Home > Reports > FRC, AASB & AAUSB Annual Report 2005-2006 - Part 5: Financial Reports (continued)

Part 5: Financial Reports

Auditing and Assurance Standards Board

Independent Audit Report
Statement by Directors and Chief Executive
Income statement
Balance sheet
Statement of changes in equity
Cash flow statement
Schedule of commitments
Schedule of contingencies
Note 1: Summary of significant accounting policies
Note 2: The impact of the transition to AEIFRS from previous AGAAP
Note 3: Events after the balance sheet date
Note 4: Income
Note 5: Operating expenses
Note 6: Financial assets
Note 7: Non-financial assets
Note 8: Provisions
Note 9: Payables
Note 10: Cash flow reconciliation
Note 11: Directors’ remuneration
Note 12: Related party disclosures
Note 13: Executive remuneration
Note 14: Remuneration of part-time members of the AUASB
Note 15: Remuneration of auditors
Note 16: Average Staffing Levels
Note 17: Financial instruments

 

Auditing and Assurance Standards Board
Statement by Directors and Chief Executive

In our opinion, the attached financial statements for the year ended 30 June 2006 are based on properly maintained financial records and give a true and fair view of the matters required by the Finance Minister’s Orders made under the Commonwealth Authorities and Companies Act 1997.

In our opinion, at the date of this statement, there are reasonable grounds to believe that the Auditing and Assurance Standards Board will be able to pay its debts as and when they become due and payable.

This Statement is made in accordance with a resolution of the directors.

SIGNED	SIGNED	SIGNED
Charles Macek Chairman — FRC 26 September 2006	Bruce Brook Director 26 September 2006	Merran Kelsall Chairman — AUASB 26 September 2006

Auditing and Assurance Standards Board
Income statement

For the year ended 30 June 2006

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

Auditing and Assurance Standards Board
Balance sheet

As at 30 June 2006

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

Auditing and Assurance Standards Board
Statement of changes in equity

For the year ended 30 June 2006

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

Auditing and Assurance Standards Board
Cash flow statement

For the year ended 30 June 2006

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

Auditing and Assurance Standards Board
Schedule of commitments

As at 30 June 2006

All commitments are GST inclusive where relevant.

(1) Operating leases are effectively non-cancellable and comprise:

Nature of lease	General description of leasing arrangement
Lease for office accommodation	Lease payments are subject to increase of 4 per cent per annum as per Lease agreement.
Lease of photocopiers	The lessor provides photocopiers for 36 months at a fixed instalment rate.
(2) Part of the leased area is sub-let and this represents the revenue from the sub-lease.

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

Auditing and Assurance Standards Board
Schedule of contingencies

As at 30 June 2006

There are no known contingencies as at 30 June 2006.

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

Notes to and forming part of the financial statements

Note 1: Summary of significant accounting policies

1.1 Basis of preparation of the financial statements

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

The AUASB is dependent on funding from the Parliament of the Commonwealth and on contributions from CPA Australia, The Institute of Chartered Accountants in Australia, and the National Institute of Accountants to carry out its normal activities.

The statements have been prepared in accordance with:

• Finance Minister’s Orders (or FMO’s, being the Commonwealth Authorities and Companies Orders (Financial Statements for reporting periods ending on or after 1 July 2005));
• Australian Accounting Standards issued by the Australian Accounting Standards Board that apply for the reporting period; and
• Interpretations issued by the AASB and UIG that apply for the reporting period.

This is the first financial report to be prepared under Australian Equivalents to International Financial Reporting Standards (AEIFRS). The impacts of adopting AEIFRS are disclosed in Note 2.

The Income Statement, Balance Sheet and Statement of Changes in Equity have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets which, as noted, are at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial report is presented in Australian dollars.

Unless alternative treatment is specifically required by an accounting standard, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under agreements equally proportionately unperformed are not recognised unless required by an Accounting Standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments and the Schedule of Contingencies.

Unless alternative treatment is specifically required by an accounting standard, revenues and expenses are recognised in the Income Statement when and only when the flow or consumption or loss of economic benefits has occurred and can be reliably measured.

1.2 Significant accounting judgements and estimates

No accounting assumptions or estimates have been identified that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.3 Statement of compliance

The financial report complies with Australian Accounting Standards, which include Australian Equivalents to International Financial Reporting Standards (AEIFRS).

