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NLA 35th Annual Report 1994-95


Appendix 6: Financial Statements


  • Independent Audit Report
  • Certificate
  • Operating Statement for the Year Ended 30 June 1995
  • Statement of Financial Position as at 30 June 1995
  • Statement of Cash Flows for the Year Ended 30 June 1995
  • Notes to and Forming Part of the Financial Statements
NOTE: Figures in the Annual Report continue to be presented on a cash basis, and are not subject to audit. They cannot, therefore, be reconciled directly with figures in the financial statements which are prepared on an accrual basis.

Australian National Audit Office
GPOO Box 707
Canberra ACT 2601

Ref: NATIONAL LIBRARY OF AUSTRALIA INDEPENDENT AUDIT REPORT
Scope

I have audited the financial statements of the National Library of Australia for the year ended 30 June 1995. The statements comprise:

  • Statement by Council Members
  • Operating Statement
  • Statement of Financial Position
  • Statement of Cash Flows, and
  • Notes to and forming part of the Financial Statements.

The members of the Council are responsible for the preparation and presentation of the financial statements and the inforamtion contained therein. I have conducted an independent audit of the financial statements in order to express an opition on them to the Minister for Communications and the Arts.

The audit has been conducted in accordance with the 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 text basis, of evidence supporting the amounts and other disclosures in the financial statments, and the evaluation of accounting policies and significant accounting estimates. These procedures have been undertaken to form an opinion whether, in all material respoects, the financial statements are presented fairly in accordance with Australian Accounting Concepts and Standards, other mandatory professional reporting requirements and statutory requirements so as to present a view which is consistent with my understanding of the Library's 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 accordance with sub-section 63M(2) of the Audit Act, 1901, I now report that the statements are in agreement with the accounts and records of the National Library of Australia, and in my opinion:

(1) the statements are based on proper accounts and records

(ii) the statements show fairly in accordance with Statements of Accounting Concepts, applicable Accounting Standards, and other mandaroty professional reporting requirements, the financial transactions and results, and cash flows for the year ended 30 June 1995 and the state of affairs of the Library at that date

(iii) the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Library during the year have been in accordance with the National Library Act, 1960, and

(iv) the statements are in accordance with the Guidelines for Financial Statements of Commonwealth Authorities.

Australian National Audit Office

..........................................................
Graham Koehne
Executive Director
for the Auditor-General

Canberra
6 September 1995


Statement by Council Members

In our opinion the accounts of the National Library of Australia are drawn up so as to show fairly:

(a) the operating result for the financial year ended 30 June 1995;
(b) the financial position as at 30 June 1995; and
(c) the statement of cash flows for the financial year ended 30 June 1995.

These statements have been made out in accordance with the Guidelines for Financial Statements of Commonwealth Authorities issued by the Minister for Finance and applicable accounting concepts and standards.

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

Signed at Canberra this th day of September 1995.

..............................................
Sir Anthony Mason
Chairman

...............................................
Warren Horton
Director-General


OPERATING STATEMENT for the Year Ended 30 June 1995

NET COST OF SERVICES
Operating expenses

                                               Note       1995        1994       
                                                            $A          $A         
Employee expenses                             2, 25 23 501 641  21 817 259  
Purchase of library materials                     3  6 763 638   6 164 511   
Administrative expenses                           4 13 460 966  13 089 427  
Depreciation expense for non-current           1(d)  3 059 653   2 978 605   
assets                                                                      
Leasehold improvements amortisation            1(d)     50 414      20 227      
expenses                                                                    
Lease amortisation expenses                    1(j)     19 460      25 241      
Long service leave expenses                    1(f)    354 499     296 826     
Recreation leave and bonus expenses            1(f)  1 259 831   1 568 064   
Net loss on disposal of non-current assets       26     48 760     112 243     
Total operating expenses                            48 518 862  46 072 403  

Operating revenues from independent sources

                                                  Note    1995        1994       
                                                            $A          $A         
Revenue from sales and user charges               5  9 254 173   8 437 992   
Interest                                               336 781     199 453     
Other National Library revenue                    6  1 286 570     821 007     
Total operating revenues from independent           10 877 524   9 458 452   
sources                                                                     
Net cost of services                                37 641 338  36 613 951  

