Financial Statements
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
1 Departmental Mission
The Ministry’s mission is to enhance the lifestyle of Western Australians through their participation and achievement in sport and recreation.
The Ministry is predominantly funded by Parliamentary appropriations. A net appropriation
determination was established with effect from 28 June 1998, which allowed the Ministry to retain all moneys received for the provision of services. The Ministry provides minimal services on a fee-for-service basis.
The financial statements encompass all funds through which the Ministry controls resources to carry on its functions.
In the process of reporting on the Ministry as a single entity, all intra entity transactions and balances have been eliminated.
2 Significant Accounting Policies General Statement
The financial statements constitute a general purpose financial report which has been prepared in accordance with Australian Accounting Standards and UIG Consensus Views as applied by the Treasurer’s Instructions. Several of these are modified by the Treasurer’s Instructions to vary application, disclosure, format and wording. The Financial Administration and Audit Act and the Treasurer’s Instructions are legislative provisions governing preparation of financial statements and take precedence over Australian Accounting Standards and UIG Consensus Views. The modifications are intended to fulfil the requirements of general application to the public sector, together with the need for greater disclosure and also to satisfy accountability requirements.
If any such modification has a material or significant financial effect upon the reported results, details of that modification and where practicable the resulting financial effect are disclosed in individual notes to these financial statements.
Basis of Accounting
The financial statements have been prepared in accordance with Australian Accounting Standard AAS 29.
The statements have been prepared on the accrual basis of accounting using the historical cost convention, with the exception of some classes of non current assets which have been expensed.
Additions to non-current physical assets are stated at cost.
(a) Appropriations
Appropriations in the nature of revenue, whether recurrent or capital , are recognised as revenues in the period in which the Department gains control of the appropriated funds.
The Department gains control of appropriated funds at the time those funds are deposited into the Department’s bank account.
(b) Net appropriation Determination
Pursuant to section 23A of the Financial Administration and Audit Act, the net appropriation determination by the Treasurer provides for retention of the following moneys received by the Department:
Proceeds from fees and charges; and Proceeds from training courses provided.
Retained revenues may only be applied to the outputs specified in the 1999–2000 Budget Statements.
Details of retained revenues are disclosed in the Summary of Consolidated Fund
Appropriations and Revenue Estimates. Non-current assets have been brought to account at historical cost.
(c) Grants and Revenue
Grants, donations and gifts are recognised as revenue when the Ministry obtains control over the asset.
Control is normally obtained upon their receipt.
(d) Depreciation of Non-Current Assets
All non-current assets having a useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their future economic benefits.
Depreciation is provided for on a straight line basis, using rates which are reviewed annually.
Useful lives for each class of assets are:
Furniture and Fittings 5 years Equipment and Appliances 3 1/3 years
Computer Hardware 3 1/3 years
Developed Computer Software 3 1/3 years Motor vehicles used by the Ministry are leased.
(e) Inventories
Inventories are valued at the lower of cost or realisable value as per AAS2.
Bookstocks on hand as at the end of the financial year are shown at average cost.
Other merchandise is valued at historical cost.
(f) Employee Entitlements
Annual and Long Service Leave
Annual leave entitlements are calculated at current remuneration rates.
A liability for long service leave is recognised after an officer has completed four years of service and is calculated at current remuneration rates. An actuarial assessment carried out 30 June 1998 determined the liability reported using this method would not be materially different from that reported. This method of measurement of the liability is consistent with
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
Superannuation
Staff may contribute to the Superannuation and Family Benefits Act Scheme,
a defined benefits pension closed to new members, or to the Gold State Superannuation Scheme, a defined benefit and lump sum scheme now also closed to new members. All staff who do not contribute to either of these schemes become non contributory members of the West State Superannuation Scheme, an accumulation fund complying with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992.
