About this report - Department of Treasury and Finance



Quarterly Financial Report No. 3March 2020Presented byTim Pallas MPTreasurer of the State of VictoriaTable of contentsOverview PAGEREF Overview \h 1General government sector outcome PAGEREF GGSectorOutcome \h 1Financial performance PAGEREF FinancialPerformance \h 1Financial position PAGEREF FinancialPosition \h 2Cash flows PAGEREF CashFlows \h 2Government Infrastructure investment PAGEREF InfrastructureInvestment \h 2Financial statements for the general government sectorConsolidated comprehensive operating statement PAGEREF ConsolidatedOS \h 5Consolidated balance sheet PAGEREF ConsolidatedBS \h 6Consolidated cash flow PAGEREF ConsolidatedCF \h 7Consolidated statement of changes in equity PAGEREF ConsolidatedSOCIE \h 8 TOC \h \z \t " Heading 1 (#),1" 1.About this report PAGEREF _Toc39073466 \h 92.How funds are raised PAGEREF _Toc39073467 \h 103.How funds are spent PAGEREF _Toc39073468 \h 134.Major assets and investments PAGEREF _Toc39073469 \h 175.Other assets and liabilities PAGEREF _Toc39073470 \h 216.Public account PAGEREF _Toc39073471 \h 227.Other disclosures PAGEREF _Toc39073472 \h 258.Results quarter by quarter – Victorian general government sector PAGEREF _Toc39073473 \h 29Consolidated comprehensive operating statement for the past five quarters PAGEREF ConsolidatedOS_QBQ \h 29Consolidated balance sheet as at the end of the past five quarters PAGEREF ConsolidatedBS_QBQ \h 30Consolidated cash flow statement for the past five quarters PAGEREF ConsolidatedCF_QBQ \h 31Appendix A – Financial Management Act 1994 compliance index PAGEREF ComplianceIndex \h 32Style conventions PAGEREF StyleConventions \h 32OverviewThis financial report presents the Victorian general government sector financial statements for the ninemonth period ended 31 March 2020.The Victorian economy started the year on a solid footing, with strong employment growth, low unemployment and high levels of infrastructure investment. Victoria’s final state demand increased by 1.3 per cent over the year to December 2019, down from 2.1 per cent over the year to September. The economic outlook has changed significantly since the start of 2020. The coronavirus pandemic poses unprecedented challenges for the Victorian economy. While it is too early to see much of the impact in the current economic data, it is clear that coronavirus is restricting economic activity and resulting in reduced employment. Economic activity is expected to fall significantly in the June and September 2020 quarters, leading to lower real gross state product (GSP) growth, lower inflation and higher unemployment than forecast in the 2019-20 Budget Update. Major stimulatory interventions from the Victorian and Commonwealth Governments and the Reserve Bank of Australia will support the economy, though the negative economic effects of coronavirus will still be substantial. General government sector outcomeDue to the far-reaching implications and consequential economic impacts of coronavirus, the 2020-21 Victorian budget (which includes the revised expected fiscal outcome for 2019-20) has been deferred to later in 2020, in line with all other Australian governments. As a result, references in this financial report to the revised budget are to the 201920?Budget?Update. Caution therefore needs to be exercised in interpreting and drawing conclusions from variances against this budgeted outcome as the revised budget does not provision for the 2019-20 Victorian bushfires and the impact of the initial stages of coronavirus on revenue and expenses to the end of March 2020.Financial performanceThe net result from transactions for the nine months to 31?March?2020 was a deficit of $773?million. In addition to the reasons outlined above, the interim result cannot be extrapolated to estimate the full 201920 financial year result as it also includes the impact of seasonal factors affecting the timing of activities and transactions across the year (for example, the timing of revenue recognition and grant receipts from the Commonwealth).The operating result to the March quarter is an improvement on the negative operating result of $1.1 billion reported in the 2019-20 Mid-Year Financial Report. The major driver of this improvement is the issue of land tax assessments and the related recognition of this revenue which generally occurs in the March and June quarters, offset by the additional expenditure incurred by the State related to the coronavirus pandemic and the 2019-20 Victorian bushfires. Excepting for these extraordinary events, the State was on track to achieving a surplus for 2019-20 in accordance with the forecasts published in the 2019-20 Budget Update.Total revenue for the nine months ended 31?March?2020 was $52.7 billion. This is 74.3?per cent of the full year revised budget estimate and an increase of $182 million compared with the same period last year.Taxation revenue was $19.0?billion, or 77.7?per?cent of the full year revised budget estimate. Taxation revenue was stronger than expected to 31 March 2020 due to the property market with land transfer duty revenue $267 million ahead of the pro rata full year revised budget estimate. Taxation revenue was also influenced by seasonal factors, such as the majority of land tax being recognised in the March quarter, the Fire Services Property Levy in the September quarter and the timing of land transfer duty collections. The full year 2019-20 result is likely to be significantly impacted by the negative economic effects of coronavirus. Grant revenue was $24.6?billion, or 72.6?per?cent of the full year revised budget estimate. This is below the pro rata revised budget, primarily due to the timing of other contributions and grants.Grant revenue was lower compared with the same period last year. This was driven by lower GST grants from the Commonwealth and the above-mentioned timing differences in the receipt of other contributions and grants.Revenue from the sale of goods and services was $5.9?billion, or 73.1?per?cent of the full year revised budget estimate. The other sources of general government revenue represent a relatively small component of total revenue. Expenditure to the end of March 2020 totalled $53.5?billion or 76.0?per?cent of the full year revised budget estimate. Excepting for the extraordinary events, the 2019-20 total expenditure was on track to achieve the Government’s strategy for more constrained expenditure growth with growth for the nine months to 31 March 2020 lower than that in the corresponding period of the previous year.Other operating expenses were lower than pro rata for the nine months to 31 March 2020, at 72.2 per cent. Employee expenses were slightly higher than pro rata for the same period, at 76.6 per cent. Grant expenses, which are not timed evenly throughout the year, were 82.9 per cent of the revised budget.The comprehensive result includes other economic flows that are not included in the net result from transactions. The comprehensive result was a deficit of $2.6?billion for the nine months to 31 March 2020. This was primarily driven by the net result from transactions as explained earlier, and a loss on investments of the general government sector in other sector entities, mainly relating to operating losses in the public financial corporations sector. Also contributing to the deficit was a remeasurement loss on the State’s defined benefit superannuation liability of $763?million resulting