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Financial Statements

AMSA, 14th Annual Report, 2003 - 2004

Independent Audit Report

Australian Maritime Safety Authority Statement By Directors

Statement of Financial Performance

Australian Maritime Safety Authority
for the year ended 30 June 2004

	Notes	2004 $'000	2003 $'000
REVENUE
Revenues from ordinary activities
Revenues from government	5A	64,575	69,060
Goods and services	5B	2,625	2,585
Interest	5C	928	697
Revenue from sales of assets	5D	18	21
Other revenues		262	365
Revenue from ordinary activities		68,408	72,728
EXPENSE
Expenses from ordinary activities
Employees	6A	24,210	23,459
Suppliers	6B	27,249	26,977
Depreciation and amortisation	6C	11,474	10,622
Write-down of assets	6D	4	-
Value of assets sold	8C	1,374	279
Expenses from ordinary activities		64,311	61,337
Operating surplus from ordinary activities		4,097	11,391
Net profit		4,097	11k391
Net credit to asset revaluation reserve	11	15,832	1,784
Total changes in equity other than those resulting from transactions with the Austrlaian Government as owner		19,929	13,175

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

Statement of Financial Position

Australian Maritime Safety Authority
as at 30 June 2004

	Notes	2004 $'000	2003 $'000
ASSETS
Financial assets
Cash	12B, 19	4,316	4,506
Receivables	7A, 19	3,184	1,402
Investments	7B, 19	15,681	11,058
Total financial assets		23,181	16,966
Non-financial assets
Land and buildings	8A, C	6,437	6,624
Infrastructure, plant and equipment	8B, C	65,341	50,354
Inventories	8E	2,246	2,220
Intangibles	8D	7,878	9,570
Other non-financial assets	8F	424	522
Total non-financial assets		82,326	69,290
Total assets		105,507	86,256
LIABILITIES
Provisions
Employees	9A	7,963	7,753
Total provisions		7,963	7,753
Payables
Suppliers	10A, 19	2,978	3,886
Other	10B, 19	184	164
Total payables		3,162	4,050
Total liabilities		11,125	11,803
NET ASSETS		94,382	74,453
EQUITY
Contributed Equity	11	25,310	25,310
Reserves	11	35,135	19,303
Accumulated surpluses	11	33,937	29,840
Total equity		94,382	74,453
Current assets		22,605	13,488
Non-current assets		82,902	72,768
Current Liabilities		6,494	8,165
Non-current liabilities		4,631	3,638

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

Statement of Cash Flows

Australian Maritime Safety Authority
for the year ended 30 June 2004

	Notes	2004 $'000	2003 $'000
OPERATING ACTIVITIES
Cash received
Sales of goods and services		2,160	2,703
Appropriations		63,375	69,125
Interest		853	690
Other		262	365
GST recovered from ATO		3,624	3,763
Total cash received		70,274	76,646
Cash used
Employees		23,980	22,932
Suppliers		31,919	33,717
Total cash used		55,899	56,649
Net cash from operating activities	12A	14,275	19,997
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment		18	20
Proceeds form sales of Investments		-	-
Total cash received		18	20
Cash used
Purchase of property, plant and equipment		8,958	7,529
Purchase of Investments		4,623	-
Purchase of intangibles		1,002	317
Total cash used		14,583	7,846
Net cash from/(used by) investing activities		(14,565)	(7,826)
FINANCING ACTIVITIES
Cash received
Appropriations - contributed equity		-	-
Total cash received		-	-
Cash used
Repayment of capital		-	-
Capital use charge paid		-	7,609
Total cash used		-	7,609
Net cash from/(used by) financing activities		-	(7,609)
Net increase/ (decrease) in cash held		(190)	4,562
Cash at the beginning of the reporting period		4,562	(56)
Cash at the end of the reporting period	12B	4,316	4,506

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

Schedule of Commitments

Australian Maritime Safety Authority
as at 30 June 2004

	Notes	2004 $'000	2003 $'000
BY TYPE
CAPITAL COMMITMENTS
Infrastructure, plant and equipment 1		3,575	1,360
Total capital commitments		3,575	1,360
OTHER COMMITMENTS
Operating leases 2		10,250	8,517
Other commitments 3		16,151	25,342
Total other commitments		26,401	33,859
COMMITMENTS RECEIVABLE		(2,7250	(3,202)
Net commitments		27,251	32,017
BY MATURITY
Capital commitments
One year or less		3,575	1,360
Total capital commitments		3,575	1,360
Operating lease commitments
One year or less		3,314	2,886
From one to five years		5,566	5,617
Over five years		1,370	14
Net operating lease commitments		10,250	8,517
Other commitments
One year or less		11,477	11,996
From one to five years		4,404	13,346
Over five years		270	-
Total other commitments		16,151	25,342
Commitments receivable		(2,725)	(3,2020
Net commitments		27,251	32,017

NB: Commitments are GST inclusive where relevant.

¹ Relates primarily to a contractual agreement with TVNZ Australia Ltd. for the provision of shore based facilities for terrestrial radio services and Immarsat satellite services, and assets under construction;

² Operating leases included are effectively non-cancellable and comprise:

Nature of lease	General description of leasing arrangement
Leases for office accommodation	lease payments are subject to annual increases in accordance with the terms specified in the lease agreements
Motor vehicles to AMSA officers	no contingent rentals exist; there are no renewal or purchase options available to the Agency

³ As at 30 June 2004, other commitments relate primarily to:

• a contractual agreement with Australian Maritime Systems Ltd. for the provision of navigational aid maintenance services balued at $5,845,455 (2003: $12,488,398)
• a contractural agreement with TVNZ Australia Ltd. for the provision of shore based facilites for terrestrial radio services and Inmarsat satellite services valued at $3,668,600 (2003: $4,992,000); and
• a contractural agreement with Xantic BV for the provision of Inmarsat Satellite services valued at $1,612,749 (2003: $2,520,960)

The above schedule should be read in conjunction with the accompanying notes

Schedule of Contingencies

Australian Maritime Safety Authority
as at 30 June 2004

	Notes	2004 $'000	2003 $'000
CONTINGENT LIABILITIES
Claims for damages/costs	13	1,2850	50
Total contingent liabilities		1,285	50
CONTINGENT ASSETS
Legal claims	13	985	50
Total contingent gains		985	50
Net contingent liabilities		300	-

Details of each class of contingent liabilities and assets, including those not disclosed above because they cannot be quantified or are considered remote, are shown in Note 13: Contingent Liabilities and Assets.

