1.3 Significant Accounting Judgements and Estimates

No 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 accounting period.

1.4 Statement of Compliance

Australian Accounting Standards require a statement of compliance with International Financial Reporting Standards (IFRSs) to be made where the financial report complies with these standards. Some Australian equivalents to IFRSs and other Australian Accounting Standards contain requirements specific to not for profit entities that are inconsistent with IFRS requirements. The Court is a not for profit entity and has applied these requirements, so while this financial report complies with Australian Accounting Standards including Australian Equivalents to International Financial Reporting Standards (AEIFRSs) it cannot make this statement.

No accounting standard has been adopted earlier than the effective date in the current period.

1.5 Revenue

The revenues described in this note and Note 1.22 are revenues relating to the core operating activities of the Court, whether in its own right or on behalf of the Commonwealth. Details of revenue amounts are given in Note 2 and Note 14.

Revenues from Government

Amounts appropriated for departmental outputs appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue, 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 Types of Revenue

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:

^•   amount of revenue, stage of completion and transaction costs incurred can
be reliably measured; and

^•   probable economic benefits with the transaction have flowed to the Court.

Receivables for services are recognised at the nominal amounts due less any provision for bad and doubtful debts. Debts are reviewed at balance date. Provision is made when collection of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139.

1.6 Gains

Resources Received Free of Charge

Resource 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 these resources is recognised as an expense.

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another Government Agency or Authority as a consequence of a restructure of administrative arrangements.

Sale of Assets

Gains from disposal of non-current assets are recognised when control of the asset has passed to the buyer.

1.7 Transactions with the Government as Owner

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) are recognised directly in Contributed Equity in that year.

1.8 Judges and Employee Benefits

Liabilities for services rendered by Judges and employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months of balance date are measured at their nominal amounts. The nominal amount is calculated at the rates expected to be paid on settlement of the liability.

All other judges and employee benefit liabilities are measured as the present value of the estimated future cash outflows to be made in respect of services provided by judges and employees at the reporting date.

Leave

The liability for employee benefits includes annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the Court is estimated to be less than the annual entitlement for sick leave.

The long service leave provision is based on the Court’s estimated liability at balance date. Court staff employed under the Public Service Act accrue 3 months long service leave after 10 years service, and proportionally thereafter. The estimate of the present liability takes into account attrition rates and pay increases through promotion and inflation. Judges accrue 6 months long leave after 5 years of service. In recognition of the nature of Judges’ tenure, a provision is accrued from the first year of service.

The leave liabilities are based on the judges’ and employees’ remuneration. This includes the Court’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 the Court 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 Commonwealth. 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.

The Court makes employer contributions to the Australian Government at rates determined by an actuary to be sufficient to meet the cost to the Government of the superannuation entitlements of the Court’s employees. The Court accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.

Judges’ Pension

Under the Judges’ Pension Act 1968, Federal Court Judges are entitled to a non-contributory pension upon retirement after 6 years service. Where entitlements are not available under the Judges Pension Act 1968, entitlements are available under the Superannuation (Productivity Benefit) Act 1988. As the liability for these pension payments is assumed by the Australian Government, the Court has not recognised a liability for unfunded superannuation liability. The Court does, however, recognise an expense and a corresponding revenue item, “Liabilities assumed by other agencies”, in respect of the notional amount of the employer contributions to Judges’ pensions for the reporting period amounting to $8,422,562 (2005-06: $7,283,979). The contribution rate has been provided by the Australian Government Actuary.

1.9 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 benefits incidental to ownership of leased non-current assets. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the lower of the fair value of the lease property or the present value of minimum lease payments at the beginning of the lease term and a liability recognised at the same time and for the same amount. 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 unless another systematic approach is more representative of the pattern of benefits derived from the leased assets.

1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount.

1.12 Financial Risk Management

The Court’s activities expose it to normal commercial financial risk. As a result of the nature of the Court’s business and internal and Australian Government policies, dealing with the management of financial risk, the Court’s exposure to market, credit, liquidity, cash flow and interest rate risk is considered to be low.

1.13 Derecognition of Financial Assets and Liabilities

Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the asset is transferred to another entity. In the case of a transfer to another entity, the risks and rewards of ownership must be transferred.

Financial liabilities are derecognised when the obligation under the contract is discharged, cancelled or expires.

