance leases as at 30 June 2013.
Payments for operating leases with fixed increases are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.
Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as an asset and a liability. These assets are reduced across the life of the lease by allocating lease payments between rental expense and reduction of the liability.
Cash is recognised at its nominal amount. Cash and cash equivalents include notes and coins held and any deposits in bank accounts held at call with a bank or financial institution.
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.
Financial assets are assessed for impairment at the end of each reporting period.
Financial assets held at amortised cost – if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.
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.
Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.
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).
Contingent liabilities and contingent assets are not recognised in the balance sheet 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.
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition.
Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2 000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the AEC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AEC’s leasehold improvements with a corresponding provision for the ‘makegood’ recognised.
| Asset Class | Fair value measured at: |
|---|---|
| Leasehold Improvements | Depreciation Replacement Cost |
| Infrastructure, Plant and Equipment | Market Selling Price |
Following initial recognition at cost, infrastructure, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Full valuations are conducted every five years and an internal assessment is carried out in the other years to ensure that the carrying amounts of assets did not differ materially from the assets fair values as at the reporting date. Valuations are carried out by an independent qualified valuer.
Revaluation adjustments are made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AEC using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
| 2013 | 2012 | |
|---|---|---|
| Leasehold improvements | lesser of lease term/useful life | lesser of lease term/useful life |
| Plant and Equipment | 5 to 10 years | 5 to 10 years |
| IT Equipment | 3 to 5 years | 3 to 5 years |
All assets were assessed for impairment at 30 June 2013. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AEC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
The AEC’s intangibles comprise purchased software with an initial cost greater than $5 000 and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the AEC’s software is between 1 to 10 years (2011–12: 1 to 10 years).
All software assets were assessed for indications of impairment as at 30 June 2013.
Inventories held for distribution are valued at cost, adjusted for any loss of service potential. The items recognised as inventory have been narrowed to include only cardboard equipment and declaration envelopes.
The AEC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of GST except:
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
Revenue collected by the AEC for use by the Government rather than the AEC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of the Government. These transfers to and from the OPA are adjustments to the administered cash held by the AEC on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.
All administered revenues are revenues relating to ordinary activities performed by the AEC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.
On 1 July 2013, the Statute Stocktake (Appropriations) Act 2013 received royal assent to repeal all old Annual Appropriation Acts from 1 July 1999 to 30 June 2010. Under this requirement the AEC will return $0.400 million to Consolidated Revenue. This balance is included in Appropriations Receivable in Note 5B.
There are no events after the reporting date that will materially affect the financial statements.
| 2013 $'000 |
2012 $’000 |
|
|---|---|---|
| Note 3A: Employee Benefits | ||
| Wages and salaries | 65 266 | 62 302 |
| Superannuation: | ||
| Defined contribution plans | 6 740 | 5 805 |
| Defined benefit plans | 3 975 | 3 464 |
| Leave and other entitlements | (852) | 3 312 |
| Separation and redundancies | 1 803 | 1 773 |
| Total employee benefits | 76 932 | 76 656 |
| Note 3B: Suppliers | ||
| Goods and services | ||
| Consultants | 941 | 549 |
| Contractors | 4 553 | 3 985 |
| Travel | 3 765 | 4 391 |
| IT services | 10 675 | 9 658 |
| Inventory | 114 | 607 |
| Other | 17 958 | 19 239 |
| Total goods and services | 38 006 | 38 429 |
| Goods and services are made up of: | ||
| Provision of goods – related entities | 214 | 654 |
| Provision of goods – external parties | 15 884 | 16 154 |
| Rendering of services – related entities | 5 646 | 1 859 |
| Rendering of services – external parties | 16 262 | 19 762 |
| Total goods and services | 38 006 | 38 429 |