Schedule of Administered Items

Australian Maritime Safety Authority
as at 30 June 2004

	Notes	2004 $'000	2003 $'000
Revenues administered on behalf of the Government for the year ended 30 June 2004
Non-taxation revenue	20A
Appropriation		5,305	5,200
Interest		6	9
Total revenues administered on behalf of the Government		5,311	5,209
Expenses administered on behalf of the Government for the year ended 30 June 2004	20B
Supplier Expenses		4,799	5,721
Total expenses administered on behalf of the Government		4,799	5,721
Assets administered on behalf of the Government as at 30 June 2004	20C
Financial assets
cash as bank		(178)	140
Receivables (current)
GST receivables		62	106
other receivables		97	98
		159	204
Total assets administered on behalf of the Government		(19)	353
Liabilities administered on behalf of the Government as at 30 June 2004	20D
Trade creditors		49	673
Other creditors		185	128
Total liabilities administered on behalf of the Government		234	801
Administered cash flow for the year ended 30 Juner 2004
Operating activities	20E
cash received
appropriation		5,068	5,200
Interest		6	9
Total cash received		5,074	5,209
Cash used		5,401	5,313
Total cas used		5,401	5,313
Net cash (used in) operating activites		(327)	(104)
Cash at the beginning of the reporting period		149	253
Cash at the end of the reporting period		(178)	149

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

Notes To and Forming Part of the Financial Statements

Australian Maritime Safety Authority
for the year ended 30 June 2004

Note	Description
1	Summary of Significant Accounting Policies
2	Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006
3	Economic Dependency
4	Events Occuring after Reporting Date
5	Operating Revenues
6	Operating Expenses
7	Financial Assets
8	Non-Financial Assets
9	Provisions
10	Payables
11	Equity
12	Cash Flow Reconciliation
13	Contingent Liabilites and Assets
14	Directors Remuneration
15	Related Party Disclosures
16	Remuneration of Officers
17	Remuneration of Auditors
18	Average Staffing Levels
19	Financial Instruments
20	Administered Revenue
21	Appropriations
22	Reporting of Outcomes

Note 1 Statement of Significant Accounting Policies

1.1 Basis of Accounting

The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities and Companies Act 1997 and are a general purpose financial report.

The statements have been prepared in accordance with:

• Finance Minister's Orders (being the Commonwealth Authorities and Companies (Financial Statements for reporting periods ending on or after 30 June 2004));
• Australian Accounting Standards and Accounting Interpretations issued by the Australian Accounting Standards Boards;
• other authoritative pronouncements of the Board; and
• Consensus Views of the Urgent Issues Group.

The Authority's Statement of Financial Performance and Financial Position have been prepared on an accrual basis and are in accordance with historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

Assets and liabilities are recognised in the Authority's Statement of Financial Position when and only when it is probable that future economic benefits will flow and the amounts of assets and liabilities can be reliably measured. Assets and liabilities arising under agreements equally proportionately unperformed are however not recognised unless required by an accounting standard. Liabilities and assets which are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at Note 13).

Revenues and expenses are recognised in the Authority's Statement of Financial Performance when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

Administered revenues, expenses, assets, liabilities and cash flows reported in the Schedule of Administered Items and related notes are accounted for on the same basis and using the same policies as for Authority items, except where stated in Note 1.20.

1.2 Changes in Accounting Policy

The accounting policies used in the preparation of these financial statements are consistent with those used in 2002-2003, except in respect of:

• the initial revaluation of property, plant and equipment on a fair value basis (refer note 1.12); and
• the presentation and disclosure of appropriations (refer note 21).

1.3 Reporting by Outcomes

A comparison of Budget and Actual figures by outcome specified in the Appropriation Acts relevant to the Authority is presented in Note 22. Any intra-government costs included in the figure `net cost to Budget outcomes' are eliminated in calculating the actual budget outcome for the Government overall.

1.4 Revenue

The revenues described in this Note are revenues relating to the core operating activities of the Authority.

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the relevant asset.

Dividend revenue is recognised when the right to receive a dividend has been established.

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

Revenue from the rendering of a service is recognised by reference to the stage of completion of contract to provide the service. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Revenues from Government - Output Appropriations

The major appropriation revenue for the Authority relates to maritime infrastructure charges and includes levies received by the Commonwealth under the Marine Navigation Levy Act 1989, the Protection of the Sea (Shipping Levy) Act 1981 and the Marine Navigation (Regulatory Functions) Levy Act 1991 and through agreements with the Commonwealth for the provision of search and rescue and maritime communications services.

The full amount of the appropriation for departmental outputs for the year is recognised as revenue.

Resources Received Free of Charge

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

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition.

1.5 transactions by the Government as Owner

Equity Injections

Amounts appropriated by the Parliament as equity injections are recognised as "contributed equity" in accordance with the Finance Ministers Orders.

1.6 Employee Entitlements

Benefits

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

Liabilities for wages and salaries (including non-monetary benefits), annual leave and sick leave are measured at their nominal amounts. Other employee benefits expected to be settled within 12 months of their reporting date are also to be measured at their nominal amounts.

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

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

Leave

The liability for employee benefits includes provision for 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 Authority is estimated to be less than the annual entitlement for sick leave.

The leave liabilities are calculated on the basis of employee's remuneration, including the Authoritie's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The non-current portion of the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2004. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotionn and inflation.

Separation and redundancy

Provision is also made for separation and redundancy payments in circumstances where the Authority has formally identified positions as excess to requirements and a reliable estimate of the amount of the payments can be determined.

Superannuation

Employees of AMSA are members of the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. The liability for their superannuation benefits is recognised in the financial statements of the Commonwealth and is settled by the Commonwealth in due course..

AMSA makes employer contributions to the Commonwealth at rates determined by the actuary to be sufficient to meet the cost to the Commonwealth of the superannuation entitlements of the Authority's employees.

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

1.7 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.

Operating lease payments are expensed on a basis which is representative of the patter of benefits derived from leased assets. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

Lease incentives taking the form of 'free' fitout and rent holidays are recognized as liabilities. Allocating lease payments between rental expenses and reduction of the liability reduces these liabilities.

1.8 Appropriations Receivable

These receivables are recognised at the nominal amounts due.

1.9 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. Interest is credited to revinue as it accrues.

1.10 Financial Instruments

Accounting policies for financial instruments are stated at Note 19.

1.11 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.

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, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognsed in the transferor entity's accounts immediately prior to restructuring.

1.12 Property (Land, Buildings and Infrastructure), plant and equipment

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $3,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Revaluations

Land, buildings, infrastructure, plant and equipment are carried at valuation. Revaluations undertaken to 30 June 2002 were done on a deprival basis; revaluations since that date are as fair value. Australian Accounting Standard AASB 1041 Revaluation of Non-Current Assets requires this change in accounting policy.

Fair and deprival values for each class of assets are determined as show below.

Asset Class	Fair Value Measured at:	Deprival Value Measured at:
Land	market selling price	market selling price
Building	market selling price	depreciated replacement cost
Leasehold improvements	depreciated replacement cost	depreciated replacement cost
Plant & Equipment	market selling price	depreciated replacement cost

Under both deprival and fair value, assets that are surplus to requirements are measured at their net realisable value. At 30 June 2004 AMSA held no surplus assets (30 June 2003: $0)

The financial effect for 2003-04 of this change in policy relates to those assets to be recognised at fair value at 30 June 2004. The financial effect of the change is given by the difference between the carrying amount at 30 June 2003 of these assets and their fair values as at 1 July 2004. The financial effect by class is as follows:

Asset Class	Adjustment	Contra Account
Land	$288,000	Asset Revaluation Reserve
Building	$1,081,059	Asset Revaluation Reserve
Vessels	$207,887	Asset Revaluation Reserve
Aids to Navigation	$14,255,503	Asset Revaluation Reserve

Total financial effect was to a net credit to the asset revaluation reserve of $15,832,449.

Frequency

Land and buildings, aids to navigation and vesses and amphibian assets were revalued in the 2003-2004 financial year. Plant and equipment, office and computer equipment, furntiture and fittings and vehicles were revalued in the 2002-2003 financial year.

Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive revaluation then in progress.

Conduct

All valuations are conducted by an independent qualified valuer.

