Appendix M

Financial Information
Contents		Page	
Certification of Financial Statements	121	
Audit Report	122	
Statement of Revenues and Expenses	124	
Statement of Assets and Liabilities	126	
Statement of Program Expenses and Revenues	128	
Statement of Program Assets and Liabilities	130	
Statement of Cash Flows	132	
Schedule of Commitments	134	
Schedule of Contingencies	134	
Statement of Transactions by Fund	135	
Notes to and Forming Part of the Financial Statements	136	

Statement by Departmental Secretary and
 Principal Accounting Officer to be inserted

Audit Report to be inserted

Departmental Revenues and Expenses
for the year ended 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
NET COST OF SERVICES				
Expenses				
Employees	4A	33,667	30,637	
Suppliers	4B	16,110	13,027	
Depreciation and amortisation	4C	1,859	1,704	
Write down of assets	4D	(96)	617	
Interest		15	 	
Expenses of trust account businesses	4E	24,744	33,512	
Total expenses		76,299	79,497	
				
Revenues from independent sources				
Net gains from sales of assets	7A	31	12	
Other revenues from independent sources	8	1,382	1,037	
Revenues of trust account businesses	7B	26,731	34,836	
Total revenues from independent sources		28,144	35,885	
Net cost of services		48,155	43,612	
				
REVENUES FROM GOVERNMENT				
Appropriations used for:				
Ordinary annual services (net appropriations)	9A	51,525	43,281	
Other services		130	100	
Resources received free of charge	9B	739	730	
Trust Fund moneys transferred to Consolidated
  Revenue Fund	
9C	
 	
(2,194)	
Total revenues from government		52,394	41,917	
				
Operating surplus/deficit before 
  extraordinary items		
4,239	
(1,695)	
Net revenues or expenses from extraordinary items:				
Restructuring	6	 	(1,035)	
Operating surplus/deficit		4,239	(2,730)	
Accumulated results at 1 July 		2,606	5,336	
Accumulated results 30 June		6,845	2,606	
The above statement should be read in conjunction with the accompanying notes.

Administered Revenues and Expenses
for the year ended 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
REVENUES				
Interest and dividends	7C	3,301,094	4,602,771	
Net foreign exchange gains		 	714,933	
Other	7D	2,581,452	1,423,456	
Total revenues 		5,882,546	6,741,160	
				
EXPENSES				
Grants	5A	16,727,648	15,967,991	
Subsidies	5B	 	200,000	
Net foreign exchange losses		399,648	 	
Interest and other financing costs	4F	10,334,023	11,137,806	
Other	4G	1,343,445	124,541	
Total expenses		28,804,764	27,430,338	
				
Net cost to government		(22,922,218)	(20,689,178)	
				
TRANSFERS				
Cash from Commonwealth Public Account		32,404,081	n/a	
Cash to Commonwealth Public Account		(10,085,155)	n/a	
Net change in administered assets		(603,292)	n/a	
				
Accumulated results at 1 July	12B	(97,500,398)	n/a	
Transfer from reserves	12B	(2,925,390)	n/a	
Change in accounting policy		100,901,393	n/a	
Accumulated results at 30 June	12B	(127,687)	n/a	
The above statement should be read in conjunction with the accompanying notes.

Departmental Assets and Liabilities
As at 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
				
DEBT				
Leases	10A	219	 	
Total debt		219	 	
				
PROVISIONS AND PAYABLES				
Employees	11A	12,953	12,876	
Suppliers	11B	3,310	2,948	
Other	11C	832	705	
Total provisions and payables		17,095	16,529	
				
Total liabilities		17,314	16,529	
				
EQUITY				
Accumulated results		6,845	2,606	
Reserves		4,463	4,463	
Total equity	12A	11,308	7,069	
				
Total liabilities and equity		28,622	23,598	
				
FINANCIAL ASSETS				
Cash	13A	6,287	275	
Receivable	13B	3,914	2,411	
Total financial assets		10,201	2,686	
				
NON-FINANCIAL ASSETS				
Infrastructure, plant and equipment	14A,B	9,358	10,198	
Inventories	14C	4,573	6,072	
Other	14D	4,490	4,642	
Total non-financial assets		18,421	20,912	
				
Total assets		28,622	23,598	
				
Current liabilities		7,521	6,953	
Non-current liabilities		9,793	9,576	
Current assets		16,096	10,432	
Non-current assets		12,526	13,166	
The above statement should be read in conjunction with the accompanying notes.

Administered Assets and Liabilities
as at 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
DEBT				
Government securities	10B	111,204,749	112,040,933	
Loans	10C	9,390,921	3,869,589	
Total debt		120,595,670	115,910,522	
				
PROVISIONS AND PAYABLES				
Grants	11D	30,000		
Other	11E	16,066,002	12,452,899	
Total provisions and payables		16,096,002	12,452,899	
				
Total liabilities		136,691,672	128,363,421	
				
EQUITY				
Accumulated results		(127,687)	(97,500,398)	
Reserves		8,112,510	8,103,255	
Total Equity	12B	7,984,823	(89,397,143)	
Total liabilities and equity		144,676,493	38,966,278	
				
FINANCIAL ASSETS				
Cash	13C	2,305,164	511,228	
Receivables	13D	129,251,385	22,539,907	
Investments	13E	13,119,944	15,915,144	
Total financial assets		144,676,493	38,966,279	
Total assets		144,676,493	38,966,279	
				
Current liabilities		29,545,837	26,434,980	
Non-current liabilities		107,145,835	101,928,443	
Current assets		29,474,680	5,968,099	
Non-current assets		115,201,813	32,998,180	
The above statement should be read in conjunction with the accompanying notes.

Departmental Revenues and Expenses by Program
for the year ended 30 June 1997
	Treasury	Royal Australian Mint	Total	
	1996‑97	1995-96	1996-97	1995-96	1996-97	1995-96	
	$’000	$’000	$’000	$’000	$’000	$’000	
NET COST OF SERVICES							
Expenses							
Employees	33,667	30,637	 	 	33,667	30,637	
Suppliers	16,110	13,027	 	 	16,110	13,027	
Depreciation and amortisation	1,859	1,704	 	 	1,859	1,704	
Write down of assets	(96)	617	 	 	(96)	617	
Interest	15	 	 	 	15	 	
Expenses of trust account businesses	 	 	24,744	33,512	24,744	33,512	
Total expenses	51,555	45,985	24,744	33,512	76,299	79,497	
							
Revenues from independent sources							
Net gains from sales of assets	31	12	 	 	31	12	
Other revenues from independent sources	1,382	1,037	 	 	1,382	1,037	
Revenues of trust account businesses	 	 	26,731	34,836	26,731	34,836	
Total revenues from independent sources	1,413	1,049	26,731	34,836	28,144	35,885	
Net cost of services	50,142	44,936	(1,987)	(1,324)	48,155	43,612	
							
REVENUES FROM GOVERNMENT							
Appropriations used for:							
Ordinary annual services (net appropriations)	51,525	43,281	 	 	51,525	43,281	
Other services	130	100	 	 	130	100	
Resources received free of charge	739	730	 	 	739	730	
Trust fund moneys transferred to
  Consolidated Revenue Fund	

 	
(2,194)	
	
(2,194)	
Total revenues from government	52,394	44,111	 	(2,194)	52,394	41,917	
							
Operating result before extraordinary items	2,252	(825)	1,987	(870)	4,239	(1,695)	
Restructuring	 	(1,035)	 	 	 	(1,035)	
Operating surplus/deficit	2,252	(1,860)	1,987	(870)	4,239	(2,730)	

Administered Revenues and Expenses by Program
for the year ended 30 June 1997
	Treasury	Royal Australian Mint	Total	
	1996-97	1995-96	1996-97	1995-96	1996-97	1995-96	
	$’000	$’000	$’000	$’000	$’000	$’000	
REVENUES							
Interest and dividends	3,301,094	4,602,771	 	 	3,301,094	4,602,771	
Net foreign exchange gains	 	714,933	 	 	 	714,933	
Other	2,581,452	1,423,456	 	 	2,581,452	1,423,456	
Total revenues	5,882,546	6,741,160	 	 	5,882,546	6,741,160	
							
EXPENSES							
Subsidies	 	200,000	 	 	 	200,000	
Grants	16,727,648	15,967,991	 	 	16,727,648	15,967,991	
Net foreign exchange losses	
399,648	

 	
399,648	
 	
Interest and other
  financing costs	
10,334,023	
11,137,806	

10,334,023	
11,137,806	
Other	1,343,445	124,541	 	 	1,343,445	124,541	
Total expenses	28,804,764	27,430,338	 	 	28,804,764	27,430,338	
							
Net cost to government	
(22,922,218)	
(20,689,178)	

(22,922,218)	
(20,689,178)	
							
TRANSFERS							
Cash from Commonwealth
  Public Account	

32,404,081	

n/a	

 	

32,404,081	

n/a	
Cash to Commonwealth
  Public Account	

(10,085,155)	

n/a	

 	

(10,085,155)	

n/a	
Net change in
  administered assets	
(603,292)	
n/a	

(603,292)	
n/a	
							
Accumulated results
  at 1 July	
(97,500,398)	
n/a	

(97,500,398)	
n/a	
Transfer from reserves	(2,925,390)	n/a	 	 	(2,925,390)	n/a	
Change in accounting policy	100,901,393	n/a			100,901,393	n/a	
Accumulated results
  at 30 June	
(127,687)	
n/a	

(127,687)	
n/a	

Departmental Assets and Liabilities by Program
as at 30 June 1997
	Treasury	Royal Australian Mint	Total	
	1996-97	1995-96	1996-97	1995-96	1996-97	1995-96	
	$’000	$’000	$’000	$’000	$’000	$’000	
							
DEBT							
Leases	219	 	 	 	219	 	
Total debt	219	 	 	 	219	 	
							
PROVISIONS
  AND PAYABLES							
Employees	10,956	10,682	1,997	2,194	12,953	12,876	
Suppliers	397	506	2,913	2,442	3,310	2,948	
Other	4	 	828	705	832	705	
Total provisions
  and payables	
11,357	
11,188	
5,738	
5,341	
17,095	
16,529	
							