For the comparative year, financial assets were derecognised when the contractual right to receive cash no longer existed. Financial liabilities were derecognised when the contractual obligation to pay cash no longer existed.

1.14 Impairment of Financial Assets

Financial assets are assessed for impairment at each balance date.

Financial Assets held at Amortised Cost

If there is objective evidence that an impairment loss has occurred for loans and receivables, the amount of 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 loss is recognised in the Income Statement.

1.15 Supplier and other payables

Trade creditors and accruals are recognised at the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received irrespective of having been invoiced.

1.16 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. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition.

1.17 Property, Plant and Equipment (PP&E)

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases of:

^•   assets other than information technology equipment costing less than $2,000; and

^•   information technology equipment costing less than $1,500;

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.

Revaluations

Basis

Fair values for each class of asset are determined as shown below:

Asset class	Fair value measured at:
Buildings	Market selling price
Leasehold improvements	Depreciated replacement cost
Plant & Equipment	Market selling price

Following initial recognition, buildings, infrastructure, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency such that the carrying amount of each asset class is not materially different, at reporting date, from its fair value. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Valuations are done as at 30 June.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class previously recognised through the Income Statement.

Revaluation decrements for a class of assets are recognised directly through the Income Statement except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the valuation date is offset against the gross carrying amount of the asset and the net amount restated to the revalued amount.

Depreciation and amortisation

Depreciable property plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Court using the straight-line method of depreciation. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

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 and amortisation rates for each class of depreciable asset are based on the following useful lives:

	2007		2006
Leasehold improvements	10 years or Lease term		10 years or Lease term
Plant and equipment – excluding library materials	3 to 10 years		3 to 10 years
Plant and equipment – library materials	5 to 40 years		5 to 40 years

Impairment

All assets were assessed for impairment at 30 June 2007. Where indications of impairment exist, the asset’s recoverable amount is estimated and an adjustment made if the asset’s recoverable amount is less that 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 the Court were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.18 Intangibles

The Court’s intangibles comprise externally and internally developed software for internal use. These assets are carried at cost.

Software is amortised on a straight line basis over its anticipated useful life of 5 years (2005-06: 5 years).

All software assets were assessed for indications of impairment at 30 June 2007.

1.19 Taxation

The Court is exempt from all forms of taxation except fringe benefits tax (FBT) and goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:

^•   except where the amount of GST incurred is not recoverable; and

^•   except for receivables and payables.

1.20 Resources provided free of charge

Federal Magistrates Court

The Court provides resources free of charge to the Federal Magistrates Court (FMC) in accordance with sections 90, 92 and 99 of the Federal Magistrates Act 1999. Resources provided free of charge include:

^•   Court staff performing work on behalf of the FMC; and

^•   accommodation, including access to the Court's courtrooms.

The estimated cost of resources provided free of charge by the Court to the FMC during 2006-07 was $7,959,551 (2005-06: $7,936,932).

Industrial Relations Court of Australia

Schedule 16 of the Workplace Relations and Other Legislation Amendment Act 1996 (WROLA), provided for the jurisdiction previously exercised by the Industrial Relations Court of Australia (IRC) to be transferred to the Court on 26 May 1997.

The IRC continued to have jurisdiction over certain matters where a substantive hearing in the proceedings had commenced, or where hearings had been completed before the transfer date. Schedule 16 of the Workplace Relations and Other Legislation Amendment Act 1996 provides that the Chief Justice of the Court may arrange with the Chief Justice of the IRC for staff, facilities and any other necessary support to be made available to the IRC.

In 2005-06 all outstanding matters were finalised by the IRC. There was therefore no resources provided free of charge in the 2006-07 year (2005-06 $1,730).

1.21 Insurance

The Court is insured for risks through the Government’s insurable risk managed fund, ‘Comcover’. Workers compensation for Court employees is insured though Comcare Australia. The Chief Justice and Judges of the Court are provided for by the Judges Pension Act 1968 and Act of Grace provisions.

1.22 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes.

Except where stated below, administered items are accounted for on the same basis and using the same policies as the Court.

Administered Cash Transfers to and from Official Public Account

Revenue collected by the Court for the Government rather than the Court is Administered Revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance and Administration. 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 the Court on behalf of the Government and reported as Administered Cash Flows in the Schedule of Administered Items and in the Administered Reconciliation Table in Note 17. Thus, the Schedule of Administered Items reflects
the Government’s transitions, through the Court, with parties outside the Government.

