C.2 Financial Statements

Finance Section audit letter signature block

Finance Section audit letter signature block

Continuation of Independent audit Report

Financial Statements
For the Year Ended 30 June 2015
Education and Training Directorate


Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2015

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 2015 and the financial position of the Directorate on that date.

Finance Section audit letter signature block
Director-General
Education and Training Directorate
September 2015


Education and Training Directorate
Financial Statements
For the Year Ended 30 June 2015

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 2015 and the financial position of the Directorate on that date.

Finance Section audit letter signature block
Chief Finance Officer
Education and Training Directorate
September 2015


Education and Training Directorate
Controlled Financial Statements
For The Year Ended 30 June 2015

Education and Training Directorate
Operating Statement
For the Year Ended 30 June 2015

Income Revenue Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Government Payment for Outputs 4 591,010 608,242 576,019
User Charges - ACT Government 5 461 557 362
User Charges - Non-ACT Government 5 17,600 15,928 17,061
Interest 6 1,409 1,250 1,546
Distribution from Investments with the Territory Banking Account 7 82 118 102
Resources Received Free of Charge 8 621 385 535
School and Other Revenue 9 21,358 20,011 21,119
Total Revenue   632,541 646,491 616,744
Gains Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Gains on Investments 10 29 - 15
Other Gains 11 107 - -
Total Gains   136 - 15
Total Income Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Income  632,677 646,491 616,759
Expenses Note
No.
Actual 2015
$'000

Original
Budget 2015
$'000

Actual 2014
$'000
Employee Expenses 12 426,307 420,853 415,426
Superannuation Expenses 13 62,661 62,454 61,266
Supplies and Services 14 64,423 69,717 64,886
Depreciation and Amortisation 15 60,556 67,847 65,031
Grants and Purchased Services 16 21,093 31,902 22,010
Borrowing Costs 17 6 12 8
School and Other Expenses 18 63,699 63,695 62,714
Total Expenses   698,745 716,480 691,341
Operating (Deficit) Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Operating (Deficit)  (66,068) (69,989) (74,582)
Other Comprehensive Income Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
(Decrease) in Asset Revaluation Surplus 32 (1,300) - (145,970)
Total Other Comprehensive (Deficit)  (1,300) - (145,970)
Total Comprehensive (Deficit) Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Comprehensive (Deficit)  (67,368) (69,989) (220,552)

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

Education and Training Directorate
Balance Sheet
As at 30 June 2015

Current Assets Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Cash and Cash Equivalents 21 81,577 79,835 70,223
Receivables 22 5,099 4,732 4,308
Investments 23 260 260 259
Other Assets 27 897 2,098 1,045
Total Current Assets  87,833 86,925 75,835
Non-Current Assets Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Investments 23 1,875 1,831 1,846
Property, Plant and Equipment 24 1,790,347 1,983,950 1,834,014
Intangible Assets 25 2,618 391 758
Capital Works in Progress 26 24,524 42,287 16,238
Total Non-Current Assets  1,819,364 2,028,459 1,852,856
Total Assets Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Assets  1,907,197 2,115,384 1,928,691
Current Liabilities Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Payables 28 6,305 4,059 8,452
Finance Leases 29 - 44 75
Employee Benefits 30 137,770 123,596 132,396
Other Liabilities 31 4,847 4,171 5,706
Total Current Liabilities  148,922 131,870 146,629
Non-Current Liabilities Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Finance Leases 29 - 11 71
Employee Benefits 30 12,016 12,728 12,595
Other Liabilities 31 2,589 73 2,589
Total Non-Current Liabilities  14,605 12,812 15,255
Total Liabilities Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Liabilities  163,527 144,682 161,884
Net Assets Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Net Assets  1,743,670 1,970,702 1,766,807
Equity Note No. Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Accumulated Funds   878,335 958,097 900,172
Asset Revaluation Surplus 32 865,335 1,012,605 866,635
Total Equity  1,743,670 1,970,702 1,766,807

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 2015

Balance at 1 July 2014 Note No. Accumulated Funds
Actual 2015
$'000
Asset Revaluation
Surplus Actual 2015
$'000
Total Equity
Actual 2015
$'000
Original
Budget 2015
$'000
Balance at 1 July 2014  900,172 866,635 1,766,807 1,940,602
Comprehensive Income Note No. Accumulated Funds
Actual 2015
$'000
Asset Revaluation
Surplus Actual 2015
$'000
Total Equity
Actual 2015
$'000
Original
Budget 2015
$'000
Operating (Deficit)   (66,068) - (66,068) (69,989)
(Decrease) in the Asset Revaluation Surplus 32 - (1,300) (1,300) -
Total Comprehensive (Deficit)/ Income  (66,068) (1,300) (67,368) (69,989)
Transactions Involving Owners Affecting Accumulated Funds Note No. Accumulated Funds
Actual 2015
$'000
Asset Revaluation
Surplus Actual 2015
$'000
Total Equity
Actual 2015
$'000
Original
Budget 2015
$'000
Capital Injections   90,329 - 90,329 100,089
Net Assets transferred out as part of an Administrative Restructure 33 (46,098) - (46,098) -
Total Transactions Involving Owners Affecting Accumulated Funds  44,231 - 44,231 100,089
Balance at 30 June 2015 Note No. Accumulated Funds
Actual 2015
$'000
Asset Revaluation
Surplus Actual 2015
$'000
Total Equity
Actual 2015
$'000
Original
Budget 2015
$'000
Balance at 30 June 2015  878,335 865,335 1,743,670 1,970,702

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

Balance at 1 July 2013 Note No. Accumulated Funds
Actual 2014
$'000
Asset Revaluation Surplus
Actual 2014
$'000
Total Equity
Actual 2014
$'000
Balance at 1 July 2013  907,345 1,012,605 1,919,950
Comprehensive Income Note No. Accumulated Funds
Actual 2014
$'000
Asset Revaluation
Surplus Actual 2014
$'000
Total Equity
Actual 2014
$'000
Operating (Deficit)   (74,582) - (74,582)
(Decrease) in the Asset Revaluation Surplus 32 - (145,970) (145,970)
Total Comprehensive (Deficit)  (74,582) (145,970) (220,552)
Transactions Involving Owners Affecting Accumulated Funds Note No. Accumulated Funds
Actual 2014
$'000
Asset Revaluation
Surplus Actual 2014
$'000
Total Equity
Actual 2014
$'000
Capital Injections   67,409 - 67,409
Total Transactions Involving Owners Affecting Accumulated Funds  67,409 - 67,409
Balance at 30 June 2014 Note No. Accumulated Funds
Actual 2014
$'000
Asset Revaluation
Surplus Actual 2014
$'000
Total Equity
Actual 2014
$'000
Balance at 30 June 2014  900,172 866,635 1,766,807

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 2015

Cash Flows from Operating Activities
Receipts
Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Government Payment for Outputs   591,010 608,242 576,019
User Charges   17,454 16,485 19,179
Interest Received   1,409 1,250 1,654
Distribution from Investments with the Territory Banking Account   87 118 15
Schools And Other   20,396 20,011 21,684
Goods and Services Tax Received   25,015 21,127 21,991
Total Receipts from Operating Activities  655,371 667,233 640,542
Payments Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Employees   421,972 417,122 399,754
Superannuation   62,354 62,456 60,396
Supplies and Services   63,932 68,985 62,229
Grants and Purchased Services   21,457 31,902 20,223
Borrowing Costs   6 12 8
Schools and Other   63,175 63,893 62,653
Goods and Services Tax Paid   24,721 21,127 23,075
Total Payments from Operating Activities  657,617 665,497 628,338
Net Cash (Outflows)/Inflows from Operating Activities Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Net Cash (Outflows)/Inflows from Operating Activities 39 (2,246) 1,736 12,204
Cash Flows from Investing Activities Receipts Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Proceeds from the Sale of Property, Plant and Equipment   41 - 25
Cash Flows from Investing Activities Payments Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Purchase of Property, Plant and Equipment   76,731 82,849 75,814
Net Cash (Outflows) from Investing Activities  (76,690) (82,849) (75,789)
Cash Flows from Financing Activities
Receipts
Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Capital Injections   90,329 100,089 67,409
Loan Proceeds   -   2,517
Cash Flows from Financing Activities
Payments
Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Repayment of Finance Leases   39 50 56
Net Cash Inflows from Financing Activities  90,290 100,039 69,870
Cash Flows from Financing Activities Note
No.
Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Net Increase in Cash and Cash Equivalents Held  11,354 18,926 6,285
Cash and Cash Equivalents at the Beginning of the Reporting Period   70,223 60,909 63,938
Cash and Cash Equivalents at the End of the Reporting Period 39 81,577 79,835 70,223

The above Cash Flow Statement is to be read in conjunction with the accompanying notes.

