Airservices Australia | Impact of the COVID-19 pandemic (Government provided financial assistance grants for 2021–22 and 2020–21 and an equity injection in 2022–23);[$862.6 M] completeness and accuracy of airways revenue (complexity of the flight traffic data, dependence on multiple integrated IT systems);[$1.79 B] management, recognition and valuation of assets (assumptions and judgements required) |
ASC Pty Ltd (supports Australia’s naval capabilities) | [$767.8 M] Revenue and profit recognition for Offshore Patrol Vessel projects and Collins Class submarine contracts (significant judgements required) |
Australian Bureau of Statistics | [$78.3 M] Recognition of revenue from rendering of services (risks relating to when revenue is recorded, whether it is recognised accurately, and relating to the maintenance of supporting documentation) |
Australian Communications and Media Authority | [$2.65 B] Recognition and measurement of administered income, receivables and unearned income (professional judgement is required in determining when to recognise revenue) |
Australian Federal Police | [$1.44 B] Recognition and measurement of payroll expenses including underpayment of superannuation obligations (size and complex nature of the payroll function; underpayment of superannuation on certain allowances) |
Australian Hearing Services (Hearing Australia) | [$258.9 M] Completeness and accuracy of revenue (complexity of timing and recognition of numerous revenue streams and judgement in determining balances) |
Australian Office of Financial Management | [$825.5 B] Valuation and disclosure of Australian Government Securities (material impactof fair value movement; price changesin local and global markets;complex financial statements disclosure requirements) (moderate risk rating but KAM) |
Australian Naval Infrastructure Pty Ltd | [$1.44 B] Valuation of property, plant and equipment (uses the depreciated replacement cost method which requires significant judgements and estimates); [$31.8 M] completeness and accuracy of capital work in progress (involves judgement in relation to capitalisation) |
Australian Nuclear Science and Technology Organisation | Valuation of the decommissioning [$502.9 M] and nuclear waste management [$130.2 M] provisions (complexity of calculations and reliance upon significant judgement) |
Australian Postal Corporation (Australia Post) | [$8.86 B] Valuation of unearned revenue liability (judgement needed in estimating postage products sold but still unused) (KAM); [component of intangible assets $501.6 M]valuation of goodwill (estimation process is complex and involves significant judgement) (KAM);[$800.5 M] valuation of the net superannuation asset (sensitive to movements in long-term assumptions, subject to judgement) (KAM) |
Australian Rail Track Corporation Ltd | [$3.7 B] Fair value of infrastructure assets (estimated using a complex discounted cash flow model subject to high degree of judgement); [component of impairment expenses for construction in progress of$866.5 M] impairment of Inland Rail assets (judgement and estimation required); [$796.9 M] recognition and measurement of access revenue (subject to management estimates and judgement; complexity of underlying processes) |
Australian Securities and Investments Commission | [$519.0 M] Valuation of the provisions for future payments of unclaimed monies (relies on a legislative framework that can be subject to change; sensitive to movements in general market conditions); [$29.9 M] appropriate capitalisation of software (prior period error; increasing move to cloud-based systems and lower capitalisation rate of assets) |
Australian Signals Directorate | [$1.58 B] Measurement and recognition of nonfinancial assets (significant capital budget, complexity, judgement, fair valuing of specialist assets) |
Australian Taxation Office | [$592.1 B] Accuracy of taxation revenue (KAM) and [$29.3 B] accuracy of expenses (complexity and judgement; completeness and accuracy of source data; consideration of historical taxpayer behaviours together with assumptions about economic factors); [$126.7 B] valuation of taxation receivables and provisions for refunds (complex methodologies and assumptions; accuracy of source data) (KAM); [$592.1 B] completeness of taxation revenue and compliance and risk management process relating to its collection (taxpayer self-assessment; effectiveness of compliance risk management regime; judgements); accuracy and completeness of balances due to complex IT business systems (large and complex IT environment and reliance on bespoke reports) |
Australian War Memorial | [$1.1 B] Valuation of the heritage and cultural assets collection (subject to judgement and assumptions) |
Bureau of Meteorology | [$452.0 M] Valuation of plant and equipment, particularly specialised weather equipment; [$346.4 M] valuation of computer software; [$311.0 M] high volume of leases with varying terms and conditions and high level of manual input and judgement, and material prior period errors, related to estimating lease liabilities and right-of-use assets; [$81.8 M] recognition of own source revenue |
Clean Energy Finance Corporation | [$202.0 M] Recognition and measurement of interest and fee income (calculating revenue from a diverse set of financial assets);[$3.61 B] accounting for complex finance agreements including adequacy of impairment provisions and concessional loan adjustments (complexity of information) |
Coal Mining Industry (Long Service Leave Funding) Corporation | [$1.9 B] Valuation of investments (complexity surrounding the valuation of unlisted unit trusts); [$1.7 B] valuation of provision for reimbursements (complex methodology and estimation process) |
