Balance sheet As at 30 June 2016 Notes 2016 2015 $’000 $’000 Financial assets Cash and cash equivalents 1(i), 6 50,524 44,235 Accrued income 7 706 1,155 Receivables 1(j), 8 22,934 21,832 Prepayments 1,147 865 Total financial assets 75,311 68,087 Non-financial assets Property, plant and equipment 1(l), 9 7,570 6,217 Intangible assets 1(l), 10 3,917 4,657 Total non-financial assets 11,487 10,874 Total assets 86,798 78,961 Liabilities Payables 1(n), 11 24,898 21,459 Provisions 1(p), 12 17,600 15,946 Total liabilities 42,498 37,405 Net assets 44,300 41,556 Equity Contributed capital 1(k),13(a) 42,194 42,194 Accumulated surplus/(deficit) 13(b) 2,106 (638) Total equity 44,300 41,556 Contingent liabilities 1(v), 21 Commitments for expenditure 1(u), 19 The balance sheet should be read in conjunction with the accompanying notes.
Note 1. Summary of significant accounting policies (continued) Standard / Interpretation Summary Applicable for annual reporting periods beginning or ending on Impact on public sector entity financial statements AASB 9 Financial Instruments The key changes include the simplified requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred. 1 January 2018 The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss. While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed. AASB 15 Revenue from Contracts with Customers The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer. 1 January 2017 (Exposure Draft 263 – potential deferral to 1 January 2018) The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications. A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods. Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening retained earnings if there are no former performance obligations outstanding.
At fair value (Level 3) At fair value (Level 3) At fair value (Level 3) At fair value (Level 3) At fair value (Level 3) At fair value (Level 2) Information technology Furniture, fixtures and fittings Leasehold Motor vehicles Office machines equipment Cultural assets Total $’000 $’000 $’000 $’000 $’000 $’000 $’000 2016 Carrying amount at start of year 327 189 5,118 405 71 107 6,217 Additions 1,758 6 2,230 248 - - 4,242 Revaluations - - - - - 33 33 Disposals (78) (1) (57) (119) (3) - (258) Depreciation/ amortisation expense (307) (60) (2,163) (113) (21) - Carrying amount at end of year 1,700 134 5,128 421 47 140 7,570 2015 Carrying amount at start of year 271 254 5,391 378 107 107 6,508 Additions 224 - 1,467 193 2 - 1,886 Revaluations - - - - - - - Disposals - - - (65) - - (65) Depreciation/ amortisation expense (168) (65) (1,740) (101) (38) - Carrying amount at end of year 327 189 5,118 405 71 107 6,217 Property, plant and equipment is classified as ‘Public Safety and Environment’ by 'purpose' for which the assets are used, according to one of five 'purpose groups' based upon Government Purpose Classifications (GPC). Note 9. Property, plant and equipment (continued) Description of significant unobservable inputs to level 3 valuations Asset Valuation Technique Significant unobservable inputs Information technology Depreciated replacement cost Cost Per Unit Useful Life Depreciated replacement cost Cost Per Unit
Furniture, fixtures and fittings Useful Life Leasehold improvements Depreciated replacement cost Cost Per Unit Useful Life Motor Vehicles Depreciated replacement cost Cost Per Unit Useful Life Office machines equipment Depreciated replacement cost Cost Per Unit Useful Life Unobservable inputs to level 3 valuations for the current and prior years. Note 10. Intangible assets 2016 $’000 2015 $’000 Software at cost 8,308 8,330 Less: accumulated amortisation (4,391) (3,673) 3,917 4,657 Reconciliation Reconciliations of the carrying amounts of each class of intangible assets at the beginning and end of the current and previous financial year are set out in the following table. 2016 $’000 2015 $’000 Software Carrying amount at beginning of year 4,657 5,459 Additions 58 22 Amortisation (799) (824) Carrying amount at end of year 3,917 4,657 Note 11. Payables 2016 $’000 2015 $’000 Current Unsecured Case-related professional creditors 14,877 13,249 Trade creditors 4,267 2,813 GST payable 3,933 3,363 Monies held in trust 1,821 2,034 24,898 21,459 The average credit period for creditors is 30 days. No interest is charged.
