Notes To and Forming Part of the Financial Statements
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A: Financial performance |
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A1: Expenses |
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2019 |
2018 |
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|
$'000 |
$'000 |
||
|
A1.1: Employee benefits |
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Wages and salaries |
17,835 |
13,602 |
|
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Superannuation: |
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|
Defined contribution plans |
2,043 |
1,905 |
|
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Defined benefit plans |
1,346 |
1,326 |
|
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Leave and other entitlements |
2,579 |
1,676 |
|
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Sitting fees |
264 |
230 |
|
|
Other employee benefits |
952 |
352 |
|
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Total employee benefits |
25,019 |
19,091 |
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A1.2: Supplier expenses |
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Goods and services supplied or rendered |
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Contractors and consultants |
6,643 |
6,239 |
|
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Commercial catering and events |
4,562 |
4,125 |
|
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Freight and travel |
4,049 |
2,549 |
|
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Utilities |
3,799 |
3,405 |
|
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Cost of goods sold |
1,837 |
1,309 |
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Information technology |
1,651 |
1,196 |
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Advertising |
1,544 |
1,296 |
|
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Exhibition services |
1,471 |
715 |
|
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Repairs and maintenance |
922 |
795 |
|
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Insurance |
836 |
785 |
|
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Printing and office supplies |
813 |
1,041 |
|
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Lease expense |
276 |
236 |
|
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Workers compensation premiums |
134 |
303 |
|
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External audit fee |
72 |
90 |
|
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Other goods and services |
3,091 |
4,285 |
|
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Total goods and services supplied or rendered |
31,700 |
28,369 |
|
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Goods supplied |
4,581 |
3,732 |
|
|
Services rendered |
27,119 |
24,637 |
|
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Total goods and services supplied or rendered |
31,700 |
28,369 |
|
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Leasing commitments |
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Commitments for minimum lease payments in relation to non-cancellable operating leases (including GST): |
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Within 1 year |
103 |
251 |
|
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Between 1 and 5 years |
79 |
19 |
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More than 5 years |
- |
- |
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Total operating lease commitments |
182 |
270 |
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The National Gallery in its capacity as lessee had 8 leases at 30 June 2019 (2018: 7) consisting of storage, motor vehicles and computer equipment. There are no purchase options with any lease or any contingent rent payable. The storage leases are subject to a 5 per cent fixed annual increase on the anniversary of the commencement of each lease. Operating lease payments are expensed on a straight-line basis, which is representative of the pattern of benefits derived from the leased assets. Implementation of AASB 16 Leases from 1 July 2019 will not have a material impact on the financial results of the National Gallery or its controlled entities. |
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2019 |
2018 |
||
|
$'000 |
$'000 |
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A1.3: Impairment loss allowance |
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Bad debts expense on receivables |
3 |
32 |
|
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Total impairment loss allowance |
3 |
32 |
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A1.4: Write-down and impairment of other assets |
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Provision for slow-moving and obsolete stock |
253 |
44 |
|
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Write-down of assets |
1,266 |
327 |
|
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Total write-down and impairment of other assets |
1,519 |
371 |
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A2: Own-Source Income |
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2019 |
2018 |
||
|
$'000 |
$'000 |
||
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A2.1: Sale of goods and rendering of services |
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|
Commercial catering and events |
5,069 |
4,941 |
|
|
Exhibition admissions |
3,323 |
3,330 |
|
|
Merchandising |
3,210 |
2,568 |
|
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Membership |
600 |
194 |
|
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Total sale of goods and rendering of services |
12,202 |
11,033 |
|
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Sale of goods |
3,210 |
2,568 |
|
|
Rendering of services |
8,992 |
8,465 |
|
|
Total sale of goods and rendering of services |
12,202 |
11,033 |
|
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A2.2: Contributions |
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Donations (excluding gifts of works of art) |
8,098 |
5,570 |
|
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Sponsorship |
2,128 |
2,016 |
|
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Total contributions |
10,226 |
7,586 |
|
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A2.3: Other revenue |
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Grants |
813 |
7,150 |
|
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Dividends and distributions |
727 |
640 |
|
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Exhibition management |
64 |
41 |
|
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Other revenue |
807 |
1,711 |
|
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Total other revenue |
2,411 |
9,542 |
|
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A2.4: Other gains |
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Other gains include unrealised net gains on the market value of investments. |
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B: Financial Position |
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B1: Financial Assets |
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2019 |
2018 |
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|
