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Financial Statements

 Statement by the Accountable Authority and Chief Financial Officer; Statement of Comprehensive Income; Statement of Financial Position; Statement of Changes in Equity; Cash Flow Statement; Administered Schedule of Comprehensive Income; Administered Schedule of Assets and Liabilities; Administered Reconciliation Schedule; Administered Cash Flow Statement; and Notes to and forming part of the financial statements, comprising an Overview Note, summary of significant accounting policiies and other explanatory information. Basis for opinion. I conducted my audit in accordance with the Australian National Audit Office Auditing Standards, which incorporate the Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of my report. I am independent of the Entity in accordance with the relevant ethical requirements for financial statment audits conducted by the Auditor-General and his delegates. These include the relevant independence requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) to the extent that they are not in conflict with the Auditor-General Act 1997. I have also fulfilled my other respnsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. Accountable Authority's responsibility for the financial statements. As the Accountable Authority of the Entity, the Chief Executive is responsible under the Public Governance, Performance and Accountability Act 2013 (the Act) for the preparation and fair presentation of annual financial statements that comply with Australian Accounting Standards - Reduced Disclosure Requirements and the rules made under the Act. The Chief Executive is also responsible for such internal control as the Chief Executive determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Chief Executive is responsible for assessing the ability of the Entity to continue as a going concern, taking into account whether the Entity's operations will cease as a result of an
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 identify and assess the risks of material misstatement of the financial statments, whether due to fraud or error, design and perfom audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appopriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control; evaluate the appropriateness of accounting policiies used and the reasonableness of accounting estimates and related disclosures made by the Accountable Authority; conclude on the appropriateness of the Accountable Authority's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern; and evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactons and events in a manner that achieves fair presentation. I communicate with the Accountable Authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. Australian National Audit Office Signed Mark Vial Senior Director Delegate of the Auditor-General Canberra 3 September 2020
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NATIONAL BLOOD AUTHORITY FINANCIAL STATEMENTS for the year ended 30 June 2020 STATEMENT BY THE ACCOUNTABLE AUTHORITY AND CHIEF FINANCIAL OFFICER In our opinion, the attached financial statements for the year ended 30 June 2020 comply with subsection 42(2) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act), and are based on properly maintained financial records as per subsection 41(2) of the PGPA Act. In our opinion, at the date of this statement, there are reasonable grounds to believe that the National Blood Authority will be able to pay its debts as and when they fall due. Signed John Cahill Accountable Authority 2 September 2020 Signed Ashley Jackson Chief Financial Officer 2 September 2020
The above statement should be read in conjuncton with the accompanying notes

Contents

Certification

Primary financial statements

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Cash Flow Statement

Administered Schedule of Comprehensive Income

Administered Schedule of Assets and Liabilities

Administered Reconciliation Schedule

Administered Cash Flow Statement

Overview

Notes to the financial statements

1. Departmental Financial Performance

1.1 Expenses

1.2 Own-Source Revenue and Gains

2. Income and Expenses Administered on Behalf of Government

2.1 Administered - Expenses

2.2 Administered - Income

3. Departmental Financial Position

3.1 Financial Assets

3.2 Non-Financial Assets

3.3 Payables

3.4 Interest Bearing Liabilities

3.5 Other Provisions

4. Assets and Liabilities Administered on Behalf of Government

4.1 Administered - Financial Assets

4.2 Administered - Non-Financial Assets

4.3 Administered - Payables

5. Funding

5.1 Appropriations

5.2 Special Accounts

6. People and Relationships

6.1 Employee Provisions

6.2 Key Management Personnel Remuneration

6.3 Related Party Disclosures

7. Managing Uncertainties

7.1 Contingent Assets and Liabilities

7.2 Departmental - Financial Instruments

7.3 Administered - Financial Instruments

7.4 Fair Value Measurement

7.5 Administered - Fair Value Measurement

8. Other Information

8.1 Aggregate Assets and Liabilities

8.2 Budgetary Reports and Explanations of Major Variances

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

NATIONAL BLOOD AUTHORITY

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 June 2020

2020

2019

Notes

$'000

$'000

NET COST OF SERVICES

Expenses

Employee benefits

1.1A

7,689

7,438

Suppliers

1.1B

1,855

2,909

Depreciation and amortisation

3.2A

1,152

477

Finance costs

1.1C

20

3

Write-down and impairment of other assets

1.1D

47

-

Losses from asset sales

-

1

Total expenses

10,763

10,828

Own-Source Income

Own-source revenue

Revenue from contracts with customers

1.2A

4,269

3,817

Other revenue

1.2B

434

586

Total own-source revenue

4,703

4,403

Gains

Resources received free of charge - remuneration of auditors

1.2C

66

66

Total gains

66

66

Total own-source income

4,769

4,469

Net (cost of)/contribution by services

(5,994)

(6,359)

Revenue from government

1.2D

5,681

5,682

Surplus/(Deficit) before income tax on continuing operations

(313)

(677)

Income tax expense

-

-

Surplus/(Deficit) after income tax on continuing operations

(313)

(677)

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

159

-

Total other comprehensive income

159

-

Total comprehensive income/(loss)

(154)

(677)

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

NATIONAL BLOOD AUTHORITY

STATEMENT OF FINANCIAL POSITION

as at 30 June 2020

2020

2019

Notes

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

3.1A

8,821

8,678

Trade and other receivables

3.1B

1,502

1,353

Total financial assets

10,323

10,031

Non-financial assets1

Buildings

3.2A

1,629

-

Leasehold improvements

3.2A

490

570

Plant and equipment

3.2A

570

580

Computer software

3.2A

112

160

Other non-financial assets

3.2B

184

164

Total non-financial assets

2,985

1,474

Total assets

13,308

11,505

LIABILITIES

Payables

Suppliers

3.3A

129

794

Other payables

3.3B

128

488

Deferred revenue

3.3C

309

-

Total payables

566

1,282

Interest bearing liabilities

Leases

3.4A

1,609

-

Total interest bearing liabilities

1,609

-

Provisions

Employee provisions

6.1A

2,742

2,414

Other provisions

3.5A

173

172

Total provisions

2,915

2,586

Total liabilities

5,090

3,868

Net assets

8,218

7,637

EQUITY

Contributed equity

5,799

5,182

Reserves

619

460

Retained surplus

1,800

1,995

Total equity

8,218

7,637

1. Right-of-use assets are included in the "Buildings" line item.

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

NATIONAL BLOOD AUTHORITY

STATEMENT OF CHANGES IN EQUITY

for the year ended 30 June 2020

Retained Earnings

Asset revaluation reserve

Contributed equity/capital

Total equity

2020

2019

2020

2019

2020

2019

2020

2019

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Opening balance

Balance carried forward from previous period

1995

2672

460

460

5182

4565

7637

7697

Adjustment on initial application of AASB 15

(301)

-

-

-

-

-

(301)

-

Adjustment on initial application of AASB 16

419

-

-

-

-

-

419

-

Adjusted opening balance

2113

2672

460

460

5182

4565

7755

7697

Comprehensive Income

Revaluation adjustment

-

-

159

-

-

-

159

-

Surplus / (Deficit) for the period

(313)

(677)

-

-

-

-

(313)

(677)

Total comprehensive income attributable to Australian Government

(313)

(677)

159

-

-

-

(154)

(677)

Transactions with owners

Contributions by owners

Departmental capital budget

-

-

-

-

617

617

617

617

Total transactions with owners

-

-

-

-

617

617

617

617

Closing balance as at 30 June attributable to Australian Government

1800

1995

619

460

5799

5182

8218

7637

Accounting Policy:

Equity injection

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

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

NATIONAL BLOOD AUTHORITY

CASH FLOW STATEMENT

for the year ended 30 June 2020

2020

2019

Notes

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

5,681

5,682

Sale of goods and rendering of services

4,675

4,357

Net GST received

319

227

Total cash received

10,675

10,266

Cash used

Employees

7,288

7,059

Suppliers

2,797

2,466

Interest payments on lease liabilities

21

-

Total cash used

10,105

9,525

Net cash from/(used by) operating activities

570

741

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment

222

198

Purchase of intangibles

7

160

Total cash used

229

358

Net cash from/(used by) investing activities

(229)

(358)

FINANCING ACTIVITIES

Cash received

Contributed equity - departmental capital budget

506

226

Total cash received

506

226

Cash used

Principal repayment of lease liabilities

703

-

Total cash used

703

-

Net cash from/(used by) financing activities

(197)