| Other supplier expenses | ||
| Operating lease rentals – related entities: | ||
| Minimum lease payments | 1 797 | 1 781 |
| Operating lease rentals – external parties: | ||
| Minimum lease payments | 9 301 | 8 946 |
| Workers compensation expenses | 676 | 845 |
| Total other supplier expenses | 11 774 | 11 572 |
| Total supplier expenses | 49 780 | 50 001 |
| Note 3C: Depreciation and Amortisation | ||
| Depreciation: | ||
| Property, plant and equipment | 1 969 | 2 213 |
| Leasehold Improvements | 3 670 | 1 678 |
| Total depreciation | 5 639 | 3 891 |
| Amortisation: | ||
| Intangibles | 2 765 | 2 343 |
| Total amortisation | 2 765 | 2 343 |
| Total depreciation and amortisation | 8 404 | 6 234 |
| Note 3D: Write-Down and Impairment of Assets | ||
| Asset write-downs and impairments from: | ||
| Impairment of receivables | 1 | 22 |
| Total write-down and impairment of assets | 1 | 22 |
| Note 3E: Disposal of Assets | ||
| Property, plant and equipment: | ||
| Proceeds | (25) | – |
| Carrying value of assets disposed | 89 | 845 |
| Computer Software | ||
| Proceeds | – | – |
| Carrying value of assets disposed | 57 | – |
| Net loss from disposal of assets | 121 | 845 |
| 2013 $'000 |
2012 $’000 |
|
|---|---|---|
| Own-source revenue | ||
| Note 4A: Sale of Goods and Rendering of Services | ||
| Provision of goods – related entities | 72 | 37 |
| Provision of goods – external parties | 11 762 | 11 496 |
| Rendering of services – related entities | 5 078 | 5 863 |
| Rendering of services – external parties | 869 | 196 |
| Total sale of goods and rendering of services | 17 781 | 17 592 |
| Note 4B: Other Revenue | ||
| Other | 1 074 | 232 |
| Total other revenue | 1 074 | 232 |
| Gains | ||
| Note 4C: Other Gains | ||
| Resources received free of charge | 84 | 82 |
| Compensation payments received | – | 210 |
| Change in fair value through profit and loss: | ||
| Leasehold Improvements | (93) | 291 |
| Total other gains | (9) | 583 |
| Revenue from government | ||
| Note 4D: Revenue from Government | ||
| Appropriations: | ||
| Departmental appropriation | 105 257 | 97 200 |
| Departmental special appropriations | 9 000 | 9 000 |
| Total revenue from Government | 114 257 | 106 200 |
Departmental Appropriation for 2012–13 includes an amount of $3.795m relating to Appropriation Act 1 (2013–14).
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 5A: Cash and Cash Equivalents | ||
| Cash on hand or on deposit | 1 689 | 1 535 |
| Total cash and cash equivalents | 1 689 | 1 535 |
| Note 5B: Trade and Other Receivables | ||
| Good and Services: | ||
| Goods and services – related entities | 153 | 730 |
| Goods and services – external parties | 1 401 | 114 |
| Total receivables for goods and services | 1 554 | 844 |
| Appropriations receivable: | ||
| Program funding | 11 986 | 9 240 |
| Equity Injections | 1 654 | 4 581 |
| Departmental Capital Budget | 4 922 | 3 090 |
| Total appropriations receivable | 18 562 | 16 911 |
| Other receivables: | ||
| GST receivable from the Australian Taxation Office | 316 | 612 |
| Other – related entities | 213 | 243 |
| Other – external parties | 672 | 3 757 |
| Total other receivables | 1 201 | 4 612 |
| Total trade and other receivables (gross) | 21 317 | 22 367 |
| Less impairment allowance account: | ||
| Goods and services | – | 1 |
| Total impairment allowance account | – | 1 |
| Total trade and other receivables (net) | 21 317 | 22 366 |
| Receivables are expected to be recovered in: | ||
| No more than 12 months | 21 317 | 22 366 |
| More than 12 months | – | – |
| Total trade and other receivables (net) | 21 317 | 22 366 |
| Receivables are aged as follows: | ||
| Not overdue | 21 257 | 22 329 |
| Overdue by: | ||
| 0 to 30 days | 41 | 35 |
| 31 to 60 days | 14 | 2 |
| 61 to 90 days | – | – |
| More than 90 days | 5 | 1 |
| Total receivables (gross) | 21 317 | 22 367 |
| The impairment allowance account is aged as follows: | ||
| Overdue by: | ||
| More than 90 days | – | 1 |
| Total impairment allowance account | – | 1 |
Credit terms for goods and services are within 30 days (2012: 30 days).
| Goods and services $’000 |
Total $’000 |
|
|---|---|---|
| Opening balance | 1 | 1 |
| Amounts written off | – | – |
| Amounts recovered and reversed | – | – |
| Increase/decrease recognised in net surplus | (1) | (1) |
| Closing balance | – | – |
| Goods and services $’000 |
Total $’000 |
|
|---|---|---|
| Opening balance | – | – |
| Amounts written off | – | – |
| Amounts recovered and reversed | – | – |
| Increase/decrease recognised in net surplus | 1 | 1 |
| Closing balance | 1 | 1 |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 6A: Land and Buildings | ||
| Leasehold improvements: | ||
| Work in progress | 1 997 | 45 |
| Fair value | 10 168 | 8 575 |
| Accumulated depreciation | (233) | – |
| Total leasehold improvements | 11 932 | 8 620 |
| Total land and buildings | 11 932 | 8 620 |
No indicators of impairment were found for land and buildings (2012: $nil).