Valuation of Heritage Assets

Heritage assets are not brought to account, as the economic benefit of these items which would otherwise be acquired if the Authority was to be deprived of these items, is not material.

Depreciation and Amortisation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the Authority using, in all cases, the straight line method of depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation/amortisation rates (useful lives) and methods are reviewed at each balance date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate. Residual values are re-estimated for a change in prices only when assets are revalued.

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

	2004	2003
Buildings	20 to 40 years	20 to 40 years
Furniture and fittings (includes leasehold improvements)	4 to 10 years	4 to 10 years
Plant and equipment	3 to 30 years	3 to 30 years
Office and computer equipment	3 to 16 years	3 to 16 years
Aids to navigation	3 to 40 years	3 to 40 years
Vessels and amphibians	10 to 20 years	10 to 20 years
Vehicles	5 to 8 years	5 to 8 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in Note 8.

Functional difficulties associated with the assets component of the financial managemetn system and associated data has required the reconstruction of the assets register information to produce the relevant financial statement figures. These are auditable and materially correct, though may be subject to future adjustments.

1.13 Inventories

Inventories include bulk purchases of managed stores, which are expected to be used within twelve months, less a provision for obsolete and slow moving stock. These items are not held for resale and are valued at net realisable value.

All inventories are non-current assets.

1.14 Intangibles

The Authority's intangibles comprise software and rights. During the financial year ended 30 June 1996, the Authority purchased a right to four child care places in a joint Departmental venture to build a child care centre. The right can be sold to other Departments, and additional rights are able to be purchased by the Authority. The asset is to be amortised over 10 years, being the number of years the right to places exists. 

During the financial year ended 30 June 1998, the Authority paid $220,000 to Telstra to gain access to a tower on Warraber Island. This right is to be amortised over 15 years, being the number of years the period of access exists.

During the financial years ended 30 June 2001 and 30 June 2002, the Authority paid $9,650,000 to TVNZ Australia Ltd. upon signing a contract for the provision of shore based facilities for terrestrial radio services and Inmarsat services in accordance with the requirements of the Global Maritime Distress and Safety (GMDSS).

These assets are carried at cost. The carrying amount of each non-current intangible asset is reviewed to determine whether it is in excess of the asset's recoverable amount. If an excess exists as at the reporting date, the asset is written down to its recoverable amount immediately. In assessing recoverable amounts, the relevant cash flows, including the expected cash inflows from future appropriations by the Parliament, have been discounted to their present value.

No write-down to recoverable amount has been made in 2003-04.

1.15 Impairment of Non-Curent Assets

Non-current assets carried at up-to-date fair value at the reporting date are not subject to impairment testing.

AMSA had not identified any non-current assets that were not used in generating income, and were waiting disposal at 30 June 2004.

1.16 Capital Works Under Construction

Capital works under construction are carried at cost and capitalised when completed and ready for use. Costs include both direct and indirect costs, which can be reasonably attributed to the capital work under construction. Direct and indirect costs include amounts recovered from employee, administrative and vessel costs.

1.17 Taxation

The Authority and its subsidiary are exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:

• except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and
• except for receivables and payables.

1.18 Foreign Currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current as at balance date. Associated currency gains and losses are not material.

1.19 Insurance

The Authority has insured for risks through the Government's insurable risk managed fund, called 'Comcover'. Workers compensation is insured through Comcare Australia.

1.19 Comparative Figures

Comparative figures have been adjusted to conform to changes in presentation in these financial statements where required.

1.20 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 otherwise stated betlow, administered items are accounted for on the same basis and using the same policies as for Authority items, including the application to the greatest extent possible for Accounting Standards, Accounting Interpretations and UIG Consensus Views.

Administered revenues transferred or transferable to the Official Public Account (OPA) are not reported as administered expenses or payables. These transactions or balances are internal to the Administered entity.

These transfers of cash are reported as administered (operating) cash flows in Note 20E and in the administered reconcilation table in Note 20F.

Note 2. Adoption of Australian Equivalents to International Financial Reporting Standards from 2005-2006

The Australian Accounting Standards Board (AASB) has issued replacement Australian Accounting Standards to apply from 2005-2006. The new standards are the Australian Equivalents to International Financial Reporting Standards (IFRSs), which are issued by the International Accounting Standards Board. The new standards cannot be adopted early. The standards being replaced are to be withdrawn with effect from 2005-06, but continue to apply in th meantime.

The primary purpose of issuing Australian Equivalents to IFRSs is to enable Australian entities reporting under the Corporations Action 2001 to be able to more readily access overseas capital markets by preparing their financial reports according to accounting standard more widely used overseas.

It is expected that the Finance Minister will continue to require compliance with the Accounting Standards issues by ASSB, including the Australian Equivalents to IFRSs, in his Orders for the Preparation of Authorities' financial statements for 2005-06 and beyond.

The Australian Equivalents contain certain additonal provisions, which will apply to not-for-profit entities, including AMSA. Some of these provisions are in conflict with the IFRSs and therefore AMSA will only be able to assert compliance with the Australian Equivalents to the IFRSs.

Existing AASB standards that have no IFRS equivalent will continue to apply.

Accounting Standard AASB 1047 Disclosing the Impact of Adopting Australian Equivalents to IFRSs requires that the financial statements for 2003-04 disclose:

• an explanation of how the transition to the Australian Equivalents is being managed, and
• a narrative explanation of the key differences in accounting policies arising from the transition.

The purpose of this Note is to make these disclosures.

Management of the transition to AASB Equivalents to IFRSs

AMSA has taken the following steps in preparation towards the implementation of Australian Equivalents:

• carried out an initial evaluation of major differences between the current AASB standards and the Australian Equivalents to IFRSs progressively to 30 June 2004 to establish the potential areas of impact on AMSA.
• reported to the Board on areas of possible impact to AMSA.
• identified system changes required to meet the new requirements of the Australian Equivalents to IFRS and configured its' nmew (replacement) system to meet those needs.
• established a Working Party to oversight the transition to and the implementation of the Australian Equivalents to IFRS. This oversight role will include reviews of transition and implementation plans and risk assessment plants. The Chief Financial Officer is formally responsible for the project and reports regularly to the Working Party.

Consultants will be engaged to assist with the implementation of the Australian Equivalents to IFRS as necessary.

Major changes in accounting policy

Changes in accounting policies under Australian Equivalents are applied retrospectively ie as if the new policy had always applied. the rule means that a balance sheet prepared under the Australian Equivalents must be made as at 1 July 2004, except as permiteed in particular circumstances by AASB 1047 First-time Adoption of Australian Equivaltend to International Financial Reporting Standards.

This will enable the 2005-06 financial statements to report comparatives under the Australian Equivalents also.

Changes to major accounting policies are discussed in the following paragraphs.

Property plant and equipment

It is expected that the Finance Minister's Orders will require property plant and equipment assets carried at valuation in 2003-04 to be measured at up-to-date fair value from 2005-06. This differes from the accounting policies currently in place for these assets, which up to and including 2003-04, have been re-valued progressively over a 3-year cycle and which currently include assets at cost (for purchases since the commencement of a cycle) and at deprival vlaue (which will differ from their fair value to the extent that they have been measured at depreciated replacement cost when a relevant market selling price is available).

