F2 Financial Statements

Audit Office Letter

Financial Statements
For the Year Ended
30 June 2014
Education and Training Directorate

Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2014
Statement of Responsibility

In my opinion, the financial statements are in agreement with the Directorate's accounts and records and fairly reflect the financial operations of the Directorate for the year ended 30 June 2014 and the financial position of the Directorate on that date.

Diane Joseph

Director-General

Education and Training Directorate

8 September 2014

Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2014
Statement by the Chief Finance Officer

In my opinion, the financial statements have been prepared in accordance with generally accepted accounting principles, and are in agreement with the Directorate's accounts and records and fairly reflect the financial operations of the Directorate for the year ended 30 June 2014 and the financial position of the Directorate on that date.

Sushila Sharma

A/g Chief Finance Officer

8 September 2014

Education and Training Directorate
Controlled Financial Statements
For The Year Ended
30 June 2014

Education and Training Directorate
Operating Statement
For the Year Ended 30 June 2014

Income Revenue	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Government Payment for Outputs	4	576,019	589,429	559,045
User Charges – ACT Government	5	362	415	409
User Charges – Non-ACT Government	5	17,061	15,528	15,628
Interest	6	1,546	1,350	1,161
Distribution from Investments with theTerritory Banking Account	7	102	118	121
Resources Received Free of Charge	8	535	385	313
Other Revenue	9	21,119	20,033	20,304
Total Revenue		616,744	627,258	596,981

Gains	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Gains on Investments	10	15	-	-
Total Gains		15	-	-

Total Income	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Income		616,759	627,258	596,981

Expenses	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Employee Expenses	12	415,426	406,210	385,940
Superannuation Expenses	13	61,266	60,219	58,043
Supplies and Services	14	64,886	69,324	61,347
Depreciation and Amortisation	15	65,031	68,589	65,323
Grants and Purchased Services	16	22,010	30,949	26,136
Borrowing Costs	17	8	12	7
Other Expenses	18	62,714	62,959	60,138
Total Expenses		691,341	698,262	656,934

Operating (Deficit)	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Operating (Deficit)		(74,582)	(71,004)	(59,953)

Other Comprehensive Income	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
(Decrease)/Increase in the Asset Revaluation Surplus		(145,970)	-	402
Total Other Comprehensive (Deficit)/Income		(145,970)	-	402

Total Comprehensive (Deficit)	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Comprehensive (Deficit)		(220,552)	(71,004)	(59,551)

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

Education and Training Directorate
Balance Sheet
As at 30 June 2014

Current Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Cash and Cash Equivalents	21	70,223	50,967	63,938
Receivables	22	4,308	4,603	6,736
Investments	23	259	259	260
Other Assets	27	1,045	2,648	2,098
Total Current Assets		75,835	58,477	73,032

Non-Current Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Investments	23	1,846	1,832	1,831
Property, Plant and Equipment	24	1,834,014	2,005,239	1,964,954
Intangible Assets	25	758	123	895
Capital Works in Progress	26	16,238	10,350	17,622
Total Non-Current Assets		1,852,856	2,017,544	1,985,302

Total Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Assets		1,928,691	2,076,021	2,058,334

Current Liabilities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Payables	28	8,452	8,637	5,443
Finance Leases	29	75	50	44
Employee Benefits	30	132,396	118,726	116,715
Other Liabilities	31	5,706	3,853	4,171
Total Current Liabilities		146,629	131,266	126,373

Non-Current Liabilities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Finance Leases	29	71	5	60
Employee Benefits	30	12,595	11,742	11,878
Other Liabilities	31	2,589	58	73
Total Non-Current Liabilities		15,255	11,805	12,011

Total Liabilities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Liabilities		161,884	143,071	138,384

Net Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Assets		1,766,807	1,932,950	1,919,950

Equity	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Accumulated Funds		900,172	920,747	907,345
Asset Revaluation Surplus	32	866,635	1,012,203	1,012,605
Total Equity		1,766,807	1,932,950	1,919,950

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

Education and Training Directorate
Statement of Changes in Equity
For the Year Ended 30 June 2014

Balance at 1 July 2013	Note No.	Accumulated Funds Actual 2014 $'000	Asset Revaluation Surplus Actual 2014 $'000	Total Equity Actual 2014 $'000	Original Budget 2014 $'000
Balance at 1 July 2013		907,345	1,012,605	1,919,950	1,923,832

Comprehensive Income	Note No.	Accumulated Funds Actual 2014 $'000	Asset Revaluation Surplus Actual 2014 $'000	Total Equity Actual 2014 $'000	Original Budget 2014 $'000
Operating (Deficit)		(74,582)	-	(74,582)	(71,004)
(Decrease) in the Asset Revaluation Surplus	32	-	(145,970)	(145,970)	-
Total Comprehensive (Deficit)		(74,582)	(145,970)	(220,552)	(71,004)

Transactions Involving Owners Affecting Accumulated Funds	Note No.	Accumulated Funds Actual 2014 $'000	Asset Revaluation Surplus Actual 2014 $'000	Total Equity Actual 2014 $'000	Original Budget 2014 $'000
Capital Injections		67,409	-	67,409	80,122
Transactions Involving Owners Affecting Accumulated Funds		67,409	-	67,409	80,122

Balance at 30 June 2014	Note No.	Accumulated Funds Actual 2014 $'000	Asset Revaluation Surplus Actual 2014 $'000	Total Equity Actual 2014 $'000	Original Budget 2014 $'000
Balance at 30 June 2014		900,172	866,635	1,766,807	1,932,950

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes

Education and Training Directorate
Statement of Changes in Equity - Continued
For the Year Ended 30 June 2014

Balance at 1 July 2012	Note No.	Accumulated Funds Actual 2013 $'000	Asset Revaluation Surplus Actual 2013 $'000	Total Equity Actual 2013 $'000
Balance at 1 July 2012		831,421	1,012,203	1,843,624

Comprehensive Income	Note No.	Accumulated Funds Actual 2013 $'000	Asset Revaluation Surplus Actual 2013 $'000	Total Equity Actual 2013 $'000
Operating (Deficit)		(59,953)	-	(59,953)
Increase in the Asset Revaluation Surplus	32	-	402	402
Total Comprehensive (Deficit)/Surplus		(59,953)	402	(59,551)

Transactions Involving Owners Affecting Accumulated Funds	Note No.	Accumulated Funds Actual 2013 $'000	Asset Revaluation Surplus Actual 2013 $'000	Total Equity Actual 2013 $'000
Capital Injections		100,489	-	100,489
Net Assets Transferred in as part of an Administrative Restructure	33	35,388	-	35,388
Total Transactions Involving Owners Affecting Accumulated Funds		135,877	-	135,877

Balance at 30 June 2013	Note No.	Accumulated Funds Actual 2013 $'000	Asset Revaluation Surplus Actual 2013 $'000	Total Equity Actual 2013 $'000
Balance at 30 June 2013		907,345	1,012,605	1,919,950

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Education and Training Directorate
Cash Flow Statement
For the Year Ended 30 June 2014

Cash Flows from Operating Activities Receipts	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Government Payment for Outputs	576,019	589,429	559,045
User Charges	19,179	15,943	15,947
Interest Received	1,654	1,350	1,163
Distribution from Investments with the Territory Banking Account	15	118	121
Schools and Other	21,684	20,033	20,319
Goods and Services Tax Received	21,991	19,307	25,547
Total Receipts from Operating Activities	640,542	646,180	622,142

Cash Flows from Operating Activities Payments	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Employee	399,754	402,206	379,184
Superannuation	60,396	60,221	57,988
Supplies and Services	62,229	68,592	62,362
Grants and Purchased Services	20,223	30,949	26,304
Borrowing Costs	8	12	7
Schools and Other	62,653	63,157	60,644
Goods and Services Tax Paid	23,075	19,307	24,792
Total Payments from Operating Activities	628,338	644,444	611,281

Net Cash Inflows from Operating Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Cash Inflows from Operating Activities	39	12,204	1,736	10,861

Cash Flows from Investing Activities Receipts	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Proceeds from the Sale of Property, Plant and Equipment		25	-	30

Cash Flows from Investing Activities

Receipts

Note
No.

Actual
2014
$'000

Original
Budget
2014
$'000

Actual
2013
$'000

Proceeds from the Sale of Property, Plant and Equipment

Cash Flows from Investing Activities Payments	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Purchase of Property, Plant and Equipment		75,814	81,337	100,745

Cash Flows from Investing Activities

Payments

Note
No.

Actual
2014
$'000

Original
Budget
2014
$'000

Actual
2013
$'000

Purchase of Property, Plant and Equipment

75,814

81,337

100,745

Cash Flows from Investing Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Cash (Outflows) from Investing Activities		(75,789)	(81,337)	(100,715)

Cash Flows from Financing Activities Receipts	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Capital Injections		67,409	80,122	100,489
Loan Proceeds		2,517	-	-

Cash Flows from Financing Activities

Receipts

Note
No.

Actual
2014
$'000

Original
Budget
2014
$'000

Actual
2013
$'000

Capital Injections

67,409

80,122

100,489

Loan Proceeds

2,517

Cash Flows from Financing Activities Payments	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Repayment of Finance Leases		56	50	91

Cash Flows from Financing Activities

Payments

Note
No.

Actual
2014
$'000

Original
Budget
2014
$'000

Actual
2013
$'000

Repayment of Finance Leases

Net Cash Inflows from Financing Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Cash Inflows from Financing Activities		69,870	80,072	100,398

Cash Flows from Investing Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Increase in Cash and Cash Equivalents		6,285	471	10,544
Cash and Cash Equivalents at the Beginning of theReporting Period		63,938	50,496	53,394
Cash and Cash Equivalents at the End of the ReportingPeriod	39	70,223	50,967	63,938

The above Cash F low Statement should be read in conjunction with the accompanying notes

Education and Training Directorate
Summary of Output Classes
For the Year Ended 30 June 2014

2014	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Total $'000
Total Income	581,622	4,404	30,733	616,759
Total Expenses	(658,990)	(4,108)	(28,243)	(691,341)
Operating (Deficit)/Surplus	(77,368)	296	2,490	(74,582)

2013	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Total $'000
Total Income	559,821	3,541	33,619	596,981
Total Expenses	(622,859)	(3,663)	(30,412)	(656,934)
Operating (Deficit)/Surplus	(63,038)	(122)	3,207	(59,953)

Education and Training Directorate
Operating Statement for Output Class 1 – Public School Education
For the Year Ended 30 June 2014

Description

This output contributes to the provision of preschool, primary, high, secondary and special school education in public schools to all enrolled students, early intervention services and regulation of education and care

Income Revenu	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Government Payment for Outputs	541,535	548,459	522,441
User Charges – ACT Government	362	414	399
User Charges – Non-ACT Government	16,869	15,519	15,360
Interest	1,531	1,350	1,149
Distribution from Investments with the Territory Banking Account	101	115	121
Resources Received Free of Charge	529	384	309
Other Revenue	20,680	19,644	20,042
Total Revenue	581,607	585,885	559,821

Income Gains	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Gains on Investments	15	-	-
Total Gains	15	-	-

Total Income	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Income	581,622	585,885	559,821

Expenses	Actual 2014 $'000	Actual 2014 $'000	Actual 2014 $'000
Employee Expenses	407,712	398,585	379,715
Superannuation Expenses	60,128	59,082	57,098
Supplies and Services	61,615	65,129	59,472
Depreciation and Amortisation	64,910	68,236	65,212
Grants and Purchased Services	1,903	2,560	1,598
Borrowing Costs	8	12	7
Other Expenses	62,714	62,843	59,757
Total Expenses	658,990	656,447	622,859

Operating (Deficit)	Actual 2014 $'000	Actual 2014 $'000	Actual 2014 $'000
Operating (Deficit)	(77,368)	(70,562)	(63,038)

Education and Training Directorate
Operating Statement for Output Class 2 – Non Government School Education
For the Year Ended 30 June 2014

Description

This output contributes to the maintenance of standards in non-government schools and home education through compliance and registration, accreditation and certification of senior secondary courses, support and liaison with the non-government sector, administration and payment of Commonwealth Government and Territory grants for the non-government sector and the conduct of an annual non-government schools census.

