Department of Sustainability, Environment, Water, Population and Communities

Settlement was usually made within 30 days.

Note 6B: Grants
Public sector:
Australian Government entities (related entities)	1,331		-
State and Territory Governments	797		385
Local Governments	210		-
Private sector:
Non-profit organisations	1,453		1,713
Individuals	-		-
Other	196		110
Universities	9		-
Total grants	3,996		2,208
Total grants are expected to be settled in:
No more than 12 months	3,996		2,208
Total grants	3,996		2,208

Settlement was usually made according to the terms and conditions of each grant. This was usually within 30 days of performance or eligibility.

Note 6C: Other Payables
GST payable to OPA	244		2,424
Total other payables	244		2,424
Total other payables are expected to be settled in:
No more than 12 months	244		2,424
Total other payables	244		2,424

Cash Flow Reconciliation

	2013		2012
	$'000		$'000
Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Cash and cash equivalents as per:
Cash flow statement	-		-
Balance sheet	-		-
Difference	-		-
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services	(151,438)		(177,338)
Add revenue from Government	149,017		172,763
Changes in assets / liabilities
(Increase) / decrease in net receivables	4,603		12,108
(Increase) / decrease in other financial asset	-		-
Increase / (decrease) in supplier payables	(1,790)		2,260
Increase / (decrease) in grants payable	1,788		(9,186)
Increase / (decrease) in other payables	(2,180)		(607)
Net cash from (used by) operating activities	-		-

Contingent Assets and Liabilities

Quantifiable Contingencies

There are no quantifiable contingencies in either the current or the immediately preceding reporting period, therefore there is no Schedule for such items.

Unquantifiable Contingencies

There are no unquantifiable contingencies in either the current or immediate preceding reporting period.

Significant Remote Contingencies

There are no remote contingencies in either the current or immediate preceding reporting period.

Remuneration of Auditors

	2013		2012
	$'000		$'000
Financial statement audit services were provided free of charge to the Trust by the Australian National Audit Office (ANAO).
Fair value of the services provided
Financial statement audit services	65		65
	65		65

No other services were provided by the auditors of the financial statements.
Financial Instruments

	2013		2012
	$'000		$'000
Note 10A: Categories of Financial Instruments
Financial Assets
Loans and receivables:
Grants and other receivables	106		65
Total	106		65
Carrying amount of financial assets	106		65
Financial Liabilities
At amortised cost:
Trade creditors and accruals	946		2,736
Grant payables	3,996		2,208
Total	4,942		4,944
Carrying amount of financial liabilities	4,942		4,944

Note 10B: Net Income and Expense from Financial Assets
Loans and receivables
Impairment	42		197
Net loss from loans and receivables	42		197
Net loss from financial assets	42		197

The Trust did not have any income and expenses from financial liabilities (2012: Nil).

Note 10C: Fair Value of Financial Instruments
The fair value of all financial assets and liabilities approximate their carrying amounts.

Note 10D: Credit Risk
The Trust was exposed to minimal credit risk as loans and receivables were cash, grants and other receivables. The maximum exposure to credit risk was the risk that arises from potential default of a debtor. This amount was equal to the total amount of grants and other receivables (2013: $152,000 and 2012: $65,000). The Trust had assessed the risk of the default on payment and had allocated $46,000 in 2013 (2012: $0) to an impairment allowance account. The Trust managed its credit risk by undertaking background and credit checks prior to allowing a debtor relationship. The Trust held no collateral to mitigate against credit risk. In addition, the Trust had policies and procedures that guided employees on debt recovery techniques that were to be applied.
The following table illustrates the Trust's gross exposure to credit risk, excluding any collateral or credit enhancements.
				2013	2012
				$'000	$'000
Financial assets
Grants and other receivables				106	65
Total				106	65
Credit quality of financial instruments not past due or individually determined as impaired
		Not past due nor impaired	Not past due nor impaired	Past due or impaired	Past due or impaired
		2013	2012	2013	2012
		$'000	$'000	$'000	$'000
Grants and other receivables		45	13	61	52
Total		45	13	61	52
Ageing of financial assets that were past due but not impaired for 2013
	0 to 30	31 to 60	61 to 90	90+
	days	days	days	days	Total
	$'000	$'000	$'000	$'000	$'000
Grants and other receivables	25	-	-	36	61
Total	25	-	-	36	61
Ageing of financial assets that were past due but not impaired for 2012
	0 to 30	31 to 60	61 to 90	90+
	days	days	days	days	Total
	$'000	$'000	$'000	$'000	$'000
Grants and other receivables	6	-	-	46	52
Total	6	-	-	46	52

Note 10E: Liquidity Risk
The Trust’s financial liabilities were trade creditors, accruals and grants payables. The exposure to liquidity risk was based on the notion that the Trust will encounter difficulty in meeting its obligations associated with financial liabilities. This was highly unlikely as the Trust is appropriated funding from the Australian Government and the Trust managed its budgeted funds to ensure it has adequate funds to meet payments as they fall due. In addition, the Trust had policies in place to ensure timely payments were made when due and has no past experience of default.
Maturities for non-derivative financial liabilities 2013
	Within 1
	year	Total
	$'000	$'000
Trade creditors and accruals	946	946
Grant payables	3,996	3,996
Total	4,942	4,942
Maturities for non-derivative financial liabilities 2012
	Within 1
	year	Total
	$'000	$'000
Trade creditors and accruals	2,736	2,736
Grant payables	2,208	2,208
Total	4,944	4,944

Note 10F: Market Risk
The Trust held basic financial instruments that did not expose the Trust to certain market risks, such as 'Currency risk', 'Interest rate risk' and 'Other price risk'.

