Financial statements

Independent Auditor’s Report

To the Attorney-General

Opinion

In my opinion, the financial statements of the Australian Financial Security Authority for the year ended 30 June 2018:

  1. comply with Australian Accounting Standards – Reduced Disclosure Requirements and the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and
  2. present fairly the financial position of the Australian Financial Security Authority as at 30 June 2018 and its financial performance and cash flows for the year then ended.

The financial statements of the Australian Financial Security Authority, which I have audited, comprise the following statements as at 30 June 2018 and for the year then ended:

  • Statement by the Accountable Authority and Chief Finance Officer;
  • Statement of Comprehensive Income;
  • Statement of Financial Position;
  • Statement of Changes in Equity;
  • Cash Flow Statement;
  • Administered Schedule of Comprehensive Income;
  • Administered Schedule of Assets and Liabilities;
  • Administered Reconciliation Schedule;
  • Administered Cash Flow Statement; and
  • Notes to the financial statements, comprising an Overview, Summary of Significant Accounting Policies and other explanatory information.

Basis for Opinion

I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Australian Financial Security Authority in accordance with the relevant ethical requirements for financial statement audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Accountable Authority’s Responsibility for the Financial Statements

As the Accountable Authority of the Australian Financial Security Authority, the Chief Executive and Inspector-General in Bankruptcy is responsible under the Public Governance, Performance and Accountability Act 2013 for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards – Reduced Disclosure Requirements and the rules made under that Act. The Accountable Authority is also responsible for such internal control as the Chief Executive and Inspector-General in Bankruptcy determines is necessary to enable the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Chief Executive and Inspector-General in Bankruptcy is responsible for assessing the Australian Financial Security Authority’s ability to continue as a going concern, taking into account whether the entity’s operations will cease as a result of an administrative restructure or for any other reason. The Chief Executive and Inspector-General in Bankruptcy is also responsible for disclosing matters related to going concern as applicable and using the going concern basis of accounting unless the assessment indicates that it is not appropriate.

Auditor’s Responsibilities for the Audit of the Financial Statements

My objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian National Audit Office Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

As part of an audit in accordance with the Australian National Audit Office Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also:

  • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
  • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control;
  • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority;
  • conclude on the appropriateness of the Accountable Authority’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern; and
  • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Australian National Audit Office

Bola Oyetunji
Senior Executive Director
Delegate of the Auditor-General
Canberra

25 September 2018

Statement by the Accountable Authority and Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2018 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Financial Security Authority will be able to pay its debts as and when they fall due.

Signed
Hamish McCormick
Accountable Authority
25 September 2018

Signed
Joanna Stone
Chief Finance Officer
25 September 2018

Statement of Comprehensive Income for the period ended 30 June 2018

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. The surplus variance mainly relates to higher than forecast Personal Properties and Securities Register (‘PPSR’) revenue due to increased volumes for PPSR searches and registrations and lower than budgeted expenditure. The budget variance relating to depreciation and amortisation reflects the outcomes of an independent review on PPSR system recommending a revised approach to system enhancement and replacement resulting in lower depreciation and amortisation.

Statement of Financial Position as at 30 June 2018

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. The budget variance for financial assets relates to higher than forecast appropriation receivables due to delayed expenditure on PPSR redevelopment and accumulated cost recovery operating funds. Delays in purchasing and systems development are also reflected in the lower than forecast balances of non-financial assets for property, plant & equipment and intangibles. The budget variance for other payables reflects the recognition of a new lease incentive liability. The budget variance for contributed equity reflects the transfer of the PPSR accumulated reserve surplus funds to the government.

Statement of Changes in Equity for the period ended 30 June 2018

Accounting Policy

Returns of Equity

The Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 requires that distributions to owners be debited to contributed equity unless it is in the nature of a dividend.

Other Distributions To Owners

AFSA relinquished control of PPSR accumulated operating reserve surplus funds to the government during the year as outlined in AFSA’s PPSR cost recovery implementation statement (refer to note 5.3).

Departmental Capital Budget

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. The surplus variance mainly relates to higher than forecast Personal Properties and Securities Register (‘PPSR’) revenue due to increased volumes for PPSR searches and registrations and lower than budgeted expenditure.

The budget variance for distributions to owners reflects the return of the PPSR accumulated operating reserve surplus.

Cash Flow Statement for the period ended 30 June 2018

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section.

Administered Schedule of Comprehensive Income for the period ended 30 June 2018

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. The budget variance for write down and impairment of assets relates to Pecuniary Penalty Orders (PPOs) which will vary from year to year as they are based on the individual circumstances of each matter. Payments made through Special Accounts budget variance relates to proceeds of crime expenditure which is not within the control of AFSA and it is therefore not possible to predict with certainty. Charges variance is a result of higher than forecast gross asset realisations by trustees. The budget variance relating to fees and fines is difficult to forecast as it includes proceeds of crime related revenue. The budget variance for interest relates to changes made by the Department of Finance in September 2017 whereby they now earn the interest on the Confiscated Assets Special Account and Confiscated Assets Account balances that had previously been earned and forwarded on by AFSA.