Income Revenue	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Government Payment for Outputs	3,765	3,762	3,240
User Charges – ACT Government	-	-	1
User Charges – Non-ACT Government	192	9	25
Interest	14	-	11
Distribution from Investments with the Territory Banking Account	1	1	-
Resources Received Free of Charge	5	-	3
Other Revenue	427	360	261
Total Revenue	4,404	4,132	3,541
Total Income	4,404	4,132	3,541

Expenses	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Employee Expenses	1,608	1,632	1,100
Superannuation Expenses	237	253	174
Supplies and Services	833	2,245	749
Depreciation and Amortisation	115	154	102
Grants and Purchased Services	1,315	-	1,512
Other Expenses	-	3	26
Total Expenses	4,108	4,287	3,663

Operating Surplus/(Deficit)	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Operating Surplus/(Deficit)	296	(155)	(122)

Education and Training Directorate
Operating Statement for Output Class 3 – Vocational Education and Training
For the Year Ended 30 June 2014

Description

This output contributes to the planning, funding, managing and reporting services for Vocational Education and Training opportunities, programs and initiatives in the ACT.

Income Revenue	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Government Payment for Outputs	30,719	37,208	33,364
User Charges – ACT Government	-	1	9
User Charges – Non-ACT Government	-	-	243
Interest	1	-	1
Distribution from Investments with the Territory Banking Account	-	2	-
Resources Received Free of Charge	1	1	1
Other Revenue	12	29	1
Total Revenue	30,733	37,241	33,619
Total Income	30,733	37,241	33,619

Expenses	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Employee Expenses	6,106	5,993	5,125
Superannuation Expenses	901	884	771
Supplies and Services	2,438	1,950	1,126
Depreciation and Amortisation	6	199	9
Grants and Purchased Services	18,792	28,389	23,026
Other Expenses	-	113	355
Total Expenses	28,243	37,528	30,412

Operating Surplus/(Deficit)	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Operating Surplus/(Deficit)	2,490	(287)	3,207

Education and Training Directorate
Controlled Statement of Appropriation
For the Year Ended 30 June 2014

Controlled	Note No.	Original Budget 2014 $'000	Total Appropriated 2014 $'000	Appropriation Drawn 2014 $'000	Appropriation Drawn 2013 $'000
Government Payment for Outputs	4	589,429	600,733	576,019	559,045
Capital Injections		80,122	108,812	67,409	100,489
Total Controlled Appropriation		669,551	709,545	643,428	659,534

The above Controlled Statement of Appropriation should be read in conjunction with the notes below.

Column Heading Explanations

The Original Budget column shows the amounts that appear in the Cash Flow Statement in the Budget Papers. This amount also appears in these financial statements, in the Cash Flow Statement.

The Total Appropriated column is inclusive of all appropriation variations occurring after the Original Budget.

The Appropriation Drawn is the total amount of appropriation received by the Directorate during the year. This amount appears in these financial statements, in the Cash Flow Statement.

Variances between 'Original Budget' and 'Total Appropriated'

Government Payment for Outputs

The difference between the original budget and total appropriated primarily relates to increased Commonwealth grants ($0.812m) for National Education Reform (Students First), Joint Group Training and Industry and Indigenous Skills Centres National Partnerships and funding transferred from 2012-13 ($10.478m). The funding transferred from 2012-13 is mainly due to late receipt of Commonwealth funding for VET Training Skills Reform, Support for Students with Disabilities and Literacy and Numeracy National Partnerships in 2012-13 combined with the timing of course completions associated with the Productivity Places Program National Partnership and funding allocated to the MAZE Schools Information Communication Technology (ICT) system upgrade.

Capital Injections

The difference between the original budget and the total appropriated relates to new funding for Coombs Pââ‚¬'6 Primary School through a 2nd appropriation ($7.460m), increased Commonwealth payments for the Trade Training Centres National Partnership ($1.104m) and the transfer of funds from 2012-13 ($20.126m). The transfer of funds from 2012-13 primarily relates to late receipt of Commonwealth funding for Trade Training Centres and delays in completion of scoping and design works for the Holder Early Childhood Centre and Upgrade of Early Childhood Facilities.

Variances between 'Total Appropriated' and 'Appropriation Drawn'

Government Payment for Outputs

The difference between the total appropriated and appropriation drawn relates to lower than budgeted Commonwealth payments ($2.919m) primarily for Universal Access and VET Training Skills Reform National Partnerships and funds transferred to 2014-15 ($21.796m). The transfer of funds into 2014-15 primarily relates to the timing of course completions associated with the Productivity Places Program and VET Training Skills Reform, timing of expenditure associated with More Support for Students with a Disability and Literacy and Numeracy National Partnerships and delays in the commencement of the MAZE schools ICT system upgrade.

Capital Injections

The difference between the total appropriated and appropriation drawn relates to the transfer of funds to 2014-15 ($40.901m). The transfer of funds primarily relates to the new Coombs P-6 Primary School ($7.460m) due to delays in awarding the construction tender, advance receipt for the Trade Training Centres National Partnership ($6.403m), Sustaining Smart Schools project ($5.6m) due to timing of cash payments, childcare projects ($4.150m) due to delay in finalisation of construction tenders and scope of works and savings in the delivery of Franklin Early Childhood School and Bonner Primary School ($3.5m).

Education and Training Directorate Controlled - Note Index

General Notes

Note 1. Objectives of the Directorate
Note 2. Summary of Significant Accounting Policies
Note 3. Change in Accounting Policy and Accounting Estimates and Correction of a Prior Period Error

Income Notes

Note 4. Government Payment for Outputs
Note 5. User Charges - ACT and Non-ACT Government
Note 6. Interest
Note 7. Distribution from Investments with the Territory Banking Account
Note 8. Resources Received Free of Charge
Note 9. Other Revenue

Gains

Note10. Gains on Investments
Note11. Gains from Disposal of Non-Current Asset

Expense Notes

Note12. Employee Expenses
Note13. Superannuation Expenses
Note14. Supplies and Services
Note15. Depreciation and Amortisation
Note16. Grants and Purchased Services
Note17. Borrowing Costs
Note18. Other Expenses
Note19. Act of Grace Payments, Waivers and Write-Offs
Note 20. Auditor's Remuneration

Asset Notes

Note21. Cash and Cash Equivalents
Note22. Receivables
Note23. Investments
Note24. Property, Plant and Equipment
Note25. Intangible Assets
Note26. Capital Works in Progress
Note27. Other Assets

Liability Notes

Note28. Payables
Note29. Finance Leases
Note30. Employee Benefits
Note31. Other Liabilities

Equity Notes

Note32. Equity
Note33. Restructure of Administrative Arrangements
Note34. Disaggregated Disclosure of Assets and Liabilities

Other Notes

Note35. Financial Instruments
Note36. Commitments
Note37. Contingent Liabilities and Contingent Assets
Note38. Interest in a Jointly Controlled Entity
Note39. Cash Flow Reconciliation

Education and Training Directorate
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2014

Note 1. Objectives of the Directorate

Operations and Principal Activities

The Education and Training Directorate (the Directorate) works in partnership with parents and the community to ensure that all young people in the ACT learn, thrive and are equipped with the skills to lead fulfilling, productive and responsible lives. The Directorate works closely with other government agencies, education and training providers, business and industry to position the ACT as Australia's learning capital.

Services of the Directorate include the provision of public school education and early intervention education programs, regulation of education and care services, registration of non government schools and home education, and the planning and coordination of vocational education and training. High achievement for all students through connected and inclusive learning across all sectors of the education system is achieved through focussing on quality learning, inspirational teaching and leadership, high expectations and high performance, and improvement and innovation in business systems.

Note 2. Summary of Significant Accounting Policies

(a) Basis of Accounting

The Financial Management Act 1996 (FMA) requires the preparation of annual financial statements for the Directorate.

The FMA and the Financial Management Guidelines issued under the Act, requires the Directorate's financial statements to include:

(i) an Operating Statement for the year;
(ii) a Balance Sheet at the end of the year;
(iii) a Statement of Changes in Equity for the year;
(iv) a Cash Flow Statement for the year;
(v) a Statement of Appropriation for the year;
(vi) an Operating Statement for each class of output for the year;
(vii) a summary of the significant accounting policies adopted for the year; and
(viii) such other statements as are necessary to fairly reflect the financial operations of the Directorate during the year and its financial position at the end of the year.

These general purpose financial statements have been prepared in accordance with 'Generally Accepted Accounting Principles' (GAAP) as required by the FMA. The financial statements have been prepared in accordance with:

(i) Australian Accounting Standards; and
(ii) ACT Accounting and Disclosure Policies.

The financial statements have been prepared using the accrual basis of accounting, which recognises the effects of transactions and events when they occur. The financial statements have also been prepared according to the historical cost convention, except for assets such as those included in property, plant and equipment and financial instruments which were valued at fair value in accordance with the revaluation policies applicable to the Directorate during the reporting period (refer Note 2(q): Measurement of Property, Plant and Equipment after Initial Recognition).

These financial statements are presented in Australian dollars, which is the Directorate's functional currency.

The Directorate is an individual reporting entity.

(b) Controlled and Territorial Items

The Directorate produces Controlled and Territorial financial statements. The Controlled financial statements include income, expenses, assets and liabilities over which the Directorate has control. The Territorial financial statements include income, expenses, assets and liabilities that the Directorate administers on behalf of the ACT Government, but does not control, for example receiving and on passing of grants to non government schools.

The purpose of the distinction between Controlled and Territorial is to enable an assessment of the Directorate's performance against the decisions it has made in relation to the resources it controls, while maintaining accountability for all resources under its responsibility.

The basis of accounting described in Note 2(a) above applies to both Controlled and Territorial financial statements except where specified otherwise.

(c) The Reporting Period

These financial statements state the financial performance, changes in equity and cash flows of the Directorate for the year ending 30 June 2014 together with the financial position of the Directorate as at 30 June 2014.

(d) Comparative Figures

Budget Figures

To facilitate a comparison with Budget Papers, as required by the Financial Management Act 1996, budget information for 2013-14 has been presented in the financial statements. Budget numbers in the financial statements are the original budget numbers that appear in the Budget Papers.

Prior Year Comparatives

Comparative information has been disclosed in respect of the previous period for amounts reported in the financial statements, except where an Australian Accounting Standard does not require comparative information to be disclosed.

Where the presentation or classification of items in the financial statements is amended, the comparative amounts have been reclassified where practical. Where a reclassification has occurred, the nature, amount and reason for the reclassification is provided.

(e) Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars ($'000). Use of the "-'" symbol represents zero amounts or amounts rounded up or down to zero.

(f) Revenue Recognition

Revenue is recognised at the fair value of the consideration received or receivable in the Operating Statement. All revenue is recognised to the extent that it is probable that the economic benefits will flow to the Directorate and the revenue can be reliably measured. In addition, specific recognition criteria must also be met before revenue is recognised. Revenue for user charges is recorded when received with the exception of international private students which is recognised on an accrual basis. Revenue is also recognised from the Active Leisure Centre in the Directorate's books as the Directorate controls the facilities.

Appropriation

Government Payment for Outputs and Payment for Expenses on Behalf of the Territory are recognised as revenues when the Directorate gains control over the funding. Control over appropriated funds is obtained upon the receipt of cash.

Interest

Interest revenue is recognised using the effective interest rate.

Distribution

Distribution revenue is received from investments with the Territory Banking Account. This is recognised on an accrual basis.

Revenue Received in Advance

Revenue received in advance is recognised as a liability if there is a present obligation to return the funds received, otherwise all are recorded as revenue.

(g) Resources Received and Provided Free of Charge

Resources received free of charge are recorded as a revenue and as an expense in the Operating Statement at fair value. The revenue is separately disclosed under resources received free of charge, with the expense being recorded in the line item to which it relates. Assets received free of charge as a result of administrative restructure are recorded as a net increase in assets from administrative restructure.

(h) Repairs and Maintenance

The Directorate undertakes major cyclical maintenance on its assets. Where the maintenance leads to an upgrade of the asset, and increases the service potential of the existing asset, the cost is capitalised. Maintenance expenses which do not increase the service potential of the asset are expensed.

(i) Borrowing Costs

Borrowing costs relate to finance leases. Borrowing costs are expensed in the period in which they are incurred.

(j) Waivers of Debt

Debts that are waived during the year under Section 131 of the Financial Management Act 1996 are expensed during the year in which the right to payment was waived. Further details of waivers are disclosed in Note 19: Act of Grace Payments, Waivers and Write-offs.