$'000 |
$'000 |
||
|
B1.1: Cash |
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Cash on hand or on deposit |
34,079 |
19,652 |
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Total cash |
34,079 |
19,652 |
|
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B1.2: Investments |
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Term deposits |
18,000 |
- |
|
|
Shares |
2,983 |
1,677 |
|
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Total investments |
20,983 |
1,677 |
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B1.3: Trade and other receivables |
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Goods and services receivables |
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Goods and services |
298 |
303 |
|
|
Total goods and services receivables |
298 |
303 |
|
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Other receivables |
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GST receivable from Australian Taxation Office |
710 |
433 |
|
|
Withholding tax receivable |
49 |
124 |
|
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Total other receivables |
759 |
557 |
|
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Total trade and other receivables (gross) |
1,057 |
860 |
|
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Less impairment loss allowance |
(5) |
(32) |
|
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Total trade and other receivables (net) |
1,052 |
828 |
|
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Credit terms for goods and services were within 30 days (2018: 30 days). |
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Accounting Policy Financial assets Following the implementation of AASB 9 Financial Instruments for the 2018-19 financial year, the National Gallery and its controlled entities classifies their financial assets in the following categories: financial assets at fair value through profit or loss financial assets measured at amortised cost. The classification depends on both the National Gallery and its controlled entities’ business model for managing the respective financial asset and contractual cashflow characteristics at the time of initial recognition. Financial assets are recognised when the National Gallery or one of its controlled entities becomes a party to the contract and, as a consequence, has a legal right to receive cash and derecognised when the contractual rights to the cash flows from the financial asset expire or are transferred. Cash, receivables and term deposits held for the purpose of collecting 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. Term deposits were previously classified as held-to-maturity investments. Shares are classified and accounted for as financial assets at fair value through profit or loss. Impairment of financial assets Financial assets are assessed for impairment at the end of each reporting period based on expected credit losses and using the general approach that measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased or on an amount equal to twelve-month expected credit losses if risk has not increased. A simplified approach for trade receivables is used. This approach measures the loss allowance as the amount equal to the lifetime expected credit losses. A write-off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset. The loss is recognised in the Statement of Comprehensive Income. Comparative figures have not been restated on initial application of AASB 9. Credit risk The National Gallery and its controlled entities are exposed to minimal credit risk, as the majority of financial assets are cash, term deposits held with financial institutions or managed funds and shares held on the Australian Stock Exchange. The maximum exposure to credit risk is the risk that arises from potential default of a trade debtor. The National Gallery has policies and procedures that outline the investment of surplus cash and debt recovery techniques. Market risk The National Gallery and its controlled entities are exposed to market risk from investments in managed funds and shares through the Gordon Darling Australia Pacific Print Fund. This risk is managed by determining an investment strategy in line with the Trust Deed, including investing in stable low-risk Australian listed equities and appointing an external fund manager to manage these investments. |
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B2: Non-Financial Assets |
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B2.1: Reconciliation of the opening and closing balances of land, buildings, plant and equipment, heritage and cultural assets and computer software |
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For the year ended 30 June 2019 |
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Land |
Buildings |
Plant and equipment |
Heritage and cultural assets |
Computer software |
Total |
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|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
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As at 1 July 2018 |
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Gross book value |
19,275 |
288,175 |
5,989 |
6,007,632 |
1,475 |
6,322,546 |
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Accumulated depreciation and impairment |
- |
- |
(906) |
(18,825) |
(1,079) |
(20,810) |
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Total as at 1 July 2018 |
19,275 |
288,175 |
5,083 |
5,988,807 |
396 |
6,301,736 |
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Additions |
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Purchase |
- |
4,299 |
709 |
5,872 |
231 |
11,111 |
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Works of art - gifts |
- |
- |
- |
5,277 |
- |
5,277 |
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Depreciation and amortisation |
- |
(8,211) |
(1,563) |
(18,905) |
(250) |
(28,929) |
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Write-down of assets in net cost of sales |
- |
- |
(3) |
(1,255) |
(8) |
(1,266) |
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Total as at 30 June 2019 |
19,275 |
284,263 |
4,226 |
5,979,796 |
369 |
6,287,929 |
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Represented by: |
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|
Gross book value |
19,275 |
292,474 |
6,693 |
6,017,515 |
1,442 |
6,337,399 |
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Accumulated depreciation and impairment |
- |
(8,211) |
(2,467) |
(37,719) |
(1,073) |
(49,470) |
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Total as at 30 June 2019 |
19,275 |
284,263 |
4,226 |
5,979,796 |
369 |
6,287,929 |
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Purchases of non-financial assets are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than the asset capitalisation thresholds. The initial cost of a non-financial asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. Purchases below the threshold are expensed in the year of acquisition other than where they form part of a group of similar items that are significant in total. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition. The asset thresholds and useful lives for each asset class remain unchanged from 2018.
