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Cash flow statement

for the period ended 30 June 2020

Cash flow statement

2020

2019

Original budget

Notes

$’000

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

9,083

9,754

9,278

Sales of goods and rendering of services

2,196

2,636

1,954

Net GST received

348

376

-

Total cash received

11,627

12,766

11,232

Cash used

Employees

7,108

7,223

6,811

Suppliers

3,602

5,044

4,421

Interest payments on lease liabilities

80

-

-

Total cash used

10,790

12,267

11,232

Net cash from operating activities

837

499

-

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment

33

14

-

Total cash received

33

14

-

Cash used

Purchase of property, plant and equipment

429

626

243

Total cash used

429

626

243

Net cash (used by) investing activities

(396)

(612)

(243)

FINANCING ACTIVITIES

Cash received

Contributed equity

243

245

243

Total cash received

243

245

243

Cash used

Returns of capital

-

131

-

Principal payments of lease liabilities

684

-

-

Total cash used

684

131

-

Net cash (used by) / from financing activities

(441)

114

243

Net increase / (decrease) in cash held

-

1

-

Cash and cash equivalents at the beginning of the reporting period

12

11

11

Cash and cash equivalents at the end of the reporting period

3.1A

12

12

11

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

Budget variances commentary

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

Sales of goods and rendering of services

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 this amount also included an internal on-charge between Departmental and Administered appropriations for locally engaged staff in international offices.

Net GST received

This reflects GST payments expected to be received from the Australian Taxation Office and it is not unusual for this amount to change from time to time in the normal course of business.

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's lease arrangements.

Interest payment on lease liabilities

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. When combined, the principal repayment of lease liabilities and the interest expense equal the value of lease payments made over the life of the lease.

Proceeds from sales of property, plant and equipment

Lease fitout was sold following a change in leasing arrangements at the Manila office.

Purchase of property, plant and equipment (PP&E)

ACIAR budgeted for purchases of PP&E consistent with its known Departmental Capital Budget. However, during the year ACIAR made planned use of current year revenue which it had not included in its budget to upgrade aged IT hardware.

Principal repayment of lease liabilities

This reflects the introduction of AASB 16 and its application to ACIAR's lease arrangements.