(k) Current and Non-Current Items

Assets and liabilities are classified as current or non-current in the Balance Sheet and in the relevant notes. Assets are classified as current where they are expected to be realised within 12 months after the reporting date. Liabilities are classified as current when they are due to be settled within 12 months after the reporting date or when the Directorate does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Assets or liabilities which do not fall within the current classification are classified as non-current.

(l) Impairment of Assets

The Directorate assesses, at each reporting date, whether there is any indication that an asset may be impaired. Assets are also reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the asset's 'fair value less costs of disposal' and its 'value in use'. An asset's 'value in use' is its depreciated replacement cost, where the asset would be replaced if the Directorate were deprived of it.

If a material impairment loss results, the loss is recognised against the relevant class of asset in the Asset Revaluation Surplus with corresponding reduction to the carrying amount in the Balance Sheet. Where the impairment loss is greater than the balance in the Asset Revaluation Surplus, the difference is expensed in the Operating Statement.

(m) Cash and Cash Equivalents

For the purposes of the Cash Flow Statement and the Balance Sheet, cash includes cash at bank and cash on hand. Directorate money held in the Territory Banking Account Cash Fund is classified as a Cash Equivalent. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are included in cash and cash equivalents in the Cash Flow Statement and are included as borrowings in the Balance Sheet.

(n) Receivables

Accounts receivable (including trade receivables and other trade receivables) are initially recognised at fair value and are subsequently measured at amortised cost, with any adjustments to the carrying amount being recorded in the Operating Statement.

The allowance for impairment losses represents the amount of trade receivables and other trade receivables the Directorate estimates will not be repaid. The allowance for impairment losses is based on objective evidence and a review of overdue balances. The Directorate considers the following is objective evidence of impairment:

becoming aware of financial difficulties of debtors;
default payments; or
debts more than 90 days overdue.

The amount of the allowance is the difference between the asset's carrying amount and the present value of the estimated future cash flows, discounted at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the allowance is recognised in the Operating Statement.

(o) Investments

Short-term investments are held with the Territory Banking Account in a unit trust called the Cash Enhanced Portfolio. Long-term investments are held with the Territory Banking Account in a unit trust called the Fixed Interest Portfolio. The price of units in both these unit trusts fluctuates in value. The net gains or losses do not include interest or dividend income.

These short-term and long-term investments are measured at fair value with any adjustments to the carrying amount recorded in the Operating Statement. Fair value is based on an underlying pool of investments which have quoted market prices at the reporting date.

(p) Acquisition and Recognition of Property, Plant and Equipment

Property, plant and equipment is initially recorded at cost when they acquired.

Where property, plant and equipment are acquired at no cost, or minimal cost, cost is its fair value as at the date of acquisition. However property, plant and equipment acquired at no cost or minimal cost as part of a Restructuring of Administrative Arrangements is measured at the transferor's book value.

Property, plant and equipment with a minimum value of $5,000 (exclusive of GST) are capitalised. Assets below $5,000 are expensed in the reporting period of purchase. Assets that are individually below the threshold, but for which the aggregate value is material, may be capitalised depending on the nature of the assets.

(q) Measurement of Property, Plant and Equipment after Initial Recognition

Land, buildings and improvements to land are measured at fair value. Plant and equipment including leasehold improvements are measured at cost. Land and buildings are revalued every three years.

Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is measured using the market approach, the cost approach or the income approach valuation techniques as appropriate. In estimating the fair value of an asset or liability, the Directorate takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

Fair value for land and non-specialised buildings is measured using the market approach valuation technique. This approach uses prices and other relevant information generated by market transactions involving identical or similar assets. Fair value for specialised assets is measured using the cost approach that reflects the cost to construct a comparable asset.

(r) Intangible Assets

Internally generated software is recognised when it meets the general recognition criteria and where it also meets the specific recognition criteria relating to intangible assets arising from the development phase of an internal project.

Capitalised software has a finite useful life. Software is amortised on a straight line basis over its useful life, over a period not exceeding five years.

Intangible assets are measured at cost.

(s) Depreciation and Amortisation of Non-Current Assets

Non-current assets with a limited useful life are systematically depreciated or amortised over their useful lives in a manner that reflects the consumption of their service potential.

Land has an unlimited useful life and is therefore not depreciated.

Depreciation or amortisation for non-current assets is determined as follows:

Class of Asset	Depreciation/Amortisation	Useful Life (Years)
Buildings and Improvements to Land	Straight Line	50
Community and Heritage Assets	Straight Line	22
Leasehold Improvements	Straight Line	5
Plant and Equipment	Straight Line	2-20
Leased Assets	Straight Line	2-20
Externally Purchased Intangibles	Straight Line	2-5

The aggregate amount of depreciation and amortisation allocated for each class of asset during the reporting period is disclosed in Note 15 – Depreciation and Amortisation.

(t) Payables

Payables include Trade Payables and Accrued Expenses.

Trade Payables represent the amounts owing for goods and services received prior to the end of the reporting period and unpaid at the end of the reporting period and relating to the normal operations of the Directorate. Accrued Expenses represent goods and services provided by other parties during the period that are unpaid at the end of the reporting period and where an invoice has not been received by period end.

(u) Joint Venture

The Directorate is a venturer in a joint venture operation with the Catholic Education Office at Gold Creek Primary School and its share of assets, liabilities, income and expenses have been recognised in the Directorate's financial statements under appropriate headings consistent with AASB 131 'Interests in Joint Ventures (for not-for-profit entities)'. Refer to Note 38 – Interest in a Jointly Controlled Entity for details.

(v) Leases

The Directorate has entered into finance leases and operating leases.

Finance Leases

Finance leases effectively transfer to the Directorate substantially all the risks and rewards incidental to ownership of the assets under a finance lease. The Directorate's finance leases mainly relate to office equipment and motor vehicles. Finance leases are initially recognised as an asset and a liability at the lower of the fair value of the asset and the present value of the minimum lease payments each being determined at the inception of the lease. Assets under finance lease are depreciated over the shorter of the asset's useful life and lease term. Assets under finance lease are depreciated on a straight line basis. The depreciation is calculated after first deducting any residual values which remain for each leased asset. Each lease payment is allocated between interest expense and reduction of the lease liability. Lease liabilities are classified as current and non-current.

Operating Leases

Operating leases do not effectively transfer to the Directorate substantially the entire risks and rewards incidental to ownership of the asset under an operating lease. Operating lease payments are recorded as an expense in the Operating Statement on a straight-line basis over the term of the lease.

(w) Employee Benefits

Employee benefits include

short-term employee benefits such as the following, if expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services - wages and salaries, annual leave loading, and applicable on-costs;
other long-term benefits such as long service leave and annual leave; and
termination benefits.

On-costs include annual leave, long service leave, superannuation and other costs that are incurred when employees take annual and long service leave. These benefits accrue as a result of services provided by employees up to the reporting date that remain unpaid.

Wages and Salaries

Accrued salaries and wages are measured at the amount that remains unpaid to employees at the end of the reporting period.

Annual and Long Services Leave

Annual and long service leave including applicable on-costs that are not expected to be wholly settled before twelve months after the end of the reporting period when the employees render the related service are measured at the present value of estimated future payments to be made in respect of services provided by employees up to the end of the reporting period. Consideration is given to the future wage and salary levels, experience of employee departures and periods of service. At the end of each reporting period, the present value of annual leave and long service leave payments is estimated using market yields on Commonwealth Government bonds with terms to maturity that match, as closely as possible, the estimated future cash flows.

Annual leave liabilities have been estimated on the assumption that they will be wholly settled within three years. In 2013-14 the rate used to estimate the future payments is 100.9%.

The long service leave liability is estimated with reference to the minimum period of qualifying service. For employees with less than the required minimum period of 7 years of qualifying service, a probability that employees will reach the required minimum period has been taken into account in estimating the provision for long service leave and applicable on-costs. In 2013-14, the rate used to estimate the present value of future payments for long service leave is 103.5% (101.3% in 2012-13).

The provision for annual leave and long service leave includes estimated on-costs. As these on-costs only become payable if the employee takes annual and long service leave while in-service a probability factor has been incorporated.

The significant judgements and assumptions included in the estimation of annual and long service leave liabilities are determined by an actuary. The Australian Government Actuary performed an assessment in May 2014 with the next review expected in 2019. Further information about this estimate is provided in Note 2 (ac) – Significant Accounting Judgements and Estimates.

Annual leave and long service leave liabilities are classified as current liabilities in the Balance Sheet where there are no unconditional rights to defer the settlement of the liability for at least 12 months. Conditional long service leave liabilities are classified as non-current because the Directorate has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service.

(x) Superannuation

The Directorate receives funding for superannuation payments as part of the Government Payment for Outputs. The Directorate then makes payments on a fortnightly basis to the Territory Banking Account, to cover the Directorate's superannuation liability for the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). This payment covers the CSS/PSS employer contribution, but does not include the productivity component. The productivity component is paid directly to ComSuper by the Directorate. The CSS and PSS are defined benefit superannuation plans meaning that the defined benefits received by employees are based on the employee's years of service and average final salary.

Superannuation payments have also been made directly to superannuation funds for those members of the Public Sector who are part of superannuation accumulation schemes. This includes the Public Sector Superannuation Scheme Accumulation Plan (PSSAP) and schemes of employee choice.

Superannuation employer contribution payments, for the CSS and PSS, are calculated, by taking the salary level at an employee's anniversary date and multiplying it by the actuarially assessed nominal CSS or PSS employer contribution rate for each employee. The productivity component payments are calculated by taking the salary level, at an employee's anniversary date, and multiplying it by the employer contribution rate (approximately 3%) for each employee. Superannuation payments for the PSSAP are calculated by taking the salary level, at an employee's anniversary date, and multiplying it by the appropriate employer contribution rate. Superannuation payments for fund of choice arrangements are calculated by taking an employee's salary each pay and multiplying it by the appropriate employer contribution rate.

The Superannuation Provision Account recognises the total Territory superannuation liability for the CSS and PSS, and ComSuper and the external schemes recognise the superannuation liability for the PSSAP and other schemes respectively.

(y) Equity Contributed by the ACT Government

Contributions made by the ACT Government, through its role as owner of the Directorate, are treated as contributions of equity.

Increases or decreases in net assets as a result of Administrative Restructures are also recognised in equity.

(z) Insurance

The Directorate insures its major risks through the ACT Insurance Authority. The excess payable, under this arrangement, varies depending on each class of insurance held.

(aa) Taxation

The Directorate's activities are exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). The amount of FBT paid in the year was $0.058 million ($0.073 million; 2012-13). This amount is in the Operating Statement under employee expenses.

Revenue, expenses and assets are recognised net of GST except to the extent that the amount of GST incurred by the purchaser is not recoverable from the Australian Taxation Office.

Cash flows relating to GST are included in the Cash Flow Statement on a gross basis. The GST component of cash flows arising from investing and financing activities that are recoverable from, or payable to, the Australian Taxation Office are classified as operating cash flows. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as part of receivables or payables in the Balance Sheet.

(ab) Contingent Liabilities and Assets

Contingent liabilities include all provisions not meeting both of the recognition criteria of a liability. These criteria are: whether it is probable that the future sacrifice of economic benefits will be required; and whether the amount of the liability can be measured reliably. Contingent assets include any assets that do not meet both of the recognition criteria for an asset. These criteria are: whether it is probable that the future economic benefits embodied in the asset will eventuate: and the asset possesses a cost or other value that can be measured reliably. The contingent liabilities are disclosed in Note 37 – Contingent Liabilities and Contingent Assets. There are no contingent assets in 2013-14.

(ac) Significant Accounting Judgements and Estimates

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

Fair Value of Land and Buildings: The Directorate has made a significant estimate regarding the fair value of its land and buildings based on an independent valuer's assessment in relation to the valuation techniques, inputs and processes. Refer Note 2(q) – Measurement of Property, Plant and Equipment after Initial Recognition and Note 24 – Property, Plant and Equipment.
Employee Benefits: Significant judgements have been applied in estimating the liability for employee benefits. The estimated liability for annual and long service leave requires a consideration of the future wages and salary levels, experience of employee departures, probability that leave will be taken in service and periods of service. The estimate also includes an assessment of the probability that employees will meet the minimum service period required to qualify for long service leave and that on-costs will become payable. Further information on this estimate is provided in Note 2(w) – Employee Benefits and Note 3(a) – Change in Accounting Policy and Accounting Estimates.
Estimation of Useful Lives of Property, Plant and Equipment: The Directorate disclosed in Note 24 – Property, Plant and Equipment that Property, Plant and Equipment is systematically depreciated over its estimated useful life. The estimated useful life of Property, Plant and Equipment is reassessed each year and adjusted when the condition and other factors affecting the useful life of Property, Plant and Equipment indicate an adjustment is warranted.
Impairment: The Directorate disclosed that Property, Plant and Equipment is annually assessed for impairment. If this assessment indicates an asset is impaired, then an assessment of the asset's recoverable amount must be estimated to determine whether an impairment loss must be recognised. For 2013-14, the Directorate has undertaken an assessment in relation to the school buildings utilised. The Directorate's impairment policy states that schools buildings used at less than 65% capacity are impaired. An adjustment is reflected in the financial statements if the overall impairment is material. There has been no adjustment for impairment in 2013-14.