from lower investment market performance. Financial positionTotal assets increased by $6.3?billion in the nine months ended 31 March 2020. This mainly reflected the Government’s infrastructure program and an increase in the value of investments in other sector entities, primarily due to increased investment in VicTrack relating to additional capital investments such as level crossing removals. Total liabilities increased by $8.9?billion to $112.6?billion due to a $9.0?billion increase in borrowings over the period to fund infrastructure delivery and the additional expenditure related to the 2019-20 Victorian bushfires and the coronavirus response. There was also a $934?million increase in the State's defined benefit superannuation liability primarily due to a remeasurement loss resulting from lower investment market performance. These increases were partially offset by a decrease in payables, mainly driven by the Government’s decision, implemented in March, to pay all outstanding invoices at 21 March within five business days, as part of the Economic Survival debt increased by $9.5?billion to $38.9?billion as at March 2020. This was driven mainly by an increase in borrowings as outlined above. Net debt was also restated by $6.9?billion at 1 July 2019 as a result of adopting new accounting standards, as outlined in section 7.4 of the financial report. Cash flowsThe movements disclosed in the cash flow statement are consistent with the abovementioned drivers associated with the net result and the impact of the Government’s infrastructure ernment infrastructure investmentGovernment infrastructure investment, which includes net infrastructure investment and construction related cash outflows for Partnerships Victoria projects (net of asset sales), totalled $8.7?billion for the nine months ended March 2020 ($8.9?billion for the corresponding period in 2019). This investment will support growing community needs and ongoing productivity improvement.The Government’s infrastructure scorecard as at 31 March 2020Major projects in progress include:75 level crossing removals by 2025;Additional VLocity trains – standard gauge train component;Ballarat Health Services expansion and redevelopment;Building a world-class Geelong Performing Arts Centre;Casey Hospital expansion;Caulfield to Dandenong conventional signalling and power infrastructure upgrade;Child Link;Chisholm Road prison project;City Loop fire and safety upgrade (Stage 2) and intruder alarm;Courts case management system;Cranbourne line duplication;Cranbourne-Pakenham and Sunbury line upgrade;Drysdale Bypass;Echuca-Moama Bridge;Family violence information sharing system reform (Central Information Point);Frankston Hospital;Frankston line stabling;Goulburn Valley Health redevelopment;Goulburn?Murray Water Connections Project;High Capacity Metro Trains Project;Hurstbridge Line upgrade – Stage 2;Infringement Management and Enforcement Services (IMES) Reform Project information technology solution;M80 Ring Road upgrade;Melbourne Airport Rail;Melbourne Park redevelopment – Stage 3;Men’s prison system capacity;Metro Tunnel;Metropolitan Network Modernisation program;Monash Freeway Upgrade – Stage 2;Mordialloc Freeway;More E-Class trams and infrastructure;Murray Basin Rail Project;New Footscray Hospital;New schools construction;New trains for Sunbury;New youth justice facility;Non-urban train radio renewal;North East Link;Northern Hospital inpatient expansion – Stage 2;The Government’s infrastructure scorecard as at 31 March 2020 (continued)Princes Highway duplication project – Winchelsea to Colac;Public housing renewal program;Public Safety – Police Response (Intelligence capability);Public Safety – Police Response (Mobile technology solution);Regional Rail Revival;Royal Victorian Eye and Ear Hospital redevelopment;Safe Digital Clinical Systems – Parkville Precinct electronic medical records;Shepparton Corridor Upgrade – Stage 2;Suburban Rail Loop;Suburban Roads Upgrade;Ten new community hospitals;Tram Automatic Vehicle Monitoring system replacement;Tram procurement and supporting infrastructure;Victorian Heart Hospital;Waurn Ponds Track Duplication – Stage 2;West Gate Tunnel Project;Western Highway duplication – Ballarat to Stawell;Western Rail Plan;Western Roads Upgrade;Women’s prison system capacity;Wyndham Vale stabling yard; andYan Yean Road duplication.Consolidated comprehensive operating statementFor the period ended 31 March (a)($ million)201819201920actual31 MarNotesactual31 MarrevisedbudgetRevenue from transactions18 689Taxation revenue2.118 95124 382608Interest revenue459712427Dividends, income tax equivalent and rate equivalent revenue2.25758255 727Sales of goods and services2.35 9328 11824 966Grant revenue2.424 61233 8892 084Other revenue2.52 1543 02552 501Total revenue from transactions52 68370 951Expenses from transactions18 489Employee expenses19 98126 089517Net superannuation interest expense3.33054072 072Other superannuation3.32 2822 9652 202Depreciation4.22 7843 7171 646Interest expense1 7392 5569 839Grant expense10 78713 01514 719Other operating expenses15 57721 58449 484Total expenses from transactions3.453 45670 3333 017Net result from transactions – net operating balance(773)618Other economic flows included in net result(65)Net gain/(loss) on disposal of nonfinancial assets(34)25(127)Net gain/(loss) on financial assets or liabilities at fair value21918(472)Other gains/(losses) from other economic flows7.1(587)(382)(662)Total other economic flows included in net result(403)(339)2 355Net result(1 176)279Other economic flows – other comprehensive incomeItems that will not be reclassified to net result164Changes in nonfinancial assets revaluation surplus3683 114(2 179)Remeasurement of superannuation defined benefits plans3.3(763)63270Other movements in equity(107)..Items that may be reclassified subsequently to net result(63)Net gain/(loss) on financial assets at fair value(79)2(1 240)Net gain/(loss) on equity investments in other sector entities at proportional share of the carrying amount of net assets(843)383(3 048)Total other economic flows – other comprehensive income(1 424)3 563(693)Comprehensive result – total change in net worth(2 600)3 842KEY FISCAL AGGREGRATES3 017Net operating balance(773)6183 965Less: Net acquisition of nonfinancial assets from transactions (b)3.63 6477 544(948)Net lending/(borrowing) (b)(4 420)(6 926)The accompanying notes form part of these financial statements.Notes:(a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)The 2019-20 revised budget figures have been restated to reflect more current information.Consolidated balance sheetAs at 31 March (a)($ million)201819201920actual31 MarNotesopening1 Julactual31 MarrevisedbudgetAssetsFinancial assets5 722Cash and deposits7.29 7759 2366 2668 441Advances paid8 3407 4086 4788 376Receivables5.16 6348 4696 8435 059Investments, loans and placements2 5392 7762 84645Investments accounted for using the equity method454545102 979Investments in other sector entities101 743103 629106 310130 621Total financial assets129 077131 563128 787Nonfinancial assets177Inventories165198172345Nonfinancial assets held for sale223200229147 582Land, buildings, infrastructure, plant and equipment4.1157 814161 297168 2022 152Other nonfinancial assets4.72 1262 4872 048150 256Total nonfinancial assets160 328164 182170 652280 877Total assets4.8289 405295 745299 439Liabilities5 140Deposits held and advances received5 1464 4643 20514 500Payables5.215 