Go to top of page

Department of Agriculture Annual Report 2018–19

Administered Financial Schedules

Administered Schedule of Comprehensive Income for the period ended 30 June 2019

				Original Budget	Variance
		2019	2018	2019	2019
	Notes	$'000	$'000	$'000	$'000
NET COST OF SERVICES
Expenses
Levy disbursements and Commonwealth contributions	16A	867 369	875 716	874 073	( 6 704)
Grants	16B	125 922	267 596	425 118	( 299 196)
Payments to corporate Commonwealth entities	16C	173 711	127 062	180 384	( 6 673)
Suppliers	16D	32 692	30 499	36 236	( 3 544)
Direct personal benefits - Income support for farmers		114 155	33 735	37 945	76 210
Assets transferred to related entities	19	407 243	210 334	735 152	( 327 909)
Depreciation and amortisation	19	7 747	7 753	7 759	( 12)
Concessional loan discount		21 945	1 006	27 620	( 5 675)
Impairment loss allowance on financial instruments	16E	1 403	690	0	1 403
Write-down and impairment of assets	16F	3 155	6 895	0	3 155
Other expenses		0	234	0	0
Total expenses		1 755 342	1 561 520	2 324 287	( 568 945)

Income
Revenue
Taxation revenue
Levies, fees and charges	17A	564 064	565 931	575 466	( 11 402)
Total taxation revenue		564 064	565 931	575 466	( 11 402)

Non-taxation revenue
Interest	17B	23 976	23 919	28 566	( 4 590)
Other revenue	17C	12 452	22 454	10 180	2 272
Total non-taxation revenue		36 428	46 373	38 746	( 2 318)
Total revenue		600 492	612 304	614 212	( 13 720)

Gains
Other gains	17D	256 416	96 386	209 929	46 487
Total gains		256 416	96 386	209 929	46 487

Total income		856 908	708 690	824 141	32 767

Net cost of services		898 434	852 830	1 500 146	( 601 712)

OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Administered revaluations taken to reserves
Non-financial assets		9 229	2 448	0	9 229
Investments in corporate Commonwealth entities		101 323	30 709	0	101 323
Total other comprehensive income		110 552	33 157	0	110 552

Total comprehensive loss		( 787 882)	( 819 673)	(1 500 146)	712 264

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

Administered Schedule of Assets and Liabilities as of 30 June 2019

				Original Budget	Variance
		2019	2018	2019	2019
	Notes	$'000	$'000	$'000	$'000
ASSETS
Financial assets
Cash and cash equivalents	18A	902 105	589 698	713,658	188 447
Trade, taxation and other receivables	18B	801 821	852 463	898 986	( 97 165)
Investments in corporate Commonwealth entities	18C	501 545	400 222	342 518	159 027
Other financial assets	18D	75 184	69 313	66 428	8 756
Total financial assets		2 280 655	1 911 696	2 021 590	259 065

Non-financial assets
Land	19	1 467	1 467	1 467	0
Infrastructure	19	527 029	524 541	515 599	11 430
Plant and equipment	19	1 836	1 715	0	1 836
Flooding easements	19	814	814	0	814
Water entitlements	19	133 842	126 520	125 048	8 794
Prepayments		11 226	15 665	14 052	( 2 826)
Total non-financial assets		676 214	670 722	656 166	20 048

Total assets administered on behalf of Government		2 956 869	2 582 418	2 677 756	279 113

LIABILITIES
Payables
Levy disbursements and Commonwealth contributions	20A	153 348	101 196	95 738	57 610
Grants	20B	3 550	3 368	8 153	( 4 603)
Suppliers		718	298	2 312	( 1 594)
Personal benefits - Income support to farmers		2 470	654	1 270	1 200
Corporate Commonwealth entities		0	1 953	0	0
Other payables		54	72	0	54
Total payables		160 140	107 541	107 473	52 667

Provisions
Loan commitments to Farm Businesses	21A	17 881	0	0	17 881
Total provisions		17 881	0	0	17 881

Total liabilities administered on behalf of Government		178 021	107 541	107 473	70 548