226

Net increase/(decrease) in cash held

143

609

Cash and cash equivalents at the beginning of the reporting period

8,678

8,069

Cash and cash equivalents at the end of the reporting period

3.1A

8,821

8,678

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

NATIONAL BLOOD AUTHORITY

ADMINISTERED SCHEDULE OF COMPEHENSIVE INCOME

for the year ended 30 June 2020

2020

2019

Notes

$’000

$’000

NET COST OF SERVICES

Expenses

Employee benefits

2.1A

772

569

Suppliers

2.1B

1,174,839

1,193,734

Grants - non-profit organisations

2.1C

745

738

Depreciation and amortisation

4.2B

1,286

1,031

Total expenses

1,177,642

1,196,072

Income

Revenue

Non-taxation revenue

Revenue from contracts with customers

2.2A

1,211,007

1,203,892

Interest equivalency payments

3,419

3,617

Other revenue

-

413

Total non-taxation revenue

1,214,426

1,207,921

Total revenue

1,214,426

1,207,921

Total income

1,214,426

1,207,921

Net contribution by services

36,784

11,849

Surplus

36,784

11,849

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

(2)

-

Total comprehensive income

36,782

11,849

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

NATIONAL BLOOD AUTHORITY

ADMINISTERED SCHEDULE OF ASSETS AND LIABILITIES

as at 30 June 2020

2020

2019

Notes

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

4.1A

193,100

168,335

Trade and other receivables

4.1B

45,092

28,988

Other investments

4.1C

133,800

129,800

Other financial assets

4.1D

-

76,032

Total financial assets

371,992

403,155

Non-financial assets

Plant and equipment

4.2B

7

25

Intangibles

4.2B

5,939

5,882

Inventories

4.2A

113,529

100,985

Prepayments

58,407

-

Total non-financial assets

177,882

106,892

Total assets administered on behalf of Government

549,874

510,047

LIABILITIES

Payables

Suppliers

4.3A

55,178

57,683

Deferred revenue

4.3B

104,475

-

Total payables

159,653

57,683

Total liabilities administered on behalf of Government

159,653

57,683

Net assets

390,221

452,364

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

NATIONAL BLOOD AUTHORITY

ADMINISTERED RECONCILIATION SCHEDULE

as at 30 June 2020

2020

2019

$’000

$’000

Opening administered assets less administered liabilities as at 1 July 2019

452,364

437,111

Net (cost of) / contribution by services

Income

1,214,426

1,207,921

Expenses

Payments to entities other than corporate Commonwealth entities

(1,177,642)

(1,196,072)

Adjustment on initial application of AASB 15

( 102 555)

-

Other comprehensive income

Revaluations transferred to reserves

( 2)

-

Transfers (to) / from the Australian Government:

Appropriation transfers from Official Public Account:

Annual appropriations

3,630

3,404

Closing assets less liabilities as at 30 June 2020

390,221

452,364

Accounting Policy

Administered cash transfers to and from the Official Public Account

Revenue collected by the entity for use by the Government rather than the entity is administered revenue. Collections are transferred to the Official Public Account (OPA) 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 entity on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

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

NATIONAL BLOOD AUTHORITY

ADMINISTERED CASH FLOW STATEMENT

for the year ended 30 June 2020

2020

2019

$’000

$’000

OPERATING ACTIVITIES

Cash received

Revenue from contracts with customers

1,195,998

1,194,787

Interest

3,831

3,404

Net GST received

117,639

119,609

Other

-

713

Total cash received

1,317,468

1,318,513

Cash used

Employees

772

569

Grants

745

738

Suppliers

1,289,489

1,330,351

Total cash used

1,291,006

1,331,658

Net cash (used by)/ from operating activities

26,462

(13,145)

INVESTING ACTIVITIES

Cash received

Maturity of investments

70,000

63,600

Total cash received

70,000

63,600

Cash used

Purchase of property, plant & equipment and intangibles

1,327

2,421

Acquisition of investments

74,000

66,500

Total cash used

75,327

68,921

Net cash (used by) investing activities

(5,327)

(5,321)

Net increase / (decrease) in cash held

21,135

(18,466)

Cash and cash equivalents at the beginning of the reporting period

168,335

183,397

Cash from the Official Public Account

Appropriations

3,630

3,404

Total cash from the Official Public Account

3,630

3,404

Cash to the Official Public Account

Special accounts

(3,630)

(3,404)

Total cash to the Official Public Account

(3,630)

(3,404)

Cash and cash equivalents at the end of the reporting period1

4.1A

193,100

168,335

1. As shown in the administered schedule of assets and liabilities

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

NATIONAL BLOOD AUTHORITY
OVERVIEW NOTE

for the year ended 30 June 2020

Objectives of the National Blood Authority

The National Bloody Authority (NBA) is an Australian Government controlled entity. It is a not-for-profit entity. The NBA was established on 1 July 2003 with the primary objectives of securing the supply of blood and blood products, improving risk management and blood sector performance, and promoting the safe and efficient use of blood and blood products.

The NBA manages the supply of blood and blood products on behalf of the Commonwealth and all state and territory governments, with the Commonwealth contributing 63 percent of funding, and State and Territory governments providing 37 percent.

The NBA is structured to meet the following outcome:

Outcome 1: Access to a secure supply of safe and affordable blood products, including through national supply arrangements and coordination of best practice standards within agreed funding policies under the national blood arrangements.

NBA activities contributing to Outcome 1 are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the NBA in its own right. Administered activities involve the management or oversight by the NBA, on behalf of the governments, of items controlled or incurred by the governments.

The NBA conducts the following administered activities on behalf of the governments: management and coordination of Australia’s blood supply in accordance with the National Blood Agreement agreed by the Australian Government and the governments of the States and Territories.

The NBA operates under a special account – the National Blood Account. Revenues and expenses associated with the funding and supply of blood and blood products, as well as the operations of the NBA, are recorded in this special account. The NBA also manages the NMF Blood and Blood Products Special Account which is intended to meet potential blood and blood product liability claims against the Australian Red Cross Lifeblood (Lifeblood). This special account commenced on 1 April 2017 and replaced the National Managed Fund (Blood and Blood Products) Special Account which was terminated on 31 March 2017.

The continued existence of the NBA in its present form, and with its present programs, is dependent on Government policy, the enabling legislation National Blood Authority Act 2003, and on continuing funding by Parliament and contributions from States and Territories for the NBA’s administration and programs. Details of planned activities for the year can be found in the Portfolio Budget Statements for 2019-20 which have been tabled in Parliament.

The Basis of Preparation

The financial statements are general purpose financial statements and are required by Section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

  • Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR) ; and
  • Australian Accounting Standards and Interpretations – Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.The financial statements are presented in Australian dollars and are rounded to the nearest thousand dollars unless otherwise specified.

New Australian Accounting Standards

All new / revised / amending standards and/or interpretations that were issued prior to the signing of these statements by the Accountable Authority and Chief Financial Officer and applicable to the current reporting period were adopted by the NBA. This includes the following significant standards / interpretations:

NATIONAL BLOOD AUTHORITY
OVERVIEW NOTE

for the year ended 30 June 2020

Standard/ Interpretation

Nature of change in accounting policy, transitional provisions, and adjustment to financial statements

AASB 15 Revenue from Contracts with Customers / AASB 2016-8 Amendments to Australian Accounting Standards – Australian Implementation Guidance for Not-for-Profit Entities and AASB 1058 Income of Not-For-Profit Entities

AASB 15, AASB 2016-8 and AASB 1058 became effective 1 July 2019.

AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and Interpretation 13 Customer Loyalty Programmes. The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

AASB 1058 is relevant in circumstances where AASB 15 does not apply. AASB 1058 replaces most of the not-for-profit (NFP) provisions of AASB 1004 Contributions and applies to transactions where the consideration to acquire an asset is significantly less than fair value principally to enable the entity to further its objectives, and where volunteer services are received.

The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

AASB 16 Leases | AASB 2018-8 Amendments to Australian Accounting Standards – Right-of-Use Assets of Not-for-Profit Entities

AASB 16 became effective on 1 July 2019.

This new standard has replaced AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease, Interpretation 115 Operating Leases—Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.

AASB 16 provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, together with options to exclude leases where the lease term is 12 months or less, or where the underlying asset is of low value. AASB 16 substantially carries forward the lessor accounting in AASB 117, with the distinction between operating leases and finance leases being retained.

