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Part 5 –Notes to and forming part of the financial statements

Note 1: Summary of Significant Accounting Policies

1.1   Objectives of the Migration Review Tribunal and Refugee Review Tribunal

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 correct and preferable decisions for visa applicants and sponsors through independent, fair, just, economical, informal and quick merits reviews of migration and refugee decisions.   

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.

The MRT-RRT 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 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.

The MRT-RRT conducts the following administered activities: 1. the collection of MRT application fees and RRT post decision fees. 2. The repayment of fees to successful applicants.

1.2   Basis of Preparation of the Financial Statements

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

The financial statements have been prepared in accordance with:

• Finance Minister's Orders (FMOs) 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 in accordance with the historical cost convention, except for certain assets and liabilities at fair value.  Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

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

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

1.3   Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the MRT-RRT reduced the administered debt write-offs to avoid re-instating debts that were previously written off. MRT-RRT has made no other significant judgements that have impacted on the amounts recorded in the financial statements.

• The fair value of land and buildings was revalued at the 30 June 2010 by an independent valuer.

1.4   New Australian Accounting Standards

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard. There are no new accounting standards, amendments to standards and interpretations issued by the Australian Accounting Standards Board that are applicable to the current period, which have had a material financial impact on the MRT-RRT.

Future Australian Accounting Standard Requirements

No new standards, amendments to standards and interpretations that have been issued by the Australian Accounting Standards Board that are applicable to future periods, are expected to have a material financial impact on the MRT-RRT.

1.5   Revenue

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

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

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

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.

Revenue from Government 

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

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the MRT-RRT not yet paid to employees were presented gross as cash and a liability (payable). The total amount received under this scheme is disclosed as a footnote to the Note 4C: Revenue from Government.

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 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) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity.

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 end of reporting period are measured at their nominal amounts.

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

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

Leave

The liability for employee benefits includes provision for annual leave and long service leave.  No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the 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 at the estimated salary rates that will apply at the time the leave is taken, 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 2011. 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 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 MRT-RRT makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The MRT-RRT accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final 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 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 an 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 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.

1.12  Financial Assets

The MRT-RRT classifies its financial assets in the loans and receivables category.

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'.

Impairment of Financial Assets

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

1.13   Financial Liabilities

Financial liabilities are classified as other financial liabilities and are recognised and derecognised upon 'trade date'.

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 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 income 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: Leasehold Improvements at 'Depreciated Replacement Cost', and Plant and Equipment at 'Market Value'.

Following initial recognition at cost, property 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 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 has been credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit.  Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

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

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to 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:

	2011	2010
Leasehold improvements	Lease term	Lease term
Plant and Equipment	3 to 10 years	3 to 10 years

Impairment

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

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

1.17   Intangibles

MRT-RRT's intangibles are comprised of internally developed software  and purchased 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 MRT-RRT's software are 3 to 10 years (2010: 3 to 8 years).

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

1.18   Taxation / Competitive Neutrality

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:

a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
b) for receivables and payables.

Note 2: Events After the Reporting Period

There has not been any event occuring after balance date that has not been brought to account in the 2010-11 financial report

