Financial StatementsStatement of Comprehensive Income For the year ended 30 June 2014 Cost of Services Expenses Note 2014 2013 Total cost of services $34,711,000 $30,765,000 Employee benefits expense 8 $18,675,000 $17,817,000 Supplies and services 9 $6,829,000 $6,341,000 Depreciation and amortisation expense 10 $1,977,000 $2,432,000 Accommodation expenses 11 $3,475,000 $3,011,000 Grants and subsidies 12 $295,000 $49,000 Cost of sales 15 $1,005,000 $666,000 Other expenses 13 $2,455,000 $449,000 Income Revenue Note 2014 2013 Total revenue $11,115,000 $8,348,000 Total income other than income from State Government $11,115,000 $8,348,000 User charges and fees 14 $2,349,000 $1,651,000 Sales 15 $2,540,000 $2,361,000 Commonwealth grants and contributions 16 $414,000 $210,000 Interest revenue 17 $133,000 $85,000 Other revenue 18 $5,679,000 $4,041,000 Net Cost Net Cost Note 2014 $000 2013 $000 TOTAL NET COST OF SERVICE $23,596,000 $22,417,000 Net Cost of Service $23,596,000 $22,417,000 Income from State Government Income Note 2014 2013 Total income from State Government 19 $27,531,000 $24,856,000 Service appropriation $30,522,000 $7,564,000 Liabilities assumed ($4,492,000) - Assets transferred $1,236,000 - Services received free of charge $124,000 $15,987,000 State grants and contributions $141,000 $1,305,000 Surplus for the Period Surplus Note 2014 2013 Total Surplus for the Period $3,935,000 $2,439,000 Surplus for the Period $3,935,000 $2,439,000 Other Comprehensive Income Items not reclassified subsequently to profit or loss Note 2014 2013 Total other comprehensive income ($92,761,000) ($1,576,000) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ($88,826,000) $863,000 Changes in asset revaluation surplus 25,26 ($92,761,000) ($1,576,000) The Statement of Comprehensive Income should be read in conjunction with the accompanying notes. Statement of Financial Position For the year ended 30 June 2014 Assets Current Assets Note 2014 2013 Total current assets $6,565,000 $4,506,000 Cash and cash equivalents 33 $543,000 $775,000 Restricted cash and cash equivalents 20,33 $2,313,000 $2,415,000 Inventories 21 $729,000 $905,000 Receivables 22 $1,807,000 $411,000 Other current assets 23 $1,173,000 - Non-current Assets Note 2014 2013 Total non-current assets $474,777,000 $565,109,000 Restricted cash and cash equivalents 20 $643,000 - Amounts receivable for services 24 $31,145,000 $27,839,000 Property, plant and equipment 25 $95,926,000 $98,612,000 Museum Collection 26 $347,063,000 $438,658,000 Note 2014 2013 TOTAL ASSETS $481,342,000 $569,615,000 Liabilities Current Liabilities Note 2014 2013 Total current liabilities $4,765,000 $4,365,000 Payables 29 $1,419,000 $4,358,000 Provisions 30 $3,289,000 - Other current liabilities 31 $57,000 $7,000 Non-current Liabilities Note 2014 2013 Total non-current liabilities $698,000 - Provisions 30 $698,000 - Note 2014 2013 TOTAL LIABILITIES $5,463,000 $4,365,000 Net Assets Note 2014 2013 NET ASSETS $475,879,000 $565,250,000 Equity Note 2014 2013 TOTAL EQUITY $475,879,000 $565,250,000 32 Contributed equity $14,671,000 $15,216,000 Reserves $206,188,000 $298,949,000 Accumulated surplus $255,020,000 $251,085,000 The Statement of Financial Position should be read in conjunction with the accompanying notes. Statement of Changes in Equity For the year ended 30 June 2014 Balance at 1 July 2012 Note Contributed Equity Reserves Accumulated Surplus Total Equity Total - ($1,576,000) $2,439,000 $863,000 BALANCE AT 30 JUNE 2013 $15,216,000 $298,949,000 $251,085,000 $565,250,000 Balance at 1 July 2012 32 $15,216,000 $300,525,000 $248,646,000 $564,387,000 Surplus/(deficit) - - $2,439,000 $2,439,000 Revaluation decrement - ($1,576,000) - ($1,576,000) Total comprehensive income for the year - ($1,576,000) $2,439,000 $863,000 Transactions with owners in their capacity as owners Capital appropriations - - - - Other contributions by owners - - - - Distributions to owners - - - - Balance at 1 July 2013 Note Contributed Equity Reserves Accumulated Surplus Total Equity Total ($545,000) ($92,761,000) $3,935,000 ($89,370,000) BALANCE AT 30 JUNE 2014 $14,671,000 $206,188,000 $255,020,000 $475,879,000 BALANCE AT 1 JULY 2013 32 $15,216,000 $298,949,000 $251,085,000 $565,250,000 Surplus/(deficit) - - $3,935,000 $3,935,000 Revaluation decrement - ($92,761,000) - ($92,761,000) Total comprehensive income for the year - ($92,761,000) $3,935,000 ($88,825,000) Transactions with owners in their capacity as owners Capital appropriations - - - - Other contributions by owners - - - - Distributions to owners - - - - Land sale in Geraldton ($545,000) ($545,000) The Statement of Changes in Equity should be read in conjunction with the accompanying notes. Statement of Cash Flows For the year ended 30 June 2014 Cash Flows from State Government Cash Flows from State Government Note 2014 2013 Net cash provided by State Government $28,593,000 $6,125,000 Service appropriation $27,944,000 $4,820,000 Cash and cash equivalents transferred $508,000 - State grants and contributions $141,000 $1,305,000 Cash Flows from Operating Activities Cash Flows from Operating Activities Note 2014 2013 Net cash used in operating activities 33 ($28,080,000) ($5,273,000) Payments Employee benefits ($19,199,000) ($979,000) Supplies and services ($10,398,000) ($8,267,000) Accommodation ($3,475,000) ($3,011,000) Grants and subsidies ($295,000) ($49,000) GST payments on purchases ($1,300,000) ($1,050,000) GST payments to taxation authority ($2,000) ($70,000) Other payments ($3,629,000) ($987,000) Receipts Sale of goods and services $2,540,000 $2,361,000 User charges and fees $2,349,000 $1,651,000 Commonwealth grants and contributions $414,000 $210,000 Interest received $114,000 $83,000 GST receipts on sales $554,000 $1,176,000 GST receipts from taxation authority $467,000 - Other receipts $3,780,000 $3,659,000 Cash Flows From Investing Activities Cash Flows From Investing Activities Note 2014 2013 Net cash used in investing activities ($204,000) ($61,000) Purchase of non-current physical assets ($204,000) ($61,000) Cash Flows from Financing Activities Cash Flows from Financing Activities Note 2014 2013 Net cash (used) in financing activities - ($19,000) Repayment of borrowings - ($19,000) Cash Flows from Financing Activities Note 2014 2013 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 33 $3,499,000 $3,190,000 Net (decrease)/increase in cash and cash equivalents $309,000 $772,000 Cash and cash equivalents at the beginning of period $3,190,000 $2,418,000 The Statement of Cash Flows should be read in conjunction with the accompanying notes. Notes to the Financial Statements For the year ended 30 June 2014 1. Australian Accounting Standards General The Western Australian Museum's financial statements for the year ended 30 June 2014 have been prepared in accordance with Australian Accounting Standards. The term 'Australian Accounting Standards' includes Standards and Interpretations issued by the Australian Accounting Standards Board (AASB). The Western Australian Museum has adopted any applicable new and revised Australian Accounting Standards from their operative dates. Early adoption of standards The Western Australian Museum cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. There has been no early adoption of Australian Accounting Standards that have been issued or amended (but not operative) by the Western Australian Museum for the annual reporting period ended 30 June 2014. 2. Summary of significant accounting policies (a) General statement The Western Australian Museum is a not-for-profit reporting entity that prepares general purpose financial statements in accordance with Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB as applied by the Treasurer's Instructions. Several of these are modified by the Treasurer's Instructions to vary application, disclosure, format and wording. The Financial Management Act 2006 and the Treasurer's Instructions impose legislative provisions that govern the preparation of financial statements and take precedence over Australian Accounting Standards, the Framework, Statements of Accounting Concepts and other authoritative pronouncements of the AASB. Where modification is required and has had a material or significant financial effect upon the reported results, details of that modification and the resulting financial effect are disclosed in the notes to the financial statements. (b) Basis of preparation The financial statements have been prepared on the accrual basis of accounting using the historical cost convention, except for land, buildings and Museum collections which have been measured at fair value. The accounting policies adopted in the preparation of the financial statements have been consistently applied throughout all periods presented unless otherwise stated The financial statements are presented in Australian dollars and all values are rounded to the nearest thousand dollars ($'000). Note 4 'Judgements made by management in applying accounting policies' discloses judgements that have been made in the process of applying the Western Australian Museum's accounting policies resulting in the most significant effect on amounts recognised in the financial statements. Note 5 'Key sources of estimation uncertainty' discloses key assumption made concerning the future and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. (c) Reporting entity The reporting entity is The Western Australian Museum which is a body corporate with perpetual succession and an agency of the State of Western Australia. (d) Contributed equity AASB Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities requires transfers in the nature of equity contributions, other than as a result of a restructure of administrative arrangements, to be designated by the Government (the owner) as contributions by owners (at the time of, or prior to transfer) before such transfers can be recognised as equity contributions. Capital appropriations have been designated as contributions by owners by TI 955 Contributions by Owners made to Wholly Owned Public Sector Entities and have been credited directly to Contributed equity. The transfers of net assets to/from other agencies, other than as a result of a restructure of administrative arrangements, are designated as contributions by owners where the transfers are non-discretionary and non-reciprocal. (e) Income Revenue recognition Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows: Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably. Provision of services Revenue is recognised by reference to the stage of completion of the transaction. Interest Revenue is recognised as the interest accrues. Service appropriations Service Appropriations are recognised as revenues at fair value in the period in which the Western Australian Museum gains control of the appropriated funds. The Western Australian Museum gains control of appropriated funds at the time those funds are deposited to the bank account or credited to the 'Amount receivable for services' (holding account), held at Treasury. Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the Western Australian Museum obtains control over the assets comprising the contributions, usually when cash is received. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. Royalties for Regions funds are recognised as revenue at fair value in the period in which the Western Australian Museum obtains control over the funds. The Western Australian Museum obtains control of the funds at the time the funds are deposited into the Western Australian Museum's bank account. Gains Realised and unrealised gains are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets. (f) Property, plant and equipment Capitalisation/expensing of assets Items of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total). Initial recognition and measurement Property, plant and equipment are initially recognised at cost. For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition. Subsequent measurement Subsequent to initial recognition of an asset, the revaluation model is used for the measurement of land and buildings and historical cost for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. In the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the gross carrying amount and the accumulated depreciation are restated proportionately. Fair value for restricted use land is determined by comparison with market evidence for land with similar approximate utility (high restricted use land) or market value of comparable unrestricted land (low restricted use land). Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset's fair value at the end of the reporting period. The most significant assumptions and judgements in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated economic life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Derecognition Upon disposal or derecognition of an item of property, plant and equipment or Museum collection, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. Asset revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 25 ‘Property, plant and equipment’ and note 26 ‘Museum collections'. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Buildings and monuments 50 years Plant, equipment and vehicles 5 to 20 years Office equipment 4 to 10 years Leasehold improvements Balance of the current terms of lease Land is not depreciated. (g) Museum collections Capitalisation/expensing of assets No capitalisation threshold is applied to Museum collection items. These items are considered to form part of a collection and are disclosed separately in the Statement of Financial Position. Initial recognition and measurement Collection items may be acquired through collection, purchase or donation. Acquisitions of collection items are recorded at cost when purchased and at fair value when donated. Subsequent measurement The collections of the Western Australian Museum are valued every five years and will be revalued in the financial year 2018–19. The revaluation of the collections is conducted by independent valuers using a combination of market values and recollection costs as applicable. Depreciation Collection items controlled by the Western Australian Museum are classified as heritage assets. They are anticipated to have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation is recognised in respect of these assets. (h) Intangible assets Capitalisation/expensing of assets Acquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income. Intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Western Australian Museum have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are: Software(a) 3 to 10 years (a) Software that is not integral to the operation of any related hardware Computer software Software that is an integral part of the related hardware is treated as property, plant and equipment. Software that is not an integral part of the related hardware is recognised as an intangible asset. Software costing less than $5,000 is expensed in the year of acquisition. Website costs Website costs are charged as expenses when they are incurred unless they relate to the acquisition or development of an asset when they may be capitalised and amortised. Generally, costs in relation to feasibility studies during the planning phase of a website, and ongoing costs of maintenance during the operating phase are expensed. Costs incurred in building or enhancing a website that can be reliably measured, are capitalised to the extent that they represent probable future economic benefits. (i) Impairment of Assets Property, plant and equipment and intangible assets are tested for any indication of impairment at the end of each reporting period. Where there is an indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is written down to the recoverable amount and an impairment loss is recognised. Where an asset measured at cost is written down to recoverable amount, an impairment loss is recognised in profit or loss. Where a previously revalued asset is written down to recoverable amount, the loss is recognised as a revaluation decrement in other comprehensive income. As the Western Australian Museum is a not-for-profit entity, unless a specialised asset has been identified as a surplus asset, the recoverable amount is the higher of an asset’s fair value less costs to sell and depreciated replacement cost. The risk of impairment is generally limited to circumstances where an asset’s depreciation is materially understated, where the replacement cost is falling or where there is a significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption or expiration of the asset’s future economic benefits and to evaluate any impairment risk from falling replacement costs. Intangible assets with an indefinite useful life and intangible assets not yet available for use are tested for impairment at the end of each reporting period irrespective of whether there is any indication of impairment. The recoverable amount of assets identified as surplus assets is the higher of fair value less costs to sell and the present value of future cash flows expected to be derived from the asset. Surplus assets carried at fair value have no risk of material impairment where fair value is determined by reference to market-based evidence. Where fair value is determined by reference to depreciated replacement cost, surplus assets are at risk of impairment and the recoverable amount is measured. Surplus assets at cost are tested for indications of impairments at the end of each reporting period. (j) Leases The Western Australian Museum holds operating leases for vehicles. Operating leases are expensed on a straight line basis over the lease term as this represents the pattern of benefits derived from the leased vehicles. (k) Financial instruments In addition to cash, the Western Australian Museum has two categories of financial instruments: Loans and receivables; and Financial liabilities measured at amortised cost. Financial instruments have been disaggregated into the following classes: Financial Assets Cash and cash equivalents Restricted cash and cash equivalents Receivables Amounts receivable for services Financial Liabilities Payables Other borrowings Initial recognition and measurement of financial instruments is at fair value which normally equates to the transaction cost or the face value. Subsequent measurement is at amortised cost using the effective interest method. The fair value of short-term receivables and payables is the transaction cost or the face value because there is no interest rate applicable and subsequent measurement is not required as the effect of discounting is not material. (l) Cash and cash equivalents For the purpose of the Statement of Cash Flows, cash and cash equivalent (and restricted cash and cash equivalent) assets comprise cash on hand and short-term deposits with original maturities of three months or less that are readily convertible to a known amount of cash and which are subject to insignificant risk of changes in value. (m) Accrued salaries Accrued salaries (see note 29 'Payables') represent the amount due to staff but unpaid at the end of the financial year. Accrued salaries are settled within a fortnight of the financial year end. The Western Australian Museum considers the carrying amount of the accrued salaries to be equivalent to its fair value. (n) Amounts receivable for services (holding account) The Western Australian Museum receives income from the State Government partly in cash and partly as an asset (holding account receivable). The accrued amount appropriated is accessible on the emergence of the cash funding requirement to cover leave entitlements and asset replacement. (o) Inventories Inventories are measured at the lower of cost or net realisable value. Costs are assigned by the method most appropriate for each particular class of inventory, with the majority being valued on an average cost basis. Inventories not held for resale are measured at cost unless they are no longer required, in which case they are measured at net realisable value. (p) Receivables Receivables are recognised at original invoice amount less an allowance for any uncollectible amounts (i.e. impairment). The collectability of receivables is reviewed on an ongoing basis and any receivables identified as uncollectible are written-off against the allowance account. The allowance for uncollectible amounts (doubtful debts) is raised when there is objective evidence that the Western Australian Museum will not be able to collect the debts. The carrying amount is equivalent to fair value as it is due for settlement within 30 days. (q) Payables Payables are recognised when the Western Australian Museum becomes obliged to make future payments as a result of a purchase of assets or services. The carrying amount is equivalent to fair value, as settlement is generally within 30 days. (r) Borrowings All loans payable are initially recognised at cost, being the fair value of the net proceeds received. Subsequent measurement is at amortised cost using the effective interest rate method. (s) Provisions Provisions are liabilities of uncertain timing or amount and are recognised where there is a present legal or constructive obligation as a result of a past event and when the outflow of resources embodying economic benefits is probable and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period Provisions — employee benefits All annual leave and long service leave provisions are in respect of employees’ services up to the end of the reporting period. Annual leave Annual leave is not expected to be settled wholly within 12 months after the end of the reporting period and is therefore considered to be 'other long term employee benefits'. the annual leave liability is recognised and measured at the present value of amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement. When assessing expected future payments consideration is given to expected future wage and salary levels including non-salary components such as employer superannuation contributions, as well as the experience of employee departures and periods of service. The expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity that match, as closely as possible, the estimated future cash outflows. The provision for annual leave is classified as a current liability as the Western Australian Museum does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Long service leave A liability for long service leave is recognised after an employee has completed ‘four’ [sic] seven years of service based on remuneration rates current as at the end of the reporting period. An actuarial assessment of long service leave was undertaken by PriceWaterhouseCoopers' Actuaries as at 30 June 2014 and determined that