The superannuation expense comprises the following elements:
(i) change in the unfunded employer’s liability in respect of current employees who are members of the Superannuation and Family Benefits Act Scheme and current employees who accrued a benefit on transfer from that scheme to the Gold State Superannuation Scheme;
and
(ii) notional employer contributions which would have been paid to the Gold State Superannuation Scheme and West State Superannuation Scheme if the Ministry had made concurrent employer contributions to those schemes.
(The superannuation expense does not include payment to retirees as this does not constitute part of the cost of services provided by the Ministry in the current year.)
This method of measurement of the liability is consistent with the requirements of Australian Accounting Standard AAS 30 “Accounting for Employee Entitlements”.
(g) Leased Assets
The Ministry has entered into a number of operating lease arrangements for the rent of office accommodation and vehicles where the lessor effectively retains all risks and benefits incident to ownership of the items held under the lease. Equal instalments of the lease payments are charged to the operating statement over the lease term as this is representative of benefits to be derived from the leased property.
(h) Accounts Receivable
Accounts receivable are recognised at the amounts receivable as they are due for settlement no more than 30 days from the date of recognition.
Collectability of accounts receivable is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off. A provision for doubtful debts is raised when some doubt as to collection exists and any event where the debt is more than 60 days overdue.
(i) Accounts Payable
Accounts payable, including accruals not yet billed, are recognised when the Ministry becomes obilgated to make future payments as a result of a purchase of goods or services. Accounts payable are generally settled within normal trading terms of 30 days.
Generally grant expenditure incurred by way of grant funding is recognised as a liability at the date of approval by the Minister where the approval is unconditional.
(j) Accrued Salaries
Accrued salaries suspense account consists of amounts paid annually into a suspense account over a period of 10 financial years to largely meet the additional cash outflow in each eleventh year when 27 pay days occur in that year instead of the normal 26. No interest is received on
Accrued salaries represent the amount due to staff but unpaid at the end of the financial year, as the end of the last pay period for that financial year does not coincide with the end of financial year. Accrued salaries are settled within a few days of financial year end. The Ministry considers the carrying amount of accrued salaries to be equivalent to their net fair value.
(k) Resources Received Free of Charge
Resources received free of charge or for nominal value which can be reliably measured are recognised as revenues and as assets or expenses as appropriate at fair value.
3 Outputs of the Ministry
Information about the Ministry’s output and the expenses and revenues which are reliably attributable to those outputs is set out in the Outputs Schedule.
The Ministry had 10 outputs for 1999/2000:
(i) Sport and recreation industry development policy and advice
The provision of policy and advice on the development of the sport and recreation industry, including the development of a strategic framework by the Western Australian Sport and Recreation Council.
(ii) Financial support for management improvement in sport associations
The provision of financial support for management in sport associations, from funding available from the Sports Lotteries Account.
(iii) Management improvement consultancy and advice to sport and recreation organisations Consultancy and advice is provided to sport and recreation organisations with the intent of increasing their viability on a more competitive future.
(iv) Financial support for organisations encouraging participation in sport and recreation
The provision of financial support for initiatives, by sporting clubs and other organisations, with the specific outcome of enabling greater participation.
(v) Policy and advice to increase participation in sport and recreation
The development of policy and advice on a range of issues which can impact on the community’s ability to participate in sport and recreation activities.
(vi) Community information services to encourage participation in sport and recreation
The provision of information to the community is an impor tant component of increasing the understanding of the physical and social benefits of participating in sport and recreation, thus encouraging the community to seek out participation opportunities.
(vii) Financial support for sport organisations developing high performance athletes The provision of operational funding to the Western Australian Institute of Sport.
(viii) Skill development through education and training of sport and recreation deliverers
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
(ix) Financial support for sport and recreation facilities
The provision of financial support to construct or upgrade spor t and recreation facilities.
(x) Sport and recreation facilities consultancy and advice
Consultancy and advice is provided to sport and recreation organisations with the intent of increasing the viability of their facilities over the longer term.
