Notes to Administered Statements

13. Notes to Administered Statements

13.1 Administered Revenue from State Government
Administered Revenue from Government includes revenue from appropriations, including appropriations carried forward under section 8A of the Public Account Act 1986, and from Items Reserved by Law

	2004	2004	2003
	Actual	Orginal Budget	Actual
	$’000	$’000	$’000

Recurrent Appropriation	57,262	56,706	54,999
Appropriation Carried Forward under section 8A of the Public Account Act1 1986	256	...	200
Less Revenue Received in Advance	-317

Items Reserved by Law:
Contribution towards the Construction of Streets in Towns by Municipal Councils	...	52	...

Total Administered Revenue from Government	57,201	56,758	55,199

Section 8A of the Public Account Act 1986 allows for an unexpended balance of an appropriation to be transferred to an Account in the Special Deposits and Trust Fund for such purposes and conditions as approved by the Treasurer. In the initial year, the carry forward is recognised as a liability, Revenue Received in Advance. The carry forward is recognised as revenue in the following year, assuming that the conditions of the carry forward are met and the funds are expended.

13.2 Administered Commonwealth Grants

	2003	2004
	$’000	$’000
Specific Grants
Commonwealth allocation of National Road Funds (L090)	24,625	14,065
Other Commonwealth Grants	237	33
Total	24,862	14,098

13.3 Administered User Charges
Proceeds from sale of goods and services:

	2003	2004
	$’000	$’000
Goods
Mineral Royalties	7,641	9,893
Mineral Land Rentals	976	822
Custom Plates	171	197

Services
MAIB Commission	1,590	1,713
Registration and Licensing	555	679
Other	238	203
Total	11,171	13,507

13.4 Administered Fees and Fines
Proceeds from fees and fines:

	2003	2004
	$’000	$’000
Fees
Public Vehicle Licensing	181	233
Fees from Mineral Lands	286	352
Storage of Explosives and Inflammable Goods	363	313
Other Workplace Standards fees	98	122
Driver Licensing	6,100	5,534
Electrical Safety	327	313
Vehicle Registration	21,420	23,482

Fines
Weighbridge	40	20
Other	101	95
Total	28,916	30,464

13.5 Gross Proceeds and Expense From the Disposal of Fixed Assets

	2003	2004
	$’000	$’000
Non financial assets – plant and equipment:
Revenue (proceeds) from sale	30	...
Written down value of disposed assets	-20	...
Net Profit/(Loss)	10	...

13.6 Other Administered Revenue from Ordinary Activities

	2003	2004
	$’000	$’000
Monies collected on behalf of external bodies	188,790	212,131
Grants and subsidies	5,183	5,723
Interest	58	64
Other administered revenue	173	183
Revenue on increase in investment of State Owned Corporations	83,144
Total	277,348	218,101

13.7 Administered Employee Entitlements

	2003	2004
	$’000	$’000
Wages and salaries	1,925	2,185
Long Service Leave	24	26
Superannuation	194	219
Payroll Tax	127	140
Fringe Benefits Tax	17	20
Workers’ Compensation	22	22
Total	2,309	2,612

13.8 Administered Depreciation and Amortisation

	2003	2004
	$’000	$’000
Property, Plant & Equipment	16	17
Total	16	17

13.9 Administered Grants and Subsidies

	2003	2004
	$’000	$’000
Grants
King Island Shipping Contract	95	12
Furneaux Shipping Contract	307	212
National Road Transport Commission: Local Government Contribution	1,500	1,500
Tasmanian Racing Assistance	1,260	1,260
Racing Tasmania: Interdominion Grant	25	25
Private Forests Tasmania	1,235	1,263
Project CODES	68	68
Rehabilitation of Degraded Mineral Lands	675	2
Contribution to Marine and Safety Tasmania	820	800
Community Service Obligation: Civil Construction	54	...
Taxi Area Fund Grants	15	...
WorkCover Tribunal Transfer	1,095	1,102
Total Grants	7,149	6,244

Subsidies
Community Service Obligation: Payment to the Metro Tasmania Pty Ltd	19,990	21,259
Payments to School Bus Operators: Route Services	6,122	6,313
Payments to School Bus Operators: Contract Services	18,303	19,099
Conveyance Allowances	660	655
Pensioner Air Travel Subsidy	6	8
Transport Access Scheme	1,283	1,598
Pensioner, Aged and Unemployed Concessions (Private Operators)	880	895
Bruny Island Ferry Contract Payments	468	485
Urban Bus Service	1,215	1,261

Total Subsidies	48,927	51,573

Total Grants and Subsidies	56,076	57,817

13.10 Assets transferred

	2003	2004
	$’000	$’000

Port Corporations	...	64,192
Aurora Energy Pty Ltd	...	148,860
Metro Tasmania Pty Ltd	...	8,594
TOTE Tasmania Pty Ltd	...	7,534
Transend Networks Pty Ltd	...	261,630
TT-Line Company Pty Ltd	31,141	...
	...	...
Total	31,141	490,810

During 2003-04 the half share ownership in the State Owned Corporations was transferred to the Department of Treasury and Finance.

