MRT - RRT Annual Report 2007-08

Migration Review Tribunal - Refugee Review Tribunal Annual Report 2007-2008

Part 6-Financial Statements

Contents

Auditor's report and opinion
Statement on financial statements
Income statement
Balance sheet
Statement of changes in equity
Cash flow statement
Schedule of commitments
Schedule of contingencies
Schedule of administered items
Note 1: Summary of significant accounting policies
Note 2: Events after the balance sheet date
Note 3: Income
Note 4: Expenses
Note 5: Financial assets
Note 6: Non-financial assets
Note 7: Payables
Note 8: Interest bearing liabilities
Note 9: Provisions
Note 10: Restructuring
Note 11: Cash flow reconciliation
Note 12: Contingent liabilities and assets
Note 13: Senior executive remuneration
Note 14: Remuneration of auditors
Note 15: Financial Instruments
Note 16: Income administered on behalf of Government
Note 17: Expenses administered on behalf of Government
Note 18: Assets administered on behalf of Government
Note 19: Liabilities administered on behalf of Government
Note 20: Administered reconciliation table
Note 21: Administered contingent assets and liabilities
Note 22: Administered financial instruments
Note 23: Appropriations
Note 24: Compensation and debt relief
Note 25: Reporting of outcomes

Statement by the Principal Member and the Chief Financial Officer

In our opinion, the attached financial statements for the year ended 30 June 2008 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.

Income Statement

for the period ended 30 June 2008

	Notes	2008	2007
	Notes	$'000	$'000
INCOME
Revenue
Revenue from Government	3A	37,815	38,686
Total revenue		37,815	38,686

Gains
Other gains	3B	56	66
Total gains		56	66
Total income		37,871	38,752

EXPENSES
Employee benefits	4A	29,823	27,858
Suppliers	4B	8,473	8,902
Depreciation and amortisation	4C	1,687	1,545
Finance costs	4D	167	191
Write-down and impairment of assets	4E	235	0
Losses from asset sales	4F	0	15
Total expenses		40,385	38,511
Surplus (Deficit) attributable to the Australian Government		(2,514)	241

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

Balance Sheet

as at 30 June 2008

	Notes	2008	2007
	Notes	$'000	$'000
ASSETS
Financial assets
Cash and cash equivalents	5A	188	191
Trade and other receivables	5B	13,588	17,412
Total financial assets		13,776	17,603
Non-financial assets
Land and buildings	6A,E	2,396	2,409
Infrastructure, plant and equipment	6B,E	757	1,035
Intangibles	6C,F	2,977	2,919
Other non-financial assets	6D	238	88
Total non-financial assets		6,368	6,451

Total assets		20,144	24,054

LIABILITIES
Payables
Suppliers	7A	673	2,048
Other payables	7B	2,324	2,500
Total payables		2,997	4,548
Interest bearing liabilities
Leases	8A	2,830	3,251
Total interest bearing liabilities		2,830	3,251
Provisions
Employee provisions	9A	5,330	4,754
Total provisions		5,330	4,754

Total liabilities		11,157	12,553

Net assets		8,987	11,501

EQUITY
Contributed equity		10,876	10,876
Reserves		384	384
Retained surplus (accumulated deficit)		(2,273)	241
Total Equity		8,987	11,501

Current assets		14,014	17,691
Non-current assets		6,130	6,363
Current liabilities		7,365	8,525
Non-current liabilities		3,792	4,028

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

Statement of changes in equity

for the period ended 30 June 2008

	Retained surplus		Asset revaluation		Contributed		Total equity
	Retained surplus		reserves		equity/capital		Total equity
	2008	2007	2008	2007	2008	2007	2008	2007
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
Opening balance
Balance carried forward from previous period	241	-	384	-	10,876	-	11,501	0
Income and expenses
Income and expenses recognised directly in equity	-	-	-	384	-	-	0	384
Sub-total income and expenses recognised directly in equity	-	-	-	384	-	0	-	384
Surplus (Deficit) for the period	(2,514)	241	-	-	-	-	(2,514)	241
Total income and expenses	(2,514)	241	0	384	0	0	(2,514)	625

Contributions by owners
Restructuring	-	-	-	-	-	10,876	-	10,876
Sub-total transactions with owners	0	0	0	0	0	10,876	0	10,876
Closing balance at 30 June	(2,273)	241	384	384	10,876	10,876	8,987	11,501
The above statement should be read in conjunction with the accompanying notes.