It is important to note that the Finance Minister requires these assets to be measured at up-to-date fair values as at 30 June 2005. Further, the transitional provisions in AASB 1047 will mean that the values at which assets are carried as at 30 June 2004 under existing standards will stand in the transitional balance sheet as at 1 July 2004.

Impairment of Non-Current Assets

Under the new Australian Equivalent Standard, these assets will be subject to assement for impairment and, if there are indications of impairment, measurement of any impairments (impairment measurement must also be done, irrespective of any indications of impairments, for intangible assets not yet available for use). The impairment test is that the carrying amount of an asset must not exceed the greater of (a) its fair value less costs to sell and (b) its value in use. 'Value in use' is the net present value of net cash inflows for for-profit assets of the AMSA and depreciated replacement cost for other assets which would be replaced if the AMSA were deprived of them.

Inventory

The new Australian Equivalent standard will require inventory held for distribution for no consideration or at a nominal amount to be carried at the lower of costs or current replacement cost.

Employee Benefits

The provision for long service leave is measured at the present value of the estimated furture cash outflows using market yields as at the reporting date on national government bonds.

Under the new Australian Equivalent standard, the same discount rate will be used unless there is a deep market in high quality corporate bonds, in which case the market yield on such bonds must be used.

Financial Instruments

Financial assets and liabilities are likely to be accounted for as 'held at fair value through profit and loss' or available-for-sale where the fair value can be reliably measured (in whcih case, changes in value are initially taken to equity). Fair values will be published prices where an active market exists or by appraisal.

Cash and receivables are expected to continue to be measured at cost information.

Financial assets, except those classified as 'held at fair value through profit and loss', will be subject to impairment testing.

Note 3. Economic Dependency

The Australian Maritime Safety Authority was established by the Australian Maritime Safety Authority Act 1990 which came into effect on 22 October 1990 and is controlled by the Commonwealth of Australia.

The Authority is dependent on appropriations from the Parliament of the Commonwealth for its continued existence and ability to carry out its normal activities.

Note 4. Events Occuring After Reporting Date

AMSA is not aware of any subsequent event that has occurred since balance date that could materially effect these financial statements.

Note 5. Operating Revenues

	2004 $'000	2003 $'000
Note 5A - Revenues from Government Appropriations for outputs
Australian Maritime Safety Act 1990, s.48
Marine Navigation Levy	19,163	19,280
Regulatory Function Levy	24,830	22,578
Protection of the Sea Levy	4,313	3,888
Services provided on behalf of government	16,268	15,705
Capital use charge received	-	7,609
Total revenues from government	64,575	69,060
Note 5B. Sales of goods and services
Goods	28	35
Services	2,597	2,550
Total sales of goods and services	2,625	2,585
Provision of goods to:
Related entities	13	19
External entities	15	16
Total provision of goods	28	35
Rendering of services to:
Related entities	830	178
External entities	1,767	2,372
Total rendering of services	2,597	2,550
Cost of sales of goods	28	35
Note 5C. Interest
Deposits	928	697
Total interest revenue	928	697
Note 5D. Net Gain from Sale of Assets
Land and Buildings
Proceeds from disposal	12	-
Net book value of assets disposed	(51)	-
Write-offs	(29)	-
Net gain/(loss) from disposal of land and buildings	(68)	-
infrastructure, plant and equipment
Proceeds from disposal	6	21
Net book value of assets disposed	(39)	(72)
Write-offs	(1,255)	(207)
Net gain/(loss) from disposal of infrastructure, plant and equipment	(1,288)	(258)
Total proceeds from disposals	18	21
Total value of assets disposed	(1,374)	(279)
Total net loss from disposal of assets	(1,356)	(258)

Note 6. Operating Expenses

	2004 $'000	2003 $'000
Note 6A. Employee expenses
Wages and Salaries	17,609	17,518
Superannuation	2,766	2,256
Leave and other entitlements	2,208	2,054
Separation and redundancy	282	296
Other employee benefits	1,146	1,126
Total employee benefits expenses	24,011	23,250
Workers compensation premiums	199	209
Total employee expenses	24,210	23,459
Note 6B. Suppliers expenses
Goods from related entities	-	-
Goods from external entities	23,323	22,967
Services from related entitites	-	-
Services from external parties	28	29
Vessel operating costs	1,134	1,465
Operating lease rentals	2,764	2,516
Total supplier expenses	27,249	26,977
Note 6C. Depreciation and amortisation
Depreciation of property, plant and equipment and intangibles	11,474	10,622
Total depreciation and amortisation	11,474	10,622
The aggregate amounts of depreciation or amortisation expensed during the reporting period for each class of depreciable assets are as follows:
Buildings on freehold land	1,476	367
Plant and Equipment	7,304	7,675
Intangibles	2,694	2,580
Total depreciation and amortisation	11,474	10,622
Note 6D. Write-down of assets
Bad and doubtful debts expense	4	-
Total write-down of assets	4	-

Note 7. Financial Assets

	2004 $'000	2003 $'000
Note 7A. Receivables
Goods and services	410	372
Less: Provision for doubtful debts	(12)	(9)
	398	363
Appropriation receivable	1,480	280
less: provision for doubltful debts	-	-
	1,480	280
Interest receivable	98	23
GST Receivables	623	578
other receivables	585	158
Total receivables (net)	3,184	1,402
All receivables are current assets.
Receivables (gross) are aged as follows:
Not overdue	3,142	1,331
Overdue by: - less than 30 days - 30 to 60 days - 60 to 90 days - more than 90 days	- 28 15 11	58 8 3 11
	54	80
Total receivables (gross)	3,196	1,411
The provision for doubtful debts is aged as follows:
Not overdue	-	-
Overdue by: - less than 30 days - 30 to 60 days - 60 to 90 days - more than 90 days	- - (2) (10)	- (2) (1) (5)
Total provision for doubtful debts	(12)	(8)
Note 7B. Investments (section 18C CAC Act)
Floating rate notes	5,000	8,500
Deposits at call	84	31
Term deposits	10,597	2,527
Total investments	15,681	11,058
Investments are categorised as follows:
Current	14,681	7,058
Non-current	1,000	4,000
Total investments	15,681	11,058