13.11 Other Administered Expenses From Ordinary Activities

	2003	2004
	$’000	$’000
Transfer of monies collected on behalf of external bodies	190,736	210,132
Advertising and promotion	669	967
Audit expenses	57	49
Communications	62	78
Consultants	262	332
Information technology	75	88
Rental of premises and rates	46	66
Other property related expenses	12	34
Travel and transport	206	264
Other expenses	1,753	1,118
Total	193,878	213,128

13.12 Departmental Administered Outputs
Information about the Department’s Outputs and the expenses and revenues, which are reliably attributable to those Outputs, is set out in the Output Schedule. Information about Outputs administered by the Department is given in the Statement of Administered Outputs.

13.13 Statement of Administered Outputs
Note: the following information has been prepared on an accrual accounting basis.
(a) Administered Outputs of the Department

OUTPUT GROUP 91 – Grants and Subsidies

	2004	2004	2003
	Budget	Actual	Actual
	$'000	$'000	$'000
OPERATING REVENUE
Revenue from Government
Annual Appropriation	56,706	57,569	54,999
Reserved by Law	52	...	...
Grants	...	1,778	1,981
Fines and Regulatory Fees	...	28	74
Sales of Goods and Services	...	150	180
Other Revenue	173,831	212,230	188,886
TOTAL	230,589	271,755	246,120

OPERATING EXPENSES
Employee Entitlements		1,157	1,120
Depreciation and Amortisation		2	4
Grants		55,010	53,575
Supplies and Consumables
Travel and Transport		174	166
Advertising and Promotion		1	...
Communications		30	21
Contractors		2,126	1,400
Consultancies		110	49
Rent		66	47
Other Accommodation Related Expenses		12	11
Information Technology		53	32
Other Supplies and Consumables		215	203
Transfer Payments		210,132	188,656
TOTAL	230,583	269,088	245,284

NET OPERATING RESULT	6	2,667	836

EXPENSE BY OUTPUT

91.551 King Island Shipping	49	12	95
91.595 Payments to School Bus Operators: Route Services	6,940	6,313	6,122
91.596 Payments to School Bus Operators: Contract Services	18,832	19,100	18,303
91.598 National Road Transport Commission: Local Government Contribution	1,500	1,500	1,500
91.621 Payments for Forest Practices Board	1,757	1,815	1,664
91.622 Project CODES	68	68	68
91.623 Rehabilitation of Degraded Mineral Lands	350	425	675
91.624 Conveyance Allowance	733	655	659
91.625 Pensioner Air Travel Subsidy	8	8	6
91.626 Transport Access Scheme	1,510	1,599	1,283
91.628 Pensioner, Aged and Unemployed Concessions	903	895	880
91.629 Furneaux Shipping Contract	207	213	307
91.636 Bruny Island Ferry	493	485	468
91.638 Urban Bus Service	1,250	1,261	1,215
91.643 Contribution to Marine & Safety Authority	700	800	820
91.644 Community Service Obligation: Payment to Metro Tasmania Pty Ltd	20,877	21,259	19,989
91.645 Community Service Obligation to the Civil Construction Corporation for the retention of the Fingerpost Depot Waratah	...	...	54
91.660 Monies Received on Behalf of External Bodies	172,068	210,132	188,656
91.729 Tasmanian Racing Assistance	1,060	1,260	1,260
91.739 Private Forests Tasmania	1,201	1,263	1,235
91.741 Interdominion Grant	25	25	25
TOTAL	230,583	269,088	245,284

Note: The above figures do not include administered transactions in relation to the Workcover Board or revenue collected on behalf of the Consolidated Fund.

13.14 Administered Receivables

	2003	2004
	$’000	$’000
User fees and charges	3,495	3,389
Less: Provision for doubtful debts	1,083	7
Total	2,412	3,382

Current	2,407	3,382
Non-current	5	...
Total	2,412	3,382

13.15 Administered Property, Plant, and Equipment

	2003	2004
	$’000	$’000
Property, Plant & Equipment	128	128
Less: Accumulated Depreciation	94	110
Total	34	18

13.16 Reconciliation of Administered Non-Current Physical Assets
A reconciliation of the carrying amounts of property, plant and equipment from the start to the end of the financial year is set out below.