Cash Flow Statement

for the period ended 30 June 2008

	Notes	2008	2007
	Notes	$'000	$'000
OPERATING ACTIVITIES
Cash received
Appropriations		37,639	39,659
Net GST received		-	51
Other cash received		1	-
Total cash received		37,640	39,710
Cash used
Employees		29,247	27,931
Suppliers		9,958	8,237
Net GST paid		22	-
Cash tranferred to OPA		(3,861)	2,136
Total cash used		35,366	38,304
Net cash flows from or (used by) operating activities	11	2,274	1,406
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment		-	4
Other cash received		-	1
Total cash received		0	5
Cash used
Purchase of property, plant and equipment		1,689	1,504
Total cash used		1,689	1,504
Net cash flows from or (used by) investing activities		(1,689)	(1,499)
FINANCING ACTIVITIES
Cash received
Contributed equity - restructuring		-	872
Total cash received		0	872
Cash used
Repayment of lease incentive		588	588
Total cash used		588	588
Net cash flows from or (used by) financing activities		(588)	284
Net increase or (decrease) in cash held		(3)	191

Cash and cash equivalents at the beginning of the reporting period		191	-

Cash and cash equivalents at the end of the reporting period	5A	188	191

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

Schedule of Commitments

as at 30 June 2008

	2008	2007
	$'000	$'000
BY TYPE
Commitments receivable
GST recoverable on commitments	(2,683)	(3,078)
Total Commitments Receivable	(2,683)	(3,078)

Other commitments
Operating leases	29,515	33,863
Total other commitments	29,515	33,863
Net commitments by type	26,832	30,785

BY MATURITY
Other commitments receivable
One year or less	(412)	(402)
From one to five years	(2,037)	(2,146)
Over five years	(234)	(530)
Total other commitments receivable	(2,683)	(3,078)

Commitments payable
Operating lease commitments
One year or less	4,531	4,417
From one to five years	22,402	23,612
Over five years	2,582	5,834
Total operating lease commitments	29,515	33,863

Net commitments by maturity	26,832	30,785

NB: Commitments are GST inclusive where relevant.
On 1 September 2003, the two tribunals re-located in new premises in Melbourne with a lease for a period of 10 years. The commitment at 30 June 2008 is $9.5m.
On 1 May 2005, the two tribunals re-located in new premises in Sydney with a lease for a period of 10 years. The commitment at
30 June 2008 is $20.0m.

Operating leases included are effectively non-cancellable and comprise:

Nature of lease	General description of leasing arrangement
Leases for office accommodation	Lease payments are subject to annual increase in accordance with the terms of the lease agreements.
Agreements for the provision of motor vehicles to senior executive officers	No contingent rentals exist. There are no renewal or purchase options available to the Tribunal.

Schedule of Contingencies

as at 30 June 2008

	TOTAL
	2008	2007
	$'000	$'000
Contingent assets
Balance from previous period	-	-
New	-	-
Total contingent assets	0	0

	TOTAL
	2008	2007
	$'000	$'000
Contingent liabilities
Balance from previous period	-	-
New	-	-
Total contingent liabilities	0	0
Net contingent assets (liabilities)	-	-

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

Schedule of Administered Items

as at 30 June 2008


	Notes	2008	2007
	Notes	$'000	$'000
Income administered on behalf of Government for the period ended 30 June 2008
Revenue
Other revenue	16A	10,244	9,727
Total non-taxation revenue		10,244	9,727
Total revenues administered on behalf of Government		10,244	9,727

Expenses administered on behalf of Government for the period ended 30 June 2008
Write-down and impairment of assets	17A	1,970	2,137
Other expenses	17B	3,756	4,800
Total expenses administered on behalf of Government		5,726	6,937

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


	Notes	2008	2007
	Notes	$'000	$'000
Assets administered on behalf of Government as at 30 June 2008
Financial assets
Cash and cash equivalents	18A	26	16
Receivables	18B	236	212
Total financial assets		262	228

Total assets administered on behalf of Government		262	228

Liabilities administered on behalf of Government as at 30 June 2008
Payables
Other payables	19A	-	-
Total payables		-	-

Total liabilities administered on behalf of Government		-	-

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


	Notes	2008	2007
	Notes	$'000	$'000
Administered Cash Flows for the period ended 30 June 2008
OPERATING ACTIVITIES
Cash received
Fees		8,249	7,865
Total cash received		8,249	7,865
Cash used
Other		3,756	4,916
Total cash used		3,756	4,916
Net cash flows from or (used by) operating activities		4,493	2,949

Net Increase (Decrease) in Cash Held		4,493	2,949

Cash and cash equivalents at the beginning of the reporting period		16	-
Cash from Official Public Account for:
Appropriations		3,756	4,916
		3,772	4,916

Cash to Official Public Account for:
Appropriations		8,239	7,849
		8,239	7,849

Cash and cash equivalents at the end of the reporting period	18A	26	16

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


	Notes	2008	2007
	Notes	$'000	$'000
Administered Commitments as at 30 June 2008
There are no administered commitments at 30 June 2008


	Notes	2008	2007
	Notes	$'000	$'000
Administered Contingencies as at 30 June 2008
There are no administered commitments at 30 June 2008

Notes to and forming part of the financial statements

Note 1: Summary of significant accounting policies

1.1 Objectives of the MRT-RRT

The Migration Review Tribunal (the MRT) and the Refugee Review Tribunal (the RRT) are statutory bodies established under the Migration Act 1958.

The Financial Management and Accountability Regulations were amended with effect from 1 July 2006 to establish a single prescribed agency, the 'Migration Review Tribunal and Refugee Review Tribunal' (MRT-RRT) for the purposes of the Financial Management and Accountability Act 1997 (the FMA Act).