Revenues

All administered revenues are revenues relating to the core operating activities performed by the Court on behalf of the Commonwealth.

Revenue from fees is recognised at the time the services are performed. The services are performed at the same time as, or within two days of, the fees becoming due and payable. It is recognised at its nominal amount due less any provision for bad or doubtful debts. Debts are reviewed at balance date. Provisions are made when collection of the debt is judged to be less rather than more likely. Revenue from fines is recognised in the period in which the invoice for the fine is raised.

Note 2: Income

Revenue

 

Note 2A: Revenue from Government

Appropriation: Departmental outputs	85,333		81,126
Total revenue from Government	85,333		81,126

Note 2B: Sale of goods and rendering of services

Rendering of services – related entities	1,441		2,065
Rendering of services – external entities	457		407
Total rendering of services	1,898		2,472
Total sale of goods and rendering of services	1,898		2,472

 

Note 2C: Interest

Deposits	16		614
Total interest	16		614

Gains

 

Note 2D: Sale of Assets

Infrastructure, plant and equipment:
Proceeds from sale	6		14
Carrying value of assets sold	(2)		4
Net gain from sale of assets	4		18

 

Note 2E: Other gains

Liabilities assumed by other agencies	8,423		7,284
Resources received free of charge	5,928		6,096
	14,351		13,380

Resources received free of charge includes an amount of $5,547,582 (2005-06: $5,547,582) in respect of rent and outgoings associated with the accommodation occupied by the Court in the Law Courts Building located in Sydney, New South Wales. This building is owned by Law Courts Limited, a joint venture between the NSW State and Commonwealth Governments.

Note 3: Expenses

 

Note 3A: Judges and Employee benefits

Judges remuneration	16,780		15,533
Judges notional superannuation	8,423		7,284
Employee wage & salaries	24,621		22,624
Employee superannuation	3,548		3,108
Employee separation and redundancies	172		138
Total judges and employee benefits	53,544		48,687

2007 $’000

2006 $’000

 

 

Note 3B: Suppliers

Provision of goods - external entities	3,127		3,096
Rendering of services - related entities	1,668		1,591
Rendering of services - external entities	19,076		15,335
Operating lease rentals:                 Minimum Lease Payments	20,430		20,940
Workers compensation premiums	217		243
Total supplier expenses	44,518		41,205

 

 

Note 3C: Depreciation and Amortisation

Depreciation:
Buildings	1,114		1,048
Infrastructure, plant and equipment	1,028		770
Total depreciation	2,142		1,818
Amortisation:
Intangibles:
Computer Software	181		212
Leased plant and equipment	666		455
Total amortisation	847		667
Total depreciation and amortisation	2,989		2,485

 

Note 3D: Finance costs

Finance leases	69		60
Total finance costs	69		60

 

 

Note 3E Write-down and impairment of assets

Financial assets
Bad & doubtful debt	21		-
Non-financial assets
Plant & equipment	4		264
Total write-down and impairment of assets	25		264

 

Note 4: Financial Assets

 

Note 4A: Cash and cash equivalents

Cash at bank and at hand	516		348
Total cash and cash equivalents	516		348

 

 

2007 $’000

2006 $’000

Note 4B: Trade and other receivables

Goods and services	99		536
GST receivable from the Australian Taxation Office	582		563
Appropriations receivable:
for existing outputs	36,874		31,701
Total trade and other receivables (gross)	37,555		32,800
Less Allowance for doubtful debts:
Goods and Services	(21)		-
Total trade and other receivables (net)	37,534		32,800

Receivables are aged as follows:
Not overdue Overdue by:	37,490		32,741
Less than 30 days	11		7
30 to 60 days	-		1
61 to 90 days	1		-
More than 90 days	53		51
	65		59
Total receivables (gross)	37,555		32,800

The allowance for doubtful debts is aged as follows:
Overdue by:
More than 90 days	(21)		-
Total allowance for doubtful debts	(21)		-

All receivables are current. Credit terms are net 30 days (2006: 30 days).

