The Inspector-General of Taxation

Statement by the Chief Executive Officer and Chief Finance Officer
Certification of financial statements

In our opinion, the attached financial statements for the year ended 30 June 2014 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.

  • [SIGNED]
    Ali Noroozi
    Inspector-General of Taxation
    28 August 2014
  • [SIGNED]
    Andrew McLoughlin
    Chief Finance Officer
    28 August 2014

Statement of Comprehensive Income
for the period ended 30 June 2014

  Notes 2014
$
2013
$
NET COST OF SERVICES      
Expenses      
Employee benefits 3A 1,836,693 1,645,744
Suppliers 3B 842,241 879,441
Depreciation and amortisation 3C 41,796 74,410
Finance costs 3D 2,757 1,657
Write-down and impairment of assets 3E - 245
Total Expenses   2,723,487 2,601,497
       
LESS:      
Own-Source Income      
Gains      
Other gains 4A 88,346 32,800
Total gains   88,346 32,800
Total own-source income   88,346 32,800
Net cost of services   (2,635,141) (2,568,697)
Revenue from Government 4B 2,626,000 2,622,000
Surplus/(Deficit) attributable to the Australian Government   (9,141) 53,303
OTHER COMPREHENSIVE INCOME      
Items not subject to subsequent reclassification to net cost of services      
Changes in asset revaluation reserves   (3,730) 138,478
Total other comprehensive income   (3,730) 138,478
       
Total comprehensive income / (loss) attributable to the Australian Government   (12,871) 191,781

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

Statement of Financial Position
as at 30 June 2014

  Notes 2014
$
2013
$
ASSETS      
Financial assets      
Cash and cash equivalents 6A 45,019 98,052
Trade and other receivables 6B 3,375,753 3,071,018
Total financial assets   3,420,772 3,169,070
Non-financial assets      
Property, plant and equipment 7A,7C 20,359 34,382
Leasehold improvements 7B,7C 128,501 154,344
Other non-financial assets 7D 37,844 22,900
Total non-financial assets   186,704 211,626
Total assets   3,607,476 3,380,696
       
LIABILITIES      
Payables      
Suppliers 8A 68,259 27,434
Other payables 8B 88,095 38,873
Total payables   156,354 66,307
Provisions      
Employee provisions 9A 427,726 302,541
Other provisions 9B 93,418 86,931
Total provisions   521,144 389,472
Total liabilities   677,498 455,779
Net assets   2,929,978 2,924,917
       
EQUITY      
Contributed equity   137,573 107,573
Reserves   437,933 441,663
Retained surplus   2,354,472 2,375,681
Total equity   2,929,978 2,924,917

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

Statement of Changes in Equity
for the period ended

Retained earnings Asset revaluation reserves Contributed equity Total equity
  2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
2014
$
2013
$
Opening balance as at 1 July                
Balance carried forward from previous period 2,375,681 2,322,378 441,663 294,138 107,573 77,573 2,924,917 2,694,089
Adjustment to prior year entitlements (12,068) - - - - - (12,068) -
Total comprehensive income 2,363,613 2,322,378 441,663 294,138 107,573 77,573 2,912,849 2,694,089
Comprehensive income                
Revaluations - - - 138,478 - - - 138,478
Re-statement of ‘Make Good’ - - (3,730) 9,047 - - (3,730) 9,047
Surplus/(deficit) for the period (9,141) 53,303 - - - - (9,141) 53,303
Total comprehensive income (9,141) 53,303 (3,730) 147,525 - - (12,871) 200,828
Transactions with owners                
Contributions by owners                
Departmental capital budget appropriation - - - - 30,000 30,000 30,000 30,000
Total transactions with owners - - - - 30,000 30,000 30,000 30,000
Closing balance as at 30 June 2,354,472 2,375,681 437,933 441,663 137,573 107,573 2,929,978 2,924,917

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

Cash Flow Statement
for the period ended 30 June 2014

  Notes 2014
$
2013
$
OPERATING ACTIVITIES      
Cash received      
Appropriations   2,293,458 2,504,360
Net GST received   54,049 82,632
Total cash received   2,347,507 2,586,992
Cash used      
Employees   1,665,410 1,575,005
Suppliers   790,614 934,518
Total cash used   2,456,024 2,509,523
Net cash from (used by) operating activities 10 (108,517) 77,469
       
INVESTING ACTIVITIES      
Cash used      
Purchase of property, plant and equipment   1,930 16,896
Total cash used   1,930 16,896
Net cash from (used by) investing activities   (1,930) (16,896)
       
FINANCING ACTIVITIES      
Cash received      
Contributed equity   57,414 -
Total cash received   57,414 -
Net cash from (used by) financing activities   57,414 -
       