The AUASB has applied Australian Accounting Standards in preparing its financial report for the year ended 30 June 2006. Some of the requirements of these Standards, as they apply to not-for-profit entities such as the AUASB, are different from IFRS. The nature and timing of the transactions in the year ended 30 June 2006 has been such that these differences have not had an impact on the AUASB’s financial report. Accordingly, the application of Australian Accounting Standards in the year ended 30 June 2006 has given the same outcomes as would have been achieved had the AUASB applied IFRS. Whether the AUASB also complies with IFRS in future years depends on the nature and timing of the transactions in those years.

Australian Accounting Standards require the AUASB to disclose Australian Accounting Standards that have not been applied, for standards that have been issued but are not yet effective.

The AASB website identifies standards and amendments that will become effective in the future. The AUASB intends to adopt all of the standards upon their application date where they apply to the AUASB.

The impact of the adoption of these standards on the financial report is not expected to be financially significant based on the AUASB’s initial assessment at this date, but this assessment may change.

Users should consult the full version available on the AASB website to identify the full impact of the change.

1.4 Revenue

Revenues from government and contributions are recognised at nominal amounts when invoiced in accordance with agreed schedules of payment (annually or quarterly).

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

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

1.5 Employee benefits

As required by the Finance Minister’s Orders, the AUASB has early adopted AASB 119 Employee Benefits as issued in December 2004, in order to recognise the actuarial gain direct to equity.

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

Liabilities for ‘short term employee benefits’ (as defined in AASB 119) and termination benefits due within twelve months are measured at their nominal amounts.

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

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

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of the AUASB is estimated to be less than the annual entitlements for sick leave.

The leave liabilities are calculated on the basis of employees’ remuneration including the AUASB employer superannuation contribution rates to the extent that leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at 30 June 2006. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

The AUASB participates as an Associate Employer of the AASB Superannuation Plan which provides accumulation benefits to members.

For certain employees, the AUASB has guaranteed minimum accumulated balances equivalent to benefits under a defined benefit plan. The Present Value of the Defined Benefit Obligation of these members as at 30 June 2006 amounted to $295,000 (2005: $228,000) compared to the fair value of attributable assets of $250,000 (2005: $190,000), giving a deficiency of $45,000 (2005: deficiency $38,000). A provision for this guaranteed deficiency has been recognised at 30 June 2006 (refer Notes 5A and 8A).

Refer to Note 8B for a reconciliation of the superannuation liability as at 30 June 2006.

1.6 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

The AUASB has no finance leases.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets.

1.7 Cash

Cash means notes and coins held and any deposits held at call with a bank or financial institution. Cash is recognised at its nominal amount.

Temporarily surplus funds are placed on deposit at call with the AUASB’s Business Investment Account. Interest is credited to revenue as it accrues.

1.8 Receivables

Receivables are recognised at nominal amounts due less any provision for bad and doubtful debts. Credit terms are 14 days (2004-05: 14 days).

1.9 Financial risk management

The AUASB’s activities expose it to normal commercial financial risk. As a result of the nature of the AUASB’s business, internal and Australian Government policies dealing with the management of financial risk, the AUASB’s exposure to market, credit, liquidity and cash flow and fair value interest rate risk is considered to be low.

1.10 Derecognition of financial assets and liabilities

As prescribed in the Finance Minister’s Orders, the AUASB has applied the option available under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than 1 July 2004. The financial effect of this adoption is nil.

Financial assets are derecognised when the contractual rights to the cash flow from the financial assets expire or the asset is transferred to another entity. In the case of a transfer to another entity, it is necessary that the risks and rewards of ownership are also transferred.

Financial liabilities are derecognised when the obligation under the contract is discharged or cancelled or expires.

1.11 Impairment of financial assets

As prescribed in the Finance Minister’s Orders, the AUASB has applied the option available under AASB 1 of adopting AASB 132 and 139 from 1 July 2005 rather than 1 July 2004. The financial effect of this adoption is nil.

Financial assets are assessed for impairment at each balance date.

Financial assets held at cost

If there is objective evidence that an impairment loss has been incurred on the funds held in the AUASB business investment account with the National Australia Bank, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets. Since the account is a current account and the interest is a commercial rate calculated daily, the asset has not been discounted.

If there is objective evidence that an impairment loss has been incurred for receivables, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

Comparative year

For the comparative year receivables were recognised and carried at original invoice amount less a provision for doubtful debts based on an estimate made when collection of the full amount was no longer probable. There were no bad debts.

