40th Annual Report 1999–2000

NLA Annual Report Cover - George Raper "The Melancholy Loss of H.M.S. Sirius off Norfolk Island

Appendix 7

Financial Statements

Independent Audit Report—Australian National Audit Office

To the Minister for the Arts and the Centenary of Federation

Scope

I have audited the financial statements of the National Library of Australia for the year ended 30 June 2000. The financial statements comprise:

The Council Members are responsible for the preparation and presentation of the financial statements and the information they contain. I have conducted an independent audit of the financial statements in order to express an opinion on them to you.

The audit has been conducted in accordance with Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards, to provide reasonable assurance as to whether the financial statements are free of material misstatement. Audit procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial statements, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion as to whether, in all material respects, the financial statements are presented fairly in accordance with Australian Accounting Standards, other mandatory professional reporting requirements and statutory requirements in Australia so as to present a view of the entity which is consistent with my understanding of its financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In my opinion,

(i) the financial statements have been prepared in accordance with Schedule 2 of the Finance Minister's Orders; and

(ii) the financial statements give a true and fair view, in accordance with applicable Accounting Standards, other mandatory professional reporting requirements and Schedule 2 of the Finance Minister's Orders, of the financial position of the National Library of Australia as at 30 June 2000 and the results of its operations and its cash flows for the year then ended.

Australian National Audit Office

Puspa Dash (signed)

Senior Director

Delegate of the Auditor-General
Canberra
22 August 2000


STATEMENT BY COUNCIL MEMBERS

In our opinion, the attached financial statements give a true and fair view of the matters required by Schedule 2 of the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997 for the year ended 30 June 2000.

Signed in accordance with a resolution of the Council of the National Library of Australia.

Signed at Canberra this 21st day of August 2000.

............................................. .............................................

James Bain

Chairman
Jan Fullerton

Director-General

National Library of Australia

Operating Statement

For the year ended 30 June 2000

  NOTES 2000
$'000
1999
$'000
Operating revenues      
Revenues from Government 4A 214 523 35 005
Sales of goods and services 4B 8 598 8 613
Interest 4C 4 739 241
Net gains from sale of assets 4D - 9
Other 4E 3 341 3 376
Total operating revenues  
231 201

47 244
       
Operating expenses    
Employees 5A 25 000 24 032
Suppliers 5B 19 958 19 461
Depreciation and amortisation 5C 5 761 5 003
Write-down of assets 5D 79 309
Net losses from sale of assets 5E 34 -
Grants 6 138 97
Interest 7 - 1
Total operating expenses  
50 970

48 903
       
Operating surplus/(deficit)  
180 231

(1 659)
Net surplus/(deficit) attributable to the Commonwealth   180 231 (1 659)
Accumulated surpluses at beginning of the reporting period   1 361 388
1 363 047
Total available for appropriation   1 541 619 1 361 388
Capital Use provided for or paid 11 176 604 -
Accumulated surpluses at end of reporting period 11
1 365 015

1 361 388
The above statement should be read in conjunction with the accompanying notes.      
       
       


Balance Sheet

As at 30 June 2000

  Notes 2000
$'000
1999
$'000
ASSETS      
Financial assets      
Cash 8A 7 828 3 377
Receivables 8B 1 676 971
Total financial assets  
9 504

4 348
Non-financial assets      
Land and buildings 9A, D, H 133 551 136 210
Infrastructure, plant and equipment 9B, C, D 1 334 424 1 331 077
Inventories 9E 733 672
Intangibles 9F, D 4 469 5 481
Other 9G 1 423 1 632
Total non-financial assets  
1 474 600

1 475 072
Total assets  
1 484 104

1 479 420
       
LIABILITIES      
Provisions and payables      
Capital Use   25 -
Employees 10A 8 345 7 218
Suppliers 10B 1 229 496
Other 10C 241 90
Total provisions and payables  
9 840

7 804
Total liabilities  
9 840

7 804
       
EQUITY      
Capital 11 1 030 -
Reserves 11 108 219 110 228
Accumulated surpluses 11 1 365 015 1 361 388
Total equity  
1 474 264

1 471 616
Total liabilities and equity  
1 484 104

1 479 420
       
Current liabilities   4 690 3 311
Non-current liabilities   5 150 4 493
Current assets   9 819 6 378
Non-current assets   1 474 285 1 473 042

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


Statement of Cash Flows

For the year ended 30 June 2000

  Notes 2000
$'000
1999
$'000
OPERATING ACTIVITIES      
Cash received      
Appropriations 4A 214 523 34 982
Sales of goods and services   7 867 8 941
Interest   4 739 241
Other   617 658
Total cash received  
227 746

