FINANCIAL STATEMENTS 
FOR YEAR ENDED 30 JUNE 2010

CONTENTS

Independent Audit Report 			
Statement by CEO and CFO		
Statement of Comprehensive Income		
Balance Sheet		
Statement of Changes in Equity		
Cash Flow Statement		
Schedule of Commitments		
Schedule of Contingencies		
Schedule of Asset Additions		
Schedule of Administered Items		
Note 1: Summary of Significant Accounting Policies 		
Note 2: Events After the Reporting Period		
Note 3: Expenses		
Note 4: Income		
Note 5: Financial Assets		
Note 6: Non-Financial Assets		
Note 7: Payables		
Note 8: Non- Interest Bearing Liabilities		
Note 9: Provisions		
Note 10: Cash Flow Reconciliation		
Note 11: Contingent Liabilities and Assets 		
Note 12: Senior Executive Remuneration		
Note 13: Remuneration of Auditors		
Note 14: Financial Instruments		
Note 15 Income Administered on Behalf of Government		
Note 16: Expenses Administered on Behalf of Government		
Note 17: Assets Administered on Behalf of Government		
Note 18: Liabilities Administered on Behalf of Government		
Note 19: Administered Reconciliation Table		
Note 20: Administered Contingent Assets and Liabilities		
Note 21: Administered Investments		
Note 22: Administered Financial Instruments		
Note 23: Appropriations		
Note 24: Special Accounts		
Note 25: Compensation and Debt Relief		
Note 26: Reporting of Outcomes		

			Independent Audit Report

Certification by the Auditor General

ADMINISTRATIVE APPEALS TRIBUNAL

STATEMENT BY THE CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER

In our opinion, the attached financial statements for the year ended 30 June 2010 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, as amended.  

	

PHILIP KELLOW					STEPHEN WISE				
Chief Executive					Chief Financial Officer				
					
9 September 2010					9 September 2010
ADMINISTRATIVE APPEALS TRIBUNAL

STATEMENT OF COMPREHENSIVE INCOME 
for the period ended 30 June 2010	

	
Notes	2010
$’000		2009
$’000	
EXPENSES					
Employee benefits	3A	21,138		20,350	
Supplier expenses	3B	12,392		11,512	
Depreciation and amortisation	3C	1,662		1,438	
Write-down and impairment of assets	3D	13		-	
Losses from assets sales	3E	-		2	
Total expenses		35,205		33,302	
					
LESS:					
OWN-SOURCE INCOME					
Own-source revenue					
Sale of goods and rendering of services	4A	1,122		1,029	
Total own-source income		1,122		1,029	
					
GAINS					
Other	4B	261		374	
Total gains		261		374	
Total own-source revenue		1,383		1,403	
					
Net cost of services		33,822		31,899	
					
Revenue from Government	4C	32,772		32,267	
Surplus (Deficit) attributable to the Australian Government		(1,050)		368	
					
OTHER COMPREHENSIVE INCOME					
Changes in asset revaluation reserves		263		-	
Total other comprehensive income		263		-	
					
Total comprehensive income (loss) attributable to the Australian Government		
(787)		
368	

					

					

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

ADMINISTRATIVE APPEALS TRIBUNAL

BALANCE SHEET 
as at 30 June 2010	

	
Notes	2010
$’000		2009
$’000	
ASSETS					
Financial Assets					
Cash and cash equivalents	5A	726		500	
Trade and other receivables	5B	8,293		9,708	
Total financial assets		9,019		10,208	
					
Non-Financial Assets					
Leasehold improvements	6A,C	6,642		7,343	
Plant and equipment 	6B,C	1,448		1,379	
Intangibles	6D,E	430		301	
Other 	6F	1,619		1,933	
Total non-financial assets		10,139		10,956	
Total Assets		19,158		21,164	
					
LIABILITIES					
Payables					
Suppliers	7A	1,117		1,262	
Total payables		1,117		1,262	
					
Non-Interest Bearing Liabilities					
Other	8	778		903	
Total non-interest bearing liabilities		778		903	
					
Provisions					
Employee provisions	9A	5,890		5,863	
Other	9B	385		385	
Total provisions		6,275		6,248	
Total liabilities		8,170		8,413	
Net assets		10,988		12,751	
					
EQUITY					
Parent Entity Interest					
Contributed equity		1,592		2,568	
Reserves		3,433		3,170	
Retained surplus (accumulated deficit)		5,963		7,013	
Total parent entity interest		10,988		12,751	
Total Equity		10,988		12,751	

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

STATEMENT OF CHANGES IN EQUITY 
As at 30 June 2010	

	Retained Surplus		Asset Revaluation Reserves		Contributed Equity		Total Equity		
	2010	2009	2010	2009	2010	2009	2010	2009	
	$’000	$’000	$’000	$’000	$’000	$’000	$’000	$’000	
Opening balance									
Balance carried forward from previous period	
7,013	
6,645	
3,170	
3,170	
2,568	
2,568	
12,751	
12,383	
Adjustment for errors	-	-	-	-	-	-	-	-	
Adjustment for changes in accounting policy	
-	
-	
-	
-	
-	
-	
-	
-	
Adjusted opening balance	7,013	6,645	3,170	3,170	2,568	2,568	12,751	12,383	

Comprehensive income 									
Other comprehensive income	-	-	263	-	-	-	263	-	
Surplus (Deficit) for the period	
(1,050)	
368	
-	
-	
-	
-	
(1,050)	
368	
Total comprehensive income	
(1,050)	
368	
263	
-	
-	
-	
(787)	
368	
Of which:									
      Attributable to the               Australian Government	
(1,050)	
368	
263	
-	
-	
-	
(787)	
368	
									
Transactions with owners									
Distribution to owners									
Returns of capital:									
     Other*	-	-	-	-	(976)	-	(976)	-	
Contribution by owners	-	-	-	-	-	-	-	-	
Sub-total transactions with owners	
-	
-	
-	
-	
(976)	
-	
(976)	
-	
Closing balance as at 30 June	
5,963	
7,013	
3,433	
3,170	
1,592	
2,568	
10,988	
12,751	
Closing balance attributable to the Australian Government	
5,963	
7,013	
3,433	
3,170	
1,592	
2,568	
10,988
	
12,751	

* Return of unspent depreciation funding.

