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Department of Agriculture, Fisheries and Forestry Reports 1998-99


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A N N U A L

R E P O R T

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CULTURE, F I S H E R I E S AND FORESTRY - AUSTRALIA

© C om m onw ealth o f A ustralia 1999

ISSN 1443-0452

ISBN 0 642 41505 6

T his w ork is copyright. A part from any use as p erm itted u n d er the Copyright A c t 1968, no p art m ay be reproduced by any process w ith o u t p rio r w ritten perm ission from the C om m onw ealth, available from A uslnfo. R equests and inquiries concerning repro d u ctio n and rights should be addressed to the

M anager, Legislative Services, A uslnfo, G P O Box 1920, C anberra A C T 2601.

T his report has been produced by the Executive Planning and R eporting Team, D ep artm en t o f A griculture, Fisheries and Forestry - A ustralia, w ith the assistance o f the five operational groups o f AFFA.

E diting and typesetting: Green A dvertising C o-ordinators: M elanie G reen and Em ily Forem an Cover: AFFA PR D esign U nit

T he H on W arren Truss M P M inister for A griculture, Fisheries an d Forestry

T he H on W ilson Tuckey M P M inister for Forestry an d C onservation Parliam ent H ouse CANBERRA A C T 2600

Dear M inisters

I am pleased to present to you the D epartm ent o f Agriculture, Fisheries and Forestry - A n n u a l Report for the year ended 30 June 1999.

T his report was prepared as required u n d er Subsection 25(6) an d Subsection 9B(2), and according to the guidelines referred to in Subsection 25(7) o f the Public Service A ct 1922. It also conform s w ith other applicable legislation.

Subsection 25(8) o f th e Public Service A c t 1922 requires you to lay a copy o f the report before each H ouse o f the P arliam ent on or before 31 O ctober 1999.

Yours sincerely

K H M atthew s

11 O ctober 1999

cc Senator the H o n Ju d ith Troeth

P arliam entary Secretary

D e p a r t m e n t o f A G R I C U L T U R E , F I S H E R I E S A N D F O R E S T R Y - A U S T R A L IA

Edm und Barton Building, Barton A C T GPO Box 858, Canberra A C T 2601 ph: *61 2 6272 3933fax: *61 2 6272 5161 http://www.affa.gor.au

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

i v A F F A A N N U A L R E P O R T1 9 9 8 - 9 9

G U I D E T O T H E R E P O R T

S t r u c t u r e o f t h e R e p o r t

T he first p art o f this annual report provides an overview o f AFFA, its organisational stru ctu re and m ethod o f operation. This p art o f the report also illustrates AFFA’s key achievem ents in 1998-99 and the corporate directions it followed during 1998-99.

T he second part reports on AFFA’s progress against the perform ance forecasts listed in the 1998-99 Portfolio B udget Statem ents. T his p art o f the report is structured so individual G roups and Secretariats report separately. T he two policy G roups, Industries D evelopm ent G roup (ID G ) and C om petitiveness

and Sustainability G roup (C SG ), are com bined as a result o f the close links between their w ork. T h e two Secretariats are com bined for sim ilar reasons.

T he rem ainder o f the report dem onstrates AFFA’s:

• client focus th ro u g h its client service charters

• com m itm ent to social justice and equity

• accountability th ro u g h internal and external scrutiny, staffing arrangem ents and the presentation o f financial statem ents.

O th er inform ation o n AFFA’s operation is included in the appendices.

A i d s t o A c c e s s

To help readers find specific inform ation, the report includes:

• a table o f contents

• a subject index

• a list o f acronym s

• a com pliance w ith guidelines index.

AFFA and its five operating G roups issue a num ber o f publications that provide inform ation ab o u t the activities and functions o f the D epartm ent and the way it operates.

For inform ation on particular publications and subjects, contact:

D epartm ent o f A griculture, Fisheries and Forestry - Australia Inform ation Officer:

Telephone: (02) 6272 5120

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

GUIDE TO THE REPORT

C opies o f this annual report can also be purchased from:

AFFA S hopfront Resource Inform ation C entre C ore 2 Foyer, E d m u n d B arton B uilding Blackall Street B A R TO N A C T 2600 S hopfront M anager: Telephone: (02) 6272 5550

or Toll Free: 1800 020157

R e a d e r s F e e d b a c k

AFFA encourages readers to provide any com m ents on the usefulness and co n ten t o f this annual report. T his will help us achieve higher standards in future annual reports.

To provide feedback, please:

em ail: annual-report.contact@affa.gov.au

or telephone: (02) 6272 5433

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

T A B L E O F C O N T E N T S

G uide to the R eport v

Secretary’s C orporate O verview 1

Perform ance R ep o rtin g 11

Policy G roups 11

A ustralian Q u a ran tin e and Inspection Service (AQIS) 29

A ustralian B ureau o f A gricultural and Resource Econom ics (ABARE) 44

Bureau o f R ural Sciences (BRS) 54

Secretariats 60

Service C harters 65

Social Justice and E quity 69

Industrial D em ocracy 75

Internal and External S crutiny 77

Legislation/R egulations Im pacting on Business 83

D iscretionary G rants 85

Staffing O verview 87

O ccupational H ealth and Safety 91

C onsultancy Services 95

A ppendix 1 97

D P IE ’s Program S tructure to AFFA’s C u rre n t S tructure

A ppendix 2 99

N atural Resources M anagem ent (Financial Assistance) A ct 1992

A ppendix 3 101

Sum m ary o f Key Service C harters

A ppendix 4 107

Freedom o f In fo rm atio n - Section 8 Statement

A ppendix 5 125

L egislation/R egulations Im pacting on Business

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

TABLE OF CONTENTS

A ppendix 6 129

C onsultancy Services

A ppendix 7 147

Advertising and M arket Research

A ppendix 8 153

D epartm ental C ontacts

A ppendix 9 159

Reconciliation Table

A ppendix 10 161

Financial Statements

Compliance with Guidelines 339

List o f Acronym s 341

Subject Index 345

viii A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

M a n a g e m e n t S e c re ta ria t

Head

Martin Dolan

Business Services U nit Karen Howard

Inform ation Services David Bonham

Corporate Developm ent Team B ill Pahl

Financial M anagem ent U n it Jennifer Irvin

Levies

M anagem ent U n it Steve Maxwell

W orkplace Change Mike Stone

O R G A N I S A T I O N A L C H A R T

O R G A N I S A T I O N A L C H A R T

R e g i o n a l O f f i c e s a n d O v e r s e a s

R e p r e s e n t a t i o n

AQIS has regional offices in Adelaide, B risbane, C airns, D arw in, M elbourne, H o b art, Perth and Sydney.

D u rin g 1998-99, AFFA h ad representation in A ustralian m issions in Beijing, Brussels, Rome, Seoul, Tokyo, W ashington D C and the A ustralian perm anent delegation to the O rganisation for E conom ic C o-operation and D evelopm ent (O E C D ) in Paris.

AFFA A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

1998-99 saw the dissolution o f the form er D epartm ent o f Prim ary Industries and Energy (D PIE) a n d the form ation o f the D epartm ent o f A griculture, Fisheries and Forestry - A ustralia (AFFA).

M inister A nderson m oved to the T ransport and Regional D evelopm ent portfolio; M inister Parer left the M inistry; M inister Vaile assum ed the A griculture, Fisheries and Forestry portfolio; and M inister Tuckey assum ed the Forestry and C onservation portfolio. M ore recently, and outside the

reporting period for this annual report, M inister Truss becam e M inister for A griculture, Fisheries an d Forestry follow ing M inister Vaile’s move to the Trade portfolio. Senator Ju d ith T roeth co n tin u ed in her role as Parliam entary Secretary to the portfolio.

These changes o f organisation and leadership required unprecedented adaptability in the way the D e p a rtm e n t w orked and in its w ork priorities. It is a credit to the people and p lan n in g systems o f AFFA th at the necessary adaptation occurred sm oothly and effectively.

In this overview I seek to describe how the D epartm ent delivered the necessary changes — b o th to the organisation and to the D epartm ental business agenda.

F o c u s o n O u t c o m e s

AFFA has carefully defined the characteristics o f the organisation to which we aspire by the year 2000. These characteristics are now well understood and accepted th ro u g h o u t the D epartm ent. T h e four characteristics, known as AFFA 2000, are:

• a sharp focus on results and outcom es;

• a strong co m m itm en t to p lan n in g at all levels th ro u g h o u t the D epartm ent;

• pervasive feedback; and

• an openness to innovation.

In the period o f intense change follow ing the election, AFFA 2000 stood the D epartm ent in good stead. C o n sisten t w ith the first characteristic (outcom es and results o rien tatio n ), the D e p artm en t settled early on w ith the M inisters a single Portfolio O u tco m e S tatem ent and two D epartm ental O utcom es

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S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

Statem ents to give coherence and direction to the business and m anagem ent o f the organisation. These statem ents are show n in the follow ing diagram s and have been published in the AFFA C o rp o rate Plan and the 1999-2000 Portfolio Budget Statem ents.

P o r t f o l i o O u t c o m e

M ore sustainable, com petitive and profitable A ustralian agricultural, food, fisheries and forestry industries

D e p a r t m e n t a l O u t c o m e 1

A ustralian agricultural, food, fisheries and forestry industries are profitable and com petitive and continue to create jobs,

particularly in Regional Australia

F o c u s o n P l a n n i n g

C onsistent w ith the second characteristic o f AFFA 2000 (com m itm ent to planning) a strategic plan n in g process w ith the incom ing M inister was initiated quickly to identify the highest level business objectives. All business plans th ro u g h o u t the D epartm ent were reviewed in light o f th at process and a new corporate plan was developed and issued. T here now exists a hierarchy o f

‘nested’ plans th ro u g h o u t AFFA - both business plans and m anagem ent plans such as for IT and hu m an resources.

Five Key Result Areas (KRA’s) were identified to guide our strategic direction:

1. Industry C om petitiveness

2. Sustainable N atural Resource M anagem ent

3. Anim al, P lant and Fish H ealth, Food Safety and Related Public H ealth

4. Trade G row th and M arket Access

5. M anagem ent Excellence

D e p a r t m e n t a l O u t c o m e 2

A ustralian agricultural, food, fisheries and forestry industries have a sustainable resource base

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S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

S t r e a m l i n e d S t r u c t u r e

Following the changes to the A dm inistrative A rrangem ents O rders, it was clear th at the stru ctu re o f the D e p artm en t needed to be changed to reflect the portfolio’s new responsibilities. A ppendix 1 provides detail o f the change in structure from D P IE to AFFA. In a gratifying co-operative spirit there was wide agreem ent am ong leadership and staff th ro u g h o u t the D e p artm en t th at

the necessary reorganisation needed to be com pleted as speedily as possible to enable the organisation to get on w ith its real business. T h e w hole process was com pleted w ith in six weeks and im plem ented on 7 D ecem ber 1998.

T he reorganisation has resulted in a radically different stru ctu re attu n ed to the O utcom es now expected o f the portfolio. T here are several com m on them es to the restructure best sum m arised as:

Client Focus — a stru ctu re w ith m ore easily understood w ork area titles, roles and functions to ensure ready access for clients and stakeholders;

Clarity- clearer boundaries and specification o f responsibilities between work areas to m inim ise duplication an d the p otential for confusion;

Balance - b etter balance o f functions and accountabilities betw een G roups, Divisions, Branches, and Units;

Innovation — co-location o f sim ilar w ork to m axim ise synergies and encourage innovation.

T he new AFFA structure com prises five operational G roups, w ith support from separate M anagem ent and Executive Secretariats. In brief, the operational G roups are:

• Industry D evelopm ent Group (ID G ) - responsible for policy issues specific to portfolio industries. T h is G roup also includes th e N ational Office o f Food Safety and the N ational Office o f A nim al and Plant H ealth. T he national offices are responsible for m anaging anim al, plant and hu m an health em ergencies an d im proving A ustralia’s longer term

arrangem ents for m anaging such issues

• C om petitiveness and Sustainability Group (CSG) - responsible for policy issues th at affect all portfolio industries

• Australian Quarantine and Inspection Service (AQIS) - responsible for quarantine program s to pro tect anim al, plant, hu m an and environm ental health in A ustralia and inspection services for A ustralian exports

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

• Australian Bureau o f Agricultural and Resource Econom ics (ABARE) — responsible for econom ic research analysis and advice on portfolio industries and cu ttin g across portfolio issues

• Bureau o f Rural Scien ce (BRS) - re sp o n sib le for scien tific research, analysis and advice on p o rtfo lio in d u stry issues an d c u ttin g across policy issues.

I n w a r d c o h e r e n c e

In parallel w ith the changes directly flow ing from the changed responsibilities o f the D epartm ent a range o f other m anagem ent initiatives was taken to lift organisational perform ance. Some o f these were m entioned in last year’s D P IE annual report as w ork n o t yet satisfactorily com pleted, and I now report on the progress o f those initiatives:

• developing more effective feedback arrangements. Feedback is a key objective o f AFFA 2000 because it assists in defining precisely w hat results/outcom es are expected o f each officer o f the D epartm ent; it provides the fram ew ork for planning dow n to the level o f individual officers; and it facilitates innovation in identifying new approaches to work. In 1998-99, the uptake o f perform ance agreem ents betw een staff and supervisors was w idespread. These agreem ents focus on developing strong relationships between staff and their supervisors based on open and frequent feedback sessions

• further improving the client service charter. W ork to further develop the AFFA C lient Service C h arter culm inated in the re-launch o f the charter th at describes the services AFFA can provide and the standards o u r clients can measure us against. C onsistent w ith the feedback objective o f AFFA

2000, clients are encouraged to provide feedback on our perform ance

• more effectively evaluating AFFA programs. D uring the year, all G roups developed business plans detailing G roup objectives and program s, and evaluation processes for the program s and the whole G roup

• shifting resources to reflect priorities. Following the reorganisation a process o f reallocation o f resources was initiated. This resulted in adjustm ents to the budgets o f the various G roups w hich took effect from the beginning o f 1999-2000

• defining accountabilities. This process began late in 1997-98 and continued into 1998-99. Its centrepiece was the developm ent o f the Secretary’s detailed C om m issioning Letters to Executive D irectors, w hich

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

detail the d eploym ent th ro u g h o u t the D epartm ent o f m y various accountabilities as Secretary together w ith a clear statem en t o f my expectations o f o th e r m em bers o f the senior m anagem ent team in relation to their approach to m anagem ent and leadership.

Looking forw ard on the m anagem ent agenda, I expect th at AFFA 2000 will continue to be a valuable focus for aligning the range o f corporate m anagem ent initiatives. O ver the year to com e the APS reform agenda, including the Perform ance Im provem ent Cycle and com petitive tendering and

contracting will be key m anagem ent priorities. M achinery has been set up in the D epartm ent to carry the latter agenda, in particular, forward.

Similarly, to carry forw ard the AFFA 2000 vision, five objectives for im proving people m anagem ent have already been defined for inclusion in the revised People M anagem ent Strategic Plan to be issued shortly. T hey are: im proved personal, team and co rporate perform ance; im proved leadership

and m anagem ent; fu rth er im provem ents to feedback; im proved relationships w ith clients; and fu rth er reinforcing values based behaviour. T h e new people m anagem ent plan (“Performance through People”) will also reaffirm our

com m itm ent to achieve Investors in People accreditation next year.

T he year has seen considerable w ork on the developm ent o f a new C orporate Leadership Program . T his program will be the successor to the highly successful AFFA M t Eliza Leadership Program through w hich more than 600

AFFA leaders at all levels have passed. T h e focus o f the new leadership program will be in defining the qualities o f leadership - at all levels th ro u g h o u t AFFA - th at will u n d erp in the change m anagem ent process for the D epartm ent.

A new Financial M anagem ent In fo rm atio n System (Q SP) has been im plem ented this year including a new rep o rtin g tool, C O G N O S , to enable extraction o f data from several data sources. T he im p lem en tatio n o f these systems will greatly enhance the quality o f financial m anagem ent and

reporting in AFFA as well as providing significant efficiency gains.

In M ay we c o m p leted o u r first w hole-of-A F F A A ccrual B udget. In my view AFFA a c q u itte d itself w ell as we g rap p led w ith this fu n d a m e n tally new ap p ro ach to b u d g etin g . O n e specific aspect o f the accrual b u d g etin g

process has been AFFA’s d efin in g th e single, clear p o rtfo lio outcom e, and the two su b o rd in a te D e p a rtm e n ta l o u tco m es, w hich is already proving helpful in g u id in g the p lan n in g , b u d g e tin g an d p rio rity se ttin g activities o f the D e p a rtm e n t.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

AFFA is the m ajor p artn e r in G roup 8, a group o f C om m onw ealth agencies form ed to achieve econom ies o f scale in IT outsourcing, and directing w ork tow ard m arket testing. AFFA co n trib u ted significant resources to develop cost m odels and the request for tender. T h e AFFA Inform ation Services C entre m anaged the process well, pro m o tin g the benefits o f m arket testing, m inim ising disruption to services and retain in g essential corporate knowledge. By outsourcing IT in 1999-2000, AFFA will be able to focus on

in-house developed systems such as the export docum entation system (E X D O C ), A Q IS ’s im p o rt m anagem ent system (AIMS), ABARE’s econom etric databases, and BRS’s natural resource database. These systems offer value-added services to AFFA clients, fu rth er highlighting the benefits of the new AFFA structure.

AFFA can also be p ro u d o f its achievem ents in gaining Year 2000 com pliance for all critical systems by 30 June 1999. C ontingency planning is well under way and all rem aining non-critical systems will have achieved Year 2000 com pliance before 30 Septem ber 1999.

T he result o f all these initiatives has been a coherent approach to m anagem ent innovation w hich, com bined, enables us to provide m ore efficient and effective service to our clients.

Several m anagem ent challenges face AFFA in the year ahead. T hese challenges centre on o u r co n tin u in g capacity to adapt to change an d grasp the o p p o rtu n itie s afforded us by the G o v e rn m en t’s APS reform agenda. I look forw ard to re p o rtin g o u r achievem ents in various p ublications for clients, stakeholders an d staff th ro u g h o u t the year and our 1999-2000 A nnual R eport.

O u t w a r d F o c u s

Staff o f AFFA are aware th a t m y aim as Secretary is to make AFFA the best D epartm ent to w ork in and the best-w orking D epartm ent. T he strong inward coherence o f the m anagem ent agenda dem onstrates how we are w orking together to make AFFA the best D e p artm en t to w ork in; b u t being a good D epartm ent to w ork in is no use unless it enables perform ance im provem ent tow ard becom ing the best-w orking D epartm ent.

W hile AFFA’s achievem ents in im proving the com petitiveness, profitability, and sustainability o f agriculture, fisheries, and forestry industries are detailed elsewhere in this annual report, I w ant to take this oppo rtu n ity to identify the key business successes in AFFA in 1998-99.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

AFFA’s responsibilities now span Australia’s entire food supply chain from producer to processor right through to the consum er. In addition, the G overnm ent has charged AFFA w ith helping to m anage the soils and w ater resources on w hich th e food and fibre supply chain is based.

AFFA took a lead in developing a w hole o f governm ent approach to gene technology regulation and the beginning o f a biotechnology strategy w ith the engagem ent o f State departm ents o f agriculture in these initiatives. Biotechnology and associated gene technology developm ent has the potential to transform the p roductivity an d com petitiveness o f our agricultural and food industries.

As an efficient exporter o f food and agricultural products Australia has a strong interest in fu rth er reform s to enhance trade. AFFA has co ntributed to these reforms th ro u g h o u t the year th ro u g h m ultilateral, regional, and bilateral initiatives. D u rin g th e year, all D epartm ental G roups w orked together to secure a m ore advantageous position for A ustralian agriculture in global food

m arkets through negotiations in various international forum s. Examples include AFFA in p u t into W T O processes including negotiating proposals for m andated agricultural negotiations an d dispute settlem ent cases (for example: C anadian salm on). T h e U nited States’ recognition o f the M eat Safety

E nhancem ent Program ’s (M SEP) equivalence w ith the US dom estic m eat inspection system is a significant achievem ent by A Q IS staff. Equivalency o f food — especially m eat — inspection systems is extrem ely challenging territory in bilateral trade relations, and im plem entation o f M SEP at U nited States-

listed abattoirs will continue A Q IS ’s developm ent (in co-operation w ith industry) o f scientifically based quality inspection systems.

O f course, building a successful agricultural sector goes beyond the here and now. We need to w ork towards a sustainable resource base, an d as an example Australia has taken significant steps in m onitoring, p lanning and m anaging its forests resources. T h ro u g h BRS, AFFA published the first national

scientific assessm ent o f Australia’s forest resources. T h ro u g h ABARE, AFFA’s econom ic research provided im p o rtan t in p u t into Australia’s negotiations on clim ate change policy and trade reform .

T he sustainable m anagem ent o f A ustralia’s land, w ater and vegetation resources is essential to viable agricultural industries and to the w ell-being o f rural and regional com m unities. AFFA plays a central role in co-ordinating the C om m onw ealth’s policy and financial contributions to a range o f natural

resource m anagem ent activities. In 1998-99 AFFA facilitated the second

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

ro u n d o f the N atural H eritage Trust program s, in conjunction w ith E nvironm ent A ustralia, and initiated a m id-term review o f the Trust. I chaired the SCARM H igh Level Steering G roup on W ater w hich had a key p art in im plem enting CoAG W ater R eform . W ork on a new strategic fram ew ork for natural resource m anagem ent got under way in earnest. T he D e p artm en t m ade m ajor co n trib u tio n s to presentations to the Prim e M in ister’s Science, E ngineering and Innovation C ouncil on dryland salinity and natural resource m anagem ent research an d developm ent, and planning began on a new program to rehabilitate the G reat A rtesian Basin.

T he skills o f our prim ary producers are also essential in developing a long­ term com petitive, profitable and sustainable sector. D uring the year, AFFA finalised im plem entation o f all elem ents o f the A griculture - A dvancing A ustralia (AAA) package. T his included the conclusion o f agreem ents w ith all

States to deliver the FarmBis skills enhancem ent program ; im plem entation o f the Farm Family R estart and R etirem ent Assistance for Farmers schemes; finalisation o f arrangem ents for the Farm M anagem ent D eposits schem e and the transfer o f funds from the previous Incom e Equalisation D eposits/Farm M anagem ent Bonds schemes to private financial organisations; and the developm ent and im plem entation o f new guidelines for Exceptional C ircum stances support.

AFFA played a key role, in partnership w ith industry, in achieving crucial reform s in the p rofitability and p roductivity o f the wool, w heat and pork industries. These significant m icroeconom ic reform s effectively gave the industries responsibility and control over th eir future.

AQIS continued to protect Australia’s ‘green’ reputation bo th dom estically and internationally. Dom estically, A Q IS reviewed quarantine operations in preparation for the Sydney 2000 O lym pics, ensuring Australia’s fragile ecosystem and resource based industries are protected. T his was com plem ented by a significant awareness cam paign. Internationally, AQIS shared its world class surveillance and risk m anagem ent skills w ith neighbours such as T hailand, the Philippines, Indonesia, and Papua New G uinea.

In 1998-99, Australia experienced several anim al health em ergencies. T he m ost notable was the Newcastle disease outbreak that affected p o u ltry in the M angrove M ountain area o f New S outh Wales in M arch/A pril 1999. T he N ational Office o f A nim al and Plant H ealth co-ordinated and m anaged the national response to this disease outbreak. T h e cam paign was the largest in Australia’s history o f eradicating anim al disease outbreaks.

8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E C R E T A R Y ' S C O R P O R A T E O V E R V I E W

C o n c l u s i o n

I believe m em bers o f AFFA can be p ro u d o f their achievem ents over the past year. In an en v iro n m en t o f very great change, the D ep artm en t dem onstrated its capacity to adapt its planning, resource allocation and m anagem ent arrangem ents to m eet the new priorities o f the G overnm ent. In particular, the

D epartm ent proved able to m eet the form idable challenge o f achieving organisation/structural change in the D epartm ent in a co-operative and productive m anner. Indeed, the necessary changes were im plem ented in a very short tim e, allow ing us to m ain tain a clear focus on our real business:

the needs o f our clients and stakeholders.

We have m ade significant enhancem ents to the way we m anage ourselves by continuing to align th e corporate m anagem ent agenda to the AFFA 2000 vision. I believe the new AFFA is now well positioned to m eet the business challenges ahead.

I w ant to take this o p p o rtu n ity to th a n k the m any people w ho have worked to achieve these results. I th in k as m em bers o f AFFA we can be proud o f our perform ance as a progressive and reform -m inded C om m onw ealth G overnm ent D epartm ent.

Ken M atthew s Secretary

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P O R T F O L I O R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1 164,521,000

Revenue from Other Sources 151,286,000

Total Departmental Revenue 315,807,000

E x p e n s e s

Departmental Expenses 328,248,000

Operating Result -12,441,000

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue

Administered Revenue

1,016,135,000

620,561,000

Net Effect to Government 395,574,000

E x p e n s e s

Administered Expenses 927,863,000

Total Administered Expenses 927,863,000

Actual Staffing Level 3069

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

P O L I C Y G R O U P S

Two AFFA G roups provide policy advice and adm inister program s to help the G overnm ent achieve profitable and com petitive agriculture, fisheries, forestry and food industries. T hese G roups are:

• Industries D evelopm ent G roup (ID G )

• C om petitiveness an d S ustainability G roup (CSG).

ID G ’s website is at http://w w w .affa.gov.au/idg/ C S G ’s website is at http://w w w .affa.gov.au/csg/

T he policy G roups w ere established in D ecem ber 1998, substantially from a restructure o f the form er A griculture and Forestry G roup, A Q IS, BRS and C orporate G roup. ID G also received the food industry fun ctio n from the form er D e p artm en t o f Industry, Science and Tourism , and C SG relinquished

m ost rural com m unities program s (except for financial counselling services) to the D e p artm en t o f T ransport and R egional Services.

T he new ID G provides the m ain p o in t o f contact in the portfolio for liaison w ith specific in d u stry clients, w hile C SG contributes to cross-cutting issues that affect AFFA’s broader policy and program developm ent. T h e restructure resolved a nu m b er o f dysfunctional arrangem ents from the past and ensured a

co-ordinated, coherent approach across a range o f AFFA activities. T he new structure provides clear boundaries th a t clients and stakeholders can recognise; w ork areas w ith specific responsibilities to m inim ise duplication; and co-location o f similar work to maximise synergies and encourage innovation.

ID G was created from organisation and sub-program elem ents o f the form er D PIE (agricultural industries and forestry) w ith the ad d itio n o f food, fisheries and aquaculture and agribusiness policy responsibilities. A nother significant change was the substantial lift o f the profile on anim al, p lan t and fish health and on food safety. Previously dispersed yet related functions and resources were draw n together into the N ational O ffice o f A nim al and P lant H ealth

and the N ational O ffice o f Food Safety. T h e food industry function is new and ties in w ith agribusiness developm ent. Fisheries policy was brought into the m ainstream o f AFFA and co-located w ith the industry policy responsibilities for o th er portfolio industries w ithin ID G .

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P E R F O R M A N C E R E P O R T I N G

C SG was created from a num ber o f sub-program elements o f the form er C orporate G roup and A griculture and Forestry G roup o f D PIE (portfolio and international policy, rural policy and natural resource m anagem ent). Its responsibilities cut across the portfolio and do no t focus on any particular com m odity o u tp u t or in d u stry supply chain. Instead, its w ork satisfies a wide

range o f portfolio stakeholders interested in overall dom estic and international spheres. W ith in C SG , land and w ater resources m anagem ent received increased prom inence and was linked w ith a w ider range o f general environm ental issues, such as greenhouse response, w ithin the N atural

Resource M anagem ent Policy Division. C om m unications and issues m anagem ent were linked closer to the needs o f rural A ustralia by establishing a R ural Policy and C om m unications D ivision. T he m o nitoring o f all AFFA international activities and the p rim ary p o in t o f liaison w ith the D epartm ent o f Foreign Affairs and Trade, A ustrade and AusAID were am algam ated w ithin the Portfolio Policy and International D ivision.

T h e policy G roups consist o f three divisions and the new national offices from ID G :

• Food and Agribusiness Industries D ivision

• A gricultural Industries Division

• Fisheries and Forestry Industries D ivision

• N ational Office o f A nim al and P lant H ealth

• N ational Office o f Food Safety

and three divisions from CSG:

• N atural Resource M anagem ent Policy D ivision

• Portfolio Policy and International D ivision

• R ural Policy and C om m unications D ivision.

O b j e c t i v e s *

T h e policy Groups will:

• add value to agricultural products an d increase the sustainability, productivity, com petitiveness and p rofitability o f prim ary industries

* Refer to pages 37, 44, 51, 57, 60, 66, 73 and 95 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

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P E R F O R M A N C E R E P O R T I N G

• increase in d u stry self reliance, disengage governm ent from com m ercial activities and rem ove im pedim ents to com petition

• pursue m arket developm ent, access and trade issues

• support in d u stry research and com m ercial uptake o f innovation

• ensure A ustralia’s p lan t and anim al health status, food safety, residue m anagem ent and em ergency response

• encourage and facilitate stru ctu ral adjustm ent at industry and individual operator levels

• support sustainable m anagem ent o f the natural resource base that underpins A ustralia’s agricultural, food, fisheries and forestry industries.

P e r f o r m a n c e F o r e c a s t *

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

A dding value

T he policy G roups will:

• facilitate the co n tin u ed w ork o f the Prim e M inister’s Superm arket to Asia C ouncil to address through-chain and industry-w ide im pedim ents to grow th in the agri-food industry

• encourage A ustralian food and fibre industries to ad o p t in ternational best practices, particularly in developing ‘w hole o f supply chain’ approaches

• take a leading role in the N ational C om petition Policy Review o f the N ational R egistration Scheme for Agricultural and Veterinary Chemicals (agvet chemicals) and contribute to the ongoing effectiveness o f the scheme

• facilitate the developm ent o f the N ational Strategy for the M anagem ent o f A gricultural and V eterinary C hem icals

• m on ito r and respond to in ternational developm ents regarding chemicals m anagem ent.

* Refer to pages 42, 49, 56, 59, 65, 76 and 97 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

S elf reliance and in d u stry em pow erm ent

To increase self reliance, the policy G roups will:

• p u t all elem ents o f the Agriculture — A dvancing Australia package in place during 1998-99

• advance portfolio industries’ interests in tax reform w ithin the G overnm ent’s objectives and principles

• im prove labour productivity in p ortfolio industries, including through exam ining perform ance and im pedim ents, and policy advocacy

• continue to sell dow n the wool stockpile and retire stockpile d ebt to im prove m arket conditions and produce cash flow situations

• w ork w ith the grains industry and the A ustralian W heat Board (AWB) to im plem ent the G overnm ent's A pril 1998 decision to replace the AWB w ith a grower owned and controlled, self reliant com m ercial com pany w hich will assume responsibility for w heat m arketing from 1999.

M ark et access and trad e issues

To foster grow th o f A ustralia’s export com petitive industries, the policy G roups will:

• identify and pursue portfolio in d u stry m arket access issues at bilateral levels, including th ro u g h the effective use o f the M arket D evelopm ent Taskforce

• develop co-ordinated an d coherent portfolio industry trade strategies for the 1999 agricultural negotiations, and advocate support in international forum s including O E C D , A PEC and FAO

• advance portfolio in d u stry interests through developing closer agribusiness links w ith key trading partners

• m ake progress tow ard freer, fairer an d m arket oriented trading conditions, p u ttin g agriculture on the same foo tin g as trade in other products.

C om m ercial innovation

To help m aintain A ustralia’s position in the global m arketplace, AFFA will:

• continually im prove strategic direction and corporate governance o f portfolio R & D corporations and o th er statutory bodies

• represent portfolio interests in developing governm ent approaches to genetically m odified organism s and an A ustralian position on access to genetic resources.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

P lant, anim al a n d fo o d safety, residue m anagem ent an d em ergency response

AFFA will:

• provide policy leadership, co-ordination and planning for anim al health program s designed to enhance A ustralia’s ability to respond effectively to exotic and serious endem ic pests and diseases

• im prove the p ro fitab ility and com petitiveness o f Australia’s cropping and ho rticu ltu ral industries by im plem enting a strengthened p lan t health infrastructure, as recom m ended by the N airn Review o f quarantine arrangem ents

• strengthen aquatic anim al health infrastructure in accordance w ith the G overnm ent’s response to the N airn review o f quarantine, and the report o f the N ational Task Force on Im p o rted Fish and Fish Products

• ensure the review o f A ustralian food regulation incorporates the views of Australia’s p rim ary industries and processed food industry

• develop a new partnership betw een the m eat in d u stry and the G overnm ent to m ore effectively respond to m eat safety and hygiene issues

• u nderpin m arket access for a w ide range o f A ustralian agricultural com m odities by designing, cond u ctin g and reporting on residue m onitoring program s designed to m eet im porting c o u n try standards and enhance the dom estic m anagem ent o f residue issues

• assist eastern A ustralian broadacre farm ers to profitably an d com petitively apply the m ost scientifically sustainable control m ethods for plague and m igratory locusts

• address co m m u n ity concerns ab o u t the hum ane treatm en t o f agricultural animals by co n tin u in g to facilitate and encourage in d u stry quality assurance schemes th at incorporate anim al welfare m easures.

S tructural a d ju stm en t

AFFA will:

• facilitate stru ctu ral adjustm ent in rural industries, including the im plem entation o f program s under the Agriculture - Advancing Australia package on rural adjustm ent, im proved farm business risk m anagem ent, skills developm ent, farm family welfare and rural developm ent

• facilitate the portfo lio ’s involvem ent in applying the N atio n al C om petition Policy th ro u g h legislative review

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• establish strategic infrastructure settings to p u t the pork in d u stry on an internationally cost com petitive footing

• continue to im plem ent the Forest In d u stry Structural A djustm ent Package in co-operation w ith State governm ents to facilitate adjustm ent in the forest industry and encourage the developm ent o f a m ore efficient and internationally com petitive industry.

S u s t a i n a b i l i t y

N a tu ral resource m anagem ent

AFFA will:

• develop strategic policies and deliver N atu ral H eritage Trust program s to prom ote integrated natural resource m anagem ent and sustainable agricultural developm ent

• encourage regional-based approaches to integrated natural resource m anagem ent

• encourage sustainable use o f w ater resources, im prove w ater quality and investigate the ecological value o f river systems

• target the effective im plem entation o f the N ational Weeds Strategy to reduce the detrim ental im pact o f nationally significant weeds

• w ork toward providing a com prehensive, nation-w ide appraisal o f Australia’s land an d w ater resource base through the N ational Land and W ater Resources A udit.

F orestry resource m anagem ent

AFFA will deliver results in an integrated package o f forest industry-specific program s for sustainable developm ent. M ajor program s are the signing o f R egional Forest A greem ents, P lantation 2020 Vision im plem entation, Farm Forestry Program and im plem entation o f agreed criteria and indicators for

m easuring the sustainability o f forest m anagem ent.

F ishery resource m anagem ent

AFFA will establish a genuine partnership arrangem ent w ith regional industry and com m unity interests to restore and p ro tec t fisheries habitats to m ore productive and sustainable levels, and integrate fisheries into regional econom ic planning.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

P e r f o r m a n c e A c h i e v e d

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

A dding value

• T he A ction Plan for A ustralian A griculture was reviewed to integrate AFFA’s new responsibilities for processed food into the revised plan in 1999-2000.

• Best practice guidelines in supporting w om en in agriculture and resource m anagem ent were produced through AFFA’s Vision fo r Change — N ational

Plan fo r Women in Agriculture and Resource Management.

• Two m eetings o f the A gricultural Finance forum d u rin g the year prom oted better com m unication on rural financial issues, betw een the farm sector, financiers and the G overnm ent. T hese m eetings successfully b rought all

participants together to discuss rural financial issues.

• An in dependent review o f the

Superm arket to Asia strategy was com pleted, recom m ending co ntinuing the strategy b u t im proving planning,

organisation and delivery. T he G overnm ent announced in the May 1999 Budget co n tin u ed funding for the STA strategy and from 1999-2000 will

introduce a new industries developm ent program and a new Food and Fibre Supply C hains Program u n d er the strategy.

AFFA is working to improve the recognition o f womens contribution to rural industries a n d to increase womens involvement in decision-making in these industries.

• T he Superm arket to Asia strategy officially launched the F oodC onnect Australia w ebsite and p ilot electronic trading phase; u n d erto o k pilot projects as p art o f the STA L im ited D em and C hains in Asia program ; made progress on the developm ent o f an equivalence fram ew ork to

facilitate m utual recognition o f audits o f quality systems; established eight pilot projects to provide action learning m odels for niche m arketing in Asian export m arkets under STA’s delicatessen program ; and released a report, Developing Successful Niche Agribusiness Exports.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• U nder the STA strategy, pilot projects involved assem bling efficient A ustralian supply chains across geographical and seasonal boundaries, and m eeting identified oppo rtu n ities in A sian food m arkets. These will link w ith the new Food and Fibre Supply C hains Program to be in tro d u ced in

1999-2000.

• T h e N ational C o m p etitio n Policy Review o f agvet chemicals legislation, involving all jurisdictions in the N atio n al R egistration Schem e, was com pleted. An intergovernm ental response to the review’s recom m endations began.

• T h e N ational Strategy for the M anagem ent o f A gricultural and V eterinary C hem icals was launched and significant progress was m ade w ith the States an d Territories helping to develop a national im plem entation plan for the strategy. T his included assessing the need for a national database for agvet chemicals. A national strategy to m inim ise cadm ium in agriculture was developed b u t higher priorities prevented developm ent o f a national strategy to m anage fertilisers.

• AFFA represented A ustralia’s interests in a num ber o f in tern atio n al agvet chemicals m anagem ent forum s, including negotiating an In tern atio n al Treaty for Prior Inform ed C onsent for C ertain H azardous C hem icals and undertaking initial negotiations for an International Treaty for Persistent

O rganic Pollutants.

S elf reliance an d in d u stry em pow erm ent

• To prom ote self reliant A ustralian rural industries the rem ainder o f AFFA m anaged Agriculture — Advancing Australia elem ents were im plem ented in 1998-99. These included:

— the Rural P artnership Program , fu n d in g 11 projects to im plem ent regional initiatives, including business planning grants, productivity im provem ent grants, training and education grants, and inform ation and com m unications strategies

— the C lim ate V ariability in A griculture Research and D evelopm ent project, funding 22 research projects. These included projects to develop and im plem ent profitable and sustainable m anagem ent strategies th at prepare the A ustralian agricultural sector to respond to m ajor opportunities and risks arising from clim ate variability. A new magazine, Climag, was launched

— E stablishm ent o f FarmBis agreem ents w ith all States to fu n d program s and training activities for farm ers to increase their skill base

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

- the Farm M anagem ent D eposit scheme, allowing farm ers to set aside pre-tax incom e from years o f good cash flow for use in years o f low cash flow. T hese deposits are m anaged through financial institutions rather th an th ro u g h the C om m onw ealth

- the launch o f the Action Plan fo r Australian Agriculture w hich seeks closer co -operation w ith in the agriculture sector to achieve com petitive, profitable and sustainable fam ily farm businesses th at are recognised w orld leaders in their p ro d u ctio n efficiency, product quality,

innovation, an d ability to supply and respond to m arket needs

- successfully positio n in g AFFA in Taxation Reform initiatives, including securing agreem ent for am ending some aspects o f G ST legislation that addressed im plem entation issues.

• W ork did n o t proceed on the issue o f labour productivity; instead, this was carried forw ard into the 1999-2000 work plan.

• T he G overnm ent transferred ow nership o f the wool stockpile to W ool International u n it holders, and converted W ool In tern atio n al (the statutory au th o rity th at m anaged the wool stockpile) into a corporations law co m p an y k n o w n as W oolS tock A ustralia L im ited . T h e stockpile

now is m anaged a n d sold on a purely com m ercial basis w ith o u t governm ent involvem ent.

• T he A ustralian W h eat Board (AWB) was restructured from a statutory m arketing a u th o rity to a grower ow ned and controlled com pany, AWB Lim ited. T h e G overnm ent and grains industry negotiated a constitution th at puts the com pany on a com m ercial footing w hile protecting the

interests o f growers and shareholders. T h e w heat in d u stry is now self reliant and can fun ctio n w ith o u t the need for the G overnm ent to underw rite borrow ings to m ake advance

paym ents on w heat receivals. T he previous statutory, levy-based W heat Industry Fund was converted to shares

in AWB Lim ited, allowing growers and other equity holders to share in dividends from

the new com pany’s

Wheat Harvester

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

operations and realise their investm ent w hen the shares are listed on the A ustralian Stock Exchange.

• N ew arrangem ents for the m anagem ent o f the w heat export monopoly- th ro u g h a sta tu to ry W h e at E xport A u th o rity were developed to begin from July 1999.

M ark et access and trade issues

• AFFA im proved access to Japan for Tasm anian fuji apples, easy peel citrus and pulpy orange juice, and to the R epublic o f Korea for citrus fruits. AFFA also m aintained and protected m arket access in the European U nion for m eat, and m anaged US and N ew Z ealand concerns on plant

quarantine access. To m aximise agricultural trade opportunities in Asia, AFFA gained S tate/T erritory and in d u stry representatives’ co-operation, and developed strategies to m aintain trade and m inim ise the uncertainties exporters faced d u rin g the Asian econom ic crisis.

• All the AFFA in d u stry sectors agreed on a coherent strategy for fu tu re m ultilateral neg o tiatio n s to liberalise the in tern a tio n al agricultural trad in g system . T h e A gricultural T rade C onsultative G roup, co-chaired by the M inister for A griculture, Fisheries and Forestry, was established as a peak consultative m echanism w ith in d u stry to discuss p rio rities and strategies for the fo rth co m in g W T O agriculture negotiations. AFFA effectively influenced O E C D and FAO w ork program s th ro u g h in co rp o ratin g A ustralian core interests in su p p o rt o f fu rth e r W T O negotiations on agriculture.

• A PEC com m itm ents and w ork program s on trade liberalisation, trade facilitation and technical co-operation reflected portfolio interests.

• T he policy G roups w orked w ith ABARE to develop a com prehensive W T O related research program aim ed at gathering dom estic and international su p p o rt for the need for fu rth er agricultural trade liberalisation.

C om m ercial in novation

• AFFA helped statu to ry authorities in the transition to the new accountability arrangem ents under the Commonwealth Authorities and Companies A ct 1997. T his included a w orkshop on annual reporting; developing com pliance checklists for plans and annual reports; participating in an AN A O audit o f accountability arrangem ents; and

contributing to im provem ents in corporate governance o f portfolio statu to ry authorities through reviews and newsletters.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• T he P rim ary Industries Levies A m algam ation Bills received Royal Assent in 1999, brin g in g 42 pieces o f levies and charges legislation into one fram ew ork and providing b etter and easier access to the legislation to levy payers. AFFA also successfully secured agreem ent by the Prim e M inister and the Treasurer to a stream lined process for levy approvals, accelerating am endm ents to existing levies and the introduction o f new levies.

• AFFA helped develop a w hole-of-governm ent approach to gene technology regulation and biotechnology strategy as announced in the Budget. T h ro u g h the B iosafety Protocol, AFFA worked to avert the adoption o f a protocol th a t was unsatisfactory from Australia’s m arket access perspective,

and m ade progress on the developm ent o f a national A ustralian policy approach on access to biological resources.

P lant, anim al an d fo o d safety, residue m anagem ent an d em ergency response

• A gricultural Industries D ivision and the N ational O ffice o f A nim al and P lant H ealth (N O A P H ) m ade m ajor progress in collaboration w ith the A ustralian A nim al H ealth C ouncil L td on developing new cost-sharing arrangem ents for industry, States/Territories and the C om m onw ealth.

These new arrangem ents are likely to encapsulate a broader group o f diseases, enabling a faster, b etter co-ordinated response to incidents due to the surety o f fu n d in g arrangem ents.

N O A P H also negotiated an agreem ent w ith States/T erritories and industry to im plem ent a six-year control an d evaluation program for ovine Johne’s disease. A p ilot disease spread control program was launched m id year as part o f this agreem ent. It is anticipated th at this program will provide

enough scientific data to h elp design a long

term c o n tro l strategy for the disease.

• A gricultural Industries D ivision and N O A P H co-ordinated and m anaged the national

response to a num ber o f anim al health em ergencies during the

•rom left to right: D r Gardner Murray CVO, D r Peter Thomber, year. T h e m ost notable > Bob Biddle, D r Dick Jane and D r Andrew Turner - Consultative w a $ a n o u t b r e a k o f

Committee on Emergency A n im a l Diseases teleconference on the , , I T ' ·

Newcastle Disease outbreak in Western Sydney in 1998. ewcast e IS

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

p o u ltry in N ew S outh Wales in M arch/A pril 1999 — the largest anim al health incident in A ustralia’s history. D irect expenses on the control o f the outbreak are likely to cost industry, States/Territories and the C om m onw ealth m ore than $20 m illion. AFFA also provided technical assistance to a num ber o f countries in the region. N O A P H m aintained close contact w ith M alaysian governm ent agencies and A ustralian field workers involved in m anaging the N ip ah virus outbreak th at killed

101 people and required the destruction o f one m illion pigs.

• N O A P H m ade progress on negotiations w ith industry and the States/Territories to establish the A ustralian Plant H ealth C ouncil w hich will co-ordinate an d m anage m any day-to-day plant health issues affecting A ustralian producers, and develop policies and strategies on national plant

health m atters. It also significantly im proved plant health infrastructure by developing a national exotic pest n o tificatio n awareness program and, in conjunction w ith the Forest H ealth C om m ittee, developed a generic incursion m anagem ent plan for forest pests.

• N O A P H also in itiated through the P lant H ealth C om m ittee and in co-operation w ith the States/Territories the developm ent o f nationally co-ordinated surveillance, diagnostic an d p lan t health databases. It augm ented its national surveillance program for exotic fru it flies an d Asian gypsy m oth and, in co-operation w ith C SIR O and the U niversity o f Sydney, developed an enhanced D N A diagnostic testing m ethodology for exotic fruit flies to im prove A ustralia’s capability to intercept and manage incursions o f this nature. T he A ustralian m ainland was declared free o f papaya fruit fly and Philippines fru it fly during the past year.

• N O A PH also m anaged and co-ordinated response activities to co u n ter a num ber o f m ajor pest and disease incursions in 1998-99, including an outbreak o f sugar sm ut in the K im berley and grape vine virus B in V ictoria and N ew South Wales, Panam a disease o f bananas in the

N o rth ern Territory, several weeds a n d the southern red m ite in Sydney.

• N O A P H co-ordinated the finalisation o f A quaplan, A ustralia’s national strategic plan for aquatic anim al health for 1998-2003. It held a stakeholder w orkshop where progress was evaluated against A quaplan and new priorities established for 1999-2000. A m ong the m ost significant achievem ents is the developm ent o f co-ordinating arrangem ents to respond to aquatic anim al disease em ergencies. These strategies proved operationally successful in the pilchard m ortality event o ff southern Australia and the black-striped m ussel incursion at D arw in.

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P E R F O R M A N C E R E P O R T I N G

• T he N ational O ffice o f Food Safety co ntributed to the Review o f Food R egulation co n d u cted by D r Bill Blair and to the developm ent o f food safety standards by the A ustralia N ew Zealand Food A uthority. Its m ajor co n trib u tio n to these processes was to ensure th at an appropriate prim ary

industries perspective was injected into the discussion. T h e N ational Office o f Food Safety is currently leading the developm ent o f a w hole-of- governm ent response to the Blair R eport on food regulation.

• A gricultural Industries D ivision and the N ational Office o f Food Safety helped establish Safemeat, an industry/governm ent partnership designed to provide strategic policy advice and direction on m eat safety and hygiene issues (the O ffice provides secretariat services to Safem eat on a cost

recovered basis). T h e m ajor achievem ent o f this partnership was to m a in ta in m a rk e t access for A u stra lian b eef d u rin g an endosulfan residue incident.

• T he N ational O ffice o f Food Safety’s N ational Residue Survey (which underpins successful m arket access for the com m odities it covers) u n d erto o k ab o u t 55,000 analyses for residues in A ustralian agricultural products. These analyses covered 14 m eat com m odities, eggs, honey,

10 grain com m odities, four h o rticu ltu re com m odities an d four fish and aquaculture com m odities. T h e analyses encom passed residues such as insecticides, fungicides and antibiotics used in food p ro d u ctio n , as well as environm ental contam inants such as heavy m etals and environm entally

persistent chem icals, including D D T .

• T he A ustralian Plague Locust C om m ission m anaged highly successful field trials o f a biopesticide based on the fungus M etarhizium anisopliae. T his b io p esticid e has the p o te n tia l to sig n ifican tly reduce (in suitable circum stances) th e ap p lica tio n o f m ore co n v en tio n al chem ical-based

pesticides, im p ro v in g the lo n g er term v iab ility o f A u stra lian ag ricu ltu ral p ro d u c tio n .

• A gricultural Industries D ivision and N O A P H , in co-operation w ith the livestock export industry, in itiated measures to ensure long-term export viability. In N ovem ber 1998, the Livestock Export A ccreditation Program (LEAP), a quality assurance scheme covering the export o f livestock and

co-developed w ith industry, came into operation. T hree m odel anim al welfare codes o f practice are referred to in LEAP. T h e A nim al Welfare C om m ittee o f the Standing C o m m ittee o f A griculture and Resource M anagem ent finalised a new m odel code for the land tran sp o rt o f cattle.

In addition, AFFA began to develop a national anim al welfare strategy that focuses on m arket access and trade issues.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

S tru ctu ral ad ju stm en t

• T h e Rural Policy and C om m unications D ivision m anaged (in conjunction w ith C entrelink and the States) the stru ctu ral adjustm ent elem ents o f the Agriculture — Advancing Australia (AAA) package.

• T h e Farm Fam ily R estart Schem e p ro v id ed incom e su p p o rt to farm ers — at 30 June, 1999 1208 farm families were in receipt o f incom e support and during 1998-99, 172 farm ers leaving agriculture were paid re-establishm ent grants.

• Exceptional C ircum stances support was provided for farm ers in M onaro, W entw orth and B alranald (New S outh Wales); south-eastern and central Q ueensland, Flinders Island (Tasm ania) and G ippsland (V ictoria); assistance to ta llin g $ 4 2 .6 m illio n was p aid , co m p risin g $ 2 9 .8 m illio n for Exceptional C ircum stances R elief Paym ent and $12.8 m illion in interest subsidies.

• Farm Financial C ounselling funded 98 counsellors across A ustralia to provide financial counselling services for farm ers, small business operators and tow nspeople experiencing financial difficulties.

• A gricultural Industries D ivision w orked w ith industry to im prove the A ustralian pork in d u stry ’s in tern atio n al com petitiveness through the Pork Ind u stry R estructuring Strategy. T his included a $24 m illion integrated package o f grant program s to help individual enterprises and groups

achieve a strong m arket focus, im prove their international com petitiveness in the global food m arket, or leave the industry. Before 1998, the A ustralian pork in d u stry had a negligible export base; now it has a substantial presence in key regional Asian m arkets.

• In 1998-99, the Forest Industries S tructural A djustm ent Program was launched in V ictoria and arrangem ents advanced for im plem enting the program in W estern Australia and Q ueensland.

• AFFA com pleted assessments o f the p otential econom ic im pact o f im ports o f Chinese ya pears, Korean pears an d Japanese fuji apples on A ustralian agricultural industries. B oth concluded th a t any im pact w ould be m inim al and th at A ustralian ho rticu ltu ral industries w ould n o t require structural adjustm ent assistance at this stage, b u t th a t im ports should be m onitored for three years.

• AFFA began assessing the potential econom ic im pact o f im ports o f fresh durian from T h ailan d and arranged tenders for a sim ilar assessment for im ports o f table grapes from the USA and Chile. Both assessments are to be com pleted in 1999-2000.

AFFA A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• AFFA m ade subm issions to the Senate Select C om m ittee on the socio­ econom ic im p act on rural and regional Australia o f N ational C om petition Policy, and the P roductivity C om m ission inquiry on the im pact o f this policy on rural industries. T he subm issions set out argum ents to highlight

the costs and benefits for portfolio industries o f the N ational C om petition Policy and these argum ents were reflected in the draft Productivity C om m ission R eport.

Glen and Marissa Lucas o f ‘Glengarry' near Ardlethan in the New South Wales Riverina are members o f the Bolero Landcare Group, one o f over 4,300 landcare groups

throughout Australia. AFFA’ s Natural Resource Management Policy Division actively encourages and supports landcare and similar community based organisations

through a range o f programs, including those o f the Natural Heritage Trust.

settin g up and operating the and related issues

S u s t a i n a b i l i t y

N atu ral resource m anagem ent

T h e N atural Resource M anagem ent Policy Division:

• im plem ented the second round o f program s under the N atural H eritage T rust including the N ational Landcare Program , the N ational Rivercare

Program and the M urray-D arling 2001 Program , in co n ju n ctio n w ith the D epartm ent o f E n v iro n m en t and

H eritage. U nder these program s, $138.2 m illion in total was approved for 1772 projects in 1998-99. Payments were m ade to the States and Territories

u n d er the N atural Resource M anagement (Financial Assistance) A c t 1992 (Appendix 2).

• gained support from the States and key industry and co m m u n ity stakeholders to develop a new strategic policy fram ew ork for natural resource m anagem ent

• c o n trib u te d to im p le m e n tin g the

C oA G W ater R eform F ram ew ork and SCA RM H igh Level Steering G roup on w ater •

• m anaged the C om m onw ealth’s interests in the M urray D arling Basin initiative, w ith particular em phasis on advancing w ater reform and support for integrated catchm ent m anagem ent to achieve im proved natural resource m anagem ent in the Basin

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• established the G reat A rtesian Basin S ustainability Initiative for the rehabilitation o f artesian groundw ater pressure

• significantly contributed to the PM SE IC W orking G roup on D ryland Salinity and to the G overnm ent’s consideration o f recom m endations

• co n trib u ted to the establishm ent o f W eeds o f N ational Significance through the N ational W eeds Strategy, subsequently endorsed by all relevant m inisterial councils

• assum ed responsibility for portfolio co -ordination o f greenhouse issues and com m enced identification o f p riority issues on greenhouse for the portfolio, as well as a national com plem entary w ork program for A griculture and Land use in the N ational G reenhouse Strategy section in

co njunction w ith BRS and ABARE and in consultation w ith the States.

F orestry resource m an ag em en t

C om m onw ealth/State/local governm ent and forestry industry jo in t partners in Plantation 2020 V ision and the Farm Forestry Program m ade progress in rem oving im pedim ents to establishing plantations. T h eir success is apparent in the 20 per cent increase in plantation area over the past four years. T he C om m onw ealth lifted export controls on p lan tatio n wood in m ost States and the ACT, so plan tatio n growers’ access to w orld m arkets increased; AFFA still is w orking to lift export controls in Q ueensland and the N o rth ern Territory. AFFA established a netw ork o f local governm ent contacts to discuss and

resolve plantation issues; this im proved in fo rm atio n flows and 2020 strategy co-ordination. Further, AFFA sponsored a series o f television prom otions to encourage wider acceptance o f farm forestry. As p art o f a com m unication strategy, AFFA provided inform ation to p otential investors and funded national reports on plan tatio n potential in Australia. T he plan tatio n industry w elcom ed these initiatives as prom oting a plantations culture in A ustralia.

Farm Forestry funded about 50 projects th ro u g h the N atural H eritage Trust. P articipation and the uptake o f o pportunities for farm forestry and plantation in regional Australia increased, and the States and other key stakeholders engaged in program delivery and integrated farm forestry into regional planning processes.

Regional Forest Agreements were finalised for V ictoria’s East G ippsland and C entral H ighlands, Tasm ania and the S outh W est Forest Region o f W estern Australia. In addition, AFFA developed a Bill to provide legislative backing to the agreem ents to ensure conservation and sustainable m ultiple use outcom es.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

Forest criteria an d indicators to m easure the sustainability o f forest m anagem ent were finalised by an AFFA chaired C om m onw ealth/S tate C om m ittee and en dorsed by forestry and environm ent M inisters in August 1998.

Research projects to tallin g $2.1 m illion were funded to fu rth e r develop and im plem ent practical, cost effective indicators o f forest sustainability.

Fishery resource m an ag em en t

T he Fisheries A ction Program funded 64 com m unity and State agency-based projects to help rebuild A ustralia’s fisheries to m ore productive and sustainable levels. T h e program focused on restoring and protecting fisheries habitats, raising co m m u n ity awareness ab o u t the sources o f environm ental

effects on fish and fish habitats, ensuring th at fishing practices are sustainable and responsible, and integrating fisheries issues w ith regional planning.

C ontact Officers:

Bernard W onder G eoff G orrie

Executive D irecto r (CSG ) Executive D irecto r (ID G )

@ (0 2 ) 6272 5002 @ ( 0 2 ) 6 2 7 2 4186

AFFA A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1 44,724,000

Revenue from Other Sources 11,387,000

Total Departmental Revenue 56,111,000

E x p e n s e s

Departmental Expenses 65,866,000

Operating Result -9,755,000

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue 1,014,553,000

Administered Revenue 620,561,000

Net Effect to Government 393,992,000

E x p e n s e s

Administered Expenses 926,281,000

Total Administered Expenses 926,281,000

Actual Staffing Level 509

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

A U S T R A L I A N Q U A R A N T I N E A N D

I N S P E C T I O N S E R V I C E ( A Q I S )

AQIS is responsible for Australia’s national quarantine and inspection systems. AQIS safeguards A ustralia’s highly favourable anim al, plant and hum an health status, a n d is an im p o rta n t elem ent in the international regulatory fram ew ork th a t governs trade betw een nations.

D uring 1998-99, A Q IS redeveloped its w ebsite (www.aqis.gov.au). A bout A Q IS ’ provides a com plete rep o rt against A Q IS ’s perform ance indicators.

AQIS com prises three divisions:

• Policy and International D ivision establishes and revises policies to safely im port anim als an d plants, th eir genetic m aterial and o th er products in line w ith soundly based scientific q u aran tin e principles and Australia’s international obligations. T h e division also establishes and protects m arket

access for A ustralia’s agricultural exports and provides legislation, com pliance, risk assessm ent and enforcem ent activities th ro u g h its C om pliance, Legal and E valuation B ranch

• Quarantine and Export O perations D ivision delivers q u aran tin e and export inspection services in A ustralia. D u rin g 1998-99, the division certified about $10 billion o f agricultural produce for export, as m eeting im porting countries’ health and q u aran tin e conditions. T h e division also

conducted q u aran tin e inspections on 7.78 m illion in tern atio n al travellers; supervised 11,500 first po rt ship arrivals and 63,000 first p o rt aircraft arrivals; and processed 930,000 cargo containers, 4.5 m illion air freight consignm ents and 162 m illion m ail articles

• M eat Inspection D ivision provides inspection and certification services to 414 registered export m eat establishm ents, including 84 abattoirs. Its veterinary and inspection staff m ain tain a technically advanced system o f inspection th a t is acceptable to A ustralia’s trading partners and on which AQIS certification is based. T h e m eat inspection program employs 508

perm anent staff, w ith 467 staff in field services and 41 staff in technical and program su p p o rt functions.

Changes to the portfo lio in 1998-99 resulted in the transfer o f some AQIS functions to the new AFFA National O ffice o f Animal and Plant Health and National O ffice o f Food Safety.

AFFA A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

T he N ational Office consists o f the P lant P rotection Branch (form erly p art o f the O ffice o f the C h ief P lant Protection Officer, AQIS) the A nim al H ealth Program s and Welfare B ranch (form erly p a rt o f Livestock and Pastoral D ivision and A Q IS), and the Office o f the C h ie f V eterinary Officer.

T he N ational Office o f Food Safety consists o f the Food Safety Branch (form erly w ith AQIS) and the Residues an d Standards Branch — form erly a p art o f BRS and AQIS.

O b j e c t i v e s *

A Q IS contributes to the im proved productivity, sustainability and com petitiveness o f agriculture by:

• providing effective quarantine services, food and agricultural export certification, and im ported food inspection services

• seeking access to overseas m arkets for A ustralian agricultural com m odities and processed food

• im proving the efficiency o f service delivery to industry.

P e r f o r m a n c e F o r e c a s t * *

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

• A Q IS will negotiate to reduce or elim inate technical m arket access im pedim ents in accordance w ith in d u stry priorities, through initiatives such as the no rth ern cattle export enhancem ent program and the negotiation o f a veterinary agreem ent w ith the European U nion.

• A Q IS will continue to m anage the G overnm ent’s reform agenda for export m eat inspection arrangem ents, including continuously reviewing m eat inspection functions; identifying and m anaging surplus staff; reviewing com pany operations to identify staff savings; undertaking organisational reform ; and evaluating the program ’s technical underpinning.

* Refer to page 66 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

** Refer to pages 71 and 72 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• T he m eat in sp ectio n program will m aintain its financial viability, service levels, in teg rity a n d technical com petence.

• AQIS will develop, p ro m o te and ad o p t revised systems for m eat inspection based on in te rn a tio n a lly recognised quality assurance principles.

• AQIS will en hance the export com petitiveness o f A ustralia’s anim al, plant and processed food industries, delivering high quality certification, auditing an d in sp ectio n services through:

— co n tin u in g jo in t A Q IS /in d u stry evaluations o f export certification program s, b eg in n in g w ith the fish an d h o rticu ltu re export program s

— im plem enting th e reco m m endations o f com pleted jo in t A Q IS /industry evaluations o f th e dairy, live anim al an d grains export program s

— enhancing in d u stry consultative m echanism s, especially program strategic issues, to achieve a shared responsibility an d partnership approach to export inspection, certification and m arket access

— im proving client relations by developing service charters

— en co u rag in g th e a d o p tio n o f q u a lity assurance a rran g e m e n ts and th ird p a rty in sp e c tio n system s as altern ativ es to d ire c t A Q IS e n d p o in t in sp ectio n s

— continuing V eterinary A greem ent negotiations w ith the European Union.

S u s t a i n a b i l i t y

• In accordance w ith the G o v e rn m en t’s response to the N a irn report on quarantine and the report o f the Task Force on Im p o rted Fish and Fish Products, A Q IS co n tin u ed to im p lem en t the report’s recom m endations consistent w ith th e seven key them es of:

— m anaging risk, based on scientific evidence

— ensuring a co n tin u u m o f q u aran tin e

— ensuring co m m u n ity responsibility

— m aintaining consultative decision m aking

— providing an external in p u t to qu aran tin e policy

— enhancing its capacity in p lan t and fish quarantine protection and policy

— delivering q u aran tin e objectives.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• Key activities included:

— co ntinuing to im plem ent im proved risk analysis arrangem ents involving increased consultation w ith stakeholders

— m aking progress on m any im port risk analyses

— introducing initiatives in the airport, seaport, international m ail and im p o rt clearance program s

— introducing electronic initiatives to im prove the detection and treatm en t o f m aterial o f quarantine concern

— expanding the quarantine detector dog program

— increasing the use o f x-ray technology at airports and m ail exchanges

— ensuring th at to the m axim um extent possible, quarantine risks are addressed overseas before goods are im p o rted into Australia, including by m onitoring the anim al and p lan t health situation and certification systems o f exporting countries.

• A Q IS delivered a range o f q uarantine services aim ed at protecting A ustralia’s favourable anim al, plant and h u m an status, w ith specific initiatives to:

— reduce leakage o f m aterial o f q uarantine concern from the ‘G reen C h an n el’ at international airports

— address concerns w ith the veracity o f overseas fum igation certificates

— reduce the am o u n t o f m aterial o f q u aran tin e concern com ing to Australia via in ternational mail

— share responsibility for food safety w ith the im port com m unity by introducing quality assurance-based inspection systems for im porters

— continue to develop and im plem ent processes, in co n ju n ctio n w ith the Sydney O rganising C om m ittee for the O lym pic Games and other agencies, to ensure Australia’s quarantine integrity during the Sydney 2000 O lym pics

— im prove client relations by developing service charters.

- I

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

II

P E R F O R M A N C E R E P O R T I N G

P e r f o r m a n c e A c h i e v e d

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

Increased m ark et access

D uring 1998-99, A Q IS secured 44 new m arkets for A ustralian exports and protected 103 existing m arkets from possible trade disruptions. M ajor m arket gains included live cattle exports to Asia (particularly C hina), w heat to Brazil,

oats to the U n ited States, m eat to various Eastern European and South American countries, game m eat (kangaroo, em u /o strich and w ild boar) to various m arkets and seafood to French Polynesia. M arket pro tectio n activities concentrated on issuing new certificates for m eat, wool, skins and hides to

Poland; w ild boar to Sw itzerland; exports o f poultry/em u/ostrich products following two isolated outbreaks o f Newcastle Disease near Sydney; seafood to the Republic o f Korea; an d pea seeds and citrus juice to Japan. C onditions for exports o f w heat an d barley to C h in a and w heat to M auritius im proved.

In tern atio n al re co g n itio n for m eat in sp ectio n reform s

Australia is recognised in tern atio n ally as driving the developm ent o f m odern m eat inspection system s th a t address the inadequacies o f traditional inspection arrangem ents.

