australian electoral commission annual report 2010-2011 · 1.1 objectives of the australian...

FINANCIAL STATEMENTS

AEC ANNUAL REPORT 2010–11138

ContentsIndependent auditor’s report 139

Statement by the Electoral Commissioner and Chief Finance Officer 141

Statement of Comprehensive Income 142

Balance Sheet 143

Statement of Changes in Equity 144

Cash Flow Statement 145

Schedule of Commitments 146

Schedule of Contingencies 147

Schedule of Asset Additions 148

Schedule of Administered Items 149

Notes to and forming part of the Financial Statements 150

Note 1: Summary of Significant Accounting Policies 150

Note 2: Events after the Reporting Period 157

Note 3: Expenses 158

Note 4: Income 160

Note 5: Financial Assets 161

Note 6: Non-Financial Assets 163

Note 7: Payables 167

Note 8: Provisions 168

Note 9: Cash Flow Reconciliation 169

Note 10: Contingent Liabilities and Assets 170

Note 11: Senior Executive Remuneration 171

Note 12: Remuneration of Auditors 174

Note 13: Financial Instruments 175

Note 14: Income Administered on behalf of Government 177

Note 15: Expenses Administered on behalf of Government 177

Note 16: Assets and Liabilities Administered on behalf of Government 177

Note 17: Administered Reconciliation Table 178

Note 18: Administered Contingent Assets and Liabilities 178

Note 19: Administered Financial Instruments 178

Note 20: Appropriations 179

Note 21: Special Accounts 182

Note 22: Compensation and Debt Relief 183

Note 23: Assets held in Trust 183

Note 24: Reporting of Outcomes 184

Note 25: Comprehensive Income (Loss) attributable to the AEC 185

139FINANCIAL STATEMENTS


STATEMENT OF COMPREHENSIVE INCOMEfor the period ended 30 June 2011

2011 2010Notes $'000 $'000

EXPENSESEmployee benefits 3A 119,588 66,923 Supplier 3B 98,304 53,128 Depreciation and amortisation 3C 6,282 7,075 Write-down and impairment of assets 3D 93 607 Total expenses 224,267 127,733

LESS: OWN-SOURCE INCOMEOwn-source revenueSale of goods and rendering of services 4A 15,560 14,221 Other 4B 62 -Total own-source revenue 15,622 14,221

GainsSale of assets 4C 41 -Other 4D 578 79 Total gains 619 79 Total own-source income 16,241 14,300

Net cost of services 208,026 113,433

Revenue from Government 4E 191,463 108,997 Deficit attributable to the Australian Government (16,563) (4,436)

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves 378 108

Total comprehensive loss (16,185) (4,328)Total comprehensive loss attributable to the Australian Government 25 (16,185) (4,328)

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


2011 2010Notes $’000 $’000

ASSETSFinancial AssetsCash and cash equivalents 5A 1,280 1,210 Trade and other receivables 5B 13,546 25,933 Total financial assets 14,826 27,143

Non-Financial AssetsLand and buildings 6A,C 6,745 6,568 Property, plant and equipment 6B,C 4,423 6,026 Intangibles 6D,E 12,046 10,982 Inventories 6F 3,381 3,357 Other 6G 2,123 1,487 Total non-financial assets 28,718 28,420

Assets held for sale - 67 Lease incentive 220 272 Total assets 43,764 55,902

LIABILITIESPayablesSuppliers 7A 4,485 7,240 Other 7B 3,333 3,729 Total payables 7,818 10,969

ProvisionsEmployee provisions 8A 19,750 20,028 Other 8B 1,896 2,040 Total provisions 21,646 22,068

Total liabilities 29,464 33,037 Net assets 14,300 22,865

EQUITYParent Entity InterestContributed equity 9,631 2,011 Reserves 11,416 11,038 Retained surplus (accumulated deficit) (6,747) 9,816 Total parent entity interest 14,300 22,865


BALANCE SHEETas at 30 June 2011

AEC ANNUAL REPORT 2010–11144ST

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2011 2010Notes $’000 $’000

OPERATING ACTIVITIESCash receivedAppropriations 204,258 112,382 Sales of goods and rendering of services 15,079 17,575 Net GST received 8,897 3,218 Total cash received 228,234 133,175

Cash usedEmployees 119,279 66,799 Suppliers 110,589 60,045 Total cash used 229,868 126,844 Net cash from (used by) operating activities 9 (1,634) 6,331

INVESTING ACTIVITIESCash receivedProceeds from sales of property, plant and equipment 108 -Total cash received 108 -

Cash usedPurchase of property, plant and equipment 1,398 4,150 Purchase of intangibles 3,697 3,324 Total cash used 5,095 7,474 Net cash used by investing activities (4,987) (7,474)

FINANCING ACTIVITIESCash receivedContributed equity 3,205 1,345 Departmental Capital Budget 3,486 -Total cash received 6,691 1,345

Net cash from financing activities 6,691 1,345

Net increase in cash held 70 202

Cash and cash equivalents at the beginning of the reporting period 1,210 1,008

Cash and cash equivalents at the end of the reporting period 5A 1,280 1,210


CASH FLOW STATEMENTfor the period ended 30 June 2011


SCHEDULE OF COMMITMENTS

2011 2010BY TYPE $’000 $’000Commitments receivableCommitments receivable1 (79,112) (63,275)Net GST recoverable on commitments 2,069 (827)Total commitments receivable (77,043) (64,102)

Commitments payableOther commitmentsOperating leases2 30,000 24,725 Project commitments3 2,187 11,291 Other4 24,163 36,361 Total other commitments 56,350 72,377 Net commitments by type (20,693) 8,275

BY MATURITYCommitments receivableOther commitments receivableOne year or less (17,347) (15,595)From one to five years (59,229) (48,316)Over five years (467) (191)Total other commitments receivable (77,043) (64,102)

Commitments payableOperating lease commitmentsOne year or less 10,553 10,196 From one to five years 14,309 12,947 Over five years 5,138 1,582 Total operating lease commitments 30,000 24,725

Other CommitmentsOne year or less 15,405 26,961 From one to five years 10,945 20,163 Over five years - 528 Total other commitments 26,350 47,652 Net commitments by maturity (20,693) 8,275

4. Other commitments include Information Technology (IT) contractors and service agreements with IT and communication providers (2011: $18.6m; 2010: $22.5m).

