Strong GovernmentStrong business
Strong Community2013–14 Final Budget Outcome and
Consolidated Financial Report
Acknowledgements
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Content from this publication may be reproduced with appropriate acknowledgement, as permitted under the Copyright Act 1968. © Government of South Australia 2014
ISSN 1837–6762
Strong GovernmentStrong business
Strong Community2013–14 Final Budget Outcome
Final Budget Outcome 2013–14
General enquiries regarding financial information papers should be directed to:
The Under Treasurer Department of Treasury and Finance State Administration Centre 200 Victoria Square Adelaide SA 5000
Copies may be obtained from:
SERVICE SA Government Legislation Outlet Ground Floor EDS Centre 108 North Terrace Adelaide SA 5000
Website: www.treasury.sa.gov.au
© Government of South Australia 2014
ISSN 1036-3807
Table of contents
Introduction ............................................................................................................................... 3
Chapter 1: 2013–14 Final Budget Outcome
Overview .................................................................................................................................................. 5 General government sector operating results ........................................................................................... 6 Balance sheet indicators ......................................................................................................................... 11
Chapter 2: Economic performance
The international and national economic context for the year 2013–14 ................................................ 15 South Australian economic performance for the year 2013–14 ............................................................. 16
Appendices
Appendix A Uniform Presentation Framework tables and Loan Council allocation report ................ 17 Appendix B Consolidated Account ..................................................................................................... 39 Appendix C General government and non-financial public sector financial statistics time series ...... 47
Final Budget Outcome 2013–14 1
2 Final Budget Outcome 2013–14
Introduction
The Final Budget Outcome reports the 2013–14 financial results for the Government of South Australia’s key fiscal targets and provides an analysis of these results against earlier estimates.
Chapter 1 provides an overview of the 2013−14 final outcomes with a focus on the general government sector financial outcomes and financial liabilities. The chapter includes:
• a discussion of variations between the 2013−14 final outcome for revenues and expenses of the general government sector and 2013–14 estimates included in the 2014−15 Budget
• public sector net debt and superannuation liability levels as at 30 June 2014.
Chapter 2 provides an assessment of the performance of the South Australian economy in 2013−14.
The appendices to this document provide the following information.
• Appendix A contains the Uniform Presentation Framework reporting for the general government sector, the public non-financial corporations sector, the non-financial public sector and the public financial corporations sector. Further information is also provided on general government sector taxation revenue, grant revenue and expenses, and expenses and capital expenditure by function. This appendix also details the Loan Council Allocation for 2013−14.
• Appendix B summarises the receipts and payments of the Consolidated Account.
• Appendix C provides a time series of financial statistics.
This document provides explanation of variations between 2013–14 estimates included in the 2014–15 Budget and the 2013–14 outcome. Variations between the estimates included in the 2014−15 Budget and the 2013−14 Budget are discussed in the 2014−15 Budget Papers.
Final Budget Outcome 2013–14 3
4 Final Budget Outcome 2013–14
Introduction
Chapter 1: 2013–14 Final Budget Outcome
Overview
The Government of South Australia recorded a net operating deficit of $1071 million for 2013–14 for the general government sector. This represents an improvement of $161 million from the $1232 million deficit estimated at the time of the 2014–15 Budget.
The improvement in 2013–14 largely reflects a combination of higher than expected revenue ($89 million) and lower than expected expenditure ($72 million).
The net operating deficit of $1071 million follows a deficit of $948 million in 2012–13.
General government expenses increased by 0.8 per cent in nominal terms from 2012–13, a real reduction of 1.7 per cent. General government revenue increased by 0.07 per cent in nominal terms, a real reduction of 2.4 per cent.
The net lending deficit was $1733 million in 2013–14, an improvement of $75 million over the estimate at the time of the 2014–15 Budget. The improvement primarily reflects the better than expected operating outcome.
Net debt for the general government sector at June 2014 was $7071 million, $184 million higher than estimated at the time of the 2014–15 Budget. The deterioration reflects the variation between accruals included in the estimated result and those recognised at year end.
Net debt to revenue at 30 June 2014 was 46.1 per cent, compared to 45.1 per cent estimated at the time of the 2014–15 Budget. The outcome is below the government’s 2013–14 fiscal target of 50 per cent.
The unfunded superannuation liability was $10.9 billion at 30 June 2014, $208 million lower than at 30 June 2013.
Table 1.1 shows the 2013−14 outcomes for key general government financial indicators compared with earlier estimates and the 2012–13 outcomes.
Table 1.6 and table 1.7 provide reconciliations of variations between estimates and outcomes for net operating balance and net lending respectively.
Final Budget Outcome 2013–14 5
Table 1.1: General government sector aggregates ($million)
2013−14 2013−14 Estimate at Estimate at 2012−13 2013−14 2014−15 2013−14 Outcome Budget Budget Outcome
Revenue 15 333 15 265 15 254 15 343 Expenses -16 282 -16 176 -16 487 -16 415 Net operating balance - 948 - 911 -1 232 -1 071 Net acquisition of non-financial assets 55 544 576 661 Net lending -1 003 -1 455 -1 808 -1 733
Memorandum items: Net debt 5 227 6 951 6 887 7 071 Net debt to revenue 34.1 45.5 45.1 46.1 Unfunded superannuation 11 085 11 802 10 506 10 877
Note: Totals may not add due to rounding.
General government sector operating results
Operating revenue
The major items contributing to the variations in the general government sector financial outcome compared with previous estimates are discussed below.
Table 1.2: Operating revenue ($million)
2013−14 2013−14 Estimate at Estimate at 2013−14 2014−15 2013−14 Budget Budget Outcome
Revenue Taxation revenue 4 206 4 121 4 085 Grants 7 883 7 855 7 804 Sales of goods and services 2 077 2 199 2 265 Interest income 102 33 40 Dividend and income tax equivalent income 328 375 398 Other 669 673 752 Total revenue 15 265 15 254 15 343
Note: Totals may not add due to rounding.
Operating revenues for the general government sector for 2013−14 were $89 million higher than estimated at the time of the 2014−15 Budget.
Taxation revenue
Taxation revenue was $36 million lower than the estimated result due to lower than expected revenue from payroll tax, conveyance duty and insurance duty partially offset by higher than expected revenues from motor vehicle taxes. Table 1.3 summarises variations in actual tax receipts for 2013–14 relative to the estimated outcome at the time of the 2014–15 Budget.
6 Final Budget Outcome 2013–14
Chapter 1: Final Budget Outcome
Table 1.3: Variations in actual tax collections for 2013–14 against the estimated result in the 2014–15 Budget ($million)
Variation Payroll tax -18 Taxes on property -20 Insurance taxes -8 Gambling taxes -1 Motor vehicle taxes 10 Total taxation -36
Note: Totals may not add due to rounding.
Payroll tax revenue was $18 million lower than estimated, mainly due to softer than expected employment conditions.
Conveyance duty revenue was $16 million lower than estimated, reflecting the timing of receipts and slightly lower than expected residential property transfers. While residential property transfers were lower than anticipated, they did grow strongly in 2013–14 compared with 2012–13 levels.
Insurance duty revenue was $8 million lower than estimated primarily due to the timing of back payments following the resolution of a court case associated with the treatment of some insurance policies. Some of these back payments will now be received in 2014–15 instead of 2013–14.
Motor vehicle tax revenues exceeded the estimated result by $10 million. This is largely due to higher than expected motor vehicle registration revenue resulting from a shift in renewal patterns from three months to 12 months and the impact of the monthly direct debit payment option for light vehicles.
Grant revenue
Total grant revenue was lower than estimated in the 2014–15 Budget by $51 million.
National Partnership payments were around $81 million lower than expected mainly due to timing issues. Payments for specialist disability services, River Murray sustainability, upgrades to South Road and the North–South corridor were expected to be received in 2013–14 but will now be received in 2014–15.
This is partially offset by GST revenue grants which were $34 million higher than expected primarily due to higher than anticipated growth in the total GST pool available for distribution in 2013–14.
Sales of goods and services
Revenue from sales of goods and services was around $66 million higher than the estimated result. This mainly reflects higher revenue from health unit fees, regulatory fees and other user charges partially offset by lower than expected Commonwealth contributions.
Dividend and income tax equivalent income
Dividend and income tax equivalent revenue was $23 million higher than estimated primarily due to higher than expected distributions from SA Water. This included higher income tax equivalent revenue largely due to a tax effect adjustment, partially offset by lower dividends resulting from lower than anticipated water sales.
Final Budget Outcome 2013–14 7
Chapter 1: Final Budget Outcome
Other revenue
Other revenues were $79 million higher than the estimated result primarily due to the recognition of contributed assets by the South Eastern Water Conservation and Drainage Board, including $54 million in drainage channels, structures and fencing.
Operating expenses
Table 1.4: Operating expenses ($million)
2013−14 2013−14 Estimate at Estimate at 2013−14 2014−15 2013−14 Budget Budget Outcome
Expenses Employee expenses 7 155 7 258 7 353 Superannuation expenses
Superannuation interest cost 434 468 468 Other superannuation expenses 754 781 736
Depreciation and amortisation 895 864 812 Interest expenses 379 304 300 Other property expenses — — — Other operating expenses 3 975 4 210 4 169 Grants 2 585 2 601 2 577 Total expenses 16 176 16 487 16 415
Note: Totals may not add due to rounding.
The final outcome for total operating expenses in 2013−14 was $72 million lower than the estimate reported in the 2014−15 Budget papers.
Employee expenses and superannuation expenses
Employee expenses (including other superannuation expenses) were $50 million higher than estimated mainly due to higher than budgeted expenditure within Health and Ageing as a result of a higher number of FTEs compared to budget. The higher than budgeted employee expenditure in Health and Ageing was largely offset by underspending in other expense categories by Health and Ageing.
Depreciation and amortisation
Depreciation and amortisation was $52 million lower than estimated, reflecting changes in the completion schedules of capital investment projects primarily in the Department for Health and Ageing and the Department of Planning, Transport and Infrastructure, and other changes to agency depreciation estimates.
Interest expenses
Interest expenses were $4 million lower than the estimated result reflecting favourable borrowing costs despite the higher than expected net debt level.
Other operating expenses
Other operating expenses were $41 million lower than estimated, mainly due to underspending across a range of agencies (including Health and Ageing which partly offsets higher than budgeted employee expenditure), partially offset by higher than budgeted operating expenses in Planning, Transport and Infrastructure, mainly relating to site remediation and public transport services costs.
8 Final Budget Outcome 2013–14
Chapter 1: Final Budget Outcome
Grants
Grant expenses were $24 million lower than estimated, mainly due to the timing of grant payments, including payments from the Industry Financial Assistance Deposit Account and a payment to the University of South Australia to provide support for the creation of the Hewlett Packard Innovation and Collaboration Centre Project.
Net acquisition of non-financial assets
Table 1.5: Net acquisition of non-financial assets ($million)
2013−14 2013−14 Estimate at Estimate at 2013−14 2014−15 2013−14 Budget Budget Outcome
Net acquisition of non-financial assets Purchases of non-financial assets 1 858 1 567 1 590 less Sales of non-financial assets 419 127 117 less Depreciation 895 864 812 plus Change in inventories — — 1 plus Other movements in non-financial assets — — — equals Total net acquisition of non-financial assets 544 576 661
Note: Totals may not add due to rounding.
The general government sector net acquisition of non-financial assets is a positive $661 million in 2013−14. This outcome is $85 million higher than the 2013−14 estimate reported in the 2014−15 Budget.
The higher 2013−14 outcome for the net acquisition of non-financial assets compared with the estimate reported in the 2014−15 Budget reflects higher than estimated net capital expenditure ($23 million) across a range of agencies, mainly due to higher than expected contributed assets (particularly $54 million in drainage and associated assets in the South East) partially offset by slippage of projects from 2013−14 into future years.
Other variances contributing to the higher net acquisition of non-financial assets are lower asset sales ($10 million), lower depreciation expenses ($52 million) and an increase in inventories ($1 million).
Final Budget Outcome 2013–14 9
Chapter 1: Final Budget Outcome
Table 1.6: Net operating balance ― policy and parameter variations ($million)
2013−14 Estimate at 2013−14 Budget - 911
Parameter and other variations Revenue — taxation - 85 Revenue — other 79 Operating expenses - 103 Net effect of parameter and other variations - 109
Policy measures up to the budget Revenue measures — taxation — Revenue measures — other - 1 Revenue — offsets 16 Use of provisions 18 Operating expenses - 213 Net effect of policy measures up to the 2014−15 budget - 179
Policy measures in the Budget Revenue — other - 21 Revenue offsets — Operating expenses - 13 Net effect of policy measures in the 2014−15 Budget - 34
Estimate at 2014−15 Budget -1 232 Parameter and other variations
Revenue — taxation - 36 Revenue — other 125 Operating expenses 72 Net effect of parameter and other variations 161
Final outcome -1 071 Note: Totals may not add due to rounding.
Table 1.7: Net lending ― policy and parameter variations ($million)
2013−14 Estimate at 2013−14 Budget -1 455 Net effect of operating variations - 321 Investing variations(a)
Net effect of parameter variations - 64 Policy variations up to the 2014−15 Budget 31 Policy variations in the 2014−15 Budget — Use of specific provisions to offset policy variations 1 Total investing variations - 32
Estimate at 2014−15 Budget -1 808 Net effect of operating variations after the 2014-15 Budget 161 Investing variations(a)
Net effect of parameter variations - 85 Final outcome -1 733
Note: Totals may not add due to rounding. (a) Investing variations relate to the movements in the net acquisition of non-financial assets.
10 Final Budget Outcome 2013–14
Chapter 1: Final Budget Outcome
Balance sheet indicators
The following sections provide key balance sheet indicators and associated commentary for both the general government sector and the non-financial public sector.
General government sector
Table 1.8: General government sector ― key balance sheet indicators
June 2014 June 2014 Estimate at Estimate at June 2013 2013−14 2014−15 June 2014 Outcome Budget Budget Outcome
Net debt $m 5 227 6 951 6 887 7 071 % of total revenue 34.1 45.5 45.1 46.1
Unfunded superannuation liability $m 11 085 11 802 10 506 10 877 % of total revenue 72.3 77.3 68.9 70.9
Net financial liabilities $m 19 079 21 792 20 456 20 761 % of total revenue 124.4 142.8 134.1 135.3
Net financial worth $m 1 742 - 108 986 1 056 % of total revenue 11.4 - 0.7 6.5 6.9
Net worth $m 39 363 37 888 39 208 39 654 % of total revenue 256.7 248.2 257.0 258.4
Net debt
Net debt increased by $1.8 billion from 30 June 2013 to 30 June 2014, due to the combined impact of general government spending on the acquisition of non-financial assets and a cash deficit on operations of $343 million.
Table 1.9 provides details of the movement in general government net debt in 2013–14.
Table 1.9: General government sector net debt ($million)
Net debt at 30 June 2013 5 227 Increase in net debt: General government cash deficit 1 797 Other variations 46 Total increase in net debt 1 844 Net debt at 30 June 2014 7 071
Note: Totals may not add due to rounding.
The general government sector net debt of $7.1 billion at 30 June 2014 is a $184 million deterioration compared to the estimate at the time of the 2014−15 Budget. This deterioration reflects the variation between accruals included in the estimated result and those recognised at year end.
Final Budget Outcome 2013–14 11
Chapter 1: Final Budget Outcome
Unfunded superannuation liability
The largest liability on the government’s balance sheet is the unfunded superannuation liability. The unfunded superannuation liability was $10.9 billion at 30 June 2014, $208 million lower than at 30 June 2013, and $371 million higher than estimated in the 2014−15 Budget. Changes in the liability are the direct result of changes in the discount rate used to value the liability, along with higher than expected earnings and other demographic factors.
Table 1.10 provides details of the movements in the unfunded superannuation liability in 2013–14.
Table 1.10: Unfunded superannuation liability ($million)
Unfunded superannuation liability as at 30 June 2013 11 085 Nominal superannuation interest expense(a) 468 Past service payments - 422 Higher than expected returns on investments(b) - 399 Excess expected investment earnings over discount rate - 107 Other movements - 119 Estimate of 30 June 2014 unfunded superannuation liability as at 2014−15 Budget 10 506 Higher than expected returns on investments in 2013–14(c) - 62 Impact of change in discount rate from 4.3 per cent to 4.1 per cent 427 Other movements 6 Unfunded superannuation liability as at 30 June 2014 10 877
Note: Totals may not add due to rounding. (a) The nominal superannuation interest expense represents the increase during the year in the present value of the defined
benefit obligation because the benefits are one period closer to settlement. (b) The 2013–14 earnings rate at the time of the 2014–15 Budget was 14.1 per cent, compared with the long-term
earnings assumption of 7.0 per cent. (c) The 2013–14 earnings rate at 30 June 2014 was 14.9 per cent compared to 14.1 per cent at the time of the
2014–15 Budget.
In addition to the normal annual movements in the unfunded superannuation liability arising from the nominal superannuation interest expense and past service payments, material changes arose from variations in the discount rate used to value the liability.
In the period between the release of the 2014−15 Budget and 30 June 2014 further material changes impacting on the value of the unfunded liability at 30 June 2014 included:
• the prevailing long-term Commonwealth Government bond rate at 30 June 2014 was 4.1 per cent, a 0.2 percentage point change from budget time. This resulted in an increase of $427 million to the liability
• an improvement in the return on superannuation assets reduced the liability by $62 million.
The government’s closed defined benefit superannuation schemes create a liability for the government to pay future benefits to scheme members in accordance with the terms of the schemes. A program began in 1994−95 to fully fund the superannuation liability by 2034. In 2013−14 a $422 million payment was made to the superannuation schemes as part of that program.
The accounting standard for employee entitlements requires that superannuation benefits are valued at the net present value of future obligations. This is calculated by discounting the gross liability using market yields on government bonds.
Given the long-term nature of the liability, the spot market yield of the longest term Commonwealth Government bond balance date is used as the discount rate for the purpose of this valuation. As evident in table 1.10, small changes in the long-term bond rate have a material impact on the reported liability.
12 Final Budget Outcome 2013–14
Chapter 1: Final Budget Outcome
Net financial liabilities
In addition to net debt and unfunded superannuation liabilities, net financial liabilities include other financial liabilities and financial assets (excluding equity held in public non-financial corporations and public financial corporations).
Net financial liabilities amounted to $20.8 billion at 30 June 2014; $305 million higher than the estimate at the time of the 2014−15 Budget. This increase is primarily the result of the previously discussed movements in the unfunded superannuation liability and net debt.
Aside from net debt and unfunded superannuation liabilities, other employee benefits liabilities are the next largest contributor to net financial liabilities. Other employee benefits (predominantly long service leave) totalled $2.45 billion at 30 June 2014 compared to the estimate of $2.47 billion at the time of the 2014–15 Budget.
Net financial worth and net worth
General government sector net worth increased by $291 million in 2013−14. This was primarily due to the revaluation of the unfunded superannuation liability ($208 million), increases in land and other fixed assets ($977 million) and an increase in investments held in other public sector entities ($995 million), partly offset by increases in borrowings ($1.8 billion).
Table 1.11 shows movements in net worth attributable to operating transactions and other items during 2013−14.
Table 1.11: General government sector net worth ($million)
2013−14 Estimated
Result
2013−14 Outcome
Net worth at 30 June 2013 39 363 39 363 Change in net worth from operating transactions: Net operating balance -1 232 -1 071
Change in net worth from other economic flows: Movement in net assets of PNFCs(a)(b) 327 67 Movement in net assets of PFCs 269 890 Non-financial asset revaluations — 414 Writedown of non-financial assets — - 93 Revaluation of unfunded superannuation liability(c) 625 254 Revaluation of annual leave liability - 10 - 28 Revaluation of long service leave liability - 79 - 66 Other revaluation adjustments - 56 - 76 Subtotal Total other economic flows 1 077 1 362 Net worth at 30 June 2014 39 208 39 654
Note: Totals may not add due to rounding. (a) Net of equity injections from, and the return of equity to, the general government sector. (b) Net of distribution of assets and liabilities to the general government sector in relation to the realisation of value in
government businesses. (c) Represents the revaluation difference from the 30 June 2013 liability, which was measured using a 4.3 per cent
discount rate.
Revaluation of the unfunded superannuation liability increased net worth by $254 million. This figure represents movement in the unfunded liability that is not attributable to past service payments or nominal superannuation interest expense, such as the effect of changes in the discount rate and higher than expected returns on investments, as discussed earlier under table 1.10.
Final Budget Outcome 2013–14 13
Chapter 1: Final Budget Outcome
During 2013−14, the value of non-financial assets within the general government sector increased by $414 million, mainly due to a $342 million increase in the value of the Department of Planning, Transport and Infrastructure’s network assets and a $110 million increase in value of land under roads by the Valuer-General.
The general government sector’s investment in public financial corporations increased by $890 million, mainly due to:
• a $247 million reduction in the Motor Accident Commission’s outstanding claims, in addition to a $312 million increase in the value of their other financial assets
• a $389 million increase in the value of WorkCover’s investments partially offset by a $122 million increase in outstanding claims.
Non-financial public sector
Table 1.12 sets out the key balance sheet indicators for the non-financial public sector (which is comprised of the general government sector and the public non-financial corporations sector).
Table 1.12: Non-financial public sector ― key balance sheet indicators June 2014 June 2014 Estimate at Estimate at June 2013 2013−14 2014−15 June 2014 Outcome Budget Budget Outcome
Net debt $m 8 949 11 128 10 931 10 964 % of total revenue 54.3 68.0 66.9 66.9
Unfunded superannuation liability
$m 11 085 11 802 10 506 10 877 % of total revenue 67.2 72.1 64.3 66.3
Net financial liabilities $m 23 064 26 256 24 736 24 811 % of total revenue 139.8 160.4 151.5 151.3
Net financial worth $m -23 223 -26 820 -24 627 -24 080 % of total revenue - 140.8 - 163.9 - 150.8 - 146.8
Net worth $m 39 363 37 888 39 208 39 654 % of total revenue 238.6 231.5 240.1 241.8
Non-financial public sector net debt increased by $2.0 billion in 2013−14 to $11.0 billion, primarily due to the general government sector. The public non-financial corporation component of net debt at 30 June 2014 was $3.9 billion, $171 million higher than at 30 June 2013.
Net debt for the non-financial public sector at 30 June 2014 was $33 million more than the estimate included in the 2014–15 Budget.
The negative net financial worth position of the non-financial public sector of $24.1 billion contrasts with the positive net financial worth of the general government sector of $1.1 billion. This variation largely reflects equity in the public non-financial corporations sector held by the general government sector and recognised as a financial asset of that sector. This asset is eliminated in the consolidation of the non-financial public sector.
Net worth for the non-financial public sector increased by $291 million in 2013−14.
14 Final Budget Outcome 2013–14
Chapter 1: Final Budget Outcome
Chapter 2: Economic performance
The international and national economic context for the year 2013–14
Global economic growth, while remaining positive, remained uneven across major economies reflecting reduced strength in emerging and developing economies and ongoing weakness in the euro area.
The International Monetary Fund (IMF) estimates that the world economy grew by 3.3 per cent in 2013, with growth remaining at a similar pace in 2014. As has been the case in recent years, economic growth in emerging market economies continued to account for the bulk of world growth in 2013, growing by 4.7 per cent and by an estimated 4.4 per cent in 2014. This compared with growth of 1.4 per cent in advanced economies in 2013, and 1.8 per cent in 2014. Relative to earlier years, growth in China has slowed to a more sustainable pace, growing by 7.7 per cent in 2013, with the IMF projecting growth of 7.4 per cent in 2014.
Growth in the Australian economy was unchanged at 2.5 per cent in 2013–14. The pattern of growth remains uneven across industries and has been insufficient to stop unemployment from rising. With the very significant expansion in mine capacity over recent years, resource export volumes increased strongly and were a significant contributor to economic growth over the year. However the growth in the global supply of bulk commodities over 2013–14, particularly of iron ore and coal, has reduced commodity prices and the terms of trade, which declined by 3.7 per cent in 2013–14. Notwithstanding the decline in commodity prices, the Australian dollar remained at strong levels by historical standards.
The household savings ratio has remained around 10 per cent, and consumer spending rose by a moderate 2.2 per cent in 2013–14. The subdued pace of growth in consumer spending is consistent with soft labour market conditions. National employment growth weakened during 2013–14, growing by just 0.8 per cent. The unemployment rate rose through the course of the year and was 6.0 per cent in June 2014, up from 5.7 per cent a year earlier.
One area of marked improvement has been housing construction which grew by 4.7 per cent in real terms nationally in 2013–14, supported by the redirection of state government incentives for first home buyers towards new construction and low interest rates. In contrast, national private new business investment came off recent peaks, declining by 4.8 per cent in 2013–14.
Inflationary pressures picked up a little in 2013–14, with the national Consumer Price Index (CPI) rising by 3.0 per cent through the year to the June quarter 2014, compared with 2.4 per cent through the previous 12 months. Much of the acceleration in inflation resulted from price rises in alcohol and tobacco, education, health and housing. In year average terms the CPI rose 2.7 per cent nationally during 2013–14 (and by 2.6 per cent for Adelaide).
With the national economy continuing to grow at below trend and inflation within the target range of 2–3 per cent, the Reserve Bank of Australia has maintained an accommodative stance on monetary policy, easing once through 2013–14 (in August 2013) and holding the cash rate at 2.5 per cent since then.
Final Budget Outcome 2013–14 15
South Australian economic performance for the year 2013−14
Similar to the national economy, South Australia’s economy in 2013–14 showed mixed results and the pattern of economic growth has been uneven across the various sectors of the economy.
The South Australian economy grew by 1.3 per cent in 2013–14, with strong performances from agriculture and exports. Other industries contributing to growth in the year included health, rental, hiring and real estate services and financial services, but the still relatively high Australian dollar continued to challenge the manufacturing sector.
State Final Demand (SFD), which measures total spending by households, business and governments in the South Australian economy, rose by 0.8 per cent in real terms in 2013–14. The rise largely reflected growth in household spending, new dwelling construction and public consumption.
The value of South Australia’s overseas goods exports in 2013–14 was 15 per cent higher than in the previous financial year. Mineral exports rose strongly over this period (up by 20 per cent) and in 2013–14 accounted for 37 per cent of total exports, up from 35 per cent a year earlier. In volume terms, goods exports rose by 8.9 per cent, while services exports rose 12 per cent. Commodities produced include iron ore, gold, copper, zinc, lead, uranium and heavy mineral sands. There was strong interest in the state’s petroleum prospects with exploration spending growing by 30 per cent in 2013–14.
Also showing strong performance were international student enrolments which were up 7.2 per cent in the year to June 2014 compared with the same period a year earlier and tourism, with the number of international visitors rising by 7.1 per cent in 2013–14.
In recent years the state’s agricultural sector has experienced a string of favourable seasons and the state’s 2013–14 winter crop production was the third highest on record.
Investment in housing construction activity increased by a solid 13 per cent in 2013–14 supported by low interest rates and the Government of South Australia’s extension of the housing construction grants to 31 December 2013.
South Australia’s population grew by 0.9 per cent in the year to the March quarter 2014, with net overseas migration in the 12 months to March 2014 up 11 per cent compared with the previous 12 months.
The state’s labour market softened through the second half of 2013 but employment levels recovered in the first half of 2014. South Australia’s unemployment rate edged up to 6.8 per cent in June 2014 from 6.3 per cent a year earlier.
Table 2.1: Economic parameters ― Australia and South Australia growth rates (% per annum), 2013−14
2013–14 Forecast at 2013–14 Budget
2013–14 Forecast at 2014–15 Budget Outcome
Australia
Gross Domestic Product (real terms) 2¾ 2¾ 2.5
Domestic Final Demand (real terms) 2¾ 1½ 1.2
South Australia
Gross State Product (real terms) 2½ 1¾ 1.3
State Final Demand (real terms) 2¼ 1 0.8
Employment 1 -1¼ -1.2
Consumer Price Index 2½ 2¾ 2.6
Sources: 2013–14 and 2014–15 Commonwealth budgets and South Australian budgets, and the Australian Bureau of Statistics.
16 Final Budget Outcome 2013–14
Chapter 2: Economic Performance
Appendix A: Uniform presentation framework tables
Final Budget Outcome 2013–14 17
UNIFORM PRESENTATION FRAMEWORK TABLES
Table A.1: General government sector operating statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
RevenueTaxation revenue 4 121 4 085Grants 7 855 7 804Sales of goods and services 2 199 2 265Interest income 33 40Dividend and income tax equivalent income 375 398Other 673 752
Total revenue 15 254 15 343
lessExpensesEmployee expenses 7 258 7 353Superannuation expenses Superannuation interest cost 468 468 Other superannuation expenses 781 736Depreciation and amortisation 864 812Interest expenses 304 300Other property expenses — —Other operating expenses 4 210 4 169Grants 2 601 2 577
Total expenses 16 487 16 415
equals
Net operating balance -1 232 -1 071
plusOther economic flows 1 077 1 362
equals
Comprehensive result - total change in net worth -155 291
Net operating balance -1 232 -1 071
lessNet acquisition of non-financial assetsPurchases of non-financial assets 1 567 1 590less Sales of non-financial assets 127 117less Depreciation 864 812plus Change in inventories — 1plus Other movements in non-financial assets — —
equals Total net acquisition of non-financial assets 576 661
equals
Net lending / borrowing -1 808 -1 733
Note: Totals may not add due to rounding.
18 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.2: Public non-financial corporations (public trading enterprises) sectoroperating statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
RevenueTaxation revenue — —Grants 457 472Sales of goods and services 1 667 1 784Interest income 14 17Dividend and income tax equivalent income 4 4Other 169 72
Total revenue 2 311 2 350
lessExpensesEmployee expenses 193 191Superannuation expenses Superannuation interest cost — — Other superannuation expenses 24 26Depreciation and amortisation 429 424Interest expenses 220 220Other property expenses 300 323Other operating expenses 1 226 1 213Grants 144 110
Total expenses 2 535 2 507
equals
Net operating balance -224 -157
plusOther economic flows 576 262
equals
Comprehensive result - total change in net worth 351 104
Net operating balance -224 -157
lessNet acquisition of non-financial assetsPurchases of non-financial assets 653 536less Sales of non-financial assets 218 216less Depreciation 429 424plus Change in inventories 61 157plus Other movements in non-financial assets — —
equals Total net acquisition of non-financial assets 67 53
equals
Net lending / borrowing -292 -211
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 19
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.3: Non-financial public sector operating statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
RevenueTaxation revenue 3 841 3 805Grants 7 856 7 806Sales of goods and services 3 678 3 844Interest income 36 46Dividend and income tax equivalent income 82 81Other 836 816
Total revenue 16 328 16 399
lessExpensesEmployee expenses 7 451 7 544Superannuation expenses Superannuation interest cost 468 468 Other superannuation expenses 805 762Depreciation and amortisation 1 293 1 236Interest expenses 513 509Other property expenses — —Other operating expenses 4 966 4 892Grants 2 289 2 218
Total expenses 17 784 17 627
equals
Net operating balance -1 457 -1 229
plusOther economic flows 1 301 1 520
equals
Comprehensive result - total change in net worth -155 291
Net operating balance -1 457 -1 229
lessNet acquisition of non-financial assetsPurchases of non-financial assets 2 215 2 126less Sales of non-financial assets 341 333less Depreciation 1 293 1 236plus Change in inventories 62 158plus Other movements in non-financial assets — —
equals Total net acquisition of non-financial assets 643 715
equals
Net lending / borrowing -2 100 -1 944
Note: Totals may not add due to rounding.
20 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.4: Public financial corporations sector operating statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Outcome
RevenueTaxation revenue —Grants 7Sales of goods and services 1 354Interest income 1 153Dividend and income tax equivalent income 42Other 56
Total revenue 2 611
lessExpensesEmployee expenses 46Superannuation expenses Superannuation interest cost — Other superannuation expenses 4Depreciation and amortisation 47Interest expenses 1 031Other property expenses 72Other operating expenses 872Grants 170
Total expenses 2 241
equals
Net operating balance 369
plusOther economic flows 521
equals
Comprehensive result - total change in net worth 890
Net operating balance 369
lessNet acquisition of non-financial assetsPurchases of non-financial assets 76less Sales of non-financial assets 76less Depreciation 47plus Change in inventories —plus Other movements in non-financial assets —
equals Total net acquisition of non-financial assets -47
equals
Net lending / borrowing 416
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 21
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.5: General government sector balance sheet ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
AssetsFinancial assets Cash and deposits 1 123 1 104 Advances paid 76 66 Investments, loans and placements 240 247 Receivables 675 671 Equity Investments in other public sector entities 21 441 21 816 Investments - other 831 836 Other financial assets 31 39
Total financial assets 24 415 24 779
Non-financial assets Land and other fixed assets 38 217 38 593 Other non-financial assets 5 5
Total non-financial assets 38 222 38 599
Total assets 62 638 63 378
LiabilitiesDeposits held 383 356Advances received 239 214Borrowing 7 702 7 918Superannuation 10 506 10 877Other employee benefits 2 465 2 452Payables 988 936Other liabilities 1 146 970
Total liabilities 23 430 23 723
Net worth 39 208 39 654
Net financial worth 986 1 056Net financial liabilities 20 456 20 761Net debt 6 887 7 071
Note: Totals may not add due to rounding.