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

ADMINISTRATIVE APPEALS TRIBUNAL

CASH FLOW STATEMENT 
For period ended  30 June 2010	

	
Notes	2010
$’000		2009
$’000	
OPERATING ACTIVITIES					
Cash received					
Goods and services		1,088		1,096	
Appropriations		34,221		30,797	
Net GST received		1,217		1,175	
Total cash received		36,526		33,068	
					
Cash used					
Employees 		(20,887)		(19,351)	
Suppliers		(13,528)		(12,541)	
Total cash used		(34,415)		(31,892)	
Net cash from operating activities	10	2,111		1,176	
					
INVESTING ACTIVITIES					
Cash used					
Purchase of plant and equipment		(642)		(1,134)	
Purchase of intangibles		(267)		(8)	
Total cash used		(909)		(1,142)	
Net cash (used by) investing activities		(909)		(1,142)	
					
FINANCING ACTIVITIES					
Cash used					
Other		(976)		-	
Total cash used		(976)		-	
Net cash (used by) financing activities		(976)		-	
					
Net increase in cash held		226		34	
Cash and cash equivalents at the beginning of the reporting period		500		466	
Cash and cash equivalents at the end of the reporting period	5A	726		500	

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

ADMINISTRATIVE APPEALS TRIBUNAL

SCHEDULE OF COMMITMENTS 
as at 30 June 2010	

		2010
$’000		2009
$’000	
BY TYPE
Commitments receivable
GST recoverable on commitments		(3,226)		(3,439)	
Total commitments receivable		(3,226)		(3,439)	

Other commitments
Operating leases 1,2		35,488		37,827	
Other commitments		2		-	
Total other commitments		35,490		37,827 	
Net commitments by type		32,264		34,388	

BY MATURITY
Commitments receivable

One year or less		(595)		(528)	
From one to five years		(2,631)		(2,637)	
Over five years		-		(274)	
Total commitments receivable		(3,226)		(3,439)	

Operating lease commitments
One year or less		6,544		5,812	
From one to five years		28,944		29,003	
Over five years		-		3,012	
Total operating lease commitments		35,488		37,827	

Other commitments
One year or less		2		-	
From one to five years		-		-	
Over five years		-		-	
Total other commitments		2		-	
Net commitments by maturity		32,264		34,388	
NB: Commitments are GST inclusive where relevant.
1 These commitments comprise leases of hearing rooms and office accommodation for the Tribunal.
2 Operating leases included are effectively non-cancellable and comprise:  
- Leases for office accommodation.
	Lease payments are subject to fixed or market review increases as listed in the lease agreements; and all office accommodation leases are current and most have extension options for the Tribunal following a review of rentals to current market.  A commitment for four years has been included for the Commonwealth Law Courts Buildings in Brisbane and Hobart even though there is no lease, budget funding has been approved for this period.
- Agreements for the provision of motor vehicles to senior executive officers.
	No contingent rentals exist and there are no renewal or purchase options available to the Tribunal.

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

ADMINISTRATIVE APPEALS TRIBUNAL

SCHEDULE OF CONTINGENCIES 
as at 30 June 2010	

There are no quantifiable contingent assets or liabilities (2009: Nil).  Refer to Note 11 for details of any unquantifiable or remote contingent assets or contingent liabilities.

SCHEDULE OF ASSET ADDITIONS 
For the period ended 30 June 2010	

The following non-financial, non-current assets were added in 2009-10:	
	
Leasehold improvements	
Plant and equipment	
Intangibles	
TOTAL	
	$’000	$’000	$’000	$’000	
By purchase - appropriation equity	-	-	-	-	
By purchase - appropriation ordinary annual services	
180	
472	
257	
909	
Total additions	180	472	257	909	

The following non-financial, non-current assets were added in 2008-09:	
	
Leasehold improvements	
Plant and equipment	
Intangibles	
TOTAL	
	$’000	$’000	$’000	$’000	
By purchase - appropriation equity	-	-	-	-	
By purchase - appropriation ordinary annual services	
777	
357	
8	
1,142	
Total additions	777	357	8	1,142	

SCHEDULE OF ADMINISTERED ITEMS

			Notes	2010
$’000		2009
$’000	
Income administered on behalf of Government							
for the period ended 30 June 2010
							
Revenue							
Non-taxation revenue							
Filing fees			15	519		523 	
							
Total revenues administered on behalf of Government				519		523 	
							
Total income administered on behalf of Government			519		523	
							
Expenses administered on behalf of  Government							
for the period ended 30 June 2010
							
Refund of filing fees			16	427		372	
						
Total expenses administered on behalf of Government			427		372	

There were no administered assets or liabilities as at 30 June 2010, (2009: Nil).

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

SCHEDULE OF ADMINISTERED ITEMS 					
						
			2010
$’000		2009
$’000	
Administered Cash Flows						
for the period ended 30 June 2010
						
OPERATING ACTIVITIES
Cash received						
Filing fees			519		523	
Total cash received			519		523	
Cash used 						
Refund of filing fees			(427)		(372)	
Total cash used			(427)		(372)	
Net cash flows from operating activities		19	92		151	
						
Net Increase  in Cash  Held			92		151	

Cash and cash equivalents at the beginning of the reporting period			
-		
-	
Cash from Official Public Account for:
          - Appropriations			427		372	
Cash to Official Public Account for:
          - Appropriations
			
(519)		
(523)	
Cash and cash equivalents at the end of reporting period			-		-	

There were no administered commitments or contingencies as at 30 June 2010, (2009: Nil).

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

ADMINISTRATIVE APPEALS TRIBUNAL

Note 1: Summary of Significant Accounting Policies

1.1	Objectives of the Tribunal

The Administrative Appeals Tribunal (the Tribunal) is an Australian Public Service organisation.  The objective and sole outcome of the Tribunal is to provide independent review on merit of a wide range of administrative decisions of the Australian Government so as to ensure in each case the correct or preferable decision is made.

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

The continued existence of the Tribunal in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for the Tribunal’s administration and programs.

1.2	Basis of Preparation of the Financial Statements

The Financial Statements and notes are required by section 49 of the Financial Management and Accountability Act 1997 and are a General Purpose Financial Statements.  