Net assets		2 778 848	2 474 877	2 570 283	208 565

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

Budget Variance Commentary – Administered as at 30 June 2019

Budget Variance Commentary The following tables provide a comparison of the original budget as presented in the 2018-19 Portfolio Budget Statements (PBS) to the 2018-19 final outcome as presented in accordance with Australian Accounting Standards for the department. The Budget is not audited. Explanations of major variances are provided below. Variances are considered to be ‘major’ based on the following criteria: the variance between budget and actual is greater than +/- 10% of the original budget and $10 million for a line item; or the variance between budget and actual is greater than 2% of the relevant sub-total (i.e. total expenses, total income, total assets or total liabilities) and $10 million; or an item 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 the department.
Major variances and explanations	Affected line items
Administered Schedule of Comprehensive Income Total expenses were $568.9 million lower than the original budget predominantly as a result of: Lower than budgeted assets transferred to related entities expenses of $327.9 million and grant expenses of $299.2 million, arising from delays to the implementation of the Murray-Darling Basin Plan. Offset by an increase of $76.2 million in personal benefits expense as a result of the Special Drought Supplement combined with higher than budgeted recipients.	Total expenses Grant expenses Assets transferred to related entities expenses Personal benefits expense
Total income was $32.8 million higher than the original budget predominantly as a result of: Higher than budgeted other gains of $46.5 million due to higher than anticipated water received through infrastructure programs.	Other gains
Total other comprehensive income was $110.6 million higher than the original budget. This was mainly due to increases to the net assets of portfolio corporate Commonwealth entities.	Total other comprehensive income
Administered Schedule of Assets and Liabilities Total assets balance was $279.1 million higher than the original budget. This variance was predominantly due to: Higher than budgeted cash and cash equivalents balance by $188.4 million was mainly due to the lower than expected use of the Water for the Environment special account from delays by Basin states to bring forward efficiency measures projects. Higher than budgeted investments in corporate Commonwealth entities balance by $159.0 million due to increases to portfolio corporate Commonwealth entities’ net assets. Lower than budgeted trade, taxation and other receivables balance by $97.2 million due to: Lower than anticipated loan advances by $214.5 million due to delays in processing applications as a result of higher than anticipated demand following the establishment of the Regional Investment Corporation; Offset by lower than anticipated loan repayments from the state and territory governments by $54.1 million, higher than expected statutory receivables of $38.8 million and a higher opening position of $17.5 million when compared to budget.	Cash and cash equivalents Other investments Trade, taxation and other receivables
Total liabilities was $70.5 million higher than the original budget due to: Higher than budgeted levy disbursements and Commonwealth contributions payables of $57.6 million as a result of delays in payments being made; and Higher than budgeted provisions for loan commitments to farm businesses of $17.9 million for loans that are yet to be settled. The department expects the settlements to occur in 2019-20.	Levy disbursements and Commonwealth contributions Loan commitments to Farm Businesses

Budget Variance Commentary

The following tables provide a comparison of the original budget as presented in the 2018-19 Portfolio Budget Statements (PBS) to the 2018-19 final outcome as presented in accordance with Australian Accounting Standards for the department. The Budget is not audited. Explanations of major variances are provided below.

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

the variance between budget and actual is greater than +/- 10% of the original budget and $10 million for a line item; or
the variance between budget and actual is greater than 2% of the relevant sub-total (i.e. total expenses, total income, total assets or total liabilities) and $10 million; or
an item 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 the department.

Major variances and explanations

Affected line items

Administered Schedule of Comprehensive Income

Total expenses were $568.9 million lower than the original budget predominantly as a result of:

Lower than budgeted assets transferred to related entities expenses of $327.9 million and grant expenses of $299.2 million, arising from delays to the implementation of the Murray-Darling Basin Plan.
Offset by an increase of $76.2 million in personal benefits expense as a result of the Special Drought Supplement combined with higher than budgeted recipients.

Total expenses
Grant expenses
Assets transferred to related entities expenses
Personal benefits expense

Total income was $32.8 million higher than the original budget predominantly as a result of:

Higher than budgeted other gains of $46.5 million due to higher than anticipated water received through infrastructure programs.

Other gains

Total other comprehensive income was $110.6 million higher than the original budget. This was mainly due to increases to the net assets of portfolio corporate Commonwealth entities.

Total other comprehensive income

Administered Schedule of Assets and Liabilities

Total assets balance was $279.1 million higher than the original budget. This variance was predominantly due to:

Higher than budgeted cash and cash equivalents balance by $188.4 million was mainly due to the lower than expected use of the Water for the Environment special account from delays by Basin states to bring forward efficiency measures projects.
Higher than budgeted investments in corporate Commonwealth entities balance by $159.0 million due to increases to portfolio corporate Commonwealth entities’ net assets.
Lower than budgeted trade, taxation and other receivables balance by $97.2 million due to:
- Lower than anticipated loan advances by $214.5 million due to delays in processing applications as a result of higher than anticipated demand following the establishment of the Regional Investment Corporation;
- Offset by lower than anticipated loan repayments from the state and territory governments by $54.1 million, higher than expected statutory receivables of $38.8 million and a higher opening position of $17.5 million when compared to budget.