Total liabilities	11,576	11,188	5,738	5,341	17,314	16,529	
							
EQUITY							
Accumulated results	(3,818)	(6,070)	10,663	8,676	6,845	2,606	
Reserves	125	125	4,338	4,338	4,463	4,463	
Total equity	(3,693)	(5,945)	15,001	13,014	11,308	7,069	
							
Total liabilities
  and equity	
7,883	
5,243	
20,739	
18,355	
28,622	
23,598	
							
FINANCIAL ASSETS							
Cash	24	18	6,263	257	6,287	275	
Receivables	3,344	10	570	2,401	3,914	2,411	
Total financial assets	3,368	28	6,833	2,658	10,201	2,686	
							
NON-FINANCIAL ASSETS							
Infrastructure, plant
  and equipment	
3,357	
3,866	
6,001	
6,332	
9,358	
10,198	
Inventories	 	 	4,573	6,072	4,573	6,072	
Other	1,158	1,349	3,332	3,293	4,490	4,642	
Total non-financial assets	4,515	5,215	13,906	15,697	18,421	20,912	
							
Total assets	7,883	5,243	20,739	18,355	28,622	23,598	

Administered Assets and Liabilities by Program
as at 30 June 1997
	Treasury	Royal Australian Mint	Total	
	1996-97	1995-96	1996-97	1995-96	1996-97	1995-96	
	$’000	$’000	$’000	$’000	$’000	$’000	
DEBT							
Government securities	111,204,749	112,040,933	 	 	111,204,749	112,040,933	
Loans	9,390,921	3,869,589	 	 	9,390,921	3,869,589	
Total debt	120,595,670	115,910,522	 	 	120,595,670	115,910,522	
							
PROVISIONS
  AND PAYABLES							
Grants	30,000				30,000		
Other	16,066,002	12,452,899	 	 	16,066,002	12,452,899	
Total provisions
  and payables	
16,096,002	
12,452,899	

16,096,002	
12,452,899	
							
Total liabilities	136,691,672	128,363,421			136,691,672	128,363,421	
							
EQUITY							
Accumulated results	(127,689)	(97,500,398)	 	 	(127,689)	(97,500,398)	
Reserves	8,112,510	8,103,255	 	 	8,112,510	8,103,255	
Total Equity	7,984,821	(89,397,143)	 	 	7,984,821	(89,397,143)	
Total liabilities and equity	144,676,493	38,966,278	 	 	144,676,493	38,966,278	
							
FINANCIAL ASSETS							
Cash	2,305,164	511,228	 	 	2,305,164	511,228	
Receivables	129,251,385	22,539,907	 	 	129,251,385	22,539,907	
Investments	13,119,944	15,915,144	 	 	13,119,944	15,915,144	
Total financial assets	144,676,493	38,966,279	 	 	144,676,493	38,966,279	
Total assets	144,676,493	38,966,279	 	 	144,676,493	38,966,279	

Departmental Cash Flows
for the year ended 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
				
OPERATING ACTIVITIES				
Cash received				
Appropriations		48,321	43,381	
Sale of goods and services		29,833	35,796	
Total cash received		78,154	79,177	
Cash used				
Employees		(39,136)	(36,649)	
Suppliers		(32,105)	(38,674)	
Interest		(11)		
Trust Fund moneys transferred to
  Consolidated Revenue Fund		
533	
(3,189)	
Total cash used		(70,719)	(78,512)	
Net cash from operating activities	15A	7,435	665	
INVESTING ACTIVITIES				
Cash received				
Proceeds from sales of infrastructure, plant and equipment		58	6	
Total cash received 		58	6	
Cash used				
Purchase of infrastructure, plant and equipment		(1,281)	(1,525)	
Other		(200)		
Total cash used		(1,481)	(1,525)	
Net cash from investing activities		(1,423)	(1,519)	
				
Net increase in cash held		6,012	(854)	
add cash at 1 July 		275	1,129	
Cash at 30 June 	13A	6,287	275	
The above statement should be read in conjunction with the accompanying notes.

Administered Cash Flows
for the year ended 30 June 1997
	Notes	1996-97
$’000	1995-96
$’000	
OPERATING ACTIVITIES				
Cash received				
Interest		1,582,218	n/a	
Dividends		2,141,559	n/a	
Cash from Commonwealth Public Account		17,280,464	n/a	
Other		1,238,161	n/a	
Total cash received		22,242,402	n/a	
				
Cash used				
Grants		16,567,033	n/a	
Appropriations to other agencies		130,615	n/a	
Cash to Commonwealth Public Account		4,961,938	n/a	
Other		582,816	n/a	
Total cash used		22,242,402	n/a	
Net cash from operating activities		 	n/a	
				
INVESTING ACTIVITIES				
Cash received				
Transfer from Commonwealth Public Account		4,265,256	n/a	
Proceeds from sales of equity instruments		12,500	n/a	
Repayments of advances		85,183	n/a	
SWAPS proceeds received		4,797,397	n/a	
Total cash received		9,160,336	n/a	
				
Cash used				
Transfer to Commonwealth Public Account		4,895,080	n/a	
Purchase of equity instruments		11,536	n/a	
Purchase of SWAP principal		4,253,720	n/a	
Total cash used		9,160,336	n/a	
Net cash from investing activities		 	n/a	
				
FINANCING ACTIVITIES				
Cash received				
Transfer from Commonwealth Public Account		78,219,594	n/a	
Proceeds from borrowing 		67,279,424	n/a	
State & Commonwealth contributions into DRRTA		781,714	n/a	
Total cash received		146,280,732	n/a	
				
Cash used				
Transfer to Commonwealth Public Account		67,783,582	n/a	
Repayments of debt		66,334,273	n/a	
Interest paid on securities and loans		10,365,120	n/a	
Loan management expenses		3,684	n/a	
Loan flotation expenses		137	n/a	
Total cash used		144,486,796	n/a	
Net cash from financing activities	15B	1,793,936	n/a	
				
Net increase in cash held		1,793,936	n/a	
Add cash at 1 July		511,228	n/a	
Cash at 30 June	13C	2,305,164	n/a	
The above statement should be read in conjunction with the accompanying notes.
Schedule of Commitments
as at 30 June 1997
	Departmental	Administered	
	1996-97	1995-96	1996-97	1995-96	
	$’000	$’000	$’000	$’000	
					
OTHER COMMITMENTS					
Operating leases	10,828	25,293	 	 	
Other commitments	119	6,821			
Total other commitments	10,947	32,114	 	 	
BY MATURITY					
One year or less	4,129	9,859	 	 	
From one to two years	3,942	4,321	 	 	
From two to five years	2,876	10,996	 	 	
Over five years	 	6,938	 	 	
Total other commitments	10,947	32,114	 	 	

Schedule of Contingencies
as at 30 June 1997
		Departmental	Administered	
		1996-97	1995-96	1996-97	1995-96	
		$’000	$’000	$’000	$’000	
						
CONTINGENT LOSSES						
Uncalled shares		 	 	7,107,565	6,390,945	
Claims for damages/costs 		500	 	 	500	
Other 		 	 	 	30,000	
Total contingent losses		500	 	7,107,565	6,421,445	
						
CONTINGENT GAINS						
Claims for damages		 	 	500	 	
Total contingent gains		 	 	500	 	
						
Total contingencies		500	 	7,107,065	6,421,445	

Statement of Transactions by Fund
for the year ended 30 June 1997
	Notes	1996-97
Budget
$		1996-97
Actual
$	1995-96
Actual
$	
Consolidated Revenue
  Fund						
RECEIPTS	17	7,772,968,000		13,663,119,824	8,955,433,476	
Total receipts		7,772,968,000		13,663,119,824	8,955,433,476	
						
EXPENDITURE						
Expenditure from
  special appropriations:	
18	
29,618,253,000		
31,680,359,302	
28,371,607,381	
Expenditure from
  annual appropriations:	
19					
Appropriation Act (No. 1)		895,635,000	}			
Appropriation Act (No. 3)		n/a	}	176,780,465	88,947,831	
Audit Act 1901 (s 35)		1,152,000	}			
Appropriation Act (No. 2)		189,583,000	}			
Appropriation Act (No. 4)		n/a	}	187,614,508 	483,232,529	
Total expenditure		30,704,623,000		32,044,754,275	28,943,787,741	
						
Loan Fund	20					
RECEIPTS		 		67,783,471,199	67,226,175,930	
EXPENDITURE		 		67,783,479,193	59,176,659,884	
						
Trust Fund	21					
Heads of Trust
  (private moneys)						
Receipts		69,736,000		69,678,425	16,086,477	
Expenditure		69,749,000		69,896,067	15,730,272	
Trust Accounts
  (Commonwealth activities)						
Receipts		892,537,000		2,330,956,894	1,310,348,868	
Expenditure		869,195,000		1,358,156,907	1,283,657,432	
Total receipts		962,273,000		2,400,635,319	1,326,435,345	
Total expenditure		938,944,000		1,428,052,974	1,299,387,704	
The above statement should be read in conjunction with the accompanying notes.