(ad) After Balance Date Events

There are no known events occurring after 30 June 2014 that will materially affect the financial statements.

(ae) Going Concern

As at 30 June 2014, the Directorate's current liabilities ($146.6 million) exceed its current assets ($75.8 million) by $70.8 million. However, this is not considered a liquidity risk as its cash needs are funded through appropriation from the ACT Government on a cash-needs basis. This is consistent with the wholeââ‚¬'ofââ‚¬'government cash management regime, which requires excess cash balances to be held centrally rather than within individual Directorate bank accounts. The Directorate does not consider this a liquidity risk as cash needs are funded through appropriation from the ACT Government on a needs basis.

(af) Impact of Accounting Standards Issued But Yet To Be Applied

The following new and revised accounting standards and interpretations that are applicable to the Directorate have been issued by the Australian Accounting Standards Board but do not apply to the current reporting period. These standards and interpretations are applicable to future reporting periods. The Directorate does not intend to adopt these standards and interpretations early. Where applicable, these Australian Accounting Standards will be adopted from their application date. It is expected that AASB 1055 Budgetary Reporting (application date 1 July 2014) will have a material impact in terms of disclosure requirements relating to variance explanation against budget.

It is estimated that the effect of adopting the below pronouncements, when applicable, will have no material financial impact on the Directorate in future reporting periods:

AASB 9 FinancialInstruments (application date 1 January 2017);
AASB 10 Consolidated Financial Statements (application date 1 January 2014 for not-for-profit entities);
AASB 11 JointArrangements (application date 1 January 2014 for not-for-profit entities);
AASB 12 Disclosure of Interests in Other Entities (application date 1 January 2014 for not-for-profit entities);
AASB 127 Separate Financial Statements (application date 1 January 2014 for not-for-profit entities);
AASB 128 Investments in Associates and Joint Ventures (application date 1 January 2014 for not-for-profit entities);
AASB 1031 Materiality (application date 1 January 2014);
AASB 2010-7 Amendments to Australian Accounting Standard arising from AASB 9 (December 2010) (application date 1 January 2017);
AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (application date 1 January 2014 for not-for-profit entities);
AASB 2013-3 Amendments to AASB 136 Recoverable Amount Disclosures for Non-Financial Assets (application date 1 January 2014);
AASB 2013-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities – Control and Structured Entities (application date 1 January 2014); and
AASB 2013-9 Amendments to Australian Accounting Standards – Conceptual Framework, Materiality and Financial Instruments Part B Materiality (application date 1 January 2014) Part C Financial Instruments (application date 1 January 2015).

Note 3. Change in Accounting Policy and Accounting Estimates and Correction of a Prior Period Error

(a) Change in Accounting Estimates

As disclosed in Note 2 (w) – Employee Benefits, annual leave and long service leave, including applicable onââ‚¬'costs that do not fall due in the next 12 months are measured at the present value of estimated payments to be made in respect of services provided by employees up to the reporting date. The present value of future payments is estimated using the Commonwealth Bond rate.

Last financial year the rate used to estimate the present value of future long service leave and annual leave payments was 101.3% for long service leave and 100.0% for annual leave. Due to a change in the Commonwealth Bond rate at 30 June 2014, the rate for 2013-14 is 103.5% for long service leave and 100.9% for annual leave. As such the estimate of the long service leave and annual leave liabilities has changed. This change has resulted in an increase to the estimate of the long service leave liability and expense in the current reporting period of approximately $2.028 million and an increase to the estimate of the annual leave liability and expense in the current reporting period of approximately $0.280 million.

As disclosed in Note 24 – Property, Plant and Equipment the Directorate revalued its Land, Buildings, Improvements to Land and Community and Heritage assets in 2013-14. This review resulted in the adjustment to the useful lives and residual value of some assets.

(b) Change in Accounting Policy

There have been no changes to accounting policy in 2013-14.

(c) Correction of Prior Period Errors

There were no corrections of prior period errors in 2013-14.

Note 4. Government Payment for Outputs

Government Payment for Outputs	2014 $'000	2013 $'000
Government Payment for Outputs¹	576,019	559,045
Total	576,019	559,045

The increase is mainly due to funding for pay increases associated with enterprise bargaining agreements for staff.

Note 5. User Charges – Act and Non-Act Government

User Charges - ACT Government	2014 $'000	2013 $'000
User Charges - ACT Government	362	409
Total	362	409

User Charges - Non - ACT Government	2014 $'000	2013 $'000
International Private Students Program¹	6,760	6,051
Active Leisure Centre - Hire of Facilities and Recreational Activities	3,588	3,521
Commonwealth National Agreements	4,806	4,574
Commonwealth Own Purpose Payments (COPE) / Specific Projects ²	1,671	1,264
Other	236	218
Total	17,061	15,628

Primarily relates to an increase in the number of international private students accessing education services.
Increase primarily relates to Commonwealth funding received for the Residence Determination Program and Indigenous Education Program.

Note 6. Interest

Interest	2014 $'000	2013 $'000
Interest received from Schools and Other Cash held¹	1,546	1,161
Total	1,546	1,161

The increase mainly relates to higher cash balances in school bank accounts due to timing of expenditure

Note 7. Distribution from Investments with the Territory Banking Account

Distribution from Investments with the Territory Banking Account	2014 $'000	2013 $'000
Distribution from Investments with the Territory Banking Account	102	121
Total	102	121

Note 8. Resources Received Free Of Charge

This primarily relates to legal advice and other legal services provided by the Government Solicitor's Office.

Resources Received Free of Charge	2014 $'000	2013 $'000
Resources Received Free of Charge	535	313
Total	535	313

Note 9. Other Revenue

Other revenue mainly comprises voluntary contributions, fund raising revenue and excursion funds.

School Revenue	2014 $'000	2013 $'000
School Revenue	19,461	19,041
Other ¹	1,658	1,263
Total	21,119	20,304

The increase mainly relates to higher levels of regulatory fees for the registration of teachers.

Note 10. Gains on Investments

Gains on Investments	2014 $'000	2013 $'000
Unrealised Gains on Investments with the Territory Banking Account	15	-
Total	15	-

Note 11. Gains from Disposal of Non-Current Assets

Gains from Disposal of Non-Current Assets	2014 $'000	2013 $'000
Gains from the Sales of Assets¹	25	30
Total	25	30

The revenue associated with the disposal of assets is reported under Note 9 – Other Revenue

Note 12. Employee Expenses

Employee Expenses	2014 $'000	2013 $'000
Wages and Salaries¹	387,586	369,749
Movement in Employee Benefits²	16,398	6,752
Workers' Compensation Insurance Premium	11,442	9,439
Total	415,426	385,940

The increase is mainly due to wage increase provided through enterprise bargaining agreement for teaching and non teaching staff.
The increase primarily relates to higher levels of wages and salaries accruals combined with an increase in the rate used to estimate the present value of annual and long service leave liabilities (refer note 2(w) - Employee Benefits and 3(a) - Change in Accounting Estimate).

Note 13. Superannuation Expenses

Superannuation Expenses	2014 $'000	2013 $'000
Superannuation Contributions to the Territory Banking Account	36,217	35,871
Productivity Benefit	5,105	5,083
Superannuation Payment to ComSuper (for the PSSAP)	1,077	1,132
Superannuation to External Providers	18,867	15,957
Total¹	61,266	58,043

The increase is mainly due to increased staff using external superannuation providers following the closure of the Public Sector Superannuation Scheme, the Commonwealth Superannuation Scheme and the Public Sector Superannuation Accumulation Plan to new entrants.

Note 14. Supplies and Services

Supplies and Services	2014 $'000	2013 $'000
Property and Maintenance	18,958	17,351
Materials and Services	28,947	27,292
Travel and Transport¹	7,238	6,556
Administrative	3,268	3,371
Financial²	4,760	4,726
Operating Lease Costs	1,434	1,478
Audit Fees	183	236
Asset Write-Off	98	337
Total	64,886	61,347

The increase is mainly due to increased special needs transport costs.
The Includes insurance and other financial services.

Note 15. Depreciation and Amortisation

Depreciation	2014 $'000	2013 $'000
Buildings and Land Improvements	53,610	51,197
Plant and Equipment¹	11,045	13,678
Leasehold Improvements	196	418
Community and Heritage Assets	35	-
Total Depreciation	64,886	65,293

Amortisation	2014 $'000	2013 $'000
Intangible Assets	145	30
Total Amortisation	145	30

Total Depreciation and Amortisation	2014 $'000	2013 $'000
Total Depreciation and Amortisation	65,031	65,323

The decrease primarily relates to full depreciation of new information and communication technology assets.

Note 16. Grants and Purchased Services

Grants and Purchased Services	2014 $'000	2013 $'000
Grant Payments - educational, apprenticeships, productivity places program and vocational education and training skills reform¹	22,010	26,136
Total	22,010	26,136

The decrease primarily relates to the timing of course completions associated with the Productivity Places Program and VET Training Skills Reform.

Note 17. Borrowing Costs

Borrowing Costs	2014 $'000	2013 $'000
Finance Charges on Finance Leases	8	7
Total	8	7

Note 18. Other Expenses

Other expenses mainly comprise utilities, cleaning, security and maintenance

costs in schools as well as educational enrichment activities.

Other Expenses	2014 $'000	2013 $'000
School Expenses	61,996	59,237
Other Expenses	718	901
Total	62,714	60,138

Note 19. Act Of Grace Payments, Waivers And Write-Offs

Act Of Grace Payments, Waivers And Write-Offs	2014 $'000	2013 $'000
Write-Off of Assets¹	98	337
Total	98	337

The expense associated with the write-off of assets is reported under Note 14 - Supplies and Services.

Note 20. Auditor's Remuneration

Auditor's remuneration consists of financial audit services provided to the Directorate by the ACT Audit Office. No other services were provided by the ACT Audit Office.

Auditor's Remuneration	2014 $'000	2013 $'000
Audit Fees Paid to the ACT Audit Office	122	125
Total	122	125

Note 21. Cash and Cash Equivalents

The Directorate holds a number of bank accounts with the Westpac Bank as part of the whole-of-government banking arrangements.

Cash and Cash Equivalents	2014 $'000	2013 $'000
Central Office Bank Accounts¹	27,567	19,031
School Management Accounts	39,838	36,682
Other Operations Bank Accounts	2,807	8,214
Cash on Hand	11	11
Total	70,223	63,938

The increase primarily relates to the timing of expenditure for the back payment of the non-teaching enterprise bargaining agreement.

Note 22. Receivables

Current Receivables	2014 $'000	2013 $'000
Trade Receivables	241	998
Less: Allowance for Impairment Losses	(147)	(89)
Total	94	909

Other Trade Receivables	2014 $'000	2013 $'000
Other Trade Receivables¹	490	3,187
Less: Allowance for Impairment Losses	-	-
Total	490	3,187

The decrease in 2013-14 is due to a receivable in the prior year for information communication and technology services provided by the Commerce and Works Directorate based on service level agreement payments and actual usage.