REVENUES FROM GOVERNMENT

                                                  Note    1995        1994       
                                                            $A          $A         
Parliamentary appropriations received             7 33 218 000  34 580 000  
Liabilities assumed by government              1(n)  3 302 211   3 390 594   
Resources received free of charge                       11 058      11 280      
Total revenue from government                       36 531 269  37 981 874  
Surplus or deficit of net cost of services                                  
over revenues from government                      (1 110 069)   1 367 923   

EQUITY INTERESTS

                                               Note       1995        1994       
                                                            $A          $A         
Accumulated surpluses at                                                    
beginning of reporting period                       39 807 267  38 439 344  
Adjustment resulting from adoption of                                       
new accounting standard                        1(c)     68 089      -           
Accumulated surpluses at the end of                 38 765 287  39 807 267  
reporting period                                                            
The accompanying notes form an integral part of these statements.

STATEMENT OF FINANCIAL POSITION as at 30 June 1995

CURRENT ASSETS

                                               Note       1995        1994       
                                                            $A          $A         
Cash                                           8, 9  4 915 495   4 772 619   
Receivables                                      10  1 731 966   1 278 629   
Inventories                                1(e), 11    669 971     614 026     
Other                                      1(h), 12  1 987 565   2 263 674   
Total current assets                                 9 304 997   8 928 948   

NON-CURRENT ASSETS

                                              Note        1995        1994       
                                                            $A          $A         
Property, plant and equipment           1(d), (j), 134 887 177 134 728 751    
                                          (o), 13,        
                                               30                         
Total non-current assets                           134 887 177 134 728 751     
Total assets                                       144 192 174 143 657 699    

CURRENT LIABILITIES

                                               Note       1995        1994       
                                                            $A          $A         
Creditors                                     9, 14  1 945 729     881 819     
Leases                                     1(j), 21     29 806      26 332      
Provisions                                 1(f), 15  1 797 982   2 879 155   
Other                                         9, 16  1 057 468     749 839     
Total current liabilities                            4 830 985   4 537 145   

NON-CURRENT LIABILITIES

                                               Note       1995        1994       
                                                            $A          $A         
Leases                                     1(j), 21     33 075      -           
Provisions                                1(f), 17,  4 843 913   3 594 373   
                                                25                         
Total non-current liabilities                        4 876 988   3 594 373   
Total liabilities                                    9 707 973   8 131 518   
Net assets                                         134 484 201 135 526 181    

EQUITY

                                               Note       1995        1994       
                                                            $A          $A         
Reserves                                         18 95 718 914  95 718 914  
Accumulated surpluses                               38 765 287  39 807 267  
Total equity                                       134 484 201 135 526 181    
The accompanying notes form an integral part of these statements.

STATEMENT OF CASH FLOWS for the Year Ended 30 June 1995

CASH FLOWS FROM OPERATING ACTIVITIES

                                               Note       1995        1994       
                                                            $A          $A         
Inflows:                                                                
Revenue from operations                              9 445 515   8 686 957   
Special purpose grants                                 758 300     207 266     
Interest received                                      336 781     199 453     
                                                    10 540 596   9 093 676   
Outflows:                                                                   
Payments to suppliers                             (18 574 315) (19 498 672)    
Payments to employees for salaries and                                      
in the nature of salary                           (21 265 528) (21 177 316)    
Payments from special purpose grants                 (439 386)    (392 838)   
Payments for finance lease interest                    (4 933)      (8 365)     
                                                  (40 284 162) (41 077 191)    
Net cash used by operating activities             (29 743 566) (31 983 515)    

CASH FLOWS FROM INVESTING ACTIVITIES

                                               Note       1995        1994       
                                                            $A          $A         
Inflows:                                                                    
Proceeds from the sale of non-current            26     19 055      15 226      
assets                                                                      
Outflows                                                                    
Payment for the purchase of property,               (3 290 041) (2 015 411)     
plant and equipment                                 
Net cash used by investing activities               (3 270 986) (2 000 185)      

CASH FLOWS FROM GOVERNMENT

                                               Note       1995        1994       
                                                            $A          $A         
Inflows:                                                                    
Parliamentary appropriations received             7 33 218 000  34 580 000  
Net cash provided from government                   33 218 000  34 580 000  

CASH FLOWS FROM FINANCING ACTIVITIES

                                               Note       1995        1994       
                                                            $A          $A         
Outflows:                                                                   
Finance lease principal repaid                         (61 432)    (78 951)    
Exchange variation                                         860         415         
Net cash used by financing activities                  (60 572)    (78 536)    
Net increase in cash held                              142 876     517 764     
Cash at beginning of reporting period                4 772 619   4 254 855   
Cash at end of reporting period             1(m), 8  4 915 495   4 772 619   
The accompanying notes form an integral part of these statements.