22 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.6: Public non-financial corporations (public trading enterprises) sectorbalance sheet ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
AssetsFinancial assets Cash and deposits 344 423 Advances paid 22 22 Investments, loans and placements 45 47 Receivables 273 259 Equity Investments in other public sector entities — — Investments - other 17 16 Other financial assets 1 2
Total financial assets 701 769
Non-financial assets Land and other fixed assets 25 603 25 132 Other non-financial assets 9 3
Total non-financial assets 25 612 25 135
Total assets 26 313 25 904
LiabilitiesDeposits held — —Advances received 33 33Borrowing 4 421 4 352Superannuation — —Other employee benefits 73 73Payables 275 276Other liabilities 179 86
Total liabilities 4 982 4 820
Net worth 21 332 21 085
Net financial worth -4 280 -4 051Net financial liabilities 4 280 4 051Net debt 4 044 3 894
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 23
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.7: Non-financial public sector balance sheet ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
AssetsFinancial assets Cash and deposits 1 256 1 354 Advances paid 65 55 Investments, loans and placements 285 293 Receivables 819 803 Equity Investments in other public sector entities 110 731 Investments - other 848 853 Other financial assets 31 39
Total financial assets 3 412 4 129
Non-financial assets Land and other fixed assets 63 820 63 726 Other non-financial assets 14 8
Total non-financial assets 63 834 63 734
Total assets 67 247 67 863
LiabilitiesDeposits held 173 183Advances received 239 214Borrowing 12 124 12 270Superannuation 10 506 10 877Other employee benefits 2 538 2 525Payables 1 164 1 102Other liabilities 1 296 1 038
Total liabilities 28 039 28 209
Net worth 39 208 39 654
Net financial worth -24 627 -24 080Net financial liabilities 24 736 24 811Net debt 10 931 10 964
Note: Totals may not add due to rounding.
24 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.8: Public financial corporations sector balance sheet ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Outcome
AssetsFinancial assets Cash and deposits 723 Advances paid 15 016 Investments, loans and placements 5 387 Receivables 667 Equity Investments in other public sector entities — Investments - other 3 318 Other financial assets 29
Total financial assets 25 141
Non-financial assets Land and other fixed assets 829 Other non-financial assets 1
Total non-financial assets 830
Total assets 25 971
LiabilitiesDeposits held 417Advances received —Borrowing 17 948Superannuation —Other employee benefits 15Payables 354Other liabilities 6 505
Total liabilities 25 239
Net worth 731
Net financial worth -99Net financial liabilities 99Net debt -2 761
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 25
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.9: General government sector cash flow statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Cash receipts from operating activitiesTaxes received 4 138 4 113Receipts from sales of goods and services 2 190 2 202Grants and subsidies received 7 883 7 801Interest receipts 33 35Dividends and income tax equivalents 409 420Other receipts 687 784
Total operating receipts 15 339 15 356
Cash payments for operating activitiesPayments for employees -8 531 -8 568Payments for goods and services -3 991 -3 996Grants and subsidies paid -2 708 -2 653Interest paid -304 -297Other payments -95 -185
Total operating payments -15 629 -15 699
Net cash flows from operating activities -290 -343
Net cash flows from investmentsin non-financial assetsSales of non-financial assets 115 78Purchases of non-financial assets (a) -1 521 -1 532
Net cash flows from investments -1 406 -1 454in non-financial assets
Net cash flows from investments in financialassets for policy purposes (b) 75 73
Net cash flows from investments in financialassets for liquidity purposes -12 -35
Net cash flows from financing activitiesAdvances received (net) 8 -17Borrowing (net) 1 585 1 800Deposits received (net) -9 -23Dividends paid — —Other financing (net) — —
Net cash flows from financing activities 1 584 1 761
Net Increase/(decrease) in cash held -49 3
Net cash flows from operating activities -290 -343Net cash flows from investments -1 406 -1 454in non-financial assetsDividends paid — —
Cash surplus / (deficit) -1 696 -1 797
Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.
26 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.10: Public non-financial corporations (public trading enterprises) sectorcash flow statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Cash receipts from operating activitiesTaxes received — —Receipts from sales of goods and services 1 646 1 775Grants and subsidies received 457 481Interest receipts 14 18Dividends and income tax equivalents 4 4Other receipts 156 18
Total operating receipts 2 276 2 296
Cash payments for operating activitiesPayments for employees -227 -231Payments for goods and services -980 -1 048Grants and subsidies paid -140 -108Interest paid -221 -218Other payments -391 -406
Total operating payments -1 960 -2 012
Net cash flows from operating activities 316 284
Net cash flows from investmentsin non-financial assetsSales of non-financial assets 215 221Purchases of non-financial assets (a) -624 -513
Net cash flows from investments -410 -293in non-financial assets
Net cash flows from investments in financialassets for policy purposes (b) 8 8
Net cash flows from investments in financialassets for liquidity purposes -2 —
Net cash flows from financing activitiesAdvances received (net) -86 -73Borrowing (net) 222 152Deposits received (net) — —Dividends paid -209 -200Other financing (net) — —
Net cash flows from financing activities -73 -121
Net Increase/(decrease) in cash held -161 -122
Net cash flows from operating activities 316 284Net cash flows from investments -410 -293in non-financial assetsDividends paid -209 -200
Cash surplus / (deficit) -303 -210
Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.
Final Budget Outcome 2013–14 27
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.11: Non-financial public sector cash flow statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Cash receipts from operating activitiesTaxes received 3 855 3 825Receipts from sales of goods and services 3 652 3 787Grants and subsidies received 7 884 7 812Interest receipts 36 41Dividends and income tax equivalents 82 81Other receipts 832 795
Total operating receipts 16 340 16 341
Cash payments for operating activitiesPayments for employees -8 746 -8 787Payments for goods and services -4 804 -4 878Grants and subsidies paid -2 393 -2 292Interest paid -514 -504Other payments -67 -140
Total operating payments -16 524 -16 601
Net cash flows from operating activities -183 -259
Net cash flows from investmentsin non-financial assetsSales of non-financial assets 325 299Purchases of non-financial assets (a) -2 140 -2 046
Net cash flows from investments -1 816 -1 747in non-financial assets
Net cash flows from investments in financialassets for policy purposes (b) -3 8
Net cash flows from investments in financialassets for liquidity purposes -15 -35
Net cash flows from financing activitiesAdvances received (net) 8 -17Borrowing (net) 1 807 1 953Deposits received (net) — 24Dividends paid — —Other financing (net) — —
Net cash flows from financing activities 1 816 1 961
Net Increase/(decrease) in cash held -201 -72
Net cash flows from operating activities -183 -259Net cash flows from investments -1 816 -1 747in non-financial assetsDividends paid — —
Cash surplus / (deficit) -1 999 -2 006
Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.
28 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.12: Public financial corporations sector cash flow statement ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Outcome
Cash receipts from operating activitiesTaxes received —Receipts from sales of goods and services 1 278Grants and subsidies received 6Interest receipts 1 192Dividends and income tax equivalents 42Other receipts 87
Total operating receipts 2 604
Cash payments for operating activitiesPayments for employees -52Payments for goods and services -117Grants and subsidies paid -170Interest paid -1 031Other payments -1 048
Total operating payments -2 418
Net cash flows from operating activities 187
Net cash flows from investmentsin non-financial assetsSales of non-financial assets 76Purchases of non-financial assets (a) -76
Net cash flows from investments —in non-financial assets
Net cash flows from investments in financialassets for policy purposes (b) -1 948
Net cash flows from investments in financialassets for liquidity purposes 146
Net cash flows from financing activitiesAdvances received (net) —Borrowing (net) 2 015Deposits received (net) -458Dividends paid -40Other financing (net) —
Net cash flows from financing activities 1 517
Net Increase/(decrease) in cash held -99
Net cash flows from operating activities 187Net cash flows from investments —in non-financial assetsDividends paid -40
Cash surplus / (deficit) 146
Note: Totals may not add due to rounding.(a) The ABS disaggregates this item into new and secondhand non-financial assets.(b) Includes equity acquisitions and disposals.
Final Budget Outcome 2013–14 29
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.13: General government sector derivation of ABS GFS cash surplus/deficit ($million)____________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Cash surplus / (deficit) -1 696 -1 797
Acquisitions under finance leases — -1and similar arrangements(a)ABS GFS Surplus (+) / deficit (-) including -1 696 -1 797finance leases and similar arrangements
Table A.14: Public non-financial corporations (public trading enterprises) sectorderivation of ABS GFS cash surplus/deficit ($million)____________________________________________________________________________________________________________________________________________________________________________________________________________
Cash surplus / (deficit) -303 -210
Acquisitions under finance leases — —and similar arrangements(a)ABS GFS Surplus (+) / deficit (-) including -303 -210finance leases and similar arrangements
Table A.15: Non-financial public sector derivation of ABS GFS cash surplus/deficit ($million)____________________________________________________________________________________________________________________________________________________________________________________________________________
Cash surplus / (deficit) -1 999 -2 006
Acquisitions under finance leases — -1and similar arrangements(a)ABS GFS Surplus (+) / deficit (-) including -1 999 -2 007finance leases and similar arrangements
Table A.16: Public financial corporations sector derivation of ABS GFS cashsurplus/deficit ($million)(b)____________________________________________________________________________________________________________________________________________________________________________________________________________
Cash surplus / (deficit) 146
Acquisitions under finance leases —and similar arrangements(a)ABS GFS Surplus (+) / deficit (-) including 146finance leases and similar arrangements
Note: Totals may not add due to rounding.(a) Finance leases are shown with a negative sign as they are deducted in compiling the ABS GFS cash surplus/deficit.(b) Forward estimates are not collected for public financial corporations.
30 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.17: General government sector taxes ($million) (a)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Taxes on employers' payroll and labour force 1 097 1 079
Taxes on propertyLand taxes 567 565Stamp duties on financial and capital transactions 891 874Financial institutions' transaction taxes — —Other 178 177
Total 1 636 1 616
Taxes on the provision of goods and servicesExcises and levies — —Taxes on gambling 388 388Taxes on insurance 443 435
Total 832 823
Taxes on use of goods and performance of activitiesMotor vehicle taxes 556 567
Total 556 567
Total GFS taxation revenue 4 121 4 085
Note: Totals may not add due to rounding.(a) Excludes taxes paid by general government entities.
Final Budget Outcome 2013–14 31
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.18(a): General government sector grant revenue ($million)____________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Current grant revenueCurrent grants from the Commonwealth General purpose grants 4 618 4 652 National partnership grants 450 400 National partnership grants for on-passing 113 109 Specific purpose grants 1 486 1 502 Specific purpose grants for on-passing 730 731
Total current grants from the Commonwealth 7 397 7 393
Other contributions and grants 245 242
Total current grant revenue 7 642 7 635
Capital grant revenueCapital grants from the Commonwealth General purpose grants — — National partnership grants 69 43 Specific purpose grants 104 104 Specific purpose grants for on-passing 11 11 Other capital grants 4 6
Total capital grants from the Commonwealth 188 163
Other contributions and grants 25 5
Total capital grant revenue 213 169
Total grant revenue 7 855 7 804
Table A.18(b): General government sector grant expense ($million)____________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Current grant expense State/territory government 5 11 Local government 50 40 Local government on-passing 102 100 Private and not-for-profit sector 899 843 Private and not-for-profit sector on-passing 741 740 Grants to other sectors of government 451 464 Other 205 201
Total current grant expense 2 454 2 397
Capital grant expense State/territory government — 4 Local government 3 2 Local government on-passing — — Private and not-for-profit sector 132 162 Private and not-for-profit sector on-passing 11 11 Grants to other sectors of government — — Other 1 1
Total capital grant expense 147 179
Total grant expense 2 601 2 577
Note: Totals may not add due to rounding.
32 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.19: General government sector dividend and income tax equivalent income ($million)______________________________________________________________________________________________________________________________________________________________________________________________________________
2013–14Estimate at
2014–15Budget
2013–14Outcome
Dividend and income tax equivalent income from PNFC sector 297 321Dividend and income tax equivalent income from PFC sector 76 75Other dividend income 1 2
Total dividend and income tax equivalent income 375 398
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 33
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.20: General government sector expenses by function(a)(b) ($million)
2013–14 Estimate at 2014–15 2013–14 Budget Outcome
General public services 384 348 Government superannuation benefits — — Other general public services 384 348 Defence(c) — —
Public order and safety 1 559 1 557 Police and fire protection services 938 939 Law courts and legal services 288 277 Prisons and corrective services 258 272 Other public order and safety 75 70
Education 4 219 4 278 Primary and secondary education 3 333 3 421 Tertiary education 570 598 Pre-school education and education not definable by level 286 230 Transportation of students 28 27 Education(d) 3 3
Health 5 119 5 071 Acute care institutions 4 396 4 404 Mental health institutions n.a. — Nursing homes for the aged n.a. — Community health services 391 365 Public health services 160 151 Pharmaceuticals, medical aids and appliances
10 13
Health research 9 9 Health administration(d) 152 129 Social security and welfare 1 312 1 298 Social security 110 119 Welfare services 1 091 1 161 Social security and welfare services(d) 110 18 Housing and community amenities 1 058 1 094 Housing and community development 459 581 Water supply 244 237 Sanitation and protection of the environment 331 276 Other community amenities 23 — Recreation and culture 368 344 Recreation facilities and services 184 144 Cultural facilities and services 171 183 Broadcasting and film production 7 8 Recreation and culture(d) 5 9
34 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.20: General government sector expenses by function(a)(b) ($million) (continued)
2013–14 Estimate at 2014–15 2013–14 Budget Outcome
Fuel and energy 47 49 Fuel affairs and services 15 11 Electricity and other energy 8 23 Fuel and energy(d) 23 16
Agriculture, forestry, fishing and hunting 197 207 Agriculture 140 130 Forestry, fishing and hunting 57 77
Mining and mineral resources other than fuels; manufacturing; 82 58 and construction Mining and mineral resources other than fuels 35 43 Manufacturing — — Construction 47 15
Transport and communications 1 038 1 017 Road transport 416 436 Water transport 15 24 Rail transport 35 59 Air transport 3 — Pipelines n.a. — Other transport 505 455 Communications 64 43
Other economic affairs 257 242 Storage, saleyards and markets n.a. n.a. Tourism and area promotion 70 64 Labour and employment affairs 55 63 Other economic affairs 132 115
Other purposes 847 852 Public debt transactions 304 300 General purpose inter-government transactions
31 55
Natural disaster relief 4 1 Nominal superannuation interest expense 468 468 Other purposes(d) 40 29 Total GFS expenses 16 487 16 415
Note: Totals may not add due to rounding. (a) Expenses by function data are derived from information submitted by government agencies. The processes for deriving
this data are subject to ongoing refinements. Consequently the data may be subject to future revisions. (b) Some functional classifications are not readily distinguisable at agency level. Those instances are denoted as not
available (n.a.). (c) The Australian Bureau of Statistics (ABS) defines ‘defence’ as expenditure on military and civil defence affairs, foreign
military aid and defence research. The expenditure of DefenceSA is included in other economic affairs. (d) Not elsewhere classified.
Final Budget Outcome 2013–14 35
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.21: General government sector capital expenditure by function(a) ($million)
2013–14 Estimate at 2014–15 2013–14 Budget Outcome
General public services 20 19 Defence(b) — — Public order and safety 72 64 Education 217 209 Health 236 233 Social security and welfare 10 9 Housing and community amenities 14 63 Recreation and culture 239 241 Fuel and energy — — Agriculture, forestry, fishing and hunting 5 6 Mining and mineral resources other than fuels; manufacturing; and construction 26 23 Transport and communications 722 718 Other economic affairs 5 5 Other purposes — — Total capital expenditure 1 567 1 590
Note: Totals may not add due to rounding. (a) Expenses by function data are derived from information submitted by government agencies. The processes for deriving
this data are subject to ongoing refinements. Consequently the data may be subject to future revisions. (b) The ABS defines ‘defence’ as expenditure on military and civil defence affairs, foreign military aid and defence research.
The expenditure of DefenceSA is included in other economic affairs.
36 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Loan Council allocation report
The Australian Loan Council — a ministerial body established in 1927 comprising Commonwealth, state and territory Treasurers — requires all jurisdictions to nominate a Loan Council Allocation (LCA) for consideration at its annual meeting.
LCA nominations, prepared in February, are intended to provide an indication of each government’s probable call on financial markets over the forthcoming financial year. The Loan Council, having regard to each jurisdiction’s fiscal position and reasonable infrastructure requirements, along with the macroeconomic implications of the aggregate figure, then considers the nominations.
Following the endorsement of LCA nominations, jurisdictions are further required to update their nominated LCAs at budget time for changes in economic parameters and policy decisions, and also provide an LCA outcome at the end of the financial year. A tolerance limit of 2 per cent of total public sector revenue, set at nomination time, applies between both the nomination and budget, and the budget and outcome LCAs.
Nominated LCAs for 2013–14, for all jurisdictions and in aggregate, were reviewed and endorsed at the meeting of the Australian Loan Council held in April 2013.
South Australia’s Budget and outcome LCAs for 2013–14 are shown in Table B.1. This table is prepared in accordance with the requirements of the accrual Uniform Presentation Framework (UPF), endorsed by the Loan Council in March 2000 and revised in April 2008 to recognise acquisitions under finance leases and similar arrangements.
As Table B.1 indicates, South Australia recorded an LCA deficit of $1.3 billion for 2013–14. This is greater than the 2013–14 Budget (May 2013) estimated deficit of $1.2 billion. This largely reflects an increase in the non-financial public sector cash deficit partially offset by stronger than anticipated superannuation returns.
As a result of these movements, South Australia’s 2013–14 LCA outcome will not exceed the 2 per cent of total revenue tolerance limit included in the 2013–14 LCA nomination.
Final Budget Outcome 2013–14 37
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Table A.22: Loan Council allocation 2013–14 ($million)(a)
2013–14 Estimate at 2013–14 Budget
2013–14 Outcome
General government sector cash deficit/surplus 1 332 1 797 PNFC sector cash deficit/surplus 307 210 Non-financial public sector cash deficit/surplus(b) 1 640 2 006 Acquisitions under finance leases and similar arrangements — 1 ABS Government Finance Statistics cash surplus 1 640 2 007 Less: Net cash flows from investments in financial assets for
policy purposes 11 8
Adjusted total non-financial public sector deficit/surplus 1 629 1 999 Memorandum items(c) Operating leases(d) -106 82 Recourse asset sales — — Superannuation(e) -496 -733 Local government 60 41 Home finance schemes 62 -63 Total memorandum items -480 -673 LCA deficit/surplus(f)(g) 1 149 1 326
Note: Totals may not add due to rounding. (a) For the purposes of this table a surplus amount is represented as a negative number while a deficit is shown as a positive
number. (b) The sum of the deficits of the general government and PNFC sectors may not equal the non-financial public sector deficit
due to intersectoral transfers, which are netted out in the calculation of the total figure. The figures exclude statutory marketing authorities.
(c) Excludes universities. (d) Increase/decrease in the net present value (NPV) of operating leases with a NPV of $5 million or greater. (e) Includes both ‘payments in excess of emerging costs of superannuation’ and ‘interest earnings on employer balances’. (f) The 2 per cent of total revenue tolerance limit for South Australia’s 2013–14 LCA nomination was $329.5 million. (g) South Australia no infrastructure projects with private sector involvement that meet the recognition criteria for 2013–14.
38 Final Budget Outcome 2013–14
Appendix A: Uniform presentation framework tables and Loan Council allocation report
Appendix B: Consolidated Account
Table B.1: Summary of receipts and payments ($000)
2013–14 2013–14 Budget Outcome Receipts
Taxation 3 799 926 3 779 246 Commonwealth general purpose grants 4 595 000 4 646 819 Commonwealth specific purpose grants 578 576 607 823 Commonwealth National Partnership payments 90 918 106 281 Contributions from state undertakings 343 646 427 190 Fees and charges 404 013 382 778 Recoveries 148 100 439 125 Royalties 276 131 312 257 Other receipts 156 855 247 782 Total receipts 10 393 165 10 949 302
Payments Appropriation Act 12 245 316 12 350 306 Specific appropriation authorised in various Acts 132 137 139 530 Total payments 12 377 453 12 489 837 Consolidated Account Financing Requirement 1 984 288 1 540 534
Note: Totals may not add due to rounding.
The deficit for 2013−14 has been funded by borrowings from the South Australian Government Financing Authority (SAFA), pursuant to section 16(2) of the Public Finance and Audit Act 1987, increasing the level of debt serviced from the Consolidated Account.
Final Budget Outcome 2013–14 39
Table B.2: Receipts ($000)
2013–14 2013–14 Budget Outcome Taxation
Payroll tax 1 358 688 1 300 805 Commonwealth places mirror payroll tax(a) 23 800 22 756 Stamp duties 1 410 299 1 493 514 Commonwealth places mirror stamp duties(a) 300 931 Land tax 576 024 571 612 Commonwealth places mirror land tax(a) 1 400 1 381 Other taxes on property 10 42 Save the River Murray Levy(b) 26 100 — Gaming machines tax 300 402 288 990 Contribution from Lotteries Commission of South Australia 70 831 73 048 Contribution from casino operations 25 689 20 170 Contribution from South Australian Totalizator Agency Board 3 400 3 547 Contribution from on-course totalizators, bookmakers and small lotteries 2 983 2 449 Total taxation receipts 3 799 926 3 779 246
Commonwealth general purpose payments GST revenue grants 4 595 000 4 646 819 Total Commonwealth general purpose payments 4 595 000 4 646 819
Commonwealth specific purpose payments(c) Council of Australian Governments funding arrangements 578 576 607 823 Total Commonwealth specific purpose payments 578 576 607 823
Commonwealth National Partnership payments(d) Council of Australian Governments funding arrangement 90 918 106 281 Total Commonwealth National Partnership payments 90 918 106 281
Note: Totals may not add due to rounding. (a) Taxes akin to state taxes are levied on activities conducted on Commonwealth places under the authority of
Commonwealth mirror tax legislation. Revenue is retained by the state. (b) The budget for the Save the River Murray Levy was transferred to the Department of Environment, Water and Natural
Resources pursuant with the Water Industry Act 2012. (c) Refers only to those Commonwealth specific purpose payments paid to the Consolidated Account. (d) Refers only to National Partnership payments that are paid to Consolidated Account. The remainder of National
Partnership payments are paid into the Intergovernmental Agreement on Federal Financial Relations special deposit account for subsequent disbursement to the relevant line agencies.
40 Final Budget Outcome 2013–14
Appendix B: Consolidated Account
Table B.2: Receipts ($000) (continued)
2013–14 2013–14 Budget Outcome
Contributions from state undertakings Adelaide Convention Centre Dividend — 1 094 Income tax equivalent — 1 407 Arrangements with private electricity entities Local government rate equivalent 232 226 Austraining Pty Ltd Income Tax Equivalent 600 270 Department of Planning, Transport and Infrastructure Income tax equivalent 2 632 344 Local government rate equivalent 1 351 605 Flinders Port Payment of lieu of other taxes 2 378 4 683 Funds SA Local government rate equivalent 209 210 HomeStart Finance Dividend 6 887 7 176 Income tax equivalent 4 919 5 017 Public Trustee Office Dividend 359 1 528 Income tax equivalent 89 475 Renewal SA Dividend 9 548 — Local government rate equivalent 906 948 SA Lotteries Income tax equivalent — 48 SA Water Corporation Dividend 186 103 196 171 Income tax equivalent 90 719 140 582 Local government rate equivalent 1 510 1 478 South Australian Government Employee Residential Properties Dividend 1 706 1 706 Income tax equivalent 407 109 South Australian Government Financing Authority Dividend 28 230 32 780 Income tax equivalent 4 770 30 334 West Beach Trust Income tax equivalent 91 — Total contributions from state undertakings 343 646 427 190
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 41
Appendix B: Consolidated Account
Table B.2: Receipts ($000) (continued)
2013–14 2013–14 Budget Outcome
Fees and charges(e) Auditor-General's Department — fees for audit and other sundry receipts 14 764 15 591 Court fines 37 923 36 051 Court regulatory fees 34 871 22 691 Guarantee fees 77 453 75 926 Infringement Notice Schemes — Expiation fees 85 759 77 482 Land and Business Regulations 1 869 — Land Services regulatory fees 151 019 154 899 Small lotteries 154 — Sundry fees 201 138 Total fees and charges 404 013 382 778
Recoveries Department of Planning, Transport and Infrastructure Indentured Ports 5 125 9 977 Department of Environment, Water and Natural Resources — Qualco Sunlands
250 250
Essential Services Commission of South Australia 7 341 7 354 Helicopter service — recovery of costs and sponsorships 1 020 1 124 Independent Gaming Corporation contribution to Gamblers Rehabilitation Fund 2 000 2 000 Metropolitan Drainage Fund 7 7 Motor Accident Commission 100 000 100 000 National Tax Equivalent Program 50 — Return of cash to Consolidated Account — cash alignment policy — 303 230 Return of deposit account balances — 10 508 Return of deposit account balances — superannuation 30 000 — Sale of government publications and subscriptions 188 122 Sundry recoupment 146 — Unclaimed monies and personal property 1 973 4 553 Total recoveries 148 100 439 125
Royalties Department for Manufacturing, Innovation, Trade, Resources and Energy 276 131 312 257 Total royalties 276 131 312 257
Note: Totals may not add due to rounding. (e) Refers only to those fees and charges paid to the Consolidated Account.
42 Final Budget Outcome 2013–14
Appendix B: Consolidated Account
Table B.2: Receipts ($000) (continued)
2013–14 2013–14 Budget Outcome
Other receipts Interest
Interest on investments 66 245 70 800 Interest recoveries from general government entities 2 780 1 884 Interest recoveries from non-commercial public trading enterprises 12 868 4 916 Interest recoveries from the private sector 332 105
Repayment of advances Administered items for the Department of Planning, Transport and Infrastructure 209 255 Department for Health and Ageing — 1 347 Department of Primary Industries and Regions 3 780 5 790 Renmark Irrigation Trust 261 — Royal Zoological Society of South Australia 219 219 South Australian Housing Trust 11 467 109 702 Other repayments 6 7
Other Other recoveries 21 292 37 274 Sale of land and buildings 37 396 15 484 Total other receipts 156 855 247 782 Total Consolidated Account receipts 10 393 165 10 949 302
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 43
Appendix B: Consolidated Account
Table B.3: Payments ($000)
2013–14 2013–14 Budget Outcome
Payments from Appropriation Act Arts SA 132 559 132 559 Attorney-General’s Department 85 898 85 898 Administered items for the Attorney-General’s Department 107 276 62 300 Auditor-General’s Department 16 016 15 427 Courts Administration Authority 89 348 91 686 Defence SA 16 482 16 482 Department for Communities and Social Inclusion 1 040 343 962 921 Administered items for the Department for Communities and Social Inclusion 179 118 174 367 Department for Correctional Services 241 375 240 625 Department for Education and Child Development 2 777 471 2 821 749 Administered items for the Department for Education and Child Development 228 818 228 818 Department for Health and Ageing 3 021 228 3 021 228 Department for Manufacturing, Innovation, Trade, Resources and Energy 89 407 92 031 Administered Items for the Department for Manufacturing, Innovation, Trade, Resources and Energy 1 325 1 420 Department of Environment, Water and Natural Resources 184 701 166 282 Administered items for the Department of Environment, Water and Natural Resources 19 361 34 782 Department of Further Education, Employment, Science and Technology 488 973 532 295 Department of Planning, Transport and Infrastructure 747 396 797 561 Administered items for the Department of Planning, Transport and Infrastructure 14 790 14 671 Department of Primary Industries and Regions 78 136 77 136 Administered items for the Department of Primary Industries and Regions 3 516 4 553 Department of the Premier and Cabinet 95 827 114 570 Administered items for the Department of the Premier and Cabinet 7 930 8 052 Department of Treasury and Finance 61 572 61 265 Administered items for the Department of Treasury and Finance 1 702 329 1 780 673 Electoral Commission of South Australia 12 588 14 790 House of Assembly 8 615 7 514 Independent Gambling Authority 1 691 1 691 Joint Parliamentary Services 13 915 15 097 Legislative Council 5 575 4 511 Minister for Tourism 4 565 4 565 South Australia Police 713 028 706 274 Administered items for South Australia Police 173 173 South Australian Tourism Commission 50 515 52 884 State Governor’s Establishment 3 456 3 456 Total payments appropriated for administrative units, statutory authorities and Ministers 12 245 316 12 350 306
Payments for which specific appropriation is authorised in various Acts 132 137 139 530 Total Consolidated Account payments 12 377 453 12 489 837
Note: Totals may not add due to rounding.
44 Final Budget Outcome 2013–14
Appendix B: Consolidated Account
Table B.4: Appropriation authorised in various Acts ($000)
2013–14 2013–14 Budget Outcome
Payments for which specific appropriation is authorised in various Acts Salaries and allowances
Agent-General — pursuant to Agent-General Act 1901 101 95 Auditor-General — pursuant to Public Finance and Audit Act 1987 302 306 Commissioners of Environment, Resource and Development Court — pursuant to Remuneration Act 1990 1 198 1 222 Commissioner of Police — pursuant to Police Act 1998 422 414 State Coroner and Deputy Coroner — pursuant to Remuneration Act 1990 857 857 Electoral Commissioner and Deputy Electoral Commissioner — pursuant to Electoral Act 1985 376 380 Employee Ombudsman — pursuant to Fair Work Act 1994 164 149 Governor — pursuant to Constitution Act 1934 312 322 Health and Community Services Complaints Commissioner — pursuant to Remuneration Act 1990 — 98 Judges — pursuant to Remuneration Act 1990 Chief Justice 684 686 Judges and Masters 24 215 21 580 Magistrates — pursuant to Remuneration Act 1990 15 017 14 007 Members of various standing committees — pursuant to Parliamentary Remuneration Act 1990 and Parliamentary Committees Act 1991 895 834 Ombudsman — pursuant to Ombudsman Act 1972 376 329 Parliamentary salaries and electorate other allowances — pursuant to Parliamentary Remuneration Act 1990 — Ministers, Officers and Members of Parliament 14 564 14 574 Senior Judge and judges of the Industrial Relations Court and Commission — pursuant to Remuneration Act 1990 2 262 2 571 Solicitor-General — pursuant to Solicitor-General Act 1972 614 559 South Australian Civil and Administrative Tribunal — pursuant to Remuneration Act 1990 — 51 Valuer-General — pursuant to Valuation of Land Act 1971 132 119 Total salaries and allowances 62 491 59 152
Other Compensation for injuries resulting from criminal acts — pursuant to Victims of Crime Act 2001
7 824 7 824
First Home Owner Grant — pursuant to First Home Owner Grant Act 2000
61 822 72 554
Total other 69 646 80 378 Total payments for which specific appropriation is authorised in various Acts 132 137 139 530
Note: Totals may not add due to rounding.
Final Budget Outcome 2013–14 45
Appendix B: Consolidated Account
46 Final Budget Outcome 2013–14
Appendix B: Consolidated Account
Appendix C: General government and non-financial public sector financial statistics time series
The following tables provide historical data on key fiscal aggregates. Data provided (excluding the unfunded superannuation liability) are sourced for 1998−99 from Australian Bureau of Statistics Government Finance Statistics 2007−08 (catalogue number 5512.0) and 1999−2000 to 2012−13 from Budget Outcome publications for South Australia.
Data is provided from 1998−99, the first year for which information is available in the accrual format. Before 1998−99, government finances were measured using a cash-based methodology.
Gross State Product (GSP) and Consumer Price Index (for real-growth calculations) data is sourced from the latest Australian Bureau of Statistics (ABS) publications.
As historical data in this time series has not been back-cast to reflect classification and accounting changes, care must be taken in interpreting the data.
General government Table C.1: General government key operating statement aggregates
Revenue Expenses
Net operating
balance
Net acquisition of non-financial
assets Net
lending
$m % real
growth %
GSP $m % real growth
% GSP $m $m $m
1998−99 7 290 16.8 7 505 17.3 - 215 19 - 233 1999−2000 7 644 2.3 16.8 7 974 3.6 17.6 - 330 140 - 471 2000−01 8 108 3.0 16.7 8 406 2.4 17.3 - 297 102 - 399 2001−02 8 538 2.1 16.3 8 713 0.5 16.6 - 174 - 50 - 124 2002−03 9 346 5.2 16.8 8 898 -1.8 16.0 448 34 414 2003−04 9 955 3.4 16.8 9 570 4.4 16.1 385 - 38 424 2004−05 10 592 3.9 17.1 10 368 5.8 16.7 224 105 119 2005−06 11 242 2.9 17.1 11 040 3.3 16.8 202 119 83 2006−07 11 757 1.9 16.6 11 547 1.9 16.3 209 139 71 2007−08 12 879 6.1 16.6 12 414 4.1 16.0 464 242 222 2008−09 13 531 1.9 16.9 13 764 7.5 17.2 - 233 639 - 872 2009−10(a) 15 534 12.3 18.6 15 347 9.1 18.3 187 1 279 -1 092 2010−11(a) 15 017 -6.3 16.7 15 069 -4.9 16.8 - 53 1 370 -1 422 2011−12 15 905 3.2 17.3 16 164 4.5 17.5 - 258 839 -1 098 2012−13 15 333 -5.5 16.3 16 282 -1.3 17.3 - 948 55 -1 003 2013−14(b) 15 343 -2.4 15.8 16 415 -1.7 16.9 -1 071 661 -1 733
Note: Table may not add due to rounding. (a) In 2009–10 and 2010–11 revenue, expenses and net acquisition of non-financial assets are impacted by the Commonwealth
Government’s Nation Building ― Economic Stimulus Plan. (b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned on
cash and deposits is offset with interest expense on the borrowings the Treasurer has with South Australian Government Financing Authority (SAFA). This results in a reduction to interest income and interest expense accordingly.
Final Budget Outcome 2013–14 47
Table C.2: General government key balance sheet aggregates ($million)(a)
As at 30 June Net debt(b) Unfunded superannuation(c)
Net financial liabilities
Net financial worth
Net worth
1988 859 1989 694 1990 854 1991 1 817 1992 4 610 1993 7 884 1994 7 113 1995 5 815 1996 5 512 1997 4 983 1998 4 762 1999 4 779 3 909 9 733 1 894 10 624 2000 1 920 3 543 6 911 2 986 12 445 2001 1 246 3 249 6 093 4 091 14 816 2002 1 303 3 998 6 907 3 559 14 721 2003 666 4 445 6 974 3 500 15 288 2004 224 5 668 7 858 3 842 15 760 2005 144 7 227 9 393 3 853 16 359 2006 - 119 6 146 8 171 5 846 19 703 2007(d) - 24 5 075 7 254 8 110 22 128 2008(e)(f)(g) - 276 6 468 8 078 7 580 23 741 2009 475 8 939 11 562 5 551 24 146 2010 1 402 9 478 13 182 6 551 36 231 2011 2 930 9 096 14 313 7 299 40 958 2012(h) 4 165 13 523 20 332 1 413 37 199 2013 5 227 11 085 19 079 1 742 39 363 2014(i) 7 071 10 877 20 761 1 056 39 654
(a) During the implementation of the 2008 revised UPF minor variances in some aggregates compared with earlier budget publications were discovered. This table reflects minor revisions resulting from the back-casting of budget aggregates associated with implementing the revised UPF.