Education and Training Directorate
Summary of Output Classes
For the Year Ended 30 June 2015

2015 Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Total
$'000
Total Income 600,881 3,088 28,708 632,677
Total Expenses (668,064) (3,457) (27,224) (698,745)
Operating (Deficit)/Surplus (67,183) (369) 1,484 (66,068)
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)

Education and Training Directorate
Operating Statement for Output Class 1 - Public School Education
For the Year Ended 30 June 2015

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 and regulation of education and care services. Delivery of early intervention services transitioned to the National Disability Insurance Scheme from 1 January 2015.

Income Revenue Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Government Payment for Outputs 559,656 566,922 541,535
User Charges - ACT Government 460 556 362
User Charges - Non-ACT Government 17,573 15,919 16,869
Interest 1,392 1,250 1,531
Distribution from Investments with the Territory Banking Account 82 115 101
Resources Received Free of Charge 615 384 529
School and Other Revenue 20,967 19,622 20,680
Total Revenue 600,745 604,768 581,607
Income Gains Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Gains on Investments 29 - 15
Other Gains 107 - -
Total Gains 136 - 15
Total Income Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Income 600,881 604,768 581,622
Expenses Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Employee Expenses 418,985 413,301 407,712
Superannuation Expenses 61,584 61,316 60,128
Supplies and Services 61,242 66,575 61,615
Depreciation and Amortisation 60,377 67,657 64,910
Grants and Purchased Services 2,171 2,051 1,903
Borrowing Costs 6 12 8
School and Other Expenses 63,699 63,580 62,714
Total Expenses 668,064 674,492 658,990
Operating (Deficit) Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Operating (Deficit) (67,183) (69,724) (77,368)

Education and Training Directorate
Operating Statement for Output Class 2 - Non Government Education
For the Year Ended 30 June 2015

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 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Government Payment for Outputs 2,669 2,357 3,765
User Charges - ACT Government 1 - -
User Charges - Non-ACT Government 27 9 192
Interest 14 - 14
Distribution from Investments with the Territory Banking Account - 1 1
Resources Received Free of Charge 5 - 5
Other Revenue 372 360 427
Total Revenue 3,088 2,727 4,404
Total Income Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Income 3,088 2,727 4,404
Expenses Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Employee Expenses 1,658 1,436 1,608
Superannuation Expenses 244 241 237
Supplies and Services 1,054 1,044 833
Depreciation and Amortisation 174 183 115
Grants and Purchased Services 327 - 1,315
Other Expenses - 3 -
Total Expenses 3,457 2,907 4,108
Operating (Deficit)/Surplus Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Operating (Deficit)/Surplus (369) (180) 296

Education and Training Directorate
Operating Statement for Output Class 3 - Vocational Education and Training
For the Year Ended 30 June 2015

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 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Government Payment for Outputs 28,685 38,963 30,719
User Charges - ACT Government - 1 -
User Charges - Non-ACT Government - - -
Interest 3 - 1
Distribution from Investments with the Territory Banking Account - 2 -
Resources Received Free of Charge 1 1 1
Other Revenue 19 29 12
Total Revenue 28,708 38,996 30,733
Total Income Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Total Income 28,708 38,996 30,733
Expenses Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Employee Expenses 5,664 6,116 6,106
Superannuation Expenses 833 897 901
Supplies and Services 2,127 2,098 2,438
Depreciation and Amortisation 5 7 6
Grants and Purchased Services 18,595 29,851 18,792
Other Expenses - 112 -
Total Expenses 27,224 39,081 28,243
Expenses Actual 2015
$'000
Original
Budget 2015
$'000
Actual 2014
$'000
Operating Surplus/(Deficit) 1,484 (85) 2,490

Education and Training Directorate
Controlled Statement of Appropriation
For the Year Ended 30 June 2015

Controlled Note No. Original Budget 2015
$'000
Total Appropriated 2015
$'000
Appropriation Drawn 2015
$'000
Appropriation Drawn 2014
$'000
Government Payment for Outputs 4 608,242 623,718 591,010 589,429
Capital Injections   100,089 120,361 90,329 80,122
Total Controlled Appropriation  708,331 744,079 681,339 669,551

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

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 is mainly due to new and increased Commonwealth grants ($8.818m) primarily related to National Education Reform (Students First), Universal Access to Early Childhood Education and Building Australia's Future Workforce - Skills Reform national partnerships and funding transferred from 2013-14 ($6.943m). The funding transferred from 2013-14 is mainly related to delayed expenditure of Commonwealth funding for Improving Teacher Quality, Training Places for Single and Teen Parents, Joint Group Training Program and Literacy and Numeracy national partnerships combined with the timing of course completions associated with the Vocational Education national partnership and funding allocated to the Schools Information Communication Technology (ICT) administration system upgrade. The increase is partially offset by the transfer of childcare centres and associated funding to the Chief Minister, Treasury and Economic Development Directorate ($0.285m) on 31 January 2015.

Capital Injection

The difference between the original budget and total appropriated relates to the transfer of funds from 2013-14 ($23.310m). The transfer of funds from 2013-14 primarily relates to late receipt of Commonwealth funding for Trade Training Centres, delays in completion of tendering processes for the Coombs P-6 School and invoices received but not paid at year-end for the Sustaining Smart Schools initiative. The increase is partially offset by the transfer of childcare centres and the associated funding to the Chief Minister, Treasury and Economic Development Directorate ($3.038m).

Variances between 'Total Appropriated' and 'Appropriation Drawn'

Government Payment for Outputs

The difference between the total appropriated and appropriation drawn mainly relates to funds transferred to 2015-16 ($32.479m). The transfer of funds into 2015-16 primarily relates to the timing of wages and salary payments, Vocational Education course completions, Commonwealth payments associated with the Vocational Education national partnership and delays in the commencement of the Schools ICT administration system upgrade.

Capital Injections

The difference between the total appropriated and the appropriation drawn mainly relates to the transfer of funds to 2015-16 ($25.154m). The transfer of funds primarily relates to the timing of payments for the Coombs P-6 Primary School ($11.231m), advance payment from the Commonwealth Government for the Trade Training Centres national partnership ($5.969m) and minor delays in completion of other projects. In addition, savings from the Coombs P-6 School have been transferred to Government Payment for Outputs for ongoing repairs and maintenance at the school and other projects ($3.840m).

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, Accounting Estimates and Correction of 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. School and Other Revenue

Gains

  • Note 10. Gains on Investments
  • Note 11. Other Gains

Expense Notes

  • Note 12. Employee Expenses
  • Note 13. Superannuation Expenses
  • Note 14. Supplies and Services
  • Note 15. Depreciation and Amortisation
  • Note 16. Grants and Purchased Services
  • Note 17. Borrowing Costs
  • Note 18. School and Other Expenses
  • Note 19. Act of Grace Payments, Waivers and Write-Offs
  • Note 20. Auditor's Remuneration

Asset Notes

  • Note 21. Cash and Cash Equivalents
  • Note 22. Receivables
  • Note 23. Investments
  • Note 24. Property, Plant and Equipment
  • Note 25. Intangible Assets
  • Note 26. Capital Works in Progress
  • Note 27 Other Assets

Liability Notes

  • Note 28. Payables
  • Note 29. Finance Leases
  • Note 30. Employee Benefits
  • Note 31. Other Liabilities

Equity Notes

  • Note 32. Equity
  • Note 33. Restructure of Administrative Arrangements
  • Note 34. Disaggregated Disclosure of Assets and Liabilities

Other Notes

  • Note 35. Financial Instruments Note
  • Note 36. Commitments Note
  • Note 37. Contingent Liabilities and Contingent Assets Note
  • Note 38. Interest in a Joint Operation Note
  • Note 39. Cash Flow Reconciliation Note
  • Note 40. Budgetary Reporting

Education and Training Directorate
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2015

Note 1. Objectives of The Directorate

Operations and Principal Activities

The Education and Training Directorate (the Directorate) works in partnership with students, parents and the community to ensure that every child in the ACT has access to the opportunity of an excellent education, irrespective of where they live, their personal circumstances or the school they attend. The Directorate works closely with parents, carers and families as well as with government agencies, education and training providers, business and industry to position the ACT as the Education Capital: Leading the Nation.

Services of the Directorate include the provision of public school education, regulation of education and care services, registration of non-government schools and home education, and the planning and coordination of vocational education and training. The Directorate provided early intervention programs to children with developmental delay or disability until 31 December 2014. Delivery of early intervention programs transitioned to the National Disability Insurance Scheme from 1 January 2015. Childcare centres transferred to the Chief Minister Treasury and Economic Development Directorate on 31 January 2015.