Net increase (decrease) in cash held   (53,033) 60,573
Cash at the beginning of the reporting period   98,052 37,479
Cash at the end of the reporting period 6A 45,019 98,052
       

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

Schedule of Commitments
as at 30 June 2014

  2014
$
2013
$
BY TYPE    
Commitments receivable    
Net GST recoverable on commitments 111,349 132,921
Total commitments receivable 111,349 132,921
     
Commitments payable    
Other commitments    
Operating leases1 1,224,844 1,462,136
Other commitments2 720,000 -
Total other commitments 1,944,844 1,462,136
Total commitments payable 1,944,844 1,462,136
Net commitments by type 1,833,495 1,329,215
     
BY MATURITY    
Commitments receivable    
Within 1 year 22,172 21,059
Between 1 to 5 years 89,177 95,855
More than 5 years - 16,007
Total commitments receivable 111,349 132,921
     
Commitments payable    
Operating lease commitments    
Within 1 year 243,896 231,644
Between 1 to 5 years 980,948 1,054,416
More than 5 years - 176,076
Total operating lease commitments 1,224,844 1,462,136
     
Other commitments    
Within 1 year 240,000 -
Between 1 to 5 years 480,000 -
More than 5 years - -
Total other commitments 720,000 -
Total commitments payable 1,944,844 1,462,136
Net commitments by maturity 1,833,495 1,329,215
     

Note: Commitments are GST inclusive where relevant.

Note Nature of Lease General description of leasing arrangements
1 Leases for office accommodation The agreement allows annual fixed rental increases. The agency entered into a further lease at the current premises in 2013.
Note Description General description of the agreement
2 Service Agreement for the provision of office services The agreement allows for an annual increase with Wage Cost Index (WCI).

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

Schedule of Contingencies
as at 30 June 2014

The Inspector-General of Taxation has no contingent assets and liabilities.

Notes to and forming part of the financial statements
for the period ended 30 June 2014

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Inspector-General of Taxation

The Inspector-General of Taxation (IGT) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the IGT is to improve the administration of the tax laws for the benefit of all taxpayers. The IGT is structured to meet one outcome:

‘Improved tax administration through community consultation, review, and independent advice to Government’.

Agency activities contributing toward this outcome are classified as departmental. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the agency in its own right.

The Inspector-General of Taxation Act 2003 (the IGT Act) established an independent statutory agency on 7 August 2003 to review:

  • systems established by the Australian Taxation Office (ATO) to administer the tax laws; and
  • systems established by tax laws in relation to administrative matters;

for the purpose of reporting and making recommendations to Government on how those systems could be improved.

The IGT’s departmental activities are identified under Outcome 1 by one program, Program 1.1 Inspector-General of Taxation. The IGT has no administered activities.

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

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 and notes have been prepared in accordance with:

  • Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; 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 expressed in whole dollars.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Statement of Financial Position 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 assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 11).

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 IGT has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:

  • The employee provision has been determined by reference to standard parameters provided by the Department of Finance.
  • The fair value of buildings has been taken to be the market value of similar properties or depreciated replacement value as determined by an independent valuer.
  • The make-good provision has been calculated with reference to building costs required to restore the premises to original condition as required in the lease.

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.

1.4 Changes in 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. No new accounting standards, amendments to standards and interpretations issued by the AASB prior to the sign-off date that are applicable to the current period have had a material financial impact on the agency.

Future Australian Accounting Standard requirements

Of the new standards, amendments to standards and interpretations issued by the AASB that are applicable to future periods, it is estimated that the impact of adopting the pronouncements when effective will have no material financial impact on future reporting periods, but may affect disclosures in future financial reports.

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 from Government when the Agency 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.

Other types of 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:

  • 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 entity.

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 services, which have 30 day terms, are recognised at the nominal amounts due, less any impairment allowance amount. Collectability of debts is reviewed at the end of the reporting period. Allowances 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

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 as a consequence of a restructuring of administrative arrangements.

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 designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCB) are recognised directly in contributed equity in that year.

1.8 Employee benefits

Liabilities for termination benefits due within twelve months of the end of the 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 employee benefits are measured as the 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 agency 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 be applied at the time the leave is taken, including the agency’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 estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The agency recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.

Superannuation

Staff of the agency in general are members of the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

The PSS is a defined benefit scheme 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’s administered schedules and notes.

The agency makes employer contributions to the employees’ superannuation scheme at rates determined by an actuary to be sufficient to meet the cost to the Government. The agency 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 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 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 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 Fair value measurement

The entity deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

1.12 Cash

Cash is recognised at its nominal amount.

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

1.13 Financial assets

The IGT classifies its financial assets as loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

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’. 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, 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 Statement of Comprehensive Income.

1.14 Financial liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities 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. These 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).

1.15 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position 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 recognised when settlement is greater than remote.

