Australian Prudential Regulation Authority

Chapter 8 - Financial statements
 
Statement by Members and the Chief Financial Officer
 
In our opinion, the attached financial statements for the year ended 30 June 2011 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 Financial Management and Accountability Act 1997, as amended.
 
Signature of Dr John F. Laker
Dr John F. Laker
Chairman
23 August 2011
 
Signature of Mr K. Ross Jones
Mr K. Ross Jones
Deputy Chairman
23 August 2011
 
Signature of Mr Ian Laughlin
Mr Ian Laughlin
Member
23 August 2011
 
Signature of Mr Steve Matthews
Mr Steve Matthews
Chief Financial Officer
23 August 2011
 
Statement of comprehensive income
for the year ended 30 June 2011
This is a table showing the comprehensive income statement for the year ended 30 June 2011
 
Balance sheet
as at 30 June 2011
This is a table showing the balance sheet as at 30 June 2011
 
Statement of changes in equity
for the year ended 30 June 2011
This is a table showing the changes in equity statement for the year ended 30 June 2011
 
Statement of cash flows
for the year ended 30 June 2011
This is a table showing the cash flow statement for the year ended 30 June 2011
 
Schedule of commitments
as at 30 June 2011
This is a table showing the schedule of commitments as at 30 June 2011
 
Schedule of contingencies
as at 30 June 2011
This is a table showing the schedule of contingencies as at 30 June 2011
 
Schedule of asset additions
as at 30 June 2011
This is a table showing the schedule of asset additions as at 30 June 2011
 
Schedule of administered items
This is a table showing the schedule of administered items, including income, expenses, assets and liabilities administered on behalf of Government
This is the Schedule of administered items, showing administered cashflows
 
Notes to and forming part of the financial statements
for the year ended 30 June 2011
 
Note 1: Summary of significant accounting policies
 
1.1 Objectives of Australian Prudential Regulation Authority
 
The role of APRA is developing and enforcing a robust prudential framework that promotes prudent behaviour by authorised deposit-taking institutions (ADIs), insurance companies, superannuation funds and other financial institutions it supervises, with the key aim of protecting the interests of depositors, policyholders and superannuation fund members. In carrying out its role, APRA's objective is to enhance public confidence in Australia's financial institutions through a prudential framework that balances financial safety and efficiency, competition and competitive neutrality. Prudential regulation focuses on the quality of an institution's systems for identifying, measuring and managing the various risks in its business. In addition, APRA is responsible for administering the Financial Claims Schemes provided for in relevant banking and general insurance legislation.
 
APRA's activities contributing toward these outcomes are classified as either 'departmental' or 'administered'. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by APRA in its own right. Administered activities involve the management or oversight by APRA, on behalf of the Government, of items controlled or incurred by the Government.
 
APRA's continued existence in its present form and with its present programs is dependent on Government policy and on continuing appropriations from Parliament.
 
1.2 Basis of preparation of the financial statements
 
The financial statements and notes are required by section 49 of the Financial Management and Accountability Act 1997 and are general purpose financial statements.
 
The financial statements and notes have been prepared in accordance with:
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities 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 statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.
 
Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Balance Sheet when and only when it is probable that future economic benefits will flow to APRA or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. 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, income and expenses are recognised in the Statement of Comprehensive Income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
 
1.3 Significant accounting judgements and estimates
 
In the process of applying the accounting policies listed in this note, APRA has made the following judgements that have the most significant impact on the amounts recorded in the financial statements:
No accounting assumptions and estimates have been identified that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next accounting period.
 
APRA has assessed the value of its non-financial assets as at 30 June 2011 and is satisfied that they reflect the fair value.
 
1.4 Changes in Australian Accounting Standards
 
Adoption of new Australian Accounting Standard requirements
 
No accounting standard has been adopted earlier than the application date as stated in the standard. No new accounting standards, amendments to standards and interpretations issued by the AASB that were issued prior to the signing of the financial statements by Members and the Chief Financial Officer and that are applicable in the current period, have had a material financial effect on APRA and are not expected to have a future financial impact on APRA.
 
