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Primary financial statement

Statement of Comprehensive Income

Statement of Comprehensive Income

for the period ended 30 June 2019

2019

2018

Original budget

Notes

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee benefits

1.1A

114,853

106,992

128,908

1

Suppliers

1.1B

39,829

35,080

33,191

2

Depreciation and amortisation

3.2A

10,466

10,069

8,001

Write-down and impairment of assets

1.1C

-

(490)

-

Losses from asset sales

3.2A

9

111

-

Other expenses

1.1D

-

2,373

-

Total expenses

165,157

154,135

170,100

Own-source income

Own-source revenue

Sale of goods and rendering of services

1.2A

691

831

900

Other revenue

1.2B

82

80

-

Total own-source revenue

773

911

900

Gains

Other gains

1.2C

504

525

800

Total gains

504

525

800

Total own-source income

1,277

1,436

1,700

Net cost of services

(163,880)

(152,699)

(168,400)

Revenue from Government

1.2D

163,468

152,450

160,399

Deficit before income tax on continuing

operations

(412)

(249)

(8,001)

Income tax expense

-

-

-

Deficit after income tax on continuing

operations

(412)

(249)

(8,001)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

(951)

87

-

Total other comprehensive income/(loss)

(951)

87

-

The above statement should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the Statement of Comprehensive Income, they are total expenses or total revenue

1 Employee benefits

The variance against employee benefits was due to lower than budgeted member appointments and staff engagements.

2 Suppliers

The variance against supplier expenses was due to increased contractor costs related to higher application volume and Tribunal workload.

Statement of Financial Position

Statement of Financial Position

as at 30 June 2019

2019

2018

Original budget

Notes

$’000

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

3.1A

1,144

363

367

Trade and other receivables

3.1B

88,200

81,977

85,669

Total financial assets

89,344

82,340

86,036

Non-financial assets

Buildings

3.2A

47,886

50,854

46,516

Plant and equipment

3.2A

4,104

4,641

2,070

1

Computer software

3.2A

4,726

4,768

2,812

2

Other non-financial assets

3.2B

4,789

2,108

991

3

Total non-financial assets

61,505

62,371

52,389

Total assets

150,849

144,711

138,425

LIABILITIES

Payables

Suppliers

3.3A

2,401

1,775

10,500

Other payables

3.3B

36,407

30,734

25,327

4

Total payables

38,808

32,509

35,827

Provisions

Employee provisions

6.1A

21,818

22,327

20,799

Other provisions

3.4A

1,155

3,322

8,507

5

Total provisions

22,973

25,649

29,306

Total liabilities

61,781

58,158

65,133

Net assets

89,068

86,553

73,292

EQUITY

Contributed equity

94,053

90,175

94,053

Reserves

4,089

5,040

4,953

Accumulated deficit

(9,074)

(8,662)

(25,714)

Total equity

89,068

86,553

73,292

The above statement should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the statement of financial position, it is total equity.

1 Plant and equipment

The variance against plant and equipment is due to increased investment in technology and hardware infrastructure to enhance operational efficiency.

2 Computer software

The variance against computer software is the result of continued system developments in case management and financial management reporting systems to support AAT operations.

3 Other non-financial assets

The variance against non financial assets relate to prepayments for subscriptions and support of security and telecommunications technology as a result of moving to multi year subscriptions and maintenance contracts.

4 Other payables

The variance against other payables relates to landlord fit-out incentives received from co-located premises in Brisbane and Melbourne. This information was not available at the time of developing the original budget.

5 Other provisions

The variance against other provisions relates mainly to the anticipated cost impact of right sizing/aligning AAT's staffing and skill sets with future requirements that was not completed during the year.