1.16 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 incomes 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.

1.17 Property, plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000 and computer equipment of less than $1,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the IGT where there exists an obligation to restore the property to its original condition. These costs are included in the value of the IGT’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below.

Asset class Fair value measured at
Leasehold improvements Estimated replacement cost of office fit out adjusted for remaining useful life.
Property, plant and equipment Estimated replacement cost of similar assets adjusted for remaining useful life.

Following initial recognition at cost, property plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially with the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. A Fair Value review was undertaken by the independent valuer at 30 June 2014 who confirmed that the carrying amount of non-financial assets has not materially changed since the last valuation.

Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it was reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus or deficit. Revaluation decrements for a class of assets were recognised directly through surplus or deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated 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 agency using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

  2014 2013
Property, plant and equipment 3-10 years 3-10 years
Leasehold improvements Lease term Lease term

Impairment

All assets were assessed for impairment at 30 June 2014. 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 of disposal 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 IGT were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

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

1.18 Taxation

The agency is exempt from all forms of taxation except for Fringe Benefits Tax and 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 ATO, and except for receivables and payables.

1.19 Legal compliance

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. During 2012-13, the Department of Finance received additional legal advice that indicated there could be breaches of section 83 under certain circumstances with payments for long service leave, GST and payments under determinations of the Remuneration Tribunal.

The agency has reviewed its processes and controls over payments for these items and determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the agency. The agency has conducted testing of payments and found no breaches of section 83 in respect of these items.

Note 2: Events After the Reporting Period

There was no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the agency.

Note 3: Expenses

2014 2013
  $ $
Note 3A: Employee Benefits    
Wages and salaries 1,411,968 1,306,571
Superannuation:    
Defined contribution plans 101,429 92,606
Defined benefit plans 92,559 86,832
Leave and other entitlements 223,854 150,425
Other employee expenses 6,883 9,310
Total employee benefits 1,836,693 1,645,744
Note 3B: Suppliers    
Goods and services supplied or rendered1    
Consultants and contractors 67,285 156,482
Travel 80,349 118,109
Service level agreement with Treasury 209,277 117,107
Fees — Audit, Membership and Other 64,627 41,215
Property operating expenses 19,204 20,873
Advertising and printing 20,926 41,434
Seminars and conferences 15,704 6,020
Subscriptions and periodicals 3,657 8,861
Other 47,212 74,368
Total goods and services supplied or rendered 528,241 584,469
     
Goods supplied in connection with    
Related parties 827 959
External parties 13,848 221,593
Total goods supplied 14,675 222,552
Services rendered in connection with    
Related parties 271,080 39,583
External parties 242,486 322,334
Total services rendered 513,566 361,917
Total goods and services supplied or rendered 528,241 584,469
     
Other suppliers    
Operating lease rentals    
External parties    
Minimum lease payments 301,224 289,681
Workers compensation expenses 12,776 5,291
Total other suppliers 314,000 294,972
Total suppliers 842,241 879,441
     

(a) Certain comparative figures have been reclassified and do not match what was published in the

2012-13 financial statements.

2014 2013
  $ $
Note 3C: Depreciation and amortisation    
Depreciation    
Property, plant and equipment 14,023 13,719
Total depreciation 14,023 13,719
     
Amortisation    
Leasehold improvements 27,773 60,691
Total amortisation 27,773 60,691
Total depreciation and amortisation 41,796 74,410
Note 3D: Finance costs    
Unwinding of discount 2,757 1,657
Total finance costs 2,757 1,657
Note 3E: Write-down and impairment of assets    
Asset write-downs - 245
Total write-down and impairment of assets - 245
     

Note 4: Own-Source Income

2014 2013
  $ $
Note 4A: Other gains    
Resources received free of charge 88,346 32,800
Total other gains 88,346 32,800
Note 4B: Revenue from Government    
Appropriations    
Departmental appropriations 2,626,000 2,622,000
Total revenue from Government 2,626,000 2,622,000

Note 5: Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value.