Note 3: Expenses

	2011 $’000	2010 $’000
Note 3A: Employee Benefits
Wages and salaries	26,296	25,683
Superannuation:
Defined contribution plans	1,724	945
Defined benefit plans	2,455	2,995
Leave and other entitlements	4,726	4,346
Separation and redundancies	-	12
Total employee benefits	35,201	33,981
Note 3B: Suppliers
Goods and services
Property operating expenses (excluding lease payments)	1,291	1,291
Interpreting	1,057	1,053
Communications	935	1,136
Interstate facilities	646	701
Printing and Stationery	410	371
Other	2,217	1,895
Total goods and services	6,556	6,447
Goods and services are made up of:
Provision of goods – external parties	620	552
Rendering of services – related entities	1,308	1,317
Rendering of services – external parties	4,628	4,578
Total goods and services	6,556	6,447
Other supplier expenses
Operating lease rentals – external parties:
Minimum lease payments	2,791	2,672
Workers compensation expenses	160	179
Total other supplier expenses	2,951	2,851
Total supplier expenses	9,507	9,298
Note 3C: Depreciation and Amortisation
Depreciation:
Property, plant and equipment	223	212
Buildings	466	466
Total depreciation	689	678
Amortisation:
Intangibles	466	656
Total amortisation	466	656
Total depreciation and amortisation	1,155	1,334
Note 3D: Finance Costs
Finance leases	101	133
Total finance costs	101	133
Note 3E: Write-Down and Impairment of Assets
Asset write-downs and impairments from:
Revaluation decrement - Leasehold improvements	-	29
Total write-down and impairment of assets	-	29
Note 3F: Losses from Asset Sales
Property, plant and equipment:
Carrying value of assets sold	1	2
Total losses from asset sales	1	2

Note 4: Income

	2011 $’000	2010 $’000
OWN-SOURCE REVENUE
Note 4A: Sale of Goods and Rendering of Services
Rendering of services - related entities	350	54
Total sale of goods and rendering of services	350	54
GAINS
Note 4B: Other Gains
Resources received free of charge	38	55
Other	-	1
Total other gains	38	56
REVENUE FROM GOVERNMENT
Note 4C: Revenue from Government*
Appropriations:
Departmental appropriation	42,932	40,062
Total revenue from Government	42,932	40,062

* The entity received $9k (2010: $Nil) under the Paid Parental Leave Scheme.

Note 5: Financial Assets

	2011 $’000	2010 $’000
Note 5A: Cash and Cash Equivalents
Cash on hand or on deposit	125	49
Total cash and cash equivalents	125	49
Note 5B: Trade and Other Receivables
Good and Services:
Goods and services - related entities	242	57
Total receivables for goods and services	242	57
Appropriations receivable :
For existing programs	6,321	6,955
Total appropriations receivable	6,321	6,955
Other receivables:
GST receivable from the Australian Taxation Office	188	131
Other	14	15
Total other receivables	202	146
Total trade and other receivables (gross)	6,765	7,158
Receivables are expected to be recovered in:
No more than 12 months	6,765	7,158
More than 12 months	-	-
Total trade and other receivables (net)	6,765	7,158
Receivables are aged as follows:
Not overdue	6,765	7,158
Total receivables (gross)	6,765	7,158

Note the 2010 figure for Receivables includes an offset of $4.801m against appropriation receivable previously included in 'Other payables'

Note 6: Non-Financial Assets

	2011 $’000	2010 $’000
Note 6A:  Land and Buildings
Leasehold improvements:
Fair value	1,807	1,595
Accumulated depreciation	(553)	(86)
Total leasehold improvements	1,254	1,509
Total land and buildings	1,254	1,509

$1,254k (2010: $1,509k) of total leasehold improvements may not be disposed of without prior ministerial approval.
No indicators of impairment were found for land and buildings.
No land or buildings are expected to be sold or disposed of within the next 12 months.

	2011 $'000	2010 $'000
Note 6B:  Property, Plant and Equipment
Other property, plant and equipment:
Fair value	1,505	1,012
Accumulated depreciation	(627)	(440)
Total other property, plant and equipment	878	572
Total property, plant and equipment	878	572

