Financial statements for the period ended 30 June 2020
Statement by the Commissioners, Chief Executive and Manager Finance
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 Transport Commission will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the Commissioners.
Statement of comprehensive income
FOR THE PERIOD ENDED 30 JUNE 2020
2020 | 2019 | Budget | ||||
NET COST OF SERVICES | Notes | $ | $ | $ | ||
Expenses | ||||||
Employee benefits | 2.1A | 7,030,115 | 6,510,751 | 6,506,000 | ||
Suppliers | 2.1B | 2,290,414 | 2,698,200 | 2,864,000 | ||
Finance costs | 2.1C | 69,513 | - | 69,000 | ||
Depreciation and amortisation | 3.2A | 744,013 | 231,150 | 676,000 | ||
Total expenses | 10,134,055 | 9,440,101 | 10,115,000 | |||
Own-source Income | ||||||
Own-source revenue | ||||||
Sale of goods and rendering of services – external parties | - | 1,253 | - | |||
Interest on deposits | 2.2A | 4,961 | 24,495 | 15,000 | ||
Total own-source revenue | 4,961 | 25,748 | 15,000 | |||
Net cost of services | (10,129,094) | (9,414,353) | (10,100,000) | |||
Revenue from Government | 2.2B | 10,100,000 | 9,931,000 | 10,100,000 | ||
(Deficit)/Surplus attributable to the Australian | (29,094) | 516,647 | - | |||
Government | ||||||
OTHER COMPREHENSIVE INCOME | ||||||
Total comprehensive (deficit)/surplus | (29,094) | 516,647 | - | |||
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary Change of policy for recognition of prior service, termination payments for senior staff and less vacancies during the year resulted in increased employee benefits. Changes to the operating model due to COVID-19 has contributed to reduced supplier expenses. Low interest rates have reduced the interest income. |
