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Note 8. Other information

8.1 Aggregate assets and liabilities

2020
$’000

2019
$’000

8.1A: Aggregate assets and liabilities

Assets expected to be recovered in:

No more than 12 months

229,350

210,756

More than 12 months

329,922

136,318

Total assets

559,272

347,074

Liabilities expected to be settled in:

No more than 12 months

121,329

101,460

More than 12 months

285,483

82,571

Total liabilities

406,812

184,031

8.1B: Administered – aggregate assets and liabilities

Assets expected to be recovered in:

No more than 12 months

478,715

434,188

More than 12 months

Total assets

478,715

434,188

Liabilities expected to be settled in:1

No more than 12 months

33,150

24,933

More than 12 months

424,467

354,564

Total liabilities

457,617

379,497

1 2019 comparatives have been amended to reflect the correct split between current and non-current liabilities.

8.2 Expenditure relating to statutory boards and tribunal

Accounting Policy

Pursuant to Parts 11 and 12 of the ASIC Act and the Superannuation (Resolution of Complaints) Act 1993, ASIC is required to support the Companies Auditors Disciplinary Board and the Superannuation Complaints Tribunal. Employee and administrative expenditure incurred on behalf of this board and the tribunal are included in the Statement of Comprehensive Income of ASIC.

2020
$’000

2019
$’000

Companies Auditors Disciplinary Board

502

427

Superannuation Complaints Tribunal

7,686

7,502

The Superannuation Complaints Tribunal is an independent body with distinct responsibilities as set out under the Superannuation (Resolution of Complaints) Act 1993 and has operated under the budgetary umbrella of ASIC since 1 July 1998.

8.3 Assets of deregistered companies vesting in ASIC

Section 601AD of the Corporations Act 2001 provides that, on deregistration of a company, all of the company’s property vests in ASIC. ASIC takes a proactive approach to administering vested property and accounts for any proceeds on realisation of those assets in accordance with its statutory duties.

Vested assets are not available to ASIC and are not recognised in the financial statements.

2020
Quantity

2019
Quantity

Class of asset

Land

592

638

Shares

122

117

Other

99

90

Closing balance

813

845

Land is comprised of real property as described on the relevant Land Titles Registry. Shares are comprised of parcels of shares in both private and publicly listed companies and include those parcels held by the company as trustee. Other assets include such property as intellectual property (e.g. trademarks) and mortgages.

8.4 Security deposits from dealers, investment advisers and liquidators

The Corporations Act 2001 and the Corporations Regulations 2001 require applicants for a dealer’s or investment adviser’s licence, and applicants for registration as a liquidator, to lodge a security deposit with ASIC. These monies, deposits, stock, bonds or guarantees are not available to ASIC and are not recognised in the financial statements.

Note 8.4: Security deposits from dealers, investment advisers and liquidators

2020
$’000

2019
$’000

Security deposits under Corporations Regulations 2001 regulation 7.6.02AA (dealers and investment advisers)

Cash (at bank)

83

83

Inscribed stock

20

Bank guarantees

8,780

8,900

Closing balance

8,863

9,003

Security deposits under the Corporations Act 2001 s1284(1) (liquidators)

Insurance bond

1,800

1,800

Closing balance

1,800

1,800

8.5 Budgetary reports and explanations of major variances

8.5A: Departmental Budgetary Reports

The following tables provide a comparison of the original budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 final outcome as presented in accordance with Australian Accounting Standards for ASIC. The budget is not audited. Explanations for variances greater than +/- 10% and greater than +/- $5m are provided.

