Overview

Objectives of the NDIS Quality and Safeguards Commission

The NDIS Quality and Safeguards Commission (the entity) is an Australian Government controlled entity. It is a not-for-profit entity. The objective of the entity is to promote the delivery of quality supports and services to people with disability under the National Disability Insurance Scheme and other prescribed supports and services, including through nationally consistent and responsive regulation, policy development, advice and education.

The basis of preparation

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

The financial statements have been prepared in accordance with:

1. Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 (FRR); and
2. 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 which are recorded 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 thousand dollars, unless otherwise specified.

New accounting standards

All new/revised/amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period have been applied.

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 became effective 1 July 2019.

In relation to AASB 15, the entity does not receive revenue from contracts with customers.

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

AASB 15 and AASB 2016-8 and AASB 1058 did not have a material effect on the entity’s financial statements on initial application.

Application of AASB 16 Leases

The entity 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 entity 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 entity 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 assessment on whether leases are onerous as opposed to preparing an impairment review under AASB136 Impairment of Assets as at the date of initial application; and
• Applied the exemption not to recognise the right-of-use assets and liabilities for leases with less than 12 months of lease term remaining as of the initial date of initial application.

As a lessee, the entity previously classified leases as operating or finance leases based on its assessments of whether the lease transferred substantially all of the risked and rewards of ownership. Under AASB 16, the entity recognises right-of-use assets and lease liabilities of most leases. However, the entity 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 entity recognised right-of-use assets and lease liabilities in relation to leases of buildings, 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 Entity’s incremental borrowing rate as at 1 July 2019. The Entity’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 1.08%.

The right-of-use assets for buildings were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments.

Impact on transition

On transition to AASB 16, the entity recognised additional right-of-use assets and additional lease liabilities, recognising the adjustment to the lease incentive and straight lining provisions in retained earnings. The impact on transition is summarised below:

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:

Comparative Figures Amendment for the 2018-19 year

The NDIS Commission commenced a lease for its site in Queensland on 1 May 2019, which entitled the NDIS Commission to claim reimbursement for the completed fit out of the office. It was determined in the process of adopting AASB 16 that this fit-out lease incentive should have been recognised in the 2018-19 financial statements.

The correct treatment would have been to recognise a receivable and lease incentive payable at 30 June 2019. The restatement did not have a material financial impact on the NDIS Commission’s operating result or statement of comprehensive income.

The NDIS Commission has restated the amounts for 2018-19 year in the departmental statement of financial position. Restatements for the prior year are detailed in the table below.

Taxation

The entity is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Reporting of administered activities

Administered revenues, 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

There are no known events occurring after the reporting period that could have a material impact on the financial statements.

1. Financial Performance

This section analyses the financial performance of the NDIS Commission for the period ended 30 June 2020.

1.1 Expenses

Accounting Policy

Accounting policies for employee related expenses are contained in Note 6, People and Relationships.

Settlement is usually made for suppliers within 20 days (2019: 30 days).

1. The Entity 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 1.1C, 3.2A, 3.3B and 3.4A.

2. A prior period adjustment increasing the Operating lease rentals by $0.3 million whilst reducing Property expenses by $0.3 million has been disclosed for comparative purposes. This is due to 3 months operating lease rentals being recognised under property expenses. The net impact to total supplier expenses is nil.

Accounting Policy

Short - term leases and leases of low-value assets

The Entity has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less. The entity had one short term lease that was the temporary location for the office in Brisbane whilst the permanent office location was fitted out.

Accounting Policy

All borrowing costs are expensed as incurred.

1.2 Own-Source Revenue and Gains

The entity received $5 million from Department of Social Services as financial assistance and a rent abatement for the Penrith property due to the office not being able to function as a result of flooding ($0.022 million).

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised in 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.

Other Revenue

Other revenue is recognised in revenue when, and only when, a fair value can be reliably determined.

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.

2. Income and Expenses Administered on Behalf of Government

This section analyses the activities that the NDIS Commission 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.

2.1 Administered – Expenses

Grant Commitments

Commitments for grant payments including GST are as follows

Accounting Policy

The entity administers a number of grants on behalf of the Government. 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.

2.2 Administered - Income

3. Financial Position

This sections analyses the NDIS Commission's assets used to conduct its operations and the operating liabilities incurred as a results. Employee related information is disclosed in Note 6, People and Relationships.