44 822
Cash used      
Grants   (136) (97)
Employees   (24 006) (23 769)
Suppliers   (17 232) (18 224)
Interest and other financing costs   - (1)
Total cash used  
(41 374)

(42 091)
Net cash from operating activities 13
186 372

2 731
       
INVESTING ACTIVITIES      
Cash received      
Proceeds from sales of property, plant and equipment   11
222
Total cash received   11 222
Cash used      
Purchase of property, plant and equipment   (6 383)
(10 316)
Total cash used   (6 383) (10 316)
Net cash from investing activities  
(6 372)

(10 094)
       
FINANCING ACTIVITIES      
Cash received      
Equity appropriation   1 030
-
Total cash received   1 030 -
Cash used      
Capital Use paid   (176 579) -
Repayment of debt   -
(7)
Total cash used   (176 579) (7)
Net cash from financing activities  
(175 549)

(7)
Net increase/(decrease) in cash held   4 451 (7 370)
Cash at the beginning of the reporting period   3 377 10 747
Cash at the end of the reporting period 8A
7 828

3 377

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


Schedule of Commitments

As at 30 June 2000

  2000
$'000
1999
$'000
BY TYPE    
Capital Commitments    
Buildings - -
Plant and equipment 7 48
Collections1 57 179
Other capital commitments - 984
Total capital commitments
64

1211
Other commitments
Operating leases2 8 977 9 886
Other commitments3 9 248 8 844
Total other commitments
18 225

18 730
Total commitments payable 18 289 19 941
Commitments receivable 909 -
Net commitments
17 380

19 941
   
BY MATURITY    
All net commitments    
One year or less 5 472 4 870
From one to two years 3 076 3 555
From two to five years 4 966 7 005
Over five years 3 866 4 511
Net commitments
17 380

19 941
Operating lease commitments    
One year or less 1 293 1 446
From one to five years 3 035 3 929
Over five years 3 847 4 511
Net operating lease commitments
8 175

9 886

NB: All 1999–2000 commitments are GST inclusive where relevant. The comparatives have not been adjusted to reflect the GST.

1 Collections commitments represent contracts for the purchases of collection items.

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

3 Other commitments primarily consist of the provision of computer services, security, cleaning and building maintenance.


Schedule of Contingencies

As at 30 June 2000

  2000
$'000
1999
$'000
Contingent Losses    
Claims for damages1 150
500
Total contingent losses 150 500
Net contingencies
150

500

1 As at 30 June 2000 an ex-employee and an employee of a Library contractor have unresolved claims for damages relating to injuries sustained while working in the Library building.

Schedule of Unquantifiable Contingencies

As at 30 June, the Library had an unquantifiable legal claim by an employee of a Library contractor against it for damages relating to injuries sustained while working in the Library building.

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


Notes to and Forming Part of the Financial Statements

For the Year Ended 30 June 2000

Note Description

  1. Summary of significant accounting policies
  2. Reporting by segments and outcomes
  3. Economic dependency
  4. Operating revenue
  5. Operating expenses—goods and services
  6. Operating expenses—grants
  7. Operating expenses—interest
  8. Financial assets
  9. Non-financial assets
  10. Provisions and payables
  11. Equity
  12. Non-cash financing and investing activities
  13. Cash flow reconciliation
  14. Remuneration of Council members
  15. Related party disclosures
  16. Remuneration of officers
  17. Remuneration of auditors
  18. Trust money
  19. Appropriations
  20. Financial instruments

1. Summary 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 financial statements have been prepared in accordance with:

The statements have been prepared having regard to:

The financial statements have been prepared on an accrual basis, except for trust accounts where cash accounting is employed, 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.

1.2 Changes in accounting policy

Changes in accounting policy have been identified in this note under appropriate headings.

1.3 Reporting by outcomes

A comparison of Budget and Actual Figures by outcome specified in the Appropriation Acts relevant to the Library is presented in note 2. Any material 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 Appropriations

From 1 July 1999, the Commonwealth Budget has been prepared under an accrual framework. Under this framework, Parliament appropriates money to the Library as revenue appropriations and as equity injections.

Revenue appropriations
Revenues from Government are revenues of the core operating activities of the Library. Appropriations for outputs are recognised as revenue to the extent they have been received into the Library's bank account or are entitled to be received by the Library at year-end.

Non-revenue appropriations
Appropriations to the Library for capital items are recognised directly in equity, to the extent that they have been received into the Library's bank account or are entitled to be received by the Library at year-end.

Resources received free of charge
Services received free of charge are recognised in the Operating Statement 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 as revenue and an asset when the Library gains control over the contributed asset and the asset qualifies for recognition.