No land or buildings were expected to be sold or disposed of within the next 12 months.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 6B: Property, Plant and Equipment | ||
| Other property, plant and equipment: | ||
| Fair value | 5 796 | 3 814 |
| Accumulated depreciation | – | – |
| Total other property, plant and equipment | 5 796 | 3 814 |
| Total property, plant and equipment | 5 796 | 3 814 |
No indicators of impairment were found for infrastructure, plant and equipment (2012: $nil).
All revaluations were conducted in accordance with the revaluation policy stated at Note 1. In June 2013, an independent valuer from Rodney Hyman Asset Services Pty Ltd conducted a desktop update of the assets valued in 2012 plus the additions and disposals for the 2012–13 financial year.
A revaluation increment of $537 552 for leasehold improvements (2012: $204 195) was credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet. There was no revaluation increment for makegood (2012: $331 083). Similarly an increment of $1 395 557 for plant and equipment (2012: $29 708 decrement) was credited to the asset revaluation reserve and included in the equity section of the balance sheet.
| Leasehold Improvements $’000 |
Other Property, Plant and Equipment $’000 |
Total $’000 |
|
|---|---|---|---|
| As at 1 July 2012 | |||
| Gross book value | 8 620 | 3 814 | 12 434 |
| Accumulated depreciation and impairment | – | – | – |
| Net book value 1 July 2012 | 8 620 | 3 814 | 12 434 |
| Additions | |||
| By purchase | 6 469 | 2 619 | 9 088 |
| Revaluations and impairments recognised in other comprehensive income | 538 | 1 396 | 1 934 |
| Depreciation expense | (3 670) | (1 969) | (5 639) |
| Disposals | (25) | (64) | (89) |
| Net book value 30 June 2013 | 11 932 | 5 796 | 17 728 |
| Net book value as of 30 June 2013 represented by: | |||
| Gross book value | 12 165 | 5 796 | 17 961 |
| Accumulated depreciation and impairment | (233) | – | (233) |
| Net book value 30 June 2013 | 11 932 | 5 796 | 17 728 |
| Leasehold Improvements $’000 |
Other Property, Plant and Equipment $’000 |
Total $’000 |
|
|---|---|---|---|
| As at 1 July 2011 | |||
| Gross book value | 7 603 | 4 423 | 12 026 |
| Accumulated depreciation and impairment | (858) | – | (858) |
| Net book value 1 July 2011 | 6 745 | 4 423 | 11 168 |
| Additions | |||
| By purchase | 3 820 | 1 689 | 5 509 |
| Revaluations and impairments recognised in other comprehensive income | 535 | (30) | 505 |
| Revaluations recognised in the operating result | – | – | – |
| Depreciation expense | (1 678) | (2 213) | (3 891) |
| Disposals | (802) | (55) | (857) |
| Net book value 30 June 2012 | 8 620 | 3 814 | 12 434 |
| Net book value as of 30 June 2012 represented by: | |||
| Gross book value | 8 620 | 3 814 | 12 434 |
| Accumulated depreciation and impairment | – | – | – |
| Net book value 30 June 2012 | 8 620 | 3 814 | 12 434 |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 6D: Intangibles | ||
| Computer software: | ||
| Internally developed – in progress | 123 | 496 |
| Internally developed – in use | 45 575 | 40 711 |
| Purchased | 2 265 | 1 950 |
| Accumulated amortisation | (32 060) | (29 483) |
| Total computer software | 15 903 | 13 674 |
| Total intangibles | 15 903 | 13 674 |
No indicators of impairment were found for intangible assets (2012: $nil).