Notes
Reconciliation of operating result with cash flows from operations

                                               Note       1995        1994       
                                                            $A          $A         
Operating result                                    (1 110 069)  1 367 923   
Bad and doubtful debts                                   5 506       5 226       
Depreciation and amortisation                        3 129 527   3 024 073   
Proceeds on sale of non-current assets                 (19 055)    (15 226)    
Book value of non-current assets disposed               67 816     127 469     
Exchange variation                                        (860)       (415)       
Parliamentary appropriations received               33 218 000)(34 580 000)    
Liabilities assumed by government                   (3 302 211) (3 390 594)     
Notional superannuation expense                      3 302 211   3 390 594   
Resources received free of charge from government      (11 058)    (11 280)    
Notional computer services expense                      11 058      11 280      
Resources received free of charge:                    (660 200)   (454 974)   
non-government                                                              
Notional library materials expenditure                 651 632     430 258     
Notional contractor/consultant expenditure                   -      22 292      
Non-current assets donated                               8 568       2 424       
Changes in assets and liabilities                                           
Trade debtors                                         (245 482)    (32 153)    
Accrued revenue                                       (256 131)    (64 648)    
Sundry debtors                                          42 770      44 076      
Prepaid revenue                                         17 758    (130 565)   
Inventories                                            (55 945)    (91 375)    
Prepaid expenses                                       276 109    (392 855)   
Trade creditors                                         84 150     (89 833)    
Other creditors and accruals                         1 012 013  (1 183 266)        
Employee provisions                                    236 456     203 558     
Unexpended special purpose funds                       289 871    (175 504)   
Cash flow from operations                          (29 743 566)(31 983 515)     

Notes To and Forming Part of the Financial Statements

1. STATEMENT OF ACCOUNTING POLICIES

The significant accounting policies adopted by the National Library of Australia are stated to assist in a general understanding of these financial statements. These policies have been consistently applied except as otherwise indicated.

(a) Statutory requirements

These financial statements have been prepared in accordance with all applicable Australian accounting standards and the Guidelines for Financial Statements of Commonwealth Authorities (Guidelines) issued in March 1995. However, the Library applied for and received an exemption for the financial year ending 30 June 1995 from the requirement under the Guidelines to bring to account in the accounting records and statement of financial position the value of the Library's national collection. The Library's accounting treatment of the national collection is disclosed at note 1(g).

(b) Basis of accounting

The accounts are prepared in accordance with the historical cost convention and do not take account of changing money values. The accounts are prepared on an accrual accounting basis except for trust accounts where cash accounting is employed.

(c) Changes in accounting policies

The Library's accounting policies are consistent with those of the previous year except for the accounting policy with respect to certain employee entitlements, the recognition criteria for software assets and the recognition as an asset of the Library's office requisites store.

In accordance with the new accounting standard AAS 30: Accounting for Employee Entitlements, the Library has altered the method of calculating long service leave entitlements as from 1 July 1994. Previously long service leave was calculated from the commencement of the sixth year of service. AAS 30 requires that the provision for long service leave be measured as the present value of the estimated future cash outflows to be made by the employer in respect to services provided by employees up to the reporting date. The effect of the new policy has been to increase accumulated results of operations at the beginning of the financial year by $A68 089. The effect of this change in accounting policy for the 1994-95 financial year has been to reduce the net cost of services by $A124 909.

From 1 July 1994 the Library altered its capitalisation policy to recognise software assets with a capitalisation threshold of $A2000, previously these items were expensed. This change in capitalisation policy was required as a result of the development of the National Document and Information Service (NDIS) and the requirement to comply with AAS 4: Depreciation of Non-Current Assets and AAS 5: Materiality in Financial Statements. The effect of the new policy has been to reduce the net cost of services for the 1994-95 reporting period by $A1 636 990.

To comply with the revised Guidelines the Library has from 30 June 1995 recognised the value of stocks of Library supplies and office requisites which are not held for sale. These items had previously been expensed in the year incurred. The effect of the new policy has been to reduce the net cost of services for the 1994-95 financial year by $A58 054.