The Financial Statements and notes have been prepared in accordance with:

•	Finance Minister's Orders (or FMO) for reporting periods ending on or after 1 July 2009: and 
•	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 are in accordance with historical cost convention, except for certain assets at fair value or amortised cost.  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 alternative treatment is specifically required by an Accounting Standard or the FMO, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to the Entity 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 agreements Equally Proportionately Unperformed 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, revenues 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.

Administered revenues, expenses, assets and liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for departmental items except where otherwise stated at Note 1.21.

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 carrying amounts of assets and liabilities within the next accounting period.
1.4 	New 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.  

The following new standards/revised standards/Interpretations/amending standards were issued prior to the signing of the statement by the Director, Chief Executive and Chief Financial Officer, were applicable to the current reporting period and had a financial impact on the entity: 
AASB 101:  Presentation of Financial Statements
The Australian Accounting Standards Board revised AASB101 and as a result, there have been changes to the presentation and disclosure of certain information within the financial statements. Below is an overview of the key changes of the impact on the financial statements.
Disclosure impact
Terminology changes – The revised version of AASB 101 contains a number of terminology changes, including the amendment of the names of the primary financial statements. 
Reporting changes in equity – The revised AASB 101 requires all changes in equity from transactions with owners, in their capacity as owners, to be presented separately from non-owner changes in equity. Owner changes in equity are to be presented in the statement of changes in equity, with non-owner changes in equity presented in the statement of comprehensive income. The previous version of AASB 101 required that owner changes in equity and other comprehensive income be presented in the statement of changes in equity.
Statement of comprehensive income – The revised AASB 101 requires all income and expenses to be presented in the statement of comprehensive income.
Other comprehensive income – the revised version of AASB 101 introduces the concept of other comprehensive income which comprises income and expenditure that are not recognised in profit or loss as required by other Australian Accounting Standards. Items of other comprehensive income are to be disclosed in the statement of comprehensive income. 
Other new standards/revised standards/Interpretations/amending standards that were issued prior to the signing of the statement by the Director, Chief Executive and Chief Financial Officer  and are applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the entity.
AASB 1	First-time Adoption of Australian Accounting Standards - May 2009 (Principal)	
AASB 7 	Financial Instruments: Disclosures - June 2009 (Compilation)	
AASB 102 	Inventories - June 2009 (Compilation)	
AASB 107 	Statement of Cash Flows - June 2009 (Compilation)	
AASB 108 	Accounting Policies, Changes in Accounting Estimates and Errors - July 2008 (Compilation)	
AASB 110 	Events after the Reporting Period - June 2009 (Compilation)	
AASB 111 	Construction Contracts - June 2009 (Compilation)	
AASB 116 	Property, Plant and Equipment - June 2009 (Compilation)	
AASB 117 	Leases - June 2009 (Compilation)	
AASB 118 	Revenue - August 2008 (Compilation).	
AASB 119 	Employee Benefits - June 2009 (Compilation)	
AASB 120 	Accounting for Government Grants and Disclosure of Government Assistance - July 2008 (Compilation)	
AASB 128	Investments in Associates - July 2008 (Compilation)	
AASB 131	Interests in Joint Ventures - July 2008 (Compilation)	
AASB 132 	Financial Instruments: Presentation - June 2009 (Compilation)	
AASB 136 	Impairment of Assets - June 2009 (Compilation)	
AASB 137 	Provisions, Contingent Liabilities and Contingent Assets - June 2009 (Compilation)	
AASB 138 	Intangible Assets - June 2009 (Compilation)	
AASB 139 	Financial Instruments: Recognition and Measurement - October 2009 (Compilation)	
AASB 1031 	Materiality - December 2007 (Compilation)	
AASB 1048 	Interpretation of Standards - June 2010 (Principal)	
AASB 1049 	Whole of Government and General Government Sector Financial Reporting - September 2008 (Compilation)	
Interp. 4 	Determining whether an Arrangement contains a Lease - June 2009 (Compilation)	
Interp. 8 	Scope of AASB 2 - September 2007 (Compilation)	
Interp. 9 	Reassessment of Embedded Derivatives - May 2009 (Compilation)	
Interp. 10 	Interim Financial Reporting and Impairment - October 2009 (Compilation)	
Interp. 115	Operating Leases – Incentives – June 2009 (Compilation)	
Interp. 127 	Evaluating the Substance of Transactions Involving the Legal Form of a Lease - June 2009 (Compilation)	
Interp. 132 	Intangible Assets – Web Site Costs - September 2007 (Compilation)	
Interp. 1019 	The Superannuation Contributions Surcharge - December 2007 (Compilation)	
Interp. 1031 	Accounting for the Goods and Services Tax (GST) - December 2007 (Compilation)	

Future Australian Accounting Standard Requirements
	
The following new standards/revised standards/Interpretations/amending standards were issued by the Australian Accounting Standards Board prior to the signing of the statement by the Director, Chief Executive and Chief Financial Officer, which are expected to have a financial impact:
•	AASB 9: Financial Instruments and AASB 2009–11: Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12] (applicable for annual reporting periods commencing on or after 1 January 2013).on the entity for future reporting periods: 
These Standards are applicable retrospectively and amend the classification and measurement of financial assets. The Tribunal has not yet determined any potential impact on the financial statements.
o	The changes made to accounting requirements include:
o	simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value;
o	removing the tainting rules associated with held-to-maturity assets;
o	requiring financial assets to be reclassified where there is a change in an entity’s business model as they are initially classified based on: (a) the objective of the entity’s business model for managing the financial assets; and (b) the characteristics of the contractual cash flows.
•	AASB 124: Related Party Disclosures (applicable for annual reporting periods commencing on or after 1 January 2011).
This Standard removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities and clarifies the definition of a ‘related party’ to remove inconsistencies and simplify the structure of the Standard.  No changes are expected to materially affect the Tribunal.
•	AASB 2009–4: Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 2 and AASB 138 and AASB Interpretations 9 & 16] (applicable for annual reporting periods commencing from 1 July 2009) and AASB 2009–5: Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 5, 8, 101, 107, 117, 118, 136 & 139] (applicable for annual reporting periods commencing from 1 January 2010).
These Standards detail numerous non-urgent but necessary changes to Accounting Standards arising from the IASB’s annual improvements project.  No changes are expected to materially affect the Tribunal.
•	AASB 2009–12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual reporting periods commencing on or after 1 January 2011).
This Standard makes a number of editorial amendments to a range of Australian Accounting Standards and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB.  The Standard also amends AASB 8 to require entities to exercise judgment in assessing whether a government and entities known to be under the control of that government are considered a single customer for the purposes of certain operating segment disclosures.  The impacts of the amendments will be in the form of disclosure..
•	AASB 2009–14: Amendments to Australian Interpretation — Prepayments of a Minimum Funding Requirement [AASB Interpretation 14] (applicable for annual reporting periods commencing on or after 1 January 2011).
This Standard amends Interpretation 14 to address unintended consequences that can arise from the previous accounting requirements when an entity prepays future contributions into a defined benefit pension plan.
•	AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] (applicable for annual reporting periods commencing on or after 1 January 2011).
This standard amends the identified standards providing additional disclosure requirements.
There were additional new standards/revised standards/Interpretations/amending standards issued by the Australian Accounting Standards Board which are not listed above that are not relevant to the operations of the Tribunal.