(b) Net debt data for the years before 1999 are sourced from ABS, Government Financial Estimates 2003–04 (catalogue number 5501).
(c) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.
(d) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in general government net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.
(e) There is a structural break in 2008 reflecting the transfer of rail assets from TransAdelaide to the general government sector. This results in an increase in net debt and net financial liabilities of $66 million in 2007–08, and a reduction in net financial worth of $591 million, with no impact on net worth.
(f) There is a structural break in 2008 reflecting the transfer of assets from the Adelaide Festival Centre Trust to the general government sector. This results in an increase in net debt and net financial liabilities of $28 million in 2007–08, and a reduction in net financial worth of $76 million, with no impact on net worth.
(g) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This has no impact on net debt, however results in a reduction in net financial liabilities of $615 million in 2007–08, and increases in net financial worth and net worth of $615 million.
(h) There is a structural break in 2012 reflecting the transfer of the Rail Commissioner to the general government sector. This results in a reduction in net debt of $6 million, an increase in net financial liabilities of $37 million, and a reduction in net financial worth of $144 million in 2011–12, with no impact on net worth.
(i) There is a structural break in 2014 reflecting the transfer of the Lotteries Commission of South Australia (SA Lotteries) to the general government sector. This results in a reduction in net debt of $46 million, a reduction in net financial liabilities of $1 million, with no impact on net worth.
48 Final Budget Outcome 2013–14
Appendix C: General government and non-financial public sector financial statistics time series
Table C.3: General government receipts, payments and surplus(a) ($million)
Receipts Payments ABS Cash Surplus 1979−80 1 891 1 671 220 1980−81 2 065 1 917 148 1981−82 2 210 2 122 87 1982−83 2 664 2 507 156 1983−84 2 988 2 734 255 1984−85 3 380 3 057 324 1985−86 3 634 3 161 474 1986−87 3 956 3 416 540 1987−88 4 307 3 858 449 1988−89 4 630 3 977 653 1989−90 4 973 4 370 603 1990−91 5 260 4 796 463 1991−92 5 387 5 396 - 10 1992−93 5 967 5 456 512 1993−94 6 087 6 024 63 1994−95 6 155 6 220 - 66 1995−96 6 405 6 164 241 1996−97 6 379 6 282 97 1997−98 6 988 6 724 264 1998−99 7 165 7 041 123 1999−2000 7 676 7 915 - 239 2000−01 8 278 8 387 - 108 2001−02 8 698 8 748 - 50 2002−03 9 522 8 864 658 2003−04 10 023 9 502 522 2004−05 11 252 11 059 193 2005−06 11 480 11 293 187 2006−07 12 090 12 116 - 26 2007−08 12 932 12 552 379 2008−09 13 579 14 299 - 721 2009−10 15 837 16 991 -1 154 2010−11 15 331 16 851 -1 520 2011−12 16 556 17 594 -1 038 2012−13 16 489 17 655 -1 166 2013−14 15 434 17 232 -1 797
Note: Table may not add due to rounding. (a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 are sourced from
the ABS and are consistent with ABS GFS reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions (which were treated by the ABS then as an ‘investment in financial assets for policy purposes’) are not included in the series before 1999–2000. After 1998–99, data is derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.
Final Budget Outcome 2013–14 49
Appendix C: General government and non-financial public sector financial statistics time series
Tabl
e C
.4: G
ener
al g
over
nmen
t sec
tor o
pera
ting
stat
emen
t ($m
illio
n)
20
04–0
5 20
05–0
6 20
06–0
7 20
07–0
8 20
08–0
9 20
09–1
0 20
10–1
1 20
11–1
2 20
12–1
3 20
13–1
4
Rev
enue
Ta
xatio
n re
venu
e 2
941
2 97
9 3
250
3 57
0 3
537
3 64
9 3
831
3 85
4 4
104
4 08
5 G
rant
s 5
406
5 76
6 5
969
6 61
6 7
249
8 88
1 8
185
8 66
8 7
669
7 80
4 S
ales
of g
oods
and
ser
vice
s 1
244
1 33
3 1
464
1 57
2 1
697
1 93
6 1
879
2 01
5 2
115
2 26
5 In
tere
st in
com
e(a)
161
1
47
167
2
03
150
1
38
168
1
72
134
4
0 D
ivid
end
and
inco
me
tax
equi
vale
nt in
com
e 4
55
575
4
50
429
3
82
433
4
03
385
4
46
398
O
ther
3
86
441
4
56
490
5
17
497
5
50
811
8
65
752
To
tal r
even
ue
10 5
92
11 2
42
11 7
57
12 8
79
13 5
31
15 5
34
15 0
17
15 9
05
15 3
33
15 3
43
less
Ex
pens
es
Empl
oyee
exp
ense
s 4
220
4 64
4 4
933
5 26
8 5
749
6 22
1 6
400
6 77
0 7
105
7 35
3 S
uper
annu
atio
n ex
pens
es
Sup
eran
nuat
ion
inte
rest
cos
t 3
51
344
3
16
276
3
83
455
4
27
407
3
14
468
O
ther
sup
eran
nuat
ion
expe
nses
4
29
480
5
06
546
5
80
600
6
21
666
6
75
736
D
epre
ciat
ion
and
amor
tisat
ion
453
4
54
498
5
25
566
6
33
670
7
18
762
8
12
Inte
rest
exp
ense
s(a)
248
2
23
204
2
18
180
2
04
308
4
27
386
3
00
Oth
er p
rope
rty e
xpen
ses
—
—
—
—
—
—
—
—
—
—
Oth
er o
pera
ting
expe
nses
2
742
2 87
4 3
021
3 24
6 3
624
3 69
5 3
824
3 99
3 4
313
4 16
9 G
rant
s 1
925
2 02
1 2
069
2 33
7 2
682
3 54
0 2
819
3 18
3 2
726
2 57
7 To
tal e
xpen
ses
10 3
68
11 0
40
11 5
47
12 4
14
13 7
64
15 3
47
15 0
69
16 1
64
16 2
82
16 4
15
equa
ls
Net
ope
ratin
g ba
lanc
e 2
24
202
2
09
464
- 2
33
187
- 5
3 - 2
58
- 948
-1
071
pl
us
Oth
er e
cono
mic
flow
s 3
75
3 14
2 2
215
1 14
9 7
08
11 8
30
2 90
5 -3
556
3
113
1 36
2 eq
uals
C
ompr
ehen
sive
resu
lt - t
otal
cha
nge
in n
et w
orth
5
99
3 34
4 2
424
1 61
3 4
75
12 0
17
2 85
2 -3
814
2
164
291
Net
ope
ratin
g ba
lanc
e 2
24
202
2
09
464
- 2
33
187
- 5
3 - 2
58
- 948
-1
071
le
ss
Net
acq
uisi
tion
of n
on-fi
nanc
ial a
sset
s
P
urch
ases
of n
on-fi
nanc
ial a
sset
s 6
95
717
7
71
875
1
305
2 14
4 2
122
1 87
6 2
008
1 59
0 le
ss S
ales
of n
on-fi
nanc
ial a
sset
s 1
19
144
1
34
108
1
08
29
82
322
1
197
117
le
ss D
epre
ciat
ion
453
4
54
498
5
25
566
6
33
670
7
18
762
8
12
plus
Cha
nge
in in
vent
orie
s - 1
8 —
—
—
7
3
—
3
7
1
pl
us O
ther
mov
emen
ts in
non
-fina
ncia
l ass
ets
—
—
—
—
—
- 206
—
—
—
—
eq
uals
Tot
al n
et a
cqui
sitio
n of
non
-fina
ncia
l ass
ets
105
1
19
139
2
42
639
1
279
1 37
0 8
39
55
661
eq
uals
N
et le
ndin
g / b
orro
win
g 1
19
83
71
222
- 8
72
-1 0
92
-1 4
22
-1 0
98
-1 0
03
-1 7
33
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
. (a
) Th
ere
is a
stru
ctur
al b
reak
in 2
013–
14 in
the
pres
enta
tion
of in
tere
st in
com
e an
d in
tere
st e
xpen
se. I
nter
est i
ncom
e ea
rned
on
cash
and
dep
osits
is o
ffset
with
inte
rest
exp
ense
on
the
borro
win
gs
the
Trea
sure
r has
with
SAF
A. T
his
resu
lts in
a re
duct
ion
to in
tere
st in
com
e an
d in
tere
st e
xpen
se a
ccor
ding
ly.
50 Final Budget Outcome 2013–14
Appendix C: General government and non-financial public sector financial statistics time series
Tabl
e C
.5: G
ener
al g
over
nmen
t sec
tor b
alan
ce s
heet
($m
illio
n)
As a
t 30
June
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
Asse
ts
Fina
ncia
l ass
ets
Cas
h an
d de
posi
ts(a
) 1
960
2 21
0 2
384
2 76
0 3
084
3 27
7 3
675
916
1
113
1 10
4 A
dvan
ces
paid
9
59
902
9
05
782
7
52
676
6
42
550
1
76
66
Inve
stm
ents
, loa
ns a
nd p
lace
men
ts
170
1
80
119
1
34
140
1
63
189
2
00
226
2
47
Rec
eiva
bles
3
74
454
4
71
498
6
10
713
5
75
539
7
30
671
E
quity
In
vest
men
ts in
oth
er p
ublic
sec
tor e
ntiti
es
13 2
46
14 0
17
15 3
64
15 6
58
17 1
13
19 7
34
21 6
12
21 7
45
20 8
21
21 8
16
Inve
stm
ents
- ot
her
145
1
73
30
668
7
07
752
7
43
836
8
31
836
O
ther
fina
ncia
l ass
ets
60
44
39
38
43
47
80
125
5
6 3
9 To
tal f
inan
cial
ass
ets
16 9
15
17 9
79
19 3
11
20 5
39
22 4
49
25 3
63
27 5
16
24 9
12
23 9
54
24 7
79
Non
-fina
ncia
l ass
ets
Land
and
fixe
d as
sets
12
411
13
840
14
013
16
138
18
590
29
677
33
657
35
779
37
616
38
593
O
ther
non
-fina
ncia
l ass
ets
94
17
4
23
5
3
2
6
5
5
Tota
l non
-fina
ncia
l ass
ets
12 5
05
13 8
57
14 0
18
16 1
61
18 5
95
29 6
80
33 6
58
35 7
85
37 6
21
38 5
99
Tota
l ass
ets
29 4
20
31 8
36
33 3
29
36 7
00
41 0
45
55 0
43
61 1
75
60 6
98
61 5
75
63 3
78
Li
abili
ties
Dep
osits
hel
d 2
83
282
3
31
328
3
35
387
3
54
397
3
92
356
A
dvan
ces
rece
ived
6
86
682
6
59
644
6
28
610
5
92
590
2
32
214
B
orro
win
g(a)
2 26
5 2
209
2 39
4 2
427
3 48
8 4
522
6 49
1 4
843
6 11
8 7
918
Sup
eran
nuat
ion
7
227
6 14
6 5
075
6 46
8 8
939
9 47
8 9
096
13 5
23
11 0
85
10 8
77
Oth
er e
mpl
oyee
ben
efits
1
305
1 39
3 1
492
1 64
6 1
867
1 92
2 2
022
2 40
8 2
457
2 45
2 P
ayab
les
483
6
16
553
6
65
760
1
004
810
8
98
1 01
9 9
36
Oth
er li
abilit
ies
812
8
05
699
7
79
881
8
88
853
8
40
908
9
70
Tota
l lia
bilit
ies
13 0
61
12 1
33
11 2
01
12 9
59
16 8
98
18 8
11
20 2
17
23 4
99
22 2
12
23 7
23
Net
wor
th
16 3
59
19 7
03
22 1
28
23 7
41
24 1
46
36 2
31
40 9
58
37 1
99
39 3
63
39 6
54
Net
fina
ncia
l wor
th(b
) 3
853
5 84
6 8
110
7 58
0 5
551
6 55
1 7
299
1 41
3 1
742
1 05
6 N
et fi
nanc
ial l
iabi
litie
s(b)(
c)
9 39
3 8
171
7 25
4 8
078
11 5
62
13 1
82
14 3
13
20 3
32
19 0
79
20 7
61
Net
deb
t(b)(
c)
144
- 1
19
- 24
- 276
4
75
1 40
2 2
930
4 16
5 5
227
7 07
1 N
ote:
Tot
als
may
not
add
due
to ro
undi
ng.
(a)
Ther
e is
a s
truct
ural
bre
ak in
201
2 re
flect
ing
that
cas
h an
d de
posi
ts h
eld
by th
e Tr
easu
rer a
re o
ffset
with
bor
row
ings
the
Trea
sure
r has
with
SA
FA. T
his
resu
lts in
a re
duct
ion
in c
ash
and
depo
sits
, an
d bo
rrow
ings
of $
3.13
4 bi
llion,
with
no
impa
ct o
n bo
th n
et w
orth
and
net
deb
t. (b
) Th
ere
is a
stru
ctur
al b
reak
in 2
012
refle
ctin
g th
e tra
nsfe
r of t
he R
ail C
omm
issi
oner
to th
e ge
nera
l gov
ernm
ent s
ecto
r. Th
is re
sults
in a
redu
ctio
n in
net
deb
t of $
6 m
illion
, an
incr
ease
in n
et fi
nanc
ial
liabi
litie
s of
$37
milli
on, a
nd a
redu
ctio
n in
net
fina
ncia
l wor
th o
f $14
4 m
illion
in 2
011–
12, w
ith n
o im
pact
on
net w
orth
. (c
) Th
ere
is a
stru
ctur
al b
reak
in 2
014
refle
ctin
g th
e tra
nsfe
r of t
he L
otte
ries
Com
mis
sion
of S
outh
Aus
tralia
(SA
Lotte
ries)
to th
e ge
nera
l gov
ernm
ent s
ecto
r. Th
is re
sults
in a
redu
ctio
n in
net
deb
t of
$46
mill
ion,
a re
duct
ion
in n
et fi
nanc
ial l
iabi
litie
s of
$1
mill
ion,
with
no
impa
ct o
n ne
t wor
th.
Final Budget Outcome 2013–14 51
Appendix C: General government and non-financial public sector financial statistics time series
Non-financial public sector
Table C.6: Non-financial public sector key operating statement aggregates
Revenue Expenses
Net operating
balance
Net acquisition of non-financial
assets Net
lending
$m % real
growth %
GSP $m % real
growth %
GSP $m $m $m 1998–99 9 468 21.8 9 597 22.1 - 129 - 115 - 14 1999–2000 9 206 -5.2 20.3 9 552 -2.9 21.0 - 346 -3 508 3 161 2000–01 9 051 -4.5 18.7 9 279 -5.7 19.1 - 228 -1 111 883 2001–02 9 367 0.3 17.9 9 487 -0.9 18.1 - 120 - 124 5 2002–03 10 172 4.4 18.3 9 696 -1.7 17.5 476 72 405 2003–04 10 707 2.2 18.0 10 294 3.1 17.3 413 33 379 2004–05 11 343 3.5 18.3 11 029 4.6 17.8 314 125 189 2005–06 11 807 0.9 17.9 11 634 2.3 17.7 172 53 119 2006–07 12 321 1.7 17.4 12 175 2.0 17.1 147 173 - 26 2007–08 13 634 7.1 17.6 13 065 3.9 16.8 569 303 266 2008–09 14 360 2.1 17.9 14 567 8.1 18.2 - 207 1 249 -1 456 2009–10(a) 16 315 11.2 19.5 15 679 5.3 18.7 636 2 361 -1 725 2010−11(a) 15 960 -5.2 17.8 15 939 -1.5 17.8 21 1 920 -1 898 2011–12 16 866 3.0 18.3 16 908 3.3 18.3 - 41 1 383 -1 424 2012–13 16 494 -4.1 17.5 17 152 -0.6 18.2 - 657 64 - 721 2013–14(b) 16 399 -3.1 16.9 17 627 0.2 18.2 -1 229 715 -1 944
Note: Table may not add due to rounding. (a) In 2009–10 and 2010–11 revenue, expenses and net acquisition of non-financial assets are impacted by the
Commonwealth Government’s Nation Building ― Economic Stimulus Plan. (b) There is a structural break in 2013–14 in the presentation of interest income and interest expense. Interest income earned
on cash and deposits is offset with interest expense on the borrowings the Treasurer has with SAFA. This results in a reduction to interest income and interest expense accordingly.
52 Final Budget Outcome 2013–14
Appendix C: General government and non-financial public sector financial statistics time series
Table C.7: Non-financial public sector key balance sheet aggregates ($million)
As at 30 June Net debt(a)
Unfunded superannuation(b)
Net financial liabilities
Net financial worth
Net worth
1988 4 397 1989 4 197 1990 4 457 1991 5 418 1992 8 142 1993 11 610 1994 10 550 1995 8 844 1996 8 432 1997 8 170 1998 7 927 1999 7 657 3 909 13 099 -12 256 10 624 2000 4 355 3 543 9 914 -8 986 12 445 2001 3 223 3 249 8 151 -7 109 14 816 2002 3 317 3 998 8 973 -7 902 14 721 2003 2 696 4 445 9 096 -8 811 15 288 2004 2 285 5 668 10 031 -9 550 15 760 2005 2 126 7 227 11 511 -11 004 16 359 2006 1 786 6 146 10 451 -9 889 19 703 2007(c) 1 989 5 075 9 518 -8 795 22 128 2008(d)(e) 1 611 6 468 10 208 -10 487 23 741 2009 2 872 8 939 14 302 -14 921 24 146 2010 4 487 9 478 16 626 -16 997 36 231 2011 6 541 9 096 18 273 -18 402 40 958 2012 7 996 13 523 24 500 -25 123 37 199 2013 8 949 11 085 23 064 -23 223 39 363 2014 10 964 10 877 24 811 -24 080 39 654
(a) Net debt data for the years before 1999 are sourced from the ABS, Government Financial Estimates 2003–04 (catalogue number 5501).
(b) There is a structural break in the methodology used to calculate superannuation liabilities between June 2003 and June 2004. This accounting change, which involved the adoption of the Commonwealth Government bond rate for valuation purposes in line with AASB 119, Employee Benefits, resulted in a significant increase in superannuation liabilities.
(c) There is a structural break in 2007 reflecting the amalgamation of SAFA and SAICORP on 1 July 2006. The transfer of SAICORP’s assets and liabilities from the general government sector to the public financial corporations sector resulted in an increase in non-financial public sector net debt of $99 million at 1 July 2006 and an increase in net financial liabilities of $90 million at 1 July 2006.
(d) There is a structural break in 2008 reflecting the amalgamation of the public financial corporation, South Australian Community Housing Authority, with the public non-financial corporation, South Australian Housing Trust. This results in an increase in net debt and net financial liabilities and a decrease in net financial worth of $98 million in 2007−08, with no impact on net worth.
(e) There is a structural break in 2008 reflecting the first time recognition on the general government balance sheet of South Australia’s share of the net assets of the Murray-Darling Basin Commission. This has no impact on net debt, however results in a reduction in net financial liabilities of $615 million in 2007–08, and increases in net financial worth and net worth of $615 million.
Final Budget Outcome 2013–14 53
Appendix C: General government and non-financial public sector financial statistics time series
Table C.8: Non-financial public sector receipts, payments and surplus(a) ($million)
Receipts Payments ABS Cash Surplus 1979–80 2 681 2 388 292 1980–81 2 877 2 649 228 1981–82 3 145 2 963 182 1982–83 3 651 3 356 295 1983–84 4 383 4 014 369 1984–85 4 887 4 356 531 1985–86 5 172 4 415 757 1986–87 5 542 4 790 752 1987–88 6 078 5 299 780 1988–89 6 946 5 784 1 162 1989–90 7 517 6 465 1 052 1990–91 7 830 6 839 991 1991–92 8 352 7 969 383 1992–93 8 939 7 946 993 1993–94 8 761 8 119 642 1994–95 8 570 8 142 428 1995–96 8 985 8 654 331 1996–97 8 908 8 532 375 1997–98 9 426 8 895 532 1998–99 9 301 8 692 609 1999–2000 13 014 9 501 3 513 2000–01 10 572 9 414 1 158 2001–02 9 726 9 722 4 2002–03 10 439 9 805 634 2003–04 10 891 10 403 488 2004–05 12 051 11 786 265 2005–06 12 239 11 868 370 2006–07 12 684 12 809 - 125 2007–08 13 943 13 477 466 2008–09 14 563 15 806 -1 243 2009–10 16 847 18 695 -1 849 2010–11 16 548 18 553 -2 004 2011–12 17 431 18 863 -1 432 2012–13 17 814 19 133 -1 319 2013–14 16 640 18 647 -2 007
Note: Table may not add due to rounding. (a) There is a break in the series between 1998–99 and 1999–2000. Data for the years before 1999–2000 is sourced from
the ABS and are consistent with ABS GFS reporting requirements on a cash basis. Capital receipts and payments, including payments associated with the provision of financial support for state owned financial institutions, which were treated by the ABS then as an ‘investment in financial assets for policy purposes, are not included in this series before 1999–2000. After 1998–99, data are derived from an accrual ABS GFS reporting framework, with receipts proxied by receipts from operating activities and sales of non-financial assets, and payments proxied by payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases and similar arrangements. Due to the associated methodological and data-source changes, time series data that encompass measures derived under both cash and accrual accounting should be used with caution.
54 Final Budget Outcome 2013–14
Appendix C: General government and non-financial public sector financial statistics time series
Tabl
e C
.9: N
on-fi
nanc
ial p
ublic
sec
tor o
pera
ting
stat
emen
t ($m
illio
n)
20
04–0
5 20
05–0
6 20
06–0
7 20
07–0
8 20
08–0
9 20
09–1
0 20
10–1
1 20
11–1
2 20
12–1
3 20
13–1
4
Rev
enue
Ta
xatio
n re
venu
e 2
731
2 74
9 3
009
3 30
8 3
244
3 33
1 3
467
3 47
6 3
726
3 80
5 G
rant
s 5
405
5 84
9 6
039
6 61
6 7
262
8 89
7 8
223
8 70
5 7
697
7 80
6 S
ales
of g
oods
and
ser
vice
s 2
481
2 49
4 2
610
2 92
6 3
082
3 31
1 3
366
3 58
9 3
949
3 84
4 In
tere
st in
com
e(a)
135
1
13
155
1
88
125
1
23
163
1
63
131
4
6 D
ivid
end
and
inco
me
tax
equi
vale
nt in
com
e 1
43
126
4
2 2
4 3
6 5
8 9
1 5
1 5
6 8
1 O
ther
4
47
476
4
66
572
6
11
594
6
51
883
9
35
816
To
tal r
even
ue
11 3
43
11 8
07
12 3
21
13 6
34
14 3
60
16 3
15
15 9
60
16 8
66
16 4
94
16 3
99
less
Ex
pens
es
Empl
oyee
exp
ense
s 4
382
4 80
8 5
108
5 45
0 5
944
6 43
6 6
625
6 95
9 7
299
7 54
4 S
uper
annu
atio
n ex
pens
es
S
uper
annu
atio
n in
tere
st c
ost
351
3
44
316
2
76
383
4
55
427
4
07
314
4
68
O
ther
sup
eran
nuat
ion
expe
nses
4
45
499
5
25
568
6
05
628
6
49
692
7
00
762
D
epre
ciat
ion
and
amor
tisat
ion
682
6
92
755
7
98
852
9
58
1 02
4 1
078
1 16
6 1
236
Inte
rest
exp
ense
s(a)
333
3
10
290
3
22
290
3
44
493
6
39
599
5
09
Oth
er p
rope
rty e
xpen
ses
—
—
—
—
—
—
—
—
—
—
Oth
er o
pera
ting
expe
nses
3
273
3 32
5 3
483
3 84
0 4
404
4 30
6 4
472
4 71
6 4
849
4 89
2 G
rant
s 1
563
1 65
5 1
698
1 81
1 2
089
2 55
3 2
249
2 41
7 2
224
2 21
8 To
tal e
xpen
ses
11 0
29
11 6
34
12 1
75
13 0
65
14 5
67
15 6
79
15 9
39
16 9
08
17 1
52
17 6
27
equa
ls
Net
ope
ratin
g ba
lanc
e 3
14
172
1
47
569
- 2
07
636
2
1 - 4
1 - 6
57
-1 2
29
plus
O
ther
eco
nom
ic fl
ows
286
3
172
2 27
8 1
044
682
11
382
2
831
-3 7
72
2 82
2 1
520
equa
ls
Com
preh
ensi
ve re
sult
— to
tal c
hang
e in
net
wor
th
599
3
344
2 42
4 1
613
475
12
017
2
852
-3 8
14
2 16
4 2
91
N
et o
pera
ting
bala
nce
314
1
72
147
5
69
- 207
6
36
21
- 41
- 657
-1
229
le
ss
Net
acq
uisi
tion
of n
on-fi
nanc
ial a
sset
s
Pur
chas
es o
f non
-fina
ncia
l ass
ets
1 04
0 1
127
1 14
5 1
399
2 32
8 3
762
3 21
7 2
750
2 68
3 2
126
le
ss S
ales
of n
on-fi
nanc
ial a
sset
s 2
34
381
2
17
298
3
04
336
2
81
331
1
428
333
less
Dep
reci
atio
n 6
82
692
7
55
798
8
52
958
1
024
1 07
8 1
166
1 23
6
plus
Cha
nge
in in
vent
orie
s 1
—
—
—
7
6 9
9 7
4
1 - 2
6 1
58
pl
us O
ther
mov
emen
ts in
non
-fina
ncia
l ass
ets
—
—
—
—
—
- 206
—
—
—
—
eq
uals
Tot
al n
et a
cqui
sitio
n of
non
-fina
ncia
l ass
ets
125
5
3 1
73
303
1
249
2 36
1 1
920
1 38
3 6
4 7
15
equa
ls
Net
lend
ing
/ bor
row
ing
189
1
19
- 26
266
-1
456
-1
725
-1
898
-1
424
- 7
21
-1 9
44
Not
e: T
able
may
not
add
due
to ro
undi
ng.
(a)
Ther
e is
a s
truct
ural
bre
ak in
201
3–14
in th
e pr
esen
tatio
n of
inte
rest
inco
me
and
inte
rest
exp
ense
. Int
eres
t inc
ome
earn
ed o
n ca
sh a
nd d
epos
its is
offs
et w
ith in
tere
st e
xpen
se o
n th
e bo
rrow
ings
th
e Tr
easu
rer h
as w
ith S
AFA.
Thi
s re
sults
in a
redu
ctio
n to
inte
rest
inco
me
and
inte
rest
exp
ense
acc
ordi
ngly
.
Final Budget Outcome 2013–14 55
Appendix C: General government and non-financial public sector financial statistics time series
Tabl
e C
.10:
Non
-fina
ncia
l pub
lic s
ecto
r bal
ance
she
et ($
mill
ion)
As
at 3
0 Ju
ne
2005
20
06
2007
20
08
2009
20
10
2011
20
12
2013
20
14
Asse
ts
Fina
ncia
l ass
ets
C
ash
and
depo
sits
(a)
2 12
9 2
372
2 56
6 3
040
3 36
0 3
573
3 96
1 1
207
1 44
0 1
354
A
dvan
ces
paid
8
0 8
3 3
4 8
1 7
1 7
2 9
9 7
7 6
2 5
5
Inve
stm
ents
, loa
ns a
nd p
lace
men
ts
180
2
04
139
1
63
176
2
32
228
2
42
270
2
93
R
ecei
vabl
es
318
4
36
522
5
21
520
7
66
635
6
62
877
8
03
E
quity
In
vest
men
ts in
oth
er p
ublic
sec
tor e
ntiti
es
507
5
62
723
- 2
79
- 619
- 3
71
- 128
- 6
23
- 159
7
31
Inve
stm
ents
- ot
her
177
1
99
58
693
7
27
766
7
61
852
8
48
853
Oth
er fi
nanc
ial a
sset
s 5
8 4
6 4
1 4
0 8
2 1
04
83
126
5
6 3
9
Tota
l fin
anci
al a
sset
s 3
450
3 90
2 4
084
4 25
9 4
316
5 14
3 5
638
2 54
3 3
394
4 12
9
Non
-fina
ncia
l ass
ets
La
nd a
nd fi
xed
asse
ts
27 3
38
29 5
64
30 9
17
34 2
02
39 0
59
53 2
24
59 3
02
62 3
11
62 5
74
63 7
26
O
ther
non
-fina
ncia
l ass
ets
25
28
6
25
8
4
57
12
12
8
To
tal n
on-fi
nanc
ial a
sset
s 27
363
29
592
30
922
34
227
39
067
53
228
59
359
62
322
62
586
63
734
To
tal a
sset
s 30
813
33
494
35
006
38
486
43
384
58
371
64
997
64
866
65
981
67
863
Li
abili
ties
Dep
osits
hel
d 1
55
147
1
59
166
1
74
171
1
71
177
1
72
183
A
dvan
ces
rece
ived
7
19
715
6
59
644
6
28
610
5
92
590
2
32
214
B
orro
win
g(a)
3 64
2 3
583
3 91
0 4
084
5 67
7 7
583
10 0
65
8 75
5 10
318
12
270
S
uper
annu
atio
n
7 22
7 6
146
5 07
5 6
468
8 93
9 9
478
9 09
6 13
523
11
085
10
877
O
ther
em
ploy
ee b
enef
its
1 38
4 1
473
1 56
0 1
719
1 94
4 2
003
2 10
6 2
486
2 53
1 2
525
Pay
able
s 4
92
706
7
15
801
9
07
1 31
9 1
077
1 20
4 1
215
1 10
2 O
ther
liab
ilitie
s 8
36
1 02
0 8
01
862
9
69
975
9
32
932
1
064
1 03
8 To
tal l
iabi
litie
s 14
454
13
790
12
878
14
745
19
237
22
140
24
040
27
667
26
617
28
209
N
et w
orth
16
359
19
703
22
128
23
741
24
146
36
231
40
958
37
199
39
363
39
654
N
et fi
nanc
ial w
orth
-1
1 00
4 -9
889
-8
795
-1
0 48
7 -1
4 92
1 -1
6 99
7 -1
8 40
2 -2
5 12
3 -2
3 22
3 -2
4 08
0 N
et fi
nanc
ial l
iabi
litie
s 11
511
10
451
9
518
10 2
08
14 3
02
16 6
26
18 2
73
24 5
00
23 0
64
24 8
11
Net
deb
t 2
126
1 78
6 1
989
1 61
1 2
872
4 48
7 6
541
7 99
6 8
949
10 9
64
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
. (a
) Th
ere
is a
stru
ctur
al b
reak
in 2
012
refle
ctin
g th
at c
ash
and
depo
sits
hel
d by
the
Trea
sure
r are
offs
et w
ith b
orro
win
gs th
e Tr
easu
rer h
as w
ith S
AFA
. Thi
s re
sults
in a
redu
ctio
n in
cas
h an
d de
posi
ts,
and
borro
win
gs o
f $3.
134
billio
n, w
ith n
o im
pact
on
both
net
wor
th a
nd n
et d
ebt.