Future Australian Accounting Standard requirements
 
New accounting standards, amendments to standards and interpretations that were issued prior to the signing of the financial statements by Members and the Chief Financial Officer and are effective for future reporting periods have been issued by the AASB. It is expected that these changes, when effective, will have no material financial impact on future reporting periods.
 
1.5 Revenue
 
Revenue from Government
 
APRA is funded primarily through levies imposed on the industries it supervises. These levies, known as the Financial Institutions Supervisory Levies, are administered transactions collected on behalf of the Government and paid into the Consolidated Revenue Fund (CRF). An amount equal to the net levy revenue, less an amount specified by the Minister in an annual determination made under subsection 50(1) of the Australian Prudential Regulation Authority Act 1998 (APRA Act), is credited to the APRA Special Account as a Special Appropriation, in accordance with subsections 50(2), (3) and (5) of the APRA Act. The amounts specified in the Minister's Determinations are retained in the CRF to cover the costs of providing market integrity and consumer protection functions for prudentially regulated institutions, functions that are conducted by other Australian Government entities. The calculation of the Special Appropriation is shown at Note 3.
 
Amounts appropriated for APRA's outputs for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when APRA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.
 
Other revenue
 
Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.
 
Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.
 
Parental leave payments scheme
 
Amounts received under the Parental Leave Payments Scheme not yet paid to employees are presented gross as cash and a liability (payable) by APRA. The total amount received under this scheme is disclosed as a footnote to Note 5E: Revenue from Government.
 
1.6 Gains
 
Resources received free of charge
 
Resources received free of charge are recognised as gains when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
 
Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition.
 
Resources received free of charge are recorded as either revenue or gains depending on their nature
 
Sale of assets
 
Gains or losses from disposal of assets are recognised when control of the asset has passed to the buyer.
 
1.7 Transactions with the Government as owner
 
Equity injections
 
Amounts appropriated as 'equity injections' for a year (less any formal reductions) are recognised directly in contributed equity in that year.
 
1.8 Employee benefits
 
Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the balance date 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 long-term employee benefits 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 APRA is estimated to be less than the annual entitlement for sick leave.
 
The annual and long service leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including APRA's employer superannuation contribution rates, assuming that the leave is likely to be taken during service rather than paid out on termination.
 
The liability for long service leave has been recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the end of the financial year. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
 
Separation and redundancy
 
Provision is made for separation and redundancy benefit payments, in cases where APRA has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations.
 
Superannuation
 
Certain employees of APRA are members of the Commonwealth Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS). The CSS and PSS are defined benefit schemes for the Australian Government. The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported by the Department of Finance and Deregulation as an administered item. APRA makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlement of APRA's employees. APRA accounts for the contributions as if they were contributions to defined contribution plans.
 
APRA also makes employer contributions to the Reserve Bank Officers' Superannuation Fund and to State-based superannuation schemes for former employees of the Reserve Bank of Australia and State-based regulators, respectively.
 
For all other employees, employer contributions are made to other superannuation (accumulation) funds, as nominated by the employee.
 
The liability for superannuation recognised at the balance date represents outstanding contributions for the remaining days following the last payroll in June 2011.
 
1.9 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 assets. In operating leases, the lessor effectively retains substantially all such risks and benefits.
 
Operating lease payments are expensed on a straight-line basis that is representative of the pattern of benefits derived from the leased assets. APRA has no finance leases.
 
1.10 Cash
 
Cash is recognised at its nominal amount. Cash includes cash on hand and cash in special accounts.
 
1.11 Financial assets
 
APRA classifies its financial assets as loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date.
 
Loans and receivables
 
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. They are included in current assets, except for maturities greater than 12 months after the balance sheet date. These are classified as non-current assets. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.
 
Impairment of financial assets
 
Financial assets are individually assessed for impairment at each balance date. Where there is sufficient evidence to suggest that an impairment loss has been incurred, the carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.
 
1.12 Financial liabilities
 
APRA classifies its financial liabilities as 'payables'. Financial liabilities are recognised and derecognised upon trade date. Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).
 