Statement of financial position
AS AT 30 JUNE 2020
2020 | 2019 | Budget | ||||
Notes | $ | $ | $ | |||
ASSETS | ||||||
Financial assets | ||||||
Cash and cash equivalents | 3.1A | 2,505,539 | 2,145,879 | 1,912,000 | ||
Trade and other receivables | 3.1B | 33,888 | 608,183 | 609,000 | ||
Total financial assets | 2,539,427 | 2,754,062 | 2,521,000 | |||
Non-financial assets1 | ||||||
Buildings | 3.2A | 3,337,043 | - | 3,337,000 | ||
Leasehold Improvements | 3.2A | 238,153 | - | 240,000 | ||
Plant and equipment | 3.2A | 992,021 | 998,169 | 1,094,000 | ||
Prepayments | 62,034 | 67,795 | 68,000 | |||
Total non-financial assets | 4,629,251 | 1,065,964 | 4,739,000 | |||
Total assets | 7,168,678 | 3,820,026 | 7,260,000 | |||
LIABILITIES | ||||||
Payables | ||||||
Suppliers | 3.3A | 184,556 | 444,708 | 445,000 | ||
Other payables | 3.3B | 21,784 | 21,784 | 22,000 | ||
Total payables | 206,340 | 466,492 | 467,000 | |||
Provisions | ||||||
Employee provisions | 4.1A | 1,128,101 | 929,024 | 929,000 | ||
Total provisions | 1,128,101 | 929,024 | 929,000 | |||
Interest bearing liabilities | ||||||
Lease liability | 3,438,821 | - | 3,439,000 | |||
Total interest bearing liabilities | 3,438,821 | - | 3,439,000 | |||
Total liabilities | 4,773,262 | 1,395,516 | 4,835,000 | |||
Net Assets | 2,395,416 | 2,424,510 | 2,425,000 | |||
EQUITY | ||||||
Reserves | - | 119,607 | 119,000 | |||
Retained surplus | 2,395,416 | 2,304,903 | 2,306,000 | |||
Total Equity | 2,395,416 | 2,424,510 | 2,425,000 | |||
1. Right-of-use assets are included in the Buildings line item.
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary A provision was made in the budget for outstanding annual funding contributions as per previous years. However, all funding contributions were received before the end of the period. This resulted in lower trade and other receivables and higher cash balances. The policy for recognition of prior service was amended to include service with Commonwealth and the States. This resulted in increased employee provisions. |
Statement of changes in equity
FOR THE PERIOD ENDED 30 JUNE 2020
2020 | 2019 | Budget | |||
Notes | $ | $ | $ | ||
RETAINED EARNINGS | |||||
Opening balance | |||||
Balance carried forward from previous period | 2,304,903 | 1,788,256 | 2,304,903 | ||
Comprehensive income | |||||
(Deficit)/Surplus for the period | (29,094) | 516,647 | - | ||
Transfers between equity component | 119,607 | - | |||
Closing balance as at 30 June | 2,395,416 | 2,304,903 | 2,304,903 | ||
ASSET REVALUATION RESERVE | |||||
Opening balance | |||||
Balance carried forward from previous period | 119,607 | 119,607 | 119,000 | ||
Transfers between equity component | (119,607) | - | |||
Closing balance as at 30 June | - | 119,607 | 119,000 | ||
TOTAL EQUITY | |||||
Opening balance | 2,424,510 | 1,907,863 | 2,424,510 | ||
Comprehensive income | |||||
(Deficit)/Surplus for the period | (29,094) | 516,647 | - | ||
Closing balance as at 30 June | 2,395,416 | 2,424,510 | 2,424,510 |
The above statement should be read in conjunction with the accompanying notes.
Cash flow statement
FOR THE PERIOD ENDED 30 JUNE 2020
2020 | 2019 | Budget | ||||
Notes | $ | $ | $ | |||
OPERATING ACTIVITIES | ||||||
Cash received | ||||||
Receipts from Government | 10,647,000 | 9,931,000 | 10,100,000 | |||
Interest | 6,267 | 24,495 | 15,000 | |||
Net GST received | 25,989 | 27,407 | ||||
Other | - | 1,253 | ||||
Total cash received | 10,679,256 | 9,984,155 | 10,115,000 | |||
Cash used | ||||||
Employees | 6,688,091 | 6,340,124 | 6,506,000 | |||
Suppliers | 2,687,752 | 2,911,756 | 2,864,000 | |||
Interest payments on lease liabilities | 69,513 | - | 69,000 | |||
Total cash used | 9,445,356 | 9,251,880 | 9,439,000 | |||
Net cash from / (used by) operating activities | 1,233,900 | 732,275 | 676,000 | |||
INVESTING ACTIVITIES | ||||||
Cash used | ||||||
Purchase of non-financial assets | 550,012 | 620,963 | 586,000 | |||
Total cash used | 550,012 | 620,963 | 586,000 | |||
Net cash from / (used by) investing activities | (550,012) | (620,963) | (586,000) | |||
FINANCING ACTIVITIES | ||||||
Cash Used Principal payments of lease liabilities | 324,228 | - | 324,000 | |||
Total cash used | 324,228 | - | 324,000 | |||
Net cash from / (used by) investing activities | (324,228) | - | (324,000) | |||
Net increase / (decrease) in cash held | 359,660 | 111,312 | (234,000) | |||
Cash and cash equivalents at the beginning of the reporting period | 2,145,879 | 2,034,567 | 2,146,000 | |||
Cash and cash equivalents at the end of the reporting period | 3.1A | 2,505,539 | 2,145,879 | 1,912,000 |
The above statement should be read in conjunction with the accompanying notes.