56 Final Budget Outcome 2013–14
Appendix C: General government and non-financial public sector financial statistics time series
Strong GovernmentStrong business
Strong Community2013–14 Consolidated Financial Report
Consolidated Financial Report as at 30 June 2014
General enquiries regarding financial information papers should be directed to:
The Under Treasurer Department of Treasury and Finance State Administration Centre 200 Victoria Square Adelaide SA 5000
Copies may be obtained from:
SERVICE SA Government Legislation Outlet Ground Floor EDS Centre 108 North Terrace Adelaide SA 5000
Website: www.treasury.sa.gov.au
© Government of South Australia 2014
ISSN 1837-6762
Table of contents
Overview of the Consolidated Financial Report Introduction ............................................................................................................................ 3 Key points .............................................................................................................................. 4
Financial Statements Statement of comprehensive income for the year ended 30 June 2014 .................................. 5 Statement of financial position as at 30 June 2014 ................................................................. 6 Statement of changes in equity for the year ended 30 June 2014 .......................................... 7 Statement of cash flows for the year ended 30 June 2014 ..................................................... 8
Notes to the Consolidated Financial Report 1. Significant accounting policies ....................................................................................... 11 2. Disaggregated information ............................................................................................. 25
Statement of comprehensive income ............................................................................. 26 Statement of financial position ....................................................................................... 28 Statement of changes in equity ...................................................................................... 30 Statement of cash flows ................................................................................................. 31
3. Reconciliation of Key Fiscal Aggregates to GFS Aggregates ......................................... 33 4. Taxation revenues ......................................................................................................... 35 5. Grant revenue ............................................................................................................... 35 6. Charges for goods and services .................................................................................... 36 7. Interest income .............................................................................................................. 36 8. Dividends and income tax equivalents ........................................................................... 36 9. Other revenues .............................................................................................................. 37 10. Employee expenses ...................................................................................................... 37 11. Depreciation and amortisation ....................................................................................... 37 12. Use of goods and services ............................................................................................ 37 13. Interest expenses .......................................................................................................... 38 14. Grant expenses ............................................................................................................. 38 15. Other operating expenses ............................................................................................. 38 16. Other net actuarial gains/(losses) .................................................................................. 38 17. Other economic flows .................................................................................................... 38 18. Cash and deposits ......................................................................................................... 39 19. Receivables ................................................................................................................... 39 20. Loan advances .............................................................................................................. 39 21. Investments, loans and placements ............................................................................... 39 22. Investments — other ..................................................................................................... 40
2013–14 Consolidated Financial Report 1
23. Interest in joint ventures................................................................................................. 40 24. Inventories ..................................................................................................................... 41 25. Machinery and equipment ............................................................................................. 41 26. Buildings and structures ................................................................................................ 42 27. Heritage assets ............................................................................................................. 42 28. Biological assets ............................................................................................................ 42 29. Intangibles ..................................................................................................................... 43 30. Non-financial assets classified as held for sale or distribution ........................................ 43 31. Other non-financial assets ............................................................................................. 43 32. Land .............................................................................................................................. 44 33. Deposits held ................................................................................................................. 44 34. Borrowing ...................................................................................................................... 44 35. Payables ....................................................................................................................... 44 36. Employee benefits ......................................................................................................... 45 37. Unfunded superannuation liabilities ............................................................................... 46 38. Superannuation fund deposit liabilities........................................................................... 50 39. Provisions (other than employee benefits) ..................................................................... 50 40. Other liabilities ............................................................................................................... 51 41. Non-financial assets — reconciliation and fair value hierarchy....................................... 52 42. Financial instrument disclosures .................................................................................... 56 43. Cash flows ..................................................................................................................... 63 44. Aged commitments ........................................................................................................ 64 45. Finance lease liabilities .................................................................................................. 65 46. Operating lease obligations ........................................................................................... 66 47. Contingent assets and contingent liabilities ................................................................... 67 48. Events after balance date .............................................................................................. 69 49. Details of controlled entities ........................................................................................... 70 50. Total expenses and assets by government purpose classification ................................. 73 51. Budgetary information (General Government sector only) ............................................. 75
Statement of comprehensive income ............................................................................. 76 Statement of financial position ....................................................................................... 77 Statement of cash flows ................................................................................................. 78
52. Key technical terms used in the financial report ............................................................. 80
Statement by the Treasurer and Under Treasurer ............................................................. 85
Statement and commentary by the Auditor-General ......................................................... 89
2 2013–14 Consolidated Financial Report
Overview of the Consolidated Financial Report
Introduction
This part of the document contains the Consolidated Financial Report (CFR) of the Government of South Australia for the financial year ended 30 June 2014. The CFR fulfils the government’s consolidated financial reporting requirements pursuant to generally accepted accounting principles (GAAP). The report has been prepared in accordance with applicable Australian Accounting Standards Board Standards and Pronouncements, the Public Finance and Audit Act 1987, as amended, and is consistent with Australian Accounting Standard AASB 1049 Whole of Government and General Government Sector Financial Reporting. The CFR is only one component of the suite of publications that discharge the government’s financial accountability obligations.
It is important to note that notwithstanding the significant efforts of the Australian Accounting Standards Board to harmonise AASB 1049 with Government Finance Statistics (GFS) principles, some technical differences remain. The impact of these differences for the Government of South Australian is minor, with a table reconciling the key aggregates set out in note 3.
The government’s budget and fiscal targets are based on the GFS framework promulgated by the Australian Bureau of Statistics. Financial information on a GFS basis is presented in the annual budget, mid-year budget review and budget outcomes reports in accordance with the Uniform Presentation Framework (UPF) agreed by the Commonwealth Government and all state and territory governments. This UPF format is the primary reporting and accountability focus for the government. The UPF based Final Budget Outcome (FBO) is presented as the front part of this document. Primary discussion on variances to budget is published in the FBO document. Some supplementary variance information is included in the CFR at note 51.
The Auditor-General has reviewed the CFR but has not provided a formal independent audit report, as there is no legislative requirement for the preparation, audit or presentation of a whole of government financial report. However, the Auditor-General has made a number of observations on the report. The Auditor-General’s comments are provided at the end of this document.
While the CFR is presented for the government as a whole, note 2 to the financial report shows the financial performance and the financial position of the three major sectors of government: general government, public non-financial corporations (PNFC) and public financial corporations. These sectors are consistent with the classifications used by the Australian Bureau of Statistics (ABS).
The consolidated financial result is not simply the sum of the results of the three sectors. In arriving at a consolidated result, transactions between agencies are eliminated to present a consolidated picture of the financial relationship between the government as a whole and the ‘rest of the world’.
2013–14 Consolidated Financial Report 3
Key points
Whole of government
Total comprehensive result for 2013–14 was a $309 million increase in net worth. The net results of the public non-financial corporation and public financial corporations sector are recognised in the general government sector under the requirements of AASB 1049.
The net result from transactions was a deficit of $857 million.
Other economic flows improved the net result by $1.2 billion which includes $893 million of net gains on financial assets or liabilities at fair value and a $680 million in property revaluation increments.
Net worth as at 30 June 2014 was $39.4 billion, comprising assets of $100.9 billion and liabilities of $61.5 billion.
General government sector
Total comprehensive result for 2013–14 was a $309 million increase in net worth. This result predominantly reflects the net gain on equity investments in other sectors ($885 million), property revaluation increments ($414 million), offset primarily by a net result from transactions deficit ($1.086 billion).
The net result deficit from transactions ($1.086 billion) is comparable to the deficit of $1.071 billion reported in the Final Budget Outcome as measured under the GFS/UPF reporting basis.
Other economic flows increased the net result for 2013–14 by $1.4 billion, of which $885 million relates to a net gain on equity investments in other sectors and $414 million relates to property revaluation increments.
Net worth as at 30 June 2014 was $39.4 billion, comprising assets of $66.2 billion and liabilities of $26.7 billion.
Despite efforts to harmonise accounting standards with GFS principles some differences remain. The differences result in variations between the net operating result (and other aggregates) derived using AASB 1049 and GFS.
Note 3 provides a reconciliation of the key fiscal aggregates reported under the AASB 1049 reporting basis to the aggregates reported in the FBO. The FBO also provides further explanations as to the variations that occur between budgeted estimates and final outcomes for 2013–14.
4 2013–14 Consolidated Financial Report
Overview of the Consolidated Financial Report
Financial Statements
Statement of comprehensive income for the year ended 30 June 2014
Note
2014 2013 2014 2013$m $m $m $m
4 3 868 3 712 4 115 4 0555 8 144 8 119 8 255 8 1316 4 870 5 049 2 173 1 6737 747 821 117 1448 47 47 381 8359 815 1 100 741 852
18 492 18 849 15 782 15 690
10 7 432 7 190 7 203 6 966 468 314 468 314 766 705 736 675
11 1 284 1 216 812 76212 4 642 4 609 3 927 3 72213 1 055 1 159 370 38614 2 300 2 315 2 667 2 82415 1 402 1 478 686 601
19 349 18 985 16 868 16 250- 857 - 136 -1 086 - 560
- 279 114 — — 7 - 42 - 2 - 37
893 127 - 3 1937 254 2 314 254 2 314
— — 105 - 4016 - 271 - 411 - 124 - 1017 - 138 - 65 - 108 - 24
465 2 036 123 2 221- 392 1 900 - 963 1 662
680 258 414 811— — 885 -1 215
11 10 9 8 10 2 - 36 - 10
701 270 1 272 - 406 309 2 169 309 1 255
— — — 914Total transactions with owners — — — 914
309 2 169 309 2 169
Net operating balance - 857 - 136 -1 086 - 560 667 311 661 47
-1 525 - 447 -1 747 - 607Less net acquisition of non-financial assetsNet lending / borrowing
Note: Totals may not add due to rounding.
Total other economic flows — non-owner movements in equityComprehensive result — total change in net worth
Transactions with ownersRestructures
Total change in net worth
Key fiscal aggregates
Net result
Other economic flows — other movements in equityChanges in property, plant and equipment revaluation reserveNet gains on equity investments in other sectorsNet gain/(loss) on financial assets at fair valuePrior period adjustments
Net gain/(loss) on financial assets or liabilities at fair valueNet actuarial gains on superannuation defined benefit plansRevaluations of deferred income tax equivalentsOther net actuarial gains/(losses)Other economic flowsTotal other economic flow — included in net result
Other expensesTotal expenses from transactionsNet result from transactions — Net operating balance
Other economic flows — included in net resultNet foreign exchange gains/(losses)Net gain/(loss) on sale of non-financial assets
Superannuation interest costOther superannuation expensesDepreciation and amortisationUse of goods and servicesInterest expensesGrant expenses
Interest incomeDividends and income tax equivalentsOther revenuesTotal revenue from transactions
Expenses from transactionsEmployee expenses
Whole of Government
General Government
Revenue from transactionsTaxation revenuesGrant revenueCharges for goods and services
2013–14 Consolidated Financial Report 5
Note
2014 2013 2014 2013$m $m $m $m
18 1 674 1 331 3 870 4 13319 1 408 1 267 2 362 2 33320 2 589 2 584 63 17621 11 841 8 082 247 226
— — 20 165 19 24222 17 976 18 422 32 3723 810 801 804 793
36 297 32 486 27 542 26 941
24 597 552 64 6425 2 688 3 968 2 244 3 56626 47 449 45 025 28 861 26 68727 1 133 1 128 1 127 1 11428 37 74 2 229 87 94 59 5730 27 6 10 131 74 86 48 61
32 12 042 12 091 5 956 5 87329 351 349 142 14430 145 140 128 108
64 629 63 512 38 642 37 677
100 927 95 998 66 184 64 618
33 201 183 356 39234 18 006 16 022 10 885 9 35535 1 369 1 225 978 1 04636 2 540 2 547 2 452 2 45737 10 877 11 085 10 877 11 08538 20 742 17 867 — —39 6 793 6 888 527 49140 962 1 052 671 661
61 489 56 869 26 746 25 489
39 437 39 129 39 437 39 129
2 374 2 556 -1 973 -1 015
36 939 36 424 21 688 21 293 90 121 50 43 35 27 19 14— — 19 653 18 794
39 437 39 129 39 437 39 129
44, 4647
- Financial assets available for sale reserve - Net equity in investments in other sectorsTotal equity (Net worth)
Commitments for expenditureContingent assets and liabilities
Note: Totals may not add due to rounding.
Net assets
EquityRetained earningsReserves - Asset revaluation reserve - Other reserves
Employee benefitsSuperannuationSuperannuation fund depositsProvisions (other than employee benefits)Other liabilitiesTotal liabilities
Total non-financial assets
Total assets
LiabilitiesDeposits heldBorrowingsPayables
- Non-financial assets held for sale or redistribution - Other non-financial assetsNon-produced assets - Land - Intangibles - Non-financial assets held for sale or redistribution
- Inventories - Machinery and equipment - Buildings and structures - Heritage assets - Biological assets - Intangibles
Investments in other public entitiesInvestments — otherInterest in joint in venturesTotal financial assets
Non-financial assetsProduced assets
AssetsFinancial assetsCash and depositsReceivablesAdvances paidInvestments, loans and placements
Statement of financial position as at 30 June 2014
Whole of Government
General Government
6 2013–14 Consolidated Financial Report
Financial Statements
Other/ FAAFS
reserves
Net Equity in
Other Sectors Reserve
Retained Earnings
Total
$m $m $m $m $m
Balance as at 30 June 2012 36 708 718 — - 467 36 960Gain/(loss) on revaluation of property plant and equipment 258 — — — 258Net gain on financial assets taken to equity — 10 — — 10Prior period adjustments — current year — — — 2 2Transfers to/from reserves - 542 - 605 — 1 147 —Net income/expense recognised directly in equity for 2012–13 - 284 - 595 — 1 149 270Net surplus for 2012–2013 — — — 1 900 1 900
- 284 - 595 — 3 048 2 16936 424 123 — 2 582 39 129
Error correction current year — 25 — - 25 —36 424 148 — 2 556 39 129
Gain/loss on revaluation of plant & equipment during 2013–2014 680 — — — 680Net gain on financial assets taken to equity — 11 — — 11Prior period adjustments — current year — — — 10 10Transfers to / from reserves during 2013–14 - 165 - 35 — 200 —Net income/expense recognised directly in equity for 2013–14 515 - 24 — 210 701Net surplus for 2013–14 — — — - 392 - 392Total comprehensive result for 2013–14 515 - 24 — - 182 309Balance at 30 June 2014 36 939 125 — 2 374 39 437
Balance as at 30 June 2012 20 508 21 20 008 -3 578 36 960Gain/(loss) on revaluation of property plant and equipment 811 — — — 811Net gain on financial assets taken to equity — 8 — — 8Net gain on equity investments in other sectors — — -1 215 — -1 215Prior period adjustments — current year — — — - 10 - 10Transfers to/from reserves - 423 4 — 420 —
388 11 -1 215 410 - 406Net surplus for 2012–13 — — — 1 662 1 662
388 11 -1 215 2 071 1 255Net assets received/transferred from administrative restructures 397 — — 517 914
21 293 32 18 794 - 990 39 129Error correction current year — 25 — - 25 —
21 293 57 18 794 -1 015 39 129Gain/loss on revaluation of plant and equipment during 2013–14 414 — — — 414Net gain on financial assets taken to equity — 9 — — 9Net gain on equity investments in other sector entities — — 885 — 885Prior period adjustments — current year — — - 26 - 10 - 36Transfers to / from reserves during 2013–14 - 18 3 — 15 —Net income/expense recognised directly in equity for 2013–14 396 12 860 5 1 272Net surplus for 2013–14 — — — - 963 - 963Total comprehensive result for 2013–14 396 12 860 - 958 309Balance at 30 June 2014 21 688 69 19 653 -1 973 39 437
Note: Totals may not add due to rounding.
Restated balance at 30 June 2013
General government
Net income/expense recognised directly in equity for 2012–13
Total comprehensive result for 2012–13
Balance at 30 June 2013
Restated balance at 30 June 2013
Statement of changes in equity for the year ended 30 June 2014
Asset Revaluation
Reserve
Whole of Government
Total comprehensive result for 2012–2013Balance at 30 June 2013
2013–14 Consolidated Financial Report 7
Financial Statements
Note
2014 2013 2014 2013$m $m $m $m
Cash inflows (receipts)3 889 3 709 4 184 4 0778 150 8 131 8 253 8 1524 695 4 807 2 066 1 506
692 801 102 145 47 47 385 398
888 1 095 805 987Cash generated from operating activities 18 361 18 591 15 796 15 264
Cash outflows (payments)-8 680 -8 306 -8 418 -8 041-4 893 -4 638 -4 024 -3 612-1 055 -1 311 - 367 - 392-2 286 -2 309 -2 653 -2 819-1 497 -1 878 - 688 - 877
Cash used in operating activities -18 411 -18 443 -16 150 -15 74043 (c) - 50 147 - 354 - 476
Non-financial assets 375 1 476 78 1 166
-2 122 -2 935 -1 532 -1 884Net cash flows from investments in non-financial assets -1 747 -1 460 -1 454 - 718
Financial assets (policy purposes) 365 290 117 107
- 348 - 317 - 43 - 5Net cash flows from investments in financial assets 17 - 27 73 102
Financial assets (liquidity management purposes)1 794 1 063 5 97
-1 682 - 791 - 40 - 21Net cash flows from investments in financial assets 111 272 - 35 76
-1 619 -1 215 -1 415 - 540
Cash inflows (receipts) 29 — 75 —
2 009 1 468 1 541 1 115Cash generated from financing activities 2 038 1 468 1 616 1 115
Cash outflows (payments)- 12 - 4 - 99 - 4- 13 - 12 - 12 - 12
Cash used in financing activities - 25 - 16 - 111 - 162 012 1 452 1 505 1 099
343 385 - 264 831 331 946 4 133 4 050
43 (a) 1 674 1 331 3 870 4 133
Note: Totals may not add due to rounding.
Deposits paidBorrowings
Net cash flows from financing activities
Net increase/ (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of the yearCash and cash equivalents at the end of the year
Sales of investmentsPurchases of investments
Net cash flows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Deposits receivedBorrowings
Net cash provided by operating activities
CASH FLOWS FROM INVESTING PAYMENTS
Sales of non-financial assetsPurchases on non-financial assets
Advances repaidAdvances granted
Other receipts
Payments to employeesPurchases of goods and servicesInterest paidGrants paidOther payments
CASH FLOWS FROM OPERATING ACTIVITIES
Taxes receivedGrants receivedSales of goods and servicesInterest receiptsDividends received
Statement of cash flows for the year ended 30 June 2014
Whole of Government
General Government
8 2013–14 Consolidated Financial Report
Financial Statements
Note
2014 2013 2014 2013$m $m $m $m
Net cash flows from operating activities - 50 147 - 354 - 476Net cash flows from investments in non-financial assets -1 747 -1 460 -1 454 - 718Cash surplus/(deficit) -1 797 -1 313 -1 808 -1 194
Note: Totals may not add due to rounding.
Statement of cash flows (continued)
Whole of Government
General Government
Key fiscal aggregate
2013–14 Consolidated Financial Report 9
Financial Statements
10 2013–14 Consolidated Financial Report
Financial Statements
Notes to the Consolidated Financial Report
1. Significant accounting policies
To help in the understanding of the financial information presented in this report, the following notes set out significant accounting policies adopted in this report.
(a) Statement of compliance
This general purpose financial report, including the financial statements of the general government sector and the whole of government, has been prepared in accordance with applicable Australian Accounting Standards; in particular with Australian Accounting Standard AASB 1049 Whole of Government and General Government Sector Financial Reporting.
Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards and AASB 1049.
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted for the reporting period ending 30 June 2014. Refer to 1(e).
In compliance with AASB 1049, where consistent with accounting standards, Government Finance Statistics (GFS) concepts, sources and methods are used. In Australia, GFS standards are promulgated by the Australian Bureau of Statistics (ABS).
This general purpose financial report is prepared based on the principles and rules contained in the following ABS publications as published on the ABS website (ABS GFS Manual):
Australian System of Government Finance Statistics: Concepts, Sources and Methods, 2005 (ABS Catalogue No. 5514.0)
Amendments to Australian System of Government Finance Statistics, 2012 (ABS Catalogue No. 5514.0).
(b) Basis of preparation
The consolidated statements have been prepared for the reporting (financial) period for the 12 months from 1 July 2013 to 30 June 2014. Except where otherwise stated, the report has been prepared using the full accrual basis of accounting, which recognises the effect of transactions and events when they occur, rather than recognising the effects of transactions and events when cash is received or paid.
Accounting policies are selected and applied in a manner that ensures the resulting financial information satisfies the concepts of relevance and reliability. The preparation of the consolidated statements requires the use of certain accounting estimates and requires judgement to be exercised in the process of applying accounting policies. The areas involving a higher degree of judgement or where assumptions and estimates are significant to the consolidated statements are outlined in the applicable notes.
2013–14 Consolidated Financial Report 11
The ABS GFS manual provides the basis upon which GFS information that is contained in this financial report is prepared. In particular, notes disclosing key fiscal aggregates of net worth, net operating balance, total change in net worth, net lending (borrowing) and cash surplus (deficit) determined using the principles and rules in the ABS GFS manual are included in the financial report, together with a reconciliation of those key fiscal aggregates to the corresponding key fiscal aggregates recognised in the financial statements.
The purpose of the general government financial statements is to provide users with information about the stewardship by the government in relation to its general government sector and accountability for the resources entrusted to it, information about the financial position, changes in net assets/(liabilities), performance and cash flows of the government’s general government sector, and information that facilitates assessments of the macro-economic impact of the government’s general government sector.
(c) Reporting entity
The reporting entities are the Government of South Australia (whole of government) and the general government sector, and include entities under their control.
Every effort has been made to include all state controlled agencies, regardless of the materiality of the size of their financial transactions and/or resources managed in this consolidated financial report. Where control of an entity is obtained during the financial year, its results are included in the statement of comprehensive income from the date control commences. Where control of an entity ceases during a financial year, its results are included for that part of the year during which control existed.
The whole of government reporting entity includes government departments (general government sector), non-financial corporations, financial corporations and other government-controlled entities. These entities are set out at note 49.
The whole of government reporting entity excludes local government bodies, universities, most marketing and professional regulatory authorities, and associations/financial institutions incorporated under state statute but not controlled by the government.
In the process of reporting both the whole of government and the general government sector as a separate reporting entity, all material inter-entity and intra-entity transactions and balances have been eliminated to the extent practicable.
Assets, liabilities, revenues and expenses that are reliably attributable to each broad sector of activities of the government are set out below. The sectors of government have been determined in accordance with the GFS framework, as follows:
General government (GG) sector
The general government sector comprises all government departments, offices and other bodies engaged in providing services free of charge or at prices significantly below their cost of production. General government services include those that are mainly non-market in nature, those that are largely for collective consumption by the community and those that involve the transfer or redistribution of income. These services are financed mainly through taxes, other compulsory levies and user charges.
Public non-financial corporations (PNFC) sector
The public non-financial corporations sector comprises bodies mainly engaged in the production of goods and services (of a non-financial nature) for sale in the market place at prices that aim to recover all, or most of, the costs involved. In general, they are legally distinguishable from the government that owns them.
12 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Public financial corporations (PFC) sector
The public financial corporations sector comprises bodies primarily engaged in providing financial intermediation services or auxiliary financial services. They are able to incur financial liabilities on their own account (e.g. taking deposits, issuing securities or providing insurance services), and to acquire financial assets in the market on their own account. They can also perform central borrowing functions.
The standard under which the general government sector financial statements are prepared does not require full application of AASB 127 Consolidated and Separate Financial Statements and AASB 139 Financial Instruments: Recognition and Measurement.
Assets, liabilities, income, expenses and cash flows of government controlled entities in the public non-financial corporations sector and the public financial corporations sector are not separately recognised in the general government sector financial statements.
Instead, the general government sector financial statements recognise an asset, being the controlling equity investment in those entities, and recognise a gain or loss, classified as an ‘other economic flow’, relating to changes in the carrying amount of that asset.
(d) Comparatives
The presentation and classification of items in the financial statements are consistent with prior years except where specific accounting standards and/or accounting policy statements have required a change, or voluntary changes in accounting policies have been implemented.
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors requires the correction of prior period errors retrospectively, subject to certain limitations, to permit comparability with the current year. The retrospective adjustment occurs by restating the comparative amount in the prior period. The restated comparative amounts do not replace the original financial statements for the preceding year.
Changes in accounting estimates are recognised in the period when the estimate is revised. Such changes are not adjusted retrospectively to the financial statements.
(e) New and revised accounting standards and policies
In accordance with the new AASB 13 Fair Value Measurement, which became effective for the first time in 2013-14, the Government has:
reviewed its fair value valuation techniques for non-financial assets to ensure they are consistent with the standard. Previously, either the cost approach or the market approach has been used to determine fair value. The application of AASB 13 has not had a material impact on the fair value measurements; and
included additional disclosures where required to assist users in assessing the valuation techniques and inputs used to ascertain fair value measurements used for asset and liability measurements.
Fair value hierarchy and other information is discussed in Notes 1(k) and 41.
The impact of new and amended standards and interpretations have been assessed and considered to have no material impact on the consolidated financial statements.
As a result of the change in the regulatory function brought about by the agreement between the Tatts group and the SA Government, the Australian Bureau of Statistics (ABS) considers that SA Lotteries has now become a government regulatory agency rather than a government controlled market producer generating revenue from the lotteries industry. As a result of this consideration, the Government has now reclassified SA Lotteries from a public non-financial corporation (PNFC) to a
2013–14 Consolidated Financial Report 13
Notes to the Consolidated Financial Report
general government (GG) agency from 1 July 2013. There is no material impact of this change to either the general government or whole of government financial statements.
(f) Financial risk management
The government has significant non-interest bearing assets (cash on hand and at call, and receivables) and liabilities (payables); and interest bearing assets (held to maturity investments) and liabilities (external borrowings). The government’s activities expose it to a variety of financial risks, market risk (including foreign currency risk, interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The government has policies and procedures in place to ensure that transactions occur with customers with appropriate credit history.
The government’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects. The government uses certain derivative instruments such as forward exchange contracts and cross currency swaps to hedge risk exposures. Overall exposure to market risk and cash flow risk is minimised, and there are no significant concentrations of credit risk.
(g) Transactions and other economic flows
The statement of comprehensive income distinguishes between ‘transactions’ and ‘other economic flows’ in a manner that is consistent with the principles in the ABS GFS Manual. Transaction flows result directly from a mutually agreed interaction between two parties. An ‘other economic flow’ is a change in volume or value of an asset, or a liability, that does not result from a transaction.
(h) Income recognition
The policies adopted for the recognition of significant categories of revenue are as follows:
Taxation revenue
State taxation revenue is recognised by the responsible agency upon the receipt of cash associated with either an account as rendered, or with a taxpayer’s self-assessment. Major types of taxation revenues are:
payroll tax natural resource management levy
stamp duties land tax
gambling emergency services levy
motor vehicle registration River Murray levy.
Consistent with discussions in note 1(c), relevant taxes as listed above paid by state government controlled entities to other government agencies are eliminated upon consolidation from the financial statements presented here.
Other taxation issues
The government is exempt from Commonwealth taxation except for Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of an asset’s acquisition cost or as part of an expense item.
Receivables and payables are stated with the amount of GST included. The amounts of GST receivable from, or payable to, the ATO are included as a current asset or liability in the statement of financial position.
14 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Cash flows are included in the cash flow statement on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.
Unrecognised contractual commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to the ATO. If GST is not payable to, or recoverable from the ATO, the commitments and contingencies are disclosed on a gross basis.
Payments for FBT are included as employee expenses (refer note 10).
Grant revenue
Grant funding received is recorded as revenue at the time control over the asset passes to government. A material economic dependence exists in terms of the receipt of grants funded by the Commonwealth Government.
These grants include the government’s share of GST, which is distributed in accordance with the Principle of Fiscal Equalisation applied by the Commonwealth Grants Commission. Further disclosures about grant revenues are outlined in note 5.
Charges for goods and services
Revenues resulting from sale of and/or charges for goods and services, and regulatory fees, where possible, are recognised when the transaction or event giving rise to the revenues occurs.
Interest income
Interest on funds invested is recognised as it accrues using the effective interest rate method.
Dividends and income tax equivalents
The general government sector receives a return from the state’s PNFCs and PFCs in the form of dividends, tax equivalent payments and rate equivalent payments. Revenue is recognised in the period it is earned.
(i) Expense recognition
The policies adopted for the recognition of significant categories of expenses are as follows:
Employee expenses
Employee expenses include wages and salaries, leave entitlements and redundancy payments.
Superannuation interest cost
The carrying cost of unfunded superannuation liabilities is recognised as an interest cost. This cost is estimated based on the discount rate used to value the gross superannuation liability, less the expected return on plan assets.
Superannuation
The superannuation cost expense of the defined benefit plans relates to current service cost which is the cost of employer financed benefits that are expected to accrue for defined benefit members during the reporting period. The superannuation expense of the defined contribution plans is recognised as and when it falls due.
2013–14 Consolidated Financial Report 15
Notes to the Consolidated Financial Report
Depreciation and amortisation of non-financial assets
All non-financial assets, having a limited useful life, are systematically depreciated/amortised over their useful lives in a manner that reflects the consumption of their service potential, and in a majority of cases, on a straight-line basis. In accordance with Accounting Policy Framework III Asset Accounting Framework (APF III), estimates of remaining useful lives are reassessed on a regular basis for all relevant assets.
Heritage assets are anticipated to have very long and indeterminate useful lives. Their service potential is not, in any material sense, consumed during the reporting period. As such, very little accumulated amortisation has been recognised in respect of these assets.
Assets acquired under finance lease are amortised over the period during which the government is expected to benefit from use of the leased assets.
Assets under construction (work-in-progress) are not depreciated until they reach service delivery capacity.
Intangible assets are amortised and assessed for impairment at each reporting date.
The following are estimated useful lives for the different asset classes:
Asset class Useful life Land Not depreciated Buildings and structures
Buildings 1–170 years Leasehold improvements 1–100 years Road network 3–58 years Rail and bus tracks 1–125 years Water, sewerage and drainage 2–200 years Other infrastructure assets 1–150 years
Machinery and equipment Plant and equipment 1–116 years Vehicles 1–35 years
Heritage assets Indeterminate Intangible assets 1–45 years
Use of goods and services
Expenses arising from the use of goods and services are recognised in the reporting period in which they are incurred.
Interest expenses
Interest expenses include interest charges, finance lease charges and borrowing costs. Interest expenses are expensed in the period in which they are incurred.
Grant expenses
Grant expenses are recognised to the extent that:
the services required to be performed by the grantee have been performed, or
the grant eligibility criteria have been satisfied.
16 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
(j) Other economic flows
Other economic flows are changes in volume or value of an asset or liability that do not result from transactions.
Net foreign exchange gains
Gains or losses arising from exchange rate differences relating to amounts payable and receivable in foreign currencies are brought to account in the period in which the exchange rates change, with the exception of hedges of purchases of goods and services which are deferred and included in the measurement of purchase or sale.
Gain/(loss) on sale of non-financial assets
Gains or losses from the sale of non-financial assets are recognised when control of the asset has passed to the buyer.
Net actuarial gains/(losses) of defined superannuation defined benefit plans
Actuarial gains/(losses) on superannuation defined benefit plans are recognised in the period in which they occur.
Deferred income tax equivalents
Deferred tax equivalent income and expense are recognised in the general government (GG) sector as part of ‘other economic flows ― included in the operating result’, as well as an asset/liability. The GG sector is the counterparty to the tax effect accounting entries recognised by the PNFC and PFC sector agencies that are part of the National Tax Equivalent Regime.
This treatment is adopted on the basis that the GG sector controls these sectors and therefore, these amounts. On consolidation, these tax equivalent entries are eliminated for the whole of government accounts.
Other net actuarial gains/(losses)
Gains or losses from the revaluation of employee leave, workers compensation and self-insurance claims provisions relating to events occurring in prior periods are recognised as other economic flows.
(k) Assets
Assets recognised in the statement of financial position are classified into financial and non-financial assets based on a liquidity presentation.
Cash and deposits
Cash and deposits comprise cash on hand, cash at bank, deposits at call and those highly liquid investments with short periods to maturity, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.
Receivables and Provisions for doubtful debts
Trade accounts receivable are carried at amounts due. When there is objective evidence, provisions are raised for any doubtful debts based on review of all outstanding amounts at balance date. Bad debts are written off in the period in which they are identified.
2013–14 Consolidated Financial Report 17
Notes to the Consolidated Financial Report
Advances paid
Advances paid comprise loans made for policy purposes. As such, these advances are generally contracted at interest rates that are below market rates. Advances paid are initially measured at fair value plus transaction costs.
Investments in other public entities
Other sectors of government, that is the PNFC and PFC sectors, are accounted for in the GG sector reporting entity as an investment in other sectors measured at the government’s proportional share of the carrying amount of net assets of the PNFC and PFC sector entities before consolidation eliminations.
Any change in the carrying amount of the investment from period to period is accounted for as if the change in carrying amount is a change in fair value and accounted for in a consistent manner according to AASB 139 Financial Instruments: Recognition and Measurement.
Interest in joint ventures
Joint ventures are contractual arrangements between the state or a subsidiary entity and one or more other parties to undertake an economic activity that is subject to control. Joint control only exists when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control.
Interests in jointly controlled operations and jointly controlled assets are accounted for by recognising its share of the assets, liabilities and any revenue and expenses of such joint ventures in the state’s financial statements.
Interests in jointly controlled entities are accounted for in the consolidated financial statements using the equity method, as applied to investments in associates.
Inventories
Inventories (other than those held for distribution) are carried at the lower of cost and net realisable value under AASB 102 Inventories. For most agencies, cost is determined on either a first-in-first-out or average cost basis and includes expenditure incurred in acquiring the inventories and bringing them to their existing condition and location, except for trading costs which are expensed as incurred.
Where inventories are acquired for no or nominal consideration, the cost is the current replacement cost as at the date of acquisition.
Inventories held for distribution are those inventories that the government distributes for no or nominal consideration. These are measured at the lower of cost and current replacement cost. Land held for resale is stated at the lower of cost and net realisable value. Cost is assigned by specific identification and includes the cost of acquisition and development.
Land, machinery and equipment, buildings and structures
All non-financial assets are measured initially at cost and subsequently revalued at fair value.
Fair value is measured having regard to the asset’s highest and best use, and usually results in assets being valued at the current cost of replacing the future economic benefits that can be expected to be obtained from the remaining useful lives of the assets.
Assets acquired at no cost, or for nominal consideration, are initially recognised at their fair value at the date of acquisition. The fair value of cash consideration with deferred settlement terms is determined by discounting any amounts payable in the future to their present value as at the date of
18 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
acquisition. Present values are calculated using rates applicable to similar borrowing arrangements of the economic entity.
Land under roads
Accounting standard AASB 1051 Land under roads allows reporting entities to elect not to recognise land under roads acquired prior to 1 July 2008. This election has been made by the Department for Planning, Transport and Infrastructure (DPTI) with respect to land under roads in its financial statements, with only land under roads acquired after 1 July 2008 having been recognised in accordance with the requirements of AASB 1051. However, AASB 1049 requires that where an accounting standard permits a choice of accounting policy, the policy that aligns with GFS principles must be chosen.
GFS principles require measurement of all assets at market value. Under this interpretation, the election permitted in AASB 1051 cannot be applied to the general government sector or whole of government reports.
Land under roads is revalued by the Valuer-General on a triennial basis, with annual updates applied where movements in value are considered material. Applying the ‘englobo’ valuation methodology and using road network records of DPTI, land under roads as at 30 June 2014 was valued at $2.040 billion.
Revaluation of non-financial assets
All non-financial tangible assets are valued at fair value, and revaluation of non-financial assets or group of assets is only performed when its fair value at the time of acquisition is greater than $1 million and estimated useful life is greater than three years.
Land, buildings and leasehold improvements are revalued, at a minimum, every six years. However, if at any time the carrying amount of an asset materially differs from its fair value, then the asset will be revalued regardless of when the last valuation took place. Non-financial tangible assets that are acquired between revaluations are held at cost until the next valuation, where they are revalued at fair value.
Revaluation increments are credited directly to the asset revaluation reserve, except that, to the extent that an increment reverses a revaluation decrement for that class of asset previously recognised as an expense in the statement of comprehensive income, the increment is recognised as income.