Note: Commitments are GST inclusive where relevant.

as at 30 June 2011

This schedule should be read in conjunction with the accompanying notes.

1. Commitments receivable by the AEC relates largely to arrangements with each state and territory for the sharing of certain costs associated with the maintenance of the joint Commonwealth, State and Territory electoral rolls (2011: $66.4m; 2010: $60.4m)2. Operating leases include leases for office accommodation and storage that are effectively non-cancellable. The lease payments can be varied periodically to take account of an annual Consumer Price Index increase, a fixed increase or a market increase.3. Project commitments relate to Federal Election specific projects and state and local government election projects.


SCHEDULE OF CONTINGENCIESas at 30 June 2011

2011 2010$’000 $’000

Contingent assetsClaims for damages or costs 41 -Total contingent assets 41 -

Net contingent assets (liabilities) 41 -

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

Details of each class of contingent liabilities and contingent assets listed above are disclosed inNote 10: Contingent Liabilities and Assets, along with information on significant remote contingencies and contingencies that cannot be quantified.

AEC ANNUAL REPORT 2010–11148SC

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2011 2010Notes $’000 $’000

RevenueNon-taxation revenueElectoral fines/penalties 14A 1,973 65 Total non-taxation revenue 1,973 65 Total revenues administered on behalf of Government 1,973 65

1,973 65

for the period ended 30 June 2011Other 15A 53,202 260

53,202 260

as at 30 June 2011There are no administered assets or liabilities for the AEC. 16

OPERATING ACTIVITIESCash receivedElectoral fines/penalties 1,970 49 Other 3 16 Total cash received 1,973 65 Cash usedPolitical parties/Candidates 53,163 260 Refund of electoral fines/penalties 39 -Total cash used 53,202 260 Net cash flows from (used by) operating activities (51,229) (195)

Cash and cash equivalents at the beginning of the reporting period - -Cash from Official Public Account for: – Appropriations 53,163 260

53,163 260 Cash to Official Public Account for: – Appropriations (1,934) (65)

(1,934) (65)

Cash and cash equivalents at the end of the reporting period 17 - -Administered Commitmentsas at 30 June 2011There are no administered commitments for the AEC.Administered Contingenciesas at 30 June 2011There are no administered contingencies for the AEC.

SCHEDULE OF ADMINISTERED ITEMS

Expenses administered on behalf of Government

Assets and Liabilities administered on behalf of Government

Income administered on behalf of Governmentfor the period ended 30 June 2011

Total expenses administered on behalf of Government

Total income administered on behalf of Government

Administered Cash Flows

This schedule should be read in conjunction with the accompanying notes.

for the period ended 30 June 2011


Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Australian Electoral Commission

The Australian Electoral Commission (AEC) is an independent statutory body established under the Commonwealth Electoral Act 1918 for the purpose of conducting elections and referendums, maintaining the electoral roll and providing electoral information, education programs and related services.

While the AEC is predominantly funded by Parliamentary appropriations, revenue is also received for the provision of electoral services to other organisations.

The AEC is structured under one outcome to meet the following three programs:

• Program 1: Voter entitlement for Australians and support for electoral events and redistributions through maintaining an accurate and up-to-date electoral roll.

• Program 2: Access to an impartial and independent electoral system for Australians through the provision of electoral services.

• Program 3: Informed Australians through the provision of information services on electoral matters.

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

Administered items managed for the Government by the AEC are primarily the payment of Election Public Funding and collection of Electoral Fees and Fines under the operations of Program 2 (Impartial and independent electoral services).

1.2 Basis of Preparation of the Financial Statements

The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.

The financial statements have been prepared in accordance with:

a) Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2010; and

b) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

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

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

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


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

1.3 Significant Accounting Judgements and Estimates

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

1.4 New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. Of the new standards, amendments to standards and interpretations issued prior to the sign-off date, where applicable to the current reporting period had no financial impact on the AEC, although changes to AASB 101 Presentation of Financial Statements have changed the presentation of the AEC’s Financial Statements.

Future Australian Accounting Standard Requirements

The new standards, amendments to standards and interpretations issued by the Australian Accounting Standards Board prior to the sign-off date, are not expected to have a financial impact on the AEC for future reporting periods.

1.5 Revenue

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the AEC retains no managerial involvement or effective control over the goods;

c) the revenue and transaction costs incurred can be reliably measured; and

d) it is probable that the economic benefits associated with the transaction will flow to the AEC.

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

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and

b) the probable economic benefits associated with the transaction will flow to the AEC.

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

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

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AEC gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case


revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the AEC not yet paid to employees are presented gross as cash and a liability (payable). The total amount received under this scheme is disclosed as a footnote to the Note 7A: Suppliers.

1.6 Gains

Resources Received Free of Charge

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

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government entity as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7).

Sale of Assets

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

1.7 Transactions with the Government as Owner

Contributed Equity

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and from 1 July 2010, Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless it is in the nature of a dividend. There were no distributions to owners in 2010–11 or 2009–10.

1.8 Employee Benefits

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

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


Leave

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

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the AEC’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2011. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Annual leave is disclosed as current as there is a legal right to the payment, irrespective of whether the payment is expected to be paid within 12 months or not.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The AEC recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

AEC staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or have exercised SuperChoice and nominated their own fund.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item.