Budget Variances Commentary Amounts receivable from prior year was received this year resulting in increase in receipts. Change of policy for recognition of prior service resulted in increased employee benefits. Changes to the operating model due to COVID-19 has contributed to reduced supplier expenses. |
Notes to and forming part of the financial statements
FOR THE PERIOD ENDED JUNE 2020
Overview
The National Transport Commission (the NTC) is an independent body established under Commonwealth legislation and funded jointly by the Commonwealth, states and territories. Its principal objectives are to improve transport productivity, efficiency, safety and environmental performance and regulatory efficiency in a uniform or nationally consistent manner. The principal objectives are achieved through the effective implementation (by others) of transport reforms based on nationally consistent policy and regulation developed by the NTC. The NTC is required to work with states, territories and the Commonwealth to develop implementation plans, and monitor implementation, maintain and review agreed reforms. The NTC works in co-operation with transport agencies, industry and other stakeholders and reports to the Transport and Infrastructure Council, a council of transport, infrastructure and roads ministers from all jurisdictions.
The continued existence of the NTC in its present form and with its present programs is dependent on the NTC’s periodic review (in accordance with NTC Act) and on continued funding by the Commonwealth, state and territories.
Basis of Preparation of the Financial Statements
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) for; 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 are in accordance with 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 values are rounded to the nearest dollar unless otherwise specified.
Unless an alternative treatment is specifically required by an accounting standard or the FRR, assets and liabilities are recognised in the statement of financial position when, and only when, it is probable that future economic benefits will flow to the NTC or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executor contracts are not recognised unless required by an accounting standard. Unless alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the Statement of Comprehensive Income when, and only when, the flow, consumption or loss of economic benefits has occurred and can be reliably measured.
New Accounting Standards
Adoption of New Australian Accounting Standard Requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
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 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. |
Application of AASB 15 Revenue from Contracts with Customers / AASB 1058 Income of Not-For-Profit Entities
The NTC 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 is presented as previously reported under the various applicable AASBs and related interpretations.
Under the new income recognition model, the NTC will first determine 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 NTC applies the general AASB 15 principles to determine the appropriate revenue recognition. If these criteria are not met, the NTC shall consider whether AASB 1058 applies.
In relation to AASB 15, the NTC elected to apply the new standard to all new and uncompleted contracts from the date of initial application. The NTC aggregated the effect of all the contract modifications that occur before the date of initial application.
In terms of AASB 1058, the NTC 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. There were no transactions in 2019-20 financial year where the NTC acquires or receives an asset (including cash) in exchange for no and significantly less than fair value consideration.
There was no impact on the NTC on transition.
Application of AASB 16 Leases
The NTC 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 NTC 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 AASB117 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.
On adoption of AASB 16, the NTC recognised right-of-use assets and lease liabilities in relation to leases of office space, which had previously been classified as an operating lease.
The lease liabilities were measured at the present value of the remaining lease payments, discounted using NTC’s incremental borrowing rate as at 1 July 2019. NTC’s incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 2.06%.
The right-of-use office space was measured as an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.
The following table reconciles the Departmental minimum lease commitments disclosed in the entity's 30 June 2019 annual financial statements to the amount of lease liabilities recognised on 1 July 2019:
Minimum operating lease commitment as at 30 June 2019 | 6,056,715 |
Less outgoings | 1,592,401 |
Less incentives | 371,294 |
Less effect of discounting using the incremental borrowing rate | 329,971 |
Lease liabilities recognised at 1 July 2019 | 3,763,049 |
Taxation
The NTC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).
Revenues, expenses and assets are recognised net of GST except:
- where the amount of GST incurred is not recoverable from the Australian Taxation Office, and
- for receivables and payables.