Supervision by A Q IS is central to control o f company H A C C P quality systems

T he M eat Safety E nhancem ent Program (M SEP) is the central co m ponent o f A Q IS ’s m eat inspection technical reform agenda. C om pany- em ployed m eat inspectors operate in a quality assurance system based on H A C C P principles. T he system is AQIS approved and directly supervised by an A Q IS veterinary officer and inspector, w ith other layers o f governm ent supervision and audit.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

T h ro u g h o u t 1998, A Q IS officers w orked w ith their counterparts from the US Food Safety and Inspection Service (FSIS) to develop agreed equivalent technical models. FSIS has since advised A Q IS it recognises M SEP as equivalent to the H A C C P -based inspection p ilot m odel it intends to

im plem ent in the U nited States.

U nder governm ent policy, the industry m ust fully recover the costs for the m eat inspection program by 1999-2000. O utlays in 1996-97 totalled $76.1 m illion, and revenue from fees and charges totalled $53.3 m illion. By co n tin u in g to im plem ent the reform agenda, outlays were reduced fu rth e r to

$55 m illion in 1998-99 and revenue rem ained around $53.7 m illion. T he subsidy required for the program to break even fell to $1.4 m illion.

R eductions in 1998-99 resulted from:

• lower overheads resulting from restructuring the program ’s m anagem ent and technical supervision functions, saving $2.3 m illion

• more efficient corporate support from A Q IS S upport Services Branch, saving $1 m illion

• the full year effect o f reform initiatives in troduced in 1997-98, saving $1.3 m illion in overtim e paym ents (reflecting changes to the certified agreem ent for m eat inspectors)

• cheaper docum entation costs from applying the E X D O C system to other com m odities, saving $200,000.

T h e cost o f operating the m eat inspection program in 1999-2000 should be $49.7 m illion, and should decline fu rth er in the years to 2002-03.

E ncouraging the uptake o f quality assurance arrangem ents an d th ird p arty inspection systems

• T he M eat Inspection Division approved 53 M eat Safety Q u ality Assurance arrangem ents from July to D ecem ber 1999 and a further 28 from January to M arch 1999, and audited and approved an average nine establishm ents per m onth.

• For live anim al exports, AQIS accredited 38 private veterinarians to perform supervisory and inspection activities AQIS previously perform ed. T he organisation co n tin u ed to issue export docum entation based on declarations m ade by accredited veterinarians, exporters and other relevant parties involved in the export process.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• By N ovem ber 1998, A Q IS had provisionally accredited three third party certifying bodies to undertake th ird party auditing for dairy and fish exports, and accredited a fo u rth com pany in February 1999. Two m ore com panies have applied for accreditation and are being assessed.

• By N ovem ber 1998, A Q IS had provisionally accredited seven third party dairy auditors; however, no fish auditors have yet been accredited.

Im p lem en tin g re co m m en d atio n s in the dairy, live anim al an d grains ex p o rt program s

D airy exports

T h e re c o m m e n d a tio n s o f th e Q u a ra n tin e an d In sp e c tio n A dvisory C o u n c il (Q IA C ) D airy Review will be com pleted w hen contestable third p arty inspections are im p lem en ted . T h e program now sets technical standards im plem ented by in d u stry and regulated by State dairy authorities, whose perform ance A Q IS audits. D om estic and export standards will be

fully harm onised.

Live anim al exports

T he live anim al exports program w ill im plem ent third party program s for the pre-export p reparation o f livestock, reproductive m aterial and com panion anim als for export, in line w ith the recom m endations o f the Q IA C review o f the program . C o m m u n icatio n channels w ith stakeholders will be enhanced

and third p arty services program s will be reviewed regularly in consultation w ith stakeholders.

G rain exports

T he program will m ain tain its role o f independent inspection and certification provider by strengthening com m unication links and am ending legislation to sim plify charging m echanism s and reward efficiencies. C o-regulation will be enhanced by sim plifying quality assurance systems to

facilitate in-line rath er than e n d p o in t inspection systems, and introducing industry-w ide train in g and accreditation packages.

S u s t a i n a b i l i t y

T he N airn rep o rt on quarantine and the report o f the Task Force on Im ported Fish and Fish Products b o th m ade progress.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

M anaged risk, based on scientific evidence

• A fter extensive stakeholder consultation, A Q IS standardised procedures to be followed for the science-based analysis o f risks associated w ith im ported anim als and plants and th eir products. T h e Im p o rt Risk Analysis H an d b o o k sets ou t consultation o p p o rtu n ities and notes the appeal processes open to stakeholders.

• In 1998-99, work was carried out on 58 im port risk assessments. In the context o f Canada’s dispute with Australia over quarantine restrictions on C anadian salmon, the W orld Trade O rganisation’s (W TO ) Appellate Body determ ined in November 1998 that Australia’s measures did not conform with

the requirements o f the W T O Agreement on the Application o f Sanitary and Phytosanitary Measures (SPS Agreement). Subsequently, the W T O Arbitrator determ ined that Australia w ould be perm itted until 6 July 1999 to im plem ent

the W T O findings. In order to meet this deadline the normal im port risk analysis (IRA) procedure was accelerated and comprehensive risk analyses on non-viable salmon, non-viable marine finfish and ornamental finfish were conducted. The Executive Director o f AQIS announced his decisions on these

analyses on 19 July 1999. In conducting the IRAs, AQIS held two meetings w ith key stakeholders in addition to five public meetings in a num ber o f capital cities. AQIS commissioned 14 independent scientific experts to provide advice on relevant issues. Subsequently the Senate decided that the Rural and Regional Affairs and Transport Legislation Com m ittee should conduct an inquiry into aspects o f A Q IS’s decisions.

Im p o rt Risk Analyses (IRAs)

P lant analyses were com pleted for apples from N ew Zealand, m angoes from the Philippines, ya pears from C hina and fuji apples from Japan. Plant analyses under way include citrus, table grapes and maize from the U nited States; tom atoes, bulbs, m ushroom s and citrus from Europe; and limes from N ew C aledonia. Eight anim al analyses were com pleted, including genetic m aterial from New Z ealand and South Africa, com m ercial and laboratory vaccines, zoo animals, laboratory anim als and hatching eggs. T here are 41 anim al analyses under way, including chicken m eat, eggs and egg products, pig m eat, dairy products, dogs and cats, and zoo animals.

• A Q IS com pleted m ajor reviews of:

— operational procedures for im p o rtin g equestrian equipm ent, veterinary drugs and stockfeed for the Olym pics

— com m odities exem pt from perm its

— conditions for anim als transshipping airports; sea transport o f horses from New Z ealand

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

- agreem ent governing operation o f the Sandown private horse q uarantine facility

- the Q u a ra n tin e Infringem ent N otices scheme

— the First Port V ector M onitoring Program

- routine vessel inspection procedures (including ballast water)

— refinem ent o f detector dog validation techniques

- use o f active d etec to r dogs at international airports

— airport G reen C h an n el survey

— procedures for dealing w ith aircraft cabin waste.

A further 21 reviews u n d er way range from im porting dried pet food to quarantine requirem ents for releasing injured native anim als brought into registered qu aran tin e premises for treatm ent. Ten appeals were lodged against the im port risk analysis process d u rin g the year. O f these, six were dismissed,

two lapsed and two were w ithdraw n.

E xpanded q u a ra n tin e c o n tin u u m

In offshore activities:

• AQIS w orked to establish an inform al disease in cid en t reporting system in some Indo-Pacific countries to enhance the early diagnosis o f disease outbreaks. A Q IS also began discussions w ith relevant agencies in Papua New G uinea to m aintain knowledge o f the country’s pest and disease

situation, and reached agreement w ith Indonesian authorities on a project to strengthen anim al and plant quarantine and health surveillance in Indonesia

• AQIS w orked w ith overseas postal and com m ercial organisations to address the q uarantine risks presented by in ternational m ail. AQIS pre-cleared C hristm as ham pers and m ail-order catalogues by ensuring catalogues don’t contain quarantinable items, and publicised Australia’s

concerns w ith non-E nglish speaking groups overseas, m inim ising the potential for contam inated m aterial to arrive in A ustralia

• AQIS increased the pre-clearance o f m aterial such as m ilitary equipm ent an d sec o n d h an d ag ric u ltu ral m ach in e ry to help keep risks offshore. T h is activ ity w ill be a m ajor p a rt o f p re p arin g for the Sydney 2000 O ly m p ic G am es

• AQIS w orked to im prove the capacity o f regional countries to conduct effective surveillance and carry o u t risk analyses, including projects to develop technical guidelines on quarantine and health certification for

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aquatic anim als, enhancing the capacity o f the Philippines and T h ailan d to co n d u ct pest risk analyses for endem ic p lan t diseases, and training Indonesian personnel on m olecular techniques o f disease detection

• A Q IS established form al links w ith the South Pacific co m m unity through p articipating in the R egional Technical M eeting on P lant P rotection and the Asia-Pacific P lant P rotection C onvention, and in draw ing up and adopting international standards for plants and plant products

• A Q IS increased surveillance and in tro d u ced new diagnostic research program s to boost the early w arning and detection o f Japanese encephalitis (JE). Sentinel pig herds were expanded to nine new sites in readiness for the peak transm ission period for JE vectors d u rin g the wet season, and follow ing the first reported hum an case o f JE on m ainland Australia in M arch 1998

• A Q IS eradication o f papaya fruit fly th ro u g h o u t the Torres S trait resulted in a significant decline in the num bers o f flies trapped. M aintaining high level co-operation betw een N AQ S and the Q ueensland D epartm ent o f Prim ary Industry is essential in early w arning and eradication program s

• a training course in m odern techniques for conducting anim al disease surveys was com pleted in Indonesia.

Post border activities are reported by N O A P H .

Increased co m m unity responsibility

• B enchm ark surveying in late 1997 o f the awareness levels o f a range o f key audiences about quarantine indicated m ost o f those surveyed considered they were not well inform ed about qu aran tin e issues.

• A Q IS cam paigned to increase awareness. A sum m ary o f outcom es shows:

— Q u a ran tin e W eek 1999 generated m ore th a n 200 m edia item s nationally, in clu d in g 1745 colum n centim etres in p ublications and 218 m inutes on T V an d radio, equivalent to m ore th an $ 1 .4 m illio n in advertising

— nationally, m ore than 100,000 A ustralians viewed AQIS quarantine displays at travel expos

— during 1998-99, in-flight videos, p rin t or voice quarantine messages reached m ore than 7.5 m illion aircraft passengers and crew before they arrived in Australia.

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M ore consultative decisio n m aking and external in p u t into q u a ra n tin e decision m aking

• A Q IS ’s 10 industry-specific consultative com m ittees dealt w ith issues such as charging and p rio rity setting, and its stakeholder register involved 1800 registered stakeholders in form ulating policy. Stakeholders received 27,000 advices over the year.

• T he Q u a ran tin e an d Exports Advisory C ouncil (QEAC) was established to advise the M in ister for A griculture, Fisheries and Forestry on quarantine and export policy, a n d strategic issues. T he council, chaired by Professor M alcolm N a irn , has w ide professional an d scientific representation.

Q EA C com pleted reviews o f the N o rth e rn A ustralia Q u a ra n tin e Strategy and A Q IS ’s h o rtic u ltu re and fish program s, and a council m em ber chaired the N a tio n a l C o m p e titio n Policy Review o f the Im ported Food Control A ct 1992.

QEAC meets six times a year and reports on a regular basis to the Minister. In addition QEAC members intract w ith the various A Q IS/Industry Consultative Committees and a range o f stakeholders which allows feedback and advice to be provided direct to the senior levels o f AQIS management.

QEAC has recently formed six teams within the Council, each one being responsible for m onitoring progress in a particular area providing Council with recommendations on policy and co-ordinating workshops and/or conferences.

The six policy areas are:

— P lant H ealth Infrastructure, including the establishm ent o f the A ustralian P lant H ealth C ouncil;

— the C o n tin u u m o f Q uarantine;

— m anaged risk;

— W T O /T B T /S P S ;

— co-regulation, QA and T h ird P arty Inspection; and

— em erging Industries and their Issues.

• A Q IS ’s risk assessm ent panels ap pointed 27 ind ep en d en t scientific experts to provide expertise.

• AQIS quarantine research grants program provided alm ost $200,000 for quarantine-related research.

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E nhanced capacity in p la n t and fish q u a ra n tin e p ro tec tio n and policy

• D u rin g 1998-99, b o th P h ilip p in es a n d papaya fru it flies were

erad icated from A u stralia. In a d d itio n , surveys o f apple a n d pear orchards and ornam ental hosts o f fire blight failed to detect any sign of the disease; consequently, some m ajor A sian m arkets agreed to im p o rt A ustralian apples.

• AFFA developed the Strategic A quatic A nim al H ealth Plan 1998-2003 (Aquaplan) to im plem ent the aquatic anim al health com ponents o f the G overnm ent’s response to the N airn and N ational Task Force on Im ported Fish and Fish Products reports. Industry, the S tanding C o m m ittee on A griculture and Resource M anagem ent and the Standing C om m ittee on

Fisheries and A quaculture endorsed A quaplan.

E lectronic initiatives at th e border

• A Q IS ’s Internet-based IC O N im p o rt conditions database increased dom estic and in tern atio n al industries’ access to current im p o rt inform ation. IC O N will enhance com pliance and help partnership initiatives by allowing clients to assess A Q IS ’s im port conditions for a range o f com m odities before im porting.

• R edevelopm ent o f the AQIS Im p o rt M anagem ent System (AIMS) will im prove the tim eliness o f im port processing and risk cargo targeting. W ith co-regulation initiatives, it should reduce significantly face-to-face processing o f im ports.

• T he airport m anagem ent system will m ore efficiently process passengers by autom ating the generation o f AQIS infringem ent notices, and m ay result in reduced passenger processing tim e.

• M ajor initiatives developed by the B order Programs B ranch to address quarantine risks overseas include developing co-regulation arrangem ents w ith industry. T hese should reduce the n u m b er o f consignm ents for highly com pliant im porters referred to A Q IS, in tu rn reducing im p o rt costs and securing m ore tim ely release o f cargo for com panies participating in such arrangem ents.

• C o-regulation also should increase the level o f ‘inform ed com pliance’ w ith quarantine requirem ents by in d u stry in A ustralia and overseas through:

— providing train in g to educate in d u stry personnel about the rationale behind quarantine regulation

— developing com pliance agreem ents w ith staff involved in the im p o rt logistics chain to reduce quarantine risk.

• A Q IS intercepted alm ost 228,000 p ro h ib ited item s this year. O f these, 9000 involved pests or disease o f econom ic concern.

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Q u a ran tin e d e te c to r dog program a n d x-ray technology at airp o rts and m ail exchanges reduced q u aran tin e risks

• A dditional staff, d etecto r dog team s and x-ray units at international airports resulted in m ore goods being seized from incom ing passengers. Officers seized alm ost 25 per cent m ore declared and undeclared item s in D ecem ber 1998 th a n in S eptem ber 1997.

• Public awareness program s, deterrent activities co n trib u te d

Working a t all o f Australia’s international airports, A Q IS detector dogs provide a friendly a n d highly visible reminder o f the need to declare or dispose

o f items o f quarantine concern.

im proved signage at airports and visible to a b etter understanding o f Australia’s q uarantine laws and a higher rate o f voluntary declaration o f item s o f

q uarantine concern: 21 per cent o f arriving passengers declared q uarantine items in 1998 com pared w ith 18 per cent o f arriving passengers declaring quarantine

item s in 1997. A seizures database in the in ternational mail program and qualitative analysis o f quarantine risks enabled more efficient targeting o f resources and a

33 per cent increase in the num ber o f referrals. T his resulted in m ore than twice the num ber o f seizures in 1997. Partnerships w ith A ustralian C ustom s

Service, Australia Post and air courier firms enhanced the profiling o f high risk countries o f origin, and helped in co­ o rdinating offshore activities w ith

exporters and postal authorities in India, Singapore, Switzerland, the U nited K ingdom and the U nited States.

M ore effective im p o rt clearance

• Im port clearance program staff sam pled, inspected and treated processed foods, agricultural products, containers, biological products, live plants and anim als, m achinery, tim ber, logs and m ouldings. AQIS targets high risk containers such as those from giant African snail-infested locations

and those proceeding to or th ro u g h rural areas, and inspected 5 per cent o f containers to m etro p o litan destinations for soil and o ther contam ination. A bout 16 per cent o f containers have external contam ination (m ostly soil), and AQIS targeted ports w ith a high risk o f such contam ination. N airn

resources also were allocated to the surveillance o f container packaging and dunnage (tim ber used in packing goods), as 7 per cent o f cargo packaging

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was infested w ith contam inants including exotic borers, bark, soil and insects. AQIS also is developing new systems to target high risk consignm ents and countries.

• N ew measures for assessing, inspecting and clearing air cargo were tested, halving the num ber o f entries necessitating a visit to A Q IS offices and m ore than doubling the detection o f item s o f q uarantine concern.

Processes to ensure A ustralia’s q u a ra n tin e in teg rity d u rin g the Sydney 2000 O lym pics

A Q IS made progress on strategies and im plem ented operational plans to cope w ith the additional dem and for q uarantine services during the Sydney O lym pic and Paralym pic Games. AQIS will use the international focus o f the Sydney Games to increase public awareness o f quarantine issues and highlight

the service it provides to its stakeholders and the com m unity.

Service charters used

• A Q IS ’s corporate service charter is in place, along w ith 12 program - specific charters. A client feedback form was distributed to A Q IS clients, w ho can also provide direct feedback th ro u g h the AQIS website. C lient feedback reports ranged from 33 positive responses (42 per cent) and 44 suggestions for im provem ent (56 per cent) to two reports o f a general nature. Each incident was followed up, w here possible, and the service subsequently im proved.

• C lient satisfaction in key areas was in d ependently surveyed. Average satisfaction w ith A Q IS services was highest for export m eat clients at 7.0 ou t o f 10, followed by dairy and shipping clients at 6.9, grain clients at 6.8, live anim al exporters w ith 6.6 and im ported foods clients — the least satisfied - at 6.2.

W here com parable figures are available, the only client group to show a real change since last year was im p o rted foods, where the overall satisfaction rating d ropped to 6.2 in 1998 from 6.6 in 1997. For grain clients, the overall satisfaction rating has decreased steadily since 1996,

while for export m eat clients it has increased steadily. For live anim al exporters, the rating dropped slightly.

C ontact Officer:

Paul Hickey Executive Director

« (02) 6272 5455

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1

Revenue from Other Sources

Total Departmental Revenue

E x p e n s e s

Departmental Expenses

Operting Result

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue

Administered Revenue

Net Effect to Government

E x p e n s e s

Administered Expenses

Total Administered Expenses

Actual Staffing Level

72,523,000

113,193,000

185,716,000

188,884,000

-3,168,000

0

0

0

0

1849

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A U S T R A L I A N B U R E A U O F A G R I C U L T U R A L

A N D R E S O U R C E E C O N O M I C S ( A B A R E )

ABARE is Australia’s largest applied econom ic research agency specialising in com m odities. It provides high quality research to enhance A ustralia’s econom ic perform ance through better decision m aking by in d u stry and im proved evidence-based policy developm ent and im plem entation.

ABARE’s research program is designed to provide realised benefits to the national econom y through increasing the com petitiveness o f the com m odities sector and better m anaging Australia’s natu ral resources. Projects are designed to address im p o rtan t com m unity, governm ent and industry needs. T he dissem ination o f ABARE’s research results through the publication o f Australian Commodities and other research reports, conference papers and the

N ational O u tlo o k C onference are im p o rtan t in m axim ising the net pay o ff to stakeholders o f ABARE’s research.

ABARE’s website it at http://w w w .abare.gov.au

ABARE’s key responsibilities in relation to AFFA are in com m odity m arket forecasts and analyses, an d econom ic research on agriculture, fisheries and forests industries. ABARE’s com m odity forecasting and m arket assessment activities provide a base for public and private decision m aking affecting A ustralia’s prim ary industries.

Changes to the AFFA portfolio in O cto b er 1998 resulted in ABARE adding a food and agribusiness stream to its research program . T he changes also resulted in ABARE providing, under contract, m inerals and energy related econom ic research, and com m odity forecasting and statistical services to the new D epartm ent o f Industry, Science and Resources.

O b j e c t i v e s *

ABARE provides high quality relevant econom ic inform ation to enhance the:

• com petitiveness and sustainability o f A ustralia’s prim ary and energy industries

• capacity o f governm ent and business to effectively develop policy and make decisions.

* Refer to page 104 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

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P e r f o r m a n c e F o r e c a s t *

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

• ABARE will m ain tain its com m odities based forecasting activities, em phasising the developm ent an d public release o f short and m edium term outlooks for the resource and agricultural sectors. ABARE will further im prove forecasting techniques for agriculture.

• ABARE will c o n tin u e to dissem inate its research o u tp u t through its annual O u tlo o k conference and regional conferences, presentation o f papers at other conferences a n d in d u stry m eetings, distribution o f ABARE publications and m edia coverage.

• ABARE will c o n tin u e to co n d u ct econom ic research to enhance Australia’s ability to com pete in in tern atio n al agricultural m arkets through analysing policy developm ents in key trad in g partners. An im p o rtan t part o f this w ork will involve th e fu rth er developm ent o f a m odeling capacity to m eet Australia’s neg o tiatin g requirem ents for the W T O round.

• ABARE will analyse the p o ten tial im pact o f various rural, agricultural and taxation policy op tio n s on the perform ance o f farm businesses.

S u s t a i n a b i l i t y

• ABARE will fu rth e r develop the next generation o f its global trade general equilibrium m odel (G T E M ) to inform policy developm ent in the lead up to the F ourth C onference o f the Parties to the U N Fram ew ork C onvention on C lim ate C hange at Buenos Aires in N ovem ber 1998.

• ABARE will study the econom ic fram ew ork required to establish an international em issions trading system w ithin the term s o f the Kyoto Protocol before th e F ourth C onference o f the Parties to the U N Framework Convention on Climate Change at Buenos Aires in November 1998.

• ABARE will fu rth e r its cu rren t w ater m odelling program to design optim isation netw ork m odelling tools th at incorporate econom ic decision m aking w ith hydrological an d biological processes. T h e m odels will be integrated w ith a representation o f the w ater trading m arket in the

southern M urray-D arling Basin to allow a com prehensive econom ic analysis o f different aspects o f the C ouncil o f A ustralian G overnm ent w ater reform agenda.

* Refer to page 106 in the Department o f Primary Industries and Energy 1998-99 Por folio Budget Statements.

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• ABARE will increase the effectiveness and efficiency o f governm ent policies and program s to enhance the sustainability o f natural resource m anagem ent in A ustralia by evaluating the effect o f existing policies and program s, and assessing the efficiency and effectiveness o f alternative policy approaches.

• ABARE will provide econom ic analyses on the im pact o f the changes in forest use in the final year o f the C om prehensive Regional Assessm ent (CRA) process — a key initiative o f the N ational Forest Policy Statem ent. As p art o f this process ABARE will co n tin u e to enhance FO R U M , ABARE’s spatial econom ic m odel.

• ABARE will provide econom ic inform ation about Australia’s energy sector industries, particularly electricity an d natural gas, to su p p o rt the G overnm ent’s reform o f dom estic energy markets.

P e r f o r m a n c e A c h i e v e d

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

D u rin g 1998-99, ABARE developed and released short and m edium term outlooks for the resource and agricultural sectors.

• Projections o f Wine Grape Production a n d Winery Intake to 2000 -0 1 helped w ine grape producers and wine m akers plan p roduction program s and anticipate grape supplies.

• Four issues o f the Australian Crop Report provided farmers, in p u t suppliers, and grain handlers and m arketers w ith assessments o f seasonal conditions and prospects for m ajor field crops on a national and State-by-State basis. T his m aterial co n trib u ted to a m ore efficient use o f resources in the sector.

• ABARE’s four issues o f the Australian Forest Products Statistics provided m onthly, quarterly and annual forest products inform ation and discussions o f issues such as A ustralia’s position on plan tatio n farm ing and the outlook for forest products in regional m arkets.

• Energy M arket Developments and Projections to 2 0 1 4 -1 5 con tin u ed ABARE’s com m itm ent to providing industry and policy decision makers w ith up-to-date and com prehensive analysis o f the trends in, and longer term outlook for the A ustralian energy m arket. T he report is im p o rtan t to

m icro econom ic reform and sustainability outcom es.

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• Australian Grains Industry 1999 drew together, for the first tim e, data on crops grown and th e financial, physical and socio-econom ic characteristics of grain farm s in each o f A ustralia’s agroecological zones. Industry is using the results to plan research, and farm ers are using it to benchm ark their

own perform ance.

• Forest Products: Long term Consumption Projections fo r Australia analysed the factors affecting the dem and for forest products, and assessed the consum ption, p ro d u c tio n and trade to 2040 o f A ustralian forest products. It also exam ined th e im plications o f the N ational P lantations Inventory’s

long term projections o f p lan tatio n log availability on the dow nstream processing o f forest products.

• Global Outlook fo r Plantations linked key findings from recent studies and identified gaps in inform ation to determ ine the potential o f industrial roundw ood plantations in future w ood supply.

• Australia in the World Gold M a rket exam ined the situation and outlook for Australia’s second largest co m m o d ity export industry d u rin g a period o f very difficult m arket conditions, and estim ated the po ten tial benefits to gold products and A ustralia if the m ain trade barriers to gold trade in

w orld m arkets were removed.

• Australian Commodities, ABARE’s quarterly forecasts publication, continued to assist in d u stry and policy decision makers. It sum m arised the perform ance and prospects for A ustralian com m odities, including forecasts for m ajor agricultural, m inerals an d energy industries and m acroeconom ic

indicators. Each pu b licatio n also contained analyses o f topical issues affecting the com m odities sector. T h e m aterial helped producers and suppliers im prove forw ard planning, and helped the G overnm ent develop and better target policies, such as rural adjustm ent, and develop trade

negotiating positions.

• ABARE also dissem inated the results o f its com m odity research to industry and policy m akers at its very successful annual O u tlo o k conference and a N o rth ern A ustralian Regional O u tlo o k Conference. N ew inform ation provided at these conferences helped decision makers adjust to em erging m arket circum stances, thus im proving the efficiency o f resource allocation

and sector profitability.

Econom ic research on W T O n eg o tiatio n s continued

• W T O Agricultural Negotiations: Im portant M arket Access Issues identified and appraised m arket access issues th at are im portant for the negotiating

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parties, including A ustralia, and for the success o f the upcom ing agreem ent. It particularly canvassed and analysed m ethods o f increasing m arket access through tariff quotas.

• A genda 2000 - R eform ing the E uropean U nion’s D airy Policies’ in Australian Commodities (D ecem ber) analysed the European U nion’s proposals to reform the C om m on A gricultural Policy for its dairy industry. By providing a better u nderstanding o f the issues involved, this research is

helping to develop A ustralia’s negotiating stance for the next W T O round, to benefit agriculture and Australia.

S u s t a i n a b i l i t y

G lobal trade and e n v iro n m e n t m odel (G T E M ) developed fo r clim ate change n eg o tiatio n s

• ABARE extended its coverage o f greenhouse gas emissions to include noncom bustion carbon dioxide, m ethane and nitrous oxide. G T E M was the first global m odel to incorporate m ethane and nitrous oxide. To reflect the im portance o f the agricultural sector as a m ajor em itter o f these two im p o rtan t greenhouse gases, this p a rt o f G T E M was developed substantially so it now contains significantly m ore agricultural detail than its predecessor M EGABARE.

• ABARE also m odelled the o p p o rtu n ities to reduce m ethane em issions in response to penalties placed on these em issions, including m ethane emissions from key agricultural sectors, and m odelled interfuel substitutions betw een coal, gas, petroleum products and electricity in G T E M industries.

E conom ic fram ew ork for an in te rn a tio n a l em issions trad in g system studied

Economic Impacts o f the Kyoto Protocol: Accounting fo r the Three M ajor Greenhouse Gases continues ABARE’s c o n trib u tio n to developing international clim ate change policy by analysing the econom ic im pact o f im plem enting the Kyoto Protocol. T he analysis is im p o rtan t for ongoing negotiations th a t will determ ine m any unresolved operational details o f the protocol. T his study was the first in the in ternational arena to incorporate m ethane and nitrous oxide, as well as carbon dioxide. It dem onstrated the significant econom ic benefits o f extending the coverage o f greenhouse gases.

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ABARE presented 12 articles or conference papers on policy developm ent in the ongoing in tern a tio n al clim ate change negotiations related to the U N Fram ew ork C o n v en tio n on C lim ate C hange. These papers evaluated alternative policy approaches for achieving the Kyoto P rotocol’s objectives. A

particularly im p o rta n t finding was th a t international em issions trading can provide the m ost cost effective policy instrum ent. T he findings have been used in national and in tern atio n al policy debates, on policy evaluations w ithin portfolio industries and in the w ider com m unity debate.

ABARE’s c u rre n t w a te r m odelling program extended

Structural A djustm ent a n d Irrigated Broadacre Agriculture in the Southern Murray D arling Basin exam ined survey inform ation and used m odel sim ulations to analyse the effects o f seasonal conditions, changes in water supply security, enterprise p atterns and w ater use, investm ents in on-farm

storage and reuse system s, an d in tro d u ctio n o f environm ental flow recom m endations, on the level an d variability o f farm gross m argins and water dem ands. T he m odel integ rated the financial and biophysical aspects o f farmers’ w ater use decisions. G overnm ents are using the report to develop

policies to sustainably use A ustralia’s w ater resources through introducing econom ic principles to w ater m anagem ent.

Existing policies, p rogram s an d altern ativ es assessed

• Landcare: Promoting Improved L a n d M anagem ent Practices on Australian Farms d o cum ented the results o f a survey o f A ustralian landcare and land m anagem ent practices.

• ‘W ater A llocations — Efficiency an d E quity Issues’, in Australian Commodities (D ecem ber) addressed efficiency and equity issues including the im pact o f w ater trading, changing the way water rights are allocated and w ater trad in g in the M urrum bidgee irrigation area.

• Southern Bluefin Tuna and CITES: an Economic Perspective examined how C ITES (C onvention on International Trade in Endangered Species) listing m ight affect the key issues facing the international m anagem ent o f southern bluefin tuna.

• Aquaculture Policy: Selected Experiences from Overseas id en tified and assessed the in stru m en ts used overseas to m anage resources in aquaculture an d possible im plications for the future m anagem ent o f A ustralian aq u acu ltu re.

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• Australian Fisheries Statistics 1998 provided inform ation on prod u ctio n and trade for the A ustralian fishing in d u stry for the three years ending in 1997-98, and profiled C om m onw ealth and State fisheries.

• T h e above reports have resulted in b etter targeted policies an d industry funded research, and im proved natural resource m anagem ent.

• Australian Farm Surveys Report 1999 co n tain e d th e financial physical and socio-econom ic characteristics o f farms in the cropping, livestock and dairy industries in 1996-97 to 1998-99. People in Farming provided data

for analysing rural social issues and guiding policy decisions.

• Farmers at Work: the Gender D ivision analysed the division o f labour including on-farm and off-farm w ork, household work, childcare, and com m unity and voluntary w ork by A ustralian broadacre and dairy farmers. T his report dem onstrated the extent th at farm w om en co n trib u te to the

farm business and fam ily incom e.

• The Australian B eef Industry 1998 profiled the financial, physical and socio-econom ic characteristics o f farm s in the A ustralian beef industry. By exam ining industry-w ide perform ance and benchm arks, the in d u stry has been able to adjust research and developm ent and other inputs to im prove profitability and com petitiveness.

C h an g in g forest use evaluated

• ABARE co n trib u ted significantly to a jo in t C om m onw ealth and Q ueensland report, Towards a South East Queensland Regional Forest Agreement — a Directions Report. T he report used the F O R U M m odel in consultation w ith governm ent and industry to determ ine possible effects

o f industry developm ent on em ploym ent and the gross value o f products for the forest products industry to 2020.

Farm business perform ance analysed

Farm fa m ily a t work.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• ABARE c o n trib u te d to R egional Forest Agreem ents by applying FO R U M m odels to analyse in d u stry developm ent options in N ew S outh Wales, W estern A ustralian and V ictoria.

Research o u tp u t d issem in ated

• M ore than 1200 representatives from governm ent, business, finance, agriculture, m in in g and energy industries attended ABARE’s O utlook 99 conference. M ore than 120 journalists also

attended the conference, resulting in significant m edia coverage w ith

over 250 headlines, both national and international.

• ABARE held a

N o rth e rn A ustralian R egional O utlook C onference w ith the

D e p artm en t o f P rim ary In d u stry an d Fisheries N o rth e rn T errito ry and the D e p a rtm e n t o f M ines an d E nergy N o rth e rn T errito ry in Septem ber 1998. I t dissem inated regionally relevant forecast in fo rm atio n and o b tain ed valuable feedback on developing fu tu re research to benefit

n o rth e rn A ustralia.

• ABARE officers presented 48 papers to conferences in A ustralia and overseas, providing delegates w ith b etter access to m arket forecasts, and w ith an A ustralian perspective on the potential to develop m utually beneficial dom estic and in tern atio n al policy.

• ABARE d istrib u te d m edia releases to international, national, state and regional m edia an d industry bodies to publicise ABARE’s research and com m odity forecasting publications, resulting in a m ore com petitive and sustainable A ustralian prim ary industry.

Econom ic in fo rm a tio n ab o u t A ustralia’s energy sector in d u stries provided

• Australian Commodities (June) featured an article th at outlined the reform agenda in gas and electricity retailing, assessed the effectiveness o f reforms, indicated the benefits o f co m petition and identified po ten tial barriers. T he

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

article provided su p p o rt for the ongoing processes o f m arket and policy reform in A ustralia’s electricity and gas industries by enhancing public understanding o f how efficient m arket outcom es can benefit A ustralians.

• ABARE fu rth er sup p o rted energy sector decision makers by publishing conference papers detailing new econom ic inform ation on issues affecting sustainable developm ent and use o f A ustralian energy. For example, Economic Impacts o f N ew Electricity Interconnectors provided decision m akers w ith estim ates o f the econom ic im pact o f proposed electricity grid augm entation, particularly the im p o rta n t interconnection betw een Q ueensland and N ew S outh Wales.

Similarly, Energy Use a n d Energy Efficiency in Australian Industry helped policy makers concerned w ith the environm ental im pact o f energy use in Australia by exam ining trends in energy use and efficiency, and constraints to increased investm ent in energy efficiency in Australia. Australia in the

Global Nuclear Fuel M arket, and The Economics o f Australian Coal Supply presented up-to -d ate inform ation on pressures facing A ustralian energy export industries to international custom ers, industry investors and dom estic policy m akers had u p -to -d a te in fo rm atio n on the pressures facing key A ustralian energy export industries, thus providing a base for future action.

• ABARE produced the Energy Efficiency Best Practice Sector Prioritisation Study, w hich identified and prioritised industrial and com m ercial energy sectors for p articip atio n in the C om m onw ealth’s Energy Efficiency Best Practice Program.

C ontact Officer:

Brian Fisher Executive Director

s (02) 6272 2100

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1 14,411,000

Revenue from Other Sources 6,151,000

Total Departmental Revenue 20,562,000

E x p e n s e s

Departmental Expenses 21,104,000

Operating Result -542,000

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue 0

Administered Revenue 0

Net Effect to Government 0

E x p e n s e s

Administered Expenses 0

Total Administered Expenses 0

Actual Staffing Level 235

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

B U R E A U O F R U R A L S C I E N C E S ( B R S )

BRS, an independent scientific bureau in AFFA, provides scientific advice th at underpins the G overnm ent’s developm ent o f evidence-based policy. BRS has a vital role in analysing, assessing and packaging science to im prove the com petitiveness, profitability and sustainability o f Australia’s agricultural, fisheries, food and forestry industries.

T h e BRS website at http://w w w .brs.gov.au provides further inform ation.

BRS was established in D ecem ber 1998, substantially from a restructure o f the form er Bureau o f Resource Sciences. T h e new BRS received the Land and W ater Sciences D ivision from the A ustralian Geological Survey O rganisation; the N ational Residue Survey and A nim al and Plant H ealth Branch were transferred to AFFA’s N ational Offices; an d the old BRS’s M inerals and Petroleum branches m oved to the D e p artm en t o f Industry, Science and Resources. T he role o f the new BRS rem ains substantially the same as th at o f the old BRS, bu t the new BRS has an increased capacity in assessments and advice for resource m anagem ent in rural regions. T he new BRS offers groundw ater and soil inform ation as well as social sciences inform ation.

T he new BRS is arranged in four divisions, w hich approxim ately m atch the group structure o f its AFFA clients:

• A griculture Food and Social Sciences

• Fisheries and Forestry Sciences

• Land and W ater Sciences

• Science Secretariat.

O b j e c t i v e s *

BRS provides high quality scientific and technical advice to enhance:

• the sustainability and com petitiveness o f A ustralia’s prim ary and energy industries

• the capacity o f G overnm ent and business to effectively develop policy and make decisions.

* Refer to pages 99 and 108 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

It also improves:

• the quality, extent and accessibility o f publicly available geoscience knowledge

• the m anagem ent o f Australia’s land and groundw ater resources, consistent w ith the principles o f sustainable developm ent.

P e r f o r m a n c e F o r e c a s t *

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

BRS will:

• provide high quality, in d ep en d en t scientific advice to assist in developing policy on genetically m odified organism s

• use sophisticated co m p u tin g and spatial analysis techniques to continue to provide expert scientific analysis and advice on d ro u g h t exceptional circum stances in rural Australia

• intend to develop its capacity to provide social science assessments for portfolio policy areas

• will continue to provide high quality independent scientific advice on pest m anagem ent.

S u s t a i n a b i l i t y

BRS will:

• provide p ro d u c tio n and resource assessments to u n d erp in com prehensive regional assessments o f forests for the Eden, north-east V ictoria, W estern Australia and south-east Q ueensland regions, and produce the State o f the Forests R eport

• provide technical analyses and advice for m anaging A ustralian fisheries and aquaculture, fu rth er developing m ethods for assessing the im pact o f fishing and publishing 1998 reports on fishery status

* Refer to pages 111 and 112 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• continue to provide expert scientific analysis to support A ustralia’s position in international greenhouse negotiations in the lead up to C onferences o f Parties 4 in Buenos Aires. It also continues to develop a national carbon accounting system for land-based greenhouse gas emissions and sequestration

• deliver a range o f client-focused geoscience-based outputs related to land and groundw ater m anagem ent.

P e r f o r m a n c e A c h i e v e d

C o m p e t i t i v e n e s s a n d P r o f i t a b i l i t y

• To help Australian rural industries profitably use emerging gene technology, BRS provided high quality, scientific advice through participating in a Standing C om m ittee on Agriculture and Resource M anagem ent high level working group on biotechnology, reviewing the potential impact o f commercial

transgenic herbicide resistant crops, reviewing international developm ents in gene technology and reviewing current intellectual property arrangements.

• To assist the M inister make decisions ab o u t Exceptional C ircum stances based on accurate and scientifically defensible inform ation, BRS assessed and reported on 11 applications; assessed and reported on d ro u g h t affected areas for spring and au tu m n reviews; and provided m apped spatial and biophysical analysis and com m entary for m onthly exceptional circum stances status reports. T he n u m b er and range o f applications was greater than in the previous year, and is likely to grow so the new BRS has increased its capacity for this work.

AFFA and N ew South Wales River M anagem ent C om m ittees. T h e centre integrates social

assessments w ith agricultural and resource inform ation.

To im prove its capacity to provide social science assessments for portfolio policy areas, BRS established a Social Sciences C entre. T he C entre produced a Social Im pact Assessment toolkit for

The Social Sciences Centre o fB R S is ensuring that fa rm in g fam ilies such as Rob a n d Jan Wormwell (pictured) are considered in the policy development process.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• To help health an d quarantine m anagers identify and visualise pest incursions, BRS provided m aps on biophysical factors relevant to fruit fly infestation for the A Q IS Japan F ruit Fly Area Freedom project, and helped w ith m aps an d m odels in m anaging the potential risk o f Japanese

encephalitis in N o rth e rn Australia.

• To help public a n d private landholders manage agricultural pest species, BRS published a n d pro m o ted national m anagem ent guidelines for rodents and an overview b o o k on new approaches to pest anim al m anagem ent in Australia, and fu n d e d 10 new projects in the 1998-99 annual N ational

Feral A nim al C o n tro l Program fu n d in g round.

S u s t a i n a b i l i t y

• To make progress tow ard concluding Regional Forest A greem ents and to sustain those regions’ forest industries, BRS concluded scientific and technical advice for the W estern A ustralian Regional Forest Agreem ent, and co n tin u ed advice concerning three V ictorian, four N ew South Wales

and one Q u eensland R egional Forest Agreem ent. As p a rt o f this work, BRS added the ‘spatial’ co m p o n en t to the forest ‘3P G grow th m odel’, co n trib u tin g to a software package th a t forestry m anagers can use to accurately and cheaply estim ate yields; published reports on plantation suitability; and co n trib u ted as p a rt o f the AFFA team to publishing A Framework o f Regional (Sub-national) Level Criteria and Indicators o f Sustainable Forest M anagem ent in Australia. C lient feedback indicated this

is an im p o rtan t m ethod in post-R egional Forest A greem ent sustainable forest m anagem ent.

BRS published the State o f the Forests Report in 1998, providing the first com prehensive national assessment o f Australia’s forest

resources and industries, essential in m onitoring, planning and managing Australia’s forest

was derived largely

from the N ational Forest Inventory, an active database w ith Internet access, m anaged by BRS for A ustralian forestry m anagers and stakeholders.

industries. T he report

BRS Executive Director Peter O ’Brien launching ‘ Australia’ s State o f the Forest Report 1 9 9 8 ’.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• BRS provided assessments and advice to sustainably m anage A ustralian fisheries, publishing the 1998 Fisheries Status Reports, fu rth er developing m ethods for assessing the im pact o f fishing on the m arine environm ent, and producing a range o f outputs including papers on fisheries bycatch and indicators o f ecologically sustainable developm ent in fisheries.

• BRS supported A ustralia’s position in international greenhouse negotiations and Kyoto Protocol issues, particularly on land-based greenhouse gas em issions and m ethods to reliably assess carbon sequestration. T his scientific advice aim s to assist agricultural and forest industries m anage future em ission reduction targets. BRS released figures on rates o f clearing for agriculture 1990-95; held an international w orkshop on m ethane reduction in livestock industries; and developed a

m ethane reduction program th at BRS jo in tly adm inisters w ith the A ustralian G reenhouse Office. BRS also published land cover change project specifications and con tin u ed to publish the quarterly Climate Change Newsletter to keep decision m akers and stakeholders well inform ed

on greenhouse issues.

• To help the sustainable m anagem ent o f Australia’s groundw ater resources, BRS published assessments o f groundw ater quality for several regions including the M urray-R iverina catchm ent, the New S outh Wales M urray region and the G o u lb u rn River catchm ent in Victoria. BRS also conducted groundw ater assessments for quality and sustainability o f supply o f groundw ater in A ustralia’s arid regions in the N orthern T erritory and

Q ueensland. T h ro u g h researching and publishing maps on its hydrogeology, scientific papers on m easuring rate of recharge and publications on bore rehabilitation, BRS co n trib u ted to the sustainable m anagem ent o f the G reat Artesian Basin.

C ontact Officer:

Peter O ’Brien Executive Director

e (02) 6272 3447

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1 12,767,000

Revenue from Other Sources 10,309,000

Total Departmental Revenue 23,076,000

E x p e n s e s

Departmental Expenses 27,832,000

Operating Result -4,756,000

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue

Administered Revenue

1,482,000

0

Net Effect to Government 1,482,000

E x p e n s e s

Administered Expenses 1,482,000

Total Administered Expenses 1,482,000

Actual Staffing Level 151

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

S E C R E T A R I A T S

AFFA has two Secretariats th at su p p o rt G roup operations. These Secretariats are the:

• Executive Secretariat

• M anagem ent Secretariat.

T he Secretariats were form ed in O cto b er 1998 following changes to the A dm inistrative A rrangem ents O rders. T h e Executive Secretariat grouped together the Executive P lanning and R eporting Team, the Internal A u d it U nit

and the Business Ethics, Security and Investigations U nit, w hile the M anagem ent Secretariat b rought together the Business Services U nit, the Inform ation Services C entre and elem ents o f the form er C orporate

D evelopm ent Division.

T h e Executive Secretariat supports the executive leadership and effective m anagem ent o f AFFA, including providing sup p o rt to the Secretary and the Executive Board. It also develops, im plem ents and enforces policy regarding Business Ethics, S ecurity and Investigation; develops C o rp o ra te P lanning

an d R eporting systems; and evaluates the efficiency and effectiveness o f system s, practices a n d co n tro ls to assist th e executive in exercising c o rp o rate governance.

T h e M anagem ent Secretariat supports AFFA’s strategic leadership and effective m anagem ent, including advising on corporate developm ent and im proving corporate perform ance, and developing corporate inform ation

systems to support organisational change and im prove perform ance. It also provides internal business and inform ation support and advisory services, and provides strategic advice and support for the corporate governance o f AFFA.

T he Executive Secretariat consists o f three areas:

• Executive P lanning and R eporting

• Internal A udit

• Business Ethics, Security and Investigations U nit.

T h e M anagem ent Secretariat consists o f six areas:

• C orporate D evelopm ent Team

• Business Services U nit

• Inform ation Services C entre

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• Financial M an ag em en t U nit

• W orkplace C h an g e U n it

• Levies and R evenue Services.

O b j e c t i v e s *

T he two Secretariats will provide effective corporate leadership, accountable and efficient co rp o rate policy, planning, com m unication and m anagem ent support to the M inisters and AFFA:

• developing a pro-active p lan n in g and continuous im provem ent culture across the portfo lio

• developing a cu ltu re o f excellence in leadership, m anagem ent and perform ance

• developing and im p lem en tin g policies and procedures to ensure com pliance w ith C om m onw ealth requirem ents for financial and hum an resources m anagem ent and re p o rtin g across portfolio program s.

P e r f o r m a n c e F o r e c a s t * *

T he Secretariats will:

• better integrate evaluation p lan n in g and practice in overall planning, policy advice and perform ance m anagem ent strategies

• prepare a Fraud C o n tro l P lan to m eet C om m onw ealth Law E nforcem ent Board standards

• develop a co herent and unified financial m anagem ent fram ework, financial m anagem ent inform ation system and associated train in g to take account o f C om m onw ealth financial m anagem ent reform s

• develop an interactive executive in fo rm atio n system to m eet the requirem ents o f AFFA’s Executive an d su p p o rt m anagers at all levels in th e o rg a n isa tio n w ith in a fra m e w o rk for m an ag in g AFFA’s in fo rm a tio n resources

* Refer to page 95 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statements.

** Refer to page 98 in the Department o f Primary Industries and Energy 1998-99 Portfolio Budget Statement.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

• im plem ent a perform ance m anagem ent and staff developm ent fram ew ork and strategy based on better practice examples, including guidance on process and forms

• develop effective and efficient people m anagem ent policies and procedures to ensure devolution and accountability according to governm ent policies

• consolidate, stream line and im prove processes and services through continuing to im plem ent the Business Services U nit (an aggregation o f hum an resources, finance and general su p p o rt services from all G roups except AQIS)

• im plem ent a com m on desktop co m p u tin g strategy using a preferred range o f com puting products, and rationalise and upgrade infrastructure to facilitate the change.

P e r f o r m a n c e A c h i e v e d

• T h e Executive Secretariat facilitated the developm ent o f the 1999-2002 AFFA C orporate Plan, w hich provides the strategic fram ew ork for AFFA’s operations and the basis for subsidiary plans in each o f AFFA’s five G roups. G uidelines issued to G roups encouraged an integrated planning

process to focus on identifying key objectives and m ethods for m easuring the success o f the G roups and AFFA as a whole. T he C orporate Plan also provides the fram ew ork for AFFA’s People and Inform ation M anagem ent Strategic Plans as well as for planning in o ther areas o f m anagem ent. As AFFA becomes m ore fam iliar w ith o u tp u t reporting and evaluation, this

process will strengthen and becom e m ore integrated.

• T he Executive Secretariat com pleted actions concerning internal audit and fraud control in accordance w ith C om m onw ealth Law E nforcem ent Board standards.

• D uring 1998-99 AFFA faced m any challenges in im plem enting the G overnm ent’s financial reform agenda. Flowever, the M anagem ent Secretariat m ade a num ber o f achievem ents including:

- im plem enting a new Financial M anagem ent Inform ation System (QSP) th at includes a new reporting tool, C O G N O S , to enable extraction o f data from several data sources. Im plem entation o f these systems greatly enhanced the quality o f financial m anagem ent and reporting in AFFA and provided significant efficiency gains

— developing the first whole o f AFFA accrual budget. As p art o f this process, AFFA developed a single, clear portfolio outcom e th at helped guide the D e p artm en t’s activities

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

— establishing a new central AFFA treasury function to respond to the new bu d g et a n d devolved banking arrangem ents.

• T he In fo rm atio n Services C entre ensured the first phase o f developing an executive inform ation system was com pleted on schedule. All D epartm ental corporate system s now have a uniform data structure.

• T he C o rp o rate D evelopm ent Team com pleted a trial o f 360 degree feedback and increased the scope o f the Perform ance P lanning and Appraisal Schem e to include B and 1 and 2 officers consistent w ith the feedback elem ent o f AFFA 2000.

• T he C o rp o rate D evelopm ent Team developed a broad fram ew ork, the AFFA People M anagem ent Strategic Plan, bringing together all elem ents o f people m anagem ent in clu d in g perform ance m anagem ent. T he new plan - built around the objectives in AFFA 2000 - sim plifies D epartm ental

objectives an d reaffirm s AFFA’s co m m itm e n t to achieve Investors in People accred itatio n .

• AFFA co n tin u ed to im plem ent the Business Services U n it (BSU) during 1998-99 w ith the u n it operating on a fee-for-service basis. T he unit continued to im prove business su p p o rt functions p roducing further savings. H u m an resources, financial and general su p p o rt services for AQIS were progressively am algam ated w ith o th er BSU functions.

• T he M anagem ent Secretariat also form ed a Levies and Revenue Service (Service), m erging accounts receivable units to achieve econom ies o f scale and increase revenue com pleteness for clients. T he Service aims to reduce the cost o f processing transactions, im plem ent better business practices

and im prove the quality o f financial services to clients. T h e Service adds value to client business processes.

• AFFA im plem ented a com m on desktop com puting strategy reducing AFFA IT su p p o rt costs by about 20 per cent. T he strategy was com pleted on schedule, w ith o u t significant problem s or disruption to business. Use o f a standard desktop significantly im proves AFFA’s electronic com m unication

and personal productivity, and gives staff in portfolio locations across Australia access to the corporate system.

Contact Officers:

Cliff Samson — Assistant Secretary M artin Dolan — Head

Executive Secretariat M anagement Secretariat

a (02) 6272 5544 a (02) 6272 5401

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

P E R F O R M A N C E R E P O R T I N G

R E S O U R C E T A B L E

D e p a r t m e n t a l

R e v e n u e

Revenue from Government - Bill 1 20,096,000

Revenue from Other Sources 10,246,000

Total Departmental Revenue 30,342,000

E x p e n s e s

Departmental Expenses 24,562,000

Operating Result 5,780,000

A d m i n i s t e r e d

R e v e n u e

Appropriated Revenue 100,000

Administered Revenue 0

Net Effect to Government 100,000

E x p e n s e s

Administered Expenses 100,000

Total Administered Expenses 100,000

Actual Staffing Level 325

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E R V I C E C H A R T E R S

D PIE im plem ented its service charter in July 1998. Follow ing the federal election in O cto b er 1998 and the subsequent change in D epartm ental responsibilities and reorganisation, AFFA began planning, developing and organising a new ch a rter to reflect these changes. This culm inated in AFFA

im plem enting a new client service charter on 1 July 1999.

T he new charter describes services th a t AFFA can provide and standards against w hich it can be m easured. AFFA seeks to establish a closer relationship w ith its clients th at will help the agricultural, food, fisheries and forest industries be m ore com petitive, profitable and sustainable so as to

continue to create jobs, particularly in regional Australia.

T he charter covers all AFFA’s organisational units: the Industries D evelopm ent G roup (including the N ational Offices o f Food Safety and N ational Office o f A nim al and P lant Flealth), the C om petitiveness and Sustainability G roup (which includes the Rural Policy and C om m unications

D ivision), ABARE, BRS and A Q IS.

T he new AFFA client service charter is at http://w w w .affa.gov.au/affa/charter/ index.htm l

T he D PIE charter broadly described the portfolio’s clients: the new charter clarifies this, and includes specific examples o f client groups so that anyone who deals w ith AFFA is considered a client. G roups w ith a significant interest in AFFA’s activities include:

• G overnm ent: P ortfolio M inisters, the Parliam entary Secretary, other governm ent organisations (A ustralian and overseas) and international agencies

• agricultural groups: producers and processors, rural com m unity groups, agricultural industries, rural people, agricultural enterprises, statutory and n o n -statu to ry m arketing and p ro m o tio n bodies, research and developm ent bodies and in d u stry organisations

• other groups: producers and processors including in the food, fishing and forestry industries; financial in stitu tio n s; chem ical and fertiliser industries; industry organisations; non-governm ent organisations; indigenous groups; environm ental groups; regional com m unities; im porters and exporters; the

public; and the m edia.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E R V I C E C H A R T E R S

C lients, staff and m anagem ent were consulted in developing the new charter. AFFA representatives form ed a com m ittee to consult w ith o ther staff w ithin their areas. In addition, a sample o f clients and m em bers o f the AFFA Executive Board com m ented on a draft charter.

An official launch, d istrib u tio n to all clients and stakeholders, and publication on AFFA’s w ebsite helped p ro m o te staff, custom er and stakeholder awareness o f the new client service charter.

T h e charter includes standards covering the quality o f relationships w ith custom ers and service delivery, and com plies w ith the G overnm ent’s C harter o f Public Service for a C ulturally Diverse Society under the C om m onw ealth Access and Equity Strategy. A system is in place to collect and record

com plim ents, suggestions and com plaints, and record if custom ers are satisfied w ith the way th eir com plaint is handled. T he D P IE charter contained only four service standards. However, the AFFA charter contains 19 service standards, and m ore clearly defines the relationship betw een AFFA and its clients.

T he D PIE system used exception reporting rather than m easuring how often the standards listed in the charter were m et. T he AFFA charter will continue to use this system. R andom surveys will also be introduced to test the

observance o f the new service standards. In addition, the charter will be reviewed in 2001 and an external body will review the charter at least every three years.

D u rin g 1998-99, D PIE/A FFA recorded only one com plaint, w hich is still pending. T he com plaint/feedback system D PIE/A FFA em ployed is one that accepts both w ritten (letter or fax) and verbal (telephone) input.

In dealing w ith custom er service feedback, AFFA:

• refers the feedback to the action officer concerned

• draws the feedback to the atten tio n o f o ther staff

• improves and changes the way things are done

• feeds the response into the agency’s corporate planning process.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S E R V I C E C H A R T E R S

In 1998-99, D P IE /A F F A recorded the following com plaint statistics:

• callers’/au th o rs’ nam es, workplace, address, telephone num ber (if provided)

• w hether callers/authors wish their identity kept confidential during inquiries resu ltin g from the inform ation

• details o f message

• details o f o th er actio n callers/authors to o k regarding this m atter

• w hether the m a tte r falls w ith in D PIE/A FFA responsibilities; if not, callers/ authors are referred to the appropriate agency/organisation

• w hether callers/authors are w illing to be interview ed

• nam e o f D P IE /A F F A officer referred to in the m atter.

All clien ts a n d s ta ff are aw are o f th is service ch a rter. T h e p u b lic a tio n was d is trib u te d to all c lien ts a n d sta k e h o ld e rs a n d m ad e available on AFFA’s w ebsite.

T he key perform ance standards in the D P IE service charter were to:

• reply to correspondence w ith in 20 w orking days or contact correspondents to let them know w hen they could expect a reply. If the m atter was outside D P IE ’s responsibility, correspondents were told to w hom the m atter m ust be referred

• answer telephone calls or messages p rom ptly during norm al office hours. Identify the nam e or position o f the person speaking an d /o r the area contacted. If unable to answer the query im mediately, contact details w ould be taken to ensure th a t the caller received a response

• respond to requests for p rin ted inform ation, reference m aterial or publications w ith in five w orking days

• strive, at all tim es, to efficiently and effectively adm inister the program s in accordance w ith relevant legislation, governm ent policy and public accountability requirem ents.

A part from the d epartm ental charter, 15 other service charters cover specific areas/program s w ith in AFFA (A ppendix 3).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

AFFA continues to pro m o te the principles o f social justice and equity in its w ork in rural an d regional com m unities. It pursued this com m itm ent by following the principles in the Charter o f Public Service in a Culturally Diverse Society. M any initiatives m et m ore th an one principle.

AFFA continually w orked to im prove A CCESS to its services:

• the W om en in R ural Industries Section (form erly the R ural W om en’s U nit) continued to im prove the status o f rural w om en th ro u g h its work w ith governm ents, rural industries an d com m unities to prom ote the key role w om en play in rural industries. Stage 2 o f the Missed Opportunities —

Harnessing the Potential o f Women in Australian Agriculture was com m issioned in 1998-99 and will be com pleted in late 1999-2000

• AFFA’s diverse w orkforce was encouraged to join the Language and C ultural Skills Register. S taff w ith different cultural an d linguistic backgrounds w ere a valuable resource AFFA drew on in its client relations. Staff on this register assisted AFFA in regular dealings w ith clients from

non-E nglish speaking backgrounds, including in ternational negotiations or hosting visiting delegations

• as part o f its responsibilities u n d e r the N atural H eritage Trust, AFFA provided com prehensive guidelines for project applications which contained co n tact inform ation in three com m unity languages, in addition to English. Panels representing a broad range o f interests assessed project

applications and facilitators ensured local indigenous interests were no t overlooked.

AFFA ensured clients were treated fairly (EQ U ITY ). For example:

• A Vision fo r Change - N ational Plan fo r Women in Agriculture and Resource M anagem ent was launched in N ovem ber 1998 and endorsed by 115 governm ent, in d u stry and co m m u n ity organisations. T he plan aims to increase the p articip atio n o f w om en in all aspects o f rural industry. A

cross-departm ental W om en as C lients strategy aim ed to im prove the D e p artm en t’s recognition o f w om en as clients and increase w om en’s access to decision m aking, services an d program s while a scholarship allowed a w om an from a rural industry to participate on the A ustralian Rural

Leadership Program . T he grants program for rural w om en’s national n o n ­ governm ent organisations helped these organisations in their leadership roles in su p p o rtin g w om en’s contrib u tio n s to rural industries

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

• AFFA participates in the S tanding C om m ittee on A griculture and Resource M anagem ent (SCARM) process o f developing policies for farm families and their related rural industries and com m unities

• the Farm Family R estart Schem e provided a welfare safety net for low incom e farmers w ho experienced financial hardship and could n o t borrow fu rth er against th eir assets, as well as adjustm ent assistance to farm ers who left the industry

• the exceptional circum stances relief paym ent assisted farm families in areas declared affected by exceptional circum stances

• the R etirem ent Assistance for Farm ers Schem e raised awareness o f the im portance o f farm fam ily succession plan n in g and provided a ‘w indow o f o p p o rtu n ity ’ for low incom e, pension-aged farm ers to ‘gift’ their farms to a younger generation and get im m ediate access to the age pension

• the financial counselling com p o n en t o f the R ural C om m unities Program provided financial counselling services for farmers, small business operators and tow nspeople experiencing financial difficulty.

AFFA m ade every effort to ensure th at C O M M U N IC A T IO N strategies targeted as wide an audience as possible. For example:

• ABARE aim ed to dissem inate in fo rm atio n as widely as possible in the com m unity and attem p ted to o btain as m uch in p u t as possible in form ulating its annual research program . ABARE’s m ajor conference, O u tlo o k 98, was held on 3-5 February 1999. In addition to inviting delegates to the conference, ABARE ensured clients th ro u g h o u t rural and regional A ustralia could get access to inform ation via the m edia and Internet. M edia coverage included Cross Country (Prime netw ork), Landline (ABC), Today Show and Business Sunday (N ine netw ork), and various news program s. ABC R adio established a studio at the conference for direct broadcast, a fu rth er 149 articles on the conference appeared in national, regional and rural new spapers. Special session rates provided a low cost option for delegates to a tte n d individual sessions. Regional

O u tlo o k conferences were held in D arw in and Moree. In addition, a large num ber o f ABARE econom ists spoke at various conferences ru n by other organisations th ro u g h o u t Australia, thus ensuring valuable ABARE com m odity inform ation was dissem inated to rural and regional Australia

• BRS used its website to provide, dow nloadable data sets on A ustralia’s geology and soils. BRS also provided an online subscription service, em ailing clients w hen new m aterial was published on the BRS website.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

BRS held several conferences providing clients w ith additional access to BRS’s in fo rm atio n and expertise. In M ay 1999, BRS co-hosted the A ustralian A cadem y o f Science Fenner C onference on the E nvironm ent, ‘Visions o f F u tu re Landscapes’. T h is conference provided leaders and

decision m akers in p rim ary industries, governm ent, scientific, Aboriginal and artistic com m unities w ith stim u latin g new ways to look at Australia’s future land use

• electronic versions o f the proceedings o f BRS conferences are available on the BRS w ebsite. To enhance awareness o f BRS’s w ork am ong rem ote com m unities, its m ajor publications were launched at public media events and p ro m o ted th ro u g h direct m arketing. Inform ation about publications is available b o th in the B R S Publications Catalogue and on the BRS website; both include ord er form s. M any books are distributed free to im portant clients an d stakeholders, an d publications can be ordered by mail or telephone, or purchased from governm ent bookshops.

AFFA ensured R E SP O N S IV E N E S S in its dealings w ith the public.

For example:

• BRS involved clients and stakeholders in form ulating its w ork program . T heir com m ents and feedback w ere considered at every stage o f this process. In 1998-99, BRS c o n tin u e d to effectively com m unicate w ith, and efficiently serve an d deliver p roducts to its clients and stakeholders using

In tern et technologies. For exam ple, T h e BRS Social Sciences C entre held the national ‘C o u n try M atters’ conference, exploring the role o f social science in developing policy and program s for Australia’s rural industries. This was aim ed at policy m akers, in d u stry decision makers, the farm ing, fishing and forestry com m unities, social sciences researchers, agricultural consultants and extension officers

• the N ational R egistration Schem e ensured transparency and openness as public in fo rm atio n sum m aries on chemicals were produced, allowing the public to n o m in ate chem icals to include in review program s and access inform ation on w hich chem ical assessments are based.

AFFA launched its service charter to run from 1 July 1999 to 2001. This charter has b u ilt-in m echanism s to m o n ito r and review the E F FIC IE N C Y and E F FE C T IV E N E S S o f the D e p artm en t in its dealings w ith clients. T he service charter set service standards so clients can m easure AFFA’s

perform ance against these.

AFFA’s W orkplace D iversity Program is ‘results’ oriented.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

A C C O U N T A B IL IT Y was built in to each activity, as well as program evaluation. Effective im plem entation o f this program was addressed through the Secretary’s Diversity M anagem ent Forum , w hich m et about every two m onths.

W o r k p l a c e D i v e r s i t y a n d E q u a l

E m p l o y m e n t O p p o r t u n i t y ( E E O )

AFFA seeks to encourage w orkplace diversity across the D e p artm en t (Table 1). AFFA recognises individual needs because this is integral to im proving organisational perform ance an d client service. T his recognition includes addressing the needs o f individuals in the four target groups

(w om en, people w ith disabilities, people from non-E nglish speaking backgrounds, and A boriginal and Torres S trait Islanders). T h e D e p artm en t launched its W orkplace D iversity Program in July 1998. T his program was driven by the Secretary’s D iversity M anagem ent Forum (SD M F). SD M F is responsible for progressing diversity m anagem ent in AFFA by raising issues and influencing AFFA an d /o r senior m anagem ent’s responses to im proving the way it manages diversity issues. S D M F drew representatives from AFFA’s G roups, as well as m any o f the special interest netw orks operating in AFFA.

It is personally chaired by the Secretary.

M ajor initiatives included:

• reviewing and preparing the forth co m in g re-issue o f W orkplace H arassm ent G uidelines

• reviewing and proposing the re-issue o f the C onsiderate W orkplace Strategy

• encouraging staff from non-E nglish speaking backgrounds to atten d a p ro g ram to assist th e m increase th e ir u n d e rs ta n d in g a n d use o f

E nglish language.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

Table 1: R ep re se n ta tio n o f E E O G ro u p s in AFFA at 30 June 1999

Classification and Equivalents Total sta ff

W om en NESB PWD ATSI

Band 1 1801 621 126 2 31

Band 2 654 240 68 2 11

Band 3 537 158 24 0 2

Band 4 3 0 0 0 0

SES 74 13 2 0 0

Total 3069 1032 220 4 44

Note: NESB refers to people from non-English speaking backgrounds; PWD refers to people with disabilities; and ATSI refers to Aboriginal people and Torres Strait Islanders.