Other payables, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.
 
1.13 Contingent assets and contingent liabilities
 
Contingent assets and contingent liabilities are not recognised in the Balance Sheet but are reported in the relevant Schedules and Notes. They may arise from uncertainty as to the existence of an asset or liability, or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when the probability of settlement is greater than remote.
 
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 income 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 entity's accounts immediately prior to the restructuring.
 
1.15 Property, plant and equipment
 
Asset recognition threshold
 
Purchases of property, plant and equipment are recognised initially at cost in the Balance Sheet, except for purchases costing less than $5,000, which are expensed in the year of acquisition.
 
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions in property leases taken up by APRA where there exists an obligation to restore the property to its original condition. These costs are included in the value of APRA's leasehold improvements with a corresponding provision for the 'make good' recognised. Adjustments to the value of the provision are recognised in the Statement of Comprehensive Income as expenses or gains as incurred.
 
Revaluations
 
Following initial recognition at cost, property, plant and equipment are carried at fair value, less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency such that the carrying amount of each class of asset is not materially different, at reporting date, from its fair value. Valuations are undertaken every three years as at 30 June (last valuation 2010/11).
 
Fair values for each class of asset are determined as shown below:
 
Asset class Fair value measured at:
Leasehold improvements Depreciated replacement cost
Computer hardware and office equipment Market selling price
 
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 in the Statement of Comprehensive Income. Revaluation decrements for a class of assets are recognised directly in the Statement of Comprehensive Income except to the extent that they reversed 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 APRA using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.
 
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:
 
Asset class 2011 2010
Leasehold improvements Lesser of 10 years or lease term Lesser of 10 years or lease term
Computer hardware and office equipment 3 to 12 years 3 to 12 years
 
Impairment
 
All assets were assessed for impairment at the balance date. 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 APRA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
 
Derecognition
 
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.
 
1.16 Intangibles
 
APRA's intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
 
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of APRA's software are the lesser of five years or assessed useful life (2009/10: lesser of five years or assessed useful life).
 
All software assets were assessed for indications of impairment as at 30 June 2011.
 
1.17 Taxation
 
APRA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) 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. Receivables and payables are recognised inclusive of GST.
 
1.18 Reporting of administered activities
 
Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of Administered Items and related Notes.
 
Except where otherwise stated below, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.
 
Administered cash transfers to and from the Official Public Account (OPA)
 
Revenue collected by APRA for use by the Government rather than by APRA is administered revenue. Collections are transferred to the OPA maintained by the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by APRA on behalf of the Government and reported as such in the Administered Cash Flows in the Schedule of Administered Items and in the Administered reconciliation table in Note 20.
 
Revenue
 
All administered revenues relate to the ordinary activities performed by APRA on behalf of the Australian Government. These revenues are not directly available to be used by APRA for its own purposes and are remitted to the OPA.
 
APRA undertakes the collection of certain levies on behalf of the Government. These comprise Financial Institutions Supervisory Levies, the Financial Assistance Levy and late payment penalties collected under the Financial Institutions Supervisory Levies Collection Act 1998. These administered items are distinguished from departmental items throughout these financial statements by background shading.
 
Administered revenue arising from levies (including the Financial Assistance Levy) is recognised on an accrual basis, in line with the Minister's regulations and determinations. The collectability of debts is reviewed at balance date. Provisions are made when collection of the debt is judged to be less, rather than more, likely.
 
Expenses
 
Administered expenses arising from waivers of levy debts are recognised at the time of approval by delegated APRA officials.
 
Waivers of levies under the Financial Institutions Supervisory Levies Collection Act 1998 are shown at Note 24, as required by the FMOs. Waivers generally occur due to a change of status of a supervised entity during the year, resulting in the annual levy being wholly or partly waived.
 
Contingent assets and liabilities
 
There were no administered contingent assets or liabilities in 2011 or in 2010.
 
Note 2: Events after the balance sheet date
 
There were no significant events occurring after the balance sheet date that have the potential to significantly affect the ongoing structure or financial activities of APRA. .
 