Events After the Reporting Period
There were no events subsequent to the reporting period that have or will materially affect the ongoing structure and financial activities of the NTC
Note 2.1 Expenses
2020 | 2019 | ||
$ | $ | ||
Note 2.1A: Employee benefits | |||
Wages and salaries | 6,488,544 | 5,985,219 | |
Superannuation: | |||
Defined contribution plans | 541,571 | 525,532 | |
Total employee benefits | 7,030,115 | 6,510,751 | |
Accounting Policy Please refer note 4.1 | |||
Note 2.1B: Suppliers | |||
Goods and services supplied or rendered | |||
Consultants | 1,213,172 | 1,215,066 | |
Travel | 200,192 | 369,568 | |
IT services | 338,115 | 235,800 | |
Communications | 139,638 | 130,634 | |
Printing | 10,258 | 9,789 | |
Conferences | 19,118 | 27,149 | |
Meetings | 27,427 | 25,508 | |
Insurance | 13,000 | 13,949 | |
Office supplies | 10,490 | 9.393 | |
Other | 95,844 | 66,537 | |
Total goods and services supplied or rendered | 2,067,255 | 2,103,393 | |
Goods and services supplied in connection with | |||
Provision of goods – external parties | 854,083 | 888,327 | |
Rendering of services – external parties | 1,213,172 | 1,215,066 | |
Total goods and services | 2,067,255 | 2,103,393 | |
Other suppliers | |||
Operating lease rentals1 | 189,759 | 562,011 | |
Auditor’s remuneration | 23,500 | 23,500 | |
Workers’ compensation expenses | 9,900 | 9,296 | |
Total other suppliers | 223,159 | 594,807 | |
Total suppliers | 2,290,414 | 2,698,200 | |
1. NTC 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 disclosure should be read in conjunction with the accompanying notes 2.1C and 3.2A
Note 2.1C: Finance Costs
Interest payments on lease liabilities1 | 69,513 | - | |
Total Finance Costs | 69,513 | - | |
1. NTC 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 disclosure should be read in conjunction with the accompanying notes 2.1B and 3.2A
Note 2.2 Own-source revenue
2020 | 2019 | ||
$ | $ | ||
Note 2.2A: Interest | |||
Interest from deposits | 4,961 | 24,495 | |
Total interest | 4,961 | 24,495 |
Accounting Policy Interest revenue is recognised using the effective interest method. |
Note 2.2B: Revenue from government
Federal Government contribution approved by Transport and Infrastructure Council – related entities | 3,535,000 | 3,476,000 | |||
State and Territory Government contributions approved by Transport and Infrastructure Council – external parties | 6,565,000 | 6,455,000 | |||
Total Revenue from Government | 10,100,000 | 9,931,000 | |||
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 entity 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 this entity) 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. | |||||
Note 3.1 Financial assets
2020 | 2019 | |||||
$ | $ | |||||
Note 3.1A: Cash and cash equivalents | ||||||
Cash on hand or on deposit | 2,505,539 | 2,145,879 | ||||
Total cash and cash equivalents | 2,505,539 | 2,145,879 | ||||
Accounting Policy Cash is recognised at its nominal amount. Cash and cash equivalents include:
| ||||||
Note 3.1B: Trade and other receivables | ||||||
Goods and services receivables in connection with: | ||||||
Trade debtors | - | 547,000 | ||||
Total trade debtors | - | 547,000 | ||||
Other receivables: | ||||||
Interest receivable | 244 | 1,550 | ||||
GST receivable from the Australian Taxation Office | 33,644 | 59,633 | ||||
Total other receivables | 33,888 | 61,183 | ||||
Total goods and services receivables | 33,888 | 608,183 | ||||
Receivables are expected to be recovered in: | ||||||
No more than 12 months | 33,888 | 608,183 | ||||
Total trade and other receivables (net) | 33,888 | 608,183 | ||||
Receivables are aged as follows: | ||||||
Not past due | 33,888 | 608,183 | ||||
Accounting Policy Please refer note 5.1 Standard credit terms for trade receivables is 30 days |
Note 3.2 Non-financial assets
Note 3.2A: Reconciliation of the opening and closing balances of property, plant and equipment
Plant & Equipment | Leasehold Improvements | Buildings | Total | |
$ | $ | $ | $ | |
As at 1 July 2019 | ||||
Gross book value | 1,860,335 | - | - | 1,860,335 |
Accumulated depreciation | (862,166) | - | - | (862,166) |
Total as at 1 July 2019 | 998,169 | - | - | 998,169 |
Recognition of right of use asset on initial application of AASB 16 | 3,763,049 | 3,763,049 | ||
Adjusted total as at 1 July 2019 | 998,169 | - | 3,763,049 | 4,761,218 |
Additions: | ||||
by purchase | 309,393 | 240,618 | - | 550,011 |
Depreciation expense | (315,541) | (2,465) | (426,006) | (744,012) |
