Comprehensive result 3,200.9 974.3 The above comprehensive operating statement should be read in conjunction with the accompanying notes. Balance sheet as at 30 June 2016 Note 2016 $m 2015 $m Assets Financial assets Cash and deposits 7 703.3 715.3 Receivables 8 1,990.8 1,725.9 Other financial assets 7 274.9 132.5 Total financial assets 2,969.0 2,573.7 Non-financial assets Non-financial physical assets classified as held for sale 9 7.8 107.9 Intangible assets 10 67.7 65.7 Property, plant and equipment 11 19,869.9 16,830.2 Prepayments 17.6 20.1 Other non-financial assets 23.5 11.0 Total non-financial assets 19,986.5 17,034.9 Total assets 22,955.5 19,608.5 Liabilities Payables 12 461.4 342.4 Borrowings 13 249.6 255.1 Provisions 14 1,425.1 1,332.4 Unearned income 30.7 11.0 Total liabilities 2,166.9 1,940.8 Net assets 20,788.6 17,667.7 Equity Accumulated surplus/(deficit) 1,710.8 1,478.6 Physical asset revaluation surplus 16 10,400.7 7,382.3 Contributed capital 8,677.1 8,806.8 Net worth 20,788.6 17,667.7
Receipts from other entities 746.2 794.4 Goods and Services Tax recovered from the ATO 269.7 306.0 Interest received 17.2 19.9 Total receipts 12,032.2 11,436.7 Payments Payments of grants and other transfers (1,461.3) (1,395.0) Payments to suppliers and employees (8,798.4) (8,529.4) Goods and Services Tax paid to the ATO (11.1) (23.2) Capital asset charge payments (1,291.7) (1,287.1) Interest and other costs of finance paid (14.3) (14.2) Total payments (11,576.8) (11,249.0) Net cash flows from/(used in) operating activities 23 455.4 187.8 Cash flows from investing activities Purchases of non-financial assets (288.0) (311.5) Net payments for investments - (5.4) Proceeds from investments 44.8 - Payments for investments (58.7) - Sales of plant and equipment 3.4 1.6 Proceeds from Loan and advances 3.6 5.9 Payment of Loan and advances (21.8) (34.1) Other adjustments (143.8) - Net cash flows from/(used in) investing activities (460.5) (343.5) Cash flows from financing activities Owner contributions received from State Government Government GGovernmenGovernment GGovernmentGovernmentGovernment 3.5 155.8 Proceeds from borrowings 0.5 11.2 Repayment of borrowings and finance leases (10.9) (14.4) Net cash flows from/(used in) financing activities (6.9) 152.7 Net increase/(decrease) in cash and deposits (12.0) (3.0) Cash and deposits at the beginning of the financial year 715.3 718.3 Cash and deposits at the end of the financial year 7 703.3 715.3 The above cash flow statement should be read in conjunction with the accompanying notes.
AASB 14 Regulatory Deferral Accounts 1 AASB 14 permits first-time adopters of Australian Accounting Standards who conduct rate-regulated activities to continue to account for amounts related to rate regulation in accordance with their previous GAAP. 1 January 2016 The assessment has indicated that there is no expected impact, as those that conduct rate-regulated activities have already adopted Australian Accounting Standards. 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 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 licences 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. AASB 2014–5 Amendments to Australian Accounting Standards arising from AASB 15 Amends the measurement of trade receivables and the recognition of dividends. Trade receivables that do not have a significant financing component, are to be measured at their transaction price, at initial recognition. Dividends are recognised in the profit and loss only when: the entity’s right to receive payment of the dividend is established it is probable that the economic benefits associated with the dividend will flow to the entity; and the amount can be measured reliably. 1 January 2017, except amendments to AASB 9 (December 2009) and AASB 9 (December 2010) apply from 1 January 2018. The assessment has indicated that there will be no significant impact for the public sector. AASB 2015–8 Amendments to Australian Accounting Date of AASB 15 This Standard defers the mandatory effective date of AASB 15 from 1 January 2017 to 1 January 2018. 1 January 2018 This amending standard will defer the application period of AASB 15 to the 2018–19 reporting period in accordance with the transition requirements. Effective
AASB 2014–4 Amendments to Australian Accounting of Acceptable Methods of Depreciation and Amortisation [AASB 116 & AASB 138] Amends AASB 116 Property, Plant and Equipment and AASB 138 Intangible Assets to: establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset prohibit the use of methods to calculate the depreciation or amortisation of an asset, tangible or intangible, because revenue generally reflects the pattern of economic benefits that are generated from operating the business, rather than the consumption through the use of the asset. 1 January 2016 The assessment has indicated that there is no expected impact as the revenue-based method is not used for depreciation and amortisation. AASB 2014-9 Amendments to Australian Accounting Standards—Equity Method in Separate Financial Statements [AASB 1, 127 & 128] Amends AASB 127 Separate Financial Statements to allow entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. 1 January 2016 The assessment indicates that there is no expected impact as the entity will continue to account for the investments in subsidiaries, joint ventures and associates using the cost method as mandated if separate financial statements are presented in accordance with FRD 113A. AASB 2014- 10 Amendments to Australian Accounting Standards—Sale or Contribution of Assets between an Investor and its Associate or Joint Venture [AASB 10 & AASB 128] AASB 2014-10 amends AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates to ensure consistent treatment in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The amendments require that: a full gain or loss to be recognised by the investor when a transaction involves a business (whether it is housed in a subsidiary or not); and a partial gain or loss to be recognised by the parent when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. 1 January 2016 The assessment has indicated that there is limited impact, as the revisions to AASB 10 and AASB 128 are guidance in nature.
