NB: Commitments are GST inclusive where relevant.
Table of Contents - Notes
Note 1:
Summary of Significant Accounting Policies
Note 2: Events After the Reporting Period
Note 3: Expenses
Note 4: Income
Note 5: Financial Assets
Note 6: Non-Financial Assets
Note 7: Payables
Note 8: Interest Bearing Liabilities
Note 9: Provisions
Note 10: Restructuring
Note 11: Cash Flow Reconciliation
Note 12: Contingent Assets and Liabilities
Note 13: Related Party Disclosures
Note 14: Senior Executive Remuneration
Note 15: Remuneration of Auditors
Note 16: Financial Instruments
Note 17: Financial Assets Reconciliation
Note 18: Administered – Expenses
Note 19: Administered – Income
Note 20: Administered – Financial Assets
Note 21: Administered – Non-Financial Assets
Note 22: Administered – Payables
Note 23: Administered – Cash Flow Reconciliation
Note 24: Administered – Contingent Assets and Liabilities
Note 25: Administered – Investments
Note 26: Administered – Financial Instruments
Note 27: Administered Financial Assets Reconciliation
Note 28: Appropriations
Note 29: Special Accounts
Note 30: Compensation and Debt Relief
Note 31: Reporting of Outcomes
Note 32: Cost Recovery
Note 33: Net Cash Appropriation Arrangements
Summary of Significant Accounting Policies
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Objectives of the Department of Sustainability, Environment, Water, Population and Communities
The Department of Sustainability, Environment, Water, Population and Communities (DSEWPaC / the Department) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the Department is to provide leadership on environment, water, heritage and sustainability
matters with a national focus, or matters that are the direct responsibility of the Australian Government. The Department is also responsible for advancing Australia’s interests in the Antarctic, and supporting the Government’s sustainable population strategy.
The Department is structured to meet the following outcomes:
Outcome 1:
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The conservation and protection of Australia's terrestrial and marine biodiversity and ecosystems through supporting research, developing information, supporting natural resource management, and establishing and managing Commonwealth protected areas.
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Outcome 2:
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Improved sustainability of Australia's population, communities and environment through coordination and development of sustainable population and communities policies, and the reduction and regulation of waste, pollutants and hazardous substances.
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Outcome 3:
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Advancement of Australia's strategic, scientific, environmental and economic interests in the Antarctic by protecting, administering and researching the region.
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Outcome 4:
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Adaptation to climate change, wise water use, secure water supplies and improved health of rivers, waterways and freshwater ecosystems by supporting research, and reforming the management and use of water resources.
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Outcome 5:
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Increased protection, awareness and appreciation of Australia's environment and heritage through regulating matters of national environmental significance and the identification, conservation and celebration of natural, indigenous and historic places of national and World Heritage significance.
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Outcome 6:
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Protection and restoration of environmental assets through the management and use of Commonwealth environmental water.
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The continued existence of the Department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the Department’s administration and programs.
The Department’s activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the Department in its own right. Administered activities involve the management or oversight by the Department, on behalf of the Government, of items controlled or incurred by the Government.
The Department’s activities are identified under ten Programs. The relationship of Programs to Outcomes is as follows:
Outcome 1
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Program 1.1:
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Sustainable Management of Natural Resources and the Environment
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Program 1.2:
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Environmental Information and Research
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Program 1.3:
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Carbon Pollution Reduction – Land Sector Initiatives
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Outcome 2
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Program 2.1:
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Management of Hazardous Wastes, Substances and Pollutants
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Program 2.2:
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Sustainable Communities
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Outcome 3
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Program 3.1:
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Antarctica: Science, Policy and Presence
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Outcome 4
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Program 4.1:
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Water Reform
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Outcome 5
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Program 5.1:
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Conservation of Australia’s Heritage and Environment
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Program 5.2:
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Environmental Regulation
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Outcome 6
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Program 6.1:
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Commonwealth Environmental Water
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Basis of Preparation of the Financial Statements
The financial statements are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997.
The financial statements have been prepared in accordance with:
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Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
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Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the balance sheet when and only when it is probable that future economic benefits will flow to the Department or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies.
Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
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Significant Accounting Judgements and Estimates
In the process of applying the accounting policies listed in this note, the Department has made the following estimates and judgements that have the most significant impact on the amounts recorded in the financial statements:
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The estimated values for the Antarctic and Sub-Antarctic related restoration obligations and related assets have been arrived at on a reasonableness basis. Further details on the valuation methodology are provided at Note 1.20.
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Water entitlements are carried at cost where there is no active market. When an active market exists they are carried at fair value. Refer to Note 1.24, Water Entitlements, for further information.
No other accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next reporting period.
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