Note 3: Calculation of APRA Special Appropriation
 
The APRA Special Appropriation is calculated in accordance with the provisions of s50 of the Australian Prudential Regulation Authority Act 1998.
 
Details are as follows:
 
This table shows details for calculation of APRA Special Appropriation.
1. As determined by the Minister in accordance with subsection 50 (1) of the Australian Prudential Regulation Authority Act 1998.
 
Note 4: Expenses
 
This table provides a full list of expense details. Note 4A details employee benefits. Note 4B details supplier expenses.
This table continues to provides a full list of expense details. Note 4C details depreciation and amortisation. Note 4D details finance costs. Note 4E details write-down and impairment of assets. Note 4F details losses from asset sales.
 
Note 5: Income
This table provides a full list of income details. Note 5A details income from rendering of services. Note 5B details rental income. Note 5C details other revenue. Note 5D details other gains. Note 5E details revenue from Government.
 
Note 6: Other comprehensive income
This table provides income details for other comprehensive income. Note 6C details changes in asset revaluation reserve.
 
Note 7: Financial assets
This table provides a full list of financial asset details. Note 7A details cash assets. Note 7B details trade and other receivables.
This table provides financial asset details. Note 7B (continued) details trade and other receivables.
This table provides financial asset details. Note 7B (continued) details trade and other receivables.
 
Note 8: Non-financial assets
This table provides details for non-financial assets. Note 8A details property, plant and equipment.
This table provides details for non-financial assets. Note 8B details reconciliation of the opening and closing balances of property, plant and equipment for 2011.
This table provides details for non-financial assets. Note 8B (continued) details reconciliation of the opening and closing balances of property, plant and equipment for 2010.
1. Detailed information is provided in the Schedule of Asset Additions.
 
This table provides details for non-financial assets. Note 8C note provides details for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
 
This table provides details for non-financial assets. Note 8D details reconciliation of the opening and closing balances of intangible assets for 2011.
This table provides details for non-financial assets. Note 8D (continued) details reconciliation of the opening and closing balances of intangible assets for 2010.
1. Detailed information is provided in the Schedule of Asset Additions.
 
This table provides details for non-financial assets. Note 8E details other non-financial assets.
 
Note 9: Payables
This table provides a list of amounts payable. Note 9A details suppliers. Note 9B details unearned fees and charges. Note 9C details other payables.
 
Note 10: Provisions
This table provides a list of provisions. Note 10A details employee provisions. Note 10B details other provisions.
APRA leases premises in Sydney, Melbourne, Canberra, Brisbane, Perth and Adelaide.
 
In the lease conditions of all locations except Canberra, there is a requirement for APRA, upon expiration of the lease, to restore the premises to the condition they were in at the commencement of the lease. The required level of 'make good' provision is being accumulated for each location over the terms of the various leases.
 
 
Note 11: Statement of cash flows reconciliation
This table provides details for the statement of cash flows reconciliation.
 
Note 12: Contingent assets and liabilities
This table provides details for contingent assets and liabilities.
 
Note 13: Remuneration of APRA Members
 
APRA Members are appointed by the Governor General under Part 3 of the Australian Prudential Regulation Authority Act 1998 and remuneration is set by the Remuneration Tribunal under the Remuneration Tribunal Act 1973. Total remuneration as determined by the Tribunal for 2010/11 was Chairman $646,710 (2009/10: $621,230); Deputy Chairman $541,120 (2009/10: $519,800); and Member $514,750 (2009/10: $494,470). Any difference between the Tribunal determination and the cost to APRA is due to changes in unused annual and long service leave entitlements accumulated in the year and funding changes to defined benefit superannuation schemes where relevant.
 
This table provides details for remuneration of APRA members
 
Note 14: Remuneration of senior executives
This table provides details of remuneration of senior executives. Note 14A details remuneration expenses for senior executives.
Note 14A was prepared on an accrual basis and excludes acting arrangements and part-year service where remuneration expensed was less than $150,000.
 