The Ministry has revised the outputs from previous years from 7 to 10 outputs. Expenses and revenues for comparative years have been restated in line with the current outputs.
1999/2000 1998/1999
$’000 $’000
4 Salaries
Salaries 4,583 4,168
Superannuation – (a) 457 506
Other staffing costs 462 444
Annual leave 90 43
Long service leave 122 (4)
5,714 5,157
(a) Represents the notional superannuation liability amount as advised by the Government
Employees Superannuation Board.
The employer’s portion of liability for superannuation charges is assumed by the Treasurer. Refer note 13.
5 Supplies and Services
Consultants and contractors 1,101 658
Materials 409 344
Repairs and maintenance 96 111
Motor vehicles 240 197
Other 269 255
Lease rentals 520 451
Cleaning 45 47
565 498
1999/2000 1998/1999
$’000 $’000
8 Sport and Recreation Participation and Development Grants
Community Sporting and Recreational Facilities Fund 19,851 10,744
Sports financial grants 2,976 1,619
Sports Lotteries Account 9,988 8,674
32,815 21,037
9 Depreciation
Furniture and fittings 26 30
Computer equipment 159 123
Total 185 153
10 Net (Profit)/Loss on Disposal of Non-Current Assets Profit on Sale of Non-Current Assets
Computer equipment (2) 0
Gross proceeds on disposal 2 0
Loss on Sale of Non-Current Assets
Computer equipment 9 (9)
Gross proceeds on disposal 8 0
Net Loss 7 9
11 User Fees and Charges
Alcoa Sponsorship Fund Trust Account 30 46
Sports Betting Commission 40 30
Riotinto 0 61
Education WA 0 20
Healthway 205 150
ATSIC – Aboriginal Young People’s Sport and Recreation 335 522
Australian Sports Commission 335 335
945 1,164
12 Other Operating Revenues
Other revenues 580 74
Donated assets 9 0
589 74
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
1999/2000 1998/1999
$’000 $’000
13 Resources (to) / from Government Appropriation revenue received during the year :
Recurrent 8,411 6,214
Capital 1,350 150
9,761 6,364
The following liabilities have been assumed by the Treasurer during the year
– superannuation 457 506
Resources received free of charge
Determined on the basis of the following estimates provided by agencies:
Administration expenses 29 43
Accommodation expenses 6 6
35 49
Resources received free of charge has been determined
on the basis of the following estimates provided by other agencies Office of the Auditor General
– fee for audit of accounts: 25 25
Contract and Management Services
– Contract and other services: 0 14
Department of Land Administration
– Land information: 1 1
Crown Solicitors Office 2 0
Government Property Office
– Proper ty management services: 6 6
Education Department of WA 1 0
Treasury
– Banking services: 0 3
Total Resources Received Free of Charge 35 49
14 Cash Resources
Operating account 787 833
Accrued salaries suspense 105 79
Cash on hand 10 10
902 922
Restricted Cash
Represents cash resources the uses of which are restricted, wholly or partially, by regulations or other externally imposed requirements.