Asset write-downs: | ||||
Cost | 574,224 | - | - | 574,224 |
Accumulated depreciation | (574,224) | - | - | (574,224) |
Total as at 30 June 2020 | 992,021 | 238,153 | 3,337,043 | 4,567,217 |
Total as at 30 June 2020 represented by: | ||||
Gross book value | 1,595,505 | 240,618 | 3,763,049 | 5,599,172 |
Accumulated depreciation | (603,484) | (2,465) | (426,006) | (1,031,955) |
Total as at 30 June 2020 | 992,021 | 238,153 | 3,337,043 | 4,567,217 |
Carrying amount of right-of-use assets | 3,337,043 |
Accounting Policy Assets are recorded at cost on acquisition except as stated below. 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. 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, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring. Asset Recognition Threshold Purchases of leasehold improvements, plant and equipment are recognised initially at cost in the balance sheet, except for purchases costing less than $1,000, 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). 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. Lease Right of Use (ROU) Asset Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth leases as separate assts 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 NTC has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognising immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use 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 NTC financial statements. Revaluations Following initial recognition at cost, leasehold improvements, plant and equipment were carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. 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. 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 surplus/deficit. Revaluation decrements for a class of assets are recognised directly in surplus/deficit 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. The nature of NTC’s assets which are plant and equipment, leasehold improvements and Right-of-use assets are not impacted by COVID-19. Depreciation Depreciable leasehold improvements, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the NTC 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: | ||||
2020 | 2019 | |||
Leasehold improvements | Lease term | Not applicable | ||
Plant and equipment | 2 to 9 years | 2 to 9 years | ||
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 NTC were deprived of the asset, its value in use is taken to be its depreciated replacement cost | ||||
Note 3.3 Payables
2020 | 2019 | ||
$ | $ | ||
Note 3.3A: Suppliers | |||
Trade creditors and accruals | 184,556 | 444,708 | |
Total suppliers | 184,556 | 444,708 | |
Supplier payables expected to be settled: | |||
No more than 12 months – external parties | 184,556 | 444,708 | |
Total suppliers | 184,556 | 444,708 | |
Settlement was usually made within 30 days. | |||
Note 3.3B: Other payables | |||
Other | 21,784 | 21,784 | |
Total other payables | 21,784 | 21,784 | |
Other payables expected to be settled | |||
No more than 12 months | 21,784 | 21,784 | |
Total other payables | 21,784 | 21,784 |
Accounting Policy Suppliers and other payables are recognised at amortised cost. Liabilities are recognised to the extent of the goods and services received. |
Note 4.1 Employee provisions
2020 | 2019 | ||
$ | $ | ||
Note 4.1A: Employee provisions | |||
Leave | 1,128,101 | 929,024 | |
Total employee provisions | 1,128,101 | 929,024 | |
Accounting policy Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits due within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability. Other long-term employee benefits are measure 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 the NTC’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 reference to staff members’ years of service at the NTC. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation. Superannuation Contributions are made by the NTC to employee superannuation funds and are charged as expenses when incurred. The liability for superannuation recognised at 30 June 2020 represents outstanding contributions for the final month of the year. |
Note 4.2 Key management personnel remuneration
Key management personnel are those having authority and responsibility for planning, directing and controlling the activities of the National Transport Commission. The National Transport Commission has determined the key management personnel to be the Chief Executive and the Executive Leaders. Key management personnel remuneration is reported in the table below.