Revaluation decrements are recognised immediately as an expense, except that they are debited directly to the asset revaluation reserve to the extent that a credit exists in the asset revaluation reserve in respect of the same class of asset.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the assets and the net amounts are restated to the revalued amounts of the asset. Where an asset that has previously been revalued is disposed of, any balance remaining in the asset revaluation reserve in respect of that asset is transferred to retained earnings.
Biological assets
Biological assets consist predominantly of standing timber. Standing timber is valued at the Net Present Value (NPV) of future cash flows. This is a change from the methodology used for the period ending 30 June 2013 which was the Net Market Value valuation approach. This policy is in accordance with the requirements of AASB 141 Agriculture and all amounts are calculated in pre-tax dollars.
2013–14 Consolidated Financial Report 19
Notes to the Consolidated Financial Report
Non-financial assets classified as held for sale
All non-financial assets classified as held for sale are split into produced and non-produced non-financial assets on the statement of financial position. In accordance with AASB 5 Non-current Assets Held for Sale and Discontinued Operations, non-financial assets held for sale are measured at the lower of carrying amount and fair value less costs to sell and have not been depreciated or amortised.
Investment properties
All investment properties are reported as non-financial assets in the statement of financial position. In accordance with AASB 140 Investment Property, properties held to earn rental income or for capital gains purposes are classified as investment properties. Such properties are valued at fair value. Changes in fair value are recognised in the statement of comprehensive income and no depreciation expense or asset impairment is recognised.
Intangible assets
An intangible asset is an indefinable non-monetary asset without physical substance. All intangible assets are reported as non-financial assets on the statement of financial position. Intangible assets are measured at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and any accumulated impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. The Government only has intangible assets with finite lives. The amortisation period and the amortisation method for intangible assets is reviewed on an annual basis.
The acquisition of or internal development of software is capitalised only when the expenditure meets the definition criteria and recognition criteria and when the amount of expenditure is greater than or equal to $10,000.
All research and development costs that do not meet the capitalisation criteria outlined in AASB 138 are expensed. Subsequent expenditure on intangible assets has not been capitalised.
Impairment
At each reporting date, an assessment is undertaken as to whether there are any indications that a physical or intangible asset is impaired. If an asset is determined to be impaired, the recoverable amount of the impaired asset is determined as the higher of the asset’s fair value less costs to sell and either depreciated replacement cost or value in use.
Value-in-use is defined differently for not-for-profit entities than for-profit entities. Value-in-use for not-for-profit entities is the depreciated replacement cost where the future economic benefits of an asset are not primarily dependant on the assets ability to generate net cash inflows. Value-in-use for profit entities represents the present value of the future cash flows expected to be derived from the asset. However, due to the problematic nature of determining a cash generating entity within a public sector context, the Treasurer has elected to estimate value-in-use as the sum of the written-down current costs of the assets comprising the operation unless otherwise approved by the Treasurer.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows that are largely independent of the cash flows from other assets or groups of assets (cash-generating units). Non-financial assets (other than goodwill) that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
20 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Fair Value measurement
AASB 13 defines fair value as the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants, in the principal or most advantageous market, at the measurement date.
The Government classifies fair value measurement using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements, based on the data and assumptions used in the most recent revaluation.
Level 1 – traded in active markets and is based on unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at measurement date.
Level 2 – not traded in an active market and are derived from inputs (inputs other than quoted prices included within level 1) that are observable for the asset, either directly or indirectly.
Level 3 – not traded in an active market and are derived from unobservable inputs.
In determining fair value, the Government has taken into account the characteristic of the asset (eg condition and location of the asset and restrictions on the sale or use of the asset); and the asset’s highest and best use (that is physically possible, legally permissible, financially feasible).
The current use is the highest and best use of the asset unless other factors suggest an alternative use is feasible within the next five years. As there were no factors to suggest an alternative use, fair value measurement was based on current use.
The carrying amount of non-financial assets with a ‘fair value at the time of acquisition that was less than $1 million or had an estimated useful life that was less than three years’ are deemed to approximate fair value.
Refer to note 41 for disclosure regarding fair value measurement techniques and inputs used to develop fair value measurements for non-financial assets.
(l) Liabilities
Deposits held
Deposits held represent liabilities for customer security deposits which can be refunded at any time. These deposits are recognised at no less than the amount payable on demand, in accordance with AASB 139.
Payables
Payables consist predominantly of creditors and other sundry liabilities. Accounts payable represent liabilities for goods and services provided to the state prior to the end of the financial year that are unpaid, and arise when the state becomes obliged to make future payments in respect of the purchase of these goods and services.
All payables are measured at their nominal amount, are unsecured and are normally settled within 30 days from the date of the invoice or date the invoice is first received.
Employee benefits
Employee benefits (including wages, salaries, annual leave, long service leave, skills and experience retention leave, sick leave and superannuation benefits) reflect those benefits accrued as a result of services provided by employees up to the reporting date that remain unpaid.
In accordance with Australian Accounting Standard AASB 119 Employee Benefits, employee benefits expected to be settled within 12 months of the reporting date are measured at the nominal amounts
2013–14 Consolidated Financial Report 21
Notes to the Consolidated Financial Report
expected to be paid on settlement. Employee benefits not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments using the project unit credit method.
In measuring the liability for non-vesting sick leave at reporting date, only that component of the accumulated benefits that are expected to result in payments to employees are recognised.
The estimated liability for long service leave is based on actuarial assumptions over the expected future salary and wage levels, experience of employee departures and periods of service. These assumptions are based on employee data across all South Australian government entities. Expected future payments are discounted using market yields at the end of the reporting period on government bonds with durations that match, as closely as possible, the estimated future cash outflows.
Superannuation
An unfunded superannuation liability is recognised in respect of the defined benefit schemes, in accordance with AASB 119. It is measured as the difference between the estimated present value of members’ accrued benefits at balance date and the estimated net market value of the superannuation schemes’ assets at that date.
The present value of accrued benefits is based on expected future payments that arise from membership of the fund to the reporting date. The accrued benefits amount is calculated having regard to expected future wage and salary levels, experience of employee departures and their periods of service.
Actuarial gains and losses resulting from changes in measurement assumptions (e.g. discount rate and abnormal earning rates) are immediately recognised as part of ‘other economic flows ― included in net result’. The other components of the expenses are recognised in ‘expenses from transactions’.
Details of superannuation arrangements between employees, the government and its controlled entities are set out in note 37.
Other provisions
Provisions are recognised when the state has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the provision is expected to be reimbursed, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to the provision is presented in the statement of comprehensive income net of any reimbursement.
(m) Financial instruments
Under AASB 139 Financial Instruments: Recognition and Measurement, financial assets are to be classified and measured as follows:
designated at fair value through profit or loss
held to maturity — measured at amortised cost
loans and receivables — measured at amortised cost, or
available-for-sale — measured at fair value with unrealised gains/losses recognised directly in equity except for impairment losses and foreign exchange gains/losses.
22 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Under AASB 139, financial liabilities are to be classified and measured as follows:
designated at fair value through profit or loss, or
other financial liabilities — measured at amortised cost.
Financial assets at fair value through profit or loss
Financial assets, which include marketable debt securities, non-marketable debt securities, and Australian dollar term deposits, are valued at fair value at balance date. Realised and unrealised gains and losses are brought to account in the statement of comprehensive income. Financial assets held by the state include money market deposits, discount securities, Commonwealth and state securities, floating rate notes, medium term notes, fixed interest deposits, letters of credit, and investments managed by the South Australian Government Financing Authority (SAFA).
Financial liabilities at fair value through profit or loss
Financial liabilities, which include deposits and interest bearing liabilities, are valued at fair value at balance date. The amount reported in the statement of financial position represents the market value of deposits held at balance date. Realised and unrealised gains and losses are brought to account in the statement of comprehensive income. Interest bearing liabilities held by the government include Treasury notes, Australian bonds, credit foncier loans, commercial paper, overseas bonds and medium term notes principally raised by SAFA. In relation to deposits, income derived from their investment accrues to depositors daily.
Other financial assets and financial liabilities held at amortised cost
Other financial assets are initially measured at fair value plus transaction costs. Other financial assets consist of non-derivative financial assets with fixed or determinable payments, which are not subsequently valued at fair value either because they are not quoted in an active market or they are intended to be held to maturity. These financial assets are measured at amortised cost using the effective interest method. Changes are accounted for in the statement of comprehensive income when impaired, derecognised or through an amortisation process.
Derivative financial instruments
Derivative financial instruments are employed, primarily by the public financial corporation’s sector agencies, in fund raising, debt management and to provide efficient entry to or exit from markets or as a cost efficient substitute for the actual acquisition of securities. They are used to convert funding costs (e.g. from fixed to floating interest costs or floating to fixed), facilitate diversification of funding sources, to reconfigure interest rate risk profiles and to manage foreign currency exposures.
Currency swaps are recorded in the statement of financial position on a gross basis and translated at the exchange rate applying at balance date. Resulting exchange rate differences are recognised in the statement of comprehensive income.
Interest rate swaps are accounted for on a market value basis with interest receipts and interest payments accrued on a gross basis in the statement of financial position.
Financial futures and exchange traded interest rate option contracts are marked-to-market daily and the resultant change in value is recognised directly in the statement of comprehensive income. Forward rate agreements gains or losses are recognised directly in the statement of comprehensive income. Forward foreign exchange contracts are accounted for as outlined in note 1(o). Further disclosures about financial instruments are outlined in note 42.
2013–14 Consolidated Financial Report 23
Notes to the Consolidated Financial Report
(n) Leases
The government’s rights and obligations under finance leases, which are leases that effectively transfer to the government substantially all of the risks and benefits incidental to ownership of the leased items, are initially recognised as assets and liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed as plant and equipment under lease, and are amortised over the period during which the government is expected to benefit from use of the leased assets. Minimum lease payments are allocated between finance cost expense and reduction of the lease liability, according to the interest rate implicit in the lease.
In respect of operating leases, where the lessor effectively retains substantially all of the risks and benefits incidental to ownership of the leased items, lease payments are charged to expense over the lease term.
In respect of lease incentives, all incentives for the agreement of new or renewed operating leases are recognised as an integral part of the net consideration agreed for the use of the leased asset. Incentives received to enter into operating leases are recognised as a liability.
The aggregate benefits of lease incentive received in respect of operating leases have been recorded as a reduction of rental expense over the lease term, on a straight-line basis. Lease incentives in the form of leasehold improvements are capitalised as an asset and depreciated over the remaining term of the lease or estimated useful life of the improvement, whichever is shorter.
(o) Foreign currency
Foreign currency transactions are translated to Australian currency at the rate of exchange ruling at the dates of the transactions. Amounts receivable and payable in foreign currencies at balance date are translated at the rates of exchange ruling on that date.
(p) Commitments
Commitments include operating, capital and other outsourcing commitments and contracts arising from non-cancellable contractual or statutory sources. These commitments are stated at their nominal value. Details of such commitments are reported in notes 44 and 46.
(q) Contingent assets and liabilities
In accordance with Australian Accounting Standard AASB 137 Provisions, Contingent Liabilities and Contingent Assets, contingent assets and liabilities are not recognised in the statement of financial position, but are disclosed by way of note and, if quantifiable, are measured at nominal value. Further disclosures are outlined in note 47.
(r) Budget information
Budget information provided in note 51 refers to the original estimates as disclosed in the 2013−14 Budget papers and is not subject to audit. Explanation of the major variances between budget and actual outcomes is provided in the 2013–14 Final Budget Outcome (FBO).
(s) Rounding
All amounts in the financial report have been reported in Australian dollars and rounded to the nearest million dollars unless otherwise indicated. As a consequence, columns may not add due to rounding.
24 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2. Disaggregated information
For the purpose of this disclosure, effects of transactions and balances between sectors have not been eliminated but those between entities within each sector have been eliminated.
The financial impact of inter-sector transactions and balances is disclosed under the heading of ‘Consolidated Eliminations’ within the statements on the following pages.
2013–14 Consolidated Financial Report 25
Notes to the Consolidated Financial Report
Sta
tem
ent
of
com
pre
hen
sive
inco
me
($m
illio
n)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Rev
enue
from
tran
sact
ions
Taxa
tion
reve
nues
4 11
54
055
——
——
- 246
- 343
3 86
83
712
Gra
nt re
venu
e8
255
8 13
1 5
02 6
14 7
6- 6
20- 6
338
144
8 11
9S
ales
of g
oods
and
ser
vice
s2
173
1 67
31
784
2 32
31
359
1 45
5- 4
47- 4
024
870
5 04
9In
tere
st in
com
e 1
17 1
44 1
7 2
31
268
1 35
2- 6
55- 6
99 7
47 8
21D
ivid
ends
and
inco
me
tax
equi
vale
nts
381
835
4 8
42
37
- 379
- 833
47
47
Oth
er re
venu
es 7
41 8
52 7
7 4
09 1
1 1
73- 1
4- 3
34 8
151
100
Tota
l rev
enue
from
tran
sact
ions
15 7
8215
690
2 38
43
378
2 68
63
025
-2 3
61-3
245
18 4
9218
849
Expe
nses
from
tran
sact
ions
Em
ploy
ee e
xpen
ses
7 20
36
966
203
205
51
43
- 25
- 23
7 43
27
190
Sup
eran
nuat
ion
inte
rest
cos
t 4
68 3
14—
——
——
— 4
68 3
14O
ther
sup
eran
nuat
ion
expe
nses
736
675
26
25
4 4
——
766
705
Dep
reci
atio
n an
d am
ortis
atio
n 8
12 7
62 4
24 4
03 4
8 5
0—
—1
284
1 21
6U
se o
f goo
ds a
nd s
ervi
ces
3 92
73
722
914
993
132
207
- 330
- 313
4 64
24
609
Inte
rest
exp
ense
s 3
70 3
86 2
20 2
391
098
1 23
2- 6
33- 6
991
055
1 15
9G
rant
exp
ense
s2
667
2 82
4 1
38 1
12 1
70 1
- 675
- 622
2 30
02
315
Inco
me
tax
expe
nse
——
104
111
32
36
- 136
- 146
——
Oth
er o
pera
ting
expe
nses
686
601
292
706
742
917
- 318
- 745
1 40
21
478
Tota
l exp
ense
s fr
om tr
ansa
ctio
ns16
868
16 2
502
320
2 79
52
277
2 48
9-2
117
-2 5
4919
349
18 9
85N
et re
sult
from
tran
sact
ions
— N
et o
pera
ting
bala
nce
-1 0
86- 5
60 6
4 5
83 4
09 5
36- 2
44- 6
96- 8
57- 1
36
Oth
er e
cono
mic
flow
s —
incl
uded
in n
et re
sult
Net
fore
ign
exch
ange
gai
ns—
——
—- 2
80 1
14—
—- 2
79 1
14N
et g
ain/
(loss
) on
sale
of n
on-fi
nanc
ial a
sset
s- 2
- 37
9- 6
- 1 2
——
7- 4
2N
et g
ain/
(loss
) on
finan
cial
ass
ets
or li
abili
ties
at fa
ir va
lue
- 3 1
9- 5
9- 1
19 9
54 2
27—
— 8
93 1
27N
et a
ctua
rial g
ains
/(los
ses)
of s
uper
annu
atio
n de
fined
ben
efit
plan
s 2
542
314
——
——
——
254
2 31
4R
eval
uatio
n to
def
erre
d in
com
e ta
x eq
uiva
lent
s 1
05- 4
0—
——
—- 1
05 4
0—
—O
ther
net
act
uaria
l gai
ns/(l
osse
s)- 1
24- 1
0- 1
- 1- 1
47- 4
00—
—- 2
71- 4
11O
ther
eco
nom
ic fl
ows
- 108
- 24
- 26
- 38
- 3- 3
——
- 138
- 65
Tota
l oth
er e
cono
mic
flow
s —
incl
uded
in n
et re
sult
123
2 22
1- 7
7- 1
64 5
24- 6
1- 1
05 4
0 4
652
036
Net
Res
ult
- 963
1 66
2- 1
3 4
19 9
33 4
74- 3
49- 6
55- 3
921
900
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
Gen
eral
G
over
nmen
t P
ublic
Non
Fin
anci
al
C
orpo
ratio
ns
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
W
hole
of
G
over
nmen
t
26 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Sta
tem
ent
of
com
pre
hen
sive
inco
me
(co
nti
nu
ed)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Oth
er e
cono
mic
flow
s —
oth
er n
on-o
wne
r mov
emen
ts in
equ
ityC
hang
es in
pro
perty
, pla
nt a
nd e
quip
men
t ass
et re
valu
atio
n re
serv
e 4
14 8
11 1
62- 5
12—
— 1
05- 4
1 6
80 2
58N
et g
ain
on e
quity
inve
stm
ents
in o
ther
sec
tors
885
-1 2
15—
——
—- 8
851
215
——
Net
gai
n on
fina
ncia
l ass
ets
at fa
ir va
lue
9 8
3 2
——
— 1
11
10
Prio
r per
iod
adju
stm
ents
- 36
- 10
44
12
1—
——
10
2To
tal o
ther
eco
nom
ic fl
ows
— n
on-o
wne
r mov
emen
ts in
equ
ity1
272
- 406
208
- 498
1—
- 781
1 17
4 7
01 2
70C
ompr
ehen
sive
Res
ult —
tota
l cha
nge
in n
et w
orth
309
1 25
5 1
95- 8
0 9
35 4
74-1
130
519
309
2 16
9
Tran
sact
ions
with
ow
ners
as
owne
rsD
ivid
ends
——
- 204
- 676
- 40
- 20
244
696
——
Res
truct
ures
— 9
14—
- 923
— 9
——
——
Con
tribu
ted
Cap
ital
——
37
- 53
——
- 37
53
——
Tota
l tra
nsac
tions
with
ow
ners
— 9
14- 1
67-1
652
- 40
- 11
207
748
——
Tota
l cha
nge
in n
et w
orth
309
2 16
9 2
8-1
731
895
464
- 923
1 26
7 3
092
169
Key
fisc
al a
ggre
gate
sN
et o
pera
ting
bala
nce
-1 0
86- 5
60 6
4 5
83 4
09 5
36- 2
44- 6
96- 8
57- 1
36Le
ss n
et a
cqui
sitio
n of
non
-fina
ncia
l ass
ets
661
47
53
9- 4
7 2
58—
- 3 6
67 3
11N
et le
ndin
g/bo
rrow
ing
-1 7
47- 6
07 1
0 5
75 4
57 2
78- 2
44- 6
93-1
525
- 447
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
Gen
eral
G
over
nmen
t P
ublic
N
on F
inan
cial
Cor
pora
tions
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
W
hole
of
G
over
nmen
t
2013–14 Consolidated Financial Report 27
Notes to the Consolidated Financial Report
Sta
tem
ent
of
fin
anci
al p
osi
tio
n (
$mill
ion
)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
ASS
ETS
Fina
ncia
l ass
ets
Cas
h an
d de
posi
ts3
870
4 13
3 4
23 5
47 7
26 8
29-3
345
-4 1
791
674
1 33
1R
ecei
vabl
es2
362
2 33
3 3
28 3
62 6
84 5
22-1
966
-1 9
501
408
1 26
7Lo
an a
dvan
ces
63
176
22
29
17 5
0915
670
-15
005
-13
292
2 58
92
584
Inve
stm
ents
, loa
ns a
nd p
lace
men
ts 2
47 2
26 4
7 4
411
548
7 81
2—
—11
841
8 08
2In
vest
men
ts in
oth
er p
ublic
ent
ities
20 1
6519
242
——
——
-20
165
-19
242
——
Inve
stm
ents
— o
ther
32
37
10
917
934
18 3
75—
—17
976
18 4
22In
tere
sts
in jo
int v
entu
res
804
793
6 8
——
——
810
801
Tota
l fin
anci
al a
sset
s27
542
26 9
41 8
35 9
9948
401
43 2
09-4
0 48
1-3
8 66
336
297
32 4
86N
on-fi
nanc
ial a
sset
sP
rodu
ced
asse
ts
Inve
ntor
ies
64
64
533
489
——
——
597
552
M
achi
nery
and
equ
ipm
ent
2 24
43
566
260
206
185
198
—- 3
2 68
83
968
B
uild
ings
and
stru
ctur
es28
861
26 6
8717
981
17 7
21 6
07 6
16—
—47
449
45 0
25
Her
itage
ass
ets
1 12
71
114
6 1
4—
——
—1
133
1 12
8
Bio
logi
cal a
sset
s 2
2 3
5 7
2—
——
— 3
7 7
4
Inta
ngib
les
59
57
- 2 2
30
34
——
87
94
N
on-fi
nanc
ial a
sset
s he
ld fo
r sal
e 1
0 1
10
— 7
6—
— 2
7 6
O
ther
non
-fina
ncia
l ass
ets
48
61
43
44
30
27
- 47
- 46
74
86
Non
-pro
duce
d as
sets
L
and
5 95
65
873
6 08
66
218
——
——
12 0
4212
091
In
tang
ible
s 1
42 1
44 2
07 2
05 1
——
— 3
51 3
49
Non
-fina
ncia
l ass
ets
held
for s
ale
128
108
17
32
——
——
145
140
Tota
l non
-fina
ncia
l ass
ets
38 6
4237
677
25 1
7625
002
859
882
- 47
- 49
64 6
2963
512
Tota
l ass
ets
66 1
8464
618
26 0
1126
001
49 2
6144
090
-40
529
-38
712
100
927
95 9
98N
ote:
Tot
als
may
not
add
due
to ro
undi
ng.
Gen
eral
G
over
nmen
t P
ublic
N
on F
inan
cial
Cor
pora
tions
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
W
hole
of
G
over
nmen
t
28 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Sta
tem
ent
of
fin
anci
al p
osi
tio
n (
con
tin
ued
)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
LIA
BIL
ITIE
SD
epos
its h
eld
356
392
——
3 18
23
880
-3 3
37-4
089
201
183
Adv
ance
s re
ceiv
ed—
——
——
——
——
—B
orro
win
g10
885
9 35
54
383
4 34
117
696
15 6
88-1
4 95
9-1
3 36
218
006
16 0
22P
ayab
les
978
1 04
6 2
75 2
96 3
85 1
47- 2
69- 2
641
369
1 22
5E
mpl
oyee
ben
efits
2 45
22
457
73
74
16
16
——
2 54
02
547
Sup
eran
nuat
ion
10 8
7711
085
——
——
——
10 8
7711
085
Sup
eran
nuat
ion
fund
dep
osits
——
——
20 7
4217
867
——
20 7
4217
867
Pro
visi
ons
527
491
13
14
6 26
16
390
- 8- 7
6 79
36
888
Liab
ilitie
s as
soci
ated
with
non
-fina
ncia
l ass
ets
clas
sifie
d as
hel
d fo
r sal
e—
——
——
——
——
—O
ther
liab
ilitie
s 6
71 6
611
838
1 87
4 2
43 2
64-1
790
-1 7
48 9
621
052
Tota
l lia
bilit
ies
26 7
4625
489
6 58
16
599
48 5
2644
251
-20
364
-19
470
61 4
8956
869
Net
ass
ets/
(liab
ilitie
s)39
437
39 1
2919
430
19 4
02 7
34- 1
60-2
0 16
4-1
9 24
239
437
39 1
29
EQU
ITY
Ret
aine
d ea
rnin
gs-1
973
-1 0
154
451
4 46
6 7
32- 1
64- 8
35- 7
312
374
2 55
6C
ontri
bute
d ca
pita
l—
— 5
11 4
48—
—- 5
11- 4
48—
—R
eser
ves
A
sset
reva
luat
ion
rese
rve
21 6
8821
293
14 4
1614
401
——
835
730
36 9
3936
424
O
ther
rese
rves
50
43
38
75
2 2
——
90
121
F
inan
cial
ass
ets
avai
labl
e fo
r sal
e re
serv
e 1
9 1
4 1
4 1
2 1
1 1
1 3
5 2
7
Net
equ
ity in
vest
men
ts in
oth
er s
ecto
rs re
serv
e19
653
18 7
94—
——
—-1
9 65
3-1
8 79
4—
—To
tal e
quity
(Net
wor
th)
39 4
3739
129
19 4
3019
402
734
- 160
-20
164
-19
242
39 4
3739
129
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
Gen
eral
G
over
nmen
t P
ublic
N
on F
inan
cial
Cor
pora
tions
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
W
hole
of
G
over
nmen
t
2013–14 Consolidated Financial Report 29
Notes to the Consolidated Financial Report
Sta
tem
ent
of
chan
ges
in e
qu
ity
($m
illio
n)
Gen
eral
Gov
ernm
ent s
ecto
rR
etai
ned
earn
ings
-1 0
15- 9
58-1
973
Ass
et re
valu
atio
n re
serv
e21
293
396
21 6
88O
ther
rese
rves
43
7 5
0Fi
nanc
ial a
sset
s av
aila
ble
for s
ale
rese
rve
14
5 1
9N
et e
quity
inve
stm
ents
in o
ther
ser
ctor
s re
serv
e18
794
860
19 6
53To
tal G
ener
al G
over
nmen
t sec
tor
39 1
29 3
0939
437
Publ
ic N
on-F
inan
cial
sec
tor
Con
tribu
ted
capi
tal
448
63
511
Ret
aine
d ea
rnin
gs4
466
- 15
4 45
1A
sset
reva
luat
ion
rese
rve
14 4
01 1
514
416
Oth
er re
serv
es 7
5- 3
7 3
8Fi
nanc
ial a
sset
s av
aila
ble
for s
ale
rese
rve
12
3 1
4To
tal P
ublic
Non
-Fin
anci
al s
ecto
r19
402
28
19 4
30
Publ
ic F
inan
cial
Cor
pora
tions
sec
tor
Con
tribu
ted
capi
tal
——
—R
etai
ned
earn
ings
- 164
895
732
Ass
et re
valu
atio
n re
serv
e—
——
Oth
er re
serv
es 2
- 1 2
Fina
ncia
l ass
ets
avai
labl
e fo
r sal
e re
serv
e 1
— 1
Tota
l Pub
lic F
inan
cial
Cor
pora
tions
sec
tor
- 160
895
734
Tota
l sec
tor e
quity
58 3
711
231
59 6
02
Elim
inat
ions
-19
242
- 923
-20
164
Tota
l Who
le o
f Gov
ernm
ent
39 1
29 3
0939
437
(a) T
otal
com
preh
ensi
ve re
sult
( afte
r tra
nsac
tions
with
ow
ners
)
Equi
ty a
t
1
July
201
3 To
tal
com
preh
ensi
ve
resu
lt (a
)
Equi
ty a
t
30 J
une
201
4
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
30 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Sta
tem
ent
of
cash
flo
ws
($m
illio
n)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
CA
SH F
LOW
S FR
OM
OPE
RA
TIN
G A
CTI
VITI
ESC
ash
inflo
ws
(rec
eipt
s)Ta
xes
rece
ived
4 18
44
077
——
——
- 296
- 368
3 88
93
709
Gra
nts
rece
ived
8 25
38
152
510
606
6 6
- 619
- 632
8 15
08
131
Sal
es o
f goo
ds a
nd s
ervi
ces
2 06
61
506
1 77
52
235
1 28
01
469
- 427
- 403
4 69
54
807
Inte
rest
rece
ipts
102
145
18
23
1 26
11
278
- 690
- 645
692
801
Div
iden
ds re
ceiv
ed 3
85 3
98 4
8 4
2 3
7- 3
84- 3
96 4
7 4
7O
ther
rece
ipts
805
987
21
63
86
123
- 23
- 77
888
1 09
5C
ash
gene
rate
d fr
om o
pera
ting
activ
ities
15 7
9615
264
2 32
82
935
2 67
62
913
-2 4
39-2
521
18 3
6118
591
Cas
h ou
tflow
s (p
aym
ents
)P
aym
ents
to e
mpl
oyee
s-8
418
-8 0
41- 2
31- 2
36- 5
6- 5
2 2
5 2
3-8
680
-8 3
06P
urch
ases
of g
oods
and
ser
vice
s-4
024
-3 6
12-1
060
-1 1
33- 1
21- 2
23 3
12 3
29-4
893
-4 6
38In
tere
st p
aid
- 367
- 392
- 264
- 284
-1 1
26-1
423
701
788
-1 0
55-1
311
Gra
nts
paid
-2 6
53-2
819
- 138
- 112
- 170
- 1 6
75 6
22-2
286
-2 3
09O
ther
pay
men
ts- 6
88- 8
77- 3
49- 6
23-1
020
- 813
560
435
-1 4
97-1
878
Cas
h us
ed in
ope
ratin
g ac
tiviti
es-1
6 15
0-1
5 74
0-2
041
-2 3
88-2
493
-2 5
122
273
2 19
7-1
8 41
1-1
8 44
3
Net
cas
h pr
ovid
ed b
y op
erat
ing
activ
ities
- 354
- 476
287
547
183
401
- 166
- 324
- 50
147
CA
SH F
LOW
S FR
OM
INVE
STIN
G A
CTI
VITI
ESN
on-fi
nanc
ial a
sset
sS
ales
of n
on-fi
nanc
ial a
sset
s 7
81
166
221
227
76
83
——
375
1 47
6P
urch
ases
on
non-
finan
cial
ass
ets
-1 5
32-1
884
- 513
- 663
- 76
- 393
— 4
-2 1
22-2
935
Net
cas
h flo
ws
from
inve
stm
ents
in n
on-fi
nanc
ial a
sset
s-1
454
- 718
- 293
- 436
—- 3
10—
4-1
747
-1 4
60
Fina
ncia
l ass
ets
(pol
icy
purp
oses
)A
dvan
ces
repa
id 1
17 1
07 8
81
580
1 49
1-1
340
-1 3
15 3
65 2
90A
dvan
ces
gran
ted
- 43
- 5—
—-3
267
-2 9
452
963
2 63
3- 3
48- 3
17N
et c
ash
flow
s fr
om in
vest
men
ts in
fina
ncia
l ass
ets
73
102
8 8
-1 6
87-1
454
1 62
31
317
17
- 27
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
Gen
eral
G
over
nmen
t P
ublic
N
on F
inan
cial
Cor
pora
tions
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
W
hole
of
G
over
nmen
t
2013–14 Consolidated Financial Report 31
Notes to the Consolidated Financial Report
Sta
tem
ent
of
cash
flo
ws
(co
nti
nu
ed)
Sect
or o
f Gov
ernm
ent
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
Fina
ncia
l ass
ets
(liqu
idity
man
agem
ent p
urpo
ses)
Sal
es o
f inv
estm
ents
5 9
7 1
21
788
964
——
1 79
41
063
Pur
chas
es o
f inv
estm
ents
- 40
- 21
—- 2
-1 6
42- 7
69—
1-1
682
- 791
Net
cas
h flo
ws
from
inve
stm
ents
in fi
nanc
ial a
sset
s- 3
5 7
6—
— 1
46 1
95—
1 1
11 2
72N
et c
ash
flow
s fr
om in
vest
ing
act
iviti
es-1
415
- 540
- 285
- 428
-1 5
42-1
569
1 62
31
322
-1 6
19-1
215
CA
SH F
LOW
S FR
OM
FIN
AN
CIN
G A
CTI
VITI
ESC
ash
inflo
ws
(rec
eipt
s)A
dvan
ces
rece
ived
——
37
——
—- 3
7—
——
Dep
osits
rece
ived
75
——
——
—- 4
7—
29
—B
orro
win
gs1
541
1 11
51
385
1 51
72
009
1 46
8-2
926
-2 6
332
009
1 46
8O
ther
fina
ncin
g re
ceip
ts—
——
——
——
——
—C
ash
gene
rate
d fr
om fi
nanc
ing
activ
ities
1 61
61
115
1 42
21
517
2 00
91
468
-3 0
10-2
633
2 03
81
468
Cas
h ou
tflow
s (p
aym
ents
)A
dvan
ces
repa
id—
——
- 53
——
— 5
3—
—D
ivid
ends
pai
d—
—- 2
06- 2
67- 4
0- 1
9 2
46 2
86—
—D
epos
its p
aid
- 99
- 4—
—- 7
13—
799
—- 1
2- 4
Bor
row
ings
- 12
- 12
-1 3
43-1
280
——
1 34
21
281
- 13
- 12
Oth
er fi
nanc
ing
——
——
— 2
—- 2
——
Cas
h us
ed in
fina
ncin
g ac
tiviti
es- 1
11- 1
6-1
548
-1 6
00- 7
52- 1
82
386
1 61
8- 2
5- 1
6N
et c
ash
flow
s fr
om fi
nanc
ing
activ
ities
1 50
51
099
- 126
- 82
1 25
61
450
- 623
-1 0
152
012
1 45
2N
et in
crea
se/ (
decr
ease
) in
cash
and
cas
h eq
uiva
lent
s- 2
64 8
3- 1
24 3
6- 1
03 2
82 8
34- 1
7 3
43 3
85C
ash
and
cash
equ
ival
ents
at b
egin
ning
of t
he y
ear
4 13
34
050
547
511
829
547
-4 1
79-4
161
1 33
1 9
46C
ash
and
cash
equ
ival
ents
at t
he e
nd o
f the
yea
r3
870
4 13
3 4
23 5
47 7
26 8
29-3
345
-4 1
791
674
1 33
1
Key
fisc
al a
ggre
gate
Net
cas
h flo
ws
from
ope
ratin
g ac
tiviti
es- 3
54- 4
76 2
87 5
47 1
83 4
01- 1
66- 3
24- 5
0 1
47N
et C
ash
flow
s fro
m in
vest
emen
t in
non-
finan
cial
ass
ets
-1 4
54- 7
18- 2
93- 4
36—
- 310
— 4
-1 7
47-1
460
Div
iden
ds p
aid
——
- 206
- 267
- 40
- 19
246
286
——
Cas
h su
rplu
s/(d
efic
it)-1
808
-1 1
94- 2
12- 1
56 1
43 7
2 8
0- 3
5-1
797
-1 3
13N
ote:
Tot
als
may
not
add
due
to ro
undi
ng.
