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					                                                                                                                   Finance
  Corporate and Professional Services
  Financial Statements 2007-08
Corporate and Professional Services
Financial Statements 2007-08


                                                                                                        Page No.
                                        Understanding our financial statements                              224
                                        Income Statement                                                    225
                                        Balance Sheet                                                       226
                                        Statement of Changes in Equity                                      227
                                        Cash Flow Statement                                                 228
                                        Notes To and Forming Part of the Financial
                                                                                                            229
                                        Statements
                                        Management Certificate                                              241
                                        Audit Certificate                                                   242
                                                                                             Note No.
                                        Accrued employee benefits                                 16        238
                                        Agency transactions                                       24        240
                                        Cash and cash equivalents                                 10        236
                                        Commitments for expenditure                               20        238
                                        Contingencies                                             21        238
                                        Depreciation and Amortisation                              8        236
                                        Economic support of parent entity                         25        240
                                        Employee expenses                                          6        235
                                        Events occurring after balance date                       23        240
                                        Financial instruments                                     22        239
                                        Gains                                                      5        235
                                        Intangible assets                                         13        237
                                        Non-cash financing and investment activities              19        238
                                        Objectives of Corporate and Professional Services
                                                                                                   1        230
                                        (CAPS)
                                        Other current assets                                      12        236
                                        Other current liabilities                                 17        238
                                        Other expenses                                             9        236
                                        Other revenue                                              4        235
                                        Payables                                                  15        237
                                        Plant and equipment                                       14        237
                                        Receivables                                               11        236
                                        Reconciliation of operating surplus to net cash by
                                                                                                  18        238
                                        operating activities
                                        Summary of significant accounting policies                 2        230
                                        Supplies and services                                      7        236
                                        User charges                                               3        235




                                                                                                            223

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Corporate and Professional Services
Financial Statements 2007-08

Corporate and Professional Services
Financial Statements 2007-08



Contents


Understanding our financial statements


Statement 1 – Income Statement


Statement 2 – Balance Sheet


Statement 3 – Statement of Changes in Equity


Statement 4 – Cash Flow Statement


Notes To and Forming Part of the Financial Statements


Management Certificate


Understanding our financial statements

This financial report covers Corporate and Professional Services (CAPS), the Shared Service Provider which is a controlled entity of
the Department of Education, Training and the Arts.

CAPS’ Parent Entity, the Queensland Department of Education, Training and the Arts (DETA) is a government department of the
State of Queensland established under the Public Service Act 1996. Section 40 of the Financial Administration and Audit Act 1977
requires each department and Shared Service Provider to prepare general purpose financial statements.

The principal address of Corporate and Professional Services is:

Education House
30 Mary Street
Brisbane QLD 4000

A description of the nature of CAPS’ operations and its principal activities is included in the notes to the financial statements.

For information in relation to the CAPS financial report please contact the Corporate Governance Branch – telephone 3237 0741,
email Budget&Reporting.CorpGov@deta.qld.gov.au or visit the departmental website at: www.deta.qld.gov.au.


Amounts shown in this financial report may not add up to the correct sub-totals or totals due to rounding.




224    Department of Education, Training and the Arts 2007–08 Annual Report
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                                                                                                                                     Finance
Corporate and Professional Services
 Corporate and Professional
Financial Statements 2007-08Services
 Financial Statements 2007-08



 Statement 1 – Income Statement
 for the year ended 30 June 2008

                                                                                                          2008             2007
                                                                                    Notes                 $’000            $’000


 Income
 Revenue
   User charges                                                                        3                107 588           85 265
   Other revenue                                                                       4                  1 503            2 143


 Gains
   Gains on sale of plant and equipment                                                5                      2                  -


 Total income                                                                                           109 093           87 408


 Expenses
   Employee expenses                                                                   6                 68 843           56 753
   Supplies and services                                                               7                 39 541           29 852
   Depreciation and amortisation                                                       8                    116                108
   Other expenses                                                                      9                    580                385


 Total expenses                                                                                         109 080           87 098


 Operating surplus                                                                                           13                310


 The above statement should be read in conjunction with the accompanying notes, which appear on the pages after Statement 4.




                                                                                                                               225
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Financial Statements 2007-08
Financial Statements 2007-08



Statement 2 – Balance Sheet
as at 30 June 2008

                                                                                                         2008             2007
                                                                                   Notes                 $’000            $’000


Current assets
  Cash and cash equivalents                                                          10                 15 645            9 485
  Receivables                                                                        11                  4 455            2 858
  Other                                                                              12                     52                 9
Total current assets                                                                                    20 152           12 352


Non- current assets
  Intangible assets                                                                  13                    114                131
  Plant and equipment                                                                14                    328                280
Total non-current assets                                                                                   442                411


TOTAL ASSETS                                                                                            20 594           12 763


Current liabilities
  Payables                                                                           15                 13 604            3 599
  Accrued employee benefits                                                          16                  1 554            5 268
  Other                                                                              17                  2 502                421
Total current liabilities                                                                               17 660            9 288


TOTAL LIABILITIES                                                                                       17 660            9 288


NET ASSETS                                                                                               2 934            3 475


EQUITY
  Contributed equity                                                                                     (401)                153
  Retained surpluses                                                                                     3 335            3 322
TOTAL EQUITY                                                                                             2 934            3 475


The above statement should be read in conjunction with the accompanying notes, which appear on the pages after Statement 4.