Notes to and Forming Part of the Financial Statements
for the year ended 30 June 1997
Note No.	Description	Page No.	
1	Reporting Entity and Objectives	137	
2	Summary of Significant Accounting Policies	137	
3	Events Occurring After Balance Date	148	
4	Goods and Services Expenses	148	
5	Grants and Subsidies	149	
6	Extraordinary Items	149	
7	Non-taxation Revenue	150	
8	Reconciliation of Revenue from Independent Sources	151	
9	Revenues from Government	151	
10	Debt	152	
11	Provisions and Payables	153	
12	Equity	154	
13	Financial Assets	155	
14	Non-Financial Assets	157	
15	Cash Flow Reconciliation	160	
16	Remote Contingencies	162	
17	Receipts to the Consolidated Revenue Fund	163	
18	Expenditure from Special Appropriations	165	
19	Expenditure from Annual Appropriations	166	
20	Receipts and Expenditure of the Loan Fund	168	
21	Receipts and Expenditure of the Trust Fund	169	
22	Appropriation for Future Reporting Periods	174	
23	Executive Remuneration	175	
24	Services Provided by the Auditor-General	176	
25	Act of Grace Payments and Waivers	176	
26	Average Staffing Level	177	

Note 1: Reporting Entity and Objectives
The reporting entity comprises the Department of the Treasury, the Development Allowance Authority, the Foreign Investment Review Board, the Loan Council and the Royal Australian Mint (the Mint), hereafter referred to as ‘the Department’. In these statements, ‘the Department’ does not correspond with the Department of the Treasury.
The Department comprises two programs:
Program 1:	Treasury (including the secretariats of the Development Allowance Authority, the Foreign Investment Review Board and the Loan Council).
Program 2:	Royal Australian Mint.
The objectives of these programs are respectively:
Program 1:	To improve living standards of the Australian community through high, sustainable economic and employment growth with low inflation and efficient and sustainable use of resources.
Program 2: 	To produce and supply Australia’s coinage needs and to pursue ancillary commercial opportunities in a way that maximises returns to Government.
Treasury is funded predominantly by Parliamentary appropriations. The Royal Australian Mint operates as a government business, and seeks to make a commercial return on investment.
The financial report encompasses various trust accounts and all the Funds through which the Department controls resources to carry on its functions. In the process of reporting on the Department as a single entity all transactions and balances within that entity have been eliminated.
Note 2: Summary of Significant Accounting Policies
(A)	Basis of Accounting
The financial statements are required by section 50 of the Audit Act 1901 and are a general purpose financial report. The financial statements have been prepared in accordance with Guidelines on Financial Statements of Commonwealth Departments issued by the Minister for Finance in June 1997 (the ‘Guidelines’). The Guidelines require compliance with Australian Accounting Standards, Accounting Guidance Releases issued by the Australian Accounting Research Foundation, other relevant mandatory professional reporting requirements (Consensus Views of the Urgent Issues Group) and having regard to Statements of Accounting Concepts.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention. Except where stated they do not take account of changing money values.
The continued existence of the Department in its present form, and with its present programs, is dependent on Government policy and on continuing appropriations by Parliament for the Department’s administration and programs.
Where it is not practicable to adopt the 1997 guidelines in full, departments are permitted continuing compliance with the previous (1995) version.
(B)	Change in Accounting Policy
A number of changes made in the 1997 Guidelines involve changes to accounting policies.  These and other changes are identified in these notes.
(C)	Rounding
Amounts are rounded to the nearest $1,000 except in relation to the following items:
•	Statement of Transactions by Fund and associated notes;
•	Act of Grace Payments, Waivers and Write‑offs; and
•	Remuneration of Executives.
It should be noted that in some cases totals may not add due to rounding.
(D)	Departmental and Administered Items
Departmental assets, liabilities, revenues and expenses are those items that are controlled by the Department including:
•	computers, plant and equipment used in providing goods and services;
•	liabilities for employee entitlements;
•	revenues from running cost appropriations and from user charging, etc, where the proceeds are deemed appropriated under section 35 of the Audit Act 1901; and
•	employee expenses and other administrative expenses incurred in providing goods and services.
Administered items are those items which are controlled by the Government and managed in a fiduciary capacity by the Department. These items include grant payments to other governments, interest on public debt and dividend revenue from financial institutions. 
The purpose of the separation of administered and departmental items is to enable the assessment of administrative efficiency of the Department in providing goods and services. Administered items are distinguished from departmental items in the financial statements by shading.
(E)	Taxation
The Department’s activities are exempt from all forms of taxation, except for fringe benefits tax and superannuation guarantee charges. 
(F)	Insurance
In accordance with Commonwealth Government policy, assets are not insured and losses are expensed as they are incurred.
(G)	Inventories
Inventories held for sale are valued at the lower of cost and net realisable value.
Inventories not held for sale are valued at cost.
Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:
•	raw materials and stores — purchase cost on a first‑in‑first‑out basis; and
•	finished goods and work in progress — cost of direct materials and labour plus attributable costs that are capable of being allocated on a reasonable basis.
(H)	Bad and Doubtful Debts
Bad debts are written off during the year in which they are identified. 
A provision is raised for any doubtful debts based on a review of all outstanding accounts as at year end.
(I)	Cash
Cash includes notes and coins held, deposits held at call with a bank or financial institution and balances of commercial trust account held in the Commonwealth Public Account (CPA).
(J)	Recognition of Property, Plant and Equipment
All depreciable property, plant and equipment with historical costs equal to or in excess of $2,000 are capitalised in the year of acquisition except that computer equipment in excess of $500 is capitalised in the year of acquisition. Assets with historical costs less than these thresholds are expensed in the year of acquisition unless they form a large group of similar assets which is significant in total. 
(K)	Measurement of Property, Plant and Equipment
Property, plant and equipment are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange for liabilities undertaken. 
Property, plant and equipment acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair values at the date of acquisition. 
Property, plant and equipment acquired as a consequence of restructuring administrative arrangements are initially recognised at the amounts at which they were recognised in the transferor department’s accounts immediately prior to the restructuring.
Revaluations of property, plant and equipment are accounted for by separately restating the gross amount and the related accumulated depreciation of the revalued asset.

The carrying amounts of property, plant and equipment held by the Mint have been reviewed to determine whether they are in excess of their recoverable amounts. In assessing recoverable amounts the relevant cash flows have not been discounted to their present value.
The department is implementing its progressive revaluations as follows (changes in accounting policy from 1995-96 are indicated):
•	leasehold improvements will continue to be revalued progressively every three years on a geographical basis;  the current progressive revaluation commenced in 1995-96.
•	plant and equipment will be initially revalued over the financial years 1997-98 and 1998-99, and thereafter over successive three-year periods, also on a geographical basis.  (Previous policy was to carry these assets on the basis of the value recognised on acquisition).
Assets in each class acquired after the commencement of the progressive revaluation cycle will be reported on the basis of the value initially recognised on acquisition for the duration of the progressive revaluation then in progress.
(L)	Depreciation of Property, Plant and Equipment
Depreciable property, plant and equipment are written‑off to their estimated residual values over their estimated useful lives. Estimated useful lives are reviewed annually. 
Depreciation is calculated on a straight‑line basis which reflects the pattern of usage of the Department’s depreciable property, plant and equipment.
Leasehold improvements are amortised on a straight‑line basis over the lesser of their estimated useful life or the unexpired period of the lease.
(M)	Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non‑current assets. Under operating leases the lessor effectively retains all such risks and benefits. 

Where property, plant and equipment is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception of the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.
Operating lease payments are recognised as expenses on a basis which is representative of the pattern of benefits derived from the leased assets. 
(N)	Employee Entitlements
Provisions for employee entitlements encompass annual leave and long service leave. No provision is made for sick leave as all sick leave is non‑vesting and the average sick leave taken in future years by employees of the Department is estimated to be less than the annual entitlement for sick leave. 
The provision for annual leave reflects the value of total annual leave entitlements of all employees and is recognised at the nominal amount.
The provision for long service leave reflects the value of the estimated future cash flows to be made in respect of all employees. In determining the present value of the liability, the Department has taken into account attrition rates and pay increases through promotion and inflation.
(O)	Superannuation
Staff of the Department contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. Employer contributions in relation to these schemes have been expensed in these financial statements.
No liability is shown for superannuation in the Statement of Assets and Liabilities as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.
(P)	Resources Received Free of Charge
Resources received free of charge are recognised as revenue where the amounts can be reliably measured. Use of those resources is recognised as an expense or an asset where appropriate.
(Q)	Comparative Figures
Where necessary, comparative figures have been adjusted to conform with changes in presentation in these financial statements.
(R)	Appropriations
Appropriations for departmental operations other than running costs are recognised as revenue to the extent that the appropriations are spent.
From 1 July 1996, the Guidelines require that amounts received as appropriations for departmental running costs operations are to be recognised according to their nature under the Running Costs Arrangements.  Under these arrangements, the Department receives a base amount of funding by way of appropriation for running costs each year.  The base amount may be supplemented in any year by a carryover from the previous year of unspent appropriations up to allowable limits, as well as by borrowings at a discount against future appropriations of the base amount.  The repayment of a borrowing is effected by an appropriate reduction in the appropriation actually received in the year of repayment.
The Department now recognises:
•	as revenue an amount equal to the base funding spent in the year or carried over to the next year,
•	as a receivable, an amount equal to the amount of unspent appropriation carried over to the next financial year, and
•	as a liability, outstanding amounts of running costs borrowings.  The interest cost of the borrowing is expensed over the life of the borrowing.
This change in policy means that the carryover to 1996-97 of $3,333,000 is recognised as revenue and receivable in 1996-97.
(S)	Statement of Accounting Policies for Administered Items
Administered items include:
(i)	Unclaimed Moneys
Moneys from bank accounts inactive for seven years are transferred to the Commonwealth from banking institutions. These unclaimed moneys are deposited in the Consolidated Revenue Fund and are recognised as administered revenue. A provision representing the expected recovery of these moneys less refunds paid, based on an analysis of historical transactions, is recognised.
(ii)	Guarantees
Guarantees provided under legislation within the portfolio responsibility of the Treasurer are recognised as liabilities when it is probable that the guarantee will be called and it can be reliably measured. In all other instances such guarantees are disclosed in ‘remote contingencies’.
(iii)	State and Territory Advances
Advances made to the States and Territories are recognised at their expected recoverable amount at balance date.
(iv)	Royal Australian Mint
Seignorage and Repurchase of Circulating Coins
Seignorage is collected by the Mint on behalf of the Commonwealth, and is paid to the Department of the Treasury. Seignorage represents the difference between the face value of coinage and its cost of production and is recognised as administered revenue. 
The Mint repurchases circulating coins on behalf of the Commonwealth. The costs incurred by the Mint in repurchasing circulating coins are deducted from the seignorage payable to the Department of the Treasury.
The costs incurred by the Commonwealth in repurchasing circulating coins are offset to an extent by the sale of scrap metal and are recognised as an administered expense.
(v)	Loan Consolidation and Investment Reserve
The value of Commonwealth issued securities held in the Loan Consolidation and Investment Reserve (a Group 3 Trust Account) is deducted from the face value of the administered borrowings liability. Any gain or loss on repurchase is reported in the Statement of Revenues and Expenses. The net effect is to report the impact of transactions with external parties.