Note 5: Non-Financial Assets

 

Note 5A: Land and buildings

Leasehold improvements
– fair value	10,179		7,265
– accumulated depreciation	(2,759)		(1,645)
Total leasehold improvements	7,420		5,620
Total land and buildings (non-current)	7,420		5,620

 

Note 5B: Plant and Equipment

Plant and equipment
– ‘gross carrying value (at fair value)’	14,280		13,015
– accumulated depreciation	(3,785)		(2,108)
	10,495		10,907
Total plant and equipment (non-current)	10,495		10,907

All revaluations are conducted in accordance with the valuation policy stated in Note 1. In 2004-05, formal valuations were conducted by an independent valuer, the Australian Valuation Office.

Note 5C: Intangible Assets
Computer software at cost
Internally developed – in progress	98		-
Purchased – in use	2,206		2,135
Total Computer Software	2,304		2,135
Accumulated amortisation	(1,872)		(1,691)
Total intangibles (non-current)	432		444

Note 5D: Analysis of property, plant, and equipment

TABLE A - Reconciliation of the opening and closing balances of property, plant,
and equipment (2006-07)

Item	Leasehold improvement – Total land and buildings $’000	Infrastructure, plant and equipment $’000	Computer Software – Intangibles $’000	Total $’000
As at 1 July 2006
Gross book value	7,265	13,015	2,135	22,415
Accumulated depreciation/amortisation	(1,645)	(2,108)	(1,691)	(5,444)
Net book value 1 July 2006	5,620	10,907	444	16,971
Additions:
by purchase	2,914	1,289	169	4,372
Depreciation/amortisation expense	(1,114)	(1,694)	(181)	(2,989)
Disposals:
Other disposals	-	(7)	-	(7)
As at 30 June 2007
Gross book value	10,179	14,280	2,304	26,763
Accumulated depreciation/amortisation	(2,759)	(3,785)	(1,872)	(8,416)
Net book value 30 June 2007	7,420	10,495	432	18,347

TABLE A - Reconciliation of the opening and closing balances of property, plant, and equipment (2005-06)

Item	Leasehold improvement – Total land and buildings $’000	Infrastructure, plant and equipment $’000	Computer Software – Intangibles $’000	Total $’000
As at 1 July 2005
Gross book value	5,007	9,665	2,058	16,730
Accumulated depreciation/amortisation	(952)	(919)	(1,479)	(3,350)
Net book value 1 July 2005	4,055	8,746	579	13,380
Additions:
by purchase	2,876	3,393	77	6,346
Depreciation/amortisation expense	(1,048)	(1,224)	(213)	(2,485)
Disposals:
Other disposals	(263)	(7)	-	(270)
As at 30 June 2006
Gross book value	7,265	13,015	2,135	22,415
Accumulated depreciation/amortisation	(1,645)	(2,108)	(1,691)	(5,444)
Net book value 30 June 2006	5,620	10,907	444	16,971

Note 5D: Analysis of Property, Plant, Equipment and Intangibles

TABLE B – Property, Plant, Equipment under construction

Item	Leasehold improvement – Total land and buildings $’000	Total plant and equipment $’000	Total Intangibles Internally Developed $’000
Carrying amount at 30 June 2007	1,996	-	98
Carrying amount at 30 June 2006	-	782	-

2007 $’000

2006 $’000

Note 5E: Other Non-Financial Assets

Prepayments	2,183		5,492
Total other non-financial assets	2,183		5,492

All other non-financial assets are current assets.

Note 6: Payables

Trade creditors	508		404
Total supplier payables	508		404
Supplier payables are all current

Settlement is usually made net 30 days.

Note 7: Interest Bearing Liabilities

Note 7: Leases

Finance leases	986		1,411
Total finance leases	986		1,411

Payable:

Within one year
Minimum lease payments	623		700
Deduct: future finance charges	(44)		(63)
Total leases payable within one year	579		637
In one to five years
Minimum lease payments	429		812
Deduct: future finance charges	(22)		(38)
Total leases payable within one year to five years	407		774
Finance lease recognised on the balance sheet	986		1,411

Finance leases are for certain major IT equipment assets and some office equipment. The leases are non-cancellable and for fixed terms averaging three years, with a maximum of five years. The interest rate implicit in the leases averaged 5.61% (2006: 5.39%). The leased assets secure the lease liabilities. The Court guarantees the residual values of all assets leased. There are no contingent rentals.

