Part 5 Financial performance report and statements

Financial statements

Australian Fisheries Management Authority

for the period ended 30 June 2018

Statement by the Chief Executive Officer and the Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2018 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsections 41(2) of the PGPA Act.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Australian Fisheries Management Authority (AFMA) will be able to pay its debts as and when they fall due.

Jenny Sutherland Acting Chief Finance Officer 10 September 2018

Dr James Findlay Chief Executive Officer 10 September 2018

Australian Fisheries Management Authority

Statement of Comprehensive Income

for the period ended 30 June 2018

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

The financial statements provide a comparison of the original budget as presented in the 2017-18 Portfolio Budget Statements (PBS) to the 2017-18 final outcome as presented in accordance with Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements for the Authority. The Budget is not audited.

Variances are considered to be 'major' based on the following criteria:

• the variance between budget and actual is greater than 10%; and
• the variance between budget and actual is greater than 2% of total expenses; or
• the variance between budget and actual is below this threshold but is considered important for the reader's understanding or is relevant to an assessment of the discharge of accountability and to an analysis of performance of the Authority.

In some instances, a budget has not been provided for in the PBS, for example non-cash items such as asset revaluations, foreign exchange and sale of asset adjustments. Unless the variance is considered 'major' no explanation has been provided.

Suppliers were $1.3 million higher (8.3% higher) than the Original Budget. The key drivers included:

• higher consultancy and contractor costs ($1.1 million) primarily related to the development and commencement of the Information and Communications Technology (ICT) Strategy along with preparatory work involved in the Canberra office relocation;
• higher costs associated with the transition to the new vessel monitoring system (VMS) through an approach to market ($0.7 million); and
• offset by lower travel expenditure ($0.3 million) and occupancy expenditure ($0.2 million).

Depreciation and amortisation was $0.8 million lower (45.2% lower). The value and useful life of AFMA's assets were reassessed as part of the 2016-17 financial statement process and this has lowered this year's depreciation/amortisation expenditure significantly.

Own-source revenue was $1.1 million higher (40.4% higher) than the Original Budget. The increase was mainly the result of additional capacity building activities in the Pacific ($0.4 million), higher fee-for-service revenue for observers ($0.4 million) and for vessel monitoring services ($0.3 million).

Australian Fisheries Management Authority

Statement of Financial Position

as at 30 June 2018

The above statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Non-financial assets were $0.6 million lower (13.8% lower) than the Original Budget.

• the value and useful life of AFMA's assets were reassessed as part of the 2016-17 financial statement process and this has lowered the value of land and buildings along with property, plant and equipment assets ($0.4 million) compared to that which was budgeted;
• intangible assets were also lower than budget ($0.6 million) with asset replacement being delayed to align with the Canberra office relocation; and
• this was offset by other non-financial assets being higher ($0.4 million) due to higher accrued revenue for observers and vessel monitoring services.

Payables were $0.6 million lower (14.1% lower) than the Original Budget mainly due to lower accrued expenses and unearned revenues than estimated at Budget.

• Employee Provisions were $0.2 million lower (4.0% lower) than the Original Budget mainly as a result of:

   

  • slightly lower average staffing numbers used to estimate leave provisions; and
  • an increase in the bond rate used in the present value calculation.

  Australian Fisheries Management Authority

  Statement of Changes in Equity

  for the period ended 30 June 2018

  							2018
  							Original
  			2018		2017		Budget
  			$'000		$'000		$'000
  CONTRIBUTED EQUITY
  Opening balance
  Balance carried forward from previous period			11,734		11,122		11,735
  Transactions with owners
  Departmental capital budget			465		462		458
  Equity injection			-		150		-
  Total transactions with owners			465		612		458
  Closing balance as at 30 June			12,199		11,734		12,193
  RETAINED EARNINGS
  Opening balance
  Balance carried forward from previous period			(4,889)		(3,855)		(4,897)
  Adjusted opening balance			(4,889)		(3,855)		(4,897)
  Comprehensive income
  Deficit for the period			(900)		(1,034)		(1,808)
  Total comprehensive income			(900)		(1,034)		(1,808)
  Transfers between equity components			-		-		-
  Closing balance as at 30 June			(5,789)		(4,889)		(6,705)
  ASSET REVALUATION RESERVE
  Opening balance
  Balance carried forward from previous period			4,222		4,624		4,626
  Adjusted opening balance			4,222		4,624		4,626
  Comprehensive income
  Other comprehensive income			(20)		(402)		-
  Total comprehensive income			(20)		(402)		-
  Closing balance as at 30 June			4,202		4,222		4,626
  TOTAL EQUITY
  Opening balance
  Balance carried forward from previous period			11,067		11,891		11,464
  Adjusted opening balance			11,067		11,891		11,464
  Comprehensive income
  Surplus/(Deficit) for the period			(900)		(1,034)		(1,808)
  Other comprehensive income			(20)		(402)		-
  Total comprehensive income			(920)		(1,436)		(1,808)
  Transactions with owners
  Departmental capital budget			465		462		458
  Equity injection			-		150		-
  Total transactions with owners			465		612		458
  Closing balance as at 30 June			10,612		11,067		10,114

  The above statement should be read in conjunction with the accompanying notes.