Recognised financial instruments Balance sheet notes Accounting policies Terms and conditions (ii) Financial liabilities Case-related professional creditors 11 Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the organisation. Liability is normally settled on 30-day terms. Monies held in trust 11 Monies held in trust is not recognised in the comprehensive operating statement, but is offset by related expenditure when incurred. Monies held in trust does not incur penalty interest rates. Trade creditors 11 Liabilities are recognised for amounts to be paid in the future for goods and services received, whether or not billed to the organisation. Liability is normally settled on 30-day terms. Interest rate risk exposures Exposures to interest rate risk are limited to assets and liabilities bearing variable interest rates. The majority of financial assets are term deposits with fixed interest rates and terms. These are held to maturity. The carrying amounts of financial assets and liabilities held by Victoria Legal Aid that are exposed to interest rates are detailed in the following table. Note 18. Financial instruments (continued) 2016 Notes Weighted average interest rate % Floating interest rate $’000 Fixed interest maturing in 1 year or less $’000 bearing $’000 Total $’000 Financial assets Cash at bank and on hand 6 2.25% 9,282 - - 9,282 Monies held in trust 6 1.25% 1,821 - - 1,821 Accrued income 0% - - 706 706 Term deposits 6 2.95% - 39,421 - 39,421 Receivables (i) 8 0% - - 17,465 17,465 11,103 39,421 18,171 68,695 Financial liabilities Case-related professional creditors 11 0% - - 14,877 14,877 Monies held in trust 11 0% - - 1,821 1,821
vary significantly between individual debtors. The services of a qualified actuary are utilised to establish the recoverable amount of these receivables. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies. The carrying amount of the financial assets recorded in the financial statements, net of any allowances for losses, represents Victoria Legal Aid's maximum exposure to credit risk without taking account of the value of any collateral obtained. The maturity profile of financial assets held by Victoria Legal Aid are detailed in the following table. Note 18. Financial instruments (continued) Past due but not impaired 2016 Carrying amount $’000 Not past due and not impaired $’000 Less than 1 month $’000 1–3 months $’000 3 months – 1 year $’000 Greater than 1 year $’000 Impairment $’000 Financial assets Cash at bank and on hand 9,282 9,282 - - - - - Monies held in trust 1,821 1,821 - - - - - Accrued income 706 706 - - - - - Term deposits 39,421 39,421 - - - - - Receivables (i) 17,465 - - - 2,291 15,174 7,918 68,695 51,230 - - 2,291 15,174 7,918 2015 Financial assets Cash at bank and on hand 3,268 3,268 - - - - - Monies held in trust 2,034 2,034 - - - - - Accrued income 1,155 1,155 - - - - - Term deposits 38,933 38,933 - - - - - Receivables (i) 16,645 - - - 2,183 14,462 9,214 62,035 45,390 - - 2,183 14,462 9,214 Note (i): The carrying amounts disclosed here exclude statutory amounts (e.g. amounts owing from Victorian government and GST recoverable/payable). Liquidity risk
Appendix 2: Justice and law reform submissions Submission name Authority Date Submission on hearings for secure patients Mental Health Tribunal 27 July 2015 Submission to the Residential Tenancies Act Review—Laying the Groundwork Victorian Government 19 August 2015 Submission on solution-focused hearings for children and young people Mental Health Tribunal 19 August 2015 Submission to the inquiry into workplace relations Productivity Commission 16 September 2015 Submission on the role of victims in the criminal process Victorian Law Reform Commission 30 September 2015 Submission on the implementation of the Victorian Law Reform Commission Review of Crimes (Mental Impairment and Unfitness to be Tried) Act 1997 Department of Justice and Regulation 14 October 2015 Submission on abuse in disability services Victorian Parliament 30 October 2015 Submission on families with complex needs Family Law Council 30 October 2015 Submission to the inquiry into the Victorian labour hire industry and insecure work Department of Economic Development, Jobs, Transport and Resources 9 December 2015 Submission on discrimination in employment (age and disability) Australian Human Rights Commission 18 December 2015 Submission to the Residential Tenancies Act Review—Security of Tenure Victorian Government 5 January 2016 Supplementary submission on the role of victims in the criminal process Victorian Law Reform Commission 13 January 2016 Submission on the Family Law Amendment (Financial Agreements and Other Measures) Bill 2015 Commonwealth Senate Legal and Constitutional Affairs Committee 15 January 2016 Submission on the Criminal Legislation Amendment Bill Victorian Parliament 19 January 2016 Submission on sentencing guidance reference Sentencing Advisory Council 12 February 2016 Submission on access to justice Department of Justice and Regulation 7 March 2016 Submission on the Victorian Government’s gender equality strategy consultation Victorian Government 18 March 2016 Submission to Residential Tenancies Act bonds and other charges Victorian Government 22 April 2016 Submission to the inquiry into the indefinite detention of people with cognitive and psychiatric impairment Commonwealth Senate Standing Committee on Community Affairs 28 April 2016