The details of the changes in accounting policies, transitional provisions and adjustments are disclosed below and in the relevant notes to the financial statements.

All other new / revised / amending standards and/or interpretations adopted by the NBA did not have a material effect on these financial statements and are not expected to have a material impact on the NBA’s future financial statements.

Following the adoption of AASB 15 and 16 there are no new standards that impact these statements issued prior to the signing of these statements.

NATIONAL BLOOD AUTHORITY
OVERVIEW NOTE

for the year ended 30 June 2020

Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not-For-Profit Entities

The NBA adopted AASB 15 and AASB 1058 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under the various applicable AASBs and related interpretations. Following the adoption of the modified retrospective approach transitional adjustments have been made to retained earnings to reflect the transition.

Under the new income recognition model the NBA first determined whether an enforceable agreement exists and whether the promises to transfer goods or services to the customer are ‘sufficiently specific’. If an enforceable agreement exists and the promises are ‘sufficiently specific’ (to a transaction or part of a transaction), the NBA applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the NBA have considered whether AASB 1058 applies.

In relation to AASB 15, the NBA elected to apply the new standard to all new and uncompleted contracts from the date of initial application. The NBA is required to aggregate the effect of all of the contract modifications that occur before the date of initial application.

In terms of AASB 1058, the NBA is required to recognise volunteer services at fair value if those services would have been purchased if not provided voluntarily, and the fair value of those services can be measured reliably.

Application of AASB 16 Leases

The NBA adopted AASB 16 using the modified retrospective approach, under which the cumulative effect of initial application is recognised in retained earnings at 1 July 2019. Accordingly, the comparative information presented for 2019 is not restated, that is, it is presented as previously reported under AASB 117 and related interpretations.

The NBA elected to apply the practical expedient to not reassess whether a contract is, or contains, a lease at the date of initial application. Contracts entered into before the transition date that were not identified as leases under AASB 117 were not reassessed. The definition of a lease under AASB 16 was applied only to contracts entered into or changed on or after 1 July 2019.

AASB 16 provides for certain optional practical expedients, including those related to the initial adoption of the standard. The NBA applied the following practical expedients when applying AASB 16 to leases previously classified as operating leases under AASB 117:

  • Exclude initial direct costs from the measurement of right-of-use assets at the date of initial application for leases where the right-of-use asset was determined as if AASB 16 had been applied since the commencement date;
  • Reliance on previous assessments on whether leases are onerous as opposed to preparing an impairment review under AASB 136 Impairment of assets as at the date of initial application; and
  • Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the date of initial application.

As a lessee, the NBA previously classified leases as operating or finance leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16, the NBA recognises right-of-use assets and lease liabilities for most leases. However, the NBA has elected not to recognise right-of-use assets and lease liabilities for some leases of low value assets based on the value of the underlying asset when new or for short-term leases with a lease term of 12 months or less.

On adoption of AASB 16, the NBA recognised right-of-use assets and lease liabilities in relation to leases of office space, which had previously been classified as operating leases. The lease liabilities were measured at the present value of the remaining lease payments, discounted using the NBA’s incremental borrowing rates based on zero coupon yields as prescribed by the Department of Finance as at 1 July 2019. The weighted-average rate applied was 1.00%.

NATIONAL BLOOD AUTHORITY
OVERVIEW NOTE

for the year ended 30 June 2020

The right-of-use assets were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments. The total Departmental impact on transition is summarised below:

1 July 2019

Right-of-use assets - buildings

2,303,093

Prepayments

(54,394)

Lease liabilities

2,248,699

Trade and other receivables

(13,570)

Other payables

(432,227)

Retained earnings

418,657

The following table reconciles the Departmental minimum lease commitments disclosed in the NBA’s 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019:

1 July 2019

Minimum operating lease commitment at 30 June 2019

2,070,104

Plus: effect of differences in methodology of commitments calculations

144,314

Less: non-lease components excluded from AASB 16 lease liability calculations

(135,883)

Less: lease incentives included in AASB 16 lease liability calculations

(12,817)

Plus: effect of extension options reasonable certain to be exercised

220,154

Undiscounted lease payments

2,285,872

Less: effect of discounting using the incremental borrowing rate as at the date of initial application

(37,173)

Lease liabilities recognised at 1 July 2019

2,248,699

Taxation

The NBA is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Revenues, expenses, liabilities and assets are recognised net of GST except:

  1. where the amount of the GST incurred is not recoverable from the Australian Taxation Office; and
  2. for receivables and payables.

Reporting of Administered Activities

Administered revenue, expenses, assets, liabilities and cash flows are disclosed in the administered schedules and related notes.

Except where otherwise stated, administered items are accounted for on the same basis and using the same policies as for departmental items, including the application of Australian Accounting Standards.

Events after the Reporting Period

Departmental

There were no events occurring after 30 June 2020 with the potential to significantly affect the ongoing structure and financial activities of the NBA.

Administered

There were no events occurring after 30 June 2020 with the potential to significantly affect the ongoing structure and financial activities of the NBA.

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Departmental Financial Performance

This section analyses the departmental financial performance of the National Blood Authority for the year ended 2020.

1.1 Expenses

2020

2019

$’000

$’000

1.1A: Employee benefits

Wages and salaries

4,825

4,657

Superannuation:

Defined contribution plans

481

488

Defined benefit plans

530

475

Leave and other entitlements

1,454

1,676

Separation and redundancies

253

0

Other employee benefits

146

142

Total employee benefits

7,689

7,438

Accounting Policy

Accounting policy for employee related expenses are contained in the people and relationships section.

1.1B: Suppliers

Goods and services supplied or rendered

Consultants

4

70

Contractors

493

546

Travel

195

236

Legal

52

4

IT services

551

769

Other

545

629

Total goods and services supplied or rendered

1,839

2,255

Goods supplied

148

207

Services rendered

1,691

2,048

Total goods and services supplied or rendered

1,839

2,255

Other suppliers

Workers compensation expenses

26

25

Operating lease rentals1

(10)

630

Total other suppliers

16

655

Total suppliers

1,855

2,909

1. NBA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

NBA has no short-term lease commitments as at 30 June 2020.

The above lease disclosures should be read in conjunction with the accompanying notes 1.1C, 3.2 and 3.4A.

1.1C: Finance costs

Interest on lease liabilities

19

-

Unwinding of discount

1

3

Total finance costs

20

3

1. NBA has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

The above lease disclosures should be read in conjunction with the accompanying notes 3.2 and 3.4A.

1.1D: Write-down and impairment of other assets

Revaluation decrement - furniture and fittings

47

-

Total write-down and impairment of other assets

47

-

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

1.2 Own-Source Revenue and Gains

2020

2019

$’000

$’000

Income

1.2A: Revenue from contracts with customers

Rendering of services

4,269

3,817

Total revenue from contracts with customers

4,269

3,817

Disaggregation of revenue from contracts with customers

Revenue under AASB15 is derived from the rendering of services for customers. NBA has decided to categorise revenue according to the type of customer. This enables NBA stakeholders to understand the nature, amount, timing and uncertainty of revenue which pertains to NBA.

Type of customer:

Australian Government entities (related parties)

565

200

State and Territory Governments

3,704

3,617

4,269

3,817

Accounting Policy

The following is a description of principal activities from which NBA generates its revenue:

1. Australian Government entities (related parties) - Organ and Tissue Authority (OTA)

Nature - NBA signed a Shared Services Agreement with OTA on 4 February 2016. As per the agreement, NBA offers a variety of services like HR, IT and Finance Services to the OTA on a cost recovery basis. The agreement meets the criteria of a "contract" as per paragraph 9 of AASB15.

Timing - NBA issues an invoice to the OTA at the end of each quarter for the services it has provided to the OTA in that quarter. Incoming receipts are classified as s.74 receipts.

Payment terms - the receivable for the rendering of services has 30 day payment terms.

2. State and Territory Governments

Nature - NBA receives 37% of its funding for the National Supply Plan and Budget from the States and Territories, as per the National Blood Agreement. The National Blood Agreement’s primary policy objectives and the NBA’s role is to provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services in Australia and to promote safe, high quality management and use of blood products, blood related products and blood related services in Australia.

The agreement meets the criteria of a "contract" as per paragraph 9 of AASB15.

Timing - the agreement is an enforceable contract with specific performance obligations and once the obligations are met an invoice is issued and revenue recognised.