E E O A p p o i n t m e n t s t o P o r t f o l i o B o d i e s

As at 30 June 1999, the A griculture, Fisheries and Forestry portfolio covered 313 positions in statu to ry and n o n -sta tu to ry bodies; these appointm ents were subject to com m onw ealth control or influence.

D uring 1998-99, 86 ap p o in tm en ts were m ade to these bodies o f people from EEO groups (Table 2). D ata are provided voluntarily by people holding or being ap pointed to these positions an d therefore m ay n o t be com plete.

Figures for 1997-98 are n o t provided because a significant num ber o f the D PIE portfolio bodies were transferred to o th er agencies d u rin g the transition to AFFA, and statistical com parison therefore w ould be ineffective.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S O C I A L J U S T I C E A N D E Q U I T Y

Table 2: EEO in Appointments to Portfolio Bodies

EEO ta rg e t group Positions a t A ppointm ents

30 Ju n e 1999 during 1998-99

Women 60 26

People from non-English speaking backgrounds 14 8

Aboriginal and Torres Strait Islanders 0 0

People with disabilities 1 1

Total from EEO target groups 75 35

Total positions on portfolio boards 313 86

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D U S T R I A L D E M O C R A C Y

AFFA co n tin u ed to b u ild on the successful initiatives o f previous years to address in d u strial dem ocracy an d staff consultation issues, particularly using:

• the Secretary’s diversity m anagem ent forum

• the executive assistants’ forum

• the AFFA n etw o rk

• staff/m anagem ent consultative com m ittees in AFFA workplaces.

T he staff/m anagem ent consultative com m ittees set up d u rin g the negotiation o f certified agreem ents c o n tin u ed to m eet regularly. Representatives on these com m ittees regularly encouraged sta ff to provide in p u t, an d reported after each m eeting to ensure ongoing em ployee p articipation in and consultation

on workplace issues.

In Septem ber 1998, AFFA also co n d u c te d a staff survey, in w hich all staff were encouraged to participate. T h e survey provided results in the following m ajor areas:

• perform ance effectiveness

• people m anagem ent

• w orkplace relations

• w orking environm ent

• loyalty and com m itm ent.

Survey results in d icated considerable im provem ents in m any areas, and strategies are being developed to m eet areas o f concern.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

AFFA ANNUAL R E P OR T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

I n t e r n a l A u d i t

T he Internal A udit U n it com pleted activities according to the 1998-99 A nnual Internal A u d it Plan in p artn e rsh ip w ith E rnst & Young.

Internal A udit co m p leted 28 audits as p art o f its 1998-99 internal audit plan. These audits focused on perform ance, inform ation technology and key com pliance aspects o f AFFA’s operations.

T he key them es from these audits were:

• the level o f risk m anagem ent in AFFA is good; however, docum entation could be en h anced w ith stru ctu re d inform ation m anagem ent processes

• the overall control en v iro n m en t is sound

• AFFA is clearly progressing governm ent and in d u stry reform agendas; however, considerable progress still is needed in som e areas.

T he recom m endations m ade in these audits assisted AFFA to identify areas o f best practice, identify areas o f system weakness and take a proactive role in facilitating change. T h e Internal A u d it U n it also responded to m anagem ent needs by providing ad hoc advice as required.

T he Audit C o m m ittee, com prising senior m anagem ent, oversaw the activities o f the Internal A u d it U n it and provided guidance as required and m et six

times during 1998-99.

R e p o r t s b y t h e A u d i t o r - G e n e r a l

T he A ustralian N a tio n al A udit O ffice (ANAO) audits all C om m onw ealth entities. T h e O ffice reports its findings in A uditor-G eneral’s reports tabled in Parliam ent. Six A u d ito r-G en eral’s reports issued in 1998-99 specifically refer

to AFFA.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

T he two reports m ost relevant to AFFA were:

9 8 /9 9 — 23 Accountability a n d Oversight Arrangements fo r Statutory Bodies in the Former Primary Industries a n d Energy Portfolio

O verall, the audit fo u n d accountability o f portfolio statu to ry bodies to the M inister and P arliam ent could be im proved by im proving the contents o f principal plans, quality o f perform ance inform ation, and annual reporting to Parliam ent. T he audit also found the D e p artm en t o f P rim ary Industries and Energy had im proved its sup p o rt o f the accountability arrangem ents for statu to ry bodies. T h e A N A O m ade eight recom m endations: three were addressed to AFFA and five were addressed to statutory bodies.

9 8 /9 9 — 49 S ta ff Reductions in the Australian Public Service

T his audit exam ined the A ustralian Taxation Office, D e p artm en t o f Prim ary Industries and Energy, and D e p artm en t o f T ransport and Regional D evelopm ent. T h e au d it found th at A Q IS was particularly strategic in

m anaging staff reductions w ith a robust corporate planning fram ew ork. A N A O found all the agencies could im prove the level o f su p p o rt offered to staff rem aining in the D ep artm en t follow ing staff reductions, and th a t all

agencies should have aligned their skills profile m ore w ith their long-term strategic goals.

Previously, AFFA responded to the m atters raised in each report through a h a lf yearly return to the M inister for Finance and A dm inistration. Fiowever, these procedures recently changed an d AFFA will determ ine a protocol to ensure adequate accountability and governance arrangem ents.

F r a u d C o n t r o l

T he Business Ethics, Security and Investigations U nit (BESIU) produces and m onitors im plem entation o f AFFA’s F raud C o n tro l Plan, investigates allegations o f fraud w ith in and against the D e p artm en t’s program s, provides ethics awareness train in g and co-ordinates security activity.

D u rin g 1998-99, the Business Ethics, Security and Investigations U nit:

• began to produce a revised Fraud C o n tro l Plan by agreeing on an approach and the fraud risk assessm ent criteria w ith the A udit C om m ittee and the Office o f Law E nforcem ent C o-ordination, and scheduling fraud risk assessment w orkshops

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

• co ntinued F rau d , Ethics, an d Security training th ro u g h the new recruit induction process th at prom otes the A ustralian Public Service C ode o f C o n d u ct and Values

• reissued AFFA’s In te rn e t C ode o f C o n d u ct to include em ail activity.

T he Business E thics, Security an d Investigations U n it investigations team dealt w ith 28 m atters involving fraud w ith in and against AFFA during 1998-99. M ajor investigations included fraudulent travel allowance, com pensation, overtim e an d leave claim s; theft o f com puters and other

equipm ent; an d breach o f w oodchip export licenses. O f the total investigations handled:

• three were referred directly to the D irector o f Public Prosecutions who subsequently issued tw o Letters o f W arning and began one prosecution action. Such referrals are u n d ertak en in accordance w ith the Fraud C ontrol Policy o f the C om m o n w ealth

• three resulted in disciplinary action u n d er the Public Service A ct 1922

• 20 required adm inistrative actio n only, or no fu rth er action, because they were resolved or lacked evidence

• the rem aining tw o are still u n d er investigation.

T he com pleted investigations also resulted in AFFA im plem enting recom m endations to strengthen procedures and controls to assist in preventing th e recurrence o f sim ilar fraudulent activity.

I n q u i r i e s b y P a r l i a m e n t a r y C o m m i t t e e s

S e n a t e R u r a l a n d R e g i o n a l A f f a i r s a n d

T r a n s p o r t L e g i s l a t i o n C o m m i t t e e

This com m ittee provided an in terim report th at an A Q IS decision in 1985 to ban the export o f fresh sultana grapes m ay have been outside the relevant legislation an d therefore resulted in dam ages to potential sultana grape exporters at th a t tim e. A Q IS u n d e rto o k to co-operate fully w ith the

com m ittee to provide relevant records. T h e m atter was referred to the C om m onw ealth O m b u d sm an for fu rth er investigation in August 1998.

This com m ittee considered the Q uarantine A m endm ent B ill 1998 did not change the C om m onw ealth’s powers in relation to privatising com m onw ealth operated q u aran tin e stations and saw ‘no reason why the Bill should no t be passed u n am en d ed ’.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

T his com m ittee su pported the Wool International A m endm ent B ill 1998 w ith o u t am endm ent, and supported the Wool International Privatisation B ill 1999 w ith one am endm ent, w hich the G overnm ent accepted.

T his com m ittee also presented a report on the provisions o f the Regional Forest A greem ents Bill.

S e n a t e R u r a l a n d R e g i o n a l A f f a i r s a n d

T r a n s p o r t R e f e r e n c e s C o m m i t t e e

T his com m ittee re p o rted on the incidence o f ovine Jo h n e’s disease in the A ustralian flock.

S e n a t e S t a n d i n g C o m m i t t e e f o r t h e S c r u t i n y o f B i l l s

T his com m ittee com m ented th at the Primary Industries (Customsj Charges B ill 1998 and the Primary Industries (Excise) Levies B ill 1998 allow prim ary industries to im pose charges and levies by regulation, b u t did n o t recom m end changes to the Bills.

T his com m ittee com m ented on the Q uarantine A m endm ent B ill 1998 b u t did no t recom m end changes to the Bill.

T he com m ittee also considered the follow ing Bills bu t m ade no com m ents:

• Agriculture, Fisheries a n d Forestry Legislation A m endm ent B ill (No. 1) 1998

• Agriculture, Fisheries a n d Forestry Legislation A m endm ent B ill (No. 2) 1998

• Australian Wool Research and Promotion Organisation A m endm ent B ill 1998

• N ational Residue Survey ( Customs) Levy A m endm ent B ill 1998

• N ational Residue Survey (Excise) Levy A m endm ent B ill 1998

• P rim ary Industries Levies a n d Charges ( C onsequential A m en d m en ts) B ill 1998

• Regional Forest Agreements B ill 1998

• Rural A djustm ent A m endm ent B ill 1998

• Wool International A m endm ent B ill 1998

• Wool International Privatisation B ill 1999.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

C o m m e n t s b y t h e O m b u d s m a n

T he O m b u d sm an extensively investigated (on his own m otio n ) the m atters referred to him by th e Senate R ural and Regional Affairs and Transport C om m ittee co n c ern in g certain actions in the mid-1980s by A Q IS and the form er E xport In sp e ctio n Service th a t are the subject o f com plaint by

Integrity R ural P roducts Pty L im ited.

O n 9 June 1999, th e O m b u d sm an rep o rted the decision to ban the export o f table grapes b ra n d ed ‘sultana’ in late 1985/early 1986 was contrary to law. T he O m b u d sm an also believed the decision to ban the export o f grapes branded ‘sultana’ c o n stitu te d defective adm inistration by the form er Export

Inspection Service.

T he O m b u d sm an recom m ended AFFA invite Integrity R ural Products Pty L im ited to su b m it a claim for any d irec t losses w h ich th ey and their

associated co m p an y (ies) m ay have su stain ed as a d irec t consequence o f this decision.

T he O m budsm an has n o t co n cluded the investigation in to w hether an earlier Business Ethics, Security and Investigations U nit investigation into sim ilar allegations was co n d u c te d properly and w hether A Q IS ’s handling o f a related freedom o f in fo rm atio n app licatio n was handled properly.

C o u r t a n d A d m i n i s t r a t i v e T r i b u n a l D e c i s i o n s

T he lo n g -ru n n in g u n ce rtain ty on th e use o f the grape variety ‘M enindee Seedless’ was resolved w hen the Full B ench o f the Federal C o u rt upheld the rejection o f an app licatio n for P lan t V ariety Rights for a sim ilar variety, ‘Sugraone’. T h e decision allows A ustralian M enindee Seedless growers to sell their harvest w ith o u t the possibility o f infringing the intellectual property rights o f o th er varieties (Sun W orld Incorporated v Registrar, P lant Variety Rights (respondent) an d M urray Valley G rape Growers C ouncil (party joined) - Full Federal C o u rt o f A ustralia).

F r e e d o m o f I n f o r m a t i o n

D uring 1998-99, AFFA received 22 request for access under the Freedom o f Information A ct 1982:

• seven requests for access were gran ted in full

• four requests for access were granted in part

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N T E R N A L A N D E X T E R N A L S C R U T I N Y

• tw o requests for access were denied

• one request for access was transferred to an o th er agency

• tw o requests for access were w ithdraw n

• six requests for access rem ained undecided by 30 June 1999.

T h e D e p artm en t’s Section 8 statem ent u n d er the Freedom o f Inform ation A ct 1982 is attached (A ppendix 4).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

L E G I S L A T I O N / R E G U L A T I O N S

I M P A C T I N G O N B U S I N E S S

G overnm ent re g u la to ry best practice arrangem ents for proposing new regulations or am en d in g existing regulations th at affect business require th at a R egulation Im p act S ta tem en t (RIS) be prepared.

Regulation includes any laws or o th er governm ent ‘rules’ th at influence the way people behave. It is n o t lim ited to p rim ary or subordinate legislation; it also includes ‘q u asi-regulation’, such as in d u stry codes or standards required by legislation, guidelines or codes o f con d u ct, for exam ple w here the

G overnm ent influences business to com ply.

AFFA prepared 17 R egulation Im p ac t Statem ents to com ply w ith governm ent requirem ents (A ppendix 5).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I

D I S C R E T I O N A R Y G R A N T S

A discretionary g ra n t allows the P ortfolio M inister or paying agency discretion in d e te rm in in g w hether o r n o t a particular ap plicant receives funding. T h e p a y m e n t can be m ade to an organisation or individual, and the recipient need n o t provide a service to governm ent in re tu rn for the grant.

A list o f grant recipients is available on request.

A F F A D i s c r e t i o n a r y G r a n t s

F unding o f N o n -g o v e rn m e n t P ro g ram s fo r R ural W om en

T his grant provides fu n d in g for key rural w om en’s organisations to enhance participation.

R egional Forest A greem ents (RFA) P articip atio n and Awareness G ra n ts Schem e

This grant facilitates regional stakeholder p articipation in, and prom otes awareness o f the C om prehensive R egional Assessm ent/RFA process in RFA regions.

Farm F orestry P ro g ram

T his grant prom otes com m ercial w ood an d non-w ood p ro d u ctio n and integrates com m ercial tree grow ing w ith o th er agricultural land uses.

N ational Landcare P ro g ram - P ay m en t to T rust A ccount

T his grant develops and im plem ents resource m anagem ent practices that enhance A ustralia’s soil, w ater and biological resources and th at are efficient, sustainable, equitable and consistent w ith the principles o f ecologically sustainable developm ent.

R ural C o m m u n itie s P rogram

This grant co n trib u tes to the developm ent o f vibrant rural com m unities by im proving access to inform ation and services, and encourages com m unity ‘ow nership’ o f service dem ands an d delivery.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

AFFA ANNUAL R E P O R T 1 9 9 8 - 9 9

S T A F F I N G O V E R V I E W

E m p l o y m e n t by T y p e

Table 3: Em ploym ent Type ;

( u n d e r t h e P u b l i c S e r v i c e A c t 1 9 2 2 )

is at 30 June 1999

Full time 2919

Part Time 150

Temporary 248

Table 4: Total N u m b er o f Perm anent Employees as at 30 June 1999 (full tim e and p a rt time)

Classifications ACT NSW NT QLD SA TAS VIC WA Female Male TOTAL

Secretary 1 0 0 0 0 0 0 0 0 1 1

SES Band 3 6 0 0 0 0 0 0 0 0 6 6

SES Band 2 15 0 0 0 0 0 0 0 3 12 15

SES Band 1 55 0 0 0 0 0 0 0 10 45 55

Band 4 2 0 0 0 0 0 0 0 0 2 2

Band 3 658 18 3 24 6 0 15 5 215 514 729

Band 2 468 81 1 89 34 4 67 15 303 456 759

Band 1 399 259 2 194 39 1 153 11 493 565 1058

Meat 0 141 1 125 50 7 83 30 5 432 437

CoD Grade 2 2 0 0 0 0 0 0 0 1 1 2

CoD Grade 1 5 0 0 0 0 0 0 0 0 5 5

Total 1611 499 7 432 129 12 318 61 1030 2039 3069

Proportion 52.4 16.2 0.2 14.0 4.2 0.3 10.3 2.0 33.6 66.4 100.0

(per cent)

Note: Percentage does not equal 100 due to rounding up of decimal places.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S T A F F I N G O V E R V I E W

S e n i o r E x e c u t i v e S e r v i c e ( S E S )

D uring 1998-99:

• 11 SES officers left AFFA: eight m ale SES Band 1 officers, and two male and one female SES B and 2 officers

• one male SES Band 1 officer joined AFFA

• two male and one female SES officers transferred at th at level w ithin AFFA

• one male departm ental officer was pro m o ted to a SES B and 1 officer

• one male SES Band 1 officer was p ro m o ted to a SES B and 2 officer

• two male SES B and 1 officers and one female SES Band 2 officer were unattached w ith in AFFA.

P e r f o r m a n c e P a y

AFFA believes its perform ance will be im proved if all staff are clear about their w ork goals and expected standards, and are given the feedback, resources and skills developm ent o p p o rtu n ities to achieve these. AFFA therefore co n tin u ed to im plem ent perform ance m anagem ent and appraisal over the course o f the year. Significant progress was m ade and all AFFA staff should be participating in the schem e by the end o f 1999. T he 360 degree feedback trial was com pleted by all SES staff and an evaluation o f the trial is u n d er way.

Seventy two SES or equivalent staff received perform ance pay based on the outcom e o f their p articip atio n in the perform ance m anagem ent and appraisal scheme in 1997-98 (Table 5).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S T A F F I N G O V E R V I E W

Table 5: SES Perform ance Pay Size and D istribution

Classification Amount ($)

SES Band 3 33,025.50

SES Band 2 77,832.43

SES Band 1 57,724.00

Chief of Division Band 20,684.28

Total 189,266.21

S t a f f T r a i n i n g E x p e n d i t u r e

AFFA provided staff w ith the o p p o rtu n ity to acquire the necessary skills and knowledge to effectively undertake current and possible future roles, and in so doing, help AFFA m eet its business objectives.

These objectives were developed in 1998, in the AFFA C orporate D evelopm ent T raining Strategy. W ith in the strategy, m anagers and staff m ust identify their train in g needs, seek train in g and developm ent opportunities, and evaluate the im p act o f the developm ent and on-the-job training.

T he strategy com prises six learning areas:

• corporate m odules (fundam ental AFFA core training products)

• m anagem ent program s for m an d ato ry target groups

• group-specific train in g to m eet specific needs

• extension m odules for in -d ep th study o f specific topics

• IT training for all AFFA staff

• on-the-job training.

D uring 1998-99, the net eligible expenditure on staff train in g was $4,764,678. T his represented 84,309 person-days o f training.

AF F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

O C C U P A T I O N A L H E A L T H A N D S A F E T Y

In 1998-99, AFFA c o n tin u e d to focus on the im portance o f O ccupational H ealth and Safety (O H & S ). Each m o n th , the Executive B oard continued to review O H & S rep o rts, and designated workplaces co n tin u ed to develop and review policies an d guidelines.

Following the changes to the A dm inistrative A rrangem ents O rders and recom m endations fro m C om care, a new com m ittee was form ed to cover AFFA (excluding ABARE and A Q IS); a new draft agreem ent was given to G roups and the C o m m u n ity an d P ublic Sector U nion (C PSU ) for com m ent;

a new com m ittee was established; an d the C PS U called for nom inations for the positions o f health and safety representatives and deputy health and safety representatives. T raining will follow b u t in the interim , health and safety representatives from the form er com m ittees perform the duties.

In AQIS, all area/regional offices established O H & S com m ittees com prising health and safety representatives, m anagem ent representatives, C PSU representatives and area/regional O H & S co-ordinators; the N ational O H & S C onsultative C o m m ittee c o n tin u ed to m eet every two m o n th s to discuss the

full range o f n atio n al O H & S issues, develop appropriate policies and provide reports to senior m anagem ent on in ju ry /co m p en satio n trends w ithin AQIS; and a steering com m ittee was established (M ay 1999) to develop O H & S guidelines for ship an d onboard cargo inspections as the issues crossed several

program boundaries an d had significant generic O H & S issues.

In ABARE, the O H & S com m ittee com prising health and safety representatives, m anagem ent and C P S U representatives co n tin u ed to m eet every three m onths. T h is com m ittee reviewed and assessed identified risk areas and im plem ented rem edial action where necessary. It also ensured

regular w orkplace inspections were co n d u cted in all w ork areas and set up a dedicated O H & S site on the ABARE In tra n et providing inform ation and ongoing staff O H & S education.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

O C C U P A T I O N A L H E A L T H A N D S A F E T Y

M e a s u r e s t o E n s u r e H e a l t h ,

S a f e t y a n d W e l f a r e a t W o r k

AFFA undertook m any measures to ensure the health, safety and welfare at w ork o f its employees and contractors, including organising a H ealth Expo for all C anberra-based staff, w orkplace visits, safety audits; m o n ito rin g O H & S program s; providing O H & S inform ation to staff, item s in AFFA’s bulletins and advice to managers; providing and training in the use o f ergonom ic equipm ent; providing individual assessments o f w ork areas; and

providing counselling services, eyesight testing, ventilation testing, drills in em ergency evacuation procedures and reviews o f fire evacuation procedures follow ing fire em ergencies.

Som e initiatives included:

• investigating and acting on the recom m endations o f a report into luggage handling at airports (AQIS national)

• developing a national m anual luggage handling policy (AQIS national)

• allocating First Aid Kits to vehicles (AQIS national)

• m anufacturing and issuing safety straps to place around container doors to stop loose cargo falling ou t d u rin g inspection (AQIS S outh Australia)

• satisfactorily m odifying or m oving the fresh air intakes for grain inspectors at Port Lincoln and Port Giles to avoid any future co n tam in atio n (AQIS South Australia)

• training staff using straight ladders d u rin g ship inspections to use a fall arrester (AQIS S outh Australia)

• reviewing use, storage and M aterial Safety D ata Sheets o f chemicals (AQIS South Australia)

• issuing safety m ats to several plants to relieve the stress from standing for long hours on slaughter floors (AQIS Q ueensland)

• conducting risk assessments on the seaport w harf area at Port B otany to review the co nduct o f random external inspection o f containers, and the Anim al Q u aran tin e Station at Eastern Creek (AQIS N ew S outh Wales).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

O C C U P A T I O N A L H E A L T H A N D S A F E T Y

S e c t i o n 6 8

In accordance w ith S ection 68 o f the Occupational H ealth a n d Safety A ct 1991 (Notification a n d Reporting o f Accidents a n d Dangerous Occurrences), the following were reported:

• AFFA had three incidents prescribing incapacity o f five days or m ore

• AQIS had:

— no deaths

— eight serious personal injuries

- three in cid en ts prescribing incapacity o f five days or m ore

- nine dangerous occurrences

• ABARE had no incidents.

Com care A ustralia investigated an in c id e n t involving a car accident by an AQIS staff m em ber inspecting containers at CTAL (C o n tain er Terminals Australia Lim ited) P o rt Botany, N ew S outh Wales. T h is led to a risk assessment review o f CTAL operations focusing on random external

inspections o f sh ip p in g containers.

AELA did n o t receive any notices u n d er Sections 30, 46 or 47.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

C O N S U L T A N C Y S E R V I C E S

C onsultants pro v id ed specialised skills n o t available from w ith in AFFA, or where staff or in -h o u se resources were lim ited.

AFFA policies on engaging consultants, including m o n ito rin g and evaluating their perform ance are o u tlin ed in C h ie f Executive’ s Instruction No. 4. T he instruction helps ensure AFFA co n tin u es to efficiently, effectively and appropriately use consultancies. T h e in stru ctio n also stipulates th at all

procurem ent over $ 5 0 ,0 0 0 is tendered openly.

Each consultancy approval m ust be justified. Each G roup’s Executive D irector ensures th at each G ro u p m eets C om m onw ealth procurem ent guidelines when contracting consultancy services. T h e G roup or area engaging the consultant ensures the w ork is co m p leted satisfactorily and outcom es are achieved.

AFFA’s C h ief Executive’ s Instructions details these requirem ents.

AFFA engaged m any consultants w ho were paid $2000 or m ore in 1998-99 (Appendix 6). D etails o f all consultancies for 1998-99 are available from:

T he G eneral M anager Business Services U n it

« (02) 6272 4491

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

1 9 9 8 - 9 9 AF F A ANNUAL R E P O R T

A P P E N D I X 1

DPIE's P rogram S tru c tu re to AFFA's C urrent S tru ctu re

AFFA S tru ctu re

POLICY GROUPS (DISR staff transferred into

Food and Agribusiness

Industries Division)

DPIE P ro g ram S tru c tu re

S u b-P rogram s

1.1 Livestock and Pastoral 1.2 Crops

Natural Resource 1.3 Management

1.4 Other Agriculture Industry Services 1.5 Rural (part transferred to DTRS)

1.7 Fisheries

1.11 Portfolio Management and Policy (only staff transferred to DISR)

1.6 Quarantine

and Inspection

1.13 Agriculture and Resource Economic Research

1.12 Geoscience, Research and Mapping (transferred to DISR except Land and Water Division)

1.14 Resource Sciences Research (Petroleum Resources Branch and Minerals Resources Branch transferred to DISR)

T ran sferred to DISR 1.8 Petroleum

1.9 Coal and Minerals Industries 1.10 Energy

AUSTRALIAN QUARANTINE

and INSPECTION

SERVICE (AQIS)

AUSTRALIAN BUREAU

OF AGRICULTURE

AND RESOURCE

ECONOMICS (ABARE)

BUREAU OF RURAL

SCIENCES (BRS)

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A N N U A L R E P O R T 1 9 9 8 - 9 9 A F F A

A P P E N D I X 2

N A T U R A L R E S O U R C E S M A N A G E M E N T ( F I N A N C I A L A S S I S T A N C E ) ACT 1 9 9 2

T he N atural Resources M anagem ent (Financial Assistance) A c t 1992 facilitates the developm ent a n d im p le m e n tatio n o f an integrated approach to natural resources m an ag em en t in A ustralia. U n d er Section 26(1) o f the Act, a report m ust be prepared each year on the op eratio n o f the Act an d agreem ents m ade

under it.

Section 5 o f the Act provides for the C om m onw ealth and States to agree on financial assistance for natu ral resources m anagem ent projects. Fram ework agreem ents w ith the States and T erritories have been in effect since 1 July 1993.

T he N ational L andcare Program was established in 1992 to efficiently, sustainably and equitably m anage A ustralia’s natural resources under the Act. After the N atural H eritage T rust was established in 1997, m ajor natural resources m anagem ent program s, in clu d in g the N ational Landcare Program ,

were m anaged th ro u g h the T rust O n e Stop Shop. A t the sam e tim e, States and Territories n eg o tiated p artn ersh ip agreem ents to cover tru st program s.

Payments (in dollars) to the States a n d Territories u n d er the Act in 1998-99 were:

A ustralian C ap ital T erritory

New South Wales

N orthern T erritory

Q ueensland

South Australia

Tasmania

Victoria

W estern A ustralia

Total

193,627

14,379,855

2 ,4 2 3 ,5 8 7

6 ,5 1 9 ,5 0 7

5,055,745

9 8 0 ,2 1 7

13,426,519

9,89 8 ,9 4 3

52,88 0 ,0 0 0

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 2

In addition, under Section 6 o f the A ct, the N atural Resources M anagem ent F und funded 41 o th er agreem ents, to tallin g $3,566 m illion. Significant projects included su p p o rt for Landcare A ustralia Lim ited, the N ational Landcare F acilitator, the N atio n al D ry la n d Salinity Program C o m m u n ic a tio n s P rogram an d E n h a n c e d In stitu tio n a l S u p p o rt for D ry la n d Salinity M anagem ent.

T he N atural Resources M anagem ent F und co n trib u ted $670,899 to m eet expenses incurred by the A ustralian Landcare C ouncil and in adm inistering the Act, including project assessm ent, com m unications projects, project m onitoring and evaluation and sponsorship.

100 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

10 1

AQIS Corporate

AQIS Airports Program

AQIS Biologicals Unit

AQIS Compliance, Legal and Evaluation

Branch

Charter im plem ented January 1999 January 1999 March 1999 March 1999

Com plaints 46 17 5 0

Average tim e to resolve com plaints

20.3 days 20 days Not available Not applicable

Satisfactory follow up (p er cent)

28 100 100 Not applicable

Common com plaints

AQIS charges, specific instances, certification/ documentation delays, information availability

Use of on-the- spot fines, inconsistent advice to client (one only)

Poor communication with clients, high fees

None

AQIS Export Dairy Program

January 1999

8

Under 1 month

100

Veterinary officers unavailable to sign export documentation,

provision of EXDOC, stockfood regulation, communication protocols

S U M M A R Y O F K E Y S E R V I C E C H A R T E R S

AQIS Compliance, Legal and Evaluation

Branch

AQIS Export Dairy Program

Common com plim ents Helpful staff, AQIS Professionalism of Helpful staff performance, staff

information availability, specific incidences/ staff provided positive experiences

Good quality information provided, sound information on legislation

Prompt responses and exemption processing, good

general information, help in developing and implementing EXDOC

Custom ers aw are of 70

ch a rter (p er cent)

Not known Not known

(too soon after implementation)

Not known (too soon after implementation)

100

Staff aw are of 100 90 100 100

ch a rter (per cent)

100

AQIS Export Meat Program

C harter im plem ented January 1999

Com plaints 4

Average tim e to 14 days

resolve com plaints

Satisfactory follow up 100 (p er cent)

Common com plaints Not receiving information (AQIS notices), unhelpful staff, lack of understanding,

information to clients trying to enter the export market should be free, lack of consultation with

industry

AQIS Export Fish Program

AQIS Grain Export Program

April 1999 January 1999

0 2

Not available 1 day

Not available 100

Lack of information on writing a certification assurance

manual, cost of EXDOC system

AQIS H orticulture Program

AQIS Im port C learance Program

January 1999 January 1999

1 23

1 hour 36 days

Not available 100

Costs of service delivery, extent of consultation with

Poor front counter and phone service, inspection fee issues

industry, consistency of service delivery

AQIS Export Meat Program

AQIS Export Fish Program

AQIS Grain Export Program

AQIS H orticulture Program

Common com plim ents Helpful, approachable and friendly staff, information provided to clients in a

professional manner, questions answered quickly

Prompt response by regional and head office staff to queries, professionalism and

expertise of fish inspection staff, helpful program staff

Good delivery of export service and good information on how to export

products

Professional s<

C ustom ers aw are of ch a rter (p er cent) 100 100 40 10

Staff aw are of ch arter (per cent) 100 100 100 100

AQIS Im port C learance Program

Good information service and help in resolving trade issues, good

responses to emails sent to Import Clearance

Not available

Not available

1 0 5

I

AQIS AQIS AQIS

In tern atio n al Live Animal Seaport

Mail Program Im ports and Program

Exports

C harter im plem ented January 1999 March 1999 January 1999

Com plaints (1) 0 4 1

Average tim e to resolve com plaints Not available 45 minutes 15 days

Satisfactory follow up (p er cent) Not available 100 100

Common com plaints Not available Export conditions not

on the Internet, webpage information needs to be clearer and more detailed,

poor facilities for dogs at the quarantine stations, high charges

Inconsistent advice to clients

Common com plim ents Not available Not available Staff

professionalism

National R egistration Authority

June 1998

12

6 days

Not available

Decisions, poor staff attitude/ service, lack of timeliness

Staff service, faster time frames, better processes

Australian Fisheries M anagem ent A uthority

July 1998

35

2.5 days

98

Phone calls not returned, letters not answered promptly

Helpful staff, mistakes resolved quickly, easy access to information through website

> TJ ~o m

z σ

x

U J

AQIS AQIS

In tern atio n al Live Animal

Mail Program Im ports and

Exports

AQIS S eaport Program

National R egistration Authority

A ustralian Fisheries M anagem ent A uthority

C ustom ers aw are of Not available 85 Not available 95 Not available

ch a rter (p er cent)

S taff aw are of ch a rter 100 95 90 100 100

(p er cent)

Note: AQIS's complaint/feedback system used post-paid reply forms and electronic feedback; NRA used an ISO 9002 accredited feedback register; and AFMA drew on feedback provided to staff and a formal written register of complaints.

A P P E N D I X 4

F R E E D O M OF I N F O R M A T I O N - S E C T I O N 8 S T A T E M E N T

This statem ent, co rrec t to 30 June 1999, meets the requirem ents o f Section 8 o f the Freedom o f Inform ation A ct 1982. T h is statem ent does not include agencies in the AFFA p ortfolio th a t publish their own annual reports. Each agency is a forum fo r con su ltin g w ith an d p articipating in governm ent and

D epartm ental policy fo rm u latio n an d decision m aking.

U nder the A ct, D e p artm en ts an d sta tu to ry authorities m u st make inform ation available ab o u t th e ir functions, organisation and operations. T he inform ation for AFFA is co n tain e d in the body o f this annual report. Separate inform ation about the powers o f the M in ister and the divisions is in this appendix.

U nder the Act, AFFA m u st provide in fo rm atio n on arrangem ents for individuals or bo d ies to p a rtic ip a te , e ith e r th ro u g h co n su ltativ e procedures, th e m ak in g o f representations or otherw ise, in form ulating D epartm ental policy or ad m in isterin g its program s. T h is statem ent satisfies these requirem ents.

Applications for in fo rm atio n u n d er the Freedom o f Inform ation A ct 1982 should be directed to:

AFFA’s Freedom o f In fo rm atio n C o -o rd in ato r, telephone: (02) 6272 6381,

fax: (02) 6271 6680

T he Freedom o f In fo rm atio n C o -o rd in ato r will help w ith questions related to applications u n d er the Freedom o f Inform ation A ct 1982, and help identify the particular d o cu m en ts sought, provide advice on the obligations o f applicants and AFFA, and answ er any questions related to the handling ot requests.

C a t e g o r i e s o f D o c u m e n t s H e l d

D ocum ents an d videos available to the public for purchase from the AFFA Shopfront In fo rm a tio n Resource C entre:

• A nnual R ep o rt 1998-99

• A ustralian T ran sp o rt Task

• C hains o f Success - Case Studies in Supply C hain M anagem ent

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 0 7

A P P E N D I X 4

• C ode o f Practice for Labelling A gricultural C hem ical Products

• C ode o f Practice for Labelling V eterinary C hem ical Products

• explanatory M em oranda to A ccom pany C om m onw ealth Acts, Regulations and Orders

• Farm ing a S u n b u rn t C o u n try - M anaging A round A ustralia’s H igh Risk C lim ate (video)

• regulations and orders

• reports o f m eat and livestock exports

• research and technical reports, data and m aps on m ineral resources, geology and geophysics

• requirem ents for clearing agricultural and veterinary chem ical products

• Rewards from C hange

• Site P lanning in A ustralia

• ABARE research reports and ABARE statistical reports on econom ic issues affecting Australia’s agricultural, m inerals, energy, forestry and fisheries industries

• BRS publications on Australia’s agricultural, forestry, fishing, aquaculture and food industries.

O n s a l e t h r o u g h t h e A F F A S h o p f r o n t :

• T hree Keys to Success in Agribusiness (video series)

— E xport M arketing Skill

— M anaging Q uality

— B enchm arking and Best Practice

• C hains o f Success — Case Studies in Supply C hain M anagem ent

• C om petitive Perform ance — Case Studies on the A ustralian Agribusiness Experience.

1 0 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 4

D o c u m e n t s a n d a u d i o v i s u a l m a t e r i a l a v a i l a b l e

t o t h e p u b l i c f o r p u r c h a s e f r o m AF F A:

• ABARE conference papers

• ABARE research reports on econom ic issues on agricultural, m ining, energy, fisheries and forestry industries

• A ustralian C o m m o d ities (ABARE’s quarterly journal)

• A G uide for the P rep aratio n o f the M eat Safety Q u ality Assurance System

• A ustralian Ballast W ater M anagem ent Strategy

• A ustralian C o m m o d ity Statistics

• A ustralian C ro p R eport

• A ustralian Farm Surveys R ep o rt

• A ustralian Fisheries Statistics

• A ustralian Fisheries Surveys R eport

• ballast w ater research series reports

• BRS resource assessm ents

• BRS scientific re p o rts on issues o n agricultural, food, fisheries and forestry industries

• BRS proceedings o f scientific conferences and w orkshops

• publications p ro d u ced by the form er A ustralian W ater Resources C ouncil and its stan d in g com m ittee

• C ode o f H ygienic Practice for H eat-treated Refrigerated Foods Packaged for E xtended S helf Life

• C o n stru ctio n a n d E q u ip m en t G uidelines for E xport M eat

• export registered lists - fish, dairy, eggs, fruit and vegetables, and grains

• export registered m eat lists (seasonal list)

• G uidelines for the Approval o f C hem ical C om pounds Used at E stablishm ents R egistered to Prepare G oods Prescribed for the Purpose o f the Export Control A ct 1982

• G uidelines for G o o d M an u factu rin g Practice in the Smallgoods Industry

• In tern atio n al A gribusiness Trends and T heir Im plications for Australia

• In tern atio n al C o m m o d ity M arkets: an A ustralian Perspective

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 0 9

A P P E N D I X 4

• list o f chem ical com pounds approved for use at establishm ents registered to prepare goods prescribed for the purpose o f the Export Control A ct 1982

m eat hygiene assessm ent

m anuals on the export o f food com m odities (available from A Q IS direct)

N ational Forest Policy Statem ent

N atural Resource M anagem ent: an E conom ic Perspective — O u tlo o k C onference Proceedings

O perational G uidelines for the W elfare o f Anim als at A battoirs and Slaughterhouses

P lant Varieties Journal (subscriptions)

Prim ary Resource

Proceedings o f the N ational A gricultural and Resources O u tlo o k C onference (book and video)

P roceedings o f W o rkshops a n d C onferences o f th e P la n t V arieties R ights Office

posters

QA: G etting it R ight the First T im e - Q uality Assurance Program s in the Food Industry (video)

Q uarantine M atters! Q u arantine Awareness Schools Kit (C D R O M )

Rural and Rem ote M etropolitan Z ones C lassification

R ecom m ended M arketing N am es for Fish (second edition)

R ural and R em ote Area Power Supplies for Australia

Superm arket to Asia publications and audio visual m aterials

Standards for Food Q uality S hipping

Towards a S outh East Q ueensland Regional Forest A greem ent - a D irections R eport, 1999

Training M anual for G uidelines for G oods M anufacturing Practice in the Smallgoods Ind u stry

Transitional W oodchip Export Licences 1997-99

BRS publications on Australia’s agricultural, forestry, fishing, aquaculture and food industries

Zoonosis: M ore than a Dose o f Flu — Investigates Z oonotic Diseases (video).

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D o c u m e n t s a n d a u d i o v i s u a l m a t e r i a l a v a i l a b l e t o t h e

p u b l i c f r o m A F F A f o r f r e e ( o r s u b j e c t t o t h e p a y m e n t

o n l y o f p o s t a g e , p a c k a g i n g o r a d m i n i s t r a t i v e c h a r g e s ) :

• ABARE c u rre n t issues

• ABARE p u b lic a tio n catalogue

• ABARE’s S trategic Plan 1995-98

• ABARE U p d ate

• A ction P lan for A ustralian A griculture (inform ation package)

• Agribusiness P rogram s G uidelines (brochure)

• Agribusiness P rogram s (brochure)

• Agribusiness P rogram s (video)

• Agri C hain M an ag em en t (brochure)

• A griculture — A dvancing A ustralia (inform ation k it contains AFFA inform ation such as fact sheets, brochures and non-A FFA inform ation such as A TO fact sheet an d C S IR O pam phlet)

• annual reports o f Fisheries Jo in t A uthorities

• annual reports o f the Raw C o tto n M arketing A dvisory C om m ittee

• APEC M anual o f Best Practice Principles for In d ep en d en t Power Producers

• A pplying for P lan t B reeder’s R ights - a G uide for A pplicants and Q ualified Persons

• AQIS Service C h arter

• AQIS Program Service C h arters (various)

• A study on the G lobal O u tlo o k for P lantations 1999 - Executive Sum m ary (h ttp :/www.affa.gov.au)

• T he A ustralian Q u a ran tin e R ep o rt - Q uarantine Activities and A chievem ents Aug 97-D ec 98

• Are You A lert to Q uarantine? - a guide to exotic pests and diseases

• Q u a ran tin e Awareness (brochures an d various publications)

• AQIS at a G lance

• AQIS B ulletin (11 issues a year)

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

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• A Q IS C orporate Plan

• A Q IS guidelines for applicants, application form and brochure

• A Q IS in Review - a R eport to C lients

• Assessing ABARE’s Perform ance

• A Tim e to C hoose (video and brochure)

• A uslndustry Agribusiness Program G uidelines and A pplication (from O ctober 1995)

• A uslndustry - A gribusiness Program Strategic Plan 1995— 96

• A uslndustry - Agribusiness Program B rochure

• Rural Vision (case study magazine o f the Ausindustry-Agribusiness Program

• Australia - C h in a A gricultural C o-operation (basic texts)

• A ustralia Fish Facts

• A ustralian Resource Sector - a Pocket Statistical Sum m ary

• A ustralia in B rief

• A ustralian Plague Locust C om m ission A nnual R eport

• A Vision for C hange - N ational Plan for W om en in A griculture and Resource M anagem ent

• ballast w ater reports and brochures

• BRS C lim ate C hange N ew sletter

• BRS Forest Profdes series o f booklets: tropical rainforests, lancew ood com m unities, and river red gum , softw ood plantations

• BRS leaflets on feral animals

• BRS N ational Forest Inventory N ew sletter

• BRS w ork program an d publications catalogue

• business advice for rural areas (guidelines and brochure)

• C A D D E T inform ation packs, new sletters, reports, and energy efficiency dem onstration project reports

• Cargo C ontainers — Q u arantine Aspects and Procedures

• Publications produced by the form er A ustralian W ater Resources C ouncil and its Secretariat

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

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• certification assurance arrangem ents for various com m odities

• C ogeneration H a n d b o o k and ready reckoner

• C o m m o n w ealth Subm ission to the N ational E lectricity C ode A dm inistrator: Review o f T ransm ission and D istrib u tio n Pricing A rrangem ents

• C om petitive P erform ance (brochure)

• C orporate Plan 1998-99

• D elicatessen P rogram - D eveloping Successful N iche Agribusiness Exports

• D raft N a tio n al S tandard for O rg an ic and B io-dynam ic Produce

• E xceptional C ircum stances (R ural A djustm ent Schem e) Policy G uidelines

• Exotic A nim al Diseases B ulletins (six issues a year, also published in the Australian Veterinary Association News)

• Export facilitatio n general in fo rm atio n

• Farm M an ag em en t D eposits Schem e (brochure)

• Fit and P roper Person (brochure)

• Food News (quarterly publications)

• Food Q u ality P rogram — F ood Q u a lity Program M anagem ent Systems for the F uture

• Fram ew ork o f R egional (S ub-national) Fevel C riteria and Indicators o f Sustainable Forest M anagem ent in A ustralia, 1998

• G uidelines for the Q u a ra n tin e A pproved Premises System

• H ow to A pply for a Food Processing A ccreditation (FPA) System o f Inspection, the Seif H elp H a n d b o o k

• Im p o rtan t Facts A b o u t Im p o rtin g Food into A ustralia

• inform ation on im p o rtin g p lan t, anim als and food products

• inform ation b ulletins on im p o rted food inspection arrangem ents

• inform ation leaflets on agricultural and veterinary chemicals

• inform ation on ABARE releases

• inform ation pam phlets and brochures on Landcare and land degradation

• inform ation pam phlets on the Forest Industry Structural Adjustm ent Package

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

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• in fo rm a tio n p a m p h le ts on th e q u a r a n tin e p ro g ra m a n d e x p o rt

control activities

• in fo rm a tio n p a p e r on e x p o rt o f w o o d c h ip s an d u n p ro c e sse d w ood

fro m A u stralia

• inform ation paper on N ational O verview and C om m onw ealth C om ponent o f the D ecade o f Landcare Plan

• Inform ation Technology Strategic Plan

• Jo in t Statem ent on A ustralian A grifood Industries

• Landcare inform ation

• Levies M anagem ent U n it A nnual R eport o f Activities

• Locust Bulletin

• M anagem ent o f A gricultural and V eterinary Chemicals — a N ational Strategy

• M anaging for Risk and P roductivity Inform ation Kit

• m anual for control o f Listeria in registered establishm ents processing fish for export

• m anual for using the weed risk assessm ent system to assess new plants

• m edia releases

• M in u te s o f th e F ifth Session o f th e C h in a -A u stra lia J o in t

A g ric u ltu ra l C om m ission

• N ational Landcare Program G uidelines (for applicants)

• N ational Residue Survey’s A nnual R eport, report o f results and leaflet on chem ical residues in food

• N atural Q uality — the Produce o f A ustralia

• N orth East V ictoria Regional Forest Agreem ent, 1999 - a D irections Report

• N o rth East V ictoria C om prehensive Regional Assessment, 1999

• N o rth ern A ustralia Q u arantine Strategy (general inform ation)

• P lantations for Australia: the 2020 V ision (http://affa.gov.au)

• P lantations’ Potential Studies in A ustralia - an Assessment o f C u rren t Status, 1998

• Policies for G row th (D PIE M ay 1998 Statem ent)

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• P opulation M ovem ents in N o n -M e tro p o lita n A ustralia

• Portfolio E valu atio n Plan 1997-99

• portfolio p ro g ram perform ance statem ents

• Proceedings - N a tio n al F orum on W om en in A griculture and Resource M anagem ent

• Program s for R ural A ustralians (brochure)

• P rotecting A ustralia — T h e Q u a ra n tin e Story (schools kit)

• projects fu n d e d u n d e r S outh East Forests A greem ent

• publications on activities o f research corporations, councils and com m ittees u n d e r the d irec tio n o f the C rops D ivision

• publications list, re c ru itm e n t in fo rm atio n , corporate plans and annual operation plans, h u m an resource m anagem ent plans

• publications p ro d u c ed by th e M inisterial C ouncil on Forestry, Fisheries and A quaculture an d its S tan d in g C o m m ittee on Forestry and Standing C om m ittee on Fisheries an d A quaculture

• publications on m erino ram exports

• quality assurance inform ation - m anuals, guidelines, handbooks and leaflets

• quarantine awareness general in fo rm atio n

• Record o f the F o u rth M eeting o f the A ustralia-Indonesia W orking G roup on A griculture an d Food C o -o p eratio n

• Recreational F ishing in A ustralia: a N ational Policy

• recreational fishing policy

• reference guidelines for the developm ent o f technical subm issions to the N ational R egistration A u th o rity

• R eport o f the N a tio n al Task Force on Im ported Fish and Fish Products

• reports on n atio n al radioactive waste site selection study

• resolutions o f th e M inisterial C ouncil on Forestry, Fisheries and A quaculture, a n d its stan d in g com m ittee

• Review o f the S uperm arket to Asia Strategy - R eport

• Rural Access Program G uidelines (for applicants and brochure)

• Rural A d ju stm en t Schem e A dvisory C ouncil A nnual R eport

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• R ural C om m unities Program G uidelines and application form s

• R ural Vision D ecem ber 1998 - a m agazine for prim ary producers and people in rural com m unities

• Santiago D eclaration on C riteria an d Indicators for the C onservation an d S ustainable M an a g em en t o f T em p erate an d B oreal Forests (M o n treal Process)

• Snowy M ountains C ouncil A nnual R eport

• speeches

• South East Q ueensland C om prehensive Regional Assessm ent, 1999

• Superm arket to Asia publications and o th er m aterials

• N ational Landcare A dvisory C o m m ittee A nnual R eport

• T h e AQIS R edline pam phlet (H o tlin e facility)

• T h e D elicatessen Program (brochure)

• T he Im plem entation o f the N ational Strategy on A quaculture in Australia

• T h ird Party Program for the Pre-export Preparation o f Livestock

• various inform ation brochures o n portfolio activities

• various m ission reports under th e auspices o f the A gricultural C o-operation A greem ent w ith Russia and C hina

• videos on exotic anim al diseases

• W h at You N eed to K now to E xport Processed Foods

• W ood and Paper Industries Strategy (WAPIS).

B r i e f s , S u b m i s s i o n s a n d R e p o r t s

Copies o f briefing papers, reports and subm issions prepared by AFFA officers are held w ithin relevant Groups. T hese include papers prepared for m inisters, com m ittees, corporations, conferences and intra-departm ental use.

F i l e s

AFFA m aintains general and specific files containing adm inistrative and w orking docum ents such as papers, correspondence, briefings, subm issions and reports produced in the perform ance o f D epartm ental functions. In

AF F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 4

addition, certain hies contain specific records including m aps, autom atic data processing, p arlia m e n ta ry questions, and personnel and finance arrangem ents for the G roups.

Groups m anage th e ir ow n files th ro u g h a devolved registry system.

F i n a n c e D o c u m e n t a t i o n

T he relevant areas o f AFFA ho ld docum ents on adm inistration, staffing and financial estim ates. T h ese include reports, plans and papers on m anagem ent and functional p lan n in g , review and evaluation.

M a i l i n g L i s t s

G roups ho ld m ailin g lists to dissem inate inform ation to the public.

M a n u a l s

AFFA produces m anuals on:

• outlook reports fo r the rural sectors

• crops research a n d technical studies o f h o rticu ltu ral industries

• export control standards an d procedures for food com m odities

• finance and ac co u n tin g procedures

• G reenhouse C hallenge w orkbooks

• legislation, m inisterial and p arliam en tary procedures

• personnel and recru itm en t procedures

• plans covering em ergency procedures in the event o f an exotic disease outbreak in the livestock and pastoral industries (currently, Ausvetplan contains 43 separate m anuals)

• pro ced u res for th e in sp e c tio n , sam p lin g and analysis o f certain im p o rte d foods

• quarantine procedural m anuals

• quarantine im p o rt con d itio n s m anuals

• scientific an d technical innovations

• technical studies o f the livestock industries.

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D a t a b a s e s

AFFA m aintains a range o f databases containing inform ation associated w ith the conduct o f its functions.

A g r e e m e n t s

In perform ing its functions, AFFA enters into a range o f agreem ents w ith State/ Territory, national and international bodies. T he m ost im p o rtan t concern:

• co-operation in research and developm ent between A ustralia and Italy, Japan, the U nited K ingdom and the U n ited States

• the acceptance o f overseas governm ent food inspection certifications and portfolio m atters w ith the states and territories

• an agricultural co-operation agreem ent w ith C hina

• protection o f new p lan t varieties in accordance w ith the U nion for the P rotection o f N ew Varieties o f Plants C onvention

• com m ercial agreem ents and contracts on the supply o f goods and services to AFFA and the paym ent o f program funds available to AFFA.

R e g i s t e r s

T he P lant Breeders’ R ights O ffice m aintains a register o f p lan t varieties protected by plant breeders’ rights, an d A Q IS m aintains inform ation on the registration o f export establishm ents.

A r r a n g e m e n t s f o r O u t s i d e P a r t i c i p a t i o n

Form al and ad hoc arrangem ents exist for individuals and bodies to participate in AFFA’s policy form ulation and adm inistration. These arrangem ents include representation on com m ittees, w orking parties and advisory bodies; attendance at in d u stry m eetings; and subm issions from industry to AFFA.

In addition, individuals and bodies can participate by w riting, including suggesting, com plaining and com m enting to the Secretary o f AFFA or the M inister for A griculture, Fisheries an d Forestry on general portfolio issues, livestock, crops, forests issues, q uarantine and inspection, agricultural

economics or rural science functions, or the M inister for Forestry and C onservation for forests and natural resource issues.

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General and m edia inquiries ab o u t D epartm ental activities and responsibilities sh o u ld be directed to:

AFFA In fo rm atio n O fficer

s (02) 6272 5120

P o w e r s o f t h e M i n i s t e r a n d t h e D i v i s i o n s

The functions o f the divisions are outlined in Performance Reports. The M inister and AFFA officers w ith delegated powers exercise the following powers.

A g r i c u l t u r a l I n d u s t r i e s D i v i s i o n

T he M inister can:

• appoint, an d te rm in a te the a p p o in tm e n t o f the chairperson and other m em bers o f sta tu to ry m ark etin g authorities, research and developm ent corporations a n d councils, in d u stry councils and selection com m ittees

• approve the term s and c o n d itio n s o f ap p o in tm en t o f certain senior officers o f statu to ry bodies

• approve co rporate and annual operational plans o f statu to ry bodies, and approve annual reports for tab lin g in Parliam ent

• review decisions an d issue directio n s to statutory bodies in certain circum stances

• approve specified contracts, arrangem ents, guidelines, borrowings and financial tran sactio n s o f sta tu to ry bodies

• refer m atters to relevant in d u stry councils for inq u iry and report

• make declarations or approve arrangem ents on certain levies

• app o in t auditors for sta tu to ry bodies

• enter into arrangem ents w ith a State o r T erritory for transfer o f funds to control and eradicate exotic diseases affecting livestock in Australia

• issue directions to statu to ry bodies in certain circum stances

• approve borrow ings for sta tu to ry authorities, determ ine the underw riting o f certain A ustralian W h e at B oard borrowings and issue guidelines for certain financial transactions

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• take account o f advice from affected in d u stry sectors, recom m end regulations on im posing certain levies and determ ine the gross value o f p ro d u c tio n to establish the lim it o f C om m onw ealth m atching paym ents for research and developm ent, a n d establish the lim its o f levies and charges payable

• appoint people as authorised for various purposes specified in legislation

• m ake declarations or approve arrangem ents on certain levies.

Specific officers in the division can approve the im port o f certain types o f w ool packs. A rrangem ents on certain levies an d taxes, including increases in the operative and m axim um rates, m ay only be m ade at the request of, or after consultation w ith, specified in d u stry bodies. Regular consultation takes place w ith a wide range o f industry bodies.

F o o d a n d A g r i b u s i n e s s I n d u s t r i e s D i v i s i o n

T he M inister can:

• appoint and term inate the ap p o in tm en t o f m em bers o f the Board o f the N ational R egistration A u th o rity for A gricultural and V eterinary C hem icals (NRA)

• approve the term s and conditions, including rem uneration, o f certain senior officers o f the NRA, u n d er certain circum stances

• approve corporate an d /o r operational plans o f the NRA

• recom m end regulations on im posing certain levies

• issue perm its for certain chem icals u n d er the Customs (Prohibited Imports) Regulations

• recom m end to the Prim e M inister appointm ents to the S uperm arket to Asia C ouncil

• recom m end to the Prim e M inister how m uch the C om m onw ealth contributes to the S uperm arket to Asia C ouncil’s Executive D ire cto r’s rem uneration.

N a t u r a l R e s o u r c e M a n a g e m e n t P o l i c y D i v i s i o n

T he M inister can: •

• decide on the expenditure o f funds u n d er the N ational Landcare Program and its predecessors

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A P P E N D I X 4

• approve p rojects for fu n d in g from the N a tu ral H eritage Trust

• appoint certain p o sitio n s in the L and an d W ater Resources R & D C o rp o ra tio n a n d th e N atio n al L andcare A dvisory C o m m ittee, and w ith other M in isters, a p p o in t the P resid en t o f the M u rray -D arlin g Basin C om m ission

• approve strategic a n d annual o p eratio n al plans for the Land and W ater Resources Research an d D ev elo p m e n t C o rp o ra tio n a n d approve its annual report for tab lin g in P arliam ent.

N a t i o n a l O f f i c e s

T he A ustralian P lague L ocust C o m m issio n becam e o p eratio n al in 1976 and officials have the sam e powers as S tate D e p a rtm e n t o f A griculture officials in New South W ales, S o u th A ustralia, V icto ria and Q ueen slan d , and under the relevant state legislation, can carry o u t surveys an d co n tro l plague locusts,

where locust p o p u latio n s pose an in te rsta te hazard.

A u s t r a l i a n B u r e a u o f A g r i c u l t u r a l

a n d R e s o u r c e E c o n o m i c s ( A B A R E )

ABARE does n o t exercise delegated pow ers u n d er any p o rtfo lio legislation.

A u s t r a l i a n Q u a r a n t i n e a n d I n s p e c t i o n S e r v i c e ( A Q I S )

U nder q u aran tin e an d ex p o rt co n tro l legislation, A Q IS officers can:

• inspect, detain , observe, assess, treat, release or destroy goods, anim als and plants to p rev en t th e in tro d u c tio n or spread o f diseases or pests w ithin A ustralia affecting people, anim als o r plants

• issue perm its en abling the im p o rt o f goods, anim als o r plants into A ustralia, an d investigate alleged breaches o f the legislation

• grant registration to establishm ents p ro d u c in g agricultural and food products for export, issue export p erm its and health certificates for such goods, an d inspect goods to d e te rm in e com pliance w ith perm its

• im pose charges for services associated w ith the above functions.

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B u r e a u o f R u r a l S c i e n c e s ( B R S )

BRS, in association w ith the A gricultural Industries Division, adm inisters the Biological Control A ct 1984. T he M in ister has delegated powers to the Executive Director, BRS, to consider subm issions from the public regarding proposed target and agent organism s.

M a n a g e m e n t S e c r e t a r i a t

T he M inister can rem it penalties applied for late paym ent o f statu to ry levies and charges.

E x e c u t i v e S e c r e t a r i a t

T h e Executive Secretariat does no t exercise delegated powers under any portfolio legislation.

P o r t f o l i o P o l i c y a n d I n t e r n a t i o n a l D i v i s i o n

U nder the Primary Industries and Energy Research and Development A ct 1989, the M inister can:

• appoint or term inate the ap p o in tm en t o f the C hairperson, D ep u ty C hairperson and o th er m em bers o f the R ural Industries R & D C orporation (R IR D C ) other than the Executive D irector, and the R IR D C Selection C om m ittee

• approve R IR D C ’s research and developm ent plans and annual operating plans, or approve a request to vary the plans

• request R IR D C to revise its research and developm ent plans

• approve R IR D C ’s Executive D irecto r’s term s and conditions o f appointm ent

• issue directions to R IR D C in certain circum stances

• regulate the gross value o f prod u ctio n o f levied rural industries to establish the lim it o f the C om m onw ealth’s m atching paym ent.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 4

R u r a l P o l i c y a n d C o m m u n i c a t i o n s D i v i s i o n

T he M inister can:

• appoint m em bers to the R ural A d ju stm en t Schem e A dvisory C ouncil

• approve grants u n d e r the various program s

• make decisions on w ar service leases

• determ ine levels o f financial assistance to the states a n d the N orthern Territory u n d er the Rural A d ju stm en t A c t 1992.

F i s h e r i e s a n d F o r e s t r y I n d u s t r i e s D i v i s i o n

T he M inister can:

• appoint the C h a irm a n a n d B oard m em bers o f the A ustralian Fisheries M anagem ent A u th o rity (AFM A), th e Fisheries R & D C o rp o ra tio n (FR D C ), the F ishing In d u stry Policy C o u n cil (FIPC ) an d the S tatutory Fishing R ights A llocation Review Panel

• approve the co rp o rate an d an n u al o p eratin g plans o f th e A FM A and FR D C or request a variatio n to such plans; accept a p lan o f m anagem ent for a fishery su b m itte d by A FM A , o r refer the plan back to AFMA; issue directions to A FM A a n d F R D C in ce rtain circum stances; refer m atters to

the FIPC for in q u iry ; an d re p o rt a n d determ ine the term s and conditions o f expenditure from the Fisheries R esources Research F u n d (FRRF)

• approve A FM A e n terin g in to agreem ents to grant licences to perm it foreign fishing boats to fish in areas o f the A ustralian fishing zone; authorise the p ro secu tio n o f operators o f foreign treaty boats; and determ ine the an n u al gross value o f p ro d u c tio n o f the A ustralian fishing

industry for fu n d in g the F R D C a n d the FRRF

• decide on the exp en d itu re o f funds p u rsu a n t to the N ational Forest Policy Statem ent, the T asm anian Forest In d u stry Package, the South East Forests A greem ent, and th e Forest In d u stry S tructural A djustm ent Package

• issue and w ith d raw export approvals o f w oodchips and unprocessed w ood

• make ap p o in tm en ts to certain p ositions in the Forest an d W ood Products R & D C o rp o ratio n .

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A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

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L E G I S L A T I O N / R E G U L A T I O N S

I M P A C T I N G ON B U S I N E S S

L egislation/regulations affecting business for w hich a R egulation Im pact Statem ent (RIS) was p rep ared are set o u t below.

P r i m a r y p i e c e s o f l e g i s l a t i o n

( i n c l u d i n g a m e n d m e n t s ) t a b l e d

i n t h e P a r l i a m e n t a c c o m p a n i e d

b y a R e g u l a t i o n I m p a c t S t a t e m e n t

Agriculture, Fisheries and Forestry Legislation Amendment Bill (No. 2) 1999

T his Bill am ended a n u m b e r o f p o rtfo lio Acts. A R egulation Im pact Statem ent was prepared for am en d m e n ts to the Australian W ine and Brandy Corporation A ct 1980. T hese am en d m e n ts rem oved the d istin ctio n between keeping records for single w ines an d b len d ed wines, so w hen no winery

records exist, the A ustralian W in e an d B randy C o rp o ra tio n can prosecute w ithout needing to show w h eth er the w ine is blended or not. T he am endm ents will also allow label in teg rity inspectors to view all relevant wine production records ra th e r th a n those kept in the w inery build in g to establish

a full label in teg rity au d it trail from vineyard to bottle.

Regional Forest Agreements Bill 1998 This Bill provided legislative su p p o rt to the outcom es o f Regional Forest Agreements (RFAs) entered into by the C om m onw ealth, States and Territories.

Rural Adjustment Amendment Bill 1998 T his Bill gave effect to the G o v e rn m e n t’s decision, an n o u n ced in the Agriculture - A dvancing Australia package, to introduce the farm business

im provem ent program (Farm Bis).

Wool International Amendment Bill 1998 T his Bill provided for the freeze on th e sales o f the W ool International stockpile u ntil 30 Ju n e 1999, an d allow ed W ool In tern atio n al to undertake activities and co m m it funds to privatise the organisation.

A F F A A N N U A L R E P O R T

1 9 9 8 - 9 9

A P P E N D I X 5

S u b o r d i n a t e l e g i s l a t i o n ( i n c l u d i n g

a m e n d m e n t s ) a c c o m p a n i e d b y a

R e g u l a t i o n I m p a c t S t a t e m e n t

Australian Meat and Livestock Industry Order No LC-1/98 T his O rder im plem ented the in d u stry ’s undertakings to the A ustralian M aritim e Safety A u th o rity Livestock A dvisory C om m ittee to reduce anim al m orbidity and m o rtality in shipm ents to N o rth African and M iddle East m arkets. It also pre-em pts potential problem s arising from o ther ‘long h aul’ shipm ents to n o rth ern hem isphere m arkets in their sum m er m onths.

Export Control Orders No 2 o f 1998 T h e O rders am ended the descriptions for fees payable on grains and other p lan t products.

Export Control Orders No 1 o f 1999 These O rders increased charges on services provided under the A Q IS live anim al export program .

Export Control (Grain, Plants and Plant Products) Amendment Orders No 1 o f 1999 These O rders clarified some definitions and extended the list o f prescribed

grains to cover all grains o f econom ic significance.

Export Control (Processed Food) Amendment Orders No 1 o f 1999 These O rders facilitated the use o f contestable third party inspection arrangem ents in the export dairy and fish program s.

Export Inspection (Quantity Charge) Regulations (Amendment) 1998

T h e Regulations revised rates o f charge to inspect bulk grain.

Export Inspection (Quantity Charge) Amendment Regulations 1999 (No 1)

T he Regulations provided for an additional fee to be charged on containerised grain prepared for export under an approved certification assurance.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 5

Export Inspection and Meat (Establishment Registration Charges) Amendment Regulations 1999 (No. 1)

The R egulations in tro d u c e d a new re g istratio n fee for gam e m eat establishm ents.

Prim ary Industries Levies a n d Charges R egulations 1 9 9 9

The Regulations m ade a n u m b er o f changes to levies. A RIS was prepared for the increased levy on m aize.

Quarantine Determinations No 1 o f 1999

This D eterm in atio n provided for new fees so the im p o rt clearance program could recover costs for services p ro v id ed to the air cargo im p o rt industry for risk profiling cargo a n d developing, im p le m e n tin g and m ain tain in g industry co-regulation arrangem ents.

Quarantine Determinations No 2 o f 1999 These D eterm in atio n s increased S eaports’ Program fees across the board and introduced a new fee fo r ballast w ater. T h e fees should recover the cost o f quarantine services provided to th e sh ip p in g industry. T h e new ballast w ater

fee reflects the costs associated w ith im p le m e n tin g operational aspects o f Australia’s Ballast W ater M an ag em en t Strategy.

Quarantine Amendment Proclamation 1999 This P roclam ation m ade a n u m b e r o f am endm ents. A R egulation Im pact Statem ent was p repared for am en d m e n ts to rem ove one seed, Pinus.sp., from the list o f seeds im p o rte d w ith o u t n eed in g a perm it.

