Cash Flow Statement
FOR THE PERIOD ENDED 30 JUNE 2020
Notes | 2020 $ | 2019 $ | Original Budget $ | |
|---|---|---|---|---|
OPERATING ACTIVITIES | ||||
Cash received | ||||
Appropriations | 5,150,000 | 5,083,000 | 5,725,000 | |
Sale of goods and rendering of services | 222,834 | 47,825 | - | |
Net GST Received | 4,601 | 189,806 | - | |
Total cash received | 5,377,435 | 5,320,631 | 5,725,000 | |
Cash used | ||||
Employees | 3,190,686 | 2,336,712 | 3,768,000 | |
Suppliers | 1,883,657 | 2,745,294 | 1,957,000 | |
Interest payments on lease liabilities | 12,331 | - | - | |
Total cash used | 5,086,674 | 5,082,006 | 5,725,000 | |
Net cash from operating activities | 290,761 | 238,625 | - | |
INVESTING ACTIVITIES | ||||
Cash received | ||||
Proceeds from sales of property, plant and equipment | 363 | - | - | |
Total cash received | 363 | - | - | |
Cash used | ||||
Purchase of property, plant and equipment | 218,975 | - | - | |
Total cash used | 218,975 | - | - | |
Net cash used by investing activities | (218,612) | - | - | |
FINANCING ACTIVITIES | ||||
Cash received | ||||
Contributed Equity | - | - | - | |
Total cash received | - | - | - | |
Cash used | ||||
Principal payments of lease liabilities | 325,241 | - | - | |
Total cash used | 325,241 | - | - | |
Net cash used by financing activities | (325,241) | - | - | |
Net increase/(decrease) in cash held | (253,092) | 238,625 | - | |
Cash and cash equivalents at the beginning of the reporting period | 758,371 | 519,746 | 520,000 | |
Cash and cash equivalents at the end of the reporting period | 505,279 | 758,371 | 520,000 | |
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary
The total expenses on the statement of comprehensive income were higher than budgeted due to higher supplier and depreciation expenses. The main driver of both supplier and depreciation expenses were fitout costs as a result of IPFA’s Sydney office relocation which were not anticipated at the time of budget. In addition to fitout, the supplier variance was also comprised of higher training expenses driven by extra employees, offset by lower travel expenses associated with COVID‑19 restrictions and lower ICT costs due to a delay with the ICT transition to Treasury. Finance costs were higher due to the implementation of AASB 16 Lease. IPFA also had a higher than budgeted revenue contributed to cost recovery of secondment and advisory services to our client entities.
In the statement of financial position, the trade and other receivables variance is mainly due to higher appropriation receivable. Both non-financial assets and interest bearing liabilities variances were to recognise the lease value based on AASB 16 implementation. The payables balance primarily represents accrued employee cost and suppliers, as well as withholding tax payable. The higher employee provisions represents the increase in staff level, and the other provisions was caused by the Sydney office makegood cost.
The abovementioned variances in both statements of comprehensive income and financial position have also flown on to the cashflow statement.
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