No intangibles are expected to be sold or disposed of within the next 12 months.
| Computer software internally developed $’000 |
Computer software purchased $’000 |
Total $’000 |
|
|---|---|---|---|
| As at 1 July 2012 | |||
| Gross book value | 41 207 | 1 950 | 43 157 |
| Accumulated amortisation and impairment | (27 902) | (1 581) | (29 483) |
| Net book value 1 July 2012 | 13 305 | 369 | 13 674 |
| Additions | |||
| By purchase or internally developed | 4 736 | 315 | 5 051 |
| Amortisation | (2 577) | (188) | (2 765) |
| Disposals | (57) | – | (57) |
| Net book value 30 June 2013 | 15 407 | 496 | 15 903 |
| Net book value as of 30 June 2013 represented by: | |||
| Gross book value | 45 698 | 2 265 | 47 963 |
| Accumulated amortisation and impairment | (30 291) | (1 769) | (32 060) |
| Net book value 30 June 2013 | 15 407 | 496 | 15 903 |
| Computer software internally developed $’000 |
Computer software purchased $’000 |
Total $’000 |
|
|---|---|---|---|
| As at 1 July 2011 | |||
| Gross book value | 37 479 | 1 838 | 39 317 |
| Accumulated amortisation and impairment | (26 013) | (1 258) | (27 271) |
| Net book value 1 July 2012 | 11 466 | 580 | 12 046 |
| Additions | |||
| By purchase or internally developed | 3 728 | 245 | 3 973 |
| Amortisation | (1 889) | (454) | (2 343) |
| Disposals | – | (2) | (2) |
| Net book value 30 June 2012 | 13 305 | 369 | 13 674 |
| Net book value as of 30 June 2012 represented by: | |||
| Gross book value | 41 207 | 1 950 | 43 157 |
| Accumulated amortisation and impairment | (27 902) | (1 581) | (29 483) |
| Net book value 30 June 2012 | 13 305 | 369 | 13 674 |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 6F: Inventories | ||
| Inventories held for distribution | ||
| Election equipment at cost (ballot paper and voting equipment) | 3 594 | 2 983 |
| Total inventories | 3 594 | 2 983 |
During 2012–13, $114 420 of inventory held for distribution was recognised as an expense (2011–12: $607 039).
No items of inventory were recognised at fair value less cost to sell.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 6G: Other Non-Financial Assets | ||
| Prepayments | 1 653 | 2 191 |
| Total other non-financial assets | 1 653 | 2 191 |
| Total other non-financial assets – are expected to be recovered in: | ||
| No more than 12 months | 1 611 | 2 155 |
| More than 12 months | 42 | 36 |
| Total other non-financial assets | 1 653 | 2 191 |
No indicators of impairment were found for other non-financial assets.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 7A: Suppliers | ||
| Trade creditors and accruals | 5 728 | 8 436 |
| Total supplier payables | 5 728 | 8 436 |
| Supplier payables expected to be settled within 12 months: | ||
| Related entities | 638 | 2 849 |
| External parties | 5 090 | 5 587 |
| Total | 5 728 | 8 436 |
| Total supplier payables | 5 728 | 8 436 |
Settlement was usually made within 30 days.
The AEC received $160 751 (2012: $120 338) under the Paid Parental Leave Scheme.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 7B: Other Payables | ||
| Salaries and wages | 2 074 | 2 337 |
| Superannuation | 314 | 271 |
| Separations and redundancies | – | 89 |
| Lease incentives | 4 421 | 3 550 |
| Straight-line leases | 306 | 180 |
| Unearned revenue | 1 403 | 2 823 |
| Total other payables | 8 518 | 9 250 |
| Total other payables are expected to be settled in: | ||
| No more than 12 months | 4 351 | 5 977 |
| More than 12 months | 4 167 | 3 273 |
| Total other payables | 8 518 | 9 250 |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 8A: Employee Provisions | ||
| Leave | 22 535 | 23 250 |
| Total employee provisions | 22 535 | 23 250 |
| Employee provisions are expected to be settled in: | ||
| No more than 12 months | 5 784 | 5 843 |
| More than 12 months | 16 751 | 17 407 |
| Total employee provisions | 22 535 | 23 250 |
| Note 8B: Other Provisions | ||
| Provision for restoration obligations | 1 553 | 1 538 |
| Total other provisions | 1 553 | 1 538 |
| Other provisions are expected to be settled in: | ||
| No more than 12 months | 225 | 356 |
| More than 12 months | 1 328 | 1 182 |
| Total other provisions | 1 553 | 1 538 |
| Provision for restoration $’000 |
Total $’000 |
|
|---|---|---|
| Carrying amount 1 July 2012 | 1 538 | 1 538 |
| Additional provisions made | 177 | 177 |
| Amounts used | (254) | (254) |
| Amounts reversed | 79 | 79 |
| Unwinding of discount | 13 | 13 |
| Closing balance 2013 | 1 553 | 1 553 |