Q u a s i - r e g u l a t i o n s u b j e c t t o t h e

R e g u l a t i o n I m p a c t S t a t e m e n t p r o c e s s

National O vine Johnes D isease C on trol and Evaluation Program — Business Plan

L__________ _________A F F A ANNUAL REPORT 1998-99 UCfl

I

1 2 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C O N S U L T A N C Y S E R V I C E S

C onsultant Activity Paid ($)

I N D U S T R I E S D E V E L O P M E N T G R O U P ( I D G )

National Offices

*ACIL Consulting Facilitated government plant industries

workshop on co-ordinating plant health management 13,875

*Australian Apple and Provided Cholorpyrifos residue management Pear Growers Association advice for NRS 10,150

*Computer Power Refurbished NRS database 85,000

*Risk Control Rating Reported on APLC occupational health 8920

*WJ Murray Consulting Services Provided technical expertise on NRS grains program 19,500

Fisheries and Forestry

Industries Division

* Ad-Info Services Pty Ltd Provided data entry and analysis from community surveys in upper and lower north-east NSW regions 25,009

*Crisp, R Edited and wrote social impact assessment for

south-east Queensland Regional Forest Agreement

3600

*Environment and Behaviour Studied forest use in the box-ironbark area of north­ 9000

Consultants western Victoria

*Environment and Behaviour Assessed four options in south-east Queensland 8000

Consultants Regional Forest Agreement

*Environment and Behaviour Completed social impact assessment for Gippsland 41,380

Consultants comprehensive regional assessment

*Environment and Behaviour Completed social impact assessment for western 20,400

Consultants Victoria comprehensive regional assessment

*Environment and Behaviour Completed social impact assessment for north-east 59,000

Consultants Victoria comprehensive regional assessment

A F F A A N N U A L R E P O R T

1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*Environment and Behaviour Consultants Completed social assessment in south-east Queensland Regional Forest Agreement

65,440

*Environmetrics Completed social modelling and social impact assessment in the upper and lower north-east comprehensive regional assessment/ Regional Forest Agreement

53,820

^Foundation for Aboriginal and Islander Research Action Researched indigenous communities - issues and social profile case studies for south-east

Queensland Regional Forest Agreement

90,000

*Gadgil, PD Undertook consultancy for Standing Committee

on Forestry to develop a generic incursion management plan for forest pests and diseases

32,565

*IP Australia Pty Ltd Acted as national farm forestry facilitator 51,204

*Jan Salmon and Associates Pty Ltd Helped prepare Gippsland social assessment case studies and workshops

6300

*Margules Poyry Pty Ltd Researched global outlook for plantations 36,540

*Royal Melbourne Institute of Technology Reviewed the impact of changes in forest use on indigenous communities

10,000

*University of Melbourne Wrote about international arrangements and mechanisms to promote management, conservation and sustainability of forests

30,000

Food and A gribusiness

In d u stries Division

*Braich Holdings Pty Ltd trading as City Graphics Designed, laid out and printed Chains of Success which communicates lessons and business

models developed from the Supply Chain Management Project

38,359

*Howard Partners Reviewed Supermarket to Asia strategy 48,844

*Instate Pty Ltd Studied Australian highly processed foods' export

competitiveness and market development 200,750

1 3 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

Consultant Activity Paid ($)

♦Price Waterhouse Coopers Services Pty Ltd Extended distribution of existing material in the outcomes of the food quality program, contributed

to preparing a food quality strategy paper and provided advice and helped form the overall food quality future strategy

4000

♦Union Offset Printers Printed the Delicatessen Report 3489

Agricultural In d u stries

Division

♦Food Industry Strategies Pty Ltd Developed the national pork industry development program 33,681

♦Food Industry Strategies Pty Ltd Helped with the pigmeat processing grants program

162,695

♦Ginnivan, MJ Developed the options associated with establishing

a pork export marketing body

29,080

♦Macarthur Agribusiness Helped implement the National Pork Industry Development Grant Scheme business plan 15,591

♦Macarthur Consulting Pty Ltd Implemented the National Pork Industry Development Grant Scheme business plan 9218

In d u strie s D evelopm ent Group su b total 1,225,410

C O M P E T I T I V E N E S S A N D S U S T A I N A B I L I T Y G R O U P ( C S G )

Portfolio Policy and In te rn a tio n a l Division

♦Asean Focus Group Researching agribusiness opportunities arising from Indonesian reforms

36,866

♦Murdoch University Researching agribusiness opportunities in Kalimantan and Sulawesi

30,000

♦Nelson Quinn and Associates Drafting explanatory memorandums for two bills in the Primary Industries Levies amalgamation legislative package

2310

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant

*Nelson Quinn & Associates

National Resource

M anagem ent Policy Division

*Byrne, T

* Byrne, T

*Hassall and Associates

*Hassall and Associates

^Integra Pty Ltd

*RH Walker Consulting

Rural Policy and

Com m unications Division

*AMR: Quantum Harris

*Catriona Niven Design

*Connors, T

^Penultimate

Activity

Drafting assistance with departmental submission to Productivity Commission on impact of Competition Policy Reforms on Rural and Regional Australia

Produced the Annual Report on behalf of ARMCANZ and ANZECC on the Progress of Council of Australian Governments Water Reforms

Drafted papers and the communique for the November 1998 Water Ministers' Meeting

Reviewed Natural Heritage Trust administration within the Department of Primary Industries and Energy

Undertook a risk management study of the NHT, involving both AFFA and Environment Australia programs

Facilitated two workshops on the National Natural Resource Management Policy Statement

Analysed and presented a report on the achievements of the National Landcare Program and its predecessors during the Decade of Landcare

Performed market research in support of Risk Management advertising campaign to produce a television advertisement on risk management

Designed Vision for a Change - A National Plan for Women in Agriculture and Resource Management

Developed the Across the Land radio series

Edited Vision for a Change - a National Plan for Women in Agriculture and Resource Management

Paid ($)

2310

10,000

3000

55.000

29.000

12,792

30,500

11,498

5790

17,280

10,722

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

Consultant Activity Paid ($)

♦Phoenix Projects Design of Women as Clients Strategy including guidelines 28,285

♦Phoenix Projects Stage 2 of the Missed Opportunities - Harnessing

the Potential of Women in Agriculture 83,354

♦Praxa Ltd Provided specialist programming assistance for

RCP database

9240

♦Praxa Ltd Upgraded Atlas and Countrylink modules, reviewed

system security

4633

♦Rendell McGuckian Designed and delivered a training initiative for pork producers under the national component of FarmBis

1,000,000

♦Rush Social Research Undertook media related research 30,000

♦Solutions Marketing and Research Group

Evaluated Agriculture - Advancing Australia (completed interviewing for the producer surveys) 246, 900

♦Wizard Information Services Undertook user requirements and specification of the FarmBis database (Phase 2 of Scope)

7140

♦Wizard Information Services Undertook specification of the FarmBis database (AFFA monitoring and evaluation system) and the State data entry system linked to FarmBis database

32,500

C om petitiv en ess and S ustainability Group su b -to ta l

1,699,120

A U S T R A L I A N Q U A R A N T I N E A N D I N S P E C T I O N S E R V I C E ( A Q I S )

♦AC Nielson Research Pty Ltd Completed tracking survey 45,545

♦AC Nielson Research Pty Ltd Performed AQIS client survey 201,335

♦Agriculture Victoria Services Pty Ltd

Assessed 300 plant species 38,250

♦Agriculture Western Australia Provided trapping services 125,000

♦Alliance Resource Economics Assessed economic impact of prawn pathogen 33,950

♦AMACS Pty Ltd Undertook pest status determination

14,501

♦Animal Health Management Provided import risk analysis 5000

A F F A A N N U A L RE P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*Animal Health Services Studied impact of exotic prawn pathogens 15,450

* Aquaculture Development Reported onaquatic animal products 66,500

* Aquatic Diagnostic Services Studied chemotherapeutants in finfish 45,800

^Australian Animal Health Council Completed Culicoides port surveillance project 21,233

*Australian Technology Resources Provided assistance for export documentation extension project for dairy 424,199

*Ausvet Animal Health Studied cattle export enhancement 157,500

*Baker, AM Provided contract veterinary services 26,000

* Banks, HJ Assessed treatment of table grapes 2320

*Blood McCosker Holmes Pty Ltd Provided IT consultancy services 48,600

*Blue Moon Research Provided schools awareness program 4000

*Brynm Consulting Acted as Northern Australian Quarantine Strategy review team 6000

*Bureau Veritas Quality Undertook quality certification of AQIS IT 5250

^Business Engines Pty Ltd Provided IT consultancy services 120,000

* Candle Australia Ltd Provided analysis/design for Accrual information management system project 154,532

*Centre for Food Technology Developed hazard analysis, critical control point training 11,820

*CES Computers Pty Ltd Provided IT consultancy services 5728

*Cognos Pty Ltd Provided IT consultancy services 10,360

*Complexia Undertook ballast water research 53,000

*Computer People Provided IT consultancy services 1119

*Covalent Systems Provided IT consultancy services 49,785

*Crank, B Provided quarantine education consultancy 7000

*Cryphon Consultants Pty Ltd Provided IT consultancy services 31,414

1 3 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*CSIRO Australian Animal Health Completed project for quarantine in Irian Jaya 86,449

*CSIRO Australian Animal Health Undertook validation of card agglutination test 19,000

*CSIRO BRS Laboratory Detected and sampled cholera 23,892

*CSIRO Division of Entomology Provided key to thrips in lucid 6250

*CSIRO Division of Entomology Established the status of Khapra beetle 5913

*CSIRO Division of Entomology Surveyed the screw worm fly 15,780

*CSIRO Division of Entomology Reviewed import maize from the United States 8000

*CSIRO Division of Entomology Undertook scientific research 23,000

*CSIRO Division of Entomology Performed pilot scale trials on Asian hive bee 20,820

*CSIRO Division of Entomology Provided scientific research advice 4160

*CSIRO Division of Fisheries Undertook ballast water research 139,280

*CSIRO Marine Research Completed ballast water research program 132,000

*Cultural Perspectives Completed translation of documentation 98,698

^Custom Brokers CNCL Provided Secretariat liaison office 165,600

*Davies, KH Provided quarantine education 26,580

*Department of Zoology and Entomology Provided lucid key to mites 18,480

^Department of Entomology Identified mite specimens 3000

*Department of Environment Identified 3 000 plants 11,712

*Department of Microbiology Published on web publishing, converted links 2000

^Department of Microbiology Drafted reports on prawn products 10,000

*Department Primary Industries Performed risk assessment of tomatoes from and Fish Netherlands 5520

^Department Primary Industries Provided port and airport surveillance in Queensland

26,718

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*DITQ Certification Services Provided auditing services 17,125

*Environment Management Services Undertook strategic ballast water research 4387

*Ergowork Systems Evaluated manual handling 14,776

*Ergowork Systems Evaluated manual handling 14,122

* Fisher, M Reviewed quarantine legislation 19,719

*Fisher, M Reviewed meat export orders 32,860

*Food Science Australia Undertook risk assessment on orange juice 2500

*Food Science Australia Provided specialised scientific advice 18,000

*Food Technology Services Pty Ltd Developed hazard analysis, critical control point quality assurance system

24,000

*Food Technology Services Pty Ltd Provided scientific advice 18,464

^Forestry Tasmania Trapped Asian gypsy moths 2980

*Fraser, H Provided quarantine education 14,073

*G and J Solutions Provided IT consultancy services 157,560

*Gibson and Associates Provided business planning and certification 2974

^Hancock, DL Reviewed existing Northern Australian Quarantine Strategy procedures for fruit fly 10,985

*Hepi, H Provided IT consultancy services 70,880

*Hutchison, G Undertook piroplasmosis study 8000

*Interim Technology Associates Pty Ltd Provided IT consultancy services 79,620

^International Quality Systems Provided auditing services 24,000

*IPS Employment Assistance Undertook employee assistance program 39,500

*Irwin, JG Acted on risk analysis panel - maize from the

United States

5010

1 3 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*Jefferies, M Wrote technical report on fruit flies 4000

♦Jefferies, M Produced pest data sheets 10,000

*KFPW Formulated advice to management 22,800

*KPS and Associates Pty Ltd Assessed fraud control 13,800

♦Lange Consulting Administered export documentation training 20,000

♦Learning Curve Advised on AQIS website 17,269

*Learning Curve Provided quarantine matters video 25,000

♦Maascorp Provided IT consultancy services 187,211

♦Mapinfo Created point file from excel sheets 6000

♦Marine and Freshwater Research Undertook port survey of Geelong 15,000

♦Mastech Asia Pacific Provided IT consultancy services 377,882

♦Mastech Asia Pacific Undertook ballast water research 5490

♦Masters, D Provided IT consultancy services 110,000

*MC Computer Services Provided IT consultancy services 36,106

♦MCE Consulting Pty Ltd Provided IT consultancy services 2500

♦Medical Entomology Centre Undertook tick survey 13,344

♦Mevconsult Acted on import risk analysis appeal panel 4620

♦Michels Warren Pty Ltd Prepared ballast water awareness strategy 30,000

♦Michels Warren Pty Ltd Helped with Quarantine Matters campaign 55,597

*Michels Warren Pty Ltd Undertook media program for quarantine campaign 27,765

*Mick Catley Consulting Produced policy training modules 5250

♦Moore Business Systems Produced AQIS inflight video and graphics 32,912

♦Moore Business Systems Undertook analysis, developed dairy forms 4500

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

♦Morgan and Banks Management

Provided IT consultancy services 27,185

*National Office Animal Health Studied arthropod pests in aircraft 50,000

♦Nieper Consultants Acted as Committee for Export Control Act 24,827

♦NTPIF - Berriman Veterinary Laboratory Evaluated repellants culicoides 9,350

♦Oxley Corporate Finance Reviewed AQIS vehicle fleet 22,500

♦Pat Farrelly and Associates Rationalised border control 11,275

♦Paterson, F Provided quarantine education 5000

♦Percival, S Undertook prawn and salmon risk analysis 12,271

♦Platinum Technology Solutions Provided IT consultancy services 4830

♦Power of Ten Provided advice on development of export

documentation non-meat procedures

59,999

♦Power of Ten Completed export documentation extension project 133,457

♦Power of Ten Provided IT consultancy services 300,000

♦Price Waterhouse Coopers Undertook risk assessment on dialogue 5800

♦Price Waterhouse Coopers Undertook risk analysis for international mail 13,460

♦Price Waterhouse Coopers Reviewed risks and planning process 29,250

♦Pyecroft, S Provided risk analysis on ornamental finfish 10,000

♦QDPI - Donoonba Veterinary Laboratory

Evaluated repellants culicoides 13,900

♦Queensland Beef Industry Institute Assessed 100 plant species 15,000

♦Queensland Horticulture Assessed heat disinfestation in the Cook Islands 3780

♦QMS Certification Services Provided Quality Assurance auditor training with quality management systems 115,100

♦Quacar Professionals Provided Oracle database consultancy 30,660

1 3 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

Consultant Activity Paid ($)

*Quarantine and Inspection Res Assessed quarantine risk of aircraft waste 117,200

*Quasar Professionals Developed AQIS Intranet site 7810

* Razor It Provided IT consultancy services 5907

*Ritchie, S Helped control mosquito egg larvae 6000

*Ross Cutler and Associates Acted on pig semen risk analysis panel 10,000

*Royal Melbourne Institute Assessed 100 plant species 11,396

*Russell, R Assessed the risk status of quarantine ports 22,800

*Shepperd, M Rewrote technical modules 6800

*Shivas, R Provided target lists for plant/pests pathogens 17,843

*Shivas, R Studied smut fungi in Papua New Guinea 3236

*Simpson Bowles and Associates Redesigned HR and Finance in AQIS 43,475

*Software Paragon Computer Systems Provided IT consultancy services 316,251

*Sturgess Australia Rationalised border control 98,137

*Systems Union Pty Ltd Maintained sun systems 72,069

*Taloumbi Investments Evaluated Supermarket to Asia 4998

tendering Management Acted as Committee/Chair ECA Export Control Act review

2850

*Thomsett Company Helped with handbook/training 8664

*Thomsett Company Provided project management training 11,414

*Tochnatium Pty Ltd Developed export documentation non meat 20,000

*Total POS Systems Provided point of sale for rapid fire systems 17,073

*Turner Consultancies Pty Ltd Undertook fruit fly survey 3500

*Unitas Consulting Pty Ltd Undertook risk analysis on import of salmon 10,000

*University of Queensland Surveyed Japanese encephalitis 9928

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 Eli!

A P P E N D I X 6

C onsultant Activity Paid ($)

*Verdant System Pty Ltd Provided IT consultancy services 125,018

♦Victoria University of Technology

Developed export documentation project 16,333

♦Vogelnest, L Provided import risk assessment of primates 15,000

♦Wave Productions Provided research photography and artwork 35,700

♦Weed Science Consultancy undertook risk analysis on import of maize 14,850

♦Welsh, P Provided quarantine education 14,580

♦Willmark IT Consulting Provided technical support for Accrual Information Management System project 175,275

♦Wimalajeewa, S Provided technical advice on Korean pear 8000

♦Zaneline Pty Ltd Acted on committee Export Control Act review 20,000

AQIS sub to ta l 6,342,385

A U S T R A L I A N B U R E A U OF A G R I C U L T U R A L

A N D R E S O U R C E E C O N O M I C S ( A B A R E )

♦Australian Business Theatre Managed Outlook 99 and will manage Outlook 2000 332,140

+BIS Shrapnel Forestry Group Pty Ltd Prepared forestry comprehensive regional assessments for Western Australia

27,905

♦Centre of Policy Studies, Monash University Developed a Windows-based interface for the MEGABARE model

67,500

♦CSIRO Land and Water Reviewed the soil water balance component of ABARE's water model 2217

♦Eltom Consulting services Pty Ltd Assisted with accrual output-based budgeting, accounting and reporting

5400

+Fortech (Forestry Technical Services Pty Ltd) Collected data and analysed industry options for the regional forest agreement for the upper

north and lower north east regions of New South Wales

54,100

+Hall Resource Economic Modelling Updated Integrated Murray Modelling System 24,050

1 4 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*Stuart Harris Prepared for and chaired the GIGABARE project's 6000

steering committee meetings

+Kennedy, JOS Developed a bioeconomic model of the southern 6570

bluefin tuna fishery

+Kevin Wareing and Collected data and analysed industry options for 30,400

Associates Pty Ltd regional forest agreement for north east, west

and Gippsland

+ Kinhill Economics Assessed significance of forests to recreation and 75,141 tourism in south east Queensland for the social economic assessment component of the south east Queensland Regional Forest Agreement

+ Poyry, M Collected data and analysed industry options for 86,450

Regional Forest Agreement for south east Queensland

*Morison Consulting Pty Ltd

+ Ruello and Associates

*University of Melbourne

Assisted with accrual output-based budgeting, 18,000 accounting and reporting

Undertook data collection and provided research 49,600 assistance to evaluate factors influencing domestic seafood prices

Developed further ABARE's southern 30,000

Murray-Darling Basin model

ABARE su b to ta l 815,473

B U R E A U O F R U R A L S C I E N C E S ( B R S )

*Argentine Geological and Mining Identified San Luis Province's significant 620,000 Survey (SEGEMAR) groundwater resources suitable for intensive agricultural use

*Birrell, B Provided research assistance on income support 5000

*CALM Director Project Updated plantation inventory Western Australia 30,000 Management

^Centre for Ore Deposit Harvested E. Obliqua at selected Tasmanian sites 45,100 Research

* Casey, R Provided information for clients, stakeholders and 4000

BRS Management about the Social Sciences Centre

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 π α

A P P E N D I X 6

C onsultant Activity Paid ($)

*Coakes, S Completed Department of Land and Water 22,815

Conservation toolkit, organised ANU workshop to develop a set of social indicators, prepared the native vegetation strategy for the Department of Land and Water conservation, and developed social impact assessment toolkit

*CSIRO Reviewed forest management systems and planning

processes for the south west Western Australia Regional Forest Agreement

21,340

*CSIRO Helped with the application of process-based models

to predict changes in above ground biomass at landscape scales

17,000

*CSIRO Helped with the role of marine reserves as fisheries

management tools

97,343

*CSIRO Land and Water enhanced estimates of plant growth from high frequency satellite monitoring 50,000

*CSIRO Land and Water Division Provided soil physics input to San Luis Groundwater Resource Project for San Luis Province, Argentina 88,000

*CSIRO Land and Water Reported and advised on a systems analysis of the sustainable land use information system 18,000

*Department Natural Resources and Environment Provided structural vegetation data set, Victoria 97,000

*Department of Conservation and Land Management Western Australia

Updated plantation inventory Western Australia 30,000

*Department of Natural Resources Queensland Provided NORFOR consultancy, Queensland component 172,000

*Department of Natural Resources Queensland Produced forest type and structure maps 158,000

^Design One Designed/typeset State of the Forests 13,343

*ELSE Provided adoptive game theory in multilateral

negotiations on Australian coal and southern bluefin tuna fishery

25,000

Ba AFFA ANNUAL REPORT 19 9 8-99

A P P E N D I X 6

Consultant Activity Paid ($)

*ESRI Australia Presented five day ESRI accredited GRID course 7500

♦Fenton, M Developed social impact assessment toolkit and

analysed social indicators for the Social Sciences Centre

27,750

*Forestry South Australia Performed Eyre Peninsula native forest cover mapping and survey 140,000

♦Forestry South Australia Researched Eucalyptus Plantations - Green Triangle 30,000

♦Gabriel, M Researched four core projects for the Social

Sciences Centre

10,000

♦Greenfield Resource Options Pty Ltd

Undertook hardwood plantations study in south east Queensland Comprehensive Regional Assessment

43,350

♦Lawrence, C Provided project management services for a

groundwater project for San Luis Government, Argentina

288,000

♦Lynette Glendinning People Achievement Leadership Prepared for and facilitated workshop Social Sciences Centre

6700

♦Kearney, B Provided scientific advice for managing highly

migratory fish stocks 8918

♦Malafant, K Undertook soil carbon modelling for the Australian

continent

26,000

♦Malafant, K Provided programming and designed the database

to construct the BRS wide time recording system with Internet user interface

18,900

♦Malafant, K Analysed statistics about weeds of national

significance

10,000

♦Northern NSW Forestry Services Provided survey reports on private forest management intent survey for northern New

South Wales Comprehensive Regional Assessment

17,410

♦NSW Department of Agriculture Researched wildlife and exotic diseases preparedness 67,500

♦NSW Department of Agriculture Researched feral goats and domestic livestock in eastern environments 80,000

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

C onsultant Activity Paid ($)

*NT Department of Primary Industry and Fisheries Developed flaviviral monitoring strategies in northern animal ecosystems, including for Japanese

encephalitis

55,000

*Phil Dyson and Associates Reviewed the level of understanding of salinity processes in hydrogeological catchments and guide the development of GIS rules for catchment classification according to salinity processes

40,000

*Phil Dyson and Associates Guided work on four catchment case studies as part of an advisory panel of experienced hydrogeologists

19,200

*Queensland Department of Primary Industries Surveyed mega and microchiroptera in Northern and Western Australia

39,552

*Santa Fe Centre for Emergent Strategies

Developed ideas of complex adaptive systems 11,286

*Radke, B Interpreted hydrochemical and hydrogeological data 30,600

*Zavaliar and Associates Studied resource economics San Luis Province, Argentina 151,200

BRS sub to ta l 2,642,807

M A N A G E M E N T S E C R E T A R I A T

Business Services Unit

*Albyte Computer Services Provided IT training 6255

*Allen, S Provided IT training 8867

*Australian National University Provided professional development training 6199

*Computer Training and Consultancy Provided IT training 37,162

*Flaton, P Provided professional development training 5145

*KLA Australia Reviewed cost of business services 25,360

*Outcome Management Services Facilitated BSU planning workshop and developed scorecard 4760

1 4 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 6

Consultant Activity Paid ($)

*People and Strategy Provided professional development training 74,898

*Rob Brennan Facilitation and Training Provided professional development training 8500

*Studio Seven Reviewed accommodation 2500

*Upton Martin Consulting Facilitated team leaders' seminar 4250

Inform ation Services

*Michael Dunn Consulting Pty Ltd Provided secure communications report 6030

Corporate D evelopm ent Team

* Ernst & Young Reviewed FMIS project status 5700

*Interim FIR Solutions Undertook operational review of levies management 35,293

*KLA Australia Undertook activity analysis 20,500

*Manx Consulting Scoped and evaluated FMIS selection 64,400

*Monash Mt Eliza Business School Evaluated leadership program 2500

*People and Strategy Management Consulting Group Designed, delivered and managed graduate program

60,000

*William M Mercer Pty Ltd Developed 360-degree feedback program 28,950

M anagem ent S ecre taria t sub to tal 407,269

E X E C U T I V E S E C R E T A R I A T

Internal Audit

* Ernst & Young Delivered AFFA internal audit services 600,000

E xecutive S ecre taria t sub to tal 600,000

G rand Total 13,732,464

Note: * Special skills not available in AFFA. + Special skills available within AFFA but staff resources were limited.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

1 4 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 7

A D V E R T I S I N G A N D M A R K E T R E S E A R C H

T he following table sets o u t particulars o f am ounts (in excess o f $1 500) paid by, or on b eh alf o f AFFA to advertising agencies, m ark et research organisations an d p o llin g organisations, m edia advertising organisations and direct m ail organisations.

O rganisation Activity E xpenditure ($)

I N D U S T R I E S D E V E L O P M E N T G R O U P ( I D G )

Agricultural In d u strie s

Division

AIS Media Advertising services 4755

TMP Worldwide Advertising Nursery Industry Trade Register 1775

TMP Worldwide Advertising services 1602

TMP Worldwide Designing and producing advertisements 2256

TMP Worldwide Request for tendering PPGP 4653

TMP Worldwide Advertising PPGP program and request for tender 3004

Food and A gribusiness

Industries Division

Business Asia Advertising Chains of Success

3000

Executive Media Advertising in Supermarket to Asia

2495

John Fairfax Publications Advertising Chains of Success 3700

TMP Worldwide Advertising tenders for consultancy

2871

Fisheries and Forestry Industries Division

303 Advertising Advertising on radio and in newspapers Western

31,585

Australia's RFA outcomes

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 U f l

A P P E N D I X 7

O rganisation Activity Expenditure ($)

AIS Media Advertising through regional and metropolitan

non-campaign print media RFA milestones and public meetings in NSW, Victoria, Queensland and Western Australia

21,889

AIS Media Advertising through print and radio Western

Australia's RFA outcomes

108,930

TMP Worldwide Advertising through regional and metropolitan non-campaign print media RFA milestones and public meetings n NSW, Victoria, Queensland and Western Australia

48,107

C O M P E T I T I V E N E S S A N D S U S T A I N A B I L I T Y G R O U P ( C S G )

Advertising Investment Services Pty Ltd Advertising in press for proposals for mid term review of the Natural Heritage Trust

2551

AIS Media Advertising in press for grant programs for

national NGOs for 1999-2000 2129

AIS Media Advertising in press for proposals for mid term

review of the Natural Heritage Trust

2914

AIS Media AAA advertorials in rural newspapers 724,640

Australian Broadcasting Corporation Amending the AAA welfare video 1770

Australian Broadcasting Corporation Producing the AAA welfare video 145,010

Australia Post Mailing out Action Plan for Australian Agriculture 754,230

Australia Post Mailing out Action Plan for Australian Agriculture

mailout

716,770

Executive Media Pty Ltd Advertising in National Farmers' Federation Annual Report 1998 promoting AFFA's services and programs

2695

Mirrabooka Marketing and Design Pty Ltd Artwork for AAA brochure 15,300

1 4 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 7

O rganisation Activity Expenditure ($)

Mirrabooka Marketing and Design Pty Ltd Designing, laying out, producing and promoting Rural Vision magazine

47,100

Mirrabooka Marketing and Design Pty Ltd Designing AAA welfare video cover 1865

Prime Prospects Pty Ltd Mailing list rental and mailing out preparation for Action Plan for Australian Agriculture 336,200

PR Plus Developing package for Action Plan for

Australian Agriculture

54,900

Radiowise Programming series of 20 capsules over

60 radio stations for Across the Land 147,500

Radiowise Programming 2 month radio series of

Across The Land

590,000

TMP Worldwide Advertising in rural press for the Rural

Communities Program

3182

TMP Worldwide Inserting Rural Vision magazine in rural

newspapers

18,205

TMP Worldwide Inserting Rural Vision magazine in rural

newspapers

11,760

TMP Worldwide Advertising in rural newspapers Action

Plan for Australian Agriculture

4433

TMP Worldwide Advertising in rural newspapers Action

Plan for Australian Agriculture

9221

TMP Worldwide Advertising in rural newspapers Action

Plan for Australian Agriculture

5033

TMP Worldwide Advertising in rural press for the Rural

Communities Program

2120

TMP Worldwide Advertising in rural newspapers Action

Plan for Australian Agriculture

3870

TMP Worldwide Advertising in rural press for the Rural

Communities Program

8440

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 4 9

A P P E N D I X 7

O rganisation Activity E xpenditure ($)

TMP Worldwide Advertising in rural newspapers Action 3261

Plan for Australian Agriculture

TMP Worldwide Advertising in rural press for the Rural 6371

Communities Program

TMP Worldwide Advertising in rural press for the Rural 8440

Communities Program

A U S T R A L I A N Q U A R A N T I N E A N D

I N S P E C T I O N S E R V I C E ( A Q I S )

AC Nielsen Conducting Benchmark Tracking Client

Survey Phases 1 and 2

96,935

AC Nielsen Tracking survey of Quarantine Week 7500

AC Nielsen Advertising quarantine awareness 10,560

AC Nielsen Tracking survey of Quarantine Matters Campaign 91,090

AC Nielsen Media exposure profile on international

travellers for use in communication strategy 3000

AIS Media Advertising in tourism and travel publications 2950

AIS Media Advertising in AFTA wall planner 5836

AIS Media Advertising in ATC Traveller's Guide 9383

AIS Media Advertising quarantine awareness 2233

Australian Document Exchange Direct mailing and distributing of Quarantine Awareness communication products 28,142

BOAC Nominees Advertising quarantine awareness in various publications 425,848

Grey Advertising Advertising in in-flight magazines 1934

Grey Advertising Advertising agency submission 2000

Grey Advertising Advertising quarantine awareness 17,475

McGregor Marketing Evaluated Northern Australian Quarantine Strategy Awareness 39,000

1 5 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 7

O rganisation Activity E xpenditure ($)

Mitchell & Partners Advertising quarantine awareness in

in-flight magazines

101,160

Mitchell & Partners Advertising in travel industry trade

magazines

9420

National Mailing and Marketing Direct mailing and distributing of AQIS Bulletin 15,145

National Mailing and Marketing Direct mailing and distributing of Import Risk Analysis Handbook 3035

TMP Worldwide Advertising positions vacant and calling for

expression of interest for consultancies 114,650

TMP Worldwide Advertising Quarantine Export Advisory

Committee review of NAQS submission 4383

TMP Worldwide Advertising Top Watch Awareness in

Torres News

4050

TMP Worldwide Advertising expression of interest for

people to register in stakeholder register 13,202

TMP Worldwide Advertising AQIS quarantine research program 14,400

TMP Worldwide Advertising in ATC Asian publication

8768

TMP Worldwide Advertising Tick Survey of the Sydney

International Equestrian Centre at Eastern Creek

2009

A U S T R A L I A N B U R E A U O F A G R I C U L T U R A L

A N D R E S O U R C E E C O N O M I C S ( A B A R E )

Cox Inall & Associates Media and video services

57,850

Exhibition Centre Pty Ltd Displaying ABARE material

3412

National Mailing and Marketing Outlook satchels and mail outs 27,182

Salmat Mailing, printing and distributing publications

345,711

TMP Worldwide Advertising

27,087

Watcham Penrose and Associates Advertising

5580

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 EH!

A P P E N D I X 7

O rganisation Activity E xpenditure ($)

B U R E A U OF R U R A L S C I E N C E S ( B R S )

Australian Science Festival Sponsoring 1999 Australian Science Festival 10,000 Pty Ltd Speakers Program

Executive Media Pty Ltd Advertising in National Farmers' Federation 1695 Annual Report 1998

TMP Worldwide Advertising national feral animal control 2924

TMP Worldwide Advertising jobs 12,476

M A N A G E M E N T S E C R E T A R I A T

Business Services Unit (BSU)

KLA Australia Conducting market research for the BSU 13,600

TMP Worldwide Advertising jobs 2619

E X E C U T I V E S E C R E T A R I A T

Nil

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 8

D E P A R T M E N T A L C O N T A C T S

Department o f Agriculture, Fisheries and Forestry — Australia E dm und B arton B uilding Blackall Street BARTON A C T 2600

G P O Box 858 CANBERRA A C T 2601

Phone: (02) 6272 3933 Fax: (02) 6272 5161

Australian Q uarantine and Inspection Service E dm und B arton B uilding Kings Avenue BARTON A C T 2600

G P O Box 858 CANBERRA A C T 2601

Phone: (02) 6272 3933 Fax: (02) 6272 5697

Australian Bureau o f Agricultural and Resource E conom ics E dm und B arton B uilding C n r B roughton and M acquarie Streets BARTON A C T 2601

G P O Box 1563 CANBERRA A C T 2601

Phone: (02) 6272 2000

Bureau o f Rural Sciences Edm und Barton Building BARTON A C T 2600

PO Box E l l K IN G STO N A C T 2604

Phone: (02) 6272 4282 Fax: (02) 6272 5050

A P P E N D I X 8

Activity C ontact num ber

ABARE Media and Marketing Officer Phone: (02) 6272 2291

ABARE Publication Inquiries Phone: (02) 6272 2211

AFFA Information Officer Phone: (02) 6272 5120

A Q I S A R E A O F F I C E S

Adelaide

8 Butler Street PORT ADELAIDE SA 5015

PO Box 63 PORT ADELAIDE SA 5015

Brisbane

433 Boundary Street SPRING HILL QLD 4000

GPO Box 778 BRISBANE QLD 4001

Cairns

Ground Floor, Airport Administration Centre Cairns International Airport CAIRNS QLD 4870

PO Box 96 Airport Administration Centre Cairns International Airport CAIRNS QLD 4870

Darwin

26 Dinah Beach Rd DARWIN NT 0800

GPO Box 2457 DARWIN NT 0801

Hobart

Macquarie Wharf No. 1 Hunter Street HOBART TAS 7000

GPO Box 347 NORTH HOBART TAS 7002

Phone: (08) 8305 9700 Fax: (08) 8305 9825

Phone: (07) 3246 8702 Fax: (07) 3831 4322

Phone: (07) 4030 7800 Fax: (07) 4035 9578

Phone: (08) 8981 1211 Fax: (08) 8981 5595

P hone:(03) 6233 3352 Fax: (03) 6234 6785

A P P E N D I X 8

Activity C ontact num ber

Melbourne

Second Floor Yarra Tower World Trade Centre MELBOURNE VIC 3005

PO Box 60 World Trade Centre MELBOURNE VIC 3005

Phone: (03) 9246 6777 Fax: (03) 9246 6800

Perth

Level 1, Wing C Market Square 280 Bannister Road CANNING VALE WA 6155

PO Box 1425 CANNING VALE WA 6970

Phone: (08) 9311 5400 Fax: (08) 9455 4044

Sydney

2 Hayes Road ROSEBERRY NSW 2018

Meat Inspection Locked Bag 6 MASCOT NSW 2020

Quarantine PO Box 657 MASCOT NSW 2020

Phone: (02) 9364 7222 Fax: (02) 9364 7280 (Meat Inspection)

Fax: (02) 9364 7340 (Quarantine)

AQIS Public Relations Section Phone: (02) 6272 5234

AQIS Quarantine and Inspection Inquiries Phone: 1800 020 504

Fax: (02) 6272 3110

Australian Plague Locust Commission Phone: (02) 6272 5072

BRS Public Relations and Media Inquiries Phone: (02) 6272 3347

BRS Publication Sales Phone: (02) 6272 5550

Fax: (02) 6272 5771

Exceptional Circumstances Phone: (02) 6272 4941

FarmBis Program Phone: (02) 6272 4576

Farm Family Restart Program Phone: (02) 6272 4283

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

Activity C ontact num ber

Freedom of Information

Levies Management Unit

Plant Breeders Rights

Privacy

Public Relations and Media

Rural Adjustment Scheme

Rural Partnership Program

Woodchip Export Monitoring Unit

A F F A O V E R S E A S P O S T S

Brussels

Peter Thomas Minister Counsellor (Agriculture) Australian Mission to the European Community 6-8 Rue Guimard 1040 BRUSSELS BELGIUM

Albert Cobb Counsellor (Veterinary) Australian Embassy 6-8 Rue Guimard

1040 BRUSSELS BELGIUM

Paris

Craig Burns Minister Counsellor (Agriculture) Australian Embassy 4 Rue Jean Rey 75724 CEDEX 15 PARIS FRANCE

Seoul

Martin Holmes Counsellor (Veterinary) Eleventh Floor, Kyobo Building 1 Chongro-l-Ka Chongro-Ku 110-714 SEOUL KOREA

P hone:(02) 6271 6381

Phone: (02) 6272 4411

P hone:(02) 6272 4228

P hone:(02) 6272 6381

P hone:(02) 6272 5120

P hone:(02) 6272 4283

Phone: (02) 6272 4283

Phone: (02) 6272 4196

Phone: 0011 322 286 0513 Fax: 0015 322 230 6802

Phone: 0011 322 286 0500 Fax: 0015 322 230 6802

Phone: 0011 331 4059 3370 Fax: 0015 331 4059 3394

Phone: 0011 822 725 4904 Fax: 0015 822 735 6601

1 5 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 8

Activity C ontact num ber

Tokyo

Bob Calder Minister Counsellor (Agriculture) 2-1-14 Mita Minato-Ku, TOKYO 108-8361 JAPAN

Phone: 0011 813 5232 4021 Fax:0015 813 5232 4029

Chris Hood Counsellor (Agriculture) Australian Embassy 2-1-14 Mita

Minato-Ku, TOKYO 108-8361 JAPAN

Phone: 0011 813 5232 4027 Fax:0015 813 5232 4029

W ashington DC

Paul Morris Minister Counsellor (Agriculture) Australian Embassy 1601 Massachusetts Avenue, NW

WASHINGTON DC 20036 USA

Phone: 0011 1202 797 3318 Fax: 0015 1202 797 3049

Phil Corrigan Counsellor (Veterinary) Australian Embassy 1601 Massachusetts Avenue, NW

WASHINGTON DC 20036 USA

Phone: 0011 1202 797 3319 Fax: 0015 1202 797 3037

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

1 5 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

Program + Approp Bills + Approp Bills + Special + AMFA Final = Program Expenditure from Number Nos 1 & 3 Nos 2 & 4 Approps Charge (# ) Approps Trust Accounts

IDG 64,945,865 37,393,928 731,791,722 160,492 834,292,007

CSG 88,462,614 101,259,369 40,228,512 0 229,950,495

AQIS 184,352,405 0 0 2,000,000 186,352,405

BRS 17,175,026 1,482,100 0 0 18,657,126

ABARE 20,997,265 0 0 0 20,997,265

Mgt Sec 29,170,826 0 0 0 29,170,826

Transferred ** 29,359,677 1,989,930 48,748,650 0 80,098,257

Total 434,463,678 142,125,327 820,768,884 2,160,492 1,399,518,381

7,808,394

475,858,352

208,001,608

9,043,178

0

0

0

700,711,532 * ( * * )

(#) Advance to the Minister for Finance and Administration as a final charge

(**) Includes whole or part items transferred as part of the Administrative Arrangement Orders October 1998

3 V)

3

n 3

I— * ft SO O

SO >11

73

SO SO 3

R E C O N C I L I A T I O N T A B L E

1 6 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 10

F I N A N C I A L S T A T E M E N T S

I n d e x

Page

Audit C ertificate 163

C ertification o f the Financial Statem ents 165

Statem ents o f Revenues and Expenses 166

Statem ents o f Assets an d Liabilities 168

Statem ents o f Revenues and Expenses by Program 170

Statem ents o f Cash Flows 175

Schedule o f C o m m itm en ts 178

Schedule o f C ontingencies 179

Notes to and form ing p art o f the Financial S tatem ents 180

A u s t r a l i a n Q u a r a n t i n e a n d I n s p e c t i o n S e r v i c e ( A Q I S )

Quarantine and Export Certification D ivisions (QEC)

A udit C ertificate 245

C ertification o f the Financial Statem ents 247

Statem ent o f Revenues and Expenses 248

Balance Sheet 249

Statem ent o f Cash Flows 250

Schedule o f C o m m itm en ts 251

Schedule o f C ontingencies 252

N otes to the Financial S tatem ents 253

Meat Inspection D ivision (M ID) A udit C ertificate 281

C ertification o f the Financial Statem ents 283

Statem ent o f Revenues and Expenses 284

Balance Sheet 285

Statem ent o f Cash Flows 286

Schedule o f C om m itm ents 287

Schedule o f C ontingencies 288

N otes to the Financial Statem ents 289

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

Page

N a t i o n a l R e s i d u e S u r v e y ( N R S )

A udit C ertificate 315

C ertificate o f the Financial Statem ents 317

S tatem ent o f Revenues and Expenses 318

Balance Sheet 319

S tatem ent o f Cash Flows 320

Schedule o f C om m itm ents 321

N otes to and form ing p art o f the Financial S tatem ents 322

Glossary o f Terms 331

16 2 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

Australian National

Audit Office

INDEPENDENT AUDIT REPORT

To the Minister for Agriculture, Fisheries and Forestry

Scope

I have audited the financial statements of the Department of Agriculture, Fisheries and Forestry - Australia for the year ended 30 June 1999. The financial statements comprise:

• Statement by the Chief Executive and Chief Financial Officer

• Agency and Administered statements of:

• Revenues and Expenses

• Assets and Liabilities

• Revenues and Expenses by Program

• Cash Flows

• Schedule o f Commitments

• Schedule of Contingencies, and

• Notes to and forming part o f the Financial Statements.

The Department’s Chief Executive and Chief Financial Officer 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 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 test basis, o f 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

GPO Box 707 CANBERRA ACT 2601 Centenary House 19 N ational Circuit BARTON ACT Phone (02) 6203 7300 Fax (02) 6203 7777

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

requirements so as to present a view of the Department which is consistent with my understanding of its financial position, 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 Department of Agriculture, Fisheries and Forestry - Australia as at 30 June 1999

and the results of its operations and its cash flows for the year then ended.

Australian National Audit Office

Delegate of the Auditor-General

Canberra 22 September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA STATEMENT BY CH IEF EXECUTIVE AND CH IEF FINANCIAL OFFICER

In our opinion, the attached financial statements give a true and fair view of the matters required by Schedule 2 to the Finance Minister’s Orders made under section 63 of the Financial Management ami Accountability Act 1997.

K H Matthews Chief Executive 2 2 September 1999

Martin Dolan Chief Financial Officer ^22- September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA AGENCY REVENUES AND EXPENSES for the year ended 30 June 1999

Notes 19 9 8 -9 9 1997-98

$ '000 $'000

NET COST OF SERVICES E xpenses Employees 92 09 4 104 395

Suppliers 52 531 81 564

Depreciation and amortisation 5 8 8 0 10 071

Write down o f assets 688 125

Net losses from sales of assets 101 1 294

Other costs o f providing goods and services 4 6 7 427

Expenses o f business operations 194 3 4 6 187 190

Total ex p e n se s 3 346 107 385 066

R even u es from independent sou rces Sales of goods and services 26 95 5 33 643

Net gains from sales o f assets 47 4 15

Other revenues from independent sources 2 4 5 7 1 983

Revenues of business operations 119 01 0 116 818

Total reven u es from in d ep en dent so u rc es 4 148 8 9 6 152 459

Net co st of services 197 211 232 607

REVENUES FROM GOVERNMENT Appropriations used for:

- Ordinary annual services (net appropriations) 172 702 246 752

Resources received free o f charge 5 360 13 298

Funding for long service leave 6 - 14 559

Total reven u es from govern m en t 173 06 2 274 609

Operating su rp lu s/(d eficit) before extraordinary item s (2 4 149) 42 002

Net revenue/(expense) from extraordinary items 7 (4 2 3 5 ) 266

Operating su rp lu s/(d eficit) (2 8 3 8 4 ) 42 268

Accumulated results at 1 July 13 30 6 1 2 (6 142)

Adjustments to equity:

- Running costs carryover for 1999-2000 13 6 43 9 -

- Restructure adjustment 13 - (5 514)

Accum ulated resu lts a t 30 June 13 8 667 30 612

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 6 6

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA ADMINISTERED REVENUES AND EXPENSES for the year ended 30 June 1999

Notes 1 9 9 8 -9 9

$'000

1997-98 $'000

REVENUES

TAXATION Taxes, levies, fees and charges 6 7 9 75 5 946 769

Total taxation 6 7 9 75 5 946 769

NON-TAXATION Interest and dividends 2 5 86 5 86 109

Industry contributions to administered activities 1 0 0 6 2 12 625

Other 26 7 1 8 13 885

Total non-taxation 6 2 645 112 619

Total reven u es 4 7 4 2 4 0 0 1 059 388

EXPENSES Subsidies 16 8 767

Levies passed on 6 9 4 3 3 4 968 609

Personal benefits 6 2 34 1 87 293

Grants and parliamentary appropriations 2 0 7 37 3 303 582

Depreciation and amortisation 150 489

Net write-down of assets 5 65 6 53 538

Interest and other financing costs 13 8 9 7 13 628

Industry Reserved Money Funds expenses 8 21 7 18 862

Other 1 24 0 936

Total e x p e n se s 3 9 9 3 3 7 6 1 447 704

N et contribution/ (c o st) to govern m en t ( 2 5 0 9 7 6 ) ( 388 316)

TRANSFERS Cash from Official Commonwealth Public Account 1 0 4 4 46 8 1 389 255

Cash to Official Commonwealth Public Account ( 7 4 0 3 3 8 ) ( 1 109 350)

Special appropriations accrued 3 0 22 0 -

Resources provided free o f charge 5 - ( 107 576)

Net ch an ge in adm inistered a s s e t s before extraordinary item 8 3 3 7 4 ( 215 987)

Extraordinary item - restructuring 7 ( 8 6 5 0 6 3 ) -

N et ch an ge in adm inistered a s s e ts ( 7 8 1 6 8 9 ) ( 215 987)

Accumulated results at 1 July 9 1 6 90 5 1 132 892

Accum ulated resu lts a t 30 June 13 1 3 5 216 916 905

The accompanying notes form an integral part of these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA AGENCY ASSETS AND LIABILITIES fo r the year ended 30 June 1999

Notes 1 9 9 8 -9 9 1997-98

$ '000 $'000

DEBT Loans [from future running costs] 8 9 819

Total d eb t - 9 819

PROVISIONS AND PAYABLES Employees 10 62 9 6 3 82 581

Suppliers 11 4 603 11 032

Other 12 24 3 0 8 22 464

Total provisions and payables 91 8 7 4 116 077

EQUITY Capital o f business operations (3 6 4 4 ) (3 644)

Accumulated results 8 66 7 30 612

Reserves 11 532 8 277

Total equity 13 16 55 5 35 245

Total liabilities and equity 1 0 8 4 2 9 161 141

FINANCIAL ASSETS Cash 3 99 3 19 977

Receivables 14 48 091 61 206

Investments 15 8 80 0 7 100

Other 16 5 29 2 11 193

Total financial a s s e ts 66 176 99 476

NON-FINANCIAL ASSETS Land and buildings 17, 23 10 27 8 16 354

Infrastructure, plant and equipment 18, 23 19 50 4 30 697

Inventories 19 1 561 2 607

Intangibles 20 10 02 9 7 481

Other 21 881 4 526

Total non-financial a s s e ts 4 2 253 61 665

Total a s s e ts 10 8 4 2 9 161 141

Current liabilities 46 235 67 491

Non-current liabilities 45 6 3 9 58 405

Current a s s e ts 57 0 5 0 92 491

Non-current a s s e ts 51 3 7 9 68 650

The accompanying notes form an integral part o f these financial statements

1 6 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA ADMINISTERED ASSETS AND LIABILITIES for the year ended 30 June 1999

Notes 1 9 9 8 -9 9 1997-98

$ '0 0 0 $'000

DEBT Deposits 8 2 5 6 178 443 73S

Total d eb t 2 5 6 178 443 735

PROVISIONS AND PAYABLES Personal benefits 9 8 9 1 1 135

Other 12 31 5 5 5 102 460

Total provisions and p a y a b les 3 2 44 6 103 595

EQUITY Accumulated results 13 5 21 6 916 905

Reserves 2 7 6 0 0 9 6 5 308 665

Total eq u ity 13 2 8 9 5 3 1 2 6 225 570

Total liabilities and equity 3 1 8 3 9 3 6 6 772 900

FINANCIAL ASSETS Cash 12 9 7 3 464 646

Receivables 14 8 4 9 1 9 874 384

Investments 15 3 0 2 8 3 1 4 5 357 122

Other 16 51 11 8 66 974

Total financial a s s e ts 3 1 7 7 3 2 4 6 763 126

NON-FINANCIAL ASSETS Land and buildings 17, 23 3 3 5 5 3 119

Infrastructure, plant and equipment 18, 23 - 1 348

Other 21 3 257 5 307

Total non-financial a s s e t s 6 6 1 2 9 774

Total a sse ts 3 18 3 9 3 6 6 772 900

Current liabilities 28 8 6 2 4 547 329

Non-current liabilities - -

Current a s s e ts 3 8 0 190 600 799

Non-current a s s e ts 2 8 0 3 7 4 6 6 172 100

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 6 9

1 7 0 >

*Ό "Ό

AQIS Total

All Groups

98-99 97-98 98-99 97-98

$'000 $Ό00 $'000 $Ό00

1 420 1 651 92 094 104 395

550 1928 52 531 81 564

266 203 5 880 10 071

12 ( 1) 688 125

- 4 101 1 294

12 38 467 427

188 511 180 323 194 346 187 190

190 771 184 146 346 107 385 066

786 291 26 955 33 643

46 474 15

63 144 2 457 1 983

110 306 119 010 116 818

> ~α ~α m 2 σ

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA AGENCY REVENUES AND EXPENSES BY GROUP for the year ended 30 June 1999

EXPENSES Subsidies 168 767 .

Levies passed on 694 334 968 609 - .

Personal benefits 62 341 87 293 - - - 62 341 87 293

Grants and parliamentary appropriations 205 787 302 257 1 4 8 2 1325 104

Depreciation and amortisation 148 487 2 2

Net write-down of assets 5 656 53 538

168 767

694 334 968 609

207 373 303 582

150 489

5 656 53 538

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA AGENCY REVENUES AND EXPENSES BY GROUP for the year ended 30 June 1999

Policy Groups BRS ABARE AGSO AQIS Eliminations Total

All Groups

98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98

$'000 $’000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Net change in administered assets before extraordinary item 77 547 ( 143 818) - - - - 5 827 ( 72 169)

Extraordinary item -restructuring ( 858 562) - ( 6 501)

Net change in administered assets ( 781015) ( 143 818) - - - - ( 674) ( 72169) - - - -( 781689) ( 215 987)

Accumulated results at 1 July 916 231 1 060 049 - - - - 674 72 843 - - - 916 905 1 132 892

Accumulated results at 30 June 135 216 916 231 - - - - - 674 - - - - 135 216 916 905

83 374 ( 215 987)

( 865 063)

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA ADMINISTERED CASH FLOWS for the year ended 30 June 1999

Notes 1 9 9 8 -9 9 1997-98

$ '0 0 0 $'000

OPERATING ACTIVITIES Cash received

TAXATION Taxes, levies, fees and fines 68 9 3 6 1 950 832

Total taxation 68 9 361 950 832

NON-TAXATION Interest 26 17 4 83 993

Industry contributions to administered activities 10 821 13 937

Cash from CPA 1 0 4 4 4 6 8 1 389 255

Other 16 8 6 9 13 715

Total n on-taxation 1 0 9 8 3 3 2 1 500 900

Total cash received 1 7 8 7 6 9 3 2 451 732

Cash u sed Subsidies 168 767

Levies passed on 7 5 0 8 2 2 952 434

Personal benefits 62 5 8 5 88 769

Grants and parliamentary appropriations 219 685 291 173

Interest 15 606 13 966

Industry Reserved Money Funds expenses 8 09 6 18 842

Cash to CPA 7 4 0 33 8 1 109 350

Transfer o f cash balances on restructuring 9 8 2 5 -

Other 1 24 0 1 201

Total cash used 1 8 0 8 36 5 2 476 502

N et cash from operating activities 24 ( 20 6 7 2 ) ( 24 770)

INVESTING ACTIVITIES Cash received Repayments o f advances 11 781 70 913

Proceeds from sale of investment securities 101 768

Total cash received 11 781 172 681

Cash used Purchase o f non-financial assets 4 39 2 36 043

Payments for investment securities 25 0 83 3 101 894

Total cash u sed 25 5 225 137 937

Net cash from in vestin g activities ( 243 4 4 4 ) 34 744

The accompanying notes form an integral part of these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 7 6

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA ADMINISTERED CASH FLOWS fo r the year ended 30 June 1999

Notes 1 9 9 8 -9 9 1997-98

$ '000 $'000

FINANCING ACTIVITIES Cash received Proceeds from borrowing 28 7 8 5 86 675

Total ca sh received 28 78 5 86 675

Cash u sed Repayments of debt 2 1 6 3 4 2 -

Total cash used 21 6 34 2 -

N et cash from finan cin g a ctiv ities ( 187 5 5 7 ) 86 675

N et in crease in cash held ( 4 5 1 6 7 3 ) 96 649

add cash at 1 July 4 6 4 6 4 6 367 997

Cash a t 30 June 12 9 7 3 464 646

R estrictions on th e u se o f cash balances: Amounts held against Income Equalisation Deposits to be used only for the repayment o f those deposits Amounts held in trust to be spent on specific research

25 6 178 443 735

activity as agreed with depositors “ 4 945

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

.1

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA SCHEDULE OF COMMITMENTS fo r the year ended 30 June 1999

A gency Adm inistered

19 9 8 -9 9 1997-98 19 9 8 -9 9 1997-98

$'000 $'000 $ 0 0 0 $'000

BY TYPE CAPITAL COMMITMENTS Land and buildings - - - 832

Infrastructure, plant and equipment 229 2 581 - 3 098

Other capital commitments 24 80 - 16

Total capital com m itm ents 253 2 661 - 3 946

OTHER COMMITMENTS Operating leases 96 05 7 109 115 37 -

Project commitments 1 567 2 568 33 6 5 9 5 993

Goods and services contracts 3 615 8 438 9 3 4 164

Other commitments 1 911 1 995 - -

Total other com m itm en ts 103 150 122 116 3 4 63 0 6 157

COMMITMENTS RECEIVABLE 191 -

Net com m itm en ts 103 403 124 586 34 63 0 10 103

BY MATURITY All n et com m itm en ts One year or less 22 902 32 542 23 159 9 198

From one to two years 12 363 14 667 8 7 9 9 905

From two to five years 3 4 461 35 597 2 6 7 2 -

Over five years 33 677 41 780 “

Net com m itm en ts 103 4 0 3 124 586 3 4 6 3 0 10 103

Operating le a s e com m itm ents One year or less 15 9 7 4 18 039 19 -

From one to two years 12 480 14 351 18 -

From two to five years 33 926 34 957 - -

Over five years 33 677 41 768 - -

Net com m itm en ts 96 057 109 115 37

The accompanying notes form an integral part of these financial statements

1 7 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA SCHEDULE OF CONTINGENCIES for the year ended 30 June 1999

A gency Adm inistered

19 9 8 -9 9 1997-98 1 9 9 8 -9 9 1997-98

CONTINGENT LOSSES

$ 0 0 0 $'000 $ '000 $'000

Guarantees to Public Trading Enterprises - - 1 3 2 8 21 8 397 834

Other guarantees - - - -

Indemnities - - - 1 530 600

Claims for damages/costs Other . Bank guarantees recoverable

7 820 30 52 000

against investments - 66 - -

. Redundancies - 103 - -

Total con tin gen t lo ss e s 7 82 0 199 1 3 2 8 2 1 8 1 980 434

The accompanying notes form an integral part of these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 7 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

INDEX

NOTE 1 The Department's Program Objective

NOTE 2 Summary of Significant Accounting Policies

NOTE 3 Items charged as expenses

NOTE 4 Items credited as revenue

NOTE 5 Resources received free of charge

NOTE 6 Funding for Long Service Leave

NOTE 7 Extraordinary Items

NOTE 8 Debt

NOTE 9 Personal Benefits Payable

NOTE 10 Employee Provisions and Payables

NOTE 11 Suppliers

NOTE 12 Other Provisions and Payables

NOTE 13 Analysis of Equity

NOTE 14 Receivables

NOTE 15 Investments

NOTE 16 Other Financial Assets

NOTE 17 Land and Buildings

NOTE 18 Infrastructure, Plant and Equipment

NOTE 19 Inventories

NOTE 20 Intangibles

NOTE 21 Other Non Financial Assets

NOTE 22 Interest in Joint Ventures

NOTE 23 Analysis o f Property, Plant, Equipment and Intangibles

NOTE 24 Cash Flow Reconciliation

NOTE 25 Act of Grace Payments, Waivers and Write-offs

NOTE 26 Remuneration of Executives

NOTE 27 Auditor's Remuneration

NOTE 28 Events Occurring After Balance Date

NOTE 29 Loans and Advances

NOTE 30 Financial Instruments

NOTE 31 Receipts o f the Consolidated Revenue Fund

NOTE 32 Expenditure from Special Appropriations

NOTE 33 Expenditure from Annual Appropriations

NOTE 34 Details of Reserved Money Fund

1 8 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

N ote 1 The D ep artm ent's Program O bjective

The Department manages one program consisting o f 7 groups. In 1998-99, as a result o f the restructuring of administrative arrangements on 20 October 1998, the department assumed the current functions of Food Processing Unit o f the Department o f Industries, Science and Resources. Sub-programs relating to Petroleum, Coal and Minerals, Energy, the major component o f Geoscience Research and Mapping and a component of

Resource Sciences Research were transferred to the Department o f Industries, Science and Resources. In addition, a component o f the Rural sub-program was transferred to the Department o f Transport and Regional Services. (Refer to Note 7 fo r further information.)

Portfolio Program

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year ended 30 June 1999

Program Objective:

In partnership with government, industry and the community, assist, manage and promote the development of competitive and sustainable primary and energy industries by:

• increasing productivity o f land, labour and capital in agricultural, fisheries, forest, mineral and energy industries;

• adding value to Australian agricultural, fisheries, forest, mineral and energy products;

• encouraging and facilitating investment in and uptake of Australian products and related services;

• improving access to and functioning o f international markets;

• increasing sustainability o f production, processing and delivery of the associated natural resource base; and

• improving access to appropriate physical and social infrastructure for agricultural, fisheries, forestry, mining and energy enterprises and communities.

It should be noted that the staff numbers (full time equivalent) by group and state are provided in the body of the annual report and have not been duplicated in the financial statements.

N ote 2 Summ ary o f S ign ifican t A ccounting P olicies

(a) Basis of Accounting

The financial statements are required by section 49 of the Financial Management and Accountability Act 1997 and are a general purpose financial report. The statements have been prepared in accordance with Schedule 2 of the Financial Management and Accountability (FMA) Orders made by the Minister for Finance and Administration in December 1998.

The financial statements have been prepared:

• in compliance with Australian Accounting Standards, other authoritative pronouncements o f the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group; and

• having regard to Statements o f Accounting Concepts.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, the Department does not account for the effect o f changing prices on the results or the financial position.

The continuing existence o f the Department in its present form is dependent on government policy and a continuing appropriation by Parliament to fund the Department's administration and programs.

A N N U A L R E P O R T 1 9 9 8 - 9 9 A F F A 1 8 1

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

(b ) Rounding

Amounts have been rounded to the nearest $1 000 except in relation to the following:

• act o f grace payments, waivers and write-offs;

• remuneration of executives;

• remuneration of auditors; and

• details of the Reserved Money Fund.

(c) Foreign Currency Transactions

Amounts payable to and by the Department in foreign currencies have been translated to Australian currency at exchange rates as at 30 June 1999. Overseas financial transactions occurring during the year have been converted at the exchange rate prevailing at the date of transaction.

(d ) L eases

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 o f 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 o f a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception o f the lease and a liability recognised for the same amount. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are charged to the statement o f Agency Revenues and Expenses on a basis which is representative o f the pattern of benefits derived from the leased assets. The net present value o f future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

(e ) P rovision s for Em ployee E ntitlem ents

Leave

The liability for employee entitlements payable to Department personnel for annual leave and other current employee entitlements have been accrued at nominal amounts on the basis o f current salary rates. Liabilities for other employee entitlements, such as long service leave, which are not expected to be paid or settled within 12 months of balance date, are accrued in respect of all employees a t the present value of future cash flows based

on Department o f Finance and Administration advice. In determining the present value o f the liability, the Department has taken into account attrition rates and pay increases through promotion and inflation.

No provision has been made fo r sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees o f the Department is estimated to be less than the annual entitlement fo r sick leave.

Separation and redundancy

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

Superannuation

Staff o f the Department contribute to the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme. Employer contributions to the schemes have been expensed. No liability is shown for superannuation in the Statement of Assets and Liabilities as the employer contributions fully extinguish the accruing liability which is assumed by the Commonwealth.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

(f) Property, Plant and Equipm ent

Purchases of property, plant and equipment are recognised initially at cost in the statement o f Assets and Liabilities. The exception to this treatment is for purchases costing less than $1 500 for information technology (IT) hardware assets and $2 000 for all other assets, which are expensed in the year of acquisition (other than where they form part of a group o f similar items which are significant in total).

The Department has conducted an independent revaluation of infrastructure, plant and equipment assets as at 30 June 1999 in accordance with the deprival method of valuation. Revaluations of all classes of assets are conducted on a progressive basis every three years. The following revaluations have been conducted in previous years:

• Freehold land and buildings were revalued effective 30 June 1998.

• Scientific equipment, office equipment and furniture were revalued effective 30 June 1998

Quarantine and Export Certification Divisions, Meat Inspection Division, and the National Residue Survey operate on the Reserved Money Fund and therefore apply the recoverable amounts test to the value of their non current assets.

Depreciation and amortisation

Property, plant and equipment assets, other than land, are depreciated over their useful lives to the Department using the straight line method. Leasehold improvements are amortised over the unexpired period of the lease or their useful life, whichever is less. Depreciation and 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 as follows:

Non-current physical assets acquired by State agencies on behalf o f the Department from departmental funds have been accounted for in the Statement of Assets and Liabilities. Non-current physical assets acquired by grantees from grants provided by the Department have not been included in the Department's financial statements.

(g ) In tan gib les

Intangibles include computer software and assets such as patents, copyrights, computer models (for economic and scientific analysis) and other intellectual property. Computer software which has been purchased at a value over $2 000 is brought to account on the historical cost basis. Other intangibles costing $2 000 or more with a useful life of greater than one year are brought to account where the historical cost could be reliably determined.

In-house developed software is brought to account where the cost is $50 000 or more and $20 000 for an enhancement.

Intangible assets are amortised over their estimated useful life using the straight line method. Currently the average useful lives are:

(h ) In ven tories

Inventories are comprised of inventories held for sale, being primarily maps and publications and are valued at the lower of cost and net realisable value. Inventories not held for resale are comprised o f consumable stores

Revaluation

1999 1998

Buildings Leasehold improvements Information technology Other plant and equipment

4 0 to 5 0 years

3 to 15 years

L ease term 4 years

40 to 50 years

3 to 15 years

Lease term 4 years

1 9 9 9 1998

Purchased software In house developed software

3 years 5 years

3 years 5 years

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 8 3

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

which are valued at cost. Inventories are brought to account if they are individually greater than $1 000 or where the aggregate value o f a particular store exceeds $5 000.

Costs are assigned to individual items of stock on a first in first out basis. A provision for diminution (for items held for resale) is estimated based on average sales over the previous five years, and applied to the closing stock on hand at the end o f the financial year.

(i) In v estm en ts

All investments are held within various accounts of the Reserved Money Fund. Investments are brought to account at cost, plus any discount on purchase or minus any amortised premium on purchase amortised progressively to 30 June 1999.

Administered investments in controlled entities are not consolidated because their consolidation is relevant only at the Whole o f Government level.

The Commonwealth's investment in other controlled authorities and companies in this portfolio is valued at the aggregate of the Commonwealth's share o f the net assets or net liabilities o f each entity. The carrying amount of each investment and the associated investment reserve is fixed as at 1 July 1997.

(j) Joint Venture

Interest in jo in t ventures are brought to account by including in the respective classifications the share of individual assets employed, liabilities, revenues and expenses incurred.

(k) A dvances to S ta tes and Other O rganisations

The Department administers a number o f loans and advances to States, Territories and other organisations made by the Commonwealth under various agreements. The principal balances outstanding on these advances as at 30 June 1999, as well as related interest received and receivable, are accounted for as "administered items" in the financial statements.

In previous years where all outstanding principal amounts for loans have been waived under the Financial Management and Accountability Act 1997 these loans are shown as fully discharged.

( l ) A gency and Adm inistered Item s

Agency assets, liabilities, revenues and expenses are those which are controlled by the Department, including:

• computers, plant and equipment used in providing goods and services;

• liabilities for employee entitlements;

• revenues from running cost appropriations (or from other appropriations for resources used in providing goods and services);

• revenues from user charges and profits on asset sales deemed to be appropriated to agencies in accordance with section 31 of the Financial Management and Accountability Act 1997; and

• employee expenses and other administrative expenses (including contracting out), incurred in providing goods and services.