226     Department of Education, Training and the Arts 2007–08 Annual Report
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Corporate and Professional Services
Financial Statements 2007-08
Financial Statements 2007-08



Statement 3 – Statement of Changes in Equity
for the year ended 30 June 2008

                                                                                                       Contributed Equity
                                                                      Retained Surpluses

                                                                        2008               2007          2008               2007
                                                                        $’000              $’000         $’000              $’000


Balance 1 July                                                          3 322              3 012           153                345


  Operating surplus                                                        13               310               -                  -


  Transactions with Owners as Owners:

    − Net liabilities received (MOG change) Note 2(q)                      -                 -            (730)                  -

    − Net assets received (MOG change) Note 2(q)                           -                 -             403                (12)

    − Net leave liabilities transferred to (from) other departments        -                 -            (227)             (180)

Balance 30 June                                                         3 335              3 322          (401)               153


The above statement should be read in conjunction with the accompanying notes, which appear on the pages after Statement 4.




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Financial Statements 2007-08
Financial Statements 2007-08



Statement 4 – Cash Flow Statement
for the year ended 30 June 2008

                                                                                                        2008             2007
                                                                                   Notes                $'000            $'000



Cash flows from operating activities


Inflows:
  User charges                                                                                        111 689          85 653
  GST input tax credits from ATO                                                                        6 624            4 793
  GST collected from customers                                                                            114             288
  Other                                                                                                   866            2 070


Outflows:
  Employee expenses                                                                                  (73 047)         (55 647)
  Supplies and services                                                                              (30 805)         (29 644)
  GST paid to suppliers                                                                                (6 624)         (5 073)
  GST remitted to ATO                                                                                   (114)             (89)
  Other                                                                                                (2 810)         (2 222)
Net cash provided by operating activities                                           18                  5 893             129


Cash flows from investing activities
Inflows:
   Sales of plant and equipment                                                                            10                  -

Outflows:
  Payments for plant and equipment                                                                        (93)            (37)
Net cash provided by (used in) investing activities                                                       (83)            (37)



Net increase in cash held                                                                               5 810                 92
Cash transfers from Machinery of Government restructure                                                   350                  -
Cash at beginning of financial year                                                                     9 485            9 393
Cash at end of financial year                                                       10                 15 645            9 485


The above statement should be read in conjunction with the accompanying notes, which appear on the pages after Statement 4.




228    Department of Education, Training and the Arts 2007–08 Annual Report
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Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notesto and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



Note 1:            Objectives and Principal Activities of Corporate and Professional Services (CAPS)
Note 2:            Summary of Significant Accounting Policies
Note 3:            User Charges
Note 4:            Other Revenue
Note 5:            Gains
Note 6:            Employee Expenses
Note 7:            Supplies and Services
Note 8:            Depreciation and Amortisation
Note 9:            Other Expenses
Note 10:           Cash and Cash Equivalents
Note 11:           Receivables
Note 12:           Other Current Assets
Note 13:           Intangible Assets
Note 14:           Plant and Equipment
Note 15:           Payables
Note 16:           Accrued Employee Benefits
Note 17:           Other Current Liabilities
Note 18:           Reconciliation of Operating Surplus to Net Cash form Operating Activities
Note 19:           Non-Cash Financing and Investing Activities
Note 20:           Commitments for Expenditure
Note 21:           Contingencies
Note 22:           Financial Instruments
Note 23:           Events Occurring after Balance Date
Note 24:           Agency Transactions
Note 25:           Economic Support of Parent Entity




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Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notesto and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



1. Objectives and principal activities of Corporate and Professional Services (CAPS)
CAPS’ mission is to assist the Department of Education, Training and the Arts, through the provision of high quality, cost effective
corporate services, while delivering increased value to the community.

CAPS commenced separate financial reporting on 1 July 2004 as part of the Queensland Government’s Shared Service Initiative.
The Shared Service Initiative is a whole-of-Government project with the vision of delivering high-quality, cost effective corporate
services across Queensland Government.

CAPS is funded by the Department of Education, Training and the Arts for corporate services. The corporate services provided to the
Department during the year are summarised below:

•     Financial Services
•     Human Resources/Payroll Services
•     Information Management Services
•     Facilities Services
•     Legal Services


2. Summary of significant accounting policies
(a)    Basis of accounting
       The financial statements have been prepared in accordance with Australian Equivalents to International Financial Reporting
       Standards (AEIFRS).
       The financial statements have been prepared in accordance with Australian Equivalents to International Financial Reporting
       Standards (AEIFRS).
       This financial report is a general purpose financial report.
       In particular, the financial statements comply with AAS 29 Financial Reporting by Government Department, as well as the
       Treasurer’s Minimum Reporting Requirements for the year ending 30 June 2008, and other authoritative pronouncements.
       Except where stated, the historical cost convention is used.