	2007		2006
	$’000		$’000

Note 8: Provisions

Note 8A: Judges & Employee provisions

Salaries and wages	222		203
Long Leave (Judges)	9,707		8,743
Leave	6,085		5,823
Superannuation	844		768
Fringe Benefits Tax	-		191
Total judges and employee provisions	16,858		15,728
Employee provisions are represented by:
Current	15,748		14,889
Non-current	1,110		839
Total judges and employee provisions	16,858		15,728

Note 9: Cash flow reconciliation

Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement
Report cash and cash equivalents as per:
Cash Flow Statement	516		348
Balance Sheet	516		348
Reconciliation of operating result to net cash from operating activities:
Operating result	457			4,909
Depreciation/amortisation	2,989			2,485
Net write down of non-financial assets	25			264
(Gain)/Loss on disposal of assets	(4)			(18)
(Increase)/decrease in net receivables	(4,734)			(18,815)
(Increase)/decrease in prepayments	3,309			13,665
Increase/(decrease) in suppliers payables	104			(212)
Increase/(decrease) in judge and employee provisions	1,130			609
Increase/(decrease) in other liabilities	(425)			651
Net cash from operating activities	2,851			3,538

Note 10: Executive Remuneration

	2007		2006
The number of senior executives who received or were due to receive total remuneration of $130,000 or more:
$145,000 to $159,999	-		1
$160,000 to $174,999	-		1
$175,000 to $189,999	1		4
$190,000 to $204,999	1		2
$205,000 to $219,999	3		1
$220,000 to $234,999	3		2
$250,000 to $264,999	1		-
$280,000 to $294,999	1		1
Total	10		12

	2007		2006
	$		$
The aggregate amount of total remuneration of executives shown above:	2,254,730		2,391,069
The aggregate amount of separation and redundancy/termination benefit payments during the year to executives shown above:	-		3,627

Note 11: Remuneration of Auditors

	2007		2006
	$		$
Financial statement audit services are provided free of charge to the Court.
The fair value of the services provided was:	82,000		76,000

Note 12: Average Staffing Levels

	2007		2006
The average staffing levels for the Federal Court during the year were:	358		351

Note 13: Financial Instruments

Note 13A: Interest Rate Risk

Financial Instrument	Note	Floating Interest Rate		Non-Interest Bearing				Total			Weighted Average Effective Interest Rate
		2007	2006	2007		2006		2007		2006	2007	2006
		$’000	$’000	$’000		$’000		$’000		$’000	%	%
Financial Assets
Cash at bank	4A	516	348	-		-		516		348	2	2
Receivables for goods and services	4B	-	-	36,874		32,800		36,874		32,800	n/a	n/a
Total		516	348	36,874		32,800		37,390		33,148
Total Assets								58,580		55,611
Financial Liabilities
Trade creditors	6	-	-	508		404		508		404	n/a	n/a
Finance lease liabilities	7	986	1,411	-		-		986		1,411	5.46	5.22
Total		986	1,411	508		404		1,494		1,815
Total Liabilities								18,352		17,543

The net fair values of cash, investments and non-interest-bearing financial assets approximate their carrying amounts. The net fair values for finance lease liabilities, lease incentives and trade creditors are approximated by their carrying amounts.

Note 13B: Credit Risk Exposures

The Court’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.

The Court has no significant exposures to any concentrations of credit risk.

All figures for credit risk referred to do not take into account the value of any collateral or to other security.

This note also applies to the Court’s administered financial instruments and is therefore not reproduced at Note 18.

Note 14: Income Administered on Behalf of Government
	2007		2006
	$’000		$’000
Fees (filing and hearing fees)	6,372		6,167
Fines	47		43
Other	105		86
Total revenue administered on behalf of government	6,524		6,296
Note 15: Expenses Administered on Behalf of Government
Note 15: Other
Refund of fees and fines	87		89
Fees and fines – provision for doubtful debts	66		-
Total expenses administered on behalf of government	153		89
Note 16: Assets Administered on Behalf of Government
Note 16A: Cash and cash equivalents
Cash on hand or on deposit	38		19
Note 16B: Receivables
Fees (filing and hearing fees)	436		416
Less: Allowance for doubtful debts	(110)		(44)
Total receivables (net)	326		372

Credit terms are net 30 days (2006: 30 days).