Administered items are those items which are controlled by the Government and managed or oversighted by the Department on behalf o f the Government. These items include benefit payments and other taxes, fees and fines.

The purposes of the separation of agency and administered items is to enable assessment o f the administrative efficiency of the Department in providing goods and services.

The basis o f accounting described in Note 2(a) applies to both agency and administered items.

(m ) Levies and Other Charges

Levy moneys are collected by the Department on behalf o f industry and are payable to a number o f trust accounts, Statutory Marketing Authorities, Commonwealth Research and Development Corporations, the States

1 8 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

and Territories and oth er industry boards and authorities which independently estim ate th e level o f receipts expected.

The level of levy collection and disbursement during the year is monitored by the Department against production forecasts prepared by the Australian Bureau of Agricultural and Resource Economics, and the Australian Bureau of Statistics which are refined progressively during the production year.

Levy revenue and receivables have been accounted for on an accrual basis.

The Wool Tax and Tobacco Charge collection process is carried out by the Australian Taxation Office. Reporting is the responsibility of the principal department. Therefore, collections are included in these financial statements as administered items.

(n) R esou rces Free o f Charge

Resources received free o f charge are recognised as revenue where the amounts can be reliably measured. Use of these resources is recognised as an expense. The resources have been costed at fair value.

(o) R eserved M oney Fund B alances

The Reserved Money Fund accounts for public money which has been set aside fo r future purposes, under an enactment, a trustee arrangement or as determined by the Finance Minister.

Accounting treatments and disclosures for the Department's various accounts within the fund vary depending on the nature o f the account's financial activities.

• Accounts which are used as mechanisms for recording receipts and expenditures relating to group activities are included in the Department's administered assets, revenues and expenses.

• Accounts used for passing Commonwealth funding to States and specified industry organisations have been accounted for as administered assets, liabilities, revenues and expenses. The Reserved Money Funds (and the Loan Fund account) relating to primary producers Income Equalisation Deposits (effectively loans to the Commonwealth) are also accounted for as administered funds.

• Accounts which hold private moneys in trust for others are not included in the accrual basis financial statements as funds of the Department or the Commonwealth.

• Reserved Money Fund accounts used for the Department's business activities have been consolidated into Agency assets, liabilities, revenues and expenditure.

(p) Principles o f Consolidation

These statements comprise financial information for all operations controlled by the Department. The financial statements of the Department's commercial entities, Quarantine and Export Certification Divisions, Meat Inspection Division, and the National Residue Survey, are consolidated into the Agency financial statements. The effects of all transactions between the Department, its commercial entities and across its groups have been eliminated.

(q) Com paratives

Where necessary, comparative figures have been adjusted to conform with changes in presentation in the current reporting period.

(r) Provision for Doubtful D ebts

The Department calculates its provision fo r doubtful debts by assessing the probability of collection for each amount that is overdue by 60 days or greater. Bad debts are either provided for in full or written o ff in the year that they are identified.

(s) Taxation

The Department is exempt from all forms o f Commonwealth taxation except fringe benefits tax.

A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

(t) Insurance

A new Commonwealth insurable risk managed fund, called 'Comcover', commenced operations as from 1 July 1998. From that date, the Department has insured with the fund for risks other than workers compensation, which is dealt with via continuing arrangements with Comcare.

The new arrangements replace the previous policy o f non-insurance and require the systematic identification, quantification, reporting and management o f risk across the department.

(u ) Appropriations

Appropriations for departmental operations other than running costs are recognised as revenue to the extent that the appropriations are spent.

Agency Appropriations

Appropriations for departmental running costs have, until 1998-99, been recognised according to their nature under the Running Costs Arrangements, whereby the department receives a base amount o f funding by way of appropriation for running costs each year, and

• amounts unspent at year end are not automatically carried over into the new financial year;

• amounts may be supplemented in any year by borrowings a t a discount against future appropriations. The repayment o f a borrowing is effected by an appropriate reduction in the appropriation actually received in the year of repayment.

With the introduction o f accrual budgeting by the Commonwealth for 1999-2000 any re-appropriation to the Department o f the automatic running costs carryover for 1999-2000 will be by way o f a capital rather than a revenue appropriation. Accordingly the carryover is not recognised as revenue but directly in equity in the

financial statements for 1998-99.

Administered Appropriations

Administered appropriations have normally been recognised as revenue only to the extent that cash is transferred from the Official Commonwealth Public Account to enable administered liabilities to be settled. With the introduction o f accrual budgeting, appropriations for administered items expensed but not paid at the end o f the year are recognised as a receivable, and brought to account as revenue in the case o f Special Appropriations and directly to capital for Annual Appropriations.

(v) Reporting o f Grant A greem en ts

The Department administers a number of grant schemes on behalf o f the Commonwealth. In 1998-99, other than for grants made to other governments, grants made by Department were recognised as liabilities and expenses in the year in which grant agreements are made. The amounts recognised were the full amounts subject to the agreement.

From 1 July 1999, the Department applies a uniform policy for all grants. Grant liabilities are recognised to the extent that:

(i) the services required to be performed by the grantee have been performed; or

(ii) the grant eligibility criteria have been satisfied.

Where grants moneys are paid in advance o f performance or eligibility, a prepayment is recognised. Grants committed to, where performance has not occurred by the end of the financial year, are reported as commitments.

Multi-year grant agreements are deemed to create a present obligation in relation to future years, and hence are reported as project commitments.

(w ) Year 2 0 0 0 C om pliance o f Com puter S ystem s and Infrastructure

The Department has established a project to identify and rectify problems with its computer systems and infrastructure. The project is based on a risk managed approach and is aimed at ensuring that the Department's operations are not adversely affected by the Year 2000 issue.

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

1 8 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 3 Item s ch arged a s e x p e n se s

Employees:

remuneration for services provided separation and redundancy payments

Suppliers:

supply o f goods and services operating lease rentals

Depreciation and amortisation

Write down o f assets:

financial assets - receivables non-financial assets - infrastructure, plant and equipment non-financial assets - inventories

Net losses for sales of non-financial assets: infrastructure, plant and equipment

Other costs o f providing goods and services

Expenses o f trust account businesses: employees suppliers operating lease rentals depreciation and amortisation

interest write down of assets net losses from sales o f assets other costs of providing goods and services

1 9 9 8 -9 9 1997-98

$ '000 $'000

9 0 92 9 102 769

1 165 1 626

9 2 0 9 4 104 395

4 5 9 3 4 64 486

6 5 9 7 17 078

5 2 53 1 81 564

5 88 0 10 071

( 2 )

188 -

50 0 127

68 8 125

101 1 294

4 6 7 427

1 2 1 4 3 5 123 203

50 33 6 39 859

5 53 8 5 770

5 3 8 4 4 344

126 7 864

1 113 857

67 34

10 3 4 7 5 259

1 9 4 3 4 6 187 190

3 4 6 107 385 066

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

NOTE 3 Ite m s charged a s e x p e n se s (con tin u ed )

A dm inistered Subsidies Levies passed on:

to Commonwealth entities to State and Territory governments to private sector entities

Personal benefits:

Drought Relief Payments to private sector entities Other benefits paid

Grants and parliamentary appropriations passed on: to Commonwealth entities to State and Territory governments to private sector entities to non-profit entities

Depreciation and amortisation Net write down of financial assets - receivables Interest and other financing costs - deposits Industry Reserved Money Funds expenses Other expenses

NOTE 4 Ite m s credited a s revenue

Sales o f goods and services

Net gains from sale o f non-financial assets: infrastructure, plant and equipment

Other revenues from independent sources

Revenues of trust account businesses: sales o f goods and services net gains from sales of assets interest levies and other contributions received resources received free o f charge - independent bodies other revenues from independent sources

1 9 9 8 -9 9 1997-98

$ '000 $'000

168 767

6 9 4 3 3 4 746 344

- 220 259

- 2 006

6 9 4 3 3 4 968 609

28 94 8 60 481

33 39 3 26 812

62 341 87 293

1 1 1 6 1 3 80 607

9 4 6 2 2 156 276

1 138 58 591

- 8 108

2 0 7 37 3 303 582

150 489

5 6 5 6 53 538

13 8 9 7 13 628

8 217 18 862

1 24 0 936

99 3 37 6 1 447 704

26 9 5 5 33 643

4 7 4 15

2 4 5 7 1 983

107 82 7 108 584

97 54

41 1 371

5 84 6 6 143

671 381

4 158 1 285

119 0 1 0 116 818

14 8 8 9 6 152 459

1 8 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ '0 0 0 $'000

NOTE 4 Item s cred ited a s rev en u e (con tin u ed )

Adm inistered Taxes, levies, fees and fines:

petroleum royalties, fees and charges 329 106

primary industry levies 59 3 0 7 7 509 102

wool tax 8 2 503 98 214

primary industry charges 3 3 7 9 9 904

licence fees 79 6 443

6 7 9 75 5 946 769

Interest and dividends:

interest from other governments - State and Territory debt 5 0 6 0 19 732

interest from other sources - Commonwealth authorities 20 2 1 5 62 423

interest from other sources - NCDs and Bonds 5 9 0 3 954

25 8 6 5 86 109

Industry contributions 10 0 6 2 12 625

Other revenues Write back o f provision for doubtful debts 6 2 3 7

Maralinga rehabilitation - UK contribution 5 67 1 6 705

Fisheries Research Development Corporation recovery 3 6 1 2 -

War Service Land Settlement receipts 2 1 4 2 3 852

Meat industry restructuring recoveries 2 7 6 8 -

Reserve Moneys Funds receipts 2 9 8 2 -

Miscellaneous 3 3 0 6 3 328

26 7 1 8 13 885

7 4 2 4 0 0 1 045 503

NOTE 5 R esou rces received free o f ch arge

AGSO building - cost o f property, plant & equipment and other costs from Administered - 12 871

Department o f Finance and Administration - provision o f accounting & payroll services 4 7

- Comcover insurance premium 191

Australian National Audit Office - audit services 165 163

Federal Airports Corporation - rent on International Airport Building - 257

3 6 0 13 298

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 8 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 7 Extraordinary Ite m s (co n tin u ed )

In respect of programs relinquished the following assets and liabilities were transferred at the date of transfer:

Assets Cash Receivables Other financial assets

Property, Plant and Equipment Inventories Intangibles

Other non financial assets

Total assets relinquished

Liabilities Creditors Provisions Other

Total liabilities relinquished

Net (assets)/liabilities relinquished

Net revenue/(expense) from restructuring

Net r e v e n u e /(e x p e n se ) from extraordinary item s

Administered

Note 7B - Restructuring

In respect of programs relinquished the following assets and liabilities were transferred at the date of transfer:

Assets Cash Receivables Investments Accrued Revenues

Property, Plant and Equipment Other

Total assets relinquished

Liabilities Creditors

Total liabilities relinquished

Net (assets)/liabilities relinquished

Net expenses from restructuring

1 9 9 8 -9 9 1997-98

$ 0 0 0 $'000

( 4 5 7 ) ( 2 6 7 6 ) -

( 4 8 2 ) -

( 20 0 4 1 ) -

( 5 0 7 ) -

( 8 5 9 ) -

( 7 3 7 ) -

( 2 5 7 5 9 ) -

1 99 1 19 5 0 4 266

180 -

21 6 7 5 266

( 4 0 8 4 ) 266

( 4 2 3 5 ) 266

( 4 2 3 5 ) 266

( 9 8 2 5 )

( 8 1 3 7 8 9 )

( 3 1 0 7 2 )

( 3 4 9 0 )

( 5 3 5 3 )

( 1 8 6 8 ) '

( 8 6 5 3 9 7 ) -

3 3 4 -

3 3 4 -

( 8 6 5 0 6 3 ) -

( 8 6 5 0 6 3 )

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year ended 3 0 June 1999

NOTE 8 Debt

Loans from future running costs Maturity schedule for loans:

Payable within one year

Adm inistered

Income Equalisation Deposits (current)

1 9 9 8 -9 9 $ '000

25 6 178

1997-98 $'000

9 819

9 819

9 819

443 735

NOTE 9 Personal B enefits Payable

Adm inistered

Drought relief payments 891 1 135

NOTE 10 Em ployee Provisions and P ayables

Salaries and wages 3 101 3 709

Leave 56 227 74 259

Separations and redundancy payments 3 391 4 050

Accrued performance pay and allowances 45

Other 244 518

62 96 3 82 581

NOTE 11 Suppliers Trade creditors 4 213 10 857

Operating lease rentals 39 0 175

4 6 0 3 11 032

NOTE 12 Other Provisions and P ayables

Unearned revenue 17 769 12 867

Revenue rebate 4 775 3 106

Other creditors 1 7 6 4 6 491

24 30 8 22 464

Adm inistered

Interest payable 2 27 7 3 986

Industry Contributions received in advance - 5 111

Accrued grants and levies to be passed on 27 190 90 917

Other Creditors 2 08 8 2 446

31 55 5 102 460

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 13 A nalysis o f Equity

1 9 9 8 -9 9 1997-98

$ 0 0 0 $'000

Capital Accum ulated A sset Total Total

resu lts revaluation eq u ity equity

reserve

$'000 $ '000 $'000 $ '0 0 0

Balance a t 1 July 1 9 9 8 ( 3 6 4 4 ) 3 0 6 1 2 8 277 35 24 5 ( 16 300)

Operating result - ( 28 3 8 4 ) - ( 28 3 8 4 ) 42 268

Capital contribution - - - - 1 000

Running c o s ts carryover for 1 9 9 9 -2 0 0 0 * - 6 4 3 9 - 6 4 3 9 -

Net revaluation in crea ses - - 3 255 3 25 5 8 277

Balance a t 30 June 1 9 9 9 ( 3 6 4 4 ) 8 6 6 7 11 53 2 16 5 5 5 35 245

*Unspent agency appropriations have been recognised as a receivable and a direct increase in equity, in accordance with revised accounting treatm ent for 1998-99 - see Note 2(u).

Adm inistered

1 9 9 8 -9 9 1997-98

$ '000 $'000

Accum ulated A dm inistered Total Total

resu lts in v estm en t eq u ity equity

reserve

$ '000 $ '000 $ '0 0 0

Balance a t 1 July 1 9 9 8 ** 9 1 6 9 0 5 5 3 0 8 665 6 2 2 5 5 7 0 6 441 557

Net ch a n g e in ad m in istered a s s e t s ( 7 8 1 6 8 9 ) - ( 7 8 1 6 8 9 ) ( 215 987)

Transfers to(from ) reserv es *** - (2 5 4 8 5 6 9 ) (2 5 4 8 5 6 9 )

Balance a t 30 June 1 9 9 9 13 5 21 6 2 7 6 0 09 6 2 8 9 5 3 1 2 6 225 570

* * The opening balance o f the Administered Investment Reserve has been reduced by $409 231 000 to reflect the correct amount stated for investment in entities controlled by the Commonwealth (see Note 15).

* * * A number of portfolio entities ceased to be controlled by the Commonwealth during the year, or were transferred to another portfolio (see Note 15).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 1 9 3

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ '000 $'000

NOTE 14 R eceivab les

Goods and services 14 234 15 281

Appropriation receivable 32 187 45 121

Other debtors 2 255 1 330

4 8 6 7 6 61 732

less provision for doubtful debts (5 8 5 ) (526)

48 091 61 206

Receivables (gross) which are overdue are aged as follows:

Overdue by less than 30 days 2 789 3 027

Overdue by 30 to 60 days 786 1 375

Overdue by greater than 60 days 2 380 2 919

A dm inistered

Taxes, levies, fees and fines 5 55 2 3 117

less provision for doubtful debts ( 3 6 3 ) ( 983)

5 189 2 134

Appropriations receivable:

Special appropriations 30 220 -

Reimbursement o f appropriation passed on 3 6 1 2

33 8 3 2 -

Other loans - 5 254

less provision for doubtful debts (5 254)

Industry contributions - 759

Loans and advances (see Note 29) 4 8 4 3 6 874 029

less provision for unrecoverable amounts (2 5 3 8 ) (2 538)

4 5 89 8 871 491

Net receivables 8 4 91 9 874 384

Receivables (gross) which are overdue are aged as follows:

Overdue by less than 30 days 111 81

Overdue by 30 to 60 days 124 220

Overdue by greater than 60 days 5 31 7 8 094

Maturity schedule for loans: Within one year 5 6 0 3 19 987

Later than one year 4 2 8 3 3 854 042

4 8 4 3 6 874 029

1 9 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 15 In v estm en ts

Market value At c o s t At cost

at 30 June 1999 1 9 9 8 -9 9 1997-98

$'000 $ 0 0 0 $'000

Negotiable Certificates o f Deposit 8 800 8 8 0 0 7 100

8 800 8 8 0 0 7 100

Adm inistered

Commonwealth Bonds/Stocks 250 000 2 5 0 0 0 0 6 051

State Government Bonds/Stocks - 4 022

Semi Government Securities - 4 929

Bank Bills/Negotiable Certificates of Deposit 18 218 18 21 8 33 455

268 218 2 6 8 21 8 48 457

Investment in Commonwealth entities: (value o f net assets at 1 July 1997) Australian Wheat Board 1 3 2 4 4 2 7 1 324 427

Australian Dairy Corporation 4 6 59 6 46 596

Australian Dried Fruits Board 2 8 9 6 2 896

Australian Fisheries Management Authority 19 6 0 0 19 600

Australian Horticultural Corporation 5 5 2 4 5 524

Australian Meat and Livestock Corporation * - 39 498

Australian Pork Corporation 2 38 6 2 386

Australian Wine and Brandy Corporation 1 64 7 1 647

Australian Wool Research and Promotion Organisation 1 1 2 21 4 112 214

Clean Food Marketing Australia Ltd * - 321

Cotton Research and Development Corporation 11 167 11 167

Dairy Research and Development Corporation 9 5 7 4 9 574

Energy Research and Development Corporation * * - ( 1 832)

Fisheries Research and Development Corporation 7 60 5 7 605

Forest and Wood Products Research and Development Corporation 3 7 2 7 3 727

Grains Research and Development Corporation 1 0 7 3 4 1 107 341

Grape and Wine Research and Development Corporation 1 3 8 8 1 388

Horticultural Research and Development Corporation 10 7 6 1 10 761

Land and Water Resources Research and Development Corporation 4 3 6 2 4 362

Meat Industry Council * - ( 135)

Meat Research Corporation * - 37 257

National Registration Authority for Agricultural and Veterinary Chemicals 2 4 9 0

2 490 Pig Research and Development Corporation 6 3 5 0 6 350

Rural Industries Research and Development Corporation 5 10 5 5 105

Snowy Mountains Hydro-electric Authority * * - 2 445 628

Sugar Research and Development Corporation 5 3 1 4 5 314

Tobacco Research and Development Corporation 1 8 7 8 1 878

Wool International 8 1 0 4 2 9 810 429

Associated entities: Joint Coal Board * * - 27 832

Murray-Darling Basin Commission 2 5 7 3 1 5 257 315

Total Net Assets - 2 7 6 0 0 9 6 5 308 665

Total Investments 268 218 3 0 2 8 3 1 4 5 357 122

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 15 In v estm en ts (con tin u ed )

The investment in Commonwealth entities represents the net asset position o f all portfolio entities under Ministerial direction. The operations o f these entities are not controlled by the Department, however the Department does oversee the operations of these entities on behalf o f the government,

and therefore they are reported as administered assets. Each o f the entities have been created by legislation or cabinet agreement and report financial statement information to Parliament in their respective annual reports.

The values reported above are based on 30 June 1997 financial statements, the date at which the application of this accounting policy on disclosure commenced. The 1997/98 financial statements incorrectly reported the value of net assets as at 30 June 1998. An adjustment o f $409 231 000 was made to the opening balance of the Administered Investment Reserve (see Note 13) to correct this treatment, and the comparative figures shown above have also been amended.

* These entities either ceased to exist, or were replaced by entities formed under the control of the relevant industry groups and therefore are no longer controlled by the Commonwealth for financial reporting purposes.

* * As a result o f Administrative Arrangement Orders during the year these entities were transferred to the portfolio o f Industry, Science and Resources.

1 9 9 8 -9 9 $'000

1997-98 $'000

1 9 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the ye ar ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ 0 0 0 $'000

NOTE 1 6 Other Financial A ssets

Accrued revenue 5 29 2 11 193

Adm inistered

Accrued revenue:

taxes and levies 4 9 78 7 65 018

interest 1 331 1 956

51 118 66 974

NOTE 17 Land and Buildings

Land - a t valuation (30/6/98) 9 6 5 1 055

Buildings - at cost 2 46 1 -

less accumulated depreciation ( 54)

2 40 7 -

Buildings - at (30/6/94) - 186

less accumulated depredation - ( 17)

- 169

Buildings - at valuation (30/6/98) 3 45 9 3 555

less accumulated depreciation ( 9 4 9 ) ( 858)

2 51 0 2 697

Leasehold improvements - at cost 2 93 6 10 385

less accumulated depreciation ( 9 7 5 ) ( 1 091)

1 96 1 9 294

Leasehold improvements - at valuation (30/6/96) 6 5 6 2 8 656

less accumulated depreciation ( 4 127) ( 5 517)

2 4 3 5 3 139

Total Land and Buildings 10 278 16 354

Adm inistered

Buildings - under construction a t cost 3 35 5 3 119

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ 0 0 0 $'000

NOTE 18 Infrastructure, Plant and Equipm ent

Infrastructure, plant and equipment - at cost 3 627 56 098

less accumulated depredation ( 1 8 9 0 ) ( 37 138)

1 73 7 18 960

Infrastructure, plant and equipment - at valuation (30/6/93) - 2 O il

less accumulated depreciation “ ( 1 542)

- 469

Infrastructure, plant and equipment - at valuation (30/6/98) 8 735 24 179

less accumulated depreciation ( 4 7 3 4 ) ( 12 911)

4 0 0 1 11 268

Infrastructure, plant and equipment - a t valuation (30/6/99) 30 4 7 8 -

less accumulated depreciation ( 16 7 1 2 )

13 766 -

Total Infrastructure, plant and equipment 19 5 0 4 30 697

Revaluations were as at 30 June 1999 in accordance with the progressive revaluation policy stated at Note 2 and were completed by the Australian Valuation Office. Revaluation increments o f $3,268,108 were transferred to the Asset Revaluation Reserve, and $13 000 in realised gains on disposal of revalued assets was recognised from the Reserve as revenue. Revaluation decrements of $12 176 were expensed.

Adm inistered

Infrastructure, plant and equipment - 2 660

less accumulated depreciation - ( 1 312)

- 1 348

Brucellosis and Tuberculosis Eradication Campaign fBTECI Assets Since 1988-89, the Commonwealth contribution to BTEC operations includes a component for the States and Territories to purchase assets such as motor vehicles, laboratory, field and office equipment. The Commonwealth maintains an equitable interest in the assets and is entitled to a 20% share of disposal proceeds. As the grantee is under no present obligation to repay the Department at year end, no asset is brought to account.

1 9 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

-

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ '0 0 0 $'000

NOTE 19 In ven tories

Inventories held for sale 2 35 8 7 175

less provision for diminution C 1 4 2 2 ) ( 5 953)

9 3 6 1 222

Inventories not held for sale 62 5 1 385

Total inventories 1 56 1 2 607

NOTE 2 0 In tan gib les

Computer Software, purchased - at cost 3 7 7 1 7 284

less accumulated depreciation ( 3 2 6 1 ) ( 4 604)

5 1 0 2 680

Computer Software, purchased - at valuation (30/6/93) 60 60

less accumulated depreciation ( 6 0 ) ( 60)

Computer Software, internally developed - at cost 8 04 6 4 621

less accumulated depreciation ( 3 3 6 8 ) ( 1 914)

4 67 8 2 707

Computer software, internally developed - work in progress 4 84 1 2 094

Total intangibles 10 0 2 9 7 481

NOTE 21 Other Non Financial A ssets

Prepayments 8 8 1 4 526

Adm inistered

Prepayments 2 22 9 4 135

Inventories not held for sale 1 0 2 8 1 172

3 25 7 5 307

A N N U A L R E P O R T 1 9 9 8 - 9 9 1 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the ye ar ended 30 June 1999

NOTE 22 In terest in Joint Ventures

A dm inistered

The Department is involved in an administered project with the Malaysian government to build a facilityto be used to determine the method to raise Sterile Old World Screw Worm Flies. The facility is being constructed on land owned by the Malaysian government, with funds for the building being provided by the Department.

Interest in the jo in t venture is included in the accounts as follows:

Building - under construction at cost (Note 17)

There were no products received from the jo in t venture, as the facility is still under construction.

Capital expenditure commitments of $ 40 000 (1997-98 $291,521) were included in the Schedule of Commitments. There were $ nil (1997-98 $ nil) contingent liabilities at 30 June 1999.

1 9 9 8 -9 9 $'0 00

3 35 5

1997-98 $'000

3 119

2 0 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 23 A nalysis o f Property, Plant, Equipment and In tan gib les

Land Buildings Total Land

and

Buildings

Infrastructure Plant and Equipment

Intangibles Total

Gross value at

$'000 $'000 $'000 $'000 $'000 $'000

1 July 1998 1 055 22 781 23 836 82 288 14 058 120 182

Additions Revaluations

2 614 2 614 7 924

( 3 926)

5 591

( 3 926)

16 129

Disposals ( 90) ( 1 975) ( 2 065) ( 9 968) ( 306) ( 12 339)

Transfers on restructure ( 8 083) ( 8 083) ( 33 453) ( 2 719) ( 44 255)

Other m ovem ents 81 81 ( 25) 94 150

Sub-total at 30 June 1999 965 15 418 16 383 42 840 16 718 75 941

Accumulated depreciation at 1 July 1998

Depreciation on a ssets '

7 482 7 482 51 591 6 577 65 650

held at 1 July 1998 1 372 1 372 5 937 1 661 8 970

Depreciation for additions Revaluation adjustm ent

132 132 1 579

( 7 182)

602

( 7 182)

2 313

Disposals ( 1 892) ( 1 892) ( 7 631) ( 293) ( 9 816)

Transfers on restructure ( 978) ( 978) ( 20 517) ( 1 860) ( 23 355)

Other m ovem ents Accumulated depreciation

( 11) ( ID ( 441) 2 ( 450)

at 30 June 1999 - 6 105 6 105 23 336 6 689 36 130

Net book value at 30 June 1999 965 9 313 10 278 19 504 10 029 39 811

Net book value at 1 July 1998 1 055 15 299 16 354 30 697 7 481 54 532

Summary of balances of a ss e ts at valuation as at 30 June 1999

As at 30 June 1999

Gross value 965 4 177 5 142 39 213 60 44 415

Accumulated depreciation/ amortisation ( 1 558) ( 1 558) ( 21 446) ( 60) ( 23 064)

Net book value 965 2 619 3 584 17 767 - 21 351

As at 30 June 1998

Gross value 1 055 12 397 13 452 26 190 60 39 702

Accumulated depreciation/

amortisation - ( 6 392) ( 6 392) (1 4 453) ( 60) ( 20 905)

Net book value 1 055 6 005 7 060 11 737 - 18 797

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 0 1

A P P E N D I X 1 0

NOTE 23 Analysis o f Property, Plant, Equipm ent and In ta n g ib le s (continued)

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 3 0 June 1999

Land

$ 0 0 0

Gross value at 1 July 1998 -

Additions Revaluations

Disposals

Transfer on restructuring (Note 7B) Sub-total at 30 June 1999 -

Accumulated depreciation at 1 July 1998 -Depreciation on a ssets held at 1 July 1998 Depreciation for additions Revaluation adjustm ent

Disposals Transfer on restructuring (N ote 7B) Accumulated depreciation at 30 June 1999 -

Net book value at 30 June 1999 -

Net book value at 1 July 1998 -

Buildings Total Land Infrastructure Total and Plant and

Buildings Equipment

$ 0 0 0 $'000 $'000 $'000

3 119 3 119 2 660 5 779

236 236 4 155 4 391

( 6 815) ( 6 815)

3 355 3 355 - 3 355

- - 1 3 1 2 1 312

- 150 150

- -

( 1 462) ( 1 462)

3 355 3 355 - 3 355

3 119 3 119 1 348 4 467

2 0 2 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 24 Cash Flow R econciliation

Reconciliation of net cost of services to net cash provided by operating activities.

1 9 9 8 -9 9 $ 0 0 0

1997-98 $'000

Net cost o f services ( 197 2 1 1 ) ( 232 607)

Revenue from Government 17 9 50 1 274 609

Extraordinary items ( 4 2 3 5 ) 266

Operating result ( 21 9 4 5 ) 42 268

Resources received free o f charge ( 9 710)

Depreciation and amortisation 11 26 4 14 534

Net write-down of non current assets 267 505

Realised gains from Asset Revaluation Reserve ( 14) -

Loss/(gain) on sale o f assets ( 3 8 9 ) 1 259

Transfers of infrastructure, plant and equipment and intangibles on restructuring 20 9 0 0 -

Adjustments to property, plant and equipment and intangibles ( 2 5 9 ) 101

Running costs carryover for 1999-2000 6 4 3 9 -

Changes in assets and liabilities:

Decrease/(increase) in receivables 13 4 0 3 ( 20 880)

Decrease/(increase) in other financial assets 2 5 0 6 ( 1 939)

Decrease/(increase) in inventories 1 0 4 5 261

Decrease/(increase) in other non-financial assets 3 7 0 1 510

Increase/(decrease) in initial recognition o f loans from future running costs ( 9 8 1 9 ) ( 3 397)

Increase/(decrease) in employee liabilities ( 19 4 3 6 ) ( 7 882)

Increase/(decrease) in supplier liabilities ( 7 0 9 6 ) 3 030

Increase/(decrease) in other liabilities 6 0 0 4 5 804

Net cash provided by operating activities 24 464

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

-

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ '0 00 $'000

NOTE 2 4 Cash Flow Reconciliation (con tin u ed )

Adm inistered

Reconciliation of net contribution(cost) to Government to net cash provided by operating activities.

Net contribution/(cost) to Government ( 2 5 0 9 7 6 ) ( 388 316)

Cash from Commonwealth Public Account for operations 1 0 4 4 4 6 8 1 389 255

Cash to Commonwealth Public Account for operations ( 7 4 0 3 3 8 ) (1 109 350)

Special appropriations accrued 30 220

Resources provided free of charge ( 107 576)

83 3 7 4 ( 215 987)

Extraordinary item - restructuring ( 8 6 5 0 6 3 )

Net increase in administered assets from operations ( 78 1 6 8 9 ) ( 215 987)

Depreciation and amortisation 150 489

Resources provided free o f charge - 107 576

Net writedown o f investments 39 53 538

Transfers of property, plant and equipment and investments on restructuring 8 5 0 214

Changes in assets and liabilities:

Decrease/(increase) in receivables ( 36 1 2 8 ) ( 3 608)

Decrease/C increase) in accrued revenue 15 84 0 7 127

Decrease/(increase) in investments - 49

Decrease/(increase) in other assets 2 0 5 0 ( 585)

Increase/(decrease) in personal benefits payable ( 2 4 4 ) ( 1 476)

Increase/(decrease) in other liabilities ( 70 9 0 4 ) 28 107

Net cash from operating activities ( 20 6 7 2 ) ( 24 770)

h -

2 0 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year ended 30 June 1999

NOTE 25 Act o f Grace P aym en ts, W aivers and W rite-offs

During the financial year there were no Agency act of grace payments in accordance with directions given under section 33 o f the Financial Management and Accountability Act 1997 (1997-98 $ nil).

1 9 9 8 -9 9 $'000

1997-98 $'000

There were no Agency waivers o f rights to payments of money pursuant to section 34 o f the Financial Management and Accountability Act 1997 (1997-98 $ nil).

Write-offs Amounts written o ff after consideration by departmental delegates 1 1 2 2 3 707 697

Adm inistered

During the year there was one Administered Act o f Grace payment made in accordance with directions given under section 33 o f the Financial Management and Accountability Act 1997 in the amount of $844 (1997-98 $ nil).

Waivers o f rights to payment o f money pursuant to section 34 o f the Financial Management and Accountability Act 1997 relating to Commonwealth advances administered by the Department are shown below. These include waivers o f principal not yet due for payment waived in accordance with the provisions that were amended by section 34 of the Financial Management

and Accountability Act 1997.

Num ber 1 9 9 8 -9 9 1997-98

$ $

Loans to individuals under the Farm Household Act Levy penalty Advances to States and Territories

664 5 2 5 3 7 2 1

1 2 0 9 171 -

1 39 0 0 0 127 951 557

5 5 0 1 8 9 2 127 951 557

Administered amounts written o ff after consideration by departmental delegates 47 3 54 0 837 884

No action was taken by the Department under the penalty provisions of the Financial Management and Accountability Act 1997 during the financial year in respect of administered items (1997-98 $ nil).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

2 0 5

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 26 R em uneration o f E xecutives The aggregate remuneration and performance pay received or receivable by all executive officers is as follows: 1 9 9 8 -9 9 1997-98

Number Number

R em uneration Bands Total remuneration:

$100 000 to $110 000 4 36

$110 001 to $120 000 20 13

$120 001 to $130 000 13 10

$130 001 to $140 000 7 10

$140 001 to $150 000 8 5

$150 001 to $160 000 3 3

$160 001 to $170 000 1 1

$170 001 to $180 000 3 1

$180 001 to $190 000 3 2

$200 001 to $210 000 1 “

$210 001 to $220 000 - 1

$230 001 to $240 000 2 -

$240 001 to $250 000 1 -

$250 001 to $260 000 1

67 82

19 9 8 -9 9 1997-98

$ $

Total remuneration o f executive officers shown above 9 389 259 9 919 688

Total performance pay paid during the year to executive officers shown above 220 8 4 6 -

Total separation and redundancy payments during the year to executive officers shown above 553 177 397 741

NOTE 27 A uditor's R em uneration

Financial statement audit services are provided free of charge to the Department by the Australian National Audit Office. Quarantine and Export Certification Division, Meat Inspection Division and the National Residue Survey operate on the Reserved Money Fund and are required to remit an am ount equivalent to the cost o f their audits into the Consolidated Revenue Fund. The fair value o f audit services provided was:

- at cost 1 7 8 8 2 9 190 000

- resource received free o f charge 165 0 0 0 162 500

343 8 2 9 352 500

2 0 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 28 Events Occurring After B alance Date

Administered

At balance date legislation had been passed by Parliament, effective from 1 July 1999, which reduces the investment in Commonwealth entities for the Australian Wheat Board and Wool International.

The Australian Wheat Board operated under the Wheat Marketing Act 1989 and was responsible for various wheat marketing functions. The Wheat Marketing Legislation Amendment Act 1998 provided for the cessation o f statutory wheat marketing on 30 June 1999. From 1 July 1999 responsibility for all commercial aspects o f wheat marketing was transferred to a grower owned and controlled company, AWB Ltd, operating under Corporations Law.

The Wool International Privatisation Act 1999 was passed by the Federal Parliament on 31 May 1999, and received Royal Assent on 9 June 1999.

Wool International, the statutory authority responsible for disposal of the wool stockpile, was converted into a Corporations Law company, known as WoolStock Australia Limited, on 1 July 1999. Ownership of the company, and therefore of the wool stockpile, has passed to the Wool International unit holders, who

became the shareholders o f WoolStock on that date. The Board of WoolStock will manage the sale of the stockpile in a commercial manner, in the interest of their shareholders, in accordance with Corporations Law.

The decrease in the investment in Commonwealth entities will be $1 324 427 000 for the Australian Wheat Board and $810 429 000 for Wool International.

1 9 9 8 -9 9 $

1997-98

$

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

III

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ $

NOTE 29 Loans and A dvances

A dm inistered

Advances to Commonwealth Instrumentalities Snowy Mountains Hydro-electric Authority under the Snowy Mountains Hydro-electric Power Act 1949:

. principal due within 12 months - 9 347

. balance due later than one year - 807 516

Transferred to DISR

Advances to Privatelv Owned Oraanisations Letona Co-operative Limited - concessional loan:

816 863

. principal due within 12 months 2 538 2 538

. balance due later than one year

Advances to States and Territories Brigalow Lands Agreement under the Brigaiow Lands Agreement Act 1962:

2 538 2 538

. principal due within 12 months 267 267

. balance due later than one year 784 1 051

Bovine Brucellosis and Tuberculosis Eradication Campaign Loans:

1 0 5 1 1 318

. principal due within 12 months 139 145

. balance due later than one year 1 0 3 9 1 200

Dairy Adjustment Agreements under the Marginal Dairy Farms Agreements Act 1970, and the Dairy Adjustment Act 1974:

1 178 1 345

. principal due within 12 months 133 171

. balance due later than one year 29 161

Rural Adjustment Scheme (first part) under the State Grants (Rural Adjustment) Acts:

162 332

. principal due within 12 months 4 257 5 530

. balance due later than one year 15 748 20 004

20 00 5 25 534

(The value o f advances under the second part o f the scheme is unknown, as the States have the power to convert advances to grants, and repayments are contingent on amounts received by States. The current estimated receipts for this part o f the scheme is $500,000 per year.)

2 0 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 8 -9 9 1997-98

$ $

NOTE 29 Loans an d A dvan ces (c o n tin u e d )

Rural Reconstruction Scheme under the State Grants (Rural Reconstruction) Acts :

. principal due within 12 months 2

. balance due later than one year -

- 2

Sewerage Agreements under the Sewerage Agreement Acts : . principal due within 12 months 35 8 329

. balance due later than one year 11 4 1 7 11 775

11 77 5 12 104

Softwood Forestry Agreements under the Softwood Forestry Agreement Acts:

. principal due within 12 months 116

. balance due later than one year - 763

Tasmania Forestry Reading loan:

- 879

. principal due within 12 months - 1 100

. balance due later than one year - -

War Service Land Settlement under the State Grants

- 1 100

(W ar Service Land Settlement) Act 1952 :

. principal due within 12 months 94 125

. balance due later than one year 150 244

Water Resources Assistance Program loans:

24 4 369

• principal due within 12 months 256 230

. balance due later than one year 11 0 7 3 11 174

11 3 2 9 11 404

Harding River Dam loans:

. principal due within 12 months 99 87

. balance due later than one year 55 154

154 241

Total loans and advances 48 4 3 6 874 029

Loans to State/Territory governments 45 89 8 54 628

Loans to other entities 2 53 8 819 401

Total 48 43 6 874 029

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 0 9

N ature of underlying in stru m e n t (including significant te rm s & conditions affecting th e am ount, tim ing and certain ty of cash flow s)

Balances at bank represent balances in the Collector's Receipt accounts at the Reserve Bank of Australia which had not been transferred to the Department of Finance and Administration

on 30 June 1999, and balances with commercial banks. Interest is earned on the daily balance at the prevailing daily rate.

All receivables are with entities external to the Commonwealth. Normal credit terms are net 28 days (1997-98: 28 days).

Loans are program funds lent to Commonwealth instrumentalities, States and Territories, and other entities, and disclosed in the Administered statement of assets and liabilities. The terms of repayment of principal and payment of interest are in accordance with individual agreements. Effective interests rates average 7.5%

(1997-98: 8.24%).

Investments in securities and negotiable certificates of deposit are readily realisable in cash, but are normally held until maturity.

Accrued revenue are amounts due from receivers of services. Accrued interests are amounts due from borrowers and unpaid interests on investments. Accrued taxes and levies are amounts due from industry in relation to their fiscal obligations.

N ature of underlying in stru m e n t (including significant te rm s & conditions affecting th e am ount, tim ing and certa in ty of cash flow s)

All creditors are entities that are not part of the Commonwealth legal entity. Settlement is usually made net 28 days.

Deposits lodged by eligible primary producers. Repayable on demand. Interest is accrued as it falls due.

The Commonwealth makes multi-year funding agreements with State and Territory Governments under various programs to meet its public policy objectives. Funds are provided annually in accordance with these agreements. As these grants are not contractual in nature, no further disclosures required by AAS33 are made in this note.

The Department administers other grants which generally cover only the financial year in which the agreement is made.

The guarantees have been given in relation to the borrowing obligations of certain Commonwealth entities.

The guarantee was given in relation to the borrowing obligation of a State authority.

NOTE 30 Financial In s tr u m e n ts (c o n tin u e d )

(a) Terms, conditions & accounting policies

Financial Instrum ent Notes

Indemnities

Other contingencies

Accounting Policies and Methods Nature of underlying instrument

(including recognition criteria and m easurem ent basis) (including significant term s & conditions affecting the __ amount, timing and certainty of cash flows)

The maximum amount payable under the indemnities given is disclosed in the Schedule of Contingencies. At the time of completion of the financial statements, there was no reason to believe that the guarantees would be called upon, and recognition of the liability was therefore not required.

Other contingencies relate to litigation action pending against the Commonwealth and other liabilities the future materialisation of which is uncertain, and are disclosed in the Schedule of Contingencies.

Indemnities have been given in respect of an underwritten borrowing of a Commonwealth entity and in respect of contracts with a number of organisations performing work in relation to the rehabilitation of a former atomic test site.

Legal action pending against and contested by the Commonwealth, and other contingent liabilities.

Total Weighted

Average Effective Interest Rate

98-99 97-98 98-99 97-98 98-99 97-98

$000 $'000 $ 0 0 0 $'000 °/o %

1 145 2 224 1 854 3 250 2.27 1.23

2 139 16 727 4.76 4.91

15 038 14 173 15 038 14 173 n/a n/a

8 800 7 100 5.07 5.03

5 292 10 611 5 292 10 611 n/a n/a

21 475 27 008 33 123 51 861

108 429 161 141

10 623 13 384 10 623 13 384 n/a n/a

6 353 8 750 6 353 8 750

45 454 171 454 5.51 n/a

17 021 22 588 17 147 22 588

91 874 125 896

Weighted Average Effective Interest Rate

73

O

v£>

vO 00

vO

vO

98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98 98-99 97-98

$ 0 0 0 $'000 $ 0 0 0 $'000 $ 0 0 0 $'000 $ 0 0 0 $'000 $ 0 0 0 $'000

Financial Assets

Cash Reserved Money Fund investment 15 12 927 13 054 250 000 443 300

Receivables for goods, services and fees 14

Loans to state and territory governments 14 & 29 5 603 8103 5 250 5 739 13 141 14 569 21 904 26 217

Other loans 14 - 9 347 - 9 347 - 31 061 - 767 108

Investments in negotiable instruments and deposits 15 18 218 43 528 4 929

Accrued revenue 16

Total Financial Assets (Recognised) 12 927 13 054 271 283 504 278 42 833 15 086 - 50 559 - 793 325

Total Assets

Financial Liabilities

Trade and other creditors 12

Income Equalisation Deposits 8 256 178 443 735

98-99 97-98 98-99 97-98 98-99 97-98

$ 0 0 0 $'000 $'000 $'000 % %

46 8 292 46 8 292 n/a n/a

262 927 456 354 1.00 1.00

5 189 2 162 5 189 2 162 n/a n/a

45 898 54 628 7.50 8.54

816 863 n/a 8.25

18 218 48 457 4.70 5.95

51 118 66 652 51 118 66 652 n/a n/a

56 353 77 106 383 396 1 453 408

3 183 936 6 772 900

31 555 19 939 31 555 19 939 n/a n/a

256 178 443 735 4.95 7.34

> "Ό "Ό

m z Ό

X

o

2 1 6 >

"Ό

*Ό m ζ Ό

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 3 0 Financial In stru m en ts (con tin u ed )

(c) N et Fair Value o f Financial A s se ts and Liabilities

1 9 9 8 -9 9 1997-98

Total A ggregate Total Aggregate

Carrying Net Carrying Net

Am ount Fair Value Amount Fair Value

Note $'000 $ 0 0 0 $'000 $'000

Financial A ssets

Cash 1 8 5 4 1 8 5 4 3 250 3 250

Reserved Money Fund investment 2 139 2 139 16 727 16 727

Receivables for goods, services and fees 14 15 0 3 8 15 0 3 8 14 173 14 173

Negotiable securities 15 8 8 0 0 8 800 7 100 7 100

Accrued revenue 16 5 2 9 2 5 292 10 611 10 611

Total Financial A ssets 33 123 3 3 123 51 861 51 861

Financial Liabilities (R eco g n ised )

Trade and other creditors 11 & 12 10 6 2 3 1 0 623 13 384 13 384

Industry liabilities 12 6 3 5 3 6 35 3 8 750 8 750

Other liabilities 12 171 171 454 454

Total Financial Liabilities (R ecogn ised ) 10 7 9 4 10 7 9 4 13 838 13 838

Financial Liabilities (U n recogn ised )

Claims for damages/costs 7 8 2 0 7 8 2 0 10 10

Bank guarantees recoverable against investments - - 66 66

Total Financial Liabilities (U nrecognised) 7 8 2 0 7 82 0 76 76

-

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NOTE 3 0 F inancial In s tr u m e n ts (c o n tin u e d )

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

(c) N et Fair V alue of Financial A sse ts a n d L iabilities

1 9 9 8 -9 9 1997-98

T otal A g g re g a te Total Aggregate

C arrying N et Carrying Net

A m ount Fair V alue Amount Fair Value

N ote $ '0 0 0 $ 0 0 0 $'000 $'000

A d m in istered

F inancial A ssets

Cash 46 46 8 292 8 292

Reserved Money Fund investment 15 2 6 2 9 2 7 2 6 2 9 2 7 456 354 456 354

Receivables for goods, services and fees 14 5 18 9 5 189 2 162 2 162

Loans to state and territory governments 14 8l 29 4 5 8 9 8 4 5 89 8 54 628 54 628

Other loans 14 - - 816 863 816 863

Investments in negotiable instruments and deposits 15 18 218 1 8 21 8 48 457 48 457

Accrued revenue 16 51 118 5 1 118 66 652 66 652

T otal F inancial A ssets 3 8 3 3 9 6 3 8 3 396 1 453 408 1 453 408

F inancial L iabilities (R eco g n ised )

Trade and other creditors 12 31 5 5 5 3 1 5 5 5 19 939 19 939

Income Equalisation Deposits 8 2 5 6 178 2 5 6 178 887 470 887 470

T otal F in an cial Liabilities (R e c o g n ise d ) 2 8 7 73 3 2 8 7 733 907 409 907 409

F inancial L iabilities (U n re c o g n ise d )

Guarantees to public trading enterprises 1 3 2 8 21 8 1 3 2 8 218 397 834

397 834 Other guarantees - - - -

Indemnities - - 1 530 600 1 530 600

Claims for damages/costs - - 52 000 52 000

T otal F inancial L iabilities (U n re c o g n ise d ) 1 3 2 8 218 1 3 2 8 218 1 980 434 1 980 434

2 1 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

NOTE 3 0 Financial In stru m en ts (co n tin u ed )

(c) N et Fair Value o f Financial A s se ts and Liabilities

Financial assets

The net fair values of cash and non-interest-bearing monetary financial assets approximate their carrying amounts.

The net fair values of loans receivable are considered at their carrying amounts as all loan waivers have been written o ff and provision has been made fo r all doubtful debts.

Investments in negotiable securities are carried at cost, as it is intended to hold them to maturity.

Financial liabilities

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

The net fair values of indemnities are regarded as the maximum possible loss which the Commonwealth faces while the indemnity remains current.

Credit Risk Exposures

The Department's maximum exposures to credit risk at reporting date in relation to each class o f recognised financial assets Is the carrying amount o f those assets as indicated in the Statement o f Assets and Liabilities.

The Department has no significant exposures to any concentrations o f credit risk.

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

Concentrations o f credit risk

Meat Inspection Division's customer base is concentrated in Australia with the majority of meat and meat products being exported to the US, Japan and Korea. By undertaking transactions with a large number o f customers within the meat industry the concentrations o f credit risk in relation to trade accounts receivable is minimised.

Credit risk in trade receivables is managed in the following ways:

- payment terms are 28 days; - withdrawal o f services if debt recovery action is unsuccessful.

Concentrations of credit risks on trade accounts receivable arise in the following industries:

Maximum cred it risk ex p o su re for each con cen tration

P ercen tage o f to ta l trad e d eb tors

A m ount receivab le

Industry 1 9 9 8 -9 9

%

1997-98 %

1 9 9 8 -9 9 $000

1997-98 $'000

Exported Meat and Meat Product 100 100 4 56 7 4 829

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 w m

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year ended 30 June 1999

NOTE 31 R eceipts o f th e C onsolidated R evenue Fund

Group

RECEIPTS TO THE CRF

Agricultural and veterinary chemical products levy IDG

Australian Quarantine and Inspection Service: AQIS

- Contingency fund repayment - Quarantine and inspection charges - Payment in lieu o f insurance premiums

Beef production levy IDG

Bovine brucellosis and tuberculosis eradication campaign: IDG

- Interest - Repayments

Cattle export charge IDG

Cattle transaction levy IDG

Cattle Transaction Levy Act 1990 IDG

Coarse grains levy IDG

Cotton research levy IDG

Dairy Adjustment Agreement: CSG

- Interest - Repayments

Dairy produce levy IDG

Deer export charge IDG

Deer slaughter levy IDG

Deer velvet export charge IDG

Deer velvet levy IDG

Disposal o f forfeited fishing vessels IDG

Dried fruits levy IDG

Fishing boat licence levy IDG

Fishing levies IDG

Fishing licences and charges IDG

Forestry levies IDG

Goat fibre levy IDG

Grain legume levy IDG

1998-99 Budget 1 9 9 8 -9 9 Actual 1997-98 Actual

$ $ $

12 000 000 15 0 3 0 298 13 680 550

5 000 000 50 219 000 55 3 1 8 645 53 892 042

139 000 - 138 000

- 4 2 9 8 775 39 640 033

9 000 1 277 418

140 000 83 839 75 905

31 845 000 25 1 01 4 2 868 902

35 066 000 36 3 0 8 97 2 41 514 817

- 4 7 7 7 208 -

9 283 000 7 7 8 9 787 11 670 327

5 075 000 4 8 0 1 6 7 9 5 484 767

17 000 17 40 9 28 890

171 000 1 7 0 5 8 4 198 129

188 612 000 200 2 1 7 83 4 200 212 808

15 000 8 840 31 231

128 000 17 5 733 122 422

20 000 14 86 2 14 647

30 000 21 749 19 070

- 35 7 699 1 647 329

641 000 4 8 4 613 412 676

8 000 7 680 50 263

16 056 000 14 1 7 8 377 11 392 866

2 020 000 7 2 3 126 636 063

3 096 000 3 6 1 4 08 5 3 143 795

29 000 21 774 26 152

4 161 000 3 4 7 9 85 0 4 898 917

2 2 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 3 0 June 1999

NOTE 31 R eceip ts o f th e C onsolidated R evenue Fund (con tin u ed )

Group 1998-99 Budget 1 9 9 8 -9 9 Actual 1997-98 Actual

$ $ $

Grape research levy IDG 1 045 000 1 0 8 9 0 3 6 891 800

Hardwood woodchip export fee IDG 101 000 ( 19 6 6 5 1 ) 399 028

Honey export charge IDG 70 000 6 4 0 0 7 61 372

Honey levy IDG 105 000 13 0 4 2 5 114 045

Horticultural export charge IDG 2 223 000 1 3 6 0 129 1 527 240

Horticultural levy IDG 16 296 000 15 2 2 2 0 9 8 14 555 539

Laying chicken levy IDG 710 000 7 3 7 0 4 4 807 162

Livestock export charge: - Eradication o f disease

IDG

1 000 1 12 2 708

- Research and marketing 3 000 2 4 7 23 6 1 935 010

Livestock slaughter levy: - Eradication of disease

IDG

1 000 6 0 0 318

- Research and marketing 5 613 000 2 0 0 4 1 9 7 20 718 312

Livestock transaction levy IDG - 16 1 3 0 4 3 9 -

Maralinga rehabilitation: transferred

- UK contribution to DISR 4 000 000 5 6 7 0 5 4 2 6 705 409

Meat and livestock industry - cash assets IDG 25 000 000 59 3 2 8 22 2 -

Meat chicken levy IDG 874 000 8 6 8 6 5 0 911 403

Meat Inspection Service: AQIS

- Contingency fund repayment 2 000 000 - -

- Inspection fees 52 689 000 5 7 3 7 8 4 1 8 59 034 431

- Loan repayment - Payment in lieu of insurance

922 000

"

premiums 113 000 - 112 000

National Residue Survey levies IDG 6 615 000 8 2 1 3 1 1 9 7 101 208

Offshore mineral fees transferred

to DISR 60 000 6 0 8 0 43 960

Oilseeds research levy IDG 5 430 000 6 9 6 7 0 8 0 3 862 852

Ovine Johnes' Disease Interim Surveillance program IDG - 16 0 4 9 2 -

Petroleum royalties and fees transferred

to DISR 298 430 000 7 8 9 8 0 5 5 0 329 105 403

Pig slaughter levy IDG 11 485 000 12 2 0 8 8 4 0 11 664 610

Plague Locust Commission: - States' contributions

IDG

636 000 4 1 5 4 7 2 499 699

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

NOTE 31 R eceip ts o f th e C onsolidated R evenue Fund (co n tin u ed )

Group 1998-99 Budget 1 9 9 8 -9 9 Actual 1997-98 Actual

Prawn Export Promotion levy IDG

$ $

3 2 33 2

$

355 580

Queensland Brigalow Lands Agreement: - Interest CSG 114 000 11 3 793 139 831

- Repayments 267 000 26 6 93 6 341 073

Rice levy IDG 1 353 000 2 0 0 3 9 2 8 1 523 509

Royalties from uranium: - Northern Territory

transferred to DISR 12 500 000 6 2 3 7 761 10 482 188

Rural adjustment scheme: - Interest

CSG

1 934 000 1 9 3 4 3 1 0 2 421 861

- Repayments 5 530 000 5 7 1 3 270 6 703 154

Rural reconstruction scheme: - Interest

CSG

92 4 463

- Repayments - 2 03 0 98 682

Seeds levy IDG 120 000 15 2 95 0 128 277

Sewerage Agreements A ct 1973 and 1974\ - Interest CSG 1 040 000 1 0 3 9 75 8 1 563 345

- Repayments 347 000 3 2 8 92 9 5 885 396

Snowy Mountains Hydro-electric Authority: - Interest transferred to DISR 61 402 000 20 21 5 325 62 422 638

- Repayments 9 347 000 3 0 9 0 4 6 8 8 290 212

Snowy Hydro Corporatisation Act 1997 - Snowy Mountains Hydro-electric Authority - repayment o f pre-1999 advances and payment for the assumption by the Commonwealth of other borrowings

transferred to DISR 918 062 000

Softwood Forestry Agreement: - Interest IDG

50 000 4 9 66 4 6 064 938

- Repayments 116 000 8 7 8 767 46 481 177

South Australia - Adelaide and Northern Towns water filtration: - Interest CSG

230 000 23 0 4 1 1 1 301 840

- Repayments 1 260 000 1 26 0 321 247 045

Sugar cane levy IDG 6 157 000 6 0 2 2 9 6 4 6 170 400

Tasmanian Forestry Road loan: - Interest IDG

4 4 511

- Repayments - 1 1 1 5 8 6 5 -

Tobacco charge IDG 722 000 7 7 2 95 2 832 462

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

NOTE 3 1 R eceip ts o f th e C onsolidated R evenue Fund (co n tin u ed )

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

Group

Victoria - Dartmouth Dam: CSG

- Interest - Repayments

War Service Land Settlement: CSG

- Rents - Other

War Service Land Settlement loans: CSG - Interest - Repayments

Wheat industry fund levy IDG

Wine export charge IDG

Wine grapes levy IDG

Wool tax IDG

Western Australia - Harding River Dam: CSG - Interest - Repayments

Western Australia - Ord River Scheme: CSG - Interest - Repayments

Miscellaneous var

Departmental Section 35 of the A udit A c t 1901 - to be credited to Running Costs - Division 490 var

Australian Bureau o f Agriculture I and Resource Economics Section 35 of the A udit A c t 1901 - to be credited to Running Costs - Division 491 ABARE

1998-99 Budget 1 9 9 8 -9 9 Actual 1997-98 Actual $ $ $

-

231 107 2 043 333

999 000 6 6 2 179 1 281 445

1 535 000 1 2 9 6 681 2 570 791

13 000 22 6 2 5 4 236

44 000 12 5 3 2 4 25 591

90 004 000 9 4 5 0 8 127 100 138 387

1 000 000 1 0 6 6 9 3 7 827 483

3 576 000 3 6 2 2 8 9 2 3 O il 162

120 640 000 76 5 8 6 0 4 4 105 156 104

29 000 28 9 4 0 20 919

87 000 87 3 6 8 37 235

7 058

- - 158 706

1 847 000 5 4 2 8 4 8 1 1 163 186

14 200 000 29 7 8 2 6 3 0 16 587 320

7 703 000 6 3 8 2 6 0 4 7 428 207

Australian Geological Survey Organisation Section 35 of the A udit A c t 1901 - to be credited transferred

to Running Costs - Division 492 to DISR 5 711 000 4 5 9 4 3 3 2 13 477 855

Total R eceip ts to CRF 2 066 141 000 8 9 4 8 4 5 3 5 7 1 267 480 724

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

NOTE 3 2 E x p e n d itu r e fr o m S p e c ia l A p p r o p r ia tio n s

G roup 1998-99 Budget

$

1 9 9 8 -9 9 A ctual $

1997-98 Actual

$

EXPENDITURE FROM THE CRF

Special Appropriations

Agricultural a n d Veterinary Chem icals (Adm inistration) A c t 1992 IDG 12 000 000 12 65 8 00 4 14 086 187

Australian Anim al Health Council (Livestock Industries) Funding A c t 1996 IDG 1 831 000 3 6 8 8 9 9 9 2 005 542

Australian Horticultural Corporation A c t 1987 IDG 9 537 000 7 0 4 3 627 6 917 883

Australian M eat a n d Livestock A c t 1 9 9 7 - Marketing Body IDG 47 768 000 33 7 6 1 3 7 2 -

Australian M eat a n d Livestock A c t 1 9 9 7 - Research Body IDG 46 497 000 27 56 5 290 -

Australian M eat a n d Livestock (R epeals a n d Consequential Provisions) A c t 1997 IDG 25 000 000 64 26 6 275 -

Australian W ine a nd Brandy Corporation A ct 1980 IDG 2 866 000 2 83 1 07 6 2 349 795

Australia Wool Research a n d Prom otion Organisation A c t 1993 IDG 134 950 000 91 9 9 2 205 111 906 786

Dairy Produce A c t 1986 IDG 176 768 000 187 83 5 236 189 064 188

Farm H ousehold S u p p o rt A c t 1992 CSG 27 521 000 29 7 8 1 9 6 8 63 092 285

Fisheries A dm inistration A ct 1991 IDG 13 084 000 10 0 4 6 9 3 0 13 084 000

Horticultural R esearch a nd D eve lo p m en t Corporation A c t 1987 IDG 25 464 000 24 291 099 20 405 936

Loan (incom e Equalisation D eposits) A ct 1976 CSG 16 200 000 10 4 4 6 54 4 13 612 202

M eat a n d Livestock In d u stry A c t 1995 - Australian M eat a n d Livestock Corporation IDG - 8 36 5 42 1 74 685 512

M eat a n d Livestock In d u stry 1995 - M eat In d u stry Council IDG - 3 4 4 715 3 115 805

M eat & Livestock In d u stry A c t 1995 - M eat Research Corporation IDG - 2 74 6 23 8 47 316 598

National Cattle D isease Eradication Trust A ccount A ct 1991 (p a y m e n t to th e National Cattle D isease Eradication Trust A ccount) IDG 1 827 000 2 192 6 0 5 2 276 466

National R esidue S urv ey Adm inistration A ct 1992 IDG 6 615 000 7 7 9 9 4 9 0 6 954 519

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e ye a r e n d e d 3 0 J u n e 1999

NOTE 3 2 Expenditure from Special Appropriations

Group

O ffshore Minerals A c t 1994 transferred

to DISR

Petroleum (S u b m e rg e d Lands) A ct 1967 transferred to DISR

Pig In d u stry A ct 1986 IDG

Prawn E xport Prom otion A c t 1 9 9 5 IDG

Primary Indu strie s a n d E nergy R esearch a n d D eve lo p m en t A c t 1989 IDG

S n o w y H ydro Corporatisation A c t 1997 -Advance to the Snowy Mountains transferred

Hydro-electric Authority to DISR

W heat M arketing A c t 1989 IDG

Wool International A c t 1993 IDG

Total Special Appropriations

1998-99 Budget 1 9 9 8 -9 9 Actual 1997-98 Actual

$ $ $

60 000 3 4 0 0 0 93 600

202 420 000 4 8 7 1 4 6 5 0 220 165 241

8 064 000 8 5 6 0 165 8 159 488

- 3 2 3 3 2 355 580

169 863 000 172 7 1 2 38 1 171 394 390

918 062 000 - -

60 003 000 63 0 1 5 4 4 2 66 733 322

- 4 2 8 2 0 334 051

1 906 400 000 8 2 0 7 6 8 8 8 4 1 038 109 376

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

NOTE 33 Expenditure from Annual Appropriations

1998-99 Budget

1998-99

Total Amount Appropriated (0

Group $ $

Appropriation Acts 1 and 3

Division 490 ADMINISTRATIVE

** 1 Running Costs (including Annotated Appropriations) 1 var 96 587 000 113 322 000

2 Other Services

01 Compensation and legal expenses all 305 000 305 000

02 Payment for community service obligations (for payment to the AQIS Reserve) 2 AQIS 41 898 000 41 898 000

03 Quarantine and inspection - Allocation of industry charges (for payment to the AQIS Reserve) AQIS 50 219 000 57 146 000

04 Payment for community service obligations (for payment to the National Residue Survey Reserve) IDG 396 000 396 000

** 05 Management of former atomic test sites transferred

to DISR 246 000 63 085

06 Citrus industry market diversification grant 3 IDG 1 621 000 1 880 000

07 Clean food production program IDG 500 000 500 000

** 08 National radioactive waste repository transferred

to DISR 1 229 000 60 197

** 09 Industry co-operative agreements program to facilitate voluntary greenhouse gas reductions transferred to DISR 4 058 000 46 916

10 Subsidy for animal and plant quarantine services (for payment to the Australian Quarantine and Inspection Service Reserve)4 AQIS 1 300 000 1 300 000

11 Payments for the airports passenger program (for payment to the Australian Quarantine and Inspection Service Reserve) AQIS 18 915 000 18 915 000

12 Payment in respect of long service accrued pre 1993-94 (for payment to the Australian Quarantine and Inspection Service Reserve) AQIS 225 000 225 000

13 Meat inspection - Allocation of industry charges (for payment to the Meat Inspection Service Reserve) AQIS 52 689 000 56 689 000

1998-99 Actual

$

107 517 339

100 368

39 694 972

56 442 433

396 000

63 085

545 380

500 000

60 197

46 916

935 000

18 915 000

225 000

56 689 000

1997-98 Actual

$

113 657 356

133 464

39 789 698

53 735 000

391 000

239 373

361 352

500 000

264 977

1 430 175

1 300 000

16 939 000

225 000

59 005 872

1998-99 1998-99 1997-98

Total Amount Actual Actual

Appropriated (0 $ $ $

2 125 000 2 125 000 4 035 301

4 100 000 4 100 000 5 000 000

5 223 000 5 223 000 11 220 000

4 608 000 847 100 094

4 000 844 -

1 400 000 1 400 000 3 600 000

- - 11 160 725

603 000 603 000 -

100 000 100 000 50 000

40 000 39 513 4 Oil 182

- - 174 000

- - 210 000

>

444 059

T 3

TJ m

15 000 15 000 35 618 z

O

44 689 44 689 63 380 |-*

X

1 154 000 1 109 423 1 264 482 o

□

NOTE 33 Expenditure from Annual Appropriations (continued) 1998-99 Budget

> z

z c

>

o

73

05 Agribusiness programs 6 Tri-State Fruit Fly Strategy - Commonwealth contribution

In fra stru ctu re and Support

01 National Landcare Program (for payment to the Natural Resources Management Reserve)

02 Water resources assessment and research - Grants

03 Murray-Darling Basin Commission

04 Payments to State Authorities in connection with War Service Land Settlement 7

05 Land and Water Resources Research and Development Corporation

06 National forest policy program

07 Rehabilitation of Maralinga former atomic test site

08 Farm business and community programs 8

09 Farm family restart scheme - Re-establishment, counselling and program delivery 9

10 Farm family restart scheme - income support 10

11 Farm household support scheme u

Rural communities access programs

R esearch and A ssessm ent

01 Payment to Commonwealth Scientific and Industrial Research Organisation - Contribution to the operating costs of the Australian Animal Health Laboratory

02 Australian Plague Locust Commission - Contribution

03 Rural Industries Research and Development Corporation

Group

IDG

CSG

CSG

CSG

CSG

CSG

IDG

transferred to DISR

CSG

CSG

CSG

CSG

CSG

IDG

IDG

CSG

$

601 000

2 019 000

173 000

1 369 000

1 298 000

10 939 000

6 262 000

16 462 000

18 228 000

21 668 000

17 840 000

220 000

6 129 000

1 271 000

10 982 000

1998-99 1998-99 1997-98

Total Amount Appropriated (i)

Actual Actual

$ $ $

601 000 282 901 249 700

- 96 000

2 019 000 2 019 000 3 007 000

173 000 153 768 170 000

1 369 000 1 369 000 1 488 000

1 298 000 1 135 321 1 206 914

10 939 000 10 939 000 10 778 000

6 262 000 6 262 000 6 688 000

5 597 165 5 597 165 22 140 833

9 100 000 5 636 142 -

21 668 000 13 620 165 5 961381

20 000 000 18 988 605 5 101 189

220 000 18 224 419 121

- - 4 654 346

6 129 000 6 129 000 6 090 000

1 271 000 1 269 731 829 258

10 982 000 10 982 000 10 820 000

> ~O "Ό

m z o

x

o

2 2 9

1998-99 1998-99 1997-98

Total Amount Actual Actual

Appropriated

(i) $ $ $

1 540 000 1 540 000 20 586 000

2 698 000 2 448 311 107 000

553 235 553 235 1 867 624

3 655 000 2 141 066 683 889

- - 160 000

67 620

418 237 287 387 976 640 432 512 983

21 631 604 20 997 265 22 473 661

21 631 604 20 997 265 22 473 661

14 983 773 14 983 773 59 621 483

20 000

14 983 773 14 983 773 59 641 483

> "U ~Ό m z a

x

ο

2 3 0

1998-99

Total Amount Appropriated

(i) $

12 399 000

12 399 000

107 000

106 380

465 877

430 000

800 000

1998-99 Actual

12 399 000

12 399 000

107 000

106 380

465 877

235 588

800 000

1997-98 Actual

12 324 000

12 324 000

157 000

107 000 107 000 107 000 157 000

500 972 000 467 358 664 436 463 678 527 109 127

2 406 708

34 290 055

15 315

15 860

> "O TJ m

z σ

NOTE 33 Expenditure from Annual Appropriations (continued) 1998-99 Budget

Group

2 M urray-Darling Basin Commission (MDBC) - For ex p en d itu re u n d e r th e M urray-Darling Basin Act 1983 and for a n atural resources m a n a g em e n t s tra te g y

01 Contribution to salinity mitigation works and other constructions and investigations CSG

3 A dvances and Loans

01 Contingency fund (for payment to the Australian Quarantine and Inspection Service Reserve) M AQIS

02 Contingency fund (for payment to the Meat Inspection Service Reserve) ls AQIS

Producer Service Delivery Company - Establishment costs and working capital advance Working capital advance (for payment to the Meat Inspection Service Reserve) AQIS

T otal Division 9 3 0

Division 931 PAYMENTS TO OR FOR THE STATES, THE NORTHERN TERRITORY AND THE AUSTRALIAN CAPITAL TERRITORY

1 In d u strie s D evelopm ent

* * 01 Payment to the Northern Territory in lieu of uranium royalties

02 Tasmanian wheat freight - Shipping

2 In fra stru c tu re and S upport

01 Forest industry structural adjustment package 16

02 Rural Adjustment under the States Grants (Rural Adjustment) Act 1988 and the Rural Adjustment Act 1992 17

* * Monitoring and maintenance of former mine site rehabilitation -Payment to the Northern Territory

transferred to DISR

IDG

IDG

CSG

transferred to DISR

$

2 385 000

5 000 000

2 000 000

12 121 000

2 800 000

1 200 000

34 545 000

41 722 000

1998-99

Total Amount Appropriated

(i) $

2 385 000

5 000 000

2 000 000

11 187 257

1 417 673

1 200 000

34 545 000

57 902 000

1998-99 Actual

$

2 385 000

3 992 845

1 417 673

1 2 0 0 0 0 0

840 582

42 672 822

1997-98 Actual

$

7 061 000

2 767 607

1 000 000

47 556 545

2 382 315

1 200 000

6 215 003

81 906 392

152 000

NOTE 33 Expenditure from Annual Appropriations (continued) 1998-99 Budget

03 Commonwealth/New South Wales forest industry package 18

Group

IDG

$

3 252 000

04 Payments to State rural adjustment scheme authorities for costs associated with issuing drought exceptional circumstances certificates CSG 221 000

05 National Landcare Program - Payment to the States for the purpose of the N atural R e so u rces M a n a g e m e n t (Financial A ssista n c e ) A c t 1992 CSG 52 880 000

06 New South Wales sugar export industry IDG 1 000 000

07 Sugar industry program 19 IDG 3 773 000

08 Tasmanian Regional Forest Agreement - Payment to the Tasmanian State Government IDG 25 400 000

09 Farm business and community programs 20 CSG 3 383 000

10 Payment to Western Australia for Wyndham port loading facility 21 IDG -

01

R esearch and A ssessm ent

Exotic disease preparedness program - Feral animal control IDG 251 000

02 Remote sensing of land coverage 22 BRS 81 000

03 Tuberculosis freedom assurance program 23 IDG 922 000

Bovine brucellosis and tuberculosis eradication campaign IDG -

1998-99

Total Amount Appropriated (i) $

3 252 000

1 312 000

52 880 000

1 000 000

3 773 000

25 400 000

7 337 000

550 000

251 000

114 000

922 000

1998-99 Actual

$

273 450

1 311 247

52 880 000

1 0 0 0 0 0 0

1 072 000

25 400 000

247 222

2 100

1997-98 Actual

$

25 000

337 000

51 431 000

2 787 000

22 010 000

250 327

683 946

1 619 924

T otal Division 9 31 171 430 000 191 855 673

Division 932 OTHER SERVICES

01 Climate change measures - comprising energy performance codes and standards and national carbon accounting system for land based sources and sinks (including payment to the Australian Greenhouse Office Reserve) BRS 2 510 000

02 Pork industry development group grant 24 IDG 3 807 000

03 Reducing methane emissions from livestock (inlcuding payment to the Australian Greenhouse Office) BRS 170 000

1 310 000

5 711 000

170 000

1 2 8 3 1 7 0 9 6 170 999 907

1 310 000

4 008 957

170 000

NOTE 33 Expenditure from Annual Appropriations (continued)

04 Payment for delivery of exceptional circumstances payments

05 Tuberculosis freedom assurance program 2S

06 Sugar industries package 26

07 Pigmeat processing grants program 27

08 Ovine Johnes' Disease interim surveillance program - advance

Ex-Gratia payment in respect of banana crop losses associated with eradication measures to control a black sigatoka outbreak Integrated rural policy package

Total Division 932

Total Appropriation Acts 2 and 4

1998-99 Budget

Group

CSG

IDG

IDG

IDG

IDG

$

211 000

1998-99

Total Amount Appropriated

(i) $

1 211 000

1 317 000

2 799 000

5 600 000

160 492

1998-99 Actual

$

1 210 300

1 143 658

1 972 471

160 492

1997-98 Actual

$

55 000

CSG

100 061 4 056 831

6 698 000 18 278 492 9 975 878 4 211 892

190 249 000 221 321 422 142 285 819 222 768 344

Total Appropriation Acts 1 to 4

Total Special Appropriations

Total Expenditure from CRF

691 221 000 688 680 086 578 749 497

1 906 400 000 1 906 400 000 820 768 884

2 597 621 000 2 595 080 086 1 399 518 381

749 877 471

1 038 109 376

1 787 986 847

(i) Total amount appropriated reflects revised appropriations since the 1998-99 Budget, such as Additional Estimates and Advances to the Minister of Finance as a Final Charge. Figures for each of these appropriations are given below.