The MRT-RRT has one outcome:

Outcome 1: To provide visa applicants and sponsors with fair, just, economical, informal and quick reviews of migration and refugee decisions.

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

Departmental activities are identified under Output 1.

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

1.2 Basis of preparation of the financial report

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

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

Finance Minister's Orders (or FMOs) for reporting periods ending on or after 1 July 2007; and
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial report has been prepared on an accrual basis and is in accordance with the historical cost convention, except for certain assets 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 report is 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 MRT-RRT 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 unrealised are reported in the Schedule of Commitments and the Schedule of Contingencies.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the Income Statement 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 1.19.

1.3 Significant accounting judgements and estimates

In the process of applying the accounting policies listed in this note, the MRT-RRT has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

The fair value of buildings and plant and equipment has been taken to be the market value as determined by an independant valuer.

1.4 Statement of compliance

Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards (IFRSs) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not-for-profit entities that are inconsistent with IFRS requirements. The MRT-RRT is a not-for-profit entity and has applied these requirements, so while this financial report complies with Australian Accounting Standards including Australian Equivalents to International Financial Reporting Standards (AEIFRSs) it cannot make this statement.

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 standard is applicable to the current reporting period:

Financial instrument disclosure

AASB 7 Financial Instruments: Disclosures is effective for reporting periods beginning on or after 1 January 2007 (the 2007-08 financial year) and amends the disclosure requirements for financial instruments. In general AASB 7 requires greater disclosure than that previously required. Associated with the introduction of AASB 7 a number of accounting standards were amended to reference the new standard or remove the present disclosure requirements through 2005-10 Amendments to Australian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133, AASB 139, AASB 1, AASB 4, AASB 1023 & AASB 1038]. These changes have no financial impact but will affect the disclosure presented in future financial reports.

The following new accounting standards (including reissued standards/erratum/interpretations) are applicable to the 2007-08 financial year and have no material impact on the MRT-RRT:

AASB 101	Presentation of Financial Statements (issued October 2006)
AASB 1048	Interpretation and Application of Standards (reissued September 2007)
AASB 2007-1	Amendments to Australian Accounting Standards arising from AASB interpretation 11
AASB 2007-4	Amendments to Australian Accounting Standards arising from ED 151 and other amendments
AASB 2007-5	Amendments to Australian Accounting Standards-Inventories Held for Distribution by Not-for-Profit Entities [AASB 102]
AASB 2007-7	Amendments to Australian Accounting Standards [AASB 1, 2, 3, 5, 107, 128]
AASB 2008-4	Amendments to Australian Accounting Standards-Key Management Personnel Disclosures by Disclosing Entities [AASB 124]
ERR Erratum	Proportionate Consolidation [AASB 102, AASB 107, AASB 121, AASB 127, Interpretation 113]
Interp 10	Interim Financial Reporting and Impairment
Interp 11	AASB 2 Group and Treasury Share Transactions
Interp 1003	Australian Petroleum Resource Rent Tax

Future Australian Accounting Standard requirements

The following new standards, amendments to standards or interpretations have been issued by the Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that the impact of adopting these pronouncements when effective will have no material financial impact on future reporting periods.

AASB 3	Business Combinations
AASB 8	Operating Segments
AASB 101	Presentation of Financial Statements (issued September 2007)
AASB 123	Borrowing Costs
AASB 127	Consolidated and Separate Financial Statements
AASB 1004	Contributions
AASB 1049	Whole of Government and General Government Sector Financial Reporting
AASB 1050	Administered Items
AASB 1051	Land Under Roads
AASB 1052	Disaggregated Disclosures
AASB 2007-2	Amendments to Australian Accounting Standards arising from AASB Interpretation 12 [AASB 1, AASB 117, AASB 118, AASB 120, AASB 121, AASB 127 AASB 131 & AASB 139]
AASB 2007-3	Amendments to Australian Accounting Standards arising from AASB 8
AASB 2007-6	Amendments to Australian Accounting Standards arising from AASB 123
AASB 2007-8	Amendments to Australian Accounting Standards arising from AASB 101
AASB 2007-9	Amendments to Australian Accounting Standards arising from the Review of AASs 27, 29 and 31 [AASB 3, AASB 5, AASB 8, AASB 101, ASB 114, AASB 116, AASB 127 & AASB 137]
AASB 2008-1	Amendments to Australian Accounting Standard- Share based Payments: Vesting Conditions and Cancellations [AASB 2]
AASB 2008-2	Amendments to Australian Accounting Standards- Puttable Financial Instruments and Obligations arising on Liquidation [AASB 7, AASB 101, AASB 132, AASB 139 & Interpretation 2]
AASB 2008-3	Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127 [AASBs 1, 2, 4, 5, 7, 101, 107, 112, 114, 116, 121, 128, 131, 132, 133, 134, 136, 137, 138 & 139 and Interpretations 9 & 107]
Interp 1	Changes in Existing Decommissioning, Restoration and Similar Liabilities
Interp 4	Determining Whether an Arrangement Contains a Lease
Interp 12	Service Concession Arrangements
Interp 13	Customer Loyalty Programmes
Interp 14	AASB 119- The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Interp 129	Service Concession Arrangements Disclosures
Interp 1038	Contributions by Owners Made to Wholly-owned Public Sector Entities

1.5 Revenue

Revenue from Government

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

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).