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

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

	Buildings $'000	Other property, plant & equipment $'000	Total $'000
As at 1 July 2010
Gross book value	1,595	1,012	2,607
Accumulated depreciation and impairment	(86)	(440)	(526)
Net book value 1 July 2010	1,509	572	2,081
Additions	211	529	740
Depreciation expense	(466)	(223)	(689)
Disposals:			-
Other	-	(1)	(1)
Net book value 30 June 2011	1,254	878	2,132
Net book value as of 30 June 2011 represented by:
Gross book value	1,806	1,505	3,311
Accumulated depreciation and impairment	(552)	(627)	(1,179)
Net book value 30 June 2011	1,254	878	2,132
Note 6C (Cont'd):  Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment (2009-10)
	Buildings $'000	Other property, plant & equipment $'000	Total $'000
As at 1 July 2009
Gross book value	4,007	778	4,785
Accumulated depreciation and impairment	(2,042)	(233)	(2,275)
Net book value 1 July 2009	1,965	545	2,510
Additions	39	243	282
Revaluations recognised in the operating result	(29)	-	(29)
Depreciation expense	(466)	(212)	(678)
Disposals:
Other	-	(4)	(4)
Net book value 30 June 2010	1,509	572	2,081
Net book value as of 30 June 2010 represented by:
Gross book value	1,595	1,012	2,607
Accumulated depreciation and impairment	(86)	(440)	(526)
	1,509	572	2,081

 

	2011 $'000	2010 $'000
Note 6D:  Intangibles
Computer software:
Internally developed – in use	5,195	4,797
Purchased	836	787
Accumulated amortisation	(3,615)	(3,162)
Total computer software	2,416	2,422
Total intangibles	2,416	2,422

No indicators of impairment were found for intangible assets.

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

Note 6E:  Reconciliation of the Opening and Closing Balances of Intangibles (2010-11)
	Computer software internally developed $'000	Computer  software purchased $'000	Total $'000
As at 1 July 2010
Gross book value	4,797	787	5,584
Accumulated amortisation and impairment	(2,530)	(632)	(3,162)
Net book value 1 July 2010	2,267	155	2,422
Additions*	398	62	460
Disposals:
Other	-	-	-
Amortisation	(418)	(48)	(466)
Net book value 30 June 2011	2,247	169	2,416
Net book value as of 30 June 2011 represented by:
Gross book value	5,195	836	6,031
Accumulated amortisation and impairment	(2,948)	(667)	(3,615)
	2,247	169	2,416
* Disaggregated additions information is disclosed in the Schedule of Asset Additions.
Note 6E (Cont'd):  Reconciliation of the Opening and Closing Balances of Intangibles (2009-10)
	Computer software internally developed $'000	Computer  software purchased $'000	Total $'000
As at 1 July 2009
Gross book value	4,651	776	5,427
Accumulated amortisation and impairment	(1,941)	(565)	(2,506)
Net book value 1 July 2009	2,710	211	2,921
Additions:
Purchased	-	11	11
Internally developed	146	-	146
Amortisation	(589)	(67)	(656)
Net book value 30 June 2010	2,267	155	2,422
Net book value as of 30 June 2010 represented by:
Gross book value	4,797	787	5,584
Accumulated amortisation and impairment	(2,530)	(632)	(3,162)
	2,267	155	2,422

 

	2011 $'000	2010 $'000
Note 6F:  Other Non-Financial Assets
Prepayments	199	203
Total other non-financial assets	199	203
Total other non-financial assets - are expected to be recovered in:
No more than 12 months	199	203
Total other non-financial assets	199	203

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

Note 7: Payables

	2011 $’000	2010 $’000
Note 7: Suppliers
Trade creditors and accruals	1,090	648
Total supplier payables	1,090	648
Supplier payables expected to be settled within 12 months:
Related entities	308	112
External parties	782	536
Total	1,090	648
Total supplier payables	1,090	648

Settlement was usually made within 30 days.

Note 8: Interest Bearing Liabilities

	2011 $’000	2010 $’000
Note 8: Leases
Finance leases	1,394	1,904
Total finance leases	1,394	1,904
Payable:
Within one year:
Minimum lease payments	611	611
Deduct: future finance charges	(65)	(101)
In one to five years:
Minimum lease payments	874	1,486
Deduct: future finance charges	(26)	(92)
Finance leases recognised on the balance sheet	1,394	1,904

Finance leases exist in relation to the fitout of the Melbourne office.  The leases are non-cancellable and for a fixed term of 10 years.  The interest rate in the lease is 9.31%.   There are no contingent rentals.