  Accounting Policy

  Equity injections

  Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

  Budget Variances Commentary

  The closing balance of equity is $0.5 million higher (4.9% higher) than the Original Budget. The variance comprises a lower asset revaluation reserve balance ($0.4 million) offset by a lower actual operating loss for the year ($0.9 million) compared to budget.

  Australian Fisheries Management Authority

  Cash Flow Statement

  for the period ending 30 June 2018

  							2018
  							Original
  			2018		2017		Budget
  	Notes		$'000		$'000		$'000
  OPERATING ACTIVITIES
  Cash received
  Appropriations			34,350		34,244		35,313
  Sales of goods and rendering of services			3,382		4,114		3,104
  Net GST received			1,474		1,813		350
  Total cash received			39,206		40,171		38,767
  Cash used
  Employees			20,707		20,398		21,460
  Suppliers			18,300		19,893		16,916
  Net GST paid			-		-		-
  Total cash used			39,007		40,291		38,376
  Net cash from/(used by) operating activities			199		(120)		391
  INVESTING ACTIVITIES
  Cash received
  Proceeds from sales of property, plant and equipment			-		-		-
  Total cash received			-		-		-
  Cash used
  Purchase of property, plant and equipment			462		319		840
  Total cash used			462		319		840
  Net cash from/(used by) investing activities			(462)		(319)		(840)
  FINANCING ACTIVITIES
  Cash received
  Contributed equity - departmental capital budget			465		612		449
  Total cash received			465		470		449
  Net cash from/(used by) financing activities			465		612		449
  Net increase in cash held			202		173		-
  Cash and cash equivalents at the beginning of the reporting period			14,036		13,863		274
  Cash and cash equivalents at the end of the reporting period	2.1A		14,238		14,036		274

  The above statement should be read in conjunction with the accompanying notes.

  Accounting Policy

  Goods and Services Tax

  In 2017-18 AFMA grossed up GST in the Cash Flow Statement as required under Interpretation 1031 paragraph 11 and AASB 7. Comparatives have been revised accordingly.

  Budget Variances Commentary

  Investing Activities

  Total cash used was $0.4 million lower as a result of lower purchases of property, plant and equipment than estimated in the Original Budget. Purchases of such assets have been delayed to align with the Canberra office relocation planned for 2018-19.

  Australian Fisheries Management Authority

  Administered Schedule of Comprehensive Income

  for the period ended 30 June 2018

  							2018
  							Original
  			2018		2017		Budget
  	Notes		$'000		$'000		$'000
  NET COST OF SERVICES
  Expenses
  Suppliers			1,102		3,232		5,424
  Write-down and impairment of assets			-		196		-
  Total expenses			1,102		3,428		5,424
  Income
  Revenue
  Non-taxation revenue
  Fees and fines			20		491		-
  Application Fees			-		2		-
  Other revenue			16		36		-
  Total non-taxation revenue			36		529		-
  Total revenue			36		529		-
  Total income			36		529		-
  Net cost of services			(1,066)		(2,899)		(5,424)
  (Deficit)			(1,066)		(2,899)		(5,424)
  Total Comprehensive loss			(1,066)		(2,899)		(5,424)

  This schedule should be read in conjunction with the accompanying notes.

  Budget Variances Commentary

  Expenses

  Suppliers expenses were $4.3 million lower (79.7% lower) than the Original Budget. Costs for the caretaking and disposal of illegal foreign fishing vessels were lower due to lower vessel apprehensions than budgeted.

  Australian Fisheries Management Authority

  Administered Schedule of Assets and Liabilities

  as at 30 June 2018

  							2018
  							Original
  			2018		2017		Budget
  	Notes		$'000		$'000		$'000
  ASSETS
  Financial assets
  Trade and other receivables	3.1A		272		247		328
  Total financial assets			272		247		328
  Non-financial assets
  Other non-financial assets	3.2A		23		157		-
  Total non-financial assets			23		157		-
  Total assets administered on behalf of Government			295		404		328
  LIABILITIES
  Payables
  Other	3.3A		57		168		348
  Total payables			57		168		348
  Total liabilities administered on behalf of Government			57		168		348
  Net assets			238		236		(20)

  This schedule should be read in conjunction with the accompanying notes.

  Budget Variances Commentary

  Payables were $0.3 million lower due to lower accrued expenditure at year-end resulting from lower vessel apprehensions than budgeted.