94815 50816 01439 013Borrowings44 83453 82952 7327 056Employee benefits3.28 0208 1838 33327 699Superannuation28 63229 56528 4371 070Other provisions1 0571 0281 02494 477Total liabilities103 636112 577109 746186 400Net assets185 768183 168189 69355 997Accumulated surplus/(deficit)55 56477 16179 584130 403Reserves130 204106 007110 109186 400Net worth185 768183 168189 693FISCAL AGGREGATES36 144Net financial worth25 44118 98619 04166 835Net financial liabilities76 30384 64387 26824 932Net debt29 32538 87340 348The accompanying notes form part of these financial statements.Note:(a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Consolidated cash flow statement For the period ended 31 March (a)($ million)201819201920actual31 MarNotesactual31 MarrevisedbudgetCash flows from operating activitiesReceipts16 683Taxes received17 56324 18324 967Grants24 64233 9046 406Sales of goods and services (b)6 6228 881606Interest received472704477Dividends, income tax equivalent and rate equivalent receipts6158204 010Other receipts1 4282 18353 149Total receipts51 34370 675Payments(18 573)Payments for employees(19 941)(25 782)(2 273)Superannuation(2 416)(3 504)(1 537)Interest paid(1 538)(2 273)(9 896)Grants and subsidies(11 193)(13 007)(15 073)Goods and services (b)(16 572)(21 945)(587)Other payments(724)(805)(47 939)Total payments(52 383)(67 317)5 210Net cash flows from operating activities7.3(1 041)3 358Cash flows from investing activitiesCash flows from investments in nonfinancial assets(6 876)Purchases of nonfinancial assets3.5(6 715)(13 290)137Sales of nonfinancial assets108349(6 739)Net cash flows from investments in nonfinancial assets(6 607)(12 941)1 184Net cash flows from investments in financial assets for policy purposes6183 351(5 555)Subtotal(5 989)(9 589)(1 194)Net cash flows from investments in financial assets for liquidity management purposes(293)(278)(6 749)Net cash flows from investing activities(6 282)(9 868)Cash flows from financing activities(1 341)Advances received (net)(634)(1 941)2 318Net borrowings7 4664 94227Deposits received (net)(48)..1 004Net cash flows from financing activities6 7843 001(535)Net increase/(decrease) in cash and cash equivalents(539)(3 509)6 257Cash and cash equivalents at beginning of reporting period9 7759 7755 722Cash and cash equivalents at end of the reporting period7.29 2366 266FISCAL AGGREGATES5 210Net cash flows from operating activities(1 041)3 358(6 739)Net cash flows from investments in nonfinancial assets(6 607)(12 941)(1 529)Cash surplus/(deficit)(7 648)(9 583)The accompanying notes form part of these financial statements.Notes:(a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)These items are inclusive of goods and services tax.Consolidated statement of changes in equity For the period ended 31 March($ million)Accumulated surplus/(deficit)Nonfinancial assets revaluation surplusInvestment in other sector entities revaluation surplusOther reservesTotal201920Balance at 1 July 2019 before new accounting standards52 47365 45463 6971 020182 644Impact of new accounting standards3 091115(82)..3 125Restated balance at 1 July 2019 (a)55 56465 56963 6151 020185 768Net result for the period(1 176)......(1 176)Other comprehensive income for the year(902)368(843)(47)(1 424)Transfer to/(from) accumulated surplus23 675(23 675)......Total equity as at 31 March 202077 16142 26262 772972183 168Revised budget equity as at 30 June 202079 58445 00864 0811 021189 693201819Balance at 1 July 2018 before new accounting standards (b)52 62664 08466 3511 055184 116Impact of new accounting standards2 977......2 977Restated balance at 1 July 2018 (c)55 60364 08466 3511 055187 093Net result for the period (c)2 355......2 355Other comprehensive income for the year(1 961)164(1 240)(11)(3 048)Transfer to/(from) accumulated surplus..........Total equity as at 31 March 2019 (b)(c)55 99764 24765 1111 045186 400The accompanying notes form part of these financial statements.Notes:(a)The 1 July 2019 balance has been restated resulting from the application of the of AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of NotforProfit Entities, AASB 16 Leases and AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b) The 1 July 2018 balance has been restated resulting from the application of AASB 9 Financial Instruments.(c)The 1 July 2018 balance and the March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.About this reportBasis of preparationThis March Quarterly Financial Report presents the unaudited financial report for the general government sector for the nine months ended 31?March 2020.Except as indicated below, the detailed accounting policies applied in preparing the quarterly financial report are consistent with those applied for the financial statements published in the 201819?Financial Report for the State of Victoria. This quarterly financial report does not include all the notes normally included with the annual financial report and should be read in conjunction with the 2018-19 Financial Report.Several new accounting standards issued by the Australian Accounting Standards Board (AASB) have been applied for the first time in this financial report. These are:AASB 15 Revenue from Contracts with Customers;AASB 1058 Income of Not-for-Profit Entities;AASB 16 Leases; andAASB 1059 Service Concession Arrangements: Grantors. The transitional impacts of adopting these standards have been reflected in the opening balance of accumulated surplus / (deficit), as presented in the statement of changes in equity on page 8.Note 7.4 further outlines the actual impacts of the new accounting standards.Full presentation and disclosure of transition to the new accounting standards will be reflected in the 2019-20 Financial Report for the State of Victoria.Statement of complianceThese financial statements have been prepared in accordance with section?26 of the Financial Management Act 1994, having regard to the recognition and measurement principles of the applicable Australian Accounting Standards (AAS) and Interpretations issued by the AASB. The financial statements are also presented in a manner consistent with the requirements of AASB?1049 Whole of Government and General Government Sector Financial Reporting.Where applicable, those paragraphs of AAS applicable to not-for-profit entities have been applied.Basis of accounting and measurementThe accrual basis of accounting has been applied where assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.Reporting entityThe general government sector includes all government departments, offices and other bodies engaged in providing services free of charge or at prices significantly below their cost of production. The primary function of entities in the general government sector is to provide public services (outputs), which are mainly nonmarket in nature, for the collective consumption of the community, and involve the transfer or redistribution of revenue, which is financed mainly through taxes and other compulsory levies.The general government sector is not a separate entity but represents a sector within the State of Victoria reporting entity. Unless otherwise noted, accounting policies applied by the State of Victoria apply equally to the general government sector.Basis of consolidationThe March Quarterly Financial Report includes all reporting entities in the general government sector that are controlled by the State. Information on entities consolidated for the general government sector is included in Note 