Primary financial statements
Statement of comprehensive income for the period ended 30 June 2021
Notes | 2021 | 2020 | Original Budget1 | |
$'000 | $'000 | $'000 | ||
NET COST OF SERVICES | ||||
Expenses | ||||
Employee benefits | 75,724 | 83,070 | 86,365 | |
Suppliers | 83,496 | 70,892 | 85,484 | |
Depreciation and amortisation | 25,405 | 25,238 | 24,993 | |
Impairment loss allowance on financial instruments | 97 | 12 | 85 | |
Finance costs | 1,200 | 740 | 752 | |
Losses from asset disposals | 1,726 | 1,339 | 0 | |
Total expenses | 187,648 | 181,291 | 197,679 | |
Own-Source Income | ||||
Own-source revenue | ||||
Revenue from contracts with customers | 13,691 | 12,027 | 11,038 | |
Other revenue | 331 | 281 | 0 | |
Total own-source revenue | 14,022 | 12,308 | 11,038 | |
Gains | ||||
Other gains | 1,999 | 40 | 85 | |
Total gains | 1,999 | 40 | 85 | |
Total own-source income | 16,021 | 12,348 | 11,123 | |
Net (cost of) services | -171,627 | -168,943 | -186,556 | |
Revenue from Government | ||||
Revenue from Government | 219,481 | 144,468 | 173,950 | |
Surplus / (Deficit) on continuing operations | 47,854 | -24,475 | -12,606 | |
OTHER COMPREHENSIVE INCOME | ||||
Items not subject to subsequent reclassification to net cost of services | ||||
Changes in asset revaluation reserve | 1,850 | 3,144 | 0 | |
Total other comprehensive income | 1,850 | 3,144 | 0 | |
Total comprehensive profit / (loss) | 49,704 | -21,331 | -12,606 | |
The above statement should be read in conjunction with the accompanying notes.
1. The Original Budget references the published 2020-21 Portfolio Budget Statements.
Budget Variances Commentary
The AEC's total departmental expense of $187.6 million is lower when compared to the original budget. This is primarily due to lower than anticipated employee benefits and supplier expenses, as a result of delays in recruitment, procurement, and supplier activities.
Revenue from Government was higher due to additional funding appropriated to the AEC as part of the 2020-21 Portfolio Additional Estimates which was not fully spent within the financial year. This included funding for government measures to deploy polling place technology, Northern Territory electoral office operations, and to conduct by-elections and electoral redistributions. Additionally, $23.6 million of funding was brought forward from the forward estimates into the 2020-21 financial year to support election preparation activities.
Overall, lower than anticipated total expenses and an increase in Revenue from Government have resulted in the AEC incurring a higher than expected operating surplus.
Statement of Financial Position as at 30 June 2021
Notes | 2021 | 2020 | Original Budget2 | |
$'000 | $'000 | $'000 | ||
ASSETS | ||||
Financial assets | ||||
Cash and cash equivalents | 1,348 | 1,490 | 1,490 | |
Trade and other receivables | 144,850 | 107,033 | 107,033 | |
Total financial assets | 146,198 | 108,523 | 108,523 | |
Non-financial assets | ||||
Leasehold Improvements1 | 74,986 | 71,577 | 76,015 | |
Plant and equipment | 7,771 | 7,020 | 6,535 | |
Computer software | 21,900 | 14,832 | 17,653 | |
Inventories | 1,432 | 2,007 | 2,007 | |
Prepayments | 1,347 | 2,314 | 2,314 | |
Total non-financial assets | 107,436 | 97,750 | 104,524 | |
Total assets | 253,634 | 206,273 | 213,047 | |
LIABILITIES | ||||
Payables | ||||
Suppliers | 9,878 | 6,371 | 6,768 | |
Other payables | 3,311 | 5,278 | 4,881 | |
Total payables | 13,189 | 11,649 | 11,649 | |
Interest bearing liabilities | ||||
Leases | 71,214 | 67,259 | 68,539 | |
Total interest bearing liabilities | 71,214 | 67,259 | 68,539 | |
Provisions | ||||
Employee leave | 21,527 | 22,505 | 22,505 | |
Provision for restoration | 3,770 | 3,474 | 3,474 | |
Total provisions | 25,297 | 25,979 | 25,979 | |
Total liabilities | 109,700 | 104,887 | 106,167 | |
Net assets | 143,934 | 101,386 | 106,880 | |
EQUITY | ||||
Contributed equity | 100,023 | 107,179 | 125,277 | |
Asset revaluation surplus | 28,935 | 27,085 | 27,086 | |
Retained earnings | 14,976 | -32,878 | -45,483 | |
Total equity | 143,934 | 101,386 | 106,880 |
The above statement should be read in conjunction with the accompanying notes.
1. Right-of-use assets are included in the Leasehold Improvements Assets.
2. The Original Budget references the published 2020-21 Portfolio Budget Statements.
Budget Variances Commentary
The AEC's total assets of $253.6 million is higher when compared to the original budget. This is mainly due to an increase in appropriations receivable and non-financial assets.
Financial assets - Appropriations receivable is significantly higher due to additional funding appropriated for new measures and the bringing forward of $23.6 million forward years in funding to support preparation for the next federal election, which was not fully spent during the financial year.
Non-Financial assets - Non-financial assets are higher than anticipated mainly due to an unanticipated increase in the development of Computer Software.
The AEC’s total liabilities of $109.7 million is slightly higher when compared to the original budget. This is mainly due to the addition of new leases and the timing of payment of suppliers invoices.