  Australian Fisheries Management Authority

  Administered Reconciliation Schedule

  for the period ended 30 June 2018

  	2018		2017
  	$'000		$'000
  Opening assets less liabilities as at 1 July	236		247
  Net (cost of)/contribution by services
  Income	36		529
  Expenses	(1,102)		(3,428)
  Transfers (to)/from the Australian Government:
  Appropriation transfers from Official Public Account
  Annual appropriations	1,094		3,242
  Appropriation transfers to Official Public Account
  Transfers to OPA	(26)		(354)
  Closing assets less liabilities as at 30 June	238		236
  This schedule should be read in conjunction with the accompanying notes.

  Australian Fisheries Management Authority

  Administered Cash Flow Statement

  for the period ended 30 June 2018

  							2018
  							Original
  			2018		2017		Budget
  	Notes		$'000		$'000		$'000
  OPERATING ACTIVITIES
  Cash received
  Fees			16		38		-
  Fines			6		321		-
  Net GST received			12		13		-
  Total cash received			34		371		-
  Cash used
  Suppliers			1,079		3,259		5,424
  Total cash used			1,079		3,259		5,424
  Net cash flows from/(used by) operating activities			(1,045)		(2,888)		(5,424)
  Cash from Official Public Account
  Appropriations			1,071		3,242		5,424
  			1,071		3,242		5,424
  Cash to Official Public Account for:
  Appropriations			(26)		(354)		-
  Cash and cash equivalents at the end of the reporting period			-		-		-

  This schedule should be read in conjunction with the accompanying notes.

  Budget Variances Commentary

  Cash used by operating activities are lower than budget as a result of lower supplier expenditure as explained under the Administered Statement of Comprehensive Income.

  Australian Fisheries Management Authority

  Notes to and forming part of the financial statements

  for the period ended 30 June 2018

  Overview
  Financial performance
  Note 1.1: Expenses
  Note 1.2: Own source income and other revenue
  Note 1.3: Revenue from Government
  Accounting policies - financial performance
  Financial position
  Note 2.1: Financial assets
  Note 2.2: Non-financial assets
  Note 2.3: Payables
  Accounting policies - financial position
  Assets and liabilities administered on behalf of the Government
  Note 3.1: Administered - financial assets
  Note 3.2: Administered - non-financial assets
  Note 3.3: Administered - liabilities
  Funding
  Note 4.1: Appropriations
  Note 4.2: Special accounts
  Note 4.3: Regulatory charging summary
  Note 4.4: Net cash appropriation arrangements
  People and relationships
  Note 5.1: Employees
  Accounting policies - people and relationships
  Note 5.2: Key management personnel remuneration
  Note 5.3: Related party disclosures
  Managing uncertainty
  Note 6.1: Contingent liabilities and contingent assets
  Note 6.2: Financial instruments
  Note 6.3: Administered - financial instruments
  Accounting policies - financial instruments

  Overview

  Objectives of AFMA

  The Australian Fisheries Management Authority (AFMA) is an Australian Government controlled entity. It is a not-for-profit entity. The objectives of AFMA are to pursue the implementation of efficient and cost effective fisheries management consistent with the principles of ecologically sustainable development and maximising the net economic returns for the Australian community from the management of Australian fisheries for which the Commonwealth has legislative responsibilities.

   

  AFMA has a single outcome: Ecologically sustainable and economically efficient Commonwealth fisheries, through understanding and monitoring Australia's marine living resources and regulating and monitoring commercial fishing, including domestic licensing and deterrence of illegal foreign fishing. All of the financial information contained in these financial statements were incurred in pursuit of this outcome. The net cost of outcome delivery for 2017-18 was $36,364,000 (2016-17 was $38,470,000).

  The continued existence of AFMA in its present form and with its present programs is dependent on Government policy and on continuing appropriations by Parliament for AFMA's administration and programs.

  The activities contributing toward this outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by AFMA in its own right. Administered activities involve the management or oversight by AFMA, on behalf of the Government, of items controlled or incurred by the Government.

  Administered activities for the entity involve the caretaking and disposal of illegal foreign fishing vessels.

  Basis of Preparation of the Financial Statements

  The financial statements are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.

  The Financial Statements have been prepared in accordance with:

  (a) Financial Reporting Rule (FRR); and
  (b) Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements 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 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.

  For the preparation of the 2017-18 financial statements, accounting policies are consistent with the previous year unless otherwise stated.

  Future Accounting Standards

  The following new, amending standards or interpretations were issued by the AASB prior to the sign-off date. All other new standards, revised standards, interpretations or amending standards that were issued prior to the sign-off date and are applicable to the current reporting period did not have material effect, and are not expected to have a material effect on AFMA's financial statements.

  AFMA expects to apply AASB 16 Leases from 1 July 2019. This standard will require the net present value of payments under most operating leases to be recognised as assets and liabilities.

  Taxation

  AFMA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

  Revenues, expenses and assets and liabilities are recognised net of GST except:

  (a) where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
  (b) for receivables and payables.