The AEC currently has 35 (2012: 36) agreements for the leasing of premises which have provisions requiring the entity to restore the premises to their original condition at the conclusion of the lease. The entity has made a provision to reflect the present value of this obligation.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement | ||
| Cash and cash equivalents as per: | ||
| Cash flow statement | 1 689 | 1 535 |
| Balance sheet | 1 689 | 1 535 |
| Difference | – | – |
| Reconciliation of net cost of services to net cash from operating activities: | ||
| Net cost of services | (116 392) | (115 351) |
| Add revenue from Government | 114 257 | 106 200 |
| Adjustments for non-cash items | ||
| Depreciation/amortisation | 8 404 | 6 234 |
| Net write (up)/down of makegood liability | (163) | (372) |
| Loss/(gain) on disposal of assets | 121 | 845 |
| Changes in assets/liabilities | ||
| (Increase)/decrease in lease incentive asset | 89 | (32) |
| (Increase)/decrease in net receivables | (46) | (9 031) |
| (Increase)/decrease in inventories | (611) | 398 |
| (Increase)/decrease in prepayments | 538 | (68) |
| Increase/(decrease) in employee provisions | (715) | 3 500 |
| Increase/(decrease) in supplier payables | (1 940) | 3 101 |
| Increase/(decrease) in other payable | (732) | 5 383 |
| Net cash from operating activities | 2 810 | 807 |
| Claims for damages or costs | Total | |||
|---|---|---|---|---|
| 2013 $’000 |
2012 $’000 |
2013 $’000 |
2012 $’000 |
|
| Contingent assets | ||||
| Balance from previous period | 90 | 41 | 90 | 41 |
| New contingent assets recognised | – | 90 | – | 90 |
| Assets recognised | (90) | (41) | (90) | (41) |
| Total contingent assets | – | 90 | – | 90 |
| Net contingent assets | – | 90 | – | 90 |
At 30 June 2013, the AEC had no quantifiable contingencies (2012: $58 906 of contingent assets in respect of recoverable court costs). The 2012 estimate is based on costs incurred by the AEC.
At 30 June 2013, the AEC had no unquantifiable contingencies.
The AEC has no significant remote contingencies.
| 2013 $ |
2012 $ |
|
|---|---|---|
| Short-term employee benefits: | ||
| Salary | 3 160 047 | 2 638 334 |
| Annual leave accrued | 234 869 | 198 388 |
| Other2 | 57 467 | 59 672 |
| Total short-term employee benefits | 3 452 383 | 2 896 394 |
| Post-employment benefits: | ||
| Superannuation | 543 824 | 493 774 |
| Total post-employment benefits | 543 824 | 493 774 |
| Other long-term benefits: | ||
| Long-service leave | 75 493 | 63 768 |
| Total other long-term benefits | 75 493 | 63 768 |
| Termination benefits | – | 373 051 |
| Total employment benefits | 4 071 700 | 3 826 987 |
| Average annual reportable remuneration1 | Senior Executives No | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total $ |
|---|---|---|---|---|---|---|
| Total remuneration (including part-time arrangements): | ||||||
| less than $180 000 | 2 | 141 028 | 17 523 | – | – | 158 551 |
| $180 000 to $209 999 | 9 | 169 511 | 23 166 | – | – | 192 677 |
| $210 000 to $239 999 | 3 | 195 182 | 26 757 | – | – | 221 939 |
| $240 000 to $269 999 | 4 | 225 936 | 33 915 | 126 | – | 259 977 |
| $360 000 to $389 999 | 1 | 332 283 | 44 931 | – | – | 377 214 |
| Total | 19 |
| Average annual reportable remuneration1 | Senior Executives No | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total $ |
|---|---|---|---|---|---|---|
| Total remuneration (including part-time arrangements): | ||||||
| less than $180 000 | 6 | 146 036 | 13 338 | – | – | 159 374 |
| $180 000 to $209 999 | 8 | 174 557 | 20 476 | – | – | 195 033 |
| $210 000 to $239 999 | 3 | 198 689 | 23 416 | – | – | 222 105 |
| $240 000 to $269 999 | 2 | 222 050 | 26 985 | – | – | 249 035 |
| $330 000 to $359 999 | 1 | 312 589 | 40 071 | – | – | 352 660 |
| $360 000 to $389 999 | 1 | 365 769 | 16 166 | – | – | 381 935 |
| Total | 21 |
| Average annual reportable remuneration1 | Senior Executives No | Reportable salary 2$ |
Contributed superannuation 3$ |
Reportable allowances 4$ |
Bonus paid5 $ |
Total $ |
|---|---|---|---|---|---|---|
| Total remuneration (including part-time arrangements): | ||||||
| $180 000 to $209 999 | 1 | 174 353 | 18 381 | – | – | 192 734 |
| Total | 1 |
| Average annual reportable remuneration1 | Senior Executives No | Reportable salary2 $ |
Contributed superannuation3 $ |
Reportable allowances4 $ |
Bonus paid5 $ |
Total $ |
|---|---|---|---|---|---|---|
| Total remuneration (including part-time arrangements): | ||||||
| $180 000 to $209 999 | – | – | – | – | – | – |
| Total | – |