This table provides details of remuneration of senior executives. Note 14B details average annual remuneration packages and bonus paid for senior executives.
 
Note 14C: Other highly paid staff
 
During the reporting period, there were 82 employees (2009-10: 71) whose salary plus performance bonus was $150,000 or more. These employees did not have a role as a senior executive and are excluded from Notes 14A and 14B.
  1. This table reports on senior executives employed by APRA as at the end of the reporting period. Fixed elements are based on the employment agreement of each individual. Each row represents an average annualised figure (based on headcount) for the individuals in that remuneration band.
  2. APRA pays a fixed Total Remuneration Package (TRP) to each employee. This includes salary, employer superannuation payments, salary sacrifice payments, fringe benefits and any tax liability applying to fringe and other benefits. Various salary sacrifice arrangements are available to senior executives including superannuation, laptops, motor vehicles and expense payment fringe benefits.
  3. Average bonuses paid during the reporting period are excluded for the purpose of determining remuneration bands. The bonus paid within a particular band may vary between financial years due to factors such as individuals joining or leaving APRA during the financial year and performance ratings.

    Senior executives have the following leave entitlements:
    • annual leave 20 days (2009-10: 20 days) each full year worked (pro-rata for part-time senior executives);
    • unlimited personal leave; and
    • long service leave (LSL) in accordance with Long Service Leave (Commonwealth Employees) Act 1976.
 
Note 15: Remuneration of auditors
This table provides details for the remuneration of auditors.
 
Note 16: Financial instruments
This table provides details for financial instruments. Note 16A details categories of financial instruments.
This table provides details for financial instruments. Note 16B details credit risk.
Note 16C: Liquidity risk
 
APRA is funded annually by appropriations from Government based on the actual cost of regulation of the financial sector, fee for service activities and other activities that APRA may be required to perform from time to time. In addition, APRA maintains reserves and a Contingency Enforcement Fund. These arrangements, along with strictly controlled cash flow monitoring and forecasting, expose APRA to negligible liquidity risk.
 
Note 16D: Market risk
 
APRA is not exposed to any form of currency risk, interest rate risk or other price risk.
 
Note 17: Income administered on behalf of Government
This table provides details for income administered on behalf of Government. Note 17A details Financial Institutions Supervisory Levies by levy type.
This table provides details for income administered on behalf of Government. Note 17B details the Financial Assistance Levy.
 
Note 18: Expenses administered on behalf of Government
This table provides details for expenses administered on behalf of Government (specifically, waivers).
 
Note 19: Assets administered on behalf of Government
This table provides details for assets administered on behalf of Government.
 
Note 20: Administered reconciliation table
This table provides details for the reconciliation of administered assets and liabilities.
 
Note 21: Administered financial instruments
This table provides details for administered financial instruments. Note 21A details categories of financial instruments.
This table provides details for administered financial instruments. Note 21A details credit risk
 
Note 21C: Liquidity risk
 
There are no administered financial liabilities and therefore there is no exposure to any liquidity risk.
 
Note 21D: Market risk
 
There is no exposure to any form of currency risk, interest rate risk or other price risk.
 
Note 22: Appropriations
 
Table A: Annual appropriations ('recoverable GST exclusive')
This table provides details of annual appropriations for 2010 and 2011.
1. Appropriations reduced under Appropriation Acts (No.1,3) 2010-11, sections 10, 11, 12 and 15 and under Appropriation Acts (No.2,4) 2010-11, sections 12, 13, 14 and 17.
2. The variance between the total appropriation and the appropriation applied is made up of the prior year (2009-10) appropriation receivable applied in the current year less the current year appropriation receivable.
3. Appropriations reduced under Appropriation Acts (No.1,3) 2009-10, sections 10, 11 and 12 and under Appropriation Acts (No.2,4) 2009-10, sections 12, 13 and 14.
4. The variance between the total appropriation and the appropriation applied is made up of the prior year (2008-09) appropriation receivable applied in the current year less the current year appropriation receivable.
 
Table B: Unspent departmental annual appropriations ('recoverable GST exclusive')
This table provides details of unspent departmental annual appropriations for 2010 and 2011.
 