Note 8. Non-financial assets

	2004 $'000	2003 $'000
Note 8A. Land and buildings
Freehold Land
- at cost	-	-
- at independent valuation 2001 (deprival)	234	808
- at independent valuation 2004 (fair value)	862	-
Total freehold land	1,096	808
Buildings on freehold land
- at cost	-	1,664
- Accumulated depreciation	-	(230)
	-	1,434
- at independent valuation 2001 (deprival)	62	5,005
- accumulated depreciation	(5)	(623)
	57	4,382
- at independent valuation 2004 (fair value0	7,694	-
- accumulated depreciation	(2,680)	-
	5,284	-
Total Buildings on freehold land	5,341	5,816
Total Land and Buildings	6,437	6,624
Note 8B. Infrastructure, plant and equipment
Aids to navigation
- at cost	1,971	14,145
- accumulated depreciation	(103)	(1,758)
	1,868	12,387
- at independent valuation 2000 (deprival)	1,826	32,572
- accumulated depreciation	(869)	(9,034)
	958	23,538
-at independent valuation 2004 (fair value)	125,813	-
-accumulation depreciation	(81,156)	-
	44,657	-
Total Aids to Navigation	47,483	35,925
Plant and equipment
- at cost	2,519	3,835
- accumulated depreciation	(529)	(2,389)
	1,990	1,446
- at independent valuation 2000 (deprival)	-	2,549
- accumulated depreciation	-	(715)
	-	1,834
-at independent valuation 2003 (fair value)	10,344	10,101
-accumulated depreciation	(5,326)	(5,251)
	5,018	4,850
Total Plant and Equipment	7,008	8,130
Office and computer equipment
- at cost	1,480	574
- accumulated depreciation	(1,065)	(151)
	415	423
- at independent valuation 2000 (deprival)	-	168
- accumulated depreciation	-	(168)
	-	-
- at independent valuation 2003 (fair value)	3,342	3,287
- accumulated depreciation	(2,779)	(2,325)
	563	962
Total Office and Computer Equipment	978	1,385
Furniture and fittings
- at cost	56	871
- accumulated depreciation	(18)	(834)
	38	37
- at independent valuation 2000 (deprival)	-	8
- accumulated depreciation	-	(3)
	-	5
- at independent valuation 2003 (fair value)	3,859	4,415
- accumulated depreciation	(2,434)	(2,424)
	1,435	1,991
Total Furniture and Fittings	1,473	2,033
Vehicles
- at cost	-	-
- accumulated depreciation	-	-
	-	-
- at independent valuation 2003 (fair value)	398	398
- accumulated depreciation	(393)	(333)
	5	65
Total Vehicles	5	65
Vessels and Amphibians
- at cost	-	-
Accumulated depreciation	-	-
	-	-
- at independent valuation 2001 (deprival)	351	1,459
Accumulated depreciation	(130)	(438)
	221	1,021
- at independent valuation 2004 (fair value)	4,895	-
- accumulated depreciation	(4,192)	-
	703	-
Total Vessels and Amphibians	924	1,021
Capital works under construction	7,470	1,795
Total Infrastructure, Plant and Equipment	65,341	50,354
All revaluations are independent and are conducted in accordance with the revaluation policy stated at Note 1. In 2002-03, the revaluations were conducted by an independent valuer Australian Valuation Office, North West Valuation Services and J E Whites Pty Ltd.
Movement in Asset Revaluation Reserve
Increment for plant and equipment	-	1,133
Increment for office and computer equipment	-	40
Increment for furniture and fittings	-	560
Increment for vehicles	-	51
Increment for Navigational Aids	14,255	-
Increment for buildings	1,081	-
Increment for land	288	-
Increment for vessels	208	-
	15,832	1,784

Note 8C. Analysis of Property, Plant, Equipment and Intangibles

TABLE A - Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Item	Land $'000	Buildings on Freehold Land $'000	Total Land & Buildings $'000	Other Infra- structure, plant & equipment $'000	Computer Software $'000	Other Intan- gibles $'000	TOTAL $'000
As at 1 July 2003
Gross book value	808	6,669	7,477	76,177	3,523	10,038	97,215
accumulated depreciation/amortisation	n/a	(853)	(853)	(25,823)	(1,902)	(2,089)	(30,667)
Net Book Value	808	5,816	6,624	50,354	1,621	7,949	66,548
Additions
By purchase	-			9,122	1,002	-	10,124
From acquisition of operations	-	-	-	-	-	-	-
Net revaluation increment/decrement	288	1,081	1,369	14,463	-	-	15,832
Depreciation/amortisation expense	n/a	(1,476)	(1,4760)	(7,304)	(182)	(2,512)	(11,474)
Recoverable Amount write-downs	-	-	-	-	-	-	-
Disposals
From disposal of operations	-	-	-	-	-	-	-
Other disposals	-	(80)	(80)	(1,294)	-	-	(1,374)
As at  30 June 2004
Gross book value	1,096	8,026	9,122	164,325	4,526	10,038	188,011
Accumulated depreciation/amortisation	n/a	(2,685)	(2,685)	(98,984)	(2,085)	(4,601)	(108,355)
Net book value	1,096	5,341	6,437	65,341	2,441	5,437	79,656

TABLE B - Assets at Valuation

Item	Land $'000	Buildings on Freehold Land $'000	Total Land & Buildings $'000	Other Infra- structure, plant & equipment $'000	Computer Software $'000	Other Intan- gibles $'000	TOTAL $'000
As at 30 June 2004
Gross value	1,096	8,026	9,122	150,829	-	-	159,951
accumulated depreciation/amortisation	n/a	(2,685)	(2,685)	(97,269)	-	-	(99,954)
Net book value	1,096	5,341	6,437	53,560	-	-	59,997
As at  30 June 2003
Gross value	808	5,006	5,814	54,957	-	-	60,771
Accumulated depreciation/amortisation	n/a	(623)	(623)	(20,691)	-	-	(21,314)
Net book value	808	4,383	5,191	34,266	-	-	39,457

* 2002/03 comparitives have been restated to reflect the same method of calculation used in 2003/04

TABLE C - Assets under Construction

Item	Land $'000	Buildings on Freehold Land $'000	Total Land & Buildings $'000	Other Infra- structure, plant & equipment $'000	Computer Software $'000	Other Intan- gibles $'000	TOTAL $'000
Gross Value as at 30 June 2004	-	-	-	7,470	-	-	7,470
Gross Value as at 30 June 2003	-	-	-	1,795	-	-	1,795

Note 8D. Intangibles

	2004 $'000	2003 $'000
Computer software	4,526	3,523
accumulated amortisation	(2,085)	(1,9030
	2,441	1,620
Other intangibles	10,038	10,038
accumulated amortisation	(4,601)	(2,088)
	5,437	7,950
Total Intangibles	7,878	9,570

Note 8E. Inventories

	2004 $'000	2003 $'000
Inventories not held for sale (cost)	2,404	3,164
Less: Provision for obsolete and slow moving stock	(158)	(944)
Total inventories	2,246	2,220

All inventories are non-current assets.

Note 8F. Other non-financial assets

	2004 $'000	2003 $'000
Prepaid property rentals	114	142
Other prepayments	310	380
Total other non-financial assets	424	522

Note 9. Provisions

	2004 $'000	2003 $'000
Note 9A. Employees  Provisions
Salaries and wages	1,257	1,496
Leave	6,410	5,923
Superannuation	284	249
Separation and redundancy	-	71
Aggregate employee entitlement liability	7,951	7,739
workers' compensation	12	14
Aggregate employee benefit liability and related on costs	7,963	7,753
Current	3,332	3,608
Non-current	4,631	4,145
	7,963	7,753

Note 10. Payables

	2004 $'000	2003 $'000
Note 10A. Suppliers Payables
Trade Creditors	2,978	3,266
Operating lease rentals	-	620
Total supplier payables	2,978	3,886
All supplier payables are current
Note 10B. Other Payables
Monies held in trust	184	164
All other payables are current