Unless otherwise stated, depreciation and amortisation rates are applied on a straight-line basis and rates are reviewed annually, as are useful lives and residual values. Any necessary adjustments are recognised in the current or current and future reporting periods as appropriate. All non-financial assets are assessed annually for indications of impairment and, where appropriate, the asset’s carrying value is adjusted. Land and buildings No land or buildings are expected to be sold or disposed of within the next 12 months. No indicators of impairment were found for land or buildings in 2018-19 (2017-18: nil). |
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Plant and equipment
No material amounts of plant and equipment are expected to be sold or disposed of within the next 12 months. No indicators of impairment were found for plant or equipment in 2018-19 (2017-18: nil).
Heritage and cultural assets
The National Gallery has a significant collection of heritage and cultural assets, comprising sculptures, objects, paintings, drawings, prints, books and photography. The National Gallery has classified these assets as heritage and cultural assets, as they are primarily used for purposes that related to their cultural significance.
Land, buildings, plant and equipment that meet the definition of a heritage and cultural item are disclosed in the heritage and cultural asset class.
The National Gallery has adopted appropriate curatorial and preservation policies for the heritage and cultural assets, which are depreciated according to the assessment of useful lives.
Assets with a net book value of $1.3 million were identified through the National Gallery’s provenance governance framework as having no future economic benefit and were derecognised in accordance with AASB 116 Property, Plant and Equipment. No indicators of impairment were found for heritage and cultural assets in 2017-18.
Computer software
As at 30 June 2019, the carrying amount of computer software comprises purchased software ($0.3 million) and internally developed software ($46,000). These assets are carried at cost less accumulated amortisation and accumulated impairment losses. No material amounts of computer software are expected to be sold or disposed of within the next 12 months.
All computer software assets are assessed for indications of impairment at the end of each reporting period. No indicators of impairment were found for computer software in 2018-19 (2017-18: nil).
Revaluations of non-financial assets
Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. Revaluations are conducted by an independent valuer. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
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 was previously recognised in the operating result. Revaluation decrements for a class of assets are recognised directly in the operating result except to the extent that they reverse a previous revaluation increment for that class.
The fair value of land has been taken to be market value as assessed by an independent valuer. The fair value of buildings, plant and equipment has been taken to be the depreciated replacement cost as assessed by an independent valuer. The fair value of heritage and cultural assets is based on market observations as assessed by an independent valuer.
Further information is outlined in the overview note.