1.5	Revenue

Revenue from Government 
Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as revenue when the Tribunal 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.

Resources Received Free of Charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated.  Use of those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Other Types of Revenue
Revenue from the sale of goods is recognised when: 
•	the risks and rewards of ownership have been transferred to the buyer;
•	the seller retains no managerial involvement nor effective control over the goods;
•	the revenue and transaction costs incurred can be reliably measured; and
•	it is probable that the economic benefits associated with the transaction will flow to the Tribunal.  

Revenue from the rendering of services is recognised by reference to the stage of completion of contracts at the reporting date.  The revenue is recognised when:
•	the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
•	the probable economic benefits associated with the transaction will flow to the Tribunal.

The stage of completion of contracts at the reporting date is determined by reference to:
•	services performed to date as a percentage of total services to be performed; or
•	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 their nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of reporting period. Allowances are made when collectability of the debt is no longer probable.  

1.6	Gains

 Resources Received Free of Charge
Resources received free of charge are recognised as gains 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.

Resources received free of charge are recorded as either revenue or gains depending on their nature 

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 Agency or Authority as a consequence of a restructuring of administrative arrangements (Refer to Note 1.7)

Sale of Assets
Gains, from disposal of non-current assets, are recognised when control of the asset has passed to the buyer.

1.7	Transactions with the Government as Owner

Equity injections
Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.
 
Restructuring of Administrative Arrangements  
Net assets received from or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Other distributions to owners
The FMO require that distributions to owners be debited to contributed equity unless in the nature of a dividend.

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 balance date 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 Tribunal 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 applied at the time the leave is taken, including the Tribunal’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 is recognised and measured, using the method included in the FMO, at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2010.  The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and Redundancy 
Provision is made for separations and redundancy benefit payments.  The Tribunal 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
Most members and staff of the Tribunal are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) and the PSS Accumulation Plan (PSSap).  

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 Tribunal makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of the Tribunal’s employees.  The Tribunal accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised at 30 June represents outstanding contributions for the final fortnight of the year.

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 non-current 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 Tribunal does not have any finance leases.  Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

1.10	 Cash
Cash and cash equivalents includes cash on hand, cash held with outsiders, demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value. Cash is recognised at its nominal amount.

1.11	 Financial Assets

The Tribunal’s financial assets are all classified as ‘loans and receivables’.  The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.  

Financial assets are recognised and derecognised upon ‘trade date’.

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.

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’.  They are included in current assets, except for maturities greater than 12 months after the balance sheet date.  These are classified as non current assets.  Loans and receivables are measured at amortised cost using the effective interest method less impairment.  Interest is recognised by applying the effective interest rate.

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

1.12	 	Financial Liabilities

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

Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss are initially measured at fair value.  Subsequent fair value adjustments are recognised in profit or loss.  The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other financial liabilities
Other financial liabilities are initially measured at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.  

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

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 	Financial Guarantee Contracts

Financial guarantee contracts are accounted for in accordance with AASB139 Financial Instruments: Recognition and Measurement.  They are not treated as a contingent liability, as they are regarded as financial instruments outside the scope of AASB137 Provisions, Contingent Liabilities and Contingent Assets.  The Tribunal currently has no financial guarantee contracts.

1.15	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.  The Tribunal does not own any land and buildings.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements.  In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor agency’s accounts immediately prior to the restructuring.

1.16	Leasehold Improvements, Plant and Equipment

Asset Recognition Threshold
Purchases of leasehold improvements, 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 Tribunal where there exists an obligation to restore the property to its original condition.  These costs are included in the value of the Tribunal’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	Depreciated replacement cost	
Plant and equipment	Market selling price	

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

Revaluation adjustments are made on a class basis.  Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly the surplus/deficit except to the extent that they reverse 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 at the revalued amount.

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

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

Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 
	2010    	2009	
Leasehold improvements (fitout) 	Lease term	Lease term	
Plant and equipment	3-20 years	3-20 years	

Impairment
All assets were assessed for impairment at 30 June 2010.  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 of the asset’s ability to generate future cash flows, and the asset would be replaced if the Tribunal were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

No indicators of impairment were found for assets at fair value.

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

1.17	Intangibles

The Tribunal’s intangibles comprise externally purchased 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 their anticipated useful lives.  The useful lives of the Tribunal’s software are 3 to 5 years (2009: 3 to 5 years).

All software assets were assessed for indications of impairment as at 30 June 2010.  No indications of impairment were found for intangible assets.

1.18	Taxation

The Tribunal 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 where the amount of GST incurred is not recoverable from the Australian Taxation Office; and 
•	except for receivables and payables.

1.19	Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction.  Foreign currency receivables and payables are translated at the exchange rate current as at balance date.  Associated currency gains and losses are not material.

1.20	Insurance

The Tribunal has insured against risks through the Government’s insurable risk managed fund, called ‘Comcover’.  Workers compensation is insured through Comcare Australia.

1.21	Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related notes.  