  Reporting of Administered Activities

  Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the schedules of administered items and related notes.

  Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

  Administered Cash Transfers to and from the Official Public Account

  Revenue collected by AFMA for use by the Government rather than AFMA is administered revenue. Collections are transferred to the Official Public Account maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by AFMA on behalf of the Government and reported as such in the statement of cash flows in the schedule of administered items and in the administered reconciliation schedule.

  Revenue

  All administered revenues are revenues relating to ordinary activities performed by AFMA on behalf of the Australian Government. As such, administered appropriations are not revenues of AFMA, but AFMA oversees the distribution or expenditure of the funds as directed.

  Events After the Reporting Period

  There have been no significant subsequent events after the reporting period that impact on the financial statements for the year ended 30 June 2018.

  Australian Fisheries Management Authority

  Notes to and forming part of the financial statements

  for the period ended 30 June 2018

  Financial peformance

  This section analyses AFMA's financial performance for the year ended 30 June 2018. Employee related information is disclosed in the People and Relationships Section.

  Note 1.1 Expenses
  	2018		2017
  	$'000		$'000
  Note 1.1A: Suppliers
  Goods and services
  Research	3,686		3,893
  Surveillance and compliance	1,281		712
  Consultants and contractors	4,779		4,626
  Travel and meetings	1,949		1,827
  Information technology and communications	1,388		1,097
  Training and development	362		483
  Building repairs and outgoings	361		438
  General administrative	1,202		1,179
  Total goods and services	15,008		14,255
  Goods supplied	199		239
  Services rendered	14,809		14,016
  Total goods and services supplied or rendered	15,008
  Other suppliers
  Operating lease rentals in connection with
  External parties
  Minimum lease payments	2,175		2,152
  Workers compensation expenses	365		359
  Total other suppliers	2,540		2,511
  Total suppliers	17,548		16,766
  Leasing commitments
  AFMA leases office accommodation in Canberra, Darwin and Lakes Entrance. The initial lease term in Canberra is still current until 31 December 2018. The Darwin lease ended at 30 June 2018 and AFMA is currently in negotiations for extending this arrangement.
  Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
  Within 1 year	1,010		416
  Between 1 to 5 years	70		3,117
  Total operating lease commitments	1,080		3,533
  Note 1.1B: Write-Down and Impairment of Assets
  Asset write-downs and impairments from:
  Bad and doubtful debt expense	-		64
  Write-down and Impairment of Assets	(9)		71
  Other	19		27
  Total write-down and impairment of assets	10		162
  Note 1.2 Own Source Income and Gains
  	2018		2017
  	$'000		$'000
  Note 1.2A: Sale of Goods and Rendering of Services
  Rendering of services	3,104		2,616
  Total sale of goods and rendering of services	3,104		2,616
  Note 1.2B: Rental Income
  Operating lease:
  Sublease - Canberra office	536		465
  Sublease - Thursday Island office	75		140
  Employee car parking	85		119
  Total rental income	696		724
  Leasing commitments receivable
  AFMA in its capacity as a lessor sub-leases office accommodation on Thursday Island and in Canberra. All commitments are GST exclusive.
  Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows:
  Within 1 year	384		485
  Between 1 to 5 years	589		248
  Total sub-lease commitments receivable	973		733
  Note 1.2C: Interest
  Interest	38		-
  Total interest	38		-
  Note 1.3 Revenue from Government
  	2018		2017
  	$'000		$'000
  Note 1.3A: Revenue from Government
  Appropriations:
  Departmental appropriation	20,049		20,310
  Special Appropriation (Levies and licensing charges)1	14,349		14,227
  Total revenue from Government	34,398		34,537
  1 Special appropriations comprise amounts deposited to Consolidated Revenue for AFMA's levies and licensing charges that were credited to the AFMA Special Account in accordance with s94C of the Fisheries Administration Act 1991.

  Accounting Policies - Departmental Financial Performance

  Revenue

  Revenue from the sale of goods is recognised when:

  (a) the risks and rewards of ownership have been transferred to the buyer;
  (b) AFMA retains no managerial involvement or effective control over the goods;
  (c) the revenue and transaction costs incurred can be reliably measured; and
  (d) it is probable that the economic benefits associated with the transaction will flow to AFMA.

  Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
  (a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
  (b) the probable economic benefits associated with the transaction will flow to AFMA.

  The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

  Revenue from Government

  Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when AFMA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

  Other Revenue

  Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

  Resources received free of charge are recorded as either revenue or gains depending on their nature.