Note 9: Provisions

	2011 $’000	2010 $’000
Note 9:  Employee Provisions
Leave	5,527	5,018
Other	1,633	1,689
Total employee provisions	7,160	6,707
Employee provisions are expected to be settled in:
No more than 12 months	3,506	3,164
More than 12 months	3,654	3,543
Total employee provisions	7,160	6,707

Note 10: Cash Flow Reconciliation

	2011 $’000	2010 $’000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Cash and cash equivalents as per:
Cash flow statement	125	49
Balance sheet	125	49
Difference	-	-
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services	(45,577)	(44,667)
Add revenue from Government	42,932	40,062
Adjustments for non-cash items
Depreciation / amortisation	1,155	1,334
Net write down of non-financial assets	-	29
Loss on disposal of assets	1	2
Changes in assets / liabilities
(Increase) / decrease in net receivables	1,419	2,279
(Increase) / decrease in prepayments	4	91
Increase / (decrease) in employee provisions	453	908
Increase / (decrease) in supplier payables	199	(129)
Increase / (decrease) in other payable	-	952
Net cash from (used by) operating activities	586	861

Note 11: Contingent Liabilities and Assets

Quantifiable Contingencies
There are no quantifiable contingent liabilities or assets at 30 June 2011 (2010: Nil).

Unquantifiable Contingencies
The MRT-RRT had no legal claims against it at 30 June 2011 (2010: Nil)

Note 12: Senior Executive Remuneration

Note 12A: Senior Executive Remuneration Expense for the Reporting Period

	2011 $’000	2010 $’000
Short-term employee benefits:
Salary	518,162	548,100
Annual leave accrued	45,429	55,874
Performance bonuses	-	12,023
Other 1	167,702	153,464
Total short-term employee benefits	731,293	769,461
Post-employment benefits:
Superannuation	79,181	76,667
Total post-employment benefits	79,181	76,667
Other long-term benefits:
Long-service leave	14,562	29,738
Total other long-term benefits	14,562	29,738
Total	825,036	875,866

Notes:

1. Other - Includes motor vehicle, accommodation and other allowances.

Note 12B: Average Annual Remuneration Packages and Bonus Paid for Substantive Senior Executives as at the end of the Reporting Period

Fixed Elements and Bonus Paid1	as at 30 June 2011					as at 30 June 2010
		Fixed elements			Bonus paid2 $		Fixed elements			Bonus paid2 $
	Senior Executives No.	Salary $	Allowances $	Total $		Senior Executives No.	Salary $	Allowances $	Total $
Total remuneration (including part-time arrangements):
$180,000 to $209,999	1	180,096	25,250	205,346	-	1	141,650	56,992	198,642	-
$240,000 to $269,999	2	260,110	-	260,110	-	2	167,690	76,316	244,006	-
$360,000 to $389,999	-	-	-	-	-	1	194,720	172,013	366,733	-
$390,000 to $419,999	1	336,370	61,329	397,699	-	-	-	-	-	-
Total	4					4

Notes:

1. This table reports substantive senior executives who were employed by the entity at the end of the reporting period. Fixed elements were based on the employment agreement of each individual. Each row represents an average annualised figure (based on headcount) for the individuals in that remuneration package band (i.e. the 'Total' column).

2. This represents average actual bonuses paid during the reporting period in that remuneration package band. The 'Bonus paid' was excluded from the 'Total' calculation, (for the purpose of determining remuneration package bands). The 'Bonus paid' within a particular band may vary between financial years due to various factors such as individuals commencing with or leaving the entity during the financial year.

Variable Elements:

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

(a) Bonuses:

• •Bonuses were based on the performance rating of each individual.

(b) On average senior executives were entitled to the following leave entitlements:

• Annual Leave (AL): entitled to 20 days (2010: 20 days) each full year worked (pro-rata for part-time SES);
  
• Personal Leave (PL): entitled to 20 days (2010: 20 days) or part-time equivalent; and
• Long Service Leave (LSL): in accordance with Long Service Leave (Commonwealth Employees) Act 1976.
  

