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Financial statements
2020
2019
$'000
$'000
4.1B: Grants
Non-profit organisations
414
278
Other grants
−
55
Total grants
414
333
4.1C: Finance costs
Interest on lease liabilities
5,437
−
Unwinding of discount
2
2
Total finance costs
5,439
2
Accounting Policy
All borrowing costs are expensed as incurred.
4.1D: Write-down and impairment of assets and other expenses
Write-down of property, plant and equipment
6
40
Act of grace payments
10,259
−
Resources provided free of charge 4
1,137
−
Total write-down and impairment of assets and other expenses
11,402
40
4.1E: Income tax expense/(benefit)
Competitive neutrality - Australian Government Solicitor
(230)
934
Accounting Policy
The Australian Government Solicitor section of the department provided services on a for-profit basis up to
30 June 2019 and was subject to the Australian Government’s Competitive Neutrality Policy. The above amounts
have been calculated as being payable to the Australian Government in the form of company income tax under the
Income Tax Assessment Acts had they applied. These amounts have been paid or are payable by the department
to the Official Public Account.
1 In accordance with the Administrative Arrangements Order of 29 May 2019, industrial relations functions were
transferred to the department from the former Department of Employment, Skil s, Small and Family Business.
2 Legal services provided by the Australian Government Solicitor to the department totalling $9.287m (2019: $8.924m)
have been eliminated from revenue and expenditure in these financial statements.
3 The department has applied AASB 16 for the first time using the modified retrospective approach. The comparative
information has not been restated and continues to be reported under AASB 117. The current year total represents
low-value leases of $0.025m. There were no short-term leases in the current year total.
4 To support the Commonwealth’s whole of government approach in responding to the COVID-19 pandemic, the
department redeployed staff to Services Australia and other departments and agencies. The amount shown as resources
provided free of charge represents the total remuneration of those staff transferred.
164
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Financial s
tatements
Accounting Policy
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 gain 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 Note 9.2).
2020
2019
$'000
$'000
4.2D: Revenue from Government - departmental appropriations
213,111
131,064
Accounting Policy
Revenue from Government
Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are
recognised as revenue from Government when the department 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.
1 In accordance with the Administrative Arrangements Order of 29 May 2019, industrial relations functions were
transferred to the department from the former Department of Employment, Skil s, Small and Family Business.
2 The ANAO provides audit services that are funded from Government appropriation. This amount of $0.495m (2019:
$0.495m) reflects the value of these services to the department.
166
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Notes to the fiNaNcial statemeNts
Accounting Policy
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 he 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.
4.1B: Grants
State and territory governments
−
258
Non-profit organisations
346
824
Other private sector
−
300
Other grants
550
−
Total grants
896
1,382
4.1C: Write-down and impairment of assets and other expenses
Write-down of property, plant and equipment
116
377
Impairment of financial instruments
−
(45)
Public Service Act 1999 s73 payments
−
55
Written-down value of fitout to other agencies 3
−
10,822
Unwinding of makegood expense
1
−
Total write-down and impairment of assets and other expenses
117
11,209
4.1D: Resources provided free of charge 4
6,041
−
4.1E: Income tax expense
Competitive neutrality - Australian Government Solicitor
4,667
5,277
Accounting Policy
All borrowing costs are expensed as incurred.
The Australian Government Solicitor section of the department provides services on a for-profit basis and is subject to the
Australian Government’s Competitive Neutrality Policy. The above amounts have been calculated as being payable to the
Australian Government in the form of company income tax under the Income Tax Assessment Acts had they applied.
These amounts have been paid or are payable by the department to the Official Public Account.
1 In accordance with the Administrative Arrangements Orders of 20 December 2017 and 10 May 2018, national security,
commonwealth emergency management, natural disaster relief and Australian Government Disaster Recovery Payment
programs and functions were transferred to he Department of Home Affairs.
2 Legal services provided by the Australian Government Solicitor (AGS) to the department total ing $8.088m (2017:
$12.034m) have been eliminated from revenue and expenditure in these financial statements.
3 During 2016-17, the department vacated levels 2 and 3 of 4 National Circuit, Barton and transferred the remaining lease
obligations and fitout to other Government agencies at no cost.
4 Resources provided free of charge by the department includes employee payments made to policy and program staff
who transferred to the Department of Home Affairs for the period 20 December 2017 to 8 February 2018 and employee
payments made to corporate staff who transferred to the Department of Home Affairs from the period 31 January 2018
until 8 February 2018.
ANNUAL REPORT 2017–18 121
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Notes to the fiNaNcial statemeNts
2018
2017
$'000
$'000
4.2D: Revenue from Government - departmental appropriations
181,822
199,889
Accounting Policy
Revenue from Government
Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are
recognised as revenue from Government when the department 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.