High achievement for all students through connected and inclusive learning across all sectors of the education system is achieved through a focus on quality learning, inspirational teaching and leadership, high expectations and high performance, connecting with families and the community, and improvement and innovation in business systems.

Note 2. Summary of Significant Accounting Policies

(a) Basis of Preparation

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:

  1. an Operating Statement for the year;
  2. a Balance Sheet at the end of the year;
  3. a Statement of Changes in Equity for the year;
  4. a Cash Flow Statement for the year;
  5. a Statement of Appropriation for the year;
  6. an Operating Statement for each class of output for the year;
  7. a summary of the significant accounting policies adopted for the year; and
  8. 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:

  1. Australian Accounting Standards; and
  2. ACT Accounting and Disclosure Policies.

(a) Basis of Preparation - Continued

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.

As at 30 June 2015, the Directorate's current assets are insufficient to meet its current liabilities. 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 whole-of-government cash management regime, which requires excess cash balances to be held centrally rather than within individual Directorate bank accounts.

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 prepares 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 onpassing 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 preparation 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 2015 together with the financial position of the Directorate as at 30 June 2015.

(d) Comparative Figures

Budget Figures: To facilitate a comparison with Budget Papers, as required by the Financial Management Act 1996, budget information for 2014-15 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 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, the following criteria must be met before revenue is recognised:

Government Payment for Outputs: Government Payment for Outputs are recognised as revenues when the Directorate gains control over the funding. Control over appropriated funds is normally obtained upon the receipt of cash

Payment for Expenses on Behalf of the Territory: The Payment for expenses on behalf of the Territory is recognised on an accrual basis. Due to the nature of territorial accounting, the Statement of Assets and Liabilities on Behalf of the Territory includes (as applicable) liabilities to, and receivables from, the Territory Banking Account.

User Charges: International private student revenue from fees is recognised in line with service delivery.

Interest: Interest revenue is recognised using the effective interest rate.

Distribution from Investments with the Territory Banking Account: 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 at 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.
Any resulting impairment losses for land, buildings and improvements are 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.

Trade receivables arise in the normal course of selling goods and services to other agencies and to the public. Trade receivables are payable within 30 days after the issue of an invoice or the goods/services have been provided under a contractual arrangement.

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 gain or loss on investments consists of the fluctuation in price of the unit trust between the end of the last reporting period and the end of this reporting period as well as any profit on the sale of units in the trust (the profit being the difference between the price at the end of the last reporting period and the sale price). The net gains or losses do not include interest or dividend income.

These 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. The most recent complete revaluation of the Directorate's land, buildings and land improvements was performed in 2013-14. A revaluation of the Holder Early Childhood Centre was performed in 2014-15, prior to its transfer to Chief Minister, Treasury and Economic Development Directorate on 31 January 2015.

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 or the cost 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 current cost to construct a comparable asset less accumulated depreciation.

(r) Intangible Assets

The Directorate's intangible assets consist of internally generated software. 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 Land Improvements Straight Line 50
Community and Heritage Assets Straight Line 50
Leasehold Improvements Straight Line 5
Plant and Equipment Straight Line 2-20
Internally Generated Intangibles Straight Line 2-5

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

(t) Payables

Payables are a financial liability and are initially recognised at fair value based on the transaction cost and subsequent to initial recognition at amortised cost, with any adjustments to the carrying amount being recorded in the Operating Statement. All amounts are normally settled within 30 days after the invoice date.

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 Arrangements

The Directorate is involved in a joint 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 11 'Joint Arrangements'. Please refer to Note 38 - Interest in a Joint Operation 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. Leased assets 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.

Due to a change in the whole-of-government car leasing arrangements with SG Fleet, the Directorate's motor vehicle leases are classified as operating leases rather than finance leases from 23 April 2015.

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 wages and salaries, annual leave loading, and applicable on-costs, if expected to be settled wholly within twelve months after the end of the annual reporting period in which the employees render the related services;
  • 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.
Wages & 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 Service Leave:

Annual and long service leave including applicable on-costs that are not expected to be wholly settled within 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 end, 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 they will be wholly settled within three years. In 2014-15 the rate used to estimate the present value of future payments is 101.0% (100.9% in 2013-14).

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, the 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 2014-15, the rate used to estimate the present value of future payments for long service leave is 104.2% (103.5% in 2013-14).

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, the probability that employees will take annual and long service leave while in service has been taken into account in estimating the liability for on-costs.

The significant judgments and assumptions included in the estimation of annual and long service leave liabilities are determined by an actuary. The Australian Government Actuary performed this assessment in May 2014. The assessment by an actuary is performed every 5 years. However it may be performed more frequently if there is a significant contextual change in the parameters underlying the 2014 report. The next actuarial review is expected to be undertaken by May 2019. Further information about this estimate is provided in Note 2 (ad) - Significant Accounting Judgments 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 total Territory superannuation liability for the CSS and PSS, and ComSuper is recognised in the Chief Minister, Treasury and Economic Development Directorate's Superannuation Provision Account and the external schemes recognise the superannuation liability for the PSSAP and other schemes respectively. This superannuation liability is not recognised at individual agency level.

(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 $0.075 million ($0.058 million; 2013-14). 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.

(ac) Budgetary Reporting

Explanations of major variances between the 2014-15 original budget and the 30 June 2015 actual results are presented in Notes 40 and 50 Budgetary Reporting. The definition of 'major variances' and the 'original budget' are also provided in Notes 40 and 50 Budgetary Reporting. The 2014-15 budget numbers have not been audited.

Budgetary reporting is disclosed for both Controlled and Territorial financial statements with the exception of Statement of Changes in Equity as relevant line items are included in other financial statements.

(ad) 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:

  1. Fair Value of Land and Buildings: The Directorate has made a significant estimate regarding the fair value of its land and buildings. Land and buildings have been recorded at the market value of similar properties, less accumulated depreciation, as determined by an independent valuer. Note 2(q) - Measurement of Property, Plant and Equipment after Initial Recognition.
  2. 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.
  3. Useful Lives of Property, Plant & Equipment: Property, Plant and Equipment is systematically depreciated over its estimated useful life. The estimated useful life of Property, Plant and Equipment is based on historical experience of similar assets and in some cases has been based on assessment by an independent valuer. 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.
  4. Impairment: Property, Plant and Equipment is annually assessed for impairment. If this assessment indicates an asset is impaired, then the asset's recoverable amount must be estimated to determine any impairment. For 2014-15, the Directorate has undertaken an assessment in relation to the school buildings and other property plant and equipment. The Directorate's impairment assessment is based on the utilisation of the asset. An adjustment is reflected in the financial statements if the overall impairment is material. The impairment of assets was reduced by $0.487 million during 2014-15 from $1.13 million in 2013-14 to $0.643 million in 2014-15 due to increased utilisation of assets (2013-14 no change).

(ae) After Balance Date Events

There are no known events occurring after 30 June 2015 that will materially affect the financial statements.

(af) Impact of Accounting Standards Issued but yet to be Applied

There are a number of new and revised accounting standards and interpretations that have been issued by the Australian Accounting Standards Board, are applicable to the Directorate, 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 and has determined that they will have no material financial impact on the Directorate in future reporting periods.

Note 3. Change in Accounting Policy, 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 on-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 103.5% for long service leave and 100.9% for annual leave. Due to a change in the Commonwealth Bond rate at 30 June 2015, the rate for 2014-15 is 104.2% for long service leave and 101.0% for annual leave. As such the estimate of the long service leave and annual leave liabilities has changed. This change has resulted in a decrease to the estimate of the long service leave liability and expense in the current reporting period of approximately $0.625 million and an increase to the estimate of the annual leave liability and expense in the current reporting period of approximately $0.292 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 an 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 2014-15.

c) Correction of Prior Period Errors

Territorial Financial Statements

On 10 August 2015, the Directorate received advice from an external tax consultant regarding the treatment of the GST component of Commonwealth Government grants received as Payment of Expenses on Behalf of the Territory, and on passed to non-government schools as Grants and Purchased Services. The advice concluded that the Directorate is not required to separately account for the GST component of these grants. As a result, the respective balances in the Statement of Income and Expenses on Behalf of the Territory and related notes include the full amount of Commonwealth Government grants received and on passed to non-government schools in 2014-15. For comparative purposes, the balances in the Statement of Income and Expenses on Behalf of the Territory, and related notes have been restated in 2013-14 to present the correct balances. The table below provides details of the restated 2013-14 balances. There were no other corrections of prior period errors in 2014-15.