(b)    The reporting entity
       The financial statements include the value of all assets, liabilities, equity, revenues and expenses of CAPS. No other entities
       are controlled by CAPS.
(c)    User charges
       User charges controlled by CAPS are recognised as revenue on an accrual basis. User charges collected in advance relating
       to services to be delivered in the financial year 2008-09 have been recognised as revenue in advance. User charges and fees
       are controlled by CAPS where they can be deployed for the achievement of its objectives.
(d)    Cash and cash equivalents
       For the purposes of the Balance Sheet and the Cash Flow Statement, cash and cash equivalents include cash on hand and
       the central office bank account which is used in the day-to-day cash management function of CAPS.
(e)    Receivables
       Receivables are recognised as the amount due at the time of sale or service provision. The collectability of trade and other
       receivables is assessed as at 30 June with adequate provision made for impairment and all known bad debts written-off.
       Settlement on trade debtors is required within 14 days of invoice date.
(f)    Acquisitions of assets
       Cost is used for the initial recording of all acquisitions of assets controlled by CAPS. Cost is determined as the fair value of the
       assets given as consideration plus costs incidental to the acquisition, including all other costs incurred in getting the assets
       ready for use.
       Assets that were received as a result of a machinery-of-Government restructure were recognised at the gross carrying amount
       in the books of the transferor immediately prior to the transfer together with any accumulated depreciation.
       Assets acquired at no cost or for nominal consideration, other than from an involuntary transfer from another Queensland
       Government department, are recognised at their fair value at the date of acquisition in accordance with AASB116 Property,
       Plant and Equipment.
(g)    Plant and equipment
       All items of plant and equipment with a cost or other value in excess of $5,000 are recognised for financial reporting purposes
       in the year of acquisition. Items with a lesser value are expensed in the year of acquisition.




230      Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                                             Finance
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



2. Summary of significant accounting policies (cont)
(h)   Intangibles
      Intangible assets with a cost, or other value, in excess of $100,000 are recognised in the year of acquisition, and items with a
      lesser value are expensed. Each intangible asset is amortised over its estimated useful life to CAPS less any anticipated
      residual value. The residual value is zero for CAPS’ intangible assets.
      It has been determined that there is not an active market for any CAPS’ intangible assets. As such, the assets are recognised
      and carried at cost less accumulated amortisation and accumulated impairment losses.
      Internally generated software
      Costs associated with the development of computer software have been capitalised and are amortised on a straight-line basis
      over the 10 year period of expected benefit to CAPS.
(i)   Amortisation and depreciation of intangibles, and plant and equipment
      Plant and equipment is depreciated on a straight-line basis so as to allocate the net cost or revalued amount of each asset,
      less its estimated residual value, progressively over its estimated useful life to CAPS.
      Where assets have separately identifiable components that are subject to regular replacement, these components are
      assigned useful lives distinct from the asset to which they relate and are depreciated accordingly.
      Any expenditure that increases the originally assessed capacity or service potential of an asset is capitalised and the new
      depreciable amount is depreciated over the remaining useful life of the asset to CAPS.
      Major spares purchased specifically for particular assets are capitalised and depreciated on the same basis as the asset to
      which they relate.
      Amortisation of intangibles is calculated on a straight-line basis to allocate the net cost of each intangible asset, progressively
      over its estimated useful life.
      For each class of asset the following depreciation and amortisation rates were used:
        Class                                                  Rate %
        Computer equipment                                         20
        Plant and equipment:
        - Photocopiers                                              20
        - Other equipment                                           10
        Intangibles                                                 10
(j)   Impairment on non-current assets
      All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis. If an indicator of
      possible impairment exists, then CAPS determines the asset's recoverable amount. Any amount by which the asset's carrying
      amount exceeds the recoverable amount is recorded as an impairment loss.
      The asset's recoverable amount is determined as the higher of the asset's fair value less costs to sell and depreciated
      replacement cost.
      An impairment loss is recognised immediately in the Income Statement, unless the asset is carried at a revalued amount.
      When the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation reserve of the
      relevant class to the extent available.
      Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its
      recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been
      determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is
      recognised as income, unless the asset is carried at a revalued amount, in which the reversal of the impairment loss is treated
      as a revaluation increase.
(k)   Leases
      Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in
      the periods in which they are incurred.
(l)   Payables
      Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed
      purchase/contract price gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled
      on 30 day terms.
(m)   Financial instruments

      Recognition
      Financial assets and financial liabilities are recognised in the Balance Sheet when CAPS becomes party to the contractual
      provisions of the financial instrument.




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Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



2. Summary of significant accounting policies (cont)
      Classification

      Financial instruments are classified and measured as follows:

      •     Cash and cash equivalents – held at fair value through profit or loss

      •     Receivables – held at amortised cost

      •     Payables – held at amortised cost
      CAPS does not enter transactions for speculative purposes, nor for hedging. Apart from cash and cash equivalents, CAPS
      holds no financial assets classified at fair value through profit and loss.
      All disclosures relating to the measurement basis and financial risk management of other financial instruments held by CAPS
      are included in Note 22.
(n)   Employee benefits

      Wages, Salaries, and Sick Leave
      Wages and salaries, due but unpaid at reporting date, are recognised in the Balance Sheet at the remuneration rates expected
      to apply at the time of settlement. Payroll tax and workers’ compensation insurance are a consequence of employing
      employees, however are not counted in an employees’ total remuneration package. They are not employee benefits and are
      recognised separately as employee related expenses. Employer superannuation contributions and long service leave levies
      are regarded as employee benefits.
      For unpaid entitlements expected to be paid within 12 months, the liabilities are recognised at their undiscounted values.
      Prior history indicates that on average, sick leave taken in each reporting period is less than the entitlement accrued. This is
      expected to recur in future periods. Accordingly, it is unlikely that existing accumulated entitlements will be used by
      employees and no liability for unused sick leave entitlement is recognised.
      As sick leave is non-vesting, an expense is recognised for this leave as it is taken.