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

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final six working days of the year.

Temporary staff members of the AEC have their superannuation paid into their nominated fund or if no fund is nominated, the Australian Government Employees Superannuation Trust (AGEST) fund is used.

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

The AEC did not have any finance leases as at 30 June 2011.


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

Lease incentives taking the form of ‘free’ leasehold improvements and rent holidays are recognised as an asset and a liability. These assets are reduced across the life of the lease by allocating lease payments between rental expense and reduction of the liability.

1.10 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes notes and coins held and any deposits in bank accounts held at call with a bank or financial institution.

1.11 Financial Assets

Loans and Receivables

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

Impairment of Financial Assets

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

Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Effective Interest Method

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

Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

1.12 Financial Liabilities

Other Financial Liabilities

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

1.13 Contingent Liabilities and Contingent Assets

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


1.14 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition.

1.15 Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the AEC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AEC’s leasehold improvements with a corresponding provision for the ‘makegood’ recognised.

Revaluations

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

Asset Class Fair value measured at:

Leasehold Improvements Depreciation Replacement Cost

Infrastructure, Plant & Equipment Market Selling Price

Following initial recognition at cost, infrastructure plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Full valuations are conducted every five years and an internal assessment is carried out in the other years to ensure that the carrying amounts of assets did not differ materially from the assets fair values as at the reporting date. Valuations are carried out by an independent qualified valuer.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AEC using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.


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

2011 2010

Leasehold improvements lesser of lease term/useful life lesser of lease term/useful life

Plant and Equipment 5 to 10 years 5 to 10 years

IT Equipment 3 to 5 years 3 to 5 years

Impairment

All assets were assessed for impairment at 30 June 2011. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AEC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.16 Intangibles

The AEC’s intangibles comprise purchased software with an initial cost greater than $5,000 and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the AEC’s software are between 1 to 10 years (2009–10: 1 to 11 years).

All software assets were assessed for indications of impairment as at 30 June 2011.

1.17 Inventories

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

1.18 Taxation / Competitive Neutrality

The AEC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and

b) for receivables and payables.

1.19 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows reported in the Schedule of Administered items and related notes are accounted for in the same basis and using the same policies as for departmental items, except where otherwise state in Note 1.19.

Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.


Administered Cash Transfers to and from the Official Public Account

Revenue collected by the AEC for use by the Government rather than the AEC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the AEC on behalf of the Government and reported as such in the statement of cash flows in the schedule of administered items and in the administered reconciliation table in Note 17.

Revenue

All administered revenues are revenues relating to ordinary activities performed by the AEC on behalf of the Australian Government.

Note 2: Events After the Reporting Period

There are no events after the reporting date that will materially affect the financial statements.


Note 3: Expenses

2011 2010$’000 $’000

Note 3A: Employee BenefitsWages and salaries 108,826 57,363 Superannuation:

Defined contribution plans 5,074 2,380 Defined benefit plans 5,312 5,977

Leave and other entitlements (528) (605)Separation and redundancies 904 1,808 Total employee benefits 119,588 66,923

Note 3B: SuppliersGoods and servicesConsultants 1,059 862 Contractors 9,289 6,784 Travel 5,859 4,072 IT services 11,156 5,309 Inventory 6,500 468 Other 52,810 24,017 Total goods and services 86,673 41,512

Goods and services are made up of:Provision of goods – related entities 6,047 5,712 Provision of goods – external parties 53,423 18,550 Rendering of services – related entities 6,288 915 Rendering of services – external parties 20,915 16,335 Total goods and services 86,673 41,512

Other supplier expensesOperating lease rentals – related entities:

Minimum lease payments 1,786 1,487 Operating lease rentals – external parties:

Minimum lease payments 9,233 9,787 Workers compensation expenses 612 342 Total other supplier expenses 11,631 11,616 Total supplier expenses 98,304 53,128


Note 3: Expenses (cont.)

2011 2010$’000 $’000

Note 3C: Depreciation and AmortisationDepreciation:

Property, plant and equipment 1,798 2,857 Leasehold Improvements 1,851 1,931

Total depreciation 3,649 4,788

Amortisation:Intangibles 2,633 2,287

Total amortisation 2,633 2,287 Total depreciation and amortisation 6,282 7,075

Note 3D: Write-Down and Impairment of AssetsImpairments of financial assets:

Bad and doubtful debts 42 (1)Asset write-downs and impairments from:

Impairment of property, plant and equipment 51 9 Impairment on intangible assets - (1)Impairment on leasehold improvements - 600

Total write-down and impairment of assets 93 607


Note 4: Income

2011 2010OWN-SOURCE REVENUE $’000 $’000

Note 4A: Sale of Goods and Rendering of ServicesProvision of goods - related entities 45 109 Provision of goods - external parties 11,016 10,882 Rendering of services - related entities 3,584 3,000 Rendering of services - external parties 915 230 Total sale of goods and rendering of services 15,560 14,221

Note 4B: Other RevenueOther 62 -Total other revenue 62 -

GAINS

Note 4C: Sale of AssetsProperty, plant and equipment:

Gain from sale 41 -Net gain from sale of assets 41 -

Note 4D: Other GainsResources received free of charge 80 79 Change in fair value through profit and loss:

Leaseheold Improvements 498 -Total other gains 578 79

REVENUE FROM GOVERNMENT

Note 4E: Revenue from GovernmentAppropriations :

Departmental appropriation 182,463 99,997 Departmental special appropriations 9,000 9,000

Total revenue from Government 191,463 108,997

Australian Electoral Commission Page 21


Note 5: Financial Assets

2011 2010$’000 $’000

Note 5A: Cash and Cash EquivalentsCash on hand or on deposit 1,280 1,210 Total cash and cash equivalents 1,280 1,210