Note 11 Analysis of Equity

Item	Accumulated results		Asset revaluation reserve		Other reserve (Protection of the Sea Reserve)		Total reserves		Contributed Equity		TOTAL EQUITY
	2002 $'000	2001 $'000	2002 $'000	2001 $'000	2002 $'000	2001 $'000	2002 $'000	2001 $'000	2002 $'000	2001 $'000	2002 $'000	2001 $'000
Opening balance as at 1 July	29,840	25,807	17,803	16,270	1,500	1,500	19,303	17,770	25,310	25,310	74,453	68,887
Net surplus/deficit	4,097	11,391	-	-	-	-	-	-	-	-	4,097	11,391
Net revaluation increment/(decrement)	-	-	15,832	1,784	-	-	15,832	1,784	-	-	15,832	1,784
Increase (decrease) in accumulated results on application of transitional provisions in accounting standard AASB 1041 Revaluation of Non-Current Assets	-	-	-	-	-	-	-	-	-	-	-	-
Transactions with owner
Distributions to owner
Returns on capital
Capital use charge	-	(7,609)	-	-	-	-	-	-	-	-	-	(7,609)
Returns of capital
restructuring	-	-	-	-	-	-	-	-	-	-	-	-
returns of contributed equity	-	-	-	-	-	-	-	-	-	-	-	-
Contributions by owner
appropriations (equity injections)	-	-	-	-	-	-	-	-	-	-	-	-
restructuring	-	-	-	-	-	-	-	-	-	-	-	-
transfers to/(from)/between reserves	-	251	-	(251)	-	-	-	(251)	-	-	-	-
Closing balance as at 30 June	33,937	29,840	33,635	17,803	1,500	1,500	35,135	19,303	25,310	25,310	94,382	74,453
Less: outside equity interests	-	-	-	-	-	-	-	-	-	-	-	-
Total equity attributable to the Commonwealth	33,937	29,840	33,635	17,803	1,500	1,500	35,135	19,303	25,310	25,310	94,382	74,453

Note 12. Cash Flow Reconciliation

	2004 $'000	2003 $'000
Note 12A. Reconciliation of operating surplus to net cash from operating activities:
Reconciliation of operating surplus to net cash from operating activities
Operating Surplus before extraordinary items	4,097	11,391
Non-cash items
Depreciation and amortisation	8,780	8,042
Amortisation of intangibles	2,694	2,580
Deferred loss on disposal of assets	72	51
Deferred wWrite down of non-current assets	1,284	207
Bad and doubtful debts	-	(8)
Changes in Assets and Liabilities
(Increase)/decrease in receivables (other than loans)	(1,785)	802
(Increase)/decrease in inventories	(26)	50
(Increase)/decrease in other assets	98	27
Increase/(decrease) in employee provisions	210	382
Increase/(decrease) in supplier payables	(1,072)	(3,672)
Increase/(decrease) in doubtful debts provision	3	-
Increase/(decrease) in other payables	20	145
Net cash from/(used by) operating activities	14,375	19,997

	2004 $'000	2003 $'000
Note 12B. Reconciliations of Cash
Cash balance comprises
Cash on hand	5	6
Cash at bank
Authority	3,311	3,500
Deposits at call	1,000	1,000
Investments	15,681	11,058
Total cash	19,997	15,564
Balance of cash as at 30 June shown in the Statement of Cash Flows	4,316	4,506

Note 13. Contingent Liabilities and Assets

	2004 $'000	2003 $'000
Quantifiable Contingencies
Contingent Liabilities
Claims for damages/costs	1,285	50
Total contingent liabilities	1,285	50
Contingent Assets
Claims for damages/costs	985	50
Net contingent liabilities	300	-
Unquantifiable Contingencies
At 30 June 2004, the Authority had a number of legal claims against it. The Authority has denied liability and is defending the claims. It is not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.
Remote contingencies
There were no remote contingencies as at 30 June 2004

Note 14. Remuneration of Directors

	2004 $'000	2003 $'000
The number of directors of the Authoriy included in these figures are shown below in the relevant remuneration bands.
- $Nil - $9,999	-	-
- $10,000 - $19,999	2	-
- $20,000 - $29,999	4	3
- $30,000 - $39,999	-	-
- $40,000 - $49,999	-	2
Total number of directors of the Authority	6	5
Aggregate amount of superannuation payments in connection with the retirement of directors	11,351	12,962
Other remuneration received or due and receivable by directors of the Authority:	120,147	144,914
Total remuneration received or due and receivable by the directors of the Authority:	131,498	157,876
The remuneration of the Chief Executive Officer is reported in Note 16.

Note 15. Related Party Disclosures

Directors of the Authority

The Directors of the Authority during the year were:

Dr Kenneth Moss	Chairman (until 25 October 2003)
Mr Edward (Ted) Anson	Chairman (appointed 27 October 2003)
Mrs Sarina Bratton	Deputy Chair (term ceased 7 April 2004)
Captain John Paine	(appointed 1 April 2002) Deputy Chairman (appointed 15 April 2004)
Mr Tony Hyams	(appointed 1 September 1998 and term ceased 31 August 2000 reappointed 9 October 2000 and 9 October 2002)
The Hon Virginia Chadwick	(appointed 8 April 2002 and term ceased 7 April 2004 reappointed 15 April 2004)
Mr Barry Vellnagel	(ceased 31 May 2004)
Mr Clive Davidson	Chief Executive Officer (appointed 4 May 1998)

The aggregate remuneration of Directors is disclosed in note 14.

Transactions with Board Member related entities

Any transactions between Directores related entities and the Authority are on normal commercial terms and conditions.

Note 16. Remuneration of Officers

	2004 $'000	2003 $'000
The number of Officers who received or were due to receive total remuneration of $100,000 or more:
	Number
- $120,000 - $149,998	-	1
- $150,000 - $159,999	-	1
- $180,000 - $189,999	1	1
- $190,000 - $199,999	-	1
- $210,000 - $219,999	2	-
- $300,000 - $309,999	-	1
- $330,000 - $339,999	1	-
- $360,000 - $369,999	1	-
	5	5
The aggregated amount of total remuneration of Officers shown is:	1,463,292	967,828
The aggregate amount of separation and redundancy termination benefit payments during the year to officers shown above	200,000	-
The officer remuneration includes all officers concerned with or taking part in the management of the entity during 2003-04 including the Chief Executive Officer.

Note 17. Remuneration of Auditors

	2004 $'000	2003 $'000
Remuneration to the Australian National Audit Office for auditing the financial statements for the reporting period	34,250	28,000
No other services were provided by the Australian National Audit Office during the reporting period.

Note 18. Average Staffing Levels

	2004 $'000	2003 $'000
The average staffing levels for the Authority during the year were	234	236

Note 19. Financial Instruments

Financial Instrument	Notes	Accounting Policies and Methods (including recognition criteria and measurement basis)	Nature of underlying instrument (including significant terms & conditions affecting the amount, timing and certainty of cash flows)
Note 19A. Terms, conditions and accounting policies
Financial assets		Financial assets are recognised when control over future economic benefits and the amount of the benefit can be reliably measured.
Cash	12B	Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues.	Temporary surplus funds, mainly from drawdowns of appropriation, are placed on deposit at call with the Authority's banker. Interest is earned on the daily balance at the prevailing daily rate on call and is paid at month end.
Receivables for goods & services	7A	These receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts. Provisions are made when collection of the debt is judged to be less rather than more likely.	Credit terms are  30 days (2001: 30 days)
Appropriations Reveivable	7A	These receivables are recognised at the nominal amounts due.	Balance of departmental appropriations made by the Parliament to the Authority which has not been drawn down by the authority at the reporting date.
Accrued Interest	7A	Interest is accrued as it is earned	The interest rates range from 4.70% to 6.20% (2003: 4.28% to 5.01%) and the frequency of payments range from monthly to quarterly.
Other debtors	7A	As for receivables for good and services.	As for receivables for good and services.
Floating Rate Notes	7B	Floating rate notes are recognised at cost. Interest is accrued as it is earned.	Floating rate notes are held with various financial institutions and earn a weighted average effective interest rate of 5.44% (2003: 5.04%). The interest is payable quarterly.
Term Deposits	7B	Term deposits are recognised at cost. Interest is accrued as it is earned.	Term deposits are with the Authority's bank, and earn a weighted average effective interest rate of 5.28% (2003:6.4%) payable quarterly.
Financial liabilities		Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.
Trade creditors	10A	Creditors and accruals are recognised at their nominal amounts being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).	Settlement is usually made net 30 days.
Other payables	10A	As for trade creditors.	As for trade creditors.
Unrecognised financial liabilities
Contingent Liabilities		The contingency disclosed by the Authority is the maximum estimated amount payable in the likelihood that the loss would be incurred. At the time of completion of the financial statements, it was not possible to determine the likelihood of the potential loss, and recognition of the liability was therefore not required.	The extent and nature of the contingencies are disclosed in the Schedule of Contingencies.