1.12 Payables

Payables are recognised at their nominal amounts, being the amounts at which the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Settlement is usually made net 30 days.

1.13 Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the Balance Sheet but are discussed in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or represent an existing liability or asset in respect of which settlement is not probable or the amount cannot be reliably measured. Remote contingencies are part of this disclosure. Where settlement becomes probable, a liability or asset is recognised. A liability or asset is recognised when its existence is confirmed by a future event, settlement becomes probable (virtually certain for assets) or reliable measurement becomes possible.

1.14 Acquisition of assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and revenues at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor authority’s accounts immediately prior to the restructuring.

1.15 Plant and equipment (P&E)

Asset recognition threshold

Purchases of plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $500, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Revaluations

Plant and equipment are carried at fair value, being revalued with sufficient frequency such that the carrying amount of each asset is not materially different, at reporting date, from its fair value. Valuations undertaken in each year are as at 30 June.

Fair values for each class of asset are determined as follows:

Furniture and equipment (other than computer equipment)	Market selling price
Computers and related equipment	Depreciated replacement cost

Following initial recognition at cost, valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through profit and loss. Revaluation decrements for a class of assets are recognised directly through profit and loss except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AUASB using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

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

	2006	2005
Plant and equipment	3 to 10 years	3 to 10 years

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

1.16 Impairment of non-financial assets

All assets were assessed for impairment at 30 June 2006. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AUASB were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.17 Intangibles

The AUASB’s intangible assets comprise purchased software and licences for internal use. These assets are carried at cost.

Software and licences are amortised on a straight line basis over their anticipated useful life. The useful life of AUASB’s software and licences is 3–5 years (2004-05: 3-5 years).

1.18 Taxation

The AUASB is exempt from all forms of taxation except fringe benefits tax and the goods and services tax (GST).

Revenues, expenses and assets are recognised net of GST:

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

1.19 Insurance

The AUASB has taken insurance cover considered appropriate through the Government’s insurable risk managed fund, called ‘Comcover’. Workers compensation is insured through Comcare Australia.

1.20 Foreign currency

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency transactions relate primarily to currency obtained for overseas travel. The amounts and any associated gains or losses are not material.

1.21 Comparative figures

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

Note 2: The impact of the transition to AEIFRS from previous AGAAP

Reconciliation of total equity as presented under previous AGAAP to that under AEIFRS

	2005 $
Total equity under previous AGAAP	380,147
Adjustments to retained earnings:
Adjustments to net surplus (1)	(17,398)
Total equity translated to AEIFRS	362,749

Note that the AUASB commenced operations on 1 July 2004 and hence there are no financial statements for the year ended 30 June 2004.

Reconciliation of net surplus as presented under previous AGAAP to AEIFRS

Prior year net surplus as previously reported	380,147
Employee entitlements – non-current annual leave	535
Employee entitlements - superannuation	18,042
Prior year net surplus translated to AEIFRS	398,724

(1) AASB 119 Employee Benefits prescribes the disclosures required for a Defined

Benefit Superannuation Plan. For certain employees the AUASB participation in the AASB superannuation plan provides guaranteed minimum accumulated balances equivalent to benefits under a defined benefit plan.

Actuarial losses of $35,975 have been recognised directly in equity as required by the FMO’s. Other costs calculated under AASB 119 are recognised as employee expenses in the Income Statement.

The cash flow statement presented under previous AGAAP is equivalent to that prepared under AEIFRS.

Note 3: Events after the balance sheet date

Subsequent to balance date the AUASB contracted for the construction of the fitout of the new offices. This will be funded through a lease incentive. The AUASB’s costs in relation to the fitout amount to $336,077 (GST exclusive).

Note 4: Income

	2006	2005
	$	$
4A. Revenues from Commonwealth government
Appropriation funds from FRC *	900,000	544,431
Total revenues from Commonwealth government	900,000	544,431
* During the AUASB establishment period AUASB funding from the FRC was via the AASB.
4B. Interest
Deposits	32,187	4,854
4C. Contributions
Contributions:
— CPA Australia	412,500	425,000
— The Institute of Chartered Accountants in Australia	412,500	425,000
— National Institute of Accountants	175,000	150,000
Total contributions revenue	1,000,000	1,000,000
4D. Other Revenue
Settlement for Employee Entitlements transferred from Australian
Accounting Research Foundation to AUASB	-	34,804
Total other revenue	-	34,804