Each row is an averaged figure based on headcount for individuals in the band.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Financial statement audit services were provided free of charge to the AEC by the Australian National Audit Office (ANAO). | ||
| Fair value of the services provided | ||
| Financial statement audit services | 84 | 82 |
| Total | 84 | 82 |
No other services were provided by the Auditor-General.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 13A: Categories of Financial Instruments | ||
| Financial Assets | ||
| Cash and cash equivalents | 1 689 | 1 535 |
| Loans and receivables: | ||
| Receivables for goods and services | 2 439 | 4 843 |
| Carrying amount of financial assets | 4 128 | 6 378 |
| Financial Liabilities | ||
| At amortised cost: | ||
| Trade Creditors | 5 728 | 8 436 |
| Carrying amount of financial liabilities | 5 728 | 8 436 |
| Note 13B: Net Income and Expense from Financial Assets | ||
| Loans and receivables | ||
| Impairment | – | (1) |
| Net gain/(loss) from loans and receivables | – | (1) |
The net expense from financial assets not at fair value from profit and loss is nil (2012: $996).
The carrying amount of financial instruments does not differ from the fair value.
The AEC’s maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.
The AEC has no significant exposures to any concentration of credit risk.
The following table illustrates the AEC’s gross exposure to credit risk, excluding any collateral or credit enhancements.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Financial assets | ||
| Cash and cash equivalents | 1 689 | 1 535 |
| Receivables for goods and services | 1 554 | 843 |
| Other receivables – related and external parties | 885 | 4 000 |
| Total | 4 128 | 6 378 |
| 0 to 30 days $’000 |
31 to 60 days $’000 |
61 to 90 day $’000 |
90+ days $’000 |
Total $’000 |
|
|---|---|---|---|---|---|
| Receivables for goods and services | 41 | 14 | – | 5 | 60 |
| Total | 41 | 14 | – | 5 | 60 |
| 0 to 30 days $’000 |
31 to 60 days $’000 |
61 to 90 day $’000 |
90+ days $’000 |
Total $’000 |
|
|---|---|---|---|---|---|
| Receivables for goods and services | 35 | 2 | – | 1 | 38 |
| Total | 35 | 2 | – | 1 | 38 |
The AEC’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that the AEC will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the AEC and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
| Within 1 year $’000 |
Total $’000 |
|
|---|---|---|
| Trade Creditors | 5 728 | 5 728 |
| Total | 5 728 | 5 728 |
| Within 1 year $’000 |
Total $’000 |
|
|---|---|---|
| Trade Creditors | 8 436 | 8 436 |
| Total | 8 436 | 8 436 |
The AEC had no derivative financial liabilities in either 2013 or 2012.
The AEC holds basic financial instruments that do not expose the AEC to certain market risks. The AEC is not exposed to ‘Currency risk’ or ‘Other price risk’.
| Notes | 2013 $’000 |
2012 $’000 |
|
|---|---|---|---|
| Financial assets | |||
| Total financial assets as per balance sheet | 23 006 | 23 901 | |
| Less: non-financial instrument components | |||
| Appropriations receivable | 5B | (18 562) | (16 911) |
| Other receivables | 5B | (316) | (612) |
| Total non-financial instrument components | (18 878) | (17 523) | |
| Total financial assets as per financial instruments note | 13A | 4 128 | 6 378 |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Note 15A: Other Expenses | ||
| Refunds – electoral fines/penalties | 1 | – |
| Election public funding | – | – |
| Total grants | 1 | – |
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Own-source revenue | ||
| Non-Taxation Revenue | ||
| Note 16A: Fees and Fines | ||
| Electoral fines/penalties | 10 | 28 |
| Candidate deposits | 19 | 3 |
| Other | 3 | 10 |
| Total fees and fines | 32 | 41 |
There are no administered assets or liabilities for the AEC.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Reconciliation of cash and cash equivalents as per Administered Schedule of Assets and Liabilities to Administered Cash Flow Statement | ||
| Cash and cash equivalents as per: | ||
| Schedule of administered cash flows | – | – |
| Schedule of administered assets and liabilities | – | – |
| Difference | – | – |
| Reconciliation of net cost of services to net cash from operating activities: | ||
| Net contribution of services | 31 | 41 |
| Adjustments for non-cash items | – | – |
| Changes in assets/liabilities | – | – |
| Net cash from operating activities | 31 | 41 |
There are no administered contingencies, remote or quantifiable, for the AEC.