Note 5B: Trade and Other ReceivablesGood and Services:

Goods and services – related entities 7 283 Goods and services – external parties 539 59

Total receivables for goods and services 546 342

Appropriations receivable:Program funding 3,378 16,173 Equity Injections 5,989 6,953 Departmental Capital Budget 1,893 -

Total appropriations receivable 11,260 23,126

Other receivables:GST receivable from the Australian Taxation Office 379 1,282 Other – related entities 205 24 Other – external parties 1,156 1,167

Total other receivables 1,740 2,473 Total trade and other receivables (gross) 13,546 25,941

Less impairment allowance account:Goods and services - 8

Total impairment allowance account - 8 Total trade and other receivables (net) 13,546 25,933

Receivables are expected to be recovered in:No more than 12 months 13,546 25,933 More than 12 months - -

Total trade and other receivables (net) 13,546 25,933

Receivables are aged as follows:Not overdue 13,516 25,882 Overdue by:

0 to 30 days 30 51 More than 90 days - 8

Total receivables (gross) 13,546 25,941

The impairment allowance account is aged as follows:Overdue by:

More than 90 days - (8)Total impairment allowance account - (8)


Note 5: Financial Assets (cont.)

Reconciliation of the Impairment Allowance Account:Movements in relation to 2011

Total$'000 $'000

Opening balance 8 8 Amounts written off - -Amounts recovered and reversed - -Increase/decrease recognised in net surplus (8) (8)

Closing balance - -

Movements in relation to 2010Goods and

services Total$'000 $'000

Opening balance 9 9 Amounts written off (3) (3)Amounts recovered and reversed - -Increase/decrease recognised in net surplus 2 2

Closing balance 8 8

Goods and services


Note 6: Non-Financial Assets

2011 2010$’000 $’000

Note 6A: Land and BuildingsLeasehold improvements:

Work in progress 164 111 Fair value 7,439 7,392 Accumulated depreciation (858) (935)

Total leasehold improvements 6,745 6,568 Total land and buildings 6,745 6,568

No land or buildings were expected to be sold or disposed of within the next 12 months.

Note 6B: Property, Plant and EquipmentOther property, plant and equipment:

Fair value 4,423 6,026 Accumulated depreciation - -

Total other property, plant and equipment 4,423 6,026 Total property, plant and equipment 4,423 6,026

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 1. In June 2011, an independent valuer from Rodney Hyman Asset Services Pty Ltd conducted a desktop update of the assets valued in 2010 plus the additions and disposals for the 2010–11 financial year.

A revaluation increment of $721,929 for leasehold improvements (2010: $669,247) was credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet. No movement in makegood was recorded in 2011 (2010: $114k). Similarly a decrement of $343,917 for plant and equipment (2010: $675,826 decrement) was debited to the asset revaluation reserve and included in the equity section of the balance sheet.

A revaluation increment of $498,061 for leasehold improvements (2010: decrement $201,274) was credited to the operating result.

No indicators of impairment were found for infrastructure, plant and equipment (2010: $nil).

No indicators of impairment were found for land and buildings (2010: $491,870).


Note 6: Non-Financial Assets (cont.)

Leasehold Improvements IP&E Total

$’000 $’000 $’000As at 1 July 2010Gross book value 7,503 6,026 13,529 Accumulated depreciation and impairment (935) - (935)Net book value 1 July 2010 6,568 6,026 12,594 Additions*

By purchase 808 590 1,398 Revaluations and impairments recognised in other comprehensive income 722 (344) 378 Revaluations recognised in the operating result 498 - 498 Depreciation expense (1,851) (1,798) (3,649)Disposals - (51) (51)Net book value 30 June 2011 6,745 4,423 11,168

Net book value as of 30 June 2011 represented by:Gross book value 7,603 4,423 12,026 Accumulated depreciation and impairment (858) - (858)

6,745 4,423 11,168

Land Buildings Total$’000 $’000 $’000

As at 1 July 2009Gross book value 7,959 6,808 14,767 Accumulated depreciation and impairment (894) (4) (898)Net book value 1 July 2009 7,065 6,804 13,869 Additions*

By purchase 1,460 2,845 4,305 Revaluations and impairments recognised in other comprehensive income669 (675) (6)Revaluations recognised in the operating result (201) - (201)Impairments recognised in the operating result (492) - (492)Assets held for sale or in a disposal group held for sale - (67) (67)Depreciation expense (1,932) (2,857) (4,789)Disposals (1) (24) (25)Net book value 30 June 2010 6,568 6,026 12,594

Net book value as of 30 June 2010 represented by:Gross book value 7,503 6,026 13,529 Accumulated depreciation and impairment (935) - (935)

6,568 6,026 12,594

* Disaggregated additions information are disclosed in the Schedule of Asset Additions.


Note 6C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2010–11)

Note 6C (cont.): Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2009–10)



Note 6D: IntangiblesComputer software:

Internally developed – in progress 806 953 Internally developed – in use 36,673 32,984 Purchased 1,838 1,683 Accumulated amortisation (27,271) (24,638)

Total computer software 12,046 10,982 Total intangibles 12,046 10,982

Computer software

internally developed

Computer software

purchased Total$’000 $’000 $’000

As at 1 July 2010Gross book value 33,937 1,683 35,620 Accumulated amortisation and impairment (23,854) (784) (24,638)Net book value 1 July 2010 10,083 899 10,982 Additions*

By purchase or internally developed 3,542 155 3,697 Amortisation (2,159) (474) (2,633)Net book value 30 June 2011 11,466 580 12,046

Net book value as of 30 June 2011 represented by:Gross book value 37,479 1,838 39,317 Accumulated amortisation and impairment (26,013) (1,258) (27,271)

11,466 580 12,046

Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles (2010–11)


No intangibles are expected to be sold or disposed of within the next 12 months.