the liability measured using the short-hand measurement technique above was not materially different from the liability determined using present value of expected future payments. This calculation is consistent with the Western Australian Museum experience of employee retention and leave taken. Unconditional long service leave provisions are classified as current liabilities as the Western Australian Museum does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the reporting period. Pre-conditional and conditional long service leave provisions are classified as non-current liabilities because the Western Australian Museum has an unconditional right to defer the settlement of the liability until the employee has completed the requisite years of service. Superannuation The Government Employees Superannuation Board (GESB) and other fund providers administer public sector superannuation arrangements in Western Australia in accordance with legislative requirements. Eligibility criteria for membership in particular schemes for public sector employees varies according to commencement and implementation dates. Eligible employees contribute to the Pension Scheme, a defined benefit pension scheme closed to new members since 1987, or the Gold State Superannuation Scheme (GSS), a defined benefit lump sum scheme closed to new members since 1995. Employees commencing employment prior to 16 April 2007 who were not members of either the Pension Scheme or the GSS became non-contributory members of the West State Superannuation Scheme (WSS). Employees commencing employment on or after 16 April 2007 became members of the GESB Super Scheme (GESBS). From 30 March 2012, existing members of the WSS or GESBS and new employees became able to choose their preferred superannuation fund provider. The Western Australian Museum makes contributions to GESB or other fund provider on behalf of employees in compliance with the Commonwealth Government’s Superannuation Guarantee (Administration) Act 1992. Contributions to these accumulated schemes extinguish the Western Australian Museum's liability for superannuation charges in respect of employees who are not members of the Pension Scheme or GSS. The GSS is a defined benefit scheme for the purposes of employees and whole-of-government reporting. However, it is a defined contribution plan for agency purposes because the concurrent contributions (defined contributions) made by the Western Australian Museum to GESB extinguishes the agency’s obligations to the related superannuation liability. The Western Australian Museum has no liabilities under the Pension Scheme or the GSS. The liabilities for the unfunded Pension Scheme and the unfunded GSS transfer benefits attributable to members who transferred from the Pension Scheme, are assumed by the Treasurer. All other GSS obligations are funded by concurrent contributions made by the Western Australian Museum to the GESB. The GESB makes all benefit payments in respect of the Pension Scheme and GSS, and is recouped from the Treasurer for the employer's share. Provisions — other Employment on-costs Employment on-costs, including workers’ compensation insurance, are not employee benefits and are recognised separately as liabilities and expenses when the employment to which they relate has occurred. Employment on-costs are included as part of ‘Other expenses’ and are not included as part of the Western Australian Museum’s ‘Employee benefits expense’. The related liability is included in ‘Employment on-costs provision’. (t) Superannuation expense Superannuation expense is recognised in the profit or loss of the Statement of Comprehensive and comprises employer contributions paid to GSS (concurrent contributions), WSS, the GESBS, and other superannuation funds. (u) Assets and services received free of charge or for nominal cost Assets or services received free of charge or for nominal cost that the Western Australian Museum would otherwise purchase if not donated, are recognised as income at the fair value of the assets or services where they can be reliably measured. A corresponding expense is recognised for services received. Receipt of assets are recognised in the Statement of Financial Position. Assets or services received from other State Government agencies are separately disclosed under Income from State Government in the Statement of Comprehensive Income. (v) Comparative figures Comparative figures are, where appropriate, reclassified to be comparable with the figures presented in the current financial year. 3. Department of Culture and the Arts The Department of Culture and the Arts provides support to agencies in the Culture and Arts portfolio. The Department receives an appropriation for capital projects, global maintenance program and minor assets equipment as part of the PC Replacement Program. These resources provided to the Western Australian Museum, are paid for by the Department and have been treated as 'Services received free of charge' in the Statement of Comprehensive Income. Refer to note 19 ' Income from State Government' for information on services received free of charge. The Department provides shared corporate services to the Western Australian Museum that are not recognised in the Statement of Comprehensive Income. 4. Judgements made by management in applying accounting policies The preparation of financial statements requires management to make judgements about the application of accounting policies that have a significant effect on the amounts recognised in the financial statements. The Western Australian Museum evaluates these judgements regularly. Operating lease commitments The Western Australian Museum has entered into commercial leases rather than finance leases for motor vehicles. The Western Australian Museum has determined that the lessor retains substantially all the risks and rewards incidental to ownership of the vehicles. Accordingly, these leases have been classified as operating leases. 5. Key sources of estimation uncertainty Key estimates and assumptions concerning the future are based on historical experience and various other factors that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. Long Service Leave Several estimations and assumptions used in calculating the Western Australian Museum's long service provision include expected future salary rates, discount rates, employee retention rates and expected future payments. Changes in these estimations and assumptions may impact on the carrying amount of the long service leave provision. 6. Machinery of government change Arising from the machinery of government changes, employing powers under Public Sector Management Act 1994 and budget appropriations are now in place with effect from 1 July 2013 for the Western Australian Museum. Salary costs, superannuation, fringe benefits tax expenses which were previously appropriated to the Department of Culture and the Arts and treated as 'Services received free of charge' are now being appropriated direct to the Western Australian Museum. This has following impact: (a) An increase in the 'Appropriation received from State Government and a corresponding decrease in 'Services provided by the Department of Culture and the Arts'. See note 19 'Income from State Government'. (b) Employee benefit provisions, such as annual leave, long service leave and employment on-costs, previously held by the Department of Culture and the Arts are transferred to the Western Australian Museum with effect from 1 July 2013. See note 19 'Income from State Government' and 30 'Provisions'. (c) Account balances, such as accrued salaries and leave liability accounts with Treasury WA previously held by the Department of Culture and the Arts are transferred to the Western Australian Museum with effect from 1 July 2013. See note 19 'Income from State Government', note 20 'Restricted cash and cash equivalents' and note 24 'Amounts receivable for services (holding account)'. 7. Disclosure of changes in accounting policy and estimates Initial application of an Australian Accounting Standard The Western Australian Museum has applied the following Australian Accounting Standards effective for annual reporting periods beginning on or after 1 July 2013 that impacted on the Western Australian Museum: AASB 13 Fair Value Measurement This Standard defines fair value, sets out a framework for measuring fair value and requires disclosures about fair value measurements. There is no financial impact. AASB 119 Employee Benefits This Standard supersedes AASB 119 (October 2010), making changes to the recognition, presentation and disclosure requirements. The Western Australian Museum assessed employee leave patterns to determine whether annual leave is a short-term or long-term employee benefit. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material. AASB 1048 Interpretation of Standards This Standard supersedes AASB 1048 (June 2012), enabling references to the Interpretations in all other Standards to be updated by reissuing the service Standard. There is no financial impact. AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 [AASB 1, 2, 3, 4, 5, 7, 9, 2009-11, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119, 120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Int 2, 4, 12, 13, 14, 17, 19, 131 & 132] This Standard replaces the existing definition and fair value guidance in other Australian Accounting Standards and Interpretations as the result of issuing AASB 13 in September 2011. There is no financial impact. AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) [AASB 1, 8, 101, 124, 134, 1049 & 2011-8 and Int 14] This Standard makes amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 119 in September 2011. The resultant discounting of annual leave liabilities that were previously measured at the undiscounted amounts is not material. AASB 2012-2 Amendments to Australian Accounting Standards — Disclosures — Offsetting Financial Assets and Financial Liabilities [AASB 7 & 132] This Standard amends the required disclosures in AASB 7 to include information that will enable users of an entity’s financial statements to evaluate the effect or potential effect of netting arrangements, including rights of set-off associated with the entity’s recognised financial assets and recognised financial liabilities, on the Western Australian Museum’s financial position. There is no financial impact. AASB 2012-5 Amendments to Australian Accounting Standards arising from Annual Improvements 2009-11 Cycle [AASB 1, 101, 116, 132 & 134 and Int 2] This Standard makes amendments to the Australian Accounting Standards and Interpretations as a consequence of the annual improvements process. There is no financial impact. AASB 2012-6 Amendments to Australian Accounting Standards — Mandatory Effective Date of AASB 9 and Transition Disclosures [AASB 9, 2009-11, 2010-7, 2011-7 & 2011-8 This Standard amends the mandatory effective date of AASB 9 Financial Instruments to 1 January 2015 (instead of 1 January 2013). Further amendments are also made to numerous consequential amendments arising from AASB 9 that will now apply from 1 January 2015. There is no financial impact. AASB 2012-9 Amendments to AASB 1048 arising from the Withdrawal of Australian Int 1039 The withdrawal of Int 1039 Substantive Enactment of Major Tax Bills in Australia has no financial impact for the Western Australian Museum during