Financial Statements
STATEMENT OF COMPREHENSIVE INCOME
for the period ended 30 June 2020
Notes | 2020 $ | 2019 $ | Original Budget $ | |
NET COST OF SERVICES | ||||
Expenses | ||||
Employee Benefits | 1,880,226 | 1,964,199 | 2,446,000 | |
Suppliers | 916,406 | 1,122,357 | 998,000 | |
Grants | 17,018,983 | 20,803,322 | 16,510,000 | |
Depreciation and amortisation | 226,227 | 234,060 | 259,000 | |
Write-down and impairment of assets | - | 12,970 | - | |
Losses from asset sales | 696 | 6,081 | - | |
Total expenses | 20,042,538 | 24,142,989 | 20,213,000 | |
OWN-SOURCE INCOME | ||||
Own-source revenue | ||||
Revenue from contracts with customers | 3,850,461 | 5,684,593 | 1,989,000 | |
Interest | 619,981 | 983,475 | 600,000 | |
Other revenue | 1,303,198 | 1,140,523 | 500,000 | |
Total own-source revenue | 5,773,640 | 7,808,591 | 3,089,000 | |
Total own-source income | 5,773,640 | 7,808,591 | 3,089,000 | |
Net (cost of)/contribution by services | 14,268,898 | 16,334,398 | 17,124,000 | |
Revenue from Government | ||||
PIRD Act 1989 Contribution | 3,069,897 | 8,679,831 | 5,839,000 | |
Levies and penalties | 3,070,321 | 8,695,331 | 5,839,000 | |
Total revenue from Government | 6,140,218 | 17,375,162 | 11,678,000 | |
Surplus/(Deficit) attributable to the Australian Government | (8,128,680) | 1,040,764 | (5,446,000) | |
OTHER COMPREHENSIVE INCOME | ||||
Items subject to subsequent reclassification to net cost of services | ||||
Gain/(Losses) on financial assets at fair value through other comprehensive income | (26,517) | 82,476 | - | |
Total other comprehensive income/(loss) | (26,517) | 82,476 | - | |
Total comprehensive income/(loss) attributable to the Australian Government | (8,155,197) | 1,123,240 | (5,446,000) |
The above statement should be read in conjunction with the Notes to the Financial Statements.
Budget Variances Commentary
- Statement of Comprehensive Income for not‐for‐profit Reporting Entities The original budget is the Corporation's 2019-20 Portfolio Budget Statements (PBS).
- Employee expense decreased by $0.566 million due to the average full-time equivalent staffing being below budget during the year.
- Grants expense increased by $0.509 million due to additional projects funded by external grant revenue and partly offset by reduced budgets for projects impacted by the drought.
- Revenue from contracts with customers increased by $1.861 million as a result of:
- Research Grant revenue increased by $2.362 million as a result of receiving new grants from the Rural R&D for Profit programme from the Department of Agriculture, Water and the Environment and grants from the program partners.
- Other grants revenue increased by $0.059 million as a result of opening revenue recognition adjustments for AASB 15 revenue from contracts with customers .
- Royalty revenue decreased by $0.667 million from budget as a result of the cessation of the seed trait royalty agreement.
- Sponsorship revenue increased by $0.107 million as a result of unbudgeted sponsorships received for the International Cotton Advisory Committee 2019 Plenary meeting in Brisbane.
- Other revenue increased by $0.803 million as a result of an increase in surplus project funds returned by research organisations.
- Commonwealth Contributions and Industry Contributions, comprising of levies and penalties, decreased by $5.538 million as a result of a decrease in cotton production from which levies are collected and Commonwealth contributions are determined.