Note 5: Operating expenses

	2006	2005
	$	$
5A. Employee expenses
Wages and salaries	947,513	538,542
Superannuation *	107,451	45,050
Leave and other benefits	43,886	35,107
Total employee expenses	1,098,850	618,699
* Includes an increase in the provision for superannuation
of $7,667 ($37,333 in 2005). [Note 1.5]
5B. Suppliers expenses
Goods from external entities	67,092	145,866
Services from external entities	357,384	216,183
Goods from related entities	578	-
Services from related entities	335,065	195,152
Comcare premium (workers’ compensation)	6,632	1,696
Total Supplier Expenses	766,751	558,897
5C. Depreciation and amortisation
Depreciation
Plant and equipment	11,498	7,741
Amortisation
Intangibles – Computer Software (purchased)	1,344	28
Total depreciation and amortisation	12,842	7,769

Note 6: Financial assets

	2006	2005
	$	$
6A. Cash
Cash at bank and on hand	643,009	399,613
	643,009	399,613
Balance of cash as at 30 June shown in the Cash Flow Statement	643,009	399,613
6B. Receivables
Contributions	-	132,910
GST receivable	11,102	-
	11,102	132,910
All receivables are current (not overdue).

Note 7: Non-financial assets

	2006	2005
	$	$
7A. Plant and equipment
Plant and equipment at fair value	54,375	42,461
Accumulated depreciation	(17,573)	(7,741)
Total plant and equipment (non-current)	36,802	34,720
7B. Intangibles (purchased software)
Intangibles at fair value	13,801	693
Accumulated amortisation	(1,372)	(28)
Total intangibles (non-current)	12,429	665

7C. Analysis of plant and equipment and intangibles

Reconciliation of the opening and closing balances of plant and equipment and intangibles

	Plant and equipment $	Intangibles (purchased software) $
As at 1 July 2005
Gross book value	42,461	693
Accumulated depreciation/amortisation	(7,741)	(28)
Opening net book value	34,720	665
Additions by purchase	13,580	13,108
Depreciation/amortisation expense	(11,498)	(1,344)
As at 30 June 2006
Gross book value	54,375	13,801
Accumulated depreciation/amortisation	(17,573)	(1,372)
Closing net book value	36,802	12,429

At 30 June 2006 the AUASB had no assets under construction or finance leases.

Note 8: Provisions

	2006	2005
	$	$
8A. Employee Provisions
Salaries and wages	7,897	2,911
Annual Leave	71,889	32,115
Long Service Leave	28,438	24,326
Superannuation* [Notes 1.5, 8B]	45,000	37,333
Aggregate employee entitlement liability	153,224	96,685
Employee provisions are categorised as follows:
Current	153,224	96,685
Non-current	-	-
	153,224	96,685

* In the transition to AEIFRS adjustments there are rounding differences in the 2005 comparative figures. The actuarial reports are provided in $000’s from 2006, which includes further rounding differences in the Provision for Superannuation. In future all superannuation provision calculations will be rounded to $000’s and the rounding differences will be absorbed.

8B. Superannuation provision
Financial year ending	30 June 2006 $	30 June 2005 $
Net superannuation liability (asset) at start of year	38,000	-
Add:
Actuarial expense	40,000	26,000
Amount recognised in accumulated surplus	(9,000)	35,000
Less:
Employer contributions	(24,000)	(23,000)
Net superannuation liability (asset) at end of year	45,000	38,000

Note 9: Payables

	2006	2005
	$	$
Trade creditors	114,060	79,930
Other payables (PAYG payable to ATO)	27,094	31,688
	141,154	111,618

All payables are current (settlement usually occurs within 30 days).

Note 10: Cash flow reconciliation

Reconciliation of net surplus to net cash from operating activities

	2006	2005
	$	$
Net surplus	53,744	398,724
Depreciation and amortisation	12,842	7,769
Contributions in kind	-	(19,431)
Superannuation expense/(surplus) as per actuarial report	16,667	1,358
Changes in assets and liabilities
Decrease/(increase) in receivables	121,808	(132,910)
Decrease/(increase) in prepaid expenses	(13,385)	(3,144)
Increase/(decrease) in employee provisions (non super’n)	48,338	59,352
Increase/(decrease) in liability to suppliers (operating)	33,541	74,881
Increase/(decrease) in other payables	(4,594)	31,688
Net cash from operating activities	268,961	418,287