Cash and cash equivalents
Other investments
Trade, taxation and other receivables

Total liabilities was $70.5 million higher than the original budget due to:

Higher than budgeted levy disbursements and Commonwealth contributions payables of $57.6 million as a result of delays in payments being made; and
Higher than budgeted provisions for loan commitments to farm businesses of $17.9 million for loans that are yet to be settled. The department expects the settlements to occur in 2019-20.

Levy disbursements and Commonwealth contributions
Loan commitments to Farm Businesses

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

Administered Reconciliation Schedule for the period ended 30 June 2019

	2019	2018
	$'000	$'000

Opening assets less liabilities as at 1 July	2 474 877	1 906 548
Adjustment for new accounting standard	(7 542)	0
Adjusted opening assets less liabilities	2 467 335	1 906 548

Net cost of services
Income	856 908	708 690
Expenses
Payments to entities other than corporate Commonwealth entities	(1 581 631)	(1 434 458)
Payments to corporate Commonwealth entities	( 173 711)	( 127 062)

Other comprehensive income
Revaluations transferred to reserves
Non-financial assets	9 229	2 448
Investments in corporate Commonwealth entities	101 323	30 709

Transfers (to)/from the Australian Government
Appropriation transfers from Official Public Account
Administered assets and liabilities appropriations	202 945	307 022
Annual appropriations
Payments to entities other than corporate Commonwealth entities	169 982	377 744
Payments to corporate Commonwealth entities	175 664	125 109
Special appropriations (unlimited)
Payments to entities other than corporate Commonwealth entities	702 722	572 493
Payments to corporate Commonwealth entities	292 139	325 981
Special account statutory credits	320 000	430 000
Appropriation transfers to Official Public Account
Transfers to Official Public Account	(763 465)	( 749 886)
Personal Benefits - Withholding	( 592)	( 461)
Closing assets less liabilities as at 30 June	2 778 848	2 474 877

Accounting Policy

Administered Cash Transfers to and from the Official Public Account (OPA)

Revenue collected by the department for use by the Government rather than the department is administered revenue. Collections are transferred to the OPA which is maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the department on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Administered Cash Flow Statement for the period ended 30 June 2019

	2019	2018
	$'000	$'000

OPERATING ACTIVITIES
Cash received
Taxes	557 795	560 841
GST received	27 807	85 303
Other	13 486	12 961
Total cash received	599 088	659 105

Cash used
Levy disbursements and Commonwealth contributions	815 217	870 220
Grants	189 121	358 789
Suppliers	27 878	31 268
Personal benefits	112 338	34 752
Payments to corporate Commonwealth entities	175 664	125 109
Other	18	234
Total cash used	1 320 236	1 420 372
Net cash used by operating activities	( 721 148)	( 761 267)

INVESTING ACTIVITIES
Cash received
Repayments of loans	106 182	82 181
Interest received from loans	21 900	20 908
Total cash received	128 082	103 089

Cash used
Loan advances	34 569	190 000
Purchase of water entitlements	159 945	117 022
Total cash used	194 514	307 022
Net cash used by investing activities	( 66 432)	( 203 933)

Net decrease in cash held	( 787 580)	( 965 200)

Cash and cash equivalents at the beginning of the reporting period	589 698	166 435
Cash from Official Public Account for
- Appropriations	1 543 452	1 708 349
- Special accounts	320 000	430 000
Total cash from Official Public Account	1 863 452	2 138 349

Cash to Official Public Account for:
- Appropriations	763 465	749 886
Total cash to Official Public Account	763 465	749 886

Cash and cash equivalents at the end of the reporting period	902 105	589 698

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

Visit

https://www.transparency.gov.au/annual-reports/department-agriculture/reporting-year/2018-2019-34

Transparency Portal

Transparency Portal

Department of Agriculture Annual Report 2018–19

Administered Financial Schedules

Administered Schedule of Comprehensive Income for the period ended 30 June 2019

Administered Schedule of Assets and Liabilities as of 30 June 2019

Budget Variance Commentary – Administered as at 30 June 2019

Administered Reconciliation Schedule for the period ended 30 June 2019

Administered Cash Flow Statement for the period ended 30 June 2019

Visit