Go to top of page

SIEF Notes to and forming part of the financial report

Overview

The Science and Industry Endowment Fund (referred to as “the Fund”) was established under the Science and Industry Endowment Act 1926 with the Trustee of the Fund being the CSIRO Chief Executive and is a not-for-profit entity. An appropriation of 100 000 pounds was received at the time the Fund was established. The principal activity of the Fund is to provide assistance to persons engaged in scientific research and in the training of students in scientific research.

In October 2009 the Minister for Innovation, Industry, Science and Research announced a gift of $150 million to be donated by CSIRO to the Fund. The gift is intended to be used for scientific research for the purposes of assisting Australian industry, furthering the interests of the Australian community or contributing to the achievement of Australian national objectives. The gift was made subject to the terms of a Deed of Gift between the Trustee and CSIRO dated 15 October 2009. In June 2018 and June 2020, the CSIRO made a further gift of $10 million and $5 million, respectively, to the Fund. These gifts were also made subject to the terms of the Deed of Gift between the Trustee and CSIRO dated 15 October 2009. The total cash payments made in 2019-20 under the Deed of Gift were $4,109,348 (GST exclusive).

In June 2017, the NSW Government acting through the NSW Department of Industry provided a $25 million endowment to SIEF to create the NSW Generation STEM Program. The program will be delivered over a 10-year period and will implement activities including research, to increase the supply of STEM (science, technology, engineering and mathematics) skilled labour to meet the current and future needs of New South Wales. The total cash payments made in 2019-20 under the NSW Endowment were $97,434 (GST exclusive).

In November and December 2018, National ICT Australia Limited (NICTA), a controlled entity of CSIRO, provided two gifts to SIEF in the total amount of $20m to fund the Future National ICT Industry Platform Program. A further $5m was provided to SIEF by NICTA in December 2019. The program is a scale of research activities and projects that address challenges in the field of information and communications technology (ICT) and it is intended that the outcomes from the Program will benefit Australia by helping create new Australian technology-based industries and/or applied technology platforms that can reach global scale. The total payments made in 2019-20 under the Future National ICT Industry Platform Program were $9,099,291 (GST exclusive).

In April 2019, SIEF received a bequest from the estate of the late David Ross Metcalf for $1 million. The Trustee determined to use the bequest for industry/research engagement programs. The funds were all expended in 2018-19. There were no cash payments in 2019-20.

In any one financial year a maximum amount of $25 million exclusive of Goods and Services Tax (GST) can be disbursed from the Fund for the CSIRO GIFT (under the Deed of Gift), NSW Generation STEM Program and the Future National ICT Industry Platform Program. The total payments made under these gifts and programs in 2019-20 were $13,306,073 (GST exclusive).

Basis of Preparation of the Financial Statements

The financial statements for the Fund are general purpose financial statements and are required by:

  • Section 10 of the Science and Industry Endowment Act 1926.

The financial statements have been prepared in accordance with:

  • Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements (Tier 2) issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention. No allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars and values are rounded to the nearest dollar unless otherwise specified.

Key Judgements and Estimates

The accounting policies are set out below. Within the current financial year, there were no significant management judgements or estimates used in the preparation of the financial statements.

New Australian Accounting Standards

All new/revised/amending standards and/or interpretations that were issued prior to the signing of these statements and applicable to the current reporting period were adopted by the Science and Industry Endowment Fund. This includes the following new amended standard:

Standard/Interpretation

Nature of change in accounting policy

AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities and AASB 1058 Income of Not-For-Profit Entities

AASB 2016-8 and AASB 1058 became effective 1 July 2019.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the Fund to further its objectives, and where volunteer services are received.

The details of the changes in accounting policies are disclosed below.

Application of AASB 1058 Income of Not-For-Profit Entities

The Fund adopted AASB 1058 using the modified retrospective approach. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under the various applicable AASBs and related interpretations.

Under the new income recognition model the Fund shall first determine whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the Fund applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the Fund shall consider whether AASB 1058 applies.

In terms of AASB 1058, the Fund is required to recognise volunteer services at fair value if those services would have been purchased if not provided voluntarily, and the fair value of those services can be measured reliably.

Events after the Reporting Period

The Trustee is not aware of any other significant events occurring after the reporting date that could impact on the financial report.

Taxation

The Fund is exempt from all forms of taxation except Goods and Services Tax (‘GST’).