Note 11: Directors’ remuneration

	2006	2005
The number of directors of the AUASB included in these figures are shown below in the relevant remuneration bands.
$ … Nil — $14,999#	21	22
$75,000 — $90,000	1	1
Total number of directors of the AUASB	22	23
	$	$
Aggregate amount of superannuation payments in connection with the
retirement of directors	9,835	7,412
Other remuneration received or due and receivable by directors of
the AASB	109,276	84,402
Total remuneration received or due and receivable by directors of the AUASB*	119,111	91,814

* Directors’ remuneration relates to the remuneration of the FRC Chairman and the sitting fees paid to members of the FRC. The members of the FRC are the Directors of both the AUASB and the AASB, however their remuneration, and all FRC related expenses are met by the Department of Treasury.

# Twelve (12) (2005: 13) of the members in the Nil — $14,999 range received no remuneration.

Note 12: Related party disclosures

The members of the FRC are the Directors of the AUASB.

The Directors and Alternate Directors of the AUASB during the year were:

• Charles Macek — Chairman
• Elizabeth Alexander, AM — Deputy Chairman
• Bruce Brook (appointed 6 March 2006)
• Don Challen
• John Gethin-Jones (appointed 11 June 2006)
• Richard Humphry, AO
• Warwick Hunt
• David Jackson
• Graeme McGregor, AO
• Eric Mayne (appointed 6 March 2006)
• Jim Murphy
  • Mike Rawstron (Alternate to Mr Murphy to 6 March 2006)
• Tom Pockett (retired 6 March 2006)
• Phillip Prior
• Brian Scullin (retired 10 June 2006)
• John Stanhope (appointed 6 March 2006)
• Catherine Walter AM
• Jan West (appointed 7 March 2005)
  • Stephen Harrison (Alternate to Ms West to 31 December 2005)
• Lee White (appointed 6 March 2006)
• Klaus Zimmermann
  • Roger Cotton (Alternate to Mr Zimmermann to 6 March 2006)

Note 13: Executive remuneration

	2006	2005
Remuneration of senior executives:
$15,000 —$29,999	-	1
$70,000 — $84,999	1	-
$130,000 — $145,999	-	1
$220,000 — $234,999	1	-
The aggregate amount of total remuneration of executives shown above	304,297	142,248

The senior executives’ remuneration includes executives concerned with or taking part in the management of the AUASB during 2005-06 except the FRC Chairman. Details in relation to the remuneration of the FRC Chairman and FRC members have been incorporated into Note 11: Directors Remuneration.

Note 14: Remuneration of part-time members of the AUASB

	2006	2005
	$	$
Sitting fees	87,811	32,776

Note 15: Remuneration of auditors

	2006	2005
	$	$
Remuneration to the Australian National Audit Office (ANAO) for auditing the financial statements for the reporting period	17,000	15,000

No other services were provided by the ANAO during the reporting period.

Note 16: Average Staffing Levels

	2006	2005
The average staffing levels for the AUASB during the year were
(equivalent full time staff)	8	7

Note 17: Financial instruments

17A Interest Rate Risk

	Notes	Floating interest rate		Non-interest bearing		Total		Weighted average effective interest rate
		2005-06 $	2004-05 $	2005-06 $	2004-05 $	2005-06 $	1004-05 $	2005-06 %	2004-05 %
Financial assets (recognised)
Cash on hand	6A	-	-	300	300	300	300	n/a	n/a
Cash at bank - Cheque Account	6A	111,405	292,387			111,405	292,387	3.31	3.45
Cash at bank - AASB Bus Invest A/c	6A	531,304	106,926			531,304	106,926	5.15	4.68
Receivables	6B	-	-	11,102	132,910	11,102	132,910	n/a	n/a
Total financial assets (recognised)		642,709	399,313	11,402	133,210	654,111	532,523
Total assets						719,871	571,052
Financial liabilities (recognised)
Supplier payables	9	-	-	114,060	79,930	114,060	79,930	n/a	n/a
Other payables	9	-		27,094	31,688	27,094	31,688	n/a	n/a
Total financial liabilities (recognised)		-	-	141,154	111,618	141,154	111,618
Total liabilities			-			294,378	208,303

17B

The fair value of financial assets and liabilities approximate their carrying amounts.

17C Credit risk exposures

The economic entity’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial assets is the carrying amount of those assets as indicated in the Balance Sheet.

The economic entity has no significant exposures to any concentrations of credit risk.