STATEMENT OF FINANCIAL POSITION
as at 30 June 2020
Notes | 2020 $ | 2019 $ | Original Budget $ | |
ASSETS | ||||
Financial assets | ||||
Cash and cash equivalents | 16,025,028 | 15,882,926 | 1,747,000 | |
Investments | 17,000,000 | 24,500,000 | 28,000,000 | |
Trade and other receivables | 1,219,038 | 3,246,974 | 3,809,000 | |
Other investments | 143,547 | 170,064 | 88,000 | |
Total financial assets | 34,387,613 | 43,799,964 | 33,644,000 | |
Non-financial assets | ||||
Land and buildings | 711,349 | 713,497 | 795,000 | |
Plant and equipment | 354,533 | 310,360 | 667,000 | |
Computer software | 37,282 | 153,150 | 395,000 | |
Total non-financial assets | 1,103,164 | 1,177,007 | 1,857,000 | |
Total assets | 35,490,777 | 44,976,971 | 35,501,000 | |
LIABILITIES | ||||
Payables | ||||
Suppliers | 130,302 | 115,180 | 200,000 | |
Grants | 4,137,341 | 5,656,353 | 4,000,000 | |
Other payables | 57,833 | 52,234 | - | |
Total payables | 4,325,476 | 5,823,767 | 4,200,000 | |
Provisions | ||||
Employee provisions | 414,103 | 313,106 | 491,000 | |
Total provisions | 414,103 | 313,106 | 491,000 | |
Total liabilities | 4,739,579 | 6,136,873 | 4,691,000 | |
Net assets | 30,751,198 | 38,840,098 | 30,810,000 | |
EQUITY | ||||
Reserves | 273,654 | 273,654 | 251,000 | |
Other reserves | 33,547 | 60,064 | - | |
Retained surplus | 30,443,997 | 38,506,380 | 30,559,000 | |
Total equity | 30,751,198 | 38,840,098 | 30,810,000 |
The above statement should be read in conjunction with the Notes to the Financial Statements.
Budget Variances Commentary
- Statement of Financial Position for not‐for‐profit Reporting Entities The original budget is the Corporation's 2019-20 Portfolio Budget Statements (PBS).
- Cash and cash equivalents and Investments above PBS by $3.278 million as a result the cash balance at the 30 June 2019 was above budget.
- Trade and other receivables below PBS by $2.590 million is represented by decreases in industry levies collected and held by the Department in June 2020 and matching Commonwealth contributions and partly offset by increases in contract assets and GST receivable.
- Plant and equipment below PBS by $0.312 million as a result of delayed replacement of equipment and ICT infrastructure.
- Computer software below PBS by $0.358 million as a result of delayed upgrading of project management software.
STATEMENT OF CHANGES IN EQUITY
for the period ended 30 June 2020
2020 $ | 2019 $ | Original Budget $ | |
RETAINED EARNINGS | |||
Opening balance | |||
Balance carried forward from previous period | 38,506,380 | 37,465,616 | 36,005,000 |
Adjustment on initial application of AASB 15/AASB 1058 | 66,297 | - | - |
Adjusted opening balance | 38,572,677 | 37,465,616 | 36,005,000 |
Comprehensive income | |||
Surplus/(Deficit) for the period | (8,128,680) | 1,040,764 | (5,446,000) |
Closing balance as at 30 June | 30,443,997 | 38,506,380 | 30,559,000 |
ASSET REVALUATION RESERVE | |||
Opening balance | |||
Balance carried forward from previous period | 273,654 | 273,654 | 251,000 |
Closing balance as at 30 June | 273,654 | 273,654 | 251,000 |
OTHER RESERVES | |||
Opening balance | |||
Balance carried forward from previous period | 60,064 | (22,412) | - |
Comprehensive income | |||
Other comprehensive income | (26,517) | 82,476 | - |
Closing balance as at 30 June | 33,547 | 60,064 | - |
TOTAL EQUITY | |||
Opening balance | |||
Balance carried forward from previous period | 38,840,098 | 37,716,858 | 36,256,000 |
Adjustment on initial application of AASB 15/AASB 1058 | 66,297 | - | - |
Adjusted opening balance | 38,906,395 | 37,716,858 | 36,256,000 |
Comprehensive income | |||
Surplus/(Deficit) for the period | (8,128,680) | 1,040,764 | (5,446,000) |
Other comprehensive income | (26,517) | 82,476 | - |
Total comprehensive income | (8,155,197) | 1,123,240 | (5,446,000) |
Closing balance as at 30 June | 30,751,198 | 38,840,098 | 30,810,000 |
The above statement should be read in conjunction with the Notes to the Financial Statements.