1.5 Other revenue

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

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

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 contracts or other agreements to provide services to Commonwealth bodies. The stage of completion is determined according to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Core operations
All material revenues described in this note are revenues relating to the core operating activities of the Library. Details of revenue are given in note 4.

1.6 Grants

The Library recognises grant liabilities as follows.

Library grant agreements require the grantee to undertake specific tasks or utilise the funding in a specific way. In these cases, liabilities are recognised only to the extent that the grantee has complied with the grant agreement, and where grant moneys are paid in advance, a prepayment is recognised.

1.7 Employee entitlements

Leave
The liability for employee entitlements includes provisions 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 by employees is less than the annual entitlement for sick leave.

The liability for annual leave reflects the value of total annual leave entitlements of all employees as at 30 June 2000 and is recognised at its nominal value.

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 2000. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.

Separation and redundancy
Provision is also made for separation and redundancy payments in cases where positions have been formally identified as excess to requirements, the existence of an excess has been publicly communicated and a reliable estimate of the amount payable can be determined.

Superannuation
Employees contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. Employer contributions amounting to $3 141 503 (1998–99: $2 876 777) for the Library in relation to employee superannuation has been expensed in these financial statements. No liability is shown for superannuation in the Balance Sheet as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.

1.8 Leases

A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of leased non-current assets, and operating leases under which the lessor effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception of the lease and a liability for the lease payments recognised at the same amount. Leased assets are amortised over the period of the lease. Lease assets are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the 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' leasehold improvements and rent holidays are recognised as liabilities. These liabilities are reduced by allocating lease payments between rental expense and reduction of the liability.

1.9 Borrowing costs

All borrowing costs are expensed as incurred except to the extent that they are directly attributable to qualifying assets, in which case they are capitalised. The amount capitalised in a reporting period does not exceed the amounts of costs incurred in that period.

The Library has no qualifying assets for which funds were borrowed specifically.

1.10 Cash

Cash includes notes and coin held and any deposits held at call with a bank or financial institution.

1.11 Financial instruments

Accounting policies for financial instruments are stated at note 20.

1.12 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.

1.13 Property, plant and equipment

Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $1500, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total). The threshold for the recognition of software assets is $2000. The purchase of library material regardless of the amount, other than serials, are capitalised as part of the National Collection.

Revaluations
Schedule 2 requires that buildings, infrastructure, plant and equipment be progressively revalued in accordance with the 'deprival' method of valuation in successive three-year cycles. Land is to be valued annually on the basis of its highest and best use, unless disposal is restricted by legislation, zoning or Government policy. In the latter cases, the deprival basis should be used and the valuation at highest and best use shown in a note.

The requirements of Schedule 2 are being implemented as follows:

Assets in each class acquired after the commencement of the progressive revaluation cycle are reported at cost for the duration of the progressive revaluation then in progress.

Land is recognised at its current market buying value because disposal is restricted by legislation, zoning or Government policy. Highest and best use (current market selling price) valuations, where different to current market buying prices, are disclosed in note 9.

Property, plant and equipment, other than land, is recognised at its depreciated replacement cost.

Any assets, which would not be replaced or are surplus to requirements, are valued at net realisable value. At 30 June 2000, the Library had no assets in this situation.

All valuations are independent.

The valuation of land every year is a change of accounting policy required by a change in the Finance Minister's Orders in 1999–2000. In the preceding period, land was subject to revaluations over a three-year cycle. The new policy is being applied from 1 July 1999.

The valuation of land at highest and best use in the circumstances described above is a change in accounting policy required by a change in the Finance Minister's Orders in 1999–2000. In the preceding valuation cycle, land was valued at its existing use value (i.e. current market buying price). The new policy is being applied from 1 July 1999.

Recoverable amount test
The carrying amount of each item of non-current property, plant and equipment assets 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.

The application of the recoverable amount test to the not-for-profit property plant and equipment of the Library is a change of accounting policy required by the Finance Minister's Orders in 1999–2000. The new policy is being applied from the beginning of 1999–2000. No write-down to recoverable amount has been made in 1999–2000 as a result of the change in policy.

Depreciation and amortisation
Depreciable property, plant and equipment is written off to its estimated residual values over their estimated useful lives to the Library, 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 assets are based on the following useful lives:

  2000 1999
Building 20 to 100 years 20 to 100 years
Plant and equipment 5 to 20 years 5 to 20 years
National Collection—printed material 50 years 50 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in note 5C.

1.14 Inventories

Inventories held for resale are valued at the lower of cost and net realisable value. Inventories not held for resale are valued at cost, unless they are no longer required, in which case they are valued at net realisable value.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

1.15 Intangible assets

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 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.