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 MRT-RRT.

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:

The amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
The probable economic benefits with the transaction will flow to the MRT-RRT.

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 provision for bad and doubtful debts. Collectability of debts is reviewed at balance date. Provisions are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

1.6 Gains

Other 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.

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.

1.8 Employee benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for 'short-term employee benefits' (as defined in AASB 119) 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.

All other employee benefit liabilities are measured at the present value of the estimated future cash outflows to be made in respect of services provided by employees up to the reporting date.

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 MRT-RRT is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employees' remuneration, including the MRT-RRT'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 2008. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

Most staff and members of the MRT-RRT are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), Australian Government Employees Superannuation Trust (AGEST) or the PSS accumulation plan (PSSap).

The CSS and PSS are defined benefit schemes. The PSSap is a defined contribution scheme. AGEST is an industry super fund.

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 MRT-RRT makes employer contributions to the employee superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the MRT-RRT's employees. The MRT-RRT accounts for the contributions as if they were contributions to defined contribution plans.

From 1 July 2005, new employees are eligible to join the PSSap scheme.

The liability for superannuation recognised as 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.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

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 Borrowing costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash and cash equivalents includes notes and coins held and any deposits in bank accounts. Cash is recognised at its nominal amount.

1.12 Financial assets

The MRT-RRT classifies its financial assets in the following category:

'Loans and Receivables'.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

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.

Impairment of financial assets

Financial assets are assessed for impairment at each balance date.

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 Income Statement.

1.13 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, including borrowings, 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

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).

1.14 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.

1.15 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.

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 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).

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

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating result. Revaluation decrements for a class of assets are recognised directly through operating result 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 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 MRT-RRT 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:

	2008	2007
Leasehold improvements	Lease term	Lease term
Plant and Equipment	3 to 10 years	3 to 5 years

Impairment

All assets were assessed for impairment at 30 June 2008. 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 MRT-RRT were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.17 Intangibles

The MRT-RRT's intangibles comprise internally developed software for internal use. These assets are carried at cost less accumulated amortisation.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the MRT-RRT's software are 3 to 5 years (2006-07: 3 to 5 years).

All software assets were assessed for indications of impairment as at 30 June 2008.

1.18 Taxation

The MRT-RRT 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 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 the Official Public Account

Revenue collected by the MRT-RRT for use by the Government rather than the MRT-RRT 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 MRT-RRT on behalf of the Government and reported as such in the Administered Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 20. The Schedule of Administered Items largely reflects the Government's transactions, through the MRT-RRT, with parties outside the Government.

Revenue

All administered revenues are revenues relating to the course of ordinary activities performed by the
MRT-RRT on behalf of the Australian Government.

Revenue is generated from fees charged for MRT applications when lodged and RRT applications once the decision has been made (post-decision fee). Administered fee revenue is recognised when invoiced (RRT fees) or received (MRT fees).

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised cost using the effective interest method. Gains and losses due to impairment, derecognition and amortisation are recognised through surplus and deficit.

Note 2: Events after the balance sheet date

There has has not been any event occuring after balance date that has not been brought to account in the 2008 Financial Report.

Note 3: Income


	2008	2007
	$'000	$'000
Revenue
Note 3A: Revenue from Government
Appropriations:
Departmental outputs	37,815	38,686
Total revenue from Government	37,815	38,686

Note 3B: Other gains
Resources received free of charge	55	65
Other	1	1
Total other gains	56	66

Note 4: Expenses

	2008	2007
	$'000	$'000
Note 4A: Employee benefits
Wages and salaries	22,133	21,372
Superannuation:
Defined benefit plans	3,129	2,850
Defined contribution plans	550	501
Leave and other entitlements	3,993	3,135
Separation and redundancies	18	-
Total employee benefits	29,823	27,858

Note 4B: Suppliers
Provision of goods - external parties	574	518
Rendering of services - related entities	1,080	1,926
Rendering of services - external parties	3,686	3,451
Operating lease rentals:
Minimum lease payments	2,535	2,437
Workers compensation premiums	598	570
Total supplier expenses	8,473	8,902

Note 4C: Depreciation and amortisation
Depreciation:
Infrastructure, plant and equipment	283	546
Buildings	397	328
Total depreciation	680	874
Intangibles:
Computer Software	1,007	671
Total amortisation	1,007	671
Total depreciation and amortisation	1,687	1,545

Note 4D: Finance costs
Finance leases	167	191
Total finance costs	167	191

Note 4E: Write-down and impairment of assets
Asset Write-Downs from
Revaluation of plant and equipment	235	-
Total write-down and impairment of assets	235	0

Note 4F: Losses from assets sales
Infrastructure, plant and equipment
Proceeds from sale	-	(4)
Carrying value of assets sold	-	19
Total losses from assets sales	0	15

Note 5: Financial assets

	2008	2007
	$'000	$'000
Note 5A: Cash and cash equivalents
Cash on hand or on deposit	188	191
Total cash and cash equivalents	188	191

