1974

VICTORIA

SUPPLEMENTARY REPORT

OF THE

AUDITOR-GENERAL

FOR THE YEAR EN DED

30th JUNE, 197 4

Ordered by the Legislative Assembly to be printed, 3rd December, 19 7 4.

By A.utlwrity : C. H. RIXON, GOVERNMENT PRINTER, MELBOURNE.

A. No. 2.-8588/74.-{Plucl! $1.20]

Cancer Institute

Chicory Marketing Board

Citrus Fruit Marketing Board

Coal Mine Workers Pensions Tribunal

Country Fire Authority ..

Dandenong Valley Authority

Egg and Egg Pulp Marketing Board

Electricity Commission ..

Gas and Fuel Corporation of Victoria

Geelong Harbor Trust

Grain Elevators Board

Greyhound Racing Control Board

Home Finance Trust

Hospitals Superannuation Board

Housing Commission

Latrobe Valley Water and Sewerage Board

Local Authorities Superannuation Board

Marketing Boards

INDEX

Melbourne and Metropolitan Board of Works

Melbourne and Metropolitan Tramways Board

Melbourne Harbor Trust

Melbourne Underground Rail Loop Authority

Metropolitan Fire Brigades Board

Milk Board

Motor Accidents Board

Oats Marketing Board

Onion Marketing Board ..

Portland Harbor Trust

Public Trustee ..

Rural Finance and Settlement Commission

State Accident Insurance Office ..

State Motor Car Insurance Office

State Superannuation Board of Victoria

Tobacco Leaf Marketing Board

Totalizator Agency Board

Victorian Development Corporation

Victorian Inland Meat Authority ..

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3

REPORT OF THE AUDITOR-GENERAL OF VICTORIA

SUPPLEMENTAL TO THE REPORT OF 25th NOVEMBER, 1974, IN RELATION TO THE TREASURER'S STATEMENT OF THE FINANCES FOR THE YEAR ENDED 30TH JUNE, 1974.

As authorized by paragraph (b) of sub-section (l) of Section 47 of the Audit Act 1958, I present to the Legislative Assembly a Report on the accounts of certain of the statutory bodies which the Auditor-General is required by law to audit. With respect to the accounts of several of the public authorities, the figures furnished herein are subject to audit, but, generally, in such cases, sufficient progress has been made in the audits to establish that the figures published are substantially correct.

In my Report of 25th November, 1974, I drew attention to the fact that the final accounts of the State Accident Insurance Office, the State Motor Car Insurance Office and the Milk Board were unavailable for inclusion in that Report. The final accounts of those organizations are still unavailable at the time of preparation of this Supplementary Report. The accounts of the Housing Commission, which are customarily included in this Report, are similarly unavailable.

A funds statement is provided hereunder to assist the reader to evaluate the State's involvement in the financing of the authorities collectively. The statement also shows the other forms of finance utilized by the authorities, including funds generated internally, and the various purposes to which the funds available to the authorities from the various sources were applied.

The statement set out below has been compiled from the balance sheets and subsidiary statements of fourteen State authorities* whose accounts are included in this Report, and which were considered, on the basis of their methods of financing and operating, to be the most suitable for the purpose. The statement is presented in concise form by the use of broad heads of classification throughout, and by grouping and offsetting items of a similar nature within the scope of meaning of the broad heads used. This procedure has resulted in most of the items being shown at net figures but, it is considered, without detracting from the validity of conclusion to be drawn from the statement.

FUNDS STATEMENT.

During the accounting period of the various authorities, funds to the extent shown became available from the following sources-

I. Loans, advances and grants from the State or other State authorities .. 2. Public borrowing 3. Short-term finance, bank overdraft accommodation, sundry creditors 4. General operations, with funds so acquired retained within the undertakings ..

$ 61,546,117

141,753,181 22,683,293

137,433,022

These funds were applied to the following purposes-

I. Investment in fixed assets 2. Investment in current assets (excluding cash and short-term investments) 3. Long-term investments 4. Financing of long-term debtors 5. Financing costs of unproductive and intangible assets

363,415,613

$ . . 293,529,227

36,491,954 27,397,724

647,304 665,982

6. Increasing cash held on current account, on short-term deposit and short-term investments 4,683,422

363,415,613

Of the total funds available to the various authorities throughout the accounting period, the State provided $61,546,117 or 16·9 per cent. compared with $141,753,181 or 39·0 percent. obtained by public borrowings. Except for the relatively small amount of finance provided by means of bank overdraft or by sundry creditors, the remainder of the available funds, $137,433,022 or 37 ·8 per cent., was generated as a result of the operations of the various authorities.

• See Appendix.

4

The statement shows that the greatest part of the available funds was applied to investment in additional assets, to the extent of $293 · 5 million of fixed assets and $36 · 5 million of current assets, other than cash and short-term investments. Long-term investments, or those held for specific purposes and not for re-sale, absorbed $27·4 million and $1·3 million was applied to finance long-term debts and unproductive and intangible assets. The balance of the available funds, $4·7 million, was deposited with the banks on current account or short-term deposit, or invested on the short-term money market.

5

CANCER INSTITUTE.

The Cancer Institute is controlled by the Cancer Institute Board constituted in accordance with the provisions of the Cancer Act 1958.

Maintenance expenditure of the Institute is met substantially from moneys appropriated by Parliament under a Health Department vote. Moneys so appropriated for the year ended 30th June, 1974, amounted to $4,743,088.

Expenditure from the Institute's revenue for the past two years is set out hereunder :-

1972-73.

$

607,372 372,327

2,108,283 1,399,736

270,705

4,758,423

Nursing Services­

Wards Other

Medical, Professional and Ancillary Services Administration and Ancillary Services .. Scientific and Research Departments

The revenue for the past two years was:-

3,739,258 212,684

56,765 45,009

741,391 58,556

4,853,663

State Government Grant for Maintenance Commonwealth Phannaceutical Benefits Grant .. Commonwealth Hospital Benefits Grant Commonwealth Home Nursing Subsidy Patients' Fees Miscellaneous

1973-74.

s s

774,809 444,397

---1,219,206 2,723,416 1,780,486

326,302

6,049,410

4,743,088 250,763 61,020 44,526

836,640 70,002

6,006,039

The following abridged balance-sheets set out the financial position as at 30th June, 1973, and 1974 :-

30.6.73.

s

116,058 285,587

87,843

338,395

622,617

4,410,468 2,046,325

59,188

7,966,481

Maintenance Fund­

Cash at Bank Sundcy Debtors .. Stores on Hand ..

AssETS.

Investment of Specific Purpose Funds and Trusts

Capital Funds­

Cash at Bank Investments Building Improvements Furniture, Plant and Equipment Motor Cars

Total Assets

30.6.74.

$ $

181,631 319,198 99,510

. . 1,508,146 586,180

5,035,941 2,280,964

61,733

600,339

269,130

--- 9,472,964

. . 10,342,433

30.6.73,

$

78,355 184,791

63,655 162,687

227,409 110,986

7,138,598

7,966,481

6

LIABILITIES AND FUNDS.

Maintenance Fund­

Sundry Creditors (net) Accrued Expenditure Clearing Accounts, Salaries and Wages, &c. Balance of Fund

Specific Purpose Funds and Trusts­

Research Investigation Fund Other Funds

Capital Funds

Total Liabilities and Funds

30.6.74.

$ $

112,373 264,111

98,242 125,613

155,522 113,608

600,339

269,130 9,472,964

10,342,433

7

COAL MINE WORKERS PENSIONS TRIBUNAL.

The Tribunal controls the Coal Mine Workers Pensions Fund into which, up to 31st December, 1968, were paid annual contributions determined actuarially and collected on a specified basis from mine owners, mine workers and the Treasurer of Victoria. Since 1st January, 1969, the Treasurer of Victoria has been the sole contributor. Following an actuarial investigation in 1970, which showed that the Fund would probably be sufficient to meet its obligations, no further contribution in terms of Section 121 of the Coal Mines Act 1958 has been made by the Treasurer. However, subsequent developments have required the periodical sale of investments prior to maturity date. These forced sales have resulted in losses which may ultimately affect the Tribunal's ability to meet its pension commitments.

Contributions by the Treasurer, in terms of Section 5 of the State Coal Mines (Winding Up) Act 1968, ceased in October, 1973.

Particulars of income and expenditure for the past two years are :-

1972-73.

$

11,706

35,408

47,114

165,729

636

1,553

7,636

175,554

128,440

Treasurer-Contribution

Interest on Investments

Pensions

Refunds of Contributions

Loss on Sale of Investments

Administration

Deficit for year

INCOME.

EXPENDITURE.

At the dates shown, the accumulated funds of the Tribunal were :-

30.6. 73.

$

575,180

5,515

665

569,000

575,180

Accumulated Funds

Represented by-

Current Assets less Liabilities

Fixed Assets

Investments at cost ..

..

1973-74.

$

1,770

26,040

27,810

175,220

26,749

9,032

211,001

183,191

30.6. 74.

$

391,989

Cr. 4,676

665

396,000

391,989

8

COUNTRY FIRE AUTHORITY.

Section 86 of the Country Fire Authority Act 1958 requires an annual audit of the accounts of the Authority to be carried out by the Auditor-General. A continuous audit of the Authority's receipts and payments is carried out by a firm of chartered accountants. This audit and that conducted by my officer are, by arrangement, complementary in character.

Finance to enable the Authority to carry out its functions is provided, under the provisions of Section 76 of the Act, as to one-third, by the State from the Municipalities Assistance Fund and, as to two-thirds, rateably by Fire Insurance Companies in proportion to relevant risks underwritten.

To enable the total contributions from these sources to be determined, the Authority is required to prepare annually an estimate of expenditure, which is subject to the approval of the Governor in Council. For the year ended 30th June, 1974, contributions provided $6,396,361 towards the amount required to meet estimated net expenditure for the year, $6,306,240, plus the deficit brought forward from 1972-73 $125,544. The shortfall of $35,423 in contributions received was due to the failure of one insurance company to meet its commitment within the year.

Section 80A of the Act provides for contributions to be made by brokers and, in certain circumstances, property owners, based on premiums paid in respect of fire insurance effected with an insurance company other than an insurance company licensed under Section 96 of the Stamps Act 1958. Contributions from this source in 1973-74 totalled $38,632.

A statement of transactions on Current Account, over the past two years, is as follows :-

I - 1972-73. 1973-74.

Receipts. $ $

Statutory contributions-Section 76 .. . . . . . . 4,915,200 6,396,361 Section 80A .. . . . . .. 35,894 38,632

Other receipts . . . . . . .. . . . . 127,014 165,919 Cash deficit . . .. . . . . . . . . 125,544 . .

5,203,652 6,600,912

Payments. Deficit from previous year .. . . . . . . .. 20,270 125,544 Salaries, wages and maintenance .. . . . . . . 3,257,603 4,163,130 Loan repayments including sinking fund . . . . .. 279,285 313,800 Loan interest . . . . .. . . . . . . 273,191 310,016 Land, buildings, rolling-stock and equipment . . .. . . 293,022 333,900 Brigade expenses .. . . . . . . . . . . 115,442 139,648 Motor Replacement Fund . . .. . . . . . . 180,000 180,000 Compensation Fund . . .. . . . . . . 20,000 20,000 surerannuation . . .. . . . . . . . . 370,219 464,359 Ot er payments .. . . . . . . . . . . 394,620 547,883 Cash surplus carried forward to next year . . . . . . .. 2,632

5,203,652 6,600,912

Motor Replacement Fund.-This fund was established, with the consent of the Governor in Council, under Section 84 (a) of the Country Fire Authority Act, to provide funds for the continuing replacement of the Authority's transport and fire fighting vehicles. Section 84 (b) authorizes payment into the fund of such amounts as the Governor in Council approves.

The Governor in Council on 26th July, 1949, approved of a method of calculating the annual amount to be contributed to this fund, based on specified percentages of the original cost of the Authority's vehicles. Contributions were made on this basis annually to 30th June, 1972. Since that date, however, the sums to be contributed, as included in the estimates of expenditure approved by the Governor in Council, have been arrived at on an arbitrary basis.

On the original basis, the contribution to the fund in 1973-74 would have been $375,837 compared with the sum of $180,000 actually credited to the fund in accordance with the approved estimates. The unfunded balance has been taken up, for accounting purposes, in the provision for depreciation.

9

Receipts and expenditure of loan moneys over the past two years are shown hereunder :-

Balance, 1st July .. Receipts-

Loan Proceeds Refunds, &c. . .

Expenditure­Buildings Vehicles Radio Equipment Office Equipment

Balance unexpended 30th June

1972-73. 1973-74. $ $

49,676 159,531

575,000 800,000 19,047 45,583

643,723 1,005,114

332,046 408,080 103,704 82,972 48,442 132,041

3,402

484,192 626,495

159,531 378,619 ---

The analysis hereunder of the Authority's balance-sheets shows the financial position at 30th June, 1973 and 1974 :-

30.6.73. 30.6.74. $ $ $ s

Source of Funds-

External-4,650,148 Loan Liability .. . . 5,235,334

159,531 Less unexpended 378,619

4,490,617 4,856,715 98,499 Capital Works Building Account ..

4,589,116 4,856,715

Internal-276,271 Excess of assets over liabilities transferred from

Country Fire Brigades Board .. . . 276,271 2,996,982 Income and Expenditure Account-accumulated balance 3,403,194 3,831,900 Reserves 3,879,398 3,724,786 Funds .. .. . . . . 4,627,589

Less invested on account of Compensation, 2,654,246 Superannuation and other Trust purposes 3,239,438

1,070,540 1,388,151

8,175,693 8,947,014

12,764,809 13,803,729

10

30.6.73 30.6.74

$ $ $ $ Represented by-

Current Assets-Cash at Bank and on Hand 3,160

151,661 Sundry Debtors and Prepayments 199,858 210,920 Stocks-including uniforms issued 253,222 216,262 Works in Progress 372,514

578,843 828,754

Less-Current Liabilities-

217,752 Sundry Creditors 265,297 125,544 Bank Overdraft

343,296 265,297

235,547 563,457

*Funds-Investments, Etc.-670,284 Motor Replacement 787,306

11,391 Sale of Property .. - 65,188 372,646 Sinking Fund-Loans .. 497,629 27,036 Private Fire Appliances 37,360

575 Other 668 ----

1,081,932 1,388,151

Fixed Assets-4,221,329 Land and Buildings 4,522,724 6,287,582 Rolling-stock .. 6,215,980

851,870 Plant and Machinery 1,011,591 86,549 Other .. 101,826

11,447,330 11,852,121

12,764,809 13,803,729

• Includes cash balances. At 30th June, 1974. cash balances in respect of all funds amounted to $344,988.

11

DANDENONG V ALLEY AUTHORITY.

Functions of the Authority include the drainage of the waters of the Dandenong Creek and its tributaries, the improvement of lands within its catchment area and the prevention of flooding and pollution.

The Authority's balancing date is the 30th September in each year and the accounts have been audited to 30th September, 1973.

Following is an abridged statement of the General Revenue Account for the years ended 30th September, 1972 and 1973 :-

1971-72. $

823,092 200,364

1,023,456

132,751 190,080 84,777 65,590

240,040

713,238

310,218 10,193

320,411 14,481

305,930

Income-Rating Precepts-Municipalities Other ..

Expenditure­Administration Maintenance of Works Survey, Investigation and Design Depreciation Provision Debt Services

Excess of Income over Expenditure Transfer from Plant Replacement Reserve

Less Appropriation to Loan Repayment Sinking Fund

Net Surplus for year ..

1972-73.

$ $

938,793 178,734

172,060 256,639 122,258 76,356

296,111

1,117,527

923,424

194,103 48,270

242,373 17,732

224,641

The Authority's balances at 30th September, 1972 and 1973, are summarized hereunder :-30.9.72.

$

1,745,909 130,679 12,491

1,889,079

290,984

209,894

15,592

516,470

2,701,202 5,879,895 1,776,908 1,672,135

12,030,140 213,026

11,817,114

343,128

14,565,791

Current Assets­Cash at Bank Debtors and Prepayments Other ..

Fixed Assets-Land and Buildings (at cost)

Plant, Vehicles and Equipment (at cost less depreciation)

Office Furniture and Machines (at cost less depreciation)

Capitalized Works Expenditure­River Improvement Works Piped or Lined Drainage Channels Carrum Drainage District Other ..

Less Provision for Depreciation

Investments ..

30.9.73.

$ $

2,309,809 205,464

18,902

2,534,175

320,389

253,683

16,555

590,627

2,955,389 6,910,406 1,776,908 2,125,314

13,768,017 291,811

13,476,206

422,895

17,023,903

12

30.9.72. 30.9.73. $ $ $

Current Liabilities-

213,670 Bank Overdraft 57,491 Sundry Creditors 64,161 13,146 Contractors' Deposits 15,632

79,793

Loans-

624,339 Government of Victoria 622,441 3,852,183 Other 4,549,292

5,171,733

4,760,829 5,251,526

Excess of Assets over Liabilities-

193,574 Grants by Government of Victoria 253,218 2,403,206 Capital Expenditure home by the State 2,603,205 5,375,388 Contributions by Property Owners 6,775,748

Other Grants and Contributions 71,046 60,657 Plant Replacement Reserve 50,787 59,800 Loans Repayment Sinking Fund 81,395

1,712,337 General Revenue Account Balance 1,936,978

9,804,962 11,772,377

14,565,791 17,023,903

13

ELECTRICITY COMMISSION.

The Commission recorded a surplus of $17,386,972 on its operations for the year ended 30th June, 1974, compared with a deficit of $1,556,695 in the previous year.

Operating and other forms of income increased by $45,140,599 through a 7 per cent. increase in electricity sales and two increases in tariffs. The first increase in tariffs operated as from 1st July, 1973, and slightly raised the initial number of kilowatt hours charged at the maximum rate on customers' accounts. A second and larger increase, 10 per cent. overall, was applied in the latter part of the financial year-from 4th February on monthly readings, from 4th March on two­monthly readings and from 4th April on three-monthly accounts.

A 25 per cent. increase in average rates of pay and higher costs of materials and services were contributing factors in the increase of $26,196,932 in operating costs for the year.

REVENUE ACCOUNT.

The financial operations and results for the past two years are shown in the following statement :-

1972-73. 1973-74.

$

252,695,020 191,544,897

61,150,123 81,902

61,232,025

61,762,722 1,025,998

62,788,720

1,556,695

9,520,000 564,338

10,084,338

11,641,033

Income Operating Expenditure

Excess of Income over Operating Expenditure .. Add-Miscellaneous Income

Deduct-

Interest and Loan Flotation Expenses Miscellaneous Expenditure -

Surplus on Operations .. Deficit on Operations ..

Provision for Statutory Transfers to the Consolidated Fund of Victoria-

Based on Total Revenue for 1973-74 .. Based on Brown Coal Production in 1973-74 ••

Provision for Long Service Leave

Surplus to General Reserve Deficit to General Reserve

$

65,043,498 1,345,085

11,500,000 618,631

5,000,000

s 297,835,619 214,206,948

83,628,671 146,884

83,775,555

66,388,583

17,386,972

17,118,631

268,341

The Public Authorities (Contributions) Act provides for an annual contribution based on total revenue to be made by the Commission to the Consolidated Fund. The present rate of contribution is 4 per cent. and, since 1966, when the requirement first applied, a total of $56,990,000 has been contributed by the Commission.

14

After the allocation of relevant operating expense and overhead (including depreciation, interest and loan flotation expense), the preceding summary may be re-stated as follows to show sectional results for the year 1973-74 compared with the previous year :-

1973-74.

$ Profit on Electricity Supply

1972-73.

$

3,060,128 92,828 Profit on Brown Coal Sales (Yallourn North Extension) ..

$ 22,066,549

274,517

3,152,956 22,341,066

3,707,346 Loss on Briquetting 3,736,575

Profit on Operations 18,604,491 554,390 Loss on Operations

1,002,305 Excess of Miscellaneous Expenditure over Income 1,217,519

Income in excess of Expenditure for year 17,386,972 1,556,695 Expenditure in excess ot Income for year

Comments on various aspects of the year's operations follow.

Electricity Supply.-(Profit $22,066,549). Operational statements for the past two years show

Sales­Domestic Commercial and General Industrial .. Bulk Supplies Traction .. Public Lighting and Increase in Unread Consumption ..

Operating Charges­Power Generation Purchased Electricity Transmission Distribution

Profit

1972-73.

$

78,090,686 40,475,847 65,892,001 49,483,400

3,684,680 4,295,962

241,922,576

102,990,206 17,234,674 44,042,628 74,594,940

238,862,448

3,060,128

1973-74.

$

93,663,654 48,662,318 75,587,765 57,538,813 4,101,171 7,680,946

287,234,667

115,472,878 17,172,579 48,660,659 83,862,002

265,168,118

22,066,549

Significant factors in the substantial increase in profit on electricity supply were a rise of roundly 33,000 in the number of customers and the application during the year of the increased tariff rates mentioned earlier.

15

Brown Coal Production and Distribution.-Coal won for the year amounted to 25,147,590 tonnes, an increase of 2,211,590 tonnes on the previous year's production.

The summary which follows presents in comparative form the annual output obtained from the various open cuts for the past two years and, in parentheses, shows, in respect of each year, the production costs per tonne.

1972-73. 1973-74. Tonnes Tonnes

Morwell .. 14,397,000 ($1.04) 14,735,458 ($1.12)

Yallourn .. 8,285,000 ($1.37) 10,105,350 ($1.23)

Yalloum North Extension .. 254,000 ($1. 35) 306,782 ($0.81)

22,936,000 25,147,590

Distribution of the output was as follows :-

Power Production ..

Briquette Manufacture

Sales to Public ..

1972-73. Tonnes.

19,483,000

3,199,000

254,000

22,936,000

1973-74. Tonnes.

21,743,395

3,097,413

306,782

25,147,590

Briquetting.-(Loss $3,736,575). Trading results for the past two years, excluding costs charged on internal transfers to works, are shown in the following statement :-

1972-73. 1973-74.