  Leases

  A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

  The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

  Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

  Financial position
  This section analyses AFMA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships Section."
  Note 2.1 Financial assets
  	2018		2017
  	$'000		$'000
  Note 2.1A: Cash and Cash Equivalents
  Cash in special accounts	13,938		13,618
  Cash on hand or on deposit	300		418
  Total cash and cash equivalents	14,238		14,036
  Note 2.1B: Trade and Other Receivables
  Good and services receivables
  Goods and Services	404		289
  Total goods and services receivables	404		289
  Appropriations receivables
  Departmental Capital Budget	513		465
  Total appropriations receivables	513		465
  Other receivables
  GST receivable from the Australian Taxation Office	316		336
  Total other receivables	316		336
  Total trade and other receivables (gross)	1,233		1,090
  Less impairment allowance
  Goods and services	-		(64)
  Total impairment allowance	-		(64)
  Total trade and other receivables (net)	1,233		1,026
  Trade and other receivables (net) expected to be recovered
  No more than 12 months	1,233		1,026
  Total trade and other receivables (net)	1,233		1,026
  Credit terms for Goods and Services were within 30 days for 2018 (2017: 30 days)
  Reconciliation of the Impairment Allowance:	2018		2017
  	Goods and services		Goods and services
  	$'000		$'000
  Opening balance	64		-
  Decrease recognised in net surplus	(64)		64
  Closing balance	-		64
  Note 2.1C Assets Held in Trust
  Monetary assets
  Financial assets held in trust are also disclosed in Note 4.2: Special Accounts in the table titled AFMA Service for Other Entities and Trust Monies.
  	2018		2017
  	$'000		$'000
  Cash at bank - monetary asset
  As at 1 July	-		36
  Receipts	255		304
  Payments	(1)		(340)
  As at 30 June	254		-
  The values above were estimated fair values at the time when acquired.

  Note 2.2: Non-financial assets
  Note 2.2A: Reconciliation of the Opening and Closing Balances of Land and Buildings, Property, Plant and Equipment and Intangibles for 2018
  	Land	Buildings	Leasehold Improvements	Total land and buildings	Property, plant and equipment	Computer software internally developed	Computer software purchased	Total intangibles	Total
  	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
  As at 1 July 2017
  Gross book value	975	900	629	2,504	652	4,331	1,784	6,115	9,271
  Accumulated depreciation, amortisation and impairment	-	-	(12)	(12)	(11)	(3,861)	(1,702)	(5,563)	(5,586)
  Net book value 1 July 2017	975	900	617	2,492	641	470	82	552	3,685
  Additions:
  By purchase	-	-	16	16	258	62	126	188	462
  Revaluations and impairments recognised in other comprehensive income	-	-	-	-	(20)	-	-	-	(20)
  Depreciation and amortisation expense	-	(26)	(307)	(333)	(307)	(305)	(46)	(351)	(991)
  Disposals	-	-	-	-	(28)	-	-	-	(28)
  Accumulated amortisation of disposed assets	-	-	-	-	34	-	-	-	34
  Net book value 30 June 2018	975	874	326	2,175	578	227	162	389	3,142
  Net book value as of 30 June 2018 represented by:
  Gross book value	975	900	645	2,520	862	4,393	1,910	6,303	9,685
  Accumulated depreciation, amortisation and impairment	-	(26)	(319)	(345)	(284)	(4,166)	(1,748)	(5,914)	(6,543)
  Total as at 30 June 2018	975	874	326	2,175	578	227	162	389	3,142
  Note 2.2A: Reconciliation of the Opening and Closing Balances of Land and Buildings, Property, Plant and Equipment and Intangibles for 2017
  	Land	Buildings	Leasehold Improvements	Total land and buildings	Property, plant & equipment	Computer software internally developed	Computer software purchased	Total intangibles	Total
  	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
  As at 1 July 2016
  Gross book value	1,075	950	3,361	5,386	1,809	4,331	1,707	6,038	13,233
  Accumulated depreciation, amortisation and impairment	-	(63)	(1,753)	(1,816)	(975)	(3,556)	(1,395)	(4,951)	(7,742)
  Net book value 1 July 2016	1,075	887	1,608	3,570	834	775	312	1,087	5,491
  Additions:
  By purchase	-	-	-	-	256	-	63	63	319
  Reclassification of assets				-				-	-
  Revaluations and impairments recognised in other comprehensive income	(100)	43	(340)	(397)	(19)	-	14	14	(402)
  Impairments recognised in the operating result	-	-	(12)	(12)	(7)	-	(14)	(14)	(33)
  Depreciation and amortisation expense	-	(30)	(630)	(660)	(391)	(305)	(295)	(600)	(1,651)
  Other movements						-	-	-	-
  Disposals	-	-	-	-	(78)	-	-	-	(78)
  Accumulated amortisation of disposed assets	-	-	(9)	(9)	46	-	2	2	39
  Net book value 30 June 2017	975	900	617	2,492	641	470	82	552	3,685
  Net book value as of 30 June 2017 represented by:
  Gross book value	975	900	629	2,504	652	4,331	1,784	6,115	9,271
  Accumulated depreciation, amortisation and impairment	-	-	(12)	(12)	(11)	(3,861)	(1,702)	(5,563)	(5,586)
  Total as at 30 June 2017	975	900	617	2,492	641	470	82	552	3,685