Note 5B: Trade and other receivables
Appropriations receivable:
for existing outputs	13,301	17,162
Total appropriations receivable	13,301	17,162
GST receivable from the Australian Taxation Office	204	226
Other:
Other receivables	83	24
Total other receivables	287	250
Total trade and other receivables (gross)	13,588	17,412
Less Allowance for doubtful debts:
Other	-	-
Total trade and other receivables (net)	13,588	17,412

Receivables are represented by:
Current	13,588	17,412
Total trade and other receivables (net)	13,588	17,412

Receivables are aged as follows:
Not overdue	13,588	17,412
Total receivables (gross)	13,588	17,412

Note 6: Non-Financial assets

	2008	2007
	$'000	$'000
Note 6A: Land and buildings
Leasehold improvements
- fair value	3,976	3,592
- accumulated depreciation	(1,580)	(1,183)
Total leasehold improvements	2,396	2,409
Total land and buildings (non-current)	2,396	2,409

$2,396K (2007: $2,409K) of total leasehold improvements refers to fitout, which may not be disposed of without prior ministerial approval.

No indicators of impairment were found for land and buildings.

Note 6B: Infrastructure, plant and equipment
Infrastructure, plant and equipment:
- gross carrying value (at fair value)	757	3,457
- accumulated depreciation	-	(2,422)
Total infrastructure, plant and equipment (non-current)	757	1,035

All revaluations are conducted in accordance with the revaluation policy stated at Note 1. In 2007-08, an independent valuer, Australian Valuation Office, conducted the revaluation of plant and equipment. The revaluation of plant and equipment, resulting in a decrement of $235K, was expensed (2007: $Nil).
Revaluation for leasehold improvements were conducted in 2007, and $384K was credited to the asset revaluation reserve by asset class and included in the equity section of the balance sheet.

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

Note 6C: Intangibles
Computer software at cost:
Externally developed	592	592
Internally developed - in use	4,238	3,173
Total Computer Software	4,830	3,765
Accumulated amortisation	(1,853)	(846)
Total intangibles (non-current)	2,977	2,919

No indicators of impairment were found for intangible assets.

Note 6D: Other non-financial assets
Prepayments	238	88
Total other non-financial assets	238	88

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

Note 6E: Analysis of property, plant and equipment
TABLE A - Reconciliation of the opening and closing balances of property, plant and equipment (2007-08)
		Other
	Buildings	IP & E	Total
	$'000	$'000	$'000
As at 1 July 2007
Gross book value	3,592	3,457	7,049
Accumulated depreciation/amortisation and impairment	(1,183)	(2,422)	(3,605)
Net book value 1 July 2007	2,409	1,035	3,444
Additions:
by purchase	384	240	624
Depreciation/amortisation expense	(397)	(283)	(680)
Impairments recognised in the operating result	-	(235)	(235)
Disposals:
Other disposals	-	-	-
Net book value 30 June 2008	2,396	757	3,153

Net book value as of 30 June 2008 represented by:
Gross book value	3,976	757	4,733
Accumulated depreciation/amortisation and impairment	(1,580)	-	(1,580)
	2,396	757	3,153

TABLE B - Reconciliation of the opening and closing balances of property, plant and equipment (2006-07)
		Other
	Buildings	IP & E	Total
	$'000	$'000	$'000
As at 1 July 2006
Gross book value	-	-	-
Accumulated depreciation/amortisation and impairment	-	-	-
Net book value 1 July 2006	-	-	-
Additions:
result of restructuring	2,228	1,354	3,582
by purchase	125	246	371
Depreciation/amortisation expense	(328)	(546)	(874)
Revaluations	384	-	384
Disposals:
Other disposals	-	(19)	(19)
Net book value 30 June 2007	2,409	1,035	3,444

Net book value as of 30 June 2007 represented by:
Gross book value	3,592	3,457	7,049
Accumulated depreciation/amortisation and impairment	(1,183)	(2,422)	(3,605)
	2,409	1,035	3,444

Note 6F: Intangibles
Table C: Reconciliation of the opening and closing balances of intangibles (2007-08).
Item	Computer software internally developed	Computer software purchased	Total
	$'000	$'000	$'000
As at 1 July 2007
Gross book value	3,173	592	3,765
Accumulated depreciation/amortisation and impairment	(558)	(288)	(846)
Net book value 1 July 2007	2,615	304	2,919
Additions:
by purchase or internally developed	1,065	-	1,065
Amortisation	(850)	(157)	(1,007)
Disposals:
Other disposals	-	-	-
Net book value 30 June 2008	2,830	147	2,977

Net book value as of 30 June 2008 represented by:
Gross book value	4,238	592	4,830
Accumulated depreciation/amortisation and impairment	(1,408)	(445)	(1,853)
	2,830	147	2,977

Table D: Reconciliation of the opening and closing balances of intangibles (2006-07).
Item	Computer software internally developed	Computer software purchased	Total
	$'000	$'000	$'000
As at 1 July 2006
Gross book value	-	-	-
Accumulated depreciation/amortisation and impairment	-	-	-
Net book value 1 July 2006	-	-	-
Additions:
result of restructuring	2,015	442	2,457
by purchase or internally developed	1,114	19	1,133
Amortisation	(514)	(157)	(671)
Disposals:
Other disposals	-	-	-
Net book value 30 June 2007	2,615	304	2,919