$ $ $ $ Sales-

Domestic .. 5,327,596 5,271,505

Industrial 4,990,877 4,786,295 10,318,473 10,057,800

Manufacturing Costs 9,020,611 9,019,731

Distribution and Selling 5,005,208 4,774,644 14,025,819 13,794,375

Loss 3,707,346 3,736,575

16

Tramways.-Further expenditure incurred during the year in consequence of the abandonment during 1971-72 of tramway services in Ballarat and Bendigo was as under :-

Total to 1973-74. 30·6· 74.

$ $ Road Restoration Works-Ballarat 272,000 820,000

Bendigo 114,185 228,570 Pensioner Fares-Subsidies 39,628 103,110 Compensation, Loss of Franchises, etc., Bus Operators-Bendigo 9,207 85,224

In addition to the above expenditure, the Commission has made loans to operators in Ballarat and Bendigo for the purchase of buses. To 30th June, 1974, a total of $499,786 has been advanced to the operators on terms which provide for repayments to commence in August, 1981, and for an interest-free period during the two years from the date the tramway services ceased to operate.

The first instalment of interest became due at the close of 1973-74, but the two operators in the Bendigo area were unable, at 30th June, 1974, to meet payment of the amounts then due.

The loans are secured by charge on the buses.

Depreciation. The following comparative statement shows depreciation charges for the past two years :-

Normal provision-charged to operations Indirect-charged to Fixed Assets ..

1972-73. 1973-74.

$ $ 48,324,390 51,196,674 1,532,819 1,595,475

49,857,209 Amortization-Development of Open Cuts-charged to operations 535,100

52,792,149 536,600

50,392,309 53,328,749

The Balance-sheet discloses that at 30th June, 1974, the provision had increased by $46,270,674 compared with the figure at 30th June, 1973. This net increase is explained hereunder:-

Balance-30th June, 1973 .. Add Provision for year as per statement above

Less Retirements

Balance-30th June, 1974

$ 462,321,044 52,792,149

515,113,193 6,521,475

508,591,718

The greater portion of the Provision for Depreciation remains invested in the undertaking, but some use has been made of it to meet the following statutory requirements :-

National Debt Sinking Fund-Repurchases, etc. Sinking Fund Schedule Requirements-Repurchases, etc.

Sinking Fund Investments Sinking Fund cash awaiting investment

Interest.

$ 28,128,050 13,222,309 22,133,100

890,095

The following statement compares the interest charges for the past two years and shows the allocation to Revenue Account and Fixed Assets :-

On-Capital Liabilities .. Acquisition Loans from Municipalities Advances from Provident Fund Advances from Employees' Retirement Fund Advances for Capital Works Current Liabilities

Deduct Interest earned on Investments

These totals were allocated in the accounts as under :-

Revenue Account .. Fixed Assets-Component of charges for services

1972-73.

$ 60,162,579

140,233 3,519,080

7,347 2,617,193

25,272

66,471,704 3,688,326

62,783,378

$ 61,604,284

1,179,094

62,783,378

1973-74.

$ 64,842,108

137,315 4,478,369

4,673 2,770,393

14,363

72,247,221 6,313,033

65,934,188

$ 64,702,599

1,231,589

65,934,188

17

The Commission's balances at 30th June, 1973, and 1974, are summarized hereunder-30.6. 73.

$

757,827 22,832,944 19,844,650

12,487,147 100,219

56,022,787

Current Assets-

Balances at Bank and Cash in Hand Customers' and Other Accounts Receivable Estimated Income from Unread Electricity

Consumption .. Materials and Fuel-at cost Miscellaneous Deferred Charges ..

55,347,224 Investments-at cost

3,614,088 Long Term Debtors (Real Estate Sales)

1,420,851,080 462,321,044

958,530,036 129,146,000 12,587,986

1,100,264,022

1,215,248,121

11,416,805 13,567,650 10,304,338 1,885,121

37,173,914

96,875,199 2,168,992

16,750,000

115,794,191

14,896,848 13,842,656

28,739,504

763,500,274 270,040,238

1,033,540,512

1,215,248,121

8588/74.-2

Fixed Assets-

Assets in service-at cost Deduct Provision for Depreciation

Assets not yet in service-at cost .. Development of Open Cuts-balance of cost

Current Liabilities-

Accounts Payable and Miscellaneous Accruals Interest Accrued Provision for Transfers to State Revenue .. Customers' and Contractors' Deposits

Deferred Liabilities-

Advances for Capital Works Acquisition Loans from Municipalities Provision for Long Service Leave and Retiring

Allowances ..

Reserves­

General Reserve Customers' and Other Contributions for Capital

Works

Capital Liabilities-

Inscribed Stock and Debentures Victorian Government Advances

30.6.74.

$

1,542,295 29,022,966

23,523,578 12,869,625

205,831

1,554,966,186 508,591,718

1,046,374,468 72,384,390 13,976,961

13,755,434 15,190,058 12,138,631 1,968,082

102,075,777 1,870,731

21,750,000

15,850,092

16,158,955

799,031,887 280,380,319

$

67,164,295

76,748,564

3,521,288

1,132,735,819

1 ,280,169,966

43,052,205

125,696,508

32,009,047

1,079,412,206

1,280,169,966

18

The following is a re-statement (in abbreviated form) of the balance-sheets at 30th June, 1973 and 1974, to show funds held by the Commission at the balance dates and the assets representing those funds-

30.6. 73. 30.6. 74. Variation.

$ $ $ Funds held-

External Borrowings (net) 1,082,615,403 1,133,379,882 + 50,764,479 Provident Fund Advances .. 49,969,300 49,978,832 + 9,532 Internal Funds 488,117,448 540,217,665 + 52,100,217

1,620,702,151 1, 723,576,379 + 102,874,228

Represented by-

Gross Fixed Assets 1,562,585,066 1,641,327,537 + 78,742,471 Long Term Debtors 3,614,088 3,521,288 92,800 Net Current Assets 18,928,155 24,172,755 + 5,244,600 Investments 35,574,842 54,554,799 + 18,979,957

1,620,702,151 1,723,576,379 + 102,874,228

Fixed Assets.

The following statement shows the details of fixed assets at the close of the past two years :-30.6. 73. 30.6.74.

$ $ Coal Production 78,579,237 87,644,794 Briquette Production and Distribution 33,578,855 33,725,092 Power Production-

Thermal Stations .. 513,051,862 540,756,661 Hydro Stations 72,687,893 73,163,954

Transmission System 336,985,689 343,006,186 Distribution System 386,395,986 416,441,338 General Service Assets .. 128,717,558 132,612,551

1,549,997,080 1,627,350,576 Deduct Provision for Depreciation 462,321,044 508,591,718

1,087,676,036 1 '118, 7 58,858 Development of Open Cuts-

Balance of Cost .. 12,587,986 13,976,961

1' 100,264,022 1,132,735,819

Investments.

During the year, the Commission's investments, including deposits held on account of contractors and customers, increased by $21,401,340.

Investments held at 30th June, 1973 and 1974, were as follows :-

General-Government and semi-Government Securities Short Term Money Market, " Buy Back " Securities and

Commercial Bills Shares in Australian Char Pty. Ltd. Bank Deposits

Sinking Fund-Government and semi-Government Securities

Contractors' and Customers' Deposits

30.6.73. $

21,199,842

11,350,000 75,000

2,950,000

35,574,842

19,693,100 79,282

55,347,224

30.6. 74. $

18,269,619

27,180,180 105,000

9,000,000

54,554,799

22,133,100 60,665

76,748,564

19

Advances for Capital Works. The Commission's liability on account of these advances increased during the year.

Details are :-Balance. Balance. Variation 30.6. 73. 30.6.74. for Year.

$ $ $ Customers' Advances for Capital Works (Self Help) 41,707,293 42,542,649 + 835,356 Advances for Construction of Offices and Showrooms 2,932,578 2,592,300 340,278 Advances for Construction of Power Stations .. 2,266,028 6,961,996 + 4,695,968

46,905,899 52,096,945 + 5,191,046 Advances from Provident Fund 49,969,300 49,978,832 + 9,532

96,875,199 102,075,777 + 5,200,578

A summary of transactions for the past two years in respect of Customers' Advances for Capital Works shows-

Contributions received Interest credits

Less refunds of instalments and expired deposits, and transfers to customers' accounts as payment for supplies of electricity

~et I>ecreaseflncrease

1972-73. $ $

6,145,249 2,422,735

8,567,984

9,221,523

653,539

1973-74. $

7,977,326 2,439,404

$

--- 10,416,730

9,581,374

+ 835,356

Provision for Long Service Leave. The Commission planned to have this provision reach a total of $32,000,000 by 30th June,

1972, but an under-provision in 1970-71 and the lack of any provision in 1972 prevented this total from being reached. Nothing was provided in 1973, but in 1974 a $5 million provision has been made, bringing the total at 30th June, 1974, to $21,750,000. Loans.

The loan liability of $280,380,319 to the Treasury at 30th June, 1974, was determined after the deduction of $40,436,230, the Commission's equity in the National Debt Sinking Fund. The increase in this equity during 1973-74 was $3,064,602, in respect of which a credit of $684,903 was made to the General Reserve representing, mainly, the relevant Commonwealth contributions to the Fund less National Debt charges in connexion with the repurchase of securities.

Including settlements of $28,200 on account of loans authorized in 1972-73, loan moneys raised by the Commission during the year amounted to $72,835,000. The sources of these moneys were--- $

Public Loans 15,271,500 Private Loans 55,268,900 Retired Staff Loans 2,294,600

72,835,000

The net increase in Commission loans in 1973-74 was $35,531,613. The difference of $37,303,387 between the total raisings of $72,835,000, detailed immediately above, and the net increase represents the total of conversions and redemptions of maturing loans and payments in reduction of current loans.

Reserves. The Balance-sheet discloses that, at 30th June, 1974, Reserves totalled $32,009,047 compared

with $28,739,504 at 30th June, 1973. (i) General Reserve.-The increase of $953,244 in the balance of this Reserve is

accounted for as follows :-

Balance at 30th June, 1973 .. Add-Surplus from Revenue Appropriation Account

Credit on account of contributions to the ~ational I>ebt Sinking Fund for 1973-74 not payable by the Com­mission, less certain charges

Balance at 30th June, 1974 ..

$ $

268,341

684,903

14,896,848

953,244

. 15,850,092

(ii) Customers' and Other Contributions for Capital Works.-The balances of this Reserve at 30th June, 1973 and 1974, comprise non-repayable contributions made to the Commission towards the cost of Fixed Assets.

20

ELECTRICITY CoMMISSION PROVIDENT FUND.

The following statement shows operations of the Fund during the year :­$

Balance of Fund at 30th June, 1973 Add-Contributions-Commission

Officers

Investment Income

Less~Benefit Payments

Balance of Fund at 30th June, 1974

The Fund was represented by~ Assets~

Investments in Commission-Loan Advances Inscribed Stock (at cost)

Freehold Property (Less Provision for Depreciation) Other Investments (at cost)-Company shares ..

Company Debentures Housing Societies Property Trust Mortgages Convertible Notes . . . . Bank Endorsed Commercial Bills

Accrued Income~Contributions .. Investment Income

Less-Liabilities-Investment Purchases Awaiting Settlement Benefits Accrued and Unpaid

• Market Valuation 30th June, 1974, $9,114,505.

S.E.C. EMPLOYEES' RETIREMENT AND BENEFIT FUND.

7,113,704 4,619,465

49,978,832 33,965,300

975,070 12,717,198* 5,678,675

208,956 2,320,500 5,351,519

52,779 1,170,554

65,100 2,109,128

97,352 166,809

$ 101,386,315

11,733,169 7,826,482

120,945,966 6,616,516

114,329,450

83,944,132

28,475,251

2,174,228

114,593,611

264,161

114,329,450

From 1st May, 1970, a fund was established for the benefit of wages award employees who were not contributors to the Provident Fund. For a weekly contribution which is matched by the Commission at the rate of $1.50 for each $1.00 of contributions, members are eligible for a lump sum benefit on retirement or total and permanent disablement. In addition, certain benefits are available to dependants in the event of a contributor's earlier death. Membership is voluntary.

Details of the Fund's operations from 1st July, 1973, to 30th June, 1974, are :­$

Balance of Fund at 30th June, 1973 Add Contributions-Commission

Employees ..

Investment Income

Less-Benefit Payments

Balance of Fund at 30th June, 1974

The Fund was represented by­Assets-

Investments (at Cost)-Company Shares Company Debentures, Notes, &c. Property .. Mortgages .. Convertible Notes ..

Accrued Income-Contributions Interest

Less-Liabilities-Benefits Accrued and Unpaid Advances from Commission

• Market Valuation 30th June, 1974, $367,840.

498,252 332,482

578,472* 1,399,776

500,050 485,000

90,631

29,070 46,237

160,174 14,917

$ 2,355,641

830,734 205,906

3,392,281 438,136

2,954,145

3,053,929

75,307

3,129,236

175,091

2,954,145

21

GAS AND FUEL CORPORATION OF VICTORIA.

By statutory direction, the accounts of the Gas and Fuel Corporation of Victoria have been audited jointly by the Auditor-General and auditors appointed by the Corporation.

Under the provisions of the Gas and Fuel Corporation (Amalgamations) Act 1973 and the Gas and Fuel Corporation Act 1972, the subsidiary companies, Colonial Gas Holdings Ltd., Ammonia Products Pty. Ltd., Duratar Pty. Ltd., James Forbes (Tar Distillers) Pty. Ltd., Colgas Pty. Ltd., Bitural Pty. Ltd., The Geelong Gas Company and Queenscliffe Gas and Coke Company Ltd., were dissolved on 1st January, 1974, by proclamation of the Governor in Council and their business, assets and liabilities were transferred to the Corporation.

In addition, and under authority of the same legislation, the business, assets and liabilities of the subsidiary companies, The Colonial Gas Association Ltd., incorporated in the United Kingdom, and Thermal Traders (Vie.) Pty. Ltd., incorporated in the Australian Capital Territory, were transferred to the Corporation on lst January, 1974.

The following statement shows the consolidated income and expenditure of the Corporation and its subsidiaries, the Geelong Gas Company and Colonial Gas Holdings Ltd., for the year ended 30th June, 1973, and the income and e:x;.penditure of the Corporation and the consolidated figures of the Corporation and its subsidiaries, Waldorf Appliances Pty. Ltd. and Mount Gambier Gas Company Ltd., for the year ended 30th June, 1974.

Consolidated. 1973

$

61,129,113

27,700,871

88,829,984

14,363,911 21,663,174

36,027,085

52,802,899

13,889,799 11,611,169 20,969,082 3,002,393

49,472,443

Income-Sales-

Gas Appliances, L.P. Gas, Residual and Other

Products

Cost of Sales-Gas .. Appliances, L.P. Gas and Other Products

Expenditure (Note I)­Distribution Marketing Administration Amortisation of Natural Gas

Change-over Costs

3,330,456 Profit on Trading Dividends Receivable (Note 3) ..

3,330,456 Net Profit for Year before Income Tax, Transfers to Reserves and Fixed Dividends

1,828,400 Contribution to Consolidated Fund 296,237 Income Tax ..

50,000 Transfer to Contingency Reserve 635,794 Pre-acquisition Profit of subsidiary company

2,810,431

520,025 Transferred from Income Tax Provision

Balance carried forward to Profit and Loss 520,025 Appropriation Account

Gas and Fuel Corporation.

1974

$

72,029,865

32,539,839

19,353,560 25,793,016

15,394,988 13,540,498 24,012,848

3,546,450

2,180,000 18,008 50,000

$

104,569,704

45,146,576

59,423,128

Consolidated. 1974

$

72,262,895

34,081,519

106,344,414

19,450,502 26,800,210

46,250,712

60,093,702

15,452,117 13,975,207 24,140,637

3,546,450

56,494,784 57,114,4ll

2,928,344 2,979,291 32,782

2,961,126 2,979,291

2,180,000 45,316 50,000

2,248,008 2,275,316

713,118 703,975 5,761 5,761

718,879 709,736

22

The quantity of gas sold for the year was 59,674,000 gigajoules returning $1.21 per gigajoule compared with, in 1972-73, 42,465,649 gigajoules for a unit return of $1.44.

The Public Authorities (Contributions) Act 1966 requires the Corporation to pay to the Consolidated Fund in each financial year a contribution of an amount equal to 4 per cent. of the total revenue of the Corporation in the preceding financial year. In terms of the legislation, an amount of $54,500,000 was agreed to by the Treasurer and the Corporation as the total revenue for the year 1972-73 and 4 per cent. thereof, $2,180,000, was paid to the Consolidated Fund in June, 1974.

Movements in the Profit and Loss Appropriation Account for the year were :-

Balance brought forward 1st July, 1973 Net Profit for year from Profit and Loss Account ...

Available for Appropriation Preference Shares Dividend at 4 per cent. per annum for year

ended 30th June, 1974 .. " B " Preference Shares Dividend at 6 per cent. per annum for

year ended 30th June, 1974

Balance carried forward 30th June, 1974 -

$

31,266 709,736

315,278

361,316

$

741,002

676,594

64,408

23

The following is a consolidated statement of the balances of the Corporation and its subsidiaries, the Geelong Gas Company and Colonial Gas Holdings Ltd., at 30th June, 1973, and of the Corporation and its subsidiaries Waldorf Appliances Pty. Ltd., and Mount Gambier Gas Company Ltd., at 30th June, 1974, arranged to show the funds employed and the assets representing the total funds.

Consolidated 30.6.73.

$

7,881,952

5,746,174

8,000,000

Shareholders' Funds-

Subscribed Capital-

3,940,976 4 per cent. Cumulative Preference Shares of $2 each (see explanatory note No. 4 herein) ..

3,010,503 6 per cent. "B" Cumulative Preference Shares of $2 each ..

4,000,000 Ordinary Shares of $2 each subscribed by the State of Victoria

21,628,126 Subscribed Capital (Fully Paid)

2,199,316 3,094,787

607,336

31,266

27,560,831

10,095,590 1,358,503

8,737,087

8,371,545 198,178,685

312,903

206,863,133

243,161,051

210,474,275 45,533,127

164,941,148

Reserves-

General Reserve Asset Realization Reserves Contingencies Reserve

Profit and Loss Appropriation Account ..

Deferred Liabilities-

Advances from State of Victoria Less securities purchased and cancelled by the National Debt Commission

Debentures and Debenture Stock (Secured)­

Redeemable within twelve months Redeemable after twelve months Purchase consideration due to former shareholders

of Colonial Gas Holdings Ltd. (Part)

$ Contingent Liabilities- $ 3,252,000 Commitments under Contracts for 3,359,000

Capital Expenditure and Bank Guarantees

Fixed Assets-

Freeholds, Leaseholds, Machinery, Plant, Equipment and Capital Work in progress (at cost or valuation) (see explanatory note No. 11 herein)

Less Provision for Depreciation

Carried forward

Gas and Fuel Corporation

30.6.74.

$

7,881,952

6,021,006

8,000,000

2,285,439 29,812,609

657,336

10,097,230

1,469,717

6,843,656 208,548,087

$

Consolidated. 30.6.74.

$

7,881,952

6,021,006

8,000,000

21,902,958 21,902,958

32,755,384

73,551

54,731,893

8,627,513

2,285,439 29,883,491

657,336

32,826,266

64,408

54,793,632

10,097,230

1,469, 717

8,627,513

6,843,656 208,548,087

215,391,743 215,391,743

278,751,149 278,812,888

249,667,387 50,494,488

250,338,931 50,673,369

199,172,899 199,665,562

Consolidated 30.6.13

$ 164,941,148

912,303 2,979,543

18,125,683 6,852,144

273,044

29,142,717

11,424,900 2,681,785

5,178,025 494,510 547,500 338,214 270,981

20,935,915

8,206,802

. . 586,713

586,713

5,798,524

537,035 56,810,473

6,280,356

69,426,388

243,161,051

24

Brought forward

Current Assets-Cash in Hand and at Banks Short-term Deposits . . . . Trade and Other Debtors (less provision for

Bad and Doubtful Debts and Consumers' Deposits) (Note No. 8)

Stocks at Cost or Valuation Prepayments .. Amount owing by Subsidiaries

Less Current Liabilities­Trade and Other Creditors Bank Overdraft

Provisions-Long Service Leave Retiring Allowances Deferred Repairs Preference Dividend Income Tax

Net Current Assets

Investments-In Subsidiary Companies (Note No. 15) .. In Other Companies

Intangibles-Goodwill on consolidation .. Unamortised Debenture Issue Expenses (Note

No. 12) . . .. .. Natural Gas Change-over Costs (Note No. 13) Pipeline Establishment Expenses (Note No. 14)

Gas and Fuel Corporation

30.6.14

$

1,345,537 750,000

23,313,546 7,579,859

309,671 836,764

12,911,580 1,996,010

6,425,884 500,340 824,835 338,269

18,004

232,684 36,713

5,798,524

442,521 55,996,461

5,950,892

Consolidated 30.6.14

$ $ 199,172,899 199,665,562

1,351,102 750,000

23,821,884 7,963,809

309,671

34,135,377 34,196,466

13,014,157 2,080,961

6,465,670 500,340 829,935 338,269

44,919

23,014,922 23,274,251

11,120,455

269,397

269,397

10,922,215

.. 36,713

36,713

36,713

5,798,524

442,521 55,996,461

5,950,892

68,188,398 68,188,398

278,751,149 278,812,888

DIRECTORS' EXPLANATORY NOTES ON THE ACCOUNTS FOR THE YEAR ENDED 30m JUNE, 1974.

1. Charges against r~yenue for the year included-

(a) Interest on debenture and other fixed loans from outside group

Other interest from outside group

Less: Interest received on investments ..

(b) Bad Debts written off­Trade Debtors .. Other Debtors ..