* * Indicates part or whole items transferred to other Departments following Administrative Arrangement Orders in October 1998.

Total amount appropriated reflects revised appropriations since the 1998-99 Budget such as Additional Estimates and Advances to the Minister for Finance as a Final Charge. Figures for each of these appropriations are given below. 1998-99 1998-99

Budget Additional

Estimates

Group $ $

NOTE 33 Expenditure from Annual Appropriations (continued)

Division 490 ADMINISTRATIVE

1 Running Costs

(including Annotated Appropriations) var 96 587 000 4 116 000

2 Other Services

03 Quarantine and inspection - Allocation of industry charges (for payment to the AQIS Reserve) AQIS 50 219 000 6 927 000

06 Citrus industry market diversification grant IDG 1 621 000 259 000

13 Meat inspection - Allocation of industry charges (for payment to the Meat Inspection Service Reserve) AQIS 52 689 000 2 000 000

15 Headquarters salary costs (for payment to the Meat Inspection Service Reserve) AQIS 2 210 000 1 890 000

22 Contribution to the Victorian Farmers Federation Disaster Relief Fund CSG . 100 000

23 South East Fisheries adjustment program IDG - 40 000

3 Industries Development

04 International organisations - Contributions IDG

transferred to DISR 1 208 000 141 000

4 Infrastructure and Support

08 Farm business and community programs CSG 18 228 000 -

10 Farm family restart scheme - income support CSG 17 840 000 2 160 000

5 Research and Assessment

05 Other exotic disease preparedness programs IDG 107 000 2 591 000

07 Fisheries resources research IDG 1 966 000 1 689 000

AAO transfers - part items

( 17 051 632)

( 195 000)

( 9 128 000)

1993-99 AMF Final Charge $

2 000 000

Total Amount Appropriated

$

83 651 368

57 146 000

1 880 000

56 689 000

4 100 000

1 0 0 0 0 0

40 000

1 154 000

9 100 000

20 000 000

2 698 000

3 655 000

NOTE 33 Expenditure from Annual Appropriations (continued)

Division 491 AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS

1 Running Costs

Division 493 AUSTRALIAN FISHERIES MANAGEMENT AUTHORITY

1 For expenditure under the Fisheries Administration Act 1991

Group

ABARE

IDG

1998-99 Budget

15 092 000

10 200 000

1998-99 Additional Estimates $

157 000

2 199 000

AAO transfers - part items

Division 930 CAPITAL WORKS AND SERVICES

1 Acquisitions, Buildings, Works, Plant and Equipment

04 Loxton irrigation scheme - replacement of south rising main and associated works for Loxton East development CSG

Division 931 PAYMENTS TO OR FOR THE STATES, THE NORTHERN TERRITORY AND THE AUSTRALIAN CAPITAL TERRITORY

2 Infrastructure and Support

02 Rural Adjustment under the States Grants (Rural Adjustment) Act 1988 and the Rural Adjustment Act 1992 CSG

04 Payments to State rural adjustment scheme authorities for costs associated with issuing drought exceptional circumstances certificates

09 Farm business and community programs

10 Payment to Western Australia for Wyndham port loading facility

Research and Assessment

02 Remote sensing of land coverage

CSG

CSG

IDG

BRS

41 722 000

221 000

3 383 000

81 000

800 000

16 180 000

1 091 000

3 954 000

550 000

33 000

1998-99 Total Amount AMF Final Appropriated Charge $ $

15 249 000

12 399 000

800 000

57 902 000

1 312 000

7 337 000

550 000

114 000

> TJ TD m z Ό

X

o

NOTE 33

Division 932

Expenditure from Annual Appropriations (con tin u ed )

Group

OTHER SERVICES

1998-99 Budget

$

1998-99 Additional Estimates $

01 Climate change measures - comprising energy performance codes and standards and national carbon accounting system for land based sources and sinks (including payment to the Australian Greenhouse Office Reserve) BRS 2 510 000

02 Pork industry development grant IDG 3 807 000 1 904 000

04 Payment for delivery of exceptional circumstances payments CSG 211 000 1 000 000

05 Tuberculosis freedom assurance program IDG - 1 317 000

06 Sugar industries package IDG - 2 799 000

07 Pigmeat processing grants program IDG - 5 600 000

08 Ovine Johnes' Disease interim surveillance program - advance IDG

AAO transfers - part items

( 1 200 000)

1998-99 AMF Final Charge $

160 492

Total Amount Appropriated

$

1 310 000

5 711 000

1 211 000

1 317 000

2 799 000

5 600 000

160 492

A P P E N D I X 1 0

NOTE 33 Expenditure from Annual Appropriations (co n tin u ed )

Explanation of Sign ifican t Variation b etw een 1 9 9 8 -9 9 Total A m ount Appropriated and 1 9 9 8 -9 9 Actual Expenditure from Annual A ppropriations

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 The main reasons for variation in this appropriation relate to the following:

- Departmental funds associated with Forestry programs were not utilised due to the stalling of the Regional Forestry Agreement process;

- elements of the Department on a cost recovery basis received prepaid revenue at the end of the financial year (the associated liability has been recognised);

- a large property operating amount was in dispute as at 30 June (which has since been paid), and

- timing differences in Agriculture - Advancing Australia (AAA) program commencement and delivery dates.

2 The variation relates to revisions o f estimates on expenditure fo r Plant Pest and Disease eradication programs such as the Papaya Fruit Fly Eradication program.

3 The seasonal nature of citrus production, marketing and pest incursion are major factors impacting on the timing and progress of projects, as are decisions by other governments regarding market access. A significant number o f scheduled grant payments were not made in 1998-99, but will be payable in 1999-00.

4 In accordance with the Memorandum o f Understanding with DoFA, drawdowns of quarantine subsidies were reduced to offset program surpluses in 1997-98.

5 FISAP is a demand driven program linked directly to finalisation o f the Regional Forest Agreements (RFAs). Delays in finalising the RFAs have resulted in the need to carry over funds to meet commitments in 1999-00.

6 Expenditure was less than appropriation due to some contract payments being cancelled or delayed as a consequence of slower than expected progress on some projects and carryover o f funds for dissemination and evaluation o f program outcomes.

7 This appropriation was based on forecasts made by South Australia for the on-going operation of the Loxton Irrigation Scheme. Requirements fo r operation and maintenance o f the Scheme were lower than the State had estimated.

8 This item includes funding for several programs under the Agriculture - Advancing Australia package. Expenditure on some program items was less than expected in 1998-99. This was exacerbated by the 1998 Federal Election and the subsequent changes to the Administrative Arrangements Orders.

9 FFRS is demand driven, and it is difficult to predict the level of demand for the various program elements. 172 re-establishment grants were paid during the year. Approximately 310 grants were expected when appropriation estimates were made. Lower than expected counselling expenditure has arisen as most recipients do not utilise the full $3,000 allowed fo r professional advice and many FFRS recipients appear to have chosen to use the free rural counselling service.

10 FFRS is demand driven, and it is difficult to predict the level o f demand. This variation arises as the appropriation estimate was based on an expected 1,400 to 1,500 income support recipients from January to June 1999. Recipient numbers showed a small downward trend from 1,400 to 1,200 during that period giving rise to the variation.

11 The FHS scheme was closed to new applicants from May 1997. This variation arises as the remaining FHS recipients withdrew from the scheme earlier than expected and did not take up their full entitlement to two years' support.

12 The complexities o f assessing project proposals makes it difficult to finalise contracts before the end o f the financial year. Also, funding for projects is provided in portions, at various stages o f completion for each project, therefore not all projects can be completed in a given financial year.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year e n d e d 3 0 Ju n e 1999

13 As finalisation o f the costs relating to the construction o f the Screw Worm Fly facility approached, it was agreed that funds not required to meet capital expenses ($164,000) should be transferred to the appropriation item used to fund the operations o f the facility.

14 In accordance with the Memorandum of Understanding with DoFA, any contingency fund balance must be repaid by the end o f the financial year.

15 In accordance with the Memorandum of Understanding with DoFA, any contingency fund balance must be repaid by the end of the financial year.

16 FISAP is a demand driven program linked directly to finalisation o f the Regional Forest Agreements (RFAs). Delays in finalising the RFAs have resulted in the need to carry over funds to meet commitments in 1999-00.

17 This item makes payments to States under RAS (which has closed), the Rural Partnership Program (RPP) and Exceptional Circumstances (EC). The appropriation was based on the States' estimates of expenditure for the year. In the event, the funding required was less than that estimated, for RAS, the RPP and EC.

18 Expenditure for this program is less than predicted due to delays in finalising the Eden Regional Forest Agreement (RFA) and late receipt o f project reports. Funds will be carried over to meet commitments in 1999-00.

19 Delays in the environmental assessment process and subsequently the construction phase o f some Queensland projects, resulted in an underspend for the Queensland component in 1998-99. The NSW Project was halted as a result of a Native Title Claim, thus no money was spent in the 1998-99 financial year. The NSW and Commonwealth Governments decided that the money would be spent on other projects, which are currently being developed.

20 Due to delays in signing the Commonwealth/State Agreements for the FarmBis program, expenditure originally allocated for 1998-99 was not realised and was drawn, in the first instance, from the Natural Heritage Trust. Remaining funds for the program will be expended in the budget out years.

21 The Western Australian sugar industry sought to include the funding in a Commonwealth/State/industry initiative. As the Commonwealth Government was seeking confirmation for provision o f matching funding from the Western Australian Government, no expenditure was made in the 1998-99 financial year.

22 It was agreed at the programs inception that money would be set aside for an independent assessment of the accuracy o f the land cover change data. The assessment was to proceed when the States had provided all the final data sets and these had been checked and compiled. Major delays were experienced with the Queensland project, resulting in the projects final data sets not being available until end o f March 1999. As a result, information required for the assessment is still being collated.

23 The Department o f Finance and Administration erroneously allocated funds to this item in the 1997-98 Budget. To correct this problem, funds were transferred to appropriation item 2-932-00-05.

24 The Pork Industry Development Group Grant Program is demand driven, and demand for program funds in 1998-99 was less than anticipated.

25 In correcting the administrative error sited below, the Department of Finance and Administration mistakenly made available funding ($148,000) that had already been provided under an Advance to the Minister for Finance and Administration. As a result savings matching that amount were available and were set aside for return to the Consolidated Revenue Fund.

26 Due to the program not becoming fully operational until January 1999 and delays being experienced with some projects, expenditure was less than estimated for the 1998-99 financial year.

27 Successful applicants for grants under the program were not announced by the Minister for Agriculture, Fisheries and Forestry until March 1999, resulting in delays in expenditure.

2 3 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY - AUSTRALIA NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

1 9 9 8 -9 9 $

1997-98

$

NOTE 3 4 D etails o f R eserved M oney Fund (con tin u ed )

Natural R esou rces M anagem ent Fund

Under the authority o f the Natural R eso u rces M anagem ent (Financial A ssistance) A c t 1992, for the purposes o f granting financial assistance in connection with projects relating to natural resources management:

Opening Cash 3 1 5 726 96 382

Opening Investments 1 55 6 83 7 4 486 000

Opening Balance 1 8 7 2 563 4 582 382

Receipts: from appropriations 2 0 1 9 000 3 007 000

from other sources 3 3 3 0 3 1 8 170 172

from realisation o f investments 4 7 4 9 0 0 0 14 509 000

Expenditure: for operations 4 2 3 6 971 5 886 991

for purchase o f investments 5 2 7 9 000 11 579 837

Closing Cash 8 9 8 073 315 726

Closing Investments 2 0 8 6 83 7 1 556 837

Closing Balance 2 9 8 4 91 0 1 872 563

Private M onies

Services and P rojects for Other G overnm ent and N on-D epartm ental Bodies

Under the authority o f the Financial M anagem ent a n d A ccountability A ct 1997, for the purpose o f payment o f costs in connection with services performed on behalf o f other Government and non-departmental bodies:

Opening Cash 4 07 6 4 101 023

Opening Investments 2 9 7 0 00 0

Opening Balance 2 9 7 4 076 4 101 023

Receipts: from appropriations 12 0 0 0 000 -

from other sources 7 6 6 3 297 11 023 348

from realisation o f investments 2 9 7 0 000 -

Expenditure: for operations 5 9 8 6 580 12 150 295

for purchase o f investments - 2 970 000

Closing Cash 16 6 5 0 793 4 076

Closing Investments 2 970 000

Closing Balance 16 6 5 0 793 2 974 076

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

2 4 4 A F F A A N N U A L R E P O R T

1 9 9 8 - 9 9

A P P E N D I X 1 0

Audit Office Australian National

INDEPENDENT AUDIT REPORT

To the Minister for Agriculture, Fisheries and Forestry

S c o p e

I have audited the financial statements of the Australian Quarantine and Inspection Service Account for the year ended 30 June 1999. The financial statements comprise:

• Statement by Chief Executive Officer and Executive Director

• Statement o f Revenues and Expenses

• Balance Sheet

• Statement o f Cash Flows

• Schedule of Commitments

• Schedule of Contingencies, and

• Notes to the Financial Statements.

The Chief Executive Officer and Executive Director 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, o f 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 so as to present a view of the entity which is consistent with my

understanding o f its financial position, the results o f its operations and its cash flows.

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

GPO Box 707 CANBERRA ACT 2601 C entenary House 19 National Circuit BARTON ACT

Phone (02) 6203 7300 Fax (02) 6203 7777

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

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 o f the Finance Minister’s Orders, o f the financial position o f the Australian Quarantine and Inspection Service Account as at 30 June 1999 and the results o f its operations and its cash flows for the year then ended.

Australian National Audit Office

L „ sneral

Canberra 22 September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

A u s t r a l i a n Q u a r a n t i n e a n d I n s p e c t i o n S e r v i c e A c c o u n t

Q U A R A N T IN E A N D EX PO RT C E R T IF IC A T IO N D IV IS IO N S

ST A T E M E N T BY T H E C H IE F EXECUTIVE O FFICER A N D EXECUTIVE D IR E C T O R

In our opinion, the attached financial statements give a true and fair view of the matters required by Schedule 2 set out in the Commonwealth Authorities and Companies Orders (Amendment) 1998 (the Orders) issued by the Finance Minister.

K H Matthews Chief Executive Officer

P Hickey Executive Director

P f September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS STATEMENT OF REVENUES AND EXPENSES for the year ended 30 June 1999

Notes 1999 1998

$ $

OPERATING REVENUES (BEFORE ABNORMAL ITEMS) Sales of goods and services 1(D 52 9 2 6 8 0 4 49 943 517

Interest 5 13 106 20 267

Net gains from sales of assets 6(a) 68 188 24 587

Revenues from government 7 60 0 9 8 118 57 877 728

Other 8 11 701 3 3 4 8 518 832

Total op eratin g reven u es (before abnormal items) 124 8 0 7 550 116 384 931

OPERATING EXPENSES (BEFORE ABNORMAL ITEMS) Employees 1(f)

9 71 9 5 3 145 60 451 529

Suppliers 10

45 36 9 89 8 37 402 915

Depreciation and amortisation 11

4 84 9 35 8 3 954 608

Write-down of assets 12

1 0 0 4 185 639 794

Net losses from sales o f assets 6(b) 54 8 0 4 3 914

Losses re Asset Transfers 6(c) 3 7 3 242 Nil

Other 13

5 4 6 3 55 2 8 695 274

Total operating e x p e n se s (before abnormal items) 129 0 6 8 184 111 148 034

(D eficit) / Surplus o f op eratin g rev en u es over e x p e n se s (before abnormal items) (4 26 0 6 3 4 ) 5 236 897

Abnormal Items 14 Nil 5 709 517

(D eficit) / Surplus (4 26 0 6 3 4 ) 10 946 414

EQUITY INTERESTS (Deficit) / Surplus attributable to the Commonwealth 25

(4 260 6 3 4 ) 10 946 414

Accum ulated su rp lu ses at b egin n ing o f reporting period 25 10 9 4 6 4 1 4 n/a

Accum ulated su rp lu ses a t end o f reporting period 6 68 5 78 0 10 946 414

The accompanying notes form an integral part o f these financial statements

2 4 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

___

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS BALANCE SHEET as a t 3 0 Ju n e 1999

Notes 1999 1998

$ $

CURRENT ASSETS Cash l( i) , 15 73 9 32 2 15 521 443

Receivables 16

11 3 4 3 581 6 053 289

Inventories 1(c), 17 275 74 4 234 889

Other 18 2 128 3 0 4 3 991 156

Total current a s s e t s 14 4 8 6 95 1 25 800 777

NON-CURRENT ASSETS Receivables 19 5 2 5 9 517 5 484 517

Land and Buildings K d ),

20(a) 21 7 5 2 8 3 9 7 5 273 074

Infrastructure, plant and equipment 1(d), 20(b),

21

7 4 5 9 521 7 657 782

Intangibles 1(e),

20(c), 21

6 4 0 6 3 2 5 5 232 017

Total non-current a s s e t s 26 6 5 3 76 0 23 647 390

Total a s s e ts 4 1 14 0 71 1 49 448 167

CURRENT LIABILITIES Provisions and payables 1(9), 22 18 13 0 30 8 21 263 211

Total current liab ilities 18 13 0 30 8 21 263 211

NON-CURRENT LIABILITIES Provisions and payables 1(9), 23 13 5 8 4 36 5 15 359 165

Total non-current liab ilities 13 5 8 4 365 15 359 165

Total liabilities 31 7 1 4 67 3 36 622 376

N et a s s e ts 9 4 2 6 03 8 12 825 791

EQUITY Net liabilities on establishment 1 July 1997 25 15 9 4 7 8 159 478

Reserves 25 2 5 8 0 78 0 1 719 899

Accumulated surpluses 25 6 6 8 5 780 10 946 414

Total equity 9 4 2 6 0 3 8 12 825 791

The accompanying notes form an integral part o f these financial statements

1 1

A F F A ANNUAL REPORT 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS STATEMENT OF CASH FLOWS for the year ended 30 June 1999

Notes 1999

$

1998

$

OPERATING ACTIVITIES Cash received: Appropriations Sales o f goods and services

Interest Other revenue

7(a) 6 0 3 7 2 9 7 1

51 61 7 3 4 3

13 106

6 103 329

58 928 764 51 580 683 20 267 9 464 044

Total cash received 118 106 749 119 993 758

Cash used: Employees Suppliers Interest and other financing costs Other

(7 0 133 6 1 8 )

(45 78 7 8 6 3 )

(7 5 1 3 4 )

(6 4 9 2 9 3 4 )

(60 082 928) (34 731 021) (52 724) (9 805 075)

Total cash used (1 2 2 4 8 9 5 4 9 ) (104 671 748)

Net cash from (u sed by) op eratin g activities 26 ( 4 3 8 2 8 0 1 ) 15 322 010

INVESTING ACTIVITIES Cash received Proceeds from sales o f property, plant and Equipment 29 33 2 50 065

Total cash received 29 3 3 2 50 065

Cash used Purchase of property, plant and equipment (7 9 6 0 0 5 8 ) (5 868 711)

Total cash used (7 9 6 0 0 5 8 ) (5 868 711)

Net cash from (u sed by) in vestin g activities (7 9 3 0 7 2 6 ) (5 818 646)

FINANCING ACTIVITIES Cash received Contingency fund advance from the Commonwealth 2 0 0 0 000 Nil

Total cash received Cash used Payment to MID for establishment o f opening equity Repayment o f contingency fund advance

2 0 0 0 00 0

(2 4 6 8 5 9 4 )

(2 00 0 0 0 0 )

Nil

Nil Nil

(4 4 6 8 5 9 4 ) Nil

Total cash used Nil

N et cash from financing a ctiv ities (2 4 6 8 5 9 4 ) Nil

Net in crease (d e crea se) in cash held (1 4 7 8 2 1 2 1 ) 9 503 364

add cash at 1 July 15 521 4 4 3 6 018 079

Cash a t 30 June l(i), 15 739 3 2 2 15 521 443

The accompanying notes form an integral part o f these financial statements

2 5 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS SCHEDULE OF COMMITMENTS as at 30 June 1999

BY TYPE CAPITAL COMMITMENTS Infrastructure, plant and equipment

Total capital co m m itm en ts

OTHER COMMITMENTS Operating leases Other Commitments

Total other com m itm en ts

Total com m itm en ts p ayable

C om m itm ents receivable

N et com m itm en ts

BY MATURITY One year or less From one to two years From two to five years Over five years

N et com m itm en ts

Operating lea se co m m itm en ts One year or less From one to two years From two to five years Over five years

Operating lea se com m itm en ts

Notes 1999 1998

$ $

2 2 3 281 Nil

22 3 281 Nil

11 145 06 7 11 056 756

1 7 3 3 0 1 0 1 490 357

12 8 7 8 07 7 12 547 113

13 101 35 8 12 547 113

Nil Nil

13 101 3 5 8 12 547 113

6 193 8 9 9 5 694 312

1 4 8 0 6 8 3 2 618 499

1 8 8 2 783 2 994 280

3 5 4 3 9 9 3 1 240 022

13 101 3 5 8 12 547 113

4 2 3 7 6 0 8 4 203 955

1 4 8 0 6 8 3 2 618 499

1 8 8 2 783 2 994 280

3 5 4 3 9 9 3 1 240 022

11 145 0 6 7 11 056 756

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

1

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS SCHEDULE OF CONTINGENCIES as a t 3 0 J u n e 1999

Notes 1999

$

1998

$

CONTINGENT LOSSES Claims for damages/costs (see note below) Nil 20 000

Total con tin gen t lo sse s Nil 20 000

CONTINGENT GAINS Nil Nil

Net con tin gen cies Nil 20 000

NOTE: 1997-98 represents an estimated maximum liability in respect o f one common law claim unsettled as at 30 June 1998.

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NOTE 1 Summary o f Significant Accounting Policies

(a) Basis o f Accounting

(b) Taxation

(c) Inventories

(d) Property, plant and equipment

(e) Intangible Assets

(f) Employee expenses

(g) Liability for Employee Entitlements

(h) Bad and Doubtful Debts

(i) Cash

(j) Leases

(k) Resources Received Free o f Charge

(l) Revenue

(m) Revenue Rebate Liability

(n) Dividends

(o) Financial Instruments

(p) Comparative Figures

(q) Changes in Accounting Policies

NOTE 2 Segment Reporting

NOTE 3 Economic Dependency

NOTE 4 Subsequent Events

NOTE 5 Interest

NOTE 6 Net gains / losses from sales o f assets

(a) Net gains from sales of assets

(b) Net losses from sales o f assets

(c) Losses from asset transfers

NOTE 7 Revenues from Government

(a) Reconciliation of Revenues from Government to cash inflow from Appropriations

NOTE 8 Other Operating Revenue

(a) Provision o f Support Services to MID

(b) Interdepartmental staff movements

NOTE 9 Employee Expenses

(a) Superannuation Contributions

(b) Provision for Rostered days o ff

(c) Redundancy Payments

NOTE 10 Suppliers Expenses

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS fo r th e year ended 3 0 June 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e y e a r e n d e d 3 0 Ju n e 1999

NOTE 11 Depreciation and amortisation

(a) Depreciation and amortisation by asset class

NOTE 12 Write down of Assets

NOTE 13 Other expenses

NOTE 14 Abnormal Items

NOTE 15 Cash

NOTE 16 Current Receivables

NOTE 17 Inventories

NOTE 18 Other Current Assets

NOTE 19 Non-current Receivables

NOTE 20 Non Financial Assets

(a) Land and Buildings

(b) Infrastructure, plant and equipment

(c) Intangibles

NOTE 21 Analysis o f Property, Plant, Equipment and Intangibles

(a) TABLE A: Movement summary 1998-99 for all assets irrespective of valuation base

(b) TABLE B : Summary o f balances of assets held a t valuation as a t 30 June 1999

NOTE 22 Current provisions and payables

(a) Current liabilities to employees

(b) Current suppliers

(c) Other current liabilities

NOTE 23 Non-current provisions and payables

(a) Non-current liabilities to employees

(b) Other non-current liabilities

NOTE 24 Aggregate employee entitlement liability

(a) Employee entitlement liabilities

NOTE 25 Analysis o f Equity

(a) Asset Revaluation Reserve

NOTE 26 Cash Flow Reconciliation

NOTE 27 External Financing Arrangements

NOTE 28 Remuneration of Officers

NOTE 29 Auditors' Remuneration

NOTE 30 Financial Instruments

(a) Terms, conditions and accounting policies

(b) Interest rate risk

(c) Net Fair Values of Financial Assets and Liabilities

(d) Credit Risk Exposures

NOTE 31 Results By Program

2 5 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e yea r e n d e d 3 0 J u n e 1999

NOTE 1 Sum m ary o f Sign ifican t Accounting P olicies

(a) Basis of Accounting

The financial statements are a general purpose financial report.

The financial statements are required by section 49 of the Financial M anagem ent a nd A ccountability A ct 1 9 9 7 . The statements have been prepared in accordance with Schedule 2 o f Orders issued by the Minister for Finance and Administration in December 1998.

The financial statements have been prepared:

• in accordance with Australian Accounting Standards, other authoritative pronouncements o f the Australian Accounting Standards Boards and the Consensus Views o f the Urgent Issues Group; and

• having regard to Statements o f Accounting Concepts.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, the Department does not account for the effect o f changing prices on the results or the financial position.

(b ) Taxation

The Quarantine and Export Certification Divisions (QEC) is exempt from all forms o f taxation except for:

• fringe benefits tax; and

• state payroll tax in relation to functions undertaken by state departments under agency arrangements with QEC.

(c) In ven tories

Inventories held represent stores of consumables and other goods not held for resale. Inventories are brought to account where the aggregate value of a particular store exceeds $5,000 or where individual items exceed $1,000 within a store having a value o f less than $5,000.

Inventories are valued a t cost in accordance with AAS2 Inventories except where no longer required in which case they are valued at net realisable value. Cost is assigned to individual items of inventory using weighted average cost.

(d) Property, plant and eq u ip m en t

Cost and definition

Leasehold improvements are included in the classification o f buildings.

Infrastructure, plant and equipment balances consist o f operational assets, with an estimated useful economic life o f greater than one year. A minimum threshold o f $2,000 historical purchase cost has been applied to all infrastructure, plant and equipment assets except for information technology assets which have a minimum threshold o f $1,500 historical purchase cost. The balances reported in the Balance Sheet include property, plant and equipment acquired by State agencies on behalf o f AQIS from funds provided by AQIS. Assets with a

purchase cost o f less than $1,500 for information technology assets and $2,000 for all other infrastructure, plant and equipment assets are expensed in the year o f acquisition. These thresholds were selected because it facilitates efficient asset management and recording without materially affecting asset values recognised.

Valuation

Schedule 2 requires that property, plant and equipment be progressively revalued in accordance with the 'deprival' method o f valuation (as set out in the G uidelines on A ccounting Policy for Valuation o f A sse ts o f G overnm ent Trading Enterprises) by 1 July 1999 and thereafter be revalued progressively on that basis every three years. QEC is implementing its revaluations as follows :

• all land and buildings controlled by QEC were revalued by the Australian Valuation Office (AVO) as at 30 June 1998;

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

(f) Em ployee e x p e n s e s

Employee expenses in the Statement of Revenues and Expenses include all expenditure imposed by the employment of staff, such as employee remuneration, COMCARE premiums and Fringe Benefits Tax, but does not include expenditure associated with the activities o f employees, such as training and travel.

The value o f employer's contributions for superannuation paid to Comsuper for the administration and funding, as required, o f superannuation entitlements payable to QEC employees, is recorded as part of employee expenses.

(g ) Liability for E m ployee E n titlem en ts

The liability for employee entitlements encompasses provisions for annual leave, rostered days o ff 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 provisions for annual leave and rostered days o ff reflect the value o f total annual leave and rostered days off entitlements o f all employees at 30 June 1999 and are recognised at the nominal value.

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 o f all employees at 30 June 1999. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.

As at 30 June 1999, 117 staff transferred from QEC to other parts o f Department o f Agriculture, Fisheries and Forestry as part of a departmental restructure. Long service leave liability for these staff equal to the asset recognised for leave accrued prior to 1 July 1993 ($171,573) has been retained by QEC to be paid at the time the leave is taken or paid out. (Refer also NOTE 14)

(h) Bad and Doubtful D ebts

Bad debts are written o ff during the year in which they are identified. A provision for doubtful debts is raised regularly during the year and is evaluated at year end and adjusted if necessary based on a review of all outstanding accounts.

(i) Cash

For the purposes o f the Statement o f Cash Flows, 'cash' means cash on hand and cash equivalents. Cash equivalents include the Reserved Money Fund account balance held in the Commonwealth Public Account (refer NOTE 15).

(j) L eases

The classification of finance leases and operating leases complies with the definitions in Australian A ccounting Standard A A S17 - A ccounting fo r Leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to owners o f leased assets, while under operating leases, the lessor effectively retains the risks and benefits of ownership.

Where a non-current asset is acquired by means o f a finance lease, the asset is capitalised at the present value of minimum lease payments at the Inception o f the lease and a liability for lease payments recognised at the same amount. Lease payments are allocated between the principal component and the interest expense. Leased assets are amortised over the period o f the lease. At 30 June 1999 and in the prior year no assets were acquired by means o f a finance lease.

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

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

The consensus view o f the Urgent Issues Group - A bstract 3 - L essee A ccounting for Lease In c en tives u n d er a Non-cancellable Operating Lease, issued in August 1995, requires lease incentives incorporated in non-cancellable operating leases entered into on or after 6 July 1995 to be recognised as a liability:

• non-cancellable operating leases entered into by the Australian Quarantine and Inspection Service (AQIS) on or after 6 July 1995 have not incorporated any element o f lease incentive; and

• lease incentives incorporated into non- cancellable operating leases entered into by AQIS prior to 6 July 1995, have not been recognised as a liability.

(k ) R esources R eceived Free o f Charge

Resources received free of charge are recognised as revenues in the Statement of Revenues and Expenses where their fair value can be reliably measured. Use of resources is recognised as an expense or an asset, according to whether there is a long term benefit. (Refer NOTE 7 and 8).

( l ) R evenue

Commercial revenue represents fees and charges for quarantine and inspection services, consistent with Government policy. Receipts are deposited in the Consolidated Revenue Fund and then an equivalent amount is drawn from annual appropriations and paid into the Reserved Money Fund account.

(m ) R even u e R ebate Liability

Where commercial revenue exceeds the cost o f the service provided on an industry basis, this excess will be returned to industry, within the bounds permitted by legislation. Such over-recoveries are recognised as a Revenue Rebate liability, included in the balance o f current liabilities in the Balance Sheet (refer NOTE 22(c)).

QEC has reached agreement with each industry that a proportion o f any surplus may be retained to offset future losses (refer 0). The maximum amount which may be retained from an industry surplus is ten percent o f the cost o f the service provided during the current reporting year. Any such surplus retained can only be applied to reducing the deficit within the originating industry. This agreement reduces the impact o f cyclic industry performance on the rates at which cost recovery charges must be set. This portion o f the Revenue Rebate liability,

together with any other balance not expected to be returned to industry within twelve months, is reported as a non-current liability in the Balance Sheet (refer NOTE 23(b)).

(n ) Dividends

The Memorandum o f Understanding between AQIS and the Department of Finance and Administration specifies that AQIS is not required to pay a dividend.

(o ) Financial In strum en ts

The accounting policies adopted in relation to financial instruments are set out in NOTE 30.

(p ) Com parative figures

Where necessary, comparative figures have been adjusted to conform with changes in presentation in these financial statements.

(q ) C hanges in Accounting P olicies

The accounting policies are consistent with those o f the previous year except for the changes in accounting policy which have been identified in this note under their appropriate headings.

NOTE 2 S egm en t Reporting

QEC operates in the quarantine and food and livestock inspection industries primarily in Australia.

NOTE 3 Economic D ependency

QEC is controlled by the Government o f the Commonwealth o f Australia.

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

2 5 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e yea r e n d e d 3 0 J u n e 1999

QEC operates in a commercial environment, however, as part of a Commonwealth agency it has community service obligations and is dependent on annual appropriations from the Parliament o f the Commonwealth to meet these and other operational obligations.

NOTE 4 S u b seq u en t Events

Certified Agreement

A Certified Agreement, covering all staff except Meat Inspectors, was signed on 16 September 1998. Under the Agreement staff will receive a 2 percent salary increase on 16 September 1999. The impact of the salary increase on employee provisions and expenses has been brought to account in these Statements.

Increase in employee entitlement expense and provisions:

Annual leave 13 0 233

Long service leave 20 2 60 7

Total 3 3 2 8 4 0

R eview o f Border A g en cy A ctivities

In the Government's response to the Nairn report of August 1997 it was stated that further consideration would be given to more efficient arrangements to deliver customs, quarantine and immigration services at the barrier. During the 1998-99 deliberations, Cabinet decided that a further review on the possible rationalisation of the delivery of border agency services would be completed by September 1998 with implementation of any decisions expected by January 1999.

A Border Taskforce was established in July 1998 for this purpose headed by an independent chairman and including representation from the following agencies:

• Australian Customs Service;

• Australian Quarantine and Inspection Service;

• Department o f Finance and Administration; and

• Department of Immigration and Ethnic Affairs.

The Taskforce provided a Report on 30 September 1998. However, no decisions have been taken on the Report's recommendations and the potential impact on QEC's operations resulting from the Taskforce recommendations could not be determined prior to completion o f these financial statements.

R eview o f Food Regulation

An independent review of food regulation in Australia (the Blair review) was established by the Prime Minister in June 1997, with the purpose of finding ways to reduce the regulatory burden on the food sector and improve the clarity and efficiency o f food regulatory arrangements while maintaining public health and safety. The review was chaired by Dr Bill Blair.

The review presented its report, Food: a grow th industry, in August 1998, and recommended a strategic whole-of- Government approach to food regulation, including:

• the establishment of a single Commonwealth and State/Territory Council o f Food Ministers responsible for developing food regulations;

• development o f national uniform domestic food laws; and

• reductions in the number o f Commonwealth and State/Territory food regulatory agencies.

The Council o f Australian Governments (COAG) established a Senior Officials Working Group to develop a nationally co-ordinated approach to food regulations based on the recommendations o f the Blair report. The deadlines for the working group to present its findings to COAG is the end of September 1999 leading to a COAG decision on the Blair report by the end o f 1999.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 5 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 30 Ju n e 1999

1 9 9 9 1998

$ $

NOTE 5 In terest

Bank deposits 13 1 0 6 20 267

Total interest 13 10 6 20 267

NOTE 6 Net gain s / lo ss e s from s a le s o f a s s e ts

(a ) Net gain s from sa le s o f a s s e t s

Infrastructure, plant and equipment 67 8 4 5 24 587

Portable & attractive plant 3 4 3 Nil

Total net gains 68 188 24 587

(b) Net lo ss e s from sa le s o f a s s e t s

Infrastructure, plant and equipment 54 80 4 3 914

Total net losses 5 4 8 0 4 3 914

(c) L osses from a s s e t tran sfers

As at 30 June 1999, assets from QEC were transferred to other parts o f Department of Agriculture, Fisheries and Forestry as part of a departmental restructure.

NOTE 7 R even u es from G overnm ent

Parliamentary appropriations Community service obligations 39 38 1 97 2 39 229 698

Passenger movement charge 18 91 5 000 16 939 000

Subsidies 1 299 999 935 000

Long service leave (pre 1 July 1993) Nil 179 412

Sub-total Parliamentary appropriations 59 59 6 971 57 283 110

R esources received free o f charge Rent on international airport building, Federal Airports Corporation Nil 256 744

Sub-total resources received fre e o f charge Nil 256 744

O ther re ven u e from G overnm ent Grants received 266 4 3 6 73 466

Interest on Reserved Money Fund balance held in the Commonwealth Public Account 2 3 4 711 264 408

Sub-total o th e r re ven u e from G overnm ent 501 147 337 874

Total revenues from Government 60 09 8 118 57 877 728

2 6 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 $

1998 $

NOTE 7 (a ) R econciliation o f R ev en u es from G overnm ent to cash inflow from Appropriations Revenues from Government 60 0 9 8 118 57 877 728

Grant Revenue not received via Appropriation

(2 6 6 4 3 6 ) (73 466)

Accrued Revenue - Operating Subsidy 6 0 3 000 Nil

Accrued Interest on Trust Account (2 4 1 8 6 3 ) (264 408)

Interest Drawdown Nil 261 759

Interest Revenue adjustment transferred from MID 7 152 (22 849)

Drawdown for long service leave (pre 1 July 1993) 225 00 0 225 000

Prepaid CSO Revenue 31 3 000 560 000

Prepaid Quarantine Subsidy Revenue (3 6 5 0 0 0 ) 365 000

Total Cash Appropriation Inflow 60 3 7 2 97 1 58 928 764

NOTE 8 Other O perating R even u e R esources received fre e o f charge - in d e p e n d e n t bodies Rent on international airport buildings 5 5 4 5 1 0 264 504

Northern Territory Treasury corporate services support 116 725 116 725

Sub-to ta l resources received fre e o f charge - in d e p e n d e n t b odies 671 235 381 229

O ther operating revenue Ballast Water - National Heritage Trust 4 2 1 559 122 598

AFFA allocation - Office of the Chief Veterinary Office 172 237 226 132

AFFA allocation - for payment to Overseas Property Group Nil 241 000

Interdepartmental staff movements (refer NOTE 8(b) below) 7 4 9 763 Nil

Miscellaneous 9 1 0 4 0 9 581 126

Reduction in revenue rebate liability to offset deficits in the cost of services provided (refer NOTE l(m )) 2 9 4 3 131 57 747

Provision of support services to MID (refer NOTE 8(a) below) 5 8 3 3 0 0 0 6 909 000

S u b-total o th e r operating re v e n u e 11 0 3 0 0 9 9 8 137 603

Total other operating revenue 11 7 0 1 3 3 4 8 518 832

(a ) Provision o f Support S ervices to MID

In 1998-99 MID paid an agreed charge to QEC totalling $5,833,000 (1997-98: $6,909,000) fo r the provision of financial, information technology, human resource and technical support services.

(b ) In terd ep artm ental sta ff m ovem en ts

In 1998-99 a restructure o f the Department resulted in a transfer o f staff from AQIS to Department o f Agriculture, Fisheries and Forestry. The leave liabilities that were transferred include $366,753 annual leave liability and $383,010 long service leave liability.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 6 1

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 30 J u n e 1999

1999 1998

$ $

NOTE 9 Em ployee Expenses

R em uneration for services provided Salaries S3 0 4 7 4 7 9 45 742 139

Productivity and other allowances 2 5 6 6 677 780 693

Superannuation (refer NOTE 9(a) below) 7 4 9 9 3 5 6 6 336 764

Provision for rostered days o ff (refer NOTE 1(g) & NOTE 9(b) below)Nil 51 278 Provision for annual leave (refer NOTE 1(g)) 4 3 8 9 97 5 3 905 967

Provision for long service leave (refer NOTE 1(g)) 1 6 3 0 780 387 300

S u b-total rem uneration 69 1 3 4 267 57 204 141

Separation and redundancy payments - (refer NOTE 9(c) below) 3 8 4 293 182 481

O ther COMCARE premium 1 2 7 2 240 1 119 094

Fringe benefits tax 4 1 6 6 7 4 989 159

Other employee expenses 7 4 5 671 956 654

Sub-total oth er 2 4 3 4 585 3 064 907

Total employee expenses 71 9 5 3 145 60 451 529

(a) Superannuation Contributions

QEC 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 schemes are at rates calculated to cover existing and emerging obligations. Current contribution rates are 18.9% o f salary (CSS) and 10.1% of salary (PSS). An additional 3% is contributed for employer productivity benefits.

(b) Provision for R ostered d ays o ff

There are no RDOs for Veterinary Officers (part o f the AQIS Certified Agreement in August 1998).

(c) Redundancy P aym ents

The separation and redundancy expense is calculated on the basis o f two weeks pay for every year o f service by employees made redundant.

2 6 2 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 9 1998

$ $

NOTE 10 Suppliers E xp en ses

Sup p ly o f g o ods an d se rvices Audit Fees 1 0 6 5 0 7 96 800

Contractors and consultants 8 5 7 5 7 7 1 4 488 881

Conference and course Fees 1 235 6 6 3 1 169 160

Consumable items and assets less than $2,000 (refer NOTE 1(d)) 2 1 1 0 7 0 4 2 112 522

General administration expenses 4 3 0 5 4 8 9 2 459 088

Insurance 163 7 0 1 138 042

Payments to States for salaries, salary-related costs and corporate support under agency agreements 6 8 0 8 24 1 6 768 404

Printing and publications 1 3 9 2 4 4 2 865 139

Property operating expenditure 5 69 6 68 6 4 969 325

Postage and telecommunications 3 180 7 1 3 2 665 910

Repair, hire and maintenance o f equipment 7 8 2 5 3 7 1 177 193

Testing 28 9 153 302 911

Travel and transport 5 9 6 5 4 4 8 5 525 113

40 6 1 3 0 5 5 32 738 488

O perating lease rentals Buildings 2 56 5 50 9 2 862 036

Office equipment 176 9 3 7 41 731

Motor vehicles 2 0 1 4 3 9 7 1 760 660

S ub total 4 7 5 6 8 4 3 4 664 427

Total suppliers expenses 45 36 9 8 9 8 37 402 915

NOTE 11 Depreciation and am ortisation

Depreciation of property, plant and equipment 3 10 7 2 3 1 2 595 831

Amortisation of intangible assets 1 7 4 2 1 2 7 1 358 777

Total expense 4 8 4 9 3 5 8 3 954 608

(a) D epreciation and am ortisation by a s s e t class

The aggregate amounts o f depreciation or amortisation allocated during the reporting period for each class o f depreciable asset are as follows:

Buildings 83 7 8 3 61 629

Leasehold 4 4 4 5 4 8 378 798

Infrastructure, plant and equipment 2 5 7 8 9 0 0 2 155 404

Intangibles 1 7 4 2 1 2 7 1 358 777

Total allocated 4 8 4 9 3 5 8 3 954 608

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 6 3

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1 9 9 9 1998

$ $

NOTE 12 Write dow n o f A ssets

Financial A sse ts Receivables for goods and services 9 5 8 1 7 4 259 136

Non-financial a ssets Infrastructure, plant and equipment 4 6 O i l 380 658

Total write-down of assets 1 0 0 4 18 5 639 794

NOTE 13 Other e x p e n se s

Reimbursement to MID o f employee entitlement liabilities associated with staff transfers (refer NOTE 1(f)) Commonwealth contribution for containment and eradication o f Papaya Fruit Fly and Fireblight

Nil 831 422

5 4 6 3 5 5 2 7 863 852

Total other expenses 5 4 6 3 5 5 2 8 695 274

NOTE 14 Abnormal Item s

Included in the operating surplus is the following abnormal item

Recovery from the Commonwealth o f accrued long service leave entitlement costs relating to pre 1 July 1993 Nil 5 709 517

Total abnormal items Nil 5 709 517

Revenue of $5,709,517 was recognised in 1997-98 in recognition of the unfunded liability existing at 30 June 1993 (being the date o f establishment o f AQIS) for accrued long service leave. Funds were provided by the Government via annual appropriations, sufficient fo r AQIS to discharge its liability for long service leave which accrued prior to 30 June 1993 as staff take this leave o r receive payment in lieu on cessation. The Department o f Finance and Administration has confirmed tha t these arrangements will continue to apply fo r the foreseeable future.

NOTE 15 Cash

Cash on hand Cash at bank Reserved Money Fund held in the Commonwealth Public Account

4 8 0 2 8 33 407

91 6 7 9 735 212

59 9 6 1 5 14 752 824

Balance o f cash a s a t 3 0 June sh o w n in th e S ta tem en t o f Cash Flows 73 9 3 2 2 15 521 443

2 6 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

1999 1998

$ $

NOTE 16 Current R eceivab les

Goods and services 8 9 0 4 84 8 5 608 331

Provision for doubtful debts (3 2 9 8 7 2 ) (294 713)

8 57 4 976 5 313 618

Accrued Interest on the Reserved Money Fund 5 0 6 174 264 311

Recovery o f employee expenditure re-imbursed by COMCARE 77 5 6 4 77 564

Long service leave entitlements relating to pre 1 July 1993 2 2 5 000 225 000

Receivable from MID 1 9 4 3 8 0 8 Nil

Other debtors 16 0 5 9 172 796

Total receivab les 11 34 3 581 6 053 289

Receivables include receivables overdue by - less than 30 days 1 37 7 145 911 172

- 30 to 60 days 31 5 655 246 156

- more than 60 days 1 4 2 4 750 1 162 265

3 117 55 0 2 319 593

NOTE 17 In ven tories

Inventories not held for sale (at cost) (refer note NOTE 1(c)) 275 74 4 234 889

Total in ven tories 275 74 4 234 889

NOTE 18 Other Current A ssets Prepaid property rentals 263 671 350 373

Other prepayments 4 6 2 58 2 831 409

Accrued revenue 1 4 0 2 051 2 809 374

Total other current a s s e ts 2 128 30 4 3 991 156

NOTE 19 Non-current R eceivab les

Long service leave entitlements relating to pre 1 July 1993 5 25 9 51 7 5 484 517

Total non-current receivab les 5 259 51 7 5 484 517

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 6 5

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

NOTE 20 Non Financial A ssets

(a) Land and Buildings

Land - a t independent valuation 30/6/98 9 0 2 000 915 000

9 0 2 000 915 000

Buildings at cost 2 4 6 1 35 5 Nil

Accumulated depreciation (5 3 8 4 2 ) Nil

2 4 0 7 5 1 3 Nil

Buildings - at independent valuation 30/6/98 3 3 3 5 700 3 259 193

Accumulated depreciation (9 2 7 9 5 2 ) (843 758)

2 4 0 7 7 4 8 2 415 435

Leasehold improvements - at cost 2 56 6 209 2 290 831

Accumulated amortisation (8 5 6 115) (547 730)

1 71 0 09 4 1 743 101

Leasehold improvements - a t independent valuation 30/6/96 53 0 560 530 560

Accumulated amortisation (4 2 9 5 1 8 ) (331 022)

101 042 199 538

Total Land and Buildings 7 5 2 8 397 5 273 074

All land and buildings were restated to independent valuations determined by the Australian Valuation Office (AVO) as at 30 June 1998 in accordance with the deprival method o f valuation on the basis o f current market buying prices and depreciated replacement cost. The policy fo r valuation o f land and buildings is progressive

valuation commencing 1998-99 over a three year period on the basis of location.

Leasehold improvements tha t had been completed prior to 30 June 1995 were revalued by the AVO on the basis o f depreciated replacement cost as at 30 June 1996, using the gross method. Leasehold improvements tha t were completed subsequent to 30 June 1995 are reported at cost. All leasehold improvements will be revalued in

1999-00 and thereafter on a progressive basis every three years on the basis of location.

2 6 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

1 9 9 9 1998

$ $

NOTE 2 0 Non Financial A ssets (co n tin u ed )

(b) Infrastructure, plant and eq u ip m en t

Information Technology - at cost 2 8 6 3 3 4 5 9 687 433

Accumulated depreciation ( 1 6 7 7 3 5 3 ) (5 257 533)

1 185 9 9 2 4 429 900

Information Technology - at valuation 30/6/93 Nil 1 387 814

Accumulated depreciation Nil (1 350 086)

Nil 37 728

Information Technology - a t valuation 30/6/99 7 09 3 9 6 2 Nil

Accumulated depreciation (4 0 8 4 8 6 9 ) Nil

3 0 0 9 0 9 3 Nil

Total Inform ation Technology 4 195 0 8 5 4 467 628

Other plant and equipment - at cost 4 8 5 4 8 8 827 807

Accumulated depreciation (4 0 8 5 5 ) (181 337)

4 4 4 6 3 3 646 470

Other plant & equipment - at independent valuation 30/6/93 Nil 562 844

Accumulated depreciation Nil (132 287)

Nil 430 557

Other plant & equipment - at valuation 30/6/98 3 9 5 3 10 3 3 788 834

Accumulated depreciation (1 9 5 5 6 2 0 ) (1 675 707)

1 9 9 7 4 8 3 2 113 127

Other plant & equipment - a t valuation 30/6/99 1 5 1 3 7 5 7 Nil

Accumulated depreciation (6 9 1 4 3 7 ) Nil

8 2 2 3 2 0 Nil

Total other plant and eq u ip m en t 3 2 6 4 4 3 6 3 190 154

Total Infrastructure, Plant and Equipm ent 7 4 5 9 52 1 7 657 782

Plant and equipment have been revalued progressively over the financial years 1997-98 and 1998-99 by type of asset. In 1997-98 all office equipment, scientific equipment and furniture & fitting were revalued. In 1998-99 information technology (excluding suspended items), mobile plant 8i equipment and fixed plant & equipment were revalued.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 6 7

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

(c) In tan gib les

Computer software purchased - at cost 1 7 6 8 6 8 6 1 653 619

Accumulated amortisation (1 4 8 3 7 5 1 ) (1 181 511)

28 4 93 5 472 108

Computer software purchased - at valuation (30/6/93) 59 741 59 741

Accumulated amortisation (5 9 7 4 1 ) (59 741)

Nil Nil

Computer software developed in-house - at cost 6 3 6 5 4 0 2 4 105 126

Accumulated amortisation (2 6 3 7 3 4 5 ) (1 271 167)

3 7 2 8 05 7 2 833 959

Computer software developed in-house (work-in-progress) - at cost (refer note NOTE 1(e)) 2 39 3 333 1 925 950

Total In tan gib les 6 4 0 6 32 5 5 232 017

2 6 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NOTE 21 Analysis o f Property, Plant, Equipm ent and In ta n g ib les

(a) TABLE A: M ovem ent sum m ary 1 9 9 8 -9 9 for all a s s e t s irresp ective o f valu ation b ase

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

Item Land Buildings Total

Land 8i Buildings

Infra­

structure plant & eq u ip m en t

In tan gib les Total

$ $ $ $ $ $

Gross valu e as at 1 July 1998 9 1 5 00 0 6 0 8 0 584 6 9 9 5 5 8 4 16 2 5 4 7 3 2 7 7 4 4 4 3 6 30 9 9 4 75 2

Additions Nil 2 562 387 2 562 387 2 040 633 2 850 878 7 453 898

Revaluations Nil Nil Nil (724 658) Nil (724 658)

Disposals Nil (7 000) (7 000) (1 207 071) (5 742) (1 219 813)

Other movements (13 000) 402 610 389 610 (29 537) 3 389 363 462

Transfer to AFFA Nil (144 757) (144 757) (424 444) (5 799) (575 000)

Gross valu e a s at 30 June 1999 9 0 2 00 0 8 8 9 3 8 2 4 9 7 9 5 8 2 4 15 9 0 9 65 5 10 5 8 7 162 36 2 9 2 641

Accum ulated d ep reciation / am ortisation a s at 1 July 1998 n /a 1 7 2 2 510 1 7 2 2 5 1 0 8 5 9 6 95 0 2 5 1 2 4 1 9 12 8 3 1 8 7 9

Depreciation/ amortisation charge for assets held 1 July 1998 n /a 446 762 446 762 1 672 547 1 182 694 3 302 003

Depreciation/ amortisation charges for additions n /a 81 569 81 569 906 353 559 433 1 547 355

Adjustment for revaluations n /a Nil Nil (1 585 539) Nil (1 585 539)

Adjustment for disposals n /a (6 501) (6 501) (1 113 513) (5 742) (1 125 756)

Adjustment for other movements n /a 48 539 48 539 147 858 (66 181) 130 216

Transfer to AFFA n /a (25 452) (25 452) (174 522) (1 786) (201 760)

Accumulated d ep reciation / am ortisation a s at 30 June 1999 n /a 2 2 6 7 42 7 2 2 6 7 4 2 7 8 4 5 0 134 4 1 8 0 8 3 7 14 89 8 3 9 8

Net book value a s at 30 June 1999 9 0 2 0 0 0 6 6 2 6 39 7 7 5 2 8 397 7 4 5 9 521 6 4 0 6 3 2 5 21 3 8 4 243

Net book value a s at 1 July 1998 9 1 5 0 0 0 4 3 5 8 07 4 5 2 7 3 0 7 4 7 6 5 7 782 5 2 3 2 0 1 7 18 162 87 3

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 6 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

NOTE 21 Analysis o f Property, Plant, Equipm ent and In ta n g ib les (continued

(b) TABLE B: Summary o f b alan ces o f a s s e t s held at valu ation a s a t 30 June 1999

Item Land Buildings Total Infra­ In tan gib les Total

Land 8t structure

Buildings plant &

equipm ent

$ $ $ $ $ $

As at 30 June 1999

Gross value 9 0 2 0 0 0 3 8 6 6 260 4 7 6 8 26 0 12 5 6 0 8 2 2 59 741 17 3 8 8 823

Accumulated depreciation / amortisation n/a (1 357 470) (1 357 470) (6 731 926) (59 741) (8 149 137)

Other movements Nil Nil Nil Nil Nil Nil

N et book value 9 0 2 0 0 0 2 5 0 8 790 3 4 1 0 7 9 0 5 8 2 8 89 6 Nil 9 2 3 9 686

As a t 30 June 1998

Gross valu e 9 1 5 0 0 0 3 78 9 753 4 7 0 4 7 5 3 5 73 9 4 9 2 59 741 10 5 0 3 986

Accumulated depreciation / amortisation n/a (1 174 780) (1 174 780) (3 158 080) (59 741) (4 392 601)

Other movements Nil Nil Nil Nil Nil Nil

Net book value 9 1 5 0 0 0 2 6 1 4 973 3 5 2 9 9 7 3 2 5 8 1 41 2 Nil 6 111 385

-

2 7 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

1 9 9 9 1998

$ $

NOTE 22 Current p rovisions and p ayab les

(a) Current liabilities to em p lo y ees

Salaries and wages 1 253 8 7 7 1 065 948

Annual leave 3 16 8 4 0 7 3 371 679

Rostered days o ff 4 1 8 8 21 584

Long service leave 3 2 5 7 1 6 440 998

Total current liab ilities to em p lo y ees 4 7 5 2 18 8 4 900 209

(b) Current suppliers

Trade creditors and accruals 3 8 2 2 4 9 7 6 876 933

Operating lease rentals 3 2 9 3 8 2 145 658

Total current suppliers 4 151 8 7 9 7 022 591

(c) Other current liabilities

G overnm ent liabilities Interest on contingency funds drawn down and repaid during the year 37 16 0 Nil

Other 4 5 2 8 6 365 000

Sub-total G overnm ent liabilities 8 2 4 4 6 365 000

N on-governm ent liabilities Payable to MID Nil 2 468 594

Ballast water research funds 1 5 7 8 73 1 877 402

Revenue in advance 4 0 2 1 15 6 2 523 483

Revenue Rebate (refer NOTE l(m )) 3 54 3 9 0 8 3 105 932

Sub-total N on-G overnm ent liabilities 9 143 7 9 5 8 975 411

Total other current liab ilities 9 2 2 6 2 4 1 9 340 411

Total current p rovisions and p ayab les 18 130 3 0 8 21 263 211

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

NOTE 23 Non-current provisions and payables

(a ) Non-current liabilities to e m p lo y e e s

Annual Leave 3 14 3 4 4 8 2 271 599

Long Service Leave 9 2 1 0 3 1 6 8 330 380

Total non-current liabilities to em p lo y ees 12 3 5 3 7 6 4 10 601 979

(b) Other non-current liabilities

Revenue Rebate (refer NOTE l(m )) 1 23 0 601 4 757 186

Total other non-current liabilities 1 23 0 601 4 757 186

Total non-current provisions and payab les 13 5 8 4 365 15 359 165

NOTE 24 A ggregate em p lo y ee en titlem en t liability

Current liabilities to employees 4 7 5 2 188 4 900 209

Non-current liabilities to employees (refer NOTE (a) below) 12 3 5 3 7 6 4 10 601 979

Accrued superannuation (included in the balance o f Trade creditors and accruals (refer NOTE 22(b)) 109 3 1 8 90 925

A ggregate em p lo y ee en titlem en t liability 17 2 1 5 270 15 593 113

(a) Em ployee en titlem en t liabilities

The discount rate used to measure the present value o f the provisions included in the aggregate employee entitlement liability above is 5% (1997-8: 5% ). This discount rate reasonably reflects attrition rates and pay increases through promotion and inflation fo r the Commonwealth public sector as a whole.

NOTE 25 Analysis o f Equity

N et liabilities on estab lish m en t $

Balance 1 July 1 9 9 8 15 9 47 8

Surplus/(Deficit) Nil

Net revaluations increases/ (decreases) (refer NOTE 25(a) below) Nil

Balance 30 June 1999 15 9 4 7 8

A ccu m u lated A sset Revaluation TOTAL EQUITY resu lts R eserve

$ $ $

10 9 4 6 4 1 4 1 71 9 89 9 12 8 2 5 791

(4 260 634) Nil (4 260 634)

Nil 860 881 860 881

6 68 5 7 8 0 2 5 8 0 78 0 9 4 2 6 0 3 8

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

NOTE 25 Analysis o f Equity (con tin u ed )

(a) A sset Revaluation R eserve

The net revaluation increase in the asset revaluation reserve comprises: Revaluation increment - land Revaluation increment - buildings Revaluation increment - plant and equipment

1999 $

19978

$

Nil 3 3 8 5 0 0

Nil 5 1 5 581

8 6 0 8 8 1 8 6 5 8 1 8

860 881 1 719 899

NOTE 26 Cash Flow R econciliation

R econciliation of op eratin g surplus to n et cash from operating activities

Surplus (4 2 6 0 6 3 4 ) 10 946 414

Depreciation and amortisation of property, plant 8i equipment 3 10 7 231 2 595 831

Amortisation o f intangible 1 7 4 2 127 1 358 777

Profit on disposal of assets (6 8 1 8 8 ) (24 587)

Loss on disposal o f assets 54 8 0 4 3 914

W rite-off o f non-financial assets 4 6 01 1 380 658

Losses re Asset transfers 3 7 3 2 4 2 Nil

Decrease (increase) in receivables for goods and services (3 26 1 3 5 8 ) (668 135)

Decrease (increase) in receivables from the Commonwealth (1 6 8 6 3 ) (5 691 264)

Decrease (increase) in other receivables 1 5 6 737 175 596

Decrease (increase) in accrued revenue 1 4 0 7 32 3 (752 365)

Decrease (increase) in inventories (4 0 8 5 5 ) (2 372)

Decrease (increase) in prepayments 4 5 5 529 (150 250)

Decrease (increase) in receivable from MID (1 94 3 8 0 8 ) Nil

Increase (decrease) in creditors (2 56 5 7 0 2 ) 3 776 717

Increase (decrease) in payable to MID Nil (899 477)

Increase (decrease) in other current liabilities 1 2 1 5 119 2 191 586

Increase (decrease) in revenue rebate (2 38 7 280) 1 712 366

Increase (decrease) in employee liabilities 1 6 0 3 7 6 4 368 601

Net cash from (u sed by) op eratin g activities (4 38 2 8 0 1 ) 15 322 010

NOTE 27 External Financing A rrangem ents

In 1998-99 QEC had access to a Contingency Fund appropriation to the extent o f $5 million provided to meet short term cash requirements. Funds accessed from this appropriation must be repaid in the same year as funds are drawn. Interest is charged on borrowings from this Fund at a rate equivalent to the weighted average yield of the relevant 13 week Treasury Note issue plus 0.75% calculated on a compounding basis. Borrowings of

$2 million were made and repaid from this Fund during 1998-99.