(d) Property, plant and equipment

Property, plant and equipment including software (other than land) is depreciated using the straight line method over their estimated useful life. Pro-rata depreciation is provided for items held less than one year. Leasehold improvements are amortised over the period of the lease term. The physical asset capitalisation threshold is $A1000 and for software assets the threshold is $A2000. The gains and losses on disposal of property, plant and equipment are taken into account in determining the result for the year.

Internally developed software is capitalised in accordance with the Department of Finance Guidance Release No. 8-Accounting for Computer Software. All direct costs including staff time are capitalised during the development and implementation phases of internally developed software. Depreciation over the useful life of the asset commences after implementation.

Non-current assets on hand as at 30 June 1983 other than land and building were valued by professional valuers employed by the Australian Taxation Office. The basis used for the valuation was 'value equals replacement cost less physical depreciation'. As required by the Guidelines, the National Library building and land were revalued by the Australian Valuation Office as at 30 June 1994.

(e) Inventories

Inventories are valued at the lower of cost or net realisable value where cost is determined using the 'first in-first out' basis.

(f) Employee benefits

The provision of long service leave has been calculated in accordance with the Department of Finance Guidance Release No. 7-Employee Entitlements. The Guidance Release requires the provision to be calculated using a methodology provided by the Australian Government Actuary for the Commonwealth Public Service as a whole. The methodology provides for the probability of all staff with three or more years service reaching ten years service and qualifying for the payment of long service leave and also takes into account those elements that will increase the estimated future cash outflows attaching to the notional liability.

Based on past patterns of long service leave expenditure, 4% of the total liability is classified as current and the balance as non-current.

The provision for recreational leave is based on the value of actual entitlements at balance date and includes a leave loading component. Based on past patterns of recreation leave and bonus expenditure, 65% of the total liability is classified as current and the balance as non-current.

A provision for non-vested sick leave is not provided for, as the Library has adopted, in accordance with the Guidance Release, the 'last in-first out' method of attribution which means that, where on average the value of sick leave taken is less than the total entitlement, no liability exists.

(g) National collection

Expenditure on the purchase of, or donation of, library material which add to the national collection is not capitalised as an asset of the Library. Purchases are charged to expenditure in the year they occur and donations of such material are also brought to account as other revenue.

(h) Subscriptions

The value of prepayments for subscriptions on journals and magazines purchased by the Library is a projection based on a detailed sampling method carried out in 1984-85 to estimate this item. Percentages based on the sampling technique are applied to each month's expenditure to determine the amount of prepayment. The statistical sampling methods employed are determined by the Australian Bureau of Statistics and were revalidated in 1990-91.

(i) Workers' compensation

Workers compensation cover is provided by COMCARE under the Commonwealth Employees Rehabilitation and Compensation Act 1988. The National Library is charged an annual premium and this is expensed in the year in which it occurs.

(j) Leased assets

Assets acquired under finance leases are included as property, plant and equipment in the statement of financial position. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to ownership of the leased property. Where assets are acquired by means of finance leases, the present value of the minimum lease payments is recognised as an asset at the beginning of the lease term and amortised on a straight line basis over the expected useful life of the leased asset. A corresponding liability is also established and each lease payment is allocated between the liability and interest expense.

(k) Foreign currency

Amounts outstanding in foreign currencies are converted at exchange rates current at balance date. Realised exchange gains or losses on foreign currency transactions only occur on sundry debtors. These transactions are reflected in the operating statement.

(l) Receivables

A provision is raised for any doubtful debts of approximately 2% of the total debtor balance. Bad debts are written off during the period in which they are identified.

(m) Cash flows

For the purpose of the statement of cash flows, cash includes cash at bank, cash on hand and petty cash floats.

(n) Liabilities assumed by Government

In accordance with the Guidelines, Public Sector Superannuation Scheme and Commonwealth Superannuation Scheme contributions are brought to account as a liability assumed by Government and offset by a notional expenditure item contained within the salaries expenditure. The financial effect of this requirement is disclosed in the operating statement and at note 2.

(o) Joint venture

Interests in the joint ventures are brought to account by including in the respective classifications, the share of the individual assets employed, and the liabilities and expenses incurred (refer note 30).