(c) Senior executives were members of one of the following superannuation funds:

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

(d) Various salary sacrifice arrangements were available to senior executives including super, motor vehicle and expense payment fringe benefits.

Note 12C: Other Highly Paid Staff

During the reporting period, the salaries of 49 Tribunal members were $150,000 or more. Remuneration for members is fixed by Remuneration Tribunal determination.  Members are appointed and conduct reviews under the Migration Act 1958, and are not disclosed as senior executives in Notes 12A and 12B.

Note 13: Remuneration of Auditors

	2011 $’000	2010 $’000
Financial statement audit services were provided free of charge to the entity.	38	55
Fair value of the services provided:	38	55

No other services were provided by the auditors of the financial statements.

Note 14: Financial Instruments

	2011 $’000	2010 $’000
Note 14A: Categories of Financial Instruments
Financial Assets
Loans and receivables:
Cash and cash equivalents	125	49
Loans and Receivables	256	72
Total	381	121
Carrying amount of financial assets	381	121
Financial Liabilities
At amortised cost:
Finance lease	1,394	1,904
Other Liabilities - Suppliers	1,090	648
Total	2,484	2,552
Carrying amount of financial liabilities	2,484	2,552
Note 14B: Expense from Financial Liabilities
Financial liabilities - at amortised cost
Interest expense	(101)	(133)
Net (loss) from financial liabilities - at amortised cost	(101)	(133)

Note 14C: Fair Value of Financial Instruments

	Carrying amount 2011 $'000	Fair value 2011 $'000	Carrying amount 2010 $'000	Fair value 2010 $'000
Financial Assets
Cash and cash equivalents	125	125	49	49
Loans and Receivables	256	256	72	72
Total	381	381	121	121
Financial Liabilities
Finance lease	1,394	1,349	1,904	1,831
Other Liabilities - Suppliers	1,090	1,090	648	648
Total	2,484	2,439	2,552	2,479

Fair value for each class of financial assets and financial liabilities is determined at market value.

Note 14D: 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.

Note 14E: 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 MRT-RRT 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.

Note 14F: 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 to 'Currency risk' or 'Other price risk'.

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 Financial Instruments

Note 22: Appropriations

Table A: Annual Appropriations ('Recoverable GST exclusive')

	2011 Appropriations			Appropriation applied in 2011 (current and prior years) $'000	Variance $'000
	Appropriation Act	FMA Act	Total appropriation $'000
	Annual Appropriation $'000	Section 31 $'000
DEPARTMENTAL
Ordinary annual services	43,218	130	43,348	45,524	(2,176)
Other services
Equity	80	-	80	80	-
Total departmental	43,298	130	43,428	45,604	(2,176)
Notes: (a)    Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.  (b)  An adjustment has been made to increase appropriation for surplus in caseload totalling $1.618m in 2010/11. This adjustment met the recognition criteria of a formal addition in revenue (in accordance with FMO Div 101) but at law the appropriations had not been amended before the end of the reporting period. (c) The Minister of Finance and Deregulation had approved an operating loss of $4.426m for 2010-11.  The operating loss was funded from appropriations accumulated from previous years.
	2010 Appropriations			Appropriation applied in 2011 (current and prior years) $'000	Variance $'000
	Appropriation Act	FMA Act	Total appropriation $'000
	Annual Appropriation $'000	Section 31 $'000
DEPARTMENTAL
Ordinary annual services	41,014	49	41,063	43,454	(2,391)
Total departmental	41,014	49	41,063	43,454	(2,391)
Notes: (a)    Departmental appropriations do not lapse at financial year-end. However, the responsible Minister may decide that part or all of a departmental appropriation is not required and request that the Finance Minister reduce that appropriation. The reduction in the appropriation is effected by the Finance Minister's determination and is disallowable by Parliament.  (b)  An adjustment has been made to reduce appropriation for a shortfall in caseload totalling  $0.983m in 2009/10. This adjustment has met the recognition criteria of a formal reduction in revenue (in accordance with FMO Div 101) but at law the appropriations had not been amended before the end of the reporting period. (c) The Minister of Finance and Deregulation had approved an operating loss of $2.825m for 2009-10.  The operating loss was funded from appropriations accumulated from previous years.
Table B: Unspent Departmental Annual Appropriations ('Recoverable GST exclusive')
Authority				2011 $'000	2010 $'000
Appropriation Act No 1 (2006/07)				815	815
Appropriation Act No 1 (2007/08)				2,278	2,278
Appropriation Act No 1 (2008/09)				1,540	1,540
Appropriation Act No 1 (2009/10)				983	7,956
Appropriation Act No 1 (2010/11)				4,797	-
Sub-total				10,413	12,589
Note that 2010 comparative figures have been adjusted to include amounts that met the recognition criteria for formal reductions in revenue but where at law the appropriations had not been amended.
Table C: Special Appropriations ('Recoverable GST exclusive')
Authority				Appropriation applied
	Type	Purpose		2011 $'000	2010 $'000
FMA Act S28	Refund	Refund of MRT application fees		4,201	5,288
FMA Act S28	Refund	Refund of RRT application fees		33	52
Total				4,234	5,340
The MRT-RRT has recently become aware that there is an increased risk of non-compliance with Section 83 of the Constitution where payments are made from special appropriations and special accounts in circumstances where the payments do not accord with conditions included in the relevant legislation.  The MRT-RRT will investigate these circumstances and any impact on its special appropriations shown above seeking legal advice as appropriate.