Statement of Comprehensive Income

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

NET COST OF SERVICES

Expenses

Employee benefits

275,356

238,558

36,798

Suppliers

149,338

163,782

(14,444)

Depreciation and amortisation

63,481

39,676

23,805

Finance costs – unwinding of restoration provision

1,397

5,676

(4,279)

Impairment loss on financial instruments

40

40

Write-down and impairment of assets

2

2

Total expenses

489,614

447,692

41,922

LESS:

Own-source revenue

Rendering of services

1,703

2,000

(297)

Operating sublease rent and property recoveries

1,454

2,700

(1,246)

Other revenue

14,903

2,160

12,743

Total own-source revenue

18,060

6,860

11,200

Gains

Reversal of write-downs and impairment

57

57

Total gains

57

57

Net Cost of Services

471,497

440,832

30,665

Total revenue from Government

403,261

402,219

1,042

Surplus/(Deficit)

(68,237)

(38,613)

(29,624)

OTHER COMPREHENSIVE INCOME

Items not subject to reclassification to net cost of services

Changes in asset revaluation reserve

Total comprehensive income/(loss)

(68,237)

(38,613)

(29,624)

Explanations of major variances

Affected line items

Expense

Employee benefits were higher than budgeted due mainly to the application of additional revenue from Government received as part of the Mid-Year Economic and Fiscal Outlook (MYEFO) in December 2019 for new budget measures, revaluation of employee entitlement provisions and accelerated enforcement actions funded from the Enforcement Special Account (ESA).

Employee benefits

Depreciation and amortisation expenses were higher than budgeted due mainly to the application of AASB16 Leases.

Depreciation and amortisation

Own-source revenue

The increase mainly relates to higher than expected court cost recoveries. These revenues are unpredictable and therefore subject to variation.

Other revenue

Statement of Financial Position

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

ASSETS

Financial assets

Cash and cash equivalents

41,151

62,703

(21,552)

Trade and other receivables

170,493

112,766

57,727

Total financial assets

211,644

175,469

36,175

Non-financial assets

Buildings

236,404

26,546

209,858

Plant and equipment

19,511

9,520

9,991

Computer software

74,007

78,952

(4,945)

Other non-financial assets

17,706

13,846

3,860

Total non-financial assets

347,629

128,864

218,764

Total assets

559,273

304,333

254,939

LIABILITIES

Payables

Suppliers

30,798

42,486

(11,688)

Other payables

37,217

36,211

1,006

Total payables

68,015

78,697

(10,682)

Interest-bearing liabilities

Leases

242,810

242,810

Total interest-bearing liabilities

242,810

242,810

Provisions

Employee provisions

83,248

68,455

14,793

Other provisions

12,789

14,181

(1,392)

Total provisions

96,037

82,636

13,401

Total liabilities

164,052

161,333

2,719

Net assets

395,221

143,000

252,221

EQUITY

Contributed equity

474,633

459,075

15,558

Reserves

22,500

17,137

5,363

Accumulated deficits

(344,723)

(333,212)

(11,511)

Total equity

152,410

143,000

9,410

Explanations of major variances

Affected line items

Financial assets

The decrease in cash and cash equivalents is mainly attributed to timing differences in funding received and accelerated expenditure incurred with respect to the ESA.

Cash and cash equivalents

The increase in trade and other receivables is mainly attributable to a $34 milliion lease incentive receivable recognised by the application of AASB16 Leases.

Trade and other receivables

Non-financial assets and Equity

The increase in these non-financial assets is mainly attributable to the application of AASB16 Leases. Refer to Note 3.2A.

Buildings

The variance is due to upgraded expenditure on devices to enable remote working, mainly associated with COVID-19.

Plant & equipment

Payables

The variance is due to the timing of supplier payments.

Suppliers

The increase is attributable to the application of AASB16 Leases.

Interest-bearing liabilities

Provisions

The variance is due to higher than expected increases and revaluations to employee provisions, mainly attributable to changes to valuation discount rates and increases to staff numbers associated with additional revenue received from Government as part of MYEFO for new budget measures and accelerated enforcement actions funded from the ESA.

Employee provisions

Equity

The increase in equity is attributable to a higher than expected asset revaluation adjustment to Reserves in 2018–19, subsequent to the publication of the PBS.

