The VEC’s financial position continues to fluctuate with increases in special appropriation, expenditure and equity. The call on large scale electoral services alternates biennially, influencing the VEC’s funding pattern. The VEC conducted the 2016 Local Government elections in October, and managed 17 additional events including four Local Government countbacks and 13 elections and polls. The VEC successfully delivered all electoral activities on schedule and within budget. FINANCIAL PERFORMANCE With 2016–17 being an electoral year, special appropriations and expenditure transactions increased considerably compared to the previous year. A summary of performance is outlined below showing the movement in special appropriation, expenses, balance sheet items and net cash flow. FIGURE 1: FIVE YEAR FINANCIAL SUMMARY 2012–13 TO 2016–17 2012-2013 ($,000) 2013-2014 ($,000) 2014-2015 ($,000) 2015-2016 ($,000) 2016-2017 ($,000) Electoral activity Government Elections State Election Government Elections Special appropriation 40,245 23,062 62,623 25,260 52,336 Total expenses from transactions 41,663 24,987 65,735 24,946 51,453 Net result from transactions (1,418) (1,925) (3,112) 314 883 Net result for the period (1,411) (1,936) (3,142) 253 917 Net cash flow from/(used in) operating activities 4 (1) - 18 (4) Total assets 10,471 11,520 9,953 11,730 12,746 liabilities 3,020 3,675 4,924 5,457 5,056 Net assets 7,451 7,845 5,029 6,273 7,690 FIGURE 2: SPECIAL APPROPRIATION ($,000) 2012–13 TO 2016–17 FINANCE A AT
VICTORIAN INDUSTRY POLICY The Victorian Industry Participation Policy Act 2003 requires public bodies and departments to report on the implementation of the Victorian Industry Participation Policy (VIPP). Departments and public bodies are required to apply VIPP in all tenders over $3 million in metropolitan Melbourne and $1 million in regional Victoria. No contracts to which the VIPP applies were commenced or completed by the VEC during 2016–17. FIGURE 9: GRANTS TO BODIES, 2016–17 Richmond Football Club Support of Richmond Emerging Aboriginal Leaders camps (at Korin Gamadji Institute) for Indigenous youth to build their leadership skills through active citizenship and position them as role models within their community. $117,604 Victorian School Representative Council Sponsorship for one year (01/01/2016-31/12/2016) to enable delivery of teacher professional development sessions to support Passport to Democracy Program. $5,000 Electoral Regulation Research Network (ERRN) Ongoing support of ERRN to foster exchange and discussion of research relating to electoral regulation. $30,000 Youth Parliament Sponsored four teams to participate in 2017 Youth Parliament. $19,773 Latrobe University – Living with Disability Research Centre Sponsorship of PhD research into barriers to enrolling and voting for people with intellectual impairment. Multi-year project. Paid 50% deposit in this financial year. *Contributions towards this project received from five other electoral commissions. *$30,000 PURPOSE GST) AMOUNT
funding for the particular year. With the Local Government elections occurring in October 2016, the VEC’s funding increased to $52.3 million (2015–16: $25.2 million). EQUITY – VEC The VEC’s equity is measured as the net of VEC’s assets less VEC’s liabilities. The VEC’s total equity position at 30 June 2017 is $7.7 million, comprising of contributed capital and carrying accumulated deficit. ADMINISTRATIVE SERVICES In conducting the 2016 Government elections, the VEC also undertook administrative services on behalf of the State government and local councils. This came in the form of issuing compulsory voting notices, infringement letters and the collection and distribution of council election related funds. As at 30 June 2017, the VEC collected and distributed $26.3 million to councils. Funding from administrative services does not form part of the VEC’s Special Appropriation funding. FIGURE 29: SPECIAL APPROPRIATION 2012–13 TO 2016–17 ($’000) EXPENSES – The increased funding was provided for Local Government election costs, which came in the form of employee wages, and costs associated with supplies and services. The VEC’s casual workforce expanded to 8,000 members and major costs were incurred with key electoral suppliers such as Australia Post, Toll and Telstra providing significant support in mail services, logistics and telecommunication infrastructure. VEC ($’000) ASSETS – Assets owned by the VEC are largely within election inventory and plant and equipment across its two locations. The largest asset owned and developed by the VEC is the Election Management System, which underpins the VEC’s ability to manage and host election activities. The system undergoes ongoing development and enhancement to meet election needs and legislative changes and to improve the efficiency and delivery of elections. VEC LIABILITIES – The VEC’s liabilities are largely represented by employee provisions (annual leave and long service leave owing to staff) and supplier commitments. Money owed to suppliers and creditors was timing FUNDING ASSETS
