Australian Government, the Australian Office of Financial Management

Part 4: Financial statements

 

Audit Letter

 

Statement by the Chief Executive Officer and Chief Finance Officer

In our opinion, the attached financial statements for the year ended 30 June 2007 are based on properly maintained records and give a true and fair view of the matters required by the Finance Minister's Orders made under the Financial Management and Accountability Act 1997, as amended.

 

Signed

 

N Hyden
Chief Executive Officer
14 August 2007

Signed

 

P Raccosta
Chief Finance Officer
14 August 2007

 

 

Income statement

for the year ended 30 June 2007

Income statement for the year ended 30 June 2007

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

Balance sheet

as at 30 June 2007

Balance sheet as at 30 June 2007

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

(1) Refer to the Statement of Changes in Equity.

Statement of changes in equity

for the year ended 30 June 2007

Statement of changes in equity for the year ended 30 June 2007

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

Cash flow statement

for the year ended 30 June 2007

Cash flow statement for the year ended 30 June 2007

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

FMA = Financial Management and Accountability Act 1997.

Schedule of commitments

as at 30 June 2007

Schedule of commitments as at 30 June 2007

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

Note: Commitments are GST inclusive where an input tax credit is not available to the AOFM.

  1. Operating leases included are effectively non‑cancellable and comprise:

Nature of lease

General description of leasing arrangement

Lease for office accommodation

Motor vehicle leases
  • the lease term is for 15 years less one day with no option to renew; and
  • lease payments are subject to review on each second anniversary of the lease commencement date (22 December 2000).
  • the novation of lease rental payments over motor vehicles.
  1. Other commitments relate to contractual obligations for the provision of internal audit services, payroll services, wire services, fiscal agency agreements and service agreements with other parties, including Commonwealth bodies.

Schedule of administered items

Schedule of administered items

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

Schedule of administered items (continued)

Schedule of administered items (continued)

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

FMA = Financial Management and Accountability Act 1997.

Schedule of administered items (continued)

Schedule of administered items (continued)

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

  1. Master Agreements between the Australian Government and interest rate swap counterparties provide for transactions to be settled on a net basis. Amounts above are reported on a net basis. Net swap interest receipts for 2006‑07 were $92.355 million ($150.868 million for 2005‑06), whilst aggregate interest receipts for 2006‑07 were $1,792.139 million ($2,033.688 million for 2005‑06). Net swap interest payments for 2006‑07 were $40.233 million ($16.800 million for 2005‑06), whilst aggregate interest payments for 2006‑07 were $1,740.017 million ($1,899.620 million for 2005‑06).
  2. Includes redemption of debt issued on behalf of the States.

Schedule of administered items (continued)

Schedule of administered items (continued)

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

Note: Commitments are GST inclusive where an input tax credit is not available to the AOFM.

  1. As at 30 June 2007 there were no open transactions under the AOFM's securities lending facility
    (nil as at 30 June 2006).

Statement of activities administered on behalf of government

The administered activities of the AOFM are directed towards managing the Australian Government's net CGS debt portfolio at least cost over the medium term, subject to an acceptable level of risk, and to contribute to supporting financial market efficiency.

The major financial activities of the AOFM include the issuance of various borrowing instruments, the strategic formulation and undertaking of portfolio management, including through swap transactions, administration of the debt portfolio, and monitoring the conditions in Treasury Bond and Treasury Bond futures markets.

Details of the AOFM's planned activities for 2006‑07 can be found in the Treasury Portfolio Budget and Portfolio Additional Estimates Statements for 2006‑07, which have been tabled in Parliament.

 

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