Financial Statement Line Item Statement of Income and Expenses on Behalf of the Territory (Extract) Note No. Actual 2014
$'000
Correction of an
Error Adjustment
$'000
Restated
Actual 2014
$'000
Payment for Expenses on Behalf of the Territory 41 220,648 16,546 237,194
Total Revenue 220,662 16,546 237,208
Grants and Purchased Services 43 220,648 16,546 237,194
Total Expenses 220,662 16,546 237,208
Operating Result - - -

Note 4. Government Payment for Outputs

Government Payment for Outputs 2015
$'000
2014
$'000
Government Payment for Outputs1 591,010 576,019
Total 591,010 576,019

1. The increase is mainly due to pay increases associated with enterprise agreements for staff and enrolment increases in public schools.

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

User Charges - ACT Government 2015
$'000
2014
$'000
User Charges - ACT Government 461 362
Total 461 362
User Charges - Non - ACT Government 2015
$'000
2014
$'000
International Private Students Program1 8,146 6,760
Active Leisure Centre - Hire of Facilities and Recreational Activities 3,656 3,588
Commonwealth National Agreements2 4,678 4,806
Commonwealth Own Purpose Payments (COPE) / Specific Projects 3 940 1,671
Other 180 236
Total 17,600 17,061

1. The increase primarily relates to additional international students combined with an increase in fees.
2. Relates to Commonwealth funding for the Jervis Bay Primary School and the French-Australia Program at Telopea Park School.
3. The decrease primarily relates to lower levels of participation in the Commonwealth Government's Residence Determination Program which resulted in lower revenue.

Note 6. Interest

Interest 2015
$'000
2014
$'000
Interest earned from School Management Accounts and Other Cash Held1 1,409 1,546
Total 1,409 1,546

1. The decrease primarily relates to lower interest rates in 2014-15 .

Note 7. Distribution From Investments With The Territory Banking Account

Revenue from ACT Government Entities 2015
$'000
2014
$'000
Distribution from Investments with the Territory Banking Account 82 102
Total 82 102

Note 8. Resources Received Free of Charge

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

Revenue from ACT Government Entities 2015
$'000
2014
$'000
Legal Services 621 535
Total 621 535

Note 9. School and Other Revenue

School and Other revenue mainly comprises revenue collected in schools including voluntary contributions, fund raising revenue and excursion funds.

Other Revenue 2015
$'000
2014
$'000
School Revenue 19,861 19,461
ACT Teacher Quality Institute 793 820
Other1 704 838
Total 21,358 21,119

1. Includes revenue from gains on the sale of assets of $0.045 million in 2014-15 and $0.025 million in 2013-14.

Note 10. Gains on Investments

Gains on Investments 2015
$'000
2014
$'000
Unrealised Gains on Investments with the Territory Banking Account 29 15
Total 29 15

Note 11. Other Gains

Other gains are transactions that are not part of the Directorate's core activities. Other gains are distinct from other revenue, as other revenue arises from the core activities of the Directorate.

Other Gains 2015
$'000
2014
$'000
Gain from De-recognition of Finance Lease Liabilities1,2 107 -
Total 107 -

1. The net impact of the gross loss of $0.211 million on the de-recognition of the leased vehicles (refer to Note 18: School and Other Expenses) and the gross gain of $0.107 million on the de-recognition of the finance lease liability, was a net loss of $0.104 million. Also refer to Note 2(v): Summary of Significant Accounting Polices - leases.
2. Due to a change in the whole-of-government motor vehicle leasing arrangements with SG Fleet on 23 April 2015, leases are classified as operating leases rather than finance leases from 23 April 2015.
3. The revenue associated with the disposal of assets is reported under Note 9 - School and Other Revenue.

Note 12. Employee Expenses

Employee Expenses 2015
$'000
2014
$'000
Wages and Salaries1 410,080 387,586
Movement in Employee Benefits2 4,796 16,398
Workers' Compensation Insurance Premium 11,431 11,442
Total 426,307 415,426

1. The increase is mainly due to wage increases provided through the enterprise bargaining agreement for teaching and non teaching staff.
2.The movement in employee expenses primarily relates to the impact of present value rates for long service leave and annual leave (refer Note 2(w) - Employee Benefits and 3(a) - Change in Accounting Estimate).

Note 13. Superannuation Expenses

Superannuation Expenses 2015
$'000
2014
$'000
Superannuation Contributions to the Territory Banking Account 34,641 36,217
Productivity Benefit 4,973 5,105
Superannuation Payment to ComSuper (for the PSSAP) 1,190 1,077
Superannuation to External Providers1 21,857 18,867
Total 62,661 61,266

1. The increase is mainly due to increased staff utilising 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 2015
$'000
2014
$'000
Property and Maintenance1 20,737 18,958
Materials and Services2 27,619 28,947
Travel and Transport 6,711 7,238
Administrative 3,146 3,268
Financial3 4,501 4,760
Operating Lease Costs 1,505 1,434
Audit Fees4 137 183
Asset Write-Off 67 98
Total 64,423 64,886

1. The increase is primarily due to accelerated repairs and maintenance expenditure in schools in 2014-15.
2. The reduction in costs is mainly due to the finalisation of the Digital Education Revolution National Partnership Program and the associated expenditure.
3. Includes insurance and other financial services.
4. Audit fees include internal and external audit fees. Refer Note 20 - Auditor's Remuneration for fees paid to the ACT Audit Office.

Note 15. Depreciation and Amortisation

Depreciation 2015
$'000
2014
$'000
Buildings and Land Improvements1 49,450 53,610
Plant and Equipment 10,756 11,045
Leasehold Improvements 194 196
Community and Heritage Assets 8 35
Total Depreciation 60,408 64,886
Amortisation 2015
$'000
2014
$'000
Intangible Assets 148 145
Total Amortisation 148 145
Total Depreciation and Amortisation 2015
$'000
2014
$'000
Total Depreciation and Amortisation 60,556 65,031

1. The decrease primarily relates to a reduction in the Directorate's asset values following the revaluation of buildings and land improvements from 1 July 2014.

Note 16. Grants and Purchased Services

Grants And Purchased Services 2015
$'000
2014
$'000
Grant Payments - educational, apprenticeships and vocational education. 21,093 22,010
Total 21,093 22,010

Note 17. Borrowing Costs

Borrowing Costs 2015
$'000
2014
$'000
Finance Charges on Finance Leases 6 8
Total 6 8

Note 18. School and Other Expenses

Mainly comprises utilities, cleaning, security and maintenance costs in schools as well as educational enrichment activities.

School And Other Expenses 2015
$'000
2014
$'000
School Expenses 61,919 61,996
Other Expenses1 1,569 718
Loss on De-recognition of Motor Vehicle Lease2,3 211 -
Total 63,699 62,714

1. The increase mainly relates to expenditure associated with delivery of early intervention services by the National Disability Insurance Scheme from 1 January 2015.
2. The net impact of the gross loss of $0.211 million on the de-recognition of the leased vehicles and the gross gain of $0.107 million on the de-recognition of the finance lease liability (refer to Note 11: Other Gains) was a net loss of $0.104 million. Also refer to Note 2(v): Summary of Significant Accounting Polices - leases.
3. Due to a change in the whole-of-government motor vehicle leasing arrangements with SG Fleet on 23 April 2015, leases are classified as operating leases rather than finance leases from 23 April 2015.

Note 19. Act of Grace Payments, Waivers and Write-Offs

Act of Grace Payments, Waivers and Write-offs 2015
$'000
2014
$'000
Write-Off of Assets 1 67 98
Total 67 98

1. 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 payments for financial audit services provided to the Directorate by the ACT Audit Office. No other services were provided by the ACT Audit Office.

Audit Services 2015
$'000
2014
$'000
Audit Fees Paid or Payable to the ACT Audit Office 126 122
Total 126 122

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 2015
$'000
2014
$'000
Central Office Bank Accounts1 40,764 27,567
School Management Accounts 39,787 39,838
ACT Teacher Quality Institute 733 1,240
Other Operations Bank Accounts2 283 1,567
Cash on Hand 10 11
Total 81,577 70,223

1. The increase mainly relates to cash held for the 27th pay in 2015-16 (occurs every 12 years).
2. The reduction primarily relates to the finalisation of the Digital Education Revolution Program.

