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FAIR WORK AUSTRALIA

275

FAIR WORK AUSTRALIA

Section 1: Agency overview and resources ........................................................... 277 1.1 Strategic Direction Statement ....................................................................... 277 1.2 Agency Resource Statement ........................................................................ 279 1.3 Budget Measures .......................................................................................... 280

Section 2: Outcomes and planned performance ................................................... 281 2.1 Outcomes and performance information ...................................................... 281

Section 3: Explanatory tables and budgeted financial statements ..................... 285 3.1 Explanatory tables ........................................................................................ 285 3.2 Budgeted Financial Statements .................................................................... 286

277

FAIR WORK AUSTRALIA

Section 1: Agency overview and resources

1.1 STRATEGIC DIRECTION STATEMENT

Fair Work Australia (FWA) was established by the Fair Work Act 2009 and commenced operations on 1 July 2009. FWA was one of two institutions established to administer the provisions of the Fair Work Act 2009 (the Act) and to provide a balanced framework for cooperative and productive workplace relations that promote economic prosperity and social inclusion. The Act also establishes the Office of the Fair Work Ombudsman (FWO) to undertake compliance, education and advice functions.

FWA consists of a President, Deputy Presidents, Commissioners and Minimum Wage Panel members. FWA also has a General Manager and administrative staff who exercise powers and functions under the Act.

FWA has the power to vary awards, make minimum wage orders, approve agreements, resolve workplace and other disputes, determine unfair dismissal claims and make orders in relation to such things as good faith bargaining and industrial action. FWA performs its functions and exercises its powers in a manner that is:

• efficient

• adequately serves the needs of employers and employee

• fair and just

• quick, informal and avoids unnecessary technicalities

• open and transparent

• promotes harmonious and cooperative workplace relations.

FWA’s strategic plan has the overarching strategic goal of ensuring that FWA delivers highly regarded, independent, efficient, client focussed workplace relations services to Australia.

The strategy has three areas of primary focus:

• to ensure that FWA can perform its functions and exercise its powers under the Fair Work Legislation

• establish FWA as a values-driven organisation with best practice human resource initiatives that assist FWA in working collaboratively

• ensure FWA service is modern and accessible with a strong emphasis on client service.

Significant progress has been made towards achieving the objectives in 2010-11 and will continue in 2011-12.

Fair Work Australia Budget Statements – Overview & resources

278

FWA will continue work with the respective state industrial commissions to implement the national workplace relations system in accordance with the respective bi-lateral arrangements.

The memorandum of understanding between FWA and FWO is in place to aid the seamless delivery of services to clients regardless of whether the initial point of contact is with FWA or FWO. The two agencies will continue to work cooperatively to meet this objective through the Fair Work websites, client contact through Fair Work Infoline, FWA Help Line or through FWA and FWO offices throughout Australia.

A research program continues to support the minimum wage function with research projects to be completed or to be commissioned in 2011-12.

Processes for the management of lodgements particularly the matter types which have the highest numbers unfair dismissals and approval of agreements will continue to be reviewed and refined.


279

1.2 AGENCY RESOURCE STATEMENT

Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification.

Table 1.1: Fair Work Australia Resource Statement — Budget Estimates for 2011-12 as at Budget May 2011

1 Appropriation Bill (No.1) 2011-12. 2 Estimated adjusted balance carried forward from previous year. 3 Includes an amount of $2.225m in 2011-12 for the Departmental Capital Budget (refer to table 3.2.5 for further details). For accounting purposes this amount has been designated as 'contributions by owners'. 4 s31 Relevant Agency receipts — estimate. 6 Appropriation Bill (No.2) 2011-12.