(vi)	Dividends
Dividends are recognised as revenue at the time the dividend is declared.
(vii)	Profit Distributions Receivable
Profit distributions receivable by the Commonwealth from the Reserve Bank of Australia and the Housing Loans Insurance Corporation are recognised in the financial year in which the profit is earned.
If a profit distribution has not been determined prior to finalisation of Treasury’s financial statements, it is recognised as revenue only where it can be reliably measured.
(viii)	Investments
(a)	Development Banks
Investments in development banks are classified as non‑monetary assets.
Where the information is available, these investments are recognised at historical cost. Where historical cost records are not readily obtainable, a notional cost was established at 30 June 1993 by reference to the development banks’ financial statements and exchange rates at that time.
The investment in the European Bank for Reconstruction and Development (EBRD) is recognised at historical cost, whereas the investments in the Asian Development Bank (ADB), the International Finance Corporation (IFC) and the International Bank for Reconstruction and Development (IBRD) are recognised at notional cost.
Owing to their nature, these investments are not to be revalued periodically.
(b)	International Monetary Fund (IMF)
The quota is the current value in Australian dollars of Australia’s subscription to the IMF.
The Reserve Bank’s Special Drawing Rights (SDR) retransfer liability measures the value of the SDRs the Reserve Bank holds on behalf of the Treasury, and is classified as an ‘Other Receivables’.
The SDR allocation liability reflects the current value in Australian dollars of the liability to repay to the IMF Australia’s cumulative allocation of SDRs, and is classified as an ‘Other payables’.
(ix)	Promissory Notes
Promissory notes which have been issued in foreign currencies are translated at the spot rate at balance date. Foreign currency gains and losses are recognised where applicable. Promissory notes have been issued to the International Monetary Fund, International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development and the Asian Development Bank.
(x)	Payments to the States
Grants are recognised as expenses at the time that conditions under the grant agreement have been satisfied or payment has been made.
(xi)	Wholesale Sales Tax Assistance
Wholesale sales tax subsidies are recognised as administered expenses at the time claims are assessed. The value of claims on hand, and yet to be assessed, is recognised only in cases where the value of the liability can be reliably estimated.
(xii)	Borrowings
Borrowings are measured at face value. Premiums and discounts in relation to borrowings are netted and amortised over the life of the borrowing on a straight line basis. 
Borrowings are recognised on a gross basis, including borrowings on behalf of the State and Territory Governments. Receivables relating to borrowings on behalf of the State and Territory Governments are recognised as administered assets.
(xiii)	Foreign Currency Transactions
(a)	Transactions
Foreign currency transactions are converted into Australian currency at the spot rate on the date of the transaction. 
Amounts payable and receivable in foreign currencies are converted into Australian currency at the spot rates applicable at balance date. Resulting exchange differences are recognised as administered items.
(b)	Swap Transactions
Amounts receivable and payable under swap contracts are recognised on a gross basis. Differences between amounts payable and receivable are due to foreign currency and interest rate fluctuations, and are recognised as administered items. Foreign currency movements tend to dominate any interest rate movements.
(xiv)	Administered Investment
The Commonwealth’s investment in other controlled authorities and companies in this portfolio is valued at the aggregate of the Commonwealth’s share of the net assets and net liabilities of each entity.  The investment was initially recognised as an asset as at 30 June 1996, with a contra entry being made to the Administered Investment Reserves.  Contra entries for all movements in the investment subsequent to 30 June 1996 are made to an Administered Assets Revaluation Reserve.

Note 3: Events Occurring After Balance Date
No events have occurred after balance date that effect the financial statements.

	1996-97	1995-96	
	$’000	$’000	
Note 4: Goods and Services Expenses
Note 4A: Employee expenses			
Basic remuneration (for services provided)	33,404	29,671	
Other employee expenses	263	966	
Total employee expenses	33,667	30,637	
			
Note 4B: Suppliers expenses			
Supply of goods and services	11,727	13,027	
Operating lease rentals	4,383	 	
Total supplier expenses	16,110	13,027	
			
Note 4C: Depreciation and amortisation			
Provision for depreciation — infrastructure, plant and equipment	
1,859	
1,704	
Total depreciation and amortisation	1,859	1,704	
			
Note 4D: Write down of assets			
Infrastructure, plant and equipment	 	530	
Receivables	(96)	87	
Total write down of assets	(96)	617	
			
Note 4E: Expenses of trust account businesses			
Employees and Suppliers*	24,233	33,040	
Depreciation and amortisation	475	421	
Interest	36	51	
Total expenses of trust account businesses	24,744	33,512	
			
*	Employees and suppliers unable to be split due to disclosure in Group 2 trust account financial statements.

	1996-97	1995-96	
	$’000	$’000	
Note 4: Goods and Services Expenses (Cont’d)
Note 4F: Interest and other financing costs			
Government securities	9,716,279	10,249,174	
SWAP Partner/counterparty	617,744	888,632	
Total interest and other financing costs	10,334,023	11,137,806	
			
Note 4G: Other administered expenses			
IMF Charges	32,853	38,380	
Loan Consolidation and Investment Reserve (LCIR)
   — Other expenditure	
10	
38,745	
Other	1,310,582	47,416	
Total other administered expenses	1,343,445	124,541	
Note 5: Grants and Subsidies
Note 5A: Grants			
Grants to other sectors
  (appropriations to other Commonwealth entities)	
130,615	
215,537	
Grants to State and Territory governments	16,567,033	15,731,385	
Other	30,000	21,069	
Total Grants	16,727,648	15,967,991	
			
Note 5B: Subsidies			
Subsidies		200,000	
Note 6: Extraordinary Items
In respect of programs or sub-programs assumed the following assets and liabilities were recognised at the date of transfer:

Infrastructure, Plant and Equipment	 	20	
Other	 	11	
Total assets recognised	 	31	
Creditors	 	(55)	
Provisions	 	(947)	
Other	 	(64)	
Total liabilities recognised	 	(1,066)	
Total extraordinary items	 	(1,035)	

	1996-97	1995-96	
	$’000	$’000	
Note 7: Non-taxation Revenue
Note 7A: Net gains from asset sales			
Net gains from sales of assets	31	12	

Note 7B: Revenues of trust account businesses			
Sales of goods and services	25,983	34,318	
Other	748	518	
Total revenues of trust account businesses	26,731	34,836	
			
Note 7C: Administered Interest and Dividends			
Interest from other governments			
Housing agreements	245,403		
State and Territory debt	449,832		
Total interest from other governments	695,235		
Interest from other sources			
Other loans	5,761		
SWAP partner/counterparty	870,477		
Other	24,195		
Total interest from other sources	900,433		
Total interest from all sources	1,595,668	1,848,074	
			
Dividends			
Commonwealth authorities	1,705,426	2,754,697	
Total dividends	1,705,426	2,754,697	
Total interest and dividends	3,301,094	4,602,771	

	1996-97	1995-96	
	$’000	$’000	
Note 7: Non-taxation revenue (Cont’d)
Note 7D: Other Administered Revenue			
Amortisation of premiums in relation to borrowings on issue	
363,674	
402,722	
IMF Maintenance of Value adjustment	 	554,104	
Net profit received on redemption of early debt repayment	 	335,784	
Transfer from Consolidated Revenue Fund
  to Trust Fund (LCIR)	
1,442,613	
 	
Australian Securities Commission regulation fees
  and receipts	
297,918	
 	
State Fiscal Contributions	395,225	 	
Other	82,022	130,846	
Total other administered revenue	2,581,452	1,423,456	
Note 8: Reconciliation of Revenues from Independent Sources
Gross revenue earned:		
		
Recoveries from other Departments	926	472	
Other	456	565	
Total revenue earned	1,382	1,037	
Note 9: Revenues from Government
Note 9A: Appropriations			
Appropriations	48,192	41,138	
Parliamentary appropriations carried over to following year	3,333	2,143	
Ordinary annual services	51,525	43,281	
			
Other services	130	100	
			
Note 9B: Resources Received Free of Charge			
Resources received free of charge	739	730	
			
Note 9C: Trusts Fund Moneys Transferred			
Trust fund moneys transferred to Consolidated Revenue 
   Fund(a)	
 
(2,194)	
(a)	An amount of $2,194 million in 1995-96, being surplus funds not required by the Royal Australian Mint Trust Fund, was paid to Consolidated Revenue Fund.  It is reflected in this way in order not to distort the Net Cost of Services.

	1996-97	1995-96	
	$’000	$’000	
Note 10: Debt
Note 10A: Leases			
Finance Lease Commitments			
Not later than one year	99	 	
Later than one year and not later than two years	98	 	
Later than two years and not later than five years	51	 	
Minimum lease payments	248	 	
Deduct: future finance charges	29	 	
Lease liability	219	 	
Lease liability is represented by:			
Current 	81	 	
Non-current 	138	 	
			
Note 10B: Administered Debt			
Government securities			
Securities issued on behalf of the Commonwealth	106,708,387	106,659,344	
Securities issued on behalf of the States	3,717,821	4,451,504	
Unamortised net premiums on securities	778,541	930,085	
Total government securities	111,204,749	112,040,933	
			
Note 10C: Loans			
Maturity schedule for promissory notes: 	3,778,141	3,869,589	
Payable: within one year	6,365	 	
in one to two years	6,365	 	
in two to five years	21,878	 	
in more than five years *	3,743,533	 	
	3,778,141	3,869,589	
			
Payable to CPA — Loans to States	5,612,780	 	
Total loans	9,390,921	3,869,589	
*	IMF promissory notes have been disclosed in this category as the ageing analysis could not be reliably performed for this item.