Accrued Revenue	2014 $'000	2013 $'000
Accrued Revenue	36	36
Net Goods and Services Tax Receivable	3,688	2,604

Total Current Receivables	2014 $'000	2013 $'000
Total Current Receivables	3,724	2,640

Total	2014 $'000	2013 $'000
Total	4,308	6,736

Ageing of Receivables

Ageing of Receivables	Not Overdue $'000	Overdue Less than 30 Days $'000	Overdue 30 to 60 Days $'000	Overdue Greater than 60 Days $'000	Total $'000
2014 Not Impaired Receivables	3,900	28	33	347	4,308
2014 Impaired Receivables	-	-	-	147	147
2013 Not Impaired Receivables	6,207	28	144	357	6,736
2013 Impaired Receivables	-	-	-	89	89

Reconciliation of the Allowance for Impairment Losses	2014 $'000	2013 $'000
Allowance for Impairment Losses at the Beginning of the Reporting Period	89	5
Additional Allowance Recognised During the Reporting Period	58	84
Allowance for Impairment Losses at the End of the Reporting Period	147	89

Classification of ACT Government/Non-ACT Government Receivables

Receivables with ACT Government Entities	2014 $'000	2013 $'000
Net Trade Receivables	76	847
Net Other Trade Receivables	39	2,684
Accrued Revenue	25	5
Total Receivables with ACT Government Entities	140	3,536

Receivables with Non-ACT Government Entities	2014 $'000	2013 $'000
Net Trade Receivables	165	151
Net Other Trade Receivables	451	503
Accrued Revenue	11	31
Net Goods and Services Tax Receivable	3,688	2,604
Less: Allowance for Impairment Losses	(147)	(89)
Total Receivables with Non- ACT Government Entities	4,168	3,200

Total	2014 $'000	2013 $'000
Total	4,308	6,736

Note 23. Investments

Short-term investments were held with the Territory Banking Account in the Cash Enhanced Portfolio throughout the year. These funds are able to be withdrawn upon request.

The purpose of the investment in the Fixed Interest Portfolio is to hold it for a period of longer than 12 months. The total carrying amount of the Fixed Interest Portfolio investment below has been measured at fair value.

Current Investments	2014 $'000	2013 $'000
Investments with the Territory Banking Account - Cash Enhanced Portfolio	259	260
Total	259	260

Non-Current Investments	2014 $'000	2013 $'000
Investments with the Territory Banking Account - Fixed Interest Portfolio	1,846	1,831
Total	1,846	1,831

Total	2014 $'000	2013 $'000
Total	2,105	2,091

Note 24. Property, Plant and Equipment

Property, plant and equipment includes the following classes of assets – land, buildings, improvement to land, leasehold improvements, plant and equipment, and community and heritage assets.

Land	2014 $'000	2013 $'000
Land at Fair Value	330,814	275,799
Total Land Assets¹	330,814	275,799

Land	2014 $'000	2013 $'000
Buildings and Improvements to Land at Fair Value²	1,473,760	1,754,642
Less: Accumulated Depreciation	-	(95,479)
Total Written Down Value of Buildings and Improvements to Land¹	1,473,760	1,659,163

Land	2014 $'000	2013 $'000
Total Land and Written Down Value of Buildings and Improvements to Land	1,804,574	1,934,962

Leasehold Improvements	2014 $'000	2013 $'000
Leasehold Improvements at Cost	5,643	5,643
Less: Accumulated Depreciation	(4,314)	(4,118)
Total Written Down Value of Leasehold Improvements	1,329	1,525

Plant and Equipment	2014 $'000	2013 $'000
Plant and Equipment at Cost	92,739	82,049
Less: Accumulated Depreciation	(65,588)	(54,542)
Total Written Down Value of Plant and Equipment	27,151	27,507

Community and Heritage Assets	2014 $'000	2013 $'000
Community and Heritage Assets at Fair Value	960	960
Less: Accumulated Depreciation	-	-
Total Written Down Value of Community and Heritage Assets¹	960	960

Total	2014 $'000	2013 $'000
Total	1,834,014	1,964,954

During 2013-14, Colliers International Holdings performed a revaluation of the Directorate's Land, Buildings and Improvements to Land and Community and Heritage Assets in line with AASB 1041 'Revaluation of Non-Current Assets'.
The decrement primarily relates to a more competitive construction market.

Reconciliation of Property, Plant and Equipment

The following table shows the movement of Property, Plant and Equipment during 2013-14.

Reconciliation of Property, Plant and Equipment	Land $'000	Buildings and Improvements To Land $'000	Leasehold Improvements $'000	Plant and Equipment $'000	Community and Heritage Assets $'000	Total $'000
Carrying Amount at the Beginning of the Reporting Period	275,799	1,659,163	1,525	27,507	960	1,964,954
Additions	-	69,221	-	10,787	6	80,014
Revaluation Increment/(Decrement)	55,015	(201,014)	-	-	29	(145,970)
Depreciation	-	(53,610)	(196)	(11,045)	(35)	(64,886)
Disposals	-	-	-	(13)	-	(13)
Write-offs	-	-	-	(85)	-	(85)
Carrying Amount at the End of the Reporting Period	330,814	1,473,760	1,329	27,151	960	1,834,014

Reconciliation of Property, Plant and Equipment

The following table shows the movement of Property, Plant and Equipment during 2012-13.

Reconciliation of Property, Plant and Equipment	Land $'000	Buildings and Improvements To Land $'000	Leasehold Improvements $'000	Plant and Equipment $'000	Community and Heritage Assets $'000	Total $'000
Carrying Amount at the Beginning of the Reporting Period	259,873	1,576,875	2,035	39,431	-	1,878,214
Additions	-	115,946	-	2,819	-	118,765
Revaluation (Increment/Decrement)	494	218	-	-	(310)	402
Depreciation	-	(51,197)	(418)	(13,677)	-	(65,292)
Acquisition through Administrative Restructuring	15,432	16,557	-	-	1,270	33,259
Acquisition/(Disposal) from Transfers	-	-	-	-	-	-
Reclassification of Assets	-	766		(766)	-	-
Disposals	-	-	-	(30)	-	(30)
Write Offs	-	(2)	(92)	(270)	-	(364)
Carrying Amount at the End of the Reporting Period	275,799	1,659,163	1,525	27,507	960	1,964,954

Fair Value Hierarchy

The Directorate is required to classify property, plant and equipment into a Fair Value Hierarchy that reflects the significance of the inputs used in determining their fair value. The Fair Value Hierarchy is made up of the following three levels:

Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the Directorate can access at the 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; and
Level 3 - inputs that are unobservable for particular assets or liabilities

Details of the Directorate's property, plant and equipment at fair value and information about the Fair Value Hierarchy as at 30 June 2014 are as follows:

2014 Classification According to the Fair Value Hierarchy

Property, Plant and Equipment at Fair Value	Level 1 $'000	Level 2 $'000	Level 3 $'000	Total $'000
Land	-	13,910	316,904	330,814
Buildings and Improvements to Land	-	27,088	1,446,672	1,473,760
Community and Heritage Assets	-	-	960	960
	-	40,998	1,764,536	1,805,534

The Directorate has used the exemption under AASB 13.C3 'Fair Value Measurement' that comparative information for periods before initial application of the standard need not be applied.

Transfers Between Categories

There have been no transfers between Levels 1, 2 and 3 during the reporting period.

Valuation Techniques, Inputs and Processes

Level 2 Valuation Techniques and Inputs

Valuation Technique: The valuation technique used to value land and buildings is the market approach that reflects recent transaction prices for similar properties and buildings (comparable in location and size).

Inputs: Prices and other relevant information generated by market transactions involving comparable land and buildings were considered. Regard was taken of the Crown Lease terms and tenure, The Australian Capital Territory Plan and the National Capital Plan, where applicable, as well as current zoning.

Level 3 Valuation Techniques and Inputs

Valuation Technique: Land where there is no active market or significant restrictions is valued through the market approach which values a selection of land with similar approximate utility.

Valuation Technique: Buildings, improvements to land and community and heritage assets were considered specialised assets by the valuers and measured using the cost approach that reflects the cost to a market participant to construct assets of comparable utility adjusted for obsolescence. For Buildings, historical cost per square metre of floor area was also used in measuring fair value.

Inputs: In determining the value of land with similar approximate utility significant adjustment to market based data was required.

Inputs: In determining the value of buildings, improvements to land and community and heritage assets regard was given to the age and condition of the assets, their estimated replacement cost and current use. This required the use of data internal to the Education and Training Directorate.

There has been no change to the above valuation techniques during the year.

Transfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the transfer.

Fair Value Measurements using Significant Unobservable Inputs (Level 3)

Description and Fair Value as at 30 June 2014 $'000	Valuation Technique(s)	Significant Unobservable Inputs	Range of Unobservable Inputs (Weighted Average)	Relationship of Unobservable Inputs to Fair Value
Land $316,904	Market Approach -Direct comparison.	Selection of land with similar approximate utility.	$100 per square metre to $150 per square metre	Higher value of similar land increases estimated fair value.
Buildings and Improvements to Land including Community and Heritage Assets $1,447,632	Depreciated Replacement Cost	Consumed economic benefit/ obsolescence of asset.	2 percent to 5 percent	Greater consumption of economic benefit or increased obsolescence lowers fair value.

Note 25. Intangible Assets

The Directorate has externally purchased software. Other Intangibles recognised below are all externally purchased.

Computer Software Externally Generated Software	2014 $'000	2013 $'000
Computer Software at Cost	1,017	1,010
Less: Accumulated Amortisation	(259)	(115)
Total Computer Software¹	758	895

The movement primarily relates to annual amortisation ($0.144 million) of the assets in 2013-14.

Note 26. Capital Works In Progress

Capital works in progress are assets being constructed over periods of time.

Capital Works In Progress	2014 $'000	2013 $'000
Capital Work in Progress	16,238	17,622
Total	16,238	17,622

Reconciliation of Capital Works in Progress The following table shows the movement of capital works in progress during the reporting period.	2014 $'000	2013 $'000
Balance at the Beginning of the Reporting Period	17,622	38,543
Additions	11,365	15,937
Capital Works in Progress Completed and Transferred to Property, Plant and Equipment	(12,749)	(36,858)
Carrying Amount at the End of the Reporting Period	16,238	17,622

Note 27. Other Assets

Other Current Assets	2014 $'000	2013 $'000
Prepayments	1,045	2,098
Total	1,045	2,098

Note 28. Payables

Payables	2014 $'000	2013 $'000
Payables - ACT Government Entities	53	34
Payables - Non-ACT Government Entities	414	202
Accrued Expenses¹	7,985	5,207
Total	8,452	5,443

The increase primarily relates to capital accruals forinformation communication technology projects in particular Sustaining Smart Schools.

Payables are aged as followed	2014 $'000	2013 $'000
Not Overdue	8,283	5,406
Overdue for Less than 30 Days	144	24
Overdue for 30 to 60 Days	2	1
Overdue for More than 60 Days	23	12
Total	8,452	5,443

Classification of ACT Government/Non-ACT Government Payables

Payables with ACT Government Entities	2014 $'000	2013 $'000
Payables	53	34
Accrued Expenses	5,678	3,792
Total Payables with ACT Government Entities	5,731	3,826

Payables with ACT Non-Government Entities	2014 $'000	2013 $'000
Payables	414	202
Accrued Expenses	2,307	1,415
Total Payables with ACT Non-Government Entities	2,721	1,617

Total	2014 $'000	2013 $'000
Total	8,452	5,443

Note 29. Finance Leases

Finance Leases Finance lease commitments are payable as follows:	2014 $'000	2013 $'000
Within one year	81	49
Later than one year but not later than five years	79	60
Minimum Lease Payments	160	109
Less: Future Finance Lease Charges	(14)	(5)
Total Present Value of Minimum Finance Lease Payments	146	104

Comprising:	2014 $'000	2013 $'000
Within one year	75	44
Later than one year but not later than five years	71	60
Minimum Lease Payments	146	104

Current and Non-current	2014 $'000	2013 $'000
Current	75	44
Non-current	71	60
Total	146	104

Note 30. Employee Benefits

Current Employee Benefits	2014 $'000	2013 $'000
Annual Leave	31,414	28,857
Long Service Leave	82,813	75,439
Accrued Salaries	17,811	12,061
Purchased Leave	358	358
Total Current Employee Benefits	132,396	116,715

Non-Current Employee Benefits	2014 $'000	2013 $'000
Long Service Leave	12,595	11,878
Total Non-Current Employee Benefits	12,595	11,878

Total¹	2014 $'000	2013 $'000
Total¹	144,991	128,593

Estimate of when Leave is Payable

Estimated Amount Payable within 12 months	2014 $'000	2013 $'000
Annual Leave	24,372	22,364
Long Service Leave	6,353	6,445
Accrued Salaries	17,811	12,061
Purchased Leave	358	358
Total Employee Benefits Payable within 12 months	48,894	41,228

Estimated Amount Payable after 12 months	2014 $'000	2013 $'000
Annual Leave	7,042	6,493
Long Service Leave	89,055	80,872
Total Employee Benefits Payable after 12 months	96,097	87,365

Total	2014 $'000	2013 $'000
Total	144,991	128,593

The increase primarily relates to an increase in the rate used to estimate the present value of future long service leave payments, increased wages and salaries accrual associated with increased pay rates in the enterprise bargaining agreement and the back payment of the non-teaching enterprise bargaining agreement.