Estimate Proposed Total Actualof prior + at Budget = estimate available

year amounts appropriation

available in

2011- 12 2011- 12 2011- 12 2010- 11$'000 $'000 $'000 $'000

Ordina ry a nnua l se rvic e s 1

De pa rtme nta l a ppropria tionPrior year departmental appropriation2 2,120 - 2,120 2,120

Departmental appropriation3 59,876 75,161 135,037 75,630

s31 Relevant agency receipts4 - 99 99 99

Tota l 6 1,9 9 6 7 5 ,2 6 0 13 7 ,25 6 7 7 ,84 9

Tota l ordina ry a nnua l se rvic e s A 6 1,9 9 6 7 5 ,2 6 0 13 7 ,25 6 7 7 ,84 9

Othe r se rvic e s 6

Administe red e xpense sDe pa rtme nta l non- ope ra ting

Equity injections 902 - 902 1,000

Tota l 9 0 2 - 90 2 1,00 0

Tota l othe r se rvic e s B 9 0 2 - 90 2 1,00 0

Tota l a va ila ble annua l

a ppropria tions 6 2 ,8 9 8 7 5 ,2 6 0 13 8 ,15 8 7 8 ,84 9

Spe c ia l a ppropria tions

Spe c ia l a ppropria tions limite d

by c rite ria /e ntitle me nt - - - -

Tota l spe c ia l a ppropria tions C - - - -

Tota l a ppropria tions e xc luding

Spe c ia l Ac c ounts 6 2 ,8 9 8 7 5 ,2 6 0 13 8 ,15 8 7 8 ,84 9

Spe c ia l Ac c ounts - - - -

Tota l Spe c ia l Acc ount D - - - -

Tota l re sourc ing

A+B+C+D 62,898 75,260 138,158 78,849

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts

and/or CAC Act bodies through

annual appropriations - - - -

Tota l ne t re sourc ing for age nc y Fa ir Work Austra lia 6 2 ,8 9 8 7 5 ,2 6 0 13 8 ,15 8 7 8 ,84 9


280

Table 1.1: Fair Work Australia Resource Statement — Budget Estimates for 2011-12 as at Budget May 2011 (continued)

1.3 BUDGET MEASURES

Budget measures relating to Fair Work Australia are detailed in Budget Paper No. 2 and are summarised below.

Table 1.2: Agency 2011-12 Budget measures

Prepared on a Government Finance Statistics (fiscal) basis.

Estimate Proposed Total Actual

of prior + at Budget = estimate available

year amounts appropriation

available in

2011- 12 2011- 12 2011- 12 2010- 11$'000 $'000 $'000 $'000

Spe c ia l Ac c ounts - - - -

Tota l Spe c ia l Acc ount D - - - -

Tota l re sourc ing

A+B+C+D 62,898 75,260 138,158 78,849

Less appropriations drawn from

annual or special appropriations above

and credited to special accounts

and/or CAC Act bodies through

annual appropriations - - - -

Tota l ne t re sourc ing for age nc y Fa ir Work Austra lia 6 2 ,8 9 8 7 5 ,2 6 0 13 8 ,15 8 7 8 ,84 9

Program 2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

Expense measures (if applicable)Efficiency dividend - increase in the rate

Departmental expenses - (370) (751) (926) (1,127) Departmental capital - (11) (14) (6) (48)

Total - (381) (765) (932) (1,175)

Total expense measuresDepartmental - (370) (751) (926) (1,127) Departmental capital - (11) (14) (6) (48)

Total - (381) (765) (932) (1,175)

281

Section 2: Outcomes and planned performance

2.1 OUTCOMES AND PERFORMANCE INFORMATION

Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programs are the primary vehicle by which government agencies achieve the intended results of their outcome statements. Agencies are required to identify the programs which contribute to government outcomes over the Budget and forward years.

Each outcome is described below together with its related programs, specifying the performance indicators and targets used to assess and monitor the performance of Fair Work Australia in achieving government outcomes.

Outcome 1: Simple, fair and flexible workplace relations for employees and employers through the exercise of powers to set and vary minimum wages and modern awards, facilitate collective bargaining, approve agreements and deal with disputes

Outcome 1 Strategy

FWA has a single planned outcome. Key strategies toward achieving the Fair Work Australia outcome in 2011-12 are:

• provide effective assistance to Fair Work Australia Members to meet the objects of the Fair Work Act 2009

• implement processes and systems to support the exercise of new and/or changed powers under the Fair Work Act 2009

• develop and provide information to promote public understanding of the functions and activities of Fair Work Australia

• undertake research activities to support minimum wage process.