Comcare | [$2.8 B] Valuation of workers’ compensation and asbestos related disease management claims provisions (complex nature of the valuation of the provisions including reliance on the accuracy of underlying assumptions) |
Commonwealth Scientific and Industrial Research Organisation | [$777.6 M] Completeness and accuracy of research and associated measurement of work-in-progress and unearned revenue (revenue is recorded with reference to contracted milestones and significant judgement is required); [$895.9 M] valuation of unlisted equity instruments (requires significant estimation and judgement) |
Defence Housing Australia | [$179.3 M] Valuation of inventories –management’s assessment of net realisable value (significant judgement in the determination of market conditions); [$3.1 B] impairment of investment properties (complex valuation method, subject to management judgement); [$829.5 M] revenue recognition for services provided to Defence (complexity of transactions and systems; judgements and assumptions needed). |
Department of Agriculture, Fisheries and Forestry | Financial sustainability (significance of forecast financial position during 2022-23); [$521.1 M] accuracy and completeness of own-source revenue relating to import and export functions (complexity, reliance on services, decentralised approach) (moderate risk rating but KAM); [$2.83 B] valuation of loans to state and territory governments and farm businesses (complexity, assumptions and reliance on third parties) (KAM) |
Department of Climate Change, Energy, the Environment and Water | [$4.1 B] Valuation of water entitlements assets (significant judgement required and a reliance on third party information) (KAM); [$8.75 B] valuation of the Australian Government’s investment in Snowy Hydro Limited (complex discounted cash flow models that require significant judgements; significance of the balance of administered investments) (KAM); [$451.3 M] valuation of the Antarctic restoration provision (nature of the Madrid Protocol obligations; complex mathematical modeland significant judgement and estimation) (KAM) |
Department of Defence | [$84.3 B] Accuracy and valuation of specialist military equipment (complexity, subjectivity, high degree of judgement) (KAM); [$137.9 B] accuracy, valuation and disclosure of administered employee provisions (complexity, significant judgement required) (KAM); [$8.7 B] existence and completeness of inventory balances (variety and number of inventory items which are managed differently) (moderate risk rating but KAM) |
Department of Education | Completeness, accuracy and classification of transactions and balances resulting from machinery of government changes and complexity of IT systems; [component of trade and other receivables $47.4 B] valuation of the outstanding Higher Education Loan Program (HELP) loan receivable (KAM); [$5.1 B] valuation of the Higher Education Superannuation Program (HESP) provision (moderate risk rating but KAM);[component of personal benefits expenses of $11.1 B] accuracy of ‘assistance to families with children’ personal benefit expenses (may be significantly impacted by the provision of inaccurate information) (KAM) |
Department of Employment and Workplace Relations | Completeness, accuracy and classification of transactions and balances resulting from machinery of government changes (judgement and assumptions in determining opening balances split between Education and DEWR) (KAM); [$1.6 B] accuracy of ‘Workforce Australia’ supplier expenses (new employment service delivered by the department); [a component of trade and other receivables totalling $4.59 B] valuation of the vocational student and trade support loans receivables(complex judgments and assumptions needed) (moderate risk rating but KAM) |
Department of Finance | [$1.4 B] Valuation of outstanding claims liability under the Government’s self-managed general insurance fund (involves significant judgement over key assumptions) (KAM); [$175 B] valuation of the non-defence superannuation provision (significant judgement in the selection of long-term assumptions) (KAM); [$3.3 B] valuation of properties (dependent on assumptions) (moderate risk rating but KAM); [$12.6 B] valuation of private market investments (inherent subjectivity and significant judgements) (KAM) |
Department of Foreign Affairs and Trade | [$4.69 B] Valuation of overseas properties (KAM) (degree of subjectivity in valuing a large number of properties with a wide geographic spread);[$3.7 B] accuracy of international development assistance (broad range of agreements with multiple third parties) (moderate risk rating but KAM) |
Department of Health and Aged Care | [$59.3 B] Accuracy of personal benefits (payments calculated using multiple, complex IT systems) (KAM); [$16.1 B] accuracy of subsidies (payments based on complex regulatory requirements) (KAM); [$1.1 B] valuation of personal benefits’ provisions (significant actuarial assumptions and judgements involved) (KAM); [$3.1 B] valuation of inventories (judgement applied to estimating current cost and service potential) (KAM) |
Department of Home Affairs | [$17.1 B] Accuracy of customs duty (significant value, geographically dispersed revenue collection points and IT complexity) (KAM); [$3.2 B] accuracy of visa application charges (significant value and IT complexity) (KAM) |
Department of Industry, Science and Resources | [$2.1 B] Completeness and accuracy of royalty revenue (reliance on third parties) (KAM); [$2.1 B] valuation of the rehabilitation provision (complexity of the valuation) (KAM) |
Department of Infrastructure, Transport, Regional Development, Communications and the Arts | [$22.0 B] Valuation of administered investments accounted for using the discounted cash flow method (complexity in determining the estimated fair value) (KAM); [$9.4 B] valuation of administered advances and loans (complexity of model, judgements and assumptions) (moderate risk rating but KAM) |