1 In accordance with the Administrative Arrangements Orders of 20 December 2017 and 10 May 2018, national security,
commonwealth emergency management, natural disaster relief and Australian Government Disaster Recovery Payment
programs and functions were transferred to the Department of Home Affairs.
2 The ANAO provides audit services that are funded from Government appropriation. This amount of $0.495m (2017:
$0.495m) reflects the value of these services to the department.
ANNUAL REPORT 2017–18 123
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Notes to the fiNaNcial statemeNts
1 Financial performance
This section analyses the financial performance of the
Attorney-General’s Department for the year ended 2016.
1.1 ExPENSES 1, 2
Notes
2016
2015
$’000
$’000
1.1A: Employee benefits
Wages and salaries
181,010
136,094
Superannuation
Defined benefit plans
22,797
25,969
Defined contribution plans
9,720
321
Leave and other entitlements
19,760
15,604
Separation and redundancies
3,645
3,082
Other employee benefit expenses
Recruitment and security vetting expenses
1,606
2,465
Health and wellbeing payments to staff
739
747
Other employee expenses
4,012
1,276
Total employee benefits
243,289
185,558
Accounting policy
Accounting policies for employee-related expenses are contained in the ‘People and relationships’ section.
1.1B: Suppliers
Goods and services supplied or rendered
Accommodation expenses
6,249
5,694
Consultants
3,682
3,011
Contractors
5,283
6,366
Travel
6,137
7,987
Information technology and communications
17,366
10,889
General office
11,906
14,103
AusCheck expenditure
7,430
6,990
Legal fees 3
479
7,023
Audit fees
1,084
855
Defence Abuse Response Taskforce expenses 4
Defence Abuse Response Taskforce outcome payments 5
805
34,325
Contractors
633
534
Information technology and communications
51
132
General office
3,074
4,611
Payments and contributions to external bodies
6,480
8,878
Total goods and services supplied or rendered
70,659
111,398
Goods supplied
4,119
4,135
Services rendered
66,540
107,263
Total goods and services supplied or rendered
70,659
111,398
Other suppliers
Operating lease rentals in connection with
Minimum lease payments
29,444
22,224
Workers compensation expenses
2,215
1,990
Total other suppliers
31,659
24,214
Total suppliers
102,318
135,612
ANNUAL REPORT 2015–16 97
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PART 4 FINANCIAL STATEMENTS
Leasing commitments
The Department, in its capacity as lessee, has the following operating leases that are effectively non-cancellable and comprise
leases for office accommodation. Each lease is individual and may be subject to automatic percentage increases depending on
the terms of the agreement.
2016
2015
$’000
$’000
Operating lease commitments
Within 1 year
31,635
22,740
Between 1 to 5 years
113,834
87,449
More than 5 years
129,563
114,629
Total operating lease commitments
275,032
224,818
Accounting policy
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.
Operating lease payments are expensed on a straight-line basis, which is representative of the pattern of benefits derived
from the leased assets.
1.1C: Grants
State and territory governments
440
798
Local governments
−
45
Non-profit organisations 6
28
2,963
Other private sector
7
992
Overseas
−
356
Other grants
884
759
Total grants
1,359
5,913
1.1D: Write-down and impairment of assets and other expenses
Write-down of property, plant and equipment
197
16
Impairment of financial instruments
168
46
Unwinding of make-good expense
4
4
Total write-down and impairment of assets and other expenses
369
66
Notes
1 On 15 December 2014, the Government announced that it would consolidate the Australian Government Solicitor (AGS) within the Attorney-
General’s Department with effect from 1 July 2015. Revenue and expenses for the AGS have been consolidated into the Department’s financial
statements for the first time in the 2015–16 financial year. As a consequence, both revenue and expenses may be materially different to the
comparative shown in the 2014–15 financial year.
2 In accordance with the Administrative Arrangements Order of 21 September 2015, the Classification, Copyright and Arts and Cultural
Development programs and functions were transferred to the Department of Communications and the Arts with effect from 1 November
2015. Accordingly, amounts shown for 2015–16 include revenue and expenses for these functions up to 31 October 2015 and may be materially
different to the comparative shown in the 2014–15 financial year.
3 Legal services provided by the AGS to the Department totalling $10.265m have been eliminated from revenue and expenditure in these financial
statements in 2015–16.
4 On 26 November 2012, the Defence Abuse Response Taskforce was established within the Attorney-General’s Department. All costs are
reimbursed by the Department of Defence. The decrease in expenditure for 2015–16 reflects a reduced level of activities as the taskforce
concludes its work.
5 Defence Abuse Response Taskforce outcome payments relating to the Reparation Scheme, Restorative Engagement Program and the nationwide
Defence Abuse Counselling Scheme.
6 2015 reflects one-off grants made to non-government organisations.
98 Attorney-General’s Department
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Document Outline