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Commitments for the acquisition of land, buildings, plant and equipment, heritage and cultural assets and computer software |
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|
Less than 1 year |
Between 1 and 5 years |
Total |
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|
2019 |
2018 |
2019 |
2018 |
2019 |
2018 |
|
|
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
$'000 |
|
|
Capital commitments payable (including GST): |
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|
Capital commitments |
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|
Buildings |
3,672 |
- |
333 |
- |
4,005 |
- |
|
Plant and equipment |
718 |
- |
- |
- |
718 |
- |
|
Heritage and cultural assets |
50 |
1,258 |
- |
- |
50 |
1,258 |
|
Total capital commitments payable |
4,440 |
1,258 |
333 |
- |
4,773 |
1,258 |
|
As at 30 June 2019, no capital commitments had been entered over 5 years (2018: nil). |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
B2.2: Inventory |
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|
Inventory held for sale |
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|
Finished goods |
791 |
781 |
|
|
Less: provision for slow-moving and obsolete stock |
(284) |
(44) |
|
|
Total inventory held for sale |
507 |
737 |
|
Accounting Policy Inventory held for sale is valued at the lower of cost and net realisable value. Provision is made for slow-moving and obsolete inventory items. |
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B3: Payables |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
B3.1: Supplier payables |
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|
Trade creditors and accruals |
4,785 |
3,464 |
|
|
Other creditors |
161 |
192 |
|
|
Total supplier payables |
4,946 |
3,656 |
|
|
Settlement is usually made within 30 days. |
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B3.2: Other payables |
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Unearned income |
1,100 |
1,344 |
|
|
Salaries and wages |
365 |
289 |
|
|
Total other payables |
1,465 |
1,633 |
|
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Accounting policy Suppliers and other payables are initially measured at fair value, net of transaction costs, and subsequently at amortised cost using the effective interest method. These liabilities are recognised to the extent that the goods and services have been received irrespective of whether they have been invoiced. |
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B4: Employee Provisions |
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2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
B4.1: Employee provisions |
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|
Annual leave |
1,912 |
1,850 |
|
|
Long service leave |
4,094 |
3,201 |
|
|
Total employee provisions |
6,006 |
5,051 |
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Accounting policy Liabilities for short-term employee benefits and termination benefits expected within 12 months of the end of reporting period are measured at their nominal amounts. Leave The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave, as all sick leave is non-vesting and the average sick leave taken in future years by employees of the National Gallery and its controlled entities is estimated to be less than the annual entitlement. 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 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 in accordance with the shorthand method referred to in the FRR. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Superannuation Employees of the National Gallery and its controlled entities are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or other elected defined contribution schemes. The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme. The liability for defined benefits is recognised in the Department of Finance’s administered financial statements. The National Gallery and its controlled entities make contributions to defined benefit superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government. The National Gallery and its controlled entities account for the contributions as if they were contributions to defined contribution plans. The liability for superannuation recognised as at 30 June represents outstanding contributions owed by the National Gallery and its controlled entities and is recorded in other payables. |
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C: Funding |
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C1: Revenue from Government |
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C1.1: Revenue from Government |
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Funding received or receivable from non-corporate Commonwealth entities is recognised as revenue from Government by the National Gallery and its controlled entities unless the funding is in the nature of an equity injection, the Collection Development Acquisition Budget (CDAB), a grant or a loan, in which case it is recognised as a contribution by owner directly in equity. |
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C2: Net cash appropriation arrangements |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
C2.1: Net cash appropriation arrangements |
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|
Total comprehensive income less depreciation expense on heritage and cultural assets |
8,197 |
9,189 |
|
|
Plus: depreciation expense on heritage and cultural assets |
(18,905) |
(18,825) |
|
|
Total comprehensive income as per Statement of Comprehensive Income |
(10,708) |
(9,636) |
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|
From 2009-10, the Government replaced revenue appropriations for the heritage and cultural depreciation expenses of designated collecting institutions with a separate capital budget (CDAB) provided as an equity contribution. |
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D: Other items |
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d1: Total assets and liabilities |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