Statement of Changes in Equity

Statement of Changes in Equity

for the period ended 30 June 2019

2019

2018

Original budget

Notes

$’000

$’000

$’000

CONTRIBUTED EQUITY

Opening balance

Balance carried forward from previous period

90,175

86,374

90,175

Adjusted opening balance

90,175

86,374

90,175

Transactions with owners

Contributions by owners

Departmental capital budget

5.1A

3,878

3,801

3,878

Total transactions with owners

3,878

3,801

3,878

Transfers between equity components

-

-

-

Closing balance as at 30 June

94,053

90,175

94,053

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

(8,662)

(8,413)

(17,713)

Adjusted opening balance

(8,662)

(8,413)

(17,713)

Comprehensive income

Deficit for the period

(412)

(249)

(8,001)

Total comprehensive income

(412)

(249)

(8,001)

Transfers between equity components

-

-

-

Closing balance as at 30 June

(9,074)

(8,662)

(25,714)

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

5,040

4,953

4,953

Adjusted opening balance

5,040

4,953

4,953

Comprehensive income

Other comprehensive income

(951)

87

-

Total comprehensive income

(951)

87

-

Transfers between equity components

-

-

-

Closing balance as at 30 June

4,089

5,040

4,953

TOTAL EQUITY

Opening balance

Balance carried forward from previous period

86,553

82,914

77,415

Adjusted opening balance

86,553

82,914

77,415

Comprehensive income

Deficit for the period

(412)

(249)

(8,001)

Other comprehensive income

(951)

87

-

Total comprehensive income

(1,363)

(162)

(8,001)

Transactions with owners

Contributions by owners

Departmental capital budget

3,878

3,801

3,878

Total transactions with owners

3,878

3,801

3,878

Transfers between equity components

-

-

-

Closing balance as at 30 June

89,068

86,553

73,292

The above statement should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the statement of changes in equity, it is total equity.

1 Comprehensive income - deficit for the period

For detailed commentary, refer to statement of comprehensive income

Cash Flow Statement

Cash Flow Statement

for the period ended 30 June 2019

2019

2018

Original budget

Notes

$’000

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

157,211

161,535

163,890

Sale of goods and rendering of services

1,771

1,069

900

Other

10,489

9,594

-

1

Total cash received

169,471

172,198

164,790

Cash used

Employees

(115,739)

(105,435)

(128,908)

2

Suppliers

(48,238)

(55,480)

(32,382)

3

Net GST paid

(711)

(204)

-

Total cash used

(164,688)

(161,119)

(161,290)

Net cash from/(used by) operating activities

4,783

11,079

3,500

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment

(7,880)

(21,846)

(7,378)

Total cash used

(7,880)

(21,846)

(7,378)

Net cash from/(used by) investing activities

(7,880)

(21,846)

(7,378)

FINANCING ACTIVITIES

Cash received

Contributed equity

5.1A

3,878

10,763

3,878

Cash received on restructuring of administrative arrangements

-

-

-

Total cash received

3,878

10,763

3,878

Net cash from/(used by) financing activities

3,878

10,763

3,878

Net increase/(decrease) in cash held

781

(4)

-

Cash and cash equivalents at the beginning of the reporting period

363

367

367

Cash and cash equivalents at the end of the reporting period

3.1A

1,144

363

367

The above statement should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the cash flow statement, it is total equity.

1 Operating activities - cash received - other

The variance against operating activities - cash received - other relates to fit-out incentives received for AAT's property leases that was not anticipated at the time of developing the original budget.

2 Operating activities - cash used - employees

The variance against operating activities - cash used - employees is due to an underspend in employee benefits. For commentary refer to the statement of comprehensive income.

3 Operating activities - cash used - suppliers

The variance against operating activities - cash used - suppliers is predominantly due to increased contractor and agency resource.