Administered Schedule of Assets and Liabilities as at 30 June 2018

Budget Variances Commentary

The policy for explanation of major budget variances is included in the Overview section. Cash and cash equivalents is higher than budget forecast due to the unpredictable nature of proceeds of crime cash movements. The taxation receivables budget variance relates to higher than forecast gross asset realisations by trustees from lodgements due on 6 August 2018. The lower than budgeted other receivables is a result of highly variable proceeds of crime matters activities which makes it difficult to forecast revenues and proceeds of crime accruals. Other payables is lower than budget forecast due to changes in the interest earning arrangements for the special accounts maintained by AFSA.

Administered Reconciliation Schedule as at 30 June 2018

Accounting Policy

Administered Cash Transfers to and from the Official Public Account

Revenue collected by AFSA for use by the Government rather than the entity is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the entity on behalf of the Government and reported as such in the schedule of administered cash flows and administered reconciliation schedule.

Administered Cash Flow Statement for the period ended 30 June 2018

AFSA does not have any administered cash flows for investing or financing activities.

The above statement should be read in conjunction with the accompanying notes.

Overview

Objectives of Australian Financial Security Authority

Australian Financial Security Authority (AFSA) is an Australian Government not for profit entity and operates on a cost recovered basis. AFSA is an executive agency with the objective of facilitating improved and equitable financial outcomes for consumers, business and the community through excellence in service delivery.

For the financial year ended 30 June 2018, AFSA was structured to meet the following outcome:

Outcome 1: Maintain confidence in Australia’s personal insolvency and personal property securities systems through delivering fair, efficient and effective trustee and registry services, and risk-based regulation.

AFSA operates two programs to achieve this outcome – Personal Insolvency and Trustee Services and Operation of a National Register of Security Interests in Personal Property.

The continued existence of AFSA in its present form and with its present programs is dependent on Government policy.

AFSA’s activities contributing towards this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by AFSA in its own right. Administered activities involve the management or oversight by AFSA on behalf of the Government of items controlled or incurred by Government. AFSA’s departmental and administered activities include:

Regulation and enforcement

  • regulating personal insolvency practitioners
  • investigating alleged Bankruptcy Act 1966 and Personal Property Securities Act 2009 (PPS Act) offences and, where appropriate, referring for prosecution.

Insolvency and trustee services

  • acting on behalf of the Official Trustee (OT) for personal insolvency administrations
  • acting as trustee pursuant to court orders, particularly under the proceeds of crime and customs legislation
  • acting as special trustee for government
  • providing practical information about options to deal with unmanageable debt
  • preserving the security and integrity of a large volume of personal insolvency records through the operation of a national register.

Personal property securities

  • making administrative decisions to resolve disputes between secured parties and grantors
  • exercising discretion in response to applications made under the PPS Act
  • providing sector-specific information to assist users to effectively use the Personal Properties Securities Register
  • preserving the security and integrity of a large volume of economically significant registration data
  • Operation of an online register of security interests in personal property.

The Basis of Preparation

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

The financial statements and notes have been prepared in accordance with:

  • Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) for reporting periods ending on or after 1 July 2015; and
  • Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements 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 are 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.

Significant Accounting Judgements and Estimates

Significant accounting judgements and estimates are used for impairment assessment on proceeds of crime related receivables. There is risk that material adjustments to carrying amounts of assets may occur in future accounting periods in the event that these judgements and estimates change.

No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

New Australian Accounting Standards

Adoption of new Australian Accounting Standard requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. No new, revised or amended Standards or Interpretation were issued prior to the signing of the statement by the Chief Executive and Chief Finance Officer, that were applicable to the current reporting period and had a material effect on the AFSA’s financial statements.

Future Australian Accounting Standard Requirements

AASB 16 Leases – This new standard is effective from 2019-20 and requires that most leases be recognised as lease liabilities and right-of-use assets on the Statement of Financial Position. The new standard will have a material impact on the recognition of AFSA’s assets and liabilities relating to property leases.

Taxation

AFSA is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST).

Reporting of Administered Activities

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.

Trustee Roles

Official Receiver

Courts occasionally make orders which require the Official Receiver (OR) to take control of and administer real or personal property in accordance with orders, such as under the Child Support Assessment Act 1989.

Details of monetary and non-monetary assets held in trust are reported at Note 8.1.