  	2018		2017
  	$'000		$'000
  Note 2.2B Other Non-Financial Assets
  Prepayments	235		698
  Accrued revenue	429		332
  Total other non-financial assets	664		1,030
  No indicators of impairment were found for other non-financial assets.
  All other non-financial assets are expected to be recovered within the next 12 months.
  Note 2.3 Payables
  	2018		2017
  	$'000		$'000
  Note 2.3A: Suppliers
  Trade creditors and accruals	2		2
  Total supplier payables	2		2
  Settlement is usually made within 30 days.
  Note 2.3B: Other Payables
  Accrued expenses	2,628		1,892
  Lease incentives	10		31
  Operating lease rentals	154		435
  Wages and salaries	169		164
  Unearned revenue	620		1,022
  Total other payables	3,581		3,544
  Total other payables are expected to be settled in:
  No more than 12 months	3,417		3,099
  More than 12 months	164		445
  Total other payables	3,581		3,544

  Accounting policies - financial position

  Cash

  Cash is recognised at its nominal amount. Cash and cash equivalents includes:

  (a) cash on hand;

  (b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value;

  (c) cash held by outsiders; and

  (d) cash in special accounts.

  Financial Assets

  Please refer to Note 6 Managing Uncertainty for accounting policies for financial assets.

  Receivables

  Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of reporting period. Allowances are made when collectability of the debt is no longer probable.

  Acquisition of Assets

  Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

  Property, Plant and Equipment

  Asset Recognition Threshold:

  Purchases of property, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

  The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions. AFMA does not have any material make good requirements.

  Revaluations

  Following initial recognition at cost, property, plant and equipment were carried at fair value. Valuations were conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets' fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

  Revaluation adjustments were made on a class basis. Any revaluation increment was credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets were recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

  Any accumulated depreciation as at the revaluation date was eliminated against the gross carrying amount of the asset and the asset was restated to the revalued amount.

  Depreciation

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

  Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

  Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

  	2018		2017
  Buildings on freehold land	40 to 45 years		40 to 45 years
  Leasehold improvements	Lease term		Lease term
  Plant and Equipment	4 to 13 years		4 to 13 years

  Impairment

  All assets were assessed for impairment at 30 June 2018. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount.

  The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if AFMA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

  Derecognition

  An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

  Intangibles

  AFMA's intangibles comprise purchased and internally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

  Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of AFMA's software assets are 3 to 10 years (2017: 3 to 10 years).

  All software assets were assessed for indications of impairment as at 30 June 2018.

  Fair Value Measurement

  AFMA deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period. No transfers between levels occurred during 2017-18.

  Significant Accounting Judgements and Estimates

  In the process of applying the accounting policies listed in this note, AFMA has made judgements that have the most significant impact on the amounts recorded in the financial statements with respect to the fair value of land and buildings. The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer. In some instances, entity buildings are purpose-built and may in fact realise more or less in the market.

  No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

  Financial Liabilities

  Please refer to Note 6 Managing Uncertainty for accounting policies for financial liabilities.

  Australian Fisheries Management Authority

  Notes to the schedule of administered items

  for the period ended 30 June 2018

  Assets and liabilities administered on behalf of the Government
  This section analyses assets used to conduct operations and the operating liabilities incurred as a result AFMA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.
  Note 3.1 Financial Assets
  	2018		2017
  	$'000		$'000
  Note 3.1A: Trade and Other Receivables
  Fees and charges
  Fees and charges receivable - external parties	511		560
  Total fees and charges receivable	511		560
  Other receivables
  GST receivable from Australian Taxation Office	36		25
  Total other receivables	36		25
  Total trade and other receivables (gross)	547		585
  Less impairment allowance
  Fees and charges	(275)		(338)
  Total impairment allowance account	(275)		(338)
  Total trade and other receivables (net)	272		247
  Receivables are expected to be recovered within 12 months.
  Receivables were aged as follows
  Not overdue	36		213
  Overdue by:
  More than 90 days	511		372
  Total receivables (gross)	547		585
  Impairment allowance aged as follows
  Overdue by:
  More than 90 days	(275)		(338)
  Total impairment allowance	(275)		(338)
  Credit terms for goods and services were within 30 days (2017: 30 days).
  Reconciliation of the Impairment Allowance	2018		2017
  	Fees and charges		Fees and charges
  	$'000		$'000
  Opening balance	(338)		(430)
  Amounts written off	63		(104)
  Movement recognised in net surplus	-		196
  Closing balance	(275)		(338)
  	2018		2017
  	$'000		$'000
  Note 3.2A: Other Non-Financial Assets
  Other non-financial assets	23		157
  Total other non-financial assets	23		157
  Note 3.3 Administered - Liabilities
  	2018		2017
  	$'000		$'000
  Note 3.3A: Suppliers
  Trade creditors and accruals	23		157
  GST payable	34		11
  Total suppliers	57		168
  Suppliers expected to be settled
  No more than 12 months	57		168
  Total suppliers	57		168