Gen
eral
G
over
nmen
t P
ublic
N
on F
inan
cial
Cor
pora
tions
Pub
lic
Fina
ncia
l
Cor
pora
tions
Con
solid
ated
El
imin
atio
ns
C
onso
lidat
ed
W
hole
of
G
over
nmen
t
32 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
3(a)
Rec
onci
liatio
n to
GFS
Net
Ope
rain
g B
alal
nce
Net
resu
lt fro
m T
rans
actio
ns —
net
ope
ratin
g ba
lanc
e-1
086
- 560
64
583
409
536
- 244
- 696
- 857
- 136
Co
nverg
en
ce d
iffe
ren
ces
Div
iden
ds to
GG
S fr
om o
ther
sec
tor e
ntiti
es(a
)—
—- 2
00- 2
68- 4
0- 2
0 2
40 2
88—
—E
xclu
sion
of d
ivid
ends
from
ele
ctric
ity le
ases
(b)
- 5- 4
08- 5
- 5—
— 5
408
- 5- 5
Exc
lusi
on o
f Fun
ds S
A fr
om G
FS s
cope
(c)
——
——
2- 5
——
2- 5
Exc
lusi
on o
f tax
effe
ct a
ccou
ntin
g tra
nsac
tions
from
GFS
(d)
17
19
- 17
- 19
——
——
——
Net
GFS
gro
ss d
own
of in
tere
st re
venu
e an
d ex
pens
es o
n de
posi
ts
and
borr
owin
gs(e
) 3
——
—- 3
——
——
—G
FS N
ET O
PER
ATIN
G B
ALAN
CE
-1 0
71- 9
48- 1
57 2
91 3
69 5
11—
—- 8
60- 1
463(
b)R
econ
cilia
tion
to G
FS N
et L
endi
ng/(b
orro
win
g)N
et L
endi
ng/(B
orro
win
g)-1
747
- 607
10
575
457
278
- 244
- 693
-1 5
25- 4
47C
on
verg
en
ce d
iffe
ren
ces
Rel
atin
g to
net
ope
ratin
g ba
lanc
e 1
5- 3
89- 2
21- 2
92- 4
0- 2
5 2
44 6
96- 2
- 10
Rel
atin
g to
net
acq
usiti
on/(d
ispo
sal)
on n
on-fi
nanc
ial a
sset
s fro
m
trans
actio
ns—
——
——
——
——
—G
FS N
ET L
END
ING
/(BO
RR
OW
ING
)-1
733
- 995
- 211
282
416
253
— 3
-1 5
27- 4
573(
c)R
econ
cilia
tion
to G
FS T
otal
Cha
nge
in N
et W
orth
Com
preh
ensi
ve R
esul
t — to
tal c
hang
e in
net
wor
th b
efor
e tra
nsac
tions
with
ow
ners
in th
eir c
apac
ity a
s ow
ners
309
1 25
5 1
95- 8
0 9
35 4
74-1
130
519
309
2 16
9C
on
verg
en
ce d
iffe
ren
ces
Rel
atin
g to
net
ope
ratin
g ba
lanc
e 1
5- 3
89- 2
21- 2
92- 4
0- 2
5 2
44 6
96- 2
- 10
Rela
tin
g t
o o
the
r e
co
no
mic
flo
ws
Net
gai
n/(lo
ss) o
n eq
uity
inve
stm
ents
in o
ther
sec
tor e
ntiti
es
mea
sure
d at
pro
porti
onal
sha
re o
f the
car
ryin
g am
ount
of n
et
asse
ts/(l
iabi
litie
s)(f)
72
344
——
——
- 72
- 344
——
Exc
lusi
on o
f tax
effe
ct a
ccou
ntin
g tra
nsac
tions
from
GFS
- 105
40
105
- 40
——
——
——
Exc
lusi
on o
f Fun
ds S
A fr
om G
FS s
cope
——
——
- 2 5
——
- 2 5
Tran
sact
ions
with
ow
ners
as
owne
rs—
914
37
- 976
— 9
- 37
53
——
Oth
er—
—- 1
2—
- 1—
——
- 13
—G
FS T
OTA
L C
HAN
GE
IN N
ET W
OR
TH 2
912
164
104
-1 3
88 8
90 4
64- 9
95 9
24 2
912
164
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
3. R
eco
nci
liati
on
of
Key
Fis
cal A
gg
reg
ates
to
GF
S A
gg
reg
ates
($m
illio
n)
Gen
eral
G
over
nmen
t P
ublic
Non
Fi
nanc
ial
Cor
pora
tions
Pub
lic F
inan
cial
C
orpo
ratio
ns
Con
solid
ated
El
imin
atio
nsC
onso
lidat
ed
Who
le o
f G
over
nmen
t
2013–14 Consolidated Financial Report 33
Notes to the Consolidated Financial Report
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
3(d)
Rec
onci
liatio
n to
GFS
Net
Wor
thN
et W
orth
39 4
3739
129
19 4
3019
402
734
- 160
-20
164
-19
242
39 4
3739
129
Co
nverg
en
ce d
iffe
ren
ces
Net
gai
n/(lo
ss) o
n eq
uity
inve
stm
ents
in o
ther
sec
tor e
ntiti
es
mea
sure
d at
pro
porti
onal
sha
re o
f the
car
ryin
g am
ount
of n
et
1 65
21
580
——
——
-1 6
52-1
580
——
Exc
lusi
on o
f ele
ctric
ity le
ase
liabi
lity
from
GFS
(b)
70
75
- 28
- 28
——
——
42
47
Exc
lusi
on o
f tax
effe
ct a
ccou
ntin
g tra
nsac
tions
from
GFS
-1 6
83-1
600
1 68
31
600
——
——
——
Net
GFS
gro
ss d
own
of in
tere
st re
venu
e an
d ex
pens
es o
n de
posi
ts
and
borr
owin
gs(e
) 3
——
—- 3
——
——
—O
ther
1
75 1
80—
6—
1—
— 1
75 1
88G
FS N
ET W
OR
TH39
654
39 3
6321
085
20 9
80 7
31- 1
59-2
1 81
6-2
0 82
139
654
39 3
63
3(e)
Rec
onci
liatio
n to
GFS
Cas
h Su
rplu
s/(D
efic
it)C
ash
Sur
plus
/Def
icit
-1 8
08-1
194
- 212
- 156
143
72
80
- 35
-1 7
97-1
313
Co
nverg
en
ce d
iffe
ren
ces
Acq
usiti
ons
unde
r fin
ance
leas
es—
——
——
——
——
—O
ther
1
0 2
9 2
3 4
4—
— 1
6 3
5G
FS C
ASH
SU
RPL
US/
(DEF
ICIT
)-1
797
-1 1
66- 2
10- 1
53 1
46 7
6 8
0- 3
5-1
781
-1 2
77
(a)
(b)
(c)
(d)
(e) (f)
In th
e ab
sebc
e of
a m
arke
t val
ue fo
r PN
FC/P
FC's
, the
val
ue o
f net
ass
ets
is a
pplie
d as
a s
urro
gate
for t
he g
ener
al g
over
nmen
t's e
quity
inve
stm
ent i
n ot
her s
ecto
rs.
GFS
net
ass
ets
do n
ot e
qual
AA
SB
10
49 n
et a
sset
s be
caus
e G
FS b
alan
ce s
heet
s ex
clud
e ce
rtain
item
s su
ch a
s de
ferre
d ta
xes
and
allo
wan
ces
for d
oubt
ful d
ebts
. Th
is re
sults
in d
iffer
ence
s be
twee
n th
e G
FS a
nd th
e A
AS
B 1
049
valu
es
for t
he g
ener
al g
over
nmen
t's e
quity
inve
stm
ent i
n ot
her s
ecto
rs.
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
GFS
reco
gnis
es d
ivid
ends
to o
wne
rs b
y th
e P
NFC
and
the
PFC
sec
tors
as
a G
FC e
xpen
se, w
here
as u
nder
AA
SB
104
9 th
ey a
re tr
eate
d as
dis
tribu
tions
to o
wne
rs a
nd th
eref
ore,
a d
irect
redu
ctio
n of
ac
cum
ulat
ed fu
nds.
Thi
s di
ffere
nce
does
not
flow
thro
ugh
to th
e w
hole
of g
over
nmen
t as
divi
dend
s ar
e el
imin
ated
on
cons
olita
tion.
Tran
sact
ions
reco
gnis
ed b
y th
e go
vern
men
t in
resp
ect o
f 200
yea
r lea
ses
of e
lect
ricity
ass
ets
are
reco
rded
und
er th
e th
e G
FS fr
amew
ork
in th
e ye
ar th
e as
set w
as le
ased
rath
er th
an a
mor
tised
ove
r th
e te
rm o
f the
leas
e. F
urth
erm
ore,
onc
e-of
f div
iden
ds to
talli
ng $
408
mill
ion
paid
by
Ele
ctric
ity L
esso
r Cor
pora
tions
as
a co
nseq
uenc
e of
a c
hang
e to
AA
SB
17
Leas
es a
re e
xclu
ded
from
the
prio
r yea
r G
FS n
et o
pera
ting
bala
nce,
hav
ing
been
pre
viou
sly
reco
gnis
ed in
GFS
bal
ance
s.Fu
nds
SA
is e
xclu
ded
from
the
scop
e of
GFS
repo
rting
, as
the
fund
s ar
e de
emed
not
to b
e co
ntro
lled
by th
e go
vern
men
t und
er th
e A
BS
rule
s.A
AS
B 1
049
adop
ts ta
x ef
fect
acc
ount
ing
whe
reby
tim
ing
diffe
renc
es b
etw
een
acco
untin
g pr
ofit
and
tax
prof
it ar
e de
ferre
d as
futu
re in
com
e ta
x be
nefit
ass
ets
or p
rovi
sion
s fo
r def
erre
d ta
x lia
bilit
ies.
G
FS d
oes
not r
ecog
nise
def
erre
d ta
x. A
s th
e st
ate'
s P
NFC
's re
valu
e th
eir i
nfra
stru
ctur
e, th
is c
an c
reat
e la
rge
prov
isio
ns fo
r def
erre
d ta
x lia
bilit
ies
and
resu
lt in
sig
nific
ant d
iffer
ence
s be
twee
n th
e G
FS
and
the
AA
SB
104
9 se
ctor
agg
rega
tes.
Thi
s co
nver
genc
e di
ffere
nce
also
flow
s th
roug
h to
the
GG
S, a
s th
e G
GS
is th
e co
unte
rpar
ty to
the
tax
effe
ct a
ccou
ntin
g en
tries
reco
gnis
ed b
y th
e P
NFC
/PFC
en
titie
s. H
owev
er th
is d
iffer
ence
doe
s no
t flo
w th
roug
h to
the
tota
l sta
te s
ecto
r as
inco
me
tax
equi
vale
nts
are
elim
inat
ed o
n co
nsol
idat
ion.
GFS
reco
gnis
es a
gro
ss d
own
of d
epos
its, b
orro
win
gs, i
nter
est r
even
ues
and
expe
nses
. The
net
var
ianc
e re
late
s to
a d
iffer
ence
bet
wee
n in
tere
st ra
tes
asso
ciat
ed w
ith in
tere
st re
venu
es a
nd in
tere
st
expe
nes.
Rec
on
cilia
tio
n o
f K
ey F
isca
l Ag
gre
gat
es t
o G
FS
Ag
gre
gat
es (
con
tin
ued
)
Gen
eral
G
over
nmen
t P
ublic
Non
Fi
nanc
ial
Cor
pora
tions
Pub
lic F
inan
cial
C
orpo
ratio
n C
onso
lidat
ed
Elim
inat
ions
Con
solid
ated
W
hole
of
Gov
ernm
ent
34 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
1 074 1 068 1 089 1 080Taxes on property
Stamp duties 886 838 886 838Land tax 346 347 566 562Emergency services levy 104 103 104 103Natural resources management levy 12 11 12 11River Murray levy 25 26 25 26
Total taxes on property 1 372 1 325 1 591 1 540
Taxes on provision of goods and servicesGambling 385 316 388 422Stamp duties on insurance 431 425 435 429
Total taxes on the provision of goods and services 816 741 823 851
Taxes on the use of goods and performance of activitiesMotor vehicle registration 532 512 534 514Other taxes on motor vehicles 33 31 33 31
Total taxes on the use of goods and performance of activities 565 543 567 545 42 36 45 38
3 868 3 712 4 115 4 055
4 652 4 492 4 652 4 492 410 402 410 402
1 502 1 477 1 502 1 477 830 855 830 855
Total current grants from the Commonwealth Government 7 393 7 225 7 393 7 225 588 584 694 591
7 980 7 810 8 087 7 816
43 177 43 177 104 119 104 119
11 11 11 11 1 — 6 5
Total capital grants from the Commonwealth Government 158 307 163 313 5 2 5 2
164 310 169 3158 144 8 119 8 255 8 131
Specific purpose grants for on-passingOther capital grants
Other contributions and grantsTotal capital grant revenueTotal grant revenue
Note: Totals may not add due to rounding.
Specific purpose grants for on-passing
Other contributions and grantsTotal current grant revenue
Capital grant revenueNational partnership grantsSpecific purpose grants
Note: Totals may not add due to rounding.
5. Grant revenue
Current grant revenueGeneral purpose grantsNational partnership grantsSpecific purpose grants
Whole of Government
General Government
4. Taxation revenues
Taxes on employers' payroll and labour force
Other taxation revenueTotal taxation revenues
2013–14 Consolidated Financial Report 35
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
Gambling products (Lotteries Commission) 358 462 358 —Forestry products (Forestry SA) 56 54 — —Land sales 64 87 — —Other goods 46 41 25 27
524 645 384 27
Water related rates and charges (SA Water) 1 119 1 198 — —Health services 384 359 384 359House rentals (South Australian Housing Trust) 309 302 — —Education services (incl. TAFE Colleges) 1 27 1 27Metro Ticket public transport sales 81 75 81 75Rental from investment properties 63 79 4 13Other services 663 611 613 531
2 621 2 651 1 084 1 005
Workers compensation levies 680 685 — —Compulsory Third Party Premiums 508 578 — —Drivers licences 45 63 45 63Other regulatory goods 493 426 661 577
1 725 1 753 706 640
4 870 5 049 2 173 1 673
93 74 4 5
504 619 — — 188 183 107 134
55 20 9 10 747 821 117 144
47 46 241 697— 1 140 138
47 47 381 835
in accounting policy during 2010-11, as disclosed in the 2010-11 Consolidated Financial Report .
DividendsIncome tax equivalentsTotal dividends and income tax equivalents income
Note : Totals may not add due to rounding.
Prior year general government sector result includes dividends of $408 million relating to the non-cash settlement of dividends receivable from the various electricity lessor corporations, arising from a change
Interest earnings: SA Government Financing AuthorityInterest earnings: other agenciesOther investment revenueTotal interest income
Note: Totals may not add due to rounding.
8. Dividends and income tax equivalents
Total charges for fees/ levies
Total charges for goods and services
Cost of goods sold forms part of expenses for supplies and services in the Statement of comprehensive income.
Cost of sales/charges in relation to goods were as follows:
Note: Totals may not add due to rounding.
7. Interest income
6. Charges for goods and services
Goods
Total charges for goods
Services
Total charges for services
Fees/ levies
36 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
291 190 291 190 108 46 79 15 116 102 116 102 300 762 255 545 815 1 100 741 852
6 273 6 204 6 075 5 998 752 686 735 669 154 129 146 121
23 33 23 32 182 81 175 81
13 12 10 10 34 45 38 54
7 432 7 190 7 203 6 966
419 412 323 314 241 240 184 175
300 272 8 7 236 220 236 220
9 9 9 91 205 1 152 760 725
16 14 16 14 2 2 2 2
61 48 34 22 79 64 52 38
1 284 1 216 812 762
163 161 160 155 29 42 19 34
632 730 571 658 305 275 281 248 427 407 246 236
— — 145 1353 086 2 995 2 506 2 2554 642 4 609 3 927 3 722
Intra-government supplies and servicesOther use of goods and servicesTotal use of goods and services
Note: Totals may not add due to rounding.
12. Use of goods and services
Rental expense on operating leasesConsultancy expensesContract service expensesComputing and communication expensesRepairs and maintenance expenses
Buildings and improvements under finance leasePlant, equipment and vehicles under finance leaseIntangible assetsTotal amortisation Total depreciation and amortisation
Note: Totals may not add due to rounding.
Infrastructure - water, sewerage and drainage - road network, rail and bus tracksOther depreciationTotal depreciation
Amortisation
Note: Totals may not add due to rounding.
11. Depreciation and amortisation
DepreciationBuildingsPlant, equipment and vehicles
Long service leaveRetention leaveTVSP paymentsBoard feesOther employee related expensesTotal employee expenses
Total other revenues
Note: Totals may not add due to rounding.
10. Employee expenses
Salaries and wagesAnnual leave
9. Other revenues
RoyaltiesResources received free of chargeFines and penaltiesOther revenues
2013–14 Consolidated Financial Report 37
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
1 013 1 113 336 348 38 40 27 29
4 5 7 91 055 1 159 370 386
907 975 802 902 9 8 6 7
433 404 607 563— — 301 423
939 891 939 891 12 38 12 38
2 300 2 315 2 667 2 824
296 274 — —
257 279 257 — 131 129 — — 139 375 — —
38 39 38 39 39 40 28 26 39 30 39 31
463 313 325 5051 402 1 478 686 601
- 29 - 18 - 28 - 18- 67 - 2 - 66 - 2- 21 3 - 21 2- 41 - 26 - 12 - 2
- 114 - 368 4 10- 271 - 411 - 124 - 10
- 3 - 15 — - 13- 20 - 7 - 14 - 3
- 115 - 43 - 93 - 8- 138 - 65 - 108 - 24
Amortisation of non produced assetsDoubtful debtsWrite-down of non-financial assetsTotal other economic flows
Note: Totals may not add due to rounding.
Revaluation of other provisionsTotal other net actuarial gains/(losses)
Note : Totals may not add due to rounding.
17. Other economic flows
Note: Totals may not add due to rounding.
16. Other net actuarial gains / (losses)
Revaluation of annual leave liabilityRevaluation of long service leave liabilityRevaluation of workers compensation liabilityRevaluation of insurance claims provision
Self insurance claimsRemuneration of judiciary and members of ParliamentBad debtsAssets donatedOther expensesTotal other expenses
Note: Totals may not add due to rounding.
15. Other operating expenses
Income/capital and redemption related workers compensation paymentsGambling prizes/dividendsMedical related workers compensation payments
Capital grantsSubsidiesIntra government transfersOther current transfer paymentsOther capital transfer paymentsTotal grant expenses
Finance charges on finance leasesOther finance cost expensesTotal interest expenses
Note: Totals may not add due to rounding.
14. Grant expenses
Recurrent grants
13. Interest expenses
Interest on borrowings
38 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
1 614 1 292 3 808 4 093 60 39 62 40
1 674 1 331 3 870 4 133
784 772 477 435 245 38 — — 279 298 — —
7 6 7 3 64 85 51 71— — 1 740 1 692
49 69 63 91 52 58 72 79
1 480 1 326 2 410 2 372- 72 - 59 - 49 - 39
1 408 1 267 2 362 2 333
1 315 1 170 638 655 93 97 1 723 1 678
1 408 1 267 2 362 2 333
8 9 8 1192 604 2 595 58 57
- 23 - 20 - 3 —2 589 2 584 63 176
8 365 5 063 — —1 456 1 295 — —2 020 1 724 247 226
11 841 8 082 247 226
4 106 3 829 110 1027 735 4 253 137 124
11 841 8 082 247 226
Total investments, loans and placements
CurrentNon currentTotal receivables
Note: Totals may not add due to rounding.
Total advances paidNote: Totals may not add due to rounding.
21. Investments, loans and placements
Marketable debt securitiesNon-marketable debt securitiesOther investments
Total receivables
Note: Totals may not add due to rounding.
20. Loan advances
Treasurer's loansLoan advancesProvision for loan advances
Other taxes collectableOther receivables
Less provision for doubtful debtsTotal receivables
CurrentNon current
Charges for goods and servicesDerivatives receivable — SAFA FX swapsDerivatives receivable — SAFA interest rate swapsAccrued investment incomeGST receivableTax equivalent receivable
Cash and cash equivalents (a)
Australian dollar term depositsTotal cash and deposits
(a) The general government sector includes the Treasurer's deposits with SAFA of $2.766 billion (2013: $3.020 billion)Note: Totals may not add due to rounding.
19. Receivables
18. Cash and deposits
2013–14 Consolidated Financial Report 39
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
9 677 11 884 21 278 299 6 538 11 11
17 976 18 422 32 37
804 793 804 793 6 8 — —
810 801 804 793
Carrying amount at beginning of period 793 790 793 790
11 2 11 2Carrying amount at end of period 804 793 804 793
The MDBA assets are held in two separate reporting entities: the River Murray Operations (RMO) and the Living Murray Initiative (LMI). The RMO's primary assets include physical infrastructure, the LMI's primary assets include intangibles/water licenses. The share in the individually controlled assets was transferred at transition in the original proportions of the share of the entity held by the individual jurisdictions as follows: New South Wales 26.67%; South Australia 26.67%; Victoria 26.67%; the Commonwealth Government 20%.
For the year ended 30 June 2014, South Australia recognised an increase in its joint interest in MDBA assets of $11.0 million (increase of $2.450 million in 2012–13), bringing the state’s total recognition in the MDBA assets to $803.835 million ($792.835 million at 30 June 2013).
The information below summarises the Government of South Australia’s investment in the MDBA:
Share of increment/(decrement) on revaluation of property, plant and equipment
Note: Totals may not add due to rounding.
Other joint venturesTotal interests in joint ventures
Note: Totals may not add due to rounding.
Murray-Darling Basin Authority
During the year ended 30 June 2009, the agreements for the management of the assets and resources (the water) within the Murray-Darling Basin Commission (MDBC) were restructured. The transition date to the new arrangements was 14 December 2008, i.e. the date from which the Murray-Darling Basin Authority (MDBA) was established, replacing the MDBC.
Following the restructure, under the revised arrangements, the venturers no longer have a joint interest in net assets, but instead, they have a joint interest specifically in the infrastructure assets and water rights (as opposed to an interest in an entity controlling/holding the assets).
Equity in listed entitiesEquity in unlisted entitiesTotal investments - other
Note: Totals may not add due to rounding.
23. Interests in joint ventures
Murray Darling Basin Authority
22. Investments — other
40 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
Other joint ventures
Carrying amount at beginning of period 8 8 — —Capital contributions received — — — —Share of profit after income tax 4 8 — —Distributions/repayments - 5 - 8 — —Carrying amount at end of period 6 8 — —
70 80 — — 25 24 19 19
6 16 2 1 452 388 — —
44 43 44 43 597 552 64 64
The above inventories were held as follows:Held for consumption by government controlled entities 35 33 27 26Held for distribution at nominal cost 32 31 32 31Held for other than distribution at nominal cost 530 488 5 6
597 552 64 64
216 255 64 64 381 297 — — 597 552 64 64
6 6 6 5- 5 - 4 - 5 - 4 1 2 1 1
3 332 3 329 2 921 2 860-1 755 -1 716 -1 603 -1 5391 577 1 612 1 317 1 321
1 110 2 355 926 2 2452 688 3 968 2 244 3 566
Plant, equipment and vehicles at fair valueAccumulated depreciation
Plant, equipment and infrastructure under constructionTotal machinery and equipment
Note: Totals may not add due to rounding.
Total inventories
Note: Totals may not add due to rounding.
25. Machinery and equipment
Plant, equipment and vehicles under finance lease at costAccumulated amortisation
Other inventoriesTotal inventories
Total inventories
CurrentNon current
Note: Totals may not add due to rounding.
24. Inventories
Work in progressRaw materials and storesFinished goodsLand held for resale
The following table provides a summary of South Australia’s investment in other joint ventures:
2013–14 Consolidated Financial Report 41
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
Buildings18 507 17 317 13 795 12 523-5 823 -5 350 -5 616 -5 15212 684 11 967 8 179 7 372
454 462 454 462- 78 - 77 - 78 - 77 377 384 377 384
519 1 057 373 932
689 712 12 1614 269 14 121 8 941 8 705
Infrastructure22 143 21 068 550 293-8 651 -7 987 - 315 - 13313 492 13 081 235 160
26 210 23 908 26 207 23 905-6 744 -6 310 -6 742 -6 30919 467 17 598 19 465 17 596
251 251 251 251- 31 - 25 - 31 - 25 220 225 220 225
33 179 30 904 19 921 17 982
47 449 45 025 28 861 26 687
1 136 1 130 1 130 1 116- 3 - 2 - 3 - 2
1 133 1 128 1 127 1 114
35 72 — — 2 2 2 2
37 74 2 2
Note: Totals may not add due to rounding.
Total heritage assets
Note: Totals may not add due to rounding.
28. Biological assets
Standing timber (commercial forests)Other plants and livestockTotal biological assets
Total infrastructure
Total buildings and structures
Note: Totals may not add due to rounding.
27. Heritage assets
Heritage assets at fair valueAccumulated amortisation
Road network, bus and rail tracks at fair valueAccumulated depreciation
Harbour and port facilitiesAccumulated depreciation
Buildings under construction
Investment properties — buildingsTotal buildings and improvements
Water, sewerage and drainage assets at fair valueAccumulated amortisation
26. Buildings and structures
Buildings at fair valueAccumulated amortisation
Buildings under finance leaseAccumulated depreciation
42 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Standing timber (commercial forests)
2014 2013 2014 2013$m $m $m $m
776 724 406 377- 338 - 281 - 205 - 177 438 442 201 201
87 94 59 57 351 349 142 144 438 442 201 201
Produced 7 6 — 1
15 — 5 — 4 — 4 —
27 6 10 1Non-produced
145 140 128 108
172 146 138 109
69 80 43 56 5 5 5 5
74 86 48 61
PrepaymentsOther non-financial assetsTotal other non-financial assets
Note: Totals may not add due to rounding.
Land
Total non-financial assets classified as held for sale
Note: Totals may not add due to rounding.
31. Other non-financial assets
Total produced and non-produced intangible assets
Note: Totals may not add due to rounding.
30. Non-financial assets classified as held for sale or distribution
Machinery and equipmentBuildings and structuresBiological assets — standing timber
Intangible assetsAccumulated amortisationTotal intangible assets
Produced/non-produced breakdown:ProducedNon-produced
Biological Assets (Standing timber) are valued under the Net Present Value (NPV) income approach. This is a change from the methodology used for the period ending 30 June 2013 which was the net market approach. This policy is in accordance with the requirements of AASB 141 Agriculture and all amounts are calculated in pre-tax dollars.
This new income or NPV approach is considered more appropriate for the valuation of standing timber and was the result of a review by an independent expert and is consistent with industry best practice for standing timber valuation. Forestry SA has assessed the highest and best use for the standing timber as the current use which is the sale of saw log and the associated lower value products that are produced as a by-product to this process.
Further details of the valuation methodology are disclosed in Forestry SA's financial statements for the year ended 30 June 2014.
Whole of Government
General Government
29. Intangible assets
2013–14 Consolidated Financial Report 43
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
9 541 9 629 3 546 3 5892 040 1 930 2 040 1 930
361 425 360 348 99 107 10 6
12 042 12 091 5 956 5 873
201 183 356 392 201 183 356 392
17 696 15 688 — — 307 332 241 247
2 3 10 645 9 10918 006 16 022 10 885 9 355
not later than one year 8 090 5 271 2 781 2 674later than one year but not longer than five years 4 262 7 191 32 29later than five years 5 653 3 560 8 072 6 652
18 006 16 022 10 885 9 355
477 457 476 432 535 647 455 580
8 8 2 1 246 34 — —
46 44 — — 57 36 46 33
1 369 1 225 978 1 046
1 268 1 148 820 905 101 77 158 142
1 369 1 225 978 1 046
Note: Totals may not add due to rounding.
Derivatives payable — SAFA interest rate swapOther payablesTotal payables
CurrentNon currentTotal payables
Note: Totals may not add due to rounding.
35. Payables
CreditorsAccrualsGST payableDerivatives payable — SAFA FX swap
Debt securitiesLease liability (refer Note 45)Loan liabilityTotal borrowing
These liabilities are due for repayment as follows:
Total borrowing
Note: Totals may not add due to rounding.
33. Deposits held
Deposits at callTotal deposits held
Note: Totals may not add due to rounding.
34. Borrowing
32. Land
Site land at fair valueLand under roadsNational parks and other 'land only' holdings at fair valueInvestment properties — landTotal land
Whole of Government
General Government
44 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
167 234 166 232 575 544 558 527
1 706 1 684 1 654 1 627 41 32 41 32 52 53 34 40
2 540 2 547 2 452 2 457
998 1 020 965 9911 542 1 527 1 487 1 4662 540 2 547 2 452 2 457Total employee benefits
Note: Totals may not add due to rounding.
Long service leaveRetention leaveOther employee benefitsTotal employee benefits
CurrentNon current
Whole of Government
General Government
36. Employee benefits
Accrued wages and salariesAnnual leave
2013–14 Consolidated Financial Report 45
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
10 877 11 085 10 877 11 08510 877 11 085 10 877 11 085
SA Public Sector Defined Benefit Superannuation Schemes
• SA Ambulance Service Scheme — consists of a defined benefit scheme, closed to new members from 1 July 2008.
These superannuation plans are not controlled entities of the Government of South Australia. Notwithstanding, the government recognises a liability to these defined benefit plans in accordance with AASB 119 Employee Benefits . The liability represents the estimated present value of the defined benefit obligations for these plans as at reporting date, less the fair value of plan assets.
A separate annual financial report is prepared for each of the above defined benefit plans, in accordance with AAS 25 Financial Reporting by Superannuation Plans.
The government and its controlled entities contribute, for their employees, to a number of defined benefit and defined contribution superannuation plans. The government administers the following defined benefit schemes:
• State Scheme — consists of a defined benefit pension scheme closed to new members from 31 May 1986 and a defined benefit lump sum scheme closed to new members from 4 May 1994
• Police Superannuation Scheme — a defined benefit pension scheme closed to new members from 1 June 1990
• Parliamentary Superannuation Scheme — consists of a defined benefit pension scheme closed to new members from 18 March 2006
• Judges’ Pension Scheme — a defined benefit non-contributory pension scheme
• Governors’ Pension Scheme — a defined benefit pension scheme for former Governors
This note provides information about the state’s defined benefits superannuation schemes and contains information on:
• the various superannuation schemes
• funding status of plans (including actual return on plan assets and impact of assumptions on the movement in 2013–14 liabilities)
• reconciliations of the present value of the defined benefit obligation and the fair value of defined
• major economic assumptions
• target asset allocation (by asset class).
Whole of Government
General Government
37. Unfunded superannuation liabilities
Unfunded superannuation liabilitiesTotal unfunded superannuation liabilities
Note: Totals may not add due to rounding.
46 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Funding status of defined benefit plans
Note : Totals may not add due to rounding.(a) These schemes are administered by Super SA.(b) Schemes administered by the Metropolitan Fire Service and the Lotteries Commission of South Australia.
Vested benefits represent an immediate ‘resignation benefit’, measuring amounts that would be paid out if the scheme was wound up and employee’s benefits were paid based on calculations at that point in time.
Accrued benefits assume employment benefits and conditions calculated as a ‘going concern’ and are measured as the present value of estimated future payments to employees arising from membership of the plan up to the reporting date.
As at 30 June 2014, the estimated present value of defined benefit obligations to employees was calculated using a discount rate of 4.1 per cent (4.3 per cent at 30 June 2013), equal to the market yield on the Commonwealth Government’s long term bond rate at 30 June 2014 (30 June 2013).
The lower discount rate applied as at 30 June 2014 (4.1 per cent) compared with 2012−13 (4.3 per cent) resulted in an increase ($425 million) in the estimated present value of defined benefit obligations. The excess of accrued benefits over the fair value of a defined benefit plan’s assets has been recognised as a liability in the statement of financial position.
Any liability in respect of defined contribution plans has been measured as the amount of the government’s contribution that, under the terms of the plan, has accrued or is payable to the plan at reporting date.
Accounting standard AASB 119 Employee benefits requires an entity to make various disclosures about defined benefit plans. As permitted by the standard, the following disclosures regarding the state's defined benefit plans are made on a total of all plans basis.
Calculations, including that of the government’s liability (i.e. deficit) to the plans, are made on the basis that employment terms continue through as a ‘going concern’ ― accrued benefits only.
Details of the funding status of defined benefit plans as at reporting date, as determined by the DTF or by trustees of the various plans, are set in the table below. All defined benefit plans are either wholly or partly funded.
Defined benefit plans
2014 2013 2014 2013 2014 2013 2014 2013$m $m $m $m $m $m $m $m
Govt of SA administered schemes (a)
State scheme 13 480 13 158 13 524 13 343 4 898 4 545 8 626 8 798Police scheme 3 325 3 067 3 333 3 141 1 277 1 090 2 056 2 051Parliamentary super scheme 297 290 273 269 206 188 67 81Judges' pension scheme 191 176 309 294 210 187 98 107Governors' pension scheme 1 1 1 1 1 1 — —SA Ambulance scheme 186 166 220 208 197 176 22 32
Total Govt of SA administered schemes
17 479 16 858 17 660 17 256 6 789 6 187 10 869 11 069
Other schemes (b) 316 281 316 281 309 265 7 16Member funded benefits - 666 - 628 - 666 - 628 - 666 - 628 — —Total 17 129 16 511 17 310 16 909 6 433 5 824 10 877 11 085
Fair value SA Govt liability Vested Accrued benefits benefits plans΄ assets (deficit) to plans
2013–14 Consolidated Financial Report 47
Notes to the Consolidated Financial Report
2014 2014$m $m
Reconciliation of the present value of the defined benefit obligation
Accrued liability 30 June 2013 16 909 16 909 141 141 695 695
15 15 33 33
- 827 - 827- 19 - 19 14 14
425 425
10 10
- 106 - 106 19 19
Accrued liability 30 June 2014 17 310 17 310
Reconciliation of the fair value of the defined benefit plan assets
Assets 30 June 2013 5 824 5 824 396 396- 25 - 25 135 135
15 15 426 426
- 827 - 827
472 472
18 18Assets 30 June 2014 6 433 6 433
Major economic assumptions
2014 20134.1% pa 4.3% pa7.0% pa 7.0% pa4.0% pa 4.0% pa
n.a n.a2.5% pa 2.5% paLong term CPI increases
The government has applied the following major assumptions in assessing the defined benefit superannuation liabilities as at balance date.