	Property, Plant & Equipment
2004	$’000
Carrying amount at start of year	34
Additions	...
Disposals	...
Depreciation/amortisation expense	-16
Carrying amount at end of year	18

	Property, Plant & Equipment
2003	$’000
Carrying amount at start of year	52
Additions	18
Disposals	-20
Depreciation/amortisation expense	-16
Carrying amount at end of year	34

13.17 Other Administered Assets

	2003	2004
	$’000	$’000
Other Non-current Assets
Investments
Metro Tasmania Pty Ltd	8,594	...
Port Corporations	64,192	...
Aurora Energy Pty Ltd	148,860	...
Transend Networks Pty Ltd	261,630	...
TOTE Tasmania Pty Ltd	7,534	...
Murchison United Ltd	...	22
Total other non-current assets	490,810	22

During 2003-04 the half share ownership in the State Owned Corporations was transferred to the Department of Treasury and Finance.

	2003	2004
	$’000	$’000
Other Current Assets
Prepayments	...	40
Total other current assets	...	40

13.18 Administered Employee Entitlements

	2003	2004
	$’000	$’000
Accrued salaries	66	...
Annual leave	142	183
Long service leave	337	393
Total	545	576

Current	231	209
Non-current	314	367
Total	545	576

13.19 Administered Payables

	2003	2004
	$’000	$’000
Creditors and accrued expenses	1,283	2,624
Total	1,283	2,624

13.20 Other Administered Liabilities

	2003	2004
	$’000	$’000
Other Current Liabilities
Transfers to other entities	3,852	...
Revenue Received in Advance	256	317
Monies held in trust	4	4
Total other current Liabilities	4,112	321

13.21 Schedule of Administered Commitments

	2003	2004
	$’000	$’000
Lease Commitments
Operating leases	150	111
Total lease commitments	150	111
Total

By Maturity
Operating lease commitments
One year or less	105	104
From one to five years	45	7
Over five years	...	...
Total operating lease commitments	150	111

NB: Commitments are shown as GST exclusive

The majority of the Department’s administered leases are represented by land and building rental costs and vehicle lease costs. The total lease commitment for 2003-04 excludes local government and other executory costs where they are paid directly to a party other than the lessor. These costs are included elsewhere in the Department’s expenditures.

Contingent Rental costs relate to land and building leases, and in the main comprise local government charges and the periodic escalation of leases by the Consumer Price Index. Since Contingent Rentals cannot be reliably determined, they have been excluded in the calculations of Total Lease Commitments.

There is no difference between the value of minimum lease payments and the value of Total Lease Commitments. The Department does not have any purchase rights flowing from the lease of the land and buildings. There are no building leases that have renewal rights exercisable at the sole discretion of the lessor.

The minimum administered lease payment for vehicles is based on the average age of the vehicle fleet and a standard lease period of 24 months.

13.22 Administered Cash Flow Reconciliation

	2003	2004
	$’000	$’000
(a) Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows
Cash at year end per Statement of Cash Flows	3,725	3,567
Statement of Financial Position Cash	3,725	3,567

(b) Reconciliation of operating surplus to net cash
provided by operating activities:
Net surplus (deficit)	52,362	-487,533
Depreciation/Amortisation	16	17
Assets transferred (liabilities assumed)	31,141	490,810
(Increase) Decrease in Investments	-83,144	-22
Decrease (increase) in receivables	-2,103	-970
Decrease (increase) in other tax assets	...	...
Decrease (increase) in other assets	3	-40
Increase (decrease) in employee benefits	35	31
Increase (decrease) in payables	198	1,340
Increase (decrease) in other liabilities	1,803	-3,791
Net (Profit) Loss on sale of assets	-10	...
Net cash provided (used) by operating activities	301	-158

13.23 Administered Financial Instruments

Financial Instrument	Notes	Accounting Policies and Methods (including recognition criteria and measurement basis)	Nature of underlying instrument (including significant terms & conditions affecting the amount, timing and certainty of cash flows)
Financial Assets		Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.
Cash	11	Cash includes cash deposits which are readily convertible to cash on hand plus cash available in Treasury’s Special Deposit and Trust Fund. Deposits are recognised at their nominal amounts.Interest is credited to revenue as it accrues. Cash is measured at nominal amounts and is also the net fair value.	The interest rate applicable at 30 June 2004 ranged from 0% to 5.53%. Exposure to interest rate and credit risks is considered to be minimal.
Receivables for user charges	8.1	These receivables are recognised at the nominal amounts due, less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less rather than more likely. The net fair value of receivables is the nominal amount	Debtors terms are 30 days net.
Financial Liabilities		Liabilities are recognised when it is probable that the future sacrifice of economic benefits will be required and the amount of the liability can be measured reliably.
Creditors	9.2	Creditors and accruals are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having being invoiced). The net fair value of payables is the nominal amount.	Settlement is usually made within 30 days.