Official Trustee

The OT acts as trustee for assets vested in the Commonwealth under the Bankruptcy Act 1966, Customs Act 1901 and Proceeds of Crime Act (1987) and Proceeds of Crime Act (2002) legislation (forfeited and restrained matters).

Details of monetary and non-monetary assets held in trust are reported at Note 8.1.

Events After the Reporting Period

There are no significant events that occurred after balance date that warrant disclosure, or must be brought to account in the financial statements.

Breach of Section 83 of the Constitution

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law.

AFSA annually completes a risk assessment of payments made from special appropriations, including special accounts, long service leave and goods and services tax to identify if there are any matters upon which to report. AFSA reviews of special appropriations, special accounts and goods and services tax transactions in 2017-18 did not identify any breaches of statutory conditions.

AFSA engaged a third party to undertake a review of long service leave transactions in the 2017-18 year. The review did not identify any breaches of statutory conditions.

Explanation of major budget variances

AASB 1055: Budgetary Reporting requires explanations of major variances between the original budget as presented in the 2017-18 PBS. The variance commentary that appears in face statements should be read in the context of the following:

  1. It should be noted that the original budget was prepared before AFSA’s 2016-17 final results were known. As a consequence, the opening balance of the Statement of Financial Position needed to be estimated and in some cases variances between the 2017-18 final results and budget estimates can be at least in part attributed to unanticipated movement in the prior year period figures. Variances attributable to factors which would not reasonably have been identifiable at the time of the budget preparation, such as revaluation or impairment of assets or reclassifications of asset reporting categories have not been included as part of the analysis.
  2. AFSA considers that major variances are those greater than 10% of the original estimate. Variances below this threshold are not included unless considered significant by their nature. Variances relating to cash flows are a result of the factors detailed under expenses, own source income, assets or liabilities. Unless otherwise individually significant or unusual, no additional commentary has been included.
  3. The Budget is not audited.

1. Departmental Financial Performance

This section analyses the financial performance of the Australian Financial Security Authority for the year ended 30 June 2018.

1.1 Expenses

Note 1.1A: Employee Benefits

Accounting Policy

Accounting policies for employee related expenses are contained in the People and Relationships section.

Note 1.1B: Suppliers

Leasing Commitments

Nature of lease General description of leasing arrangement
Lease for office accommodation

Some lease payments are subject to regular increases in accordance with rent reviews; others are subject to pre-determined percentage increases.

For some office accommodation leases, the initial periods are still current with the majority having an option to renew for up to 5 years at AFSA’s discretion, following a once-off adjustment of rentals to current market levels.

Agreements for the provision of copiers to site offices

No contingent rentals exist.

There are no renewal or purchase options available to AFSA.

Accounting Policy

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

Note 1.1C: Write-Down and Impairment of Assets

1.2 Own-Source Revenue and Gains

Own-Source Revenue

Note 1.2A: Rendering of Services

Accounting Policy

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:

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

Note 1.2B: Other Revenue

Accounting Policy

Resources received free of charge are recognised as revenue when and only when a fair value can be reliably determined and the services would have been purchased if they had not been donated. The use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

Gains

Note 1.2C: Reversals of Write-Downs and Impairment

Note 1.2D: Other Gains

Note 1.2E: Revenue from Government

Accounting Policy

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when AFSA 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.

2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the Australian Financial Security Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2.1 Administered – Expenses

Note 2.1A: Write-Down and Impairment of Assets

Note 2.1B: Payments Made Through Special Accounts

Accounting Policy

Section 297 of the Proceeds of Crime Act 2002 specifies permitted payments from the Confiscated Assets Account maintained by AFSA. Program payments are made pursuant to written Ministerial orders and are used for crime prevention or law enforcement initiatives, or for measures related to diversion from illegal drug use including treatment. Equitable sharing payments are made to other states or territories (including foreign countries) from proceeds of unlawful activities in recognition of their contributions to recovery, investigation or prosecution.

2.2 Administered – Income

Revenue

Taxation Revenue

Note 2.2A: Charges

Accounting Policy

Charges revenue relates to levies on asset realisations and interest paid by the Official Trustee and Registered Practitioners. Registered Practitioners were required to lodge Annual Estate Returns by 6 August 2018 for the 2017-18 financial year. AFSA recognises charges revenue based on amounts paid by the Official Trustee and Annual Estate Return lodgements.

Non-Taxation Revenue

Note 2.2B: Fees and Fines

Accounting Policy
Administered Revenue

All administered revenues are revenues that relate to ordinary activities performed by AFSA 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.

Fees and Fines

Fees for activities performed by AFSA under the Bankruptcy Act 1966 and Proceeds of Crime legislation are outlined in the Cost Recovery Impact Statements referred to in note 5.3.

PPO’s and Forfeiture Orders are statutory revenues recorded and collected by AFSA on behalf of the Commonwealth.

