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Financial statements

Statement of Comprehensive Income for the period ended 30 June 2020

Notes

2020

2019

Original Budget

2020

$'000

$'000

$'000

EXPENSES

Employee benefits

1.1A

262,796

240,419

269,950

Suppliers expenses

1.1B

438,377

475,871

478,339

Depreciation and amortisation

2.2A

131,474

60,027

84,998

Finance cost

3

-

-

Interest on lease liabilities

5,086

-

-

Write-down and impairment of assets

1.1C

31,109

2,997

-

Foreign exchange losses

1.1D

28

161

-

Total Expenses

868,873

779,475

833,287

LESS:

OWN-SOURCE INCOME

Revenue from contract with customers

1.2A

3,031

4,347

4,076

Resources received free of charge

158

168

-

Total own-source revenue

3,189

4,515

4,076

Gains

Reversals of previous asset write-downs and impairment

2.2A

2,602

115

-

Total gains

2,602

115

-

Total own-source income

5,791

4,630

4,076

Net cost of services

(863,082)

(774,845)

(829,211)

Revenue from Government

1.2B

763,900

743,530

744,212

Deficit attributable to the Australian Government

(99,182)

(31,315)

(84,999)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation reserves

2.2A

18,084

11,302

-

Total other comprehensive income

18,084

11,302

-

Total comprehensive loss attributable to the Australian Government

(81,098)

(20,013)

(84,999)

Budget Variances Commentary

The financial statements 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 Australian Signals Directorate. The Budget is not audited.

As per the Department of Finance’s guidance on an accounting standard, the following threshold has been disclosed: -

Variances are considered to be ‘major’ based on the following criteria:

  • the variance between budget and actual is greater than 10%; and
  • the variance between budget and actual is greater than 2% of total expenses; or
  • the variance between budget and actual is below this 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 performance of ASD.

In some instances, a budget has not been provided for in the PBS, for example non-cash items such as asset revaluations, foreign exchange and sale of asset adjustments. Unless the variance is considered ‘major’ no explanation has been provided.

Statement of Comprehensive Income

Supplier Expenses

Supplier expenses were lower than budget predominately due to the reclassification of $31.2 million in lease payments from suppliers expenses to depreciation expense on right of use assets on adoption of AASB16. In addition, some procurement was delayed due to Covid-19 restrictions.

Depreciation and amortisation

Depreciation expenses were higher than budget as the adoption of AASB16 resulted in the recognition of $41.7 million in depreciation expense on right of use assets.

Statement of Financial Position for the period ended 30 June 2020

Notes

2020

2019

Original Budget

2020

$'000

$'000

$'000

ASSETS

Financial Assets

Cash and cash equivalents

2.1A

35,630

-

54,455

Trade and other receivables

2.1B

80,168

16,057

4,353

Total Financial Assets

115,798

16,057

58,808

Non-Financial Assets 1

Buildings and Infrastructure

2.2A

466,308

42,033

2,581

Plant and equipment

2.2A

290,638

262,257

380,915

Intangibles

2.2A

26,006

24,115

9,818

Heritage assets

2.2A

244

244

-

Prepayments

2.2B

95,276

107,848

15,707

Total Non-Financial Assets

878,472

436,497

409,021

Total Assets

994,270

452,554

467,829

LIABILITIES

Payables

Bank overdraft

-

2,245

-

Suppliers payables

90,848

38,146

38,536

Employee payables

2.3A

9,775

4,406

-

Other payables

2.3B

860

5,984

-

Total Payables

101,483

50,781

38,536

Interest Bearing Liabilities

Leases

2.4A

379,619

-

-

Total Interest Bearing Liabilities

379,619

-

-

Provisions

Employee provisions

93,233

76,474

64,184

Total Provisions

93,233

76,474

64,184

Total Liabilities

574,325

127,255

102,720

NET ASSETS

419,945

325,299

365,109

EQUITY

Contributed equity

522,318

345,312

533,058

Reserves

29,386

11,302

-

Accumulated deficit

(131,759)

(31,315)

(167,949)

TOTAL EQUITY

419,945

325,299

365,109

1. Right-of-use assets are included in the following line items: Buildings and Infrastructure

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

Budget Variances Commentary

Statement of Financial Position

Cash and cash equivalents

Refer to the Cash Flow Statement for budget variance explanations.

Trade and other receivables

Total trade and other receivables were higher than budget for the appropriation receivable, mainly due to lower cash payments, in particular lower cash used supplier expenses.

Non-financial assets

Buildings and infrastructure assets are higher than budgeted due to the adoption of AASB16 resulting in the recognition of $444 million in right of use assets. When this adjustment is included, and when buildings and infrastructure, plant and equipment and intangibles are viewed as a whole, these items are in line with budget.

Prepayments

The prepayment asset is higher than budget as the budget was underestimated which were not known at the time of the 2019-20 PBS. The prepayment asset is in line with 2018-19 actuals.

Leases

The leases liability is a result of the adoption of AASB16.

Employee provisions

Employee provisions are higher than budget due to actuarial adjustments and an increase in both staff and average leave balance per person.