the reporting period and at the balance date. Measurement of tax assets and liabilities continues to be measured in accordance with enacted or substantively enacted tax law pursuant to AASB 112.46-47. AASB 2012-10 Amendments to Australian Accounting Standards — Transition Guidance and Other Amendments [AASB 1, 5, 7, 8, 10, 11, 12, 13, 101, 102, 108, 112, 118, 119, 127, 128, 132, 133, 134, 137, 1023, 1038, 1039, 1049, & 2011-7 and Int 12] This Standard introduces a number of editorial alterations and amends the mandatory application date of Standards for not for profit entities accounting for interests in other entities. There is no financial impact. AASB 2013-9 Amendments to Australian Accounting Standards — Conceptual Framework, Materiality and Financial Instruments. Part A of this omnibus Standard makes amendments to other Standards arising from revisions to the Australian Accounting Conceptual Framework for periods ending on or after 20 December 2013. Other Parts of this Standard become operative in later periods. There is no financial impact for Part A of the Standard. Voluntary change in accounting policy The Western Australian Museum did not make any voluntary change in accounting policy in 2013–14. Future impact of Australian Accounting Standards not yet operative The Western Australian Museum cannot early adopt an Australian Accounting Standard unless specifically permitted by TI 1101 Application of Australian Accounting Standards and Other Pronouncements. Consequently, the Western Australian Museum has not applied early any of the following Australian Accounting Standards that have been issued that may impact the Western Australian Museum. Where applicable, the Western Australian Museum plans to apply these Australian Accounting Standards from their application date: Operative for Reporting Periods Beginning On/After Int 21 Levies This Interpretation clarifies the circumstances under which a liability to pay a government levy imposed should be recognised. There is no financial impact for the Western Australian Museum at the reporting date. 1 January 2014 AASB 9 Financial Instruments This Standard supersedes AASB 139 Financial Instruments: Recognition and Measurement, introducing a number of changes to accounting treatments. The mandatory application date of this Standard was amended to 1 January 2017. The Western Australian Museum has not yet determined the application or the potential impact of the Standard. 1 January 2018 AASB 10 Consolidated Financial Statements This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial Statements and Int 112 Consolidation — Special Purpose Entities, introducing a number of changes to accounting treatments. Mandatory application of this Standard was deferred by one year for not-for-profit entities by AASB 2012-10 Amendments to Australian Accounting Standards — Transition Guidance and Other Amendments. The adoption of the new Standard has no financial impact for the Western Australian Museum as it doesn't impact accounting for related bodies and the Western Australian Museum has no interests in other entities. 1 January 2014 AASB 11 Joint Arrangements This Standard, issued in August 2011, supersedes AASB 131 Interests in Joint Ventures, introduces new principles for determining the type of joint arrangement that exists, which are more aligned to the actual right and obligations of the parties to the arrangement. Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10. There is no financial impact for the Western Australian Museum as the new standard continues to require the recognition of the Western Australian Museum's share of assets and share of liabilities for the unincorporated joint operation. 1 January 2014 AASB 12 Disclosure of Interests in Other Entities This Standard, issued in August 2011, supersedes disclosure requirements under AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments in Associates and AASB 131 Interests in Joint Ventures. Mandatory application of this Standard was deferred for not-for-profit entities by AASB 2012-10. There is no financial impact. 1 January 2014 AASB 14 Regulatory Deferral Accounts The Western Australian Museum has not yet determined the application or the potential impact of the Standard. 1 January 2016 AASB 127 Separate Financial Statements This Standard, issued in August 2011, supersedes AASB 127 Consolidated and Separate Financial Statements, removing the consolidation requirements of the earlier standard whilst retaining the accounting and disclosure requirements for the preparation of separate financial statements. Mandatory application was deferred by one year for not-for-profit entities by AASB 2012-10. There is no financial impact. 1 January 2014 AASB 128 Investments in Associates and Joint Ventures This Standard, issued in August 2011, supersedes AASB 128 Investments in Associates, introducing a number of clarifications for the accounting treatments of changed ownership. Mandatory application was deferred for not-for-profit entities by AASB 2012-10. The adoption of the new Standard has no financial impact for the Western Australian Museum as it does not hold investments in associates and the accounting treatments for joint operations is consistent with current practice. 1 January 2014 AASB 1031 Materiality This Standard supersedes AASB 1031 (February 2010), removing Australian guidance on materiality that is not available in IFRSs and refers to other Australian pronouncements that contain guidance on materiality. There is no financial impact. 1 January 2014 AASB 1055 Budgetary Reporting The Standard requires specific budgetary disclosures in the financial statements of not for profit entities within the General Government Sector. The Western Australian Museum will be required to disclose additional budgetary information and explanations of major variances between actual and budgeted amounts, though there is no financial impact. 1 July 2014 AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 [AASB 1, 3, 4 ,5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Int 10 & 12] [modified by AASB 2010-7] 1 January 2015 AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) [AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Int 2, 5, 10, 12, 19 & 127] This Standard makes consequential amendments to other Australian Accounting Standards and Interpretations as a result of issuing AASB 9 in December 2010. The Western Australian Museum has not yet determined the application or the potential impact of the Standard. 1 January 2015 AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards [AASB 1, 2, 3, 5, 7, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Int 5, 9, 16 & 17] This Standard gives effect to consequential changes arising from the issuance of AASB 10, AASB 11, AASB 127 Separate Financial Statements and AASB 128 Investments in Associates and Joint Ventures. Mandatory application was deferred for not-for-profit entities by AASB 2012-10. The Western Australian Museum has analysed the suite of Consolidation and Joint Arrangements Standards and determined that no financial impact arises from adopting the various Standards. 1 January 2014 AASB 2012-3 Amendments to Australian Accounting Standards — Offsetting Financial Assets and Financial Liabilities [AASB 132] This Standard adds application guidance to AASB 132 to address inconsistencies identified in applying some of the offsetting criteria, including clarifying the meaning of ‘currently has a legally enforceable right of set-off’ and that some gross settlement systems may be considered equivalent to net settlement. The Western Australian Museum does not routinely hold financial assets and financial liabilities that it intends to settle on a net basis, therefore there is no financial impact. 1 January 2014 AASB 2013-3 Amendments to AASB 136 — Recoverable Amount Disclosures for Non-Financial Assets. This Standard introduces editorial and disclosure changes. There is no financial impact. 1 January 2014 AASB 2013-4 Amendments to Australian Accounting Standards — Novation of Derivatives and Continuation of Hedge Accounting [AASB 139] This Standard permits the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to the central counterparty as a consequence of laws or regulations. The Western Australian Museum does not routinely enter into derivatives or hedges, therefore there is no financial impact. 1 January 2014 AASB 2013-8 Amendments to Australian Accounting Standards — Australian Implementation Guidance for Not-for-Profit Entities — Control and Structured Entities [AASB 10, 12 & 1049] The amendments, issued in October 2013, provide significant guidance in determining whether a not-for-profit entity controls another entity when financial returns are not key attributes of the investor's relationship. The Standard has no financial impact in its own right, rather the impact results from the adoption of the amended AASB10. 1 January 2014 AASB 2013-9 Amendments to Australian Accounting Standards — Conceptual Framework, Materiality and Financial Instruments. This omnibus Standard makes amendments to other Standards arising from the deletion of references to AASB 1031 in other Standards for periods beginning on or after 1 January 2014 (Part B), and, defers the application of AASB 9 to 1 January 2017 (Part C). The Western Australian Museum has not yet determined the application or the potential impact of AASB 9, otherwise there is not financial impact for Part B. 1 January 2014 1 January 2017 AASB 2014-1 Amendments to Australian Accounting Standards The Western Australian Museum has not yet determined the application or the potential impact of the Standard. 1 July 2014 1 January 2015 1 January 2016 1 January 2018 8. Employee benefits expense Employee benefits expense 2014 2013 Total $18,675,000 $17,817,000 Wages and salaries(a) $15,031,000 $14,342,000 Superannuation — defined contribution plans(b) $1,612,000 $1,556,000 Annual leave $1,357,000 $1,308,000 Personal leave $191,000 - Long service leave $259,000 $486,000 Other related expenses $225,000 $125,000 (a) Includes the value of the fringe benefit to the employee plus the fringe benefits tax component, leave entitlements. (b) Defined contribution plans include West State, Gold State and GESB Super Scheme and other eligible funds. Employment on-costs, such as workers’ compensation insurance, are included at note 13 ‘Other expenses’. Employment on-costs liability is included at note 30 ‘Provisions’. See note 6 ‘Machinery of government change’ for information on opening leave liabilities balance. 