2. EMPLOYEE EXPENSES

                                                    1995       1994 
                                                      $A         $A 
Salary and related payments                   19 643 109 17 872 131 
Superannuation expenses assumed by             3 302 211  3 390 594 
government                                                           
Employer productivity superannuation             556 321    554 534 
contribution payments                                                
                                              23 501 641 21 817 259 

3. PURCHASE OF LIBRARY MATERIALS

                                                    1995       1994 
                                                      $A         $A 
Book collection                                5 381 990  5 200 292 
Manuscript collection                            486 864    199 020 
Film collection                                  206 579    258 520 
Pictorial collection                             349 160    246 492 
Copying of Australian historic records            39 712     36 324 
Oral history program                             225 168    157 063 
Music collection                                  23 666     32 309 
Map collection                                    50 499     34 491 
                                               6 763 638  6 164 511 

4. ADMINISTRATIVE EXPENSES

                                                    1995       1994 
                                                      $A         $A 
Building services and maintenance              3 783 386  3 395 832 
Computer services and supplies                 1 773 238  1 816 535 
Communications                                 1 715 777  1 674 526 
Consultants contract work etc.                 1 496 474  1 271 540 
Printing of publications                         791 817    904 232 
Office services                                  356 019    483 451 
Travelling and subsistence                       591 949    580 361 
Freight and cartage                              317 655    299 347 
Compensation and employee costs                  716 868    584 614 
Furniture equipment and shelving                 276 300    239 453 
Preservation of the collection                   214 101    259 077 
Promotion of library services                    432 361    475 964 
Reproduction services                            303 362    300 692 
Training and conference fees                     301 625    321 066 
Sundry expenses                                  187 958    187 789 
International cooperation                         78 309    165 669 
Council-fares and allowances (refer note 29)     111 270    107 410 
Lease financing interest                           4 933      8 365 
Bad debts                                          2 058      8 278 
Doubtful debts                                     5 506      5 226 
                                              13 460 966 13 089 427 

5. REVENUE FROM SALES AND USER CHARGES

                                                    1995       1994 
                                                      $A         $A 
Australian Bibliographic Network               7 080 600  6 249 068 
Information services                             222 291    212 094 
Publications and other merchandise               876 534    879 781 
Service charges                                  718 508    745 288 
Reproduction services                            356 240    351 761 
                                               9 254 173  8 437 992 

6. OTHER REVENUE

                                                    1995       1994 
                                                      $A         $A 
Resources received free of charge from           660 200    454 974 
sources other than the government                                   
Sundry receipts                                  625 510    365 618 
Exchange gain                                        860        415 
                                               1 286 570    821 007 

7. PARLIAMENTARY APPROPRIATIONS

Appropriation from Consolidated Revenue was received from the following divisions:

                                                    1995       1994 
                                                      $A         $A 
Government Appropriation Division 161             31 247     33 797 
(Running Expenses)                                   000        000 
Government Appropriation Division 201.1                -    153 000 
(Running Expenses)                                                  
Government Appropriation Division 810.3        1 971 000    630 000 
(Capital Works)                                                     
                                              33 218 000 34 580 000 

8. CASH

                                                    1995       1994 
                                                      $A         $A 
Cash at bank                                                        
-General account                               2 733 985  2 999 980 
-Cash management account                       1 453 105  1 362 477 
-Special purpose account                         720 765    401 850 
Cash on hand and petty cash floats                 7 640      8 312 
                                               4 915 495  4 772 619 

9. SPECIAL PURPOSE GRANTS

The Library operates a Special Purpose account for monies provided to the Library by external organisations for specific purposes. These monies relate to grants which cover a variety of Library activities. The receipt and expenditure of these monies was as follows:

                                                    1995       1994 
                                                      $A         $A 
Balance brought forward                          410 656    586 160 
Revenue                                          749 280    210 771 
Expenditure                                     (459 409)  (386 275) 
Unexpended funds                                 700 527    410 656 

This is represented by:

                                                    1995       1994 
                                                      $A         $A 
Cash at bank                                     720 765    401 850 
Add: Sundry debtors and accruals                   1 000     10 020 
Add: Prepayments                                     200          - 
Less: Sundry creditors and accruals              (21 438)    (1 214) 
                                                 700 527    410 656 

10. RECEIVABLES

                                                    1995       1994 
                                                      $A         $A 
Trade debtors                                    881 058    635 576 
Accrued revenue                                  826 748    570 617 
Sundry debtors                                    48 592     63 833 
Amounts receivable from the Commonwealth           5 492     33 021 
                                               1 761 890  1 303 047 
Provision for doubtful debts                     (29 924)   (24 418) 
                                               1 731 966  1 278 629 

The value of receivables which are overdue are as follows:

                                                    1995       1994 
                                                      $A         $A 
Less than 30 days                                 20 764     20 657 
Greater than 30 and less than 60 days              2 804      3 939 
Greater than 60 days                               1 565      2 477 
                                                  25 133     27 073 

11. INVENTORIES

                                                    1995       1994 
                                                      $A         $A 
Stock of:                                                            
-Publications and other merchandise              611 916    614 026 
-Library supplies and office requisites           58 055           - 
                                                 669 971    614 026 

12. OTHER CURRENT ASSETS

                                                    1995       1994 
                                                      $A         $A 
Prepaid subscriptions                          1 381 144  1 843 905 
Other prepaid expenses                           606 421    419 769 
                                               1 987 565  2 263 674 

13. PROPERTY, PLANT AND EQUIPMENT

                                                  1995         1994 
                                                    $A           $A 
(a) Furniture, equipment and shelving                                
includes:                                                            
Furniture, equipment and shelving                                    
-at independent valuation                    3 136 608    3 175 798 
Accumulated depreciation                    (2 031 663)  (1 922 223) 
                                             1 104 945    1 253 575 
Furniture, equipment, software and          11 897 350   11 267 198 
shelving-at cost                            
Accumulated depreciation                    (6 877 758)  (6 103 287) 
                                             5 019 592    5 163 911 
Software under development-at cost           1 636 990            - 
(b) Leased assets include:                                          
Equipment                                       97 980      172 867 
Accumulated amortisation                       (11 435)     (84 993) 
                                                86 545       87 874 
(c) Building and land include:                                      
Building-at independent valuation          120 000 000  120 000 000 
Accumulated depreciation                    (1 621 622)           - 
                                           118 378 378  120 000 000 
Land-at independent valuation                8 000 000    8 000 000 
Building improvements-at cost                  491 625            - 
Accumulated depreciation                        (6 644)           - 
Leasehold Improvements-at cost                 246 387      243 618 
Accumulated amortisation                       (70 641)     (20 227) 
                                               660 727      223 391 
Land and building                          127 039 105  128 223 391 
Total property, plant and equipment        134 887 177  134 728 751 

14. CREDITORS

                                                    1995       1994 
                                                      $A         $A 
Trade creditors                                                      
-Library material                                119 294    142 137 
-Other expenditure                               367 374    260 381 
                                                 486 668    402 518 
Other creditors                                                      
-Special Purpose account                          21 048      1 214 
                                                  21 048      1 214 
Accruals                                                             
-Accrued expenses                              1 003 466    325 326 
-Salaries                                        434 158    152 761 
-Special Purpose account                             389          - 
                                               1 438 013    478 087 
                                               1 945 729    881 819 

15. CURRENT PROVISIONS

                                                    1995       1994 
                                                      $A         $A 
Recreational leave and bonus                   1 632 786  2 479 780 
Long service leave                               165 196    399 375 
                                               1 797 982  2 879 155 

16. OTHER CURRENT LIABILITIES

                                                    1995       1994 
                                                      $A         $A 
Prepaid revenue                                  356 941    339 183 
Unexpended special purpose funds                 700 527    410 656 
                                               1 057 468    749 839 

17. NON-CURRENT PROVISIONS

                                                    1995       1994 
                                                      $A         $A 
Recreational leave and bonus                     879 192           - 
Long service leave                             3 964 721  3 594 373 
                                               4 843 913  3 594 373 

18. RESERVES

                                                    1995       1994 
                                                      $A         $A 
Asset revaluation reserve                     95 718 914 95 718 914 
                                              95 718 914 95 718 914 

19. TRUST MONEY

The National Library operates a number of trust funds to account for donations and income from the application of donated funds. Interest is earned on the daily balance of all accounts. The following is a brief comment on each fund currently in operation:

(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.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                   330 396    316 324 
Deposits during year                              29 468     11 915 
                                                 359 864    328 239 
Interest received                                 25 910     13 781 
                                                 385 774    342 020 
Expenditure during the year                         (840)   (11 624) 
Balance at 30 June                               384 934    330 396 

(b) The General Trust Fund comprises donations received for general purposes or where no purpose is specified by the donor.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                   290 521    284 733 
Deposits during year                              12 103     18 749 
                                                 302 624    303 482 
Interest received                                 21 333     12 190 
                                                 323 957    315 672 
Expenditure during the year                     (14 250)    (25 151) 
Balance at 30 June                               309 707    290 521 