Note 1 Scientific Research Grants

2020

2019

$

$

Future National ICT Industry Platform Program

7,694,540

9,333,057

Research Infrastructure Investment

990,000

6,615,000

Special Research Program

0

1,440,000

Promotion of Science Program - Scholarships and Fellowships

607,848

2,810,785

Experimental Development Program

2,254,037

3,010,767

NSW Endowment Grant

0

2,000,000

Research Project Grants

0

400,000

Total

11,546,425

25,609,609

The Fund is a subsidiary entity of the Commonwealth Scientific and Industrial Research Organisation (CSIRO). For the 2019-20 financial year, the Fund has recognised $11.5m in grant expenses as transferred directly to CSIRO to support scientific research and infrastructure projects within CSIRO and/or collaborative projects with external organisations (2018-19: $25.6m).

Note 2 NICTA and CSIRO Gifts

The $5m gifts received from both NICTA and CSIRO are to be used to further SIEF’s objectives, where the consideration to acquire an asset was significantly less than fair value. The cash received is recognised as a financial asset under AASB9 Financial Instruments as highlighted in paragraph 8 of AASB1058.

Note 3 Interest Revenue

Interest revenue is recognised using the effective interest method as set out in AASB 9 Financial Instruments.

Note 4 Cash and cash equivalents

2020

2019

$

$

Cash at bank

14,118,883

3,878,631

Term deposits

50,485,000

61,138,932

Total

64,603,883

65,017,563

Cash and cash equivalents include cash on hand and demand deposits in bank accounts with an original maturity of twelve months or less that are readily convertible to known amounts of cash and subject to insignificant risk of change in value. Cash is recognised at its nominal amount.

Note 5 Trade and other receivables

2020

2019

$

$

Interest receivable

428,189

793,925

GST receivable

36,834

1,423,500

Total receivables

465,023

2,217,425

Less impairment loss allowance

0

0

Total trade and other receivables

465,023

2,217,425

Trade receivables are financial assets held for collecting the contractual cash flows of the asset, where the cash flows are solely payments of principal and interest that are not provided at below-market interest rates. They are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

Note 6 Accrued Expenses

2020

2019

$

$

Grants Payable

0

1,043,744

Service Fee

0

122,270

Audit Fee

15,500

15,500

Total

15,500

1,181,514

Note 7 Cash Flow Reconciliation

2020

2019

$

$

Reconciliation of operating surplus to net cash from/(used by) operating activities:

Operating surplus/(deficit)

(1,000,068)

(2,926,144)

Changes in assets and liabilities

(Increase)/decrease in receivables

1,752,402

(1,315,724)

Increase/(decrease) in payables

(1,166,014)

1,078,195

Net cash from/(used by) operating activities

(413,680)

(3,163,673)

Note 8 Contingent Assets and Liabilities

No contingent assets or liabilities existed as at 30 June 2020 (2019: nil).

Note 9 Related Party Disclosures

The fund is a wholly controlled subsidiary of CSIRO. The trustee is the Chief Executive Officer of CSIRO who is remunerated through CSIRO and not paid an additional salary for his role as trustee of the fund. There were no transactions during the reporting period between the trustee and the fund. Related parties to this entity other than the trustee are other Australian Government entities.

Significant transactions with related parties can include the payment of grants, the purchase of goods and services. In considering relationships with related entities, and transactions entered into during the reporting period by SIEF, it has been determined that there are no related party transactions required to be separately disclosed. Grants are awarded based on assessment against a set of established selection criteria prior to approval. All eligible applications are assessed equally.

Note 10 Schedule of Commitments

The below table shows the monies SIEF is committed to pay on its executed grant funding agreements as at 30 June 2020, subject to grantees meeting funding milestones.

2020

2019

$

$

BY TYPE

Grants commitments payable

38,557,048

34,639,956

GST receivable on grants payable

(3,505,186)

(3,149,087)

Total net commitments by type

35,051,862

31,490,869

BY MATURITY

Grant commitments payable

One year or less

13,270,964

11,163,299

From one to five years

18,851,084

15,831,657

More than five years

6,435,000

7,645,000

Total grants payable

38,557,048

34,639,956

GST commitments receivable

One year or less

(1,206,451)

(1,014,845)

From one to five years

(1,713,735)

(1,439,242)

More than five years

(585,000)

(695,000)

Total commitments receivable

(3,505,186)

(3,149,087)

Net commitments by maturity

35,051,862

31,490,869

Note 11 Financial Instruments

2020

2019

$

$

Categories of financial instruments

Financial assets under AASB 9

Financial assets at amortised cost

Cash and cash equivalents

64,603,883

65,017,563

Interest receivable

428,189

793,925

GST receivable

36,834

1,423,500

Total financial assets at amortised cost

65,068,906

67,234,988

Total financial assets

65,068,906

67,234,988

2020

2019

$

$

Financial liabilities

Financial liabilities at amortised cost

Grants payable

0

1,043,744

Shared service fee payable

0

122,270

Accrued audit fee

15,500

15,500

Total financial liabilities at amortised cost

15,500

1,181,514

Total financial liabilities

15,500

1,181,514