Equity

Refer to Statement of Changes in Equity for budget variance explanations

Statement of Changes in Equity for the period ended 30 June 2020

Notes

2020

2019

Original Budget

2020

$'000

$'000

$'000

CONTRIBUTED EQUITY

Opening balance

345,312

-

359,818

Adjustment for non-financial assets

170

-

-

Adjusted opening balance

345,482

-

359,818

Contribution by owners

Equity injection - Appropriations

3.1A

176,836

124,200

173,240

Restructuring

-

221,112

-

Closing balance as at 30 June

522,318

345,312

533,058

ACCUMULATED DEFICIT

Opening balance

(31,315)

-

(89,250)

Adjustment for prior period appropriation

(2,804)

-

-

Adjustment on initial application of AASB 16

1,542

-

-

Adjusted opening balance

(32,577)

-

(82,950)

Comprehensive income

Deficit for the period

(99,182)

(31,315)

(84,999)

Closing balance as at 30 June

(131,759)

(31,315)

(167,949)

ASSET REVALUATION RESERVE

Opening balance

11,302

-

-

Comprehensive income

Other Comprehensive Income

2.2A

18,084

11,302

-

Closing balance as of 30 June

29,386

11,302

-

TOTAL EQUITY

Adjusted Opening balance

325,299

-

276,868

(Deficit) for the period

(100,444)

(20,013)

(84,999)

Other Comprehensive Income

18,084

-

-

Equity injection - Appropriations

177,006

124,200

173,240

Restructuring

-

221,112

-

Closing balance as at 30 June

419,945

325,299

365,109

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

Accounting Policy

(a) Equity Injections
Amounts appropriated which are designated as ‘equity injections’ (less any formal reductions) are recognised directly in contributed equity in that year.

(b) Restructuring of Administrative Arrangements
Net assets/liabilities received from or relinquished to another Australian Government agency or authority under a restructuring of administrative arrangements are recognised as contributions or distributions of equity respectively, at their net book value.

Budget Variances Commentary

Statement of Changes in Equity

Asset Revaluation Reserve

No budget was provided for in the PBS for asset revaluations due to the uncertainty in measurement and its non-cash nature.

Statement of Cashflows for the period ended 30 June 2020

Notes

2020

2019

Original Budget

2020

$'000

$'000

$'000

OPERATING ACTIVITIES

Cash received

Appropriations

700,648

737,884

744,212

Goods and services (including cost recovery)

-

3,023

4,072

Interest received

-

1

-

GST received

33,225

12,287

46,130

Other

401

1,170

-

Total cash received

734,274

754,365

794,414

Cash used

Employees

(248,176)

(222,730)

(267,013)

Suppliers

(405,180)

(509,596)

(479,365)

GST paid

(32,575)

(14,571)

(46,130)

Section 74 receipts transferred to OPA

-

(1)

-

Other

-

(14)

-

Interest payments on lease liabilities

(5,086)

-

-

Total cash used

(691,017)

(746,912)

(792,509)

Net cash from operating activities

43,257

7,453

1,905

INVESTING ACTIVITIES

Cash used

Purchase of buildings and infrastructure

(27,521)

(25,723)

-

Purchase of plant and equipment

(108,308)

(105,722)

(172,300)

Purchase of intangibles

(17,528)

(8,890)

(941)

Total cash used

(153,357)

(140,335)

(173,241)

Total Cash Received by investing activities

(153,357)

(140,335)

(173,241)

FINANCING ACTIVITIES

Cash received

Contributed equity

179,007

130,636

173,240

Total cash received

179,007

130,636

173,240

Cash used

Principal payments of lease liabilities

(31,037)

-

-

Total cash used

(31,037)

-

-

Net cash from financing activities

147,970

130,636

173,240

Net increase / (decrease) in cash held

37,870

(2,246)

1,904

Cash and cash equivalents at the beginning of the reporting period

(2,245)

-

52,551

Effect of exchange rate movements on cash and cash equivalents at the beginning of the reporting period

5

1

-

Cash and cash equivalents at the end of the reporting period

2.1A

35,630

(2,245)

54,455

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

Budget Variances Commentary

Statement of Cashflows

GST received, GST paid and Suppliers cash used

GST received and paid is driven by cash used with suppliers. All are lower than budgeted due to a decrease in supplier expenses.

Interest payments on lease liabilities, Principal payments of lease liabilities cash used

The impacts of AASB 16 Leases on cash flow were not factored in at the time of the preparation of the budget, resulting in variances across a number of cashflow items.

Administered Schedule of Comprehensive Income for the period ended 30 June 2020

2020

2019

Original Budget

2020

$'000

$'000

$'000

NET COST OF SERVICES

Deficit attributable to the Australian Government

-

-

-

Total comprehensive income/(loss)

-

-

-

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

Administed Schedule of Assets and Liabilities as at 30 June 2020

2020

2019

Original Budget

2020

$'000

$'000

$'000

ASSETS

Cash and cash equivalents

13,088

19,568

-

Total assets administered on behalf of Government

13,088

19,568

-

-

-

-

LIABILITIES

Other payables

13,088

19,568

-

Total payables

13,088

19,568

-

Total liabilities administered on behalf of Government

13,088

19,568

-

Net assets

-

-

-

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

Administered Reconciliation Schedule for the period ended 30 June 2020

2020

2019

$'000

$'000

Opening assets less liabilities as at 1 July

-

-

Closing assets less liabilities as at 30 June

-

-

Administered Cash Flow Statement for the period ended 30 June 2020

2020

2019

$'000

$'000

Cash and cash equivalents at the beginning of the reporting period

19,568

-

Cash from the Official Public Account

Special Accounts

2,449

25,978

Total cash from the Official Public Account

2,449

25,978

Cash to the Official Public Account

Special Accounts

(8,929)

(6,410)

Total cash to the Official Public Account

(8,929)

(6,410)

Cash and cash equivalent at the end of the reporting period

13,088

19,568