No indicators of impairment were found for intangible assets.



Computer software

internally developed

Computer software

purchased Total$’000 $’000 $’000

As at 1 July 2009Gross book value 32,576 1,707 34,283 Accumulated amortisation and impairment (24,227) (9) (24,236)Net book value 1 July 2009 8,349 1,698 10,047 Additions*

By purchase or internally developed 3,182 132 3,314 Impairments recognised in the operating result (9) - (9)Amortisation (1,448) (839) (2,287)Disposals - (92) (92)Net book value 30 June 2010 10,083 899 10,973

Net book value as of 30 June 2010 represented by:Gross book value 33,937 1,683 35,620 Accumulated amortisation and impairment (23,854) (784) (24,638)

10,083 899 10,982

Note 6F: InventoriesElection equipment at cost (ballot paper and voting equipment)

3,381 3,357 Total inventories 3,381 3,357

No items of inventory were recognised at fair value less cost to sell.

Note 6G: Other Non-Financial AssetsPrepayments 2,123 1,487

Total other non-financial assets 2,123 1,487

Total other non-financial assets - are expected to be recovered in:No more than 12 months 2,022 1,487

More than 12 months 101 -Total other non-financial assets 2,123 1,487

Note 6E (Cont'd): Reconciliation of the Opening and Closing Balances ofIntangibles (2009-10)

No indicators of impairment were found for other non-financial assets.

During 2010-11, $6,499,952 of inventory held for distribution was recognised as an expense (2009–10: $468,137).


Note 7: Payables

2011 2010$’000 $’000

Note 7A: SuppliersTrade creditors and accruals 4,485 7,240 Total supplier payables 4,485 7,240

Supplier payables expected to be settled within 12 months:Related entities 642 252 External parties 3,843 6,988

Total 4,485 7,240

Total supplier payables 4,485 7,240

Note 7B: Other PayablesSalaries and wages 1,448 1,556 Superannuation 192 304 Separations and redundancies 27 34 Unearned revenue 1,666 1,835 Total other payables 3,333 3,729

Total other payables are expected to be settled in:No more than 12 months 3,333 3,729 More than 12 months - -

Total other payables 3,333 3,729

Settlement was usually made within 30 days.* The AEC received $4,560 (2010: Nil) under the Paid Parental Leave Scheme.


2011 2010$’000 $’000

Note 8A: Employee ProvisionsLeave 19,750 20,028 Total employee provisions 19,750 20,028

Employee provisions are expected to be settled in:No more than 12 months 5,346 3,768 More than 12 months 14,404 16,260

Total employee provisions 19,750 20,028

Note 8B: Other ProvisionsProvision for lease incentives 384 495 Provision for restoration obligations 1,362 1,398 Provision for lease straight-line 150 147 Total other provisions 1,896 2,040

Other provisions are expected to be settled in:No more than 12 months 624 402 More than 12 months 1,272 1,638

Total other provisions 1,896 2,040

Provision for lease

incentivesProvision for

restoration

Provision for lease straight

line Total$’000 $’000 $’000

Carrying amount 1 July 2010 495 1,398 147 2,040 Additional provisions made 42 71 10 123 Amounts used (153) (107) (7) (267)

Closing balance 2011 384 1,362 150 1,896

Note 8: Provisions

The AEC currently has 41 agreements for the leasing of premises which have provisions requiring the entity to restore the premises to their original condition at the conclusion of the lease. The entity has made a provision to reflect the present value of this obligation.


Note 9: Cash Flow Reconciliation

2011 2010$’000 $’000

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement

Cash and cash equivalents as per:Cash flow statement 1,280 1,210 Balance sheet 1,280 1,210 Difference - -

Reconciliation of net cost of services to net cash from operating activities:Net cost of services (208,026) (113,433)Add revenue from Government 191,463 108,997

Adjustments for non-cash itemsDepreciation / amortisation 6,282 7,075 Net write (up)/down of non-financial assets (448) 782 Gain on disposal of assets (41) -

Changes in assets / liabilities(Increase) / decrease in lease incentive asset 52 (272)(Increase) / decrease in net receivables 13,317 4,002 (Increase) / decrease in inventories (24) (2,693)(Increase) / decrease in prepayments (636) 8 Increase / (decrease) in employee provisions (278) (150)Increase / (decrease) in supplier payables (2,755) 1,514 Increase / (decrease) in other payables (396) 427 Increase / (decrease) in other provisions (144) 74 Net cash from (used by) operating activities (1,634) 6,331


2011 2010 2011 2010$’000 $’000 $’000 $’000

Contingent assetsNew 41 - 41 -

Total contingent assets 41 - 41 -

Net contingent assets (liabilities) 41 - 41 -

Quantifiable Contingencies

Unquantifiable Contingencies

Significant Remote Contingencies

Note 10: Contingent Liabilities and Assets

At 30 June 2011, the AEC had no unquantifiable contingencies.

The AEC has no significant remote contingencies.

damages or costs TotalClaims for

The Schedule of Contingencies reports contingent assets in respect of recoverable court cost of $41,045 (2010: Nil). The estimate is based on costs incurred by the AEC.


Note 11: Senior Executive Remuneration

2011 2010$ $

Short-term employee benefits:Salary 3,490,570 2,566,345 Annual leave accrued 306,908 219,828 Performance bonuses 1 - 233,684 Other 85,002 42,124

Total short-term employee benefits 3,882,480 3,061,981

Post-employment benefits:Superannuation 427,885 364,921

Total post-employment benefits 427,885 364,921

Other long-term benefits:Long-service leave 98,649 70,659

Total other long-term benefits 98,649 70,659

Termination benefits 40,197 280,674 Total 4,449,211 3,778,235

Notes:

Note 11A: Senior Executive Remuneration Expense for the Reporting Period

1. Note 11A was prepared on an accrual basis (so the performance bonus expenses disclosed above differ from the cash 'Bonus paid' in Note 11B). There were no performance bonuses in 2010–11.