There are no administered financial instruments for the AEC.
The AEC received advice from the Department of Finance and Deregulation on 8 July 2013 that indicated there could be breaches of Section 83 under certain circumstances with payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. AEC will review its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. The AEC is not aware of any specific breaches of Section 83 in respect of these items.
| 2013 Appropriations | Appropriation applied in 2013 (current and prior years) | Variance $’000 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| Appropriation Act | FMA Act | Total appropriation $’000 |
|||||||
| Annual Appropriation3 $’000 |
Appropriations reduced1 $’000 |
AFM2 $’000 |
Section 30 $’000 |
Section 31 $’000 |
Section 32 $’000 |
||||
| Departmental | |||||||||
| Ordinary annual services | 112 091 | – | – | – | 21 997 | – | 134 088 | 133 305 | 783 |
| Other services | |||||||||
| Equity | 270 | – | – | – | – | – | 270 | 3 197 | (2 927) |
| Total departmental | 112 361 | – | – | – | 21 997 | – | 134 358 | 136 502 | (2 144) |
| 2012 Appropriations | Appropriation applied in 2012 (current and prior years) | Variance $’000 |
|||||||
|---|---|---|---|---|---|---|---|---|---|
| Appropriation Act | FMA Act | Total appropriation $’000 |
|||||||
| Annual Appropriation $’000 |
Appropriations reduced1 $’000 |
AFM2 $’000 |
Section 30 $’000 |
Section 31 $’000 |
Section 32 $’000 |
||||
| Departmental | |||||||||
| Ordinary annual services | 104 417 | – | – | – | 19 749 | – | 124 166 | 117 107 | 7 059 |
| Other services | |||||||||
| Equity | 370 | – | – | – | – | – | 370 | 1 778 | (1 408) |
| Total departmental | 104 787 | – | – | – | 19 749 | – | 124 536 | 118 885 | 5 651 |
|
2013 Capital Budget Appropriations |
Capital Budget Appropriations applied in 2013 (current and prior years) |
Variance |
|||||
|---|---|---|---|---|---|---|---|---|
| Appropriation Act | FMA Act | Total Capital Budget Appropriations $’000 |
Payments for non-financial assets3 $’000 |
Payments for other purposes $’000 |
Total payments $’000 |
|||
| Annual Capital Budget $’000 |
Appropriations reduced2 $’000 |
Section 32 $’000 |
||||||
| Departmental | ||||||||
| Ordinary annual services – Departmental Capital Budget1 | 10 629 | – | – | 10 629 | (8 797) | – | (8 797) | 1 832 |
| 2012 Capital Budget Appropriations | Capital Budget Appropriations applied in 2012 (current and prior years) | Variance $’000 |
||||||
|---|---|---|---|---|---|---|---|---|
| Appropriation Act | FMA Act | Total Capital Budget Appropriations $’000 |
Payments for non-financial assets3 $’000 |
Payments for other purposes $’000 |
Total payments $’000 |
|||
| Annual Capital Budget $’000 |
Appropriations reduced2 $’000 |
Section 32 $’000 |
||||||
| Departmental | ||||||||
| Ordinary annual services – Departmental Capital Budget1 | 7 217 | – | – | 7 217 | (6 020) | – | (6 020) | 1 197 |
| Authority | 2013 $’000 |
2012 $’000 |
|---|---|---|
| Departmental | ||
| Appropriation Act 1 – 2012–132 | 5 316 | – |
| Appropriation Act 1 – 2012–13 – Cash | 1 689 | – |
| Appropriation Act 1 – 2012–13 – Departmental Capital Budget | 4 922 | – |
| Appropriation Act 1 – 2011–12 | – | 5 862 |
| Appropriation Act 1 – 2011–12 – Cash | – | 1 535 |
| Appropriation Act 1 – 2011–12 – Departmental Capital Budget | – | 1 197 |
| Appropriation Act 1 – 2010–11 | 2 875 | 2 875 |
| Appropriation Act 1 – 2010–11 – Departmental Capital Budget | – | 1 893 |
| Appropriation Act 3 – 2009–10 | – | 503 |
| Appropriation Act 2 – Equity Injection – 2012–13 | 270 | – |
| Appropriation Act 2 – Equity Injection – 2011–12 | 370 | 370 |
| Appropriation Act 2 – Equity Injection – 2010–11 | 614 | 1 655 |
| Appropriation Act 2 – Equity Injection – 2009–101 | 400 | 1 917 |
| Appropriation Act 2 – Equity Injection – 2008–09 | – | 639 |
| Total | 16 456 | 18 446 |
| Authority | Type | Purpose | Appropriation applied | |
|---|---|---|---|---|
| 2013 $’000 |
2012 $’000 |
|||
| Commonwealth Electoral Act 1918 (Administered) | Unlimited Amount | Election Public Funding | – | – |
| Financial Management and Accountability Act 1997 – s.28 Refund of Receipts | Refund | Refund of Non Voter Fines | – | 3 |
| Commonwealth Electoral Act 1918 (Departmental) | Unlimited Amount | Electoral Roll Review | 9 000 | 9 000 |
| Total | 9 000 | 9 003 | ||
The AEC has become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.