D1.1: Total assets and liabilities |
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|
Assets expected to be recovered in: |
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|
No more than 12 months |
54,501 |
21,792 |
|
|
More than 12 months |
6,290,942 |
6,303,412 |
|
|
Total assets |
6,345,443 |
6,325,204 |
|
|
Liabilities expected to be settled in: |
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|
No more than 12 months |
8,482 |
7,303 |
|
|
More than 12 months |
3,935 |
3,037 |
|
|
Total liabilities |
12,417 |
10,340 |
|
|
D2: Contingent assets and liabilities |
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Contingent assets and liabilities are not recognised in the Statement of Financial Position. They may arise from uncertainty as to the existence of an asset or liability 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. Quantifiable contingencies As at 30 June 2019, the National Gallery and its controlled entities had two contingent assets, being land and a building, with a fair value estimated of $1.4 million (2018: $1.4 million) and no quantifiable contingent liabilities (2018: nil). Unquantifiable contingencies The National Gallery’s provenance governance framework identified a small number of collection assets of uncertain status that are at risk of future write-off. |
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D3: Key management personnel Remuneration |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
Short-term employee benefits |
825 |
1,463 |
|
|
Post-employment benefits |
77 |
188 |
|
|
Other long-term employee benefits |
6 |
20 |
|
|
Termination benefits |
142 |
- |
|
|
Total key management personnel remuneration |
1,050 |
1,671 |
|
|
Key management personnel (KMP) are those persons having authority and responsibility for planning, directing and controlling activities of the National Gallery and its controlled entities. In 2018-19, the National Gallery and its controlled entities have determined the KMP to be the Portfolio Minister, Council members and the Director (in 2017-18, members of the senior management group were also included). The above table includes the remuneration in 2018-19 for 13 KMP who held office at some time during the year (2017-18: 13). The remuneration and benefits for the Portfolio Minister are excluded from the table as they are set by the Remuneration Tribunal and are not paid by the National Gallery or its controlled entities. The amounts in the table are prepared on an accrual basis and include salary, superannuation, annual and long service leave expense (including revaluations of leave provisions), allowances and changes in ancillary costs and probability rates on leave provisions. |
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D4: Related-party Disclosures |
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D4.1: National Gallery of Australia Foundation and Gordon Darling Australia Pacific Print Fund National Gallery of Australia Foundation The National Gallery of Australia Foundation (Foundation) is incorporated under the Corporations Act 2001 as a company limited by guarantee. The Foundation is constituted to give effective control to the National Gallery under the definition of control in AASB 10 Consolidated Financial Statements. The National Gallery provides administrative services to the Foundation free of charge. The fair value of these services was estimated as $1.1 million in 2018-19 (2017-18: $1.0 million). The Foundation donated $4.7 million to the National Gallery in 2018-19 (2017-18: $3.1 million). Donations consisted of funds for the development of the national collection of works of art and to support the National Gallery’s programs. The National Gallery donated $1.0 million to the Foundation (2017-18: nil) from a bequest to the National Gallery during the 2018-19 financial year. Gordon Darling Australia Pacific Print Fund The Gordon Darling Australia Pacific Print Fund (Fund) is a trust established in 1989. As trustee, the National Gallery holds the trust funds and operates the Fund in accordance with the terms and conditions of the trust deed. The trust deed gives effective control of the Fund to the National Gallery under the definition of control in AASB 10 Consolidated Financial Statements. The Fund contributed $0.1 million (2017-18: $0.2 million) to the development of the national collection of the National Gallery during 2018-19, consisting of works of art and contributions towards program expenses. The Foundation’s and Fund’s accounts are included in the National Gallery consolidated financial statements. All inter-entity transactions are eliminated on consolidation (refer to notes D6 and D7). |
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D4.2: Council members |
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Members of the National Gallery of Australia Council during the reporting period were:
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D4.3: Transactions with related parties |
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The National Gallery is an Australian Government controlled entity. Related parties to the National Gallery are KMP and their immediate families as described at note D3. Given the National Gallery and its controlled entities’ activities, related parties may transact in the same capacity as ordinary citizens. Such transactions may include donations of cash and works of art, purchases of exhibition tickets and goods and services through the National Gallery’s shop and cafe. All purchases were conducted under normal terms and conditions and are therefore not separately disclosed in this note. Giving consideration to relationships with related parties, and transactions entered into during the reporting period by the National Gallery and its controlled entities, there are no related-party transactions to be separately disclosed in 2018-19 (2017-18: nil). |
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D5: Budgetary Reporting |