Corporation 1974

$'000

13,028 340

13,368 385

12,983

132 34

166

Corporation 1973

$'000

10,632 226

10,858 353

10,505

Consolidated 1974

$'000

13,028 341

13,369 385

12,984

151 35

186

Consolidated 1973

$'000

12,100 256

12,356 591

ll,765

32 29

61

25

$'000 $'000 $'000 $'000 (c) Provision in respect of Depreciation-

on Buildings, Plant and Equipment 5,913 4,017 5,934 5,451 on Stores 48 178 48 186

5,961 4,195 5,982 5,637 Amortisation-

Natural Gas Change-over Costs 3,217 2,335 3,217 2,720 Pipeline Establishment Expenses 329 282 329 282

Doubtful Debts-Trade 267 162 272 189 Doubtful Debts-Hire Purchase 30 40 30 47 Long Service Leave .. 2,086 1,130 2,095 1,560 Retiring Allowances .. 116 58 116 74 Deferred Repairs 267 124 267 294

12,273 8,326 12,308 10,803

The cost of plant in normal course of retirement $255,000 (1973 $152,000) has been deducted from the Provision for Depreciation.

(d) Directors remuneration 18 15 19 37 (e) Audit Fees (Auditing Group Accounts) 45 23 47 45

The Auditors received no other benefits.

2. Bad Debts have been written off against provisions for-

Trade Debtors . . 186 Hire Purchase Debtors 20

3. Profit from Subsidiaries-

Waldorf Appliances Pty. Ltd. Mt. Gambier Gas Co. Ltd. Geelong Gas Company .. Colonial Gas Holdings Ltd.

4. Capital-

Authorised Capital-7 ,500,000 4 per cent. Cumulative preference Shares ..

$2 each 6,625,000 6 per cent. " B " Cumulative Preference

Shares of $2 each .. 7,500,000 Ordinary Shares of $2 each ..

Issued Capital-4 per cent Cumulative Preference Shares of $2 each 6 per cent " B " Cumulative Preference Shares of

$2 each Ordinary Shares of $2 each

163 41

1974 $'000

33 (9)

1973 $'000

15,000

13,250 15,000

43,250

7,882

5,746 8,000

21,628

186 180 20 45

1973 $'000

166 185

New Capital 1974 $'000 $'000

15,000

13,250 15,000

43,250

7,882

275 6,021 8,000

275 21,~03

All ordinary shares issued are held by the State of Victoria. The Articles of Association of the Corporation restrict the transfer of the 4 per cent Cumulative Preference Shares to any transferee other than the State of Victoria, except in special circumstances.

5. Reserves-

Increases in Reserves during the year were­Transfers to Contingency Reserve .. Increase in General Reserve for equity

increase in the National Debt Sinking Fund

Profit on sale of fixed assets transferred to Asset Realisation Reserve

Transfer to Asset Revaluation Reserve

Corporation 1974

$'000

50

86

604 26,114

Corporation 1973

$'000

50

80

17

Consolidated 1974

$'000

50

86

604 26,184

Consolidated 1973

$'000

50

80

17

6. Advances from the State of Victoria Discount and charges incurred ..

Less: Equity in National Debt Sinking Fund

7. Debentures-

Redeemable 1-2 years from 30th June Redeemable 2-5 years from 30th June Redeemable after 5 years from 30th June ..

26

Corporation 1974

$'000 15,662 38,323

154,563

Corporation 1973

$'000 5,704

38,599 131,872

Consolidated 1974

$'000 15,662 38,323

154,563

1974 $'000 10,000

97

10,097 1,470

8,627

Consolidated 1973

$'000 6,704

41,779 150,008

The due repayment of the principal sums and the payment of all interest secured by any debentures or debenture stock issued by the Corporation is guaranteed by the Government of Victoria under Clause 13 of the Gas and Fuel Corporation Act 1958.

8. Debtors and Prepayments-Corporation Corporation Consolidated Consolidated

1974 1973 1974 1973

$'000 $'000 $'000 $'000 Trade .. 21,665 12,032 22,179 17,280 Hire Purchase 4,359 2,974 4,386 3,733

26,024 15,006 26,565 21,013 Less: Provision for Doubtful Debts-

Trade 475 286 492 402 Hire Purchase 79 49 79 73

554 335 571 475 Unearned Interest 701 572 705 681 Consumers Deposits 2,230 1,782 2,242 1,998 Provision for Interest thereon 209 239 209 239

22,330 12,078 22,838 17,620 Other Debtors 983 381 983 506 Prepayments 310 254 310 273

23,623 12,713 24,131 18,399

Hire purchase terms charges are absorbed into the Profit and Loss Account in equal instalments over the term of the contract.

9. Stocks and Stores .. Less: Depreciation

10. Bank Overdraft-Bank Balances (Cash Book) Less: Unpresented Cheques

Bank Overdraft

7,754 174

7,580

1,996 1,707

289

4,720 8,138 7,057 205 174 205

4,515 7,964 6,852

2,221 2,081 2,682 2,220 1,707 2,220

374 462

27

Corporation Corporation Consolidated Consolidated 1974 1973 1974 1973

$'000 $'000 $'000 $'000 11. Fixed Assets

Freehold Land-at independent valuation 1961 4,399 4,726

1963 97 1968 . . .. 7 1974 32,391 32,457

At Cost 32,391 4,399 32,457 4,830

211 I ,181 211 2,184

32,602 5,580 32,668 7,014

Leasehold Land-at independent valuation 1968 8 8 8 Less: Amortisation 2 2 2

6 6 6

Corporation Corporation Consolidated Consolidated 1974 1973 1974 1973 $'000 $'000 $'000 $'000

Buildings-on freehold land-

at independent valuation 1961 328 Less: Depreciation 143

185 at independent valuation 1968 12 Less: Depreciation 3

9 at independent valuation 1974 6,612 6,653 Less: Depreciation 1,878 1,893

4,734 4,760

at Cost . . ... 69 3,520 69 5,256 Less: Depreciation 32 988 32 1,321

37 2,532 37 3,935

on leasehold land at cost 3,479 3,334 3,479 3,335 Less: Depreciation 733 577 733 577

2,746 2,757 2,746 2,758

Machinery, Plant and Equipment-at independent valuation 1961 5,430 5,430 6,128 Less: Depreciation 1,842 1,842 1,917

3,588 3,588 4,211

at independent valuation 1968 123 Less: Depreciation 49

74

at cost 198,217 148,532 198,781 180,838 Less: Depreciation 45,865 31,661 46,029 41,486

152,352 116,871 152,752 139,352

Capital Work in Progress-

at cost 3,249 7,429 3,249 7,429 Less: Depreciation 141 32 141 32

3,108 7,397 3,108 7,397

Total Nett Fixed Assets ... 199,173 135,137 199,665 164,941

12. Unamortised Debenture Issue Expenses­

Balance 30th June, 1973 Add: Expenses of Issue for the year

Less: Amount written off

13. Natural Gas Change-over Costs Less: Amounts written off ..

14. Pipeline Establishment Expenses Less: Amounts written off

15. Investments in Subsidiary Companies are­

Waldorf Appliances Proprietary Limited Mt. Gambier Gas Company Limited

28

Corporation Corporation 1974 $'000

537 32

569 126

443

67,318 11,322

55,996

6,796 845

5,951

(lOO per cent.) (100 per cent.)

1973 $'000

634 25

659 122

537

56,579 5,965

50,614

6,796 516

6,280

Consolidated Consolidated 1974 1973 $'000 $'000

537 634 32 25

569 659 126 122

443 537

67,318 64,095 11,322 7,285

55,996 56,810

6,796 6,796 845 516

5,951 6,280

Under the heading "Consolidated" are the accounts of the Gas and Fuel Corporation of Victoria and its subsidiary companies Waldorf Appliances Proprietary Limited incorporated in New South Wales and Mt. Gambier Gas Company Limited incorporated in South Australia.

By Act No. 8464 of the State of Victoria the undertaking, business and assets of the wholly owned subsidiary Colonial Gas Association Limited, incorporated in the United Kingdom, and which is in the course of being wound up, and Thermal Traders (Vie.) Pty. Limited wholly owned subsidiary incorporated in the Australian Capital Territory, were transferred to the Corporation.

16. Statement of Shareholders as at 20th August, 1974-

(a) Number of holders 4 per cent. Cumulative Preference Shares

Number of Holders

536 24

1

Total 561

Number of Shares Held

1-1,000 1,001-5,000 5,001-10,000

10,001 and over

Number of holders 6 per cent. " B " Cumulative Preference Shares

Number of Holders

1,471 280

27 22

Total 1,800

(b) Voting Rights~

Number of Shares Held

1-1,000 1,001-5,000 5,001-10,000

10,001 and over

(i) 4 per cent. Cumulative Preference Shareholders have the same rights as the holder of ordinary shares to receive notices of general meetings, reports and balance sheets and accounts and to attend and vote at general meetings of the Corporation and to vote at a separate meeting convened for the purpose of passing a resolution to alter or modify the Memorandum of Association for the purpose of issuing additional prefer­ence shares.

(ii) 6 per cent. " B " Cumulative Preference Shareholders have the same rights as the holder of ordinary shares to receive notices of general meetings, reports, balance sheets and accounts and to attend and vote at general meetings of the Corporation and to vote at a separate meeting of the holders of 6 per cent. " B " Cumulative Preference Shares

29

convened for the purpose of passing a resolution to sanction a variation to the Articles of Association of the Corporation which affects the rights and privileges attached to the 6 per cent. " B " Cumulative Preference Shares.

(iii) The only Ordinary Shareholder being the State of Victoria is entitled to receive notices of general meetings, reports and balance sheets and accounts and to attend and vote at general meetings of the Corporation.

(c) Ninety-six per cent. of 4 per cent. Cumulative Preference Shares and fifty-eight per cent. of 6 per cent. " B " Cumulative Preference Shares are held by the twenty largest holders in each of the respective categories. Ninety-five per cent. of the 4 per cent. Cumulative Preference Shares are held by the State of Victoria.

17. Contingent Liabilities (Unsecured). These liabilities consisted of commitments under contract for capital expenditure and guarantees by

the Corporation approximating $3,359,000 (1973 $3,252,000) and the Princes Gate long term lease.

Particulars of Corporation shares acquired by the State and advances for works made by the State are furnished hereunder. The net cost to the Consolidated Fund on account of the State's financial interest in the Corporation is also shown.

To - 30th June, 1973-74. Total.

1973.

$ $ $ Acquisition of Shares-

Subscription for 4,000,000 Ordinary Shares of $2 .. 8,000,000 . . 8,000,000 Purchase of Preference Shares .. .. . . . . 7,488,894 40,000 7,528,894

15,488,894 40,000 15,528,894

Advances-Advance for Capital Works . . . . . . .. 12,000,000 . . 12,000,000 Loan Flotation Expenses .. . . . . . . 97,230 2,987 100,217

12,097,230 2,987 12,100,217

Preference Share Dividend Guarantee-Advanced to the Corporation . . . . . . . . 354,694 .. 354,694 Less Repayments . . . . .. . . . . 354,694 . . 354,694

. . . . . . Total In,·estments and Advances by the State . . .. 27,586,124 42,987 27,629,1ll

Cost to the State on account of the above-Debt Charges .. . . . . . . .. . . 20,711,018 1,265,360 21,976,378

Less Recoups, &c., from Corporation-Debt Charges . . . . .. . . . . 9,406,207 208,642 9,614,849 Dividends on Preference Shares .. . . . . 5,459,612 299,737 5,759,349

14,865,819 508,379 15,374,198

Net Cost to the State .. . . .. . . . . 5,845,199 756,981 6,602,180

The above statement does not take into account the sum of $2,180,000, already referred to, which was paid into the Consolidated Fund in 1973-74 in accordance with the provisions of the Public Authorities (Contributions) Act 1966 or the total amount that has been transferred to the Consolidated Fund in accordance with these provisions to 30th June, 1974, namely, $10,855,000.

No dividend has been paid on the ordinary shares. Any such dividend can be declared only from profits remaining after preference shareholders have been paid dividends in full.

The transfer of 4 per cent. preference shares by sale is restricted to sale at par to the State. At 30th June, 1974, the State was the registered owner of 3,756,459 shares. The transfer of a further 1,794 shares was in course and $12,388 was held by the Corporation for future purchases.

30

GEELONG HARBOR TRUST.

The operations of the Trust for the year ended 31st December, 1973, resulted in a deficit of $48,814 compared with a deficit of $15,140 for the previous year. Although increases in port charges operated for the full year, a reduction in the number and overall tonnage of vessels entering the Port, together with higher operating costs and a decrease in non-operating revenue, led to a further decline in the financial result.

Comparative figures for the past two years in the Trust's Revenue Account are shown in the statement hereunder :-

Operating Revenue-

Harbor Revenue Shipping Services Other

Non-operating Revenue-

Interest Sale of Scrap Materials

Total Revenue

Operating Expenses­

Administration, &c. Shipping Services Maintenance ..

Revenue.

Expenditure.

Depreciation and Amortization ..

Non-operating Expenses-

Superannuation Interest Miscellaneous ..

Total Expenditure

Deficit

Appropriations­

Sinking Fund Long Service Leave

Total Appropriations

1972.

$

2,050,081 772,806 227,476

48,572 1,613

3,100,548

560,234 839,209 348,910 872,577

153,555 310,011 31,192

3,115,688

15,140

49,316 24,293

73,609

1973.

$

2,095,934 1,099,878

286,587

21,225 914

3,504,538

679,954 991,689 421,575 891,919

245,337 263,032

59,846

3,553,352

48,814

48,296 24,721

73,017

31

The following statement summarizes the Trust's financial position as at 31st December, 1972 and 1973 :--

31.12. 72. 31.12. 73. $ $ $ $

Source of Funds-External-

4,931,631 Loan Liability 4,829,611

Internal-5,559,903 Endowments 5,559,903

12,407,460 Net Revenue Account-Accumulated Surplus 12,285,629 2,787,471 General Reserve 2,820,488

6,218,947 Specific Reserves and Funds 6,669,272 6,019,696 Less Investments 6,427,737

199,251 241,535

20,954,085 20,907,555

25,885,716 25,737,166

Represented by-Current Assets-

1,060 Cash .. 1,060 110,548 Investments 420,590 278,620 Sundry Debtors and Prepayments 434,305

38,083 Stores (at cost) .. 40,037

428,311 895,992

Less-Current Liabilities-91,698 Bank Overdraft 89,706

170,703 Sundry Creditors and Accruals 183,876 16,855 Contractors' Deposits and Retentions .. 4,203

279,256 277,785

149,055 618,207

Deferred Assets-96,011 Various Advances, &c. 108,562

Fixed Assets (at Cost less Depreciation)-227,606 .Land (Purchased and Vested) 249,184

1,853,480 Buildings and Improvements 1,844,503 21,588,421 ·Harbor Works .. 21,080,341

1,752,671 Floating Plant .. 1,634,004 197,295 Other Plant and Vehicles 182,983 21,177 Furniture and Fittings 19,382

25,640,650 25,010,397

25,885,716 25,737,166

Specific Reserves and Funds.-Transactions within the respective Reserves and Funds during 1973 are given hereunder :-

-- I Port i Development Fund.

$

Balance forward 1st January, 1973 .. . . . . 4,031,328 Allocation from Revenue . . . . . . . . .. Interest on Investments . . . . . . .. 241,823

4,273,151 Less-

Expenditure for year . . . . . . .. . .

Balance 31st December, 1973 . . . . .. 4,273,151

Sinking Insurance Reserve Fund. Fund.

$ $

198,503 1,789,865 48,296 . . . 11,667 • 106,255

258,466 1,896,120

. . . . i

258,466 i 1,896,120 y

6,669,272

Provision for Long Service

Leave.

$

199,251 82,526 . .

281,777

40,242

241,535 -'

32

GRAIN ELEVATORS BOARD.

The Grain Elevators Board is constituted under the provisions of the Grain Elevators Act 1958 and, by agreement, operates as the bulk handling agent, in Victoria, for the Australian Wheat Board and the Australian Barley Board. These latter Boards recoup the Grain Elevators Board for the use of its facilities by meeting a charge which allows for operating costs, interest and loan expenses, depreciation and the hire of grain-handling facilities.

Wheat receivals for the 1972-73 season totalled 1,165,055 tonnes while 92,496 tonnes of barley were handled. The comparable totals for the 1971-72 season were 1,749,611 tonnes and 271,137 tonnes respectively.

The Board's accounting period ends on 31st October in each year. The statement of revenue and expenditure given below shows a net surplus for the 1972-73 accounting period of $78,763 compared with a surplus of $78,544 in respect of the previous period.

1971-72

$

4,685,010

1,133,555

5,818,565

2,568,425 647,898 588,598

1,631,366 303,734

5,740,021

78,544

590,464 764.923

3,118

1,437,049

511,107 71,855 25,653 58,013 3,118

177,000 129,000

975,746

461,303

Australian Wheat Board­Wheat Handling Charges

Australian Barley Board­Barley Handling Charges

Revenue.

Total Revenue-Grain Handling

Operating and Maintenance Administration Expenses ..

*Depreciation Interest on Loans Sinking Fund Charges

Net Surplus

Add-

Expenditure.

Net Accumulation brought forward Interest on Investments Reserve Fund Interest Equity relating to Assets written off

Less Appropriations­*Depreciation Reserve Fund *General Reserve Fund *Insurance Reserve Fund *Renewals Reserve Fund Debentures and Inscribed Stock Sinking Fund Transfer to Renewals Reserve Fund Transfer to Office Building Reserve

Net Accumulation at 31st October

• Approved by the Honorable the Treasurer.

1972-73

$ $

4,653,620

479,292

5,132,912

1,848,700 667,076 586,776

1,646,086 305,511

5,054,149

78,763

461,303 861,624

4,302

1,405,992

554,577 74,231 28,648 64,246

4,302 218,685

944,689

461,303

33

The following is an abridged statement of the Board's balance-sheet :-

31.10. 72.

$

900,888 72,970

973,858

16,441,199

18,805,781 3,615,488 1,467,890

5,084,441 1,670,497

199,406

4,840 382,787 613,205

2,373,655 8,290

51,641,337

541,630

1,568,180 27,163,573

596,466 1,403,687 1,276,060 9,959,910

4,840 629,000 527,486

2,642,084 1,238,226 1,361,745

203,826

802,835

1,254,633 5,853

461,303

51,641,337

8588/74.-3

Current Assets-Sundry Debtors and Advances Cash ..

Investments

Fixed Assets-at Cost-

Construction-Country Elevators Gee1ong Terminal Sunshine Sub-Terminal

Equipment and Plant­Country Elevators .. Gee1ong Terminal .. Sunshine Sub-Terminal

Marmalake No. 1 Emergency Store Motor Vehicles, Office Furniture and Equipment Freehold Land and Buildings-City

Horizontal Emergency Storages .. National Debt Sinking Fund-Cash in Fund

Current Liabilities­

Sundry Creditors

Loans-Government of Victoria Public ..

Reserves and Funds-

Cancelled Securities Reserves­

National Debt Sinking Fund Debentures and Inscribed Stock Matured Public Loans

Depreciation Reserve Fund Marmalake No. I Emergency Storage Reserve Office Building Reserve Insurance Reserve Fund General Reserve Fund .. Debentures and Inscribed Stock Sinking Fund Renewals Reserve Fund

$

.. 19,127,232 3,615,488 1,467,890

31.10. 73.

$

756,527 205,498

--~ 24,210,610

5,226,525 1,684,322

199,406

4,840 370,638 613,205

7,110,253

$

962,025

18,368,254

988,683 ---- 32,309,546

1,526,359

1,819,914 3,503

53,463,242

519,512

26,999,976 ---~ 28,526,335

633,789 1,468,884 1,551,769

ll,074,450 4,840

629,000 585,674

2,716,315 1,271,488 1,582,969

Provision for Long Service Leave and Retiring Gratuities 253,423

Superannuation Fund ..

Reserve Fund Contribution for Renewal of Assets Suspense Accounts-Rebagging Wheat Revenue Account-Net Accumulation

919,611 ---- 22,692,212

1,263,821 59

461,303

53,463,242

34

Reserves and Funds of the Board totalled $22,692,212 at 31st October, 1973, compared with $20,646,165 at the close of the previous year.

Particulars of the operations of the Renewals Reserve Fund for the year are as follows :-

Balance 1st November, 1972

Add-Appropriated from Accumulated Funds Interest on Investments Appropriated

Less-Renewals and Improvements-Electrification, Country Silos and Improvements to Behlen sheds ..

Balance 31st October, 1973

$

1,361,745

218,685 64,246

1,644,676

61,707

1,582,969

35

GREYHOUND RACING CONTROL BOARD.

The Board is constituted under the provisions of Section 69 (1) of the Racing Act 1958. Its functions are to control the sport of greyhound racing and to exercise such powers, functions and duties as are conferred on it by or under the Racing Act or any other Act.

Its principal sources of income are an administration grant from the Totalizator Agency Board made in accordance with that Board's financial scheme under Section 116r of the Act, registration fees and a statutory contribution of three per cent. of the gross revenue of registered Greyhound Racing Clubs.

Following is a statement of income and expenditure for the years ended 31st December, 1972 and 1973 :-

1972.

$

31,996 101,020 23,994

5,730

162,740

6,959 41,255 25,973 11,236 17,328 6,025

108,776

53,964

Registrations Totalizator Agency Board-Grant Statutory Contributions by Clubs Other Income

Total Income

Income.

Expenditure.

Board Members-Salaries and Expenses Supervision Fees-Stewards Salaries Publication of Journal Office Expenditure Miscellaneous

Total Expenditure

Surplus

1973.

$

36,305 100,446 26,272 10,292

173,315

7,872 57,163 34,259 13,646 19,676 8,641

141,257

32,058

At 31st December, 1973, the balance of the Greyhound Racing Control Board Fund was $114,340 and was represented by:-

Investments Fixed Assets

Less Excess of Current Liabilities over other Current Assets

$

110,000 7,630

117,630 3,290

114,340

36

HOME FINANCE TRUST.

The Home Finance Act 1962 empowers the Home Finance Trust to raise money from lending institutions by way of deposit or bank overdraft for the purpose of making housing loans on the security of first or second mortgage. In terms of the Act, the Treasurer may, with the approval of the Governor in Council, execute guarantees in favour of the Commissioners of the State Savings Bank of Victoria or any person or body agreeing to deposit money with the Trust or in favour of any bank providing accommodation by way of overdraft.