Sports Lotteries Account 1,787 1,480
Community Sporting and Recreation Facilities Fund 8,614 11,141
Institute of Sport/Alcoa of Australia Account 0 4
1999/2000 1998/1999
$’000 $’000
15 Accounts Receivable Current Receivables:
Accounts receivable for goods and services supplied 26 0
Less: Provision for doubtful debts 0
Net accounts receivable 26 0
Accrued income 970 894
Input tax credits claimable 42
1,038 894
16 Inventories
Saleable publications and merchandise 15 5
Inventory is valued at the lower of cost and net realisable value
17 Other Current Assets
Prepayments 0 798
18 Property, Plant and Equipment Plant, furniture and general equipment
Cost 254 188
Accumulated depreciation (171) (148)
Written down value 83 40
Computer equipment
Cost 911 773
Accumulated depreciation (526) (469)
Written down value 385 304
Major items of software
At cost 50 11
Accumulated depreciation (12) (7)
Written down value 38 4
506 348
19 Accounts Payable
Sports Lotteries Grants 1,600 690
Community Sporting and Recreation Facilities Fund 9,645 35
Employee related expenses 13 154
Total operating 11,258 879
Capital Expenditure 0 134
1999/2000 1998/1999
$’000 $’000
20 Provisions Current Liabilities
(a) Employee Entitlements
Annual leave 359 286
Long service leave 281 216
640 502
Non Current Liabilities (b) Employee Entitlements
Long service leave 403 369
403 369
The aggregate employee entitlement liability is recognised and included in the financial statements as follows:
Provision for employee entitlements:
Current 640 502
Non-current 403 369
1,043 871
21 Accrued Expenses Other Current Liabilities
Supplies and services 162 0
Accrued salary for the 6 working days from 23 June to 30 June 2000 120 62 (1998/99 – 4 working days)
282 62
22 Equity
Accumulated funds at start of year 13,646 6,370
Net change in assets current year (13,367) 7,276
Accumulated funds at end of year 279 13,646
23 Resources Provided Free of Charge Corporate support
During the year resources were provided to the Recreation Camps and Reserves Board free of charge for functions outside the normal
operations of the Ministry 236 184
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
1999/2000 1998/1999
$’000 $’000
24 Commitments for Expenditure (a) Operating Lease Commitments
The Ministry had the following obligations under non cancellable operating leases.
Obligations under non cancellable operating leases are not recognised as liabilities.
Rent
Payable no later than one year 337 178
Payable later than one year and not later than five years 125 392
Payable later than five years 0 496
Motor Vehicles
Payable no later than one year 83 157
Payable later than one year and not later than five years 21 41
Payable later than five years 0 0
Total Non Cancellable Operating Lease Commitments 566 1,264
(b) Grants committed but not reflected in the financial statements
Payable no later than one year 12,193 18,276
Payable later than one year and not later than five years 3,139 5,614
Payable later than five years 0 0
15,332 23,890
Total Future Commitments 15,898 25,154
Grant committments are funded from future years revenue and are disclosed this year as a result of changes to policies introduced.
25 Notes to the Statement of Cash Flows
Net cost of services (40,133) 26,266
Non cash items
Gain/(loss) on disposal of non-current assets 7 9
Depreciation/amortisation 185 153
Non cash opening balances & fixed asset adjustments 156 (134)
Resources received free of charge 44 49
Notional superannuation (liability assumed by the Treasurer) 457 506 (Increase)/decrease in assets:
Receivables (101) 53
Inventories (10) 12
Prepayments 798 (787)
Increase/(decrease) in liabilities:
Accounts payable 10,245 882
Income in advance 0 (200)
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
1999/2000 1998/1999
$’000 $’000
26 Reconciliation of Cash
For the purposes of the Statement of Cash Flows, cash includes cash on hand and in banks and amounts in suspense.
Cash at the end of the financial year, as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows:
Cash on Hand and other amounts in suspense 787 833
Funds held at Treasury: 105 79
Cash advance 10 10
Restricted cash 10,401 12,625
Total cash (as per Statement of Financial Position) 11,303 13,547
27 Remuneration of Accountable Authority and Senior Officers
The number of Senior Officers whose total fees, salaries and other benefits received or due and receivable for the financial year, falls within the following bands:
No. No.
The total remuneration of senior officers is: 507 651
28 Retirement Benefits of Senior Officers
The total retirement benefits paid or payable in respect
of senior officers 54 71
In respect of members of the Accountable Authority, the following amounts were paid or became payable for the financial year :
Notional contributions to Gold State Superannuation Scheme 54 71
1999/2000 1998/1999
$’000 $’000
29 Remuneration of Auditor
The total fees paid or due and payable to the Auditor General for the financial year, is as follows:
Fees for audit services 25 25
30 Events Occurring After Reporting Date
The Ministry is not aware of any matters or circumstances that have arisen since the end of the financial year to the date of this report which has significantly affected or may significantly affect the activities of the Ministry, the results of those activities or the state of affairs of the Ministry in the ensuing or any subsequent years.