Net book value as of 30 June 2007 represented by:
Gross book value	3,173	592	3,765
Accumulated depreciation/amortisation and impairment	(558)	(288)	(846)
	2,615	304	2,919

Note 7: Payables

	2008	2007
	$'000	$'000
Note 7A: Suppliers
Trade creditors	673	2,048
Operating lease rentals	-	-
Total supplier payables	673	2,048

Supplier payables are represented by:
Current	673	2,048
Non-current	-	-
Total supplier payables	673	2,048

Settlement is usually made net 30 days.


Note 7B: Other payables
Other - Owing to Goverment	2,324	2,500
Total Other Payables	2,324	2,500

Note 8: Interest bearing liabilities

	2008	2007
	$'000	$'000
Note 8A: Leases
Finance leases	2,830	3,251
Total finance leases	2,830	3,251

Payable:
Within one year
Minimum lease payments	610	612
Deduct: future finance charges	(163)	(190)

In one to five years
Minimum lease payments	2,657	3,053
Deduct: future finance charges	(326)	(488)

In more than five years
Minimum lease payments	52	264
Deduct: future finance charges	-	-
Finance leases recognised on the balance sheet	2,830	3,251

A finance lease exists in relation to the fitout of the Melbourne office. The lease is non-cancellable and for a fixed term of 10 years commencing 1 September 2003. The interest rate in the lease is 9.31%. There are no contingent rentals.

Note 9: Provisions

	2008	2007
	$'000	$'000
Note 9A: Employee provisions
Salaries and wages	408	364
Leave	4,263	4,003
Superannuation	659	387
Total employee provisions	5,330	4,754

Employee provisions are represented by:
Current	3,921	3,555
Non-current	1,409	1,199
Total employee provisions	5,330	4,754

The classification of current includes amounts for which there is not an unconditional right to defer settlement by one year, hence in the case of employee provisions the above classification does not represent the amount expected to be settled within one year of reporting date. Employee provisions expected to be settled in twelve months from the reporting date are $2,631K (2007: $2,431K), and in excess of one year $2,699K (2007: $2,323K)

Note 10: Restructuring

Note 10A: Departmental restructuring
The MRT-RRT was established as a prescribed agency for the purposes of the FMA Act with effect from 1 July 2006. Previously, the MRT and RRT were separately prescribed as agencies for the purposes of the FMA Act. With the establishment of the MRT-RRT, the appropriations, assets, liabilities and commitments of the MRT and the RRT were transferred to the MRT-RRT. (Refer Note 1.1)
In respect of functions assumed, the net book values of assets and liabilities transferred to the MRT-RRT for no consideration and recognised as at the date of transfer were:
	2008	2007
	$'000	$'000
Total assets recognised	-	22,481
Total liabilities recognised	-	(11,605)
Net assets assumed	-	10,876

Net increase (decrease) in net assets during the year	-	10,876


Note 10B: Administered restructuring
The MRT-RRT was established as a prescribed agency for the purposes of the FMA Act with effect from 1 July 2006. Previously, the MRT and RRT were separately prescribed as agencies for the purposes of the FMA Act. With the establishment of the MRT-RRT, the appropriations, assets, liabilities and commitments of the MRT and the RRT were transferred to the MRT-RRT. (Refer Note 1.1)
In respect of functions relinquished, the following assets and liabilities were transferred by the MRT-RRT:
	2008	2007
	$'000	$'000
Total assets recognised	-	371
Total liabilities recognised	-	-
Net assets assumed	-	371

Net increase (decrease) in administered net assets during the year	-	371

Note 11: Cash flow reconciliation

	2008	2007
	$'000	$'000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Report cash and cash equivalents as per:
Cash Flow Statement	188	191
Balance Sheet	188	191
Difference	-	-

Reconciliation of operating result to net cash from operating activities:
Operating result	(2,514)	241
Depreciation /amortisation	1,687	1,545
Net write down of non-financial assets	235	-
Loss on disposal of assets	-	14
Increase in net assets on restructuring	-	3,965
(Increase) / decrease in net receivables	3,824	(17,412)
(Increase) / decrease in prepayments	(150)	(88)
Increase / (decrease) in employee provisions	576	4,754
Increase / (decrease) in interest bearing liabilities	167	3,839
Increase / (decrease) in supplier payables	(1,375)	2,048
Increase / (decrease) in other payables	(176)	2,500
Net cash from / (used by) operating activities	2,274	1,406

Note 12: Contingent liabilities and assets

Quantifiable contingencies

There are no contingent liabilities and assets as at 30 June 2008.

Unquantifiable contingencies

At 30 June 2008, the MRT-RRT had no legal claims against it.