2. Note 11A excludes acting arrangements and part-year service where remuneration expensed for a senior executive was less than $150,000.

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Note 11: Senior Executive Remuneration (cont.)

Variable Elements:With the exception of bonuses, variable elements were not included in the 'Fixed Elements and Bonus Paid' table above. The following variable elements were available as part of senior executives' remuneration package:(a) Bonuses:

• 2010/11 onwards no bonuses will be paid. Bonuses in table 11B were paid in 2010/11 however relate to the prior financial year.

(b) On average senior executives were entitled to the following leave entitlements:• Annual Leave (AL): entitled to 20 days (2010: 20 days) each full year worked (pro-rata for part-time SES);• Personal Leave (PL): entitled to 18 days (2010: 20 days) or part-time equivalent; and• Long Service Leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act 1976 .

(c) Senior executives were members of one of the following superannuation funds:• Commonwealth Superannuation Scheme (CSS): this scheme is closed to new members, and employer contributions were averaged 28.3 per cent (2010: 24 per cent) (including productivity component). More information on CSS can be found at http://www.css.gov.au.• Public Sector Superannuation Scheme (PSS): this scheme is closed to new members, with current employer contributions were set at 15.4 per cent (2010: 15.4 per cent) (including productivity component). More information on PSS can be found at http://www.pss.gov.au.

(d) Variable allowances: • Retention payment of $2,750 payable in relation to election events

(e) Various salary sacrifice arrangements were available to senior executives including super, motor vehicle and expense payment fringe benefits which come out of their existing remuneration package.

Note 11C: Other Highly Paid Staff

During the reporting period, there were no employees whose salary plus performance bonus were $150,000 or more who had a role as a senior executive. These employees did not have a role as senior executive and were therefore not disclosed as senior executives in Note 17A and Note 17B.


Note 12: Remuneration of Auditors

2011 2010$’000 $’000

Financial statement audit services were provided free of charge to the AEC.

Fair value of the services provided:Audit Services 80 79

Total 80 79

No other services were provided by the Auditor-General.


2011 2010$'000 $'000

Note 13A: Categories of Financial InstrumentsFinancial AssetsCash and cash equivalents 1,280 1,210 Loans and receivables:

Receivables for goods and services 546 342 Carrying amount of financial assets 1,826 1,552

Financial LiabilitiesAt amortised cost:

Trade Creditors 4,485 7,240 Carrying amount of financial liabilities 4,485 7,240

Note 13B: Net Income and Expense from Financial AssetsLoans and receivablesImpairment (8) (1)Net gain/(loss) from loans and receivables (8) (1)

Note 13C: Fair Value of Financial Instruments

Note 13D: Credit Risk

The following table illustrates the AEC's gross exposure to credit risk, excluding any collateral or credit enhancements.

2011 2010$'000 $'000

Financial assetsCash and cash equivalents 1,280 1,210 Receivables for goods and services 546 342 Total 1,826 1,552

The AEC has no significant exposures to any concentration of credit risk.

The carrying amount of financial instruments does not differ from the fair value.

Note 13: Financial Instruments

The net income/expense from financial assets not at fair value from profit and loss is –$8,000 (2010: –$1,000).

The AEC's maximum exposure to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.


Note 13D: Credit Risk (cont.)

Ageing of financial assets that were past due but not impaired for 20110 to 30 61 to 90 90+

days days days Total$'000 $'000 $'000 $'000

Receivables for goods and services 30 - - - 30 Total 30 - - - 30

Ageing of financial assets that were past due but not impaired for 20100 to 30 61 to 90 90+

days days days Total$'000 $'000 $'000 $'000

Receivables for goods and services 51 - - - 51 Total 51 - - - 51

Note 13E: Liquidity Risk

Maturities for non-derivative financial liabilities 2011within 1

year Total$'000 $'000

Trade Creditors 4,485 4,485 Total -

Maturities for non-derivative financial liabilities 2010within 1

year Total$'000 $'000

Trade Creditors 7,240 7,240 Total 7,240 7,240

Note 13F: Market Risk

The AEC's financial liabilities are payables. The exposure to liquidity risk is based on the notion that the AEC will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the AEC and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.

The AEC holds basic financial instruments that do not expose the AEC to certain market risks. The AEC is not exposed to 'Currency risk' or 'Other price risk'.

Note 13: Financial Instruments (cont.)

31 to 60days

$'000

31 to 60days

$'000


Notes to the Schedule of Administered Items

Note 14: Income Administered on Behalf of Government

2011 2010$'000 $'000

REVENUE

Non–Taxation RevenueNote 14A: Fees and FinesElectoral fines/penalties 1,970 49 Candidate deposits 3 9 Other - 7 Total fees and fines 1,973 65

Note 15: Expenses Administered on Behalf of Government

2011 2010$'000 $'000

EXPENSES

Note 15A: Other ExpensesRefunds – electoral fines/penalties 39 -Election public funding 53,163 260 Total grants 53,202 260

Note 16: Assets and Liabilities Administered on Behalf of Government

There are no administered assets or liabilities for the AEC.


2011 2010$’000 $’000

Opening administered assets less administered liabilities as at 1 July - -Plus: Administered income (1,973) 65 Less: Administered expenses 53,202 (260)Administered transfers to/from Australian Government:

Appropriation transfers from OPA:Annual appropriations for administered expenses (53,163) 260

Transfers to OPA 1,934 (65)Closing administered assets less administered liabilities as at 30 June - -

There are no administered contingencies, remote or quantifiable, for the AEC.