Financial Instrument	Notes	Floating Interest Rate		Fixed Interest Rate		Non- Interest Bearing		Total	Weighted Average Effective Interest Rate
				1 year or less
		2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2004 $'000	2003 $'000
Note 19B. Interest Rate Risk
Financial Assets
Cash at Bank	12B	3,311	2,500	-	-	-	-	3,311	4.79%	4.39%
Cash on Hand	12B	-	-	-	-	5	6	5	n/a	n/a
Deposits at call	12B, 7B	1,084	1,031	-	-	-	-	1,084	4.99%	4.70%
Receivables for goods and services	7A	-	-	-	-	410	372	410	n/a	n/a
Less: provision for doubtful debts	7A	-	-	-	-	(12)	(9)	(12)	n/a	n/a
Appropriation receivable	7A	-	-	-	-	1,480	280	1,480	n/a	n/a
Accrued Interest	7A	-	-	-	-	98	23	98	n/a	n/a
GST Receivable	7A	-	-	-	-	623	578	623	n/a	n/a
Other receivables	7A	-	-	-	-	585	158	585	n/a	n/a
Investments	7B	5,000	8,500	10,597	2,527	-	-	15,597	5.44%	5.04%
Total		9,395	13,031	10,597	2,527	3,189	1,408	23,181
Total Assets								23,181
Financial Liabilities
Trade and other creditors	10A	-	-	-	-	2,978	3,886	2,978	n/a	n/a
Other payables	10B	-	-	-	-	184	164	184	n/a	n/a
Total		-	-	-	-	3,162	4,050	3,162
Total Liabilities								3,162
Contingent Liabilities		-	-	-	-	-	-	-	n/a	n/a
Total Financial Liabilities (Unrecognised)		-	-	-	-	-	-	-

	Note	2004		2003
		Total carrying amount $'000	Aggregate net fair value $'000	Total carrying amount $'000	Aggregate net fair value $'000
Note 19C. Net Fair Values of Financial Assets and Liabilities
Financial Assets
Cash at Bank	12B	3,311	3,311	3,500	3,500
Cash on Hand	12B	5	5	6	6
Deposits at call	12B	1,000	1,000	1,000	1,000
Receivables for goods and services	7A	398	398	363	363
Appropriations receivable	7A	1,480	1,480	280	280
Accrued Revenue	7A	98	98	23	23
GST Receivable	7A	623	623	578	578
Other receivables	7A	585	585	158	158
Investments	7B	15,681	15,681	11,058	11,058
Total Financial Assets		23,181	23,181	16,966	16,966
Financial Liabilities
Trade and other creditors	10A	2,978	2,978	3,886	3,886
Other payables	10B	184	184	164	164
Total Financial Liabilities		3,162	3,162	4,050	4,050
Financial Liabilities (Unrecognised)
Contingent Liabilities		-	-	-	-
Total Financial Liabilities (Unrecognised)		-	-	-	-

Financial assets

The net fair value of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amounts.

Financial liabilities

The net fair values for trade creditors, which are short-term in nature, are approximated by their carrying amounts.

None of the classes of financial liabilities are readily traded on organised markets in standardised form.

Note 19D: Credit Risk Exposures

The Authority'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 Statement of Financial Position.

The Authority 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 other security.

Note 20. Administered Revenues

	2004 $'000	2003 $'000
Note 20A. Revenues Administered on Behalf of Government for the year ended 30 June 2004
Non-taxation revenue
Goods and Services
Non- taxation
- appropriation	5,305	5,200
- Interest	6	9
Total Revenues Administered on Behalf of Government	5,311	5,209
Note 20B. Expenses Administered on Behalf of Government for the year ended 30 June 2004
Supplier expenses	4,799	5,721
Total Expenses Administered on behalf of the Government	4,799	5,721
Note 20C. Assets Administered on Behalf of Government as at 30 June 2004
Financial Assets
Cash at bank	(178)	149
Receivables
GST Receivable	62	106
Other receivables	97	98
Total Assets Administered on behalf of Government	(19)	353
Note 20D. Liabilities administered on behalf of Government as at 30 June 2004
Payables
Trade Creditors	49	673
Other Creditors	185	128
Total Liabilities administered on behalf of Government	234	801
Note 20E. Administered Cash Flows for the year ended 30 June 2004
OPERATING ACTIVITIES
Cash received
Appropriation	5,068	5,200
Interest	6	9
Total cash received	5,074	5,209
Cash used
Cash to Official Public Account	5,401	5,313
Total cash used	5,401	5,313
Net cash (used in) operating activities	(327)	(104)
FINANCING ACTIVITIES	-	-
Net increase (decrease) in cash held	(327)	(104)
Cash at the beginning of the reporting period	149	253
Cash as the end of the reporting period	(178)	149
Note 20F. Administered Reconciliation Table
Opening administered assets less administered liabilities at 1/07/2003	(528)	(16)
Plus Administered revenues	6	9
Plus Transfers from the Official Public Account	5,068	5,200
Less Administered expenses	(4,799)	(5,721)
Closing administered assets less administered liabilities	(253)	(528)
* 2002/03 comparatives have been restated to reflect the same method of calculation used in 2003/04

Note 20G. Administered Commitments

There were no administered commitments for 2003-04 (2003: Nil)

Note 20H. Administered Contingencies

There were no administered contingencies for 2003-04 (2003: Nil)

Note 21 Appropriations

Note 21A. Appropriations

particulars	Departmental Outputs		Administered items		Equity		Total
	2004 $	2003 $	2004 $	2003 $	2004 $	2003 $	2004 $	2003 $
Year ended 30 June 2004
Balance carried forward from previous year	-	-	135,926	59,926	-	-	135,926	59,926
Appropriation Acts 1 and 3	16,268,000	23,314,000	4,500,000	3,864,000	-	-	20,768,000	27,178,000
Appropriation Acts 2 and 4	-	-	-	-	-	-	-	-
Amounts from Advance to the Finance Minister	-	-	1,600,000	1,300,000			1,600,000	1,300,000
Refunds to CRF	-	-	-	112,000	-	-	-	112,000
Available for payment of CRF	16,268,000	23,314,000	6,235,926	5,335,926	-	-	22,503,926	28,649,926
Payments made out of CRF	16,141,000	23,314,000	5,685,581	5,200,00	-	-	21,826,581	28,514,000
Balance carried forward to next year	127,000	-	550,345	135,926	-	-	677,345	135,926
Represented by: Appropriations receivable	127,000	-	550,345	135,926	-	-	677,345	135,926

This table reports on appropriations made by the Parliament of the Consolidated Revenue Fund (CRF) in respect of the Authority. When received by the Authority, the payments made are legally the money of the Authority and do no represent any balance remaining in the CRF.