      Annual leave
      An Annual Leave Central Scheme (ALCS) has been established at 30 June 2008 for departments, commercialised business
      units and share service providers by the State Government. CAPS has transferred all annual leave liabilities at 30 June 2008
      to this scheme. The portion of annual leave accrued but unpaid is disclosed as a sundry payable to the Crown.
      The annual leave liability will be held on a whole-of-government basis and reported in the Report on State Finances.
      Under the ALCS, CAPS must contribute a levy equal to accrued quarterly annual leave costs, including leave loading and on-
      costs. Amounts paid to employees for annual leave are claimed back from the scheme.
      Long service leave
      Under the State Government’s long service leave scheme a levy is made on CAPS to cover this cost. Levies are expensed in
      the period in which they are paid or payable. Amounts paid to employees for long service leave are claimed from the scheme
      when leave is taken.
      No provision for long service leave is recognised in these financial statements, the liability being held on a whole-of-
      government basis and reported in the financial report prepared pursuant to AAS 31 Financial Reporting by Governments.
      Superannuation
      Employer superannuation contributions are paid to QSuper, the superannuation plan for Queensland Government employees,
      at rates determined by the Treasurer on advice from the State Actuary. Contributions are expensed in the period in which they
      are paid or payable. CAPS’ obligation is limited to its contribution to QSuper. Therefore, no liability is recognised for accruing
      superannuation benefits in these financial statements, the liability being held on a whole-of-government basis and reported in
      the financial report prepared pursuant to AAS 31 Financial Reporting by Governments.
      Executive remuneration

      The executive remuneration disclosures in the employee expenses note (Note 6) in the financial statement include:
      •     the aggregate remuneration of all senior executive officers whose remuneration for the financial year is $100 000 or
            more; and
      •     the number of senior executives whose total remuneration for the financial year falls within each successive $20 000
            band, commencing at $100 000.




232    Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                                           Finance
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear endingyear ending 30 June 2008



2. Summary of significant accounting policies (cont)
      The remuneration disclosed is all remuneration received or receivable, directly or indirectly, by CAPS or any related party in
      connection with the management of the affairs of CAPS or any of its subsidiaries, whether as an executive or otherwise. For
      this purpose, remuneration includes:
      •    wages and salaries;
      •    accrued leave (that is, the increase/decrease in the amount of annual and long service leave owed to an executive,
           inclusive of any increase in the value of leave balances as a result of salary rate increases or the like);
      •    accrued superannuation (being the value of all employer superannuation contributions during the financial year, both paid
           and payable as at 30 June);
      •    car parking benefits and the cost of motor vehicles, such as lease payments, fuel costs, registration/insurance, and
           repairs/maintenance and fringe benefits tax on motor vehicles incurred by the agency during the financial year, both paid
           and payable as at 30 June, net of any amounts subsequently reimbursed by the executives;
      •    allowances (which are included in remuneration agreements of executives, such as airfares or other travel costs paid
           to/for executives whose homes are situated in a location other than the location they work in); and
      •    Fringe benefits tax included in remuneration agreements.
      The disclosures apply to all senior executives appointed by Governor in Council and classified as SES1 and above, with
      remuneration above $100,000 in the financial year. ‘Remuneration’ means any money, consideration or benefit, but excludes
      amounts:
      •    paid to an executive by CAPS or any of its subsidiaries where the person worked during the financial year wholly or
           mainly outside Australia during the time the person was employed; or
      •    in payment or reimbursement of out-of-pocket expenses incurred for the benefit of the entity or any of it subsidiaries.

      In addition, separate disclosure of separation and redundancy/termination benefit payments are included.

(o)   Insurance
      CAPS’ non-current physical assets and other risks are insured through the Queensland Government Insurance Fund,
      premiums being paid on a risk assessment basis. Currently, the CAPS Workcover premium, in respect of its obligations for
      employee compensation, is included as part of Department of Education, Training and the Arts cover. CAPS reimburses the
      Department for the proportionate cost of the premium.
(p)   Contributed equity
      Non-reciprocal transfers of assets and liabilities between wholly-owned Queensland State Public Sector entities as a result of
      machinery-of-Government changes are adjusted to ‘Contributed Equity’ in accordance with Interpretation 1038 Contributions
      by Owners Made to Wholly Owned Public Sector Entities. Appropriations for equity adjustments are similarly designated.
(q)   Machinery of Government
      Service provision for the Training Portfolio of the Department of Education, Training and the Arts was transferred to CAPS
      from the Shared Service Agency as a consequence of a machinery-of-government change with effect from 3 March 2008.
      As a result of this change, assets to the value of $0.4 million, comprising cash of $0.35 million and plant and equipment of
      $0.05 million, were transferred to CAPS.
      Liabilities to the value of $0.73 million for employee provisions were transferred to CAPS.
      The decrease in assets of $0.33 million has been accounted for as a decrease in contributed equity as disclosed in the
      Statement of Changes in Equity.
      256 full-time and part-time employees measured on a full-time equivalent basis were transferred to CAPS.