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

Administered Cash Transfers to and from Official Public Account
Revenue collected by the Tribunal for use by the Government rather than the Tribunal 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 Tribunal 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 19.  Thus the Schedule of Administered Items largely reflects the Government’s transactions, through the Tribunal, with parties outside the Government.

Administered Revenue and Expenditure
The major financial activities of the Tribunal are the collection of fees payable on lodging with the Tribunal of an application for a review of a decision, other than in income maintenance matters.  On matters other than income maintenance, applicants may apply for a waiver of the fee under regulation 19(6) of the Administrative Appeals Tribunal Regulations 1976.

Applications deemed to be successful may result in a refund of the fee paid.

Fees are refunded in whole if the proceedings terminate in a manner favourable to the applicant except for Small Taxation Claims Tribunal applications where a smaller once-only fee is payable irrespective of the outcome of the decision.

Note 2: Events after the Reporting Period

There were no significant events occurring after the balance date.

Note 3: Expenses	2010 
 $’000 		2009 
 $’000 	
Note 3A: Employee benefits
Wages and salaries	16,795		16,056	
Superannuation				
       Defined contribution plans	2,065		2,238	
       Defined benefit plans	755		462	
Leave and other entitlements	1,523		1,520	
Separation and redundancies	-		74	
Total employee benefits	21,138		20,350	
 
Note 3B: Suppliers
Goods and services				
General suppliers	5,308		4,349	
Other property costs	2,442		2,048	
Total goods and services	7,750		6,397	
				
Goods and Services are made up of:				
Provision of goods - related entities 	-		-	
Provision of goods - external entities	461		346	
Rendering of services - related entities	307		430	
Rendering of services - external entities	6,982		5,621	
Total goods and services	7,750		6,397	
				
Other supplier expenses				
Operating lease rentals:
       Minimum lease payments	
4,539		
4,972	
Workers compensation expenses	103		143	
Total other supplier expenses	4,642		5,115	
Total supplier expenses	12,392		11,512	

Note 3C: Depreciation and Amortisation
Depreciation:				
Leasehold improvements, plant and equipment	1,534		1,329	
Total depreciation	1,534		1,329	
Amortisation::
Intangibles:				
       Computer software	128		109	
Total amortisation	128		109	
Total depreciation and amortisation	1,662		1,438	

Note 3D: Write down and impairment of assets  
Revaluation decrement – non-financial assets	13		-	
Total write-down and impairment of assets	13		-	

Note 3E: Losses from assets sales
Infrastructure, plant and equipment				
       Proceeds from sale	-		-	
       Carrying value of assets sold	-		2	
       Selling expense	-		-	
Total losses from assets sales	-		2	

Note 4: Income

Revenue

Note 4A: Sale of Goods and Rendering of Services
Rendering of services - related entities	723		668	
Rendering of services - external entities	399		361	
Total sale of goods and rendering of services	1,122		1,029	

Note 4B: Other Revenue
Resources received free of charge	37		37	
Liabilities assumed by other departments	224		337	
Total other revenue	261		374	

REVENUE FROM GOVERNMENT
Note 4C: Revenue from Government
Appropriations:
           Departmental outputs	
32,772		
32,267	
Total revenue from government	32,772		32,267	

Note 5: Financial Assets

Note 5A: Cash and cash equivalents
Cash on hand or on deposit	726		500	
Total cash and cash equivalents	726		500	

Note 5B: Trade and Other receivables
Goods and services – related entities	50		98	
Goods and services – external parties	6		14	
Total receivables for goods and services	56		112	
				
Appropriations receivable:				
        For existing outputs	8,021		9,470	
Total appropriations receivable	8,021		9,470	
				
Other receivables:				
        GST receivable from the Australian                 Taxation Office	
216		
126	
Total other receivables	216		126	
Total trade and other receivables (Net)	8,293		9,708	

Receivables are expected to be recovered in:
No more than 12 months	8,293		9,708	
More than 12 months	-		-	
Total trade and other receivables (net)	8,293		9,708	

	2010 
 $’000 		2009 
 $’000 	

Receivables are aged as follows:
Not overdue	8,277		9,704	
Overdue by:				
           0 to 30 days	15		4	
           31 to 60 days	-		-	
           61 to 90 days	1		-	
           More than 90 days	-		-	
	16		4	
Total receivables (gross)	8,293		9,708	

Note 6: Non-Financial Assets

Note 6A: Leasehold Improvements
Leasehold improvements:				
        Fair value 	6,642		7,343	
        Accumulated depreciation	-		-	
Total leasehold improvements	6,642		7,343	
Total leasehold improvements	6,642		7,343	

No indicators of impairment were found for leasehold improvements.
No leasehold improvements are expected to be sold or disposed of within the next 12 months.

Note 6B: Plant and Equipment 
Other  plant and equipment				
         Fair value	1,448		1,379	
         Accumulated depreciation	-		-	
Total other plant and equipment	1,448		1,379	
Total plant and equipment	1,448		1,379	

All revaluations are in accordance with the revaluation policy stated in Note 1.16.  On 30 June 2010, an independent valuer, the Australian Valuation Office, conducted the revaluations. 

Revaluation increment of $262,880 for leasehold improvements were credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet (no increments were credited in 2009). 

Revaluation decrement of $12,596 for plant and equipment was expensed (no decrements were expensed in 2009)

No indicators of impairment were found for leasehold improvements, plant and equipment.