Payment terms - the receivable for the rendering of services has 30 day payment terms.

The transaction price is the total amount of consideration to which the NBA expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. The practical expedient in AASB15.121 is not applied in NBA's financial statements.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

2020

2019

$’000

$’000

1.2B: Other Revenue

Other revenue

434

586

Total other revenue

434

586

1.2C: Other gains

Remuneration of auditors - resources received free of charge

66

66

Total other gains

66

66

Accounting Policy

Resources received free of charge

Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense. Resources received free of charge are recorded as either revenue or gains depending on their nature.

1.2D: Revenue from Government

Appropriations

Departmental appropriations

5,681

5,682

Total revenue from Government

5,681

5,682

Accounting Policy

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the NBA gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to the NBA) is recognised as revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Income and Expenses Adminstered on Behalf of Government

This section analyses the activities that NBA does not control but administers on behalf of Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

2020

2019

$'000

$'000

2.1A: Employee benefits

Wages and salaries

511

436

Superannuation

Defined contribution plans

46

29

Defined benefit plans

71

63

Leave and other entitlements

130

41

Other employee benefits

14

0

Total employee benefits1

772

569

1. These salaries relate to a taskforce established to implement a program of work to improve the governance and management of immunoglobulin products funded and supplied under the National Blood Agreement.

2.1B: Suppliers

Goods and services supplied or rendered

Purchases of blood and blood products

1,168,402

1,188,921

Consultants

2,090

1,552

Contractors

3,628

2,882

Travel

53

57

IT services

231

163

Other

435

159

Total goods and services supplied or rendered

1,174,839

1,193,734

Goods supplied

1,168,461

1,189,053

Services rendered

6,378

4,681

Total goods and services supplied or rendered

1,174,839

1,193,734

Accounting Policy:

Suppliers

Under the Deed of Agreement with the Australian Red Cross Lifeblood (ARCL or Lifeblood), surpluses greater than $5 million in any particular year are offset against expenses in the following year. In 2019-20, $69.8m (2018-19: $39.7m) was returned by the Lifeblood which related to the 2018-19 financial year. This return reduced the supplier expenses in the current year.

2020

2019

$'000

$'000

2.1C: Grants

Private sector

Not-for-profit organisations

745

738

Total grants

745

738

Accounting Policy:

Grants

The NBA administers grants on behalf of Governments. Grant liabilities are recognised to the extent that (i) the services required to be performed by the grantee have been performed, or (ii) the grant eligibility criteria have been satisfied, but payments due have not been made. When the Government enters into an agreement to make these grants and services but services have not been performed or criteria satisfied, this is considered a commitment.

Research and Development

Under the National Blood Agreement, the NBA is charged with facilitating and funding appropriate research, policy development or other action in relation to new developments by relevant government or non-government persons or entities. A nationally coordinated effort in research and development is required to address evidence gaps in the blood sector, and to enable responses to emerging evidence and new technologies. In September 2015, the NBA received approval from funding governments to implement a research and development pilot to support projects and activities likely to produce valuable outcomes in identified key priority areas in patient blood management and immunoglobulin governance. Expenditure to date for projects funded under the first four rounds of the research and development pilot is included in this year’s financial statements.and immunoglobulin governance. Expenditure to date for projects funded under the first four rounds of the research and development pilot is included in this year’s financial statements.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

2.2 Administered - Income

2020

2019

$'000

$'000

Revenue

Non–Taxation Revenue

2.2A: Revenue from contracts with customers

Rendering of services

1,211,007

1,203,892

Total revenue from contracts with customers

1,211,007

1,203,892

Disaggregation of revenue from contracts with customers

Revenue under AASB15 is derived all from the rendering of services for customers. NBA has categorised revenue according to the type of customer. This enables NBA stakeholders to understand the nature, amount, timing and uncertainty of revenue which pertains to NBA.

Type of customer:

Commonwealth Government

759,479

754,787

State and Territory Governments

451,303

448,804

External entities

225

300

1,211,007

1,203,892

Accounting Policy

All administered revenues are revenues relating to ordinary activities performed by the entity on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

The following is a description of principal activities from which NBA generates its revenue:

1. State & Territory Contributions

Nature - the NBA receives 37% of its administered funding for the National Supply Plan and Budget from the States and Territories, as per the National Blood Agreement. The National Blood Agreement’s primary policy objectives and the NBA’s role is to provide an adequate, safe, secure and affordable supply of blood products, blood related products and blood related services in Australia and to promote safe, high quality management and use of blood products, blood related products and blood related services in Australia. The agreement meets the criteria of a "contract" as per paragraph 9 of AASB15.

Timing - the contract is enforceable with specific performance obligations and once the obligations are met an invoice is issued and revenue recognised.

Payment terms - the receivable for the rendering of services has 30 day payment terms.

2. McMaster University

Nature - revenue is derived from a contract with McMaster University (Canada), for the supply of a bleeding disorders registry and associated services. The revenue from this contract is received and recognised on a quarterly basis, after the required services have been delivered.

Timing - the contract is enforceable with specific performance obligations and once the obligations are met an invoice is issued and revenue recognised.

Payment terms - the receivable for the rendering of services has 30 day payment terms.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Departmental Financial Position

This section analyses NBA's assets used to conduct its operations and the operating liabilities incurred as a result. Employee related information is disclosed in the People and Relationships section.

3.1 Financial Assets

2020

2019

$’000

$’000

3.1A: Cash and cash equivalents

Cash in special accounts - held in the OPA

8,651

8,069

Cash in special accounts - on hand or on deposit

170

610

Total cash and cash equivalents

8,821

8,679

Accounting Policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand;

b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily

convertible to known amounts of cash and subject to insignificant risk of changes in value; and

c) cash in special accounts.

3.1B: Trade and other receivables

Goods and services receivables

Goods and services

247

212

Total goods and services receivables

247

212

Appropriations receivables

Appropriation receivable

1,234

1,123

Total appropriations receivables

1,234

1,123

Other receivables

Statutory receivables - GST receivable

21

18

Total other receivables

21

18

Total trade and other receivables (gross)

1,502

1,353

Total trade and other receivables (net)

1,502

1,353

Credit terms for goods and services were within 30 days (2018-19: 30 days).

Accounting Policy

Financial assets

Trade receivables, loans and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

3.2. Non-Financial Assets

3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment, Intangibles, Leasehold Improvements and Right of Use Asset

Buildings -Right of Use Asset

Leasehold Improvements

Other plant and equipment

Intangibles - Computer Software

Total

$’000

$’000

$’000

$’000

$’000

As at 1 July 2019

Gross book value

968

1,016

3,761

5,745

Accumulated depreciation, amortisation and impairment

(398)

(436)

(3,601)

(4,435)

Total as at 1 July 2019

-

570

580

160

1,310

Recognition of right of use asset on initial application of AASB 16

2,303

-

-

-

2,303

Adjusted total as at 1 July 2019

2,303

570

580

160

3,613

Additions

Purchase

-

-

222

7

229

Internally developed

-

-

-

-

-

Right-of-use assets

-

-

-

-

-

Revaluations and impairments recognised in other comprehensive income

-

115

43

-

158

Revaluations and impairments recognised in other comprehensive income for right-of-use assets

-

-

-

-

0

Revaluations recognised in net cost of services

-

-

(47)

-

(47)

Impairments recognised in net cost of services

-

-

-

-

-

Impairments on right-of-use assets recognised in net cost of services

-

-

-

-

-

Depreciation and amortisation

-

(195)

(228)

(55)

(478)

Depreciation on right-of-use assets

(674)

-

-

-

(674)

Other movements

-

-

-

-

-

Total as at 30 June 2020

1,629

490

570

112

2,801

Net book value as of 30 June 2020 represented by:

Gross book value

2,303

968

1,238

3,768

8,277

Accumulated depreciation, amortisation & impairment

(674)

(478)

(668)

(3,656)

(5,476)

1,629

490

570

112

2,801

1. The carrying amount of computer software included $111,577 purchased software and $ nil internally generated software.

No indicators of impairment were found for leasehold improvements, property, plant and equipment or intangibles.

No leasehold improvements, property, plant and equipment, or intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations are conducted in accordance with the revaluation policy stated on the next page. On 31 March 2020, an independent valuer conducted revaluations of property, plant and equipment.