(r)   Taxation
      CAPS is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax (FBT), and Goods and Services Tax
      (GST). As such, GST credits receivable from/payable to the Australian Taxation Office (ATO) are recognised and accrued.
(s)   Issuance of financial statements
      The financial statements are authorised for issue by the Director-General and the Chief Finance Officer at the date of signing
      the Management Certificate.
(t)   Judgements and assumptions
      CAPS has made no judgements or assessments which may cause a material adjustment to the carrying amounts of assets
      and liabilities within the next reporting period.
(u)   Rounding and comparatives
      Amounts included in these statements are in Australian dollars and have been rounded to the nearest thousand dollars, or
      where that amount is $500 or less, to zero, unless disclosure of the full amount is specifically required. Sub-totals and totals
      may not add up due to rounding, but the overall discrepancy is no greater than two.
      Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period.



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Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming Part Part of the Financial Statementsyear ending year ending 30 June 2008



2. Summary of significant accounting policies (cont)
(v)   New and revised accounting standards
      No Australian accounting standards and interpretations issued or amended and applicable for the first time in the 2007-08
      financial year have an effect on CAPS. Also, CAPS has not voluntarily changed any of its accounting policies.
      CAPS is not permitted to early adopt a new accounting standard ahead of the specified commencement date unless approval
      is obtained from the Treasury Department. Consequently, CAPS has not applied any Australian accounting standards and
      interpretations that have been issued but are not yet effective. CAPS will apply these standards and interpretations in
      accordance with their respective commencement dates.
      At the date of authorisation of the financial report, new or amended Australian accounting standards with future
      commencement dates will have a significant impact on CAPS. Details of such impacts are set below.
      AASB 101 Presentation of Financial Statements has been revised, but such revisions will not impact CAPS until 2009-10.
      This revised standard does not have measurement or recognition implications. Instead, there will be significant changes to the
      presentation of CAPS’ overall financial performance and position, particularly the content of the Statement of Change in
      Equity, and preparation of a new Statement of Comprehensive Income (which will include certain items currently disclosed in
      the Statement of Changes in Equity, in line with the definition of ‘comprehensive income’ in the revised ASB 101).
      All other Australian accounting standards and interpretations with future commencement dates are either not applicable to
      CAPS, or have no material impact on CAPS.




234    Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                                          Finance
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008


                                                                                                              2008             2007
                                                                                                             $’000            $’000

3. User charges
General fees                                                                                                   837              839
Core quarantined corporate services                                                                        30 934            30 441
Less performance return expense                                                                            (2 912)           (2 478)
Quarantined funding received for payment to Corptech                                                       14 389            12 664
Non-core/out of scope corporate services                                                                   64 340            43 799
                                                                                                          107 588            85 265

4. Other revenue
Commissions – payroll                                                                                          271              324
Expenditure recoveries                                                                                       1 232            1 819
                                                                                                             1 503            2 143

5. Gains
Gains on Sale of Plant and Equipment
Plant and Equipment                                                                                              2                    -
                                                                                                                 2                    -

6. Employee expenses
Employee benefits
Wages and salaries                                                                                         57 017            47 070
Employer superannuation contributions *                                                                      6 846            5 601
Long service leave levy *                                                                                    1 006              841
Redundancy payments                                                                                             58               49
Fringe benefits tax                                                                                             84               32
Employee related expenses
Payroll tax *                                                                                                3 030            2 514
Other Employee related expenses                                                                                619              462
Workers’ compensation insurance*                                                                               183              184
                                                                                                           68 843            56 753

* Costs of workers’ compensation insurance and payroll tax are a consequence of employing employees, however are not counted in
employees’ total remuneration package. They are not employee benefits, rather employee related expenses. Employer
superannuation contributions and the long service levies are regarded as employee benefits.

                                                                                                              2008             2007
Number of employees                                                                                          1 100              833

The number of employees includes both full-time and part-time employees measured on a full-time equivalent basis.
Executive Remuneration
The number of senior executives who received or were due to receive total remuneration of $100,000 or more:

$180,000 to $199,999                                                                                             -                    1
Total                                                                                                            2                    2

                                                                                                              2008             2007
                                                                                                             $’000            $’000
The total remuneration of executives shown above **                                                            463              397
** The amount calculated as executive remuneration in these financial statements includes the direct remuneration received, as well
as items not directly received by senior executives, such as the movement in leave accruals and fringe benefits tax paid on motor
vehicles. This amount will therefore differ from advertised executive remuneration packages which do not include the later items.
The total separation and redundancy/termination benefit payment during the year to -   -
executive shown above
The Chief Executive Officer responsible for Corporate and Professional Services (CAPS) is the Director-General of the host agency,
the Department of Education, Training and the Arts. The remuneration of the Chief Executive Officer is not included in the above.