7.5. In the process of reporting the general government sector as a single economic entity, all material transactions and balances in the sector are eliminated.How funds are raisedIntroductionThis section presents the sources and amounts of revenue raised by the general government sector.Revenue from transactions is recognised in accordance with AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-Profit Entities.Taxation revenue($ million)201819201920actual31 Maractual31 Marrevisedbudget4 702Taxes on employers’ payroll and labour force (a)4 7776 590Taxes on immovable property3 369Land tax3 0403 545645Fire Services Property Levy707709111Congestion levy110101173Metropolitan improvement levy1881834 298Total taxes on property4 0454 538Gambling taxes401Public lotteries406502850Electronic gaming machines8201 115160Casino15823371Racing and other sports betting1241569Other811Financial and capital transactions4 538Land transfer duty4 7856 025..Other property duties....15Metropolitan planning levy2420147Financial accommodation levy114163227Growth areas infrastructure contribution17429391Levies on statutory corporations1151571 036Taxes on insurance1 1311 4677 544Total taxes on the provision of goods and services7 86110 143Motor vehicle taxes1 225Vehicle registration fees1 3211 771685Duty on vehicle registrations and transfers6981 00823Liquor licence fees (a)..25212Other (b)2483072 144Total taxes on the use of goods and performance of activities (b)2 2683 11118 689Total taxation revenue (b)18 95124 382Notes: (a)As at 31 March 2020, as part of the Economic Survival Package, the State had waived $215 million of payroll tax for the 2019-20 financial year to small and mediumsized businesses and waived $22 million of liquor licencing fees for affected venues and small businesses.(b)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Dividends, income tax equivalent and rate equivalent revenue($ million)201819201920actual31 Maractual31 Marrevisedbudget12Dividends from PFC sector9111158Dividends from PNFC sector29434043Dividends from nonpublic sector60111213Dividends36256225Income tax equivalent revenue from PFC sector46184Income tax equivalent revenue from PNFC sector205250209Income tax equivalent revenue2092575Local government rate equivalent revenue46427Total dividends, income tax equivalent and rate equivalent revenue575825Sales of goods and services($ million)201819201920actual31 Maractual31 Marrevisedbudget174Motor vehicle regulatory fees176240426Other regulatory fees38859360Sale of goods66893 315Provision of services (a)3 4294 71558Rental74861Refunds and reimbursements12111 692Intersector capital asset charge1 7882 3845 727Total sales of goods and services (a)5 9328 118Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Grant revenue($ million)201819201920actual31 Maractual31 Marrevisedbudget12 762General purpose grants12 58917 0283 661Specific purpose grants for onpassing3 8623 9277 994Other specific purpose grants7 97411 36324 417Total24 42632 318549Other contributions and grants1861 57024 966Total grant revenue24 61233 889Other revenue($ million)201819201920actual31 Maractual31 Marrevisedbudget31Fair value of assets received free of charge or for nominal consideration4963553Fines56782278Royalties71121107Donations and gifts (a)13321022Other nonproperty rental1928449Other revenue – Education456640155Other revenue – Health (a)162220190Revenue related to economic service concession arrangements (b)230337500Other miscellaneous revenue4675842 084Total other revenue (b)2 1543 025Notes: (a) The March 2019 comparative figures have been reclassified to reflect more current information.(b) The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. This revenue relates to economic service concession arrangements and reflects the progressive unwinding of the grant of right to operate liability over the remaining period of the arrangement. Refer to Note 7.4 for further details.How funds are spentIntroductionThis section accounts for the major components of expenditure incurred by the general government sector towards the delivery of services and on capital or infrastructure projects during the period, as well as any related employee benefit obligations outstanding as at 31?March?2020.Employee expenses and provision for outstanding employee benefitsEmployee expenses (operating statement)Employee expenses in the operating statement are a major component of operating costs and include all costs related to employment, including wages and salaries, fringe benefits tax, leave entitlements and redundancy payments. The majority of employee expenses in the operating statement are wages and salaries. Increases in employee expenses are mainly attributable to increased service delivery in the health, education, and community safety sectors as well as salary growth in line with enterprise bargaining agreements.Employee benefits (balance sheet)As part of operations, the State provides for benefits accruing to employees but payable in future periods in respect of wages and salaries, annual leave and long service leave, and related on-costs for services rendered to the reporting date. In measuring employee benefits, consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted to reflect the estimated timing and amount of benefit payments. The table below shows the key components of this provision as at 31 March 2020.Employee benefits (balance sheet)($ million)201819201920actual31 Maropening1 Julactual31 MarrevisedbudgetCurrent343Accrued salaries and wages65650667184Other employee benefits8465811 550Annual leave1 7581 7651 8014 179Long service leave4 4744 7274 6026 156Total current employee benefits and oncosts6 9717 0637 155Noncurrent899Long service leave1 0481 1201 178899Total noncurrent employee benefits and oncosts1 0481 1201 1787 056Total employee benefits and oncosts8 0208 1838 333Superannuation (operating statement)($ million)201819201920actual31 Maractual31 MarrevisedbudgetDefined benefit plans517Net superannuation interest expense305407751Current service cost8291 108Remeasurements:(780)Expected return on superannuation assets excluding interest income(985)(1 316)1 138Other actuarial (gain)/loss on superannuation assets2 518(15)1 821Actuarial and other adjustments to unfunded superannuation liability(770)1 2673 446Total expense recognised in respect of defined benefit plans1 8971 452Defined contribution plans1 257Employer contributions to defined contribution plans1 3861 78465Other (including pensions)67731 321Total expense recognised in respect of defined contribution plans1 4531 8584 767Total superannuation (gain)/expense recognised in operating statement3 3503 310Represented by:517Net superannuation interest expense3054072 072Other superannuation2 2822 9652 589Superannuation expense from transactions2 5873 3732 179Remeasurement recognised in other comprehensive income763(63)4 767Total superannuation costs recognised in operating statement3 3503 310Total expenses by classification of the functions of government (COFOG) and by portfolio department (a)(a)Total expenses by classification of the functions of government ($ million)201819201920actual31 Maractual31 Marrevisedbudget2 970General public services3 0943 6216 060Public order and safety6 6748 6401 189Economic affairs1 3082 237585Environmental protection6558661 447Housing and community amenities1 5322 21414 390Health15 82021 007649Recreation, culture and religion60889212 478Education13 20216 9063 994Social protection4 1555 6066 314Transport6 7839 312(592)Not allocated by purpose(375)(968)49 484Total Expenses by COFOG53 45670 333Note:(a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Total expenses by portfolio department (a)(b)($ million) 201819201920actual31 Maractual31 MarrevisedbudgetExpenses from transactions14 079Education and Training15 19719 4772 814Environment, Land, Water and Planning2 7123 68719 500Health and Human Services21 06428 151591Jobs, Precincts and Regions1 5872 5745 656Justice and Community Safety6 0238 225544Premier and Cabinet5247127 413Transport6 9289 0976 251Treasury and Finance6 8287 572155Parliament164248468Courts5127181 843Regulatory bodies and other part funded agencies (c)2 0622 61459 314Total expenses by department63 60283 074(9 830)Less eliminations and adjustments (d)(10 146)(12 742)49 484Total expenses53 45670 333Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019. Refer to Note 9.8 in the 2018-19 Financial Report for the State of Victoria for further details.