The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Note 5A: Fair value measurements        
Fair value measurements at the end of the reporting period by hierarchy for assets and liabilities in 2014
    Fair value measurements at the end of the reporting period using
  Fair value Level 1 inputs Level 2 inputs Level 3 inputs
  $ $ $ $
Non-financial assets:        
Furniture 7,491 - - 7,491
Office equipment 12,868 - - 12,868
Leasehold improvements 128,501 - - 128,501
Total non-financial assets 148,860 - - 148,860
Total fair value measurements of assets in the Statement of Financial Position 148,860 - - 148,860
Fair value measurements — highest and best use differs from current use for non-financial assets (NFAs)
All classes of non-financial assets highest and best use is the same as their current use.
Note 5B: Valuation technique and inputs for Level 2 and Level 3 fair value measurements    
  Category (Level 2 or Level 3) Fair value Valuation technique(s)1 Inputs used Range (weighted average)2
    $      
Non-financial assets          
Furniture Level 3 7,491 Cost Approach Estimated replacement cost of similar assets adjusted for remaining useful life. $35 — $500 ($161)
Office equipment Level 3 12,868 Cost Approach Estimated replacement cost of similar assets adjusted for remaining useful life. $1 — $10,795 ($2,806)
Leasehold improvements Level 3 128,501 Cost Approach Estimated replacement cost of office fit out adjusted for remaining useful life. $570 — $125,850 ($34,485)
(a) Valuations are based on advice from certified practicing valuers. There has been no change in this method from prior years.
(b) Significant unobservable inputs only.
 
Recurring and non-recurring Level 3 fair value measurements — valuation processes
IGT procured valuation services from Preston Rowe Patterson Valuers (PRP). PRP provided a written assurance that the valuation model is in compliance with AASB 13. PRP valuations are based on the most recent comprehensive valuation of IGT’s fixed assets. PRP has used the cost approach which reflects the amount that would be required currently to replace the service capacity of IGT’s fixed assets. PRP has updated the depreciated replacement cost analysis relative to current replacement cost for each asset and the expended useful life to establish an appropriate estimate of fair value as at 30 June 2014.
 
Recurring Level 3 fair value measurements — sensitivity of inputs
The fair value estimates provided at a reporting date based on level 3 inputs are sensitive to movements in replacement cost as at the reporting date, either up or down. Adopted useful life, expended useful and remaining useful life are considered to be generally stable inputs and would not be subject to sensitivity unless the Agency revised its policy with respect to the useful life of a particular asset class.
Note 5C: Reconciliation for recurring Level 3 fair value measurements      
         
Recurring Level 3 fair value measurements — reconciliation for assets      
  Non-financial assets
  Furniture Office equipment Leasehold improvements Total
  2014 2014 2014 2014
  $ $ $ $
Opening balance - - - -
Assets first recognised under AASB 13 as at 1 July 2013 18,801 15,581 154,344 188,726
Total gains/(losses) recognised in net cost of services1 (11,310) (2,713) (27,773) (41,796)
Purchases - - 1,930 1,930
Closing balance 7,491 12,868 128,501 148,860
         
Changes in unrealised gains/(losses) recognised in net cost of services - - - -

(c) These gains/(losses) are presented in the Statement of Comprehensive Income under Depreciation and Amortisation expenses.

The entities policy for determining when transfers between levels are deemed to have occurred can be found in Note 1.

Note 6: Financial Assets

2014 2013
  $ $
Note 6A: Cash and Cash Equivalents    
Cash on hand or on deposit 45,019 98,052
Total cash and cash equivalents 45,019 98,052
Note 6B: Trade and Other Receivables    
Appropriations receivable:    
For existing programs 3,367,226 3,062,098
Total appropriations receivable 3,367,226 3,062,098
     
Other receivables:    
GST receivable from the Australian Taxation Office 8,527 8,920
Total other receivables 8,527 8,920
     
Total trade and other receivables (gross) 3,375,753 3,071,018
     
Total trade and other receivables (net) 3,375,753 3,071,018
     
Receivables expected to be recovered    
No more than 12 months 3,375,753 3,071,018
Total trade and other receivables (net) 3,375,753 3,071,018
     
Trade and other receivables (gross) aged as follows    
Not overdue 3,375,753 3,071,018
Overdue by:    
0 to 30 days - -
31 to 60 days - -
61 to 90 days - -
More than 90 days - -
Total trade and other receivables (gross) 3,375,753 3,071,018
     

Credit terms for goods and services were within 30 days (2013: 30 days).

Note 7: Non-Financial Assets

2014 2013
  $ $
Note 7A: Property, plant and equipment    
Plant and equipment    
Fair value 34,382 34,382
Accumulated depreciation (14,023) -
Total plant and equipment 20,359 34,382
Note 7B: Leasehold improvements    
Leasehold improvements    
Fair value 156,274 154,344
Accumulated amortisation (27,773) -
Total leasehold improvements 128,501 154,344
     

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

No property, plant and equipment were expected to be sold or disposed of in the next 12 months.

All property, plant and equipment are at valuation as of 30 June 2013 in accordance with the agency’s revaluation policy (note 1.17). The revaluation to ‘Fair Value’ was conducted by an independent qualified valuer. A Fair Value review was undertaken by the independent valuer which confirmed that the carrying amount of non-financial assets has not materially changed since the last valuation.