The application of the recoverable amount test to intangible assets of the Library is a change of accounting policy required by the Finance Minister's Orders in 1999–2000. The new policy is being applied from the beginning of 1999–2000. No write-down to recoverable amount has been made in 1999–2000 as a result of this change in policy.

Intangible assets are amortised on a straight-line basis over their anticipated useful lives. Useful lives are:

  2000 1999
Computer software 2 to 10 years 2 to 10 years

1.16 Taxation

The Library is exempt from all forms of taxation except Fringe Benefits Tax and the Goods and Services Tax.

1.17 Capital Usage Charge

A Capital Usage Charge of 12 per cent is imposed by the Commonwealth on the net assets of the Library. The charge is adjusted to take account of asset gifts and revaluation increments during the financial year.

1.18 Foreign currency transactions

Transactions denominated in a foreign currency are converted at the rate of exchange at the date of the transaction. Foreign currency receivables and payables are translated at exchange rates as at the balance date. Associated currency gains or losses are brought to account in the Operating Statement.

1.19 Comparative figures

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

Comparative figures are not presented in notes dealing with the reporting on outcomes, due to 1999-2000 being the first year of the implementation of accrual budgeting.

1.20 Rounding

Amounts are rounded to the nearest $1000 except in relation to:

2. Reporting by segments and outcomes

Reporting by segments
The Library is a not-for-profit organisation which operates predominantly in the field of library and information services within Australia, providing information and reference services to support the needs of Government, education, research, business and the public and maintaining a collection of library materials of national significance.

The Library is structured to meet one outcome:

Outcome 1: Australians have access, through the National Library of Australia, to a comprehensive collection of Australian library material and to international documentary resources.

Reporting by outcomes for 1999–2000

    Outcome 1
  Budget
$000
Actual
$000
Net cost of Library outputs 38 403 34 292
Net cost to budget outcome 38 403 34 292
Total assets deployed as at 30/6/00 1 481 040 1 484 104
Net assets deployed as at 30/6/00 1 472 646 1 474 264

Reporting by outcomes by funding source for 1999–2000

Outcomes Outputs
$000
Total Appropriations
$000
Total Expenses
$000
  Expenses against revenue from Government (appropriations) (B) Expense against revenue from other sources Total expenses against outputs (D) = (B)  
  Special appropriation Annual appropriation Acts Total        
Outcome 1    
  • Actual
- (1) (1) (1) 50 970 (1) 50 970
  • Budget
- 38 403 38 403 12 390 50 793 38 403 50 793
Total              
  • Actual
- (1) (1) (1) 50 970 (1) (1)
  • Budget
- 38 403 38 403 12 390 50 793 38 403 50 793
  Appropriation Act 2
Capital
   
  • Actual
(1)
  • Budget
 
1 030
Total Appropriations  
  • Actual
(1)
  • Budget
39 433

(1) It is not possible to identify expenses incurred against specific funding sources in all cases.

3. Economic dependency

The National Library of Australia was established by Section 5 of the National Library Act 1960 and is controlled by the Commonwealth of Australia.

The Library is dependent on appropriations from the Parliament of the Commonwealth to carry out its normal activities.

4. Operating revenues

Revenues from independent sources arise from both core and non-core activities of the Library.

  2000 1999
  $000 $000

Note 4A. - Revenues from Government

   
Appropriations—operating expenses 38 403 34 982
Appropriations—Capital Use Charge 176 120 -
Resources received free of charge - 23
Total
214 523

35 005
Under the Commonwealth accrual accounting framework, agencies are funded for the Capital Use Charge. This charge is levied on an agency's net departmental assets (i.e. assets controlled by the entity). It is designed to mirror the private sector concept of a return on investment. Consequently, in 1999–2000 the Library received additional funding of $176 120 000 in order to fund the Capital Use Charge, which is paid to the Commonwealth.    

4B. Sales of goods and services

   
Goods 1 153 1 048
Services 7 445 7 565
Total
8 598

8 613

4C. Interest

   
Deposits 4 739
241

4D. Net gains from sale of assets

   
Plant and equipment -
9

4E. Other revenues

   
Resources received free of charge from sources other than the Government 2 891 2 404
Grants and other non-reciprocal payments by other entities 246 658
Other 204 314
Total
3 341

3 376

5. Operating Expenses—Goods and Services

5A. Employee Expenses

   
Remuneration (for services provided) 24 378 23 045
Separation and redundancy 304
631
Total remuneration 24 682 23 676
Other employee expenses 318 356
Total
25 000

24 032
The Library contributes to the Commonwealth Superannuation (CSS) and the Public Sector (PSS) Superannuation schemes, which provide retirement, death and disability benefits to employees. Contributions to the scheme are at rates calculated to cover existing and emerging obligations. Current contribution rates are 18.9% of salary (CSS) and 10.1% salary (PSS). An additional 3% is contributed for employer productivity benefits.