(b)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(c)Other general government sector agencies, which receive less than 50?per?cent of their revenue from appropriations and therefore are not allocated to departments.(d)Mainly comprising payroll tax, capital asset charge and interdepartmental transfers. The budget also includes departmental underspend estimates.Purchases of non-financial assets by portfolio department (a)(b)($ million)201819201920actual31 Maractual31 Marrevisedbudget1 232Education and Training8591 88268Environment, Land, Water and Planning63129764Health and Human Services8161 18513Jobs, Precincts and Regions116161493Justice and Community Safety3171 46417Premier and Cabinet14263 982Transport4 1436 37422Treasury and Finance483314Parliament111031Courts53116160Regulatory bodies and other part funded agencies (c)1563426 798Total purchases of nonfinancial assets by department6 59611 72178Eliminations and adjustments (d)1191 5696 876Total purchases of nonfinancial assets6 71513 290Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019. Refer to Note 9.8 in the 2018-19 Financial Report for the State of Victoria for further details.(b)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(c)Other general government sector agencies, which receive less than 50?per?cent of their revenue from appropriations and therefore are not allocated to departments.(d)The budget includes contingencies not allocated to departments and estimated departmental acquisition of non-financial assets from transactions (a)($ million)201819201920actual31 Maractual31 Marrevisedbudget6 877Purchases of nonfinancial assets (including change in inventories)6 73413 293(137)Less: Sales of nonfinancial assets(108)(349)(2 202)Less: Depreciation and amortisation(2 784)(3 717)(573)Plus/(less): Other movements in nonfinancial assets (b)(194)(1 684)3 965Total net acquisition of nonfinancial assets from transactions (b)3 6477 544Notes: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)The 2019-20 revised budget figures have been restated to reflect more current information.Major assets and investmentsIntroductionThis section outlines those assets the general government sector controls, reflecting investing activities in the current period and prior years.Total land, buildings, infrastructure, plant and equipment (a)(b)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget31 756Buildings43 32143 85045 8894 805Leased buildings......59 365Land and national parks58 29458 23959 5374 154Infrastructure systems5 1576 3136 5092 920Plant, equipment and vehicles3 3783 4653 301219Leased plant, equipment and vehicles......30 666Roads and road infrastructure33 10534 87238 0698 042Earthworks8 8998 8999 2385 655Cultural assets5 6615 6605 660147 582Total land, buildings, infrastructure, plant and equipment157 814161 297168 202Notes: (a)AASB 16 Leases has been applied for the first time from 1 July 2019. (b)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.The following two tables are subsets of total land, buildings, infrastructure, plant and equipment by right of use (leased) assets and service concession assets.Total right of use (leased) assets: land, buildings, infrastructure, plant and equipment (a)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget..Buildings8 1818 1508 802..Infrastructure systems6613..Plant, equipment and vehicles563509529..Total right of use assets: land, buildings, infrastructure, plant and equipment8 7508 6659 344Note: (a)AASB 16 Leases has been applied for the first time from 1 July 2019. Total service concession assets: land, buildings, infrastructure, plant and equipment($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget1 701Buildings1 8291 8551 780916Land and national parks9219219722 854Infrastructure systems3 2364 4084 459179Plant, equipment and vehicles170178888 528Roads and road infrastructure9 26310 36311 80514 177Total service concession assets: land, buildings, infrastructure, plant and equipment15 42017 72619 104Depreciation (a)($ million)201819201920actual31 Maractual31 Marrevisedbudget873Buildings1 5241 929123Leased buildings....43Infrastructure systems4554433Plant, equipment and vehicles45870022Leased plant, equipment and vehicles....595Roads and road infrastructure62585014Cultural assets1522100Intangible produced assets (b)1181632 202Total depreciation2 7843 717Notes: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b) Amortisation of intangible non-produced assets is included under other gains/(losses) from other economic flows.The following two tables are subsets of total depreciation expense.Depreciation of right of use (leased) assets (a)($ million)201819201920actual31 Maractual31 Marrevisedbudget..Buildings490597..Infrastructure systems25..Plant, equipment and vehicles46121..Total depreciation of right of use assets538723Note: (a)AASB 16 Leases has been applied for the first time from 1 July 2019. Depreciation of service concession assets ($ million)201819201920actual31 Maractual31 Marrevisedbudget31Buildings414715Plant, equipment and vehicles1629128Roads and road infrastructure1251831Intangible produced assets..1175Total depreciation of service concession assets182260Land and buildings (a)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget34 911Buildings45 09747 04250 273(3 155)Accumulated depreciation(1 776)(3 192)(4 384)31 756Buildings (net carrying amount)43 32143 85045 8895 561Leased buildings......(756)Leased buildings accumulated depreciation......4 805Leased buildings (net carrying amount)......58 132Land57 07457 02058 3271 233National parks and other ’land only’ holdings1 2191 2191 21059 365Land and national parks58 29458 23959 53795 926Total land and buildings101 614102 088105 426Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Plant, equipment, vehicles, and infrastructure systems (a)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget4 683Infrastructure systems5 7286 9297 134(529)Accumulated depreciation(572)(616)(626)4 154Infrastructure systems (net carrying amount)5 1576 3136 5097 245Plant, equipment and vehicles7 9328 4068 406(4 325)Accumulated depreciation(4 554)(4 941)(5 106)514Leased plant, equipment and vehicles......