	1996-97	1995-96	
	$’000	$’000	
Note 11: Provisions and Payables
Note 11A: Employee liabilities			
Salaries and wages	496	412	
Annual leave	4,567	4,736	
Long service leave	7,813	7,728	
Superannuation	10	 	
Separation and redundancies	67	 	
Total employee entitlement liability	12,953	12,876	
			
Note 11B: Suppliers			
Trade creditors	3,310	2,948	
Total suppliers	3,310	2,948	
			
Note 11C: Other			
Other creditors	767	567	
Unearned income	65	118	
Workers compensation	 	20	
Total other	832	705	
			
Note 11D: Grants			
Grants	30,000	 	
			
Note 11E: Other			
			
SWAP principal	11,275,384	8,411,569	
Interest payable	3,849,944	3,146,492	
IMF SDR allocation	880,017	857,049	
Provisions for unclaimed moneys repayments	33,788	30,862	
Other creditors	26,869	6,927	
Total other	16,066,002	12,452,899	

Note 12: Equity
Note 12A: Equity — Departmental

Item	Accumulated results	Asset revaluation reserve	Total
Equity	
	$’000	$’000	$’000	
Balance 1 July 1996	2,606	4,463	7,069	
Operating result	4,239		4,239	
Balance  30 June 1997	6,845	4,463	11,308	

Note 12B: Equity — Administered	
Item	Accumulated results	Asset revaluation reserve	Administered Investments reserve	Total	
	$’000	$’000	$’000	$’000	
Balance 1 July 1996	(97,500,398)		8,103,255	(89,397,143)	
Transfers to/(from) investment 
   reserves	
(2,925,390)	
	
2,925,390	
	
Operating results	(603,292)	 	 	(603,292)	
Net revaluation increase	 	796,096	 	796,096	
Net decrease in investment 
   reserve	

(3,712,231)	
(3,712,231)	
Change in accounting policy	100,901,393			100,901,393	
Balance 30 June 1997	(127,687)	796,096	7,316,414	7,984,823	
Note: Transfer of revaluation reserve component in relation to the Commonwealth Bank of Australia. The transfer was done because Treasury no longer holds Commonwealth Bank of Australia shares.

	1996-97	1995-96	
	$’000	$’000	
Note 13: Financial Assets
Note 13A: Cash			
Cash at bank and on hand	6,287	275	
			
Note 13B: Receivables			
Trade debtors	602	2,527	
Other debtors	3,333	1	
Less provision for doubtful debts	(21)	(117)	
Total receivables	3,914	2,411	
			
Receivables (gross) are aged as follows:	3,935	2,528	
Not overdue	3,744	1,152	
Over due by:			
Less than 30 days	74	632	
30 to 60 days	35	479	
More than 60 days	82	265	

Note 13C: Financial Assets — Administered			
			
Cash in trust accounts	2,305,164	511,228	
			
Note 13D: Receivables 			
Loans to State and Territory governments	9,584,919	10,456,858	
Less provision for doubtful debts	(328,939)	(334,089)	
	9,255,980	10,122,769	
			
Receivable from CPA Commonwealth securities	106,708,387	 	
SWAP principal owing	10,883,395	9,193,235	
Profit transfer/Dividends owing	1,703,074	2,139,207	
IMF related moneys owing	198,452	 	
Other loans	69,400	69,400	
Other	432,697	1,015,296	
Total receivables	129,251,385	22,539,907	

	1996-97	1995-96	
	$’000	$’000	
Note 13: Financial Assets (Cont’d)
Note 13E: Investments			
Shares			
Commonwealth Development Bank	 	12,500	
			
International Financial Institutions			
Asian Development Bank	281,430	281,431	
European Bank for Reconstruction and Development	51,486	51,486	
International Finance Corporation	45,868	39,340	
International Bank for Reconstruction and Development	265,082	252,059	
	643,866	624,316	
			
Quota			
International Monetary Fund	4,363,568	4,249,685	
			
Investment in Commonwealth Entities			
Reserve Bank of Australia	8,035,041	7,245,933	
Commonwealth Bank of Australia	 	3,712,231	
Housing Loan Insurance Corporation	73,099	68,512	
Australian Securities Commission	4,267	1,907	
Companies and Securities Advisory Committee	103	60	
	8,112,510	11,028,643	
Total Investments	13,119,944	15,915,144	

	1996-97	1995-96	
	$’000	$’000	
Note 14: Non-financial Assets 
Note 14A: Infrastructure, plant and equipment
			
Computers, plant and equipment — at valuation	7,191	7,528	
Accumulated depreciation	(2,552)	(2,411)	
	4,639	5,117	
			
Computers, plant and equipment — at cost	6,805	6,223	
Accumulated depreciation	(3,170)	(2,078)	
	3,635	4,145	
			
Computers, plant and equipment under finance lease	313	 	
Accumulated amortisation	(61)	 	
	252	 	
			
Leasehold improvements — at valuation	897	897	
Accumulated amortisation	(553)	(374)	
	344	523	
			
Leasehold improvements — at cost	837	598	
Accumulated amortisation	(349)	(185)	
	488	413	
Total Infrastructure, Plant and Equipment	9,358	10,198	

Note 14: Non-financial assets (Cont’d)
Note 14B: Analysis of Infrastructure, Plant, Equipment and Intangibles

TABLE A: Movement summary 1996-97 for all assets irrespective of valuation basis
Item	Leasehold Improvements	Finance Lease	Computers, plant & equipment	Total	
	$’000	$’000	$’000	$’000	
Gross value as at
  1 July 1996	
1,495	
	
13,751	
15,246	
Additions	239	313	1,049	1,601	
Disposals			(836)	(836)	
Other movements			32	32	
Gross value as at
   30 June 1997	
1,734	
313	
13,996	
16,043	
Accumulated
   Depreciation/Amortisation
   as at 1 July 1996	

559		

4,489	

5,048	
Depreciation/amortisation
   charge for assets held
   1 July 1996	

299	

162	

461	
Depreciation/amortisation
   charge for additions	
44	
61	
1,766	
1,871	
Adjustment for Disposals			(697)	(697)	
Adjustment for
   Other movements 	

2	
2	
Accumulated
   Depreciation/Amortisation
   as at 30 June 1997	

902	

61	

5,722	

6,685	
Net book value as at
   30 June 1997	
832	
252	
8,274	
9,358	
Net book value as at
   1 July 1996	
936	
	
9,262	
10,198	

Note 14: Non-financial assets (Cont’d)
TABLE B: Summary of balances of assets at valuation as at 30 June 1997
Item	Land	Buildings	Total land and buildings	Other infra-structure, plant & equipment	Intangibles	Total	
	$’000	$’000	$’000	$’000	$’000	$’000	
As at 30 June 1997							
Gross value 	 	 	 	8,088	 	8,088	
Accumulated
   Depreciation/Amortisation 	

(3,105)	
 	
(3,105)	
Net book value				4,983		4,983	
As at 30 June 1996							
Gross value 	 	 	 	8,425	 	8,425	
Accumulated
   Depreciation/Amortisation 	

 	
(2,785)	
 	
(2,785)	
Net book value				5,640		5,640	

	1996-97	1995-96	
	$’000	$’000	
Note 14: Non-financial assets
Note 14C: Inventories			
Raw materials	3,017	2,961	
Work in progress (cost)	368	316	
Finished goods (cost)	1,188	3,025	
less provision for irrecoverable amount		(230)	
Total inventories	4,573	6,072	
			
Note 14D: Other			
Coin Collection	3,168	2,968	
Prepayments	1,322	1,674	
Total other	4,490	4,642	

	1996-97	1995-96	
	$’000	$’000	
Note 15: Cash Flow Reconciliation
Note 15A: Departmental Reconciliation			
Reconciliation of net cost of services to net cash provided
  by operating activities:			
Net Cost of Services — gain/(loss)	(48,155)	(43,612)	
Revenue from government (Appropriation Receipts)	51,655	43,381	
Resources received free of charge	739	730	
Trust Fund money transferred to
  Consolidated Revenue Fund	
 	
(2,194)	
Operating result	4,239	(1,695)	
			
Depreciation/Amortisation	2,334	2,125	
Asset write-off	 	691	
Restructuring	 	(1,035)	
Loss of sale on disposal of infrastructure, plant and 
  equipment	
63	
24	
Profit on sale of infrastructure, plant and equipment	(31)	 	
			
Changes in assets and liabilities			
(Increase)/decrease in receivables 	(1,503)	(173)	
(Increase)/decrease in other assets	352	45	
(Increase)/decrease in inventories 	1,499	2,695	
Increase/(decrease) in employee liabilities	46	667	
Increase/(decrease) in suppliers	(863)	(2,776)	
Increase/(decrease) in other liabilities	1,382	97	
Increase/(decrease) in finance lease liability	(51)	 	
Asset adjustments	(31)	 	
Net cash provided by operating activities	7,435	665	

	1996-97	1995-96	
	$’000	$’000	
Note 15: Cash Flow Reconciliation (Cont’d)
Note 15B: Administered Reconciliation			
Reconciliation of net change in administered assets
  to net cash provided by operating activities:			
Net cost to government	(22,922,218)	n/a	
Cash from the Commonwealth Public Account — gross	32,404,081	n/a	
Cash to the Commonwealth Public Account — gross	(10,085,155)	n/a	
Net increase in administered assets	(603,292)	n/a	
			
Payable to Commonwealth Public Account	(5,697,962)	n/a	
Receivable from Commonwealth Public Account	106,599,355	n/a	
Change in Assets and Liabilities			
Increase in Receivables — gross	(106,706,328)	n/a	
Decrease in Prov’n for Doubtful Debts	(5,150)	n/a	
Increase in Investments	(120,938)	n/a	
Decrease in Debt — Government Securities	(836,184)	n/a	
Increase in Debt — Loans	5,521,332	n/a	
Increase in Grants	30,000	n/a	
Increase in Other Liabilities	3,613,103	n/a	
Net Cash from Operations	1,793,936	n/a	
			
