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Primary Financial Statements

Statement of Comprehensive Income for the period ended 30 June 2020

Original

2020

2019

Budget

Notes

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee Benefits

1.1A

30,967

30,289

33,899

Suppliers

1.1B

26,237

31,951

31,847

Depreciation

2.2

12,426

13,075

12,979

Finance costs

1.1C

20

0

0

Foreign exchange loss

0

37

0

Losses from asset disposal

46

438

0

Total Expenses

69,696

75,790

78,725

Own-source Income

Own-source revenue

Revenue from contracts with customers

1.2A

15,291

20,798

25,443

Interest on deposits

675

1,111

1,200

Other revenue

1.2B

924

394

150

Total own-source revenue

16,890

22,303

26,793

Gains

Gains from sale of assets

44

74

0

Foreign exchange gain

2

0

0

Total gains

46

74

0

Total own-source income

16,936

22,377

26,793

Net cost of services

(52,760)

(53,413)

(51,932)

Revenue from Government

44,773

47,377

44,800

Total Revenue from Government

44,773

47,377

44,800

Surplus/(Deficit) attributable to the Australian Government

(7,987)

(6,036)

(7,132)

Total comprehensive income/(loss) attributable to the Australian Government

(7,987)

(6,036)

(7,132)

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

Statement of Financial Position as at 30 June 2020

Original

2020

2019

Budget

Notes

$'000

$'000

$'000

ASSETS

Financial Assets

Cash and cash equivalents

2.1A

14,128

21,623

250

Trade and other receivables

2.1B

4,657

7,274

7,525

Investments

2.1C

26,100

17,200

31,695

Total financial assets

44,885

46,097

39,470

Non-Financial Assets

Buildings

2.2

94,768

95,054

97,500

Infrastructure, plant & equipment

2.2

27,428

28,563

28,144

Computer equipment

2.2

998

1,076

1,092

Computer software

2.2

4,324

4,888

4,326

Vehicles

2.2

1,097

1,489

711

Office Equipment

2.2

4

5

2

Ships, Launches and vessel

2.2

18,010

19,155

18,535

Library books

2.2

1

1

1

Prepayments

3,169

3,122

3,391

Inventories

208

203

249

Total non-financial assets

150,007

153,556

153,951

Total assets

194,892

199,653

193,421

LIABILITIES

Payables

Suppliers

1,991

2,394

3,070

Other payables

2.3

7,496

5,616

4,889

Total payables

9,487

8,010

7,959

Interest bearing liabilities

Leases

2.4

856

0

0

Total interest bearing liabilities

856

0

0

Provisions

Employee provisions

3.1

12,650

11,757

12,722

Total provisions

12,650

11,757

12,722

Total liabilities

22,993

19,767

20,681

Net assets

171,899

179,886

172,740

EQUITY

Contributed equity

88,357

88,357

88,357

Reserves

97,227

97,680

99,388

Retained surplus (accumulated deficit)

(13,685)

(6,151)

(15,005)

Total equity

171,899

179,886

172,740

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

Statement of Changes in Equity

Original

2020

2019

Budget

Notes

$'000

$'000

$'000

CONTRIBUTED EQUITY

Opening balance

Balance carried forward from previous period

88,357

88,207

88,357

Transactions with owners

Contributions by owners

Equity injection - Appropriations

0

150

0

Total transactions with owners

0

150

0

Closing balance as at 30 June

88,357

88,357

88,357

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

(6,151)

19,708

(7,873)

Comprehensive income

Surplus/(Deficit) for the period

(7,987)

(6,036)

(7,132)

Total comprehensive income

(7,987)

(6,036)

(7,132)

Transfers between equity components

453

(19,823)

(7,132)

Closing balance as at 30 June

(13,685)

(6,151)

(15,005)

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

97,680

77,857

99,388

Transfers between equity components

(453)

19,823

0

Closing balance as at 30 June

97,227

97,680

99,388

TOTAL EQUITY

Opening balance

Balance carried forward from previous period

179,886

185,772

179,872

Comprehensive income

Surplus/(Deficit) for the period

(7,987)

(6,036)

(7,132)

Total comprehensive income

(7,987)

(6,036)

(7,132)

Transactions with owners

Contributions by owners

Equity injection - Appropriations

0

150

0

Total transactions with owners

0

150

0

Closing balance as at 30 June

171,899

179,886

172,740

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

Accounting Policy

Equity injections

Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions).

Cash Flow Statement for period ended 30 June 2020

Original

2020

2019

Budget

Notes

$'000

$'000

$'000

OPERATING ACTIVITIES

Cash received

Appropriations

44,773

47,377

44,800

Sale of Goods and revenue from contracts with customers

21,349

23,785

25,752

Interest

800

901

1,200

GST receipts from ATO

3,248

3,517

-

Receipts from other

922

137

150

Total cash received

71,092

75,717

71,902

Cash used

Employees

29,729

28,956

32,908

Suppliers

30,106

34,504

34,049

Interest payments on lease liabilities

20

0

0

GST paid to ATO

1,775

1,460

0

Total cash used

61,630

64,920

66,957

Net cash from/(used by) operating activities

9,462

10,797

4,945

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant & equipment

50

74

29

Investments

0

8,900

3,545

Total cash received

50

8,974

3,574

Cash used

Purchase of property, plant and equipment

8,055

9,789

8,519

Investments

8,898

0

0

Total cash used

16,953

9,789

8,519

Net cash from/(used by) investing activities

(16,903)

