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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

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.