Fair Work Australia Budget Statements – Outcomes & performance

282

Outcome Expense Statement

Table 2.1 provides an overview of the total expenses for Outcome 1, by program.

Table 2.1: Budgeted Expenses and Resources for Outcome 1

Contributions to Outcome 1

Program 1: Dispute resolution, minimum wages, orders and approval of agreements

Program 1 objective

To exercise powers under the Fair Work Act 2009:

• in accordance with the objects of the Act

• in a manner that is efficient, fair and just, quick, informal and avoids unnecessary technicalities, open and transparent and promotes harmonious and cooperative workplace relations.

Linked to:

Fair Work Australia and the Office of the Fair Work Ombudsman are created under the Fair Work Act 2009. Fair Work Australia and the Office of the Fair Work Ombudsman have cooperative approaches to the delivery of services to employees, employers and organisations.

Outcome 1: Simple, fair and flexible workplace relations for employees and employers through the exercise of pwers to set and vary minimum wages and modern awards, facilitiate collective bargaining, approve agreements and deal w ith disputes.

2010-11 2011-12

Estimated Estimatedactual expenses

expenses$'000 $'000

Program 1.1: (Insert program name)Departmental expenses

Departmental appropriation 1 71,561 72,947Expenses not requiring appropriation in the Budget year 2 2,079 1,746

Total for Program 1.1 73,640 74,693

Outcome 1 Totals by appropriation typeDepartmental expenses

Departmental appropriation 1 71,561 72,947Expenses not requiring appropriation in the Budget year 2 2,079 1,746

Total expenses for Outcome 1 73,640 74,693

2010-11 2011-12

Average Staffing Level (number) 329 332


283

Program 1 expenses

The functions of Fair Work Australia are prescribed by legislation and while a number of the functions of Fair Work Australia have previously been undertaken by other institutions, the processes implemented by Fair Work Australia may be new and/or changed under the Fair Work Act 2009.

1 Expenses not requiring appropriation in the Budget year is made up of Depreciation Expense and Amortisation Expense.

Program 1 Deliverables

The deliverables for Fair Work Australia are:

• dispute resolution - unfair dismissal application processing

• minimum wage decisions

• orders relating to industrial action

• processes relating to modern awards

• approval of agreements

2010-11 2011-12 2012-13 2013-14 2014-15Revised Budget Forw ard Forw ard Forw ardbudget year 1 year 2 year 3

('000) $'000 $'000 $'000 $'000 $'000Annual departmental expenses:

Departmental item 71,462 72,947 73,780 72,729 73,668Expenses not requiring appropriation in

the Budget year 1 2,079 1,746 1,722 1,722 1,722

Total program expenses 73,541 74,693 75,502 74,451 75,390

2010-11 2011-12 2012-13 2013-14 2014-15Revised Budget Forw ard Forw ard Forw ard

Deliverables budget year 1 year 2 year 3

Dispute resolution, minimum w age decision, orders and approval of agreements. 73,541 74,693 75,502 74,451 75,390


284

Program 1 Key Performance Indicators

The Key Performance Indicators for Fair Work Australia are:

• improve or maintain the time elapsed from lodging applications to finalising conciliations in unfair dismissal applications

• annual wage review to be completed to enable an operative date of 1 July

• improve or maintain the time taken to list applications relating to industrial action.

• Improve or maintain the agreement approval time

2010-11 2011-12 2012-13 2013-14 2014-15Key Performance Revised Budget Forw ard Forw ard Forw ard

Indicators budget target year 1 year 2 year 3

Improve or maintain the time elapsed from lodging applications to f inalising conciliations in unfair dismissal applications.* 34 days 34 days 34 days 34 days 34 days

Completion of annual w age review By June 11 By June 12 By June 13 By June 14 By June 15

Improve or maintain the time taken to list applications relating to industrial action* 3 days 3 days 3 days 3 days 3 days

Improve or maintain the agreement approval time* 32 days 32 days 32 days 32 days 32 days

285

Section 3: Explanatory tables and budgeted financial statements

Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of agency finances for the 2011-12 budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and program expenses, movements in administered funds, special accounts and government Indigenous expenditure.