In 1999-00 the available Contingency Fund totals $5 million.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

- -

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

1 9 9 9 19978

$ $

NOTE 28 R em uneration o f Officers

Income received or due and receivable by officers 1 8 6 4 229 1 130 774

The number of officers included in these figures are shown below in the relevant income bands 1998 -99 1997-98

Number Number

$100 000 - $110 000 1 6

$110 000 - $120 000 8 0

$120 000 - $130 000 0 0

$130 000 - $140 000 0 2

$140 000 - $150 000 3 0

$150 000 - $160 000 0 1

$160 000 - $170 000 0 1

$170 000 - $180 000 1 0

$180 000 - $190 000 1 0

The aggregate amount of performance pay received, or due and receivable, by officers was $25,866 (1997-98: $nil).

NOTE 29 Auditors' Rem uneration

Cost of auditing the financial statements foi the reporting period 106 50 7 96 800

The auditing services are provided by the Australian National Audit Office (ANAO) free of charge. QEC is required to pay to DPIE's CRF Miscellaneous Receipt account an amount equal to the cost o f the audit and thus an expense for the cost o f the audit services fo r the financial year has been recognised. No other services were provided by the Auditor-General during the reporting period.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

NOTE 3 0 F in a n c ia l I n s t r u m e n t s

(a ) T erm s, c o n d itio n s a n d a c c o u n tin g p olicies

The accounting policies, including the terms and conditions of each class of financial asset and financial liability at the balance date, are as follows:

Financial Instruments Notes Accounting Policies and Methods (including recognition criteria and measurement basis) Nature of underlying instrument (including significant terms & conditions affecting the

amount, timing and certainty of cash flows)

Financial Assets

Cash at Bank 15

Reserved Money Fund 15 held in Commonwealth Public Account

Receivables for goods 16 and services / accrued 18 revenue

Receivable from MID 16

Other debtors 16

Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.

Interest on collectors receipt accounts is credited to revenue as it accrues.

Interest on the Reserved Money Fund is credited to revenue as it accrues.

Trade receivables are recognised at the nominal amounts due less any provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable. Accrued revenue is recognised at the nominal amounts due.

Amounts receivable from MID are carried at nominal amounts due. No interest charge has been applied.

As for receivables for goods and services.

Deposits to collectors receipt accounts are transferred daily to the holding account with the Reserve Bank prior to being paid into the Consolidated Revenue Fund.

Interest is earned on the daily balance at the prevailing daily rate for money on call and is paid at month end.

Deposits to the Reserved Money Fund are effected through annual appropriation.

Interest is earned on the daily balance at the weighted average yield of the relevant 13 week Treasury Note Issue calculated on a compounding basis.

Credit sales are on 28 day terms (1997-98: 28 days)

Payment to be received in 1999-00.

As for receivables for goods and services.

Amounts recognised as revenue rebate liabilities and industry research funds are returned to industry in accordance with industry recommendations and within the bounds permitted by legislation.

NOTE 30 Financial In strum en ts (con tin u ed )

(b) Interest rate risk

QEC's exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities at the balance sheet date are as follows:

Financial Assets (Recognised)

Cash at Bank 15 91 679

Cash on Hand 15 -

Reserved Money Fund 15 599 615

Receivables for goods and services / accrued revenue 16,18 Receivable from MID 16 -

Other debtors 16 -

Total Financial Assets (Recognised) 691 294

Total assets

Financial Liabilities (Recognised)

Trade creditors & accruals 22

Industry liabilities 22,23 -

Payable to MID 22 -

Other liabilities 22 37 160

Total Financial Liabilities (Recognised) 37 160

Total Liabilities

601 901 - 133 311 91 679

- 48 028 33 407 48 028

14 752 824 - - 599 615

- 9 977 027 8 122 992 9 977 027

1 943 808 - 1 943 808

- 599 797 514 671 599 797

15 354 725 12 568 660 8 804 381 13 259 954

41 140 711

- 5 076 374 7 942 881 5 076 374

- 6 353 240 8 740 520 6 353 240

- - 2 468 594 -

- 45 286 365 000 82 446

- 11 474 900 19 516 995 11 512 060

31 714 673

735 212

33 407

14 752 824

8 122 992

514 671

24 159 106

49 448 167

7 942 881

8 740 520

2 468 594

365 000

19 516 995

36 622 376

Weighted Average Effective Interest Rate

1998-99 1997-98

% %

2.27 3.9

n /a n/a

4.76 4.91

n /a n/a

n /a n/a

n /a n/a

n /a n/a

n /a n/a

n /a n/a

5.51 n/a

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

(c) N et Fair Values of Financial A sse ts and Liabilities

The aggregate net fair values o f financial assets and financial liabilities, both recognised and unrecognised, at the balance date, are as follows:

Total carrying am ou n t a s A ggregate n et fair value

per th e b alan ce sh e e t

N ote 1999 1998 1999 1998

$ $ $ $

Financial a s s e ts

Cash a t bank 15 91 6 7 9 735 212 91 67 9 735 212

Cash on hand 15 4 8 0 2 8 33 407 48 02 8 33 407

Reserved Money Fund 15 59 9 61 5 14 752 824 59 9 61 5 14 752 824

Receivables fo r goods and 16

services / accrued revenue 18 9 9 7 7 02 7 8 122 992 9 9 7 7 0 2 7 8 122 992

Receivables from MID 16 1 9 4 3 8 0 8 Nil 1 9 4 3 8 0 8 Nil

Other debtors 16 59 9 79 7 514 671 5 9 9 7 9 7 514 671

Total Financial A ssets (R ecogn ised ) 13 3 5 9 9 5 4 24 159 106 13 3 5 9 9 5 4 24 159 106

Financial Liabilities Trade creditors 8i accruals 22 5 0 7 6 3 7 4 7 942 881 5 0 7 6 3 7 4 7 942 881

Industry liabilities 22

23 6 3 5 3 240 8 740 520 6 35 3 240 8 740 520

Payable to MID 22 Nil 2 468 594 Nil 2 468 594

Other liabilities 22 8 2 4 4 6 365 000 82 4 4 6 365 000

Total Financial Liabilities (R ecogn ised ) 11 5 1 2 06 0 19 516 995 11 5 1 2 0 6 0 19 516 995

Financial A sse ts The net fair values of all monetary financial assets approximates their carrying amounts.

None o f the classes of financial assets are readily traded on organised markets in standardised form.

Financial Liabilities The net fair values of all monetary financial liabilities are approximated by their carrying amounts.

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

(d ) Credit Risk E xposures QEC's maximum exposures to credit risk at reporting date in relation to each class of recognised financial asset is the carrying amount o f those assets as indicated in the Balance Sheet.

QEC has no significant exposures to any concentrations of credit risk.

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

2 7 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE ACCOUNT QUARANTINE AND EXPORT CERTIFICATION DIVISIONS NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

NOTE 31 R esults By Program

The operating results fo r QEC's recoverable programs are provided below.

O perating R esult Prior to Transfers (to )/fr o m R evenue R eb ate A ccounts

Transfers

(to )/fr o m R evenue R eb ate A ccounts R efer NOTE 2 2 & 23

Operating Result After Transfers (to )/fr o m R evenue R eb ate Accounts

Program 1 9 9 8 -9 9 1997-98 1 9 9 8 -9 9 1997-98 1 9 9 8 -9 9 1997-98

$ 0 0 0 $000 $ 0 0 0 $000 $ 0 0 0 $000

Live Animal Exports (1 3 1 ) (291) Nil 57 (1 3 1 ) (234)

Grain Exports 1 2 5 9 274 (1 2 5 9 ) (274) Nil Nil

Horticultural Exports (3 5 0 ) (61) 15 (7) (3 3 5 ) (68)

Dairy (2 9 ) 147 29 (147) Nil Nil

Fish (1 0 ) 241 10 (241) Nil Nil

Post Entry Animal 3 6 7 577 n /a n/a 3 6 7 577

Quarantine Import Clearance (2 5 4 5 ) 2 062 2 5 4 5 (2 062) Nil Nil

Mail Exchanges 24 6 38 (2 4 6 ) n/a Nil 38

Post Entry Plant (1 1 ) Nil 11 Nil Nil Nil

Airports (1 7 2 9 ) 1 265 n /a n/a (1 7 2 9 ) 1 265

Seaports ( 5 7 3 ) 178 3 3 4 (178) (2 3 9 ) Nil

Total (3 5 0 6 ) 4 430 1 4 3 9 (2 852) ( 2 0 6 7 ) 1 578

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 7 9

A P P E N D I X 1 0

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warn ; ■

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A P P E N D I X 1 0

INDEPENDENT AUDIT REPORT

To the Minister for Agriculture, Fisheries and Forestry

I have audited the financial statements of the Meat and Inspection Service Account for the year ended 30 June 1999. The financial statements comprise:

• Statement by Chief Executive Officer and Executive Director

• Statement of Revenues and Expenses

• Balance Sheet

• Statement of Cash Flows

• Schedule o f Commitments

• Schedule o f Contingencies, and

• Notes to the Financial Statements.

The Chief Executive Officer and Executive Director 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, o f 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 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.

GPO Box 707 CANBERRA ACT 2601 C entenary House 19 National Circuit BARTON ACT

Phone (02) 6203 7300 Fax (02) 6203 7777

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 8 1

A P P E N D I X 1 0

Audit Opinion

In my opinion,

(i) the financial statements have been prepared in accordance with Schedule 2 o f 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 o f the Finance Minister’s Orders, o f the financial position o f the Australian Quarantine and Inspection Service Account as at 30 June 1999 and the results o f its operations and its cash flows for the year then ended.

Australian National Audit Office

Canberra 22 September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

M EA T A N D IN S P E C T IO N SERV ICE A C C O U N T

M EA T IN S PE C T IO N D IV IS IO N

ST A T E M E N T BY T H E CH IEF EXECUTIVE O FFICER A N D EXECUTIVE D IR E C T O R

In our opinion, the attached financial statements give a true and fair view of the matters required by Schedule 2 set out in the Commonwealth Authorities and Companies Orders (Amendment) 1998 (the Orders) issued by the Finance Minister.

Chief Executive Officer

P Hickey Executive Director

2- 2- September 1999 September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION

STATEMENT OF REVENUES AND EXPENSES fo r the year ended 30 June 1999

N otes 1999

$

1998

$

OPERATING REVENUES (BEFORE ABNORMAL ITEMS) S a le s o f g o o d s and s erv ices 1(1) 54 6 9 2 261 5 8 6 1 7 9 1 6

In terest 6 9 7 8 5 3 441

N et g a in s from s a le s o f a s s e ts 7 (a ) 29 275 2 9 571

R e v en u es from go v ern m en t 8 11 7 5 3 9 6 0 2 2 5 4 2 103

Other 9 2 5 5 525 1 3 5 4 990

T otal o p e ra tin g re v e n u e s (b efo re abnorm al item s) 66 74 0 80 6 8 2 5 4 8 021

OPERATING EXPENSES (BEFORE ABNORMAL ITEMS) E m ployees 1(f), 10 48 28 8 06 3 61 5 7 3 4 9 9

Suppliers 11 16 6 4 4 71 4 16 6 5 3 781

D epreciation and am ortisation 12 4 7 4 0 3 6 3 4 0 3 1 9

W rite-dow n o f a s s e ts 13 9 6 3 2 4 2 1 7 349

N et lo s s e s from s a le s o f a s s e ts 7 (b ) 7 3 0 8 3 0 162

L oss on revaluation o f a s s e ts 12 176 Nil

In terest 14 1 2 5 686 Nil

T otal o p e ra tin g e x p e n s e s (b efo re abnorm al item s) 65 6 4 8 30 7 7 8 8 1 5 110

S u rp lu s o f o p e ra tin g re v e n u e s o v e r e x p e n s e s (b efo re abnorm al item s) 1 0 9 2 4 9 9 3 7 3 2 911

Abnormal I te m s 15 Nil 8 8 5 0 0 1 6

S u rp lu s 1 0 9 2 4 9 9 12 5 8 2 9 2 7

EQUITY INTERESTS

Surplus attributable to th e C om m on w ealth 2 6 1 0 9 2 49 9 12 5 8 2 9 2 7

A ccu m u lated su rp lu s e s a t b e g in n in g o f re p o rtin g p erio d 2 6 12 5 8 2 92 7 n /a

A ccu m u lated s u r p lu s e s a t e n d o f re p o rtin g p eriod 13 6 7 5 4 2 6 12 5 8 2 9 2 7

T he accom p an yin g n o te s form an integral part o f th e s e financial s ta te m e n ts

2 8 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION BALANCE SHEET

a s a t 3 0 J u n e 1999

CURRENT ASSETS

Cash

R eceivab les

In ven tories O ther

T otal c u r re n t a s s e ts

NON-CURRENT ASSETS

R eceivab les Land and Buildings

Infrastructure, plant an d eq u ip m en t In tan gib les

T otal n o n -c u rre n t a s s e t s

T o ta l a s s e ts

CURRENT LIABILITIES

Provisions and p ayab les

T otal c u r r e n t liab ilities

NON-CURRENT LIABILITIES

Provisions and p ayab les

T otal n o n -c u rre n t liab ilities

T otal liabilities

N et a s s e ts (lia b ilities)

EQUITY

N et liabilities on esta b lish m e n t 1 July 1 9 9 7 Capital contribution R eserv es

A ccum ulated su rp lu ses

T otal e q u ity

N otes 1 9 9 9 1998

$ $

1 (0 / 16 2 1 5 8 5 3 8 2 6 5 3 8 2 9

17 18 9 6 6 5 0 7 2 0 7 3 7 9 6 8

1 (c ), 1 8 29 1 5 0 5 5 1 6 192

19 4 1 6 5 1 0 1 3 6 5 5 4 3 4

25 5 8 1 6 5 1 2 7 5 6 3 4 2 3

20 6 5 2 9 3 8 7 8 6 2 5 0 1 6

1 (d ), 2 1 (a ), 22 3 0 2 3 8 4 7 6 0 592

1 (d ), 2 1 (b ), 22 3 8 5 141 6 6 8 267

1 (e ), 2 1 (c ), 22 4 6 9 1 0 0 3 1 6 753

7 6 8 6 0 1 2 10 3 7 0 628

33 2 6 7 6 6 3 3 7 9 3 4 051

1 (9 ), 23 11 6 8 4 2 6 4 16 4 0 3 772

11 6 8 4 2 6 4 16 4 0 3 772

1 (9 ), 2 4 11 8 1 6 7 5 9 12 8 5 6 138

11 8 1 6 7 5 9 12 8 5 6 138

23 5 0 1 0 2 3 2 9 2 5 9 9 1 0

9 7 6 6 6 4 0 8 6 7 4 141

26 (5 0 5 6 8 5 7 ) (5 0 5 6 857)

26 1 00 0 0 0 0 1 0 0 0 000

26 14 8 07 1 148 071

2 6 13 67 5 4 2 6 12 5 8 2 9 2 7

9 76 6 6 4 0 8 6 7 4 141

T he a c com p an yin g n o t e s form an integral part o f th e s e financial s ta te m e n ts

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 8 5

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION STATEMENT OF CASH FLOWS for th e year e n d e d 3 0 Ju n e 1999

Notes 1999

$

1998

$

OPERATING ACTIVITIES

Cash received: Appropriations Sales of goods and services Interest Other

8(b) 12 8 4 7 99 6

54 781 236

9 785

27 9 96 8

23 878 150 59 318 016 3 441 2 253 249

Total cash received 67 9 1 8 98 5 85 452 856

Cash used: Employees Suppliers Interest and other financing costs

(5 6 137 0 7 2 )

(1 4 5 1 7 5 2 4 )

(1 1 3 6 4 )

(67 911 146) (16 121 032) (28 734)

Total cash used (7 0 66 5 9 6 0 ) (84 060 912)

N et cash from (u sed by) op eratin g activities 27 (2 7 4 6 9 7 5 ) 1 391 944

INVESTING ACTIVITIES

Cash received Proceeds from sales of property, plant and equip 2 0 0 537 352 230

Total cash received 20 0 53 7 352 230

Cash used Purchase o f property, plant and equipment (4 1 7 4 4 7 ) (90 435)

Total cash used (4 1 7 4 4 7 ) (90 435)

Net cash from (u sed by) in vestin g activities (2 1 6 9 1 0 ) 261 795

FINANCING ACTIVITIES

Cash received Capital injection Contingency fund advance from the Commonwealth

2 4 6 8 5 9 4

2 0 0 0 0 0 0

1 000 000 5 000 000

Total cash received 4 4 6 8 594 6 000 000

Cash used Repayment o f contingency fund advance (2 0 0 0 0 0 0 ) (5 000 000)

Total cash used (2 0 0 0 0 0 0 ) (5 000 000)

N et cash from financing a ctivities 2 4 6 8 59 4 1 000 000

N et in crease (d e crea se) in cash held (4 9 5 291) 2 653 739

add cash at 1 July 16 2 65 3 8 2 9 90

Cash a t 30 June l(i),1 6 2 15 8 538 2 653 829

The accompanying notes form an integral part o f these financial statements

2 8 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION SCHEDULE OF COMMITMENTS as a t 3 0 J u n e 1999

1 9 9 9 1998

$ $

BY TYPE

CAPITAL COMMITMENTS Infrastructure, plant and equipment 5 0 4 4 Nil

Total capital co m m itm en ts 5 0 4 4 Nil

OTHER COMMITMENTS Operating leases 8 6 5 4 1 1 1 514 640

Other Commitments 12 3 6 6 9 300 984

Total oth er com m itm en ts 9 8 9 0 8 0 1 815 624

Total com m itm en ts p ayab le 9 9 4 1 2 4 1 815 624

C om m itm ents receivab le Nil Nil

N et com m itm en ts 9 9 4 1 2 4 1 815 624

BY MATURITY One year or less 8 0 7 7 6 3 1 184 881

From one to two years 1 5 0 3 7 3 428 115

From two to five years 3 5 9 8 8 202 628

Over five years Nil Nil

N et com m itm en ts 9 9 4 1 24 1 815 624

O perating lea se com m itm en ts One year or less 6 7 9 0 5 0 883 897

From one to two years 1 5 0 3 7 3 428 115

From two to five years 3 5 9 8 8 202 628

Over five years Nil Nil

O perating lea se co m m itm en ts 8 6 5 4 1 1 1 514 640

The accompanying notes form an integral part o f these financial statements

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 8 7

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION

SCHEDULE OF CONTINGENCIES as at 30 June 1999

1999 1998

$ $

CONTINGENT LOSSES Claims for damages/costs Nil Nil

Total con tin gen t lo sse s Nil Nil

CONTINGENT GAINS Nil Nil

Net con tin gen cies Nil Nil

2 8 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for th e year e n d e d 3 0 Ju n e 1999

NOTE 1 Summary o f Significant Accounting Policies

(a) Basis o f Accounting

(b) Taxation

(c) Inventories

(d) Property, plant and equipment

(e) Intangible Assets

(f) Employee expenses

(g) Liability for Employee Entitlements

(h) Bad and Doubtful Debts

(i) Cash

(j) Leases

(k) Resources Received Free o f Charge

(l) Revenue

(m) Dividends

(n) Financial Instruments

(o) Comparative Figures

(p) Changes in Accounting Policies

NOTE 2 Segment Reporting

NOTE 3 Economic Dependency

NOTE 4 Subsequent Events

NOTE 5 Reform Process

NOTE 6 Interest

NOTE 7 Net gains / losses from sales o f assets

(a) Net gains from sales o f assets

(b) Net losses from sales o f assets

NOTE 8 Revenues from Government

(a) Surplus Staff

(b) Reconciliation of Revenues from Government to cash inflow from Appropriations

NOTE 9 Other Operating Revenue

NOTE 10 Employee Expenses

(a) Superannuation Contributions

(b) Provision for Rostered days o ff

(c) Redundancy Payments

NOTE 11 Suppliers Expenses

(a) Support Services Expenses

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 8 9

A P P E N D I X 1 0

NOTE 12 Depreciation and amortisation

(a) Depreciation and amortisation by asset class

NOTE 13 Write down o f Assets

NOTE 14 Interest Expense

NOTE 15 Abnormal Items

NOTE 16 Cash

NOTE 17 Current Receivables

NOTE 18 Inventories

NOTE 19 Other Current Assets

NOTE 20 Non-Current Receivables

NOTE 21 Non Financial Assets

(a) Land and Buildings

(b) Infrastructure, plant and equipment

(c) Intangibles

NOTE 22 Analysis o f Property, Plant, Equipment and Intangibles

(a) TABLE A: Movement summary 1998-99 for all assets irrespective o f valuation base

(b) TABLE B : Summary o f balances of assets held at valuation as at 30 June 1999

NOTE 23 Current provisions and payables

(a) Current liabilities to employees

(b) Current suppliers

(c) Other current liabilities

NOTE 24 Non-current provisions and payables

(a) Non-current liabilities to employees

NOTE 25 Aggregate employee entitlement liability

(a) Employee entitlement liabilities

NOTE 26 Analysis o f Equity

(a) Asset Revaluation Reserve

NOTE 27 Cash Flow Reconciliation

NOTE 28 External Financing Arrangements

NOTE 29 Remuneration o f Officers

NOTE 30 Auditors' Remuneration

NOTE 31 Financial Instruments

(a) Terms, conditions and accounting policies

(b) Interest rate risk

(c) Net Fair Values o f Financial Assets and Liabilities

(d) Credit Risk Exposures

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

2 9 0 A F F A A N N U A L R E P O R T

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for th e year e n d e d 3 0 Ju n e 1999

NOTE 1 Summ ary o f S ign ifican t Accounting P olicies

(a ) Basis o f Accounting

The financial statements are a general purpose financial report.

The financial statements have been prepared:

• in accordance with Australian Accounting Standards, other authoritative pronouncements o f the Australian Accounting Standards Boards and the Consensus Views of the Urgent Issues Group; and

• having regard to Statements of Accounting Concepts.

The financial statements have been prepared on an accrual basis in accordance with the historical cost convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance is made for the effect o f changing prices on the results or on the financial position.

(b ) Taxation

The Meat Inspection Division (MID) is exempt from all forms o f taxation except fringe benefits tax.

(c) In ven tories

Inventories held represent stores o f consumables and other goods not held for resale. Inventories are brought to account where the aggregate value o f a particular store exceeds $5,000 or where individual items exceed $1,000 within a store having a value o f less than $5,000.

Inventories are valued at cost in accordance with AAS2 Inventories except where no longer required in which case they are valued at net realisable value. Cost is assigned to individual items of inventory using weighted average cost.

(d) Property, plant and eq u ip m en t

Cost and definition

Leasehold improvements are included in the classification of buildings.

Infrastructure, plant and equipment balances consist o f operational assets, with an estimated useful economic life of greater than one year. A minimum threshold o f $2,000 historical purchase cost has been applied to all infrastructure, plant and equipment assets except for information technology assets, which have a minimum threshold of $1,500 historical purchase cost. The balances reported in the Balance Sheet include property, plant and equipment acquired by State agencies on behalf of AQIS from funds provided by AQIS. Assets with a

purchase cost of less than $1,500 for information technology assets and $2,000 for all other infrastructure, plant and equipment assets are expensed in the year of acquisition. These thresholds were selected to facilitate efficient asset management and recording without materially affecting asset values recognised.

Valuation

Schedule 2 requires that property, plant and equipment be progressively revalued in accordance with the 'deprival' method o f valuation (as set out in the G uidelines on A ccounting Policy fo r Valuation o f A sse ts o f G overnm ent Trading Enterprises) by 1 July 1999 and thereafter be revalued progressively on that basis every three years. MID is implementing its revaluations as follows

• all land and buildings controlled by Quarantine and Export Certification Divisions (MID) were revalued by the Australian Valuation Office (AVO) as at 30 June 1998;

• leasehold improvements will be revalued in full during 1999-00 financial year; and

• plant and equipment have been revalued progressively over the financial years 1997-98 and 1998-99 by type of asset. In 1997-98 all office equipment, scientific equipment and furniture & fitting were revalued. In 1998-99 information technology assets, (excluding suspended items that are valued at historical cost) were revalued.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 9 1

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 June 1999

The application of the deprival method values land at its current market buying price and other assets at their depreciated replacement cost. Any assets, which would not be replaced or are surplus to requirements are valued at net realisable value at 30 June 1999. There were no assets in this situation.

All valuations are independent o f AQIS.

Property, plant and equipment acquired free or for a nominal amount are recognised initially at fair value. Assets transferred to the Meat Inspection Division (MID) from the Quarantine and Export Certification Divisions (QEC) are initially recognised at the carrying value as at the date o f transfer (refer also NOTE 26)

The net value o f non-current assets are not valued at an amount above their recoverable amount, and where carrying values exceed this recoverable amount assets are written down. In assessing recoverable amounts, the relevant cash flows have not been discounted to their present value.

Depreciation

Depreciable property, plant and equipment assets are written off to their estimated residual values over their estimated useful lives using the straight line method o f depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser o f the estimated useful life o f the improvements or the unexpired period o f 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 o f depreciable asset are as follows:

Buildings - staff housing Buildings - other Leasehold improvements Information technology Other plant and equipment

1999

4 0 years 50 years Lease term 4 years 3 to 15 years

1998

40 years 50 years Lease term 4 years 3 to 15 years

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed in NOTE 12.

(e ) In tan gib le A ssets

Intangibles comprise in-house developed computer software.

From 1 July 1995 AQIS implemented a project costing system to enable reliable costing of in-house developed computer software. A minimum threshold o f $50,000 has been applied to the capitalisation o f in-house developed software. All costs associated with in-house software developments prior to 1 July 1995 and expenditure since that date on systems which did not reach the $50,000 threshold have been expensed.

Where recognised, intangible assets are reported at cost.

In-house developed software systems are amortised on a straight-line basis over their anticipated useful lives, being the periods over which benefits are expected to be received. Currently the average useful life of in-house developed software systems is 5 years (1997-8: 5 years).

(f) Em ployee ex p en se s

Employee expenses in the Statement o f Revenues and Expenses include all expenditure imposed by the employment o f staff, such as employee remuneration, COMCARE premiums and Fringe Benefits Tax, but does not include expenditure associated with the activities of employees, such as training and travel.

The value o f employer's contributions for superannuation paid to Comsuper for the administration and funding, as required, o f superannuation entitlements payable to MID employees, is recorded as part of employee expenses.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

(g) Liability for Em ployee E n titlem en ts

The liability for employee entitlements encompasses provisions for annual leave, rostered days o ff 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 fo r sick leave.

The provisions for annual leave and rostered days o ff reflect the value of total annual leave and rostered days off entitlements o f all employees at 30 June 1999 and are recognised at the nominal value.

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 o f all employees at 30 June 1999. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.

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

(h ) Bad and Doubtful D ebts

Bad debts are written off during the year in which they are identified. A provision for doubtful debts is raised regularly during the year and is evaluated at year end and adjusted if necessary based on a review o f all outstanding accounts.

(i) Cash

For the purposes of the Statement of Cash Flows, 'cash' means cash on hand and cash equivalents. Cash equivalents include the Reserved Money Fund account balance held in the Commonwealth Public Account and money market investments readily convertible to cash (refer NOTE 16).

(j) L eases

The classification o f finance leases and operating leases complies with the definitions in Australian Accounting Standard A AS17 - A ccounting fo r Leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and benefits incidental to owners o f leased assets, while under operating leases, the lessor effectively retains the risks and benefits o f ownership.

Where a non-current asset is acquired by means o f a finance lease, the asset is capitalised at the present value of minimum lease payments at the inception o f the lease and a liability fo r lease payments recognised at the same amount. Lease payments are allocated between the principal component and the interest expense. Leased assets are amortised over the period o f the lease. At 30 June 1999 and in the prior year no assets were acquired by

means of a finance lease.

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

The consensus view of the Urgent Issues Group - A bstrac t 3 - L essee Accounting for L ease In cen tives under a N on-cancelable O perating Lease, issued in August 1995, requires lease incentives incorporated in non-cancelable operating leases entered into on or after 6 July 1995 to be recognised as a liability:

• non-cancelable operating leases entered into by the Australian Quarantine and Inspection Service (AQIS) on or after 6 July 1995 have not incorporated any element o f lease incentive; and

• lease incentives incorporated into non- cancelable operating leases entered into by AQIS prior to 6 July 1995, have not been recognised as a liability.

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 June 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 9 3

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

(k) R esources R eceived Free o f Charge

Resources received free o f charge are recognised as revenues in the Statement of Revenues and Expenses where their fair value can be reliably measured. Use o f resources is recognised as an expense or an asset, according to whether there is a long term benefit. No resources were received or used free o f charge during

1998-99 (1997-98 Nil)

( l ) R evenue

Commercial revenue represents fees and charges for inspection, certification and training services, consistent with Government policy. Receipts are deposited in the Consolidated Revenue Fund and then an equivalent amount is drawn from annual appropriations and paid into the Reserved Money Fund account.

(m ) Dividends

The Memorandum o f Understanding between AQIS and the Department of Finance and Administration specifies that AQIS is not required to pay a dividend.

(n) Financial In strum en ts

The accounting policies adopted in relation to financial instruments are set out in NOTE 31.

(o) Com parative figures

Where necessary, comparative figures have been adjusted to conform with changes in presentation in these financial statements.

(p) C hanges in A ccounting P olicies

The accounting policies are consistent with those o f the previous year except for the changes in accounting policy, which have been identified in this note under their appropriate headings.

NOTE 2 S egm en t Reporting

MID operates in the export meat and meat products industry throughout Australia by providing inspection and certification services.

NOTE 3 Econom ic D ep en d en cy

MID is controlled by the Government o f the Commonwealth o f Australia.

MID operates in a commercial environment, however, appropriations from the Parliament of the Commonwealth are used to subsidise day to day activities while the reform program is implemented. In 1998-99 MID received an operating subsidy from the Commonwealth totaling $1.4 million for this purpose. In addition, redundancy payments and surplus staff costs associated with the implementation o f the reform process in the delivery o f meat inspection services are fully funded by the Commonwealth.

NOTE 4 S u b seq u en t Events

A Certified Agreement, covering all administrative and veterinary staff employed by the Meat Inspection Division was signed on 16 September 1998. Under the Agreement staff receive a 2 percent salary increase on 16 September 1999. The impact of this salary increase on employee provisions and expenses has been brought to account in these Statements.

2 9 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

Increase in employee entitlement expense and provisions:

Annual leave 6 2 4 2 3

Long service leave 101 3 2 0

Total 163 74 3

NOTE 5 Reform P rocess

Reform processes commenced in 1997/98, continued to be implemented during 1998-99 leading to significant efficiencies in the delivery of meat inspection services. The implementation o f this reform agenda has included:

1. a contraction to the core activities o f export certification;

2. identification and management o f surplus staff;

3. identification of redundant meat inspection functions and actioning with overseas authorities to reach agreement on their discontinuation;

4. identification of individual plant efficiencies to be actioned jointly by company management and MID;

5. reduction of overhead structures through organisational reform;

6. negotiation of a new Agreement fo r meat inspectors to allow more flexible service delivery; and

7. further implementation o f Quality Assurance based company inspection with MID veterinary supervision (Meat Safety Enhancement Program).

Implementation of the reform program will continue to produce a contraction in the size o f this program. MID will continue to have an ongoing auditing and standard setting role to ensure compliance with overseas requirements, which represents the limit o f the potential contraction.

As part of the reform process the Government has agreed to fund redundancy separations and annual appropriations have been made for this purpose. The operational subsidy received in previous years will not be paid to MID in 1999-00.

1999 1998

$ $

NOTE 6 In terest Bank deposits 9 785 3 441

Total interest 9 785 3 441

NOTE 7 Net gain s / lo s s e s from s a le s o f a s s e ts

(a) Net gain s from s a le s o f a s s e ts

Infrastructure, plant and equipment 29 275 29 571

Total net gains 29 27 5 29 571

(b) Net lo ss e s from sa le s o f a s s e ts

Infrastructure, plant and equipment 7 30 8 30 162

Total net losses 7 3 0 8 30 162

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 9 5

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

NOTE 8 R even u es from G overnm ent

Parliamentary appropriations Surplus staff 5 108 94 3 7 096 754

Subsidies 1 4 0 0 00 0 3 600 000

Redundancies 5 12 1 93 4 7 765 776

Long service leave (pre 1 July 1993) Nil 3 911 517

Sub-total Parliamentary appropriations 11 6 3 0 8 7 7 22 374 047

O ther re v e n u e from G overnm ent Interest on Reserved Money Fund balance held in the Commonwealth Public Account 123 083 168 056

Sub-total o th e r re ven u e from G overnm ent 123 083 168 056

Total Revenues from Government 11 7 5 3 9 6 0 22 542 103

(a ) Surplus S taff

Represents payments o f salary to identified surplus officers during the retention period provided for in the Meat Program Agreement 1997 and the Meat Program Agreement 1999.

(b) R econciliation o f R even u es from G overnm ent to cash inflow from Appropriations

Revenues from Government 11 75 3 96 0 22 542 103

Accrued Interest on Trust Account (1 1 5 9 3 1 ) (168 056)

Interest Revenue adjustment transferred to QEC (7 152) 22 849

Accrued long service leave (pre 1 July 1993) Revenue Nil (3 911 517)

Drawdown for long service leave (pre 1 July 1993) 2 125 000 4 035 301

Accrued Redundancy Revenue (5 121 9 3 4 ) (7 765 776)

Drawdown for Redundancy 5 22 3 0 0 0 11 220 000

Accrued Surplus Staff Revenue (5 108 9 4 3 ) (7 096 754)

Surplus Staff Drawdowns 4 0 9 9 996 5 000 000

Total Cash Appropriation Inflow 12 8 4 7 9 9 6 23 878 150

2 9 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

1 9 9 9 1998

$ $

NOTE 9 Other O perating R even u e

Reimbursement from QEC o f employee entitlement liabilities associated with staff transfers between reporting entities (refer NOTE 1(f)) Nil 831 422

Recovery o f debt write-offs Nil 313 249

Miscellaneous 25 5 52 5 210 319

Total other operating revenue 255 5 2 5 1 354 990

NOTE 10 Em ployee E xp en ses

R em uneration for services provided Salaries 32 76 4 69 8 39 306 084

Productivity and other allowances 25 6 0 4 9 374 659

Superannuation (refer NOTE 10(a) below) 5 4 7 9 9 2 7 6 406 841

Provision for annual leave (refer NOTE 1(g)) Provision for rostered days o ff (refer NOTE 1(g))

2 54 6 61 2 3 759 312

and NOTE 10(b) below) Nil 731 371

Provision for long service leave (refer NOTE 1(g)) 1 7 5 3 8 2 8 1 911 773

Sub-total rem uneration 4 2 80 1 114 52 490 040

Separation a nd re dundancy p a y m e n ts - abnorm al e x p e n s e (refer NOTE 10(c) below) 4 51 2 291 7 732 529

O ther COMCARE premium 6 5 9 00 9 915 708

Fringe benefits tax 39 7 9 8 140 567

Other employee expenses 2 7 5 85 1 294 655

Sub-total oth er 9 7 4 6 5 8 1 350 930

Total employee expenses 4 8 2 8 8 0 6 3 61 573 499

(a) Superannuation C ontributions

MID 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 schemes are at rates calculated to cover existing and emerging obligations. Current contribution rates are 18.9% of salary

(CSS) and 10.1% o f salary (PSS). An additional 3% is contributed for employer productivity benefits.

(b) Provision for R ostered days o ff

There are no longer RDOs fo r Meat Inspectors (since November 1997) or Veterinary Officers (part o f the AQIS Certified Agreement in August 1998).

(c) Redundancy P aym ents

The separation and redundancy expense is calculated on the basis of two weeks pay for every year o f service by employees made redundant.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

NOTE 11 Suppliers E xp en ses

Supply o f g o o d s a n d services Audit Fees 58 32 2 79 200

Contractors and consultants 5 181 09 3 919 683

Conference and course Fees 143 711 321 431

Consumable items and assets less than $2,000 (refer NOTE 1(d)) 73 4 8 5 9 739 778

General administration expenses 4 6 1 608 492 441

Insurance 92 231 112 000

Printing and publications 137 179 232 917

Property operating expenditure 3 8 8 270 375 515

Postage and telecommunications 4 9 8 4 9 3 737 300

Repair, hire and maintenance o f equipment 6 770 30 343

Testing 8 1 3 7 6 234 839

Travel and transport 2 247 0 7 7 4 508 971

Purchase from QEC o f IT, HR & Finance business support (refer NOTE 11(a) below) 5 83 3 00 0 6 909 000

15 86 3 98 9 15 693 418

Operating lea se rentals Buildings 30 4 620 510 191

Office equipment 70 41 1 35 561

Motor vehicles 4 0 5 69 4 414 611

Sub-total 78 0 725 960 363

Total suppliers expenses 16 6 4 4 71 4 16 653 781

(a) Support S ervices E xpenses

These costs are direct costs to MID which include a fee payable to QEC for the provision of financial, information technology, human resource and technical support services.

NOTE 12 Depreciation and am ortisation

Depreciation o f property, plant and equipment 4 2 4 0 6 9 299 246

Amortisation o f intangible assets 4 9 9 6 7 41 073

Total expense ______ 4 7 4 03 6 ___________ 340 319

(a ) D epreciation and am ortisation by a s s e t class

The aggregate amounts o f depreciation or amortisation allocated during the reporting period for each class of depreciable asset are as follows: Buildings 10 789 14 686

Leasehold 105 787 60 422

Infrastructure, plant and equipment 30 7 4 9 3 224 138

Intangibles 49 967 41 073

Total allocated 4 7 4 036 340 319

2 9 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 June 1999

1999 $

1998 $

NOTE 13 Write dow n o f A ssets

Financial A sse ts Receivables for goods and services Non-financial a sse ts Infrastructure, plant and equipment

75 44 6

20 87 8

217 349

Nil

Total write-down o f assets 9 6 3 2 4 217 349

NOTE 14 In terest Expense Contingency fund advance from the Commonwealth 1 2 5 6 8 6 Nil

Total interest expense 125 686 Nil

NOTE 15 Abnormal Item s Included in the operating surplus is the following abnormal item Recovery from the Commonwealth o f accrued long service leave entitlement costs relating to pre 1 July 1993 Nil 8 850 016

Total abnormal items Nil 8 850 016

Revenue o f $8,850,016 was recognised in 1997-98 in recognition o f the unfunded liability existing a t 30 June 1993 (being the date of establishment o f AQIS) for accrued long service leave. Funds were provided by the Government via annual appropriations, sufficient for AQIS to discharge its liability for long service leave which accrued prior to 30 June 1993 as staff take this leave or receive payment in lieu on cessation. The Department of Finance and Administration has confirmed that these arrangements will continue to apply for the foreseeable future. A revenue and receivable totaling $8,850,016 has been brought to account in the 1997-98 financial statements on the basis that the associated amount receivable from the Government could be reliably measured.

NOTE 16 Cash Cash on hand Cash at bank Reserved Money Fund held in the Commonwealth Public Account

2 100

6 1 7 185 1 5 3 9 253

3 092 676 513 1 974 224

Balance of cash a s a t 3 0 June sh o w n in th e S tatem en t o f Cash Flow s 2 15 8 53 8 2 653 829

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 2 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 Ju n e 1999

1999 1998

$ $

NOTE 17 Current R eceivab les

Goods and services 4 5 6 6 9 0 8 4 829 130

Provision for doubtful debts (2 5 5 3 6 0 ) (231 859)

4 3 1 1 5 4 8 4 597 271

Accrued appropriations for surplus staff, redundancies and associated costs 13 5 0 9 9 2 5 12 631 415 Accrued interest on the Reserved Money Fund 2 8 4 4 5 9 168 056

Recovery of employee expenditure re-imbursed by COMCARE 6 3 5 5 7 5 635 575

Long service leave entitlements relating to pre 1 July 1993 225 0 0 0 225 000

Receivable from QEC Nil 2 468 594

Other debtors Nil 12 057

Total receivab les 18 9 6 6 507 20 737 968

Receivables include receivables overdue by - less than 30 days 5 0 2 180 569 597

- 30 to 60 days 4 1 3 70 2 123 747

- more than 60 days 72 7 813 515 416

1 6 4 3 69 5 1 2 0 8 760

NOTE 18 In ven tories

Inventories not held for sale (at cost) (refer NOTE 1(c)) 29 1 505 516 192

Total in ven tories 291 505 516 192

NOTE 19 Other Current A ssets

Prepaid property rentals 9 5 2 6 38 255

Other prepayments 4 2 527 31 101

Accrued revenue 4 113 0 4 8 3 586 078

Total oth er current a s s e t s 4 165 101 3 65 5 43 4

3 0 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for th e year e n d e d 3 0 J u n e 1999

1999 1998

$ $

NOTE 20 Non-Current R eceivab les

Long service leave entitlements relating to pre 1 July 1993 6 5 2 9 38 7 8 625 016

Total non-current receivab les 6 52 9 38 7 8 625 01 6

NOTE 21 Non Financial A ssets

(a) Land and Buildings

Land - at independent valuation 30/6/98 6 3 0 0 0 140 000

63 0 0 0 140 000

Buildings - at independent valuation 30/6/98 1 2 3 0 0 0 296 000

Accumulated depreciation (2 0 5 7 4 ) (13 875)

10 2 4 2 6 282 125

Leasehold improvements - at cost 22 5 193 368 087

Accumulated amortisation (9 4 4 8 1 ) (91 907)

13 0 7 1 2 276 180

Leasehold improvements - at independent valuation 30/6/96 186 540 186 540

Accumulated amortisation (1 8 0 2 9 4 ) (124 253)

6 246 62 287

Total Land and Buildings 3 0 2 3 8 4 760 592

All land and buildings were restated to independent valuations determined by the Australian Valuation Office (AVO) as a t 30 June 1998 in accordance with the deprival method o f valuation on the basis o f current market buying prices and depreciated replacement cost. The policy for valuation o f land and buildings is progressive valuation commencing 1999-00 over a three year period on the basis o f location.

Leasehold improvements which had been completed prior to 30 June 1995 were revalued by the AVO on the basis of depreciated replacement cost as at 30 June 1996, using the gross method. Leasehold improvements which were completed subsequent to 30 June 1995 are reported at cost. All leasehold improvements will be revalued in 1999-00 and on a progressive basis every three years on the basis of location.

L _ ________________________________

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 3 0 1

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 1998

$ $

(b ) Infrastructure, plant and eq u ip m en t

Information Technology - at cost 27 1 92 8 1 135 348

Accumulated depreciation (1 7 1 5 4 4 ) (610 392)

10 0 38 4 524 956

Information Technology - a t valuation 30/6/93 Nil 60 358

Accumulated depredation Nil (60 358)

Nil Nil

Information Technology - at valuation 30/6/99 5 7 2 130 Nil

Accumulated depreciation (3 6 1 0 9 4 ) Nil

211 0 3 6 Nil

Total Inform ation Technology 3 1 1 42 0 524 956

Other plant and equipment - at cost 6 07 4 2 350

Accumulated depreciation (7 8 ) (1 588)

5 99 6 762

Other plant & equipment - at valuation 30/6/98 3 1 9 4 7 8 392 514

Accumulated depreciation (2 5 1 7 5 3 ) (249 965)

6 7 72 5 142 549

Total oth er plant and eq u ip m en t 73 721 143 311

Total Infrastructure, Plant and Equipment 3 8 5 141 668 267

Plant and equipment held by AQIS on 30 June 1993 was valued by the AVO at depredated replacement cost using the gross method. An independent valuation o f furniture and fittings, office and scientific equipment was carried out by the AVO as at 30 June 1998 on the same basis. In 1998-99 information technology assets, (excluding suspended items that are valued at historical cost) were revalued.

(c) In tan gib les

Computer software developed in-house - at cost 7 9 4 7 4 8 527 922

Accumulated amortisation (3 2 5 6 4 8 ) (211 169)

Total In tan gib les 4 6 9 100 _______ 316 753

3 0 2 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NOTE 22 Analysis o f Property, Plant, Equipm ent and In tan gib les

(a) TABLE A: M ovem ent sum m ary 1 9 9 8 -9 9 for all a s s e t s irresp ective of valu ation b ase

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS

for the year ended 30 June 1999

Item Land Buildings Total Infra­ In tan gib les Total

$ $

Land 8i Buildings

$

structure plant 8i equ ip m en t $ $ $

Gross valu e as at 1 July 1998 1 4 0 000 8 5 0 62 7 9 9 0 6 2 7 1 59 0 57 0 5 2 7 9 2 2 3 109 119

Additions Nil 51 135 51 135 101 632 266 826 419 593

Revaluations Nil Nil Nil (242 796) Nil (242 796)

Disposals (90 000) (85 000) (175 000) (115 528) Nil (290 528)

Other movements 13 000 (282 029) (269 029) (164 268) Nil (433 297)

Gross value a s at 30 June 1999 63 00 0 5 3 4 7 3 3 5 9 7 73 3 1 169 6 1 0 79 4 748 2 562 091

Accum ulated d ep reciation / am ortisation as at 1 July 1998 n /a 23 0 0 3 5 2 3 0 0 3 5 9 2 2 30 3 21 1 169 1 36 3 507

Depreciation/amortisation charge for assets held 1 July 1998 n /a 109 115 109 115 220 750 41 073 370 938

Depreciation/ amortisation charges for additions n /a 7 461 7 461 86 743 8 894 103 098

Adjustment for revaluations n /a Nil Nil (230 619) Nil (230 619)

Adjustment for disposals n /a (2 723) (2 723) (87 522) Nil (90 245)

Adjustment for other movements n /a (48 539) (48 539) (127 186) 64 512 (111 213)

Accum ulated d ep reciation / am ortisation a s at 30 Ju n e 1999 n /a 2 9 5 34 9 29 5 3 4 9 78 4 469 3 2 5 648 1 4 0 5 4 6 6

Net book valu e a s at 30 June 1999 63 0 0 0 2 3 9 3 8 4 3 0 2 38 4 3 8 5 141 4 6 9 100 1 1 5 6 62 5

Net book valu e a s at 1 July 1998 14 0 00 0 6 2 0 5 9 2 7 6 0 592 6 6 8 267 3 1 6 753 1 7 4 5 6 1 2

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 3 0 3

A P P E N D I X 1 0

NOTE 22 Analysis o f Property, Plant, Equipm ent and In ta n g ib le s (con tin u ed )

(b ) TABLE B : Sum m ary o f b alan ces o f a s s e t s held a t valu ation a s a t 3 0 June 1 9 9 9

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

Item Land Buildings

$ $

As a t 30 June 1 9 9 9

Gross value 63 000 309 540

Accumulated depreciation / amortisation n/a (200 868)

Other movements Nil Nil

Net book valu e 63 00 0 10 8 67 2

As a t 30 Ju n e 1998

Gross value 140 000 482 540

Accumulated depreciation / amortisation n/a (138 128)

Other movements Nil Nil

Net book valu e 14 0 00 0 3 4 4 41 2

Total Land 8t Buildings

Infra­

structure plant 8t eq u ip m en t

In tan gib les Total

$ $ $ $

372 540 891 608 Nil 1 264 148

(200 868) (612 847) Nil (813 715)

Nil Nil Nil Nil

17 1 67 2 27 8 761 Nil 4 5 0 43 3

622 540 452 872 Nil 1 075 412

(138 128) (310 323) Nil (448 451)

Nil Nil Nil Nil

4 8 4 4 1 2 1 4 2 549 Nil 6 2 6 961

3 0 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for th e yea r e n d e d 3 0 J u n e 1999

1999 1998

$ $

NOTE 23 Current provisions and payables

(a) Current liabilities to em p lo y ees

Salaries and wages 6 3 9 164 832 103

Separation and redundancy 3 3 9 0 74 4 6 993 231

Annual leave 2 3 2 0 529 3 198 663

Rostered days off 5 8 95 7 406 677

Long service leave 2 0 0 8 9 5 5 3 827 424

Total current liabilities to em p lo y ees 8 4 1 8 34 9 15 258 098

(b ) Current suppliers

Trade creditors and accruals 4 5 3 154 802 902

Operating lease rentals 61 4 6 2 29 474

Total current su p p liers 5 1 4 61 6 832 376

(c) Other current liabilities

G overnm ent liabilities

Interest on contingency funds drawn down and repaid during the year 8 8 52 6 Nil

Sub-to ta l G overnm ent liabilities 8 8 52 6 Nil

N on-g o vern m en t liabilities Revenue in advance 7 1 8 965 313 298

Payable to QEC 1 9 4 3 8 0 8 Nil

S ub-total N on-G overnm ent liabilities 2 6 6 2 773 313 298

Total other current liab ilities 2 7 5 1 299 313 298

Total current provision s and p ayab les 11 6 8 4 2 6 4 16 403 772

NOTE 24 N on-current p rovision s and payables

(a) N on-current liab ilities to e m p lo y e e s

Annual Leave 1 703 76 7 1 487 147

Long Service Leave 10 112 9 9 2 11 368 991

Total non-current liab ilities to em p lo y ees 11 8 1 6 75 9 12 856 138

Total non-current p rovisions and payables 11 8 1 6 759 12 8 5 6 138

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

J

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

1999 $

1998 $

NOTE 25 A ggregate em p lo y ee en titlem en t liability

Current liabilities to employees 8 4 1 8 349 15 2 5 8 098

Non-current liabilities to employees (see NOTE 25(a) below) 11 81 6 759 12 856 138

Accrued superannuation (included in the balance o f Trade creditors and accruals at NOTE 23(b) 72 647 90 777

A ggregate em p lo y ee en titlem en t liability 20 3 0 7 755 28 20 5 01 3

(a ) Em ployee en titlem en t liabilities

The discount rate used to measure the present value o f the provisions included in the aggregate employee entitlement liability above is 5% (1997-8: 5%). This discount rate reasonably reflects attrition rates and pay increases through promotion and inflation for the Commonwealth public sector as a whole.

NOTE 26 A nalysis o f Equity N et liabilities on Accum ulated A sset TOTAL

estab lish m en t resu lts Revaluation EQUITY

1 July 1 9 9 7 R eserve

$ $ $ $

Balance 1 July 1998 (4 05 6 8 5 7 ) 12 5 8 2 9 2 7 1 4 8 071 8 6 7 4 141

Surplus/(Deficit) Nil 1 092 499 Nil 1 092 499

Net revaluation increases/(decreases) (refer NOTE 26(a) below) Nil Nil Nil Nil

Balance 3 0 Ju n e 1999 (4 05 6 8 5 7 ) 13 67 5 42 6 14 8 071 9 7 6 6 640

(a ) A sset R evaluation R eserve

1999 1998

$ $

The net revaluation increase in the asset revaluation reserve comprises:

Revaluation increment - land Nil 11 000

Revaluation increment - buildings Nil 45 987

Revaluation increment - plant and equipment Nil 91 084

Nil 148 071

(b) N et Liabilities on Establishm ent

As 1997-98 represents the first year o f operation for the Meat Inspection Division (MID) and the Quarantine and Export Certification Divisions (QEC) as separate reporting entities, opening equity represents the net liabilities on establishment as at 30 June 1997. The opening equity positions were determined by the Department of Finance and Administration which then enabled the AQIS cash balance as at 30 June 1997 to be attributed to the two

reporting entities. As a result, as at 30 June 1997, QEC was attributed net assets of $159,478 and MID was attributed net liabilities o f ($5,056,857).

3 0 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS fo r th e year e n d e d 3 0 Ju n e 1999

NOTE 27 Cash Flow R econciliation

R econciliation o f op eratin g surplus to n et cash from operating activities

1 9 9 9

$

1998

$

Surplus 1 0 9 2 4 9 9 12 582 927

Depreciation and amortisation of property, plant & equipment 4 2 4 0 6 9 299 246

Amortisation of intangibles 4 9 9 6 7 41 073

Profit on disposal of assets (2 9 2 7 5 ) (29 571)

Loss on disposal o f assets 7 3 0 8 30 162

W rite-off o f non-financial assets 20 8 7 8 Nil

Loss on revaluation o f non-financial assets 12 176 Nil

Decrease (increase) in receivables for goods and services 28 5 72 3 307 989

Decrease (increase) in receivables from the Commonwealth 1 10 0 71 6 (7 509 077)

Decrease (increase) in other receivables 12 05 7 (1 218)

Decrease (increase) in receivable from QEC Nil 899 477

Decrease (increase) in accrued revenue (5 2 6 9 7 0 ) 531 806

Decrease (increase) in inventories 22 4 68 7 273 105

Decrease (increase) in prepayments 17 30 3 43 911

Increase (decrease) in liabilities to employees (7 8 7 9 1 2 8 ) (6 004 862)

Increase (decrease) in payable to QEC 1 9 4 3 8 0 8 Nil

Increase (decrease) in creditors 3 0 1 4 222 214

Increase (decrease) in other current liabilities 4 9 4 193 (295 238)

Net cash from (u sed by) op eratin g activities (2 7 4 6 9 7 5 ) 1 391 944

NOTE 28 External Financing A rrangem ents

In 1998-99 MID had access to a Contingency Fund appropriation to the extent o f $2 million provided to meet short term cash requirements. Funds accessed from this appropriation must be repaid in the same year as funds are drawn. In 1998-99 borrowings from this Fund totalled $2 million and were fully repaid in the current year. There is no Contingency fund available for MID for 1999-00

NOTE 29 Rem uneration o f O fficers

Income received or due and receivable by officers 6 1 2 4 1 6 568 595

The number o f officers included in these figures are shown below in the relevant income bands

1 9 9 9 1998

Number Number

$100 000 - $110 000 1 2

$110 000 - $120 000 3 2

$120 000 - $130 000 0 0

$130 000 - $140 000 0 1

$140 000 - $150 000 1 0

5 5

The aggregate amount o f performance pay received or due and receivable, by officers was $23,396 (1997-8: $nil).

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 3 0 7

NOTE 30 Auditors' R em uneration

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

Cost of auditing the financial statements for the reporting period

1999 1998

$ $

58 32 2 79 200

The auditing services are provided by the Australian National Audit Office (ANAO) free o f charge. MID is required to pay to AFFA's CRF Miscellaneous Receipt account an am ount equal to the cost of the audit and thus an expense for the cost o f the audit services for the financial year has been recognised. No other services were provided by the Auditor-General during the reporting period.

3 0 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

NOTE 31 F inancial I n s tr u m e n ts

(a) Terms, conditions and accounting policies

The accounting policies, including the terms and conditions of each class of financial asset and financial liability at the balance date, are as follows:

Financial Instruments Notes

Financial Assets

Cash at Bank

Reserved Money Fund held in Commonwealth Public Account

Receivables for goods and services / accrued revenue

Receivable from QEC

Other debtors

17 19

Accounting Policies and Methods (including recognition criteria and measurement basis) Nature of underlying instrument (including significant terms & conditions affecting the

amount, timing and certainty of cash flows)

Financial assets are recognised when control over future economic benefits is established and the amount of the benefit can be reliably measured.

Interest on collectors receipt accounts is credited to revenue as it accrues. Deposits to collectors receipt accounts are transferred daily to the holding account with the Reserve Bank prior to being paid into the Consolidated Revenue Fund.

Interest is earned on the daily balance at the prevailing daily rate.

Interest on the Reserved Money Fund is credited to revenue as it accrues. Deposits to the Reserved Money Fund are effected through annual appropriation.

Interest is earned on the daily balance at the weighted average yield of the relevant 13-week Treasury Note Issue calculated on a compounding basis.

Trade receivables are recognised at the nominal amounts due less any provision for doubtful debts. A provision for doubtful debts is recognised when collection of the full nominal amount is no longer probable.

Accrued revenue is recognised at the nominal amounts due.

Amounts receivable from QEC are carried at nominal amounts due. No interest charge has been applied.

As for receivables for goods and services.

Credit sales are on 28 day terms (1997-98: 28 days)

Payment received in 1998-99

As for receivables for goods and services.

NOTE 31 Financial In stru m en ts (con tin u ed )

(a) Terms, conditions and accounting policies

Financial Instruments Notes Accounting Policies and Methods (including recognition criteria and measurement basis) Nature of underlying instrument (including significant terms & conditions affecting the

amount, timing and certainty of cash flows)

Financial Liabilities

Trade creditors and 23 accruals

Payable to QEC 23

Financial liabilities are recognised when a present obligation to another party is entered into and the amount of the liability can be reliably measured.

Creditors and accruals are recognised at their nominal amounts, being Trade liabilities are normally settled on 30-day terms, the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced).

Amount payable to QEC is recognised at the nominal amount, being the Liability to be settled in 1999-00. amount at which the liability will be settled.

Other liabilities 23 Other liabilities are recognised at their nominal amount being the amount at which the liability will be settled. Other liabilities to be settled in 1999-00.

NOTE 31 Financial In stru m en ts (con tin u ed )

(b) Interest rate risk

MID's exposure to interest rate risks and the effective interest rates of financial assets and financial liabilities at the balance sheet date are as follows:

Financial Instrument Notes Floating Interest Rate Non-Interest Bearing Total Weighted Average

Effective Interest Rate

1998-99 1997-98 1998-99 1997-98 1998-99 1997-98 1998-99 1997-98

$ $ $ $ $ $ % %

Financial Assets (Recognised)

Cash at Bank 16 617 185

Cash on Hand 16 -

Reserved Money Fund 16 1 539 253

Receivables for goods and services / accrued revenue 17, 19 -

Receivable from QEC 17 -

Other debtors 17 -

Total Financial Assets (Recognised) 2 156 438

Total assets 33 267 663

423 861 - 252 652 617 185

- 2 100 3 092 2 100

1 974 224 - - 1 539 253

- 8 424 596 8 183 349 8 424 596

- - 2 468 594 -

- 920 034 815 688 920 034

2 398 085 9 346 730 11 723 375 11 503 168

37 934 051

676 513

3 092

1 974 224

8 183 349

2 468 594

815 688

14 121 460

Financial Liabilities (Recognised)

Trade creditors and accruals 23 - 1 092 318 1 635 005 1 092 318

Payable to QEC 23 - • 1 943 808 - 1 943 808

Other Liabilities 23 88 526 - - - 88 526

Total Financial Liabilities (Recognised)

Total Liabilities

88 526 - 3 036 126 1 635 005 3 124 652

23 501 023

1 635 005

1 635 005

29 259 910

2.3

n /a

4.76

n /a

n /a

n /a

n /a

n /a

5.51

3.9

n/a

4.91

n/a

n/a

n/a

n/a

n/a

n/a

A P P E N D I X 1 0

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS fo r the year ended 30 June 1999

(c) N et Fair Values o f Financial A ssets and Liabilities

The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at the balance date, are as follows:

Total carrying am ou n t as A ggregate n et fair value

per th e b alan ce sh e e t

N ote 1999 1998 1999 1998

$ $ $ $

Financial a s s e ts

Cash at bank 16 6 1 7 185 676 513 6 1 7 185 676 513

Cash on hand 16 2 100 3 092 2 100 3 092

Reserved Money Fund 16 1 53 9 253 1 974 224 1 5 3 9 253 1 974 224

Receivables fo r goods and 17

services / accrued revenue 19 8 4 2 4 596 8 183 349 8 67 9 95 6 8 183 349

Receivable QEC 17 Nil 2 468 594 Nil 2 468 594

Other debtors 17 9 2 0 0 3 4 815 688 9 2 0 0 3 4 815 688

Total Financial A ssets (R ecogn ised ) 11 5 0 3 168 14 121 460 11 50 3 168 14 121 460

Financial Liabilities

Trade creditors and accruals 23 1 0 9 2 31 8 1 635 005 1 0 9 2 3 1 8 1 635 005

Payable to QEC 23 1 9 4 3 8 0 8 - 1 9 4 3 8 0 8 -

Other liabilities 23 8 8 52 6 - 88 5 2 6 -

Total Financial Liabilities (R ecogn ised ) 3 124 65 2 1 635 005 3 1 2 4 6 5 2 1 635 005

Financial Assets The net fair values o f all monetary financial assets approximates their carrying amounts.

None o f the classes o f financial assets are readily traded on organised markets in standardised form.

Financial Liabilities The net fair values for all monetary financial liabilitlies are approximated by their carrying amounts.

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

(d ) Credit Risk Exposures

The maximum exposures to credit risk at reporting date in relation to each class o f recognised financial asset is the carrying amount o f those assets as indicated in the Balance Sheet.

C oncentrations o f credit risk

MID's customer base is concentrated in Australia with the majority of meat and meat products being exported to the US, Japan and Korea. By undertaking transactions with a large number o f customers within the meat industry the concentrations of credit risk in relation to trade accounts receivable is minimised.

Credit risk in trade receivables is managed in the following ways:

- payment terms are 28 days; - withdrawal o f services if debt recovery action is unsuccessful.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

Concentrations of credit risks on trade accounts receivable arise in the following industries:

AUSTRALIAN QUARANTINE AND INSPECTION SERVICE MEAT AND INSPECTION SERVICE ACCOUNT MEAT INSPECTION DIVISION NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June 1999

Maximum cred it risk exp osu re for each concentration (i)

Percentage o f total trade $

debtors %

Industry 1999 1998 1999 1998

Exported Meat and Meat Products 100% 100% 4 5 6 6 9 0 8 4 829 130

(i) The maximum credit risk exposure does not take into account the value o f any collateral or other security held, in the event other entities/parties fail to perform their obligations under the financial instruments in question.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

-

A P P E N D I X 1 0

Audit Office A ustralian N ational

INDEPENDENT AUDIT REPORT

To the Minister for Agriculture, Fisheries and Forestry

Scope

I have audited the financial statements of the National Residue Survey for the year ended 30 June 1999. The financial statements comprise:

• Statement by the Chief Executive and Executive Director

• Statement of Revenues and Expenses

• Balance Sheet

• Statement o f Cash Flows

• Schedule of Commitments

• Schedule of Contingencies, and

• Notes to and forming part of the Financial Statements.

The Chief Executive and Executive Director 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 o f 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 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.

GPO Box 707 CANBERRA ACT 2601 Centenary House 19 National Circuit BARTON ACT

Phone (02) 6 203 7300 Fax (02) 6203 7777

J

AFFA ANNUAL REPORT 1998-99 rm

A P P E N D I X 1 0

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 Residue Survey as at 30 June 1999 and the results of its operations

and its cash flows for the year then ended.

Australian National Audit Office

B A Kaufmann Executive Director

Delegate of the Auditor-General

Canberra 22 September 1999

3 1 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY FINANCIAL STATEMENTS 1998-99 STATEMENT BY THE CHIEF EXECUTIVE AND EXECUTIVE DIRECTOR

In our opinion, the attached financial statements of the National Residue Survey present fairly the information required by the Minister for Finance and Administration's Guidelines for Financial Statements of Commonwealth Authorities.