Less Net Cash from Investing Activities	‑	n/a	
Less Net Cash from Financing Activities	1,793,936	n/a	
Net Cash from Operating Activities	‑	n/a	

Note 16: Administered Remote Contingencies
Note 16: Guarantees

The following borrowings have been guaranteed by the Commonwealth in respect of authorities within the Treasury portfolio:
Borrower 	Legislation Authorising
Guarantee	Principal
Covered by
Guarantee	Balance
Outstanding	Balance
Outstanding	
 			1996-97	1995-96	
 		$’000	$’000	$’000	
Papua New
  Guinea	PNG Act 1949-75 & PNG
  Loans Guarantee Act
  1975	
6,130	
6,130	
9,830	
Commonwealth
  Bank of
  Australia	

CBA Act 1959 s117 	            

  (a)	

104,174,000	

324,221,500	
Commonwealth
  Bank of
  Australia
  Superannuation
  Corporation	

CBA Act 1959 s117	

   (a)	

(d)	

3,695,566	
Commonwealth 
  Development
  Bank	

 CBA Act 1959 s117	            

  (a)	

1,102,000	

1,793,200	
Reserve Bank of 
  Australia	
RBA Act s77	             
 (b)	
41,190,050	
26,615,337	
Housing Loans 
  Insurance 
  Corporation	

HLIC Act 1965 s30, 31(b)	            

  (c)	             

 (c)	             

 (c)	
(a)	In relation to the Commonwealth Bank of Australia, the Commonwealth Bank of Australia Superannuation Corporation and the Commonwealth Development Bank, the Commonwealth guarantees all moneys that are, or may at any time become, payable to a person other than the Commonwealth. Such guarantee will be progressively phased out following the Government sell-down on 19 July 1996.
	Comparatives have been altered in order to reflect the total contingent liabilities.  In prior years off-balance sheet liabilities have not been included.
(b)	In relation to the Reserve Bank of Australia, the Commonwealth guarantees all moneys that are, or may at any time become, payable to a person other than the Commonwealth.
(c)	The principal amount covered by the guarantee and the balances outstanding are unable to be reliably measured. The guarantee relates essentially to the Housing Loans Insurance Corporation’s (HLIC) contracts of mortgage insurance and any borrowings approved by the Treasurer. As at 30 June 1997 the HLIC had no borrowings.
(d)	At the finalisation of the financial statements this figure was unavailable.

Note 17: Receipts to the Consolidated Revenue Fund
	1996-97
Estimate
$	1996-97
Actual
$	1995-96
Actual
$	
Receipts				
Advances to the
  Australian Capital Territory
Interest	

3,321,000	

3,320,582	

3,320,582	
Advances to the States under the 
  Housing Agreements
Interest
Principal	

148,400,000
67,700,000	

148,441,133
67,677,972	

151,085,094
65,034,012	
Advances to the
  Northern Territory for Housing
Interest
Principal	

1,624,000
359,000	

1,624,187
358,735	

1,639,635
343,287	
Advances to the States under the
  Housing Assistance Act 1973
Interest
Principal	

196,000
92,000	

207,131
92,329	

210,682
88,778	
Advances to the States under the States (Works and Housing Assistance) Acts
Interest
Principal	

95,100,000
16,300,000	

95,130,887
16,345,022	

95,834,740
15,641,169	
Advances to the States under the
  War Service Lands Settlements Acts 
Principal	

700,000	

709,456	

683,813	
Australian National Railways Commission
Debt repayment	
450,000,000	

Banking Act 1959 — unclaimed moneys	15,000,000	20,751,331	17,781,424	
Bank dividends	2,129,000,000	2,135,807,027	2,176,346,404	
Borrowing levy and guarantee
 charge on borrowings by
 Commonwealth Government  Enterprises	

8,117,000	

8,383,867	

8,157,069	
Commonwealth Bank — proceeds of sale	 	3,804,609,537	 	
Commonwealth Development Bank
  — proceeds of sale	
12,500,000	
12,500,000	
 	
Fiscal contributions by State Government	384,775,000	395,225,418	 	
Housing Loans Insurance Corporation —
Dividend and Special Annual Payment
Payment of reserves to the
  Consolidated Revenue Fund	
3,000,000

113,000,000	
5,752,000

9,622,000

Interest paid by States and the
  Northern Territory on other loans	
456,421,000	
469,289,046	
673,083,226	
International Monetary Fund
Maintenance of value adjustment
Remuneration	
 
10,589,000	
448,990,968
10,922,470	
 
16,425,098	

Note 17: Receipts to the Consolidated Revenue Fund (Cont’d)
	1996-97
Estimate
$	1996-97
Actual
$	1995-96
Actual
$	
Loan management expenses —
  recoveries from the States
  and the Northern Territory	

115,000	

111,069	

155,671	
Loans Securities Amendment Act 1988 —  SWAPs	
3,509,000,000	
5,655,841,179	
2,617,653,296	
Papua New Guinea Loan — Interest	5,760,000	5,760,200	4,339,877	
National Debt Sinking Fund —
  Surplus Balance on account
  of the Commonwealth	

 	

73,775,560	
Regulation of companies and securities 	280,160,000	297,918,357	72,143,677	
Repayment of outstanding C’wealth
  securities issued on behalf of
  Queensland	

 	

1,049,511,427	
Repayment of outstanding C’wealth
  securities issued on behalf of Victoria	

1,837,632,565	
Royal Australian Mint and Coinage Trust
  Account — moneys in excess of
  requirements	

59,714,000	

55,000,000	

63,000,000	
Seignorage payments  Gold Corporation	775,000	807,643	669,552	
Miscellaneous	98,000	161,592	417,509	
Section 35 of the Audit Act 1901 — to be credited to Running Costs — 
 Division 670 (1)	

1,152,000	

1,380,686	

837,330	
Total receipts	7,772,968,000	13,663,119,824	8,955,433,476	
(1)  The 1995-96 receipts $837,330 do not include an amount of $194,641 receipted by Attorney-General’s Department. This amount was transferred as part of the arrangements for the transfer of Business Law Division to Treasury.
.

Note 18: Expenditure from Special Appropriations
	1996-97
Budget
$	1996-97
Actual
$	1995-96
Actual
$	
				
Expenditure from Special Appropriations:			
Airports (Transitional) Act 1996 — former
  debts of the Federal Airports Corporation
  — Interest	

4,950,000	

Airports (Transitional) Act 1996 — former
  debts of the Federal Airports Corporation
  — Loan Management Expenses	

8,185	

Commonwealth Inscribed Stock Act 1911,
  Loans Securities Act 1919, Loans Redemption & Conversion Act 1921	

9,813,697,000	

9,767,391,569	

9,725,335,162	
Loans Securities Amendment Act 1988
  (SWAPs)	
3,394,000,000	
4,834,623,221	
2,155,361,700	
Financial Agreement Act 1994 —
  Assistance for Debt Redemption	
220,400,000	
220,358,956	
 	
Loans Redemption and
  Conversion Act 1921	
5,000	

Moomba — Sydney Pipeline
  System Sale Act 1994	
16,185,000	
16,177,481	
19,401,453	
Financial Agreement Act 1994 —
  Commonwealth Contribution to Debt
  Retirement Reserve Trust Account on
  State and Northern Territory Debt	

12,571,000	

12,583,805	

22,804,505	
Interest on Debt Retirement
  Reserve Trust Account Balances	
829,000	
633,828	
424,470	
Payment of Tax Receipt (Victoria) Act 1996	
	
555,618,065	
	
States Grants (General Purposes)
  Act 1993 and 1994	
16,058,238,000	
16,174,138,968	
15,731,385,281	
Asian Development Bank
  (Additional Subscription) Act 1995	
2,195,000	
2,169,883	
808,574	
Banking Act 1959	15,000,000	10,849,389	15,465,160	
Commonwealth Inscribed Stock Act 1911,
  Treasury Bills Act 1914 — Payment of
  Special Bond premiums on redemption	

5,000	

408	

150	
European Bank for Reconstruction
  and Development Act 1990	
1,556,000	
1,535,539	
2,946,995	
International Monetary
  Agreements Act 1947	
17,004,000	
16,348,091	
 	
Proposed Multilateral Investment
  Guarantee Agency Act 1996	
2,446,000	

Qantas Sale Act 1992 — Qantas
  Debt Servicing	
64,122,000	
62,971,914	
697,673,931	
Total Expenditure from Special
  Appropriations	
29,618,253,000	
31,680,359,302	
28,371,607,381	

Note 19: Expenditure from Annual Appropriations
	1996-97	1996-97	1995-96	
	Appropriation	Actual	Actual	
	$	$	$	
				
APPROPRIATION ACTS Nos 1 and 3				
Division 670 — Administrative				
1.	Running Costs	52,905,686	49,572,516	44,312,693	
  2.	Other Services				
	01.	Compensation and legal expenses	228,000	129,915	100,080	
	02.	Loan management expenses(a)	5,406,000	3,711,110	3,823,058	
	03.	Overseas bond issues —
  Payments in respect of lapsed
  coupons	

10,000	

924	

	04.	Australian National Railways
  Commission — Debt acquisition(b)	
695,100,000	

	05.	Proposed New Housing Loans
  Insurance Company — Payments
  in respect of insurance claims(c)	

20,000,000 	

 	
		Commonwealth Development
  Bank — Lending assistance	

20,667,000	
		Grant-in-aid — Australian
  Taxation Research Foundation	

25,000	
						
Division 673 — Australian Securities Commission
	01.	For expenditure under the
  Australian Securities Commission
  Act 1989	

122,548,000	

122,548,000	

20,000,000	
					
Division 674 — Companies and Securities Advisory Committee
	01.	For expenditure under Part 9 of the
  Australian Securities Commission
  Act 1989	

818,000	

818,000	

20,000	
TOTAL APPROPRIATION ACTS
  NOS 1 AND 3	
897,015,686	
176,780,465	
88,947,831	
(a)	The underspend reflects lower costs for loans denominated in foreign currencies and lower payments in the year in relation to two ongoing consultancies.
(b)	Legislation associated with the debt acquisition did not occur until the end of June. Debt acquisition will occur in 1997-98.
(c)	The date of corporatisation of the Housing Loans Insurance Company was deferred.  No cost associated with insurance claims therefore arose.