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Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notesto and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008


                                                                                                             2008              2007
                                                                                                            $’000              $’000

7. Supplies and services
Computer support services – CorpTech                                                                      14 729            12 981
Consultants and contractors                                                                               14 115               7 657
Materials and running costs                                                                                 4 726              4 379
Utilities                                                                                                   3 240              2 980
Computer costs                                                                                              1 338               948
Staff travel                                                                                                 706                372
Equipment and building refurbishment                                                                         337                407
Building maintenance                                                                                         350                128
                                                                                                          39 541            29 852

8. Depreciation and amortisation
Depreciation and amortisation were incurred in respect of:
Plant and equipment *                                                                                         99                 90
Internally generated software                                                                                 17                 18
                                                                                                             116                108

 * 2007 Depreciation and amortisation for computer equipment have been recognised in plant and equipment. This is due to the
reclassification of the categories of assets resulting in computer equipment being grouped with plant and equipment.

9. Other expenses
Insurance – Queensland Government Insurance Fund (QGIF) *                                                     26                 25
Equipment hire                                                                                                  3                    2
Audit fees – Internal                                                                                         82                 83
Audit fees – External **                                                                                     122                 84
Motor vehicle leases                                                                                         345                191
Bank Charges                                                                                                    2                    -
                                                                                                             580                385

* Certain losses of public property are insured by the Queensland Government Insurance Fund (QGIF). The claims made in respect
of these losses have yet to be assessed by QGIF and the amount recoverable cannot be estimated reliably at reporting date. Upon
notification by QGIF of the acceptance of the claims, revenue will be recognised for the agreed settlement amount and disclosed as
‘Other Revenues – Insurance compensation from loss of property’.
** Total external audit fees relating to the 2007-08 financial year estimated to be $155,000 (2007: $108,500). There are no non-
audit services included in this amount.

10. Cash and cash equivalents
Imprest accounts                                                                                                2                    2
Cash at bank                                                                                              15 643             9 483
                                                                                                          15 645             9 485

11. Receivables
Debtors of an operational nature                                                                           3 758            2 528
GST input tax credits receivable                                                                             692               330
GST output tax payable                                                                                          -              (5)
Miscellaneous debtors                                                                                           5                5
                                                                                                           4 455            2 858

12. Other current assets
Prepayments                                                                                                   52                     9
                                                                                                              52                     9




236         Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                                                Finance
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear endingyear ending 30 June 2008


                                                                                                                  2008              2007
                                                                                                                 $’000              $’000

13. Intangible assets
Internally generated software:
At cost                                                                                                           176                176
Less Accumulated Amortisation                                                                                     (62)               (45)
                                                                                                                   114               131

Amortisation of intangibles is included in the line item 'Depreciation and Amortisation' in the income statement. All intangible assets
of CAPS have finite useful lives and are amortised on a straight line basis. Refer to Note 2(i). No intangible assets have been
classified as held for sale or form part of a disposal group held for sale.
Intangibles Reconciliation
Reconciliation of the carrying amounts of internally generated software at the beginning and end of the current reporting period.
Software Internally Generated
Carrying amount at 1 July                                                                                         131                149
Amortisation                                                                                                      (17)               (18)
Carrying amount at 30 June                                                                                        114                131

14. Plant and equipment
Plant and equipment:
At cost                                                                                                            918               843
Less Accumulated depreciation                                                                                    (590)              (563)
                                                                                                                   328               280

2007 computer equipment with a net value of $0.15 million has been reclassified into plant and equipment.
CAPS records all plant and equipment assets at historical cost in accordance with Queensland Treasury’s Non-Current Asset
Accounting Policies for the Queensland Public Sector. CAPS has plant and equipment and computer equipment with an original
cost of $309 732 and a written down value of zero still being used in the provision of services. 40 percent of these assets with a
gross cost of $124 000 are expected to be replaced in 2008-09 with the remaining 60% to be replaced in the 2009-10 financial year.
Plant and equipment reconciliation
Reconciliation of the carrying amounts of each class of plant and equipment at the beginning and end of the current reporting period.
Plant and Equipment

Carrying amount at 1 July                                                                                         280                345
Acquisitions                                                                                                        93                37
Acquisitions through restructuring - Note 2(q)                                                                      54                    -
Transfers out to DETA                                                                                                 -              (12)
Depreciation/amortisation                                                                                         (99)               (90)
Carrying amount at 30 June                                                                                        328                280

15. Payables
Trade creditors                                                                                                 6 379              2 952
Other creditors                                                                                                 1 140                647
Sundry payables to Crown – Accrued recreation leave                                                             6 085                     -
                                                                                                               13 604              3 599




                                                                                                                                          237
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notesto and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



                                                                                                              2008                2007
                                                                                                             $’000                $’000

16. Accrued employee benefits
Long service leave levy payable                                                                               298                  221
Wages outstanding                                                                                            1 256                 817
Accrued Recreation Leave*                                                                                        -            4 230
                                                                                                             1 554            5 268

* On 30 June 2008 the State Government introduced a central annual leave scheme. All accrued leave benefits at this date were
transferred to the scheme. The portion of annual leave accrued but unpaid is disclosed as sundry payables to the Crown in Note 15.

