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Primary financial statements

Statement of comprehensive income for the period ended 30 June 2019

Notes

2019

2018

Original Budget

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee benefits

3.1

177,821

86,679

178,239

Suppliers

4.1A

245,267

75,987

233,391

Depreciation and amortisation

2.3A

12,367

9,500

8,736

Finance costs

2.4B

-

52

85

Impairment loss allowance on financial instruments

4.1B

17

(6)

-

Losses from asset disposals

2.3A

233

315

-

Total expenses

435,705

172,527

420,451

OWN-SOURCE INCOME

Own-source revenue

Sale of goods and rendering of services

1.2A

12,291

17,285

11,038

Other revenue

1.2B

249

273

-

Total own-source revenue

12,540

17,558

11,038

Gains

Other gains

1.2C

79

47

85

Total gains

79

47

85

Total own-source income

12,619

17,605

11,123

Net (cost of) services

(423,086)

(154,922)

(409,328)

Revenue from Government

Revenue from Government

1.1A

402,511

161,198

400,592

(Deficit)/Surplus on continuing operations

(20,575)

6,276

(8,736)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

1,089

178

-

Total other comprehensive income

1,089

178

-

Total comprehensive (loss) / income

1.4

(19,486)

6,454

(8,736)

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

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

2019

2018

Original Budget

Notes

$’000

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

2.1A

2,402

1,715

4,220

Receivables for goods and services

2.1A

1,583

896

1,687

Appropriations receivable

2.2A

159,027

117,564

83,179

Other receivables

2.2B

8,446

963

675

Total financial assets

171,458

121,138

89,761

Non-financial assets

Leasehold Improvements

2.3A

8,834

6,757

8,999

Plant and equipment

2.3A

5,675

7,273

11,505

Computer software

2.3A

17,865

8,477

24,505

Intellectual property

2.3A

1,600

1,663

-

Inventories

2.3B

1,699

5,104

3,909

Other non-financial assets

2.3C

3,898

2,773

3,135

Total non-financial assets

39,571

32,047

52,053

Total assets

211,029

153,185

141,814

LIABILITIES

Payables

Suppliers

2.1A

71,254

9,894

5,875

Other payables

2.4A

3,533

3,908

6,154

Total payables

74,787

13,802

12,029

Provisions

Employee provisions

3.2

21,029

22,251

25,563

Other provisions

2.4B

5,775

1,780

1,570

Total provisions

26,804

24,031

27,133

Total liabilities

101,591

37,833

39,162

Net assets

109,438

115,352

102,652

EQUITY

Contributed equity

96,315

82,743

96,315

Asset revaluation surplus

23,941

22,852

22,674

Retained earnings

(10,818)

9,757

(16,337)

Total equity

109,438

115,352

102,652

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

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

2019

2018

Original Budget

$’000

$’000

$’000

CONTRIBUTED EQUITY

Opening balance

Balance carried forward from previous period

82,743

60,373

82,743

Adjusted opening balance

82,743

60,373

82,743

Transactions with owners

Contributions by owners

Departmental Capital Budget

13,572

22,370

13,572

Total transactions with owners

13,572

22,370

13,572

Closing balance as at 30 June

96,315

82,743

96,315

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

9,757

3,614

(7,601)

Adjustment to opening balance

-

(133)

-

Adjusted opening balance

9,757

3,481

(7,601)

Comprehensive income

(Deficit) / surplus for the period

(20,575)

6,276

(8,736)

Total comprehensive income

(20,575)

6,276

(8,736)

Closing balance as at 30 June

(10,818)

9,757

(16,337)

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

22,852

22,674

22,674

Adjusted opening balance

22,852

22,674

22,674

Comprehensive income

Other comprehensive income

1,089

178

-

Total comprehensive income

1,089

178

-

Closing balance as at 30 June

23,941

22,852

22,674

TOTAL EQUITY

Opening balance

Balance carried forward from previous period

115,352

86,661

97,816

Adjustment to opening balance

-

(133)

-

Adjusted opening balance

115,352

86,528

97,816

Comprehensive income

(Deficit) / surplus for the period

(20,575)

6,276

(8,736)

Other comprehensive income

1,089

178

-

Total comprehensive income

(19,486)

6,454

(8,736)

Transactions with owners

Contributions by owners

Departmental Capital Budget

13,572

22,370

13,572

Total transactions with owners

13,572

22,370

13,572

Closing balance as at 30 June

109,438

115,352

102,652

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

2019

2018

Original Budget

Notes

$’000

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

360,001

144,757

400,592

Sales of goods and rendering of services

13,256

19,316

11,038

Net GST received

10,956

5,849

-

Total cash received

384,213

169,922

411,630

Cash used

Employees

178,873

86,859

178,239

Suppliers

181,855

86,966

233,391

Section 74 receipts transferred to the OPA

20,553

-

-

Total cash used

381,281

173,825

411,630

Net cash from / (used by) operating activities

2,932

(3,903)

-

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment

16,864

3,028

13,572

Total cash used

16,864

3,028

13,572

Net cash (used by) investing activities

(16,864)

(3,028)

(13,572)

FINANCING ACTIVITIES

Cash received

Contributed equity

-

-

13,572

Departmental Capital Budget

14,619

4,426

-

Total cash received

14,619

4,426

13,572

Net cash from financing activities

14,619

4,426

13,572

Net increase / (decrease) in cash held

687

(2,505)

-

Cash and cash equivalents at the beginning of the reporting period

1,715

4,220

4,220

Cash and cash equivalents at the end of the reporting period

2.1A

2,402

1,715

4,220

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

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.