Note 2.2C: Interest

Accounting Policy

In September 2017, the Department of Finance commenced daily sweeping of the balances in the Confiscated Assets Account and Confiscated Assets Special Account which means that they now earn any interest related to these balances.

3. Departmental Financial Position

This section analyses the Australian Financial Security Authority’s assets used to conduct its operations and the operating liabilities incurred as a result.

Employee related information is disclosed in the People and Relationships section.

3.1 Financial Assets

Note 3.1A: Cash and Cash Equivalents

Note 3.1B: Trade and Other Receivables

Credit terms for goods and services were within 30 days (2017: 30 days).

Reconciliation of the Impairment Allowance – Trade and other receivables

Accounting Policy

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

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

Appropriations receivable are recognised at their nominal amounts.

3.2 Non-Financial Assets

Note 3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

Reconciliation of the opening and closing balances of property, plant and equipment and intangibles for 2018

  1. The carrying amount of buildings included $3.41 million leasehold improvements and $0.51 million make good assets.
  2. Land, buildings and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.
  3. The carrying amount of computer software included $2.30 million purchased software and $10.37 million internally developed software.

There were no indicators of impairment found for property, plant and equipment and intangible assets.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets

Capital commitments for leasehold improvements, property, plant, equipment and intangibles was $5.25 million (2017: $0.34million). Contractual payments are payable within the next 1 year and capital commitments primarily relate to infrastructure refresh.

Accounting Policy
Acquisition of Assets

Assets are recorded at cost of acquisition except as stated elsewhere. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at 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, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, 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 dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to “make-good‟ provisions in property leases taken up by AFSA where there exists an obligation to restore the property to its original condition. These costs are included in the value of AFSA’s leasehold improvements with a corresponding provision for the “make-good‟ recognised.

Revaluations

Fair values for each class of asset are determined as shown below:

Asset Class Fair value measured at:
Leasehold improvements Depreciated replacement cost
Leasehold improvements – make good Depreciated replacement cost
Property, plant and equipment Market approach
Depreciated replacement cost
Heritage and cultural Market approach

Following initial recognition at cost, leasehold improvements and property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluations increment is credited to equity under the heading of asset revaluation surplus except to the extent that it reverses 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 in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class. An independent valuation was undertaken on all asset classes as at 30 June 2016 by Australian Valuation Solutions. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

AFSA arranged for a materiality review by an independent valuer which confirmed that there was no material difference between carrying amounts and asset fair values for all fixed asset classes as at 30 June 2018.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight line-method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

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.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

>

  2018 2017
Leasehold improvements Lease term Lease term
Property, plant and equipment 3 to 10 years 3 to 10 years
Impairment

All assets were assessed for impairment at 30 June 2018. 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 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 AFSA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant, and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Heritage and Cultural

Heritage and cultural items include 15 paintings by indigenous artists. Heritage and cultural assets are stored and managed in ways to preserve their heritage and cultural value over time.

Intangibles

AFSA’s intangibles comprise internally developed software, externally purchased software and right to use assets. 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 AFSA’s software is 1 to 10 years (2017: 1 to 10 years).

All software assets were assessed for indications of impairment as at 30 June 2018 including assets under construction.

The Right to Use intangible asset recognises a lease incentive for the fit-out of new office premises and the associated costs. Under these arrangements, the lessors retained ownership of the assets however AFSA will receive benefit from the use of the assets for the lease term.

Note 3.2B: Prepayments

No indicators of impairment were found for prepayments.

3.3 Payables

Note 3.3A: Suppliers

Settlement terms are 30 days.

Note 3.3B: Other Payables

Accounting Policy

Salaries and wages and superannuation

The liability for salaries and wages and superannuation represents accruals at 30 June 2018.

Prepayments received

Prepayment received represents the revenue received in advance for rendering of future services.

Lease incentive

Lease incentive liability is associated with right to use intangible assets for leasing of premises.

3.4 Other Provisions

3.4: Other Provisions

AFSA currently has 4 agreements (2017: 6 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. AFSA has made provision to reflect the present value of the ‘make good’ obligations.

4. Assets and Liabilities Administered on Behalf of Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result the Australian Financial Security Authority does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

4.1 Administered – Financial Assets

Note 4.1A: Cash and Cash Equivalents

Note 4.1B: Taxation Receivables

Note 4.1C: Other Receivables

Reconciliation of the Impairment Allowance

Accounting Policy

Other receivables are reviewed and assessed for impairment annually.

Pecuniary Penalty Orders

The value of PPOs due and owing to the Commonwealth at 30 June 2018 are disclosed as administered assets. AFSA is responsible for realisation of associated assets and debt management. Decisions on debt recovery action are the responsibility of Commonwealth Director of Public Prosecutions (CDPP) and the Australian Federal Police (AFP).