Statement of Changes in Equity for the period 30 June 2021
Notes | 2021 | 2020 | Original Budget1 | |
$'000 | $'000 | $'000 | ||
CONTRIBUTED EQUITY | ||||
Opening balance | ||||
Balance carried forward from previous period | 107,179 | 96,315 | 107,177 | |
Adjusted opening balance | 107,179 | 96,315 | 107,177 | |
Transactions with owners | ||||
Contributions by owners | ||||
Departmental Capital Budget | 18,100 | 10,864 | 18,100 | |
Repealed Appropriation | -25,256 | 0 | 0 | |
Total transactions with owners | -7,156 | 10,864 | 18,100 | |
Closing balance as at 30 June | 100,023 | 107,179 | 125,277 | |
RETAINED EARNINGS | ||||
Opening balance | ||||
Balance carried forward from previous period | -32,878 | -10,818 | -32,877 | |
Adjustment on initial application of AASB 16 | 0 | 2,415 | 0 | |
Adjusted opening balance | -32,878 | -8,403 | -32,877 | |
Comprehensive income | ||||
(Deficit) / surplus for the period | 47,854 | -24,475 | -12,606 | |
Total comprehensive income | 47,854 | -24,475 | -12,606 | |
Closing balance as at 30 June | 14,976 | -32,878 | -45,483 | |
ASSET REVALUATION RESERVE | ||||
Opening balance | ||||
Balance carried forward from previous period | 27,085 | 23,941 | 27,086 | |
Adjusted opening balance | 27,085 | 23,941 | 27,086 | |
Comprehensive income | ||||
Other comprehensive income | 1,850 | 3,144 | 0 | |
Total comprehensive income | 1,850 | 3,144 | 0 | |
Closing balance as at 30 June | 28,935 | 27,085 | 27,086 | |
TOTAL EQUITY | ||||
Opening balance | ||||
Balance carried forward from previous period | 101,386 | 109,438 | 101,386 | |
Adjustment to opening balance | 0 | 2,415 | 0 | |
Adjusted opening balance | 101,386 | 111,853 | 101,386 | |
Comprehensive income | ||||
(Deficit) / surplus for the period | 47,854 | -24,475 | -12,606 | |
Other comprehensive income | 1,850 | 3,144 | 0 | |
Total comprehensive income | 49,704 | -21,331 | -12,606 | |
Transactions with owners | ||||
Contributions by owners | ||||
Departmental Capital Budget | 18,100 | 10,864 | 18,100 | |
Repealed Appropriation | -25,256 | 0 | 0 | |
Total transactions with owners | -7,156 | 10,864 | 18,100 | |
Closing balance as at 30 June | 143,934 | 101,386 | 106,880 |
The above statement should be read in conjunction with the accompanying notes.
1. The Original Budget references the published 2020-21 Portfolio Budget Statements.
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's equity position of $143.9 million is higher when compared to the original budget. This improved position is mainly due to a higher than expected operating surplus of $47.9 million against a budgeted deficit of $12.6 million in 2020-21, in addition to funding received as part of the 2020-21 Portfolio Additional Estimates to deliver government measures and to support the preparation for the next federal election.
Cash Flow Statement for the period ended 30 June 2021
Notes | 2021 | 2020 | Original Budget1 | |
$'000 | $'000 | $'000 | ||
OPERATING ACTIVITIES | ||||
Cash received | ||||
Appropriations | 186,046 | 203,063 | 173,950 | |
Rendering of services | 12,928 | 19,287 | 11,038 | |
Net GST received | 7,284 | 19,463 | 0 | |
Total cash received | 206,258 | 241,813 | 184,988 | |
Cash used | ||||
Employees | 76,526 | 81,466 | 86,365 | |
Suppliers | 86,868 | 109,035 | 85,484 | |
Interest payments on lease liabilities | 1,026 | 787 | 752 | |
Section 74 receipts transferred to the OPA | 22,151 | 39,356 | 0 | |
Total cash used | 186,571 | 230,644 | 172,601 | |
Net cash from operating activities | 19,687 | 11,169 | 12,387 | |
INVESTING ACTIVITIES | ||||
Cash used | ||||
Purchase of property, plant and equipment | 17,554 | 6,678 | 18,100 | |
Total cash used | 17,554 | 6,678 | 18,100 | |
Net cash (used by) investing activities | -17,554 | -6,678 | -18,100 | |
FINANCING ACTIVITIES | ||||
Cash received | ||||
Departmental Capital Budget | 12,202 | 6,550 | 18,100 | |
Total cash received | 12,202 | 6,550 | 18,100 | |
Cash used | ||||
Principal payments of lease liabilities | 14,477 | 11,953 | 12,387 | |
Total cash used | 14,477 | 11,953 | 12,387 | |
Net cash (used by) financing activities | -2,275 | -5,403 | 5,713 | |
Net (decrease) in cash held | -142 | -912 | 0 | |
Cash and cash equivalents at the beginning of the reporting period | 1,490 | 2,402 | 1,490 | |
Cash and cash equivalents at the end of the reporting period | 2.1 | 1,348 | 1,490 | 1,490 |
The above statement should be read in conjunction with the accompanying notes.
1. The Original Budget references the published 2020-21 Portfolio Budget Statements.
Budget Variances Commentary
Cash Flow Statement
The AEC's operating cash used was lower than anticipated when compared to the original budget. This is primarily due to lower than anticipated employee benefits and supplier expenses, as a result of delays in recruitment, procurement, and supplier activities.
The AEC’s investing cash used to purchase property, plant and equipment and financing cash received from the departmental capital budget are both lower when compared to the original budget. This is mainly due to unanticipated delays in capital works associated with the COVID-19 environment.
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https://www.transparency.gov.au/annual-reports/australian-electoral-commission/reporting-year/2020-21-14