(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.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                   153 951          - 
Deposits during year                                   -    150 000 
                                                 153 951    150 000 
Interest received                                 10 434      3 951 
                                                 164 385    153 951 
Expenditure during the year                            -          - 
Balance at 30 June                               164 385     153 951 

(d) The E.A. & V.I. Crome Trust is a bequest by the late E.A. Crome for the maintenance of and additions to the E.A. & V.I. Crome collection.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                   114 462    108 358 
Deposits during year                               1 030      1 391 
                                                 115 492    109 749 
Interest received                                  8 770      4 713 
                                                 124 262    114 462 
Expenditure during the year                            -          - 
Balance at 30 June                               124 262    114 462 

(e) The Acquisition Trust Fund comprises donations received specifically for the acquisition of library material.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                    45 195     82 607 
Deposits during year                                   -          - 
                                                  45 195     82 607 
Interest received                                  3 419      2 588 
                                                  48 614     85 195 
Expenditure during the year                      (1 660)    (40 000) 
Balance at 30 June                                46 954     45 195 

(f) The H.S. Williams Trust is a bequest from the late Harold S. Williams for the maintenance of and additions to the H.S. Williams collection.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                    41 182     39 275 
Deposits during year                                   -        179 
                                                  41 182     39 454 
Interest received                                  3 178      1 728 
                                                  44 360     41 182 
Expenditure during the year                            -          - 
Balance at 30 June                                44 360     41 182 

(g) The Dame Mary Gilmore Trust Account is a specific bequest from the late Dame Mary Gilmore.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                     5 950      5 700 
Deposits during year                                  33          - 
                                                   5 983      5 700 
Interest received                                    462        250 
                                                   6 445      5 950 
Expenditure during the year                            -          - 
Balance at 30 June                                 6 445      5 950 

(h) The Austin Edward Byrne Trust Account is a specific bequest from the late Austin Edward Byrne.

                                                    1995       1994 
                                                      $A         $A 
Balance 1 July                                     1 751          - 
Deposits during year                                   -      1 751 
                                                   1 751      1 751 
Interest received                                      -          - 
                                                   1 751      1 751 
Expenditure during the year                      (1 751)          - 
Balance at 30 June                                     0      1 751 

20. AUDITORS' REMUNERATION

The Australian National Audit Office provided auditing resources to the National Library for auditing the financial statements at a cost of $A66 500 (1993-94 $A64 000).

21. AGREEMENTS EQUALLY PROPORTIONATELY UNPERFORMED

                                                    1995       1994 
                                                      $A         $A 
(a) Capitalised finance leases                                       
(i) Lease commitments payable in the:                                
-First year                                       34 796     27 242 
-Second year                                      34 587          - 
Minimum lease payment                             69 383     27 242 
Deduct: Future finance charges                    (6 502)      (910) 
Provided for in the accounts                      62 881      26 332 
(ii) Representing lease liabilities                                  
-Current                                          29 806      26 332 
-Non-current                                      33 075           - 
                                                  62 881      26 332 
(b) Operating leases                                                 
(i) Rental charged to operating statement        975 205     964 869 
(ii) Lease commitments payable in the:                               
-First year                                       89 200      71 642 
-Second year                                      71 290      79 642 
-Third to fifth years                             16 324      61 930 
-Sixth and subsequent years                            -      15 714 
                                                 176 814     228 928 
(c) At 30 June the estimated amount of                               
expenditure contracted for that is payable                           
in the:                                                              
-First year                                    7 890 642   1 492 619 
-Second year                                   2 665 136     317 442 
-Third to fifth years                            533 252      56 150 
-Sixth and subsequent years                       37 445      37 445 
                                              11 126 475   1 903 656 

22. ECONOMIC DEPENDENCY

The Library is dependent on annual appropriations from Parliament to carry out the functions as specified in Section 6 of the National Library Act 1960.

23. SPECIAL CATEGORIES OF ASSETS

The National Library building and land are categorised as restricted assets under the Guidelines for Financial Statements of Commonwealth Authorities. Restricted assets include those assets which cannot be redeployed or disposed because of legal or government policy constrains. 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 13(c).

24. REMUNERATION OF EXECUTIVES

The number of executive officers whose total remuneration was within the specified bands are as follows:

                             1995       1994 
                               $A         $A 
$A120 000-$A129 999             1          1 
$A140 000-$A149 999             1          1 

The aggregate of the remuneration of the executive officers whose total remuneration was within the above specified bands is $A265 710 (1993-94 $A266 003). A superannuation contribution of $A23 318 (1993-94 $A22 347) was paid in respect of the Director-General.