 
Note 6C:  Reconciliation of the Opening and Closing Balances of Leasehold Improvements, Plant and Equipment (2009-10)

	            Leasehold             Improvements 

$'000	             Plant and                 Equipment

$'000	TOTAL

$'000	
As at 1 July 2009				
     Gross book value	7,343	1,379	8,722	
     Accumulated depreciation and impairment	-	-	-	
     Net book value 1 July 2009	7,343	1,379	8,722	
Additions: 				
     by purchase	180	472	652	
Revaluations and impairments recognised in other comprehensive income	
263	
-	
263	
Revaluations recognised in the operating result.	-	(13)	(13)	
Depreciation expense	(1,144)	(390)	(1,534)	
Impairment recognised in the operating result	-		-	-	
Disposals: 				
     other disposals	-	-	-	
Net book value 30 June 2010	6,642	1,448	8,090	
				
Net book value as at 30 June 2010 represented by: 				
Gross book value	6,642	1,448	8,090	
Accumulated depreciation	-	-	-	
Accumulated impairment losses	-	-	-	
	6,642	1,448	8,090	

TABLE 6C (Cont’d) - Reconciliation of the Opening and Closing Balances of Leasehold Improvements,  Plant and Equipment (2008-09)

	Leasehold Improvements 

$'000	Plant and Equipment

$'000	TOTAL

$'000	
As at 1 July 2008				
     Gross book value	7,617	1,302	8,919	
     Accumulated depreciation/amortisation      and impairment	-	-	-	
     Net book value 1 July 2008	7,617	1,302	8,919	
Additions: 				
     by purchase
     by purchase (partially complete)	777
-	148
209	925
209	
Revaluation and impairments through equity	-	-	-	
Revaluation of  makegood	-	-	-	
Depreciation/amortisation expense	(1,051)	(278)	(1,329)	
Impairment recognised in the operating result	-	-	-	
Disposals:				
     other disposals	-	(2)	(2)	
Net book value 30 June 2009	7,343	1,379	8.722	
				
Net book value as at 30 June 2009 represented by:				
Gross book value	7,343	1,379	8,722	
Accumulated depreciation/amortisation and impairment	-	-	-	
	7,343	1,379	8,722	

	2010 
 $’000 		2009 
 $’000 	
Note 6D: Intangibles				
Computer software at cost	1,653		1,399	
Accumulated amortisation	(1,223)		(1,098)	
Total intangibles (net)	430		301	

No indicators of impairment were found for intangible assets.

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

TABLE 6E – Reconciliation of the opening and closing balances of intangibles (2009-10).

Item	           Computer software             purchased
$'000	Total

$'000	
As at 1 July 2009			
     Gross book value	1,399	1,399	
     Accumulated depreciation/amortisation
     and impairment	
(1,098)	
(1,098)	
     Net book value 1 July 2009	301	301	
Additions: 			
     by purchase or internally developed	257	257	
Amortisation	(128)	(128)	
Write-off 			
  Gross value of assets written off	(3)	(3)	
  Accumulated depreciation	3	3	
Net book value 30 June 2010	430	430	

Net book value as of 30 June 2010 represented by:			
     Gross book value	1,653	1,653	
     Accumulated depreciation/amortisation
     and impairment	
(1,223)	
(1,223)	
	430	430	

Note 6E (Cont’d) – Reconciliation of the opening and closing balances of intangibles (2008-09).

Item	Computer software             purchased
$'000	Total

$'000	
As at 1 July 2008			
     Gross book value	1,407	1,407	
     Accumulated amortisation
     and impairment	(1005)	(1005)	
     Net book value 1 July 2008	402	402	
Additions: 			
     by purchase	8	8	
     Internally developed			
Amortisation	(109)	(109)	
Net book value 30 June 2009	301	301	

Net book value as of 30 June 2009 represented by:			
     Gross book value	1,399	1,399	
     Accumulated amortisation
     and impairment	
(1,098)	
(1,098)	
	301	301	

	2010 
 $’000 		2009 
 $’000 	

Note 6F: Other non-financial assets 
Salary advances	-		4	
Prepayments	1,619		1,929	
Total other non-financial assets	1,619		1,933	

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

Total other non-financial assets – are expected to be recovered in:				
    No more than 12 months	1,619		1,933	
    More than 12 months	-		-	
Total other non-financial assets	1,619		1,933	

Note 7: Payables

Note 7A: Suppliers
Trade creditors and accruals	1,117		1,262	
Total supplier payables	1,117		1,262	

All supplier payables are current liabilities.  Settlement is usually made 30 days from receipt of invoice.

Supplier payables expected to be settled within 12 months:				
     Related entities	94		281	
     External parties	1,023		981	
Total 	1,117		1,262	

Supplier payables expected to be settled in greater than 12 months:				
     Related entities	-		-	
     External parties	-		-	
Total	-		-	
Total supplier payables	1,117		1,262	

Settlement is usually made within 30 days.

Note 8: Non-Interest Bearing Liabilities 

Lease incentives	778		903	
Total non-interest bearing liabilities	778		903	

Current	182		243	
Non-current	596		660	
Total non-interest bearing liabilities	778 		903	

	2010 
 $’000 		2009 
 $’000 	
Note 9: Provisions

Note 9A: Employee provisions
Leave	4,394		4,443	
Separation and redundancies	-		-	
Other	1,496		1,420	
Total employee provisions	5,890		5,863	
				
Employee provisions are expected to be settled in:				
     No more than 12 months	5,390		5,303	
     More than 12 months	500		560	
Total employee provisions	5,890		5,863	

Note 9B: Other provisions
Provision for restoration obligations	385		385	
Total other provisions	385		385	
				
Other provisions are expected to be settled in:				
No more than 12 months	-		-	
More than 12 months	385		385	
Total other provisions	385		385	

	Provision for
restoration
$’000		Total

$’000	
Carrying amount 1 July 2009	385		385	
Additional provisions made	-		-	
Amount used	-		-	
Amounts reversed	-		-	
Unwinding of discount or change in the discount rate	-		-	
Closing balance 2010	385		385	

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

Note 10: Cash Flow Reconciliation

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
	
	2010
$’000		2009
$’000	
Report cash and cash equivalents as per:				
Cash Flow Statement	726		500	
Balance Sheet 	726		500	
Difference	-		-	

Reconciliation of net cost of services to net cash from operating activities:
Net cost of services	(1,050)		368	
Add revenue from Government				
				
Adjustments for non-cash items				
Depreciation/amortisation 	1,662		1,438	
Net write-down of non-financial assets	13		-	
Loss on disposal of assets	-		2	
				
Changes in assets/Liabilities				
(Increase)/decrease in net receivables	1,415		(1,403) 	
(Increase)/decrease in prepayments	314		(48)	
Increase/(decrease) in employee provisions	26		662	
Increase/(decrease) in supplier payables	(145)		356	
Increase/(decrease) in other payable     	(124)		(199)	
Increase/(decrease) in other provisions     	-		-	
Net cash from/(used by) operating activities 	2,111		1,176 	

Note 11: Contingent Liabilities and Assets

Quantifiable Contingencies
At 30 June 2010 the Tribunal has no quantifiable contingent liabilities (2009: Nil).  