The amount so agreed to be deposited or lent at 30th June, 1974, was $29,724,000 compared with $30,400,000 at 30th June, 1973. Of the amount of $29,724,000, a sum of $1,800,000 has been deposited or lent for the purpose of loans by the Trust on the security of second mortgage. Details are :-

The Commissioners of the State Savings Bank or Victoria Other Savings Banks Trading Banks

Insurance Companies .. Other

$ ..

16,310,000 1,150,000

$ 10,624,000

17,460,000 1,290,000

350,000

29,724,000

The liability of the Trust on account of deposits and overdrafts, as shown in the summary of assets and liabilities hereunder, is reconciled below with the total of agreed loans :-

Agreed Loans as above .. Less-Amount repaid to lending institutions

Total liability of Trust to lending institutions

$ 29,724,000

5,909,302

23,814,698

Loans approved by the Trust to borrowers amounted to $41,709,214, of which sum $4,275,890 related to second mortgages. Discharged mortgages, including mortgages on repossessed properties sold under contracts of sale, amounted to $14,255,943. Advances secured by first mortgage at 30th June, 1974, amounted to $20,384,355 (net) and, by second mortgage, to $848,402 (net).

The net surplus for the year on account of transactions relating to first mortgages (Home Finance Fund No. 1) was $65,091. The surplus on account of second mortgages (Home Finance Fund No. 2) was $5,784.

A summary of the income and expenditure of the Trust for 1972-73 and 1973-74 is furnished below. The figures for 1973-74 are subject to audit.

1972-73.

$ 1,521,808 1,435,658

86,150 11,760

642

98,552

7,500 826

1,990 30,000

350

40,666

57,886

Income. Interest Receivable from Mortgagors and on Sales, &c. Less Interest Payable to Depositors (including Overdraft Interest)

Insurance Commission Other

Fees-Members of Trust Printing and Stationery Postage and Telephone Contribution to Treasury Sundry

Operating Surplus .•

Expenditure.*

• Salaries are not charged in the accounts of the Trust.

1973-74.

$ $

1,539,622 1,429,736

109,886 12,267

744

122,897

7,650 1,986 2,070

40,000 316

52,022

70,875

37

Set out hereunder are particulars of the Trust's assets and liabilities as at 30th June, 1973, and 1974.

30.6. 73.

$

24,951,169

4,093,072

1,953,590

878,615

118,620

37,246

123,038

56,263

3,380,000

40

25,573,787

24,921,530

5,906

11,478 572

634,301

25,573,787

Assets.

Current ordinary loans secured by first mortgage

Less repayments by mortgagors

Current ordinary loans secured by second mortgage

Less repayments by mortgagors

Repossessed properties sold under contracts of sale

Less payments of instalments of principal

Arrears-(net) under mortgages and contracts of sale

Sundry Debtors

Cash on Fixed Deposit

Cash on Hand

Liabilities.

Deposits by lending institutions and accommodation by way of

overdraft-repayment guaranteed by Treasurer of Victoria

Prepayments by mortgagors of valuation and inspection fees

Mortgagors' equities in properties repossessed and sold .. Sundry Creditors ..

Accumulated Surplus-Home Finance Funds Nos. 1 and 2

30.6. 74.

$

24,647,266

4,262,911

1,614,403

766,001

118,620

48,628

$

20,384,355

848,402

69,992

92,879

24,657

3,120,000

40

24,540,325

23,814,698

10,256

9,383 813

705,175

24,540,325

38

HOSPITALS SUPERANNUATION BOARD.

This Board was constituted under the provisions of the Hospitals Superannuation Act 1965. It is responsible for the administration of the Hospitals Superannuation Fund established under this Act for the purpose of providing, on a contributory basis, a scheme of superannuation for employees of participating hospitals and other institutions.

In addition to allowing for future admissions to the scheme, the Act provided for the transfer of the various institutions participating in the Institutional Staff Superannuation Fund, formerly administered by the Victorian Hospitals' Association, to the scheme administered by the Board. The assets of the former scheme were transferred to the Hospitals Superannuation Fund on 1st July, 1966, the day fixed as the " Fund Opening Day ".

The Board is further empowered, subject to the consent of the Governor in Council, to assume responsibility for the administration of superannuation schemes in force at institutions which are admitted as participating institutions in terms of Part Ill. of the Act.

The annual audit of the Fund is conducted by my officers pursuant to the provisions of the Act. A continuous audit is carried out by a firm of chartered accountants appointed for that purpose by the Board. The audits are, by arrangement, complementary in character.

At the date of preparation of this Report, final figures of the Fund for 1973-74 were not available to me, as the computer processing of the accounts of members of the Fund was not complete.

Summaries of the transactions of the Management Account within the Fund during 1972-73 and an abridged Balance Sheet of the Fund as at 30th June, 1973, are given below:-

MANAGEMENT ACCOUNT.

ADMINISTRATION.

Income-Management Proportion of Contributions .. Commission Distribution of Earnings

Expenditure-Salaries and Wages Provision for Long Service Leave Staff Superannuation Fees-Actuarial, audit, medical, &c. Office and Miscellaneous Expenses Depreciation Transfer to Accumulated Fund

AccUMULATED FUND.

Balance, 1st July Transfer from Administration

Less-Purchase of Office Furniture, &c. Alterations and Renovations to Board's Premises

Balance, 30th June, 1973

MANAGEMENT RESEIWE ACCOUNT.

Balance, 1st July Transfer from Welfare Account

Balance, 30th June, 1973

$

1,135 2,527

$

193,887 6,758

18,374

219,019

93,902 3,494 2,504

32,674 22,976

5,507 57,962

219,019

76,375 57,962

134,337

3,662

130,675

163,880 8,441

172,321

39

BALANCE SHEET, 30TH JUNE 1973.

Investments­

Life Offices

Assets.

Semi-Government Stock (Face Value $1,133,500) .. Mortgages and Members' Loans Deposits-Short Term Money Market

Other Assets-

Cash at Bank and on Hand Accruals and Outstandings Terminal Benefit Subsidies-Class "A" Institutions Office Furniture, Equipment, Fittings and Motor Vehicles

(less Depreciation) ..

Members' Accounts­

Approved Scheme Provident

Accounts and Liabilities.

Supplementary Contributions Non-contributing

Beneficiaries' Accounts­

Deferred Benefits Disability Benefits

Reserves­

Welfare General Income Stabilization

Other Accounts and Liabilities­

Annuities Insurance Account Terminal Benefits-Class " B " Institutions Mortgage Indemnity Fund Sundry Benefits, etc. Outstanding Part IV A Schemes Undistributed Surplus

Management-

Sundry Creditors and Accrued Expenses Provision for Long Service Leave Capital Reserve Accumulated Fund

$

16,511,213 1,122,089 3,353,174

230,000

16,412,933 1,891,711

768,360 290,727

216,458 60,659

200,000 9,545

109,149

25,625 392,238 350,810

6,312 214,774 22,078 4,657

15,326 13,000 41,076

172,321 130,675

$

21,216,476

30,370 69,820 10,172

21,596

21,348,434

19,363,731

277,117

318,694

1,016,494

372,398

21,348,434

40

LATROBE V ALLEY WATER AND SEWERAGE BOARD.

Functions of the Latrobe Valley Water and Sewerage Board include the maintenance of adequate supplies of water and the disposal of industrial and domestic waste.

Expenditure on capital works has been mainly from State loan moneys. Treasury records show that the total advances to the Board by the State to 30th June, 1974, amounted to $18,993,494.

During the year, the Board, as agent of the Environment Protection Authority, incurred operating expenditure of $205,253 and capital expenditure of $101,040. This expenditure was recouped by the Authority.

Fees for Environment Protection Authority licences issued by the Board, $25,619, were remitted to the Treasury.

The Board's Revenue Accounts for the past two years are compared:-

1972-73. $

5,493 1,535

39,457 90,060

2,917

139,462

127,034 67,424 15,576 3,981

11,358

225,373

85,911

$

880,699 409,594 148,972

96,639

1,535,904 ----

419,913 76,667

294,867 282,740 148,972

36,750

1,259,909

275,995 85,911

190,084

DISPOSAL AREA REVENUE ACCOUNT.

Income-Rental, Board Properties Sundry Profit-Cattle Trading Account Profit-Sheep Trading Account State Electricity Commission-Contribution to Pasture Depreciation

Expenditure-Farm Operation and Maintenance Interest on Loans and on Overdraft Administrative and Sundry Expenses Maintenance Farm Dwellings Provision for Depreciation

1973-74. $ $

6,410 2,145

36,637 80,378

142,922 68,778 17,729 2,665

11,358

125,570

Deficit on Disposal Area Account transferred to General Revenue Account

243,452

117,882

GENERAL REVENUE AccoUNT. $ $

Income-Water Charges 959,621 Disposal Charges 461,887 Recoups from Environment Protection Authority 306,293

Licence Fees 25,619

Other 65,153

1,818,573

Expenditure-Interest on Loans 415,337

Depreciation 77,183

Maintenance and Operation of Works 304,205

Overhead Services 322,834

Environment Protection 306,293

State Treasury-Licence Fees .. 25,619

Other Expenses 19,250

1,470,721

Surplus for year 347,852

Deficit on Disposal Area Revenue Account 117,882

Net surplus for year 229,970

41

The Board's balances at 30th June, 1973 and 1974, are summarized hereunder :-

30.6.73.

$

13,634

121,397

253,078

Current Assets-

Stores, Tools, &c.

Livestock, Wool and Ensilage on Hand

Debtors and Prepayments, &c.

2,418,822 Investments

16,949,960

276,783

491,413

109,849

17,828,005

1,756,323

16,071,682

523,709

19,402,322

436,435

3,779

62,242

16,959,272

59,500

17,018,772

155,001

5,000

505,567

992,950

136,000

22,700

63,876

19,402,322

Fixed Assets-

Works (including Works in Progress)

Plant and Equipment

Land, Buildings, Residences

Office and Laboratory Equipment ..

Less Depreciation

Intangibles-

Interest on Works during Construction

Current Liabilities-

Bank Overdraft

Sundry Creditors

Long Service Leave Provision

Staff Training Provision

Loan Liability-

State of Victoria ..

Rural Finance and Settlement Commi&.;ion ..

Excess of Assets over Liabilities-

Capital Expenditure borne by the State

Grant by Government of Victoria

Appropriation for Plant Renewals, &c.

Loans Redeemed Reserve

Capital Facility Reserve

Plantation Reserve

Accumulated Surplus

30.6. 74.

$ $

12,684

139,395

160,185

17,033,562

299,031

491,413

113,249

17,937,255

1,974,296

146,474

4,790

79,253

5,000

16,925,718

40,250

155,001

5,000

548,746

1,113,675

136,000

45,300

145,521

312,264

2,551,796

15,962,959

523,709

19,350,728

235,517

16,965,968

2,149,243

19,350,728

42

LOCAL AUTHORITIES SUPERANNUATION BOARD.

The Board operates under the provisions of the Local Authorities Superannuation Act 1958 and is responsible for the administration of separate schemes to provide retiring allowances and disability benefits for permanent employees of local governing bodies. The salient features of the various schemes are given below :-

Insurance.-Vnder this scheme an employee was required to effect, with an approved company, a policy of endowment insurance, the amount of the policy being that obtainable for an annual premium equivalent to 7 per cent. of the salary of the employee. No new policies are being written under this scheme as it has been superseded by the Benefit Contracts scheme.

Provident Fund.-The purpose of this Fund was to provide a lump sum, payable to or in respect of any employee upon his withdrawal, retirement or prior death where he was ineligible, in whole or in part, to contribute to the Benefit Contracts scheme. The annual contribution payable in respect of any such employee was 7 per cent. of so much of his salary as was subject to the Provident Fund scheme. Contributions are no longer being received into this Fund.

Benefit Contracts.-The Board is empowered to enter into contracts with eligible persons to provide benefits by way of superannuation, annuities, retiring allowances or payments on death. To date, benefits provided have been by way of lump sum payment upon withdrawal, retirement or death. Except where an agreement has been made between an employee and an authority for a rate in excess of 7 per cent., the annual premium payable in respect of each permanent employee is 7 per cent. of his salary. Benefits are paid in accordance with tables contained in Regulations under the Act.

Disability Fund.-Under this scheme, employing authorities are required to make contributions equal to 1· 75 per cent. of the salaries of eligible employees. The Board is authorized to make payments to a disability beneficiary of such amounts and at such times as it decides.

Premiums and contributions are payable annually in advance by the employing Authority, which is then entitled to recover from each employee, by instalments over the ensuing year, one-half of the amount paid on the employee's behalf or such lesser proportion as is mutually agreed.

Administrative costs of the Board are met from the Management Account, the income of which is derived from allocations from the Benefit Contracts Account and the Disability Fund, and from interest on investments, rent and computer bureau fees.

The accounts for the year ended 28th February, 1974, are compared hereunder with those for the previous year.

INSURANCE AccoUNT.

1972-73. 1973-74.

Receipts. $ $

Balance 1st March 1,579 3 Surrender Values 1,127 4,833 Death Claims 2,129 1,065 Matured Policies 5,836 11,474 Other 3

10,674 17,375

Payments.

Death Claims 2,129 1,065 Matured Policies 7,415 11,474 Surrender Values 1,127 4,833 Other 3 Balance at end of year 3

10,674 17,375

Balance 1st March Interest on Investments Investments Redeemed ..

Death Claims Resignations and Retirements .. Additional Interest Investments .. Balance at end of year

43

PROVIDENT FUND.

Receipts.

Payments.

The position of the Provident Fund at 28th February,

Contributors' Credits Unallotted Interest Sundry Creditors

Represented by­Cash .. Investments Sundry Debtors Accrued Interest

Contract Premiums Interest on Investmeuts

Death Benefits Withdrawal Benefits Retirement Benefits Contribution to Administration Other

Surplus

BENEFIT CONTRACTS ACCOUNT.

Income.

Expenditure.

1972-73.

$

10,142 178,354 558,552

747,048

19,680 432,555

9,813 268,000 17,000

747,048 --·-

1973 and 1974, was :-

1973.

$ .. 2,747,558

240,392 18,026

3,005,976

17,000 .. 2,924,116

2,362 62,498

3,005,976

1972-73.

$

6,309,102 2,148,683

8,457,785

523,862 .. 1,456,042

865,236 496,961

1,910

3,344,011

5,113,774

1973-74.

$

17,000 171,744 285,649

474,393

19,080 409,796

8,614 35,000 1,903

474,393

1974.

$ 2,484,142

236,684 13,820

2,734,646

1,903 2,673,220

59,523

2,734,646

1973-74.

$ 7,477,369 2,583,276

10,060,645

799,303 1,977,998

939,653 598,439

816

4,316,209

5,744,436

44

As at 28th February, 1973 and 1974, the funds of the Benefit Contracts Account amounted to $34,506,281 and $40,250,717 respectively, and were represented by-

1973. 1974.

$ $ Investments .. 34,572,182 40,727,185 Less Mortgage Reserve Account 10,911 17,854

34,561,271 40,709,331 Less Excess of Current Liabilities over Other Assets 54,990 458,614

34,506,281 40,250,717

DISABILITY FUND AccoUNT.

The operations of the Account for the years ended 28th February, 1973 and 1974, are detailed hereunder :-

Contributions Withdrawal Benefits Investment Income

Contributions Refunded .. Benefits Contribution to Administration

Surplus

Income.

Expenditure.

1972-73.

$ 1973-74.

$

940,019 1,128,635 274,685 230,699

83,196 133,198

1,297,900 1,492,532

22,809 570,050 61,393

35,120 455,953

75,710

654,252 566,783

643,648 925,749

As at 28th February, 1973 and 1974, the funds of the Disability Fund Account amounted to $969,227 and $1,894,976 respectively, and were represented by :-

Investments Less Excess of Current Liabilities over Other Assets

MANAGEMENT ACCOUNT.

Interest on Investments .. Contribution to Administration­

From Benefit Contracts Account From Disability Fund

Rent Computer Bureau Fees ..

Income.

1973.

$

1,126,409 157,182

969,227

1972-73.

$ 4,852

496,961 61,393

9,764 273,284

846,254

1974.

$

2,180,860 285,884

1,894,976

1973-74.

$

19,962

598,439 75,710

9,314 296,923

1,000,348

Board Members' Fees Salaries

45

Expenditure.

Hire of Computer and other Office Machines Other Administration Charges Rates, &c. Depreciation

Surplus

1972-73.

$ 1,265

259,311

218,849

131,490

10,568

27,214

648,697

197,557

1973-74.

$ 2,070

324,701

207,625 147,685

13,911

24,771

720,763

279,585

As at 28th February, 1973 and 1974, accumulated funds of the Management Account were:-

Accumulated Funds Asset Replacement Reserve

Represented by­

Investments Freehold Property Furniture, Equipment and Office Machines Motor Vehicles

Plus Excess of Current Assets over Current Liabilities ..

1973.

$ 816,908 178,837

995,745

55,875

571,900

51,759

15,573

695,107

300,638 ---

995,745 ----

1974.

$ 1,058,172

202,077

1,260,249

357,067

561,862

43,924

12,995

975,848 284,401 ---1,260,249 ----

46

MARKETING BOARDS.

The Marketing of Primary Products Act 1958 provides the machinery under which Boards may be constituted for the marketing of those primary products which, by proclamation of the Governor in Council, have been declared commodities under and for the purposes of the Act.

The legislation specifically provides that a Board so constituted shall not be deemed to represent the Crown for any purpose whatsoever, and thus no liability can accrue to the State as a result of the transactions of any such Board.

The accounts of Boards constituted under the Act are subject to audit by the Auditor-General. Comments on and summaries of the accounts of four Boards, namely, the Chicory, Egg and Egg Pulp, Onion, and Tobacco Leaf Marketing Boards follow.

With reference to the Oats Board, the proclamation of 23rd June, 1970, declaring oats to be a commodity for the purposes of the Marketing of Primary Products Act, was revoked with effect from 15th November, 1972. The affairs of the Board are currently in the hands of a liquidator, and are in the process of being wound up.

The Citrus Fruit Marketing Board was constituted on 19th June, 1973. As from 15th May, 1974, the commodities declared to be subject to the Board, i.e. oranges, mandarins and grapefruit, became duly vested in the Board. At the date of the preparation of this Report, the Board had not completed a season of full operations.

Chicory Marketing Board.

Financial accounts in respect of the pool period ended 31st March, 1974, have been audited. Details of the operation in this and the previous pool are :-1972-73. 1973-74. tons.

126 Total Chicory acquired

$ 19,445 Proceeds from sales 10,613 Chicory Stock on hand

30,058

Applied to:-

208 Freight and Cartage 252 Storage ..

1,617 Salaries .. 1,107 Other Expenses

26,778 Payments to Growers 96 Proceeds held

30,058

The Board's balances are summarized hereunder :-31.3.73.

Assets-$ 1,484 Cash at Bank

11,003 Stock on Hand (1972 Pool) 1,487 Sundry Debtors

197 Plant (at Cost less Depreciation)

14,171

Liabilities-573 Sundry Creditors

10,285 Reserve Fund 3,313 Pool Balances

14,171

tons.

53

$

9,617

9,617

78

287 129

3,772 5,351

9,617

31.3.74.

$ 6,296

10,725 1,837

18,858 ---

1,051 9,812 7,995

18,858

47

Egg and Egg Pulp Marketing Board.

This Board administers the marketing of eggs and egg products in Victoria. It operates grading floors in Melbourne and Ballarat in addition to a number of receiving and selling depots which are situated in both metropolitan and country areas. Grading and selling operations are also conducted on behalf of the Board by its authorized agents, producer agents and distributors. Pulp is manufactured by the Board in its factories in Melbourne and Bendigo.

Pursuant to the provisions of the Poultry Levy (Collection Arrangement) Act 1965, the Board is responsible for the collection of a hen levy on behalf of the Commonwealth. An amount of $3,267,198 (subject to final adjustment) was made available by the Commonwealth to the State, under the provisions of the Commonwealth's Poultry Industry Assistance Act 1965, for the assistance of the poultry industry in respect of the 1973-74 pool period. As in the previous pool period, the substantial amount of Commonwealth assistance was related to the large volume of eggs and egg products exported.

The following statement shows the operations of the pools during the last two accounting periods:-

1972-73.

$ 24,296,212

911

24,297,123 3,084,937

*21,212,186

19,724,167 138,270

t3,292,264

23,154,701

Dec.134,l33

23,020,568 3,749,879

26,770,447 4,961,607

21,808,840

596,654

248,289 23,375

271,664 116,589

155,075

751,729

Advances to Producers (Current production) Purchases of Eggs and Pulp from other sources

Less Producers' Contributions on Account of Local Marketing Charges

Net Advances to Producers

Disposal of Eggs-

Sold in Shell on Local Market Sold in Shell on Overseas Market Converted to Egg Products and Sold

Increase or Decrease in Stock on Hand

Total Value of Disposals Add-Distribution from Poultry Industry Trust Fund

Less-Grading, Selling, Manufacturing and Administrative Costs

Net Proceeds of Pool

Net Pool Surplus Net Pool Deficit

Accumulated Surplus brought forward Add Adjustments not applicable to current Pool Account (Net)

Less Transfer to Reserve Fund ..

Accumulated Surplus at close of Pool Period

1973-74.

$ $ 29,693,671

29,693,671

2,530,957

24,990,769 130,018

t3,426,842

28,547,629 Inc. 248,358

28,795,987 3,267,198

32,063,185

5,460,101

751,729 91,242

842,971 106,361

*27,162,714

26,603,084

559,630

736,610

176,980

" Does not take account of amounts payable by producers in respect of the hen levy imposed by the Commonwealth, t Subject to adjustment on final realization of export sales from Australian Egg Board.

48

The following is a statement of the Board's balances at 29th June, 1974. Comparative figures at the end of the preceding pool period are also given.

The Board's funds were-30. 6. 73.