Reserves

Statement of Changes in Equity

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

CONTRIBUTED EQUITY

Opening balance

436,058

431,649

Transactions with owners

Contributions by owners

Equity injections – Appropriations

13,426

2,277

11,149

Departmental capital budget

25,149

25,149

Total transactions with owners

38,575

27,426

11,149

Closing balance as at 30 June

474,633

459,075

15,558

RETAINED EARNINGS

Opening balance

(295,515)

(294,599)

(916)

Adjustment on initial application of AASB 16

19,028

19,028

Adjusted opening balance

(276,487)

(294,599)

18,112

Comprehensive income

Surplus/(Deficit) for the period

(68,237)

(38,613)

(29,624)

Total comprehensive loss

(68,237)

(38,613)

(29,624)

Closing balance as at 30 June

(344,724)

(333,212)

(11,512)

ASSET REVALUATION RESERVE

Opening balance

22,500

17,137

Comprehensive income

Other comprehensive income

Total comprehensive income

Closing balance as at 30 June

22,500

17,137

5,363

TOTAL EQUITY

Opening balance

163,043

154,187

8,856

Adjustment on initial application of AASB 16

19,028

19,028

Adjusted opening balance

182,071

154,187

27,884

Comprehensive income

Other comprehensive income

Surplus/(Deficit) for the period

(68,237)

(38,613)

(29,624)

Total comprehensive loss

(68,237)

(38,613)

(29,624)

Transactions with owners

Contributions by owners

Equity injections – Appropriations

13,426

2,277

11,149

Departmental capital budget

25,149

25,149

Total transactions with owners

38,575

27,426

11,149

Closing balance as at 30 June

152,409

143,000

9,409

Explanations of major variances

Affected line items

Equity injections – Appropriations was higher than budgeted due mainly to the application of additional revenue from Government received as part of MYEFO for new budget measures.

Equity injections – Appropriations

Adjustment on initial application of AASB 16.

Adjustment on initial application of AASB 16

The increase to the deficit is mainly attributable to the application of AASB16 Leases and accelerated enforcement actions funded from the ESA.

Surplus/(Deficit) for the period – Retained earnings

Cash Flow Statement

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

OPERATING ACTIVITIES

Cash received

Appropriations

426,545

402,219

24,326

Operating cash received

1,703

4,700

(2,997)

Net GST received

20,922

20,922

Cost recoveries

8,057

8,057

Other cash received

10,887

1,800

9,088

Total cash received

468,114

408,719

59,395

Cash used

Employees

262,990

238,558

24,432

Suppliers

194,067

169,098

24,969

Interest payments on lease liabilities

1,209

1,209

Transfers to the Official Public Account

20,667

1,063

19,604

Total cash used

478,933

408,719

70,214

Net cash from/(used by) operating activities

(10,819)

(10,819)

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment

34,756

27,426

7,330

Total cash used

(34,756)

(27,426)

(7,330)

Net cash (used by) investing activities

(34,756)

(27,426)

(7,330)

FINANCING ACTIVITIES

Cash received

Appropriations – contributed equity

35,967

27,426

8,541

Total cash received

35,967

27,426

8,541

Cash used

Principal payments of lease liabilities

14,462

14,462

Total cash used

(14,462)

(14,462)

Net cash from financing activities

21,505

21,505

Net increase/(decrease) in cash held

(24,070)

(24,070)

Cash at the beginning of the reporting period

65,221

62,703

2,518

Cash at the end of the reporting period

41,151

62,703

(21,552)

Explanations of major variances

Affected line items

Cash received

The increase relates to higher Own-source revenue receipts. These receipts are unpredictable and therefore subject to variation.

Cost recoveries & Other cash received

Net GST received is not budgeted for in the Portfolio Budget Statements (PBS). This item is offset against the Cash used – Suppliers original budget disclosed in the PBS.

Net GST received/Suppliers

Equity injections – Appropriations was higher than budgeted due mainly to the application of additional revenue from Government received as part of MYEFO for new budget measures.