Budget Variances Commentary
- Statement of Changes in Equity for not‐for‐profit Reporting Entities The original budget is the Corporation's 2019-20 Portfolio Budget Statements (PBS).
- Adjustment on initial recognition of AASB 15 for the nett revenue and expenses of $0.066 million recognised as contract liabilities $(0.231) million and contract assets $0.297 million under the new accounting standards.
- Deficit for the period above PBS deficit by $2.683 million is a result of the decrease in levies and Commonwealth matching and partly offset by increased grant revenues as noted in the budget variance commentary on the Comprehensive Income Statement.
CASH FLOW STATEMENT
for the period ended 30 June 2020
Notes | 2020 $ | 2019 $ | Original Budget $ | |
OPERATING ACTIVITIES | ||||
Cash received | ||||
Industry levies and penalties | 4,164,162 | 9,690,360 | 5,839,000 | |
Commonwealth contributions | 4,334,628 | 9,541,298 | 5,839,000 | |
Royalties | 8,048 | 222,435 | 675,000 | |
Grants | 4,138,699 | 5,955,770 | 1,314,000 | |
Interest | 713,043 | 928,195 | 600,000 | |
Net GST received | 1,288,816 | 1,487,759 | - | |
Other | 1,215,903 | 1,111,684 | 500,000 | |
Total cash received | 15,863,299 | 28,937,501 | 14,767,000 | |
Cash used | ||||
Employees | 1,781,492 | 2,100,064 | 2,446,000 | |
Grants | 20,272,529 | 20,048,495 | 16,510,000 | |
Suppliers | 1,014,096 | 1,281,136 | 998,000 | |
Total cash used | 23,068,117 | 23,429,695 | 19,954,000 | |
Net cash from/(used by) operating activities | (7,204,818) | 5,507,806 | (5,187,000) | |
INVESTING ACTIVITIES | ||||
Cash received | ||||
Proceeds from sales of property, plant and equipment | 21,818 | 93,909 | - | |
Investments | 52,500,000 | 66,500,000 | 30,000,000 | |
Total cash received | 52,521,818 | 66,593,909 | 30,000,000 | |
Cash used | ||||
Purchase of property, plant and equipment | 174,898 | 256,314 | 270,000 | |
Investments | 45,000,000 | 63,000,000 | 25,000,000 | |
Total cash used | 45,174,898 | 63,256,314 | 25,270,000 | |
Net cash from/(used by) investing activities | 7,346,920 | 3,337,595 | 4,730,000 | |
Net increase/(decrease) in cash held | 142,102 | 8,845,401 | (457,000) | |
Cash and cash equivalents at the beginning of the reporting period | 15,882,926 | 7,037,525 | 2,204,000 | |
Cash and cash equivalents at the end of the reporting period | 16,025,028 | 15,882,926 | 1,747,000 |
The above statement should be read in conjunction with the Notes to the Financial Statements.
Budget Variances Commentary
- Statement of Changes in Equity for not‐for‐profit Reporting Entities The original budget is the Corporation's 2019-20 Portfolio Budget Statements (PBS).
- Industry levies and Commonwealth contributions decreased by $3.179 million as a result of a decrease in industry levies collected and matching Commonwealth contribution determined in accordance with the PIRD Act 1989.
- Royalty receipts decreased by $0.667 million as a result of the cessation of the seed trait royalty agreement.
- Grant receipts increased by $2.825 million as a result of new research grants being contracted.
- Net GST receipts increased by $1.289 million as a result of an increase in project milestones payable to research organisations.
- Other receipts increased by $0.716 million as a result of an increase in surplus project funds returned by research organisations.
- Employee payments decreased by $0.665 million as a result of reduction in the average full-time equivalent staffing during the year .
- Grant payments increased by $3.763 million as a result of new RD&E projects being contracted as part of the new Government grants received during the year and reduction in grants payable at the end of year.
- Investments cash received, net of cash used, increased above PBS as a result of an increase in the cash available for investment at the beginning of the year.
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https://www.transparency.gov.au/annual-reports/cotton-research-and-development-corporation/reporting-year/2019-20-17