for the period ended 30 June 2020

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

Budget variances commentary

All variances above 10% of the relevant category are considered significant and explained below.

Suppliers

This largely reflects the impact of COVID-19 across a range of expenditure items, the recognition of some supplier costs as Administered expense following a review of work (and associated costs) performed by locally engaged staff in international offices, and the introduction of AASB 16 and its application to ACIAR lease arrangements.

Depreciation and amortisation

This largely reflects the application of the new accounting standard AASB 16 which accounts for leases as a ‘right of use’ asset with a corresponding amortisation expense recognised against Depreciation and Amortisation.

Finance costs

This reflects the impact of AASB 16 which recognises a right of use asset and an associated interest expense equivalent to that which a lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right of use asset.

Revenue from contracts with customers

Revenue from rendering services is primarily associated with management fees from agreements with the Department of Foreign Affairs and Trade for the management of Research Programs. The agreements provide flexibility for ACIAR to draw on the management fee as needed (to a capped limit) with the movement between years reflecting the movement in overall costs across the same period. In 2019–20 the budget included an amount for locally engaged staff which was subsequently treated as an internal on-charge between Departmental and Administered appropriations following a review of their work (and associated costs) which has been recognised in Other Revenue.

Other revenue

Other Revenue reflects an on-charge from Departmental to Administered for costs associated with locally engaged staff in international offices, which has been charged for the first time in 2019–20 after a review identified these costs were more accurately reported as an administered expense. This change will be ongoing.

Gains from sale of asset

This reflects a gain on sale of the Manila Office fit-out.

Changes in asset revaluation surplus

In accordance with AASB 116 and AASB 13, the agency undertook a fair value assessment of its buildings (excluding right of use assets), and plant and equipment as at 30 June 2020. This reflects the impact of that revaluation.