3.1 EXPLANATORY TABLES

3.1.1 Movement of administered funds between years

Fair Work Australia has no administered funds. For this reason Table 3.1.1 is not presented.

3.1.2 Special Accounts

Fair Work Australia has no special accounts. For this reason Table 3.1.2 is not presented.

3.1.3 Australian Government Indigenous Expenditure

The 2011-12 Australian Government Indigenous Statement is not applicable because Fair Work Australia has no Indigenous specific expense. For this reason Table 3.1.3 is not presented.

Fair Work Australia Budget Statements – Budgeted financial statements

286

3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 Differences in agency resourcing and financial statements

Fair Work Australia has nil differences to report.

3.2.2 Analysis of budgeted financial statements

Fair Work Australia is budgeting for a break-even result in 2011-12 and for the three forward years.

Total revenue for 2011-12 is estimated to be $73.4 million.

Total expenses for 2011-12 are estimated to be $75.1 million, which includes $1.7 million for depreciation and amortisation.

Total assets for 2011-12 are estimated to be $75.9 million, comprising $58.7 million in financial assets and $17.2 million in non-financial assets.

Total liabilities for 2011-12 are estimated to be $22.1 million, with the primary liabilities being accrued employee entitlements which total $13.8 million.

Fair Work Australia is budgeting for a nil change in the bank account in 2011-12 and for the three forward years.

Capital acquisitions in 2011-12 are planned to be $9.1 million.

Total equity for 2011-12 is estimated to be $53.8 million, which consists of Accumulated results which totals $9.4 million and Contributed equity/capital which totals $44.4 million.


287

3.2.3 Budgeted financial statements tables

Table 3.2.1 Comprehensive Income Statement (Showing Net Cost of Services) (for the period ended 30 June)

Prepared on Australian Accounting Standards basis.

Estimated Budget Forw ard Forw ard Forw ardactual estimate estimate estimate estimate

2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

EXPENSESEmployee benefits 42,790 44,056 44,419 42,730 43,708Supplier expenses 28,846 29,070 29,540 30,178 30,139Depreciation and amortisation 2,079 1,746 1,722 1,722 1,722Total expenses 73,715 74,872 75,681 74,630 75,569

LESS: OWN-SOURCE INCOMEOwn-source revenueOther 99 99 99 99 99

Total own-source revenue 99 99 99 99 99

GainsOther 75 80 80 80 80 Total gains 75 80 80 80 80 Total own-source income 174 179 179 179 179

Net cost of (contribution by)services

Revenue from Government 71,462 72,947 73,780 72,729 73,668

Surplus (Deficit)Surplus (Deficit) attributable to

the Australian Government (2,079) (1,746)* (1,722)* (1,722)* (1,722)*

OTHER COMPREHENSIVE INCOMEChanges in asset revaluation reserves - - - - -

Total other comprehensive income - - - - - Total comprehensive income (2,079) (1,746)* (1,722)* (1,722)* (1,722)*

Total comprehensive income attributable to the Australian Government (2,079) (1,746)* (1,722)* (1,722)* (1,722)*

Note: Reconciliation of comprehensive income attributable to the agency2010-11 2011-12 2012-13 2013-14 2014-15

$'000 $'000 $'000 $'000 $'000Total Comprehensive Income

(loss) Attributable to the Australian Government (2,079) (1,746) (1,722) (1,722) (1,722)

plus non-appropriated expensesdepreciation and amortisation expenses 2,079 1,746 1,722 1,722 1,722

Total Comprehensive Income (loss) Attributable to the agency - - - - -


288

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

* 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.