$ 1,015,272

93,494 468,131

751,729

2,328,626

Reserve Fund Capital Profit-Sales of Land Surplus Distribution 1947-48 (ex Commonwealth)

Accumulated Surplus-1972-73 1973-74

29.6. 74.

$ 1,121,633

93,244 468,131

176,980

1,859,988

The Board's funds were represented by net assets as detailed hereunder :-30.6. 73.

$

385,653

444,853 135,790 37,802

618,445

719,998 *276,997

123,167

1,120,162 30,000

1,090,162

2,094,260

656,046

64,952 30,630

103,895

855,523

1,238,737

122,340 375,228 525,896 23,285 43,140

1,089,889

2,328,626

Current Assets-Cash on Hand and at Bank Short Term Deposit-Commonwealth Banking Corporation Stock on Hand-

Eggs and Egg Products at valuation Packing materials at cost Supplies at cost or valuation

Debtors­Trade Australian Egg Board Amount due under Contracts of Sale

Less Provision for Doubtful Debts

Less Current Liabilities­Creditors Reserve Bank of Australia Australian Department of Agriculture (Hen Levy) .. Refund due to Poultry Industry Trust Fund Provision for Employees Long Service Leave,

Annual Leave and Sick Pay

Working Capital

Fixed Assets-(at cost less depreciation) Freehold Properties Leasehold Properties Plant and Equipment .. Motor Vehicles Office Machinery and Equipment

• Subject to adjustment on final realization of export sales.

29.6. 74. $ $

933 100,000

693,211 148,150 54,632

895,993

781,702 *418,677

38,333

1,238,712 30,000

1,208,712

2,205,638

727,060 21,519

151,311 317,978

171,044

1,388,912

816,726

119,737 358,762 447,545

70,702 46,516

1,043,262

1,859,988

As in previous pool periods, the results of the year's operations have been affected by the valuation of stocks of eggs and egg products. The asset " Eggs and Egg Products " shown in the Balance-sheet at $693,211 has been valued at current local market prices after providing for storage and other applicable charges and after deducting an additional and arbitrary amount of $100,000 from the valuation of the stocks of egg products. This arbitrary reduction has resulted in the understatement of the value of stocks on hand, compared with current local market prices, as at 29th June, 1974, and has the effect of providing a reserve of $100,000 not incorporated in the accounts.

49

Pursuant to the provisions of the Egg Industry Stabilizatirm Act 1973, proclaimed to operate from 3rd April, 1974, the Poultry Farmer Licensing Committee and the Poultry Farmer Licensing Review Committee were constituted. The Licensing Committee has the power to grant licences which fix hen quotas in respect of egg production and may also grant permits to poultry farmers to keep hens for special purposes. The Review Committee is empowered, after hearing appeals, to vary decisions of the Licensing Committee.

All moneys received by the Licensing Committee are payable to the Egg and Egg Pulp Marketing Board when requested by the Boa1d. The remuneration and allowances payable to the members of the two Committees together with all other costs of administration are met from the funds of the Board. To 30th June, fees received on account of applications for licences amounted to $7,495 and expenditure incurred in the administration of the Act totalled $19,434.

Onion Marketing Board.

Details of operations during the last two seasons, i.e., those ended on the 15th November, 1972, and 15th November, 1973, are given in the statement hereunder. The figures for the latter season are provisional only and are subject to audit.

---------------------------------· Pool.

-1972. 1973.

tons. tons.

Total Onions acquired . . . . . . .. . . . . 11,611 5,747

$ $

Proceeds from sales . . . . . . . . . . .. 772,599 610,664

Administration and marketing expenses . . . . . . .. 122,861 82,518

Payments to growers . . . . . . . . .. . . 665,820 555,824

The average return per ton to the growers was $57.34 in 1972 and $96.72 in 1973.

Tobacco Leaf Marketing Board.

A summary of the financial operations for the accounting periods ended 31st March, 1973, and 1974, is set out hereunder.

1972-73. 1973-74. $ $

15,141,527 Gross proceeds from sales of tobacco leaf 14,650,944

15,141,527 14,650,944

Applied to :-256,861 Broker's Commission 256,467

65,641 Freight 67,621 9,764 Rehandling Charges 20,697

63,399 Commonwealth Tax Levy 63,630 209,536 Insurance 194,612 227,124 Marketing Board Charge 219,096

363 Other Expenses 1,314 1,109,777 Growers' Liens, Orders, &c. 1,118,689

13,199,062 Net Proceeds to Growers 12,708,818

15,141,527 14,650,944

8588/74.--4

50

The Board's charge of $219,096 against the sales proceeds for 1973-74, together with other receipts amounting to $11,380, was expended as shown hereunder. The comparable figures for 1972-73 are also shown.

1972-73.

$ 47,791 12,570 15,846 8,565

12,057 6,531

12,515 42,003 75,060

232,938

Board staff-salaries, superannuation, long service leave Travelling expenses . . . . Board members-allowances, travel and air fares . . . . Expenses of Tobacco Quota Committee and Tobacco Quota Appeals Tribunal Appraisers' fees and allowances Depreciation Industry surveys General and Administrative Expenses .. Surplus

The Board's balances are summarized hereunder :

31.3 .1973. $

30,323

3,774 . . 25,000 6,172 9,434

105,358 285,191

465,252

25,965 64,257

299,970 75,060

465,252

Assets-Cash at Bank and on Hand Loan to Tobacco Industry Leaf Finance Agency Advances Sundry Debtors .. Advance Insurance Premium Payment .. Office Furniture and Equipment (Cost less depreciation) Motor Vehicles and Plant (Cost less depreciation) .. Land and Buildings .. 1970, 1971 and 1972 Surplus Leaf-Processing Costs Temporarily

Capitalized

Liabilities-Sundry Creditors Insurance Equalization Provision for Long Service Leave Growers' Funds Brought Forward

Add-surplus for year

$

366,663 68,957

1973-74. $

60,312 10,497 19,337 10,097 13,550 6,469 4,333

36,924 68,957

230,476

31.3.1974.

$

2,725 80,000 2,908

664 25,000

3,293 10,492

105,221

289,338

519,641

76,661 7,360

435,620

519,641

51

MELBOURNE AND METROPOUTAN BOARD OF WORKS.

The audit of the books and accounts of the Board for the year ended 30th June, 1974, has been completed and the statements of accounts for the year have been certified by me.

The Board's Revenue Accounts for the past two years are compared hereunder:-

1972-73.

$

30,959,582

36,476,840

6,311,305

73,747,727

588,597

358

1,976

1,553

592,484

74,340,211

10,328,240

15,080,768

36,977,606

62,386,614

11,953,597

272,541

282,616

871,186 341,380

12,578

1,780,301

150,152

49,111

1,979,564

Rates and Charges-

Water Supply

Sewerage

Drainage and Rivers ..

Fann-

Gross profit on cattle ..

Gross profit on sheep ..

Rent

Sundry Trading Operations

Gross loss on sheep

Gross Revenue

Working Expenses­

Management ..

Maintenance ..

..

Interest (Including overseas exchange) . ,

Gross Surplus

General Expenditure-

Loan Flotation Expenses

Staff Retiring Gratuities

Contributions to Superannuation Fund .. Depreciation-Furniture and Fittings,

Works Temporarily Capitalized, &c. .. Provision for Statutory Expenditure

Statutory Expenditure-

Fees for va1uations

Contributions to Municipalities

Carried forward

$

34,926,190

46,ll3,156

8,080,023

786,665

2,580

606

789,851 31,027

383,841

376,418

1,639,602

264,211

203,695

61,689

1973-74.

$

89,119,369

758,824

. . 13,575,469

. . 18,584,625

.. 42,026,9ll

2,664,072

265,384

.. 2,929,456

89,878,193

74,187,005

15,691,188

15,691,188

1972-73.

$ .. 1,979,564

987,783

1,882,659

3,616,380

5,000,000

11,486,822

13,466,386

1,512,789

1,512,789

52

Brought forward

Provisions and Transfers to Reserves-

Renewals Fund ..

Sinking Fund

Loans Redeemed from Revenue Reserve

General Reserve

Expenditure, &c. from Gross Surplus

Net Surplus

Net Deficit

1973-74.

$ $

2,929,456

1,109,446

2,022,883

4,124,635

5,000,000

12,256,964

Less-Transfer to Rates Equalization Fund-Metropolitan General Fund

Add-TransferfromRatesEqualizationFund-MetropolitanGeneralFund

$

15,691,188

15,186,420

504,768

504,768

Advice received from the actuary during 1972-73 showed that the Board had in previous years provided a total of $1,386,461 in excess of the actuarial amount required to meet its liabilities for superannuation. An adjustment of $500,000 was effected in 1972-73 and the adjustment of the remaining $886,461 has been effected in the current year.

In addition to the yearly contributions to Renewals Fund, Sinking Fund and Loans Redeemed from Revenue Reserve, the Board also transferred $5,000,000 to the General Reserve. This represents the amount appropriated from revenue for capital works for water supply, drainage and sewerage.

The following summary shows the variations in the valuations of properties rateable to the Board and the annual collectable revenue over the past three years :-

1

Revenue from Water I Revenue from Revenue from I Assessment

Financial Year. Metropolitan Drainage and Rivers Valuations Rates and Charges. i General Rate Rate and i (Net Annual Values). and Other Charges. Other Charges.

$ $ $ $

1971-72 . . . . .. 26,933,761 34,383,338 6,157,040 544,527,446 1972-73 .. . . . . 30,959,582 36,476,840 6,311,305 563,208,142 1973-74 . . .. . . 34,926,190 46,113,156 8,080,023 734,132,476

The aggregate of net annual values on which the rates were assessed continued to rise as a result of supplementary valuations.

Net interest charges continued to be a heavy burden on the Board's revenue, being $5,049,305 higher than the previous year. However, the percentage of rates and charges absorbed by interest fell to 47·16 as compared with 50·14 in 1972-73.

Interest charged included amounts credited to the Board's several funds as follows-Renewals Fund, $505,313 ; Sinking FundsJ $2,609,992 ; and Superannuation Fund, $547,794.

53

The main credits during the year to Special Funds and the balances of those; Funds at 30th June, 1974, are shown hereunder :-

Contributions from Revenue. Interest Credited.

Total Revenue Additions to

Fund. Credit Balance at 30tb June, 1974.

$ $ $ $

Sinking Funds .. . . . . .. 2,047,077 2,609,992 4,657,069 56,860,914

Loans Redeemed from Revenue Reserve .. 4,124,635 .. 4,124,635 24,489,493

Renewals Fund . . . . .. 1,109,446 505,313 1,614,759 23,998,588

Superannuation Fund .. . . . . 1,744,257 547,794 2,292,051 14,131,874

9,025,415 3,663,099 12,688,514 119,480,869

In addition to the Funds listed above, there are other Provisions and Reserves with credit balances to the sum of $221,753,951 as at 30th June, 1974. Thus, the sum of the Board's Funds and Reserves as at that date was $341,234,820. Of this sum, $70,444,364 was invested and $270,790,456 was utilized in the Board's undertaking.

Town Planning, Metropolitan Highways, &c.-The Metropolitan Improvement Rate remained unchanged at I . 4c per dollar and was assessed on properties with an aggregate net annual value of $761,261,413 compared with $585,916,021 in 1972-73.

Details of the Metropolitan Improvement Fund Revenue Account for the past two years are given below :-

1972-73. $

9,021,503

1,644,222 1,215,549

64,809 24,194

95,097 75,000

173,912

3,292,783

5,728,720

4,440,510 1,451,548

5,892,058

163,338

163,338

Revenue-Metropolitan Improvement Rate and Sundry Income

Lf'ss Expenditure-­Management Maintenance Interest .. Contribution to Sinking Fund-Metropolitan Improvement

Fund .. Proportion of Statutory and General Charges . . . . Contribution to Highways and Bridges Maintenance Reserve Contribution to Melbourne Underground Rail Loop

Authority

Less Appropriated for Works­Reserved Land and Acquisitions Road and Foreshore Works

Net Surplus Net Deficit . . . .

Less-Transfer to Rates Equalization Fund­Metropolitan Improvement Fund

Add-Transfer from Rates Equalization Fund­Metropolitan Improvement Fund

1973-74. $ $

11,760,271

2,144,250 1,109,726

70,455

24,194 157,781

305,420

3,811,826

7,948,445

6,055,735 114,373

6,170,108

1,778,337

1,778,337

At 30th June, 1974, the credit balances in the accounts of the Board relating to its plan· ning and highways functions were:-

Loan Liability-Loan 1477 Sinking Fund-Metropolitan Improvement Fund .. Contributions to Works-Metropolitan Improvement Fund General Reserve-Metropolitan Improvement Fund Rates Equalization Fund-Metropolitan Improvement Fund

$

800,000 428,553

84,521,838 65,365,269 3,711,826

154,827,486

S4

These balances were represented by the following assets or capitalized expenditure :-

Metropolitan Improvement Fund- $ $ Cash at Bank .. o/o 47,936 Amount due to Metropolitan General Fund 1,838,133

---o /o 1,886,069

Securities-Short Term . . 8,104,779 Arrears-Rates and Charges (estimate)

Sundry Debtors-Land Sales .. Rent Accrued Interest

2,562,065 56,007 37,867

480,716

2,655,939 Reserved Land-held temporarily under Section 57, Act No. 6849 Compensation under Section 42, Act No. 6849

. . 30,026,877

Planning, Highways and Foreshore Works-Capitalized Expenditure ..

1,303,461 ---- 31,330,338

. . ll4,14l,783

154,827,486

Included in the total of $84,521,838 in Contributions to Works Reserve-Metropolitan Improvement Fund is an amount of $60,038,116 which represents the contributions made by the Treasurer of Victoria from the Roads (Special Projects) Fund in connexion with expenditure by the Board on the fol1owing Special Projects :-

To 30.6.73. 1973-74. Total.

$ $ $ Special Project No. 1-St. Kilda Junction .. 7,572,407 7,572,407

" .. No. 3-South Eastern Freeway 13,233,097 55,273 13,288,370

" " No. 4-Tullamarine Freeway 13,878,839 28,543 13,907,382 .. .. No. 23-St. Kilda Road Underpass .. 2,189,562 17,238 2,206,800

" " No. 24-Eastern Freeway-Section I .. 13,109,305 6,834,366 19,943,671

" " No. 25-City Ring Road-Western Section 781,345 1,326,035 2,107,380

•• " No. 26-City Ring Road-Eastern Section 303,072 303,072

" " No. 34-Median Guard-South Eastern Freeway 106,610 106,610

" " No. 37-Punt Road Widening 577,506 577,506 .. " No. 38-F. 3 to F. 5 4,800 4,800

" , No. 39-Mt. Alexander Road to Yarra River .. 20,118 20,118

51,174,237 8,863,879 60,038,116

In addition to the contributions made by the Treasurer of Victoria from the Roads (Special Projects) Fund, further contributions were received by the Board from the Commonwealth Aid Roads Account for construction of urban arterial roads :-

To 30.6.73. 1973-74. Total.

$ $ $ Eastern Freeway-Section l 6,446,519 5,895,285 12,341,804 City Ring Road-Southern Section 1,272,960 342,048 1,615,008 City Ring Road-Western Section 761,879 1,803,238 2,565,117 Widening High Street, St. Kilda .. 5,168,141 2,540,625 7,708,766 Eastern Freeway to Burke Road .. 200,345 36,482 236,827

13,849,844 10,617,678 24,467,522

55

A.ssets and Liabilities and Fwtdr.-The statement hereunder shows the Assets and Liabilities and Funds of the Board at 30th June, in each of the past two years:-

1973.

$

117,682 159,386

1,116,109 47,630,000 4,723,429 4,779,228 3,940,165

476,239

25,757,351 1,276,321

89,975,910

92,406,496 2,139,357

283,656,946 393,715,553 45,215,073 33,144,815

850,278,240 24,482,738

825,795,502 6,802,068 2,360,187

790,194

835,747,951

12,091,600 2,999,170

15,090,770

940,814,631

661,157

6,186,952 17,542,041

24,390,150

Current Assets-

Cash at Bank-Metropolitan Improvement Fund .. Cash at Bank-Special Account Advances to Contractors, &c. .. Securities-Short Term Arrears of Rates and Charges Sundry Debtors Stores and Materials on Hand .. Livestock on Hand

Reserved Land-Metropolitan Improvement Fund-Acquired Land Compensation for loss on sales

Deferred Charges-Distributable Expense Variance Account

Fixed Assets-Highways and Bridge Works Foreshore Works Water Supply Works .. Sewerage Works Main Drainage and River Improvement Works Buildings, Water Meters and other items

Less Renewals Fund ..

Plant and Tools Motor Vehicles Furniture and Fittings

Investments-External-Stock-Short Term Securities, &c. Internal-Stock-Melbourne and Metropolitan

Board of Works ..

Total Assets

Current Liabilities-Metropolitan General Fund-Bank Overdraft Metropolitan Improvement Fund-Bank Overdraft Loan Interest, Matured Debentures and Inscribed Stock Sundry Creditors and Deposits

$

91,056 1,235,880

56,701,654 6,865,516 6,891,310 4,571,790 1,188,499

30,026,877 1,303,461

111,972, 113 2,169,670

324,338,260 460,693,796 49,285,488 37,666,954

986,126,281 23,998,588

962,127,693 7,905,304 2,730,353 1,439,006

11,095,820

2,653,090

3,127,907 47,936

6,779,262 23,220,472

1974.

$

108,876,043

727,320

974,202,356

13,748,910

I ,097,554,629

33,175,577

1973.

$

12,769,337 1,676,577

14,445,914

Deferred Liabilities­Superannuation Fund Provision for Furlough

56

1974.

$ $

14,131,874 1,933,114

16,064,988

83,218,691 49,253,478 599,000,582

Loan Liability­Government of Victoria Other 663,924,129

648,254,060

687,090,124

20,364,857 51,818,741 27,633,597 14,516,646

. 114,333,841 737,164

113,596,677 385,104

65,040,281

59,195,162 1,933,489

1,067,316 366,000 207,209 175,000 779,884

1,002,375 1,899,365 1,412,061 6,664,584

253,724,507

Total Liabilities

Excess of Assets over Liabilities represented by-Loans Redeemed from Revenue Reserve Sinking Fund-Metropolitan General Fund General Reserve-Metropolitan General Fund Contributions to Works- Metropolitan General Fund

Less Fixed Assets Retired

Sinking Fund-Metropolitan Improvement Fund Contributions to Works-Metropolitan Improvement

Fund General Reserve-Metropolitan Improvement Fund .. Rates Equalization Fund-Metropolitan Improvement

Fund Rates Equalization Fund-Metropolitan General Fund Exchange Reserve .. Deferred Maintenance Reserve .. Highways and Bridges Maintenance Reserve Insurance Account Sewage Disposal Contributions Reserve Water Supply Distribution Charges Reserve Distributable Expense Variance Account Special Reserve-

Head Office Building .. Contributions to Works

747,142,820

796,383,385

24,489,493 56,432,361 32,926,029 17,647,777

131,495,660 781,583

130,714,077 428,553

84,521,838 65,365,269

3,711,826 1,572,084

366,000

959,116 2,111,661 2,681,960

5,607,904 3,130,956

8,738,860

301,171,244

To be consistent with the method of treatment of Reserves within the Metropolitan Improvement Fund, the Metropolitan General Fund General Reserve was, in 1973-74, separated into a General Reserve and a Contributions to Works Reserve as follows :-

(a) General Reserve-representing assets acquired from the internal revenue resources of the Board.

(b) Contributions to Works Reserve-representing certain assets acquired from funds provided from outside sources and previously recorded in the General Reserve.

The increase of $5,292,432 in the General Reserve-Metropolitan General Fund was accounted for as follows :-

Capital works financed from revenue (appropriation) Livestock revaluation .. National Debt Sinking Fund-Commonwealth Contribution Profit on sale of stores and plant Stocktaking adjustments Contributions for works held pending transfer to other Reserves

Less-Transfer to Special Reserve Variance between standard prices of items purchased for stock and

invoice prices

$

301,028

150,655

$ 5,000,000

597,633 14,125 46,711 16,192 69,454

5,744,115

451,683

5,292,432

57

Loans raised under Section 187 of the Melbourne and Metropolitan Board of Works Act 1958, as amended, may not exceed a maximum of $750,000,000 and at 30th June, 1974, the Board's total liability in respect of such loans stood at $663,124,129. Additional sums have been advanced by way of loan by the Treasurer of Victoria under the provisions of Section 200 of the Act and liability in respect of these advances totalled $83,218,691 at the close of the year. These advances are not subject to a statutory maximum. There were no new raisings under Section 220 of the Act and liability remained at $800,000.

During the year, the Commonwealth made available to the State, by way of loan, the sum of $9,300,000 as assistance in overcoming a backlog of sewerage works. This amount was advanced to the Board by the Treasurer of Victoria under the provisions of Section 200 of the Act, and is included in the amount of $83,218,691 mentioned above.

During the year, from loan moneys and the Board's internal resources, fixed assets were increased by $137,970,255. Major increases were :-

Reservoir and Conduit Construction, &c. Water Supply-extension large mains

, , reticulation, water meters, &c. Construction and Amplification-sewage disposal, &c.-Farm Sewerage-extension mains, purification plants, &c. . .

, Pumping Stations Main Drains and River Improvements-extensions, &c. Metropolitan Main Highways

$ 29,466,517

. . 6,244,383

. . 4,971,569 496,161

60,120,982 4,935,429 4,070,415

19,565,616

58

MELBOURNE AND METROPOLITAN TRAMWAYS BOARD.

The annual audit of the accounts to 30th June, 1974, conducted by my officers pursuant to the provisions of the Melbourne and Metropolitan Tramways Act 1958 is in course and the continuous audit of the accounts, also provided for in the Act, has been carried out for the Board by a chartered accountant. The audits are, by arrangement, complementary in character.

The Board's Revenue Accounts for the past two years are compared :­

Revenue.

Traffic Receipts-Tram .. Bus ..

Miscellaneous-Operating Receipts Non-operating Receipts ..