(295)Accumulated depreciation......3 139Plant, equipment and vehicles (net carrying amount)3 3783 4653 3017 292Total plant, equipment and vehicles, and infrastructure systems8 5349 7789 809Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Roads, road infrastructure and earthworks (a)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget51 420Roads and roads infrastructure56 56958 91963 068(20 755)Accumulated depreciation(23 463)(24 047)(24 999)30 666Roads and road infrastructure (net carrying amount)33 10534 87238 0698 042Earthworks8 8998 8999 23838 708Total roads, road infrastructure and earthworks42 00443 77147 307Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Cultural assets($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget5 842Cultural assets5 8505 8635 870(186)Accumulated depreciation(189)(202)(210)5 655Total cultural assets5 6615 6605 660Other non-financial assets (a)($ million)201819201920actual31 Maropening1 Julactual31 Marrevisedbudget2 039Intangible produced assets2 1972 2672 289(1 046)Accumulated depreciation(1 085)(1 166)(1 200)249Service concession assets – intangible produced251251251(1)Accumulated depreciation(1)(1)(2)119Intangible nonproduced assets109110111(44)Accumulated amortisation(40)(45)(45)1 316Total intangibles1 4301 4161 403184Investment properties2802812812Biological assets224649Other assets4147873602 152Total other nonfinancial assets2 1262 4872 048Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Total assets by classification of the functions of government (COFOG) (a)($ million)201819201920actual31 Maractual31 Marrevised budget2 252General public services4 2082 3999 860Public order and safety11 17313 7611 299Economic affairs1 1031 29611 932Environmental protection11 66011 7772 010Housing and community amenities1 9962 20216 265Health20 07420 0447 347Recreation, culture and religion7 5927 68028 064Education27 70528 5101 750Social protection1 9992 37869 683Transport76 95582 541130 414Not allocated by purpose (b)131 282126 848280 877Total assets by COFOG295 745299 439Notes: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)Represents financial assets which are not able to be allocated by purpose. This mainly includes balances relating to the general government sector’s investment in other sector entities.Other assets and liabilitiesIntroductionThis section sets out other assets and liabilities that arise from the general government sector’s operations.Receivables($ million)201819201920actual31 Maropening1 Julactual31 MarrevisedbudgetContractual931Sales of goods and services89591489717Accrued investment income271127893Other receivables8881 285943(106)Allowance for credit losses of contractual receivables(138)(144)(136)Statutory2Sales of goods and services5625 044Taxes receivable3 3634 7153 4072 852Fines and regulatory fees2 8813 2423 001316GST input tax credits recoverable419394421(1 573)Allowance for credit losses of statutory receivables(1 706)(1 954)(1 721)8 376Total receivables6 6348 4696 843Represented by:8 059Current receivables6 3128 2906 525317Noncurrent receivables322180318Payables (a)($ million)201819201920actual31 Maropening1 Julactual31 MarrevisedbudgetContractual1 403Accounts payable1 8401 2721 3762 417Accrued expenses2 9182 6572 9188 913Grant of right to operate liability9 4029 76310 1101 723Unearned income1 7291 6501 548Statutory43Accrued taxes payable591666114 500Total payables15 94815 50816 014Represented by:4 815Current payables5 6105 4585 1319 685Noncurrent payables10 33810 05010 883Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Public accountIntroductionThis section discloses information in respect of the Public Account, in accordance with the requirements of the Financial Management Act 1994.Consolidated fund receipts and payments (a)($ million)201819201920actual31 Maractual31 MarrevisedbudgetReceipts16 941Taxation17 80424 510566Fines and regulatory fees57298116 140Grants received15 26622 6945 205Sales of goods and services (b)5 6297 562341Interest received338484434Dividends, income tax equivalent and rate equivalent receipts5567093 242Other receipts (b)46776642 870Total operating activities40 63257 7064 812Total inflows from investing and financing7 1139 70547 681Total receipts47 74567 412Payments to departments10 867Education and Training11 47915 8122 195Environment, Land, Water and Planning2 1122 95313 604Health and Human Services14 63518 683250Jobs, Precincts and Regions1 6942 4115 888Justice and Community Services6 1329 061567Premier and Cabinet5036868 264Transport8 79412 8774 992Treasury and Finance4 40510 320166Parliament171240476Courts52477547 269Total payments50 44973 817412Net receipts/(payments)(2 703)(6 406)Notes:(a)On 29 November 2018, the Premier announced various machinery of government changes effective from 1 January 2019. Refer to Note 9.8 in the 2018-19 Financial Report for the State of Victoria for further details.(b)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Trust fund cash flow statement($ million) 201819201920actual31 Maractual31 MarrevisedbudgetCash flows from operating activitiesReceipts323Taxation37342865Regulatory fees and fines608613 814Grants received15 61018 341366Sale of goods and services467507139Interest received7715025Dividends received46902 637Net transfers from consolidated fund3 0744 288128Other receipts14213217 498Total receipts19 85024 021Payments(209)Payments for employees(234)(240)(17)Superannuation(20)(18)(5)Interest paid(39)(9)(15 546)Grants and subsidies(16 175)(19 702)(1 357)Goods and services(2 146)(2 681)(17 134)Total payments(18 613)(22 651)365Net cash flows from operating activities1 2361 371Cash flows from investing activities(38)Purchases of property, plant and equipment(282)(2 942)49Proceeds from sale of property, plant and equipment53581 320Net proceeds from customer loans8171 774(1 524)Other investing activities(1 734)(877)(193)Net cash flows from investing activities(1 145)(1 987)Cash flows from financing activities(556)Net proceeds (repayments) from borrowings(176)56(556)Net cash flows from financing activities(176)56(384)Net cash inflow/(outflow)(85)(560)Reconciliation of cash flows to balances held($ million)Balancesheld at30 Jun 2019MarmovementYTDBalancesheld at31 Mar 2020Cash and depositsCash and balances outside of the Public Account..2626Deposits held with the Public Account – specific trusts19(2)17Other balances held in the Public Account4 424(2 911)1 512Total cash and deposits4 443(2 887)1 556InvestmentsInvestments held with the Public Account – specific trusts1 0163721 388Total investments1 0163721 388Total fund balances5 459(2 515)2 944Less funds held outside the public accountCash..2626Total fund balances held outside the Public Account..2626Total fund balances held in the Public Account (a)5 459(2 541)2 918Note:(a)See Note 6.4 for details of securities and investments including amounts held in the Public Account on behalf of trust accounts.Details of securities held($ million) 201819201920actual31 Maropening1 Julactual31 Mar1 623Amounts invested on behalf of specific trust accounts1 0351 4052 883General account balances4 4241 5124 507Total Public Account5 4592 918Represented by:3 805Stock, securities, cash and investments4 5272 069Add cash advanced for:..Temporary Advance from the Treasury Corporation of Victoria to the Consolidated Fund pursuant to section 38 of the Financial Management Act 1994350..702Advances pursuant to sections 36 and 37 of the Financial Management Act 19945828494 507Total Public Account5 4592 918Other disclosuresIntroductionThis section includes several additional disclosures that assist the understanding of this financial report.Other gains/(losses) from other economic flows($ million)201819201920actual31 Maractual31 Marrevisedbudget(442)Net (increase)/decrease in allowances for credit