3.1 Financial Assets

Accounting Policy

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

During the 2019-20 year, the credit terms for goods and services was within 30 days (2018-19: 30 days).

1. Appropriations receivable contain an amount of $3.5 million that has been quarantined by Department of Finance for administrative purposes on 2 July 2020.

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.

3.2 Non-Financial Assets

During the 2019-20 year, there were no indicators of impairment found for property, plant and equipment.

It is not anticipated that any property, plant and equipment will be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

There were no revaluations of non-financial assets during the 2019-20 year.

Revaluations will be conducted in accordance with the revaluation policy stated in the Accounting Policy below.

Contractual commitments inclusive of GST for the acquisition of leasehold improvements

The NDIS Quality and Safeguards Commission has contractual commitments for the acquisition of leasehold improvements in its new office accommodation in Perth. The leasehold improvement commitment as at 30 June 2020 was $0.032 million (2019: $1.880 million).

Accounting Policy

Assets are recorded at cost of 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 property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, 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. This is particularly relevant to ‘make good’ provisions in office accommodation leases taken up by the entity where there exists an obligation to restore the office to its original condition. These costs are included in the value of the entity's leasehold improvements with a corresponding provision for the ‘make good’ recognised. Leasehold improvement assets have a recognition threshold of $10,000.

Leased 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 by Commonwealth lessees 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 entity 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 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 Commonwealth agency, GGS and Whole of Government financial statements.

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding right-of-use assets) are 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 did 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 reversed a previous revaluation decrement of the same asset class that was 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 entity 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 future reporting periods, as appropriate.

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

The depreciation rates for right-of-use assets are based on the commencement date to the earlier of the end of the useful life of the right-or-use asset or the end of the 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 of disposal 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 entity 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 future economic benefits are expected from its use or disposal.

Accounting Policy

Other non-financial assets are measured at fair value

3.3 Payables

Settlement is usually made for suppliers within 20 days (2018-19: 30 days).

1. The Entity 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.

Accounting Policy

Financial liabilities are initially measured at fair value, net of transaction costs. These financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

The effective interest rate method is a method of calculating the amortised cost of a financial liability and of allocating the interest expense over the relevant period. The effective interest is the rate that discounts the estimated future cash payments through the expected life of the financial liability, or, where appropriate, a short period.

Supply and other payables are recognised at amortised costs. Liabilities are recognised to the extent that the goods or services have been received.

3.4 Interest Bearing Liabilities

1. The Entity 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.

Total cash outflow for leases for the year ended 30 June 2020 was $2.5 million.

Accounting Policy

Refer Overview section for accounting policy on leases.

3.5 Provisions

Accounting Judgement and Estimates

'Make good' provision

The fair value of ‘make good’ for leasehold improvements is based on estimated costs per square metre on a site by site basis and is included as a provision for ‘make good’. The value of the provision for each property will depend on the rate and assessed cost of the ‘make good’ obligation applied to the premises in the lease. The NDIS Quality and Safeguards Commission’s management have determined that not all properties have a ‘make good’ obligation.

4. Assets and Liabilities Administered on Behalf of Government

This section analyses assets used to conduct operations and the operating liabilities incurred as a result that NDIS Commission 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

4.2 Administered – Payables

Settlement is usually made for suppliers within 20 days (2018-19: 30 days).

5.1 Appropriations

1. The departmental appropriation contains an amount of $3.5 million that has been quarantined by Department of Finance for administrative purposes on 2 July 2020.

2. The departmental appropriation section 74 receipts are largely receipts for transfer from Department of Social Services ($5 million), a refund from Comcover and receipt of employee leave transfers.

3. The departmental appropriation section 75 transfer includes an amount of $2.51 million in the prior year that relates to the transfer of assets and liabilities on the establishment of the NDIS Quality and Safeguards Commission from Department of Social Services.

4. Appropriations applied were higher than the original budget estimate due to the use of prior year appropriations and approval to incur a loss.

5. The Department of Social Services draws down money from the Consolidated Revenue Fund (CRF) in order to make payments on behalf of the NDIS Quality and Safeguards Commission under a shared service arrangement.

5.2 Net Cash Appropriations Arrangements

The inclusion of depreciation/amortisation expenses related to right-of-use leased assets and the lease liability principle repayment amount reflects the cash impact on implementation of AASB 16 Leases, it does not directly reflect a change in appropriation arrangements.