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The budget presented in the Statements of Comprehensive Income, Financial Position and Changes in Equity and the Cashflow Statement is not audited. Statement of Comprehensive Income In 2018-19, the National Gallery and its controlled entities reported an accrual operating deficit of $10.7 million, $7.9 million better than the budgeted deficit of $18.6 million as reported in the Portfolio Budget Statements 2018-19 published on 8 May 2018. After adjusting for non-cash operating items such as gifts of works of art, donations for the purchase of works of art and write-down and depreciation on heritage and cultural assets, the National Gallery and its controlled entities reported an operating surplus of $1.8 million.1 The National Gallery and its controlled entities’ total expenses of $87.2 million were $12.8 million more than originally budgeted. After adjusting for the $1.2 million write-down of heritage and cultural assets, the final outcome was within 1 per cent of the revised estimate of $85.1 million as published in the Portfolio Additional Estimates Statements 2018-19 (PAES).2 The revised estimates reflect the impact of the budget measure announced in the Mid-Year Economic and Fiscal Outlook 2018-19 (MYEFO), which provided $14.4 million of additional ongoing funding to allow the National Gallery to continue to safeguard and exhibit its important national collection of works of art. The expense variance to the original budget included a $6.1 million difference in employee expenses that primarily reflected a revision to collection management activities, which resulted in costs being expensed that were anticipated to be capitalised in the original budget. The estimate was revised to $24.3 million in the PAES and the final outcome was within 3 per cent of the revised estimate. The supplier expense budget was also revised upwards in the PAES to $31.9 million and the final outcome of $31.7 million was within 1 per cent of the revised estimate. Own-source revenue totalled $31.4 million in 2018-19, $8.7 million greater than the original budget of $22.7 million. Higher than anticipated exhibition and merchandising activities resulted in sales of goods and services exceeding budget by $2.7 million, an increase of 28%. During 2018-19, gifts of works of art valued at $5.3 million were received by the National Gallery and its controlled entities against a $2.5 million budget disclosed against other gains. By nature, these gifts are difficult to predict, and the estimate was updated to $5 million in the PAES. Interest was $0.9 million greater than the original budget due to higher than budgeted cash and investment balances and higher rates of return. As previously noted, the Government provided an additional $14.4 million of ongoing operating funding to the National Gallery through the MYEFO. This increased revenue from Government to $45 million in 2018-19 compared to the original budget of $30.6 million. Statement of Financial Position As at 30 June 2019, the National Gallery and its controlled entities’ net assets were on budget at $6.3 billion. The national collection of works of art, which is recognised as heritage and cultural assets represents 94 per cent of this balance. Financial assets totalled $56.6 million against an original budget of $13.6 million, which was estimated based on the balances of 30 June 2017.3 Accordingly, the variance to the original budget can be attributed, at least in part, to the prior-year results, which resulted in an opening balance on 1 July 2018 of $22.4 million, $8.8 million more than the budget. The original budget assumed that future cash inflows would match future outflows and that all capital funding would be spent in the same year it was received. The National Gallery of Australia Foundation’s cash balance increased by $3.2 million between reporting dates, reflecting donations received in the latter part of the year to support future programs and acquisitions. Capital reserves have been established to meet critical capital works commitments, contribute to capital maintenance and to safeguard and develop the national collection. The National Gallery and its controlled entities use a combination of cash and term deposits to manage its cash flows. As at 30 June 2019, non-financial assets were reported at $6.3 billion, consistent with the original budget. The $1.6 million variance in plant and equipment reflects the difference in the actual opening balance, compared to the budgeted opening balance, which was estimated before the prior period revaluation was undertaken in 2017-18. Total liabilities were $12.4 million as at 30 June 2019, $3.4 million greater than the original budget. The results of 2017-18 and the higher than budgeted opening balance account for 50 per cent of this variance. The capital works program resulted in higher supplier balances at year end, plus movements in the probability and discount rates increased employee provisions. Statement of Changes in Equity The actual equity position of $6.3 billion as at 30 June 2019 is consistent with the original budget and the revised estimates published in the PAES The original budget provided for contributions by owners of $22.7 million, comprising $16.6 million for the CDAB and $6.1 million for contributions to capital maintenance. Additional capital maintenance funding of $6.2 million was provided by the Government in the MYEFO context. Cashflow Statement The variances between budget and actuals in the Cashflow Statement reflect the effect of the events already described. |
1. The Government does not provide operating funding for the depreciation of heritage and cultural assets. Rather, a CDAB is provided and recognised directly in equity as a contribution by owner.
2. The revised 2018-19 estimates were published in the Portfolio Additional Estimates Statements 2018-19 on 14 February 2019.
3. The original budget was published on 8 May 2018. As a consequence, the budgeted opening balances as at 1 July 2018 needed to be estimated.