Official Trustee Fees

Official Trustee fees receivable are calculated with reference to funds balances in the Official Trustee body corporate accounts at financial year end.

Accounting Judgements and Estimates
Pecuniary Penalty Orders

Collectability is reviewed at the end of the reporting period with reference to the status of recovery action by CDPP and AFP. Impairment allowances are made when collectability of the debt is judged to be less, rather than more, likely based on availability of assets for realisation and application to the debt, as then confirmed with the CDPP or AFP respectively. A bad debt is recognised when no further recovery action will be undertaken by CDPP or AFP and they inform AFSA that they are closing their files.

Forfeiture Orders

Forfeiture Order receivables are based on an assessment of the cash balances held in the forfeited bank account at financial year end (see Note 8.1) where amounts are identified as considered likely to be paid to the Confiscated Assets Account.

5. Funding

This section identifies the Australian Financial Security Authority funding structure.

5.1 Appropriations

Note 5.1A: Annual Appropriations (‘Recoverable GST Exclusive’)

Annual Appropriations for 2018

Notes:

  1. In 2017-18, $169,000 funding relating to the 2017-18 Appropriation Act 1 has been withheld under Section 51 direction. In accordance with Section 51 direction, $35,382,688 has been withheld.
  2. In 2017-18, there were no appropriations that have been quarantined.
  3. 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. The agency did not have any administered capital budgets.

Annual Appropriations for 2017

Notes:

  1. In 2016-17, $7,131 funding relating to the 2016-17 Appropriation Act 1 has been withheld under Section 51 direction. In accordance with Section 51 direction, $2,421,000 has been withheld.
  2. In 2016-17, there were no appropriations that have been quarantined.
  3. 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. The agency did not have any administered capital budgets.

Note 5.1B: Unspent Departmental Annual Appropriations (‘Recoverable GST Exclusive’)

AFSA did not receive any administered annual appropriations (2017: Nil).

Note 5.1C: Special Appropriations (‘Recoverable GST Exclusive’)

5.2 Special Accounts

  1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Bankruptcy Act 1966, section 20G

Purpose: For handling interest derived from the investment of money in the Common Investment Fund in accordance with sections 20H and 20J of the Bankruptcy Act 1966.

  1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Proceeds of Crime Act 1987, section 34A

Purpose: To receive and deal with proceeds of confiscated assets in accordance with sections 34B -34E of the Proceeds of Crime Act 1987.

  1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80.

Establishing Instrument: Proceeds of Crime Act 2002, section 295

Purpose: The purpose of the account is to receive and deal with proceeds of confiscated assets in accordance with sections 296 – 298 of the Proceeds of Crime Act 2002.

  1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78.

Establishing Instrument: Financial Management and Accountability Act 1997, section 20, Financial Minister determination 2012/12.

Purpose: For the expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth.

5.3 Regulatory Charging Summary

Regulatory Charging and Own Source Revenue

Departmental expenses are funded through Annual Appropriations and Own source revenue. In turn these resources are utilised to generate departmental and administered revenue.

The activities which AFSA performs regulatory charging for are:

Insolvency Activities

Fees and charges relate to the administration of the Bankruptcy Act 1966 including registry, estate administration, regulation and enforcement. It also includes charges for administration of matters under Proceeds of Crime legislation.

Documentation (the Cost Recovery Impact Statement for Insolvency activities) is available on the AFSA website.

Personal Property Security Register (PPSR) Activities

Fees and charges related to the operation of the PPSR relate to the registration of security interests, and searches of the register by stakeholders.

Documentation (the Cost Recovery Impact Statement for PPSR activities) is available on the PPSR website.

6. People and Relationships

This section describes a range of employment and post-employment benefits provided to our people and our relationships with other key people.

6.1 Employee Provisions

6.1: Employee Provisions

Accounting Policy

Liabilities for ‘short term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of balance date are measured at their nominal amounts.

Leave

The liability for employee benefits includes provision for annual leave and long service 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 AFSA’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 2018. Actuarial reviews of employee provisions are undertaken every 3 years. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy

Provision has been made for separations and redundancy benefit payments. AFSA 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.

Superannuation

Staff of AFSA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other superannuation funds of the employee’s choice. 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’s administered schedules and notes.

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

6.2 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. The entity has determined the key management personnel to be Portfolio Minister, the Chief Executive, Independent Member and Senior Executive Officers (‘SES’).

Key management personnel remuneration is reported in the table below:

The total number of key management personnel that are included in the above table are 12 individuals (2017: 11 individuals). There was no increase in substantive SES positions during the year.

  1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister’s remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.
  2. The Independent Member is remunerated under a fee for service arrangement for membership on various management boards.