25. SUPERANNUATION

Staff at the Library contribute to either the Public Sector Superannuation Scheme or the Commonwealth Superannuation Scheme. Employer contributions are met by the Commonwealth; these amounts have been brought to account as Liabilities assumed by Government in the Operating Statement. As disclosed in note 2 (Employee expenses), the National Library under the Superannuation (Productivity Benefit) Act 1988 is required to meet the cost of the employer productivity superannuation contribution payments.

26. NET LOSS ON DISPOSAL OF NON-CURRENT ASSETS

                                                    1995       1994 
                                                      $A         $A 
Net assets written off:                                              
Furniture, equipment and shelving                  8 332     10 567 
Net assets sold:                                                    
Furniture, equipment and shelving                 59 483    116 902 
Total net assets sold and written off             67 815    127 469 
Proceeds from sale                               (19 055)   (15 226) 
Net loss on disposal                              48 760    112 243 

27. FUNCTIONS OF THE LIBRARY

The National 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 National Library is also responsible for the administration of the National Portrait Gallery, which while an integral part of the National Library is housed in a leased area within the Old Parliament House.

28. DIRECTORS' INTERESTS IN CONTRACTS

As required by the Guidelines for Financial Statements of Commonwealth Authorities the members of the Library Council were required to disclose any contracts made with the National Library by the Council member or firm of which she/he was a member or any company, business or firm during the 1994-95 financial year in which the Council member had a substantial financial interest or a body of which the director takes part in the management of its affairs. The Council members listed below are regarded as having an interest in any contract that may be made with the entities listed below only by virtue of their directorship of those entities.

Name                   Organisation                                      
Warren Horton, AM      AIMA Training and Consultancy Services Ltd        

In addition, no members of the National Library 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 entity or a related body with the Council member in which she/he has a substantial financial interest.

29. REMUNERATION OF DIRECTORS

The number of Council members whose total remuneration was within the following bands are as follows:

                                                    1995       1994 
                                                      $A         $A 
$A0                                                    4          3 
$A1-$A9 999                                            8          7 
$A10 000-$A19 999                                      -          1 

The above disclosure excludes the Director-General, an executive member of Council, whose remuneration is disclosed in note 24. Included in Council-Fares and Allowances is $A60 873 (1993-94 $A59 575) paid to part-time Council members for annual allowance. These payments are determined by the Remuneration Tribunal and paid in accordance with Sections 13 and 17A of the National Library Act 1960. Included in the annual allowance figure are payments totalling $A2 609 (1993-94 $A2 822) for contribution to superannuation as required by the Superannuation Guarantee (Administration) Act 1992. The name of each person who has been a member of Council during the 1994-95 financial year appears on pages 9-10.

30. INTEREST IN JOINT VENTURE ACTIVITIES

The Library has a 50% interest in a joint venture agreement with IDP Education Australia to market Australian library services to the international market. The joint venture, Australian Library and Information International Service, was established in May 1995. As at 30 June 1995 there were no interests in joint venture assets, no liabilities had been incurred and there had been no expenditure by the Library.

The Library has a 50% interest in the assets, liabilities and output of a joint venture for the National Document and Information System (NDIS). This joint venture is in association with the National Library of New Zealand and aims to undertake the development and operations of both libraries' computer-based retrieval systems.

                                                    1995       1994 
                                                      $A         $A 
(a)  Interests in joint venture assets                               
The interest of the Library in the assets of                         
the NDIS joint venture is as follows:                                
Non-current assets-at cost                       162 066          - 
Building improvements-at cost                    160 420          - 
                                                 322 486          - 
(b)  Joint venture liabilities                                       
At 30 June the Library has liabilities for                           
the NDIS joint venture as follows:                                   
Liabilities                                      467 954          - 
(c)  Agreements equally proportionally                               
unperformed                                                          
At 30 June the Library has agreements                                
equally proportionally unperformed for the                           
NDIS joint venture payable in the:                                   
-First year                                    4 728 059          - 
-Second year                                   2 567 734          - 
-Third to fifth years                            477 102          - 
                                               7 772 895          - 

31. CONTINGENT LIABILITIES

Two ex-employees commenced legal action during 1993-94 for claims for damage totalling $A420 000 relating to injuries sustained while employees of the Library. As at 30 June 1995 these claims remain unresolved.


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