Note 31. Other Liabilities

Current Other Liabilities	2014 $'000	2013 $'000
International Students Revenue Received in Advance	4,155	3,233
Schools Revenue Received in Advance¹	1,551	938
Total	5,706	4,171

Non-Current Other Liabilities	2014 $'000	2013 $'000
Other Loans²	2,589	73
Total	2,589	73

Total Other	2014 $'000	2013 $'000
Total Other	8,295	4,244

The increase relates to additional revenue received in advance from the Embassy of France for the French program at Telopea Park School.
In 2013-14 the Directorate received interest free loans from the former Economic Development Directorate for sustainability projects. The loans will be re-paid over six years.

Note 32. Equity

Asset Revaluation Surplus The Asset Revaluation Surplus is used to record the increments and decrements in the value of the property, plant and equipment.	2014 $'000	2013 $'000
Balance at the Beginning of the Reporting Period	1,012,605	1,012,203
Increment in Land due to Revaluation	55,015	402
Decrement in Buildings and Improvements to Land due to Revaluation¹	(200,985)	-
Total (Decrease)/Increase in the Asset Revaluation Surplus	(145,970)	402
Balance at the End of the Reporting Period	866,635	1,012,605

The decrement primarily relates to a more competitive construction market.

Note 33. Restructure of Administrative Arrangements

There have been no restructures of Administrative Arrangements that impacted the Directorate in 2013-14. The 2012-13 comparative reflects the transfers on November 2012, a restructuring of administrative arrangements occurred between the Directorate and Community Services Directorate (CSD) involving the transfer of CSD's responsibility regarding education and child care services. The assets and liabilities transferred as part of the restructuring of administrative arrangements at the date of transfer were as follows:

Restructure of Administrative Arrangements	Transferred Amounts 2013-14 $'000	Transferred Amounts 2012-13 $'000
Total Revenue	^-	2,509
Total Expenses	^-	2,952

Assets	Transferred Amounts 2013-14 $'000	Transferred Amounts 2012-13 $'000
Land	^-	16,062
Buildings	^-	17,197
Capital In Progress	-	2,435
Total Assets Transferred	-	35,694

Liabilities	Transferred Amounts 2013-14 $'000	Transferred Amounts 2012-13 $'000
Employee Benefits	^-	(306)
Total Liabilities Transferred	-	(306)

Total Net Assets Transferred	Transferred Amounts 2013-14 $'000	Transferred Amounts 2012-13 $'000
Total Net Assets Transferred	-	35,388

Note 34. Disaggregated Disclosure of Assets and Liabilities

Year Ended 30 June 2014

Current Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Cash and Cash Equivalents¹	40,696	496	-	29,031	70,223
Receivables	4,265	2	41	-	4,308
Investments	-	-	-	259	259
Other Assets	1,041	-	4	-	1,045
Total Current Assets	46,002	498	45	29,290	75,835

Non-Current Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Investments	1,304	-	-	542	1,846
Property, Plant and Equipment	1,834,014	-	-	-	1,834,014
Intangible Assets	758	-	-	-	758
Capital Works in Progress	16,238	-	-	-	16,238
Total Non-Current Assets	1,852,314	-	-	542	1,852,856

Total Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Total Assets	1,898,316	498	45	29,832	1,928,691

Current Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Payables	7,857	34	561	-	8,452
Finance Leases	75	-	-	-	75
Employee Benefits	129,880	530	1,986	-	132,396
Other Liabilities	5,706	-	-	-	5,706
Total Current Liabilities	143,518	564	2,547	-	146,629

Non-Current Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Finance Leases	71	-	-	-	71
Employee Benefits	12,356	50	189	-	12,595
Other Liabilities	2,589	-	-	-	2,589
Total Non-Current Liabilities	15,016	50	189	-	15,255

Total Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Total Liabilities	158,534	614	2,736	-	161,884

Net Assets / (Liabilities)	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Net Assets / (Liabilities)	1,739,782	(116)	(2,691)	29,832	1,766,807

Cash and cash equivalents have been included in the 'Unallocated' column above as this class cannot be reliably attributed to the Directorate's output classes. As the amount in cash and cash equivalents held by the Directorate is comprised of a number of disparate components, no single allocation driver can be used to reliably attribute this asset class. The components include working capital, cash for un-presented cheques and for specific purpose payments.

Year Ended 30 June 2013

Current Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Cash and Cash Equivalents¹	36,787	-	-	27,151	63,938
Investments	-	-	-	260	260
Receivables	6,671	1	64	-	6,736
Other Assets	760	-	1,338	-	2,098
Total Current Assets	44,218	1	1,402	27,411	73,032

Non-Current Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Investments	1,292	-	-	539	1,831
Property, Plant and Equipment	1,964,954	-	-	-	1,964,954
Intangible Assets	895	-	-	-	895
Capital Works in Progress	17,622	-	-	-	17,622
Total Non-Current Assets	1,984,763	-	-	539	1,985,302

Total Assets	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Total Assets	2,028,981	1	1,402	27,950	2,058,334

Current Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Payables	5,327	6	110	-	5,443
Finance Leases	44	-	-	-	44
Employee Benefits	116,436	60	219	-	116,715
Other Liabilities	4,171	-	-	-	4,171
Total Current Liabilities	125,978	66	329	-	126,373

Non-Current Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Finance Leases	60	-	-	-	60
Employee Benefits	11,810	26	42	-	11,878
Other Liabilities	73	-	-	-	73
Total Non-Current Liabilities	11,943	26	42	-	12,011

Total Liabilities	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Total Liabilities	137,921	92	371	-	138,384

Net Assets / (Liabilities)	Output Class 1 $'000	Output Class 2 $'000	Output Class 3 $'000	Unallocated $'000	Total $'000
Net Assets / (Liabilities)	1,891,060	(91)	1,031	27,950	1,919,950

Cash and cash equivalents have been included in the 'Unallocated' column above as this class cannot be reliably attributed to the Directorate's output classes. As the amount in cash and cash equivalents held by the Directorate is comprised of a number of disparate components, no single allocation driver can be used to reliably attribute this asset class. The components include working capital, cash for un-presented cheques and for specific purpose payments.

Note 35. Financial Instruments

Details of the significant policies and methods adopted, including the criteria for recognition, the basis of measurement, with respect to each class of financial asset and financial liability are disclosed in Note 2 - Summary of Significant Accounting Policies.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Directorate's financial assets consist of cash and cash equivalents, investments and receivables and its financial liabilities are comprised of payables and finance leases. The Directorate's maximum exposure to interest rate risk relating to these financial assets and liabilities is shown below in the table later in this note on 'Maturity Analysis and Exposure to Interest Rates'.

As receivables and payables are held in non-interest bearing arrangements and finance leases are held in fixed interest arrangements, the Directorate is not exposed to movements in interest rates in respect of these financial assets and liabilities.

A significant proportion of the Directorate's financial assets consist of cash and cash equivalents. As these are held in floating interest arrangements with the Territory's Banking Provider, the Directorate is exposed to movements in the amount of interest it may earn on cash and cash equivalents.

As the Directorate's operating cash flows are not significantly dependant on interest earned from cash and cash equivalents, a sensitivity analysis of interest rate risk has not been performed.

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.

Financial assets consist of cash, investments and receivables. The Directorate's maximum exposure to credit is limited to the amount of these financial assets net of any allowance made for impairment. This is shown below in the table 'Maturity Analysis and Exposure to Interest Rates'.

Cash and investment accounts are held with high credit quality financial institutions under whole of government banking arrangements. Cash at the bank is held with the Westpac Bank and cash not immediately required is invested with the Territory Banking Account. The Chief Minister, Treasury and Economic Development Directorate coordinates the investment of this money with various fund managers. These fund managers have the discretion to invest money in a variety of different investments within certain parameters.

Credit risk for investments is managed by the Directorate through only investing with the Territory Banking Account, which has appropriate investment criteria for the external fund manager engaged to manage the Territory's surplus funds and therefore the credit risk is considered low.

Liquidity Risk

Liquidity risk is the risk that the Directorate will not be able to meet its financial obligations as they fall due.

The Directorate's maximum exposure to liquidity risk is shown below in the table later in this note on 'Maturity Analysis and Exposure to Interest Rates'. This note discloses when the Directorate expects its financial assets and financial liabilities to mature.

Appropriations received to fund operations are drawn down progressively throughout the year to meet the operating requirements. Under the cash management framework, the Directorate cannot hold excess cash, however, in the event of cash pressure, access to additional appropriation can be obtained from the Territory Banking Account.

Price Risk

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market price (other than arising from interest rate risk or currency risk).

The only price risk which the Directorate is exposed to results from its investments in the Fixed Interest and Cash Enhanced Portfolio. The Directorate has units in the Fixed Interest Portfolio that fluctuate in value. The price fluctuations in the units of the Fixed Interest Portfolio are caused by movements in the underlying investments of the portfolio. To limit price risk, all bonds that make up the underlying investments of the Fixed Interest Portfolio must have a long term credit rating.

Cash and cash equivalents do not have a price risk.

The Directorate's exposure to price risk and the management of this risk has not significantly changed since last reporting period. A sensitivity analysis has not been undertaken for the price risk of the Directorate as it has been determined that the possible impact on profit and loss or total equity from fluctuations in price is immaterial.

Currency Risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes to foreign currency rates.

The Directorate is not exposed to currency risk as all of its transactions are conducted in Australian dollars.

Unrecognised Financial Assets and Financial Liabilities

There were no unrecognised financial assets and liabilities.

Fair Value of Financial Assets and Liabilities

The carrying amounts and fair values of financial assets and financial liabilities to the end of the reporting period are:

Financial Assets	Carrying Amount 2014 $'000	Fair Value 2014 $'000	Carrying Amount 2013 $'000	Fair Value 2013 $'000
Cash and Cash Equivalents	70,223	70,223	63,938	63,938
Investment with the Territory Banking Account	2,105	2,105	2,091	2,091
Receivables¹	620	620	4,132	4,132
Total	72,948	72,948	70,161	70,161

Financial Liabilities	Carrying Amount 2014 $'000	Fair Value 2014 $'000	Carrying Amount 2013 $'000	Fair Value 2013 $'000
Payables	8,452	8,452	5,443	5,443
Finance Leases	146	146	104	104
Other Loans	2,589	2,589	73	73
Total	11,187	11,187	5,620	5,620

Receivables reported under Financial Assets do not include receivables relating to goods and service tax in accordance with AASB 132 'Financial Instruments'

Fair Value Hierarchy

The carrying amount of financial assets measured at fair value, as well as the methods used to estimate the fair value are summarised in the table below. All other financial assets and liabilities are measured, subsequent to initial recognition, at amortised cost and as such are not included in the table below.

2014 Classification According to the Fair Value Hierarchy

Financial Assets	Level 1 $'000	Level 2 $'000	Level 3 $'000	Total $'000
Investment with the Territory Banking Account - Cash Enhanced Portfolio	-	259	-	259
Investment with the Territory Banking Account - Fixed Interest Portfolio	-	1,846	-	1,846
Total	-	2,105	-	2,105

Transfer between Categories

There have been no transfers of financial assets or financial liabilities between Level 1 and Level 2 during the reporting period.

The Fair Value Hierarchy for financial instruments measured at fair value is shown for the year ended 30 June 2013.

2103 Classification According to the Fair Value Hierarchy

Financial Assets	Level 1 $'000	Level 2 $'000	Level 3 $'000	Total $'000
Investment with the Territory Banking Account - Cash Enhanced Portfolio	-	260	-	260
Investment with the Territory Banking Account - Fixed Interest Portfolio	-	1,831	-	1,831
Total	-	2,091	-	2,091

Transfer between Categories

There have been no transfers of financial assets or financial liabilities between Level 1 and Level 2 during the reporting period.

Maturity Analysis and Exposure to Interest Rates

The following tables set out the Directorate's maturity analysis for financial assets and liabilities as well as the exposure to interest rates, including the weighted average interest rates by maturity period as at 30 June 2014. Except for non-current payables, financial assets and liabilities which have a floating interest rate or are non-interest bearing will mature in 1 year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis.