Note 13: Senior executive remuneration

	2008	2007
The number of senior executives who received or were due to receive total remuneration of $130,000 or more:

$175 000 to $189 999	2	1
$190 000 to $204 999	1	-
$220 000 to $234 999	-	1
$265 000 to $279 999	1	-
$295 000 to $309 999	1	-
$340 000 to $354 999	-	1
Total	5	3

The aggregate amount of total remuneration of senior executives shown above.	$1,129,224	$754,626

The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above.	$99,697	-

Note 14: Remuneration of auditors

	2008	2007
	$'000	$'000
Financial statement audit services are provided free of charge to the agency.
The fair value of the services provided was:	55	65
	55	65

No other services were provided by the Auditor-General.

Note 15: Financial instruments

	2008	2007
	$'000	$'000
15A Categories of financial instruments
Financial assets
Cash	188	191
	188	191
Loans and receivables financial assets
Receivables for goods and services	13,588	17,412
	13,588	17,412

Carrying amount of financial assets	13,776	17,603

Financial liabilities
At amortised cost
Finance lease liabilities	2,830	3,251
Other liabilities
- Suppliers	673	2,048
- Other	2,324	2,500
	2,997	4,548

Carrying amount of financial liabilities	5,827	7,799

	2008	2007
	$'000	$'000
15B Net income and expense from financial liabilities
Financial liabilities - at amortised cost
Interest expense	167	191
Net gain/(loss) financial liabilities - at amortised cost	167	191

Net gain/(loss) from financial liabilities	167	191

15C Fair value of financial instruments
FINANCIAL ASSETS	Carrying amount 2008 $'000	Fair value 2008 $'000	Carrying amount 2007 $'000	Fair value 2007 $'000
Cash at bank	188	188	191	191
Receivables for goods and services	13,588	13,588	17,412	17,412
Total	13,776	13,776	17,603	17,603
FINANCIAL LIABILITIES
Finance lease	2,830	2,697	3,251	3,105
Other - Suppliers	673	673	2,048	2,048
- Other	2,324	2,324	2,500	2,500
Total	5,827	5,694	7,799	7,653

Valuation method used for determining the fair value of financial instruments
The following table identifies for those assets and liabilities carried at fair value (above) whether fair value was obtained by reference to market prices or by a valuation technique that employs observable market transactions, or one that uses non-observable market inputs to determine a fair value.

Financial assets at fair value	Valuation technique utilising
Financial assets at fair value	Market values $'000	Market inputs $'000	Non-market inputs $'000	Total $'000
Cash at bank	188	-	-	188
Receivables for goods and services	13,588	-	-	13,588
Financial assets at fair value	13,776	-	-	13,776
Financial liabilities at fair value
Finance lease	2,697	-	-	2,697
Other - Suppliers	673	-	-	673
- Other	2,324	-	-	2,324
Financial liabilities at fair value	5,694	-	-	5,694

15D Credit risk
The MRT-RRT'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.
The MRT-RRT has no significant exposures to any concentrations of credit risk.
All figures for credit risk referred to do not take into account the value of any collateral or other security.
This note also applies to MRT-RRT's administered financial instruments and is therefore not reproduced at Note 22.

15E Liquidity risk
The MRT-RRT financial liabilities are payables, loans from government and finance leases. The exposure to liquidity risk is based on the notion that the Agency will encounter difficulty in meeting its obligations associated with financial liabilities. This is highly unlikely due to appropriation funding and mechanisms available to the MRT-RRT (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.

15F Market risk
The MRT-RRT holds a fixed lease at 9.31% for leasehold property and is not exposed to market risks. The MRT-RRT is not exposed 'Currency risk' or 'Other price risk'.

Note 16: Income administered on behalf of Government

	2008	2007
	$'000	$'000
Revenue
Non-taxation revenue

Note 16A: Other revenue
Other - MRT application fees	7,757	7,056
Other - RRT post-decision fees	2,487	2,671
Total other revenue	10,244	9,727

Note 17: Expenses administered on behalf of Government

	2008	2007
	$'000	$'000
Expenses

Note 17A: Write-down and impairment of assets
Asset write-downs from
provision for bad debts - RRT post-decision fees	1,970	2,137
Total write-down and impairment of assets	1,970	2,137


Note 17B: Other expenses
Other - Refund of fees	3,756	4,800
Total other expenses	3,756	4,800

Note 18: Assets administered on behalf of Government

	2008	2007
	$'000	$'000
Financial assets
Note 18A: Cash and cash equivalents
Cash on hand or on deposits	26	16
Total cash and cash equivalents	26	16

Note 18B: Receivables
Other receivables:
Fees	543	519
Total receivables	543	519
Less: Allowance for doubtful debts:
Other receivables	307	307
Total receivables (net)	236	212

Receivables are aged as follows:
Not overdue	46	-
Overdue by:
Less than 30 days	320	93
30 to 60 days	162	173
61 to 90 days	4	160
More than 90 days	11	93
Total receivables (gross)	543	519
The allowance for doubtful debts is aged as follows:
Not overdue	-	-
Overdue by:
Less than 30 days	197	44
30 to 60 days	103	81
61 to 90 days	1	132
More than 90 days	6	50
Total allowance for doubtful debts	307	307

Goods and services receivables are with entities external to the Australian Government. Credit terms are net 30 days (2007: 30 days).

