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Financial statements

Operating statement
For the year ended 30 June 2015 2014-15
$'000		 2013-14
$'000
Income from transactions
Revenue from government* 80,219 91,242
Sales of goods and services 405 392
Payments to consolidated fund (1) (1)
Total income from transactions 80,623 91,633
Expenses from transactions
Employee benefits 50,210 44,779
Supplies and services 16,101 21,581
Depreciation and amortisation 8,465 17,169
Grants & other transfers 4,621 6,897
Capital asset charge 84 201
Interest expenses 448 456
Total expenses from transactions 79,929 91,083
Net result from transactions 694 550
Other economic flows in net result
Net gains / (losses) on financial instruments - (3)
Net gains / (losses) on non-financial assets 7 31
Other gains / (losses) on other economic flows (58) (9)
Total other economic flows in net result (51) 19
Net surplus/(deficit) for reporting period 643 569

* Revenue from government represents the output budget allocated to SRO

Notes to the operating statement

  • The increase of $5.431 million in employee benefits was mainly due to salary increases associated with the VPS agreement and the inclusion of IT contractors as labour contractors in 2014-15 as a result of a change in DTF accounting policy. This change forms the primary reason for the reduction in Supplies and Services.
  • The decrease of $8.704 million in depreciation and amortisation was mainly due to a decrease in amortisation expenses related to municipal valuations. Municipal valuations are amortised for up to 2 years and due to the timing of purchases the amortisation expense is always lower in the first year of the cycle. 2014-15 was the first year of the two year cycle.
  • Grants & other transfers consists of payments made to Municipal Councils in relation to the administration of the Fire Service Property Levy, which were based on the Treasurer’s determination under section 70 of the Fire Services Property Levy Act 2012.
  • Expenses from transactions include $0.405 million in relation to the administration of the Growth Area Infrastructure Contribution.  Costs recovered from the relevant trust fund were reported as sales of goods and services.

Balance sheet
As at 30 June 2015 2014-15
$'000		 2013-14
$'000
Financial assets
Cash assets 3 3
Receivables 16,617 26,685
Total financial assets 16,620 26,688
Non-financial assets
Inventories - 60
Plant, property and equipment 1,072 1,799
Intangible assets 21,648 8,246
Other 1,676 1,722
Total non-financial assets 24,396 11,827
Total assets 41,016 38,515
Liabilities
Payables 9,320 7,311
Interest-bearing liabilities 214 264
Provisions 13,631 12,681
Total liabilities 23,165 20,256
Net assets 17,851 18,259

Notes to the balance sheet

Receivables
Receivables 2014-15
$'000		 2013-14
$'000
Amounts owing from Victorian Government 14,955 25,826
GST input tax credit recoverable 183 178
Other receivables 1,479 681
Total receivables 16,617 26,685

Written-down value of property, plant & equipment
Written-down value of property, plant & equipment 2014-15
$'000		 2013-14
$'000
Computer equipment 5 6
Plant, furniture and equipment 101 96
Leasehold improvements / fitouts 966 1,697
Construction in progress - -
Total written-down value of plant, property and equipment 1,072 1,799

Written-down value of intangible assets
Written-down value of intangible assets 2014-15
$'000		 2013-14
$'000
Municipal valuations* 13,161 -
Other intangible produced assets** 6,128 7,408
Work in progress** 2,359 838
Total written-down value of intangible assets 21,648 8,246

*All municipal valuations will be fully amortised by 30 June 2016
** Capitalised and uncapitalised expenditure on e-Sys Life Extension Project

Other non-financial assets
Other non-financial assets 2014-15
$'000		 2013-14
$'000
Prepayments 1,464 1,461
Motor vehicle leased 212 261
Total other non-financial assets 1,676 1,722

Payables
Current payables 2014-15
$'000		 2013-14
$'000
Unpresented cheques 66 312
Trade creditors 956 313
Accruals 4,627 3,488
Other payables 3,671 3,198
Total payables 9,320 7,311

 

Interest-bearing liabilities
Interest-bearing liabilities 2014-15
$'000		 2013-14
$'000
Current liabilities
Motor vehicle leases 139 75
Total current liabilities 139 75
Non-current liabilities
Motor vehicle leases 75 189
Total non-current liabilities 75 189
Total interest-bearing liabilities 214 264

 

Provisions
Provisions 2014-15
$'000		 2013-14
$'000
Current provisions
Annual leave 2,678 3,104
Long service leave 8,077 8,370
Other Employee Entitlements 1,698 70
Total current provisions 12,453 11,544
Non-current provisions
Long service leave 1,178 1,137
Total non-current provisions 1,178 1,137
Total provisions 13,631 12,681

Administered items

Administered revenues
Administered revenues 2014-15
$'000		 2013-14
$'000
Payroll tax 5,681,309 5,480,607
Duties* 6,034,735 5,240,196
Land tax 1,754,156 1,659,754
Congestion levy 110.603 83,852
Growth Areas Infrastructure Contribution 128,767 93,056
Metropolitan Planning Levy 2 -
Fire Services Property Levy 588,478 630,631
Licence fees 22,544 23,310
Total 14,320,594 13,211,406
Less: Cattle Compensation Fund (4,161) (3,414)
Less: Swine Compensation Fund (179) (163)
Less: Sheep and Goat Compensation Fund (1,404) (1,307)
Add: Unclaimed money receipts 90,825 88,328
Add: User charges 3,251 2,981
Add: Sundry income 902 912
Total administered revenues 14,409,828 13,298,743

 

* Includes Cattle Compensation Fund, Swine Compensation Fund and Sheep & Goat Compensation Fund

 

Administered expenses
Administered expenses 2014-15
$'000		 2013-14
$'000
First Home Owner Grant 98,293 121,111
First Home Bonus 5,182 43,408
Liquor subsidies 2,531 2,803
Other grants, rebates and other payments 65,320 35,320
Unclaimed money refunds 14,567 17,764
Bad and doubtful debts 25,877 39,080
Total administered expenses 211,770 259,486
Net administered revenues 14,198,058 13,039,257

Notes to administered items

  • Tax and duty revenue increased by $1,109.2 million to $14,320.6 million. This included:
    • an increase of $770.7 million in land transfer duty;
    • an increase of $94.4 million in land tax; and
    • an increase of $200.7 million in payroll tax.
  • Congestion levy rose by $26.7 million primarily due to a change in the levy rate and the introduction of category 2 levy area as from 1 January 2015.
  • The Fire Services Property Levy decreased by $42.1 million mainly due to the inclusion of 2013-14 final reconciliations in 2014-15 leading to a reduction in revenue.
  • Unclaimed money receipts represent monies transferred to the Registrar under the Unclaimed Money Act and the Gambling Regulation Act. There was an increase of $2.5 million in the 2014-15 financial year.
  • The First Home Owner Grant decreased by $22.8 million mainly due to changes to the eligibility requirements for contracts entered into on or after 1 July 2013, and a reduction in the number of applications.
  • Other grants, rebates and other payments increased by $30.0 million mainly due to an increase in ex gratia payments of $26.7 million, Duty Concessions of $2.0 million, and Interest on Tax Refunds of $1.0 million.
  • The $13.2 million decrease in bad & doubtful debts was made up of a decrease of $12.5 million in bad debts and a decrease $0.7 million in the provision for doubtful debts.