losses(308)(192)(4)Amortisation of intangible nonproduced assets(4)(6)(14)Bad debts written off(5)(168)(12)Other gains/(losses)(271)(14)(472)Total other gains/(losses) from other economic flows(587)(382)Reconciliation of cash and cash equivalents($ million)201819actual31 Mar201920actual31 Mar1 416Cash3 7044 306Deposits at call5 5325 722Cash and cash equivalents9 236..Bank overdraft..5 722Balances as per cash flow statement9 236Reconciliation of net result to net cash flows from operating activities (a)($ million) 201819201920actualto Maractualto Mar2 355Net result(1 176)Noncash movements106Interest accretion167(190)Revenue related to economic service concession arrangements(230)2 206Depreciation and amortisation2 7883Revaluation of investments2244Assets (received)/provided free of charge8(25)Assets not previously/no longer recognised5429Revaluation of assets592Discount/premium on other financial assets/borrowings21Foreign currency dealings2(3)Discounting of assets and liabilities(1)2 173Noncash items total2 872(47)Movements included in investing and financing activities(220)Movements in assets and liabilities402Increase/(decrease) in allowances for credit losses2542 617Increase/(decrease) in payables(609)36Increase/(decrease) in employee benefits163315Increase/(decrease) in superannuation17045Increase/(decrease) in other provisions(13)(2 562)(Increase)/decrease in receivables(2 091)(124)(Increase)/decrease in other nonfinancial assets(392)729Changes in assets and liabilities total(2 517)5 210Net cash flows from operating activities(1 041)Note: (a)The March 2019 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Adoption of the new Accounting Standards This note explains the impact of the adoption of the following new accounting standards for the first time, from 1 July 2019:AASB 15 Revenue from Contracts with Customers;AASB 1058 Income of Not-for-Profit Entities; AASB 16 Leases; andAASB 1059 Service Concession Arrangements: Grantors. The scope, high level requirements and estimated impacts of these new standards were outlined in Note 1.7.2 of the Estimated Financial Statements for 2019-20, presented in Chapter 1 of 2019-20 Budget Paper 5, Statement of Finances.The transitional impacts of applying the new accounting standards on the March 2019 and 1?July?2019 balances are presented in the tables below. Transitional impacts of the new Accounting Standards ($ million)Before newaccounting standardsNet impact of new accounting standardsAfter newaccounting standardsGeneral government sector201819 actual 31?Mar201819 actual 31?Mar201819 actual 31?MarComprehensive operating statementRevenue from transactions52 36513652 501Expenses from transactions49 25622849 484Net result from transactions – net operating balance3 110(93)3 017Total other economic flows included in net result(662)..(662)Net result2 447(92)2 355($ million)Beforenew accounting standardsNet impact ofnew accounting standardsAfternew accounting standardsGeneral government sectorOpening 1?July 2018201819 actual31 MarOpening 1?July 2019Opening 1?July 2018201819 actual31 MarOpening 1?July 2019Opening 1?July 2018201819 actual31 MarOpening 1?July 2019Comprehensive balance sheetTotal assets264 294269 442273 4219 24211 43515 983273 536280 877289 405Financial liabilities40 20741 28443 0311 5412 8696 94841 74844 15349 980Other liabilities39 97144 97147 7474 7245 3535 90944 69550 32453 656Total liabilities80 17886 25490 7786 2658 22312 85886 44394 477103 636Net debt20 00321 83722 3771 7673 0956 94821 77024 93229 325Net worth184 116183 188182 6442 9773 2123 125187 093186 400185 768Accumulated surplus/(deficit)52 62652 81252 4732 9773 1853 09155 60355 99755 564Controlled entitiesNote 9.8 Controlled entities in the 2018-19 Financial Report for the State of Victoria lists significant controlled entities, which have been consolidated for the purposes of the financial report.The following are changes to entities from 1?July?2019 which have been consolidated for the purposes of the financial report: General governmentDepartment of Health and Human Services Bendigo Health (a)Great Ocean Road Health (b)Kyabram District Health Service (c)Mildura Base Public Hospital (d)NCN Health (e)Department of Premier and CabinetPortable Long Service Authority (f)Department of Transport (g)(h)Head, Transport for Victoria (i)Notes:(a)Effective from 22 October 2019, Bendigo Health Care Group changed its name to Bendigo Health. (b)Effective from 1 July 2019, Lorne Community Hospital and Otway Health were amalgamated into Great Ocean Road Health.(c)Effective from 22 October 2019, Kyabram and District Health Services changed its name to Kyabram District Health Service.(d)Effective from 17 December 2019, Mildura Base Public Hospital was established to manage the Mildura Hospital. (e)Effective from 1 July 2019, Numurkah District Health Service, Cobram District Health and Nathalia District Hospital were amalgamated into NCN Health.(f)The Portable Long Service Authority was established under the Long Service Benefits Portability Act 2018 and, by Order of the Governor in Council, commenced on 1?July?2019. (g)Effective from 1 July 2019, the Public Transport Development Authority and Roads Corporation (with the exception of registration and licensing and some heavy vehicle functions) were consolidated into the Department of Transport. (h)Effective 1 January 2020, the Linking Melbourne Authority was abolished.(i)Effective from 1 January 2020, Head, Transport for Victoria was reconstituted as a body corporate to administer Victoria’s train, tram, bus and road system. The Public Transport Development Authority was subsequently abolished with the creation of Head, Transport for Victoria.Glossary of technical termsThe 2018-19 Financial Report for the State of Victoria (Note 9.9) summarises the major technical terms used in this report.Results quarter by quarter – Victorian general government sectorIntroductionThis section includes the comprehensive operating statement, balance sheet and cash flow statement for the past five quarters in accordance with the requirements of the Financial Management Act 1994.Consolidated comprehensive operating statement for the past five quarters (a)($ million)201819201920MarJunSepDecMarRevenue from transactionsTaxation revenue7 7634 8965 8395 5567 555Interest revenue191209160160140Dividends, income tax equivalent and rate equivalent revenue976035743582Sales of goods and services1 8961 9701 9472 0511 934Grant revenue9 1658 3377 8227 9888 802Other revenue6091 259652793710Total revenue from transactions19 72117 27516 47716 98319 223Expenses from transactionsEmployee expenses6 1966 9166 5786 6636 741Net superannuation interest expense17017214163101Other superannuation690725752763767Depreciation743844886928970Interest expense546606564581593Grant expense3 8583 5163 2593 1874 341Other operating expenses4 8126 2645 1025 1385 337Total expenses from transactions17 01419 04217 28217 32318 851Net result from transactions – net operating balance2 707(1 767)(805)(340)373Other economic flows included in net resultNet gain/(loss) on disposal of nonfinancial assets(15)279(44)..Net gain/(loss) on financial assets or liabilities at fair value7291118200Share of net profit/(loss) from associates/joint venture entities1........Other gains/(losses) from other economic flows(166)(449)(171)(175)(240)Total other economic flows included in net result(109)(330)(161)(201)(40)Net result2 598(2 098)(967)(542)332Other economic flows – other comprehensive incomeItems that will not be reclassified to net resultChanges in nonfinancial assets revaluation surplus1144 11422922117Remeasurement of superannuation defined benefits plans(1 087)(1 192)(976)1 651(1 438)Other movements in equity751(57)(108)58Items that may be reclassified subsequently to net resultNet gain/(loss) on financial assets at fair value(15)(2)(17)(40)(22)Net gain/(loss) on equity investments in other sector entities at proportional share of the carrying amount of net assets..