Note 7C: Reconciliation of the opening and closing balances of property, plant and equipment (2014)
  Plant and equipment Leasehold improvements Total
  $ $ $
As at 1 July 2013      
Gross book value 34,382 154,344 188,726
Accumulated depreciation and impairment - - -
Total as at 1 July 2013 34,382 154,344 188,726
Additions      
By purchase - 1,930 1,930
Revaluations - - -
Depreciation expense (14,023) (27,773) (41,796)
Asset write-downs - - -
Disposals:      
Other disposals - - -
Total as at 30 June 2014 20,359 128,501 148,860
       
Total as at 30 June 2014 represented by:      
Gross book value 34,382 156,274 190,656
Accumulated depreciation and impairment (14,023) (27,773) (41,796)
Total as at 30 June 2014 20,359 128,501 148,860
       
Note 7C: Reconciliation of the opening and closing balances of property, plant and equipment (2013)
  Plant and equipment Leasehold improvements Total
  $ $ $
As at 1 July 2012      
Gross book value 63,032 161,143 224,175
Accumulated depreciation and impairment (14,543) (101,625) (116,168)
Total as at 1 July 2012 48,489 59,518 108,007
Additions      
By purchase - 16,896 16,896
Revaluations (143) 138,621 138,478
Depreciation expense (13,719) (60,691) (74,410)
Asset write-downs (245) - (245)
Disposals:      
Other disposals - - -
Total as at 30 June 2013 34,382 154,344 188,726
       
Total as at 30 June 2013 represented by:      
Gross book value 34,382 154,344 188,726
Accumulated depreciation and impairment - - -
Total as at 30 June 2013 34,382 154,344 188,726
2014 2013
  $ $
Note 7D: Other non-financial assets    
Prepayments 37,844 22,900
Total other non-financial assets 37,844 22,900
     
Other non-financial assets expected to be recovered    
No more than 12 months 37,844 22,900
Total other non-financial assets 37,844 22,900
     

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

Note 8: Payables

2014 2013
  $ $
Note 8A: Suppliers    
Trade creditors 68,259 27,434
Total suppliers 68,259 27,434
     
Suppliers expected to be settled    
No more than 12 months 68,259 27,434
More than 12 months - -
Total suppliers 68,259 27,434
     
Suppliers in connection with    
Related parties 60,000 101
External parties 8,259 27,333
Total suppliers 68,259 27,434
     

Settlement is usually made within 30 days (2013: 30 days).

Note 8B: Other payables    
Wages and salaries 45,535 33,864
Superannuation 6,090 5,009
Other 36,470 -
Total other payables 88,095 38,873
     
Other payables expected to be settled    
No more than 12 months 51,625 38,873
More than 12 months 36,470 -
Total other payables 88,095 38,873
     

Note 9: Provisions

2014 2013
  $ $
Note 9A: Employee provisions    
Leave 427,726 302,541
Total employee provisions 427,726 302,541
     
Employee provisions expected to be settled    
No more than 12 months 163,157 115,207
More than 12 months 264,569 187,334
Total employee provisions 427,726 302,541
Note 9B: Other provisions    
Provision for restoration obligations 93,418 86,931
Total other provisions 93,418 86,931
     
Other provisions expected to be settled    
More than 12 months 93,418 86,931
Total other provisions 93,418 86,931
Provision for restoration obligation    
Carrying amount 1 July 86,931 94,322
Re-statement of ‘Make Good’ 3,730 (9,047)
Unwinding of discount or change in discount rate 2,757 1,656
Closing balance 30 June 93,418 86,931
     

Note 10: Cash Flow Reconciliation

2014 2013
  $ $
Reconciliation of cash and cash equivalents as per    
Statement of Financial Position to Cash Flow Statement    
     
Cash and cash equivalents as per:    
Cash flow statement 45,019 98,052
Statement of financial position 45,019 98,052
Discrepancy - -
     
Reconciliation of net cost of services to net cash from operating activities:    
Net cost of services (2,635,141) (2,568,697)
Add revenue from Government 2,626,000 2,622,000
     
Adjustments for non-cash items    
Depreciation / amortisation 41,796 74,410
Finance costs 2,757 1,657
Net write down of non-financial assets - 245
     
Movements in assets and liabilities    
Assets    
(Increase) / decrease in net receivables (332,149) (101,797)
(Increase) / decrease in prepayments (14,944) 3,976
Liabilities    
Increase / (decrease) in employee provisions 125,185 (11,863)
Increase / (decrease) in other payables 37,154 1,235
Increase / (decrease) in supplier payables 40,825 57,655
increase / (decrease) in other provisions - (1,351)
Net cash from / (used by) operating activities (108,517) 77,469
     

Note 11: Contingent Assets and Liabilities

There are no unquantifiable or significant remote contingencies.

