Statement of comprehensive income for the period ended 30 June 2019

Budget Variances Commentary

Statement of comprehensive income

The AEC's expenses were higher than anticipated due to the conduct of six by-elections and additional depreciation for election related finance lease assets. These additional expenses have resulted in the AEC incurring a higher than expected operating loss.

The AEC's ongoing annual funding model does not support the delivery of by-elections due to their unpredictable nature. As a result it is normal business for the AEC to seek departmental funding supplementation each time a by-election is delivered. The AEC has secured departmental funding supplementation of $11.7m through its 2019-20 appropriations to cover the costs of the six by-elections.

Depreciation and amortisation costs are higher than expected as additional assets were purchased under finance lease to deliver the 2019 federal election.

Revenue from Government is slightly higher than anticipated as additional funding was provided to deliver improvements to the nominations process.

Statement of Financial Position as at 30 June 2019

Budget Variances Commentary

Statement of Financial Position

Total assets are significantly higher than expected due mainly to a higher than anticipated balance in appropriations receivable and other receivables. This is partially offset by lower cash and non financial assets. Appropriations receivable are significantly higher than anticipated due to the timing of the federal election and payment of associated invoices. Other receivables, represented by GST receivable, is higher than expected as the majority of the AEC's expeniture has been incurred in May and June 2019 for the federal election and GST refunds have not yet been received. Cash is lower than expected as additional funds have been utilised to purchase assets, while non financial assets are lower than expected due to the roll over of capital projects that were put on hold during the federal election.

Total liabilities are significantly higher than expected due to a significantly higher balance in suppliers payable. This is due to the timing of the federal election and receipt/payment of associated invoices.

Statement of Changes in Equity for the period 30 June 2019

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

Accounting Policy

Contributions by owners

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Budget Variances Commentary

Statement of Changes in Equity

The AEC incurred a higher than anticipated equity position as it is still carrying additional Departmental Capital Budget received in previous years for capital projects that were put on hold during the federal election.

Cash Flow Statement for the period ended 30 June 2019

Budget Variances Commentary

Cash Flow Statement

Total cash received and used during the financial year was lower than anticipated as a result of the timing of the federal election and the associated receipt/payment of invoices. This is supported by the higher than expected Suppliers Payable balance on the Statement of Financial Position. This cash will be drawdown from appropriations and used early in the 2019-20 financial year to pay suppliers.

Cash used to purchase property, plant and equipment and cash received from Departmental Capital Budget are both higher than expected as the purchase of additional assets required utilisation of previous years departmental capital funding held in reserves.