9. Supplies and services Supplies and services 2014 2013 Total $6,829,000 $6,341,000 Consultants and contractors $1,949,000 $2,124,000 Consumables $690,000 $747,000 Insurance premiums $652,000 $445,000 Advertising $336,000 $315,000 Repairs and maintenance $328,000 $318,000 Exhibition fees $1,164,000 $786,000 Freight and cartage $263,000 $243,000 Lease and hire costs $265,000 $281,000 Travel $306,000 $306,000 Communications $199,000 $179,000 Printing $145,000 $204,000 Sundry equipment $185,000 $135,000 Legal fees $8,000 $2,000 Other $339,000 $256,000 10. Depreciation and amortisation expense Depreciation 2014 2013 Total depreciation $1,706,000 $2,160,000 Depreciation Buildings $1,370,000 $1,708,000 Plant and equipment $220,000 $251,000 Furniture and fittings $116,000 $201,000 Amortisation 2014 2013 Total amortisation $271,000 $272,000 Leasehold improvements $271,000 $272,000 Intangibles - - Depreciation and amortisation expense 2014 2013 TOTAL DEPRECIATION AND AMORTISATION $1,977,000 $2,432,000 Total depreciation $1,706,000 $2,160,000 Total amortisation $271,000 $272,000 11. Accommodation expenses Accommodation expenses 2014 2013 Total $3,475,000 $3,011,000 Utilities $1,630,000 $1,868,000 Repairs and maintenance $1,072,000 $400,000 Cleaning $385,000 $366,000 Security $254,000 $259,000 Other $134,000 $118,000 12. Grants and subsidies Grants and subsidies 2014 2013 Total $295,000 $49,000 Refund of restricted grants $63,000 $39,000 Payment to Curtin University Project ‘HMAS Sydney survey’ $165,000 - Friends of the Western Australian Museum $29,000 - University of Western Australia contribution $30,000 - Arc Linkage Adelaide University $5,000 $5,000 Other contribution $3 $5 13. Other expenses Other expenses 2014 2013 $2,455,000 $449,000 Workers’ compensation insurance $292,000 $265,000 Other(a) $2,163,000 $184,000 (a) Include $1.9 million paid to Department of Culture and Arts for prior years salary cost previously recognised as services received free of charge. 14. User charges and fees User charges and fees 2014 2013 Total $2,349,000 $1,651,000 User charges $1,424,000 $805,000 Fees $925,000 $846,000 15. Trading profit Trading profit 2014 2013 TRADING PROFIT $1,535,000 $1,695,000 Sales $2,540,000 $2,361,000 Opening inventory ($905,000) ($850,000) Purchases ($829,000) ($721,000) Closing inventory $729,000 $905,000 16. Commonwealth grants and contributions Commonwealth grants and contributions 2014 2013 Total $414,000 $210,000 Recurrent $414,000 $210,000 Included in recurrent grants are non-reciprocal grants received from various Commonwealth providers with remaining unspent funds as follows: 2014 2013 Total $235,000 $216,000 Australian Biological Research Study $34,000 $7,000 Commonwealth Scientific and Industrial Research Organisation - $86,000 Department of the Environment $175,000 $86,000 Online Zoological Collections of Australian Museums $26,000 $37,000 17. Interest revenue Interest revenue 2014 2013 Total $133,000 $85,000 Interest revenue $133,000 $85,000 18. Other revenue Other revenue 2014 2013 Total $5,679,000 $4,041,000 Donations and contributions $1,362,000 $2,492,000 Grants and subsidies $1,834,000 $175,000 Recoups of expenditure $2,350,000 $1,337,000 Royalties - $1,000 Other revenue $133,000 $36,000 19. Income from State Government Appropriation received during the year 2014 2013 $30,522,000 $7,564,000 Service appropriation(a) $30,522,000 $7,564,000 Liabilities assumed by other State Government agencies during the period(b) 2014 2013 Total liabilities assumed ($4,492,000) - Annual leave provision ($1,374,000) - Long service leave provision ($2,484,000) - Provision for employment on-costs ($634,000) - Assets transferred from/(to) other State Government agencies during the period(b) 2014 2013 $1,236,000 - Accrued salaries 27th pay holding account with Treasury WA $508,000 Leave liability holding account with Treasury WA $728,000 - Services received free of charge from other State Government agencies during the period(c) Determined on the basis of the following estimates provided by agencies. Services provided by the Department of Culture and the Arts 2014 2013 Total $119,000 $15,985,000 Salaries, wages, allowances, employee reimbursements, superannuation and fringe benefit tax - $15,888,000 Minor equipment — PC Replacement Program $119,000 $97,000 Services provided by the State Solicitor’s Office 2014 2013 Total $5,000 $2,000 Services provided by the State Solicitor’s Office $5,000 $2,000 State grants and contributions(d) 2014 2013 Total $141,000 $1,305,000 State grants and contributions(d) $141,000 $1,305,000 TOTAL INCOME FROM STATE GOVERNMENT 2014 2013 TOTAL INCOME FROM STATE GOVERNMENT $27,531,000 $24,856,000 TOTAL INCOME FROM STATE GOVERNMENT $27,531,000 $24,856,000 (a) Service appropriations fund the net cost of services delivered. Appropriation revenue comprises a cash component and a receivable (asset). The receivable (holding account) comprises the depreciation expense for the year and any agreed increase in leave liability during the year. See note 6 ‘Machinery of government change’ for the increase in Service appropriation. (b) Discretionary transfers of assets (including grants) and liabilities between State Government agencies are reported under Income from State Government. Accrued salaries and leave liability accounts with Treasury WA as well as the annual leave, long service leave and on-costs provisions have been transferred from Department of Culture and the Arts to the Western Australian Museum. See note 6 ‘Machinery of government change’, note 24 ‘Amounts receivable for services (holding account)’ and note 30 ‘Provisions’. (c) Assets or services received free of charge or for nominal cost are recognised as revenue at fair value of the assets and/or services that can be reliably measured and which would have been purchased if they were not donated. Contributions of assets or services in the nature of contributions by owners are recognised direct to equity. Refer to note 6 ‘Machinery of government change’ for the decrease in services received free of charge. (d) Included in State grants and contributions are non-reciprocal grants received from various State Government providers with remaining unspent funds as follows: Remaining unspent State grant funds 2014 2013 Total $1,055,000 $1,327,000 Department of Culture and the Arts $91,000 $83,000 Department of Environment and Conservation $939,000 $1,243,000 Western Australian Marine Science Institution $18,000 - Department of Parks and Wildlife $7,000 - Gascoyne Development Commission - $1,000 20. Restricted cash and cash equivalent Restricted cash and cash equivalent 2014 2013 TOTAL RESTRICTED CASH AND CASH EQUIVALENT 2,956,000 2,415,000 Current Specific purpose grant funds(a) 2,313,000 2,415,000 Non-current Accrued salaries holding account with Treasury WA(b) 643,000 - (a) Cash held in these accounts includes specific purpose account balances and unspent specific purpose grants. (b) Funds held in the holding account at WA Treasury for the purpose of meeting the 27th pay in a financial year that occurs every 11th year (2015–16). See also note 6 ‘Machinery of government change’. 21. Inventories Current 2014 2013 Total $729,000 $905,000 Inventories held for resale: Finished goods Museum publications $275,000 $358,000 Museum shops' stock $454,000 $547,000 22. Receivables Current 2014 2013 Total current $1,807,000 $411,000 Receivables $1,502,000 $381,000 Accrued interest $46,000 $27,000 GST receivable $259,000 $3,000 The Western Australian Museum does not hold any collateral or other credit enhancements as security for receivables. 23. Other current assets Current 2014 2013 TOTAL OTHER CURRENT ASSETS $1,173,000 - Insurance prepaid $628,000 - Exhibition fees — History of the World in 100 objects $545,000 - 24. Amount receivable for services Non-current 2014 2013 $31,145,000 $27,839,000 Asset replacement(a) $30,417,000 $27,839,000 Leave liability(b) $728,000 - (a) Represents the non-cash component of service appropriations. It is restricted in that it can only be used for asset replacement or payment of leave liability. See note 2(n) ‘Amount receivable for services (holding account)’. (b) Represents leave liability holding account with Treasury WA. See also note 6 ‘Machinery of government’ and note 19 ‘Income from State Government’. 25. Property, plant and equipment Land 2014 2013 Total $26,727,000 $27,226,000 At fair value(a) $26,727,000 $27,226,000 Accumulated impairment losses - - Buildings 2014 2013 Total $59,739,000 $61,521,000 At fair value(a) $59,739,000 $61,521,000 Accumulated depreciation - - Accumulated impairment losses - - Leasehold improvements 2014 2013 Total $8,078,000 $8,349,000 At cost $10,892,000 $10,892,000 Accumulated amortisation ($2,814,000) ($2,543,000) Accumulated impairment losses - - Computers, plant, equipment and transport 2014 2013 Total $875,000 $899,000 At cost $4,590,000 $4,657,000 Accumulated depreciation ($3,715,000) ($3,758,000) Accumulated impairment losses - - Furniture and fittings 2014 2013 Total $506,000 $617,000 At cost $4,974,000 $4,969,000 Accumulated depreciation ($4,468,000) ($4,352,000) Accumulated impairment losses - - Property, plant and equipment total 2014 2013 Property, plant and equipment total $95,926,000 $98,612,000 (a) Land and buildings were revalued as at 1 July 2013 by the Western Australian Land Information Authority (Valuation Services). The valuations were performed during the year ended 30 June 2014 and recognised at 30 June 2014. In undertaking the revaluation, fair value was determined by reference to market values for land: $1,017,300 (2013: $1,017,100). For the remaining balance, fair value of buildings was determined on the basis of depreciated replacement cost and the fair value of land was determined on basis of comparison with market evidence for land with low level utility (high restricted use land). Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of the reporting period 2014 are set out in the table below. 2014 Land Buildings Leasehold Improvements Computer, Plant, Equipment and Vehicles Furniture and Fittings Total CARRYING AMOUNT AT END OF YEAR $26,727,000 $59,739,000 $8,078,000 $875,000 $506,000 $95,926,000 Carrying amount at start of year $27,226,000 $61,521,000 $8,349,000 $900,000 $616,000 $98,612,000 Additions - - - $237,000 $6,000 $243,000 Transfers - - - - - - Other disposals ($397,000) ($149,000) - ($42,000) - ($588,000) Revaluation increments/(decrements) ($102,000) ($263,000) - - - ($365,000) Impairment losses - - - - - - Impairment losses reversed - - - - - - Depreciation - ($1,370,000) ($271,000) ($220,000) ($116,000) ($1,977,000) Reconciliations of the carrying amounts of property, plant, equipment and vehicles at the beginning and end of the reporting period 2013 are set out in the table below. 