Unquantifiable or Remote Contingencies
At 30 June 2010, the Tribunal has not identified any unquantifiable or remote contingencies (2009: Nil).  

Note 12: Senior Executive Remuneration

Note 12A: Actual Remuneration paid to Senior Executives

Executive Remuneration
	2010		2009	
The number of senior executives who received:				
less than $145,000*	-		-	
$175,000 to $189,999	-		1	
$190,000 to  $204,999	1		-	
$205,000 to $219,999	1		-	
$280,000 to $294,999	-		1	
Total	2		2	
* Excluding acting arrangements and part-year service.				

Total expense recognised in relation to Senior Executive employment

Short-term employee benefits				
     Salary (including annual leave taken)	287,245		329,933	
     Changes in annual leave provisions	822		13,485	
     Performance bonus	10,315		4,070	
     Other	63,635		65,863	
Total short-term employee benefits	362,017		413,351	
Superannuation (post-employment benefits)	41,975		45,325	
Other long term benefits	-		-	
Total	403,992		458,676	

During the year the entity did not pay any termination benefits to senior executives (2009: Nil)

Note 12B: Salary Packages for Senior Executives as at 30 June

Average annualised remuneration packages for substantive Senior Executives 

Total remuneration*:	                 As at 30 June 2010	            As at 30 June 2009	

Total remuneration*	
No. SES	Base salary (including annual leave	Total remuneration package	
No. SES	Base salary (including annual leave	Total remuneration package	
							
$175,000 to $189,999				1	114,620	188,930	
$190,000 to  $204,999	1	125,509	201,674				
$265,000 to $279,999	1	203,910	277,825	1	197,890	271,980	
Total	2			2			
* Excluding acting arrangements and part-year service.				

Note that the Registrar of the Tribunal resigned from the Tribunal in March 2010.

Note 13: Remuneration of Auditors
	2010 
 $’000 		2009 
$’000 	
Financial statement audit services were provided free of charge to the Tribunal.				
The fair value of the audit services provided was:	37		37	
	37		37	

No other services were provided by the Auditor-General.

Note 14: Financial Instruments

Note 14A: Categories of financial instruments

Financial assets
Loans and receivables
    Cash and cash equivalents	726		500	
    Trade receivables	56		112	
Carrying amount of financial assets				782		612	

Financial liabilities
Fair value through profit and loss (designated)
    Payables - suppliers	1,117		1,262	
Carrying amount of financial liabilities	1,117		1,262	

Note 14B: Net income and expense from financial assets

The Tribunal had no income or expense in relation to financial assets in the year ending 2010 (2009: Nil)

Note 14C: Net income and expense from financial liabilities

The Tribunal had no income or expense in relation to financial liabilities in the year ending 2010 (2009: Nil)

Note 14D: Credit risk

The Tribunal is exposed to minimal credit risk as loans and receivables are cash and trade receivables.  The maximum exposure to credit risk is the risk that arises from potential default of a debtor.  This amount is equal to the total amount of trade receivables (2010: $55,130 and 2009: $112,033).  The Tribunal has assessed the risk of the default on payment and has allocated nil in 2010 (2009: Nil) to an impairment allowance account.

The Tribunal manages its credit risk by limiting the extension of credit to customers, acting promptly to recover  past due amounts and withholding credit from defaulting customers until accounts are returned to normal terms.  In addition, the Tribunal has policies and procedures that guide employees debt recovery activities including the use of debt collection agents if required.

The Tribunal has no significant exposures to any concentrations of credit risk with particular customers and does therefore not require collateral to mitigate against credit risks.

Credit quality of financial instruments not past due or individually determined as impaired
	Not Past Due Nor Impaired
2010
$’000	Not Past
Due Nor Impaired
2009
$’000	Past Due 
or 
Impaired
2010
$’000	Past Due 
or 
Impaired
2009
$’000	
Loans and receivables					
   Cash and cash equivalents	726	500	-	-	
   Trade receivables	56	108	16	4	
Total	782	608	16	4	

Ageing of financial assets that are past due but not impaired for 2010
	0 to 30
days
$’000	31 to 60
days
$’000	61 to 90
days
$’000	90+
days
$’000	
Total
$’000	
Loans and receivables						
   Trade receivables	15	-	1	-	16	
Total	15	-	1	-	16	

Ageing of financial assets that are past due but not impaired for 2009
	0 to 30
days
$’000	31 to 60
days
$’000	61 to 90
days
$’000	90+
days
$’000	
Total
$’000	
Loans and receivables						
   Trade receivables	4	-	-	-	4	
Total	4	-	-	-	4	

Note 14E: Liquidity risk

The Tribunal’s financial liabilities are supplier payables.  The exposure to liquidity risk is based on the notion that the Tribunal will encounter difficulty in meeting its obligations associated with financial liabilities.  This is highly unlikely due to appropriation funding and mechanisms available to the Tribunal (e.g. Advance to the Finance Minister) and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.  The Tribunal is appropriated funding from the Australian Government and manages its budgeted funds to ensure it is able to meet payments as they fall due.  Policies are in place to ensure timely payment are made when due and there have been no past experience of defaults.

The following tables illustrates the maturities for financial liabilities
	On
demand
2010
$’000	Within 1
year
2010
$’000	1 to 2
years
2010
$’000	2 to 5
years
2010
$’000	> 5
years
2010
$’000	
Total
2010
$’000	
Other liabilities							
   Suppliers	-	1,117	-	-	-	1,117	
Total	-	1,117	-	-	-	1,117	

	On
demand
2009
$’000	Within 1
year
2009
$’000	1 to 2
years
2009
$’000	2 to 5
years
2009
$’000	> 5
years
2009
$’000	
Total
2009
$’000	
Other liabilities							
   Suppliers	-	1,262	-	-	-	1,262	
Total	-	1,262	-	-	-	1,262	

Note 14F: Market risk

The Tribunal holds basic financial instruments that do not expose it to certain market risks.  The Tribunal is not exposed  to 'Currency risk', ‘Interest rate risk’ or 'Other price risk'.