Appropriations – contributed equity

Cash used

Employee and supplier cash used were higher than budgeted due mainly to the application of additional revenue from Government received as part of MYEFO for new budget measures, and accelerated enforcement actions funded from the ESA, along with higher supplier prepayments.

Employees and Suppliers

Increase in the Purchase of property, plant and equipment was due mainly to the application of additional revenue from Government received as part of MYEFO for new budget measures.

Purchase of property, plant and equipment

The increase relates to higher Own-source revenue receipts. These receipts are unpredictable and therefore subject to variation.

Transfers to the Official Public Account

The increase relates to the application of AASB16 Leases.

Principal and interest payments – lease liabilities

8.5B: Administered budgetary reports

The following tables provide a comparison of the original budget as presented in the 2019–20 Portfolio Budget Statements (PBS) to the 2019–20 final outcome as presented in accordance with Australian Accounting Standards for the entity. The budget is not audited. Explanations of variances greater than +/- 10% and greater than +/- $5m are provided.

Administered Schedule of Comprehensive Income

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

EXPENSES

Grants

6,255

7,083

(828)

Impairment loss allowance on financial instruments

69,110

61,156

7,954

Claims for unclaimed monies

127,163

72,097

55,066

Promotional costs for MoneySmart initiatives

565

570

(5)

Total expenses

203,093

140,906

62,187

LESS:

Own-source revenue

Taxation revenue

Fees

814,536

854,324

(39,788)

Supervisory cost recovery levies

59,602

19,028

40,574

Total taxation revenue

874,138

873,352

786

Non-taxation revenue

Supervisory cost recovery levies

263,288

242,688

20,600

Fees and fines

221,036

218,117

2,919

Unclaimed monies

201,896

100,665

101,231

Total non-taxation revenue

686,220

561,470

124,750

Total revenue

1,560,357

1,434,822

125,536

Net contribution by services

1,357,264

1,293,916

63,349

Explanations of major variances

Affected line items

The increase in the impairment loss allowance is due to unexpected environmental and economic factors.

Impairment loss allowance on financial instruments

The increase in claims for unclaimed monies is due to the revaluation adjustment of the claims provision. Refer to the Accounting Policy note at 4.2B.

Claims for unclaimed monies

The increase is due to new expenditure measures approved as part of MYEFO, leading to higher than budgeted cost recoveries.

Supervisory cost recovery levies/Taxation revenue

The increase in revenue for unclaimed monies is due to lodgement revenue received under the Banking Act 1959 and Life Insurance Act 1995.

Non-taxation revenue unclaimed monies

Administered Schedule of Assets and Liabilities

Actual

Original Budget

Variance

2020
$’000

2020
$’000

2020
$’000

ASSETS

Financial assets

Cash and cash equivalents

1,435

1,965

(530)

Supervisory cost recovery levies receivable

330,214

330,214

Fees and fines receivable

139,165

393,053

(253,888)

Trade and other receivables

7,901

6,641

1,260

Total assets administered on behalf of Government

478,714

401,659

77,055

LIABILITIES

Payables and provisions

Suppliers and other payables

40,333

36,685

3,648

Unclaimed monies provisions

417,286

344,640

72,646

Total liabilities administered on behalf of Government

457,619

381,325

76,294

Net assets/(liabilities)

21,096

20,334

762

Explanations of major variances

Affected line items

The variance is due to the classification, where the Supervisory cost recovery levies receivable and Trade and other receivables were budgeted for in Fees and fines receivable. The increase in total receivables arises as the Supervisory cost recovery levies were recognised in the budget on a cash basis whereas the actuals are recognised on an accrual basis.

Supervisory cost recovery levies receivable/Fees and fines receivable/Trade and other receivables

This is mainly due to an increase in the value of unidentified payments received.

Suppliers and other payables

The provision has been impacted by significantly higher lodgement revenue and an actuarial review of claims patterns and economic factors resulting in lower discount rate being applied.