The Directorate does not hold any collateral as security relating to financial assets.

As at 30 June 2014

Financial Instruments

Financial Assets	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Cash and Cash Equivalents	21	2.35%	42,649	-	-	-	27,574	70,223
Investments with the Territory Banking Account	23			-	-	-	2,105	2,105
Receivables	22			-	-	-	620	620
Total			42,649	-	-	-	30,299	72,948

Financial Liabilities	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Payables	28		-	-	-	-	(8,452)	(8,452)
Other Liabilities	31		-	-	-	-	(2,589)	(2,589)
Finance Leases	29	6.29%	-	(81)	(79)	-	-	(160)
Total			-	(81)	(79)	-	(11,041)	(11,201)

Net Financial Assets/ (Liabilities)	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Net Financial Assets/ (Liabilities)			42,649	(81)	(79)	-	19,258	61,747

As at 30 June 2013

Financial Instruments

Financial Assets	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Cash and Cash Equivalents	21	2.99%	44,794	-	-	-	19,144	63,938
Investments with the Territory Banking Account	23		-	-	-	-	2,091	2,091
Receivables	22		-	-	-	-	4,132	4,132
Total			44,794	-	-	-	25,367	70,161

Financial Liabilities	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Payables	28		-	-	-	-	(5,443)	(5,443)
Other Liabilities	31		-	-	(73)		-	(73)
Finance Leases	29	6.85%	-	(49)	(60)	-	-	(109)
Total			-	(49)	(133)	-	(5,443)	(5,625)

Net Financial Assets/ (Liabilities)	Note No.	Weighted Average Interest Rate	Floating Interest Rate Rate	Fixed interest maturing in: 1 Year or Less $'000	Fixed interest maturing in: Over 1 Year to 5 Years $'000	Fixed interest maturing in: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Net Financial Assets/ (Liabilities)			44,794	(49)	(133)	-	19,924	64,536

Carrying Amount of Each Category of Financial Asset and Financial Liability

Financial Assets	2014 $'000	2013 $'000
Financial Assets at Fair Value through the Profit and Loss	2,105	2,091
Loans and Receivables	620	4,132

Financial Liabilities	2014 $'000	2013 $'000
Financial Liabilities Measured at Amortised Cost	11,187	5,620

The Directorate does not have any financial assets in the 'Available for Sale' category or the 'Held to Maturity' category and as such these categories are not included above. The Directorate does not have any financial liabilities in the 'Financial Liabilities at Fair Value through Profit and Loss' category and, as such, this category is not included above.

Gains / (Losses) on Each Category of Financial Asset and Financial Liability

Gains / (Losses) on Financial Assets	2014 $'000	2013 $'000
Financial Assets at Fair Value through the Profit and Loss	15	-
Loans and Receivables	-	-

Gains / (Losses) Financial Liabilities	2014 $'000	2013 $'000
Financial Liabilities Measured at Amortised Cost	-	-

Note 36. Commitments

Capital Commitments

Capital commitments contracted at reporting date that have not recognised as liabilities, are payable as follows:

Capital Commitments - Property, Plant and Equipment Payable:	2014 $'000	2013 $'000
Within one year	17,522	42,597
Later than one year but not later than five years	4,473	7,639
Total¹	21,995	50,236

The decrease is primarily due to the completion of a number of major projects including the Franklin Early Childhood School and Bonner Primary School.

Other Commitments

Other commitments contracted at reporting date that have not been recognised as liabilities, are payable as follows:	2014 $'000	2013 $'000
Within one year	41,771	35,880
Later than one year but not later than five years	38,208	41,793
Total	79,979	77,673

Operating Lease Commitments

Other commitments contracted at reporting date that have not been recognised as liabilities, are payable as follows:	2014 $'000	2013 $'000
Within one year	2,407	2,609
Later than one year but not later than five years	2,505	2,625
Total	4,912	5,234

All amounts shown in the commitment note are inclusive of goods and services tax.

Note 37. Contingent Liabilities and Contingent Assets

Contingent Liabilities

As at 30 June 2014 the Directorate had contingent liabilities in relation to known personal injury cases not settled of $5.276m. As at 30 June 2013 the liability was $6.183m.

Contingent Liabilities	2014 $'000	2013 $'000
The estimated liability for known personal injury litigation cases not settled ¹	5,276	6,183
Total	5,276	6,183

It is expected that the contingent liability will be offset by insurance, however, the amount cannot be accurately estimated as at 30 June 2014.

There were no contingent assets in 2013-14 or 2012-13.

Note 38. Interest in a Jointly Controlled Entity

Gold Creek Primary Schooloperates adjacent to the Holy Spirit Primary School that is operated by the Catholic Education Office. Both schools share joint facilities including a hall/gymnasium, canteen, library, car park and meeting rooms. The shared facilities are managed by a Joint Facilities Management Committee which was created under a formal agreement in December 1995 between the ACT Government and the Catholic Education Office. All assets and liabilities relating to the shared facilities are owned by the ACT Government and Catholic Education Office in accordance with the participating share of each party, which is 53% for the ACT Government and 47% for the Catholic Education Office. The joint venture is accounted for using the initial equity and distribution method.

Interest in a Jointly Controlled Entity Share of the Joint Venture Profit is as follows:	2014 $'000	2013 $'000
Revenue	66	53
Expenses	(141)	(125)
Operating (Deficit)	(75)	(72)

Interest in a Jointly Controlled Entity Share of the Joint Venture Assets and Liabilities	2014 $'000	2013 $'000
Current Assets	48	64
Non-Current Assets	3,397	3,063
Total Assets	3,445	3,127

Interest in a Jointly Controlled Entity Total Liabilities	2014 $'000	2013 $'000
Current Liabilities	8	7
Non-Current Liabilities	-	-
Total Liabilities	8	7

Net Assets	2014 $'000	2013 $'000
Net Assets	3,437	3,120

Share of the Joint Venture Cash	2014 $'000	2013 $'000
Share of the Joint Venture Cash	37	52

Note 39. Cash Flow Reconciliation

(a) Reconciliation of Cash and Cash Equivalents at the End of the Reporting Period in the Cash Flow Statement to the Equivalent Items in the Balance Sheet	2014 $'000	2013 $'000
Total Cash and Cash Equivalents Recorded in the Balance Sheet	70,223	63,937
Cash and Cash Equivalents at the End of the Reporting Period as Recorded in the Cash Flow Statement	70,223	63,937

(b) Reconciliation of Net Cash Inflows from Operating Activities to the Operating (Deficit)	2014 $'000	2013 $'000
Operating (Deficit)	(74,582)	(59,953)

Add/(Less) Non-Cash Items	2014 $'000	2013 $'000
Depreciation	65,031	65,323
Assets Written Off	98	337
(Gain) from Sale of Assets	(25)	(30)
Unrealised (Gain) on Investment	(15)	-
Cash Before Changes in Operating Assets and Liabilities	(9,493)	5,677

Changes in Operating Assets and Liabilities	2014 $'000	2013 $'000
Decrease/(Increase) in Receivables	2,371	(2,124)
Decrease in Prepaid Expenditure	1,053	550
Increase/(Decrease) in Payables	340	(312)
Increase in Employee Benefits	16,398	6,752
Increase in Revenue Received in Advance	1,535	318
Net Changes in Operating Assets and Liabilities	21,697	5,184

Net Cash Inflows from Operating Activities	2014 $'000	2013 $'000
Net Cash Inflows from Operating Activities	12,204	10,861

(c) Non-Cash Financing and Investing Activities The Directorate has entered into finance lease arrangements for plant and equipment.	2014 $'000	2013 $'000
Plant and Equipment	98	93

Education And Training Directorate
Territorial Financial Statements
For The Year Ended
30 June 2014

Education and Training Directorate
Statement of Income and Expenses on Behalf of the Territory
For the Year Ended 30 June 2014

Income Revenue	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Payments for Expenses on Behalf of the Territory	40	220,648	222,146	202,799
Fees	41	14	-	14
Total Income		220,662	222,146	202,813

Expenses	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Grants and Purchased Services	42	220,648	222,146	202,799
Transfer to Government	43	14	-	14
Total Expenses		220,662	222,146	202,813

Operating Result	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Operating Result		-	-	-

Comprehensive Income	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Other Comprehensive Income		-	-	-
Total Comprehensive Income		-	-	-

The above Statement of Income and Expenses on Behalf of the Territory should be read in conjunction with the accompanying notes.

Education and Training Directorate
Statement of Assets and Liabilities on Behalf of the Territory
As at 30 June 2014

Current Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Cash and Cash Equivalents	44	80	50	261
Receivables	45	7	23	-
Total Current Assets		87	73	261

Total Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Assets		87	73	261

Current Liabilities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Payables	46	87	73	261
Total Current Liabilities		87	73	261

Total Liabilities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Total Liabilities		87	73	261

Net Assets	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Assets		-	-	-

Equity	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Accumulated Funds		-	-	-
Total Equity		-	-	-

The above Statement of Assets and Liabilities on Behalf of the Territory should be read in conjunction with the accompanying notes.

Net Assets and Total Equity has remained at nil, therefore a Statement of Changes in Equity on Behalf of the Territory has not been prepared.

Education and Training Directorate
Cash Flow Statement on Behalf of the Territory
For the Year Ended 30 June 2014

Cash Flows from Operating Activities

Receipts	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Cash from Government for Expenses on Behalf of the Territory	236,994	238,609	218,114
Fees	14	-	14
Goods and Services Tax Received	5,474	5,588	5,119
Total Receipts from Operating Activities	242,482	244,197	223,247

Payments	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Grants and Purchased Services	237,167	238,609	217,922
Transfer of Territory Receipts to the ACT Government	14	-	14
Goods and Services Tax Paid	5,482	5,588	5,100
Total Payments for Operating Activities	242,663	244,197	223,036

Net Cash (Outflows)/Inflows from Operating Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Cash (Outflows)/Inflows from Operating Activities	48	(181)	-	211

Cash Flows from Operating Activities	Note No.	Actual 2014 $'000	Original Budget 2014 $'000	Actual 2013 $'000
Net Cash Flows from Investing Activities		-	-	-
Net Cash Flows from Financing Activities		-	-	-
Net (Decrease)/Increase in Cash and Cash Equivalents		(181)	-	211
Cash and Cash Equivalents at the Beginning of the Reporting Period		261	50	50
Cash and Cash Equivalents at the End of the Reporting Period	48	80	50	261

The above Cash Flow Statement on Behalf of the Territory should be read in conjunction with the accompanying notes.

Education and Training Directorate
Territorial Statement of Appropriation
For the Year Ended 30 June 2014

Expenses on Behalf of the Territory	Original Budget 2014 $'000	Total Appropriated 2014 $'000	Appropriation Drawn 2014 $'000	Appropriation Drawn 2013 $'000
Expenses on Behalf of the Territory	238,609	240,511	236,994	218,114
Total Territorial Appropriation	238,609	240,511	236,994	218,114

The above Territorial Statement of Appropriation should be read in conjunction with the notes below.

The difference between the original budgetand total amount appropriated relates to increased Commonwealth grants ($1.464m) for National Education Reform (Students First) and the transfer of funds from 2012-13 for the Interest Subsidy Scheme ($0.401m) and Reward for Great Teachers National Partnership ($0.037m).
The difference between the total appropriatedand appropriation drawn mainly relates to actual Commonwealth grants on-passed to non government schools being below the original Commonwealth Budget Estimates ($0.578m) and the rollover of funds to 2014-15 for the Interest Subsidy Scheme ($1.974m) due to lower interest rates and finalisation of loans under the scheme and Supporting Non Government Preschools program ($0.700m) as grant recipients are yet to be finalised.

Education and Training Directorate
Territorial Note Index

Income Notes

Note 40. Payment for Expenses on behalf of the Territory
Note 41. Fees

Expenses Notes

Note 42. Grants and Purchased Services
Note 43. Transfer to Government

Assets Notes

Note 44. Cash and Cash Equivalents
Note 45. Receivables

Liabilities Notes

Note 46. Payables

Other Notes

Note 47. Financial Instruments
Note 48. Cash Flow Reconciliation

Education and Training Directorate
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2014

Note 40. Payment for Expenses On Behalf Of the Territory

Under the Financial Management Act 1996, funds can be appropriated for expenses incurred on behalf of the Territory. The Directorate receives this appropriation to fund a number of expenses incurred on behalf of the Territory, the main one being the payment of grants to non-government schools. Refer Note 42 - Grants and Purchased Services for the details of the expenses.