Note 22. Receivables

Current Receivables 2015
$'000
2014
$'000
Trade Receivables 998 241
Less: Allowance for Impairment Losses (143) (147)
Total 855 94
Other Trade Receivables 2015
$'000
2014
$'000
Other Trade Receivables1 815 490
Less: Allowance for Impairment Losses - -
Total 815 490
Accrued Revenue and Interest 2015
$'000
2014
$'000
Accrued Revenue and Interest 35 36
Net Goods and Services Tax Receivable 3,394 3,688
Total 3,429 3,724
Total Current Receivables 2015
$'000
2014
$'000
Total Current Receivables 5,099 4,308

1. Increase mainly relates to receivables in schools for hire of facilities.

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
2015
Not Impaired
Receivables
3,838 695 30 536 5,099
Impaired
Receivables
2014
- - - 143 143
Not Impaired
Receivables
3,900 28 33 347 4,308
Impaired
Receivables
- - - 147 147
Reconciliation of the Allowance for Impairment Losses 2015
$'000
2014
$'000
Allowance for Impairment Losses at the Beginning of the Reporting Period 147 89
Additional/(Reduction) Allowance Recognised During the Reporting Period (4) 58
Allowance for Impairment Losses at the End of the Reporting Period 143 147

Classification of ACT Government/Non - ACT Government Receivables

Receivables with ACT Government Entities 2015
$'000
2014
$'000
Net Trade Receivables 52 76
Net Other Trade Receivables 220 39
Accrued Revenue 21 25
Total Receivables with ACT Government Entities 293 140
Receivables with Non-ACT Government Entities 2015
$'000
2014
$'000
Net Trade Receivables 946 165
Net Other Trade Receivables 595 451
Accrued Revenue 14 11
Net Goods and Services Tax Receivable 3,394 3,688
Less: Allowance for Impairment Losses (143) (147)
Total Receivables with Non- ACT Government Entities 4,806 4,168
Total 2015
$'000
2014
$'000
Total 5,099 4,308

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 Fixed Interest Portfolio is to hold investments 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 2015
$'000
2014
$'000
Investments with the Territory Banking Account - Cash Enhanced Portfolio 260 259
Total Current Investments 260 259
Non-Current Investments 2015
$'000
2014
$'000
Investments with the Territory Banking Account - Fixed Interest Portfolio 1,875 1,846
Total Non-Current Investments 1,875 1,846
Total Investments 2015
$'000
2014
$'000
Total Investments 2,135 2,105

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 2015
$'000
2014
$'000
Land at Fair Value1 316,745 330,814
Total Land Assets 316,745 330,814
Land 2015
$'000
2014
$'000
Buildings and Improvements to Land at Fair Value 1,492,913 1,473,760
Less: Accumulated Depreciation (53,342) -
Total Written Down Value of Buildings and Improvements to Land 1,439,571 1,473,760
Land 2015
$'000
2014
$'000
Total Land and Written Down Value of Buildings and Improvements to Land 1,756,316 1,804,574
Leasehold Improvements 2015
$'000
2014
$'000
Leasehold Improvements at Cost 5,643 5,643
Less: Accumulated Depreciation (4,508) (4,314)
Total Written Down Value of Leasehold Improvements 1,135 1,329
Plant and Equipment 2015
$'000
2014
$'000
Plant and Equipment at Cost 105,650 92,739
Less: Accumulated Depreciation (72,754) (65,588)
Total Written Down Value of Plant and Equipment 32,896 27,151
Community and Heritage Assets 2015
$'000
2014
$'000
Community and Heritage Assets at Fair Value1 - 960
Less: Accumulated Depreciation - -
Total Written Down Value of Community and Heritage Assets - 960
Total 2015
$'000
2014
$'000
Total 1,790,347 1,834,014

1. The decrease relates to the transfer of childcare centre assets to the Chief Minister, Treasury and Economic Development Directorate on 31 January 2015 following a restructuring of administrative arrangements.

Reconciliation of Property, Plant and Equipment

The following table shows the movement of Property, Plant and Equipment during 2014-15.

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 330,814 1,473,760 1,329 27,151 960 1,834,014
Additions - 41,682 - 16,730 - 58,412
Assets Transferred Out (15,429) (24,739) - - (948) (41,116)
Revaluation Increment/(Decrement) 1,360 (2,453) - - - (1,093)
Depreciation - (49,446) (194) (10,756) (12) (60,408)
De-recognition of Leased Vehicles - - - (171) - (171)
Write-offs/Impairment/Other - 767 - (58) - 709
Carrying Amount at the End of the Reporting Period 316,745 1,439,571 1,135 32,896 - 1,790,347

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

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 2015 are as follows:

2015 Classification According to Fair Value Hierarchy

Property, Plant and Equipment at Fair Value Level 1
$'000
Level 2
$'000
Level 3
$'000
Total
$'000
Land - - 316,745 316,745
Buildings and Improvements to Land - - 1,439,571 1,439,571
Community and Heritage Assets - - - -
Total - - 1,756,316 1,756,316

2014 Classification According to 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
Total - 40,998 1,764,536 1,805,534

1. Following a restructuring of Administrative Arrangements, childcare centres transferred to the Chief Minister, Treasury and Economic Development Directorate on 31 January 2015. These assets were classified as Level 2 in 2013-14. All Level 2 assets were transferred to the Chief Minister, Treasury and Economic Development Directorate.

Transfers Between Categories

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

Valuation Techniques, Inputs and Processes

Level 2 Valuation Techniques and Inputs (2013-14 only)

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 using market approach which values a selection of land with similar approximate utility.

Level 3 Valuation Techniques and Inputs

Valuation Technique: buildings and 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 adjustments to market based data was required.

Inputs: In determining the value of buildings and 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 Directorate.

There have been no changes 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 2015
$'000
Valuation Technique(s) Significant Unobservable Inputs Range of Unobservable Inputs (Weighted Average) Relationship of Unobservable Inputs to Fair Value
Land
$316,745
Market Approach -Direct comparison. Selection of land with similar approximate utility. $100 - $150 per square metre Higher value of similar land increases estimated fair value.
Buildings and Improvements to Land including Community and Heritage Assets $1,439,571 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.
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 - $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 internally developed software.

Computer Software 1
Internally Generated Software
2015
$'000
2014
$'000
Computer Software at Cost 2 3,043 1,017
Less: Accumulated Amortisation (425) (259)
Total Computer Software 2,618 758

1. During 2014-15 $2.026 million in software was capitalised and amortisation expense of $0.166 million was incurred.
2. The movement primarily relates to capitalisation of software associated with the ACT Vocational Education and Training Administration Records System.

Note 26. Capital Works In Progress

Capital works in progress are assets being constructed over periods of time in excess of the present reporting period.

Capital Works in Progress 2015
$'000
2014
$'000
Capital Works in Progress 24,524 16,238
Total 24,524 16,238
Reconciliation of Capital Works in Progress
The following table shows the movement of capital works in progress during the reporting periods.
2015
$'000
2014
$'000
Balance at the Beginning of the Reporting Period 16,238 17,622
Additions 21,775 11,365
Capital Works in Progress Completed and Transferred to Property, Plant and Equipment (10,980) (12,749)
Capital Works in Progress Completed and Transferred to Chief Minister Treasury and Economic Development Directorate1 (2,509) -
Carrying Amount at the End of the Reporting Period2 24,524 16,238

1. Opening capital works in progress of $2.509 million relating to childcare centres, was transferred to the Chief Minister, Treasury and Economic Development Directorate on 31 January 2015. An additional $2.473 million in capital works was undertaken and transferred during 2014-15.
2. The increase in 2014-15 primarily relates to the Coombs P-6 School.

Note 27. Other Assets

Other Current Assets 2015
$'000
2014
$'000
Prepayments 897 1,045
Total 897 1,045

Note 28. Payables

Payables 2015
$'000
2014
$'000
Payables - ACT Government Entities 33 53
Payables - Non-ACT Government Entities 277 414
Accrued Expenses 5,995 7,985
Total1 6,305 8,452
Payables are aged as followed 2015
$'000
2014
$'000
Not Overdue 6,250 8,283
Overdue for Less than 30 Days 28 144
Overdue for 30 to 60 Days - 2
Overdue for More than 60 Days 27 23
Total 6,305 8,452

Classification of ACT Government/Non-ACT Government Payables

Payables with ACT Government Entities 2015
$'000
2014
$'000
Payables 33 53
Accrued Expenses 3,693 5,678
Total Payables with ACT Government Entities 3,726 5,731
Payables with ACT Non-Government Entities 2015
$'000
2014
$'000
Payables 277 414
Accrued Expenses 2,302 2,307
Total Payables with ACT Non-Government Entities 2,579 2,721
Total 2015
$'000
2014
$'000
Total 6,305 8,452

1. The decrease mainly relates to a reduction in accrued expenses associated with Information Communication and Technology payments due to timing.