There are no administered financial instruments for the AEC.

Note 17: Administered Reconciliation Table

Note 18: Administered Contingent Assets and Liabilities

Note 19: Administered Financial Instruments


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FMb

s. 30

s. 31

s. 32

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0D

EPA

RT

ME

NT

AL

Ord

inar

y an

nual

serv

ices

182,

742

-5,

100

-15

,187

-

203,

029

213,

931

(10,

902)

Oth

er se

rvic

esEq

uity

2,24

1 -

- -

- -

2,24

1 3,

205

(964

)T

otal

dep

artm

enta

l18

4,98

3 -

5,10

0 -

15,1

87

-20

5,27

0 21

7,13

6 (1

1,86

6)

Not

es:

(a) A

ppro

pria

tions

redu

ced

unde

r App

ropr

iatio

n A

cts (

No.

1, 3

, 5) 2

010–

11: s

ectio

ns 1

0, 1

1, 1

2 an

d 15

and

und

er A

ppro

pria

tion

Act

s (N

o. 2

, 4, 6

) 20

10–1

1: se

ctio

ns 1

2,13

, 14

and

17. D

epar

tmen

tal a

ppro

pria

tions

do

not l

apse

at f

inan

cial

yea

r-en

d. H

owev

er, t

he re

spon

sibl

e M

inis

ter m

ay d

ecid

e th

at p

art o

r all

of a

dep

artm

enta

l app

ropr

iatio

n is

not

requ

ired

and

requ

est t

hat t

he F

inan

ce M

inis

ter r

educ

e th

at a

ppro

pria

tion.

The

redu

ctio

n in

the

appr

opria

tion

is e

ffect

ed b

y th

e Fi

nanc

e M

inis

ter's

det

erm

inat

ion

and

is d

isal

low

able

by

Parli

amen

t.

(b) A

dvan

ce to

the

Fina

nce

Min

iste

r (A

FM) –

App

ropr

iatio

n A

cts (

No.

1, 3

, 5) 2

010–

11: s

ectio

n 13

and

App

ropr

iatio

n A

cts (

No.

2, 4

, 6) 2

010–

11:

sect

ion

15.

Not

e 20

: App

ropr

iatio

ns

Tab

le A

: Ann

ual A

ppro

pria

tions

('R

ecov

erab

le G

ST e

xclu

sive

') 2011

App

ropr

iatio

ns

App

ropr

i-at

ion

appl

ied

in 2

011

(cur

rent

and

pr

ior

year

s)V

aria

nce

App

ropr

iatio

n A

ctF

MA

Act

Tot

al

appr

opri

-at

ion


Ann

ual

App

ropr

i-at

ion

App

ropr

i-at

ions

re

duce

daA

FMb

s. 14

(Act

No.

1)

s. 30

s. 31

s. 32

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

$'00

0$'

000

DE

PAR

TM

EN

TA

LO

rdin

ary

annu

al se

rvic

es99

,997

-

- -

-17

,575

-

117,

572

120,

957

(3,3

85)

Oth

er se

rvic

esEq

uity

1,91

6 -

- -

- -

-1,

916

1,34

5 57

1 T

otal

dep

artm

enta

l10

1,91

3 -

- -

-17

,575

-

119,

488

122,

302

(2,8

14)

Not

es:

Not

e 20

: App

ropr

iatio

ns (c

ont.)

Tab

le A

(con

t.): A

nnua

l App

ropr

iatio

ns ('

Rec

over

able

GST

exc

lusi

ve')

2010

App

ropr

iatio

ns

Tot

al

appr

opri

-at

ion

Var

ianc

e

(a) A

ppro

pria

tions

redu

ced

unde

r App

ropr

iatio

n A

cts (

No.

1, 3

) 200

9–10

: sec

tions

10,

11

and

12 a

nd u

nder

App

ropr

iatio

n A

cts (

No.

2, 4

) 200

9,10

: se

ctio

ns 1

2, 1

3 an

d 14

. Dep

artm

enta

l app

ropr

iatio

ns d

o no

t lap

se a

t fin

anci

al y

ear-

end.

How

ever

, the

resp

onsi

ble

Min

iste

r may

dec

ide

that

par

t or a

ll of

a d

epar

tmen

tal a

ppro

pria

tion

is n

ot re

quire

d an

d re

ques

t tha

t the

Fin

ance

Min

iste

r red

uce

that

app

ropr

iatio

n. T

he re

duct

ion

in th

e ap

prop

riatio

n is

ef

fect

ed b

y th

e Fi

nanc

e M

inis

ter's

det

erm

inat

ion

and

is d

isal

low

able

by

Parli

amen

t. (b

) Adv

ance

to th

e Fi

nanc

e M

inis

ter (

AFM

) – A

ppro

pria

tion

Act

s (N

o. 1

, 3) 2

009–

10: s

ectio

n 13

and

App

ropr

iatio

n A

cts (

No.

2, 4

) 200

9–10

: se

ctio

n 15

.