Received from the Drivers' Licence Suspense Account

Total Revenue

Traffic Operation Costs -Tram .. Bus ..

Maintenance-Permanent Way .. Tramcars .. Buses ..

Expenditure.

Electrical Equipment Buildings and Grounds

Traction Energy Costs Fuel Oil (Buses) .. Bus Licence Fees and Road Tax General Administration and Stores Department Costs Workers Compensation Insurance Payroll Tax . . . . Interest on Capital Debt .. Depreciation and Amortization Provisions Charges for-Accrued Sick Leave

Long Service Leave Retiring Gratuities .. Public Liability Claims

Non-operating expenses

1972-73.

$

. . 19,636,387 4,272,911

250,508 511,161 620,000

. . 25,290,967

. . 11,223,586 3,108,562 1,297,524 3,498,891 1,415,769

841,692 402,598 803,665 275,361 21,569

1,885,228 649,151 771,151

1,629,612 919,825

58,788 471,465 731,987 325,152 106,167

. . 30,437,743

1973-74.

$

20,302,817 4,448,300

287,158 293,349 500,000

25,831,624

13,773,797 3,812,767 1,331,195 4,117,763 1,709,976

945,400 514,826 856,070 329,009 21,571

2,354,894 1,381,793 1,174,333 1,678,083

917,637 75,845

618,576 1,076,957

618,270 110,116

37,418,878 Total Expenditure

Result for year Deficit 5,146,776 Deficit 11,587,2~4

The Board's balances as at 30th June, 1973 and 1974, are summarized hereunder:-30.6.73.

$ Current Assets-

145,160 177,913

1,020,887

1,343,960

19,466,138 10,761,528 4,811,019 3,554,212

38,592,897

Balances at Bank and Cash in Hand Sundry Debtors .. Stores on Hand and Work in Progress

Fixed Assets-

Permanent Way, Overhead Construction, Transmission Lines .. Rolling Stock Land and Buildings Plant, Furniture, and Fittings, &c.

30.6. 74.

$ $

169,270 197,774

1,562,408

19,970,862 10,761,528 4,812,658 3,626,764

39,171,812

1,929,452

21,093,297 Less Provision for Depreciation .. 21,864,176

17,499,600

18,843,560 Carried forward ..

17,307,636

19,237,088

30.6. 73.

$ 18,843,560

2,014,413 1,540,432

473,981 1,621,753

20,939,294

287,409 1,142,371

1,429,780

391,094 1,090,099

Brought forward

Intangible Assets

59

Less-Provision for Amortization ..

Investments

Total Assets

Current Liabilities­

Bank Overdraft Other

Accrued Liabilities­

Interest on Loans Other

30.6.74. $ $

2,036,882 1,580,720

370,850 923,762

389,160 1,682,290

19,237,088

456,162 2,271,753

21,965,003

1,294,612

2,071,450 1,481,193

7,205,000 Special State Advance-Works and Services Account 15,555,000 Vote 2,650,000

---- 18,205,000 27,620,205

37,736,178

Liability in respect of Loans from Banks, Superannuation Funds, etc. 28,456,806

Total Liabilities 50,027,868

The excess of Liabilities over Assets is represented by-

13,175,578 The Accumulated Deficit brought forward 5,146,776 Plus-Deficit for year

18,322,354 157,573

967,897

400,000

1,525,470

16,796,884

Accumulated Deficit at 30th June Less-Grants from Commonwealth of Australia for Tramlines

constructed at its request .. Net Contributions towards Major Tramways Works

constructed at the request of other Authorities .. Grant from Country Roads Board towards Tram Track

Construction

157,573

1,089,170

600,000

18,322,354 11,587,254

29,909,608

1,846,743

28,062,865

As a result of the writing back, in 1966-67, of the Specific Provisions for Accrued Sick Leave, Retiring Gratuities, Long Service Leave, &c., no provision now exists in the Board's accounts for such contingencies.

The revenue credit of $500,000 from the Drivers' Licence Suspense Account is the amount which was determined by the Treasurer as being payable in 1973-74 from that Account to the Board pursuant to Section 22E of the Motor Car Act 1958. The payment is regarded as assistance towards meeting debt charges on funds applied towards costs of roadworks.

The large deficits which have occurred regularly in recent years have reduced the Board's equity in the undertaking, calculated on Balance-sheet figures, to such an extent that for some years its liabilities have exceeded its assets. The advances from the State amounting to $18,205,000 over the last three years indicate the amount of direct financial assistance given to the Board.

The Board regards the provision for depreciation and amortization as covering not only those two particular items but also the Board's sinking fund commitments. Supplementary records are kept to substantiate the sinking fund component of such provision. Details are :-

Provision for depreciation and amortization Sinking Fund

Total Provision

30.6. 73.

$ 21,013,086 1,620,643

22,633,729

30.6.74.

$ 21,831,394 *1,613,502

23,444,896

• Of the investments of the Board amountin' to $2,271,753, as at 30th June, 1974, investments to the sum of $J,613,S02 were accepted as being held on behalf of the Stnking Fund.

60

MELBOURNE HARBOR TRUST.

In the conduct of the audit of the accounts, the continuous checking of receipts and vouching of disbursements carried out by the Trust's auditors-a firm of chartered accountants-has been accepted. The accounting year of the Trust was changed from a calendar year to a financial year as from 1st January, 1973.

The Trust's Revenue Accounts for the six months from January to June, 1973 and for the financial year 1973-74, are shown in the following summary :-

Charges on Ships Charges on Goods Charges for Services-Cranes Charges for Services-Other Rents and Licence Fees from Lands Other Revenue ..

Total Revenue

Revenue.

Expenditure and Provisions.

Payment to the Consolidated Fund Operating Expenses Maintenance Interest on Loans Other Expenses Provision for Depreciation Provision for Insurance

Total Expenditure

Sinking Fund .. General Reserve

Surplus

Appropriations.

1973. 1973-74. January-June

$

I, 162,182 4,908,466

828,256 402,207

1,316,761 159,063

8,776,935

425,630 2,150,585 1,473,068 1,297,941

719,202 1,844,744

85,213

7,996,383

600,000

180,552

$

2,713,808 11,664,808 2,221,038

928,544 3,228,450

581,229

21,337,877

1,044,754 4,987,646 3,851,954 2,819,875 1,566,555 3,649,521

168,739

18,089,044

750,000 2,000,000

498,833

In addition to the two appropriations appearing in the foregoing summary, the following provisions were made and subsequently absorbed in other expenditure accounts :-

1973. 1973-74. January-June

$ $

Depreciation 204,574 407,931 Insurance 17,590 40,415 Periodical Maintenance 5,000 10,000 Superannuation Pensions 75,000 400,000 Service Grant Gratuities 10,000 40,000 Long Service Leave .. 25,000 300,000

337,164 1,198,346

61

The following statement, based on the balance-sheet, analyses the sources of funds available to the Trust up to 30th June, 1974, and the application thereof, and includes relative figures at 30th June, 1973 :-

30.6. 73.

$

46,201,059

1,560,275

176,255

36,886

12,548,315

6,237,000

3,970,164

2,136,716

32,814,765

62,922

1,533,495

475,000

2,604,712

9,360,705

119,718,269

109,788,222

4,262,444

1,166,444

376,431

1,023,914

1,059,216

2,004,712

36,886

119,718,269

Source of Funds.

External-Loan Liability

Contributions to Capital Works

Sundry Creditors

Bank Overdraft

Trust Accounts

Internal-

Capital Redemption Reserve ..

General Reserve

Insurance Provision ..

Superannuation Accounts

Provision for Depreciation

Provision for Periodical Maintenance ..

Provision for Pensions and Gratuities ..

Provision for Long Service Leave

Sinking Fund

Revenue Account Balance

Application of Funds.

Works of Construction and Plant (at cost)

Investments (at cost) and Cash

Current Assets-

Sundry Debtors

Advances for Housing

Materials in Stock (at cost)

General Reserve Fund Investments (at cost) and Cash

Sinking Fund Investments (at cost) and Cash

Cash Held in Trust Accounts

30.6.74.

$

48,051,027

2,252,642

2,406,588

835,171

66,659

13,005,747

8,237,000

4,131,654

2,250,833

36,470,874

72,922

1,644,784

605,214

3,054,070

9,859,538 ---~-·

1,913,624

428,995

1,137,056

$

53,612,087

79,332,636 --·--132,944,723

120,131,663

5,903,440

3,479,675

1,059,216

2,304,070

66,659

132,944,723

62

MELBOURNE UNDERGROUND RAIL LOOP AUmORITY.

This Authority which was constituted under the provisions of the Melbourne Underground Rail Loop Act 1970 is charged with the duty of supervising and co-ordinating the planning, financing and construction of an underground rail loop and ancillary works. The Authority operated as from 1st February, 1971.

Provision is made in the legislation for operations to be financed from borrowings within Australia or overseas and from advances by the State, with a limit to the amount borrowed, at any time, of $80,000,000. As at 30th June, 1974, loan liability amounted to $35,281,510 in respect of authorized borrowings secured by inscribed stock guaranteed by the State. The Authority may also arrange temporary accommodation by way of bank overdraft to a limit of such amount as may be determined by the Treasurer. Repayment of any such temporary borrowing is guaranteed by the State.

The Act requires the Victorian Railways Board to pay to the Authority in each financial year such amount as is determined by the Treasurer. In respect of 1973-74, the Treasurer determined that the amount to be so paid was $895,077 and this sum was received during the year.

The legislation provides that the Treasurer shall determine the amounts required to be paid to the Authority each year for the purpose of defraying administrative costs and annual redemption payments, and that the Melbourne and Metropolitan Board of Works and the City of Melbourne shall each pay annually an amount equal to one-quarter of the Authority's administrative costs and redemption payments. The two bodies each paid the sum of $305,420, which sums were applied to the annual redemption payments.

The Act also requires the Treasurer to decide what proportion of the amount which he has determined shall be paid by the Victorian Railways Board-$895,077 for 1973-74, as mentioned above-is to be applied towards administrative costs and annual redemption payments. The Treasurer directed that the amount of $610,839 be applied towards the annual redemption payments but that, in respect of administrative costs, no amount was required to be applied from the Railways Board's payment or paid by the Melbourne and Metropolitan Board of Works and the City of Melbourne. Administrative costs are being capitalized in the accounts of the Authority.

Capital expenditure for 1973-74 amounting to $19,051,625 included payments for construction work, fees to the consulting engineers, and land acquisition expenses. At 30th June, 1974, several compensation claims were outstanding in respect of land acquired by the Authority. No provision has been made in the accounts of the Authority for these claims.

63

The financial position of the Authority as at 30th June, 1973, and 1974, is set out hereunder. Fixed assets in the financial statement are shown at cost.

30.6. 73, 30·6.74

$ $ $ $ Fixed Assets-

10,634,118 Loop Development 23,303,538 2,233,339 Land Acquisition 8,695,229

252,565 Plant 165,802 58,454 Office Furniture, Fittings and Equipment .. 65,532 3,286 Motor Vehicle .. 3,286

13,181,762 32,233,387

Current Assets-

131,076 Cash at Bank and on Hand 55,754 6,857,637 Investments-Short Term 6,677,183

200,555 Accrued Interest Receivable 121,551 99,729 Prepayments 70,478 2,705 Sundry Debtors

7,291,702 6,924,966

Less Current Liabilities-

513,332 Sundry Creditors 1,952,804 285,004 Accrued Interest Payable 594,432 24,243 Contractors' Deposits 10,558 70,000 Inscribed Stock Applications 100,000

892,579 2,657,794

6,399,123 4,267,172

Investments-

22,004 Sinking Fund .. 73,814

Intangibles-Capitalized Costs-1,090,871 Administrative and Financial Expenses 2,972,374

20,693,760 39,546,747

The assets and expenses of the Authority have been financed from the following sources :-

$ $ $

17,986,250

387,824 193,912 193,912

775,648

56,975

1,852,883

22,004

20,693,760

External-

Loans-Secured by Inscribed Stock

Contributions-

Annual Redemption Payments­

Victorian Railways Board .. City of Melbourne Melbourne and Metropolitan Board of Works

Administrative Costs­

Victorian Railways Board ..

Capital Works-

Victorian Railways Board ..

Internal-

Sinking Fund Reserve

998,663 499,332 499,332

35,281,510

1,997,327

56,975

2,137,121

73,814

39,546,747

64

METROPOLITAN FIRE BRIGADES BOARD.,

Under Section 48 of the Metropolitan Fire Brigades Act 1958, the Auditor-General is required to audit the accounts of all moneys received and disbursed by the Board.

The Board's revenue consists primarily of contributions provided by Fire Insurance Companies and Municipalities and, pursuant to Sections 4 and 5 of the Metropolitan Fire Brigades (Amendment) Act 1973, now includes a contribution from the Consolidated Fund. In addition, brokers and owners are required to contribute where properties are insured with companies other than those licensed under Section 96 of the Stamps Act 1958.

The following statement, in which the figures relating to the financial year 1973-74 are subject to audit, shows receipts and disbursements for the past two years :-

Receipts. Statutory Contributions-

Fire Insurance Companies M unicipa1ities Treasurer of Victoria (Consolidated Fund) .. Brokers and Owners

Patrol Services, Testing and Inspecting Appliances Sale of Materials, Property and Plant Rents Interest on Investments Investments Matured .. Miscellaneous Balance carried forward to next year

Disbursements.

Balance brought forward from previous year Salaries, Wages and Maintenance, &c ... Superannuation Contributions and Staff Insurance Subsidies Purchases of Property, Plant and Equipment Interest on Loans Loan Repayments Short Term Investments (Net)

1972-73. 1973-74.

$ $ $ $

7,652,332 10,039,963 3,864,000 3,260,125

889,125 124,788 117,564

--- 11,641,120--- 14,306,777 883,505 1,124,557 133,505 142,768 86,406 91,697

151,660 211,743 800 1,270,400

25,491 23,508 o/D 1,842,800 ofo 1,355,383

14,765,287 18,526,83 3

ofo 1,194,319 11,008,466

785,098 400,241 128,113 34,050

1,215,000

14,765,287

0/D 1,842,800 14,175,924

977,193 1,296,659

187,567 46,690

18,526,833

The accounts are periodically audited by a firm of Chartered Accountants appointed by the Board. These Auditors provide the Board with a certificate to the Balance Sheet and related statements. An abridged statement of assets and liabilities and funds of the Board as at 30th June, 1973, and 1974, is set out hereunder :-30.6. 73. 30.6. 74.

$ $ $ Current Assets-

70,866 Sundry Debtors 135,438 1,870,000 Investments-Short Term 1,000,000

319,475 Stock on Hand (at cost) 392,220

2,260,341 1,527,658

Fixed Assets-5,997,636 Land and Buildings .. *8,989,721

497,486 Plant, Machinery and Equipment 519,182 1,510,137 Rolling Stock 1,713,601

8,005,259 11,222,504 1,071,110 Investments-Long Term .. 670,710

11,336,710 Total Assets 13,420,872

*Written up by $1,012,482 following adoption of recent municipal valuations.

65

$ $ $ Current Liabilities-

1,842,800 Cash Balance Overdrawn (net) 1,355,383 7,918 Sundry Creditors 5,320

1,850,718 1,360,703

2,882,623 Loan Liability 3,235,933

Funds-

12,656 Accident Fund 13,141 3,184 Florant Reward Fund 3,337

245,396 Motor Replacement Fund 289,855 688,447 Plant and Building Fund 146,768

8,073 Recreation and Education Fund 9,440 242,113 Special Service Fund 360,926

1,199,869 823,467

5,933,210 Total Liabilities and Funds 5,420,103 5,403,500 Excess of Assets over Liabilities 8,000,769

11,336,710 13,420,872

8588/74.-5

66

MOTOR ACCIDENTS BOARD.

The Motor Accidents Act 1973 authorized the establishment of:-

(i) the Motor Acciti: . .mts Board, to provide for the payment of compensation to persons injured and to certain relatives of persons who die as the result of motor accidents ; and

(ii) a Motor Accidents Tribunal, to decide appeals against decisions of the Board.

The several provisions of this Act came into operation on days fixed by successive proclamations of the Governor in Council.

While financial operations of the Board began on 19th September, 1973, compensation payments for injury and death applied to those events which occurred on or after 12th February, 1974.

All expenses and compensa.tion payments relating to accidents which occurred during the "Special Period", i.e. 12th February, 1974, to 13th May, 1974, are to be met from the "Special Account " established under the legislation. This Account is financed from statutory deductions from motor cycle and motor car third-party premiums which are to be appropriated to the Special Account during the three-year period beginning 12th February, 1974.

Expenses and compensation payments granted by the Board as the result of motor accidents in respect of which no liability accrues to the Special Account are met from the General Account. This latter Account is financed from funds provided by Authorized Insurers (as defined in the Motor Car Act) and from surcharges imposed by the Motor Car Act and payable by certain drivers on renewal of their driving licences.

Pursuant to the provisions of Section 63 of the Motor Accidents Act 1973, a continuous audit of the income and expenditure of the Board is made by auditors appointed by the Board. Work done by the Board's appointed auditors has been accepted for the purpose of my audit.

Details of Income and Expenditure for the period ending 30th June, 1974, are shown hereunder :-

SPECIAL AccouNT.

Deductions from Third-Party Premiums Less-Benefits paid ..

Administrative Expenses Setting Up Expenses

Balance-Deficit

Calls on Authorised Insurers Driver's Licence Surcharges Expense Recoups, Balance

Less-Benefits paid .. Administrative Expenses

GENERAL AccouNT.

Provision for Long Service Leave-Officers' Service prior to appointment to Board

Ba1ance-Surpl us

$ $ 627,070

710,029 176,497

15,454 901,980

274,910

700,000 19,860 17,768

737,628 24,370 9,518

41,110 74,998

662,630

67

BALANCE SHEET AS AT 30TH JUNE, 1974. Funds held by the Board­

General Account Special Account (deficit) ..

Represented Current Assets-

Cash at Bank and on Hand .. Amounts due from Authorised Insurers Amounts due from Driver's Licence Surcharges Third-Party Premiums Deductions Due Sundry Debtors

Less-Current Liabilities and Provisions­Sundry Creditors and Accruals Provision for Long Service Leave

Fixed Assets (at cost)--Furniture, Fittings and Equipment Motor Vehicles

Less Provision for Depreciation

$

217,757 46,670 4,980

157,490 16,069

35,807 43,184

16,106 9,518

25,624 1,879

Notes to and forming part of the accounts for the period ended 30th June, 1974.

I. Third-Party Premiums Deductions Due-$157,490.

$ 662,630 274,910

387,720

442,966

78,991

363,975

23,745

387,720

This sum is the amount due at balance date from the Motor Registration Branch and Authorized Insurers in respect of Special Account Revenue.

2. Outstanding Benefits Liability.

The liability for future benefits payable for accidents occurring up to and including 30th June, 1974, including unreported accidents was determined from an examination of case files over a selected period. The figures have been arrived at after a relatively short experience and will be subject to revision.

The outstanding benefits liability has been estimated to be :-

Special Account . . $1,652,605 General Account $1,295,751.

68

PORTLAND HARBOR TRUST.

Pursuant to the provisions of the Portland Harbor Trust Act 1958 the exclusive management and control of the Port of Portland are vested in the Commissioners of the Trust.

The Commissioners' statutory charter provides authority, also, for the erection and operation of a grain terminal at Portland. Operations of the terminal for the year resulted in a deficit of $115,642 compared with a deficit of $111,151 for the previous year.

The statement of revenue and expenditure and the abridged balance-sheet hereunder summarize the financial results of the whole of the operations of the Trust. After taking into consideration a State contribution of $1,314,000 and the provisions for sinking fund and accruing long service leave, there was a surplus of $248,655 on the year's operations. This compares with a deficit of $215,168 in 1972-73.

Particulars of revenue and expenditure for the past two years are :-1972-73.

$

285,498 41,216

5,643 227,088

58,130 236,153

32,045 411

886,184

183,292 133,344 221,464 202,679

11,635 24,796

777,210

108,974

12,394

121,368

1,055,174 47

1,055,221

933,853

13,251 53,064

66,315

785,000

215,168

Operating Revenue­Wharfage Rates Tonnage Rates Slipway Charges and Licences Shipping Services Rent Handling Charges, &c.-Grain Terminal Cool Store Operations Other

Operating Expenditure­Administrative Maintenance Shipping Services Grain Terminal Expenses (including Depreciation) Depreciation-Harbor Works, &c. Cool Store Expenses

Operating Surplus

Non-operating Revenue­Interest

Non-operating Expenditure­Loan Interest Loan Flotation Expenses, &c.

Excess of Expenditure over Revenue

Provisions-Long Service Leave •. Sinking Fund

Contribution by State from the Consolidated Fund for maintenance of port facilities and for other purposes

Surplus for year Deficit for year

1973-74.

$ $

346,615 36,710

6,404 208,674 100,129 265,459

18,233 477

232,701 120,271 289,451 219,072

12,024 16,146

1,122,982 59

50,949

982,701

889,665

93,036

15,609

108,645

1,123,041

1,014,396

50,949

1,065,345

1,314,000

248,655

69

Loan interest shown in the above statement relates only to the interest payable in respect of inscribed stock and debentures issued by the Trust. Section 30 of the Portland Harbor Trust Act 1958 requires the Trust to meet interest charges and National Debt Sinking Fund contributions in respect of advances which have been made by the Treasurer, but so far the Treasurer has approved of payment of these amounts being deferred. At 30th June, the amounts so deferred were interest, $2,956,321, and National Debt Sinking Fund contributions, $309,806.

The following is an abridged statement of the Trust's balance-sheet :-30.6. 73. 30.6. 74.

$ 275,203

10,000 21,728,065

30,000 51,956

21,820,021

29,768 1,139,534

560,935

1,730,237 315,268

1,414,969

23,510,193

22,597 114,916 166,282

2,024,080*

23,647 66,423

18,505,983 2,586,265

23,510,193

$ $ Current Liabilities . . 423,277

Deferred Liabilities­Treasury Advance Loan Liability .. Provision for Long Service Leave Other ..

