Note 12. Explanations of major budget variances
The following tables provide explanations of variances between the original budget as presented in the 2019–20 Portfolio Budget Statements (PBS) and the 2019–20 final outcome as presented in accordance with Australian Accounting Standards for AITSL. The Budget is not audited.
Variances are considered to be major based on the following criteria:
- the variance between the PBS and the final result is greater than 10% of the original budget for a line item, and
- the variance between the PBS and the final result is greater than $300,000, or
- the item is below the threshold but is considered important for the reader's understanding or is relevant to an assessment of the discharge of accountability and to an analysis of the company's performance.
Explanation of major variances | Affected statement line items |
---|---|
Sales of services and expenses | |
AITSL was tasked with a number of additional projects through the year. To undertake the work AITSL was provided with further income of $3,729,000 from Federal and state and territory governments. The majority of the additional work was completed during the year to 30 June 2020 and has required an increase in expenditure for both employees and programs. | Statement of Comprehensive Income
Statement of Cash Flows
|
Supplier and other payables | |
The additional tasks undertaken by AITSL together with the unexpected impact of the COVID-19 virus caused some expenditure to be incurred later in the year than had been planned. This has resulted in an increase in the supplier and other payables at year end. | Statement of Financial Position
Statement of Cash Flows
|
Cash and financial assets | |
Interest rates offered on bank term deposits have reduced considerably throughout the 2019–20 year. AITSL has been able to earn higher interest from bank deposits and has moved its funds into the bank accounts as term deposits matured. | Statement of Financial Position
Statement of Cash Flows Investing activities
|
Property, furniture and equipment | |
AITSL has adopted the new accounting standard AASB 16 for the first time in the current year. | Statement of Financial Position
Statement of Comprehensive Income
Statement of Cash Flows
|
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https://www.transparency.gov.au/annual-reports/australian-institute-teaching-and-school-leadership-limited/reporting-year/2019-20-25