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Cash Flows

	Notes	2001 Inflows (Outflows) ($'000's	2000 Inflows (Outflows) ($'000's)
Operating Activities Receipts Cash Flows from Government Commonwealth Grants to the Legal Aid Commission of Tasmania Commonwealth Grants for Disbursement to Community Legal Centres State Government Grants Other Receipts Contributions and Costs Recovered from Clients Interest Received Other Revenue Total Operating Receipts Operating Payments Payments to Private Legal Practitioners and Other Business Partners Wages and Salaries Suppliers Payments to Community Legal Centres Total Operating Payments Net Cash Surplus (Used) in Operating Activities CashFlows from Investing Activities Asset Acquisition Net Cash Used in Investing Activities Net Increase (Decrease) in Cash Held Cash at Beginning of Period Cash at End of Period	17	4,239 488 3,022 7,749 301 52 8 361 8,110 (2,771) (2,804) (1,100) (480) (7,155) 955 (78) (78) 877 353 1,230	3,720 967 3,004 7,691 348 57 0 405 8,096 (3,344) (2,863) (1,212) (967) (8,386) (290) (44) (44) (334) 687 353

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NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The Legal Aid Commission of Tasmania was established under the Legal Aid Commission Act 1990 on 1st January 1991 and the financial statements of the Commission have been prepared in accordance with the requirements of the Financial Management and Audit Act 1990. The Financial Statements have been prepared in accordance with the requirements pertaining to General Purpose Financial Reports (GPFR's), including Australian Accounting Standards and Urgent Issues Group (UIG) consensus views.

(a) Basis of Accounting

The financial statements are prepared on an accrual accounting basis using historical costs and, except where stated, do not take into account current valuations of non-current assets. Policies have been consistently applied except as otherwise indicated.

IIn accordance with the transitional provisions outlined in paragraph 10.7(b) of AAS 38 'Revaluation on Non-Current Assets', the Legal Aid Commission of Tasmania is yet to disclose its Non Current Assets on a fair value basis. This will ocurr when current valuations are obtained for each class of that asset is disclosed at Note 11, and this process is expected to be completed by June 30, 2003.

During 1997/98 formal valuations of Freehold Property Assets and Library Assets were obtained. Detailed disclosures are contained at the notes to these items.

(b) Plant and Equipment

Plant and equipment are carried at historical cost less accumulated depreciation. Plant and equipment purchased for less than $1,000 is charged to expense as incurred.

(c) Depreciation

Assets are depreciated over their expected useful economic lives using the straight line method. The useful life calculation for each asset group is as follows:

Asset Group	Useful Life (years)
Furniture and Fittings Office Equipment Alterations to Accommodation Freehold Property Libraries	4 4 4 25 10

(d) Leases

Operating lease payments are charged to expense in the period in which they are incurred.

(e) Provision for Long Service Leave

Employee entitlements are recognised in accordance with Australian Accounting Standard AAS30. A current liability is provided for all employees with 10 years service or more based on their current annual salary. A Non current liability is calculated for all other employees based on their number of effective years of service and the probability of them attaining the required 10 years of service effective service. The non current liability is the total of the net present value cost for 0 - 9 years inclusive taking into account an estimated inflation factor of 3.53% and discounting the entitlement using interest rates attaching to Commonwealth Government guaranteed securities as at the reporting date.

(f) Provision for recreational Leave

The liability for accrued recreation leave represents the expected cost of employees pro-rata entitlements using current salary rates.

(g) Sick Leave

No amount is shown for non-vested sick leave. On the basis of previous experience, namely sick leave of 4 days per annum, per employee, the estimated liability of $37,872 is not material in comparison with total liabilities.

(h) Financial Instruments

Cash

Cash is measured at nominal amounts. Cash includes, cash on hand, all cash held in the operating account and short term investments. Interest rate risk is considered minimal.

Receiveables

Trade receivables and other receivables are recorded at nominal value due less any provision for doubtful debts.

Client contributions owing are predominantly small contributions from clients and as such exposure to credit risk is considered to be minimal.

Payables

Legal creditor accounts payable are recognised upon certification of those accounts for payment. There were no outstanding amounts as at June 30 2001.

Trade creditor payables are recognised when the economic entity becomes obliged to make future payments resulting from the purchase of goods and services. Measurement is based on the agreed purchase/contract cost. The amounts are unsecured and normally settled within 30 days.

Investments

The Commission is authorised under its Act to invest surplus funds in any of the ways referred to in Section 5 of the Trustee Act 1898. During the reporting period investments were held in an at call cash management facility.

Interest revenue is recognised in the operating statement when earned. As the Commission's investments were held in the above instruments and held over relatively short periods it is considered that any interest rate exposure is minimal.

As at the 30th June 2001 the following investments were held

Asset Group	2000/01 $'000's	1999/00 $'000's
At Call Cash Management Account No. 1 ~ Operating Account At Call Cash Management Account No. 2 ~ PDR Programme 2001/2002 Operating Account	517 On Call at an interest rate of 5.05% 415 On Call at an interest rate of 5.05% 317 On call at an interest rate of 4.46%	267 On Call at an interest rate of 6.00% 0 58 On Call at an interest rate of 5.6%

The At Call Cash Management Account No.2 holds the first instalment of the Commissions 2001/2002 Primary Dispute Resolution Program received by the Commission in April 2001 which commences in July 2001.

NOTE 2: GOING CONCERN.

These statements have been prepared on a going concern basis in the expectation that the Commission will continue to function and be funded in the future on the basis as set out in a new Commonwealth/State Agreement which became effective from the 1st July 2000 covering a four year period.

NOTE 3: GOVERNMENT CONTRIBUTIONS

	2000/01 $'000's	1999/00 $'000's
Commonwealth Base Grant Commonwealth Receipts in Advance Commonwealth Disbursements to Community Legal Centres State Government Base Grant	3,824 415 488 3,086 7,398	3,720 0 967 2,770 7,457

Government Contributions

Government contributions are as a result of a new Commonwealth/State agreement which became effective from the 1st July 2000 for a duration of 4 years.

Commonwealth Receipts in Advance

An amount of $415,000 was received in April 2001 for a new Commonwealth Initiative in Primary Dispute Resolution. The program will commence in July 2001 and run for approximately 18 months with another grant of approximately $220,000 to be received during 2001/2002.

Commonwealth Disbursements to Community Legal Centres

The Commonwealth State Agreement provided for disbursements to Community Legal Centres (CLC's) to commence in the 3rd and 4th quarters of 2000/2001 as a result of negotiations with the new 4 year funding agreement and the impacts of the Good and Services Tax (GST) introduction.

NOTE 4: OTHER REVENUE

	2000/01 $'000's	1999/00 $'000's
Salaries Other Operating Costs	66 42 108	62 42 104

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