  Australian Fisheries Management Authority

  Notes to and forming part of the financial statements

  for the period ending 30 June 2018

  Funding
  This section identifies AFMA's funding structure.
  Note 4.1 Appropriations
  Note 4.1A: Annual Appropriations ('Recoverable GST exclusive')
  Annual Appropriations for 2018
  			Annual Appropriation	Adjustments to appropriation	Total appropriation	Appropriation applied in 2018 (current and prior years)	Variance1
  			$'000	$'000	$'000	$'000	$'000
  Departmental
  Ordinary annual services			20,049	-	20,049	20,049	-
  Departmental Capital Budget2			465	-	465	417	48
  Equity injections			-	-	-	-	-
  Total departmental			20,514	-	20,514	20,466	48
  Administered
  Ordinary annual services
  Administered items1			5,424	-	5,424	1,070	4,354
  Total administered			5,424	-	5,424	1,070	4,354

  Notes:

  1. The variance of $4,354,000 for Administered funds remained as unspent and will be returned to consolidated revenue.

  2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts.

  Annual Appropriations for 2017
  			Annual Appropriation	Adjustments to appropriation	Total appropriation	Appropriation applied in 2017 (current and prior years)	Variance1
  			$'000	$'000	$'000	$'000	$'000
  Departmental
  Ordinary annual services			20,310	-	20,310	20,310	-
  Departmental Capital Budget2			462	-	462	318	144
  Other Services
  Equity injections			150	-	150	-	150
  Total departmental			20,922	-	20,922	20,628	294
  Administered
  Ordinary annual services
  Administered items			5,354	-	5,354	3,085	2,269
  Total administered			5,354	-	5,354	3,085	2,269
  Notes:
  1. The variance of $2,269,000 for Administered funds remained as unspent and was returned to consolidated revenue.
  2. Departmental Capital Budgets are appropriated through Appropriation Acts (No 1, 3, 5). They form part of ordinary annual services and are not separately identified in the Appropriation Acts.
  Note 4.1B: Unspent Annual Appropriations ('Recoverable GST exclusive')
  						2018	2017
  						$'000	$'000
  Departmental
  Cash and Cash equivalents						300	418
  Appropriation Act (No. 1) 2017-18 (Capital Budget - DCB) - Non Operating						48	-
  Supply Act (No.1) 2016-2017 (Capital Budget - DCB) - Non Operating						144	144
  Appropriation Act (No. 2) 2016-17 - Equity Injections						150	150
  Appropriation Act (No. 1) 2015-16 (Capital Budget - DCB) - Non Operating						171	171
  Total departmental						813	883
  Administered
  Appropriation Act (No. 1) 2016-17						4,354	2,269
  Total administered						4,354	2,269
  Note 4.1C: Special Appropriations ('Recoverable GST exclusive')
  					Appropriation applied
  						2018	2017
  Authority			Type	Purpose		$'000	$'000
  Fisheries Administration Act 1991; Section 94C, Departmental			Unlimited Amount	To provide an appropriation for adjusted levy amounts and other receipts specified by s94C of the Fisheries Administration Act 1991		14,349	14,227
  Total						14,349	14,227
  Note 4.2: Special Accounts
  				AFMA Special Account (Departmental)1		AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money)2
  				2018	2017	2018	2017
  				$'000	$'000	$'000	$'000
  Balance brought forward from previous period				14,036	13,863	-	36
  Increases:
  Appropriation for reporting period				20,466	20,629	-	-
  Special appropriation (Fisheries Administration Act 1991 - Section 94C)				14,349	14,227	-	-
  Other receipts				4,856	3,931	255	304
  Total increases				39,671	38,787	255	340
  Decreases:
  Employee payments				(20,707)	(20,398)	-	-
  Supplier payments				(18,299)	(17,897)	-	-
  Purchase of property, plant and equipment				(462)	(319)	-	-
  Repayments debited from the special account				-	-	(1)	(340)
  Total decrease				(39,468)	(38,614)	(1)	(340)
  Total balance carried to the next period/td>				14,239	14,036	254	-

  Balance represented by:

  1. Appropriation: Public Governance, Performance and Accountability Act 2013; section 80.

  Establishing Instrument: Fisheries Administration Act 1991; section 94B.

  Purpose: Payment or discharge of the costs, expenses or other obligations incurred in the performance or exercise of the functions and powers of the Authority.

  2. Appropriation: AFMA Services for Other Entities and Trust Moneys Special Account (Special Public Money)

  Establishing Instrument: Public Governance, Performance and Accountability Act 2013; section 78.