A revaluation increment for leasehold improvements of $114,769.79 (2018-19: Nil) and an increment for property, plant and equipment of $43,752.81 (2018-19: Nil) were credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position. Revaluation decrements for property, plant and equipment of $46,8881.12 (2018-19: Nil) were recognised as an expense in the Statement of Comprehensive Income.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Accounting Policy:

Acquisition of Assets

Assets are recorded at cost on acquisition. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than the thresholds listed below for each class of asset, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Asset class

Recognition Threshold

Property, plant and equipment

$2,000

Purchased software

$5,000

Leasehold improvements

$10,000

Internally developed software

$50,000

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the NBA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the NBA’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Fair values for each class of asset are determined as shown below.

Asset class

Fair value measured at

Leasehold improvements

Depreciated replacement cost

Property, plant & equipment

Market selling price

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted every three years. If there is a material difference between the carrying amount and assets' carrying amount then a valuation will be conducted. The most recent independent valuation was conducted by Jones Lang Lasalle on 31 March 2020.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that is previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NBA using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Asset class

2020

2019

Property, plant and equipment

3 to 7 years

3 to 7 years

Leasehold improvements

Lease term

Lease term

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the NBA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits are expected from its use or disposal.

Intangibles

The NBA’s intangibles comprise internally developed software and purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the NBA’s software are:

Type

2020

2019

Purchased software

3 years

3 years

Internally developed software

5 years

5 years

All software assets were assessed for indications of impairment at 30 June 2020.

Lease Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the NBA has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any ROU lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, General Government Sector (GGS) and whole of government financial statements.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

2020

2019

$’000

$’000

3.2B: Other non-financial assets

Prepayments

184

164

Total other non-financial assets

184

164

3.3 Payables

3.3A: Suppliers

Trade creditors and accruals

129

794

Total suppliers

129

794

3.3B: Other payables

Salaries and wages

110

47

Superannuation

18

9

Operating lease rentals and incentive

-

432

Total other payables

128

488

3.3C: Deferred revenue

Deferred revenue1

309

-

Total deferred revenue

309

-

1. NBA has applied AASB 15 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 101.82(A).

3.4 Interest Bearing Liabilities

3.4A: Leases

Lease liabilities:

Buildings

1,609

-

Total leases

1,609

-

Total cash outflow for leases for the year ended 30 June 2020 was $592,636.

3.5 Other Provisions

3.5A: Other provisions

Provision for restoration

Total

$’000

$’000

As at 1 July 2019

172

172

Amounts used - unwinding of discount

1

1

Total as at 30 June 2020

173

173

The entity currently has two (2018-19: 2) agreements for the leasing of premises which have provisions requiring the entity to restore the premises to their original condition at the conclusion of the lease. The entity has made a provision to reflect the present value of this obligation.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Assets and Liabilities Administered on Behalf of the Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result NBA does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

4.1 Administered - Financial Assets

2020

2019

$’000

$’000

4.1A: Cash and cash equivalents

Cash in special accounts - held in the OPA

192,849

168,084

Cash in special accounts - on hand or on deposit

251

251

Total cash and cash equivalents

193,100

168,335

4.1B: Trade and other receivables

Goods and services receivables

43,228

19,130

Total goods and services receivables

43,228

19,130

Other receivables

Interest

1,437

1,849

Statutory receivables - GST receivable

427

8,010

Total other receivables

1,864

9,859

Total trade and other receivables (gross)

45,092

28,989

Less impairment loss allowance

-

-

Total trade and other receivables (net)

45,092

28,989

Credit terms for goods and services were within 30 days (2018-19: 30 days).

Accounting Policy:

Financial assets

Trade receivables and other receivables that are held for the purpose of collecting the contractual cash flows, where the cash flows are solely payments of principal and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance. The NBA’s trade and other receivables do not have a significant financing component. Hence the NBA uses the simplified approach for trade receivables and other receivables as per AASB 9 Financial Instruments. Under this model the NBA will recognise a loss allowance equivalent to the receivables’ lifetime expected credit loss (ECL) as a provision in the Statement of Financial Position and as an expense in the Statement of Comprehensive Income, once there is an indication that there is a possibility of a credit loss from default events. No ECL was recognised in 2019-20.

4.1C: Other investments

Deposits1

133,800

129,800

Total other investments

133,800

129,800

Other investments expected to be recovered

No more than 12 months

53,000

70,000

More than 12 months

80,800

59,800

Total other investments

133,800

129,800

1. Monies invested in term deposits with various approved institutions under Section 58 of the Public Governance, Performance and Accountability Act 2013, for the purpose of receiving passive investment income.

Accounting Policy:

National managed fund

The national managed fund was established to manage the liability risks of the Australian Red Cross Society in relation to the provision of blood and blood products. The NBA manages this fund on behalf of Australian Governments. To facilitate the transfer of the fund to the NBA, a special account under Section 78 of the Public Governance, Performance and Accountability Act 2013 was established, and this fund was transferred to the NBA for reporting.

The fund came into effect on 1 July 2000 and to date no claims have been made against it. The balance of the fund as at 30 June 2020 is $135,322,183 (30 June 2019: $131,491,103), and is a combination of cash ($251,118), investments ($133,800,000) and the balance of the special account ($1,271,065).

4.1D: Other financial assets

Advances2

-

76,032

Total other financial assets

-

76,032

Other financial assets expected to be recovered

No more than 12 months

-

76,032

More than 12 months

-

-

Total other financial assets

-

76,032

2. Comprises a cash advance to the Australian Red Cross Lifeblood in accordance with the Deed of Agreement (and the Output Based Funding Model (OBFM)).

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

4.2 Administered - Non-Financial Assets

2020

2019

$’000

$’000

4.2A: Inventories

National reserve inventory held for distribution

55,667

54,766

Other inventory held for distribution

57,862

46,219

Total other investments

113,529

100,985

During 2019-20, $600,478 of inventory held for distribution related to a net write-off of damaged and expired stock and was recognised as an expense (2018-19: $390,044). No items of inventory were recognised at fair value less cost to sell. All inventory is expected to be distributed in the next 12 months.

Accounting Policy:

Inventories

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

a) raw materials and stores – purchase cost on a first-in-first-out basis, with the exception of plasma products which are based on a weighted average; and

b) finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

4.2B: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Plant and equipment

Computer Software1

Total

$’000

$’000

$’000

As at 1 July 2019

Gross book value

117

9,519

9,636

Accumulated depreciation, amortisation and impairment

(92)

(3,637)

(3,729)

Total as at 1 July 2019

25

5,882

5,907

Additions

Purchase

3

-

3

Internally developed

-

1,324

1,324

Revaluations and impairments recognised in other comprehensive income

(2)

-

(2)

Depreciation and amortisation

(19)

(1,267)

(1,286)

Disposals

Other

-

-

-

Total as at 30 June 2020

7

5,939

5,946

Net book value as at 30 June 2020 represented by:

Gross book value

120

10,843

10,963

Accumulated depreciation, amortisation & impairment

(113)

(4,904)

(5,017)

7

5,939

5,946

1. The carrying amount of computer software included $ Nil purchased software and $5,939,165 internally generated software.

No indicators of impairment were found for property, plant and equipment and intangibles.

No plant and equipment or intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations are concluded in accordance with the revaluation policy stated at Note 3.2. On 31 March 2020, an independent valuer conducted revaluations of plant and equipment.

A revaluation increment for property, plant and equipment of $1,770.49 (2018-19: Nil) was credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position.

4.3 Administered - Payables

2020

2019

$’000

$’000

4.3A: Suppliers

Trade creditors and accruals

55,178

57,683

Total suppliers

55,178

57,683

Suppliers expected to be settled

No more than 12 months

55,178

57,683

More than 12 months

-

-

Total suppliers

55,178

57,683

Settlement was usually made within 30 days.

4.3B: Deferred revenue

Deferred revenue1

104,475

-

Total deferred revenue

104,475

-

1. NBA has applied AASB 15 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 101.82(A).

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Funding

This section identifies NBA's funding structure.