2013 Land Buildings Leasehold Improvements Computer, Plant, Equipment and Vehicles Furniture and Fittings Total CARRYING AMOUNT AT END OF YEAR $27,226,000 $61,521,000 $8,349,000 $900,000 $616,000 $98,612,000 Carrying amount at start of year $27,140,000 $64,891,000 $8,622,000 $961,000 $465,000 $102,079,000 Additions - - - $189,000 $352,000 $541,000 Transfers - - - - - - Other disposals - - - - - - Revaluation increments/(decrements) $86,000 ($1,662,000) - - - ($1,576,000) Impairment losses - - - - - - Impairment losses reversed - - - - - - Depreciation - ($1,708,000) ($273,000) ($250,000) ($201,000) ($2,432,000) 26. Museum Collections Museum Collections 2014 2013 $347,063,000 $438,658,000 At fair value $347,063,000 $438,658,000 At cost - - Accumulated depreciation - - Accumulated impairment losses - - 2014 2013 CARRYING AMOUNT AT END OF YEAR $347,063,000 $438,658,000 Carrying value at start of year(a) $438,658,000 $437,130,000 Additions $3,000 $19,000 Donations $798,000 $1,509,000 Disposals - - Transfers - - Revaluation decrements(b) ($92,396,000) - The Western Australian Museum has appointed Rodney Hyman Asset Services Pty Limited (RHAS) following a competitive tendering process to value the collections. RHAS is led by principals Rodney Hyman and Cameron Dunsford. Rodney Hyman — Chartered Machinery and Business Assets Valuer, Certified Practising Valuer, FRICS, LEAPI, ASA, FPINZ, FAMI, NCJV, CPM. Cameron Dunsford — Certified Practising Valuer, BBus FAPI, MRICS, SPINZ. (a) The Western Australian Museum has performed its 5 yearly collection valuation in the current financial year. During the collection valuation process, a review of the previous valuation done in 2009 was conducted and the Collections’ values were adjusted by $198.970 million to correct an error in the 2009 valuation. See also note 32 ‘Equity’. (b) The fair value of the Collections has been based on the AASB 13 ‘Fair value measurement’. After the current valuation exercise, the Collections have recorded a decrement of $92.396 million. Prior period error 2009 Value Restated value as at 30 Jun 2009 $430,943,000 Balance as at 30 Jun 2009 $629,913,000 Revaluation adjustment ($198,970,000) 2010 Value Restated value as at 30 Jun 2010 $431,661,000 Additions in 2010 $11,000 Donations in 2010 $707,000 2011 Value Restated value as at 30 Jun 2011 $434,242,000 Additions in 2011 $1,082,000 Donations in 2011 $1,499,000 2012 Value Restated value as at 30 Jun 2012 $437,130,000 Additions in 2012 $2,888,000 Donations in 2012 - 27. Fair value measurements Assets measured at fair value 2014 Level 1 Level 2 Level 3 Fair Value at End of Period Total - $60,306,000 $373,223,000 $433,529,000 Land (note 25) - $1,017,000 $25,710,000 $26,727,000 Buildings (note 25) - - $59,739,000 $59,739,000 Museum Collections (note 26) - $59,289,000 $287,774,000 $347,063,000 There were no transfers between Levels 1, 2 or 3 during the period. Valuation techniques to derive Level 2 fair values Level 2 fair values of land are derived using the market approach. The land has been valued by Western Australian Land Information Authority (Valuation Services), market evidence of sales prices of comparable land in close proximity is used to determine price per square metre. The Level 2 fair values of collections are also derived using the market approach. Under this approach market evidence of sales prices of identical or similar collections in recent transactions have been used to determine price of the collections. It may be necessary to adjust the price information from other transactions to reflect any differences in the terms of the actual transaction and the basis of value and any assumptions to be adopted in the valuation being undertaken. Fair value measurements using significant unobservable inputs (Level 3) 2014 LAND BUILDINGS COLLECTIONS FAIR VALUE AT END OF PERIOD $25,710,000 $59,739,000 $287,774,000 Fair Value at start of period $27,226,000 $61,521,000 $438,658,000 Additions - - $801,000 Revaluation increments/(decrements) recognised in ‘Profit or Loss’ - - - Revaluation increments/(decrements) recognised in ‘Other Comprehensive Income’ ($102,000) ($263,000) ($92,396,000) Transfers (from/(to) Level 2) ($1,017,000) ($59,289,000) Disposals ($397,000) ($149,000) - Depreciation Expense - ($1,370,000) - There were no gains or losses included in the profit or loss, under ‘Other gains’ and no change in unrealised gains or losses for the period for the assets held at the end of the reporting period. Valuation processes There were no changes in valuation techniques during the period. Transfers in and out of a fair value level are recognised on the date of the event or change in circumstances that caused the transfer. Transfers are generally limited to assets newly classified as non-current assets held for sale as Treasurer’s instructions require valuations of land, buildings and infrastructure to be categorised within Level 3 where the valuations will utilise significant Level 3 inputs on a recurring basis. Fair value for existing use specialised buildings and infrastructure assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. Depreciated replacement cost is the current replacement cost of an asset less accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired economic benefit, or obsolescence, and optimisation (where applicable) of the asset. Current replacement cost is generally determined by reference to the market-observable replacement cost of a substitute asset of comparable utility and the gross project size specifications. Fair value for restricted use of land based on market value, by either using market evidence of sales of comparable land that is unrestricted less restoration costs to return the site to a vacant and marketable condition (low restricted use land), or, comparison with market evidence for land with low level utility (high restricted use land). Significant Level 3 inputs used by the Western Australian Museum are derived and evaluated as follows: Historical cost per square metre floor area (m2) The costs of constructing specialised buildings with similar utility are extracted from financial records of the Western Australian Museum, then indexed by movement in CPI. Consumed economic benefit/obsolescence of asset These are estimated by the Western Australian Land Information Authority (Valuation Services). Selection of land with restricted utility Fair value for restricted use land determined by comparison with market evidence for land with low level utility. Relevant comparators of land with low level utility are selected by Western Australian Land Information Authority (Valuation Services). Recollection cost of the Collections The cost approach is based on the principle that the price that a buyer in the market would pay no more for an asset than the cost to obtain an asset of equal utility, whether by purchase, by construction or by fieldwork. The costs of the fieldworks for collecting collections are extracted from financial records of the Western Australian Museum. Information About Significant Unobservable Inputs (level 3) in Fair Value Measurements Valuation Technique Unobservable Inputs Range of Unobservable Inputs (weighted Average) Relationship of Unobservable Inputs to Fair Value Description and fair value as at 30 June 2014 Land ($25,710,000) Current use Selection of reserve land with similar approximate utility $0–$0.33 per m2 ($0.03 per m2) Higher value of similar land increases estimated fair value. Selection of land with similar approximate utility $125–$2,279 per m2 ($635 per m2) Higher value of similar land increases estimated fair value. Building ($59,739,000) Depreciated replacement cost Consumed economic benefit 2%–2.09% per year (2.04% per year) Greater consumption benefit lowers the fair value. Collections ($287,784,000) Depreciated replacement cost Historical cost per collections $0.08–$2.2m ($27 per object on average) Higher historical cost increases the fair value. Reconciliations of the opening and closing balances are provided in notes 25 and 26. Basis of Valuation In the absence of market-based evidence, due to the specialised nature of some non-financial assets, these assets are valued at Level 3 of the fair value hierarchy on an existing use basis. The existing use basis recognises that restrictions or limitations have been placed on their use and disposal when they are not determined to be surplus to requirements. These restrictions are imposed by virtue of the assets being held to deliver a specific community service and the Western Australian Museum’s enabling legislation. 28. Impairment of assets There were no indications of impairment to property, plant and equipment and intangible assets at 30 June 2014. The Western Australian Museum held no goodwill or intangible assets with an indefinite useful life during the reporting period. At the end of the reporting period there were no intangible assets not yet available for use. All surplus assets at 30 June 2014 have either been classified as assets held for sale or written off. 29. Payables Current 2014 2013 TOTAL PAYABLES $1,419,000 $4,358,000 Trade payables $358,000 $89,000 Accrued expenses $865,000 $3,143,000 GST payable $50,000 $64,000 Other $146,000 $1,062,000 30. Provisions Current 2014 2013 Total $3,289,000 - Employee benefits provisions: Annual leave(a) $1,212,000 - Long service leave(b) $1,577,000 - Purchase leave(c) $19,000 - Other provisions: Employment on-costs(d) $481,000 - Non-current 2014 2013 Total $698,000 - Employee benefits provisions: Long service leave(b) $627,000 - Other provisions: Employment on-costs(d) $71,000 - (a) Annual leave liabilities have been classified as current as there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows: 2014 2013 Total 1,212,000 - Within 12 months of the end of the reporting period $941,000 - More than 12 months after the reporting period $271,000 - (b) Long service leave liabilities have been classified as current where there is no unconditional right to defer settlement for at least 12 months after the end of the reporting period. Assessments indicate that actual settlement of the liabilities is expected to occur as follows: 2014 2013 Total $2,204,000 - Within 12 months of the end of the reporting period $1,577,000 - More than 12 months after the reporting period $627,000 - (c) Provision for purchased leave relates to Public Service employees who have entered into an agreement to self-fund up to an additional 10 weeks leave per calendar year. The provision recognises the value of salary set aside for employees and is measured at the undiscounted amounts expected to be paid when the liabilities are settled. (d) The settlement of annual and long service leave liabilities gives rise to the payment of employment on-costs including workers’ compensation insurance. The provision is the present value of expected future payments. The associated expense, apart from the unwinding of the discount (finance cost), is disclosed in note 13 ‘Other expenses’. (e) Please refer to note 6 ‘Machinery of government change’ for information on the leave transfer. Movement in other provisions Movements in each class of provisions during the financial year, other than employee benefits, are set out below: Employment on-cost provision 2014 2013 CARRYING AMOUNT AT END OF PERIOD $552,000 - Carrying amount at start of period - - Additional provisions recognised $552,000 - Payments/other sacrifices of economic benefits - - 31. Other liabilities Current 2014 2013 Total $57,000 $7,000 Income received in advance $51,000 - Unclaimed monies $6,000 $7,000 32. Equity The Western Australian Government holds the equity interest in the Western Australian Museum on behalf of the community. Equity represents the residual interest in the net assets of the Western Australian Museum. The asset revaluation surplus represents that portion of equity resulting from the revaluation of non-current assets. Contributed equity 2014 2013 Total distributions to owners ($545,000) - Balance at end of period $14,671,000 $15,216,000 Balance at start of period $15,216,000 $15,216,000 Contributions by owners Capital appropriation - - Distributions to owners Transfer of net assets to other agencies: Land sale in Geraldton ($545,000) - Reserves 2014 2013 Balance at end of period $206,188,000 $298,949,000 Asset revaluation surplus Balance at start of period(a) $298,949,000 $300,525,000 Net revaluation increments/(decrements): Land ($102,000) $86,000 Buildings ($263,000) ($1,662,000) Museum Collections ($92,396,000) - Accumulated surplus 2014 2013 Balance at end of period $255,020,000 $251,085,000 Balance at start of period $251,085,000 $248,646,000 Result for the period $3,935,000 $2,439,000 TOTAL EQUITY AT END OF PERIOD 2014 2013 TOTAL EQUITY AT END OF PERIOD $475,879,000 $565,250,000 Contributed equity $14,671,000 $15,216,000 Reserves $206,188,000 $298,949,000 Accumulated surplus $255,020,000 $251,085,000 (a) During the current collection valuation process, a review of the previous valuation done in 2009 was conducted and the asset revaluation surplus were adjusted by $198.970 million to correct an error in the 2009 valuation. See also note 26 ‘Museum Collections’. Prior period error 2009 Value Restated value as at 30 Jun 2009 $308,994,000 Balance as at 30 Jun 2009 $507,964,000 Revaluation adjustment ($198,970,000) Net revaluation increments/(decrements) in 2010 Value Restated value as at 30 Jun 2010 $310,873,000 Land ($176,000) Buildings $2,055,000 Net revaluation increments/(decrements) in 2011 Value Restated value as at 30 Jun 2011 $308,037,000 Land $231,000 Buildings ($3,067,000) Net revaluation increments/(decrements) in 2012 Value Restated value as at 30 Jun 2012 $300,525,000 Land ($4,011,000) Buildings ($3,501,000) 33. Notes to the Statement of Cash Flows Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: 2014 2013 Total $3,499,000 $3,190,000 Cash and cash equivalents $543,000 $775,000 Restricted cash and cash equivalents(a) $2,956,000 $2,415,000 (a) See note 20 ‘Restricted cash and cash equivalents’ Reconciliation of net cost of services to net cash flows provided by/used in operating activities 2014 2013 NET CASH USED IN OPERATING ACTIVITIES ($28,080,000) ($5,275,000) Net cost of services ($23,596,000) ($22,417,000) Non-cash items Depreciation and amortisation expense(a) $1,977,000 $2,432,000 Resources received free of charge(b) $124,000 $15,985,000 Assets assumed — consumables (minor equipment)(b) - - Donations to collection(c) ($798,000) ($1,528,000) Adjustment for other non-cash items $43,000 - (Increase)/decrease in assets Current receivables(d) ($1,140,000) ($26,000) Current inventories $177,000 ($55,000) Other assets ($1,174,000) $3,000 Increase/(decrease) in liabilities: Current payables(d) ($2,914,000) $757,000 Other current liabilities ($455,000) - Borrowings - ($19,000) Net GST receipts/(payments)(e) ($464,000) ($447,000) Change in GST in receivables/payables(f) $140,000 $40,000 (a) See note 10 ‘Depreciation and amortisation expense’. (b) See note 19 ‘Income from State Government’. (c) See note 26 ‘Museum Collections’. (d) Note that the Australian Taxation Office receivable/payable in respect of GST and the receivable/payable in respect to the sale/purchase of non-current assets are not included in these items as they do not form part of the reconciling items. (e) This is the net GST paid/received, i.e. cash transactions. (f) This reverses out the GST in receivables and payables. 34. Commitments Non-cancellable operating lease commitments Commitments for minimum lease payments are payable as follows: 2014 2013 $106,000 $114,000 Within 1 year $38,000 $39,000 Later than 1 year and not later than 5 years $68,000 $75,000 The 13 motor vehicle leases (2013: 12 leases) are considered non-cancellable operating leases with lease expenditure payable monthly in advance. These commitments are all inclusive of GST. 35. Contingent liabilities and contingent assets At the reporting date, the Western Australian Museum had no contingent liabilities or assets. 36. Events occurring after the end of the reporting period There are no significant events occurring after the end of the reporting period that would have a material financial effect on the financial statements of the Western Australian Museum. 37. Explanatory statement This statement provides details of any significant variations between estimates and actual results for 2014 and between the actual results for 2013 and 2014. Significant variations are considered to be those greater than 10% and $100,000. Significant variances between estimated and actual result for 2014 Expenses ESTIMATE 2014 ACTUAL 2014 VARIATION OVER/(UNDER) Employee benefits expense $20,966,000 $18,675,000 ($2,291,000) Accommodation expenses $3,639,000 $3,475,000 ($164,000) Grants and subsidies $48,000 $295,000 $247,000 Cost of sales $704,000 $1,005,000 $301,000 Other expenses $751,000 $2,455,000 $1,704,000 Income ESTIMATE 2014 ACTUAL 2014 VARIATION OVER/(UNDER) User charges and fees $1,977,000 $2,349,000 $372,000 Sales $2,155,000 $2,540,000 $385,000 Commonwealth grants and contributions $125,000 $414,000 $289,000 Other revenue $3,971,000 $5,679,000 $1,708,000 Employee benefits expense The Employee benefits expense shows an underspend of $2.291 million when compared to the budget. This is attributed mainly to late commencement of the Gorgon Project and some vacant positions which had not been filled due to the recruitment freeze. Accommodation expenses The Western Australian Museum has a favourable variance in accommodation expenses of $0.164 million compare to budget. The saving has been achieved by applying budgetary controls on spending and works are prioritised on urgency. Grants and subsidies The increase in grant payment in 2014 consists of a refund of a restricted grant $0.063 million and $0.165 million for the payment made to the University of Western Australia for work on the HMAS Sydney (II) project. See to note 12 ‘Grants and subsidies’ for more information on grants. Cost of sales The increase in cost of sales of $0.301 million compared to budget is explained by the increase in merchandise purchased for Secrets of the Afterlife and the Dinosaur Discovery exhibition which will end in August 2014. Other expenses The other expenses show an overspend of $1.704 million. A one-off payment of $1.889 million has been made to the Department of Culture and the Arts (DCA) for previous years salary cost paid on behalf of the Western Australian Museum. Note that previously, the salaries paid by DCA were accounted in services received free of charge. User charges and fees The user charge and fees have increased by $0.372 million compared to budget. This is partly explained by the high number of visitors to the Dinosaur Discovery exhibition compared to budget. Sales The sales figures has increased by $0.385 million compared to budget. This is partly explained by the increased sale of merchandise in the Secret of the Afterlife and the Dinosaur Discovery exhibitions. Commonwealth grants and contributions The Western Australian Museum has been able to secure an additional Commonwealth grant for the HMAS Sydney (II) and HSK Kormoran — survey and management of historic shipwrecks which was not initially budgeted. Other revenue Other revenue shows a surplus of $1.708 million compared to the budget. The surplus consists of donated collections valued at $0.798 million, recoup to the Department of Culture and the Arts (DCA) for capital works for the amount of $0.520 million and additional recoups to DCA for the New Museum Projects for the amount of $0.240 million. The Western Australian Museum has received additional grant income and on-cost recoup to contract accounts which amounted to $0.150 million. Significant variances between actual results for 2013 and 2014 Expenses 2014 2013 VARIATION OVER/(UNDER) Employee benefits expense $18,675,000 $17,817,000 $858,000 Supplies and services $6,829,000 $6,341,000 $488,000 Depreciation and amortisation expense $1,977,000 $2,432,000 ($455,000) Accommodation expenses $3,475,000 $3,011,000 $464,000 Grant and subsidies $295,000 $49,000 $246,000 Cost of sales $1,005,000 $666,000 $339,000 Other expenses $2,455,000 $449,000 $2,006,000 Income 2014 2013 VARIATION OVER/(UNDER) User charges and fees $2,349,000 $1,651,000 $698,000 Sales $2,540,000 $2,361,000 $179,000 Commonwealth grants and contributions $414,000 $210,000 $204,000 Service appropriation $30,522,000 $7,564,000 $22,958,000 Services received free of charge $124,000 $15,987,000 ($15,863,000) State grants and contributions $141,000 $1,305,000 ($1,164,000) Employee benefits expense The increase of $0.858 million in employee benefit expense relates mostly to the expenditure on the New Museum Project and grant projects. The Director for the New Museum Project has been appointed together with the Team Leaders and other staff. Additional staff have been employed to work on the Gorgon Project. Supplies and services The increase in supplies and services of $0.488 million is explained as follows: (a) additional expenditure on the New Museum Project and capital works which amounted to $0.663 million, (b) an increase in the insurance premium for the amount of $0.255 million, (c) additional expenditure on exhibition constructions for the amount of $0.127 million. The increase in supplies and services is partially offset by the reclassification of contract property for plant and equipment to accommodation expense ($0.516 million). Depreciation and amortisation expense The reduction in depreciation and amortisation expense of $0.455 million in 2014 is attributable to the reduction in building valuation undertaken at the end of the last financial year and some furniture and fittings and equipmemt which were fully depreciated during the year. Accommodation expense The contract property for plant and equipment was initially classified in supplies and services in year 2013. This expenditure amounted to $0.516 million in 2014. Grant and subsidies The increase in grant payments in 2014 consists of a refund of a restricted grant $0.063 million and $0.165 million for payment made to the University of Western Australia for work on the HMAS Sydney (II) project. See note 12 ‘Grant and subsidies’. Cost of sales The increase in the cost of sales of $0.339 million is attributed to the purchase of merchandise and publications in the year 2014. Other expenses Other expenses in 2014 includes a one-off payment of $1.889 million to the Department of Culture and the Arts (DCA) for prior years salary cost previously accounted for Services received free of charge. User charges and fees The increase in user charges and fees in 2014 of $0.698 million compared to 2013 relates to the more entrance fees for exhibitions like Secrets of the Afterlife and Dinosaur Discovery. Sales The increase in sales by $0.179 million is mostly attributed to the shop sales of merchandise for the Dinosaur Discovery exhibition. Commonwealth grants and contributions The WA Museum was able to secure additional Commonwealth grant for the HMAS Sydney (II) and HSK Kormoran — survey and management of historic shipwrecks in 2014. Service appropriation The service appropriation is higher as Western Australian Museum is now receiving the salary appropriation from the State government following the Machinery of government change. See note 6 ‘Machinery of government change’. Services received free of charge The reduction in Services received free of charge is mainly attributable to the Machinery of Government change. In the previous year the Department of Culture and the Arts (DCA) was paying for the employee benefit expense on behalf of the Western Australian Museum. As from 1 July, the employee benefit expense are paid by the Western Australian Museum. State grants and contributions State grants and contributions were lower in the year 2014 as the Western Australian Museum had received a grant of $1.091 million in 2013 for the Gorgon Project. 