For the year ended 30 June 2020
NET COST OF SERVICES
Depreciation and amortisation
Write-down and impairment of other assets
Revenue from contracts with customers
Total own-source revenue
Reversal of write-downs and impairment
Total own-source income
Net cost of services
Revenue from Government
Deficit on continuing operations
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus
Total other comprehensive income
Total Comprehensive income/(loss)
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
All variances above $150k and 2% of the relevant category are considered significant and explained below:
Suppliers: expenses were lower than budget by $6,139k (19.7% of Total expenses) primarily due to the implementation of AASB 16 Leases which replaces rent expense with depreciation and finance costs. Additionally, with costs relating to practical coursework needing to be postponed to next financial year due to the impact of COVID-19 on AFTRS operations in semester 1. Staff members took less annual leave than expected due to COVID-19 restrictions, and were therefore able to undertake work that would normally be expected to be performed by suppliers.
Depreciation and amortisation: expenses was higher than budget by $4,435k (14.2% of Total expenses) primarily due to the implementation of AASB 16 Leases which replaces rent expense with depreciation and finance costs.
Finance costs: expenses were higher than budget by $742k (2.4% of Total expenses) due to the implementation of AASB 16 Leases which replaces rent expense with depreciation and finance costs.
Revenue from contracts with customers: was lower than budget by $467k (5.4% of Total own-source revenue) due to the cancellation of face-to-face courses as a result of the impact of COVID-19.
Interest: was lower than budget by $208k (2.4% of Total own-source revenue) due to the reduction in interest rates during the financial year.