6.3 Related Party Disclosures

Related party relationships:

The entity is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel and other Australian Government entities.

Transactions with related parties:

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

There are no significant transactions with related parties (2017: Nil). Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.

7. Managing Uncertainties

This section analyses how the Australian Financial Security Authority manages financial risks within its operating environment.

7.1 Contingent Assets and Liabilities

Note 7.1A: Contingent Liabilities

Quantifiable Contingencies

The Schedule of Contingencies contains $Nil in contingent liabilities (2017: $45,000) for claims in respect of matters with expected cost orders against AFSA. This is an estimate based on information available to AFSA at year end.

Unquantifiable Contingencies

AFSA could be liable for legal costs, damages or other court awards against the Official Receiver, Official Trustee or Inspector-General for legal actions initiated with respect to their administration or regulation of the personal insolvency system in Australia, particularly under the Bankruptcy Act 1966.

AFSA advances moneys to the Official Trustee to ensure it can pay expenses incurred in performing its trustee duties when there are no funds in bankrupt estates or proceeds of crime matters. If funds eventually come into the estate or matter, then the Official Trustee is reimbursed.

At 30 June 2018, AFSA was involved in extremely complex legal proceedings with a number of parties involving the administration of and possible claims against forfeited assets under Proceeds of Crime legislation. It is not possible to reliably estimate the total of any eventual amounts that may be received or paid in relation to these claims and subsequent reimbursement of costs to AFSA. One significant proceeds of crime matter is currently subject to legal proceedings and depending on the outcome there may be a contingent liability that is not currently quantifiable.

Accounting Policy

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset 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.

Note 7.1B: Administered Contingent Assets and Liabilities

Quantifiable Administered Contingencies

AFSA had no quantifiable contingencies at 30 June 2018 (2017: Nil).

Unquantifiable Administered Contingencies

AFSA could be liable for legal costs, damages or other court awards against the Official Trustee for legal actions initiated with respect to the Official Trustee’s role under the Bankruptcy Act, 1966, Proceeds of Crime Act 1987 and the Proceeds of Crime Act 2002.

At 30 June 2018, AFSA was involved in extremely complex legal proceedings with a number of parties involving the administration of and possible claims against forfeited proceeds of crime assets. It is not possible to reliably estimate the total of any eventual amounts that may be received or paid in relation to these claims. Of particular note is a significant proceeds of crime matter currently subject to legal proceedings and depending on the outcome there may be a contingent liability that is not currently quantifiable.

7.2 Financial Instruments

Note 7.2A: Categories of Financial Instruments

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

Accounting Policy
Financial Assets

AFSA classifies its financial assets as loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

Impairment of Financial Assets

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

Financial assets held at cost – if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

Financial Liabilities

Financial liabilities are classified as either financial liabilities “at fair value through profit or loss” or other financial liabilities. Financial liabilities are recognised and derecognised upon “trade date”.

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

7.3 Administered – Financial Instruments

Note 7.3A: Categories of Financial Instruments

Note 7.3B: Net Gains or Losses on Financial Assets

7.4 Fair Value Measurement

The following table provides an analysis of assets that are measured at fair value. The remaining assets and liabilities disclosed in the statement of financial position do not apply the fair value hierarchy.

Accounting Policy

AFSA engaged the service of Jones Lang LaSalle Public Sector Valuations Pty Ltd (JLL) to conduct an asset materiality review for all non-financial assets at 30 June 2018. An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value as at the reporting date. Comprehensive valuations carried out at least once every three year with the previous valuation review conducted at 30 June 2016. JLL has provided written assurance to AFSA that the models developed are in compliance with AASB 13.

The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows:

Physical Depreciation and Obsolescence – Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the Depreciated Replacement Cost approach. Under the Depreciated Replacement Cost approach the estimated cost to replace the asset is calculated and then adjusted to take into physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all Leasehold Improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease.

AFSA’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Note 7.4A: Fair Value Measurements

  1. No non-financial assets were measured at fair value on a non-recurring basis as at 30 June 2018 (2017: Nil).
  2. AFSA’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all non-financial assets is considered their highest and best use.

8. Other Information

8.1 Assets Held in Trust

AFSA fulfils the roles of the Official Trustee and Official Receivers under the Bankruptcy Act 1966, the Proceeds of Crime Act 1989 and the Proceeds of Crime Act 2002, and fulfils a trustee role under other legislation pursuant to court orders. As a result, it holds or controls assets in a trustee capacity. The following assets were held or controlled as at 30 June:

Held under Child Support Assessment Act 1989

Monetary Assets – Services for Other Entities and Trust Money’s Special Account

The Official Receiver holds monies in trust on behalf of individuals pursuant to Court Orders made under Child Support Assessment Act 1989.