Discount rate (gross of tax)Expected return on plan assetsRate of salary increasesMedical cost trend rates
Past service contributionsBenefits paidHigher returns on investments (14.9 percent in 2013-14 instead of 7.0 percent)Other
Note: Totals may not add due to rounding. There are no reimbursement rights recognised as assets
Adjustment to align with AASB 119 reports
Note: Totals may not add due to rounding.
Expected return on plan assetsDifference between actual and expected experienceContributions by the employerContributions by the plan participants
Benefits paidExcess of expected benefits over actualNew assumptions for 2013 triennial reviewImpact of change in discount rate from 4.3 per cent to 4.1 per centHigher returns on investments (14.9 percent in 2013-14 instead of 7.0 percent)Difference between actual and expected experience
Whole of Government
General Government
Current service costInterest costContributions by plan recipientsOther
48 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Rate of return on plan assets
Fund assets
Asset class 2014 2013% %
23.9 25.0 27.4 27.2 14.2 14.9
8.6 8.5 14.0 13.3
7.6 7.6 1.6 1.7 0.5 0.82.3 1.0
100 100
Expected employer contributions
Cumulative actuarial gains and losses
2014 2013 2012 2011 2010$m $m $m $m $m
-5 934 -8 248 -3 819 -4 222 -3 732 254 2 314 -4 429 403 - 490
-5 680 -5 934 -8 248 -3 819 -4 222
Historical information
2014 2013 2012 2011 2010$m $m $m $m $m
17 310 16 909 18 700 14 310 14 2586 433 5 824 5 177 5 215 4 780
10 877 11 085 13 523 9 095 9 478Deficit in Plan
Note: Totals may not add due to rounding.
Cumulative (loss)/gain at 1 JulyRecognised during the yearCumulative (loss)/gain at 30 JuneNote : Totals may not add due to rounding.
Present value of defined benefit obligationFair value of Plan assets
Short Term Fixed InterestCashTotal
Note: Totals may not add due to rounding.
Included within the state’s fair value of plan assets are $94.4 million of inflation linked securities that are invested with the state.
The estimated employer contributions expected to be paid to the defined benefit plans during the financial year beginning 1 July 2014 are $132.9 million.
International equitiesPropertyDiversified Strategies GrowthDiversified Strategies IncomeInflation linked securitiesLong Term Fixed Interest
The expected return on assets assumption is determined by weighting the expected long-term return for each asset class by the target allocation of assets in each class and allowing for the correlations of the investment return between asset classes.
The returns used for each asset class are net of investment fees. The actual return on plan assets was$850.2 million in 2013–14.
The table below shows for each major category of plan assets, the percentage that each major category constitutes of the fair value of the total plan assets.
Percentage invested
Australian equities
2013–14 Consolidated Financial Report 49
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
20 742 17 867 — —20 742 17 867 — —
Workers compensationWorkCover Corporation provisions 3 848 3 725 — —
432 398 425 391Total workers compensation provisions 4 280 4 124 425 391Insurance claims
2 083 2 330 — —
295 321 — —
Other agencies insurance claims 99 98 93 92Total insurance claims 2 477 2 749 93 92
36 16 9 86 793 6 888 527 491
1 335 1 390 120 1095 457 5 498 407 3826 793 6 888 527 491
WorkCover provisions
MAC provisions
SAICORP SAGIRM
provisions
Other provisions
Total
$m $m $m $m $m3 725 2 330 321 512 6 888
596 - 119 - 2 n.a 475- 474 - 107 - 41 n.a - 621
0 - 21 16 55 503 848 2 083 295 567 6 793
Carrying amount - opening balanceAdditional (- reduction in) provisions recognisedPaymentsOther movementsCarrying amount – closing balance
Note: Totals may not add due to rounding.
Total provisions (other than employee
CurrentNon currentTotal provisions (other than employee benefits)
Note: Totals may not add due to rounding.
Movements in provisions for whole of government during the 2013-14 year
39. Provisions (other than employee benefits)
Other agencies workers compensation provisions
Motor Accident Commission (MAC) motor vehicle compensation insurance claim provisionsSouth Australian Government (SAICORP) insurance and risk management fund (SAGIRM) provisions
Other provisions
Whole of Government
General Government
38. Superannuation fund deposit liabilities
Liability of Funds SA to all superannuation plansTotal superannuation fund deposit liabilities
Note: Totals may not add due to rounding.
50 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
Whole of Government
General Government
306 345 81 93Other liabilities 656 706 590 568
962 1 052 671 661
721 804 459 445 241 247 212 216 962 1 052 671 661
Note: Totals may not add due to rounding.
40. Other liabilities
Unearned revenue
Total other liabilities
CurrentNon currentTotal other liabilities
2013–14 Consolidated Financial Report 51
Notes to the Consolidated Financial Report
Reconciliation of Non-financial assets
Machinery and
equipment
Buildings and
structures
Heritage assets
Biological assets
Intangible assets
Land Total
$m $m $m $m $m $m $m
3 968 45 025 1 128 74 442 12 091 62 728 879 615 7 — 48 4 1 552
— — — - 8 — — - 8 49 467 — — 3 23 543
- 53 - 136 — - 1 - 9 - 122 - 320-1 854 1 887 - 1 — 21 - 59 - 5
19 558 — - 29 — 108 657
- 79 - 12 — — - 4 - 2 - 99
- 243 - 979 - 1 — - 64 — -1 287— 25 — 1 — — 26
2 688 47 449 1 133 37 438 12 042 63 786
3 214 43 954 1 111 84 444 12 321 61 1281 178 886 3 — 52 4 2 123
— — — 4 — — 4 73 807 — — 13 10 902
- 77 - 294 — - 1 - 11 - 70 - 453- 175 202 11 6 7 3 54
5 408 3 - 16 — - 177 223
- 4 - 7 — — — — - 11
- 242 - 926 — — - 63 — -1 231- 2 - 6 — - 4 — — - 13
3 968 45 025 1 128 74 442 12 091 62 728
41. Non-financial assets — reconciliation and fair value hierarchy
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the year are as follows:
Whole of Government 2013
Capitalised subsequent expenditure
Whole of Government 2014
Disposals
Balance at 1 July 2013AdditionsRecognition of (physical) growth changes
TransfersRevaluation movementsRecoverable amount write-downs or impairmant lossesDepreciation and amortisation expenseOther movementsCarrying amount 30 June 2014
Balance at 1 July 2012AdditionsRecognition of (physical) growth changesCapitalised subsequent expenditure
TransfersDisposals
Note: Totals may not add due to rounding.
Revaluation movements
Other movements
Recoverable amount write-downs or impairmant lossesDepreciation and amortisation expense
Carrying amount 30 June 2013
52 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Machinery and
equipment
Buildings and
structures
Heritage assets
Biological assets
Intangible assets
Land Total
$m $m $m $m $m $m $m
3 566 26 687 1 114 2 201 5 873 37 443 725 496 7 — 31 3 1 262
— — — — — — — 49 174 — — 3 23 249- 6 - 7 — - 1 — - 37 - 52
-1 849 1 845 7 — 6 - 46 - 37 1 244 — — — 140 385
- 57 - 9 — — - 4 — - 70
- 186 - 591 - 1 — - 35 — - 813— 23 — 1 — — 23
2 244 28 861 1 127 2 201 5 956 38 391
2 865 25 619 1 106 3 185 5 887 35 6651 009 490 3 — 35 2 1 539
— — — — — — — 72 358 — — 13 9 453
- 17 - 139 — - 1 - 1 - 3 - 162- 181 120 3 — 3 - 41 - 97
— 792 2 — — 18 812
- 4 2 — — — — - 2
- 177 - 564 — — - 34 — - 775— 8 — — — — 8
3 566 26 687 1 114 2 201 5 873 37 443
Fair Value Hierrarchy of Non-financial assets
Other movementsCarrying amount 30 June 2014
TransfersRevaluation movements
Recognition of (physical) growth changes
General government 2014Balance at 1 July 2013Additions
Reconciliation of Non-financial assets (continued)
Carrying amount 30 June 2013
Recognition of (physical) growth changesCapitalised subsequent expenditure
Depreciation and amortisation expenseOther movements
Recoverable amount write-downs or impairmant losses
DisposalsTransfersRevaluation movements
General government 2013Balance at 1 July 2012Additions
Recoverable amount write-downs or impairmant lossesDepreciation and amortisation expense
Capitalised subsequent expenditureDisposals
The fair value of non-financial assets must be estimated for recognition and measurement or for disclosure purposes. Non-financial assets measured at fair value are categorised into hierarchy based on the level of inputs used in measurement.
The following tables presents the consolidated non-financial assets measured at fair value in the statement of financial position in accordance with the fair value hierarchy for both the whole of government and the general government sector.
Note: Totals may not add due to rounding.
2013–14 Consolidated Financial Report 53
Notes to the Consolidated Financial Report
The government had no valuations categorised into Level 1.
Whole of Government 2014 Fair value Level 2 Level 3$m $m $m
Recurring fair value measurementsMachinery and equipment(a) 1 578 284 1 294
Buildings and structures(a) 46 930 5 206 41 724Heritage assets 1 133 42 1 091Biological assets 37 2 35Land 12 042 9 378 2 664Total recurring fair value measurements 61 719 14 912 46 808
Non-recurring fair value measurementsNon-financial assets held for sale 172 171 1Total non-recurring fair value measurements 172 171 1
Total 61 891 15 082 46 809
General Government 2014 Fair value Level 2 Level 3$m $m $m
Recurring fair value measurementsMachinery and equipment(a) 1 318 101 1 217
Buildings and structures(a) 28 488 314 28 174Heritage assets 1 127 36 1 091Biological assets 2 2 —Land 5 956 3 341 2 615Total recurring fair value measurements 36 892 3 794 33 098
Non-recurring fair value measurementsNon-financial assets held for sale 138 137 1Total non-recurring fair value measurements 138 137 1
Total 37 030 3 931 33 099
(a) Machinery and equipment and Buildings and structures exclude all works under construction.
There were no transfers of assets between level 1 and 2 fair value hierarchy levels in 2014. All transfers into and out of fair value hierarchy levels are recognised at the end of the reporting period.
Valuation techniques and inputs
Although observable inputs are used in determining fair value, and are subjective, the overall valuation would not be materially affected by reasonable possible alternative assumptions. There were no changes in valuation techniques during 2014.
Note: Totals may not add due to rounding.
Comparative information for non-financial assets has not been provided as permitted by the transitional provisions of the new standard.
54 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Whole of Government Machinery and
equipment
Buildings and
structures
Heritage assets
Biological assets
Land NFA held for sale
Total
$m $m $m $m $m $m $m
1 279 37 603 1 078 72 2 673 1 42 706Acqusitions 195 368 13 — 26 — 602Capitalised subsequent expenditure 3 186 — — — — 189
- 1 - 13 — — — 1 - 14Revaluation increment/decrement — 633 — - 37 - 38 — 558Depreciation - 177 - 867 — — — — -1 045
— 8 — — — — 8Transfer in(out) of level 3 4 3 849 — — 13 — 3 866Disposals - 8 - 43 — — - 10 - 1 - 61
1 294 41 724 1 091 35 2 664 1 46 809
General Government Machinery and
equipment
Buildings and
structures
Heritage assets
Biological assets
Land NFA held for sale
Total
$m $m $m $m $m $m $m
1194 24362 1078 — 2557 1 29 192Acqusitions 180 318 13 — 25 — 536Capitalised subsequent expenditure 3 46 — — — — 49
- 1 - 13 — — — 1 - 13Revaluation increment/decrement 4 260 — — 29 — 294Depreciation - 163 - 552 — — — — - 715
— 8 — — — — 8Transfer in(out) of level 3 7 3 764 — — 13 — 3 784Disposals - 7 - 17 — — - 10 - 1 - 35
1 217 28 174 1 091 — 2 615 1 33 099Closing balance at the end of the period
Note: Totals may not add due to rounding.
Opening Balance at the beginning of the period
Aqusitions/(disposal) through administrative restructure
Aqusitions/(disposal) through administrative restructure
Opening Balance at the beginning of the period
The following tables provide a reconciliation of fair value measurements using significant unobservable inputs (level 3).
Classified as held for sale and/or disposal
Classified as held for sale and/or disposal
Closing balance at the end of the period
2013–14 Consolidated Financial Report 55
Notes to the Consolidated Financial Report
cash and cash equivalents
receivables (excluding statutory receivables)
loan advances
investments (in equities and managed investment schemes)
payables (excluding statutory payables)
borrowings
finance lease payables
debt securities
deposits
derivatives
Whole of Government 2014 2013$m $m
Financial assets1 614 1 2923 360 3 360
93 6730 020 26 543
288 269Total financial assets 35 374 31 531
Financial liabilities38 931 33 815
At amortised cost (b) 1 412 1 505Total financial liabilities 40 343 35 320
Available-for-sale investments
Fair value through profit and loss (at initial recognition)
Note: Totals may not add due to rounding.(a) Excludes deposits. Deposits are classified above at fair value through profit and loss (at initial recognition).(b) Excludes statutory receivables and payables, and derivative receivables and payables. Derivative receivables and payables are classified above at fair value through profit and loss (at initial recognition).
Financial Instrument Categories
The carrying amounts of financial assets and financial liabilities by category are:
Cash and cash equivalents (a)
Receivables and loans at amortised costHeld-to-maturity investmentsAt fair value through profit and loss (at initial recognition)
42. Financial instrument disclosures
The principal financial instruments of the South Australian public sector comprise:
These financial instruments arise directly from the state’s operations or are required to finance the state’s operations. The state does not enter into or trade financial instruments for speculative purposes.
As part of its normal operations, the state is exposed to a number of financial risks including market risk (i.e. interest rate risk, foreign currency risk and equity price risk), credit risk and liquidity risk through transactions involving its financial instruments.
The state’s overall risk management objectives, policies and strategies focus on minimising financial risk exposures and seek to mitigate potential adverse effects.
The South Australian Government Financing Authority (SAFA) is the state’s central borrowing authority and investing authority. SAFA holds a level of investments for liquidity management purposes, and as the state’s central investing authority it administers the management of the majority of the state’s investments, along with acting as the state’s central borrowing authority.
56 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Level 1 — derived from quoted prices in active markets for identical assets or liabilities
Level 2 — derived from inputs other than quoted prices that are observable directly or indirectly
Whole of Government Level 1 Level 2 Level 3 Total Fair Value
$m $m $m $m2014Financial assets
684 — — 684Investments 12 516 13 122 3 835 29 473Loans — 2 040 — 2 040Derivatives receivable — 523 — 523Total financial assets 13 201 15 685 3 835 32 721
Financial liabilities10 006 9 699 3 455 23 16014 412 442 529 15 382
Derivatives payable — 292 — 29224 417 10 433 3 984 38 834
Whole of Government Level 1 Level 2 Level 3 Total Fair Value
$m $m $m $m2013Financial assets
783 — — 783Investments 10 834 11 874 3 502 26 210Loans — 2 024 — 2 024Derivatives receivable — 336 — 336Total financial assets 11 617 14 235 3 502 29 353
Financial liabilities8 911 8 095 3 121 20 128
12 854 160 521 13 535Derivatives payable — 78 — 78
21 765 8 332 3 642 33 740
Deposits & short term borrowingsBonds, notes and debentures
Total financial liabilitiesNote: Totals may not add due to rounding.
The following table presents the consolidated financial assets and liabilities measured at fair value in the statement of financial position in accordance with the fair value hierarchy for these agencies only.
Cash and cash equivalents
Deposits & short term borrowingsBonds, notes and debentures
Total financial liabilities
Cash and cash equivalents
The amortised cost of financial instruments recognised in the statement of financial position approximates the fair value, because of the short-term nature of many of the financial instruments. These financial instruments include cash, deposits, receivables and payables (other than those relating to derivatives).
The carrying amounts of all other financial assets and liabilities equates to their net fair value.
AASB 7 Financial Instruments: Disclosures requires financial instruments measured at fair value to be classified in accordance with a fair value hierarchy. The fair value hierarchy has the following three levels:
Level 3 — derived from valuation techniques that include inputs for the asset/liability not based
on observable market data
Funds SA, South Australian Government Financing Authority (SAFA), Homestart, Motor Accident Commission and WorkCover Corporation represent the majority of all financial instruments held at fair value in the whole of government.
Valuation of financial instruments
2013–14 Consolidated Financial Report 57
Notes to the Consolidated Financial Report
2014 $m
2013 $m
- 141 - 557 7 470
Sales/issues - 309 - 296 300 243
Transfers into level 3 - 5 —- 149 - 141
Credit risk
Whole of Government Rating ($m)
2014 AAA AA- A A-1+ OtherNot
rated(a) Total
Asset classLoans/investments 4 016 1 422 1 075 1 561 3 836 252 12 162Interest rate swaps — 420 79 — 52 10 560Currency swaps — — — — — — —FX contracts — 1 — — — 1 2Total 4 016 1 843 1 154 1 561 3 887 263 12 724
2013 AAA AA- A+ A-1+ Other Not rated Total
Asset classLoans/investments 3 654 1 736 1 035 1 382 3 524 179 11 510Interest rate swaps — 415 93 12 66 12 597Currency swaps — — — -23 -30 — -53FX contracts — 2 — -66 -330 1 -393Total 3 654 2 153 1 129 1 305 3 230 191 11 662
(a) ‘Not rated’ refers to amounts not classified under particular ratings.
Credit risk is the risk of financial loss and associated costs resulting from the failure of a counterparty to meet its financial obligations as and when they fall due. The state’s largest holder of derivatives and investments is SAFA. SAFA incurs credit risk through undertaking its core functions of fundraising, debt management, liquidity management and the government’s reinsurance program.
To minimise the potential for credit loss, SAFA ensures transactions and risks are diversified between counterparties and limited to dealing with highly rated banking and governmental institutions worldwide.
SAFA measures risk for physical securities at face value and the credit risk of derivative transactions using a mark-to-market methodology that includes an additional factor to cover potential future adverse market movements. Concentration of credit risk by credit rating is detailed below.
Note: Totals may not add due to rounding.
Purchases/settlements
Total gain/loss in income statement
Closing balance 30 June 2014
Note: Totals may not add due to rounding.
Risk management strategies in relation to the state’s financial assets are summarised below. Additional risk management information can be found in individual agencies’ general purpose financial reports.
Level 3 movement schedule (net)
Opening balance 1 July 2013
58 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Whole of Government <30 days
30-60 days
>60 days
Total
2014 $m $m $m $mImpaired Loans 14 9 28 51Receivables 2 2 32 35
16 11 60 87Not impairedLoans 82 14 8 104Receivables 97 21 73 192Total 180 35 81 296
Whole of Government <30 days
30-60 days
>60 days
Total
2013 $m $m $m $mImpaired Loans 13 6 26 45Receivables 1 1 19 20
14 7 44 65Not impairedLoans 85 15 26 126Receivables 98 29 94 221Total 183 44 120 347
Note: Totals may not add due to rounding.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in realising assets or otherwise raising funds to meet commitments associated with financial instruments as they fall due. In order to manage liquidity risk, agencies such as SAFA have in place liquidity management guidelines, which require them to hold base levels of liquidity comprising highly marketable financial assets.
Liquid assets include cash, promissory notes, Commonwealth bonds, floating rate notes and negotiable discount securities. Adherence to guidelines enables the government to be in a position to meet the forecast cash demands and any unanticipated funding requirements of the South Australian public sector.
SAFA has chosen an approach to minimise the medium-term refinancing risks, which involves diversification of physical borrowings across the maturity spectrum, diversification of funding sources and the holding of liquid assets to assist in the management of refinancing and liquidity risk.
These strategies result in SAFA facing manageable funding demands from financial markets in any given period. This approach assists the maintenance of an orderly market place for SAFA’s securities when refinancing maturing debt obligations.
In accordance with AASB 7 Financial Instruments: Disclosures , details of ‘Past due but not impaired’ and ‘Impaired’ receivables and loans are included in the following tables.
Financial Instruments past due or impaired
2013–14 Consolidated Financial Report 59
Notes to the Consolidated Financial Report
Whole of Government 1 year or less
1 to 5 years
Over 5 years
Total carrying amount
2014 $m $m $m $mFinancial assets
1 614 — — 1 614Receivables 661 109 1 771Investments 5 696 514 23 667 29 877Loans 2 334 254 — 2 589Derivatives receivable 523 — — 523Total financial assets 10 828 878 23 668 35 374
Financial liabilities201 — 20 742 20 943
Payables 1 058 31 — 1 089Borrowings — 2 — 2Finance leases 36 116 169 321Debt securities 4 728 6 293 6 675 17 696Derivatives payable 292 — — 292
6 315 6 442 27 586 40 343
Whole of Government 1 year or less
1 to 5 years
Over 5 years
Total carrying amount
2013 $m $m $m $mFinancial assets
1 292 — — 1 292Receivables 676 100 — 776Investments 4 803 1 176 20 563 26 542Loans 1 863 146 575 2 584Derivatives receivable 336 — — 336Total financial assets 8 970 1 422 21 138 31 531
Financial liabilities 580 — 17 469 18 049
Payables 1 124 30 1 1 155Borrowings 1 2 — 3Finance leases 20 83 244 347Debt securities 5 258 7 134 3 295 15 687Derivatives payable 78 — — 78
7 061 7 249 21 009 35 320
interest rate risk
price risk
foreign currency risk
Total financial liabilities
Note: Totals may not add due to rounding.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The state’s exposure to market risk is primarily through:
The tables below summarise the maturity profile of the state’s financial assets and liabilities.
Cash and cash equivalents
Deposits
Total financial liabilities
Cash and cash equivalents
Deposits
60 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
exchange rates against the Australian dollar would be 10 per cent interest rates to which the state is exposed would be 1 per cent, and market prices (other than those arising from interest rate risk or currency risk) would be 1 per cent.
Foreign currency risk arises when the value of financial assets and liabilities fluctuate due to changes in foreign exchange rates. It is government policy that where possible, exposures should be hedged with the exception of certain financial corporations. Funds SA has a policy to maintain a passive currency hedge over 50 per cent of the developed markets component of international equities assets. This has the capacity to reduce overall portfolio volatility associated with movements in the value of foreign currencies in the absence of these instruments. The net un-hedged market value of Fund SA’s total portfolio as at 30 June 2014 was $3.156 billion ($2.829 billion).
SAFA utilises foreign exchange swaps, foreign exchange and forward exchange contracts to manage foreign exchange risk associated with foreign currency borrowings. The value of foreign exchange swaps at 30 June 2014 was $245.1 million ($33.8 million).
SAFA has entered into forward foreign exchange contracts of $20.9 million ($22.7 million) to hedge exposures arising from the foreign exchange hedging service provided to public sector clients. These transactions have nil exposure. No other material exposures existed in other public entities as at30 June 2014.
(d) Sensitivity analysis
Taking into account future expectations, economic forecasts and government’s knowledge and experience of financial markets, it is believed that a reasonably possible increase or decrease in:
Limits on measures of interest rate risk for SAFA’s portfolios are approved by the Under Treasurer and Treasurer, while limits on interest rate risk for portfolios managed on behalf of clients are set in consultation with the clients. Interest rate risk is managed by portfolios rather than from a total operations perspective. The current policy benchmark duration for the Treasurer’s managed portfolio is between 1 and 1.5 years.
Funds SA accepts deposits from the various superannuation schemes to invest on behalf of these schemes. Funds SA aims to earn the highest possible return on its investments for an appropriate level of risk.
The government has an indirect interest rate exposure in respect of its superannuation liabilities to various superannuation schemes (see note 37). The risk is primarily due to possible adverse movements in the assets and liabilities of the superannuation schemes as a result of fluctuations in financial markets.
(b) Price risk
Price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market pricing (other than those arising from interest rate risk or currency risk). SAFA manages the sensitivity of its treasury portfolios for changes in market risk variables by calculating Value at Risk (VaR) daily and monitoring the calculated VaR against pre-determined exposure limits. VaR is the calculation of the potential loss due to rate movements for any one day.
(c) Foreign currency risk
(a) Interest rate risk
Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The government is exposed to interest rate risk primarily through financial assets and liabilities, modified through derivative financial instruments such as interest rate futures contracts, interest rate swaps, interest rate options and forward rate agreements.
2013–14 Consolidated Financial Report 61
Notes to the Consolidated Financial Report
A su
mm
ary
sens
itivi
ty a
naly
sis o
f the
mat
eria
l ris
ks to
whi
ch th
e st
ate
is e
xpos
ed is
pro
vide
d be
low
.
Who
le o
f Gov
ernm
ent
2014
Car
ryin
g
amou
nt +
10%
prof
it +
10%
equi
ty -1
0%
pr
ofit
-10%
equi
ty +
1%
pr
ofit
+1%
equi
ty -1
%
prof
it -1
%
equi
ty +
1%
pr
ofit
+1%
equi
ty -1
%
prof
it -1
%
equi
ty$m
$m$m
$m$m
$m$m
$m$m
$m$m
$m$m
Fina
ncia
l ass
ets
Cas
h an
d ca
sh e
quiv
alen
ts1
614
——
——
1818
-18
-18
——
—-
Rec
eiva
bles
and
loan
s at
am
ortis
d co
st3
360
3333
——
3333
2727
3331
2730
Fina
ncia
l ass
ets
at fa
ir va
lue
thro
ugh
prof
it an
d lo
ss
Loa
ns
Inve
stm
ents
29 8
7720
020
0-2
00-2
00-1
1-1
120
2032
17-2
3-8
D
eriv
ativ
e re
ceiv
able
s 5
23—
——
—5
5-5
-5-5
—5
—To
tal f
inan
cial
ass
ets
35 3
7423
323
3-2
00-2
0046
4624
2460
489
22
Fina
ncia
l lia
bilit
ies
Fina
ncia
l lia
bilit
ies
at a
mor
tised
cos
t
Ban
k ov
erdr
afts
—
——
——
——
——
——
—
P
ayab
les
1 08
9—
——
—7
77
77
77
7
B
orro
win
gs2
——
——
——
——
——
——
F
inan
ce le
ases
321
——
——
——
——
——
——
Fina
ncia
l lia
bilit
ies
at fa
ir va
lue
thro
ugh
prof
it an
d lo
ss
Dep
osits
20 9
4323
523
5-2
35-2
351
1-1
-11
—-1
—
B
orro
win
gs
Deb
t sec
uriti
es17
696
——
——
177
177
-177
-177
177
—-1
77—
D
eriv
ativ
e pa
yabl
es29
2—
——
—3
3-3
-33
—-3
—To
tal f
inan
cial
liab
ilitie
s40
343
235
235
-235
-235
188
188
-174
-174
188
7-1
747
A
mou
nts
abov
e in
clud
e at
-cal
l and
sho
rt te
rm a
s w
ell a
s lia
bilit
ies
to s
uper
anuu
atio
n pl
ans.
Fore
ign
exch
ange
risk
Inte
rest
rate
risk
Pric
e ris
k
Not
e: T
otal
s m
ay n
ot a
dd d
ue to
roun
ding
.
62 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
1 674 1 331 3 870 4 133
1 674 1 331 3 870 4 133
- 392 1 900 - 963 1 662
1 284 1 216 812 762- 69 - 16 - 40 15 12 — 11 —- 7 42 2 37
- 19 - 198 1 2-3 991 -2 888 1 - 21
87 45 71 9 15 - 3 11 —
3 2 3 2 279 - 114 — —
3 101 2 716 — - 1— — — - 408
696 802 872 397
- 158 26 - 1 - 7
- 209 -2 438 - 209 -2 438
- 6 42 - 4 50 18 - 185 - 49 - 141
- 354 -2 555 - 262 -2 535
- 50 147 - 354 - 476
Increase/(decrease) in employee benefits — unfunded superannuationIncrease in employee benefits — otherChange in other assets and liabilitiesMovements in assets and liabilities
Net cash provided by operating activities
Note: Totals may not add due to rounding.
Net loss/(gain) on foreign currency exchange differencesOther revaluation increments/decrementsNon-cash dividendsNon-cash items in net surplus
Movements in assets and liabilities(Increase)/decrease in inventories
(Gain)/loss on sale of property, plant and equipmentNet loss/gain on sale of investmentsNet loss/gain on revaluation of investmentsLoss on write-off of assetsLoss on write-down of assetsLoss on revaluation of financial assets and liabilities
Net result
Non-cash items in net surplusDepreciation and amortisationAssets received/donated free of chargeLoss on revaluation of property, plant and equipment
Cash and depsoits disclosed in the statement of financialposition (also refer note 18)Balances per cash flow statement
Note: Totals may not add due to rounding.
(b) Non-cash financing and investing activities
There were no material non-cash financing and investing activities entered into during the reporting period.
(c) Reconciliation of net cash used in operating activities to net result
(a) Reconciliation of cash
For the purpose of the cash flow statement, the government considers cash to include cash on hand and in banks, term deposits and investments in money market instruments.
A reconciliation of cash and deposits at the end of the reporting period is shown below:
Whole of Government
General Government
43. Cash Flows
2013–14 Consolidated Financial Report 63
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
(a) Aged commitments — capital
624 1 310 498 1 182184 346 132 290
13 14 — —Total aged commitments — capital 821 1 670 631 1 472
1 308 1 225 1 017 9282 149 2 157 1 494 1 4631 314 1 671 246 4074 770 5 053 2 757 2 7985 591 6 724 3 388 4 270
2 019 3 139 2 019 3 1391 943 2 216 — —
409 383 409 383 205 203 205 203 132 94 — — 105 28 105 28
97 87 97 87 680 574 552 430
5 591 6 724 3 388 4 270
Department of Planning, Transport and Infrastructure
Total aged commitments
Note: Totals may not add due to rounding.
Discussion of major aged commitments
Capital commitments mainly relate to aggregate capital expenditure on construction projects relating to road networks, the purchase of new public transport vehicles and the construction and update of government buildings and facilities. The department’s other commitments include major service and supply contracts for road maintenance, ferry operations and bus and rail transport services; and the outsourced facilities management contract which it manages on behalf of the government. These costs are reimbursable from other agencies.
South Australian Water Corporation
Expenditure commitments include amounts pursuant to contracts to operate, manage and maintain the Adelaide metropolitan water and wastewater networks and treatment plants; and operate, maintain and provide energy for the Adelaide Desalination Project. Expenditure commitments are based on minimum contracted amounts payable at balance date and include an estimate for escalation of charges.
Department of Education and Child DevelopmentSouth Australian Housing TrustDepartment for Health and AgeingAttorney General's DepartmentOther Agencies
Total aged commitments — operatingTotal aged commitments
Aged commitments related to the following agencies:Department of Planning, Transport and InfrastructureSouth Australian Water CorporationIncorporated Health Services
later than five years
(b) Aged commitments — operating
At the reporting date, the government had entered into contracts for the following operating expenditures. These obligations have not been recognised as liabilities due for payment:
no later than one yearlater than one year but not later than 5 yearslater than 5 years
Whole of Government
General Government
44. Aged commitments
At the reporting date, the government had entered into contracts for the following capital expenditures. These obligations have not been recognised as liabilities due for payment:
no later than one yearlater than one year but not later than five years
64 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
45. Finance lease liabilities
48 49 37 37188 190 148 145524 584 493 533760 823 679 716
-453 - 491 -438 - 469307 332 241 247
174 175 174 17594 100 — —36 39 36 39
3 17 31 33307 332 241 247
In July 2009 South Australia entered into a 30 year agreement under the Partnerships SA policy for the financing, design, construction and maintenance of six schools that opened during the 2010–11 financial year. At the completion of construction for each school a commitment with regard to these assets was recognised as a finance lease with related finance lease assets.
South Australian Water Corporation
Future finance lease payments are amounts contracted with private sector providers to construct, own and operate water and wastewater treatment facilities.
Incorporated Health ServicesOther AgenciesTotal finance lease liabilities
Note: Totals may not add due to rounding.
Discussion of finance lease obligations
Department of Education and Child Development
Minimum lease paymentsdeduct future finance chargesTotal finance lease liabilities (refer Note 34)
The major finance lease obligations related to the followingagencies:Department of Education and Child DevelopmentSouth Australian Water Corporation
Whole of Government
General Government
At the reporting date, the government had the following obligations under finance leases (the total obligation net of future finance lease charges has been recognised as a liability in the balance sheet):
no later than one yearlater than one year but not later than 5 yearslater than 5 years
2013–14 Consolidated Financial Report 65
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
46. Operating lease liabilities
241 223 249 263632 582 635 606570 452 543 451
1 443 1 257 1 427 1 321
831 900 839 909303 122 303 135168 157 168 172
34 10 37 1033 — 33 —74 68 46 95
1 443 1 257 1 427 1 321
Operating lease payment obligations relate to non-cancellable property leases with rental payable in advance. Contingent rental provisions within the lease agreements require minimum lease payments to be increased periodically and generally in line with Consumer Price Index movements and market conditions. Options exist to renew property leases at the end of the term of the leases. Operating lease commitments include commitments for Public Private Partnership leases related to South Australia Police occupancies only.
Note: Totals may not add due to rounding.
Discussion of finance lease obligations
Department of Planning, Transport and Infrastructure
The department’s operating lease commitments are for land, motor vehicles, office equipment, other plant and equipment and commercial and residential accommodation. Commercial accommodation leases are non-cancellable with terms ranging from one to 15 years. Rental is payable in advance with no contingent rental provisions. Residential accommodation leases are cancellable with varying terms and have no option to renew.