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D6: National Gallery of Australia and controlled entities financial information |
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|
National Gallery |
Controlled entities1 |
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|
2019 |
2018 |
2019 |
2018 |
||||
|
$'000 |
$'000 |
$'000 |
$'000 |
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|
D6.1: National Gallery and controlled entities financial information |
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STATEMENT OF FINANCIAL POSITION |
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|
ASSETS |
|||||||
|
Current assets |
40,735 |
11,536 |
13,766 |
10,257 |
|||
|
Non-current assets |
6,290,942 |
6,303,412 |
- |
- |
|||
|
Total assets |
6,331,677 |
6,314,948 |
13,766 |
10,257 |
|||
|
LIABILITIES |
|||||||
|
Current liabilities |
8,482 |
7,296 |
- |
8 |
|||
|
Non-current liabilities |
3,935 |
3,037 |
- |
- |
|||
|
Total liabilities |
12,417 |
10,333 |
- |
8 |
|||
|
EQUITY |
|||||||
|
Contributed equity |
345,104 |
316,235 |
- |
- |
|||
|
Retained surplus |
582,801 |
597,025 |
13,766 |
10,249 |
|||
|
Asset revaluation reserve |
5,391,355 |
5,391,355 |
- |
- |
|||
|
Total equity |
6,319,260 |
6,304,615 |
13,766 |
10,249 |
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STATEMENT OF COMPREHENSIVE INCOME |
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|
NET COST OF SERVICES |
|||||||
|
Expenses |
|||||||
|
Employee benefits |
24,551 |
18,625 |
468 |
465 |
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|
Supplier expenses |
32,122 |
27,868 |
629 |
501 |
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|
Depreciation and amortisation |
28,929 |
28,529 |
- |
- |
|||
|
Impairment loss allowance on financial instruments |
3 |
32 |
- |
- |
|||
|
Other expenses |
1,519 |
371 |
- |
- |
|||
|
Write-down and impairment of assets |
953 |
- |
4,794 |
3,067 |
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Total expenses |
88,077 |
75,425 |
5,891 |
4,033 |
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|
Own-source revenue |
|||||||
|
Sale of goods and rendering of services |
12,202 |
11,033 |
- |
- |
|||
|
Contributions |
8,042 |
5,051 |
7,898 |
5,600 |
|||
|
Interest |
1,109 |
645 |
133 |
94 |
|||
|
Works of art - gifts |
5,277 |
7,023 |
- |
- |
|||
|
Other revenue |
2,200 |
8,696 |
1,264 |
846 |
|||
|
Total own-source revenue |
28,830 |
32,448 |
9,295 |
6,540 |
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|
Gains |
|||||||
|
Gains on sale of assets |
12 |
- |
- |
- |
|||
|
Other gains |
2 |
- |
113 |
45 |
|||
|
Total gains |
14 |
- |
113 |
45 |
|||
|
Total own-source income |
28,844 |
32,448 |
9,408 |
6,585 |
|||
|
Net cost of services |
(59,233) |
(42,977) |
3,517 |
2,552 |
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|
Revenue from Government |
45,010 |
30,787 |
- |
- |
|||
|
Deficit on continuing operations |
(14,223) |
(12,190) |
3,517 |
2,552 |
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|
OTHER COMPREHENSIVE INCOME |
|||||||
|
Revaluation increment |
- |
7,222 |
- |
- |
|||
|
Total other comprehensive income |
- |
7,222 |
- |
- |
|||
|
Total comprehensive income |
(14,223) |
(4,968) |
3,517 |
2,552 |
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1. Controlled entities include the National Gallery of Australia Foundation and the Gordon Darling Australia Pacific Print Fund.
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D7: Assets held in trust |
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|
2019 |
2018 |
||
|
$'000 |
$'000 |
||
|
D7.1: Gordon Darling Australia Pacific Print Fund |
|||
|
Balance carried forward from previous year |
3,175 |
3,221 |
|
|
Investment and other income |
328 |
134 |
|
|
Net gain on value of investments |
113 |
45 |
|
|
Total income and gains |
441 |
179 |
|
|
Payments for works of art |
63 |
196 |
|
|
Expenses |
66 |
29 |
|
|
Total payments and expenses |
129 |
225 |
|
|
Balance carried forward to next year |
3,487 |
3,175 |
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The Gordon Darling Australia Pacific Print Fund (Fund) is a trust established in 1989 under a deed of settlement to purchase, exhibit and publish information about prints by Australasian printmakers now living or who died on or after 1 January 1965. The Fund is made up of a combination of cash, a managed fund and shares listed on the Australian Stock Exchange. |
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Visit
https://www.transparency.gov.au/annual-reports/national-gallery-australia/reporting-year/2018-2019-25