5.1 Appropriations

5.1A: Annual appropriations (recoverable GST exclusive)

Annual Appropriations for 2020

Annual Appropriation

Adjustments to appropriation1

Total Appropriation

Appropriation applied in 2020 (current and prior years)

Variance

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL

Ordinary annual services

5,681

434

6,115

5,681

434

Capital Budget2

617

617

506

111

Total departmental

6,298

434

6,732

6,187

545

ADMINISTERED

Ordinary annual services

Administered items

3,630

-

3,630

3,630

-

Total administered

3,630

-

3,630

3,630

-

1. Adjustments to appropriation comprises Section 74 receipts.

2. Departmental and administered capital budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Annual Appropriations for 2019

Annual Appropriation

Adjustments to appropriation 1

Total
appropriation

Appropriation applied in 2019 (current and prior years)

Variance

$'000

$'000

$'000

$'000

$'000

DEPARTMENTAL

Ordinary annual services

5,682

586

6,268

5,682

586

Capital Budget2

617

617

226

391

Total departmental

6,299

586

6,885

5,908

977

ADMINISTERED

Ordinary annual services

Administered items

3,404

-

3,404

3,404

-

Total administered

3,404

-

3,404

3,404

-

1. Adjustments to appropriation comprises Section 74 receipts.

2. Departmental and administered capital budgets are appropriated through Appropriation Acts (No. 1,3,5). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

5.1B: Unspent annual appropriations (recoverable GST exclusive)

2020

2019

$’000

$’000

DEPARTMENTAL

Cash

170

610

Appropriation Act (No.1) 2017-18

-

506

Appropriation Act (No.1) 2018-19

617

617

Appropriation Act (No.1) 2019-20

617

-

Total

1,404

1,733

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

5.2 Special Accounts

The National Blood Account1

NMF Blood and Blood Products Special Account 20172

2020

2019

2020

2019

$’000

$’000

$’000

$’000

Balance brought forward from previous period

175,343

197,725

1,440

958

Increases

Appropriation credited to special account

9,817

9,312

-

-

Departmental

Other receipts - State and territory contributions

4,673

3,979

-

-

Other receipts - external parties

-

605

-

-

Total departmental increases

4,673

4,584

-

-

Administered

Realised investments

-

-

70,000

63,600

Other receipts - Commonwealth contributions

759,479

754,787

-

-

Other receipts - State and territory contributions

436,294

440,000

-

-

Other receipts - external parties

225

713

3,831

3,402

Total administered increases

1,195,998

1,195,500

73,831

67,002

Total increases

1,210,488

1,209,396

73,831

67,002

Available for payments

1,385,831

1,407,121

75,271

67,960

Decreases:

Departmental

Payments made to employees

7,288

7,059

-

-

Payments made to suppliers

3,450

2,824

-

-

Total departmental decreases

10,738

9,883

-

-

Administered

Payments made to employees

772

569

-

-

Payments made to suppliers

1,173,922

1,221,326

-

20

Investments made from the special account (PGPA Act section 58)

-

-

74,000

66,500

Total administered decreases

1,174,694

1,221,895

74,000

66,520

Total decreases

1,185,432

1,231,778

74,000

66,520

Total balance carried forward to the next period

200,399

175,343

1,271

1,440

Balance represented by:

Cash held in entity bank accounts

170

610

-

-

Cash held in the Official Public Account

200,229

174,733

1,271

1,440

Total balance carried forward to the next period

200,399

175,343

1,271

1,440

1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80

Establishing Instrument: National Blood Authority Act 2003

Purpose: The National Blood Authority was established on 1 July 2003 with the principal role of managing the national blood arrangements, ensuring sufficient supply and to provide a new focus on the safety and quality of blood and blood products. Blood and blood products are funded from a special account established under the National Blood Authority Act 2003, section 40. The NBA's activities contributing to its outcome are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled by the agency in its own right. Administered activities are managed or oversighted by the NBA on behalf of the Government.

2. Appropriation: Public Governance, Performance and Accountability Act 2013 section 78

Establishing Instrument: Public Governance, Performance and Accountability Act 2013 section 78

Purpose: For the receipt of monies and payment of all expenditure related to the management of blood and blood products liability claims against the Australian Red Cross Society (ARCS) in relation to the activities undertaken by the operating division of the ARCS known as the Australian Red Cross Lifeblood (previously Australian Red Cross Blood Service).

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

People and Relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

6.1 Employee Provisions

2020

2019

$’000

$’000

6.1A: Employee provisions

Leave

2,596

2,414

Separations and redundancies

146

-

Total employee provisions

2,742

2,414

Accounting Policy:

Liabilities for ‘short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including NBA's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by using the shorthand method. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Separation and redundancy

Provision is made for separation and redundancy benefit payments. The entity recognises a provision for termination when it has developed a detailed formal plan for the terminations and has informed those employees they will be terminated.

Superannuation

The entity's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The entity makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to Government. The entity accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June 2020 represents outstanding contributions.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

6.2 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any directors (executive or otherwise) of that entity.

The NBA has determined the key management personnel to be the Chief Executive, Deputy Chief Executive - Commercial Blood Products and Business Services and Deputy Chief Executive - Fresh Blood Products and Business Systems. Key management personnel remuneration is reported in the table below:

2020

2019

$

$

Short-term employee benefits

783,042

701,994

Post-employment benefits

113,497

98,233

Other long-term benefits

15,908

19,682

Total key management personnel compensation expenses

912,447

819,909

The total number of key management personnel that are included in the above table are 3 (2018-19: 3).

6.3 Related Party Disclosures

Related party relationships

The NBA is an Australian Government controlled entity. Related parties to the NBA are key management personnel including the Portfolio Minister, Chief Executive, Deputy Chief Executive - Commercial Blood Products and Business Services and Deputy Chief Executive - Fresh Blood Products and Business Systems, and other Australian Government entities.

Transactions with related parties

Given the breadth of government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans in general government departments. These transactions have not been separately disclosed in this note.

Giving consideration to relationships with related entities, and that transactions entered into during the reporting period by the NBA, it has been determined that there are no related party transactions to be separately disclosed (2018-19: nil).

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Managing uncertainties

This section analyses how the NBA manages financial risks within its operating environment.

7.1 Contingent Assets and Liabilities

7.1A: Departmental - Contingent Assets and Liabilities

Quantifiable contingencies

There were no quantifiable contingent assets or liabilities in this reporting period.

Unquantifiable contingencies

There were no unquantifiable contingent assets or liabilities in this reporting period.

Accounting Policy:

Contingent liabilities and contingent assets

Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

7.1B: Administered - Contingent Assets and Liabilities

2020

2019

$’000

$’000

Contingent liabilities

Indemnities

132,207

149,961

Total contingent liabilities

132,207

149,961

Net administered contingent liabilities

132,207

149,961

Quantifiable administered contingencies

The above table contains $132,207,000 of contingent liabilities disclosed in respect to the Deed of Indemnity between the Australian Red Cross Society (ARCS) and the NBA (2018-19: $149,961,000). The Deed indemnifies the ARCS in relation to funding arrangements for the Sydney Processing Centre (SPC) and the Melbourne Processing Centre (MPC). The NBA indemnifies the ARCS in respect of the ARCS’s liability to meet a funded obligation relating to the SPC or MPC if contracted payments become due and payable after the date when the ARCS does not have sufficient SPC or MPC funding.

Unquantifiable administered contingencies

At 30 June 2020, the NBA had three unquantifiable contingencies (2018-19: 3) disclosed below:

Unquantifiable Contingent Assets

1. The NBA has a Deed of Agreement with the ARCS for the supply of products. Under the Output Based Funding Model (OBFM) principles the Australian Red Cross Lifeblood (Lifeblood) may apply to retain up to the first $5,000,000 of surplus in any given year. Any surplus, less than $5,000,000 retained if appliciable, will be refunded to the NBA.

Unquantifiable contingent liabilities

2. The NBA under the National Blood Agreement prepares an annual National Supply Plan & Budget (NSP&B) for products. States & Territories and the Commonwealth make payments to the NBA based on this plan. Any surplus or shortfall is paid or recovered in the following year.

3. Under certain conditions Australian Governments jointly provide indemnity for Lifeblood through a cost sharing arrangement for claims, both current and potential, regarding personal injury and damage suffered by a recipient of certain blood products. The Australian Government’s share of any liability is limited to sixty three per cent of any agreed net cost.

The Deed of Agreement between the ARCS and the NBA in relation to the operation of Lifeblood includes certain indemnities and a limit of liability in favour of the ARCS. These cover a defined set of potential business, product and employee risks and liabilities arising from the operations of Lifeblood. Certain indemnities for specific risk events operate within the term of the Deed of Agreement, are capped and must meet specified pre-conditions. Other indemnities and the limitation of liability only operate in the event of the expiry and non renewal, or the earlier termination of the Deed of Agreement relating to the operation of the ARCS or the cessation of funding for the principal sites, and only within a certain scope. All indemnities are also subject to appropriate limitations and conditions including mitigation, contributory fault, and the process of handling relevant claims.