Funds of the Trust­Endowments Sinking Fund .. Loans Redeemed Reserve

Less-Accumulated Deficit ..

Current Assets­Cash .. Stores Other

Investments

Fixed Assets-Property Vested (less Written Off) Other (less Depreciation) Harbor Construction Works and Plant (less Depreciation) Grain Terminal Construction Works and Plant (less

Depreciation)

* Includes investments on account of Sinking Fund.

10,000 22,284,883

45,000 78,205

28,076 1,261,227

654,117

1,943,420 159,795

105,122 120,426 201,270

21,955 66,051

18,952,657

22,418,088

1,783,625

24,624,990

426,818

2,621,910*

2,535,599 ---21,576,262

24,624,990

Loan Liability at 30th June, 1974, comprised advances from the Treasurer, $3,672,900, (including $24,900 discount and expenses on loans) and $18,611,983 raised by the Trust by the issue of Inscribed Stock and Debentures.

Deferred Liabilities do not include the amount of $2,956,321, interest accrued on advances from the Treasurer.

Investments, $2,621,910, include funds not immediately required by the Trust and lodged with the Trust's bankers either for a fixed period or at call, and specific investments on account of funds and provisions.

Moneys equivalent to the amount of the Sinking Fund are invested in suitable securities.

70

PUBLIC TRUSTEE.

The powers and duties of the Public Trustee are prescribed by the Public Trustee Act 1958. Funds of the estates administered by him do not form part of the Public Account, and all receipts are paid into a Common Fund controlled by the Public Trustee as authorized by the Act. The statement below shows the composition of the Common Fund at 30th June, 1973, and 1974.

Estates-Mental Patients, Deceased Persons, Trusts and Agencies .. Moneys held in Trust for Minors Unclaimed Moneys Estates Guarantee and Reserve Account .. Maintenance Fund Interest Reserve Su:spense-Amounts pending allocation or adjustment Bu ding Depreciation Account ..

The Common Fund was invested as follows :-

Inscribed Stock Bank Deposit Stock and Term Deposits Loans to Municipal and other Statutory Bodies .. Mortgages .. Loan to Co-operative Housing Society Cash at Bank and in Hand Land and Buildings

30.6. 73.

$ 26,901,648 2,305,936 2,278,683 1,543,620

198,250 225,000

1,807 4,690

33,459,634

30.6.73.

$ 6,568,300 3,000,000 3,955,067

16,590,213 72,204 76,220

3,197,630

30.6. 74.

$ 31,175,737 2,365,677 1,589,733 1,715,809

182,853 300,000

1,126 9,619

37,340,554

30.6. 74.

$ 5,744,300 3,600,000 3,927,226

20,715,955 57,204 83,194

3,212,675

33,459,634 37,340,554

In addition to the funds held as the Common Fund, the Public Trustee had under his control, in respect of estates in the course of administration, real estate and other unrealized assets of a substantial value, and specific investments in government and semi-government securities which amounted to $1,370,884 at 30th June, 1974.

The Public Trustee (Amendment) Act 1971 empowered the Public Trustee to apply funds from the Common Fund, to a maximum of $5,000,000, to purchase land and buildings for use by him in connection with his duties, powers or functions under the Public Trustee Act. To 30th June, 1974, a sum of $3,212,675 had been so applied.

The Public Trustee is required to establish a Building Operations Account and a Building Depreciation Account in respect of the investment in land and buildings. Gross rentals, $429,000, including $53,884 transferred from the Estates Guarantee and Reserve Account pursuant to sub-section 6 (c) of Section 56A of the Act, were credited to the Building Operations Account for the year. After debiting operating expenses of $66,238 in respect of the land and building at 168 Exhibition Street, Melbourne, and paying $4,690 into the Building Depreciation Account, the balance of $358,072 was transferred to the Interest Suspense Account, in terms of sub-section 8 of Section 56A of the Act.

Interest received from the investment of moneys forming part of the Common Fund is required by the Act to be paid into the Interest Suspense Account. From this Account there is payable in each year :-

(i) to the credit of the respective estates represented in the Common Fund, interest at rates determined from time to time by the Public Trustee ; and

(ii) such amount as the Public Trustee deems necessary for credit to the Estates Guarantee and Reserve Account for the purpose of meeting certain contingencies including losses which might arise on the sale of investments of the Common Fund.

At the end of the financial year, the remainder at credit to the Interest Suspense Account is payable to the Consolidated Fund towards administrative costs.

71

Operations through the Suspense and Reserve Accounts for the financial years 1972-73 and 1973-74 were :-

1972-73.

$ 2,225,886

353,989

2,579,875

1,567,807 225,000 96,327

690,741

2,579,875

1,548,133 120,772 96,327

1,765,232 369

221,243

1,543,620

INTEREST SusPENSE AccouNT.

Income from investments Transfer from Building Operations Account

Appropriations-Interest allocated to estates Provision for interest payable to estates Estates Guarantee and Reserve Account Consolidated Fund

*Not credited in Treasury until 1974-75.

ESTATES GUARANTEE AND RESERVE ACCOUNT.

Balance at 1st July Interest credited on balance Transfer from Interest Suspense Account

Less Legal costs and other expenses Transfer to Building Operations Account

Balance at 30th June ..

1973-74.

$ 2,580,677

358,072

1, 786,543 300,000 106,548

*745,658

103 53,884

$

2,938,749

2,938,749

1,543,620 119,628 106,548

1,769,796

53,987

1,715,809

The Public Trustee deemed it necessary in 1973-74 to supplement the funds available in the Estates Guarantee and Reserve Account by an allocation of $106,548 from the Interest Suspense Account. Moneys standing to the credit of this Reserve Account are invested as part of the Common Fund and the Account is credited with a share of the earnings of the Fund.

Receipts from the management of estates by way of fees and commission, as well as the interest contribution already mentioned, are paid into the Consolidated Fund, from which operating expenses are met. On this basis, the net result of operations for the year was a surplus of $76,854 compared with a surplus of $245,513 in the preceding year. Particulars are :-

1972-73.

$

743,209 690,741

1,433,950

971,124 2,419

177,739 37,155

1,188,437

Receipts-Fees and Commission .. Surplus-Interest Suspense Account

Less Payments-

Salaries, pay in lieu of long service leave, overtime and payroll tax Publicity Rent Other Expenses (net)

245,513 Surplus for the year

1973-74.

$ $

828,178 745,658

1,199,707 2,778

240,171 54,326

1,573,836

1,496,982

76,854

The Public Trustee also co11ects amounts from various sources on account of the Consolidated Fund, including probate duty on estates administered by him and amounts on account of maintenance of certain patients in public mental hospitals.

72

Amounts paid by the Publlc Trustee to Consolidated Fund and to Treasury Trust from all sources during the last three years were :-

Consolidated Fund-Fees and Commission .. Probate Duty Surplus from Interest Suspense Account .. Maintenance-Patients in Mental Hospitals Stationery, Postages recouped Sundry Receipts

Treasury Trust Fund­Unc1aimed Moneys

1971-72 $

617,912 661,274 516,345 57,814 20,440 26,171

1,899,956

1972-73 1973-74 $ $

743,209 828,178 706,417 899,744 690741 745,658 70,266 74,703 22,480 23,348 23,157 30,012

2,256,270 2,601,643

952,979

The above remittances for 1973-74 include amounts not brought to account in the Treasury until 1st July, 1974,-in respect of the Consolidated Fund, $827,951, and Treasury Trust Fund, $227,530.

The Unclaimed Moneys Act 1973, proclaimed to operate from 1st January, 1974, directs that all property unclaimed for a period of six years and held by a trustee (including the Public Trustee) shall be converted to money and paid into the Unclaimed Moneys Fund kept at the Treasury. As a result of this legislation, the sum of $952,979 was paid by the Public Trustee to the Treasury in the year ended 30th June, 1974.

Although the major part of the review by officers of the Organization and Methods Section of the Public Service Board into the accounting and other administrative procedures of the Public Trustee's Office has been completed, several phases of the investigation have still to be carried out and certain recommendations have yet to be implemented.

73

RURAL FINANCE AND SETTLEMENT COMMISSION.

The Commission administers several Acts and appropriate particulars as to its financial

authority and operations under each of these Acts are furnished below.

THE RuRAL FINANCE AcT 1958.

Loans under Part Ill. of Act.

In accordance with the provisions of this Part, the Commission makes advances by way of

loan, at the lowest possible rates of interest, to existing or proposed country industries, both primary

and secondary. In these terms, loans made during the year amounted to $5,556,664. At the

close of the year, $29,356,088 was held by borrowers of which $22,834,131 was held in respect of

primary industries and $6,521,957 on account of secondary industries.

Advances under Part IV. of Act.

Under this Part, the Commission is empowered to advance moneys to or for the benefit of

any farmer for the purpose of carrying into effect a composition or scheme of arrangement between

the farmer and his creditors. Any such advance is made from the Rural Rehabilitation Fund

established pursuant to the provisions of Section 48 of the Act. No such advances were made during 1973-74.

Repayments of advances are credited to the Fund but any interest payable on an advance

forms part of the Commission's income. Interest from this source included in the year's

revenue totalled $5,942.

The Rural Rehabilitation Fund is held in the Treasury and no interest is payable thereon

to the Commission. The position of the Fund is summarized hereunder :-

$

Grants from Commonwealth Government ..

Add Amounts received from farmers to 30th June, 1973 7,045,208

Repayments of advances, 1st July, 1973, to 30th June, 1974 . . 36,649

Less Payments re debt adjustment to 30th June, 1974 ..

Amount transferred to Rural Reconstruction Scheme 1971

7,285,577

4,580,075

$

4,784,000*

7,08l,857t

11,865,857

--- 11,865,652

Unexpended balance 30th June, 1974

• Of the advances from this amount, $102,315 (net) has been written off as bad debts.

t Includes mortgage interest $19,~ received prior to 26th April, 1950.

205

74

Annual Statements of Accounts.

As required by the relevant legislation, the Commission has prepared a Profit and Loss Account for the financial year ended 30th June, 1974, and a balance-sheet as at that date in respect of its operations under Parts Ill. and IV. of the Act. Comparative details for the past two years are summarized hereunder :-

1973. $

1,894,355 54,237

1,948,592

351,712 1,496,728

109,901 6,449

85,906

2,050,696

102,104

214,875

112,771

70,698 4,809

17,982

93,489

.. 19,282

INCOME.

Interest Application and Legal Fees

EXPENDITURE AND PROVISIONS.

Administration Interest on Loan Indebtedness Interest on Redeemed Securities Provision for Long Service Leave Provision for Superannuation ..

Operating Loss for Year

Less-Interest on Investments Surplus on Sale of Residences, &c.

Less-National Debt Sinking Fund-Contribution Discounts and Expenses on Loans Provision for Doubtful Debts

Deficit Transferred to Profit and Loss Appropriation Account Balance Transferred to Profit and Loss Appropriation Account

1974. $ $

1,928,275 37,170

1,965,445

385,407 1,504,826

122,051 7,373

108,258

2,127,915

162,470

490,449 13,432

503,881

341,411

70,698 8,782

292,661

372,141

30,730

At 30th June, 1973 and 1974, funds available to the Commission were :-

30.6.73.

$ Loan Funds-

28,187,706 Loan Liability-Treasurer of Victoria (net) Other Funds-

4,728 Advances Farmers Debts Adjustment Act 1943-Treasurer of Victoria

140,118* Funds provided by Grant under Commonwealth's Loan (Farmers' Debt Adjustment) Act 1935

19,404 Interest on Mortgages prior to 26th April, 1950

236,829 34,671

2,727,315

100,039 1,740,310

548,689 1,630,000 1,012,006

286,039

36,667,854

Trust Account-Amounts in suspense .. Sundry Creditors Reserve-National Debt Sinking Fund (including Commonwealth

contributions) Provision for Long Service Leave Provision for Superannuation .. Provision for Doubtful Debts .. Loan Equalization Account General Reserve Profit and Loss Appropriation Account

• Excludes $102,315 (net) bad debts written off.

30.6.74. $ $

28,131,164

4,297

101,609* 19,404

125,310 201,884

34,730

2,990,803 112,513

2,041,801 355,858

1,630,000 1,082,991

24,271

36,731,325

75

The funds shown in the preceding statement were represented by the following assets :-30.6. 73.

$

Loans and Advances-

30.6. 74.

$ $

29,222,560 162,185

Loans under Part III.-Rural Finance Act 1958 . . 29,356,088 Advances under Farmers Debts Adjustment Act 1935, and

Part IV.-Rural Finance Act 1958 24,326 Contracts of Sale

775,987 Interest Due and Accrued 192,817 Amount Due for Administration-Other Commission Functions

2,065 15,076

75,090 46,656 87,103

Cash at Treasury, &c.-

Rural Rehabilitation Fund National Debt Sinking Fund

Fixed Assets-

Furniture and Office Equipment less Depreciation Motor Cars less Depreciation Residences and Offices

4,694 Charges paid in Advance

65,193 3,208,707

Cash-

At Bank and in hand At call

Investment Pool (at cost) on account of 2,785,395 Provisions and General Reserve

36,667,854

Government Agency Department.

125,105 22,503

205 27,521

58,008 46,902 77,084

77,069 2,932,720

29,503,696 861,123

27,726

181,994

12,849

3,009,789

3,134,148

36,731,325

Under Section 35 of the Rural Finance Act, the Treasurer is empowered to direct the Commission to take charge of the administration of any money provided from the Public Account for any special purpose. The Commission is required to establish an Agency Department to give effect to any such direction. Comments on the operations in this Department follow.

Drought Relief-Funds have been provided by the State and the Commonwealth for loans and advances to assist farmers affected by the drought in the years 1967 and 1968. Receipts and payments during the year were :-

Receipts-Balance-1st July, 1973 Principal repayments Interest

Payments-Repayments re-advanced Administration costs Repaid to Commonwealth Balance-30th June, 1974

$

1,438,134 901,913

55,861

2,395,908

12,197 61,522

725,311 1,596,878

2,395,908

76

Marginal Dairy Farms Reconstruction Scheme.-A sum of $145,000 was provided in 1973-74 by the Commonwealth as financial assistance for the purposes of this scheme, which was established in 1971-72 in accordance with the terms of an Agreement made under the provisions of the Commonwealth's Marginal Dairy Farms Agreement Act 1970. The total advances provided by the Commonwealth to 30th June, 1974, amounted to $520,000.

Under the scheme, dairy farmers whose holdings are not capable of producing a reasonable level of income may dispose of their land to the State. The State may then dispose of the land, at current market value, to encourage the most practicable and economic use of the land, but on condition that it will not be used primarily for dairying except as a part of a rural property that can be operated as an economic unit.

Receipts and payments for the year were :-Receipts-

Balance-1st July, 1973 Commonwealth Deposits and Principal Repayments Interest received from Borrowers Interest received from Investments

Payments-Marginal Dairy Farms Purchases Principal Repayments to Commonwealth Interest paid to Commonwealth Investments .. Administrative Costs Balance-30th June, 1974

$ 57,003

145,000 44,435 19,650 3,446

269,534

134,183 3,205 9,094

94,840 27,967

245

269,534

Rural Reconstruction Scheme 1971.-During the year a further sum of $7,600,000 was made available by the Commonwealth as financial assistance towards the Rural Reconstruction Scheme 1971, established under the terms of the Commonwealth-State Agreement made under the provisions of the Commonwealth's States Grants (Rural Reconstruction) Act 1971. As from 1st July, 1973, the conditions of this agreement were varied and the period during which financial assistance is to be provided was extended by a supplementary agreement made under the provisions of the Commonwealth's States Grants (Rural Reconstruction) Act 1973.

The purpose of the scheme is to provide assistance by way of loans to farmers for farm build-up, for debt reconstruction or for rehabilitation by means of limited financial assistance to certain farmers obliged to leave the farming industry.

In addition, a sum of $430,000 was made available in 1973-74 under this scheme for assistance specifically to the fruit growing industry in accordance with the provisions of the Commonwealth's States Grants (Fruit-Growing Reconstruction) Act 1972. The purpose of this aspect of the scheme is to provide compensation to farmers obliged to abandon fruit growing because their farms are not economic units. A further sum of $50,000 was provided under this scheme as supplementary assistance to those farmers who were eligible for compensation and who predominantly grew canning fruits. The grant per unit was $500.

Receipts and payments during the year were:­Receipts-

Balance-1st July, 1973 Commonwealth Grants-Rural Reconstruction ..

Fruit Growers Compensation Fruit Growers Supplementary Grant

Transfer from Rural Rehabilitation Fund Principal Repayments and Deposits Interest received from Borrowers Interest received from Investments

Payments-Fruit Growers Supplementary Grant Fruit Growers Compensation .. Debt reconstruction loans Farm build-up loans Farm purchases Interest to Commonwealth Investments Administrative Costs Balance 30th June, 1974

$ 1,325,126 7,600,000

430,000 50,000 38,509

3,804,617 1,225,285

71,729

14,545,266

22,500 343,116

1,955,334 5,469,121

134 975,039

5,317,753 242,003 220,266

14,545,266

Other Agency Operations­

Receipts-Balance lst July, 1973 Treasurer of Victoria-

Works and Services Account Borrowers-

Repayments of Principal Interest on Advances

Sale of Agency Property ..

Less Payments­Primary Industry ..

77

Secondary Industry .. Treasurer of Victoria-Instalments of Principal and Interest ..

Principal and Interest from S.P.C. Freight, Fodder and other Subsidies

Balance 30th June, 1974

SOLDIER SETTLEMENT AcT 1958.

$ $

844

2,113,430

1,641,918 434,904

2,076,822 31,175

4,222,271

945,917 959,440

1,298,184 809,813 111,267

4,124,621

97,650

Section 17 of the Soldier Settlement Act authorized the borrowing of $130,000,000 for the purpose of a land settlement scheme for eligible ex-servicemen and for advances to discharged servicemen to assist them in the purchase of individually selected farms (single units).

In the period from the inception of the Soldier Settlement Scheme in the year 1945-46 to 30th June, 1974, a sum of $131,270,974 has been allocated for soldier settlement. Of this sum, $116,873,568 has been made available from State loan moneys and $14,397,406 by the Commonwealth in the nature of special assistance loans.

According to the books of the Commission, its loan liability on account of soldier settlement at 30th June, 1974, was $31,528,140.

With the exception of $1,958,268 paid to the Commonwealth as part redemption of its special assistance loans, repayments by settlers and receipts of a capital nature have been credited to the Consolidated Fund. During 1973-74, $3,756,373 was so credited, bringing the total repayments to 30th June, 1974, to $74,918,422.

Principal assets of the Commission at 30th June, 1974, were :-

Land and Improvements held by settlers under purchase lease

Advances to finance single unit farms

Advances to effect improvements and for purchase of stock, &c.

Unpaid balances under Contracts of Sale ..

$

24,991,749

5,158,471

5,163

38,240

In respect of Soldier Settlement, the Commission's Profit and Loss account for 1973-74 shows:-

Expenditure­Interest Less Interest transferred and borne by the State

Administrative Costs Provision for Long Service Leave Provision for Superannuation

Income-Interest earned Rents, Fees and Sundries

Deficit for 1973-74

$ 2,206,200

943,775

1,262,425 224,844

4,282 67,155

681,892 1,257

$

1,558,706

683,149

875,557

78

The total accumulated deficit to 30th June, 1974, amounted to $28,011,677. This deficit is almost wholly caused by remissions of rent and interest ; the difference between the concessional rate of interest at 2 per cent. charged to settlers as fixed by the Act and the current rates payable on Government loans; the costs and expenses of raising the loans ; and the cost of administration of the scheme. The aggregate concessions granted towards the settlement of discharged servicemen by this State to the 30th June, 1974, have been calculated by the Commission to be $29,194,994.

In addition to land settlement, the Soldier Settlement Commission, by agreement with the Commonwealth Director of War Service Land Settlement, undertook the administration of re-establishment loans under the Commonwealth Re-establishment and Employment Act 1945. From 1st July, 1946, the administration of agricultural allowances under the same Act was taken over from the Repatriation Commission. Expenditure incurred in respect of these functions is being reimbursed from time to time by the Commonwealth.

LAND SETTLEMENT ACT 1959.

The Land Settlement Act 1959, as amended by the Land Settlement (Financial) Act 1970, provides for the application from the Works and Services Account of amounts not exceeding in the aggregate $40,000,000 for a land settlement scheme which was to be open, in terms of the Act, to applications by all adult British subjects. From its inception in 1959-60 to the close of the year under review, a sum of $33,936,399 has been allocated for the purposes of the scheme. According to its books, the Commission's loan liability on account of land settlement, as at 30th June, 1974, was $22,391,396-a reduction of $11,545,003, made up as hereunder:-

Settlers' repayments to the Consolidated Fund

Borne by the State pursuant to Section 41

To 30.6.73.

$

1973-74.

$ 5,873,662 I ,888,614

3,782,727

Total.

$ 7,762,276

3,782,727

9,656,389 1,888,614 11,545,003

Assets of the Commission at 30th June, 1974, were :- $ $ Estates purchased and developed not yet disposed of Unpaid balances under Contracts of Sale .. Land and improvements held under Purchase Lease-Division 4 Advances to Settlers-Division 6 . . . . Land and Improvements under mortgage-Division 4 Capital Expenses not allocated to Estates ..

Other assets-Buildings and working plant at cost less depreciation Plant, materials, services and expenses not yet allocated Livestock

144,500 368,390

1,015,120

8,494,409 99,171

13,911,193 25,597

908,125 129,301

1,528,010

25,095,806

The Profit and Loss Account for the year ended 30th June, 1974, excluding livestock transactions, shows :-

Expenditure-Interest and Loan-raising Expenses Less Interest Capitalized , Interest transferred and borne by the State under Section 41

Administrative Costs Provision for Long Service Leave Provision for Superannuation

Income-Interest earned, agistment, &c.

Deficit ..