						2007						2006
						$’000						$’000
Receivables are aged as follows:
Not overdue						66						101
Overdue by:
- Less than 30 days						136						95
- 30 to 60 days						79						79
- 60 to 90 days						39						23
- More than 90 days						116						118
Total receivables (gross)						436						416
Total Assets Administered on Behalf of Government						364						391
Note 17: Administered Reconciliation Table
Opening administered assets less administered liabilities as at 1 July						391						363
Plus: Administered revenues						6,524						6,296
Less: Administered expenses						(153)						(89)
Appropriation transfers from OPA						90						90
Transfers to OPA						(6,488)						(6,269)
Closing administered assets less administered liabilities as at 30 June						364						391
Note 18: Administered Financial Instruments
Administered Interest Rate Risk
Financial Instrument	Notes	Non-Interest Bearing			Total					Weighted Average
		2007 $’000	2006 $’000		2007 $’000			2006 $’000		2007 %			2006 %
Financial Assets
Cash and cash equivalents	16A	38	19		38			19		n/a			n/a
Receivables (gross)	16B	436	416		436			416		n/a			n/a
Total		474	435		474			435
Total Assets					364			391
The net fair values of cash and non-interest-bearing monetary financial assets approximate their carrying amounts.

Note 19: Appropriations

TABLE A - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations

Particulars	Departmental Outputs
	2007 $	2006 $
Balance carried from previous period	30,678,000	13,839,300
Appropriation Act:
Appropriation Act (No.1)	84,655,000	79,428,000
Appropriation Act (No.3)	678,000	1,698,000
Departmental adjustments by the Finance Minister (Appropriation Acts)	-	1,325,700
Comcover receipts (Appropriation Act s13)	64,673	4,548
Refunds credited (FMA s30)	4,351,192	3,500,000
FMA Act:
Appropriations to take account of recoverable GST (FMA s30A)	4,085,745	3,557,000
Annotations to ‘net appropriations’ (FMA s31)	1,915,797	2,068,992
Total appropriations available for payments	126,428,407	105,421,540
Cash payments made during the year (GST inclusive)	91,879,147	74,743,540
Appropriations credited to special Accounts (excluding GST)	-	-
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Ordinary Annual Services Appropriations	34,549,260	30,678,000
Represented by:
Cash at bank and on hand	516,260	348,000
Departmental appropriations receivable	34,033,000	30,330,000
Total	34,549,260	30,678,000

TABLE B - Acquittal of Authority to Draw Cash from the Consolidated Revenue Fund for Other than Ordinary Annual Services Appropriations

	Non-operating				Total
	Equity		Previous Years’ Outputs
	2007 $	2006 $	2007 $	2006 $	2007 $	2006 $
Balance carried forward from previous period	1,371,000	-	-	-	1,371,000	-
Appropriation Act (No.2)	1,703,000	1,371,000	-	-	1,703,000	1,371,000
Total appropriations available for payments	3,074,000	1,371,000	-	-	3,074,000	1,371,000
Cash payments made during the year (GST inclusive)	233,260	-	-	-	233,260	-
Balance of Authority to Draw Cash from the Consolidated Revenue Fund for Other Than Ordinary Annual Services Appropriations	2,840,740	1,371,000	-	-	2,840,740	1,371,000
Represented by:
Cash at bank and on hand	-	-	-	-	-	-
Departmental appropriations receivable	2,840,740	1,371,000	-	-	2,840,740	1,371,000
Total	2,840,740	1,371,000	-	-	2,840,740	1,371,000

Note 20: Special Accounts

Other Trust Moneys Account	2007	2006
	$	$
Legal Authority: Financial Management and Accountability Act 1997; s 20 Purpose: for expenditure of moneys temporarily held on trust or otherwise for the benefit of a person other than the Commonwealth. This account is interest bearing.
Balance carried from previous year	47,623	38,782
Receipts during 2006/07	69,865	1,047,261
Available for payments	117,488	1,086,043
Payments made during 2006/07	79,156	1,038,420
Balance carried to next year	38,332	47,623
Represented by:
Cash – held by the Court	38,332	47,623
Total	38,332	47,623

Services for other Governments & Non-agency bodies	2007	2006
	$	$
Legal authority: Financial Management and Accountability Act, 1997, s 20 Purpose: for expenditure in connection with services performed on behalf of other Governments and bodies that are not FMA agencies. This account is interest bearing.
Balance carried from previous year	10,398	10,398
Receipts during 2006/07	-	-
Available for payments	10,398	10,398
Payments made during 2006/07	-	-
Balance carried to next year	10,398	10,398
Represented by:
Cash – held by the Court	10,398	10,398
Total	10,398	10,398