Note 29. Finance Leases1

Finance Leases
Finance lease commitments are payable as follows:
2015
$'000
2014
$'000
Within one year - 81
Later than one year but not later than five years - 79
Minimum Lease Payments - 160
Less: Future Finance Lease Charges - (14)
Total Present Value of Minimum Finance Lease Payments - 146
Comprising: 2015
$'000
2014
$'000
Within one year - 75
Later than one year not later than five years - 71
Total - 146
Current and Non-current 2015
$'000
2014
$'000
Current - 75
Non-current - 71
Total - 146

1. Due to a change in the whole-of-government motor vehicle leasing arrangements with SG Fleet on 23 April 2015, leases are classified as operating leases rather than finance leases from 23 April 2015.

Note 30. Employee Benefits

Current Employee Benefits 2015
$'000
2014
$'000
Annual Leave 33,375 31,772
Long Service Leave 83,236 82,813
Accrued Salaries 21,159 17,811
Total Current Employee Benefits 137,770 132,396
Non-Current Employee Benefits 2015
$'000
2014
$'000
Long Service Leave 12,016 12,595
Total Non-Current Employee Benefits 12,016 12,595
Total 2015
$'000
2014
$'000
Total 149,786 144,991

Estimate of When Leave is Payable

Estimated Amount Payable within 12 months 2015
$'000
2014
$'000
Annual Leave 26,848 24,730
Long Service Leave 6,821 6,353
Accrued Salaries 21,159 17,811
Total Employee Benefits Payable within 12 months 54,828 48,894
Estimated Amount Payable after 12 months 2015
$'000
2014
$'000
Annual Leave 6,527 7,042
Long Service Leave 88,431 89,055
Total Employee Benefits Payable after 12 months 94,958 96,097
Total 2015
$'000
2014
$'000
Total 149,786 144,991

Note 31. Other Liabilities

Current Other Liabilities 2015
$'000
2014
$'000
Revenue Received in Advance1 4,296 4,155
Schools Revenue Received in Advance 551 1,551
Total 4,847 5,706
Non-Current Other Liabilities 2015
$'000
2014
$'000
Other Loans2 2,589 2,589
Total 2,589 2,589
Total Other 2015
$'000
2014
$'000
Total Other 7,436 8,295

1. Primarily relates to revenue received in advance from international students.
2. Relates to loans from the Environment and Planning Directorate for environmentally sustainable projects in schools.

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.
2015
$'000
2014
$'000
Balance at the Beginning of the Reporting Period 866,635 1,012,605
Increment in Land due to Revaluation1 1,000 55,015
Decrement in Buildings and Improvements to Land due to Revaluation1 (2,300) (200,985)
Total (Decrease) in the Asset Revaluation Surplus (1,300) (145,970)
Balance at the End of the Reporting Period 865,335 866,635

1. Mainly relates to the revaluation of Holder Early Childhood Centre in 2014-15.

Note 33. Restructure of Administrative Arrangements

On 31 January 2015, a restructuring of administrative arrangements occurred between Education and Training Directorate (ETD) and Chief Minister Treasury and Economic Development Directorate (CMTEDD) involving the transfer of ETD's responsibility for the management of child care centres. The income and expenses and assets and liabilities transferred as part of the restructuring of administrative arrangements at the date of transfer were as follows:

Revenue Amounts Relating to Function when held by the
Education and Training Directorate
July 2014 to December 2014
$'000
Amounts Transferred to the
Chief Minister Treasury and Economic Development Directorate
January 2015 to June 2015
$'000
Government Payment for Outputs 287 285
Total Revenue 287 285
Expenses Amounts Relating to Function when held by the
Education and Training Directorate
July 2014 to December 2014
$'000
Amounts Transferred to the
Chief Minister Treasury and Economic Development Directorate
January 2015 to June 2015
$'000
Employee Expenses 99 71
Superannuation Expenses 11 8
Supplies and Services 177 206
Depreciation and Amortisation 477 360
Total Expenses 764 645
Assets Transferred Amounts 2014-15
$'000
Land 15,429
Buildings and Improvements to Land 24,739
Community and Heritage Assets 948
Capital Works In Progress 4,982
Total Assets Transferred 46,098
Total Net Assets Transferred 46,098

There were no transfers resulting from restructure of administrative arrangements in 2013-14.

Note 34. Disaggregated Disclosure of Assets and Liabilities

Year Ended 30 June 2015

Current Assets Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Cash and Cash Equivalents 39,885 733 - 40,9591 81,577
Investments 260 - - - 260
Receivables 5,051 2 46 - 5,099
Other Assets 892 - 5 - 897
Total Current Assets 46,088 735 51 40,959 87,833
Non-Current Assets Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Investments 1,324 - - 551 1,875
Property, Plant and Equipment 1,790,347 - - - 1,790,347
Intangible Assets 842 - 1,776 - 2,618
Capital Works in Progress 24,524 - - - 24,524
Total Non-Current Assets 1,817,037 - 1,776 551 1,819,364
Total Assets Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Total Assets 1,863,125 735 1,827 41,510 1,907,197
Current Liabilities Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Payables 6,261 4 40 - 6,305
Employee Benefits 135,403 536 1,831 - 137,770
Other Liabilities 4,847 - - - 4,847
Total Current Liabilities 146,511 540 1,871 - 148,922
Non-Current Liabilities Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Employee Benefits 11,810 46 160 - 12,016
Other Liabilities 2,589    2,589
Total Non-Current Liabilities 14,399 46 160 - 14,605
Total Liabilities Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Total Liabilities 160,910 586 2,031 - 163,527
Net Assets Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Net Assets 1,702,215 149 (204) 41,510 1,743,670

1. 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, un-presented cheques, and cash for specific purpose payments.

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 - 29,0311 70,223
Investments - - - 259 259
Receivables 4,265 2 41 - 4,308
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 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 Output Class 1
$'000
Output Class 2
$'000
Output Class 3
$'000
Unallocated
$'000
Total
$'000
Net Assets 1,739,782 (116) (2,691) 29,832 1,766,807

1. 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, un-presented cheques, and cash for specific purpose payments.

Note 35. Financial Instruments

Terms, Conditions and Accounting Policies

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. Its financial liabilities are composed of payables and finance leases. The Directorate's exposure to interest rate risk relating to these financial assets and liabilities is shown 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. There have been no changes in risk exposure or processes for managing risk since the last financial reporting period.

As the Directorate's operating cash flows are not significantly dependent 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 underwhole of government banking arrangements. Cash at 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.

The majority of receivables consist of a Goods and Services Tax (GST) refund due from the Australian Taxation Office (ATO) and ACT Government Agencies which have a strong credit history. 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.

There have been no changes to credit risk exposure since the last reporting period.

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 exposure to liquidity risk is shown 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.

Appropriation 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 from the Territory Bank Account can be obtained.

The Directorate's exposure to liquidity risk and the management of this risk has not changed since the last reporting period.

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 of BBB- or greater.

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 at the end of the reporting period are:

Financial Assets Carrying Amount 2015
$'000
Fair Value 2015
$'000
Carrying Amount 2014
$'000
Fair Value 2014
$'000
Cash and Cash Equivalents 81,577 81,577 70,223 70,223
Investment with the Territory Banking Account 2,135 2,135 2,105 2,105
Receivables1 1,705 1,705 620 620
Total 85,417 85,417 72,948 72,948
Financial Liabilities Carrying Amount 2015
$'000
Fair Value 2015
$'000
Carrying Amount 2014
$'000
Fair Value 2014
$'000
Payables 6,305 6,305 8,452 8,452
Finance Leases - - 146 146
Other Loans 2,589 2,589 2,589 2,589
Total 8,894 8,894 11,187 11,187

1. Receivables reported under Financial Instruments does not include receivables relating to goods and services tax.

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.

2015 Classification According to 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 - 1,875 - 1,875
Total - 2,135 - 2,135
2014 Classification According to 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 current or previous reporting period.