(815)

(4,945)

FINANCING ACTIVITIES

Cash received

Contributed equity

0

150

0

Total cash received

0

150

0

Cash used

Principal payments of lease liabilities

54

0

0

Total cash used

54

0

0

Net Cash from/(used by) Financing activities

(54)

150

0

Net increase/(decrease) in cash held

(7,495)

10,132

0

Cash and cash equivalents at the beginning of the reporting period

21,623

11,491

250

Cash and cash equivalents at the end of the reporting period

2.1A

14,128

21,623

250

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

Budgetary Reporting of Major Variances (AASB1055)

The Budget variances reporting commentary provides a comparison between the 2019-20 Portfolio Budget Statements (PBS)provided to Parliament in May 2019 and the final outcome in the 2019-20 financial statements. The PBS is not audited.
Major changes in budget have been explained as part of the variance analysis where relevant.
Variances are considered to be 'major' where:

  1. the variance between budget and actual is greater than +/-10% of the budget for the line items; and
  2. the variance between budget and actual is greater than +/-2% of the relevant budget base.

Variance explanations will also be provided where there have been major changes to business activities that may not be numerically material but by nature may assist users in understanding underlying business changes that may have occurred since the original budget was released.
Where a revised budget has been presented to Parliament, AIMS may include variance explanations of major variances between the revised budget and actual amounts where they are considered relevant to an assessment of the discharge of accountability and to an analysis of the performance of AIMS.

Affected line items and statement

Explanations of major variances

Expenses

Employee Benefits were lower than budget, resulting from recruitments taking longer than planned and deferred due to COVID-19 controls $780k and the Enterprise Agreement renewal being later than planned $300k. AIMS also allocated approx. $2m in 2019-20 to fund Technology Transformation (TT) and AIMS early work on Reef Restoration and Adaptation (RRAP) innovation platforms. While the planning phase indicated these funds would be used for labour, as the projects entered execution phase some of the expenditure was deemed to be capital in nature for TT and COVID-19 delays deferred some RRAP expenditure to 2020-21.

Employee benefits

The majority of the $5.5m underspend in suppliers relates to the $10.2m Revenue from contracts with customers decrease. AIMS was not able to achieve the expected revenue due to COVID-19 impacts which meant some of the external costs allowed for to assist in earning that revenue were not required e.g. labour hire and contractors ($2m), science consumables ($3m) and collaboration payments ($1.5m) were all under budget.

Suppliers

However, with the temporary suspension of field work and with staff working from home due to COVID-19, preventative maintenance on vessels and buildings was brought forward.

Revenue

AIMS' Revenue from contracts with customers was impacted by COVID-19. Contract milestones were not able restrictions, which resulted in lower revenue recognition. There was also no new contracts for revenue from the research services external sources from March 2020.

Revenue from contracts with customers

Interest rates have been decreasing and were further impacted during COVID-19 and are half of what was budgeted approximately from 3% to 1.3% and therefore less interest revenue has been earnt from cash investments.

Interest received

Other income includes fuel tax credits, a sale of a block of land and revenue from an insurance claim.

Other income

Gains

AIMS does not budget for sale of assets or foreign exchange differences.

Assets

Cash and cash equivalents and Investments are different due to calculations at the end of the financial year dependent upon the maturities of the investments. For Budget AIMS accounts for all investments in total as the liquidity of the investments cannot be predicted during budget preparation.

Cash and cash equivalents & investments

With the drop in external revenue discussed above, this also impacted Trade and other receivables balance as all invoices were either not invoiced as contracts were not fulfilled or paid by contracted party.

Trade receivables

Liabilities

With the impact of COVID-19, supplier invoices were less overall in June than budget, they were paid within due dates and accruals for invoices were much less in 2019-20 than previous year actuals.

Suppliers

As AIMS was not able to complete contractual milestones due to COVID-19 impacts, revenue received in advance was accrued to be recognised in the next financial year when milestones are completed.

Other payables

AASB 16 Lease applies to accounts for 2019-20 and at the time of budget preparation, the lease liability transition on 1 July 2019 was not able to be calculated.

Lease

Cashflow

AIMS was significantly impacted by COVID-19 across the second half of the financial year. AIMS has received the cashflow, as noted in Contracted Assets and Liabilities, however was expecting further cash to be received for external revenue contracts or milestones completed across the second half of the year.

Sale of goods and services

Interest rates have been decreasing and were further impacted during COVID-19 and are half of what was budgeted approximately from 3% to 1.3% and therefore less interest revenue has been earnt from cash investments.

Interest

Other income includes fuel tax credits, a sale of a block of land and revenue from an insurance claim.

Other revenue

The majority of the $3.8m cash underspend in suppliers directly relates to the $4.3m decrease in cash received for external revenue. Outsourced contractor, post-doc and collaborative payments were not made as

Suppliers

AIMS contracted organisations were also impacted by COVID-19. However with reduced use in areas such as vessels and buildings, AIMS was able to do essential and/or preventative repairs and maintenance.

AIMS received higher than expected revenue on sale of vehicles with the retirement of the Business Services Group Manager retiring and their vehicle was sold.

Proceeds from sale of assets

AIMS level of investments are still as per previous year actual levels however the maturity of the investments are higher this financial year with more of them at greater than 3 months therefore policies state these are investments with the offsetting amount in cash at bank.

Cash at end of period and Investments