The AEC has an account for Services for Other Entities and Trust Moneys (SOETM) Special Account. This account had no movement in 2013 (2012: no movement).
Appropriation: Financial Management and Accountability Act 1997; section 21.
Establishing Instrument: Financial Management and Accountability Act 1997; section 20.
Purpose: for the expenditure of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth, for example, candidate deposits.
| 2013 $ |
2012 $ |
|
|---|---|---|
| Compensation and Debt Relief – Departmental | ||
| No ‘Act of Grace payments’ were expended during the reporting period (2012: No expenses). | – | – |
| No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: No waivers). | – | – |
| No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: No payments). | – | – |
| No ex-gratia payments were provided for during the reporting period (2012: No payments). | – | – |
| No payment was made under Paragraph 3 of Appendix C (Handling Monetary Claims) of the Legal Services Direction 2005, issued under section 55ZF of the Judiciary Act 1903 during the reporting period (2012: $15 000). | – | 15 000 |
| 1 payment was made under section 73 (1) of the Public Service Act 1999 as a payment in special circumstances. (2012: No payments). | 6 672 | – |
| Compensation and Debt Relief – Administered | ||
| No payments were made during the reporting period (2012: nil). |
Financial assets held in trust are also disclosed in Note 22: Services for Other Entities and Trust Moneys (SOETM) Special Account. There was no opening balance, movements during the year or balance at year-end in the account (2012: Nil).
In determining the full cost of outputs, the AEC charges direct costs to programs and allocates overheads between programs on the basis of full time equivalent staff.
The AEC’s resourcing consumption varies considerably from year to year and between programs depending on the phase of the electoral cycle.
| Program 1 | Program 2 | Program 3 | Total Outcome 1 | |||||
|---|---|---|---|---|---|---|---|---|
| 2013 $’000 |
2012 $’000 |
2013 $’000 |
2012 $’000 |
2013 $’000 |
2012 $’000 |
2013 $’000 |
2012 $’000 |
|
| Departmental | ||||||||
| Expenses | 60 458 | 61 021 | 55 424 | 53 516 | 19 236 | 18 376 | 135 118 | 132 913 |
| Own-source income | (12 321) | (11 518) | (6 382) | (6 046) | (152) | 2 | (18 855) | (17 562) |
| Administered | ||||||||
| Expenses | – | – | – | – | – | – | – | – |
| Own-source income | – | – | (32) | (41) | – | – | (32) | (41) |
| Net cost of outcome delivery | 48 137 | 49 503 | 49 010 | 47 429 | 19 084 | 18 378 | 116 231 | 115 310 |
Outcome 1 is described in Note 1.1
The net costs shown above include intra-government costs.
The AEC has one outcome so these figures appear in the Statement of Comprehensive Income and Balance Sheet.
The AEC has one outcome so these figures appear in Note 15: Administered Expenses, Note 16: Administered Income and Note 17: Administered – Assets and Liabilities.
| 2013 $’000 |
2012 $’000 |
|
|---|---|---|
| Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations1 | 6 269 | (2 917) |
| Plus: depreciation/amortisation expenses previously funded through revenue appropriation | (8 404) | (6 234) |
| Total comprehensive loss – as per the Statement of Comprehensive Income | (2 135) | (9 151) |