5B. Supplier's expenses

   
Supply of goods and services 18 626 17 722
Operating lease rentals 1 332 1 739
Total
19 958

19 461

5C. Depreciation

   
Depreciation of property, plant and equipment 4 535 4 631
Amortisation of leased assets - 3
Amortisation of leasehold improvements 31 5
Amortisation of intangible assets 1 195 364
Total expense
5 761

5 003
The aggregate amounts of depreciation or amortisation expensed during the reporting period, for each class of depreciable assets are as follows:
  • Building
2 088 2 000
  • Leasehold improvements
31 5
  • Other infrastructure, plant and equipment
2 447 2 634
  • Intangibles
1 195 364
Total allocated
5 761

5 003

5D. Write-down of assets

   
Financial assets:    
Receivables for goods and services 20 -
Non-financial assets:    
Inventories 59 309
Total
79

309

5E. Net loss from disposal of assets

   
Non-financial assets:    
Plant and equipment 29 -
Intangibles 5 -
Total
34

-

6. Operating Expense - Grants

The Library makes grants to support Australian community organisations to preserve significant documentary heritage collections. The Harold White Fellowships are grants provided to established scholars and writers to work on materials held in the National Collection.

Non-profit institutions 107 70
Individuals—Harold White Fellowships 31 27
 
138

97

7. Operating Expense—Interest

Finance charges on lease liabilities -
1

8. Financial Assets

8A. Cash

   
Cash at bank 5 587 2 247
Deposits at call 2 158 1 051
Term deposit 80 77
Cash on hand and petty cash floats 3 2
 
7 828

3 377
Balance of cash as at 30 June shown in the Statement of Cash Flows 7 828
3 377
An amount of $80 000 held in a term deposit is not available for use by the Library as it represents a security deposit lodged by a supplier.

8B. Receivables

   
Goods and services 1 669 986
Provision for doubtful debts (27)
(15)
  1 642 971
Other debtors 34 -
Total
1 676

971
Receivables (gross) which are overdue are aged as follows:    
Not overdue 1 603 902
Overdue by    
- less than 30 days 58 71
- 30 to 60 days 33 8
- 60 to 90 days 3 3
- more than 90 days 6
2
  100
84
Total receivables (gross)
1 703

986

9. Non-financial Assets

9A. Land and building

   
Land at June 1997 valuation - 7 600
Land at June 2000 valuation 6 500 -
 
6 500

7 600
Building at June 1997 valuation - 128 000
Accumulated depreciation - (3 657)
 
-

124 343
Building at June 2000 valuation 171 000 -
Accumulated depreciation (44 000) -
 
127 000

-
Building improvements—at cost - 4 411
Accumulated depreciation - (227)
 
-

4 184
Leasehold improvements—at cost 88 88
Accumulated amortisation (37) (5)
 
51

83
Total building 127 051 128 610
Total land and building
133 551

136 210
The National Library building and land were revalued as at 30 June 2000 in accordance with the policy stated at note 1. The valuation was completed by the Australian Valuation Office and the officer responsible for the valuation project was Mr. J. Armstrong AAPI. The Australian Valuation Office has determined that the value of land based on its existing use is the same as its highest and best use.
Revaluation decrements of $1 100 000 for land and $909 000 for the Library building were made to the asset revaluation reserve.

9B. Plant and equipment

   
Plant and equipment—at June 1999 valuation 6 493 6 542
Accumulated depreciation (744) -
 
5 749

6 542
Plant and equipment—at cost 860 -
Accumulated depreciation (52) -

808

-
Total plant and equipment 6 557
6 542

9C. National Collection

   
National Collection—at June 1998 valuation 1 318 405 1 318 405
Accumulated depreciation (3 028) (1 514)
 
1 315 377

1 316 891
National Collection—at cost 12 714 7 738
Accumulated depreciation (224) (94)
 