Non-monetary assets

The Official Receiver also holds non-monetary assets in trust on behalf of individuals pursuant to Court Orders made under Child Support Assessment Act 1989. The assets are comprise of real estate and are not included in AFSA’s financial statements.

Held under Bankruptcy Act 1966

Monetary Assets – Common Investment Fund

The Official Trustee holds monies in trust on behalf of bankrupt estates in the Common Investment Fund. These monies were not available for other purposes and are not included in AFSA’s financial statements.

Monetary Assets – Official Trustee Body Corporate (Estate Administration) Account

The Official Trustee holds funds for both the Commonwealth and bankrupt estates in the Official Trustee Body Corporate (Estate Administration) bank account. Funds held on behalf of the Commonwealth include Official Trustee fees which are reflected in Note 2.2B in the financial statements.

Non-monetary assets

The Official Trustee also holds non-monetary assets in trust on behalf of bankrupt estates that are not included in AFSA’s financial statements. These represent assets that have vested in or have come under the control of the Official Trustee, or have been identified as requiring further action and reactivated by the Official Trustee, that the Official Trustee has not yet dealt with. The assets comprise of real estate, shares & investments, motor vehicles, business stock and equipment, tools of trade, marine vessels, jewellery, collectibles, antiques, debtors, deceased estate interests and other assets.

Held under Proceeds of Crime Act 1987, Proceeds of Crime Act 2002 and equivalent legislation* (Forfeited)

Monetary Assets – Official Trustee Proceeds of Crime Forfeited Account

The Official Trustee holds monies in trust relating to assets that have been forfeited to the Commonwealth. Once the matters have been finalised funds are deposited into the Confiscated Assets Account (‘CAA’) or the Confiscated Assets Special Account (‘CASA’). The CAA and CASA are reported in Note 5.2 in the financial statements.

Non-monetary assets

The Official Trustee holds non-monetary assets in trust on behalf of the Commonwealth that are not included in AFSA’s financial statements. The assets comprise of real estate, interests in leases, aircraft, motor vehicles, marine vessels, jewellery, antiques and collectibles, cryptocurrency and other assets.

Held under Proceeds of Crime Act 1987, Proceeds of Crime Act 2002 and equivalent legislation* (Restrained)

Monetary Assets – Official Trustee Proceeds of Crime Restrained Accounts

The Official Trustee holds monies in trust (AUD, EUR and USD) on behalf of the third parties. Under the Proceeds of Crime Act 2002, these restrained monies are held in trust by the Official Trustee on behalf of defendants, are not available for other purposes and are not included in AFSA’s financial statements.

Non-monetary assets

The Official Trustee holds non-monetary assets in trust on behalf of third parties. The assets comprise of real estate, interests in leases, shares and superannuation holdings, motor vehicles, marine vessels, jewellery, antiques and collectibles and other assets and are not included in AFSA’s financial statements.

Held under Proceeds of Crime Act 1987, Proceeds of Crime Act 2002 and equivalent legislation*

Monetary Assets – Official Trustee Body Corporate (Proceeds of Crime) Account

The Official Trustee holds funds for both the Commonwealth and Proceeds of Crime and equivalent legislation matters in the Official Trustee Body Corporate (Proceeds of Crime) bank account. Funds held on behalf of the Commonwealth include Official Trustee fees which are reflected in Note 2.2B in the financial statements.

Non-monetary assets

The Official Trustee holds non-monetary assets in trust on behalf of Proceeds of Crime matters. The assets comprise of receivables.

* Equivalent legislation includes the Customs Act 1901 and the Mutual Assistance in Criminal Matters Act 1987, under which the Official Trustee has powers to deal with and dispose of property pursuant to orders.

Abbreviations and acronyms

A glossary of terms related to personal insolvency and trustee services, regulation and enforcement, and personal property securities is available on our website.

ACIC Australian Criminal Intelligence Commission
AFP Australian Federal Police
AFSA Australian Financial Security Authority
APS Australian Public Service
B2G business-to-government
FOI Act Freedom of Information Act 1982
GST goods and services tax
ICT information and communications technology
ILRA Insolvency Law Reform Act 2016
NAIDOC National Aborigines and Islanders Day Observance Committee
NPII National Personal Insolvency Index
PGPA Act Public Governance, Performance and Accountability Act 2013
PGPA Rule Public Governance, Performance and Accountability Rule 2014
PPS Act Personal Property Securities Act 2009
PPSR Personal Property Securities Register
SES Senior Executive Service
SME small to medium-sized enterprise
WHS work health and safety
WHS Act Work Health and Safety Act 2011

List of requirements

Table 11 contains a list of annual report requirements – prepared in accordance with paragraph 17AJ(d) of the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) – and page references for AFSA’s compliance with these requirements.