FM

A A

ctA

ppro

pri-

atio

n ap

plie

d in

20

10

(cur

rent

an

d pr

ior

year

s)

App

ropr

iatio

n A

ct


Table B: Unspent Departmental Annual Appropriations ('Recoverable GST exclusive')

2011 2010$'000 $'000

Appropriation Act 1 – 2010–11 2,875 - Appropriation Act 1 – 2010–11 – Cash 1,280Appropriation Act 1 – 2010–11 – Departmental Capital Budget 1,893Appropriation Act 1 – 2009–10 - 12,385 Appropriation Act 1 – 2009–10 – Cash - 1,210 Appropriation Act 3 – 2009–10 503 3,788 Act 2 – Non Operating – Equity Injection – 2010–11 1,927 - Act 2 – Non Operating – Equity Injection – 2009–10 1,916 1,916 Act 2 – Non Operating – Equity Injection – 2008–09 2,146 2,197 Act 2 – Non Operating – Equity Injection – 2007–08 - 587 Act 2 – Non Operating – Equity Injection – 2006–07 - 464 Act 4 – Non Operating – Equity Injection – 2006–07 - 1,789 Total 12,540 24,336

Table C: Special Appropriations ('Recoverable GST exclusive')

2011 2010Type Purpose $'000 $'000

Commonwealth Electoral Act 1918 (Administered) Unlimited Amount

Election Public Funding

53,163 260

Financial Management and Accountability Act 1997 – s.28 Refund of Receipts

Refund Refund of Non Voter Fines

39 -

Commonwealth Electoral Act 1918 (Departmental) Unlimited Amount

Electoral Roll Review

9,000 9,000

Total 62,202 9,260

Authority

Appropriation applied

Authority

Note 20: Appropriations (cont.)

The AEC has recently become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.

The AEC will investigate these circumstances and any impact on its special appropriations shown below, seeking legal advice as appropriate.


Note 21: Special Accounts

2011 2010$'000 $'000

Balance brought forward from previous period - -Appropriation for reporting period - -Costs recovered - -Realised investments - -Other receipts 779 16

Total increase 779 16 Available for payments 779 16

Repayments 350 2 Total decrease 350 2 Balance carried to next period and represented by: 429 14 Cash – transferred to the Official Public Account (429) (14)Total balance carried to the next period - -

Purpose: for the expenditure of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth; for example, candidate deposits.

The AEC has recently become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.

The AEC will investigate these circumstances and any impact on its special appropriations shown below, seeking legal advice as appropriate.

Other Trust Monies Account (Special Public Money)

Establishing Instrument: Financial Management and Accountability Act 1997 ; section 20.

Appropriation: Financial Management and Accountability Act 1997; section 21.


Note 22: Compensation and Debt Relief

2011 2010$ $

Compensation and Debt Relief – DepartmentalNo ‘Act of Grace payments' were expended during the reporting period (2010: No expenses). - -

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2010: No waivers). - -

Five payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2010: No payments). 17,714 -

One ex-gratia payment was provided for during the reporting period (2010: No payments). 2,244 -

Compensation and Debt Relief – Administered

Note 23: Assets Held in Trust

Monetary assets

2011 2010$'000 $'000

Other Trust Monies – Monetary AssetTotal amount held at the beginning of the reporting period - -Receipts 779 16 Payments:

Title passed to Australian Government (429) (14)Returned to original owner (350) (2)

Total amount held at the end of the reporting period - -

Financial assets held in trust are also disclosed in Note 21 : Other Trust Monies Account (Special Public Money)

The values above were estimated fair values at the time when acquired.

No payments were made during the reporting period (2010: No payments).


Not

e 24

A: N

et C

ost o

f Out

com

e D

eliv

ery

2011

2010

2011

2010

2011

2010

2011

2010

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

$’00

0$’

000

Exp

ense

sA

dmin

iste

red

- -

53,2

0226

0 -

-53

,202

260

Dep

artm

enta

l47

,074

69

,238

16

0,84

8 42

,298

16

,346

16

,197

22

4,26

8 12

7,73

3 To

tal

47,0

74

69,2

38

214,

050

42,5

58

16,3

46

16,1

97

277,

470

127,

993

Adm

inis

tere

d -

- -

- -

- -

-D

epar

tmen

tal

- -

- -

- -

- -

Tota

l -

- -

- -

- -

-

Oth

er o

wn-

sour

ce in

com

eA

dmin

iste

red

- -

(1,9

73)

(65)

- -

(1,9

73)

(65)

Dep

artm

enta

l(1

1,31

5)(1

0,84

8)(4

,844

)(3

,439

)(8

3)(1

3)(1

6,24

2)(1

4,30

0)To

tal

(11,

315)

(10,

848)

(6,8

17)

(3,5

04)

(83)

(13)

(18,

215)

(14,

365)

Net

cos

t of o

utco

me

deliv

ery

35,7

59

58,3

90

207,

233

39,0

54

16,2

63

16,1

84

259,

255

113,

628

The

net c

osts

show

n ab

ove

incl

ude

intra

-gov

ernm

ent c

osts

.

Inco

me

from

non

-gov

ernm

ent s

ecto

r

Out

com

e 1

is d

escr

ibed

in N

ote

1.1.

The

AEC

's re

sour

cing

con

sum

ptio

n va

ries c

onsi

dera

bly

from

yea

r to

year

and

bet

wee

n pr

ogra

ms d

epen

ding

on

the

phas

e of

the

elec

tora

l cyc

le.

Not

e 24

: Rep

ortin

g of

Out

com

es

In d

eter

min

ing

the

full

cost

of o

utpu

ts, t

he A

EC c

harg

es d

irect

cos

ts to

pro

gram

s and

allo

cate

s ove

rhea

ds b

etw

een

prog

ram

s on

the

basi

s of f

ull-

time

equi

vale

nt st

aff.

Prog

ram

2T

otal

Out

com

e 1

Prog

ram

1Pr

ogra

m 3


2011 2010$’000 $’000

Total Comprehensive Income (loss) attributable to the AECTotal comprehensive income (loss)* (16,185) (4,328)Plus: non-appropriated expenses

Depreciation and amortisation expenses 6,282 -Total comprehensive income (loss) attributable to the AEC (9,903) (4,328)

Note 25: Comprehensive Income (Loss) attributable to the AEC

* As per the Statement of Comprehensive Income.

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