Note 19: Expenditure from Annual Appropriations(Cont’d)
	1996-97	1996-97	1995-96	
	Appropriation	Actual	Actual	
	$	$	$	
				
APPROPRIATION ACTS Nos 2 and 4				
Division 976 — Capital Works and Services				
1.		Australian Securities Commission
  — For expenditure under the
  Australian Securities Commission
  Act 1989	

7,249,000	

7,249,000	

 	
						
Division 977 — Payment to or for the
  States, the Northern Territory and
  the Australian Capital Territory				
	01.	Australian Capital Territory
  — Special revenue assistance 	
42,200,000	
42,200,000	
45,880,000	
	02.	Companies and securities
  regulation — Compensation
  for loss of revenue 	

131,980,000	

130,335,260	

21,069,392	
		Assistance for Debt Redemption	 	 	68,744,612	
		South Australia — Special
  assistance package 	

77,387,688	
		Tax compensation for the
  privatisation of the R & I Bank
  of Western Australia	

 	

200,000,000	
		Queensland — assistance for
  Wholesale sales tax exemption	

750,837	
						
Division 978  —  Other Services
	01.	International Finance Corporation
  — Capital Subscription	
6,791,000	
6,527,919	
 	
	02.	International Bank for
  Reconstruction and Development
  — Capital Subscription	

1,363,000	

1,302,329	

	03.	Loan Certificate held by Toowoomba RSL Club	
2,000	

		Loan to Papua New Guinea to
  provide balance of payments
  assistance	

 	

69,400,000	
TOTAL APPROPRIATION ACTS
  NOS 2 AND 4	
189,585,000	
187,614,508	
483,232,529	
TOTAL EXPENDITURE FROM
  ANNUAL APPROPRIATIONS	
1,086,600,686	
364,394,973	
572,180,361	

Note 20: Receipts and Expenditure of the Loan Fund
	1996-97	1995-96	
	Actual	Actual	
	$	$	
Receipts			
Loans raised in Australia			
Treasury Bonds	6,964,599,847	7,780,047,821	
Treasury Notes	57,372,248,513	51,397,952,243	
Treasury Bills — Internal	1,463,000,000	3,456,000,000	
Treasury Indexed Bonds	770,416,201	570,461,288	
Treasury (Adjustable Rate) Bonds	900,000,000	3,394,124,601	
Premiums on issue of Commonwealth Securities	313,206,638	627,589,977	
Total Loan Fund Receipts	67,783,471,199	67,226,175,930	
Expenditure			
Financial Agreement Act 1928, Act 1929, Act 1944,
  Act 1966 and Act 1976			
Loan Flotation Expenses	136,862	2,758,674	
Loans Redemption and Conversion Act 1921			
Redemptions Australia			
Treasury Notes	59,187,732,743	50,329,064,494	
Australian Savings Bonds	476,780	207,220	
Special Bonds	13,590	5,000	
Indexed Bonds	 	157,814,013	
Overseas	749,281,825	477,903,901	
Other	450	1,387	
Treasury Bonds	4,229,252,351	6,411,276,329	
Treasury Bills — Internal	3,456,000,000	1,502,360,000	
Discounts on redemptions — Treasury Bonds	160,500,066	162,006,394	
Discount on redemptions — Indexed Bonds	 	133,262,472	
Discount on redemptions — Overseas	84,526	 	
Total Redemptions	67,783,342,331	59,173,901,210	
Total Loan Fund Expenditure	67,783,479,193	59,176,659,884	
Note: Loan Fund receipts include an amount of $482,114,447 for Treasury Notes which was received in 1995-96 but not able to be processed into the Department of Finance system until 1996-97.

Note 21: Receipts and Expenditure of the Trust Fund
GROUP 1: Moneys Held in Trust for Persons and Authorities other than the Commonwealth
Other Trust Moneys
•	Legal Authority  Audit Act 1901, Section 62
•	Purpose  for the receipt of moneys temporarily held in trust for other persons.
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
				
Balance at beginning of reporting period	13,000	13,000	13,000	
Receipts	 	1,960	18,108	
Expenditure	13,000	1,960	18,108	
Balance at end of reporting period	 	13,000	13,000	

Services for other government and non-departmental bodies.
•	Legal Authority — Audit Act 1901, Section 60
•	Purpose  for the payment of moneys in connection with services performed on behalf of other governments and non-departmental bodies.
Balance at beginning of reporting period	8,065	8,065	4,514	
Receipts	436,000	395,101	168,385	
Expenditure	436,000	389,864	164,834	
Balance at end of reporting period	8,065 	13,301	8,065	

Services for other government and non-departmental bodies  Australian Securities Commission.
•	Legal Authority — Audit Act 1901, Section 60
•	Purpose — for the payment of moneys in connection with services performed on behalf of the Australian Securities Commission.
Balance at beginning of reporting period	352,654	352,654	 	
Receipts	69,300,000	69,219,489	15,899,984	
Expenditure	69,300,000	69,414,441	15,547,330	
Balance at end of reporting period	352,654	157,702	352,654	
Note: This trust account was transferred from the Attorney-General’s portfolio in the Administrative Arrangements orders following the 1996 Federal Election.

Note 21: Receipts and Expenditure of the Trust Fund (Cont’d)
Trustee Companies (ACT) Deposits Trust Fund.
•	Legal Authority — Audit Act 1901, Section 62
•	Purpose — for the purpose of the Australian Capital Territory Ordinance in relation to Trustee Companies.
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	149,140	149,140	149,140	
Receipts	 	61,875	 	
Expenditure	 	89,802	 	
Balance at end of reporting period	149,140	121,213	149,140	
Investment Transactions Accounts
Invested Balance at beginning of
  reporting period	
148,940	
148,940	
148,940	
Purchase of Investment	 	50,000	 	
Realisation of Investment	 	77,927	 	
Invested Balance at end of 
  reporting period	
148,940	
121,013	
148,940	
Cash Balance at end of 
  reporting period	
200	
200	
200	
Investments
The balance of investments at 30 June 1997 includes the following investments held in the corporate name of the Treasurer of the Commonwealth pursuant to sub-section 10(1) of the Trustee Companies Ordinance 1947 on behalf of the Trust.
	Rate of Interest	Date of Maturity 	Face Value of Investment 	Cost of Investment	
	%		$	$	
	12.5	January 1998	20,000	19,540	
	13.0	April 1998	10,000	10,875	
	7.0	April 2000	20,000	19,999	
	10.0	October 2002	20,000	20,599	
	7.5	July 2005	30,000	30,000	
	7.5	July 2005	20,000	20,000	
	Total		120,000	121,013	

Note 21: Receipts and Expenditure of the Trust Fund (Cont’d)
GROUP 2: Working Accounts Covering Certain Services Conducted on a Commercial Basis

Royal Australian Mint and Coinage Trust Account
•	Legal Authority — Audit Act 1901, Section 62A
•	Purpose — (a) payment for goods and services and salaries, wages and other expenses incurred for the production, supply, sale and distribution of coinage, medals, dies, plaques and other like items, and for any other activity entered into by the Royal Australian Mint as approved by the Treasurer, and (b) repayment of capital funds and payment of moneys in excess of requirements to the Consolidated Revenue Fund.
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	249,885	249,885	903,883	
Receipts	75,000,000	69,129,412	73,929,284	
Expenses	75,000,000	63,350,404	74,583,282	
Balance at end of reporting period	249,885	6,028,893	249,885	

GROUP 3: Other Moneys held in Trust to meet Future Payments
Debt Retirement Reserve Trust Account
•	Legal Authority — Financial Agreement Act 1994, Section 6
•	Purpose — for the payment and receipt of moneys in accordance with the Financial Agreement Act 1994
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	17,287,094	17,287,094	 	
Receipts	794,537,000	781,714,331	1,099,970,235	
Expenses	794,195,000	793,791,091	1,082,683,142	
Balance at end of reporting period	17,629,094	5,210,334	17,287,094	

Note 21: Receipts and Expenditure of the Trust Fund (Cont’d)
Loan Consolidation and Investment Reserve Trust Account
•	Legal Authority — Loan Consolidation and Investment Reserve Act 1955
•	Purpose — for the purposes of repurchasing or redeeming securities which represent a portion of the public debt of the Commonwealth
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	2,848,034,375	2,848,034,375	2,762,907,817	
Receipts	23,000,000	1,480,113,151	136,418,148	
Expenses	 	501,015,412	51,291,589	
Balance	2,871,034,375	3,827,132,114	2,848,034,375	

Investment Transactions Accounts
		1996-97	1995-96	
		Actual	Actual	
		$	$	
Invested Balance at beginning of
  reporting period		
2,836,207,621	
2,184,730,733	
Purchase of Investment		1,464,546,153	3,476,929,533	
Realisation of Investment		2,773,575,242	2,825,452,645	
Invested Balance at end of 
  reporting period		
1,527,178,532	
2,836,207,621	
Cash balance at end of reporting period		
2,299,953,582	
11,826,753	

Note 21: Receipts and Expenditure of the Trust Fund (Cont’d)
Investments
The balance of investments at 30 June 1997 includes the following investments in Commonwealth Government Inscribed Stock held in the corporate name of the Treasurer of the Commonwealth pursuant to subsection 6(3) of the Loan Consolidation and Investment Reserve Act 1955.
	Rate of Interest	Date of Maturity 	Face Value of Investment	Cost of Investment	
	%		$	$	
Commonwealth Government 	13.50	15 Aug 1997	112,000	135,883	
Inscribed Stock	14.00	15 Apr 1999	5,224,000	5,862,755	
	13.00	15 May 2000	7,578,148	8,084,448	
	7.00	15 Feb 2001	31,000	30,412	
	5.25	15 Jul 2003	2,000	1,708	
	6.50	15 Jul 2003	4,000	3,502	
	5.40	15 May 2004	10,500	8,478	
	7.00	15 Jul 2005	2,000	1,927	
			12,963,648	14,129,113	
					
Internal Treasury Bills	1.00	30 Jun 1998	1,463,000,000	1,463,000,000	
Total Australian Securities			1,475,963,648	1,477,129,113	
					
Dutch Guilder Loans*	9.00	15 Dec 1997	3,885,761	3,685,256	
	8.25	1 Nov 1999	32,210,627	30,236,206	
	7.25	1 Jan 2001	19,036,111	16,127,957	
Total Overseas Securities			55,132,499	50,049,419	
Total Investments			1,531,096,147	1,527,178,532	
*Converted at $A=NLG 1.4566.
Northern Territory Debt Sinking Fund Trust Account
•	Legal Authority — Audit Act 1901, Section 62A
•	Purpose — to fund expenditure on the repurchase and redemption of securities in the reduction of the public debt of the Northern Territory.
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	 	 	9,374	
Receipts	 	 	 	
Expenses	 	 	9,374	
Balance at end of reporting period	 	 	 	
Note: This trust account was abolished under the Financial Agreement Act 1994. Redemption of debt will now be effected through the Debt Retirement Reserve Trust Account.