Motor vehicle leases are cancellable, rentals are paid monthly in arrears and no contingent rentals provisions exist within the agreement. Motor vehicle lease terms may be for three years (or 60 000kms, whichever comes first) or five years (or 100 000kms, whichever comes first). Photocopier leases are non-cancellable with terms of four years, with rentals paid monthly.
South Australian Police
South Australian PoliceIncorporated Health ServicesFamilies SAShared ServicesOther AgenciesTotal operating lease obligations
not later than one yearlater than one year but not later than 5 yearslater than 5 yearsMinimum lease payments
The major operating lease obligations related to the following agencies:Department of Planning, Transport and Infrastructure
Whole of Government
General Government
At the reporting date, the government had the following obligations under non-cancellable operating leases (these obligations have not been recognised as liabilities):
66 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
•
•
The Treasurer generally explicitly guarantees the liabilities of government businesses under the enabling legislation for each of the entities. The Public Corporations Act 1993 provides that the Treasurer guarantees all liabilities of public corporations established pursuant to that Act.
In accordance with AASB 1049, the value of the net assets of public corporations are recognised on the general government balance sheet under the line ‘Investments in other public entities’. The carrying amount of the liabilities guaranteed by the Treasurer are therefore reflected in general government sector net worth.
(b) Contingent liabilities
A contingent liability is:a possible obligation that arises from past events where and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity, or
a present obligation that arises from past events but is not recognised because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are also classified as either quantifiable or non-quantifiable.
(i) Quantifiable contingent liabilities: generic guarantee of government business' liabilities
47. Contingent assets and liabilities
At the reporting date, the government had the following liabilities, or possible liabilities, that have not been recognised in the statement of financial position because they have been assessed as being not likely to give rise to a future sacrifice of economic benefits or they cannot be measured reliably or the existence of a liability will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the government.
(a) Contingent assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. These can be classified into either quantifiable, where the potential economic benefit is known, or non-quantifiable.
No material quantifiable contingent assets have been reported.
2013–14 Consolidated Financial Report 67
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
679 693 679 693200 200 — —
54 48 — —932 941 679 693291 — 291 —
6 5 6 512 6 5 5
1 241 951 981 703
Over the life of the Power Purchase Agreement and Gas Sale Agreement (Osborne Arrangements) it was estimated that ETSA Corporation would incur losses representing, in general terms, the difference between:
• the contracted purchase price under the Power Purchase Agreement and forecast pool prices in the electricity market, and• the contracted sale price under the Gas Sale Agreement and the wholesale price for gas available in the market to ETSA Corporation to comply with its gas supply commitments.
The total value of loans and liabilities as at 30 June 2014 was $678.5 million ($662.2 million at 30 June 2013).
The LGFA has also issued a financial guarantee on behalf of the Workers Compensation Scheme of the Local Government Association of South Australia in favour of WorkCover Corporation of South Australia. The guarantee is fully secured against depositor funds held, the value of which will not be less than the value of any liability that might be incurred.As at 30 June 2014, the amount of the liability was $30.5 million ($30.5 million at 30 June 2013).
Osborne Cogeneration Pty Ltd
In 1996, the then ETSA Corporation entered into arrangements with Osborne Cogeneration Pty Ltd (OCPL) for the generation of electricity at the Osborne Generation Plant. As part of these arrangements, ETSA Corporation entered into a Power Purchase Agreement and a Gas Sale Agreement with OCPL requiring ETSA Corporation, in general terms, to purchase prescribed amounts of electricity from OCPL and to sell prescribed amounts of gas to OCPL for the respective terms of those agreements.
Other contingent liabilitiesTotal quantifiable contingent liabilities
Note: Totals may not add due to rounding.
Discussion of significant quantifiable contingent liabilities
Treasurer's guarantee of Local Government Financing Authority loans and other liabilities
Pursuant to the Local Government Finance Authority Act 1983 , liabilities incurred or assumed by the Local Government Finance Authority (LGFA) are guaranteed by the Treasurer. These liabilities include bank loans, loans provided by SAFA and other liabilities including deposits or loans from councils and prescribed local government bodies.
Treasurer's guarantee re — LGFA guaranteesGuarantee re — Osborne Cogeneration Pty LtdOther guarantees
Total guaranteesNyrstar indemnityOther indemnities / Legal
Whole of Government
General Government
(ii) Quantifiable contingent liabilities
Guarantees
68 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
As a result, on 8 October 2014, $2.7 billion was received by the general government sector as a return of capital from SA Water. These funds were used to reduce general government debt. In addition, SA Water took on $2.7 billion of debt through the South Australian Financing Authority (SAFA).
There will be no impact on the whole of government position as a result of these transactions.
Nyrstar - Port Pirie Smelter Transformation
The Treasurer has agreed to indemnify the Export Finance and Insurance Corporation, the Commonwealth Government's export finance agency, for a guarantee of up to $291 million to external lenders to the Port Pirie Smelter Transformation project being undertaken by Nyrstar. The indemnity is not expected to be issued before January 2015.
48. Events after balance date
SA Water
In the 2014-15 Budget, the government determined to adjust the level of debt held by SA Water (in the PNFC sector) as the structure of SA Water’s balance sheet was not consistent with that of other government-owned utilities interstate.
The Osborne Arrangements, and the underlying exposures, were subsequently transferred to Flinders Power Pty Ltd (Flinders Power). When NRG Energy Inc purchased the operations of Flinders Power as part of the then government’s program for privatisation of the state’s electricity assets, the Osborne Arrangements (together with the underlying exposures) were transferred to NRG Energy Inc’s subsidiary Flinders Osborne Trading Pty Ltd (FOT).
As part of the privatisation of the operations of Flinders Power (Flinders Operations), the Treasurer provided a guarantee to OCPL in respect of the obligations of FOT under the Osborne Arrangements (Treasurer’s Guarantee). In turn, NRG Energy Inc indemnified the Treasurer if the Treasurer’s Guarantee was called upon by OCPL (NRG Indemnity).
2013–14 Consolidated Financial Report 69
Notes to the Consolidated Financial Report
49. Details of controlled entities
For the 2013–14 financial year, the entities listed below are controlled by the government and their income, expenses, assets, liabilities and equity have been included in the Consolidated Financial Report. Some of these entities control other entities, in which case the consolidated accounts include the entities’ consolidated financial information.
The government’s interest in each of the public non-financial corporations and public financial corporations listed below is 100 per cent.
General Government
Sector
Public Non-Financial Corporations
Sector
Public Financial
Corporations Sector
Adelaide Cemeteries Authority ................................................................. * Adelaide Convention Centre Corporation ................................................. * Adelaide Entertainments Corporation (trading as Adelaide Entertainment Centre) ..............................................
*
Adelaide Festival Centre Trust.................................................................. * Adelaide Festival Corporation................................................................... * Adelaide Film Festival .............................................................................. * Adelaide and Mount Lofty Ranges Natural Resources Management Board ..................................................................................
*
Alinytjara Wilurara Natural Resources Management Board ..................... * Art Gallery Board, The .............................................................................. * Attorney-General’s Department ................................................................ * Auditor-General’s Department .................................................................. * Australian Children’s Performing Arts Company (trading as Windmill Performing Arts) .......................................................
*
Bio Innovation SA ..................................................................................... * Carrick Hill Trust ....................................................................................... * Communities and Social Inclusion, Department for Correctional Services, Department for ...................................................... * Courts Administration Authority ................................................................. * Dairy Authority of South Australia ............................................................. * Defence SA .............................................................................................. * Distribution Lessor Corporation ................................................................ * Education Adelaide ................................................................................... * Education and Child Development, Department for .................................. * Electoral Commission of South Australia .................................................. * Environment, Water and Natural Resources, Department of .................... * Environment Protection Authority ............................................................. * Essential Services Commission of South Australia ................................... * Eyre Peninsula Natural Resources Management Board .......................... * Further Education, Employment, Science and Technology, Department of ...........................................................................................
*
Generation Lessor Corporation ................................................................ * Government Schools ................................................................................ * Health and Ageing, Department for .......................................................... * History Trust of South Australia ................................................................ * HomeStart Finance ................................................................................... * House of Assembly ................................................................................... * Incorporated Hospitals and Health Services ............................................. * Independent Gambling Authority .............................................................. * Joint Parliamentary Services .................................................................... *
70 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
General Government
Sector
Public Non-Financial Corporations
Sector
Public Financial
Corporations Sector
Kangaroo Island Natural Resources Management Board ........................ * Legislative Council .................................................................................... * Libraries Board of South Australia ............................................................ * Lifetime Support Authority ........................................................................ * Lotteries Commission of South Australia (trading as SA Lotteries) ...........................................................................
*
Manufacturing, Innovation, Trade, Resources and Energy, Department for ..........................................................................................
*
Motor Accident Commission ..................................................................... * Museum Board ......................................................................................... * Northern and Yorke Natural Resources Management Board .................... * Outback Communities Authority ............................................................... * Planning, Transport and Infrastructure, Department of ............................. * Playford Capital Pty Ltd ............................................................................ * Premier and Cabinet, Department of the .................................................. * Primary Industries and Regions, Department of ....................................... * Public Trustee ........................................................................................... * SACE Board of South Australia ................................................................ * South Australia Police (also known as South Australian Police Department, SAPOL) .................
*
South Australian Ambulance Service ........................................................ * South Australian Arid Lands Natural Resources Management Board ..................................................................................
*
South Australian Country Arts Trust .......................................................... * South Australian Country Fire Service ...................................................... * South Australian Film Corporation ............................................................ * South Australian Fire and Emergency Services Commission (trading as SAFECOM) .............................................................................
*
South Australian Forestry Corporation (trading as ForestrySA) ................ * South Australian Government Employee Residential Properties .............. * South Australian Government Financing Authority (trading as SAFA) .....................................................................................
*
South Australian Housing Trust ................................................................ * South Australian Local Government Grants Commission ......................... * South Australian Metropolitan Fire Service ............................................... * South Australian Motor Sport Board ......................................................... * South Australian Murray Darling Basin Natural Resources Management Board ..................................................................................
*
South Australian State Emergency Service (trading as SES) ................... * South Australian Tourism Commission ..................................................... * South Australian Water Corporation (trading as SA Water) ...................... * South East Natural Resources Management Board ................................. * South Eastern Water Conservation and Drainage Board ......................... * State Governor’s Establishment ............................................................... * State Opera of South Australia ................................................................. * State Procurement Board ......................................................................... * State Theatre Company of South Australia ............................................... * Superannuation Funds Management Corporation of South Australia (trading as Funds SA) ................................................................
*
TAFE SA ................................................................................................... * Transmission Lessor Corporation ............................................................. *
2013–14 Consolidated Financial Report 71
Notes to the Consolidated Financial Report
General Government
Sector
Public Non-Financial Corporations
Sector
Public Financial
Corporations Sector
Treasury and Finance, Department of ...................................................... * Urban Renewal Authority (trading as Renewal SA) .................................. * Venue Management, Office of .................................................................. * West Beach Trust (trading as Adelaide Shores) ....................................... * WorkCover Corporation of South Australia ............................................... * Zero Waste SA ......................................................................................... * Changes to controlled entities/reporting structures since the previous Consolidated Financial Report:
New Entity: Lifetime Support Authority ............................................................................................. ………………………………………….. *
The Lifetime Support Authority of South Australia is a statutory authority established under the Motor Vehicle Accidents (Lifetime Support Scheme) Act 2013. Change effective 1 July 2013.
Other changes of significance in current year:
Lotteries Commission of South Australia (trading as SA Lotteries) ............................................................................................. *
The Lotteries Commission of South Australia (SA Lotteries) has moved from the public non-financial corporation sector to the general government sector. Change effective 1 July 2013.
Future changes of significance: Department of State Development ............................................................ *
The Department of Manufacturing, Innovation, Trade, Resources and Energy and the Department of Further Education, Employment, Science and Technology will merge to form the new Department of State Development. Change effective 1 July 2014.
72 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2014 2013 2014 2013$m $m $m $m
437 415 446 341— — — —
1 573 1 539 1 557 1 5234 251 4 069 4 251 4 0695 071 5 087 5 071 5 0871 880 1 644 1 267 1 1011 917 1 352 1 094 1 068
770 853 686 390 50 53 49 53
275 221 207 156
58 60 58 60
1 216 1 514 1 017 1 007 242 231 242 231
1 610 1 947 922 1 16419 349 18 985 16 868 16 250
26 495 23 697 3 852 4 322— — — —
1 711 1 633 1 694 1 6085 330 4 980 5 336 5 3383 678 3 632 3 794 3 8432 979 2 608 249 241
27 950 27 819 1 168 1 1513 531 2 890 3 050 2 448
17 24 7 14 220 336 149 150
787 1 016 788 1 018
25 900 25 162 22 430 21 892 304 316 304 318
2 024 1 885 23 363 22 276100 927 95 998 66 184 64 618
Includes administration, supervision, operation and support of military and civil defence affairs, foreign military aid and defence research.
Total assets by Function
Note: Totals may not add due to rounding.
The Government Purpose Classification (GPC) classifies expenses and assets of the public sector in terms of the purposes for which the transactions are made. The major groups reflect the broad objectives of government.
General public services
Include legislative and executive affairs, financial and fiscal affairs, external affairs, foreign economic aid, general research, general economic and social services, general statistical services, and government superannuation benefits.
Defence
Fuel and energyAgriculture, forestry, fishing and huntingMining/mineral resources other than fuels manufacturing; and constructionTransport and communicationsOther economic affairsOther purposes
Public order and safetyEducationHealthSocial security and welfareHousing and community amenitiesRecreation and culture
Other purposesTotal expenses
Total assets by FunctionGeneral Public ServicesDefence
Recreation and cultureFuel and energyAgriculture, forestry, fishing and huntingMining/mineral resources other than fuels manufacturing; and constructionTransport and communicationsOther economic affairs
DefencePublic order and safetyEducationHealthSocial security and welfareHousing and community amenities
Whole of Government
General Government
50. Total expenses and assets by government purpose classification
Total expenses from transactions by FunctionGeneral Public Services
2013–14 Consolidated Financial Report 73
Notes to the Consolidated Financial Report
Includes storage, saleyards, markets, tourism and area promotion, and labour and employment affairs.
Other purposes
Includes public debt transactions, general purpose inter-government transactions and natural disaster relief.
Includes activities relating to prospecting, mining and mineral resources development, manufacturing activities and research into manufacturing methods, materials and industrial management, and activities associated with the building and construction industry.
Transport and communications
Includes road construction, road maintenance, parking, water transport, rail transport, air transport, pipelines, multi-mode urban transit systems and communications.
Other economic affairs
Agriculture, forestry, fishing and hunting
Includes agricultural land management, agricultural water resources management, agricultural support schemes, agricultural research and extension services, forestry, fishing and hunting.
Mining and mineral resources (other than fuels), manufacturing, and construction
Fuel and energy
Includes coal, petroleum, gas, nuclear affairs and electricity.
Recreation and culture
Includes public halls and civic centres, swimming pools and beaches, national parks and wildlife, libraries, creative and performing arts, museums, art galleries, broadcasting and film production.
Includes general hospitals, repatriation hospitals, mental health institutions, nursing homes, special hospitals, hospital benefits, medical clinics and practitioners, dental clinics and practitioners, maternal and infant health, ambulance services, medical benefits, school and other public health services, pharmaceuticals, medical aids and appliances and health research.
Social security and welfare
Includes sickness benefits, benefits to ex-servicemen and their dependants, invalid and other permanent disablement benefits, old age benefits, widows, deserted wives, divorcees and orphan benefits, unemployment benefits, family and child benefits, sole parents benefits, family and child welfare, and aged and handicapped welfare.
Housing and community amenities
Includes housing and community development, water supply, household garbage and other sanitation, sewerage, urban stormwater drainage, protection of the environment and street lighting.
Public order and safety
Includes police and fire protection services, law courts and legal services, prisons and corrective services, and control of domestic animals and livestock.
Education
Includes primary and secondary education, university and other higher education, technical and further education, preschool and special education and transportation of students.
Health
74 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
•
•
•
•
•
•
•
gross up of cash and borrowings representing that under GFS reporting, the Treasurer’s cash deposits with SAFA are set off against the Treasurer’s borrowings with SAFAgross up of lotteries prizes and agents commission against gambling revenues due to the GFS requiring gambling revenue to be presented on a net basis.other reclassifications between lines in all financial statements reflecting changes to the format of the presentation of budget figures to the AASB 1049 basis.
In addition, under the GFS format, the Government of South Australia does not present budgets at a whole of government level and therefore, only the general government sector can be presented for this note.
For an analysis of the original budget to the final budget outcome variations please refer to the Final Budget Outcome (FBO).
51. Budgetary information (General government sector only)
The tables presented within this note provide a comparison of the original budget figures as presented in the 2013–14 Budget Statement to the 2013–14 final outcome figures as presented in accordance with AASB 1049 for the general government sector.
The original budget figures presented in the 2013−14 Budget Statements are presented on the Uniform Presentation Framework basis. The UPF is based on the ABS Government Finance Statistics (GFS) format. However, AASB 1049 requires that the original budget information be disclosed on the same basis, which includes in the same format, for the same scope and with the same content as the accounting basis to facilitate a comparison of actuals against the budget.
Unlike the actuals, the original budget figures have not been subject to an audit process. As the Government of South Australia does not present budgets on the AASB 1049 basis, a restated budget is presented in this note to align with the accounting basis specified by the standard.
The restated budget position for 2013−14 includes the following variations from the published UPF basis:
gross down of transport concession revenue and expenses in the statement of comprehensive income due to the GFS requiring these concessions to be reflected as a expense to households rather than payments internal to governmentreclassifying SAFA repayments to the Commonwealth Government to borrowing in the statement of financial position (recorded as an advance under GFS)reinstating the lease liability in the statement of financial position and to reflect amortisation of lease liability for long term leases of electricity assets. Under GFS, the lease transaction was recognised as a sale in the year the transaction occurredtake up of deferred tax asset in the statement of financial position in GG sector to reflect PNFC and PFC sector entities reporting deferred tax liabilities
2013–14 Consolidated Financial Report 75
Notes to the Consolidated Financial Report
2013-14 2013-14Original budget Actual Variance
Unaudited Audited
4 133 4 115 - 188 275 8 255 - 202 045 2 173 129
112 117 5 309 381 72 658 741 83
15 532 15 782 250
7 020 7 203 182 434 468 34 754 736 - 18 895 812 - 83
3 742 3 927 186 379 370 - 9
2 706 2 667 - 39 533 686 153
16 462 16 868 406- 930 -1 086 - 156
18 - 2 - 19 33 - 3 - 36
151 254 103- 40 105 145
- 114 - 124 - 10- 34 - 108 - 74 14 123 109
- 916 - 963 - 47
41 414 373 235 885 650
— 9 - 6 5 - 36 - 40
281 1 272 977- 636 309 930
3 — - 3 3 — - 3
- 633 309 927
- 930 -1 086 - 156 544 661 118
-1 474 -1 747 - 274
Key fiscal aggregatesNet operating balanceLess net acquisition of non-financial assetsNet lending / borrowingNote: Totals may not add due to rounding.
Total other economic flows — non-owner movements in equityComprehensive result — total change in net worth
Transactions with ownersRestructuresTotal transactions with ownersTotal change in net worth
Net result
Other economic flows — other movements in equityChanges in property, plant and equipment revaluation reserveNet gains on equity investments in other sectorsNet gain/(loss) on financial assets at fair valuePrior period adjustments
Other net actuarial gains/(losses)Other economic flowsTotal other economic flows — included in net result
Net result from transactions — Net operating balance
Other economic flows — included in net resultNet gain/(loss) on sale of non-financial assetsNet gain/(loss) on financial assets or liabilities at fair valueNet actuarial gains/(losses) on superannuation defined benefit plansRevaluations of deferred income tax equivalents
Depreciation and amortisationUse of goods and servicesInterest expensesGrant expensesOther expensesTotal expenses from transactions
Other revenuesTotal revenue from transactions
Expenses from transactionsEmployee expensesSuperannuation interest costOther superannuation expenses
Revenue from transactionsTaxation revenuesGrant revenueCharges for goods and servicesInterest incomeDividends and income tax equivalents
Statement of Comprehensive Income ($ million)
76 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2013-14 2013-14Original budget Actual Variance
Unaudited Audited
4 173 3 870 - 3032 268 2 362 93
366 63 - 303 221 247 26
21 685 20 165 -1 520 41 32 - 9
791 804 1329 544 27 542 -2 002
66 64 - 12 582 2 244 - 338
27 809 28 861 1 0521 108 1 127 19
3 2 - 58 59 1
1 10 9 68 48 - 19
6 227 5 956 - 271 89 142 54 48 128 80
38 058 38 642 584
67 603 66 184 -1 419
294 356 6111 404 10 885 - 518
1 374 978 - 3962 580 2 452 - 128
11 802 10 877 - 925 579 527 - 52 563 671 108
28 597 26 746 -1 850
39 006 39 437 432
-4 134 -1 973 2 161
21 869 21 688 - 181 6 50 44 6 19 13
21 258 19 653 -1 60539 006 39 437 431
Net equity in investments in other sectorsTotal equity (Net worth)
Note: Totals may not add due to rounding.
EQUITYRetained earningsReserves
Asset revaluation reserveOther reservesFinancial assets available for sale reserve
Employee benefitsSuperannuationProvisions (other than employee benefits)Other liabilitiesTotal liabilities
Net assets
Total non-financial assets
Total assets
LIABILITIESDeposits heldBorrowingsPayables
Non-financial assets held for sale or redistributionOther non-financial assets
Non-produced assetsLandIntangiblesNon-financial assets held for sale or redistribution
InventoriesMachinery and equipmentBuildings and structuresHeritage assetsBiological assetsIntangibles
Investments in other public entitiesInvestments — otherInterest in joint in venturesTotal financial assets
Non-financial assetsProduced assets
ASSETSFinancial assetsCash and depositsReceivablesAdvances paidInvestments, loans and placements
Statement of Financial Position ($ million)
2013–14 Consolidated Financial Report 77
Notes to the Consolidated Financial Report
2013-14 2013-14Original budget Actual Variance
Unaudited Audited
4 132 4 184 528 275 8 253 - 221 961 2 066 105
102 102 — 335 385 50 735 805 69
15 541 15 796 254
-8 153 -8 418 - 265-3 804 -4 024 - 220
- 379 - 367 12-2 643 -2 653 - 9
- 506 - 688 - 183-15 485 -16 150 - 665
56 - 354 - 410
414 78 - 336-1 820 -1 532 288
Net cash flows from investments in non-financial assets -1 406 -1 454 - 48
Financial assets (policy purposes) 54 117 63
- 125 - 43 82Net cash flows from investments in financial assets - 71 73 144
Financial assets (liquidity management purposes) 1 5 5
- 13 - 40 - 27Net cash flows from investments in financial assets - 12 - 35 - 23
-1 489 -1 415 74
- 13 75 891 984 1 541 - 444
Cash generated from financing activities 1 971 1 616 - 355
CASH FLOWS FROM FINANCING ACTIVITIESCash inflows (receipts)Deposits receivedBorrowings
Note: Totals may not add due to rounding.
Purchases on non-financial assets
Advances repaidAdvances granted
Sales of investmentsPurchases of investments
Net cash flows from investing activities
Other paymentsCash used in operating activitiesNet cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIESNon-financial assetsSales of non-financial assets
Cash generated from operating activities
Cash outflows (payments)Payments to employeesPurchases of goods and servicesInterest paidGrants paid
Taxes receivedGrants receivedSales of goods and servicesInterest receiptsDividends receivedOther receipts
Statement of Cash Flows ($ million)
CASH FLOWS FROM OPERATING ACTIVITIESCash inflows (receipts)
78 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
2013-14 2013-14Original budget Actual Variance
Unaudited Audited
Cash outflows (payments)— - 99 - 99
- 510 - 12 498 7 — - 7
- 502 - 111 3921 469 1 505 37
36 - 264 - 299
4 137 4 133 - 44 173 3 870 - 303
56 - 354 - 410-1 406 -1 454 - 48-1 350 -1 808 - 458
Note: Totals may not add due to rounding.
Cash and cash equivalents at beginning of the yearCash and cash equivalents at the end of the year
Key fiscal aggregateNet cash flows from operating activitiesNet cash flows from investments in non-financial assetsCash surplus/(deficit)
Deposits paidBorrowingsOther financingCash used in financing activitiesNet cash flows from financing activitiesNet increase/ (decrease) in cash and cash equivalents
Statement of Cash Flows (continued)
2013–14 Consolidated Financial Report 79
Notes to the Consolidated Financial Report
52. Key technical terms used in the financial report
ABS GFS Manual
The Australian Bureau of Statistics (ABS) publication Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005 as updated from time to time.
Capital transfers
Transactions in which ownership of an asset (other than cash and inventories) is transferred from one institutional unit to another, in which cash is transferred to enable the recipient to acquire another asset, or in which the funds realised by the disposal of another asset are transferred, for which no economic benefits of equal value are receivable or payable in return.
Cash surplus/(deficit)
Equals net cash flows from operating activities plus net cash flows from acquisition and disposal of non-financial assets less distributions paid. GFS cash surplus/(deficit) also deducts the value of assets acquired under finance leases and similar arrangements.
Change in net worth
Change in net worth (comprehensive result) is revenue from transactions less expenses from transactions plus other economic flows, and measures the variation in a government’s accumulated assets and liabilities. It excludes any adjustments to the prior period and transactions with owners as owners.
Contingent asset
A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
Contingent liability
A potential financial obligation arising out of a condition, situation, guarantee or indemnity, the ultimate effect of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events.
Convergence difference
Relates to the difference between the amounts recognised in the financial statements compared with the amounts determined for GFS purposes as a result of differences in definition, recognition, measurement, classification and consolidation principles and rules.
Current transfers
The provision of something of value for no specific return or consideration and include grants, subsidies and donations.
Finance lease
Lease agreements that transfer substantially all the risks and benefits relating to ownership of an asset from the lessor (legal owner) to the lessee (party using the asset).
80 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
Financial asset
Includes any asset that is:
(a) cash
(b) an equity instrument of another entity
(c) a contractual right:
(i) to receive cash or another financial asset from another entity, or
(ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity, or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
(i) a non-derivative for which the entity is or may be obliged to receive a variable number of the entity’s own equity instruments, or
(ii) a derivative that will or may be settled other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of the entity’s own equity instruments. For this purpose the entity’s own equity instruments do not include instruments that are themselves contracts for the future receipt or delivery of the entity’s own equity instruments.
General Government Sector (GGS)
The institutional sector comprising all government units and non-profit institutions controlled and mainly financed by government.
Government Finance Statistics (GFS)
Enables policymakers and analysts to study developments in the financial operations, financial position and liquidity situation of the government. More details about the GFS can be found in the Australian Bureau of Statistics (ABS) GFS Manual Australian System of Government Finance Statistics: Concepts, Sources and Methods 2005.
Government Purpose Classification (GPC)
Classifies outlays or expenditure transactions by the purpose served (e.g. health, education).
Key fiscal aggregates
Financial aggregates are important for analysis purposes, including assessing the impact of a government and its sectors on the economy.
National Partnership Payments
Grants received from the Commonwealth Government to support delivery of specified projects, to facilitate reforms or to reward jurisdictions that deliver on national reforms.
Net acquisition/(disposal) of non-financial assets from transactions
Includes purchases (or acquisitions) of non-financial assets less sales (or disposals) of non-financial assets less depreciation plus changes in inventories and other movements in non-financial assets. Purchases and sales (or net acquisitions) of non-financial assets generally include accrued expenses and payables for capital items. Purchases exclude non-produced assets and valuables which are included in other movements in non-financial assets.
2013–14 Consolidated Financial Report 81
Notes to the Consolidated Financial Report
Net actuarial gains
Includes actuarial gains and losses on defined benefit superannuation plans, employee leave entitlements, workers compensation entitlements and various other provisions.
Net cash flows from investments in financial assets (liquidity management purposes)
Equals cash receipts from liquidation or repayment of investments in financial assets for liquidity management purposes less cash payments for such investments. Investment for liquidity management purposes means making funds available to others with no policy intent and with the aim of earning a commercial rate of return.
Net cash flows from investments in financial assets (policy purposes)
Equals cash receipts from the repayment and liquidation of investments in financial assets for policy purposes less cash payments for acquiring financial assets for policy purposes. Acquisition of financial assets for policy purposes is distinguished from investments in financial assets (liquidity management purposes) by the underlying government motivation for acquiring the assets.
Acquisition of financial assets for policy purposes is motivated by government policies such as encouraging the development of certain industries or assisting citizens affected by natural disaster.
Net debt
Net debt measures a government’s net stock of selected gross financial liabilities less financial assets. Net debt equals the sum of deposits held, advances received, loans and other borrowing less the sum of cash and deposits, advances paid and investments, loans and placements.
Net financial liabilities
Total liabilities less financial assets, other than equity in PNFCs and PFCs. This measure is broader than net debt as it includes significant liabilities other than borrowings (e.g. accrued employee liabilities such as superannuation and long service leave entitlements).
Net financial worth
A measure of a government’s net holdings of financial assets. It is calculated from the Uniform Presentation Framework balance sheet as financial assets minus liabilities.
Net financial worth is a broader measure than net debt, in that it incorporates provisions (such as superannuation, but excludes depreciation and doubtful debts) as well as holdings of equity. Net financial worth includes all classes of financial assets and liabilities.
Net lending/(borrowing)
Equals net operating balance minus the net acquisition/(disposal) of non-financial assets. It is also equal to transactions in the net acquisition/(disposal) of financial assets minus the net incurrence of liabilities. It indicates the extent to which financial resources are placed at the disposal of the rest of the economy or the utilisation of financial resources generated by the rest of the economy.
A net lending (or fiscal surplus) balance indicates that the public sector is saving more than enough to finance all its investment spending. A net borrowing (or fiscal deficit) position indicates that the public sector’s level of investment is greater than its level of savings.
Net operating balance
Calculated from the operating statement as income from transactions less expenses from transactions. It is a summary measure of the ongoing sustainability of operations and excludes gains and losses resulting from changes in price levels and other changes in the volume of assets. It is the component of
82 2013–14 Consolidated Financial Report
Notes to the Consolidated Financial Report
the change in net worth that is due to transactions and can be attributed directly to government policies.
Net other economic flows
Equals the net change in the volume or value of assets and liabilities that does not result from transactions.
Net result
Is a measure of financial performance of the operations for the period. It is the net result of items of revenue, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other non-owner movements in equity’.
Net worth
Is an economic measure of wealth and provides a relatively comprehensive picture of a government’s overall financial position. It is calculated as total assets less total liabilities and less shares/contributed capital. For the GGS, net worth is assets less liabilities, since shares and contributed capital do not exist in a GGS context.
Non-financial assets
All assets that are not ‘financial assets’, predominantly land and other fixed assets.
Other revenues
Refers to revenue other than revenue from taxes, sales of goods and services, property income and Commonwealth Grants, etc. It includes revenue from fines other than penalties imposed by tax authorities.
Superannuation expenses
Includes all superannuation expenses from transactions except superannuation interest cost. It generally includes current service cost, which is the increase in entitlements associated with the employment services provided by employees in the current period. Superannuation actuarial gains/losses are excluded as they are considered other economic flows.
Other economic flows
Changes in the volume or value of an asset or liability that do not result from transactions (e.g. revaluations).
Public Financial Corporations (PFC) sector
Is the institutional sector comprising resident government controlled corporations and quasi-corporations mainly engaged in financial intermediation or provision of auxiliary financial services.
Public Non-Financial Corporations (PNFC) sector
Is the institutional sector comprising resident government controlled corporations and quasi-corporations mainly engaged in the production of market goods and/or non-financial services.
Superannuation interest cost
Represents the carrying cost of unfunded superannuation liabilities, net of interest revenue on plan assets of defined benefit schemes.
2013–14 Consolidated Financial Report 83
Notes to the Consolidated Financial Report
Tax Equivalents Regime (TER)
The mechanism to ensure that public corporations incur similar tax liabilities to privately owned organisations. Thus, greater parity exists between the cost structures of government controlled trading entities and the private sector, aiding in the achievement of competitive neutrality.
Transactions
Interactions between two institutional units by mutual agreement or actions within a unit that are analytically useful to treat as transactions.
Uniform Presentation Framework (UPF)
A uniform reporting framework agreed by the Australian Loan Council in 2000, which is a revision of the agreement reached at the 1991 Premiers’ Conference. The UPF was further updated and reissued in April 2008 to incorporate the new accounting standard AASB 1049 Whole of Government and General Government Sector Financial Reporting. The UPF specifies that the Commonwealth, state and territory governments will present a minimum set of budget and financial outcome information on the Government Finance Statistics basis according to an agreed format and specified Loan Council reporting arrangements.
Whole of government financial report
A financial report that is prepared in accordance with Australian Accounting Standards, including AASB 127 Consolidated and Separate Financial Statements, and thereby separately recognises assets, liabilities, income, expenses and cash flows of all entities under the control of the government on a line-by-line basis.
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Notes to the Consolidated Financial Report
2013–14 Consolidated Financial Report 85
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Statement by the Treasurer and Under Treasurer
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Statement by the Treasurer and Under Treasurer
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Statement by the Treasurer and Under Treasurer
2013–14 Consolidated Financial Report 89
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Statement and commentary by the Auditor-General
2013–14 Consolidated Financial Report 91
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Statement and commentary by the Auditor-General
2013–14 Consolidated Financial Report 93
Statement and commentary by the Auditor-General
www.statebudget.sa.gov.au
Department of Treasury and Finance State Administration Centre, 200 Victoria Square, Adelaide, South Australia, 5000
GPO Box 1045, Adelaide, South Australia, 5001 Telephone: +61 (08) 8226 9500
www.treasury.sa.gov.au
www.statebudget.sa.gov.au
Department of Treasury and Finance State Administration Centre, 200 Victoria Square, Adelaide, South Australia, 5000
GPO Box 1045, Adelaide, South Australia, 5001 Telephone: +61 (08) 8226 9500
www.treasury.sa.gov.au