2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

ASSETSFinancial assets

Cash and cash equivalents 730 730 730 730 730Trade and other receivables 64,932 57,941 57,822 57,212 59,324

Total financial assets 65,662 58,671 58,552 57,942 60,054

Non-financial assetsLand and buildings 4,048 11,656 11,431 10,810 10,186Property, plant and equipment 2,601 2,357 2,498 2,397 2,515Intangibles 1,409 1,408 1,207 1,156 952Other 1,748 1,748 1,748 1,748 1,748

Total non-financial assets 9,806 17,169 16,884 16,111 15,401Assets held for sale - - - - -

Total assets 75,468 75,840 75,436 74,053 75,455

LIABILITIESPayables

Suppliers 738 682 626 626 626Total payables 738 682 626 626 626

ProvisionsEmployee provisions 13,674 13,786 13,898 14,010 14,010Other 7,746 7,594 7,456 7,245 7,248

Total provisions 21,420 21,380 21,354 21,255 21,258

Liabilities included in disposalgroups held for sale - - - - -

Total liabilities 22,158 22,062 21,980 21,881 21,884

Net assets 53,310 53,778 53,456 52,172 53,571EQUITY*Parent entity interest

Contributed equity 42,206 44,420 45,820 46,258 49,379Retained surplus 11,104 9,358 7,636 5,914 4,192

Total parent entity interest 53,310 53,778 53,456 52,172 53,571

Total Equity 53,310 53,778 53,456 52,172 53,571


289

Table 3.2.3: Departmental statement of changes in equity — summary of movement (Budget year 2011-12)


Retained Asset Other Contributed Totalearnings revaluation reserves equity/ equity

reserve capital$'000 $'000 $'000 $'000 $'000

Opening balance as at 1 July 2011Balance carried forw ard from

previous period 11,104 - - 42,206 53,310

Adjusted opening balance 11,104 - - 42,206 53,310

Comprehensive incomeSurplus (deficit) for the period (1,746) - - - (1,746)

Total comprehensive income 9,358 - - 42,206 51,564 of w hich:

Attributable to the Australian Government 9,358 - - 42,206 51,564

Transactions with ownersContributions by owners

Departmental Capital Budget (DCBs) - - - 2,214 2,214

Sub-total transactions with owners - - - 2,214 2,214

Transfers betw een equitycomponents - - - - -

Estimated closing balanceas at 30 June 2012 9,358 - - 44,420 53,778


290

Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)



2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Appropriations 69,814 78,889 72,884 73,240 71,556 Other 326 367 369 99 99

Total cash received 70,140 79,256 73,253 73,339 71,655

Cash usedEmployees 42,497 43,936 44,293 42,730 43,708 Suppliers 29,596 28,425 28,923 30,098 30,056

Total cash used 72,093 72,361 73,216 72,828 73,764 Net cash from (used by)

operating activities (1,953) 6,895 37 511 (2,109)

INVESTING ACTIVITIESCash received - - - - - Total cash received - - - - -

Cash usedPurchase of property, plant

and equipment 3,215 9,120 1,451 955 1,060 Total cash used 3,215 9,120 1,451 955 1,060 Net cash from (used by)

investing activities (3,215) (9,120) (1,451) (955) (1,060) FINANCING ACTIVITIESCash received

Contributed equity 5,168 2,225 1,414 444 3,169 Total cash received 5,168 2,225 1,414 444 3,169

Cash usedOther - - - - -

Total cash used - - - - - Net cash from (used by)

financing activities 5,168 2,225 1,414 444 3,169 Net increase (decrease)

in cash held - - - - - Cash and cash equivalents at the

beginning of the reporting period 730 730 730 730 730

Cash and cash equivalents at the end of the reporting period 730 730 730 730 730


291

Table 3.2.5: Departmental Capital Budget Statement

1 Does not include annual finance lease costs. Include purchase from current and previous years Departmental Capital Budgets. 2 Includes the following sources of funding: - annual and prior year appropriations Prepared on Australian Accounting Standards basis.