Note 21: Receipts and Expenditure of the Trust Fund (Cont’d)
GROUP 4: Funds and Accounts Not Part of the Accounts of the Minister for Finance

National Debt Sinking Fund
•	Legal Authority — National Debt Sinking Fund Act 1966, Section 8
•	Purpose — to fund expenditure on repurchase or redemption of securities by the National Debt Commission in reduction of the public debt of the Commonwealth and the States. 
	1996-97	1996-97	1995-96	
	Budget 	Actual	Actual	
	$	$	$	
Balance at beginning of reporting period	 	 	75,058,844	
Receipts	 	 	31,201	
Expenses	 	 	75,090,045	
Balance at end of reporting period	 	 	 	

Note: This trust account was abolished by the National Debt Sinking Fund Repeal Act 1994. Redemption of debt will now be effected through the Debt Retirement Reserve Trust Account for the States and through other existing accounts for the Commonwealth.
Note 22: Appropriation for Future Reporting Periods
The following table summarises appropriations for the 1997-98 financial year at 30 June 1997:
	1997-98	
	$	
		
Special Appropriations	30,387,076,000	
Appropriation Act No 1	1,239,500,000	
Appropriation Act No 2	177,154,000	
	31,803,730,000	

Note 23: Executive Remuneration
The number of executive positions that received or were due to receive fixed remuneration of $100,000 or more:
	1996-97	1995-96	
	Number(a)	Number(b)	
$100,000 to $110,000	6	24	
$110,001 to $120,000	15	2	
$120,001 to $130,000	8	8	
$130,001 to $140,000	3	1	
$140,001 to $150,000	4	1	
$150,001 to $160,000	1	2	
$160,001 to $170,000	4	 — 	
$180,001 to $190,000	1	 — 	
$210,001 to $220,000	 — 	1	
$240,001 to $250,000	1	 — 	
	43	39	
			
The aggregate amount of fixed remuneration of executive officers shown above.	$5,604,788	$4,577,738	
			
The aggregate amount of performance pay paid during the year to executive officers shown above.	$68,950	$263,020	
(a)	1996‑97 figures based on the total remuneration of qualifying positions.
(b)	1995-96 figures based on the remuneration of individual officers.
The definition of executive officer has changed in the 1997 Guidelines so that effectively the number of qualifying positions is to be reported, rather than individuals i.e. individuals were not necessarily remunerated at the levels shown. This means that the remuneration for each position will reflect that of the substantive occupant and any officers who acted in the position.  The 1995-96 figures have not been recalculated on the basis of the 1997 guidelines.  For this reason the reported increase in fixed remuneration considerably exceeds the increase in pay for individuals. The average increase in fixed remuneration for individuals in 1996‑97 was 2 per cent.
Fixed remuneration includes actual salary, higher duties allowances, employer superannuation component, an estimate of the non-salary component of the SES package and overseas allowances for SES officers based overseas.

	1996-97	1995-96	
	$’000	$’000	
Note 24: Services provided by the Auditor-General
Financial statement audit services are provided free of charge to the Department. The trust account business, Royal Australian Mint, is required to remit an amount equivalent to the cost of its audit into the Consolidated Revenue Fund. The fair value of audit services provided was:
Royal Australian Mint	70	78	
Treasury	210	228	
	280	306	

Other services provided by the Auditor-General:

Royal Australian Mint, a security review to the value $4,000 was also performed during the reporting period.

Note 25: Act of Grace Payments, Waivers and Amounts Written Off
No Act of Grace payments were made during the reporting period.			
			
Amounts written off in accordance with subsection 70C(1) of the Audit Act 1901:			
Lost, deficient, condemned, unserviceable or obsolete stores		11,511	

Administered
Waivers
Waivers of amounts owing to the Commonwealth were made pursuant to subsection 70C(2) of the Audit Act 1901. These were amounts payable by South Australia in relation to Commonwealth advances under the States(Works and Housing) Assistance Acts and Commonwealth-State Housing Agreements.	19,856,910	19,856,910	

Note 26: Average Staffing Levels
Average staffing levels by program and in total were as follows
	1996-97	1995-96	
	Number	Number	
			
Program 1: Treasury	523	498	
Program 2: Royal Australian Mint	135	158	
Total	658	656	

Acronyms and Abbreviations 
A&TSI	Aboriginal and Torres Strait Islanders	
ABS	Australian Bureau of Statistics	
ADB	Asian Development Bank	
ACTU	Australian Council of Trade Unions	
AGPS	Australian Government Publishing Service	
ANAO	Australian National Audit Office	
APEC	Asia‑Pacific Economic Cooperation	
APS	Australian Public Service	
ASO	Administrative Service Officer	
ASOCC	Administrative Service Officers’ Consultative Committee	
ASX	Australian Stock Exchange	
ATAX	Australian Taxation Studies Program	
ATO	Australian Taxation Office	
AusAID	Australian Agency for International Development	
CEDA	Committee for the Economic Development of Australia	
CNPS	Competitive Neutrality Policy Statement	
COAG	Council of Australian Governments	
CPI	Consumer Price Index	
CPSU	Community and Public Sector Union	
DAA	Development Allowance Authority	
EAP	Employee Assistance Program	
EBRD	European Bank for Reconstruction and Development	
EEO	Equal Employment Opportunity	
FIRB	Foreign Investment Review Board	
FOI	Freedom of Information	
FSI	Financial System Inquiry	
GAA	Graduate Administrative Assistant	
GBE	Government Business Enterprise	
GDP	Gross Domestic Product	
HLIC	Housing Loans Insurance Corporation	
Acronyms and Abbreviations continued
IDC	Interdepartmental  Committee	
IEG	Investment Experts Group	
IMF	International Monetary Fund	
IPPA	Investment Promotion and Protection Agreement	
ITAA	Income Tax Assessment Act (1936)	
ITO	Information Technology Officer	
MAI	Multilateral Agreement on Investment	
MINCO	Ministerial Council for Corporations	
MYEFO	Mid Year Economic and Fiscal Outlook	
NAB	New Arrangements to Borrow	
NAIRU	Non-Accelerating Inflation Rate of Unemployment	
NCP	National Competition Policy	
NESB 1	Non‑English‑Speaking Background, First Generation	
NESB 2	Non‑English‑Speaking Background, Second Generation	
NGO	Non Government Organisation	
NIA	National Institute of Accountants	
OECD	Organisation for Economic Co-operation and Development	
OH&S	Occupational Health and Safety	
PDI	Public Debt Interest	
PGSA	Post Graduate Study Award	
PNG	Papua New Guinea	
PO	Professional Officer	
PRISMOD	Price, Revenue and Incidence Simulation Model	
PRU	Policy Research Unit	
R&D	Research and Development	
RBA	Reserve Bank of Australia	
RC	Running Costs	
REIA	Real Estate Institute of Australia	
RETMOD	Retirement Model	
RIM	Retirement Income Modelling 	
RIM Group	Retirement Income Modelling Group (model)	
RO	Research Officer 	
Acronyms and Abbreviations continued
SCAG	Standing Committee of Attorneys-General	
SES	Senior Executive Service	
SITO	Senior Information Technology Officer	
SMART	System for Ministerial Answering, Routing and Tracking	
SO	Senior Officer	
SOA	Senior Officer Grade A	
SOB	Senior Officer Grade B	
SOC	Senior Officer Grade C	
SPD	Structural Policy Division	
SPO	Senior Professional Officer	
SRO	Senior Research Officer	
TAB	Treasury Adjustable Rate Bond	
TES	Treasury Expenditures Statement	
TIB	Treasury Indexed Bond	
TPD	Taxation Policy Division	
TRYM	Treasury Macroeconomic Model of the Australian Economy	
TWERP	Treasury Wholesale Sales Tax, Excise, Revenue and Price Model	
UNCITRAL	United Nations Commission on International Trade Law	
UNCTAD	United Nations Conference on Trade and Development	

Index of Compliance with Requirements
Requirement		Page	
Letter of Transmission		iii	
Aids to Access			
Table of Contents		v	
Alphabetical Index		182	
Compliance Index		181	
Acronyms and Abbreviations		178	
Introduction and Guide to Report		ix	
Contact officer for information available on request		ix	
Overview		1	
Corporate Statement		9	
Program Performance Reporting			
Portfolio Program Structure		6	
Financial and Staffing Resources Summary		12	
Appendices			
Staffing Overview	Appendix B	77	
Industrial Democracy 	Appendix C	87	
Occupational Health and Safety	Appendix D	89	
Freedom of Information	Appendix G	99	
Advertising and Market Research	Appendix I	112	
Reconciliation of Program and Appropriation Elements	Appendix K	116	
Subprogram Financial and Staffing Resources   Major Variations	Appendix L	117	
Financial Information	Appendix M	120