Name | Position | Term as Key Management Personnel |
Carolyn Walsh | Chair | Full year |
Nola Bransgrove | Deputy Chair | Full year |
Neil Scales | Commissioner | Full year |
Reece Waldock | Commissioner | Full year |
Steven Kennedy | Commissioner | Part-year – Ended 29/08/2019 |
Gillian Miles | Chief Executive Officer and Commissioner | Full year |
Michael Hopkins | Executive Leader, Strategy and Engagement | Part-year – Appointed 22/10/2019 |
Graham Giannini | Executive Leader, Business and Collaboration | Full year |
Sandra McKay | Executive Leader, Sustainability | Part-year – Appointed 24/02/2020 |
Paul Davies Marcus Burke Mandi Mees Ron Grasso | Executive Leader, Productivity Executive Leader, Future Technologies Executive Leader, Safety Executive Leader, Business and Collaboration | Full year Full year Full year Full year |
Geoff Allan | Executive Leader, Sustainability | Part-year – Ended 07/10/2019 |
2020 | 2019 | ||||||
$ | $ | ||||||
Short-term employee benefits | 1,724,292 | 1,000,176 | |||||
Post-employment benefits | 167,629 | 67,505 | |||||
Other long-term employee benefits | 51,044 | - | |||||
Termination benefits | 71,281 | - | |||||
Total key management personnel remuneration expenses | 2,014,246 | 1,067,681 | |||||
The total number of key management personnel that are included in the above table are 14 (2019 :9) | |||||||
Note 4.3 Related party disclosures
Related party relationships:
The National Transport Commission is an Australian Government controlled entity. Related parties to NTC are the Commissioners, Key Management Personnel including the Executive 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 paid parental leave payments or higher education loans. These transactions have not been separately disclosed in this note.
Other than the transactions with the government sector mentioned above, there were no related party transactions during the year.
Note 5.1 Financial instruments
2020 | 2019 | ||
$ | $ | ||
5.1A Categories of financial instruments | |||
Financial Assets | |||
Loans and receivables | |||
Cash and cash equivalents | 2,505,539 | 2,145,879 | |
Receivables for goods and services | - | 547,000 | |
Carrying amount of financial assets | 2,505,539 | 2,692,879 | |
Financial Liabilities | |||
Suppliers payable | 184,556 | 444,708 | |
Other payables | 21,784 | 21,784 | |
Carrying amount of financial liabilities | 206,340 | 466,492 | |
Accounting Policy Financial assets With the implementation of AASB 9 Financial Instruments for the first time in 2019, the NTC classifies its financial assets measured at amortised cost. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon trade date. Effective interest method The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets at fair value through profit or loss. Receivables Trade and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘receivables’. Receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate. Impairment of Financial Assets Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses. Financial assets held at amortised cost - if there is objective evidence that an impairment loss has been incurred for receivables, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income. Financial Liabilities Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’. Other financial liabilities are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Contingent Liabilities and Contingent Assets Contingent liabilities and contingent assets are not recognised in the balance sheet but are reported in the relevant schedules and 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 recognised when settlement is greater than remote. The NTC has no contingent liabilities, assets or any significant contingencies for the year ended 30 June 2020. (2019: Nil) |
2020 | 2019 | ||
$ | $ | ||
5.1B Net gains or losses on financial assets | |||
Cash and cash equivalents | |||
Interest revenue (Note 2.2A) | 4,961 | 24,495 | |
Net gain from cash and cash equivalents | 4,961 | 24,495 | |
Net gain from financial assets | 4,961 | 24,495 |
5.1C Fair value of financial instruments
Fair | Fair | |
Value | value | |
2020 | 2019 | |
FINANCIAL ASSETS | $ | $ |
Cash and cash equivalents | 2,505,539 | 2,145,879 |
Receivables for goods and services | - | 547,000 |
Total | 2,505,539 | 2,692,879 |
FINANCIAL LIABILITIES | ||
Suppliers payable | 184,556 | 444,708 |
Other payables | 21,784 | 21,784 |
Total | 206,340 | 466,492 |
Visit
https://www.transparency.gov.au/annual-reports/national-transport-commission/reporting-year/2019-2020-18