12 490

7 644
Total National Collection 1 327 867
1 324 535

Table A - Movement Summary 1999–2000 for all assets irrespective of valuation basis
Item Land
$'000
Buildings
$'000
Total land and buildings
$'000
Other infrastructure, plant and equipment
$'000
Computer software— total intangibles
$'000
Total
$'000
Gross value as at 1 July 1999 7 600 132 499 140 099 1 332 685 6 071 1 478 855
Additions:
  • Replacement assets
- 1 469 1 469 4 806 188 6 463
  • Acquisition of new assets
- - - 1 030 - 1 030
Revaluations: write-ups/(write-downs) (1 100) 37 120 36 020 - - 36 020
Disposals - - - (49) (55) (104)
Other Movements - - - - - -
Gross value as at 30 June 2000 6 500 171 088 177 588 1 338 472 6 204 1 522 264
Accumulated depreciation/amortisation as at 1 July 1999 n/a 3 889 3 889 1 608 590 6 087
Depreciation/amortisation charge for assets held 1 July 1999 n/a 2 082 2 082 2 366 1 180 5 628
Depreciation/amortisation charge for additions n/a 37 37 81 15 133
Revaluations - 38 029 38 029 - - 38 029
Disposals - - - (7) (50) (57)
Accumulated depreciation/amortisation as at 30 June 2000 n/a 44 037 44 037 4 048 1 735 49 820
Net book value at 30 June 2000 6 500 127 051 133 551 1 334 424 4 469 1 472 444
Net book value at 1 July 1999 7 600 128 610 136 210 1 321 077 5 481 1 472 768
Table B - Summary of balances of assets at valuation as at 30 June 2000
Item Land
$'000
Buildings
$'000
Total land and buildings
$'000
Other infrastructure, plant and equipment
$'000
Computer software— total intangibles
$'000
Total
$'000
As at 30 June 2000
Gross value 6 500 171 000 177 500 1 324 898 - 1 502 398
Accumulated depreciation/amortisation n/a (44 000) (44 000) (3 772) - (47 772)
Net book value 6 500 127 000 133 500 1 321 126 - 1 454 626
As at 30 June 1999
Gross value 7 600 128 000 135 600 1 324 947 - 1 460 547
Accumulated depreciation/amortisation n/a (3 657) (3 657) (1 514) - (5 171)
Net book value 7 600 124 343 131 943 1 323 433 - 1 455 376

  2000
$'000
1999
$'000

9E. Inventories

Inventories held for sale (at cost) 438 576
Inventories held for sale (at realisable value) 127 36
Work in progress (at cost) 131 16
Inventories held for sale
696

628
Inventories not held for sale (at cost) 37 44
Total
733

672
The value of inventories that are non-current assets is $285 994.

9F. Intangible assets

Computer software - purchased 6 204 6 071
Accumulated amortisation (1 735) (590)
Total
4 469

5 481

9G. Other non-financial assets

Prepayments 1 423
1 632

9H. Special categories of assets

The National Library building and land are categorised as restricted assets under Schedule 2 of the Finance Minister's Orders. Restricted assets include those assets which cannot be redeployed or disposed because of legal or Government policy constraints. Specifically, the Library does not have the power to dispose of either the Library building or land upon which it stands. The value of the building and land is fully disclosed in note 9A.

10. Provisions and payables

10A. Liabilities to employees

Salaries and wages 645 532
Leave 7 627 6 581
Superannuation 73 56
Separations and redundancies - 49
Aggregate employee entitlement liability
8 345

7 218

10B. Suppliers

   
Trade creditors 1 065 481
Operating lease rentals 164 15
 
1 229

496

10C. Other

   
Goods and Services Tax payable 4 -
Non-trade creditors 194 -
Prepaid income 43 90
 
241

90

11. Equity

Item Capital
$'000
Accumulated Results
$'000
Asset Revaluation Reserve
$'000
Total equity
$'000
2000 1999 2000 1999 2000 1999 2000 1999
Balance as at 1 July 1999 - - 1 361 388 1 363 047 110 228 107 288 1 471 616 1 470 335
Operating result - - 180 231 (1659) - - 180 231 (1659)
Net revaluations increase/(decreases) - - - - (2 009) 2 940 (2 009) 2 940
Transfers to/(from) reserves - - - - - - - -
Injection of capital 1 030 - - - - - 1 030 -
Capital Use Charge - - (176 604) - - - (176 604) -
Changes in accounting policies - - - - - - - -
Balance as at 30 June 2000 1 030 - 1 365 015 1 361 388 108 219 110 228 1 474 264 1 471 616
                 
  2000
$'000
1999
$'000
The net revaluation increase in the asset revaluation reserve comprises:    
  • Revaluation decrement - land and building
(2 009) -
  • Revaluation increment - plant and equipment
- 2 940
 
(2 009)

2 940
The Asset Revaluation Reserve contains unrealised gains from revaluation of assets. On realisation, these amounts would be transferred to a General Reserve.