Payment for Expenses On Behalf Of the Territory	2014 $'000	2013 $'000
Funding Received to Meet Expenses Incurred on Behalf of the Territory¹	220,648	202,799
Total Payment for Expenses on Behalf of the Territory	220,648	202,799

1. The increase from 2012-13 primarily relates to increased Commonwealth grants due to indexation and enrolment increases.

Note 41. Fees

Fees	2014 $'000	2013 $'000
Fees for Regulatory Services – Training	14	14
Total	14	14

Note 42. Grants and Purchased Services

Payments for grants and subsidies were as follows:

Payments for grants and subsidies were as follows:	2014 $'000	2013 $'000
Grants - Non-Government Schools¹	220,015	202,232
Bursary Scheme	601	523
Block Release Grants	32	44
Total	220,648	202,799

1. The increase from 2012-13 primarily relates to increased Commonwealth grants due to indexation and enrolment increases.

Note 43. Transfer to Government

Transfers to Government primarily relates to fees that are collected on behalf of the Territory – refer to Note 41 – Fees.

Transfer to Government	2014 $'000	2013 $'000
Transfer to Government	14	14
Total	14	14

Note 44. Cash and Cash Equivalents

Cash and Cash Equivalents	2014 $'000	2013 $'000
Cash at Bank	80	261
Total	80	261

Note 45. Receivables

Current Receivables	2014 $'000	2013 $'000
Goods and Services Tax Receivable from the Australian Taxation Office	7	-
Total	7	-

Note 46. Payables

All payables at 30 June 2014 are current and not overdue.

Current Payables	2014 $'000	2013 $'000
Payables	87	261
Total Current Payables	87	261

Payables	2014 $'000	2013 $'000
Total Payables	87	261

Note 47. Financial Instruments

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The financial assets held by the Directorate on behalf of the Territory consist of cash and cash equivalents and receivables and its financial liabilities are comprised of payables. As cash, receivables and payables are held in non-interest bearing arrangements, the Directorate on behalf of the Territory is not exposed to movements in interest rates in respect of these financial assets and liabilities, as shown in the table 'Fair Value of Financial Assets and Liabilities'.

As the Territory's operating cash flows are not dependant on interest earned from cash and cash equivalents, a sensitivity analysis of interest rate risk has not been performed.

Credit Risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. Receivables generally relate to either Commonwealth, ACT or non government agencies which have strong credit histories. Credit risk is therefore considered to be low.

Financial assets consist of cash and receivables. This is shown below in the table 'Maturity Analysis and Exposure to Interest Rates'.

Liquidity Risk

Liquidity risk is the risk that the Directorate on behalf of the Territory will not be able to meet its financial obligations as they fall due.

Expenses on behalf of the Territory appropriations are drawn down progressively throughout the year to meet operating requirements. In the event of cash pressure, access to additional funding may be obtained from the Territory Banking Account.

Price Risk

Price risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price.

The Directorate on behalf of the Territory is not exposed to price risk as its financial assets, consisting of cash and receivables are not affected by movements in market price.

Currency Risk

Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes to foreign currency rates.

The Directorate on behalf of the Territory is not exposed to currency risk as all of its transactions are made in Australian dollars.

Unrecognised Financial Assets and Financial Liabilities

There were no unrecognised financial assets and liabilities.

Fair Value of Financial Assets and Liabilities

Financial Assets	Carrying Amount 2014 $'000	Fair Value 2014 $'000	Carrying Amount 2013 $'000	Fair Value 2013 $'000
Cash and Cash Equivalents	80	80	261	261
Total	80	80	261	261

Financial Liabilities	Carrying Amount 2014 $'000	Fair Value 2014 $'000	Carrying Amount 2013 $'000	Fair Value 2013 $'000
Payables	80	80	261	261
Total	80	80	261	261

The following table sets out the Directorate's maturity analysis for financial assets and liabilities as well as the exposure to interest rates, including the weighted average interest rates by maturity period as at 30 June 2014. All financial assets and liabilities which are non-interest bearing will mature in 1 year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis.

Financial Instruments

Year 2014 Financial Assets	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Cash and Cash Equivalents	44	-	-	-	-	80	80
Total Financial Assets		-	-	-	-	80	80

Year 2014 Financial Liabilities	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Payables	46	-	-	-	-	(80)	(80)
Total Financial (Liabilities)		-	-	-	-	(80)	(80)

Year 2014 Net Financial Assets/(Liabilities)	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Net Financial Assets/(Liabilities)		-	-	-	-	-	-

The following table sets out the Directorate's maturity analysis for financial assets and liabilities as well as the exposure to interest rates, including the weighted average interest rates by maturity period as at 30 June 2013. All financial assets and liabilities which are non-interest bearing will mature in 1 year or less. All amounts appearing in the following maturity analysis are shown on an undiscounted cash flow basis.

Financial Instruments

Year 2013 Financial Assets	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Cash and Cash Equivalents	44	-	-	-	-	261	261
Total Financial Assets		-	-	-	-	261	261

Year 2013 Financial Liabilities	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Payables	46	-	-	-	-	(261)	(261)
Total Financial (Liabilities)		-	-	-	-	(261)	(261)

Year 2013 Net Financial Assets/(Liabilities)	Note No.	Floating Interest Rate $'000	Fixed Interest Maturing In: 1 Year or Less $'000	Fixed Interest Maturing In: Over 1 Year to 5 Years $'000	Fixed Interest Maturing In: Over 5 Years $'000	Non-Interest Bearing $'000	Total $'000
Net Financial Assets/(Liabilities)		-	-	-	-	-	-

Fair Value Hierarchy

All financial assets and liabilities are measured, subsequent to initial recognition at amortised cost and as such no Fair Value Hierarchy disclosures have been made.

Carrying Amount of Each Category of Financial Asset and Financial Liability

Financial Assets	2014 $'000	2013 $'000
Financial Assets at Fair Value through the Profit and Loss	-	-
Loans and Receivables	-	-

Financial Liabilities	2014 $'000	2013 $'000
Financial Liabilities Measured at Amortised Cost	80	261

Note 48. Cash Flow Reconciliation

a) Reconciliation of Cash and Cash Equivalents at the end of the end of the Reporting Period in the Cash Flow Statement on Behalf of the Territory to the Related Items in the Statement of Assets and Liabilities on Behalf of the Territory.	2014 $'000	2013 $'000
Total Cash Disclosed on the Statement of Assets and Liabilities on Behalf of the Territory	80	261
Cash at the End of the Reporting as Recorded in the Cash Flow Statement on Behalf of the Territory	80	261

b) Reconciliation of Net Cash (Outflows) / Inflows from Operating Activities to the Operating Result	2014 $'000	2013 $'000
Operating Result	-	-
Cash Before Changes in Operating Assets and Liabilities	261	50

Changes in Operating Assets and Liabilities	2014 $'000	2013 $'000
(Increase)/Decrease in Receivables	(7)	23
(Decrease)/Increase in Payables	(174)	188
Net Changes in Operating Assets and Liabilities	(181)	211

Net Cash (Outflows)/Inflows from Operating Activities	2014 $'000	2013 $'000
Net Cash (Outflows)/Inflows from Operating Activities	(181)	211

Schooling

Early Childhood

Public School Life

Support for Students and Families

Our Priorities

Working with Us

About Us

F2 Financial Statements

Financial Statements For the Year Ended 30 June 2014 Education and Training Directorate

Education and Training Directorate Financial Statements For the Year Ended 30 June 2014 Statement of Responsibility

Education and Training Directorate Financial Statements For the Year Ended 30 June 2014 Statement by the Chief Finance Officer

Education and Training Directorate Controlled Financial Statements For The Year Ended 30 June 2014

Education and Training Directorate Operating Statement For the Year Ended 30 June 2014

Education and Training Directorate Balance Sheet As at 30 June 2014

Education and Training Directorate Statement of Changes in Equity For the Year Ended 30 June 2014

Education and Training Directorate Statement of Changes in Equity - Continued For the Year Ended 30 June 2014

Education and Training Directorate Cash Flow Statement For the Year Ended 30 June 2014

Education and Training Directorate Summary of Output Classes For the Year Ended 30 June 2014

Education and Training Directorate Operating Statement for Output Class 1 – Public School Education For the Year Ended 30 June 2014

Description

Education and Training Directorate Operating Statement for Output Class 2 – Non Government School Education For the Year Ended 30 June 2014

Description

Education and Training Directorate Operating Statement for Output Class 3 – Vocational Education and Training For the Year Ended 30 June 2014

Description

Education and Training Directorate Controlled Statement of Appropriation For the Year Ended 30 June 2014

Column Heading Explanations

Variances between 'Original Budget' and 'Total Appropriated'

Government Payment for Outputs

Capital Injections

Variances between 'Total Appropriated' and 'Appropriation Drawn'

Government Payment for Outputs

Capital Injections

Education and Training Directorate Controlled - Note Index

General Notes

Income Notes

Gains

Expense Notes

Asset Notes

Liability Notes

Equity Notes

Other Notes

Education and Training Directorate Notes to and Forming Part of the Financial Statements For the Year Ended 30 June 2014

Note 1. Objectives of the Directorate

Operations and Principal Activities

Note 2. Summary of Significant Accounting Policies

(a) Basis of Accounting

(b) Controlled and Territorial Items

(c) The Reporting Period

(d) Comparative Figures

(e) Rounding

(f) Revenue Recognition

(g) Resources Received and Provided Free of Charge

(h) Repairs and Maintenance

(i) Borrowing Costs

(j) Waivers of Debt

(k) Current and Non-Current Items

(l) Impairment of Assets

(m) Cash and Cash Equivalents

(n) Receivables

(o) Investments

(p) Acquisition and Recognition of Property, Plant and Equipment

(q) Measurement of Property, Plant and Equipment after Initial Recognition

(r) Intangible Assets

(s) Depreciation and Amortisation of Non-Current Assets

(t) Payables

(u) Joint Venture

(v) Leases

(w) Employee Benefits

(x) Superannuation

(y) Equity Contributed by the ACT Government

(z) Insurance

(aa) Taxation

(ab) Contingent Liabilities and Assets

(ac) Significant Accounting Judgements and Estimates

(ad) After Balance Date Events

(ae) Going Concern

(af) Impact of Accounting Standards Issued But Yet To Be Applied

Note 3. Change in Accounting Policy and Accounting Estimates and Correction of a Prior Period Error

(a) Change in Accounting Estimates

(b) Change in Accounting Policy

Financial Statements
For the Year Ended
30 June 2014
Education and Training Directorate

Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2014
Statement of Responsibility

Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2014
Statement by the Chief Finance Officer

Education and Training Directorate
Controlled Financial Statements
For The Year Ended
30 June 2014

Education and Training Directorate
Operating Statement
For the Year Ended 30 June 2014

Education and Training Directorate
Balance Sheet
As at 30 June 2014

Education and Training Directorate
Statement of Changes in Equity
For the Year Ended 30 June 2014

Education and Training Directorate
Statement of Changes in Equity - Continued
For the Year Ended 30 June 2014

Education and Training Directorate
Cash Flow Statement
For the Year Ended 30 June 2014

Education and Training Directorate
Summary of Output Classes
For the Year Ended 30 June 2014

Education and Training Directorate
Operating Statement for Output Class 1 – Public School Education
For the Year Ended 30 June 2014

Education and Training Directorate
Operating Statement for Output Class 2 – Non Government School Education
For the Year Ended 30 June 2014

Education and Training Directorate
Operating Statement for Output Class 3 – Vocational Education and Training
For the Year Ended 30 June 2014

Education and Training Directorate
Controlled Statement of Appropriation
For the Year Ended 30 June 2014

Education and Training Directorate
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2014

Education And Training Directorate
Territorial Financial Statements
For The Year Ended
30 June 2014

Education and Training Directorate
Statement of Income and Expenses on Behalf of the Territory
For the Year Ended 30 June 2014

Education and Training Directorate
Statement of Assets and Liabilities on Behalf of the Territory
As at 30 June 2014

Education and Training Directorate
Cash Flow Statement on Behalf of the Territory
For the Year Ended 30 June 2014

Education and Training Directorate
Territorial Statement of Appropriation
For the Year Ended 30 June 2014

Education and Training Directorate
Territorial Note Index