31 Explanatory Statements
The Summary of Consolidated Fund Appropriations and Revenue Estimates discloses appropriations and other statutes expenditure estimates, the actual expenditure made and revenue estimates and payments into the Consolidated Fund, all on a cash basis.
The following explanations are provided in accordance with Treasurers Instruction 945. Significant variations are considered to be those greater than 10%.
Actual Estimate (a) Significant variations where Actual Expenditures exceeded
or were less than an expenditure item or exceeded or were less than an other statutes estimate for the financial year.
Expenditure decreased due to timing variations in grant allocations.
A number of CSRFF grants were brought forward in 1998/99 from 1999/2000 funds. In 1999/2000, a number of recipients deferred
receipt of funds due to project delays. 28,221 38,855
(b) Significant variations where actual expenditures exceeded or were less than estimates for the financial year
Financial support for organisations 4,227 5,066
Community information services to encourage participation 1,174 1,153
Skill development through education 1,632 1,361
Financial support for sport and recreation facilities 14,297 23,204 There was a significant decrease in CSRFF expenditure due to
delays in the timing of completion of various projects. Variations in other output expenses reflect the continued responsiveness of the Ministry to changing community needs.
NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 2000
1999/2000 1998/1999
$’000 $’000
32 Financial Instruments (a) Interest rate exposure
The Ministry’s exposure to interest rate risk and the effective interest rates on financial instruments are:
Non Interest Non Interest
Bearing Bearing
Financial Assets
Cash 11,303 13,547
Accounts receivable 1,038 894
Total financial assets 12,341 14,441
Financial Liabilities
Accounts payable 11,258 1,013
Accrued salaries 282 62
Employee entitlements 1,043 871
Total financial liabilities 12,583 1,946
(b) Credit Risk Exposure
Amounts owing by other government agencies are guaranteed and therefore no credit risk exists in respect of thoses amounts.
In respect of other financial assets the carrying amount
represents the maximum exposure to credit risk to those assets.
(c) Net Fair Values
The carrying amount of financial assets and financial liabilities recorded in the financial statements are not materially different from their net fair values, determined in accordance with the accounting policies disclosed in note 2 to the financial statements.
33 Statement of Trust Account Movements (Refer to note 14) COMMUNITY SPORTING AND RECREATION FACILITIES FUND
Opening Balance at 1 July 11,140,690 3,881,777
Add:
Grant receipts by State Government
through the Consolidated Fund 7,750,000 18,000,000
Subtotal 18,890,690 21,881,777
Less:
Payments of grants to local government authorities and
to various sporting organisations and recreation clubs 10,276,644 10,741,087
Closing Balance as at 30 June 8,614,046 11,140,690
(i) The purpose of the account is to hold monies appropriated for the purpose of making grants for the development of public spor ting and recreation facilities, and for the management and administration of those grants.
(ii) The balance of funds are held in the Ministry’s Commonwealth Bank Operating Account.
1999/2000 1998/1999
$’000 $’000
SPORTS LOTTERIES ACCOUNT
Opening Balance at 1 July 1,480,571 1,740,218
Add:
Grant receipts by State Government
through the Consolidated Fund 8,684,970 8,474,854
Refund of Grants 0 2,826
Subtotal 10,165,541 10,217,898
Less:
Payments to various sporting organisations 8,378,902 8,737,327
Closing Balance as at 30 June 1,786,639 1,480,571
(i) The purpose of the Sports Lotteries Account is to hold funds received by the Ministry of Sport and Recreation from the Lotteries Commission pursuant to Section 22(2)(c) of the
(i) The purpose of the Sports Lotteries Account is to hold funds received by the Ministry of Sport and Recreation from the Lotteries Commission pursuant to Section 22(2)(c) of the