KH Matthews Chief Executive

Geoff Gorrie Executive Director

2- L- September 1999 September 1999

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 nn

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY STATEMENT OF REVENUES AND EXPENSES fo r th e year e n d e d 3 0 Ju n e 1999

Notes 1 9 9 8 -9 9 1997-98

$ $

OPERATING REVENUES

Revenues from industry 5 8 4 6 48 1 6 143 258

Interest on investments 3 8 8 43 9 347 123

Sale o f goods and services 2 0 6 55 3 21 750

Parliamentary appropriations 39 6 000 391 000

Resources received free o f charge 28 6 45 3 358 776

Total op eratin g reven u es 2 7 12 3 92 6 7 261 907

OPERATING EXPENSES Employee expenses 1 19 3 50 4 1 178 030

Supplier expenses 9 7 2 329 738 619

Depreciation 60 82 4 49 313

Writedown o f assets 4 5 9 0 -

Sampling and analytical testing expenses 4 8 8 3 3 9 0 5 259 413

Total op eratin g e x p e n se s 3 7 1 1 4 6 3 7 7 225 375

Operating surplus 9 289 36 532

EQUITY INTERESTS

Accumulated results at 1 July 143 89 6 107 364

Accum ulated resu lts a t 30 June 153 185 143 896

The accompanying notes form an integral part of these financial statements

3 1 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY BALANCE SHEET as a t 3 0 Ju n e 1999

Notes 1 9 9 8 -9 9 1997-98

$ $

CURRENT ASSETS Cash 3 2 9 3 2 8 733 243

Receivables 5 1 2 6 86 7 22 139

Investments 6 8 9 7 9 46 3 7 232 972

Inventories 7 46 4 0 4 53 825

Other 8 5 7 8 380 328 095

Total current a s s e ts 10 0 6 0 4 4 2 8 370 274

NON-CURRENT ASSETS Infrastructure, plant & equipment 90 28 8 150 954

Intangibles 2 84 3 3 275

Total non-current a s s e ts 9 9 3 131 154 229

Total a s s e ts 10 1 5 3 5 7 3 8 524 503

CURRENT LIABILITIES Provisions and payables 11 9 6 3 6 581 8 034 064

Total current liabilities 9 6 3 6 581 8 034 064

NON-CURRENT LIABILITIES Provisions and payables 11 195 8 3 2 180 244

Total non-current liabilities 195 8 3 2 180 244

Total liabilities 9 8 3 2 4 1 3 8 214 308

N et a s s e ts 32 1 160 310 195

EQUITY Capital 158 286 158 286

Asset Revaluation Reserve 9 689 8 013

Accumulated results 153 185 143 896

Total eq u ity 32 1 160 310 195

The accompanying notes form an integral part o f these financial statements

II

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY STATEMENT OF CASH FLOWS for th e yea r e n d e d 3 0 J u n e 1999

OPERATING ACTIVITIES

Notes 1 9 9 8 -9 9

$

1997-98

$

Cash received Receipts from industry Parliamentary appropriations Interest received

7 9 0 1 3 1 5

3 9 6 0 0 0

3 4 1 9 4 8

7 604 088 391 000 374 420

Total cash received 8 6 3 9 263 8 369 508

Cash Used Employee expenses (1 5 6 4 2 4 2 ) (796 104)

Suppliers (5 64 7 3 6 7 ) (5 275 586)

Total cash used (7 21 1 6 0 9 ) (6 071 690)

Net cash from operating a ctiv ities 13 1 4 2 7 6 5 4 2 297 818

INVESTING ACTIVITIES Cash received Proceeds from sales of property, plant and equipment

Total cash received - -

Cash used Purchase o f investments Work in progress Purchase of property, plant and equipment Intangibles

(1 7 0 0 0 0 0 )

(1 2 8 9 2 9 )

(2 6 4 0 )

(1 500 000) (168 369) (91 240)

Total cash used (1 8 3 1 5 6 9 ) (1 759 609)

Net cash u sed in in vestin g a ctiv ities (1 8 3 1 5 6 9 ) (1 759 609)

Net in crease in cash held (4 0 3 9 1 5 ) 538 209

Cash at beginning of reporting period 73 3 243 195 034

Cash at en d o f reporting period 32 9 32 8 733 243

The accompanying notes form an integral part of these financial statements

3 2 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e yea r e n d e d 3 0 J u n e 1999

1. S ta tem en t o f Sign ifican t A ccounting Policies

(a ) Basis o f Accounting

The financial statements are a general purpose financial report.

The National Residue Survey (NRS) Reserved Money Fund was established under the Financial Management and Accountability Act 1997, administered by the Residue Standards Branch (RSB), Department o f Agriculture, Fisheries and Forestry - Australia.

The Department is required to prepare financial statements fo r the NRS under a determination o f the Minister for Finance and Administration pursuant to Section 49 o f the Financial Management and Accountability Act 1997.

They have been prepared in accordance with Schedule 2 to Orders issued by the Finance Minister under the C om m onw ealth A uthorities a n d C om panies A c t 1997.

The financial statements have been prepared :

• in accordance with Australian Accounting Standards, other authoritative pronouncements o f the Accounting Standards Boards (Accounting Guidance Releases) and the Consensus Views o f the Urgent Issues Group; and

• having regard to Statements o f Accounting Concepts.

The financial statements have been prepared on an accrual basis in accordance with the historical cost convention and do not account for changing money values or, except where stated, current values of non-current assets.

(b ) Em ployee E ntitlem ents

The salary and the associated costs of RSB staff administering the NRS are met from the Reserved Money Fund.

Employee entitlements payable to staff fo r annual leave and long service leave are calculated, in accordance with AAS 30, on the basis o f current salary rates and have been brought to account as provisions in the financial statements, the current provision being the estimated amount expected to be paid within the next twelve months. Although employees do not become entitled to take long service leave until ten years employment in the Australian Public Service, the corresponding provision is calculated for employees based on the average of 3 year service and 4 year service liabilities, based on the expectation that those employees will remain until long service leave benefits are vested.

(c) Property, Plant and Equipm ent

Infrastructure, plant and equipment balances consist of operational assets with an estimated useful economic life of greater than one year and a historical cost of $2 000 or more.

Intangibles includes purchased computer software used for operational purposes with a useful life of greater than one year and a historical cost of $2 000 or more.

Depreciation is calculated on a straight line basis on all property, plant and equipment at rates calculated to match the estimated useful lives o f these assets. Depredation is calculated from the first day o f the month in which the asset is purchased.

Profits or losses on disposal of property, plant and equipment are taken into account when determining the surplus/deficit for the year.

(d) R even u e

Revenue collected under Section 9 o f the National R esidue S u rv e y (Adm inistration) A c t 1992 is deposited in the Consolidated Revenue Fund and then an equivalent amount is drawn from special appropriations and paid into the Reserved Money Fund.

Accrued revenues, which include levies and penalties, are recognised when due in accordance with Section 9 of the N ational R esidue S u rv e y (Adm inistration) A ct 1992.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year e n d e d 3 0 Ju n e 1999

A provision is raised for any doubtful debts based on a review of all outstanding accounts at year end. Bad debts are w ritten-off during the year in which they are identified.

( e ) Other O perating R even u es

Other operating revenues include revenues received by way o f memorandum o f understanding arrangements for conducting monitoring programs for a finite period.

(f) Unearned R evenue

Industry funds for NRS activities are generally received by way o f commodity levies. The balance o f monies standing to the credit o f the Reserved Money Fund will be applied to future expenditure programs as agreed under provisions o f the National R esidue S u rv e y (Adm inistration) A c t 1992. As such, all unspent funds are recognised as a current liability, as the NRS has not yet earnt the revenue. Agreements have been reached with

the major funds providers to manage these funds either by reducing future levy rates or offsetting the funds against new programs.

(g ) Cash

For the purposes of the Statement of Cash Flows, 'cash' means cash on hand and cash equivalents. Cash equivalents include the trust account balance held in the Commonwealth Public Account.

(h ) In ven tories

Inventories comprise consumable stores not held for resale and are valued at cost. Inventories are brought to account where the aggregate value o f a particular store exceeds $5 000 or where an individual item has a value of greater than $1 000. Costs are assigned to individual items o f stock on a first in/ first out basis.

( i) L eases

Operating lease payments, where all risks and benefits o f ownership are retained by the lessor, are expensed as incurred. During the accounting period there were no finance leases.

(j) Insurance

In accordance with government policy, no insurance cover is taken out and losses are expensed as they are incurred.

(k) Taxation

The NRS activities are exempt from all forms of taxation, except fringe benefits tax.

( l ) Dividends

The Memorandum o f Understanding between the RSB and the Department of Finance and Administration specifies that NRS is not required to pay a dividend.

(m ) S egm en t Reporting

The principal activity o f the NRS is to monitor, assess and report on the levels of chemical residues in raw commodities produced by the Australian agricultural and fisheries industries. It operates solely within Australia.

(n ) R esou rces R eceived Free o f Charge

Resources received free o f charge are recognised in the Statement of Revenues and Expenses where the amounts can be reliably measured. Use o f the resources is recognised as an expense.

(o ) Econom ic D ep en d en cy

NRS operates on a full cost-recovery basis in respect o f its industry clients. However, as a Commonwealth Agency it has Community Service Obligations and is dependent on annual appropriations to enable it to meet these obligations.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

1 9 9 8 - 9 9 $

1997-98

$

2 O perating R even u es

Revenues from industry Industry levies and contributions 5 8 4 6 4 8 1 6 143 258

Interest from the investment o f industry funds Deposits 3 8 8 4 3 9 347 123

Sale o f goods and services Memorandum o f Understanding payments 2 0 6 553 21 750

Parliamentary Appropriation Act No. 1 Resources received free o f charge

3 9 6 00 0 391 000

Dept o f Agriculture, Fisheries 8t Forestry - Internal Audit 8 00 0 26 250

Dept o f Agriculture, Fisheries 8i Forestry - Leasehold Fitout 16 4 2 9 16 429

Dept o f Finance & Administration - Cheque/salary processing - 866

Australian Quarantine Inspection Service - Sample collection 26 2 02 4 315 231

Total revenue 7 12 3 92 6 7 261 907

3 O perating E xp en ses

Employee expenses Remuneration 1 1 9 3 5 0 4 1 118 141

Separation and redundancy payments - 59 889

Supplier expenses Supply of goods and services 8 2 8 139 593 679

Operating lease rentals 1 4 4 190 144 940

Depreciation Infrastructure, plant and equipment 5 7 75 2 46 346

Intangibles 3 07 2 2 967

Writedown o f assets Loss on disposal of infrastructure, plant and equipment 4 59 0 -

Sampling and analytical testing expenses Analytical testing expenses 4 38 1 78 6 4 445 473

Sampling expenses 50 1 60 4 813 940

Total expenses 7 1 1 4 6 3 7 7 225 375

3 2 4 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

1 9 9 8 -9 9 1997-98

$ $

4 Auditor's Rem uneration

Amounts due and payable to CRF fo r auditing o f the accounts by ANAO 14 0 0 0 14 000

No other accounting services were provided by ANAO during the course of the financial year.

5 R eceivab les

Goods and services 12 6 86 7 22 139

Less provision for doubtful debts - -

12 6 86 7 22 139

Receivables not overdue

Overdue less than 30 days 126 117

30 to 60 days - 5 500

more than 60 days 7 5 0 16 639

126 8 6 7 22 139

6 In v estm en ts

Negotiable certificates o f deposit 8 8 0 0 0 0 0 7 100 000

Accrued interest 179 4 6 3 132 972

8 9 7 9 4 6 3 7 232 972

7 In ven tories

Inventories not held for sale (at cost) 46 4 0 4 53 825

8 Other current a s s e ts

Work in progress (Computer Software) 29 7 298 168 369

Accrued revenue from industry 271 77 5 148 438

Prepayments 9 30 7 11 288

Total other current assets 57 8 38 0 328 095

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

9 Analysis o f Property, Plant, Equipm ent and In tan gib les

Infrastructure, plant and eq u ip m en t In tan gib les Total

$ $ $

Gross valu e at 1 July 1 9 9 8 403 226 32 584 435 810

Additions - 2 640 2 640

R evaluations (35 555) - (35 555)

D isposals (24 480) - (24 480)

Other m ovem en ts - - -

Gross valu e at 3 0 June 1 9 9 9 343 191 35 224 378 415

Accum ulated Depreciation a t 1 July 1 9 9 8 (252 272) (29 309) (281 581)

Depreciation on a s s e t s held (57 752) (3 072) (60,824)

R evaluation ad ju stm en t 37 231 - 37,231

D isposals 19 890 - 19 890

Other m ovem en ts - - -

A ccum ulated d ep reciation a t 3 0 June 1 9 9 9 (252 903) (32 381) (285 284)

Net book valu e at 3 0 June 1 9 9 9 90 288 2 843 93 131

N et book valu e a t 1 July 1998 150 954 3 275 154 229

1 9 9 8 -9 9 1997-98

$ $

Infrastructure, plant and equipment - (re-valued at 30 June 1998) 4 2 35 6 42 356

Accumulated depreciation 36 114 27 823

Net book value 6 242 14 533

Infrastructure, plant and equipment - (re-valued at 30 June 1999) 3 0 0 835 -

Accumulated depreciation 2 1 6 789 -

Net book value 84 04 6 -

Infrastructure, plant and equipment - (at historical cost) - 360 870

Accumulated depreciation 224 449

Net book value - 136 421

Total Infrastructure, plant and equipment 90 288 150 954

All intangibles are valued at historical cost

Plant and equipment, other than IT equipment, was revalued by the Australian Valuation Office (AVO) at depreciated replacement cost as at 30 June 1998 using the gross method. An independent valuation o f IT equipment was carried out by the AVO as a t 30 June 1999 on the same basis. Plant and equipment was revalued progressively over the financial years 1997-98 to 1998-99, and will be revalued over sucessive three year periods by type of asset.

3 2 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for th e year e n d e d 3 0 J u n e 1999

10 C om m itm ents

Operating leases relate to the building rental lease fo r the NRS.

Other commitments relate to outstanding supplier purchase commitments. Project commitments relate to cattle surveillance programs.

1 9 9 8 -9 9 1997-98

$ $

11 Provisions and Payables

CURRENT:

Employees Salaries and wages 23 5 1 4 405 245

Leave (annual) 1 2 7 112 131 707

Suppliers Trade creditors 247 3 4 2 334 845

Unearned Revenue (See note 1(f) 9 2 3 8 613 7 162 267

9 6 3 6 581 8 034 064

NON CURRENT:

Employees Leave (long service) 195 83 2 180 244

19 5 8 3 2 180 244

12 Rem uneration o f Directors

Total remuneration received or due and receivable by directors 112 92 8 112 220

The number of officers included in these figures are shown below in the relevant income bands

Number Number

$110,000 to $120,000 1 1

13 Cash Flow R econciliation $ $

O perating surplus (d eficit) 9 289 36 532

Depreciation 60 8 2 4 49 313

Loss on asset write-off/revaluation 4 59 0 -

Proceeds from sale o f assets - -

Increase/(decrease) in employee liabilities (3 7 0 7 3 8 ) 383 588

(Increase)/decrease in inventory 7 4 2 2 (8 083)

(Increase)/decrease in prepayments 1 9 8 0 144 902

(Increase)/decrease in receivables (2 7 4 5 5 6 ) 178 522

Increase/(decrease) in creditors (8 7 5 0 3 ) 223 020

Increase in unearned revenue 2 0 7 6 34 6 1 290 024

Net cash provided by op eratin g a ctiv ities 1 4 2 7 6 5 4 2 297 818

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

NATIONAL RESIDUE SURVEY NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS fo r th e year e n d e d 3 0 Ju n e 1999

14 C on tin gen cies

The NRS is unaware of any conditions, situations or circumstances that will give rise to a contingent gain or loss.

15 Events Occurring After Balance D ate

There was no significant event occurring after balance date which warrants disclosure or which has to be brought to account in the financial statements.

16 Equity

Item Capital Accumulated

Results

Asset

revaluation reserve

TOTAL EQUITY

$ $ $ $

Balance 1 July 1998 158 286 143 896 8 013 310 195

Operating result 0 9 289 0 9 289

Net revaluation increases 0 0 1 676 1 676

Balance 30 June 1999 158 286 153 185 9 689 321 160

17 Additional Financial In stru m en ts Disclosure

a) Foreign Exchange Risk

The organisation has not entered into any foreign currency transactions.

b) Credit Risk Exposure

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

The credit risk on financial assets o f the organisation which have been recognised on the balance sheet, is the carrying amount, net of any provisions for doubtful debts. Due to the nature o f the majority o f the organisation's clients, such risk is considered by the organisation to be low.

c) Net fair values of financial assets and liabilities

The net fair values of all assets and liabilities approximate their carrying amounts. No financial assets and financial liabilities are readily traded on organised markets in standardised form. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and in the notes to and forming part of the accounts.

3 2 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

17 Additional Financial In stru m en ts D isclosure (con tin u ed )

d) Interest Rate Risk

The organisation's exposure to interest rate risk and the effective weighted average interest rate for classes of financial assets and financial liabilities is set out below:

Note Fixed Interest Fixed Interest Fixed Interest Fixed Interest Non-Interest Bearing

1998-99 $

1997-98

$

1998-99 $

1997-98

$

1998-99 $

Financial Assets

Cash - - - - 329 328 733 243

Receivables 5 - - - - 126 867

Investments 6 8 979 463 6 182 696 - 1 050 276 -

Total Financial

Assets 8 979 463 6 182 696 - 1 050 276 456 195

Weighted average interest rates 5.07% 5.03% - 5.30% -

Financial Liabilities

Trade Creditors

Total Financial

11 - - - - 247 342

Liabilities - - - - 247 342

Non-Interest Bearing

Total Total

1997-98 1998-99 1997-98

$ $ $

329 328

22 139

755 382

334 845

334 845

733 243

126 867

8 979 463

9 453 658

247 342

247 342

22 139

7 232 972

7 988 354

334 845

334 845

Weighted average interest rate

A P P E N D I X 1 0

A P P E N D I X 1 0

G L O S S A R Y O F T E R M S

ACT OF GRACE PAYMENTS:

Section 33 o f the F inancial M anagem ent a n d Accountability A c t 1 9 9 7 provides th at, in special circum stances, the C om m onw ealth may pay an am o u n t to a person n o tw ith sta n d in g th a t the C om m onw ealth is no t u n d er any legal liability to do so.

A D M IN IST E R E D ITEMS:

A dm inistered assets, liabilities, revenues and expenses in relation to an agency are those w hich are:

(a) controlled by the Government; and

(b) managed or oversighted by the departm ent on behalf of the Government, including:

(c) subsidies, grants and benefit payments;

(d) taxes, fees, fines and excise;

(e) public debt and related interest; and

f) loans to other governments and related interest.

AG ENCY ITEMS:

Agency assets, liabilities, revenues an d expenses are those w hich are controlled by the agency (or a subsidiary), including;

(a) computers, plant and equipm ent used in providing goods and services;

(b) liabilities for employee entitlements;

(c) revenues from running cost appropriations (or from other appropriations for resources used in providing goods and services);

(d) revenues from user charges and profits on asset sales deemed to be appropriated to agencies in accordance with section 31 o f the Financial Management and Accountability A ct 1997', and

(e) employee expenses and other administrative expenses (including contracting out) incurred in providing goods and services.

A P P E N D I X 1 0

ADVANCE TO T H E M IN IST E R FOR FIN A N C E (AMF):

T he contingency provisions appropriated in the tw o Supply Acts and the two annual A p propriation Acts to enable fu n d in g o f u rgent expenditures n o t foreseen at the tim e o f p reparation o f the relevant Bills. These funds m ay also be used in the case o f changes in expenditure priorities to enable ‘transfers’ o f

m oneys from the purpose for w hich they w ere originally appropriated to another purpose p en d in g specific appropriation.

A N N U A L APPROPRIATIO NS:

Acts w hich appropriate m oneys for expenditure in relation to the G overnm ent’s activities d u rin g the financial year. Such appropriations lapse on 30 June.

APPROPRIATIO N:

A u th o risatio n by P arliam ent to expend p u b lic m oneys from the C o n so lid ated R evenue F und or Loan F und for a particu lar purpose, or the am o u n ts so au th o rised . All ex penditure (ie. outflow s o f m oneys) from the C o m m o n w ealth P ublic A cco u n t m u st be a p p ro p riated , ie. au th o rised by the P arliam ent. T h e a u th o rity for ex penditure from individual funds is provided u n d er th e F inancial M anagem ent a n d A ccountability A c t 1 9 9 7 or an A ct establishing the fu n d an d specifying its p u rpose. See also A n n u al A p p ro p riatio n s’ and ‘Special A p p ro p riatio n s’.

APPR O PR IA TIO N A C T (N o 1):

An Act to appropriate m oneys from the C onsolidated Revenue F und for the ordinary annual services o f G overnm ent.

A PPR O PR IATIO N A C T (N o 2):

An A ct to appropriate m oneys from the C onsolidated Revenue F und for other than ordinary annual services. U nder existing arrangem ents betw een the two H ouses o f P arliam ent this Act includes appropriations in respect o f new policies (apart from those funded under Special A ppropriations), capital works and services, p lan t an d equipm ent an d paym ents to the States an d the

N o rth e rn Territory.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

APPROPRIATIO N ACTS (N os 3 and 4):

W here an am o u n t provided in an A ppropriation Act (Nos 1 or 2) is insufficient to m eet approved obligations falling due in a financial year, additional ap p ro p riatio n m ay be provided in a further A ppropriation Act (Nos 3 or N o 4). A ppropriations may also be provided in these Acts for new expenditure proposals.

APPR O PR IATIO NS CLASSIFIED AS FIN A N C IN G TRANSACTIO NS:

Refers to a p p ro p ria tio n s w hich are classified as financing transactions rather th an outlays because they are considered to be closely or functionally related to the repaym ent o f loans o r com prise transactions involving financial assets or liabilities. T hey m ainly com prise repaym ents o f principal on loans (the in terest repaym ents on loans are classified as outlays). See also ‘F inancing T ransactions’.

APPROPRIATIO NS CLASSIFIED AS REVENUE:

Refers to appropriations w hich are n etted against receipts. T hey do no t form part o f outlays because they are considered to be closely or functionally related to certain revenue item s or relate to refunds o f receipts and are therefore shown as offsets to receipts, eg. refunds o f PAYE tax instalm ents, w orking capital advance to the G overnm ent Printer.

AU D IT ACT 1901:

Previously the principal legislation governing the financial reporting o f the d epartm ent. R eplaced by the Financial Management and Accountability Act 1997, the Commonwealth Authorities and Companies Act 1997 and the Auditor-General Act 1997 o n 1 January 1998.

AUDITO R-GENERAL ACT 1997 (A-G ACT):

T he A-G Act defines the powers, functions and responsibilities o f the A uditor-G eneral. T h e A -G Act is part o f the package o f legislation w hich replaced the Audit Act 1901 on 1 January 1998. T he two other acts in the package are the Commonwealth Authorities and Companies Act 1997 (CAC

Act) and the Financial Management and Accountability Act 1997 (FM A Act).

A F F A ANNUAL R E P ORT 1 9 9 8 - 9 9

A P P E N D I X 1 0

CO M M O N W EA LT H A U T H O R IT IE S A N D CO M PANIES A C T 1997 (CAC ACT):

T h e C A C Act contains standardised financial, rep o rtin g , ethical an d auditing provisions relating to those C om m onw ealth S tatu to ry A uthorities w hich do have a separate legal financial existence o f th e ir own; their subsidiaries; and C om m onw ealth controlled com panies and th eir subsidiaries. T he CAC A ct is p a rt o f th e package o f legislation w hich replaced the A u d it A ct 1901 on 1 January 1998. T h e two o th er acts in the package are the Financial

M anagem ent a n d Accountability A ct 1 9 9 7 (FM A Act) and the Auditor-G eneral A c t 1 9 9 7 (A-G Act).

CO M M O N W EA LT H PUBLIC A C C O U N T :

T h e m ain bank account o f the C om m onw ealth, m aintained at the Reserve B ank in w hich are held the m oneys o f the C onso lid ated Revenue F und, Loan F und, C om m ercial A ctivities F und and Reserved M oney F und (other th an the N ational D e b t Sinking F und).

C O N SO L ID A T E D REVENUE F U N D (CRF); LOAN FU N D ; COM M ERCIAL ACTIVITIES FU N D ; RESERVED M O N E Y FU N D :

These four funds com prise th e C om m onw ealth Public A ccount (CPA).

CRF

T he principal w orking fu n d o f the C o m m o n w ealth m ainly financed by taxation, fees and o th er cu rren t receipts. T h e C o n stitu tio n requires an ap p ropriation o f m oneys by the Parliam ent before any expenditure can be m ade from the CRF. T hese follow two forms:

(i) annual appropriations consisting o f Supply Acts (Nos 1 and 2), the Supply (Parliamentary Departm ents) Act, the Appropriations Acts (Nos 1 -4) and the Appropriation (Parliamentary Departm ents) Acts (Nos 1 and 2) (the Supply Acts relate to the first five m onths o f the financial year and are subsum ed by

the corresponding A ppropriation Acts); and

(ii) special or standing appropriations.

Loan Fund

A u th o rity for its establishm ent comes from s 19 o f the FM A Act. All m oneys raised by loan on the public credit o f the C om m onw ealth are credited to the Loan F und. E xpenditures from the Loan F und require an ap p ro p riatio n by P arliam ent and are lim ited to the purpose(s) for w hich m oneys were originally raised as specified.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

Commercial A ctivities Fund

Established u n d er s 21 o f the FM A Act, this fu n d accounts for public m oney derived directly or ind irectly from com m ercial activities for w hich the Finance M inister has m ade a w ritten determ ination. Each co m p o n en t o f the CAE is credited w ith receipts and debited w ith paym ents related to the specific purpose for w hich th at com p o n en t was established.

Reserved M oney Fund

Established u n d er s 20 o f the FM A Act, this fu n d accounts for public m oney w hich has been set aside fo r future purposes, u n d er an enactm ent, a trustee arrangem ent or as d eterm in ed by the Finance M inister. T h e RM F consists o f Reserves w hich are credited w ith receipts an d debited for paym ents in relation

to the future purpose for w hich it was established.

Paym ents into the RM F m ay be by way o f ap p ro p riatio n from the C RF or Loan Fund or direct credit o f private m oneys. E xpenditure from the RM F is appropriated for (and lim ited to) the specific purposes o f each fund stated in the Act establishing it. U nlike the unused p o rtio n o f annual appropriations,

RM F balances - as w ith ‘special’ or ‘stan d in g ’ appropriations - do n o t lapse at the end o f the financial year.

Legal advice is to the effect th at investm ents, an d the liq u id atio n o f those investm ents, involve ‘ex penditure’ an d ‘receipts’ an d th at the balances o f RM F should be reduced by the am o u n t o f investm ents o u tstan d in g at 30 June. In the interests o f inform ative reporting, the financial statem ents have been designed so as to include explicit investm ent inform ation. In particular,

inform ation concerning expenditure and receipts has been split as between investm ent and no n -in v estm en t activities so as to provide ‘n o tio n a l’ balances taking into account the value o f investm ents, and a ‘cash’ balance after account is taken o f investm ent transactions.

EXPENDITURE:

T h e total or gross am o u n t o f m oney spent by the G overnm ent on any or all o f its activities (ie. the to tal outflow o f m oneys from the C om m onw ealth Public A ccount). All expenditure m ust be appropriated, ie. authorised by the Parliam ent (see also ‘A ppropriations’). Every expenditure item is classified to

one o f the econom ic concepts o f outlays, revenue (ie. offset w ith in revenue) or financing transactions.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

■

A P P E N D I X 1 0

FINANCIAL M A N A G E M E N T A N D A C C O U N T A B IL IT Y ACT 1997 (FMA ACT):

T he FM A Act provides the regulatory financial fram ew ork for ‘agencies’ - d epartm ents and sta tu to ry authorities w hich financially are agents o f the C om m onw ealth in th a t they do n o t own m oneys or assets separately from the C om m onw ealth. FM A R egulations and O rders are m ade p u rsu an t to the Act. T he FM A Act is p art o f the package o f legislation w hich replaced the A u d it A ct 1901 on 1 January 1998. T he two o th er acts in the package are the

Commonwealth Authorities a n d Companies A c t 1 9 9 7 (CAC Act) and the Auditor-G eneral A ct 1 9 9 7 (A-G Act).

F IN A N C IN G T R A N SA C T IO N S:

R elate to the raising and repaym ent o f loan principal or transactions involving financial assets or liabilities (eg. change in investm ents or holdings o f cash). T h ey represent the difference betw een outlays and revenue and hence involve the investm ent o f B udget surpluses or the financing o f Budget deficits. See also ‘A pp ro p riatio n s classified as financing transactions’.

LOAN FU N D :

See ‘C onsolidated Revenue F u n d ’.

OUTLAYS:

An econom ic concept w hich shows the net extent to w hich resources are directed th ro u g h the B udget to other sectors o f th e econom y after offsetting recoveries and repaym ents against relevant expenditure item s ie. outlays consist o f expenditure n e t o f associated receipt item s. T he difference between outlays and revenue determ ines the B udget balance (ie. surplus or deficit). See also ‘A p p ro p riatio n s’; ‘A pp ro p riatio n s classified as revenue’; ‘A ppropriations classified as financing tran sactio n s’; and ‘R eceipts offset w ith in outlays’.

POLICY GROUPS:

An aggregation o f the D e p a rtm e n t’s Industries D evelopm ent G roup and the C om petitiveness and S ustainability G roup, used as a classification w ith in the financial statem ents.

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

RECEIPTS:

T h e am o u n t o f m oneys received by the C om m onw ealth (ie. the C om m onw ealth P ublic A ccount) net o f refunds. Every receipt item is classified to one o f the econom ic concepts o f revenue, outlays (ie. offset w ith in outlays) or fin an cin g transactions.

RECEIPTS N O T O FFSET W IT H IN OUTLAYS:

Receipts classified as ‘revenue’. See also ‘Revenue’.

RECEIPTS OFFSET W IT H IN OUTLAYS:

Refers to receipts w hich are n etted against certain expenditure item s because they are considered to be closely or fu n ctio n ally related to those item s, eg. receipts from co m p u ter hire charges are offset against the ru n n in g costs o f the d ep a rtm en t’s accounting a n d m anagem ent in fo rm atio n systems.

REVENUE:

Item s classified as R evenue are receipts w hich have n o t been offset w ithin outlays or classified as financing transactions. T h e term ‘revenue’ is an econom ic concept w hich com prises the n et am ounts received from taxation, interests, regulatory fu n ctio n s, investm ent holdings and governm ent business

undertakings. It excludes am o u n ts received from the sale o f governm ent services or assets (these are offset w ith in outlays) and am ounts received from loan raisings (these are classified as financing transactions). Some expenditure is offset w ith in revenue eg funds o f PAYE tax instalm ents and the operating

expenditure o f b u d g et sector business undertakings. See also ‘Receipts’.

R U N N IN G CO STS:

T h e sum o f adm inistrative expenses, salaries and allowances.

SPECIAL (ST A N D IN G ) APPR O PR IATIO N:

M oneys ap p ropriated by a specific Act o f Parliam ent for a specific purpose (eg. unem ploym ent benefits, grants to States for schools). T hey m ay or may n o t be for a specific a m o u n t o f m oney or particular period o f tim e. Special A ppropriations do n o t require annual spending authorisation by the

P arliam ent as they do n o t lapse at the en d o f each financial year. A distin ctio n is som etim es m ade betw een S tanding and Special A ppropriations. S tanding A ppropriations refer to an open-ended appropriation o f the C onsolidated Revenue F u n d by the enabling Act o f a legislatively-based

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

A P P E N D I X 1 0

program : the am o u n t ap p ro p riated will dep en d on the dem and for paym ents by claim ants satisfying program eligibility criteria specified in the legislation. Special A ppropriations can be regarded as som ew here betw een S tanding and A nnual A ppropriations: w hile a specified am o u n t is provided, it is included in a separate Bill authorising the p artic u la r program and can be specified for any num ber o f years.

T R A N SA C T IO N S A FFE C T IN G OUTLAYS:

Refers to the m ovem ent in fu n d balances. O utlays m easure the n et ex ten t to w hich resources are directed fro m the C o m m o n w ealth Public A ccount (ie. through the Budget) to o th er sectors o f the econom y. A ccordingly the transactions o f the CRF, th e L oan F und, the C om m ercial Activities F u n d and

the Reserved M oney F u n d are consolidated and in ter-fu n d transfers disregarded. T h u s ex penditure from the C R F u n d er an ap p ro p riatio n to the RM F w ould no t in itself c o n trib u te to outlays, b u t the expenditure undertaken from the R M F w ould. C onsequently, in reconciling the level o f outlays to the level o f a p p ro p riatio n s, it is necessary to adjust the latter for the m ovem ents in R M F balances w hich are classified to outlays.

338 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

C O M P L I A N C E W I T H G U I D E L I N E S

R E Q U I R E M E N T P a g e

A dvertising and M arket Research 147

A udited Financial S tatem ents 161

C om pliance Index 339

C onsultancy Services 95, 129

D epartm ental C ontacts 153

D epartm ental O rganisational C h art ix

D iscretionary G rants 85

Financial and Staffing Resources

- Aggregate sum m ary 10

- G roup sum m aries 28, 43, 53, 59, 64

Freedom o f In fo rm atio n — S ection 8 S tatem ent 107

In tro d u c tio n and Aids to Access V

Industrial D em ocracy 75

Internal and External S cru tin y 77

L egislation/R egulation Im pacting on Business 83,125

L etter o f Transm ission iii

List o f Acronym s 341

O ccupational H ealth and Safety 91

Perform ance Pay 88

Perform ance R eporting 11

R econciliation Table 159

Secretary’s C o rp o rate O verview 1

Service C harters 65, 101

Social Justice and E quity 69

Staffing O verview 87

Subject Index 345

Table o f C ontents vii

Training E xpenditure 89

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 339

3 4 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

L I S T O F A C R O N Y M S

AAA ABARE AFFA

A griculture — A dvancing A ustralia A ustralian B ureau o f A griculture and Resource Econom ics D e p a rtm e n t o f A griculture, Fisheries, and Forestry - A ustralia AFM A AIMS

A N A O A N U A N Z E C C

A ustralian Fisheries M anagem ent A uthority A Q IS Im p o rt M anagem ent System A ustralian N a tio n al A udit Office A ustralian N atio n al U niversity

A ustralia a n d N ew Z ealand E nvironm ent and C o n serv atio n C ouncil APEC APEC

APS AQIS A quaplan A R M C A N Z

Asia Pacific E conom ic C o-operation A ustralian Plague Locust C om m ission A ustralian P ublic Service A ustralian Q u a ra n tin e and In sp ectio n Service

Five year aquatic anim al h ealth plan A griculture an d Resource M anagem ent C ouncil o f A ustralia a n d N ew Z ealand ATO ATSI

A U SV ETPLA N AWB

A ustralian T axation O ffice A boriginal people and Torres S trait Islanders A nim al disease em ergency plan A ustralian W h e at B oard

BESIU BRS BSU

Business Ethics, Security and Investigations U n it B ureau o f R ural Sciences Business Services U n it

CAC Act C ITES CoAG C oD

C O G N O S

Com m onw ealth Authorities a n d Companies A ct 1 9 9 7 C o n v en tio n on In tern atio n al Trade in Endangered Species C o u n cil o f A ustralian G overnm ents C h ie f o f D ivision

R eporting to o l for the financial m anagem ent in fo rm atio n system C PSU CRA C SC C SIR O

C o m m u n ity and Public Sector U nion C om prehensive Regional Assessm ent C om petitiveness and S ustainability G roup C o m m o n w ealth Scientific and Industrial Research

CTAL

O rganisation C o n tain er T erm inals A ustralia Ltd

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

L I S T O F A C R O N Y M S

DISK D PIE D TR S

EC EGA E X D O C

FAO FarmBis FFRS FIPC FSIS FMIS F O R U M FPA FR D C FRRF

GIG ABARE

GIS G M O s G ST G T E M

H A C C P H R

IC O N ID G IRA IT

JE

EEAP

M EGABARE

M SEP

D e p artm en t o f In d u stry Science and Resources D e p artm en t o f Prim ary Industries and Energy D e p artm en t o f T ransport an d R egional Services

E xceptional C ircum stances Export Control A c t 1982 E xport D o cu m e n ta tio n System

Food and A griculture O rganisation o f the U nited N ations Farm Business Im provem ent Schem e Farm Fam ily R estart Schem e Fishing In d u stry Policy C ouncil

(US) Food Safety and Inspection Service Financial M anagem ent In fo rm atio n System Forest Resource Use M odel Food Processing A ccreditation Fisheries Research and D evelopm ent C orporation Fisheries Resources Research F und

ABARE’s second generation o f its dynam ic equilibrium m odel o f the w orld econom y G eographical Inform ation System Geneticall> M odified O rganism s G oods and Services Tax ABARE’s global trade and environm ent m odel

H azard Analysis and C ritical C o n tro l Point H um an Resources

Im p o rt C onditions Industries D evelopm ent G roup Im p o rt Risk Analysis Inform ation Technology

Japanese encephalitis

Livestock E xport A ccreditation Program

ABARE’s first generation o f its dynam ic equilibrium m odel o f the w orld econom y M eat Safety E nhancem ent Program

3 4 2 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

L I S T O F A C R O N Y M S

N O A P H N A Q S NESB N FF

N H T NRA

NRS

O E C D O H & S

PM SE IC

P W D

Q EAC Q IA C Q SP

R & D RCP RFA R IR D C

RIS

SCA RM

SD M F SES STA

U N US

WAPIS W T O

N a tio n al O ffice o f A nim al and P lant H ealth N o rth e rn A ustralia Q u aran tin e Strategy People from non-E nglish speaking backgrounds N a tio n al Farm ers’ Federation N a tu ral H eritage Trust

N a tio n al R egistration A u th o rity for A griculture and V eterinary C hem icals N a tio n al R egistration Schem e

Organisation for Economic Co-operation and Development O ccu p atio n al H ealth and Safety

Prim e M in iste r’s Science, E ngineering and Innovation C ouncil People w ith disabilities

Q u a ran tin e and E xports A dvisory C ouncil Q u a ra n tin e and In sp ectio n A dvisory C ouncil Q u a lity Softw are P roducts

Research a n d developm ent Rural C o m m u n ities Program R egional Forest A greem ent R ural Industries Research and D evelopm ent C orporation

R egulation Im pact S tatem ent

S tanding C o m m ittee on A griculture and Resource M anagem ent Secretary’s D iversity M anagem ent Forum S enior Executive Service

S uperm arket to Asia

U n ited N ations U n ited States o f Am erica

W ood and Paper Industries Strategy W orld Trade O rganisation

N U A L R E P O R T 1 9 9 8 - 9 9 3 4 3

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

S U B J E C T I N D E X

A

ABARE, see Australian Bureau of Agricultural and Resource Economics Aboriginal peoples and Torres Strait Islanders, 73, 74 access and equity, 66, 69-74 accidents and injuries, 93

accountability arrangements, 4-5 statutory authorities, 20 accounting policies, 181-6, 210-12 Australian Quarantine and Inspection

Service Account, 255-8, 275-6 Meat and Inspection Service Account, 291-4, 309-10 National Residue Survey, 322-3 accrual budgeting, 62 act of grace payments, 205 Action Plan for Australian Agriculture, 17, 19

adding value, 13, 17-18, 63 advances and loans, 208-9, 215, 231 advertising and market research, 147-52 AFFA 2000, 1-2, 4, 5 AFFA Corporate Plan, 62 AFFA M t Eliza Leadership Program, 5 AFFA People Management Strategic Plan, 63

agricultural and veterinary (agvet) chemicals, 18, 105-6 residue management, 15, 23, 240, 315-29 Agricultural Finance forum, 17

Agricultural Industries Division, 21-2, 23, 24 advertising and market research, 147 consultancy services, 131 powers, 119-20 agricultural pests, 22, 23, 38, 39, 57 Agricultural Trade Consultative Group, 20

agriculture, 13-25, 44-53 women in, 17, 50, 69 A griculture — A d va n c in g A ustralia, 18-19, 24 Agriculture and Forestry Group, 12

AGSO, 170-4, 189, 190, 229-30 air cargo, 42 airports, 41,101-2, 189 Animal Health Programs and Welfare Branch,

30

animal quarantine, 36, 37, 38 see also meat inspection animal health and welfare, 15, 21-2, 23, 38, 241

ovine Johne’s disease, 21, 80, 127 Animal Welfare Committee, 23 APEC, 20 apples, 20, 24, 36

AQIS, see Australian Quarantine and Inspection Service AQIS Import Management System (AIMS), 40

AQIS Japan Fruit Fly Area Freedom project, 57 A quaculture Policy: Selected Experiences fo r Overseas, 49

aquatic animal health (Aquaplan), 22, 40 area offices, 154-6 Asia, 17-18, 20, 33 assets and liabilities, 190-1, 193-204, 210-19

Meat Inspection Division, 285, 295, 298­ 307, 309-13 National Residue Survey, 325-7, 328-9 Q uarantine and Export Certification

Divisions, 249, 260, 263-73, 275-8 Audit Committee, 77, 78 audits, 77-8 A ustralia in the G lobal N uclear Fuel M a rk et ,

52

A ustralia in the World G old M arket, 47 Australia New Zealand Food Authority, 23 Australia Post, 41 Australian Academy of Science, 71 Australian Animal Health Council Ltd, 21 A ustralian B e e f Industry 1998, 50 Australian Bureau of Agricultural and

Resource Economics (ABARE), 44-53, 70, 121, 153, 154 advertising and market research, 151 consultancy services, 140-1

finance, 53, 170-4, 229, 235 occupational health and safety, 91, 93 A ustralian Comm odities, 47, 48, 49, 51-2 A ustralian Crop Report, 46

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

Australian Customs Service, 41, 259 A ustralian F arm Surveys Report 1999, 50 Australian Fisheries Management Authority, 105-6, 230, 235

A ustralian Fisheries Statistics 1998, 50 A ustralian Forest Products Statistics, 46 Australian Geological Survey Organisation (AGSO), 170-4, 189, 190, 229-30 A ustralian Grains Industry 199 9 , 47 Australian Greenhouse Office, 58 Australian Landcare Council, 100 Australian Menindee Seedless growers, 81 Australian National Audit Office (ANAO),

77-8

remuneration, 206, 274, 308, 325 Australian Plague Locust Commission, 23, 121 Australian Plant Health Council, 22 Australian Q uarantine and Inspection Service

(AQIS), 7, 29-43, 153, 259 advertising and market research, 150-1 area offices, 154-6 business services, 63 consultancy services, 133-40 finance, 34, 43, 170-4, 245-313 occupational health and safety, 91, 92, 93 Ombudsman comments, 81 parliamentary committee inquiries, 79 powers, 121 service charters, 101-6 staff management, 78 Australian Q uarantine and Inspection Service

Account, 245-79

Australian Q uarantine and Inspection Service Reserve, 239 Australian Rural Leadership Program, 69 Australian W heat Board, 19-20, 207 AWB Limited, 19-20

B banking arrangements, 63 beef industry, 50 Biologicals Unit, 101-2 biopesticides, 23 Biosafety Protocol, 21 biotechnology, 21 Blair Report, 23, 259 Border Programs Branch, 40

Border Taskforce, 259 Brazil, 33 Bureau of Rural Sciences (BRS), 54-9, 70-1, 153, 170-4

advertising and market research, 152 consultancy services, 141-4 powers, 122 Business Ethics, Security and Investigations

Unit, 78-9, 81

Business Services Unit, 63

c carbon dioxide, 48 cash and cash flows, 175-7, 203-4 Meat Inspection Division, 286, 296, 299,

307

National Residue Survey, 320, 327 Q uarantine and Export Certification Divisions, 250, 261, 264, 273 cattle, 23, 33 Certified Agreements, 259, 294

C harter o f P ublic Service in a Culturally D iverse Society, 66, 69 chemicals, see agricultural and veterinary chemicals Chile, 24 China, 24, 33, 36 citrus fruit, 20, 24, 36 client service charter, 65-7 climate change, 18-19, 48-9, 58

C lim ate Change Newsletter, 58 Climate Variability in Agriculture Research and Development project, 18-19 Co AG Water Reform Framework, 25 coal industry, 48, 52 CO G N OS, 62 Comcare Australia, 93 commercial innovation, 14, 20-1 commitments, 178

Meat Inspection Division, 287 National Residue Survey, 321, 327 Quarantine and Export Certification Divisions, 251

commodity forecasts, 44-53 C om m onw ealth A uthorities a n d Companies A c t

1997, 20

Commonwealth Ombudsman, 81 communication strategies, 70-1

3 4 6 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

Com munity and Public Sector Union, 91 community awareness, 38, 40-1 competitiveness and profitability Australian Bureau of Agricultural and

Resource Economics, 45, 46-8 Australian Quarantine and Inspection Service, 30-1, 33-5 Bureau of Resource Sciences, 55, 56-7

policy groups, 13-16, 17-25 Competitiveness and Sustainability Group, 11-28, 131-3, 148-50 complaints, 66-7, 101-5 Compliance, Legal and Evaluation Branch,

101-2

computers and computing, see information technology; intangibles conferences, 47, 51, 70, 71 papers presented to, 49, 51

Considerate Workplace Strategy, 72 Consolidated Revenue Fund, receipts and expenditures from, 220-5 consultancy services, 95, 129-45 consultation, 39,118-19

with staff, 75 contacts, 153-7 contingencies, 179 Meat Inspection Division, 288, 307

National Residue Survey, 328 Quarantine and Export Certification Divisions, 252, 273 Convention on International Trade in

Endangered Species (CITES), 49 Corporate Group, 12 Corporate Development Team, 63 corporate governance of portfolio statutory

authorities, 20

Corporate Leadership Program, 5 Corporate Plan, 62 costs, see finance counselling, 24 ‘Country M atters’ conference, 71 court decisions, 81 credit risk exposures, 219

Meat Inspection Division (MID), 312-13 National Residue Survey, 328 Quarantine and Export Certification Divisions (QEC), 278

CSIRO, 22 CTAL, 93 cultural diversity, 66, 69-74

D dairy industry, 35, 48, 101-2 dangerous occurrences, 93 debt, 192

waivers and write-offs, 205 Department of Environment and Heritage, 25 Department of Finance and Administration, 259 Department of Immigration and Ethnic

Affairs, 259

Department of Industry, Science and Tourism, 11, 190 Department of Transport and Regional Services, 11

Departmental Outcomes Statement, 1-2 desktop computing strategy, 63 detector dogs, 41

Director of Public Prosecutions, 79 disabilities, people with, 73, 74 disciplinary action, 79

discretionary grants, 85 disease incident reporting system, 37 diversity, 66, 69-74 documents held, 107-18 dryland salinity, 26 durians, 24

E economic dependency Meat Inspection Division (MID), 294 National Residue Survey, 323

Quarantine and Export Certification Divisions (QEC), 258 Econom ic Im pacts o f N ew Electricity Interconnectors, 52

Economics o f A ustralian C oal Supply, 52 egg imports, 36 electricity industry, 48, 51-2 electronics, see information technology emergency response, 15, 21-2

emissions trading, 48 Energy Efficiency Best Practice Sector P rioritisation Study, 52

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

E n erg y M a r k e tin g D e ve lo p m e n ts a n d P rojects to

2 0 1 4 - 1 5 , 46

energy sector industries, 46, 48, 51-2 E n erg y Use a n d E n erg y E fficien c y in A u s tr a lia n

In d u s tr y , 52

equal employment opportunity, 72-4 equipment, see information technology; plant and equipment equity (financial), 193

Meat Inspection Division, 306 National Residue Survey, 328 Quarantine and Export Certification Divisions, 272-3 equity and social justice, 66, 69-74 Ernst & Young, 77 ethics training, 79 European Union, 20, 48 Exceptional Circumstances support, 24, 56 Executive Secretariat, 60-4, 122, 145 expenditure, see finance export inspection, 29-31, 33-5, 126 exports, see trade external scrutiny, 77-8, 79-82

F FAO, 20 Farm Family Restart Scheme, 24 Farm Financial Counselling, 24 farm forestry, 26, 46, 47 FarmBis, 18-19, 125 F arm ers a t W ork: the G en d er D iv is io n , 50

Federal Airports Corporation, 189 Federal C ourt decisions, 81 feedback, 4, 42, 66-7, 101-5 from staff, 63, 88 females, see women Fenner Conference on the Environment, 71 feral animals, 57 fertilisers, see agricultural and veterinary

chemicals

finance, 10, 159-338 advertising and market research expenditure, 147-52 Australian Bureau of Agricultural and

Resource Economics, 53, 170-4, 229,235 Australian Quarantine and Inspection Services, 34, 43, 170-4, 245-313

Bureau of Rural Sciences, 59, 170-4 consultancy services payments, 129-45 industry cost-sharing arrangements, 21, 34 N a t u r a l Resources M a n a g e m e n t (F in a n c ia l

A ssistance) A c t 1 9 9 2 payments,

99-100

performance pay, 89 policy groups, 28, 170-4 rural, 17 Secretariats, 64 staff training, 89 financial counselling, 24 financial instruments, 194-7, 210-19

Meat Inspection Division, 299-301, 309-13 National Residue Survey, 328-9 Q uarantine and Export Certification

Divisions, 264-5, 275-8 financial management, 62-3 Financial Management Information System, 62 financial statements, 161-338 fish, 35, 39, 40, 103-4 fisheries, 11, 16, 27, 50, 58

Australian Fisheries Management Authority, 105-6, 230, 235 Fisheries Action Plan, 27 Fisheries and Forestry Industries Division,

123, 129-30, 147-8

F isheries S ta tu s R eports, 58

Food and Agribusiness Industries Division, 120, 130-1, 147 Food and Fibre Supply Chains Program, 17, 18 food imports, 38, 42 food industry, 11, 17-18 food safety, 15, 23, 259 Food Safety Branch, 30 FoodConnect Australia website, 17 Forest Flealth Committee, 22 Forest Industries Structural Adjustment

Program, 24

forest pests, 22 Forest P roducts: L o n g term C o n su m p tio n

P rojections f o r A u stra lia , 47

forestry and forestry products, 16, 26-7, 46, 47, 50-1, 57, 241 Ministerial powers, 123 legislation impacting on business, 125

3 4 8 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

Forestry Fund, 241 Framework Convention on Climate Change, 48-9, 58 fraud control, 62, 78-9

Fraud Control Plan, 78 freedom o f information, 81-2, 107-23 French Polynesia, 33

fruit, 20, 24, 36 fruit fly, 27, 57 full-time staff, 87

G

game meat, 33 gas emissions, 26, 48-9, 58 gas industry, 48, 51-2 gene technology, 21, 56

genetic material imports, 36 G lo b a l O u tlo o k f o r P la n ta tio n s , 47

global trade and environment model (GTEM), 48 gold, 47 grain, 19-20, 33, 35, 47, 207

service charter, 103-4 grants, 18, 27, 85 grapes, 24, 46, 81 Great Artesian Basin, 26, 58 greenhouse gases, 26, 48-9, 58 groundwater resources, 26, 58

Group 8, 6

H harassment, 72 hatching eggs, 36 health and safety, 91-3

herbicide resistant crops, 56 horses, 36 horticulture, 20, 24, 27, 38, 39, 57 service charter, 103-4

I ICO N import conditions database, 40 import clearance, 41, 103-4 Import Risk Analyses, 36-7

imported foods, 38, 42 Im p o r te d F o o d C o n tro l A c t 1 9 9 2 , 39

imports, see trade Income Equalization Deposits Account, 240

income support, 24, 56 India, 41 Indigenous peoples, 73, 74 Indonesia, 37, 38

industrial democracy, 75 Industries Development Group, 11-28, 147-8, 129-31 industry cost-sharing arrangements, 21, 34

industry empowerment, 14, 18-20 industry energy use, 52 Information Services Centre, 6, 63 information technology, 6, 62, 63

Australian Quarantine and Inspection Service, 40 Meat Inspection Division, 302 Quarantine and Export Certification

Divisions, 267 see also intangibles; Internet; plant and

equipment

injuries and accidents, 93 innovation (commercial), 14, 20-1 inquiries by parliamentary committees, 25, 79-80

insect pests, 22, 23, 38, 39 inspection services, 29-31, 33-5, 101-6, 126-7 insurance (AFFA), 189 intangibles (computer software), 199, 201-2

Meat Inspection Division, 302 National Residue Survey, 326 Quarantine and Export Certification Divisions, 268-70 Integrity Rural Products Pty Limited, 81 interest

Meat Inspection Division, 295, 299 Quarantine and Export Certification Divisions, 260 interest rate risk, 213-16 Meat Inspection Division (MID), 311 National Residue Survey, 329 Quarantine and Export Certification

Divisions (QEC), 277 internal audit, 62, 77 Internal Audit Unit, 77 internal scrutiny, 77, 78-9 international activities, 18, 20, 41, 58

international emissions trading system, 48 international mail, 37, 41, 105-6 Internet, 79

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 3 4 9

I N D E X

Australian Bureau of Agricultural and Resource Economics, 44 Australian Quarantine and Inspection Service, 29, 40

Bureau of Resource Economics, 57, 70 policy groups, 11 Supermaket to Asia strategy, 17 inventories, 199

Meat Inspection Division, 300 National Residue Survey, 325 Quarantine and Export Certification Divisions, 265 investigations of fraud, 79 investments, 195-6

National Residue Survey, 325

J Japan, 20, 24, 33, 36 Japan Fruit Fly Area Freedom project, 57 Japanese encephalitis, 38, 57 joint ventures, interest in, 200

K Key Result Areas, 2 Korea, 20, 24, 33 Kyoto Protocol, 48-9, 58

L laboratory animals, 36 labour productivity, 19 land resources, 26, 49, 99-100 L andcare: P ro m o tio n Im p r o v e d L a n d

M a n a g e m e n t Practices on A u str a lia n

F arm s, 49

Language and Cultural Skills Register, 69 leadership training, 5 rural women, 69 legislation, 21, 26

impacting on business, 83, 125-7 parliamentary committee inquiries, 79-80 levies and charges, 21, 80, 127, 189 Levies and Revenue Service, 63 liabilities, see assets and liabilities live animal exports and imports, 33, 34-5,

42, 105-6

Livestock Export Accreditation Program, 23

loans and advances, 208-9, 215, 231 locusts, 23

M mail (international), 37, 41, 105-6 Malaysia, 22 male staff, 87-8 Management Secretariat, 60-4, 122, 144-5, 152 mangoes, 36 market access, 14, 20, 33 market assessments, 44-53 market protection, 33 market research and advertising, 147-52 marketing testing of IT, 6 Mauritius, 33 meat, 20, 33-5, 50, 103-4, 295 Meat and Inspection Service Account,

281-313

Meat and Inspection Service Reserve, 239 Meat Inspection Division, 29, 34, 281-313 Meat Safety Enhancement Program, 33-4 Meat Safety Quality Assurance arrangements,

34

media coverage, 38, 51, 70 media releases (ABARE), 51 men staff, 87-8 methane, 48, 58 microeconomic reforms, 19-20, 24-5, 49 Ministers, 1

powers, 119-21, 122-3 M isse d O p p o r tu n itie s — H a rn essin g the

P o te n tia l o f W om en in A u str a lia n

A g ric u ltu re , 69

mobility of SES staff, 88 M t Eliza Leadership Program, 5 multilateral trade negotiations, 20, 47-8 Murray-Darling 2001 Program, 25 Murray Darling Basin, 25, 49

N Nairn, Professor Malcolm, 38 Nairn report, 39 National Cattle Disease Eradication Account,

241

National Competition Policy, 18, 25, 38 National Feral Animal Control Program, 57 National Forest Inventory, 57

3 5 0 A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

National Landcare Program, 25, 99 National Office of Animal and Plant Health (NOAPH), 11, 21-2, 23 National Office of Food Safety, 11, 23, 30

National Registration Authority (Scheme), 105-6, 230 National Residue Survey, 23, 240, 315-29 National Rivercare Program, 25 National Strategy for the Management of

Agricultural and Veterinary Chemicals, 18 National Task Force on Imported Fish and Fish Product, 39 National Weeds Strategy, 26

Natural Heritage Trust, 25, 69 natural resource management, 16, 25-6, 44-53, 99-100, 241 women in, 17, 69 Natural Resource Management Policy

Division, 12, 25-6, 120-1, 132 N a tu r a l Resources M a n a g e m e n t (F in a n c ia l

A ssistance) A c t 1 9 9 2 , 99-100

Natural Resources Management Fund, 100, 241 New South Wales River Management Committees, 56

New Zealand, 20, 36 Newcastle disease, 21-2 niche marketing, 17 Nipah virus, 22

nitrous oxide, 48 non-English speaking backgrounds, people from, 37, 69 appointments to portfolio bodies, 74

staff, 69, 72, 73 Northern Australia Quarantine Strategy, 38 Northern Australian Regional Outlook Conference, 47, 51

nuclear fuel, 52

o oats, 33 occupational health and safety, 91-3 O c c u p a tio n a l H e a lth a n d S a fety A c t 1 9 9 9 , 93

OECD, 20 Office of Law Enforcement Co-ordination, 78 Office of the Chief Veterinary Scientist, 30

Olympic Games, 36, 37, 42 Ombudsman, 81 orange juice, 20 organisation and structure, 3-4, 11-12, 97,

190-1, 295

chart, ix outcomes, 1-2 Outlook conference, 47, 51, 70 outside participation, see consultation

outsourcing of IT, 6 outward focus, 6-8 overseas posts, 156-7 ovine Johne’s disease, 21, 80, 127

P Pacific region, 20, 38 papaya fruit fly, 38, 39

Papua New Guinea, 37 parliamentary committees, inquiries by, 25, 79-80 part-time staff, 87 participative work practices, 75

pea seeds, 33 pears, 24, 36 People in F a rm in g , 50

people management, 5, 63, 78-9, 88-93 People Management Strategic Plan, 5, 63 performance pay, 88-9 Performance Planning and Appraisal Scheme,

63

permanent staff, 87 pesticides, see agricultural and veterinary chemicals pests, 22, 23, 38, 39, 57

weeds, 26 Philippines, 38 Philippines fruit fly, 40 pig industry, 24

Plague Locust Commission, 23, 121 planning, 2, 5, 62, 63 plant and equipment, 198, 201-2, 230 Meat Inspection Division, 302, 303-4

National Residue Survey, 326 Quarantine and Export Certification Divisions, 267, 269-70

see also information technology

plant health, 15, 22 Plant Health Committee, 22

AF F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

Plant Protection Branch, 30 plant quarantine, 20, 38 Plant Variety Rights, 81 Plantation 2020 Vision and the Farm

Forestry Program, 26-7 plantation farming, 26, 46, 47 PMSEIC Working Group on Dryland Salinity, 26 Poland, 33 Policy and International Division, 29 policy groups, 11-28, 147-50, 129-33, 170-4 Pork Industry Restructuring Strategy, 24 portfolio bodies, 20, 78

appointments to, 73-4 Portfolio Outcome Statement, 1-2 Portfolio Policy and International Division, 12, 122, 131-2 powers, 119-23 P rim a ry In d u strie s ( C ustom s) C harges B il l

1 9 9 8 , 80

P rim a ry In d u strie s (E xcise) L evies B il l 1 9 9 8 ,

80

Primary Industries Levies Amalgamation Bills, 21 processed food, see food industry profitability, see competitiveness and

profitability

program objective, 181 program structure, 97 prohibited items intercepted, 40 P rojections o f W in e G rape P ro d u c tio n a n d

W in e r y I n ta k e to 2 0 0 0 - 0 1 , 46

property (land and building), 197, 201-2, 230 Meat Inspection Division, 301, 303-4 Quarantine and Export Certification Divisions, 266, 269-70 National Residue Survey, 327 public awareness, 38, 40-1

Q quality assurance arrangements, 34 quarantine and inspection, 20, 29-43, 127 see also Australian Quarantine and

Inspection Service

Q u a r a n tin e A m e n d m e n t B i l l 1 9 9 8 , 79

Quarantine and Export Certification Divisions, 245-79

Q uarantine and Export Operations Division, 29 Quarantine and Exports Advisory Council, 39 Q uarantine and Inspection Advisory Council

Dairy Review, 35

Quarantine Week 1999, 38

R receivables, 194 Meat Inspection Division, 300, 301 National Residue Survey, 325

Q uarantine and Export Certification Divisions, 265 reconciliation table, 159 Regional Forest Agreements, 26-7, 50-1, 57,

125

regional offices, 154-6 Regional Technical Meeting on Plant Protection, 38 Regulation Impact statements, 83, 125-7 remuneration payments, 206

Meat Inspection Division (MID), 307-8 National Residue Survey, 325, 327 Q uarantine and Export Certification Divisions, 274

Republic of Korea, 20, 24, 33 research grants, 18, 27 Reserved Money Fund, 239-43 residue management, 15, 23, 240, 315-29 Residues and Standards Branch, 30 resources received free of charge, 189-90, 274 responsiveness in dealings with public, 71 revenue, see finance Review of Food Regulation, 23, 259 risk assessment panels, 39 risk assessment review, 93 risk management, 36-7, 57, 77 rural adjustment, 15-16, 24-5, 49, 125 rural communities programs, 11, 24 rural finance, 17 Rural Partnership Program, 18 Rural Policy and Communications Division,

12, 24, 123, 132-3

rural sciences, 54-9 rural women, 17, 50, 69

A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

s safety and health, 91-3 scientific advice, 54-9

scrutiny, 77-82 seafood, 33 see also fish; fisheries

Seaport Program, 105-6 Secretariats, 60-4, 122, 144-5, 152 Secretary’s Diversity Management Forum, 72 security training, 79 segment reporting

Meat Inspection Division (MID), 294 National Residue Survey, 323 Quarantine and Export Certification Divisions (QEC), 258

self reliance and industry empowerment, 14, 18-20 Senate Rural and Regional Affairs and Transport Legislation Committee,

79-80

Senate Rural and Regional Affairs and Transport References Committee, 80 Senate Standing Committee for the Scrutiny of Bills, 80 Senior Executive Staff (SES), 73, 87-9 service charters, 42, 65-7, 101-6

Singapore, 41 social justice and equity, 66, 69-74 Social Sciences Centre, 56, 71

software, see intangibles South Africa, 36 South Korea, 20, 24, 33 South Pacific region, 20, 37 S o u th e r n B lu e fin T uan a n d C IT E S : an

E co n o m ic P erspective, 49

staff, 10, 87-9 Australian Bureau of Agricultural and Resource Economics, 53 Australian Quarantine and Inspection

Services, 29, 43 Bureau of Rural Sciences, 59 Meat Inspection Division, 29 policy groups, 28

Secretariats, 64 staff consultation, 75 staff entitlements/costs, 190, 192 Meat Inspection Division, 295, 297, 305-6

National Residue Survey, 327

Q uarantine and Export Certification Divisions, 261-2, 271, 272 staff management, 5, 63, 78-9, 88-93 staff survey, 75 staff training and development, 5, 78-9, 91, 92

expenditure, 89 Standing Committee on Agriculture and Resource Management (SCARM), 23, 25, 40, 56

Standing Committee on Fisheries and Aquaculture, 49 S ta te o f th e Forests R eport, 57

status of women, see women statutory authorities, see portfolio bodies Strategic Aquatic Animal Health Plan (Aquaplan), 22, 40

strategic planning, 2, 5, 62, 63 structural adjustment, 15-16, 24-5, 49, 125 S tr u c tu r a l A d ju s tm e n t a n d Irr ig a te d B roadacre

A g ric u ltu re in th e S o u th M u rr a y

D a r lin g B asin, 49

structure, 3-4, 11-12, 97, 190-1, 295 organisation chart, ix submissions, 23, 25 Supermarket to Asia strategy, 17-18

suppliers, 192 Meat Inspection Division, 298, 305 National Residue Survey, 327 Quarantine and Export Certification

Divisions, 263

sustainability ABARE, 45-6, 48-52 Australian Quarantine and Inspection Service, 31-2, 35-42

Bureau of Resource Sciences, 55-6, 57-8 policy groups, 16, 25-7 Switzerland, 33, 41 Sydney 2000 Olympic Games, 36, 37, 42

T table grapes, 24, 81 Taxation Reform initiatives, 19 temporary staff, 87 Thailand, 24, 38

third party inspection services, 34-5 Torres Strait, 38 Torres Strait Islanders and Aboriginal peoples, 73, 74

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9

I N D E X

trade, 7, 14, 20, 33, 47-8 economic impact of imports, 24 emissions trading, 48 legislation impacting on business, 126-7 livestock exports, 23 training for farmers, 18

u United Kingdom, 41 United Nations Framework Convention on Climate Change, 48-9, 58 United States, 7, 20, 24, 33, 41 United States Food Safety and Inspection

Service, 34

University of Sydney, 22

V vaccine imports, 36 value adding, 13, 17-18, 63 value of financial assets and liabilities, 217-19

Meat Inspection Division (MID), 312 National Residue Survey, 328 Quarantine and Export Certification Divisions (QEC), 278 veterinarians, 34 veterinary chemicals, see agricultural and

veterinary chemicals V ision f o r C h a n g e - N a t io n a l P la n f o r W om en

in A g ric u ltu re a n d Resource

M a n a g e m e n t, 17, 69

‘Visions of Future Landscapes’ conference, 71

w waivers, 205 water resources, 25-6, 49, 58 websites, see Internet Weeds of National Significance, 26 wheat, 19-20, 33, 207 Wheat Export Authority, 20 Wheat Industry Fund, 19 wine, 46 women, 17, 50, 69

appointments to portfolio bodies, 74 staff, 73, 87-8 Women as Clients strategy, 69 Women in Rural Industries Section, 69 wool industry, 19, 207, 125

Wool International, 19, 207 W ool I n te r n a tio n a l A m e n d m e n t B ill 1 9 9 8 , 80

W ool I n te r n a tio n a l P riv a tisa tio n B il l 1 9 9 9 , 80

WoolStock Australia Limited, 19 work practices, 75 workplace diversity, 72-3 Workplace Harassment Guidelines, 72 workplace health and safety, 91-3

World Trade Organization (WTO), 20, 47-8 write-offs, 205

X x-ray units, 41

Y Year 2000 compliance, 6

z zoo animals, 36

A F F A A N N U A L R E P O R T 1 9 9 8 - 9 9 3 5 4

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

P A R L I A M E N T A R Y PAP F i R No. 441 of 1999 ORDERED TO BE PRINTED

ISSN 0727 ·4181