Department of Parliamentary Services | [$2.7 B] Valuation of buildings (complexity and judgement arising from unique nature of each building component that comprises Parliament House) (KAM) |
Department of Social Services | [$125.8 B] Accuracy and occurrence of personal benefits expenses (reliance on the correct self-disclosure of personal circumstances; reliance on Services Australia’s complex IT processing system) (KAM); valuation of [$4.0 B] personal benefits provisions and [$5.4 B] personal benefits receivables (use of estimation models which require significant judgements; accuracy and completeness of the source data) (KAM); [$2.5 B] validity of grant expenses (large number of grants programs with differing legislative and policy requirements) (moderate risk rating but KAM) |
Department of the Treasury | [$6.5 B] Completeness and valuation of the Disaster Recovery Funding Arrangements (DRFA) Provision (reliance on information provided by state and territory governments; complexities in judgements) (KAM); [$118.9 B] accuracy and occurrence of payments to states and territories under the Federal Financial Relations Act 2009 (significance of the value and complex eligibility criteria; reliance on information from other entities) (moderate risk rating but KAM) |
Department of Veterans’ Affairs | [$55.7 B] Valuation of military compensation provision (judgements involved in determining assumptions and calculations) (KAM); [$10.5 B] accuracy of personal benefits and health care payments (complexity of IT systems and applicable legislation, and reliance on accurate and complete veteran provided information) |
Future Fund Management Agency | [$103.4 B] Valuation of private market investments (inherent subjectivity and significant judgements and estimates required where market data is not available) (KAM) |
National Archives of Australia | [$1.55 B] valuation of archival collection (complexity) |
National Disability Insurance Agency | [$35.2 B] Accuracy and occurrence of participant plan expenses (growth and varying needs of participants and high volume of transactions) (KAM);[$1.9 B] valuation of participants’ plan provisions (significant judgements and assumptions due to complexity in estimating support) (KAM);[$2.2 B] completeness, occurrence and accuracy of contributions of in-kind services from state and territory governments (reliance on third party data; in-kind revenue and expenses may be misstated) (KAM) |
National Gallery of Australia | [$6.9 B] Valuation of items in the heritage and cultural collection (judgement required in valuations of artwork and complexity of the valuation model) |
National Indigenous Australians Agency | [$1.6 B] Performance of grantees in meeting grant conditions (significant number and value of grants paid; complexity of grants management in remote areas; different IT systems operated by different entities) (KAM) |
National Intermodal Corporation Limited | [$169.2 M] Valuation of the land preparation; Moorebank Avenue works and voluntary planning contributions (judgements and estimates involved and sensitivity of key inputs) |
National Library of Australia | [$1.1 B] Valuation of the national collection (significant judgement and expertise required due to the unique nature of the collection assets) |
NBN Co Limited | [$5.1 B] Accuracy and occurrence of telecommunications revenue (high volume of transactions and multiple IT systems and tools utilised) (KAM); [$1.95 B] valuation and disclosure of derivatives (judgements involved in determining the fair value; accounting complexity) (KAM [valuation]); [$3.1 B] accuracy and completeness of depreciation and amortisation (significant judgement needed and complexity of the manual depreciation models used) (KAM) |
Reserve Bank of Australia | [$589.5 B] Valuation of Australian dollar securities and foreign currency investments (complexity in valuing a range of investments and securities; fluctuations in the Australian dollar exchange rate) (KAM); [$101.3 B] accuracy of the liability for Australian banknotes (assumption that legal tender status is retained by all Australian notes on issue; significant financial impact from any fluctuations in the value of the Australian dollar supply and security of banknotes) |
Services Australia | [$988.9 M] Valuation of child support receivables yet to be paid by noncustodial parents (significant judgements and assumptions around the collection rates of child support obligations; complexity around bespoke IT application) (moderate risk rating but KAM); [$894.3 M] valuation of intangible assets (significant judgements involved) (moderate risk rating but KAM); [$2.0 B] valuation of right-of- use assets (judgements associated with right-of-use valuations, particularly the treatment of lease options) (moderate risk rating but KAM) |
Snowy Hydro Limited | [$1.77 B] Valuation, existence and completeness of financial instruments –energy derivatives (judgement and level of estimation; arithmetical and financial statement complexity) (KAM); [component of $5.3 B construction in progress] valuation of property, plant and equipment for Snowy 2.0 (complexity and judgement) (KAM); [$906.4 M] completeness and accuracy of the impairment of retail debtors (level of judgement and estimation involved in measuring the allowance for doubtful debts) (KAM) |
Voyages Indigenous Tourism Australia Pty Ltd | [$435.0 M] Valuation of Ayers Rock Resort (complexity due to judgements and assumptions in determining future cash inflows) |
WSA Co Limited (construction and operation of Badgerys Creek airport) | [$1.6 B] Recognition of capital work in progress for airport construction activities (judgement and estimation required in apportioning capital and operating costs) |