Note 21B. Cash Basis Acquittal of unlimited Special Appropriations

Particulars	Outcome 2
Special Appropriation, Australian Maritime Safety Act 1990, s. 48	2004 $	2003 $
Purpose: to establish an Australian Maritime Safety Authority, and for related purposes
Marine Navigation Levy Act 1989
Purpose: To meet the capital and operating costs of the marine navigation aids network and related functions
Budget estimate	18,321,000	19,259,000
Payments made	18,737,975	19,306,770
Appropriations credited to Special Accounts	-	-
Refunds credited (section 30)	-	-
TOTAL CHARGED TO APPROPRIATIONS	18,737,975	19,306,770
The Marine Navigation (Regulatory Functions) Levy Act 1991
Purpose: To provide funds for regulatory and surveillance activities undertaken by the Maritime Operations Division of AMSA
Budget estimate	23,610,000	22,372,000
Payments made	24,278,496	22,608,795
Appropriations credited to Special Accounts	-	-
Refunds credited (section 30)	-	-
TOTAL CHARGED TO APPROPRIATIONS	24,278,496	22,609,795
Protection of the Sea (Shipping Levy) Act 1981
Purpose: To resource the capital and operating costs of the National Plan to combat Pollution of the Sea by Oil (National Plan)
Budget estimate	4,074,000	3,861,000
Payments made	4,217,387	3,893,788
Appropriations credited to Special Accounts	-	-
Refunds credited (section 30)	-	-
TOTAL CHARGED TO APPROPRIATIONS	4,217,387	3,893,788
Total for unlimited Special Appropriations
Budget estimate	45,005,000	45,492,000
Payments made	47,233,858	45,810,353
Appropriations credited to Special Accounts	-	-
Refunds credited (section 30)	-	-
TOTAL CHARGED TO APPROPRIATIONS	47,233,858	45,810,353

Note 22. Reporting of Outcomes

Note 22A. Outcomes of the Authority

The Authority is structured to meet two outcomes:

Outcome 1: Minimised risk of shipping incidents and pollution in Australian water.
Outcome 2: Maximise the number of people saved from maritime and aviation accidents.
Only one Output Group is identified for each Outcome.
The Authority operates in Australia and, therefore, one geographical area for reporting purposes.

The Authority contributes to the Department of Transport and Regional Services outcome:
Linking Australia through transport and regional services

Note 22B. Net Cost of Outcome Delivery

 

	Outcome 1		Outcome 2		Total
	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000
Administered expenses	-	-	4,799	5,721	4,799	5,721
Departmental expenses	44,036	42,097	20,275	19,240	64,311	61,337
TOTAL EXPENSES	44,036	42,097	25,074	24,961	69,110	67,058
Costs recovered from provision of goods and services to the Government Sector
Administered	-	-	-	-	-	-
Departmental	1,767	2,393	15	14	1,782	2,407
TOTAL COSTS RECOVERED	1,7567	2,393	15	14	1,782	2,407
Other external revenues
Departmental
- sale of goods and services - to related entities	830	178	-	-	830	178
- interest	1,274	1,114	(346)	(417)	928	697
- revenue from sale of assets	16	21	2	-	16	21
- other	212	319	50	46	262	365
total Departmental	2,332	1,632	(294)	(371)	2,036	1,261
TOTAL OTHER EXTERNAL REVENUES	2,332	1,632	(294)	(371)	2,036	1,261
Net cost/(contribution) of outcome	39,937	38,072	25,353	25,318	65,292	63,390

The net costs show include intr-government costs that would be eliminated in calculating the actual Budget outcome.
The Capital Usage Charge is not included in any of the Net cost/(contribution) of outcomes as it is not an operating expense.
Refer to Outcome 1 Resources Table and Outcome 2 Resourcing Table of this annual report.
The Authority uses an Activity Based Costing System to determine the attribution of its shared items.

Note 22C. Departmental revenue and expenses by output groups and outputs

	Outcome 1								Outcome 2		Total
	Output 1.1		Output 1.2		output 1. 3		output 1.4		output 2.1
	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000
Operating expenses
Employees	4,177	3,695	8,685	8,391	1,054	956	2,329	2,707	7,965	7,710	24,210	23,459
Suppliers	1,999	1,581	4,349	3,849	1,850	1,889	10,220	10,999	8,831	8,659	27,249	26,977
Depreciation and amortisation	202	133	650	5078	1,208	1,443	6,160	5,673	3,254	2,865	11,474	10,622
Write-down of assets	-	-	4	-	-	-	-	-	-	-	4	-
Value of assets disposed	7	3	61	8	865	5	216	257	225	6	1,374	279
Total operating expenses	6,385	5,412	13,749	12,756	4,977	4,293	18,925	19,636	20,275	19,240	64,311	61,337
Funded by:
Revenues from Government	6,503	7,434	14,097	11,007	4,313	3,888	19,163	26,814	20,499	19,917	64,575	69,060
Sale of goods and services	780	827	1,610	1,403	233	209	2	146	-	-	2,625	2,585
Interest	-	-	-	-	-	111	1,274	1,003	(346)	(417)	928	697
Revenue from Sale of Assets	-	10	1	-	5	-	10	11	2	-	18	21
Other	29	4	37	104	9	8	137	203	50	46	262	365
Total operating revenues	7,312	8,275	15,745	12,514	4,560	4,216	20,586	28,177	20,205	19,546	68,408	72,728

The Authority's outcomes and outputs are described at Note 21A.
The net costs shown include intra-government costs that would be eliminated in calculating the actual Budget outcome.
Negative interest revenue in Output 2.1 is due to money owed to Output 1.4 and will be reclassified as an expense in 2004-05.
The Capital Usage Charge is not included in any of the Net cost/(contribution) of outcomes as it is not an operating expense.

	Outcome 1		Outcome 2		Total
	2004 $'000	2003 $'000	2004 $'000	2003 $'000	2004 $'000	2003 $'000
Note 22D. Administered Revenues and Expenses by Outcome
Operating expenses
Search and Rescue Incident Costs	-	-	4,799	5,721	4,799	5,721
Total Operating expenses	-	-	4,799	5,721	4,799	5,721
Operating revenues
Interest	-	-	6	9	6	9
Total Operating revenues			6	9	6	9

The Authority's outcomes and outputs are described at Note 21A.
The net costs shown include intra-government costs that would be eliminated in calculating the actual Budget outcome.

Role of AMSA | Highlights 2003-2004 | Chairman's Report | Board Members | Corporate Structure | Financial Snapshot and Performance Summary | Overview of Financial Performance 2003-2004 |  Outcomes and Outputs Chart 2003-2004 | Activities in 2003-2004 Output 1.1 | Activities in 2003-2004 Output 1.2 | Activities in 2003-2004 Output 1.3 | Activities in 2003-2004 Output 1.4 | Activities in 2003-2004 Output 2.1 | Corporate Services | Shipping Registration | Staffing Reports | Report of Operations | Financial Statements | Appendices | AMSA Regulatory Plan 2003-2004 | AMSA Information/Offices | Compliance Index | Glossary | Index

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