12. Non-cash Financing and Investing Activities

  2000
$'000
1999
$'000
National Collection material received free of charge 1 110
563

13. Cash Flow Reconciliation

Reconciliation of operating surplus to net cash provided by operating activities:

Operating surplus (deficit) before extraordinary items 180 231 (1 659)
Extraordinary items - -
Operating surplus/(deficit)
180 231

(1 659)
Bad and doubtful debts 12 (9)
Depreciation and amortisation 5 761 5 003
Loss/(gain) on disposal of fixed assets 34 (9)
Resources received free of charge : non-Government (2 891) (2 427)
Notional expenditure library materials 1 577 1 841
Write-off of non-current assets 59 309
Changes in assets and liabilities
(Increase)/decrease in receivables (717) 359
(Increase)/decrease in other assets 270 (430)
(Increase)/decrease in other liabilities 151 (16)
Increase in Capital Use Charge 25 -
(Increase)/decrease in liability to suppliers 733 (221)
(Increase)/decrease in accrued salaries and wages 130 53
(Increase)/decrease in employee provisions 997 (63)
Net cash provided by operating activities
186 372

2 731

14. Remuneration of Council Members

Total remuneration received or due and receivable by the Council members of the Library $
85 885
$
64 795
The number of Council members whose total remuneration was within the following band are as follows:
$0–$9999 9 10
$10 000–$19 999 2 2
 
11

12
The above disclosure excludes the Director-General, who is an executive member of the Council and the remuneration is disclosed in note 16. These payments are determined by the Remuneration Tribunal and paid in accordance with Sections 13 and 17A of the National Library Act 1960.

15. Related Party Disclosures

National Library Council

Members of the Council during the year were:

The aggregate remuneration of Council members is disclosed in note 14.

Transactions with Council members or Council member-related entities

No members of the Council have, since the end of the previous financial year, received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by Council members shown in the financial statements) by reason of a contract made by the National Library with the Council member or an entity in which she/he has a substantial financial interest.

16. Remuneration of Officers

  2000
$
1999
$
Income received or due and receivable by officers 1 106 103 925 126
The number of officers included in these figures are shown below in the relevant income bands
$100 000–$109 999 - 2
$110 000–$119 999 - 1
$120 000–$129 999 4 1
$130 000–$139 999 1 -
$140 000–$149 999 2 1
$150 000–$159 999 - 1
$170 000–$179 999 1 1
 
8

7
The officer remuneration includes all officers concerned with or taking part in the management of the Library during 1999–2000 provided that their remuneration equals or exceeds $100 000 and includes the Director-General. A superannuation contribution of $22 299 (1998–99 $16 408) was paid in respect of the Director-General. Performance pay has been included in the calculation of officer remuneration. The aggregate amount of performance pay received or due and receivable, by officers was $74 708 (1998–99 $66 375).

17. Remuneration of Auditors

Remuneration to the Auditor-General for auditing the financial statements for the reporting period
  40 500
40 500
No other services were provided by the Auditor-General during the reporting period.

18. Trust Money

The Library operates a number of trust funds to account for donations and income from the application of donated funds. These funds operate under formal trust arrangements and funds are only expended in accordance with the terms of trusts, accordingly these moneys are not recognised in the financial statements. The following is a brief comment on each fund currently in operation:

  2000
$
1999
$
(a) The Morris West Trust Fund was funded by the author Morris West. The fund is used for the publication of material owned by the Library.
Balance 1 July 493 459
Deposits during the year 5 11
 
498

470
Interest received 32 23
 
530

493
Expenditure during the year - -
Balance at 30 June
530

493
(b) The General Trust Fund comprises donations received for general purposes or where no purpose is specified by the donor.
Balance 1 July 431 418
Deposits during the year 14 13
 
445

431
Interest received 26 22
 
471

453
Expenditure during the year (18) (22)
Balance at 30 June
453

431
(c) The Kenneth Baillieu Myer Trust is a bequest from the late Kenneth Baillieu Myer for the purposes of the Kenneth Myer Annual Oration as held by the Library and for such other purpose as may be considered appropriate by the Director-General.
Balance 1 July 101 159
Deposits during the year - -
 
101

159
Interest received 6 7
 
107

166
Expenditure during the year (10) (65)
Balance at 30 June
97

101
(d) The E.A. & V.I. Crome Trust is a bequest by the late E.A. Crome for the maintenance and addition to the E.A. and V.I. Crome Collection.
Balance 1 July 155 147
Deposits during the year - -
 
155

147
Interest received 9 8
 
164

155
Expenditure during the year - -
Balance at 30 June
164

155
(e) The Acquisition Trust Fund comprises donations received specifically for the acquisition of library material.
Balance 1 July 51 58
Deposits during the year - -
 
51

58
Interest received 2 2
 
53

60
Expenditure during the year - (9)
Balance at 30 June
53

51
(f) The H.S. Williams Trust is a bequest from the late Harold S. Williams for the maintenance and addition to the H.S. Williams Collection.
Balance 1 July 25 45
Deposits during the year - -
 
25

45
Interest received 1 2
 
26

47
Expenditure during the year (3) (22)
Balance at 30 June
23

25
(g) The Dame Mary Gilmore Trust Account is a specific bequest from the late Dame Mary Gilmore.
Balance 1 July 8 8
Deposits during the year - -
 
8

8
Interest received 1 -
 
9

8
Expenditure during the year - -
Balance at 30 June
9

8

19. Appropriations

The Library received the following appropriations during the year out of the Consolidated Revenue Funds.