Table C: Special appropriations ('recoverable GST exclusive')
This table provides details of special appropriations for 2010 and 2011.
1. Administered items for 2009-10 were reduced to these amounts when the financial statements were tabled in Parliament as part of APRA's 2010 annual report. This reduction was effective in 2010-11, but the amounts were reflected in Table A in the 2010 financial statements in the column 'Appropriations reduced' as they were adjustments to 2009-10 appropriations.
 
Table D: Reduction in administered items ('recoverable GST exclusive')
 
There were no reductions of administered items in 2011.
This table provides details of reduction in administered items in 2010.
 
Note 23: Special Accounts
 
APRA Special Account (Departmental)
 
Appropriation: Financial Management and Accountability Act 1997, section 21.
 
Establishing Instrument: Australian Prudential Regulation Authority Act 1998, section 52.
 
Purpose: To pay the costs and other obligations incurred by APRA in the performance of its functions or the exercise of its powers; to pay any remuneration or allowances payable to persons appointed or engaged under the APRA Act; and to make any other payments that APRA is authorised or required to make under the APRA Act or any other law of the Commonwealth.
This table provides detaisl for the APRA Special Account (Departmental).
1. Amount required as per Appropriation Act (Act 1 s. 11; Act 2 s. 12).
2. Total amount appropriated in 2009-10.
3. Total reduction effective in 2010-11.
 
Financial Claims Scheme Special Account (Administered)
 
Appropriation: Financial Management and Accountability Act 1997, section 21.
 
Establishing Instrument: Australian Prudential Regulation Authority Act 1998, section 54A.
 
Purpose: To meet account-holders' entitlements under Subdivision C (Payment of account-holders with declared ADI) of Division 2AA of Part II of the Banking Act 1959; meet persons' entitlements under Division 3 (Early payment of claims) of Part VC of the Insurance Act 1973; pay APRA's agents or delegates amounts equal to the entitlements the agents or delegates meet on APRA's behalf or in the performance of APRA's delegated functions; and repayment of principal, interest and other costs connected with the borrowings under Division 2 of the APRA Act.
This table provides details for the Financial Claims Scheme Special Account (Administered)
 
Lloyd's Deposit Trust Special Account (Special Public Money)
 
Appropriation: Financial Management and Accountability Act 1997, section 20.
 
Establishing Instrument: Financial Management and Accountability Determination 2006/26.
 
Purpose: To disburse amounts in accordance with section 92Q of the Insurance Act 1973.
This table provides details for Lloyd’s Deposit Trust Special Account (Special Public Money).
Responsibility for the administration of the Lloyd's Deposit Trust Special Account was transferred from the Department of Treasury to APRA with effect from 26 May 2008.
 
The market valuation as at 30 June 2011 for Lloyd's inscribed stock is $2,078,740 (2010: $2,028,820).
 
Services for Other Entities and Trust Moneys (Special Public Money)
 
Appropriation: Financial Management and Accountability Act 1997, section 20.
 
Establishing Instrument: Financial Management and Accountability Determination 2007/09.
 
Purpose: To distribute amounts temporarily held on trust for the benefit of another person other than the Commonwealth; disburse amounts in connection with services performed on behalf of other Governments and bodies that are not FMA Act agencies; and repay amounts where an Act or other law requires or permits the repayment of an amount received.
This table provides details for Services for Other Entities and Trust Moneys (Special Public Money).
 
Note 24: Compensation and debt relief
This table provides details for compensation and debt relief.
 
Note 25: Reporting of outcomes
 
Note 25A: Net cost of outcome delivery
 
APRA is structured to meet the following outcome:
 
Outcome 1: To enhance public confidence in Australia's financial institutions through a framework of prudential regulation that balances financial safety and efficiency, competition, contestability and competitive neutrality.
This table provides details for the net cost of outcome delivery.
 
This image shows the first page of the Independent Auditor's Report, dated 23rd August 2011.
This image shows the first page of the Independent Auditor's Report, dated 23rd August 2011.