Administered Schedule of Comprehensive Income

Administered Schedule of Comprehensive Income

for the period ended 30 June 2019

2019

2018

Original budget

Notes

$’000

$’000

$’000

NET COST OF SERVICES

Expenses

Bad debts

(Refugee review post decision fees)

2.1

4,092

4,288

2,600

Other expenses

2.1

6,772

5,020

6,400

Total expenses

10,864

9,308

9,000

Income

Non-taxation revenue

Other revenue

2.2

49,358

49,749

46,924

Total non-taxation revenue

49,358

49,749

46,924

Total revenue

49,358

49,749

46,924

Total income

49,358

49,749

46,924

Net (cost of)/contribution by services

38,494

40,441

37,924

Surplus/(Deficit)

38,494

40,441

37,924

Total comprehensive income/(loss)

38,494

40,441

37,924

The above schedule should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the administered schedule of comprehensive income, they are total administered expenses or total administered revenue.

1 Bad debts (Refugee review post decision fees)

Bad debts are provided on refugee review post decision fees receivable on an annual basis, based on repayment history. The variance is predominantly driven by repayment history and is beyond AAT's control.

Administered Schedule of Assets and Liabilities

Administered Schedule of Assets and Liabilities

as at 30 June 2019

2019

2018

Original budget

Notes

$’000

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

4.1A

560

308

218

1

Trade and other receivables

4.1B

188

2,814

2,727

2

Total financial assets

748

3,122

2,945

Total assets administered on behalf of Government

748

3,122

2,945

LIABILITIES

Payables

Suppliers

4.2A

718

287

283

3

Total payables

718

287

283

Total liabilities administered on behalf of

Government

718

287

283

Net assets

30

2,835

2,662

The above schedule should be read in conjunction with the accompanying notes.

Budget variances commentary

Variances are considered to be “major” based on the following criteria:

  • variance between budget and actual is greater than 10% at item level; and
  • variance is greater than 2% of the relevant categories. In the case of the administered schedule of assets and liabilities, it is administered net assets.

1 Cash and cash equivalents

The variance against cash and cash equivalents is due to higher volumes of applications received by the AAT in 2018- 19.

2 Trade and other receivables

Trade and other receivables balance is made up of refugee review post decision fees receivable and is driven by the number of applications received and finalised by the AAT. The variance is the impact of the adoption of AASB 9.

3 Suppliers

The variance against suppliers relates to refunds due to applicants as at 30 June 2019. Amounts outstanding are minor and unpredictable due to the timing of decisions and payment runs.

Administered Reconciliation Schedule

Administered Reconciliation Schedule

2019

2018

Notes

$’000

$’000

Opening assets less liabilities as at 1 July

2,835

2,661

Adjustment from adoption of AASB 9

(1,941)

-

Adjusted opening assets less liabilities

894

2,661

Net (cost of)/contribution by services

Income

49,358

49,749

Expenses

Payments to entities other than corporate Commonwealth entities

(10,864)

(9,308)

Special appropriations (limited)

Transfers from Official Public Accounts

6,400

4,994

Appropriation transfers to OPA

Transfers to OPA

(45,758)

(45,261)

Closing assets less liabilities as at 30 June

30

2,835

Accounting policy

Administered cash transfers to and from the official public account

Revenue collected by the AAT for use by the Government rather than AAT is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the AAT on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Administered Cash Flow Statement

Administered Cash Flow Statement

for the period ended 30 June 2019

2019

2018

Notes

$’000

$’000

OPERATING ACTIVITIES

Cash received

Application fees

45,950

45,373

Total cash received

45,950

45,373

Cash used

Refund of application fees

6,341

5,016

Total cash used

6,341

5,016

Net cash from operating activities

39,609

40,357

FINANCING ACTIVITIES

Cash from Official Public Account

Appropriations

6,400

4,994

Total cash from Official Public Account

6,400

4,994

Cash to Official Public Account

Appropriations

(45,757)

(45,261)

Total cash to Official Public Account

(45,757)

(45,261)

Cash and cash equivalents at the beginning of the reporting period

308

218

Cash and cash equivalents at the end of the reporting period

4.1A

560

308

This schedule should be read in conjunction with the accompanying notes.