38. Financial instruments (a) Financial risk management objectives and policies Liquidity risk Liquidity risk arises when the Western Australian Museum is unable to meet its financial obligations as they fall due. The Western Australian Museum is exposed to liquidity risk through its trading in the normal course of business. The Western Australian Museum has appropriate procedures to manage cash flows including drawdowns of appropriations by monitoring forecast cash flows to ensure that sufficient funds are available to meet its commitments. Market risk Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates that will affect the Western Australian Museum’s income or the value of its holdings of financial instruments. The Western Australian Museum does not trade in foreign currency and has no borrowing and is not materially exposed to other price risks. All cash and cash equivalents (except for cash floats) are interest bearing as noted at Note 38(c) ‘Financial Instrument Disclosures’, however the exposure to market risk for changes in interest rates is minimal as the Western Australian Museum does not rely on interest income for its principal operating activities. (b) Categories of financial instruments The carrying amounts of each of the following categories of financial assets and financial liabilities at the end of the reporting period are: Financial assets 2014 2013 Total $5,775,000 $3,598,000 Cash and cash equivalents $543,000 $775,000 Restricted cash and cash equivalents $2,956,000 $2,415,000 Loans and receivables(a) $2,276,000 $408,000 Financial liabilities 2014 2013 Total $1,369,000 $4,294,000 Financial liabilities measured at amortised cost $1,369,000 $4,294,000 (a) The amount of loans and receivables excludes GST recoverable from the ATO (statutory receivable). (c) Financial instrument disclosures Credit risk The following table discloses the Western Australian Museum’s exposure to credit risk and the ageing analysis of financial assets. The Western Australian Museum’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Western Australian Museum. The Western Australian Museum does not hold any collateral as security or other credit enhancements relating to the financial assets it holds. The following table details the Western Australian Museum’s maximum exposure to credit risk and the ageing of financial assets. The Western Australian Museum’s maximum exposure to credit risk at the end of the reporting period is the carrying amount of financial assets as shown below. The table discloses the ageing of financial assets that are past due but not impaired and impaired financial assets. The table is based on information provided to senior management of the Western Australian Museum. The Western Australian Museum does not hold any collateral as security or other credit enhancement relating to the financial assets it holds. PAST DUE BUT NOT IMPAIRED Ageing analysis of financial assets CARRYING AMOUNT NOT PAST DUE AND NOT IMPAIRED UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS IMPAIRED FINANCIAL ASSETS Total $34,821,000 $34,751,000 $10,000 $2,000 $45,000 $13,000 - - Financial assets 2014 Cash and cash equivalents $543,000 $543,000 - - - - - - Restricted cash and cash equivalents $2,313,000 $2,313,000 - - - - - - Receivables(a) $1,548,000 $1,478,000 $10,000 $2,000 $45,000 $13,000 - - Amounts receivable for services $30,417,000 $30,417,000 - - - - - - PAST DUE BUT NOT IMPAIRED Ageing analysis of financial assets CARRYING AMOUNT NOT PAST DUE AND NOT IMPAIRED UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS IMPAIRED FINANCIAL ASSETS Total $31,437,000 $31,290,000 $98,000 $3,000 $18,000 $28,000 - - Financial assets 2013 Cash and cash equivalents $775,000 $775,000 - - - - - - Restricted cash and cash equivalents $2,415,000 $2,415,000 - - - - - - Receivables(a) $408,000 $261,000 $98,000 $3,000 $18,000 $28,000 - - Amounts receivable for services $27,839,000 $27,839,000 - - - - - - (a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable). Liquidity risk and interest rate exposure The following table details the Western Australian Museum’s interest rate exposure and the contractual maturity analysis for financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item. The following table details the Western Australian Museum’s interest rate exposure and the contractual maturity analysis for financial liabilities. The maturity analysis section includes interest and principal cash flows. The interest rate exposure section analyses only the carrying amounts of each item. INTEREST RATE EXPOSURE MATURITY DATES Interest rate exposure and maturity analysis of financial assets and financial liabilities WEIGHTED AVERAGE EFFECTIVE INTEREST RATE % CARRYING AMOUNT FIXED INTEREST RATE VARIABLE INTEREST RATE NON-INTEREST BEARING NOMINAL AMOUNT UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS Total $34,820,000 - $2,784,000 $32,036,000 $34,820,000 $1,366,000 $874,000 $450,000 $1,713,000 - Financial assets 2014 Cash and cash equivalents 2.8 $542,000 - $471,000 $71,000 $542,000 $542,000 - - - - Restricted cash and cash equivalents 2.8 $2,313,000 - $2,313,000 - $2,313,000 $50,000 $100,000 $450,000 $1,713,000 - Receivables(a) - $1,548,000 - - $1,548,000 $1,548,000 $774,000 $774,000 - - - Amounts receivable for services - $30,417,000 - - $30,417,000 $30,417,000 - - - - - INTEREST RATE EXPOSURE MATURITY DATES Interest rate exposure and maturity analysis of financial assets and financial liabilities WEIGHTED AVERAGE EFFECTIVE INTEREST RATE % CARRYING AMOUNT FIXED INTEREST RATE VARIABLE INTEREST RATE NON-INTEREST BEARING NOMINAL AMOUNT UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS Total $1,418,000 - - $1,418,000 $1,418,000 $1,418,000 - - - - Financial liabilities 2014 Payables $1,418,000 - - $1,418,000 $1,418,000 $1,418,000 - - - - Borrowings - - - - - - - - - - INTEREST RATE EXPOSURE MATURITY DATES Interest rate exposure and maturity analysis of financial assets and financial liabilities WEIGHTED AVERAGE EFFECTIVE INTEREST RATE % CARRYING AMOUNT FIXED INTEREST RATE VARIABLE INTEREST RATE NON-INTEREST BEARING NOMINAL AMOUNT UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS Total $31,437,000 - $3,120,000 $28,317,000 $31,437,000 $98,000 $3,000 $18,000 $28,000 - Financial assets 2013 Cash and cash equivalents 3.4 $775,000 - $705,000 $70,000 $775,000 - - - - - Restricted cash and cash equivalents 3.4 $2,415,000 - $2,415,000 - $2,415,000 - - - - - Receivables(a) - $408,000 - - $408,000 $408,000 $98,000 $3,000 $18,000 $28,000 - Amounts receivable for services - $27,839,000 - - $27,839,000 $27,839,000 - - - - - INTEREST RATE EXPOSURE MATURITY DATES Interest rate exposure and maturity analysis of financial assets and financial liabilities WEIGHTED AVERAGE EFFECTIVE INTEREST RATE % CARRYING AMOUNT FIXED INTEREST RATE VARIABLE INTEREST RATE NON-INTEREST BEARING NOMINAL AMOUNT UP TO 1 MONTH 1–3 MONTHS 3 MONTHS TO 1 YEAR 1–5 YEARS MORE THAN 5 YEARS Total $4,358,000 - - $4,358,000 $4,358,000 - - - - - Financial liabilities 2013 Payables $4,358,000 - - $4,358,000 $4,358,000 - - - - - Borrowings - - - - - - - - - - (a) The amount of receivables excludes GST recoverable from the ATO (statutory receivable). Interest rate sensitivity analysis The following table represents a summary of the interest rate sensitivity of the Western Australian Museum’s financial assets and liabilities at the end of the reporting period on the surplus for the period and equity for a 1% change in interest rates. It is assumed that the change in interest rates is held constant throughout the reporting period. Fair values All financial assets and liabilities recognised in the Statement of Financial Position, whether they are carried at cost or fair value, are recognised at amounts that represent a reasonable approximation of fair value unless otherwise stated in the applicable notes. -100 BASIS POINTS +100 BASIS POINTS 2014 CARRYING AMOUNT SURPLUS $000 EQUITY $000 SURPLUS $000 EQUITY $000 TOTAL INCREASE/(DECREASE) (14.3) (14.3) 14.3 14.3 Financial assets Cash and cash equivalents $543,000 (5.4) (5.4) 5.4 5.4 Restricted cash and cash equivalents $2,313,000 (23.1) (23.1) 23.1 23.1 Financial liabilities Payables $1,418,000 14.2 14.2 (14.2) (14.2) Other borrowings - - - - - -100 BASIS POINTS +100 BASIS POINTS 2013 CARRYING AMOUNT SURPLUS $000 EQUITY $000 SURPLUS $000 EQUITY $000 TOTAL INCREASE/(DECREASE) 11.6 11.6 (11.6) (11.6) Financial assets Cash and cash equivalents $775,000 (7.8) (7.8) 7.8 7.8 Restricted cash and cash equivalents $2,415,000 (24.2) (24.2) 24.2 24.2 Financial liabilities Payables $4,358,000 43.6 43.6 (43.6) (43.6) Other borrowings - - - - - 39. Remuneration of members of the Western Australian Museum and senior officers Remuneration of members of the Western Australian Museum The number of members of the Western Australian Museum, whose total of fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are: 2014 2013 Total $9,000 $9,000 $0—$10,000 $9,000 $9,000 2014 2013 THE TOTAL REMUNERATION OF MEMBERS OF THE WESTERN AUSTRALIA MUSEUM (a) $32,000 $37,000 Cash remuneration received $32,000 $37,000 Annual leave and long service leave accruals - - Other benefits - - (a) The total remuneration includes the superannuation expense incurred by the Western Australian Museum in respect of members of the Western Australian Museum. Remuneration of senior officers The number of senior officers, other than senior officers reported as members of the Western Australian Museum, whose total fees, salaries, superannuation, non-monetary benefits and other benefits for the financial year fall within the following bands are: 2014 2013 $10,001—$20,000 - - $70,001—$80,000 2 - $110,001—$120,000 - - $120,001—$130,000 1 - $130,001—$140,000 - 2 $140,001—$150,000 2 2 $150,001—$160,000 - 1 $160,000—$170,000 - 1 $170,001—$180,000 1 - $180,001—$190,000 1 - $220,001—$230,000 - - $230,001—$240,000 1 1 2014 2013 THE TOTAL REMUNERATION OF SENIOR OFFICERS $1,233,000 $1,381,000 Cash remuneration received $1,172,000 $1,098,000 Annual leave and long service leave accruals for the year $36,000 $283,000 Other benefits $25,000 - 40. Remuneration of auditor Remuneration paid or payable to the Auditor General in respect of the audit for the current financial year is as follows: 2014 2013 Total $38,000 $37,000 Auditing the accounts, financial statements and performance indicators $38,000 $37,000 41. Related bodies At the reporting date, the Western Australian Museum had no related bodies. 42. Affiliated bodies At the reporting date, the Western Australian Museum had no affiliated bodies. 43. Supplementary financial information (a) Write-offs 2014 2013 Debts written off by the Western Australian Museum during the financial year - $57,000 Publications stock written off by the Western Australian Museum during the financial year $43,000 - (b) Losses through theft, defaults and other causes 2014 2013 Losses of public moneys and public and other property through theft - - (c) Gifts of public property 2014 2013 Gifts of public property provided by the Western Australian Museum - - (d) Other supplementary information 2014 2013 The Western Australian Museum holds shares in a private company received in exchange for the Museum’s support of specific projects. These shares are not recorded in the financial statements, as the measurement of the market value of the shares is not reliable. - - 44. Income and expenses by service For the financial year ended 30 June 2014, the Western Australian Museum operated under one service titled ‘Museum services’ and therefore service information is reflected in the Statement of Comprehensive Income. ‹ Certification of Financial Statements Certification of Key Performance Indicators ›