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Table 11: List of annual report requirements
Requirement Page
Letter of transmittal iii
Table of contents iv
Index 129–134
List of abbreviations and acronyms 124
List of requirements 125
Contact officer ii
Entity’s website address ii
Electronic address of report ii
Review by accountable authority
Chief Executive’s review 2
Overview of the entity
Role and functions 12–15
Organisational structure 16
Outcomes and programs 19
Purposes, as included in corporate plan 23
Portfolio structure 12
Where outcomes and programs differ from the Portfolio Budget Statements, Portfolio Additional Estimates Statements or other portfolio statements, details of variation and reasons for change n.a.
Report on performance
Annual performance statements
Annual performance statement 22–46
Report on financial performance
Discussion and analysis of financial performance 47
Table summarising total resources and total payments 48–49
Information on any significant changes in financial results during or after the current or previous reporting period 47
Management and accountability
Corporate governance
Information on compliance with section 10 of the PGPA Rule (fraud systems) 62
Certification by the accountable authority that fraud risk assessments and fraud control plans have been prepared 62
Certification by the accountable authority that appropriate mechanisms for preventing, detecting incidents of, investigating or otherwise dealing with, and recording or reporting fraud that meet the specific needs of the entity are in place iii
Certification by the accountable authority that all reasonable measures have been taken to deal appropriately with fraud relating to the entity iii
Outline of structures and processes in place for the entity to implement principles and objectives of corporate governance 58–62
Statement of significant issues reported to minister that relate to noncompliance with the finance law and action taken to remedy noncompliance 62
External scrutiny
Significant developments in external scrutiny 63
Judicial decisions and decisions of administrative tribunals and by the Australian Information Commissioner 63
Reports by the Auditor-General, a parliamentary committee or the Commonwealth Ombudsman 63
Information on any capability reviews on the entity released during the period 63
Management of human resources
Assessment of effectiveness in managing and developing employees to achieve entity objectives 63
Statistics on APS employees on an ongoing and non-ongoing basis, including:
  • staffing classification level
  • full-time employees
  • part-time employees
  • gender
  • staff location
  • employees who identify as Indigenous
  • 69
  • 69
  • 70
  • 69
  • 69–70
  • 67
Enterprise agreements, individual flexibility arrangements, Australian workplace agreements, common law contracts and determinations 68
Number of SES and non-SES employees covered by agreements 68
Salary ranges available by classification level 71
Description of non-salary benefits provided to employees 68
Number of employees at each classification level who receive performance pay 68
Aggregate amounts of performance pay at each classification level n.a.
Average amount of performance payment, and range of payments at each classification level n.a.
Aggregate amount of performance payments n.a.
Asset management
Assessment of effectiveness of asset management 71
Purchasing
Assessment of performance against the Commonwealth Procurement Rules 72
Consultants
Summary statement detailing the number of new contracts engaging consultants entered into during the year; the total actual expenditure on all new consultancy contracts entered into during the year (inclusive of GST); the number of ongoing consultancy contracts that were entered into in the previous reporting period; and the total actual expenditure in the reporting year on the ongoing consultancy contracts (inclusive of GST) 72
Statement that ‘During [reporting period], [specified number] new consultancy contracts were entered into involving total actual expenditure of $[specified million]. In addition, [specified number] ongoing consultancy contracts were active during the period involving total actual expenditure of $[specified million].’ 72
Summary of policies and procedures for selecting and engaging consultants and the main categories of purposes for which consultants were selected and engaged 72
Statement that ‘Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website.’ 72
Australian National Audit Office access clauses
Absence of provisions in contracts allowing access by the Auditor-General 73
Exempt contracts
Contracts exempted from publication on AusTender 73
Small business
Statement that ‘[Name of entity] supports small business participation in the Commonwealth Government procurement market. Small and medium-sized enterprise and small enterprise participation statistics are available on the Department of Finance’s website.’ 73
Outline of ways in which procurement practices support small and medium-sized enterprises 73
If the entity is considered by the department administered by the Finance Minister as material in nature, include mandatory statement concerning on-time payment of small businesses n.a.
Financial statements
Inclusion of annual financial statements 82–123
Other mandatory information
If the entity conducted advertising campaigns, a statement that ‘During [reporting period], [name of entity] conducted the following advertising campaigns: [name of advertising campaigns undertaken]. Further information on those advertising campaigns is available at [address of entity’s website] and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available on the Department of Finance’s website.’ 80
If the entity did not conduct advertising campaigns, a statement to that effect n.a.
Information on grants awarded by entity n.a.
Mechanisms of disability reporting, including reference to website for further information 78
Website reference to where Information Publication Scheme statement can be found 80
Correction of material errors in previous annual report n.a.

n.a. = not applicable.