Notes to the Schedule of Administered Items
	
Note 15: Income Administered on Behalf of the Government	
	2010
$'000		2009
$'000	
Non-Taxation Revenue	 		 	
Note 15A: Fees and Fines				
Filing fees	519		523	
Total revenue	519		523	

Note 16: Expenses Administered on Behalf of the Government	
	2010
$'000		2009
$'000	
Note 16A: Other Expenses	 		 	
Refund of filing fees	427		372	
Total expenses	427		372	

Note 17: Assets Administered on Behalf of the Government	

There were no administered assets as at 30 June 2010, (2009: Nil).

Note 18: Liabilities Administered on Behalf of the Government	

There were no administered liabilities as at 30 June 2010, (2009: Nil).

Note 19: Administered Reconciliation Table
	
	2010
$'000		2009
$'000	
Opening administered assets less administered liabilities as at 1 July	-		-	
Plus:   Administered income	519		523	
Less:   Administered refunds	(427)		(372)	
Administered transfers to/from Australian Government:	
Appropriation transfers from OPA	427		372	
Transfers to OPA	(519)		(523)	
Closing administered assets less administered liabilities as at 30 June	-		-	

Note 20: Administered Contingent Assets and Liabilities	

There were no administered contingent assets or liabilities as at 30 June 2010, (2009: Nil).

Note 21: Administered  Investments 	

There were no administered investments as at 30 June 2010, (2009: Nil).

Note 22: Administered Financial Instruments	

There were no administered financial instruments as at 30 June 2010, (2009: Nil).

Note 23: Appropriations

Table A1:  Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

Particulars
	Departmental Outputs	Total	
			
	2010	2009	2010	2009	
	$’000	$’000	$’000	$’000	
Balance brought forward from previous period (Appropriation Acts)	9,970	8,466	9,970	8,466	
Appropriation Act:					
      Appropriation Act (No.1)	32,772	31,849	32,772	31,849	
      Appropriation Act (No.3)  	-	418	-	418	
      Appropriations reduced (Appropriation Act sections 10, 11&12)	(976)	-	(976)	-	
      Comcover receipts (Appropriation Act s12)	-	-	-	-	
FMA Act:					
      Refunds credited (FMA Act s30)	474	101	474	101	
      Appropriations to take account of recoverable GST (FMA Act s30A)	1,217	1,175	1,217	1,175	
      Annotations to ‘net appropriations’ (FMA Act s31)	1,088	1,096	1,088	1,096	
Total appropriations available for payments	44,545	43,105	44,545	43,105	
Cash payments made during the year (GST inclusive)	(35,798)	(33,135)	(35,798)	(33,135)	
Appropriations credited to Special Accounts (GST exclusive)	-	-	-	-	
Balance of authority to draw cash from the Consolidated Revenue Fund for ordinary annual services appropriations and as represented by:	8,747	9,970	8,747	9,970	
					
Cash at bank and on hand	726	500	726	500	
Departmental appropriations receivable	8,021	9,470	8,021	9,470	
Total as at 30 June	8,747	9,970	8,747	9,970	

Departmental and non-operating appropriations do not lapse at financial year end.  However, the responsible Minister may decide that part or all of a departmental or non-operating appropriation is not required and request the Minister for Finance and Deregulation to reduce that appropriation.  The reduction in the appropriation is effected by the Minister for Finance and Deregulation’s determination and is disallowable by Parliament.  

Table A2:  Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations

Particulars
	Non-operating
Equity	Total	
			
	2010	2009	2010	2009	
	$’000	$’000	$’000	$’000	
Balance brought from previous period (Appropriation Acts)	-	-	-	-	
Appropriation Act:					
      Appropriation Act (No.2) 	-	-	-	-	
FMA Act:					
      Refunds credited (FMA s30)	-	-	-	-	
      Appropriations to take account of recoverable GST (FMA s30A)	-	-	-	-	
Total appropriations available for payments		-	-	-	
Cash payments made during the year (GST inclusive)	-	-	-	-	
Appropriations credited to Special Accounts (GST exclusive)	-	-	-	-	
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations	-	-	-	-	

Table C: Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund – Special Appropriations (Unlimited Amount)

Financial Management and Accountability Act 1997	2010	2009	
section 28	$’000	$’000	
Cash payments made during the year	427	372	
Estimated actual	600	600	

Note 24: Special Accounts

The Administrative Appeals Tribunal has not recorded any transaction through any Special Accounts for the year ended 30 June 2010 (2009: Nil).

Note 25: Compensation and Debt Relief

	2010 
 $ 		2009 
$ 	
Administered				
`No ‘Act of Grace’ payments, waivers of debt, ex gratia payments, Compensation for Detriment caused by Defective Administration Scheme payments or special circumstances payments pursuant to section 73 of the Public Service Act 1999 were made during the reporting period.
(2009: nil)
	Nil		Nil	
Departmental				
No ‘Act of Grace’ payments, waivers of debt, ex gratia payments, Compensation for Detriment caused by Defective Administration Scheme payments or special circumstances payments pursuant to section 73 of the Public Service Act 1999 were made during the reporting period.
(2009: nil)
	Nil		Nil	

Note 26: Reporting of Outcomes

The Tribunal has only one outcome which is described in note 1.1.

Note 26A: Net Cost of Outcome Delivery
	Total	
	2010
$'000	2009
$'000	
Expenses		
Administered	427	372	
Departmental	35,205	33,302	
Total 	35,632	33,674	
Income from non-government sector 	
  Administered	-	-	
Activities subject to cost recovery			
Other			
Total administered	-	-	
Departmental			
    Activities subject to cost recovery		-	
    Other	399	361	
Total 	399	361	
Other own-source income		
  Administered	519	523	
  Departmental	723	668	
Total	1,242	1,191	
Net cost/(contribution) of outcome delivery	33,991	32,122	

Note 26B: Major Classes of Administered Revenues and Expenses by Outcomes.

The Tribunal has only one output group which is described in note 1.1.			
	Total
Outcome 1		
	2010
$'000	2009
$'000	
Administered expenses			
Refund of fees and fines	(427)	(372)	
Total	(427)	(372)	
			
Administered income			
Fees & fines	519	523	
Total	519	523