Note 23: Compensation and Debt Relief

Note 24: Reporting of Outcomes

Note 24A: Net Cost of Outcome Delivery
	Outcome 1
	2011 $’000	2010 $’000
Expenses
Administered	5,808	6,837
Departmental	45,965	44,777
Total	51,773	51,614
Income from non-government sector
Administered
Other	15,672	12,643
Total administered	15,672	12,643
Departmental
Other	-	-
Total departmental	-	-
Total	15,672	12,643
Other own-source income
Administered	-	-
Departmental	388	110
Total	388	110
Net cost/(contribution) of outcome delivery	35,713	38,861
Outcome 1 is described in Note 1.1. Net costs shown included intra-government costs that were eliminated in calculating the actual Budget Outcome.
Note 24B: Major Classes of Departmental Expense, Income, Assets and Liabilities by Outcome
	Outcome 1
	2011 $’000	2010 $’000
Departmental Expenses:
Employees	35,201	33,981
Suppliers	9,507	9,298
Depreciation and Amortisation	1,155	1,334
Finance costs	101	133
Write-down and impairment of assets	-	29
Other Expenses	1	2
Total	45,965	44,777
Departmental Income:
Income from government	42,932	40,062
Rendering of services	388	110
Total	43,320	40,172
Departmental Assets
Financial Assets	6,890	7,207
Non-Financial Assets	4,747	4,706
Total	11,637	11,913
Departmental Liabilities
Payables	1,090	648
Interest Bearing Liabilities	1,394	1,904
Provisions	7,160	6,707
Total	9,644	9,259
Note 24C: Major Classes of Administered Expenses, Income, Assets and Liabilities by Outcome
	Outcome 1
	2011 $’000	2010 $’000
Administered expenses
Write down and impairment of assets	1,574	1,546
Other Expenses - refund of application fees	4,234	5,291
Total	5,808	6,837
Administered income
Other non-tax revenue	15,672	12,643
Total	15,672	12,643
Administered assets
Financial assets	1,391	808
Total	1,391	808
Administered liabilities
Other	-	-
Total	-	-

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

	2011 $’000	2010 $’000
Total Comprehensive Income (loss) attributable to the entity
Total comprehensive (loss)*	(2,645)	(4,605)
Plus: non-appropriated expenses
Depreciation and amortisation expenses	1,155	-
Total comprehensive income (loss) attributable to the entity	(1,490)	(4,605)

* As per the Statement of Comprehensive Income.