As at 30 June 2017, the following AASBs have been issued by the AASB but not yet effective. They become effective for the first financial statements for reporting periods commencing after the stated operative dates as follows: / VEC AASB 16 Leases The key changes introduced by AASB 16 include the recognition of most operating leases (which are currently not recognised) on balance sheet. 1 Jan 2019 The assessment has indicated that as most operating leases will come on balance sheet, recognition of the assets and lease liabilities will cause net debt to increase. Rather than expensing the lease payments, depreciation of right-of-use assets and interest on lease liabilities will be recognised in the income statement with marginal impact on the operating surplus. AASB 2016-4 Amendments to Australian Accounting Standards - Recoverable Amount of Specialised Assets of Not-for-Profit Entities The standard amends AASB 136 Impairment of Assets to remove references to using depreciated replacement cost (DRC) as a measure of value in use for entities. 1 Jan 2017 The assessment has indicated that there is minimal impact. Given the specialised nature and restrictions of public sector assets, the existing use is presumed to be the highest and best use (HBU), hence current replacement cost under AASB 13 Fair Value Measurement is the same as the depreciated replacement cost concept under AASB 136. AASB 1058 Income of Entities This standard replaces AASB 1004 Contributions and establishes revenue principles for transactions the consideration to acquire an asset is significantly less than fair value to enable a entity to further its objectives. 1 Jan 2019 The assessment has indicated that revenue from capital grants that are provided under an enforceable agreement that have sufficiently specific obligations, will now be deferred and recognised as performance obligations are satisfied. As a result, the timing recognition of revenue will change. NOTE 2. DEPARTMENTAL (CONTROLLED) OUTPUTS A description of departmental outputs performed during the year ended 30 June 2017, and the objectives of these outputs, are summarised below. SUMMARY
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. FINANCIAL STATEMENTS A complete set of financial statements comprises: a balance sheet as at the end of the period a comprehensive operating statement for the period a statement of changes in equity for the period a cash flow statement for the period notes, comprising a summary of significant accounting policies and other explanatory information comparative information in respect of the preceding period as specified in paragraphs 38 of AASB 101 Presentation of Financial Statements and a statement of financial position as at the beginning of the preceding period when an entity applies an accounting policy retrospectively or a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements in accordance with paragraphs 41 of AASB 101. GENERAL GOVERNMENT SECTOR The general government sector comprises all government departments, offices and bodies engaged in providing services free of charge, or at prices significantly below their cost of production. General government services include those which 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, or other compulsory levies and user charges. INTANGIBLE PRODUCED ASSETS to produced asset in this glossary. INTEREST EXPENSE Costs incurred in connection with the borrowing of funds include the interest component of finance lease repayments. NET RESULT Net result is a measure of financial performance of the operations for the period. It is the net result of items of income, gains and expenses (including losses) recognised for the period, excluding those that are classified as ‘other economic flows - other comprehensive income’. NET WORTH Assets less liabilities, is an economic measure of wealth. OTHER ECONOMIC FLOWS INCLUDED IN NET RESULT Other economic flows included in net result are changes in the volume or value of an asset or liability that do not result from transactions. It includes gains and losses from disposals, revaluations and impairments of non-financial physical and intangible assets and fair value changes of financial instruments.
Framlingham Aboriginal Committee of Management Fee-for-service election 25/7/16 Attendance Warrnambool 21 Murray Valley Wine Growers Industrial Development Order 2016 Fee-for-service election 23/9/16 Postal VEC 381 Goldburn Valley Waste Resource Recovery Board Election Fee-for-service election 16/12/16 Attendance Shepparton 6 Grampians Central West Water and Resource Recovery Board Election Fee-for-service election 10/2/17 Attendance Stawell 12 Municipal Association Victoria Board Elections Fee-for-service election 3/3/17 Postal VEC 76 Murphy's Wine Bar Liquor Licensing Poll Fee-for-service election 21/3/17 Postal VEC 1,421 APPENDIX G: ENFORCEMENT OF 2016–17 30 2017 Camberwell LLP 1 20-Apr-17 419 N/A Murphy’s Wine Bar 2 31-May-17 157 $2,106.00 due to be lodged 21-Mar-17 3 $0.00 30-Nov-17 2016 Government elections 1 19-Jan-17 to 8-Feb-17 598,913 N/A 76 Councils 2 14-Mar-17 to 6-Apr-17 430,262 $11,169,576.81 due to be lodged 22-Oct-16 3 16-May-17 to 9-Jun-17 292,473 $460,619.46 14-Sep-17 to 6-Oct-17 Campaspe 1 24-Mar-16 419 N/A Western Ward by-election 2 6-May-16 284 $6,840.00 20-Feb-16 3 30-June-16 170 $4,826.50 31-Aug-16 107