For the year ended 30 June 2020

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:

Sale of goods and rendering of services: was less than budget by $726k (2.2% of Total cash received from operating activities) due to the cancellation of face-to-face courses as a result of the impact of COVID-19.

Suppliers: Cash used was $7,305k lower than budget (23.6% of Total cash used by operating activities) primarily due to the implementation of AASB 16 Leases which replaces supplier payments with interest payments on lease liabilities and principal payments of lease liabilities. Additionally, with costs relating to practical coursework 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.

Interest payments on lease liabilities: Cash used was $742k higher than budget (2.4% of Total cash used by operating activities) due to the implementation of AASB 16 Leases which replaces supplier payments with interest payments on lease liabilities and principal payments of lease liabilities.

Purchase of property, plant & equipment: Cash used was $215k lower than budget (12.1% of Total cash used by investing activities) due to a reduction in capital expenditure following reduced revenue.

Principal payments of lease liabilities: Cash used was $4,435k higher than budget (14.4% of Total cash used by financing activities) due to the implementation of AASB 16 Leases which replaces supplier payments with interest payments on lease liabilities and principal payments of lease liabilities.