Financial Assets Reconciliation

		2013		2012
		$'000		$'000
Financial assets	Notes
Total financial assets as per balance sheet		397,490		402,093
Less: non-financial instrument components
Appropriation receivables	5B	386,598		385,868
GST receivable from the ATO	5B	155		2,655
Interest receivable	5B	10,631		13,505
Total non-financial instrument components		397,384		402,028
Total financial assets as per financial instruments note	10A	106		65

Special Accounts

Note 12A: Compliance with Statutory Conditions for Payments from the Consolidated Revenue Fund

Section 83 of the Constitution provides that no amount may be paid out of the Consolidated Revenue Fund except under an appropriation made by law. The Department of Finance and Deregulation (DoFD) provided information to all agencies in 2011 regarding the need for risk assessments in relation to compliance with statutory conditions on payments from special appropriations, including special accounts.

The Trust had a plan to review exposure to risks of not complying with section 83 of the Constitution. The plan involved determining the risk of non-compliance by assessing the difficulty of administering the statutory conditions required for the payments and assessing the extent to which the existing payment systems and processes satisfy those conditions.

As at 30 June 2013 this work had been completed in respect of the Natural Heritage Trust of Australia Special Account. No issues of non-compliance with Section 83 were identified.

In 2012-13, following the receipt of additional legal advice, DoFD advised all agencies that there could be breaches of Section 83 under certain circumstances with the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 and with payments made under the Remuneration Tribunal Act 1973 and the Long Service Leave (Commonwealth employees) Act 1976.

The Trust has reviewed its processes and controls over the management of Goods and Services Tax payments made pursuant to the Financial Management and Accountability Act 1997 to minimise the possibility for future breaches as a result of these payments. The Trust has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the Trust. The Trust is not aware of any specific breaches of Section 83 in respect of these items. The Trust does not make any payments under the Remuneration Tribunal Act 1973 or the Long Service Leave (Commonwealth employees) Act 1976.

Note 12B: Special Accounts ('Recoverable GST exclusive')
	NHT Account^1
	2013	2012
	$'000	$'000
Balance brought forward from previous period	385,868	391,885
Increases:
Amounts credited under section 6(2) of the NHT Act 1997	13,505	18,615
Amounts credited under section 23 of the NHT Act 1997	149,017	172,763
Other receipts	292	824
Total increases	162,814	192,202
Available for payments	548,682	584,087
Decreases:
Administered
Payments made - suppliers	(47,953)	(47,232)
Payments made - grants	(113,972)	(150,972)
Payments made - other	(159)	(15)
Total administered decreases	(162,084)	(198,219)
Total decreases	(162,084)	(198,219)
Total balance carried to the next period	386,598	385,868

1. 
   Appropriation: Financial Management and Accountability Act 1997 section 21.
   

Establishing Instrument: Natural Heritage Trust of Australia Act 1997 section 4.

Purpose: The purposes of the reserves are as follows:

1. 
   the National Vegetation initiative;
   
2. 
   the Murray-Darling 2001 Project;
   
3. 
   the National Land and Water Resources Audit;
   
4. 
   the National Reserve System;
   
5. 
   the Coasts and Clean Seas Initiative;
   
6. 
   environmental protection (as defined by section 15 of the Act);
   
7. 
   supporting sustainable agriculture (as defined by section 16 of the Act);
   
8. 
   natural resources management (as defined by section 17 of the Act);
   
9. 
   a purpose incidental or ancillary to any of the above purposes;
   
10. 
    the making of grants of financial assistance for any of the above purposes; and
    
11. 
    an accounting transfer purpose (as defined by section 18 of the Act).
    

In accordance with section 42 of the Natural Heritage Trust of Australia Act 1997, the Trust has ensured that the balance of the account has not fallen below the base amount.

Compensation and Debt Relief

	2013		2012
	$		$
No ‘Act of Grace payments' were expensed during the reporting period (2012: No expenses).	-		-
No waivers of amounts owing to the Australian Government were made pursuant to subsection 34(1) of the Financial Management and Accountability Act 1997 (2012: No waivers).	-		-
No payments were provided under the Compensation for Detriment caused by Defective Administration (CDDA) Scheme during the reporting period (2012: No payments).	-		-
No ex-gratia payments were provided for during the reporting period (2012: No payments).	-		-
No payments were provided in special circumstances relating to APS employment pursuant to section 73 of the Public Service Act 1999 (PS Act) during the reporting period (2012: No payments).	-		-

Reporting of Outcomes

The Trust's Income, Expenses, Assets and Liabilities are part of the Department of Sustainability, Environment, Water, Population and Communities Outcome