Note 12: Senior Executive Remuneration

     
Note 12A: Senior executive remuneration expense for the reporting period
  2014 2013
  $ $
Short-term employee benefits    
Salary 784,146 634,294
Allowances 1,214 -
Total short-term employee benefits 785,360 634,294
     
Post-employment benefits    
Superannuation 86,579 54,767
Total post-employment benefits 86,579 54,767
     
Other long-term benefits    
Annual leave accrued 67,200 50,811
Long-service leave 30,778 21,870
Total other long-term benefits 97,978 72,681
     
Total senior executive remuneration expenses 969,917 761,742
     

(d) Note 12A was prepared on an accruals basis.

(e) Note 12A excludes acting arrangements and part-year service where total remuneration expensed as a senior executive was less than $195,000.

Note 12: Senior Executive Remuneration (continued)

             
Note 12B: Average annual reportable remuneration paid to substantive senior executives during the reporting period
 
Average annual reportable remuneration paid to substantive senior executives in 2014
  Substantive senior executives Reportable salary2 Contributed superannuation3 Reportable allowances4 Bonus paid5 Total
Average annual reportable remuneration1 No. $ $ $ $ $
Total remuneration (including part-time arrangements):        
$195,000 to $224,999 1 173,302 28,526 210 - 202,038
$285,000 to $314,999 1 270,711 40,313 - - 311,024
$405,000 to $434,999 1 390,350 17,740 156 - 408,246
Total number of substantive senior executives 3          
Average annual reportable remuneration paid to substantive senior executives in 2013
  Substantive senior executives Reportable salary2 Contributed superannuation3 Reportable allowances4 Bonus paid5 Total
Average annual reportable remuneration1 No. $ $ $ $ $
Total remuneration (including part-time arrangements):        
$255,000 to $284,999 1 248,065 36,874 - - 284,939
$375,000 to $404,999 1 368,808 16,451 - - 385,259
Total number of substantive senior executives 2          

(f) This table reports substantive senior executives who received remuneration during the reporting period. Each row is an averaged figure based on headcount for individuals in the band.

(g) ‘Reportable salary’ includes the following:

a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);

b) reportable fringe benefits (at the net amount prior to ‘grossing up’ for tax purposes);

c) exempt foreign employment income; and

d) salary sacrificed benefits.

(h) The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits to substantive senior executives in that reportable remuneration band during the reporting period.

(i) ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individual’s payment summaries.

(j) ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band.

(k) $88,808 was reported under ‘reportable allowances’ in the 2012-13 Financial Statements. This is reported under ‘reportable salary’ in the table above.

Note 12: Senior Executive Remuneration (continued)

             
Note 12C: Average annual reportable remuneration paid to other highly paid staff during the reporting period
 
Average annual reportable remuneration paid to other highly paid staff in 2014
  Other highly paid staff Reportable salary2 Contributed superannuation3 Reportable allowances4 Bonus paid5 Total
Average annual reportable remuneration1 No. $ $ $ $ $
Total remuneration (including part time arrangements):    
  - - - - - -
Total number of other highly paid staff -          
Average annual reportable remuneration paid to other highly paid staff in 2013
  Other highly paid staff Reportable salary2 Contributed superannuation3 Reportable allowances4 Bonus paid5 Total
Average annual reportable remuneration1 No. $ $ $ $ $
Total remuneration (including part time arrangements):    
  - - - - - -
Total number of other highly paid staff -          

(l) This table reports staff:

a) who were employed by the entity during the reporting period;

b) whose reportable remuneration was $195,000 or more for the financial period; and

c) were not required to be disclosed in Table B.

Each row is an averaged figure based on headcount for individuals in the band.

(m) ‘Reportable salary’ includes the following:

a) gross payments (less any bonuses paid, which are separated out and disclosed in the ‘bonus paid’ column);

b) reportable fringe benefits (at the net amount prior to ‘grossing up’ for tax purposes);

c) reportable employer superannuation contributions; and

d) exempt foreign employment income.

(n) The ‘contributed superannuation’ amount is the average cost to the entity for the provision of superannuation benefits to other highly paid staff in that reportable remuneration band during the reporting period.

(o) ‘Reportable allowances’ are the average actual allowances paid as per the ‘total allowances’ line on individuals’ payment summaries.

(p) ‘Bonus paid’ represents average actual bonuses paid during the reporting period in that reportable remuneration band.

Note 13: Remuneration of Auditors

     
2014 2013
  $ $
Financial statement audit services were provided free of charge to  
the Inspector-General of Taxation by the Australian National Audit Office (ANAO).    
     