17. Other current liabilities
Revenue in advance                                                                                           2 502                 421

18. Reconciliation of operating surplus to net cash from
    operating activities
  Operating surplus                                                                                             13                 310


  Depreciation and amortisation expense                                                                       116                  108
  Loss on sale of plant and equipment                                                                            -                    -
  Gain on sale of plant and equipment                                                                          (2)                    -


  Change in assets/liabilities:
  (Increase)/decrease in net receivables                                                                   (1 597)           (2 065)
  Increase/(decrease) in prepayments                                                                          (44)                  17
  Decrease/(increase) in other current liabilities                                                           2 080                (181)
  (Increase)/decrease in payables                                                                          10 005             1 447
  Increase/(decrease) in accrued employee benefits                                                         (4 678)                 493
  Net transfer of liabilities from departments                                                                   -                    -
  Net transfer of liabilities to departments                                                                     -                    -
  Net cash provided by operating activities                                                                  5 893                 129

19. Non-cash financing and investing activities
Assets and liabilities received or transferred by CAPS as a result of Machinery of Government changes are set out in Note 2(q).

20. Commitments for expenditure
There are no operating and capital commitments as at 30 June 2008.

21. Contingencies
(a) Guarantees and Undertakings
CAPS was not committed to any guarantees at 30 June 2008.
(b) Litigation in Progress
There were no cases filed naming CAPS as defendant as at 30 June 2008.




238    Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                                             Finance
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming PartPart of the Financial Statementsyear endingyear ending 30 June 2008



                                                                                                                 2008            2007
                                                                                           Note
                                                                                                                $’000            $’000

22. Financial Instruments
(a)     Categorisation of Financial Instruments
CAPS has categorised the financial assets and financial liabilities held:
Category
Financial Assets


Cash                                                                                          10              15 645             9 485
Receivables                                                                                   11               4 455             2 858
Total                                                                                                         20 100           12 343


Financial Liabilities


Payables                                                                                      15              13 604             3 599
Total                                                                                                         13 604             3 599

(b) Credit Risk Exposure
CAPS monitors all funds owed and credit risks on a regular basis. The following table represents the CAPS’ maximum exposure to
credit risk based on contractual amounts net of any allowances:
                                                  Maximum Exposure to Credit Risk

Category
Financial Assets:
Cash                                                                                          10              15 645             9 485
Receivables                                                                                   11               4 455             2 858
Total                                                                                                         20 100           12 343

The financial assets of a material nature that are past due are set out as below. CAPS has not impaired any of its financial assets.


2008 Financial assets past due but not impaired

                                          Contractual Repricing/ Maturity Date:
                                                                            Overdue                                              Total
                              Not        Less than            30 - 60          61 - 90            More than      Total       Financial
                          Overdue         30 Days              Days             Days               90 Days    Overdue          Assets
                             $'000            $'000            $'000             $'000                $'000      $'000           $'000
Financial Assets
Receivables                  4 391                51                6                  -                 7         64            4 455
Total                        4 391                51                6                  -                 7         64            4 455




2007 Financial assets past due but not impaired

                                           Contractual Repricing/ Maturity Date:
                                                                        Overdue                                                   Total
                              Not         Less than           30 - 60          61 - 90            More than      Total       Financial
                          Overdue          30 Days              Days             Days              90 Days    Overdue          Assets
                             $'000            $'000            $'000             $'000                $'000      $'000           $'000
Financial Assets
Receivables                  2 796                 -              48                  14                  -        62            2 858
Total                        2 796                 -              48                  14                  -        62            2 858




                                                                                                                                       239
Corporate and Professional Services
Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notes to and Forming Part Part of the Financial Statementsyear ending year ending 30 June 2008



(c)     Liquidity Risk
CAPS is exposed to liquidity risk through its trading in the normal course of business. CAPS manages liquidity risk by ensuring
sufficient funds are available to meet employee and supplier obligations at all times. This is achieved by ensuring that minimum
levels of cash are held to match the expected duration of the various employer and supplier liabilities.

                                                                                              2008 Payable in:
                                                                                 < 1 year     1-5 years      > 5 years       Total

                                                                        Note       $'000           $'000          $'000      $'000
Financial Liabilities
Payables                                                                 15       13 604                -              -    13 604
Total                                                                             13 604                -              -    13 604



                                                                                              2007 Payable in:
                                                                                 < 1 year     1-5 years        > 5 years      Total

                                                                        Note       $'000           $'000          $'000      $'000
Financial Liabilities
Payables                                                                 15        3 599                -              -     3 599
Total                                                                              3 599                -              -     3 599

(d)     Market Risk
CAPS does not trade in foreign currency and is not exposed to commodity price changes. CAPS is not exposed to any forms of
interest rate risk as it does not hold any finance leases, borrowing or cash deposits.
(e)     Fair Value
The fair value of financial assets and liabilities is determined as follows:
The carrying amount of cash, cash equivalents, receivables, and payables approximate their fair value and are not disclosed
separately below.
The carrying amounts of all financial assets and financial liabilities are represented at their fair value.

23. Events Occurring After Balance Date
There were no significant events occurring after balance date.
                                                                                                                   2008      2007
                                                                                                                  $’000      $’000

24. Agency Transactions
CAPS acts as an agent in the collection and distribution of charges and levies for various public sector agencies and employees. A
reconciliation of amounts collected and distributed follows:


Balance 1 July                                                                                                        -           -
Collections during reporting period                                                                                950         714
Distributions to agencies during reporting period                                                                 (950)      (714)
Balance 30 June *                                                                                                     -           -

These transactions and balances are not recognised in CAPS financial statements.