Maturity Analysis and Exposure to Interest Rate

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 2015 and 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 2015
Financial Instruments

Financial Assets Note No. Weighted Average
Interest
Rate
Floating
Interest
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 2.02% 40,794 - - - 40,783 81,577
Investments with the Territory Banking Account 23 - - - - - 2,135 2,135
Receivables 22 - - - - - 1,705 1,705
Total   - 40,794 - - - 44,623 85,417
Financial Liabilities Note No. Weighted Average
Interest
Rate
Floating
Interest
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 - - - - - (6,305) (6,305)
Other Liabilities 31 - - - - - (2,589) (2,589)
Finance Leases 29 - - - - - - -
Total   - - - - - (8,894) (8,894)
Net Financial Assets/(Liabilities) Note No. Weighted Average
Interest Rate
Floating
Interest
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)   - 40,794 - - - 35,729 76,523

As at 30 June 2014
Financial Instruments

Financial Assets Note No. Weighted Average
Interest Rate
Floating
Interest
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
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
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

Carrying Amount of Each Category of Financial Asset and Financial Liability

Financial Assets 2015
$'000
2014
$'000
Financial Assets at Fair Value through the Profit and Loss Designated upon Initial Recognition 2,135 2,105
Loans and Receivables at Amortised Cost 1,705 620
Financial Liabilities 2015
$'000
2014
$'000
Financial Liabilities Measured at Amortised Cost 8,894 11,187

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. Also, 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 2015
$'000
2014
$'000
Financial Assets at Fair Value through the Profit and Loss 29 15
Loans and Receivables at Amortised Cost - -
Gains/(Losses) Financial Liabilities 2015
$'000
2014
$'000
Financial Liabilities Measured at Amortised Cost - -

Note 36. Commitments

Capital Commitments1

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

Capital Commitments - Property, Plant and Equipment 2015
$'000
2014
$'000
Payable:   
Within one year 25,570 17,522
Later than one year but not later than five years 10,574 4,473
Later than five years 18 -
Total 36,162 21,995

1. The increase mainly relates to capital commitments for the Coombs P-6 School project.

Other Commitments1

Other commitments contracted at reporting date that have not been recognised as liabilities are payable as follows: 2015
$'000
2014
$'000
Within one year 46,927 41,771
Later than one year but not later than five years 50,989 38,208
Later than five years 53 -
Total 97,969 79,979

1. The increase primarily relates to commitments under the ACT Funding Agreement with registered training organisations.

Operating Lease Commitments

Other commitments contracted at reporting date that have not been recognised as liabilities are payable as follows: 2015
$'000
2014
$'000
Within one year 1,764 2,407
Later than one year but not later than five years 1,886 2,505
Total1 3,650 4,912

1. The decrease is primarily due to reduced lease commitments for office accommodation.

The future minimum lease payments for non-cancellable operating sub-leases expected to be received 2015
$'000
2014
$'000
The future minimum lease payments for non-cancellable operating sub-leases expected to be received - -

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 2015 the Directorate had contingent liabilities in relation to known legal cases not settled of $5.22 million. As at 30 June 2014 the liability was $5.28 million.

Contingent Liabilities 2015
$'000
2014
$'000
The estimated liability for known legal litigation cases not settled1 5,218 5,276
Total 5,218 5,276

1. The liability will be offset by insurance and the amount is unknown as at 30 June 2015.

There were no contingent assets in 2014-15 or 2013-14.

Note 38. Interest in a Joint Operation

Gold Creek School operates 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.

Share of the Jointly Controlled Operation is as follows: 2015
$'000
2014
$'000
Revenue 104 66
Expenses (153) (141)
Operating (Deficit) (49) (75)
Share of Assets Employed in the Jointly Controlled Operation 2015
$'000
2014
$'000
Current Assets 104 48
Non-Current Assets 3,312 3,397
Total Assets 3,416 3,445
Share of Assets Employed in the Jointly Controlled Operation 2015
$'000
2014
$'000
Current Liabilities 28 8
Total Liabilities 28 8
Share of Assets Employed in the Jointly Controlled Operation 2015
$'000
2014
$'000
Net Assets 3,388 3,437
Share of Assets Employed in the Jointly Controlled Operation 2015
$'000
2014
$'000
Share of the Jointly Controlled Operation Cash 87 37

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 2015
$'000
2014
$'000
Total Cash and Cash Equivalents Recorded in the Balance Sheet 81,577 70,223
Cash and Cash Equivalents at the End of the Reporting Period as Recorded in the Cash Flow Statement 81,577 70,223
(b) Reconciliation of Net Cash Inflows from Operating Activities to the Operating (Deficit) 2015
$'000
2014
$'000
Operating (Deficit) (66,068) (74,582)
Add/(Less) Non-Cash Items 2015
$'000
2014
$'000
Depreciation and Amortisation 60,556 65,031
Assets Written Off 171 98
(Gain) from Sale of Assets (41) (25)
Unrealised (Gain) on Investment (29) (15)
Cash Before Changes in Operating Assets and Liabilities (5,411) (9,493)
Changes in Operating Assets and Liabilities 2015
$'000
2014
$'000
(Increase)/Decrease in Receivables (791) 2,371
Decrease in Prepayments 148 1,053
(Decrease)/Increase in Payables (129) 340
Increase in Employee Benefits 4,796 16,398
(Decrease)/Increase in Revenue Received in Advance (859) 1,535
Net Changes in Operating Assets and Liabilities 3,165 21,697
Net Outflows/Inflows from Operating Activities 2015
$'000
2014
$'000
Net Outflows/Inflows from Operating Activities (2,246) 12,204
(c) Non-Cash Financing and Investing Activities
The Directorate has entered into finance lease arrangements for plant and equipment.
2015
$'000
2014
$'000
Plant and Equipment 40 98

Note 40. Budgetary Reporting

The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met:

  1. The line item is a significant line item: the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and
  2. The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.
Balance Sheet Line Items Actual 2014-15
$'000
Original Budget1 2014-15
$'000
Variance
$'000
Variance
%
Variance Explanation
Employee Benefits (Current) 137,770 123,596 14,174 11 The increase primarily relates to an increase in the rate used to estimate the present values of future long service leave payments and wages and salaries accruals associated with back payment of the teaching enterprise bargaining agreement.
Asset Revaluation Surplus 865,335 1,012,605 (147,720) 15 The decrease mainly relates to the revaluation of the Directorate's assets effective from 1 July 2014, combined with the transfer of childcare centres to the Chief Minister Treasury and Economic Development Directorate which was not known at the time the budget was prepared.

1. Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2014-15 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.
2. Explanations for variations from budget for Government Payment for Outputs and Capital Injections are provided in the Statement of Appropriation.
3. There were no variations against budget in the Operating Statement or the Cash Flow Statement that met the criteria in (a) and (b) above.

Education and Training Directorate
Territorial Financial Statements
For The Year Ended30 June 2015

Education and Training Directorate
Statement of Income and Expenses on Behalf of the Territory
For the Year Ended 30 June 2015

Income Revenue Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Payments for Expenses on Behalf of the Territory1 41 250,085 234,844 237,194
Fees 42 3 - 14
Total Income  250,088 234,844 237,208
Expenses Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Grants and Purchased Services1 43 250,085 234,844 237,194
Transfer to Government 44 3 - 14
Total Expenses  250,088 234,844 237,208
Operating Result Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Operating Result  - - -

1. The 2013-14 Actual has been re-stated for comparative purposes. Refer Note 3 (c) - Correction of Prior Period Errors.
The above Statement of Income and Expenses on Behalf 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
For the Year Ended 30 June 2015

Current Assets Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Cash and Cash Equivalents 45 - 261 80
Receivables 46 10 - 7
Total Current Assets  10 261 87
Total Assets Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Total Assets  10 261 87
Current Liabilities Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Payables 47 10 261 87
Total Current Liabilities  10 261 87
Total Liabilities Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Total Liabilities  10 261 87
Net Assets Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Net Assets  - - -
Equity Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'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.

Education and Training Directorate
Cash Flow Statement on Behalf of the Territory
For the Year Ended 30 June 2015

Cash Flows from Operating Activities

Receipts Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Cash from Government for Expenses on Behalf of the Territory   250,015 252,356 236,994
Fees   3 - 14
Goods and Services Tax Received   5,665 5,911 5,474
Total Receipts from Operating Activities  255,683 258,267 242,482
Payments Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Grants and Purchased Services   250,112 252,465 237,167
Transfer of Territory Receipts to the ACT Government   3 - 14
Goods and Services Tax Paid   5,648 5,802 5,482
Total Payments from Operating Activities  255,763 258,267 242,663
Net Cash Inflows from Operating Activities Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Net Cash Inflows from Operating Activities  (80) - (181)
Cash and Cash Equivalents Note No. Actual 2015
$'000
Original Budget 2015
$'000
Restated Actual 2014
$'000
Net (Decrease) in Cash and Cash Equivalents Held   (80) - (181)
Cash and Cash Equivalents at the Beginning of the Reporting Period   80 261 261
Cash and Cash Equivalents at the End of the Reporting Period 49 - 261 80

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 2015

Expenses on Behalf of the Territory Note
No.
Original
Budget 2015
$'000
Total
Appropriated 2015
$'000
Appropriation
Drawn 2015
$'000
Appropriation
Drawn 2014
$'000
Expenses on Behalf of the Territory   252,356 254,974 250,015 236,994
Total Territorial Appropriation  252,356 254,974 250,015 236,994

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

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'

Expenses on Behalf of the Territory

The difference between the Original Budget and Total Appropriated relates to increased Commonwealth grants ($1.444m) for National Education Reform (Students First) and the More Support for Students with Disability National Partnership, combined with the transfer of funds from 2013-14 for the Supporting Non-Government Preschools initiative ($0.700m) and the Interest Subsidy Scheme ($0.474m).