(1 414)..(843)..Total other economic flows – other comprehensive income(982)1 557(821)682(1 285)Comprehensive result – total change in net worth1 617(541)(1 787)140(953)KEY FISCAL AGGREGATESNet operating balance2 707(1 767)(805)(340)373Less: Net acquisition of nonfinancial assets from transactions (b)9572 7571 0681 5061 073Net lending/(borrowing) (b)1 750(4 524)(1 873)(1 846)(701)Notes: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)The March, June, September and December 2019 figures have been restated to reflect more current information.Consolidated balance sheet at the end of the past five quarters (a)($ million)201819201920MarJunSepDecMarAssetsFinancial assetsCash and deposits5 7229 7756 3437 3039 236Advances paid8 4418 3407 8847 6597 408Receivables8 3766 6286 3876 4998 469Investments, loans and placements5 0592 5393 0002 8852 776Investments accounted for using the equity method4545454545Investments in other sector entities102 979101 825102 655102 726103 629Total financial assets130 621129 153126 315127 117131 563Nonfinancial assetsInventories177165177183198Nonfinancial assets held for sale345223216204200Land, buildings, infrastructure, plant and equipment147 582154 358158 891160 333161 297Other nonfinancial assets2 1522 1903 0132 6792 487Total nonfinancial assets150 256156 937162 297163 399164 182Total assets280 877286 089288 612290 516295 745LiabilitiesDeposits held and advances received5 1405 1464 6884 7064 464Payables14 50015 92315 92415 30115 508Borrowings39 01341 43845 01449 08153 829Employee benefits7 0568 0208 0348 0568 183Superannuation27 69928 63229 88428 16229 565Other provisions1 0701 0721 0851 0891 028Total liabilities94 477100 230104 630106 395112 577Net assets186 400185 859183 981184 121183 168Accumulated surplus/(deficit)55 99755 57377 32178 20977 161Reserves130 403130 286106 660105 912106 007Net worth186 400185 859183 981184 121183 168FISCAL AGGREGATESNet financial worth36 14428 92221 68420 72218 986Net financial liabilities66 83572 90380 97182 00484 643Net debt24 93225 93032 47635 94038 873Note: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.Consolidated cash flow statement for the past five quarters (a)($ million)201819201920MarJunSepDecMarCash flows from operating activitiesReceiptsTaxes received5 0586 5505 8706 0365 657Grants9 1638 3867 8278 0008 814Sales of goods and services (b)2 3201 8742 3332 0162 273Interest received194203171162139Dividends, income tax equivalent and rate equivalent receipts975639843582Other receipts283945516246666Total receipts17 11518 52216 81516 89617 632PaymentsPayments for employees(6 369)(6 158)(6 592)(6 658)(6 691)Superannuation(848)(1 156)(616)(897)(902)Interest paid(512)(541)(488)(518)(532)Grants and subsidies(3 852)(3 330)(3 255)(3 593)(4 345)Goods and services (b)(4 382)(4 953)(6 100)(5 181)(5 291)Other payments(174)(203)(216)(188)(319)Total payments(16 137)(16 341)(17 267)(17 035)(18 082)Net cash flows from operating activities9772 181(452)(139)(450)Cash flows from investing activitiesCash flows from investments in nonfinancial assetsPurchases of nonfinancial assets(1 937)(2 980)(2 310)(2 269)(2 136)Sales of nonfinancial assets53106423828Net cash flows from investments in nonfinancial assets(1 884)(2 874)(2 268)(2 231)(2 109)Net cash flows from investments in financial assets for policy purposes298261398(23)243Subtotal(1 585)(2 613)(1 870)(2 254)(1 866)Net cash flows from investments in financial assets for liquidity management purposes(1 036)2 825(489)9898Net cash flows from investing activities(2 621)212(2 359)(2 156)(1 768)Cash flows from financing activitiesAdvances received (net)(251)(50)(365)(167)(102)Net borrowings2 9881 656(165)3 2374 393Deposits received (net)6256(93)184(140)Net cash flows from financing activities2 7981 661(622)3 2554 151Net increase/(decrease) in cash and cash equivalents1 1544 053(3 432)9601 933Cash and cash equivalents at beginning of the reporting period4 5675 7229 7756 3437 303Cash and cash equivalents at end of the reporting period5 7229 7756 3437 3039 236FISCAL AGGREGATESNet cash flows from operating activities9772 181(452)(139)(450)Net cash flows from investments in nonfinancial assets(1 884)(2 874)(2 268)(2 231)(2 109)Cash surplus/(deficit)(907)(693)(2 719)(2 370)(2 559)Notes: (a)The 2018-19 comparative figures have been restated to reflect the adoption of AASB 1059 Service Concession Arrangements: Grantors. Refer to Note 7.4 for further details.(b)These items are inclusive of goods and services tax.Appendix A – Financial Management Act 1994 compliance indexThe Financial Management Act 1994 (FMA) requires the Minister to prepare a March quarterly financial report and a quarterly financial report for tabling in Parliament. These reports have been prepared in accordance with applicable Australian Accounting Standards and the FMA.The FMA specifies that these reports must meet certain requirements. The following compliance index explains how these requirements are met, together with appropriate references in this document.Financial Management Act referenceRequirementComments/referenceSection 26(1)The Minister must prepare a quarterly financial report for each quarter of each financial year.The financial report for the March quarter 2020.Section 26(2)A quarterly financial report comprises:(a)a statement of financial performance of the Victorian general government sector for the quarter;Refer to comprehensive operating statement, page 29.(b)a statement of the financial position of the Victorian general government sector at the end of the quarter;Refer to balance sheet, page 30.(c)a statement of cash flows of the Victorian general government sector for the quarter; andRefer to cash flow statement, page 31.(d)a statement of the accounting policies on which the statements required by paragraphs (a), (b) and (c) are based.Refer to Note 1, page 9.Section 26(2A)A quarterly financial report must be prepared in the manner and form determined by the Minister, having regard to appropriate financial reporting frameworks.Manner is a financial report for the general government sector. Form is comprehensive operating statement, balance sheet, cash flow statement. Section 26(3)The quarterly financial report for the quarter ending on 31 March in a financial year must include, in addition to the statements referred to in subsection (2)(a) to (d) for that quarter, those statements for the period of nine?months ending on that 31?March.Refer to comprehensive operating statement, balance sheet, and cash flow statement, pages 5–7.Style conventionsFigures in the tables and in the text have been rounded. Discrepancies in tables between totals and sums of components reflect rounding. Percentage changes in all tables are based on the underlying unrounded amounts.The notation used in the tables is as follows:n.a.not available or not applicable1?billion1?000?million1 basis point0.01?per cent..zero, or rounded to zero(xxx.x)negative numbers ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download