  Purpose: For amounts that are held on trust or otherwise for the benefit of a person other than the Commonwealth.

  Australian Fisheries Management Authority

  Notes to and forming part of the financial statements

  for the period ending 30 June 2018

  People and relationships
  This section provides a range of employment and post employment benefits provided to our people and our relationships with other key people.
  Note 5.1 Employees
  	2018		2017
  	$'000		$'000
  Note 5.1A Employee benefits
  Wages and salaries	16,089		15,973
  Superannuation:
  Defined contribution plans	1,819		1,794
  Defined benefit plans	1,111		1,137
  Leave and other entitlements	1,611		1,471
  Total employee benefits	20,630		20,375
  Note 5.1B: Employee Provisions
  Leave	5,082		5,164
  Total employee provisions	5,082		5,164
  Employee provisions are expected to be settled in:
  No more than 12 months	3,777		3,823
  More than 12 months	1,305		1,341
  Total employee provisions	5,082		5,164

  Accounting Policies - People and Relationships

  Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits wholly settled due within twelve months of end of reporting period are measured at their nominal amounts.

  The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

  Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

  Leave

  The liability for employee benefits includes provision for annual leave and long service leave.

  The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including AFMA's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

  Superannuation

  Staff of AFMA are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap).

  The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

  The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.

  AFMA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.

  Significant Accounting Judgements and Estimates

  In the process of applying the accounting policies listed in this note, AFMA has made the judgements that have the most significant impact on the amounts recorded in the financial statements with respect to the liability for employee provisions. The liability for long service leave has been estimated using present value techniques in accordance with the shorthand method as per FRR 24.1 (a). This takes into account expected salary growth, attrition and future discounting using Commonwealth bond rates.

  No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

  Note 5.2: Key Management Personnel Remuneration

  Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity. AFMA has determined the key management personnel to be Commissioners and Executive Officers. Key management personnel remuneration is reported in the table below:

  	2018		2017
  	$		$
  Salary and other allowances	1,319,586		1,245,817
  Post-employment benefits	222,245		213,466
  Other long-term benefits	116,352		112,088
  Total key management personnel remuneration expenses¹	1,658,183		1,571,371
  The total number of key management personnel that are included in the above table are:	10		10

  ¹The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

  Note 5.3: Related Party Disclosures

  Related party relationships

  The entity is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel including the Portfolio Minister and Executive, and other Australian Government entities.

  Transactions with related parties:

  Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

  Significant transactions with related parties can include:

  • the payments of grants or loans;
  • purchases of goods and services;
  • asset purchases, sales transfers or leases;
  • debts forgiven; and
  • guarantees.

  Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.

  Australian Fisheries Management Authority

  Notes to and forming part of the financial statements

  for the period ending 30 June 2018

  Managing Uncertainty
  This section analyses how AFMA manages financial risks within its operating environment.
  Note 6.1 Contingent Liabilities and Contingent Assets
  AFMA is negotiating payment of an award of 'party to party' costs associated with a Federal Court case in which AFMA was involved. The costs are not currently quantifiable but are not expected to be material.
  Note 6.2 Financial Instruments
  	2018		2017
  	$'000		$'000
  Note 6.2A Categories of Financial Instruments
  Financial Assets
  Loans and receivables
  Cash and cash equivalents	14,238		14,036
  Receivables for goods and services	404		289
  Total financial assets	14,642		14,325
  Financial Liabilities
  Financial liabilities measured at amortised cost
  Trade creditors	2		2
  Total financial liabilities	2		2
  Note 6.2B Fair Value of Financial Instruments
  The fair value of financial instruments approximates their carrying amounts.
  Note 6.3 Administered Financial Instruments
  	2018		2017
  	$'000		$'000
  Note 6.3A Categories of Financial Instruments
  Financial Assets
  Loans and Receivables
  Cash and cash equivalents	-		-
  Receivables for fees and charges	236		222
  Carrying amount of financial assets	236		222
  Financial Liabilities
  Financial liabilities measured at amortised cost
  Trade creditors	23		157
  Carrying amount of financial liabilities	23		157
  The fair value of financial instruments approximates their carrying amounts.

  Accounting Policies - Financial Instruments

  Financial Assets

  AFMA classifies its financial assets as loans and receivables:

  The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.

  Effective Interest Method

  The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period.

  Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

  Receivables

  Trade receivables and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'receivables'. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

  Impairment of Financial Assets

  Financial assets are assessed for impairment at the end of each reporting period.

  Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for loans and receivables or held to maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

  Financial assets held at cost - if there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

  Financial Liabilities

  Financial liabilities are classified as either financial liabilities or other financial liabilities.

  Financial liabilities are recognised and derecognised upon 'trade date'.

  Other Financial Liabilities

  Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

  Contingent Liabilities and Contingent Assets

  Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.