  2000
$'000
1999
$'000
Annual Appropriation Acts No. 1, 3—basic appropriations 214 523 34 982
Annual Appropriation Act No. 2—equity injection 1 030 -
Total
215 553

34 982

20. Financial Instruments

20A. Terms, conditions and accounting policies

Financial instrument Notes Accounting policies and methods
(including recognition criteria and measurement basis)
Nature of underlying instrument (including significant terms and conditions affecting the amount, timing and certainty of cash flows)
Financial assets   Financial assets are recognised when control over future economic benefits are established and the amount of the benefit can be reliably measured.  
Deposits at call 8A Deposits are recognised at their nominal amounts. Interest is credited to revenue as it accrues. Temporary surplus funds, mainly from revenue and monthly drawdowns of appropriations, are placed on deposit at call with the Library's bankers. Interest is earned on the daily balance at the prevailing daily rate for money on call and is paid at month-end.
Receivables for goods and services 8B These receivables are recognised at the nominal amounts due less any provision for bad and doubtful debts. Provisions are made when collection of debt is judged to be less rather than more likely. Credit terms are net 30 days (1998–99: 30 days).
Other debtors 8B As for receivables for goods and services. As for receivables for goods and services.
Term deposit 8A Term deposits are recognised at cost. Interest is credited as it accrues. Term deposits are with the Library's bank and interest is paid annually. The effective rate of interest is 4.1%.
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 10B Creditors and accruals are recognised at their nominal amounts, being the amounts at which 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 of 30 days.

20B. Interest rate risk

Financial Instrument Notes Floating Interest Rate Fixed Interest Rate Non-Interest bearing Total Weighted Average Effective Interest Rate
1 year or less 1 to 2 years 2 to 5 years >5 years
    99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
99–00
$'000
98–99
$'000
Financial assets (recognised)
Cash at bank 8A 5 587 2 247 - - - - - - - - - - 5 587 2 247 4.41 4.14
Cash on hand 8A - - - - - - - - - - 3 2 3 2 n/a n/a
Deposits at call 8A 2 158 1 051 - - - - - - - - - - 2 158 1 051 4.87 4.64
Receivables for goods and services 8B - - - - - - - - - - 1 642 971 1 642 971 n/a n/a
Other debtors 8B - - - - - - - - - - 34 - 34 - n/a n/a
Term deposit 8A - - - - 80 77 - - - - - - 80 77 5.58 4.1
Total financial assets (recognised)   7 745 3 298 - - 80 77 - - - - 1 679 973 9 504 4 348 n/a n/a
Total assets                           1 484 104 1 479 420    
Financial liabilities (recognised)
Trade creditors
10B - - - - - - - - - - 1 065 481 1 065 481 n/a n/a
Total financial liabilities (recognised)   - - - - - - - - - - 1 065 481 1 065 481 n/a n/a
Total liabilities                           9 840 7 804    

20C. Net fair value of financial assets and liabilities

    1999-00 1998-99
  Note Total carrying amount
$'000
Aggregate net fair value
$'000
Total carrying amount
$'000
Aggregate net fair value
$'000
Financial assets          
Cash at bank 8A 5 587 5 587 2 247 2 247
Cash on hand 8A 3 3 2 2
Deposits at call 8A 2 158 2 158 1 051 1 051
Receivables for goods and services 8B 1 642 1 642 971 971
Other debtors 8B 34 34 - -
Term deposit 8A 80 80 77 77
Total financial assets   9 504 9 504 4 348 4 348
Financial liabilities (recognised)          
Trade creditors 10B 1 065 1 065 481 481
Total financial liabilities (recognised)   1 065 1 065 481 481

Financial assets

The net fair values of cash, deposits on call and non-interest bearing monetary financial assets approximate their carrying amounts. None of the classes of financial assets are readily traded on organised markets in standardised form.

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.

20D. Credit risk exposures

The Library'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 Statements of Assets and Liabilities. The Library has no significant exposures to any concentrations of credit risk. The Library does not hold collateral or other security and therefore the figures for credit risk represent the maximum credit risk exposure.

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