2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

CAPITAL APPROPRIATIONSCapital budget - Bill 1 (DCB) 4,168 2,214 1,400 438 3,121 Equity injections - Bill 2 1,000 - - - -

Total capital appropriations 5,168 2,214 1,400 438 3,121

Total new capital appropriationsRepresented by:

Purchase of non-f inancial assets 5,168 2,214 1,400 438 3,121 Total Items 5,168 2,214 1,400 438 3,121

PURCHASE OF NON-FINANCIALASSETSFunded by capital appropriation 1,000 689 212 - - Funded by capital appropriation - DCB1 2,215 5,949 1,225 949 1,012

Funded internally fromdepartmental resources2 - 2,471 - - -

TOTAL 3,215 9,109 1,437 949 1,012

RECONCILIATION OF CASHUSED TO ACQUIRE ASSETSTO ASSET MOVEMENT TABLE

Total purchases 5,168 2,214 1,400 438 3,121 less additions by f inance lease - - - - - less additions by creditors / borrow ings - - - - - plus borrow ing / f inance costs - - - - - plus Annual f inance lease costs - - - - - less Gifted assets - - - - -

less s32 / restructuring - - - - - Total cash used to

acquire assets 5,168 2,214 1,400 438 3,121


292

Table 3.2.6: Statement of Asset Movements (2011-12)

1 "Appropriation equity" refers to equity injections or Administered Assets and Liabilities appropriations provided through Appropriation Bill (No.2) 2011-12, including CDABs. 2 "Appropriation ordinary annual services" refers to funding provided through Appropriation Bill (No.1) 2011-12 for depreciation / amortisation expenses, DCBs / ACBs or other operational expenses. 3 Proceeds may be returned to the OPA.

Buildings Other property, Intangibles Total

plant and

equipment

$'000 $'000 $'000 $'000

As a t 1 July 2 0 11Gross book value 16,865 4,025 1,937 22,827

Accumulated depreciation/amortisation

and impairment 12,817 1,424 528 14,769

Ope ning ne t book ba la nc e 4 ,0 4 8 2 ,6 0 1 1,4 0 9 8 ,0 5 8

CAPITAL ASSET ADDITIONS

Estima te d e xpe nditure on

ne w or re pla c e me nt a sse tsBy purchase - appropriation equity 1 - 390 299 689

By purchase - appropriation ordinary

annual services 2 8,371 49 8,420 Tota l a dditions 8 ,3 7 1 4 3 9 2 9 9 9 ,10 9

Othe r move me ntsDepreciation/amortisation expense 763 683 300 1,746

Disposals 3 359 635 639 1,633

As a t 3 0 June 2 0 12Gross book value 24,877 3,829 1,597 30,303

Accumulated depreciation/amortisation

and impairment 13,221 1,472 189 14,882

Closing ne t book ba la nc e 11,6 5 6 2 ,3 5 7 1,4 0 8 15 ,4 2 1


293

Table 3.2.7: Schedule of budgeted income and expenses administered on behalf of Government (for the period ended 30 June)

Table 3.2.8: Schedule of budgeted assets and liabilities administered on behalf of Government (as at 30 June) Fair Work Australia has no administered assets and liabilities. For this reason Table 3.2.8 is not presented.


2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

INCOME ADMINISTERED ONBEHALF OF GOVERNMENT

RevenueTaxation revenue - - - - - Total taxation revenue - - - - -

Non-taxation revenueOther 582 582 582 582 582

Total non-taxation revenue 582 582 582 582 582 Total revenues administered

on behalf of Government 582 582 582 582 582 EXPENSES ADMINISTERED ON

BEHALF OF GOVERNMENTTotal expenses administered

on behalf of Government - - - - -


294

Table 3.2.9: Schedule of budgeted administered cash flows (for the period ended 30 June)


2010-11 2011-12 2012-13 2013-14 2014-15$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIESCash received

