Major variance and explanations from original budget to actual result for 2019–20
Statement of Comprehensive Income
Employee expenses decreased due to unanticipated staff exits and delays in recruitment commencing the new workforce plan.
Supplier expenses decreased due to reduced travel arrangements and ICT costs.
Project contractual commitments originally forecast can vary due to the timing of completion of project deliverables. Project deliverables are subject to significant variation due to research delays and in 2019–20 project expenses decreased largely driven by impacts of COVID-19.
Depreciation increased due to the adoption of the new Accounting Standard AASB 16.
Other expenses allowed for marketing expenses for marketing levy arrangements that were not established.
Grants increased due to additional Research & Development (R&D) funding received from Department of Agriculture, Water and the Environment (DAWE) under the Research & Development deed with DAWE.
The original budget has been reclassified under AASB 1055 (6 and 12) to represent the actual result with the following line items:
- Contributions were increased $1.2 million to include the industry levy contributions for the Australian Fisheries Management Authority R&D levies and the Australian Prawn Farmers Association levies.
- Revenue from Australian Government has been reduced $1.2 million to remove the industry levy contributions for the Australian Fisheries Management Authority R&D levies, and the Australian Prawn Farmers Association prawn levies.
Other revenue originally forecast allowed for additional increased project contributions that did not eventuate.
Changes in asset revaluation reserves increased due to the revaluation of fixed assets under a new leasing term of 3 years.
Statement of Financial Position
Cash and cash equivalents were higher due to contractual project commitments expenditure delays that were originally forecast to be spent in 2019–20. This resulted in a higher than anticipated cash balance at year end and these commitments will now be paid in 2020–21.
Trade and other receivables may vary due to the timing of the Department of Agriculture, Water and the Environment, Australian Gross Value Production Determination which can result in increases to aged debtors at year end. The decrease is due to revenue from Australian Government that was received earlier than originally forecast in the 2019–20 PBS.
Project payables increased due to adoption of the new Accounting Standard AASB 15 resulting in an increase to contract liabilities.
Building and interest bearing liabilities increased as a result of adoption of the new Accounting Standard AASb 16.
Intangibles varied due to the intangible costs and extent of works were lower than budget.
Retained earnings increased due to the increase in net income as a result from lower than anticipated project expenses.
Statement of Cash Flows
The variance between actual and forecast cash and cash equivalents for the period is explained in the Statement of Comprehensive Income and Statement of Financial Position.