The fair value of the services provided was:    
Financial statement audit services 55,000 32,800
Total 55,000 32,800

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

Note 14: Financial Instruments

2014 2013
  $ $
Note 14A: Categories of Financial Instruments    
Financial Assets    
Loans and receivables    
Cash and cash equivalents 45,019 98,052
Total loans and receivables 45,019 98,052
Total financial assets 45,019 98,052
     
Financial Liabilities    
Liabilities at amortised cost    
Payables — suppliers 68,259 27,434
Total liabilities at amortised cost 68,259 27,434
Total financial liabilities 68,259 27,434
     

There was no interest income from financial assets not at fair value through profit and loss in the year ending 2014 (2013: Nil).

Note 14B: Fair Value of Financial Instruments    
    Carrying Fair Carrying Fair
    amount value amount value
    2014 2014 2013 2013
  Notes $ $ $ $
Financial Assets          
Cash and cash equivalents 6A 45,019 45,019 98,052 98,052
Total   45,019 45,019 98,052 98,052
           
Financial Liabilities          
Suppliers payable 8A 68,259 68,259 27,434 27,434
Total   68,259 68,259 27,434 27,434
           
Note 14C: Credit risk          
The agency is exposed to minimal credit risk as financial assets only include cash and trade receivables. The maximum exposure to credit risk is the risk that arises from potential default of a debtor. This amount is equal to the total amount of trade receivables (2014: $0 and 2013: $0). The agency has assessed the risk of default on payment and has made no allocations to doubtful debts in 2014 (2013: $0).
 
The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements
        2014 2013
        $ $
Financial assets carried at amount not best representing maximum exposure to credit risk    
Cash and cash equivalents       45,019 98,052
Total financial assets carried at amount not best representing maximum exposure to credit risk 45,019 98,052
           
Financial liabilities carried at amount not best representing maximum exposure to credit risk    
Supplier payables       68,259 27,434
Total financial liabilities carried at amount not best representing maximum exposure to credit risk 68,259 27,434
The agency holds no collateral to mitigate against the credit risk.
Credit quality of financial instruments not past due or individually determined
as impaired          
    Not past Not past Past due Past due
    due nor due nor or or
    impaired impaired impaired impaired
    2014 2013 2014 2013
    $ $ $ $
Loans and receivables          
Cash and cash equivalents   45,019 98,052 - -
Total   45,019 98,052 - -
           
             
Note 14D: Liquidity risk            
The agency’s financial liabilities are payables. 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 the appropriation funding mechanisms available to the agency and internal policies and procedures put in place to ensure there are appropriate resources to meet its financial obligations.
 
The agency is appropriated funding from the Australian Government. The agency manages its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the agency has policies in place to ensure timely payments are made when due and has no past experience of default.
             
The agency had no derivative financial liabilities in either 2014 or 2013.
             
Maturities for non-derivative financial liabilities 2014        
  On Within 1 1 to 2 2 to 5 > 5  
  demand year years years years Total
  $ $ $ $ $ $
Liabilities at amortised cost          
Payables — suppliers - 68,259 - - - 68,259
Total - 68,259 - - - 68,259
             
             
Maturities for non-derivative financial liabilities 2013        
  On Within 1 1 to 2 2 to 5 > 5  
  demand year years years years Total
  $ $ $ $ $ $
Liabilities at amortised cost          
Payables — suppliers - 27,434 - - - 27,434
Total - 27,434 - - - 27,434
             
Note 14E: Market risk      
IGT holds basic financial instruments that do not expose the agency to certain market risks. The agency is not exposed to currency risk, other price risk, or interest rate risk.
 

Note 15: Financial Assets Reconciliation

  2014 2013
  Notes $ $
       
Total financial assets as per statement of financial position   3,420,772 3,169,070
Less: non-financial instrument components      
Appropriation receivables 6B 3,367,226 3,062,098
Other receivables 6B 8,527 8,920
Total non-financial instrument components   3,375,753 3,071,018
       
Total financial assets as per financial instruments note 14A 45,019 98,052
       

Note 16: Appropriations

               
Note 16A: Annual appropriations (‘recoverable GST exclusive’)        
         
Annual appropriations for 2014            
  Appropriation Act FMA Act      
  Annual Appropriation Appropriations reduceda Section 30 Section 31 Total appropriation Appropriation applied in 2014 (current and prior years) Variance
  $ $ $ $ $ $ $
Departmental              
Ordinary annual services 2,656,000 - - 55,110 2,711,110 (2,516,429) 194,681
Total departmental 2,656,000 - - 55,110 2,711,110 (2,516,429) 194,681

Notes:

a. Appropriation Acts (Nos. 1, 3) 2013-14: sections 10, 11, 12 and 15. 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.

               
Annual appropriations for 2013              
  Appropriation Act FMA Act      
  Annual Appropriation Appropriations reduced Section 30 Section 31a Total appropriation Appropriation applied in 2013 (current and prior years) Variance
  $ $ $ $ $ $ $
Departmental              
Ordinary annual services 2,664,000 - - 82,632 2,746,632 (2,504,360) 242,272
Total departmental 2,664,000 - - 82,632 2,746,632 (2,504,360) 242,272

Notes:

a. Section 31 appropriation was incorrectly recorded against section 30 in the 2012-13 Financial Statements.