Summary of compliance with annual parliamentary and special appropriations Summary of compliance with annual parliamentary appropriations The following table discloses the details of the various parliamentary appropriations received by the Department for the year. In accordance with accrual output-based management procedures, ‘provision for outputs’ and ‘additions to net assets’ are disclosed as ‘controlled activities’ of the Department. Administered transactions are those that are undertaken on behalf of the State over which the Department has no control or discretion. Appropriation Act Financial Management Act 1994 Annual appropriation Advance from Treasurer Section 3(2) Section 29 Section 30 Section 32 Section 35 advances Total parliamentary authority Appropriations applied Variance $m $m $m $m $m $m $m $m $m $m 2016 Controlled Provision for outputs 10,840.3 212.0 – 493.0 4.0 325.1 – 11,874.4 11,172.0 702.4 Additions to net assets – – – 25.5 (4.0) – – 21.5 3.5 18.0 Total 10,840.3 212.0 – 518.5 – 325.1 – 11,895.8 11,175.4 720.4 Annual appropriation Advance from Treasurer Section 3(2) Section 29 Section 30 Section 32 Section 35 advances Total parliamentary authority Appropriations applied Variance $m $m $m $m $m $m $m $m $m $m 2015 Controlled Provision for outputs 10,211.9 182.3 – 482.9 – 229.2 41.3 11,147.6 10,683.3 464.3 Additions to net assets – – – 145.6 – 10.2 – 155.8 155.8 – Total 10,211.9 182.3 – 628.6 – 239.4 41.3 11,303.5 10,839.1 464.3
Summary of compliance with special appropriations Appropriations applied Authority controlled Purpose 2016 $m 2015 $m Section 5.6.8 of the Education and Training Reform Act 2006 Volunteers workers’ compensation 0.3 0.2 Section 10 of the Financial Management Act 1994 Digital Education Revolution 20.6 - Section 10 of the Financial Management Act 1994 Occasional Care 1.1 - Total 22.0 0.2 Cash and deposits/other financial assets 2016 $m 2015 $m Cash and deposits Amounts held by schools1 497.8 557.8 Bank accounts held in trust 196.9 152.2 Other bank accounts 8.6 5.2 Total cash and deposits (a) 703.3 715.3 Other financial assets held by schools1 (b) 274.9 132.5 1 Due to limitation of available information, the value of instruments from schools with 0-3-month maturity as ay June 2015 was apportioned to Cash and Deposits, from Other Financial Assets, based on estimates. Cash at bank Amounts held by schools at the end of the financial year disclosed as ‘Cash and deposits’ include bank accounts and short-term deposits with a maturity of less than three months. Due to the State of Victoria’s investment policy and government funding arrangements, the Department generally does not hold a large cash reserve in its bank accounts. The Departmental operating bank accounts hold funds on behalf of trusts and for working accounts (Note 26). Cash received by the Department from the generation of income is generally paid into the State’s bank account, known as the Public Account. Similarly, any Departmental expenditure, including those payments for goods and services to its suppliers and creditors, are made via the Public Account. The process is such that, the Public Account would remit to the Department the cash required to cover its transactions. This remittance by the Public Account occurs upon the electronic transfer of funds and the presentation of the cheques by the Department’s suppliers or creditors. Other financial assets Amounts held by schools with a maturity of three months or more are disclosed as ‘Other financial assets’.
Tables 5 to 8 provide the fair value measurement hierarchy of the Department’s property, plant and equipment. Table —Fair value measurement hierarchy for assets as at 30 June 2016 Fair value measurement at end of reporting period using: 2016 Carrying amount as at 30 June 2016 $m Level 11 $m Level 21 $m Level 31 $m Land at fair value Land 9,367.6 – – 9,367.6 Total land at fair value 9,367.6 – – 9,367.6 Buildings at fair value Buildings 10,014.0 – – 10,014.0 Total of buildings at fair value 10,014.0 – – 10,014.0 Heritage buildings at fair value Heritage Buildings 104.1 – – 104.1 Total of heritage buildings at fair value 104.1 – – 104.1 Leasehold buildings at fair value Leasehold buildings 145.0 – – 145.0 Total of leasehold buildings at fair value 145.0 – – 145.0 Leasehold improvements at fair value Leasehold improvements 3.7 – – 3.7 Total of leasehold improvements at fair value 3.7 – – 3.7 Plant and equipment at fair value Plant and equipment 84.5 – 11.3 73.2 Total of plant and equipment at fair value 84.5 – 11.3 73.2 1 Classified in accordance with the fair value hierarchy, see Note 1(b). Table —Reconciliation of Level 3 fair value 30 June 2016 2016 Land $m Buildings $m Heritage buildings $m Leasehold buildings $m Leasehold improvements $m Plant and equipment $m Opening balance 7,895.7 8,266.8 58.1 191.0 0.5 97.8 Prior year adjustments (32.6) 79.4 – – 4.3 3.5