Other 582 582 582 582 582

Total cash received 582 582 582 582 582

Cash used - - - - -

Total cash used - - - - - Net cash from (used by)

operating activities 582 582 582 582 582

INVESTING ACTIVITIESCash received - - - - - Total cash received - - - - - Cash used - - - - - Total cash used - - - - - Net cash from (used by)

investing activities - - - - -

FINANCING ACTIVITIESCash received - - - - - Total cash received - - - - - Cash used - - - - - Total cash used - - - - - Net cash from (used by)

financing activities - - - - -

Net increase (decrease) in cash held 582 582 582 582 582 Cash and cash equivalents at

beginning of reporting periodCash to Official Public Account for:

- Appropriations (582) (582) (582) (582) (582)

Cash and cash equivalents at endof reporting period - - - - -


295

Table 3.2.10: Schedule of Administered Capital Budget Fair Work Australia has no administered capital budget. For this reason Table 3.2.10 is not presented.

Table 3.2.11: Schedule of Asset Movements — Administered Fair Work Australia has no administered assets and liabilities. For this reason Table 3.2.11 is not presented.

3.2.4 Notes to the financial statements

Accounting Policy

The budgeted financial statements have been prepared in accordance with the requirements of the Finance Minister’s Orders issued by the Minister for Finance and Deregulation.

The statements have been prepared:

• on an accrual accounting basis; and

• in compliance with Australian Accounting Standards and Australian Equivalents to International Financial Reporting Standards (AEIFRS) and other authoritative pronouncements of the Australian Accounting Standards Board and the Consensus Views of the Urgent Issues Group.

Departmental Revenue from Government

Revenue from government represents the purchase of outputs from Fair Work Australia by the Government. The changes reflected in the ordinary annual appropriations are a result of those new measures and variations that are explained in Section 1: Agency overview and resources, variations and measures.

Departmental Revenue from Other Sources

Revenue from the sale of goods and services will be recognised upon the delivery of the goods or services to customers.

Departmental Expenses – Employees

This item will represent payments made and net increases or decreases in entitlements owed to employees for their services provided in the financial year.

Departmental Expenses – Suppliers

This item will represent payments to suppliers for goods and services.


296

Departmental Expenses – Depreciation and Amortisation

Property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to Fair Work Australia using, in all cases, the straight-line method of depreciation.

Property plant and equipment assets will be depreciated over their useful lives between three and ten years. Leasehold improvements will be amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Forward estimates of depreciation expense have been made using forecasts of net capital acquisition requirements over the forward years.

Departmental Assets – Financial Assets – Receivables

Receivables represent amounts which will be owing to Fair Work Australia for goods and services it has provided to external parties and cash reserves held in the Official Public Account.

Departmental Assets – Non-Financial Assets

These items represent future economic benefits that Fair Work Australia will consume in producing outputs. Apart from re-valued assets, the reported value represents the purchase price paid, less depreciation incurred to date in using that asset from the transferring agencies.

Land and Buildings, and Infrastructure, Plant and Equipment will initially be brought to account at cost, except for purchases costing less than $10,000 for leasehold improvements and $2,000 for all other classes, which will be expensed in the year of acquisition (other than where they form part of the group of similar items which are significant in total).

Computer software, disclosed in the Departmental Balance Sheet as Intangibles, will be expensed in the year of acquisition except for purchases or internally developed software costing more than $2,000 which are capitalised at cost.

Fair Work Australia will annually reassess and adjust the values of Land and Buildings (leasehold improvements), Infrastructure, Plant and Equipment.


297

Departmental Liabilities – Provisions – Employees

Provision will be made for Fair Work Australia liability for employee entitlements arising from services rendered by Fair Work Australia Commission Members and Fair Work Australia employees to balance date. This liability will encompass unpaid wages and salaries, annual and long service leave and Judges’ leave. No provision will be made for sick leave.

The liability for leave expected to be settled within 12 months is to be measured at the nominal amount.

Other employee entitlements payable later than one year will be estimated at the present value of the expected future cash outflows in relation to those entitlements. Attrition rates and pay rises through promotion and wage/salary agreements will be been taken into account.

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