Federal Court of Australia Litigant’s Fund	2007	2006
	$	$
Legal Authority: Financial Management and Accountability Act, 1997, s20 Purpose: to hold private moneys for litigants pending acceptance of moneys paid into Court by litigants; security for costs or pursuant to an order of a Federal Court Judge. This account is non-interest bearing.
Balance carried from previous year	1,671,643	1,199,753
Receipts during 2006/07	3,070,498	2,466,458
Available for payments	4,742,141	3,666,211
Payments made during 2006/07	2,713,515	1,994,568
Balance carried to next year	2,028,626	1,671,643
Represented by:
Cash – held by the Court	2,028,626	1,671,643
Total	2,028,626	1,671,643

Federal Court of Australia Litigant’s Fund	2007	2006
	$	$
Legal authority: Financial Management and Accountability Act, 1997, s39 Purpose: to invest private moneys paid by litigants pursuant to an order of a Federal Court Judge, pending an order for payment out by a Federal Court Judge. This account is interest bearing.
Balance carried from previous year	12,399,712	1,674,832
Receipts during 2006/07	5,830,614	15,548,065
Available for payments	18,230,326	17,222,897
Payments made during 2006/07	9,631,809	4,823,185
Balance carried to next year	8,598,517	12,399,712
Represented by:
Cash – held by the Court	8,598,517	12,399,712
Total	8,598,517	12,399,712

Note 21: Comcare Account

Comcare account	2007	2006
	$	$
This account holds monies advanced to the Court by COMCARE to distribute compensation payments made in accordance with the Safety Rehabilitation and Compensation Act 1998. Where the Court makes payments against accrued sick leave entitlements pending determination of an employee’s claim, permission is obtained in writing from each individual to allow the Court to recover the payments from the monies in the account.			Balance carried from previous year	782	-
Receipts during 2006/07	64,673	4,548
Available for payments	65,455	4,548
Payments made during 2006/07	65,455	3,766
Balance carried to next year	-	782
Represented by:
Cash – held by the Court	-	782
Total	-	782

Note 22: Compensation and Debt Relief

		2007		2006
Administered		$		$
No Act of Grace payments were made during the financial year 2006-07 under sub-section 33(1) of the Financial Management and Accountability Act 1997.		-		-
No payments were waived during the financial year 2006-07 under subsection 34(1) of the Financial Management and Accountability Act 1997.		-		-
3,246 exemptions and waivers of amounts owing to the Commonwealth were made pursuant to sub-regulations 2(4)(a-c), 2A(2)(e-g), 2AA(2)(f-h) of the Federal Court of Australia Regulations 2004.		3,418,307		2,812,085

Departmental

No payments were made under the ‘Defective Administration Scheme’ during 2006-07 (2005-06 nil).

Note 23: Reporting of Outcomes

Note 23A: Net Cost of Outcome Delivery         

The Court has one Output and Outcome:

To apply and uphold the rule of law to deliver remedies and enforce rights and in so doing, contribute to the social and economic development and well-being of all Australians.

Outcome 1	Outcome 1
	2007 $’000	2006 $’000
Expenses
Administered	153	89
Departmental	101,145	92,701
Total expenses	101,298	92,790
Costs recovered from provision of goods and services to the non-government sector
Administered	-	-
Departmental	-	-
Total costs recovered	-	-
Other external revenues
Administered	6,524	6,296
Departmental	1,918	3,104
Total other external revenues	8,442	9,400
Net cost/(contribution) of outcome	92,856	83,390

Note 23B: Major Classes of Departmental Revenues and Expenses by Outputs

Outcome 1	Outcome 1
	2007 $’000	2006 $’000
Departmental expenses
Judges and Employees	53,544	48,687
Suppliers	44,518	41,205
Depreciation and Amortisation	2,989	2,485
Finance costs	69	60
Other Expenses	25	264
Total departmental expenses	101,145	92,701
Funded by:
Revenues from government	99,684	94,506
Sale of goods and services	1,902	2,490
Other non-taxation revenues	16	614
Total departmental revenues	101,602	97,610