$

82,243 206,284

$

1,431,128

288,527

1,142,601 179,346

3,723 25,545

1,351,215

630,132

721,083

79

The accumulated deficit to 30th June, 1974, before taking into account profits from livestock trading, amounted to $5,336,339. This deficit is almost wholly caused by remissions of rent and interest, the difference between the concessional rate of interest at 4 per cent. charged to settlers as fixed by the Act and the current rates payable on Government loans, the costs and expenses of raising the loans and the cost of administration of the scheme.

For the year, trading in livestock showed a profit of $142,016 (1973, $106,046), thereby increasing the accumulated profit from this activity to $1,415,503 at 30th June, 1974.

RURAL FINANCE AND SETTLEMENT INSURANCE FUND.

The Rural Finance and Settlement Insurance Fund was established pursuant to the provisions of Section 29 of the Rural Finance and Settlement Commission Act 1961 as amended.

The income and expenditure of the Fund for the year are shown below :­$

Income-Balance at 1st July, 1973

Premiums Raised 1973-74 Interest on Investments

Gross Income Expenditure-

Current Claims admitted-1973-74 Administration Expenses Statutory contribution to Country Fire Authority

Total Expenditure

Balance at 30th June, 1974

287,488 87,156

62,612 45,044 54,350

The balance of the Fund at the close of the year was represented by :-

Investments-Inscribed Stock, &c. held in Common Pool Accrued Interest Arrears of Premium Cash at Bank ..

Less-

Claims Admitted but not Paid Provision for Stamp Duty

$ 1,342,462

41,944 25,755

2,241

27,103 7,699

$

1,164,962

374,644

1,539,606

162,006

1,377,600

$

1,412,402

34,802

1,377,600

80

STATE SUPERANNUATION BOARD OF VICTORIA.

By legislative direction, the State Superannuation Board of Victoria is responsible for the administration of the Superannuation Fund, the Pensions Supplementation Fund, the Married Women's Superannuation Fund and the Parliamentary Contributory Superannuation Fund.

The cost of administering the Board is met from the Consolidated Fund.

SUPERANNUATION FUND.

This Fund, authorized under the provisions of the Superannuation Act 1958, provides, on a contributory basis, retiring benefits for the public and teaching services, the officers and employees of the railways service and certain statutory bodies and, in terms of the Superannuation Act 1963, certain members of the police force.

The audit of the accounts to 30th June, 1973, has been completed and the audit for the year ended 30th June, 1974, is in course.

Subject to final audit, the receipts and disbursements of the Fund for the current year, compared with those of the previous year, are summarized below.

1972-73. $

25,135,832 285,596

22,146,228 12,599,476

2,500 2,356 9,ll5

61,685 663,203

25,056

60,931,047

$

27,328,941

33,614 7,096,069

4,476,081 13,001 9,650

40,003 1,951 1,374

39,000,684

21,930,363 200,513,245

222,443,608

Contributions­Current (net) Deferred

Receipts.

Payments from the Consolidated Fund Interest on Investments .. Underwriting Commission Valuation Fees on Property Loans (net) .. Insurance Commission Mortgage Reserve Account Premiums Reserve Units Account (net) Assurance Premiums (net)

Disbursements.

Pensions Lump Sum Payments-

Limited and ill-health Contributors Cash Options

Pensions Supplementation Fund-Statutory Transfer The Consolidated Fund-Act 7081, Sec. 9 (3) (4) .. Interest on Refunds of Reserve Units Contributions Profits and Losses on Sales &c. of Securities (net) Assurance Premiums (net) Miscellaneous

Surplus of Receipts over Disbursements Balance (including Investments) 1st July

Balance 30th June

1973-74. $ $

30,540,676 2ll,398

$

56,061 9,676,970

30,752,074 25,006,445 13,959,084

5,000 424

13,206 72,795

719,350 979

70,529,357

$

29,908,903

9,733,031 5,926,570

16,561 761,416 81,260

1,943

46,429,684

24,099,673 222,443,608

246,543,281

81

Investments during the year included the acquisition of a property at 35 Spring Street, in accordance with the authority given to the Board by the Superannuation Act 1972. To 30th June, 1974, payments in respect of the property amounted to $3,517,887. The Board is empowered to grant leases and to fix the terms and conditions of tenancy. As at 30th June, no leases had been granted. The entry of the Board into this field of investment makes it all the more urgent, from the accounting

:stand-point, for arrangements to be completed for the introduction of the accrual accounting necessary for the preparation of Revenue Accounts and Balance Sheets.

Progress in the application of electronic data processing to certain of the Board's functions, with a view to elimination of inadequacies in the Board's accounting system, is continuing.

PENSIONS SUPPLEMENTATION FUND.

This Fund was established pursuant to the Pensions Supplementation Act 1966 to meet the cost of supplementing, as from 1st April, 1966, the pensions of officers who retired on or before 12th July, 1961, or the widows of such officers or of those officers who died prior to that date. Amending legislation incorporated in the Pensions Supplementation Act gave the Board power to increase the supplementary pensions of those persons and to grant supplementary pensions to, or in respect of, persons who became entitled to a pension subsequent to that date. The latest of such amendments ~the Pensions Supplementation Act 1973--authorised the Board to increase, in each .. prescribed year," the existing supplementary pensions and to grant supplementary pensions to persons who first became entitled to a pension in the preceding financial year.

The sources of revenue to the Fund are-

(i) transfers from the Superannuation Fund and the Consolidated Fund of amounts equal to the cost of the supplementation of pensions, in the proportions specified in the relevant provisions of the Pensions Supplementation Act;

(ii) transfers from the Police Pensions Fund established under the Police Regulation Act 1958 equal in value to the amounts debited to the Pensions Supplementation Fund in respect of the supplementation of the pensions of police pensioners and police widow pensioners; and

(iii) interest earned on investments of the Fund.

A summary is given below of the year's transactions of the Fund on an accrual basis, together with comparative figures for 1972-73 :-

1972-73.

$

4,496,089 692,631

1,175,043 221

6,363,984

6,363,707 25,782

25,505

8588/74.-6

Income-Statutory Transfer-Superannuation Fund

Police Pensions Fund Consolidated Fund

Interest on Investments

Expenditure­Pensions Police Superannuation Fund

Deficit /Surplus ..

1973-74.

$

9,678,536

$

5,951,955 912,266

2,816,821 221

9,681,263

9,678,536

2,727

82

The Accumulated Funds as at 30th June, 1973 and 1974, respectively, were represented by-30.6. 73. 30.6.74.

s s $ Assets-

7,575 Cash at Bank 8,723

Accruals-29,624 Superannuation Fund 55,010 4,962 Police Pensions Fund 8,255 9,927 Consolidated Fund .. 29,517

92,782

52,088 101,505 Less Liabilities-

46,092 Pensions Approved but Unpaid 92,782 -----

5,996 Accumulated Funds 8,723 -----

MARRIED WOMEN'S SUPERANNUATION FUND.

The Married Women's Superannuation Fund Act 1968 provides for the establishment, on a contributory basis, of the Married Women's Superannuation Fund. The purpose of this Fund is to provide retiring benefits to married women who are on the permanent staff of the public service and who, because of their married status, are not eligible to become contributors to the Superannuation Fund established under the Superannuation Act 1958.

Each contributor is required to contribute to the Fund, through the medium of deductions from salary, a sum equal to 5 per cent. of her salary. Contributions are credited to members' accounts in the Fund and are supplemented by payments out of the Consolidated Fund when benefits become due. Benefits on retirement consist of lump sum payments or annuities.

A statement of receipts and disbursements for the past two years is given hereunder-

1972-73. $

1,871,665

705,267 48,902

148,924

2,774,758

Balance 1st July,

Contributions-

Receipts.

Officers and the Consolidated Fund The Consolidated Fund-Lump Sums

Interest on Investments ..

1973-74.

$ $

875,704 75,969

2,472,591

951,673 228,361

3,652,62.5

1972-73

s 138,964

8,640

116,035 38,528

2,472,591 *

2,774,758

2,455,415 17,176

2,472,591

Lump Sum Payments Annuities

83

Disbursements.

Contributions Refunded, Section 15-

0fficers The Consolidated Fund

Balance 30th June,

*Represented by­Investments (at cost) Cash at Bank

PARLIAMENTARY CONTRIBUTORY SUPERANNUATION FUND.

1973-74

s

150,486 20,658

$

189,598 8,140

171,144 * 3,283,743

3,652,625

3,260,416 23,327

3,283,743

The Parliamentary Salaries and Superannuation Act 1968 provides for the establishment of the Parliamentary Contributory Superannuation Fund. The purpose of the Fund is to provide pensions, retiring allowances and other superannuation benefits to former members of Parliament and their widows. Members are required to contribute by way of deduction from salary, and, to the extent certified by the actuary appointed by the Trustees, the Consolidated Fund is applied to enable the Fund to meet its liabilities.

A statutory account, the Supplementary Retirement Account, has been established within the Fund and a member may make contributions to this Account by way of deduction from salary, not exceeding 10 per cent. of gross salary. Withdrawals by a member of the whole or part of the moneys standing to his credit in the Account may be made at five-yearly intervals. When a contributor ceases to be a member, there is payable to him or his personal representative the amount standing to his credit in the Account together with compound interest thereon at a rate determined by the Trustees of the Fund.

The audit of the acco\Ints of this Fund is undertaken by the Auditor-General at the request of the Treasurer.

Transactions for 1972-73 and 1973-74 were :-1972-73.

$ Receipts. 857,631

132,827 361,326

63,824 114

1,415,722

352,729 252,806

19,916 790,271 *

1,415,722

772,250 18,021

790.271

Balance 1st July, Contributions­

Members The Consolidated Fund

Interest on Investments .• Supplementary Retirement Account

Pensions Retiring Allowances Refund of Contributions Balance 30th June,

*Represented by­Investments (at cost) Cash at Bank

Disbursements.

1973-74.

$ $

169,106 490,426

790,271

659,532 63,993

1,513, 796

496,581 68,958 12,004

*936,253

1,513,796

932,250 4,003

9;\6,253

84

TOTALIZATOR AGENCY BOARD.

The Racing (Totalizators Extension) Act 1960 authorized the establishment of an off~course betting scheme under the control of the Totalizator Agency Board. The Racing (Aniendment) Act 1969 requires the accounts of the Board to be audited by the Auditor~General. The Board's balancing date is the 31st July in each year and the accounts have been audited to 31st July, 1974.

Turnover for the year ended 31st July, 1974, amounted to $365,711,373 compared with $322,819,271 in the previous year.

Following is a statement of Profit and Loss, showing the surplus funds available for distribution for the years ended 31st July, 1973, and 1974 :-

1973.

$

26,632,591

1,520,129 494,287

28,647,007

9,974,304 ],962,169 2,783,670 1,053,568

15,773,711

12,873,296

Revenue-

Income from totalizator investments

Other Income-

Unpaid Dividends Miscellaneous Income

Less Expenditure-

Employees' remuneration and agency fees Rentals, rates, repairs, maintenance and communications Depreciation .. Administration, printing, stationery and other operating

expenses

Less Transferred to Development Reserve Repayment of Contributing Clubs' Special Loan Account

500,000 Provision for Country Mechanization ..

12,373,296 Total Surplus Funds for Distribution

1,163,502 176,409

1,339,911

11,033,385

Deduct-

Advances of first charge administration costs Advances Spring Racing Stakes

Balance of Surplus Funds available for Distribution

1974.

$ $

11,729,447 2,339,409 2,560,633

1,206,663

1,100,000 362,610

1,357,259 201,723

30,171,189

2,050,992 991,285

33,213,466

17,836,152

15,377,314

1,462,610

13,914,704

1,558,982

12,355,722

The item-" Advances of first charge administration costs $1,357,259 "-represents reimbursements to the Victoria Racing Club and the Trotting Control Board of the costs of administration of racing and trotting, respectively, in accordance with the provisions of Section 116o of the Racing Act 1958.

85

The Board's balances as at 31st July, 1973 and 1974, are sununarized hereunder :-1973.

$ 5,659,807

5,659,807

4,255,840 1,067,380

3,188,460

2,325,826 1,870,106

455,720

11,104,892

984,712

12,089,604 5,931,619

6,157,985

9,802,165

602,213 100,794

14,499,808

15,202,815

25,004,980

11,033,385 544,499

4,837,817 2,929,472

19,345,173

5,659,807

1974.

$ $

Contributed Capital .. Contributed Capital-Development Reserve

Represented by­Fixed Assets-

Freehold land and buildings (at cost) Less provision for depreciation

Leasehold improvements (at cost) Less provision for depreciation

E.D.P. equipment (at cost) .. Country Automation (at cost)

6,059,807 892,256

5,166,178 1,327,594

2,664,246 2,045,050

.. 11,327,364 827,714

Motor vehicles, plant, machinery, fixtures and fittings (at cost)

Less provision for depreciation (NOTE No. 1) ..

Other Assets­Sundry Debtors Stock of E.D.P. Equipment Spares

1,039,710

13,194,788 7,920,990

707,947 123,230

Cash on hand and at bank (including deposit) ..

funds on term

Deduct Liabilities-Proposed distribution of surplus funds Amounts payable to Treasurer of Victoria

. . 18,284,770

12,355,722 939,698

Dividends payable on totalizator investments and telephone betting deposits held (NoTE No. 2) ..

Sundry Creditors, provisions and accruals (NOTE

Development Reserve

4,843,027 No. 3) 2,871,580

885,435

6,952,063

3,838,584

619,196

5,273,798

9,731,578

19,115,947

28,847,525

21,895,462

6,952,063

The following explanatory notes have been appended to the Balance-sheet by the Board and are to be read in conjunction therewith :-

l. Included is $500,000 for obsolescence additional to normal depreciation rates for 1972-1974.

2 Excludes $6,638,220 dividends not paid included in the distribution to participating clubs since 1969. Excluded are statute barred dividends.

3. (a) Includes $344,641 levied on dog racing since 1965-66, $241,200 Computer Rights Reserve, and $560,000 Distribution Reserve.

(b) Provisions for Annual Leave and Long Service Leave are now calculated at current salary and wage rates.

4. Contingent liability on uncompleted capital projects is $8,800,000 for Country Automation and Crisp Development Projects.

8588!74.-7

86

Funds available for distribution to participating dubs from the commencement of the Board's operations in March, 1961, to 31st July, 1974, totalled $78,934,314, and establishment and development expenses, $21,025,212.

Capital contributed by the three Metropolitan Racing Clubs and the Trotting Control Board -the Contributing Clubs-towards the establishment expenses, to 31st July, 1974, totalled $6,059,807, including $400,000 in 1973-74. The Racing (Amendment) Act 1974, which came into operation on 22nd May, 1974, repealed the legislative requirement that one-quarter per cent. of investments through the Board be paid into a trust account in the Treasury for or towards recouping racing clubs for their capital contributions. The overdraft in the Contributing Clubs' Special Loan Account at that date, $362,610, representing the balance of the clubs' contributions remaining unrecouped (excluding differential interest, $14,129), was liquidated by the Board, apparently in accordance with the provisions of Section 116o of the Racing Act, but the approval of the Minister was not obtained as required in that Section.

Also, the Racing (Amendment) Act 1974 required the establishment by the Board of a "Development Reserve" into which an amount equal to the additional one-quarter per cent. commission received by the Board pursuant to the amending legislation should be paid, together with such other amounts as the Minister determines. Funds so raised may be applied to development projects as approved by the Minister. During 1973-74, the Minister approved the transfer to the Development Reserve of $1,600,000 (including $500,000 previously shown in the accounts as provision for Country Mechanization) and a further $177,691 was credited to the Reserve from the one-quarter per cent. commission. At 31st July, 1974, $892,256 had been expended on approved development projects leaving a balance at credit of the Development Reserve of $885,435.

87

VICTORIAN DEVELOPMENT CORPORATION.

Pursuant to the provisions of the Victorian Development Corporation Act 1973, which came into operation on 8th May, 1973, the Corporation was established during 1972-73 for the purpose of encouraging, promoting, facilitating and assisting in the establishment, carrying on, expansion and development of country industries.

Funds amounting to $5,400,000 were provided during 1973-74 consisting of $5,000,000 from loan advances from the Treasurer of Victoria and $400,000 borrowed by the issue of inscribed stock by the Corporation.

At 30th June, 1974, loans totalling $3,078,000 had been made to twenty-three country industries under the provisions of Section 11 of the Act, and further loans aggregating $4,477,000 had been approved but not advanced.

The audit of the accounts of the Corporation for the year ended 30th June, 1974, is in course and the figures given below are subject to the completion thereof.

Following is a summary ofthe Profit and Loss Account for the year ended 30th June, 1974 :-

Income- $ $ Interest on loan advances . . 33,028 Interest on bank term deposits 139,441

Expenditure­Interest payable Provision for doubtful debts Administration Expenses

Net Loss

The balance-sheet of the Corporation as at 30th June,

Current Assets Investments-Fixed Deposits Loans to Country Industries Fixed Assets-Less Depreciation Accumulated Loss

Current Liabilities­Bank Overdraft Accruals and Prepayments ..

Deferred Liabilities-Treasurer· of Victoria Loan Inscribed Stock

Reserves-Provision for doubtful debts

138,872 307,800 149,769

172,469

596,441

423,972

1974, is summarized hereunder:-$ $

744,489 149,244

5,000,000 400,000

86,014 3,000,000 3,078,000

13,547 423,972

6,601,533

893,733

5,400,000

307,800

6,601,533

88

VICTORIAN INLAND MEAT AUTHORITY.

The audit of the accounts of the Authority for the year ended 30th June, 1974, is in course and the figures given below are subject to the completion thereof.

After making provision for long service leave, $25,800, sick pay, $64,529 and also for claims $78,000, transactions for 1973-74 resulted in a trad.ing loss of $2,281,138 compared with a trading profit of $22,371 in 1972-73.

A summarized statement of operations for the two years is as follows :­

REVENUE. 1972-73. 1973-74.

$ 14,214,307

2,770

14,217,077

13,575,092

133,126 71,942 4,362

12,586 59,568

186,312 71,718 80,000

14,194,706

22,371

749,245

771,616

16,319

755,297 2,436,831

1,681,534

Net Sales and Treatment Charges Interest on Investments

EXPENDITURE.

Purchases of Livestock and Meat, Working Expenses, General Expenses and Administration costs

Depreciation .. Interest-Treasurer of Victoria .. Interest-Rural Finance and Settlement Commission .. Loss on sale of fixed assets Provision for Long Service Leave .. Provision for Annual Leave Provision for Sick Pay Provision for loss on realization of stock Provision for claims

Profit on Trading .. Loss on Trading . . . . Accrued Interest on Government Loans at 1st January, 1973

written off .. Less Provision for loss on realization of stock written back

Provision for doubtful debts written back

Special Maintenance costs incurred during alterations of Ballarat Works ..

Accumulated Loss, 1st July

Accumulated Loss, 30th June

$

80,000 20,180

$ 8,453,961

450

8,454,411

10,425,037 138,793

3,390 25,800

64,529

78,000

10,735,549

2,281,138

100,180

2,180,958

39,539

2,220,497 1,681,534

3,902,031

Variations in balance-sheet items over the past two years may be seen in the summary hereunder :-

At 30th June-

-1973. 1974.

$ $ Current Liabilities . . . . .. . . . . . . . . 2,188,383 849,821 Loan Liability . . . . . . . . . . . . .. 1,678,900 4,026,738 Capital-Ist May, 1943 . . . . . . . . .. . . 580,069 580,069 Government Grants . . . . . . . . . . .. 1,936,300 1,936,300 Reserves . . . . . . . . .. . . . . . . 89,192 167,192

6,472,844 7,560,120

Current Assets . . . . . . . . .. . . . . 2,267,564 322,106 Fixed Assets less Depreciation . . . . . . . . .. 2,523,746 3,335,983 Accumulated Loss . . . . . . . . . . . . .. 1,681,534 3,902,031

6,472,844 7,560,120

•89

The Treasurer of Victoria has made advances by way of loan to the Authority amounting to $3,090,000 for the provision of working capital and fixed assets. During 1972-73, in accordance with the provisions of the Victorian Inland Meat Authority (Amendment) Act 1973, the liability to the Treasurer of Victoria at 1st January, 1973, $2,936,300, was reduced to $1,000,000. Subsequently this liability was further reduced in that year to $995,580 by repayments by the Authority. No payments of principal or interest were made during 1973-74.

Additional loans amounting to $1,522,510 were advanced during 1972-73 and 1973-74 by the Rural Finance and Settlement Commission for the reconstruction of the Ballarat Works, but no payments of principal or interest had been made in respect of these advances at 30th June, 1974.

The Reserve Bank continued to provide temporary financial accommodation on the security of the current assets of the Authority and a Government guarantee limited to amounts which varied between $1,000,000 and $2,200,000 at different times during the year. Under the provisions of Section 23 of the Victorian Inland Meat Authority Act 1958, the Treasurer of Victoria provided an advance by way of loan of $1,508,648 on 27th June, 1974, in fulfilment of this guarantee to the Reserve Bank.

The provisions of the Victorian Inland Meat Authority Act 1974, which came into operation on 14th May, 1974, gave the Authority power to sell or lease all or any of its property subject to such terms and conditions as are approved by the Governor in Council.

During 1973-74, the property of the Authority was sold to a co-operative company, such sale to take effect from 1st July, 1974.

ACKNOWLEDGMENT.

I appreciate the helpful co-operation received during the year from the members and staff of the several Authorities referred to in this Report.

Melbourne, 2nd December, 1974.

B. HAMILTON, Auditor-General.

Country Fire Authority.

Dandenong Valley Authority.

Electricity Commission.

Gas and Fuel Corporation of Victoria.

Geelong Harbor Trust.

Grain Elevators Board.

90

APPENDIX.

Latrobe Valley Water and Sewerage Board.

Melbourne and Metropolitan Board of Works.

Melbourne and Metropolitan Tramways Board.

Melbourne Harbor Trust.

Melbourne Underground Rail Loop Authority.

Metropolitan Fire Brigades Board.

Portland Harbor Trust.

Victorian Inland Meat Authority.

Bl' Authorlb': C. H. Melbourne.