Reconciliation of the allowance for doubtful debts:
Movements
	Other	Other receivables 2007 $'000
Opening balance	307	-
Restructuring	-	427
Amounts written off	1,970	2,137
Amounts recovered and reversed	(1,970)	(2,257)
Closing balance	307	307

Note 19: Liabilities administered on behalf of Government

	2008	2007
	$'000	$'000
Payables
Note 19A: Other payables
Other	-	-
Total other payables	-	-

Note 20: Administered reconciliation table

	2008	2007
	$'000	$'000
Opening administered assets less administered liabilities as at 1 July	228	-
Plus: Administered income	10,244	9,727
Less: Administered expenses	( 5,726)	( 6,937)
Administered transfers to/from Australian Government:
Transfers to OPA	( 4,484)	( 2,933)
Restructuring	-	371
Closing administered assets less administered liabilities as at 30 June	262	228

Note 21: Administered contingent assets and liabilities

Unquantifiable administered assets and contingencies

At 30 June 2008, the MRT-RRT had no contingent assets.

At 30 June 2008, the MRT-RRT had no legal claims against it.

Note 22: Administered financial instruments

22A Fair value of financial instruments
FINANCIAL ASSETS	Carrying amount 2008 $'000	Fair value 2008 $'000	Carrying amount 2007 $'000	Fair value 2007 $'000
Cash	26	26	16	16
Fees Receivable (gross)	543	543	519	519
Total	569	569	535	535
FINANCIAL LIABILITIES
Other	-	-	-	-
Total	-	-	-	-

22B Credit risk
The MRT-RRT is not exposed to credit risk at reporting date in relation to each class of recognised financial assets.

22C Liquidity risk
The MRT-RRT has no financial liabilities and is not exposed to liquidity risk.

22D Market risk
The MRT-RRT is not exposed to market risk.

Note 23: Appropriations

Table A: Acquittal of authority to draw cash from the Consolidated Revenue Fund for ordinary annual services appropriations
Particulars	Departmental outputs
Particulars	2008 $'000	2007 $'000
Balance brought forward from previous period	14,853	-
Appropriation Act:
Appropriation Act (No.1) 2007-08	40,313	40,474
Appropriation Act (No.3) 2007-08	(2,674)	(815)
Adjustment to appropriation	176	(973)
Reductions of appropriations (Appropriation Act section 9)
Administered appropriation lapsed (Appropriation Act section 8)	-	-
Advance to the Finance Minister (Appropriation Act section 11)	-	-
Comcover receipts (Appropriation Act section 12)	-	-
FMA Act:
Refunds credited (FMA section 30)	-	-
Appropriations to take account of recoverable GST (FMA section 30A)	(22)	51
Annotations to 'net appropriations' (FMA section 31)	1	5
Adjustment of appropriations on change of entity function (FMA section 32)	-	14,371
Total appropriation available for payments	52,647	53,113
Cash payments made during the year (GST inclusive)	41,482	38,260
Appropriations credited to Special Accounts (excluding GST)	-	-
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations	11,165	14,853

Represented by
Cash at bank and on hand	188	191
Departmental appropriations receivable	13,301	17,162
Departmental appropriations to be returned to Official Public Account	(2,324)	(2,500)
Total	11,165	14,853

Departmental and non-operating appropriations do not lapse at financial year end.

Note 24: Compensation and debt relief

	2008	2007
	$	$
Administered
One 'Act of Grace' expense was incurred during the reporting period (2007: one).	1,400	1,400

No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997. (2007: No waivers)	-	-

353 waivers of amounts owing to the Australian Government were made pursuant to Regulation 4.13(4) of the Migration Regulations 1994. (2007: 304 waivers)
	494,200	425,600

Note 25: Reporting of outcomes

Note 25A: Net cost of outcome delivery
	Outcome 1
	2008 $'000	2007 $'000
Expenses
Administered	5,726	6,937
Departmental	40,385	38,511
Total expenses	46,111	45,448
Costs recovered from provision of goods and services to the non government sector
Administered	10,244	9,727
Departmental	-	-
Total costs recovered	10,244	9,727
Other external revenues
Administered	-	-
Departmental	-	-
Total other external revenues	-	-
Net cost/(contribution) of outcome	35,867	35,721

Note 25B: Major classes of departmental revenues and expenses by output groups and outputs
Outcome 1	Outcome 1 Total
Outcome 1	2008 $'000	2007 $'000
Departmental expenses
Employees	29,823	27,858
Suppliers	8,473	8,902
Depreciation and amortisation	1,687	1,545
Other Expenses	402	206
Total departmental expenses	40,385	38,511
Funded by:
Revenues from Government	37,815	38,686
Total departmental revenues	37,815	38,686

Note 25C: Major classes of administered revenues and expenses by outcomes
	Outcome 1
	2008 $'000	2007 $'000
Administered income
Other non-taxation revenue	10,244	9,727
Total administered income	10,244	9,727

Administered expenses
Write-down and impairment of assets	1,970	2,137
Other expenses - refund of application fees	3,756	4,800
Total administered expenses	5,726	6,937
Outcome 1 is described in Note 1.1.