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2002-03 Financial Statements

Department of Defence
Notes To And Forming Part Of The Financial Statements
for the year ended 30 June 2003
2002-03 2001-02
$'000 $'000
Note 9: Provisions
Note 9A: Employee Provisions
Australian Public Service (APS) employee provisions
Salaries and wages 34,550 27,414
Leave 403,274 353,556
Superannuation 4,776 3,580
Separations and redundancies 1,617 609
Other 4,321 1,356
Aggregate APS employee entitlement liability 448,538 386,516
Australian Defence Force (ADF) employee provisions
Salaries and wages 111,284 87,913
Leave* 1,072,386 1,041,015
Superannuation 19,306 17,155
Separations and redundancies 4,515 2,082
Other 66,318 77,523
Aggregate ADF employee entitlement liability 1,273,810 1,225,687
Military compensation 1,595,362 1,342,400
Aggregate employee benefit liability and related on-costs 3,317,711 2,954,603
Employee provisions are represented by:
Current 1,168,407 1,025,044
Non-current 2,149,304 1,929,559
Total Employee provisions 3,317,711 2,954,603
*A systematic sampling review of Military employee leave entitlements undertaken by Defence in recent months has found errors exist in relation to Military Leave balances. In addition, supporting documentation could not be located within the timeframe of the review to support some leave transactions. These errors and potential errors, which are outside acceptable parameters, represent uncertainty in military annual leave and long service leave balances. The book value of the leave balances subject to this uncertainty is $732m. This uncertainty will be reduced in 2003-04 and 2004-05 as a result of a continuing comprehensive data quality review of leave processes and balances. It should be noted that leave payments made on separation from Defence are subject to validation back to an individual member's personnel file resulting in the appropriate verification of payments made.
Note 9B: Other
Provision for Asbestos related disease exposure 343,600 -
Total other provisions 343,600 -