                 
Note 16B: Departmental capital budgets (‘recoverable GST exclusive’)        
  2013-14 Capital Budget Appropriations Capital Budget Appropriations applied in 2014 (current and prior years) Variance
  Appropriation Act FMA Act Total Capital Budget Appropriations Payments for non-financial assets3 Payments for other purposes Total payments
  Annual Capital Budget Appropriations reduced2 Section 32
  $ $ $ $ $ $ $ $
Departmental                
Ordinary annual services                
Capital Budget1 30,000 - - 30,000 1,930 55,484 57,414 (27,414)

Notes:

(a) Departmental Capital Budgets are appropriated through Appropriation Acts (No. 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts. For more information on ordinary annual services appropriation, please see Table A: Annual appropriations.

(b) Appropriations reduced under Appropriation Acts (No. 1, 3, 5) 2013-14: sections 10, 11, 12 and 15 or via a determination by the Finance Minister.

(c) Payments made on non-financial assets include purchase of assets, expenditure on assets which has been capitalised, and costs incurred to make good an asset to its original condition.

2012-13 Capital Budget Appropriations Capital Budget Appropriations applied in 2013 (current and prior years) Variance
  Appropriation Act FMA Act Total Capital Budget Appropriations Payments for non-financial assets3 Payments for other purposes Total payments
  Annual Capital Budget Appropriations reduced2 Section 32
  $ $ $ $ $ $ $ $
Departmental                
Ordinary annual services                
Capital Budget1 30,000 - - 30,000 16,896 - 16,896 13,104
     
Note 16C: Unspent annual appropriations
  2014 2013
$ $
Departmental    
Appropriation Act (No. 1) 2010-11 - 175,937
Appropriation Act (No. 1) 2011-12 - 1,701,933
Appropriation Act (No. 1) 2012-131 719,226 1,282,278
Appropriation Act (No. 1) 2013-141 2,692,019 -
Total departmental 3,411,245 3,160,148
     

(d) Cash held amounts (2014: $45,019, 2013: $98,052) are included in Appropriation Act (No. 1) for the relevant year. The comparative has been adjusted to reflect the cash held amount at 30 June 2013.

Note 17: Compensation and Debt Relief

2014 2013
  $ $
Departmental    
No ‘Act of Grace’ expenses were expended during the reporting period (2013: No expenses). - -
     
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2013: No waiver). - -
     
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2013: No payments). - -
     
No ex-gratia payments were provided for during the reporting period (2013: No payments). - -
     
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2013: No payments). - -
     

Note 18: Reporting of Outcomes

     
Note 18A: Net Cost of Outcome Delivery    
  Outcome 1
  2014 2013
  $ $
Departmental    
Expenses 2,723,487 2,601,497
Gains 88,346 32,800
Net cost/(contribution) of outcome delivery 2,635,141 2,568,697

Outcome 1 is described in Note 1.1. Net costs shown include intra-government costs that are eliminated in calculating the actual Budget outcome.

   
Note 18B: Major Classes of Departmental Expense Income Assets and Liabilities by Outcome
  Outcome 1
  2014 2013
  $ $
Expenses    
Employee benefits 1,836,693 1,645,744
Suppliers 842,241 879,441
Finance costs 2,757 1,657
Depreciation and amortisation 41,796 74,410
Write down and impairment of assets - 245
Total expenses 2,723,487 2,601,497
     
Income    
Income from Government 2,626,000 2,622,000
Gains 88,346 32,800
Total revenues 2,714,346 2,654,800
     
Assets    
Financial assets    
Cash and cash equivalents 45,019 98,052
Receivables 3,375,753 3,071,018
Non-financial assets    
Property, plant and equipment 20,359 34,382
Leasehold improvements 128,501 154,344
Other non-financial assets 37,844 22,900
Total assets 3,607,476 3,380,696
     
Liabilities    
Payables 156,354 66,307
Provisions 521,144 389,472
Total liabilities 677,498 455,779

Note 19: Net Cash Appropriation Arrangements

2014 2013
  $ $
Total comprehensive income (loss) less depreciation/amortisation expenses previously funded through revenue appropriations and other comprehensive income1 28,925 266,191
Plus: depreciation/amortisation expenses previously funded through revenue appropriation (41,796) (74,410)
Total comprehensive income (loss) — as per the Statement of Comprehensive Income (12,871) 191,781
     

(a) From 2010-11, the Government introduced net cash appropriation arrangements, where revenue appropriations for depreciation/amortisation expenses ceased. Entities now receive a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.