Variances between 'Total Appropriated' and 'Appropriation Drawn'

Expenses on Behalf of the Territory

The difference between the Total Appropriated and the Appropriation Drawn mainly relates to lower than budgeted Commonwealth grants for Trade Training Centres ($0.909m), the transfer of funds to 2015-16 for the Interest Subsidy Scheme ($1.594m) due to finalisation of loans and lower interest rates, and the Supporting Non-Government Preschools initiative ($0.139m).

Territorial Note Index

Income Notes

  • Note 41. Payment for Expenses on behalf of the Territory
  • Note 42. Fees

Expenses Notes

  • Note 43. Grants and Purchased Services
  • Note 44. Transfer to Government

Assets Notes

  • Note 45. Cash and Cash Equivalents
  • Note 46. Receivables

Liabilities Notes

  • Note 47.Payables

Other Notes

  • Note 48.Financial Instruments
  • Note 49. Cash Flow Reconciliation
  • Note 50. Budgetary Reporting

Education and Training Directorate
Notes to and Forming Part of the Financial Statements
For the Year Ended 30 June 2015

Note 41. 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 43 - Grants and Purchased Services for the details of the expenses.

Payment for Expenses on Behalf of the Territory 2015
$'000
Restated 2014
$'000
Funding Received to Meet Expenses Incurred on Behalf of the Territory1 250,085 237,194
Total Payment for Expenses on Behalf of the Territory 250,085 237,194

1. The 2013-14 Actual has been re-stated for comparative purposes. Refer Note 3 (c) - Correction of Prior Period Errors.

Note 42. Fees

Fees 2015
$'000
2014
$'000
Fees for Regulatory Services - Training1 3 14
Total 3 14

1. The decrease in fees collected primarily relates to the removal of training regulatory services from 20 November 2014.

Note 43. Grants and Purchased Services

Payments of grants and subsidies were as follows: 2015
$'000
Restated 2014
$'000
Grants - Non-Government Schools1 249,343 236,561
Bursary Scheme 722 601
Block Release Grants 20 32
Total 250,085 237,194

1. The increase from 2013-14 primarily relates to increased Commonwealth grants associated with the introduction of the Commonwealth Schooling Resource Standard.
2. The 2013-14 Actual has been re-stated for comparative purposes. Refer Note 3 (c) - Correction of Prior Period Errors.

Note 44. Transfer to Government

Transfers to Government primarily relates to fees that are collected on behalf of the Territory - refer to Note 42 - Fees.


Transfer to Government
2015
$'000
2014
$'000
Transfer to Government1 3 14
Total 3 14

1. The decrease in fees collected primarily relates to the removal of training regulatory services from 20 November 2014.

Note 45. Cash and Cash Equivalents

Cash and Cash Equivalents 2015
$'000
2014
$'000
Cash at Bank - 80
Total - 80

1. The opening cash balance was utilised during the year for Territorial expenses.
2. Under whole-of-government banking arrangements interest is not earned on cash at bank held in the Directorate's Territorial Bank Account.

Note 46. Receivables

Current Receivables 2015
$'000
2014
$'000
Other Receivables - ACT Government 10 -
Goods and Services Tax Receivable from the Australian Taxation Office - 7
Total 10 7
Aging of Receivables
2015 Not Overdue
$'000
Overdue
Less than 30 Days
$'000
Overdue
30 to 60 Days
$'000
Overdue Greater
than 60 Days
$'000
Total
$'000
Not Impaired Receivables 10 - - - 10
Impaired Receivables - - - - -
2014 Not Overdue
$'000
Overdue
Less than 30 Days
$'000
Overdue
30 to 60 Days
$'000
Overdue Greater
than 60 Days
$'000
Total
$'000
Not Impaired Receivables 7 - - - 7
Impaired Receivables - - - - -

Note 47. Payables

All payables at 30 June 2015 are current and not overdue.

Current Payables 2015
$'000
2014
$'000
Payables - 87
Goods and Services Tax Payable to the Australian Taxation Office 10 -
Total Current Payables 10 87
Payables 2015
$'000
2014
$'000
Total Payables 10 87

Note 48. Financial Instruments - Territorial

Terms, Conditions and Accounting Policies

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 Note2-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 financial assets held by the Directorate on behalf of the Territory consist of cash and cash equivalents and receivables. Its financial liabilities are composed 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 the Territory's operating cash flows are not dependent 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. All receivables relate to either Commonwealth, ACTor non-government agencies which have strong credit histories (most receivables consist of Goods and Services Tax refunds due from the Australian Taxation Office). Credit risk is therefore considered to be low.
Financial assets consist of cash and receivables. The Directorate on behalf of the Territory's exposure to credit risk is limited to the amount of these financial assets net of any allowance made for impairment. This is shown 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 Chief Minister, Treasury and Economic Development Directorate.

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 2015
$'000
Fair Value 2015
$'000
Carrying Amount 2014
$'000
Fair Value 2014
$'000
Cash and Cash Equivalents - - 80 80
Receivables 10 10 - -
Total 10 10 80 80
Financial Liabilities Carrying Amount 2015
$'000
Fair Value 2015
$'000
Carrying Amount 2014
$'000
Fair Value 2014
$'000
Payables - - 87 87
Total - - 87 87

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 2015. 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
As at 30 June 2015

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 45 - - - - - -
Receivables 46 - - - - 10 10
Total Financial Assets  - - - - 10 10
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 47 - - - - - -
Total Financial (Liabilities)  - - - - - -
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)  - - - - 10 10

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
As at 30 June 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 45 - - - - 80 80
Total Financial Assets  - - - - 80 80
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 47 - - - - (87) (87)
Total Financial (Liabilities)  - - - - (87) (87)
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)  - - - - (7) (7)

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.

Note 49. Cash Flow Reconciliation

a) Reconciliation of Cash and Cash Equivalents at 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. 2015
$'000
2014
$'000
Total Cash Disclosed on the Statement of Assets and Liabilities on Behalf of the Territory - 80
Cash at the End of the Reporting as Recorded in the Cash Flow Statement on behalf of the Territory - 80
b) Reconciliation of Net Cash Inflows from Operating Activities to the Operating Surplus/ (Deficit) 2015
$'000
2014
$'000
Operating Result - -
Cash Before Changes in Operating Assets and Liabilities - -
Changes in Operating Assets and Liabilities 2015
$'000
2014
$'000
(Increase) /Decrease in Receivables (3) (7)
Increase /(Decrease) in Payables (77) (174)
Net Changes in Operating Assets and Liabilities (80) (181)
Cash Inflow/(Outflow) from Operating Activities 2015
$'000
2014
$'000
Net Cash Inflow/(Outflow) from Operating Activities (80) (181)

Note 50. Budgetary Reporting

The following are brief explanations of major line item variances between budget estimates and actual outcomes. Variances are considered to be major variances if both of the following criteria are met:

  1. The line item is a significant line item: the line item actual amount accounts for more than 10% of the relevant associated category (Income, Expenses and Equity totals) or sub-element (e.g. Current Liabilities and Receipts from Operating Activities totals) of the financial statements; and
  2. The variances (original budget to actual) are greater than plus (+) or minus (-) 10% of the budget for the financial statement line item.
Statement of Assets and Liabilities on Behalf of The Territory Line Items Actual 2014-15
$'000
Original Budget1
2014-15
$'000
Variance
$'000
Variance2 % Variance Explanation
Cash and Cash Equivalents - 261 (261) # The variance is due to the utilisation of cash to pay Territorial expenses at year-end. Due to the nature of the Territorial accounts the Directorate aims to keep the cash balance to a minimum at year-end.
Receivables 10 - 10 # The variance relates to the utilisation of cash to pay Territorial expenses at year-end and the Directorate's aim to keep the cash balance to a minimum at year-end.
Payables 10 261 (251) (96) The variance against budget is primarily due to a reduction in cash held in the Directorate's Territorial bank account at year-end. Due to the nature of the Territorial accounts, any cash held at year-end is owed to the Territory Banking Account as a payable.

1. Original Budget refers to the amounts presented to the Legislative Assembly in the original budgeted financial statements in respect of the reporting period (2014-15 Budget Statements). These amounts have not been adjusted to reflect supplementary appropriation or appropriation instruments.
2. # in the Line Item Variance % column represents a variance that is greater than 999 per cent or less than -999 per cent.
3. There were no variations against budget in the Statement of Income and Expenses on Behalf of the Territory or the Cash Flow Statement on Behalf of the Territory in accordance with the criteria in (a) and (b) above.