In the event of the contingent liability disclosed in the quantifiable administered contingencies occuring, the Commonwealth, or its nominee, would be assigned ownership of Lifeblood MPC building.

It was not possible to estimate the amounts of any eventual payments that may be required in relation to these claims. These were not included in the above table.

Accounting Policy:

Indemnities

The maximum amounts payable under the indemnities given is disclosed above. At the time of completion of the financial statements, there was no reason to believe that the indemnities would be called upon, and no recognition of any liability was therefore required.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

7.2 Departmental - Financial Instruments

7.2A: Categories of Financial Instruments

2020

2019

$’000

$’000

Financial Assets

Financial assets at amortised cost

Cash and cash equivalents

8,821

8,678

Trade and other receivables

1,502

212

Total financial assets at amortised cost

10,323

8,890

Financial Liabilities

Financial liabilities measured at amortised cost

Trade and other creditors

129

794

Total financial liabilities measured at amortised cost

129

794

Accounting Policy:

Financial assets

With the implementation of AASB 9 Financial Instrumentsfor the first time in 2018-19, the entity classifies its financial assets in the following categories:

a) financial assets at fair value through profit or loss;

b) financial assets at fair value through other comprehensive income; and

c) financial assets measured at amortised cost.

The classification depends on both the entity's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial assets at amortised cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

7.3 Administered - Financial Instruments

7.3A: Categories of Financial Instruments

2020

2019

$’000

$’000

Financial Assets

Financial assets at amortised cost

Deposits

133,800

129,800

Advances

-

76,032

Cash and cash equivalents

193,100

168,335

Trade and other receivables

45,092

28,988

Total financial assets

371,992

403,155

Financial Liabilities

Financial liabilities at amortised cost

Trade and other creditors

55,178

57,683

Total financial liabilities at amortised cost

55,178

57,683

7.3B: Net Gains or Losses on Financial Assets

Financial assets at amortised cost

Interest revenue

3,419

3,617

Net gain on financial assets at amortised cost

3,419

3,617

Accounting Policy:

Financial assets

With the implementation of AASB 9 Financial Instrumentsfor the first time in 2018-19, the entity classifies its financial assets in the following categories:

a) financial assets at fair value through profit or loss;

b) financial assets at fair value through other comprehensive income; and

c) financial assets measured at amortised cost.

The classification depends on both the entity's business model for managing the financial assets and contractual cash flow characteristics at the time of initial recognition. Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive or a legal obligation to pay cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred upon trade date.

Comparatives have not been restated on initial application.

Financial assets at amortised cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

7.4 Departmental - Fair Value Measurement

Fair value measurements at the end of the reporting period

2020

2019

$'000

$'000

Non-financial assets

Leasehold improvements

490

570

Plant and equipment

570

580

7.5 Administered - Fair Value Measurement

Fair value measurements at the end of the reporting period

2020

2019

$'000

$'000

Non-financial assets

Plant and equipment

7

25

Accounting Policy:

Fair value measurement

An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value. Comprehensive valuations are carried out at least once every three years in compliance with AASB 13 Fair Value Measurement requirements. On 31 March 2020 an independent valuer conducted revaluations of leasehold improvements and property, plant and equipment.

The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows:

Physical Depreciation and Obsolescence - Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the depreciated replacement cost approach.

Under the depreciated replacement cost approach the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all leasehold improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease.

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Other Information

8.1 Aggregate Assets and Liabilities

8.1A: Departmental - aggregate assets and liabilities

2020

2019

$’000

$’000

Assets expected to be recovered in:

No more than 12 months

10,323

10,031

More than 12 months

2,985

1,474

Total assets

13,308

11,505

Liabilities expected to be settled in:

No more than 12 months

712

1,282

More than 12 months

4,378

2,586

Total liabilities

5,090

3,868

8.1B: Administered - aggregate assets and liabilities

2020

2019

$’000

$’000

Assets expected to be recovered in:

No more than 12 months

349,599

343,355

More than 12 months

200,274

166,692

Total assets

549,873

510,047

Liabilities expected to be settled in:

No more than 12 months

55,178

57,683

More than 12 months

104,475

-

Total liabilities

159,653

57,683

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

8.2: BUDGETARY REPORTS AND EXPLANATIONS OF MAJOR VARIANCES

The following tables provide a comparison of the original budget as presented in the 2019-20 Portfolio Budget Statements (PBS) to the 2019-20 final outcome as presented in accordance with Australian Accounting Standards for the NBA. The Budget is not audited.

8.2A: Departmental Budgetary Reports

Statement of Comprehensive Income for the NBA
for the year ended 30 June 2020

2020

Actual

2020

Budget

2020

Variance

$'000

$'000

$'000

NET COST OF SERVICES

Expenses

Employee benefits

7,689

6,591

1,098

Suppliers

1,855

3,098

(1,243)

Depreciation and amortisation

1,152

621

531

Finance costs

20

7

13

Write-down and impairment of other assets

47

-

47

Total expenses

10,763

10,317

446

Own-source income

Own-source revenue

Revenue from contracts with customers

4,269

3,699

570

Other revenue

434

250

184

Total own-source revenue

4,703

3,949

754

Gains

Resources received free of charge - remuneration of auditors

66

66

-

Total gains

66

66

-

Total own-source income

4,769

4,015

754

Net (cost of)/contribution by services

(5,994)

(6,302)

308

Revenue from government

5,681

5,681

-

Surplus/(Deficit) before income tax on continuing operations

(313)

(621)

308

Income tax expense

Surplus/(Deficit) after income tax on continuing operations

(313)

(621)

308

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

159

-

159

Total other comprehensive income

159

-

159

Total comprehensive income/(loss)

(154)

(621)

467

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

STATEMENT OF FINANCIAL POSITION
as at 30 June 2020

2020

Actual

2020

Budget

2020

Variance

$’000

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

8,821

8,088

733

Trade and other receivables

1,502

919

583

Total financial assets

10,323

9,007

583

Non-financial assets

Buildings

1,629

352

1,277

Leasehold improvements

490

490

-

Plant and equipment

570

354

216

Computer software

112

371

(259)

Other non-financial assets

184

210

(26)

Total non-financial assets

2,985

1,777

1,208

Total assets

13,308

10,784

1,791

LIABILITIES

Payables

Suppliers

129

163

(34)

Other payables

128

624

(496)

Deferred revenue

309

-

309

Total payables

566

787

(221)

Interest bearing liabilities

Leases

1,609

-

1,609

Total interest bearing liabilities

1,609

-

1,609

Provisions

Employee provisions

2,742

1,980

762

Other provisions

173

182

(9)

Total provisions

2,915

2,162

753

Total liabilities

5,090

2,949

2,141

Net assets

8,218

7,835

(350)

EQUITY

Contributed equity

5,799

5,799

-

Reserves

619

460

159

Retained surplus/(Accumulated deficit)

1,800

1,576

224

Total equity

8,218

7,835

383

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Statement of Changes in Equity for the NBA
for the year ended 30 June 2020

Retained Earnings

Asset revaluation reserve

Contributed equity/capital

Total equity

2020

Actual

2020

Budget

2020

Variance

2020

Actual

2020

Budget

2020

Variance

2020

Actual

2020

Budget

2020

Variance

2020

Actual

2020

Budget

2020

Variance

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Opening balance

Balance carried forward from previous period

1 995

2 197

(202)

460

460

-

5 182

5 182

-

7 637

7 839

( 202)

Adjustment on initial application of AASB 15

( 301)

-

(301)

-

-

-

-

-

-

( 301)

-

( 301)

Adjustment on initial application of AASB 16

419

-

419

-

-

-

-

-

-

419

-

419

Adjusted opening balance

2 113

2 197

( 84)

460

460

-

5 182

5 182

-

7 755

7 839

( 84)

Comprehensive income

Revaluation adjustment

-

-

-

159

-

159

-

-

-

159

-

159

Surplus / (Deficit) for the period

( 313)

( 621)

308

-

-

-

-

-

-

( 313)

( 621)

308

Total comprehensive income attributable to Australian Government

( 313)

( 621)

308

159

-

159

-

-

-

( 154)