25. Economic Support of Parent Entity
As parent entity of CAPS, the Department of Education, Training and the Arts will guarantee the payment of all debts of the service
provider as and when they fall due.




240       Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                                        Finance
Certificate of Corporate and Professional Services
Certificate of Corporate and Professional Services
Notes to and Forming of the Financial Statements – for the – for the 30 June 2008
Notesto and Forming PartPart of the Financial Statementsyear ending year ending 30 June 2008



These general purpose financial statements have been prepared pursuant to section 40(1) of the Financial
Administration and Audit Act 1977 (the Act), and other prescribed requirements. In accordance with section 40(3) of
the Act we certify that in our opinion:

(a) the prescribed requirements for establishing and keeping the accounts have been complied with in all material
    respects; and

(b) the statements have been drawn up to present a true and fair view, in accordance with the prescribed accounting
    standards, of the transactions of Corporate and Professional Services for the financial year ended 30 June 2008,
    and of the financial position of Corporate and Professional Services at the end of that year.




       Alan Abrahams                             Rachel Hunter
       Chief Finance Officer                     Director-General of Education, Training and the Arts

       27 August 2008                            27 August 2008




                                                                                                                  241
Independent Audit Report
Independent Auditors Report

To the Accountable Officer of Corporate and Professional Services

Matters Relating to the Electronic Presentation of the Audited
Financial Report
The audit report relates to the financial report of Corporate and Professional Services for the
financial year ended 30 June 2008 included on the Department of Education, Training and
the Arts’ web site. The Accountable Officer is responsible for the integrity of the Department
of Education, Training and the Arts’ web site. We have not been engaged to report on the
integrity of the Department of Education, Training and the Arts’ web site. The audit report
refers only to the statements named below. It does not provide an opinion on any other
information which may have been hyperlinked to/from these statements. If users of the
financial report are concerned with the inherent risks arising from electronic data
communications they are advised to refer to the hard copy of the audited financial report,
available from the Department of Education, Training and the Arts, to confirm the information
included in the audited financial report presented on this web site.
These matters also relate to the presentation of the audited financial report in other electronic
media including CD ROM.
Report on the Financial Report
I have audited the accompanying financial report of Corporate and Professional Services,
which comprises the balance sheet as at 30 June 2008, and the income statement,
statement of changes in equity, cash flow statement, a summary of significant accounting
policies, other explanatory notes and the certificates given by the Director-General and the
Chief Finance Officer.
Accountable Officer’s Responsibility for the Financial Report
The Accountable Officer is responsible for the preparation and fair presentation of the
financial report in accordance with prescribed accounting requirements identified in the
Financial Administration and Audit Act 1977 and the Financial Management Standard 1997,
including compliance with applicable Australian Accounting Standards (including the
Australian Accounting Interpretations). This responsibility includes establishing and
maintaining internal controls relevant to the preparation and fair presentation of the financial
report that is free from material misstatement, whether due to fraud or error; selecting and
applying appropriate accounting policies; and making accounting estimates that are
reasonable in the circumstances.
Auditor’s Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The
audit was conducted in accordance with Auditor-General of Queensland Auditing Standards,
which incorporate the Australian Auditing Standards. These Auditing Standards require
compliance with relevant ethical requirements relating to audit engagements and that the
audit is planned and performed to obtain reasonable assurance whether the financial report
is free of material misstatement.




242   Department of Education, Training and the Arts 2007–08 Annual Report
                                                                                                        Finance
Independent Audit Report
Independent Auditors Report

An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s
judgement, including the assessment of risks of material misstatement in the financial report,
whether due to fraud or error. In making those risk assessments, the auditor considers the
entity’s preparation and fair presentation of the financial report in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control, other than in expressing an
opinion on compliance with prescribed requirements. An audit also includes evaluating the
appropriateness of accounting policies and the reasonableness of accounting estimates
made by the Accountable Officer, as well as evaluating the overall presentation of the
financial report and any mandatory financial reporting requirements as approved by the
Treasurer for application in Queensland.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for
my audit opinion.
Independence
The Financial Administration and Audit Act 1977 promotes the independence of the
Auditor-General and QAO authorised auditors. The Auditor-General is the auditor of all
Queensland public sector entities and can only be removed by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not
subject to direction by any person about the way in which audit powers are to be exercised.
The Auditor-General has for the purposes of conducting an audit, access to all documents
and property and can report to Parliament matters which in the Auditor-General’s opinion are
significant.
Auditor’s Opinion
In accordance with s.40 of the Financial Administration and Audit Act 1977 –
(a)    I have received all the information and explanations which I have required; and
(b)    in my opinion –
       (i)     the prescribed requirements in respect of the establishment and keeping of
               accounts have been complied with in all material respects; and
       (ii)    the financial report has been drawn up so as to present a true and fair view, in
               accordance with the prescribed accounting standards of the transactions of the
               Corporate and Professional Services for the financial year 1 July 2007 to 30
               June 2008 and of the financial position as at the end of that year.




J F WELSH FCPA                                                       Queensland Audit Office
as Delegate of the Auditor-General of Queensland                                  Brisbane




                                                                                                  243

				
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