( 621)

467

Transactions with owners

Contributions by owners

Departmental capital budget

-

-

-

-

-

-

617

617

-

617

617

-

Total transactions with owners

-

-

-

-

-

-

617

617

-

617

617

-

Closing balance as at 30 June 2020 attributable to Australian Government

1 800

1 576

224

619

460

159

5 799

5 799

-

8 218

7 835

383

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Cash Flow Statement for the NBA
for the year ended 30 June 2020

2020

Actual

2020

Budget

2020

Variance

$’000

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

5,681

5,681

-

Sale of goods and rendering of services

4,675

3,949

726

Net GST received

319

273

46

Total cash received

10,675

9,903

772

Cash used

Employees

7,288

6,591

697

Suppliers

2,797

3,299

(502)

Interest payments on lease liabilities

21

-

21

Total cash used

10,105

9,890

215

Net cash from/(used by) operating activities

570

13

557

INVESTING ACTIVITIES

Cash used

Purchase of property, plant and equipment

222

617

(395)

Purchase of intangibles

7

-

7

Total cash used

229

617

(388)

Net cash from/(used by) investing activities

(229)

(617)

388

FINANCING ACTIVITIES

Cash received

Contributed Equity - departmental capital budget

506

617

(111)

Total cash received

506

617

(111)

Cash used

Principal repayment of lease liabilities

703

-

703

Total cash used

703

-

703

Net cash from/(used by) financing activities

(197)

617

(814)

Net increase/(decrease) in cash held

143

13

130

Cash and cash equivalents at the beginning of the reporting period

8,678

8,075

603

Cash and cash equivalents at the end of the reporting period

3.1A

8,821

8,088

733

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

8.2B: Departmental Major Budget Variances for 2020

Explanations of major variances

Affected line items (and statement)

Statement of Comprehensive Income

Employee benefits

This variance arises from three factors:

- Higher than normal long service leave taken by staff requiring the need to backfill positions;

- Valuation of employee benefits at the end of the financial year;

- Higher average staffing levels through out the financial year.

Employee Benefits (Statement of Comprehensive Income) (Statement of Financial Position)

Cash Flow Statement)

Suppliers

Reduced supplier expenses to offset higher employee expenses to maintain an operating surplus and the impact of the adoption of AASB 16 Leases.

Suppliers (Statement of Comprehensive Income)

(Cash Flow Statement)

Sale of goods and rendering of services

This variance resulted in the transfer of leave entitlements for staff joining the NBA from other Commonwealth agencies.

Sale of goods and rendering of services (Statement of Comprehensive Income) (Cash Flow Statement)

Statement of Financial Position

Cash and cash equivalents

This variance relates to unspent capital appropriations as part of the departmental capital budget as a result of the delay in developing or purchasing software for managing contracts.

Cash and cash equivalents (Statement of Financial Position) (Cash Flow Statement)

Trade and other receivables

This variance is as a result of timing of receipt on outstanding debtors at year end and higher than anticipated Appropriation receivable relating to Departmental Capital Budget.

Trade and other receivables (Statement of Financial Position) (Cash Flow Statement)

Buildings

PBS does not include the impact of the adoption of AASB 16 for property leases.

Non-financial assets (Statement of Financial Position)

Computer software

This variance is as a result of a delay in developing or purchasing software for managing contracts.

Non-financial assets (Statement of Financial Position)

Other payables

PBS does not include the impact of the adoption of AASB 16 for property leases.

Payables (Statement of Financial Position)

Deferred revenue

PBS does not include the impact of the adoption of AASB 15 for revenue.

Deferred revenue (Statement of Financial Position)

Interest bearing liabilities

PBS does not include the impact of the adoption of AASB 16 for property leases.

Interest bearing liabilities (Statement of Financial Position)

Employee Provisions

This variance is as a result of the transfer in of leave entitlements for staff joining the NBA from other Commonwealth agencies and valuation of employee benefits at the end of the financial year.

Provisions (Statement of Financial Position), Sale of goods and rendering of services (Statement of Comprehensive Income)

Cash Flow Statement

Purchase of property, plant and equipment

This variance is as a result of a delay in undertaking budgeted capital expenditure.

Purchase of property, plant and equipment (Cash Flow Statement)

Principal repayment of lease liabilities

PBS does not include the impact of the adoption of AASB 16 for property leases.

Principal repayment of lease liabilities (Cash Flow Statement)

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

8.2C: Administered Budgetary Reports

Administered Schedule of Comprehensive Income for the NBA
for the period ended 30 June 2020

2020

Actual

2020

Budget

2020

Variance

$’000

$’000

$’000

NET COST OF SERVICES

Expenses

Employee benefits

772

650

122

Suppliers

1,174,839

1,273,793

(98,954)

Grants - non-profit organisations

745

500

245

Depreciation and amortisation

1,286

600

686

Total expenses

1,177,642

1,275,543

(97,901)

Income

Revenue

Non-taxation revenue

Other sources of non-taxation revenues

1,214,426

1,277,939

(63,513)

Total non-taxation revenue

1,214,426

1,277,939

(63,513)

Total revenue

1,214,426

1,277,939

(63,513)

Net (cost of)/contribution by services

36,784

2,396

34,388

Surplus/(Deficit)

36,784

2,396

34,388

OTHER COMPREHENSIVE INCOME

Items not subject to subsequent reclassification to net cost of services

Changes in asset revaluation surplus

(2)

-

(2)

Total comprehensive income/(loss)

36,782

2,396

34,386

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

Administered Schedule of Assets and Liabilities for the NBA
as at 30 June 2020

2020

Actual

2020

Budget

2020

Variance

$’000

$’000

$’000

ASSETS

Financial assets

Cash and cash equivalents

193,100

219,085

(25,985)

Trade and other receivables

45,092

25,671

19,421

Other investments

133,800

135,192

(1,392)

Total financial assets

371,992

379,948

(7,956)

Non-financial assets

Plant and equipment

7

-

7

Other intangibles

5,939

5,305

634

Inventories

113,529

98,221

15,308

Prepayments

58,407

76,037

(17,630)

Total non-financial assets

177,882

179,563

(1,681)

Total assets administered on behalf of Government

549,874

559,511

(9,637)

LIABILITIES

Payables

Suppliers

55,178

70,661

(15,483)

Deferred revenue

104,475

-

104,475

Total payables

159,653

70,661

88,992

Total liabilities administered on behalf of Government

159,653

70,661

88,992

Net assets/(liabilities)

390,221

488,850

(98,629)

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

NATIONAL BLOOD AUTHORITY

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the year ended 30 June 2020

8.2D: Administered Major Budget Variances for 2020

Explanations of major variances

Affected line items (and statement)

Administered Schedule of Comprehensive Income

Suppliers

This variance is mainly as a result of efficiencies generated by the Australian Red Cross Lifeblood to the value of $69.8m associated with the 2018-19 Output Based Funding Model.

Suppliers (Administered Schedule of Comprehensive Income), Deficit/Surplus (Administered Schedule of Comprehensive Income)

Funding from governments

The variance predominantly relates to the return of $73.1m to the Commonwealth, and State and Territory Governments for the 2018-19 end of year reconciliation as part of the National Blood Agreement.

Funding from governments (Administered Schedule of Comprehensive Income), Deficit/Surplus (Administered Schedule of Comprehensive Income)

Administered Schedule of Assets and Liabilities

Cash and cash equivalents

This variance is offset by the increase in Trade and other receivables.

Cash and cash equivalents, (Administered Schedule of Assets and Liabilities)

Trade and other receivables

This variance is as a result of timing of payments at year end which is offset by the reduction in Cash and cash equivalents.

Trade and other receivables (Administered Schedule of Assets and Liabilities)

Other financial assets

The prepayment to the Australian Red Cross Lifeblood which is part of the 2019-20 Output Based Funding Model has been reduced.

Prepayments (Administered Schedule of Assets and Liabilities)

Inventories

This variance is primarily as a result of an increase in the plasma unit costs during the year.

Inventories (Administered Schedule of Assets and Liabilities), Suppliers (Administered Schedule of Comprehensive Income)

Suppliers

This variance is as a result of timing of payments at year end.

Suppliers (Administered Schedule of Assets and Liabilities)

Deferred revenue

Adoption of AASB 15 for revenue.

Deferred revenue (Administered Schedule of Assets and Liabilities)

END OF FINANCIAL STATEMENTS

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