6.1 Employee Provisions

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.

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 the entity’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 using the shorthand method (as per the Commonwealth Entities Financial Statements Guide) and the Standard Parameters for use in Financial Statements. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

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 for the Australian Government. 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 the 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 represents outstanding contributions.

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 director (whether executive or otherwise) of that entity. They entity has determined the key management personnel to be the members of the Executive Leadership Team (ELT). These included the Accountable Authority (Commissioner), Registrar, Complaints Commissioner and Chief Operating Officer.

Key management personnel remuneration is reported in the table below.

The total number of key management personnel that are included in the above table are seven (2019: five).

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio and Cabinet Ministers. The Portfolio and Cabinet Ministers’ remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the entity.

6.3 Related Party Disclosures

Related party relationships:

The entity is an Australian Government controlled entity. Related parties to this entity are key management personnel including the Portfolio and Cabinet Ministers.

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. These transactions have not been separately disclosed in this note.

The following transactions with related entities occurred during the financial year:

• The entity received IT services and business services delivered by Department of Social Services amounting to $10.1 million during the 2019-20 year (2019: $4.271 million);
• The entity received $5 million in financial assistance in June 2020 from Department of Social Services to assist the entity with renewing contractors required for COVID-19 until such time as the COVID-19 funding was received in 2020-21.

• In the prior year, the entity received $5.1 million of assets and liabilities from the Department of Social Services on the establishment of the NDIS Quality and Safeguards Commission.

Giving consideration to relationships with related entities, and transactions entered into during 2019-20 by the entity, it has been determined there are no related party transactions to be separately disclosed.

7.1 Contingent Assets and Liabilities

As at 30 June 2020, the NDIS Quality and Safeguards Commission did not have any quantifiable contingent assets or contingent liabilities (2019: nil).

Accounting Policy

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.

7.2 Financial Instruments

An adjustment to the prior period has been made to remove employee benefits receivable of $0.3 million for comparative purposes.

Accounting Policy

Financial assets

With the implementation of AASB 9 Financial Instruments for the first time in 2019, the entity classifies its financial assets 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.

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.

Impairment of financial assets

Financial assets are assessed for impairment at the end of each reporting period based on expected credit losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased or an amount equal to 12-month expected credit losses if risk not increased.

Financial liabilities

Financial liabilities are classified as other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial liabilities at amortised cost

Financial liabilities, including borrowings, 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 interest 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).

8.1 Aggregate Assets and Liabilities

8.2 Restructuring

Net assets recognised

The entity received $5.1 million of assets and liabilities from the Department of Social Services on the establishment of the NDIS Quality and Safeguards Commission on 1 July 2018.

Note 8.3A: Departmental Major Budget Variances for 2020

General Commentary

The original budget was prepared before the 2018-19 final outcome was known. As a consequence, the opening balance of the statement of financial position was estimated and in some cases variances between the 2019-20 final outcome and budget estimates can be attributed to an unanticipated movement in the prior year balances.

Major variances are those greater than 10% of the original budget. Variances below this threshold are not included unless considered significant by their nature.

Statement of Comprehensive Income

The net loss for the year was $0.8 million higher than the original budget estimate.

Total Expenses were higher than original budget by $5.8 million.

The amount paid to Department of Social Services was higher than original budget by $10 million to further improve the Commission Operating System (COS) and the shared financial services arrangements.

This was offset by Employee Benefits that were lower than original budget by $1.7 million due to the delayed recruitment of staff for the Perth office, which was deferred until 1 December 2020.

It was also offset by Suppliers being lower by $6.6 million due to a deliberate decision by management to divert funds to the Commission Operating System and the delay in the opening of the Perth office that created some additional savings in office supplies and other activities. To align to the standard, AASB 16, rent was reported against the lease liability.

Depreciation was increased by $3.5 million. This was largely the impact of AASB 16 which increased depreciation by $2.5 million in relation to the right of use assets. Depreciation was increased by a further $1 million due to increased leasehold improvements due to the fit-outs in Brisbane, Canberra, Perth and Penrith.

Revenue from Government was in line with original budget estimate but $3.5 million is under administrative quarantine by the Department of Finance.

Own Source Revenue was higher than original budget by $5.1 million due to $5 million from Department of Social Services to ensure the NDIS Commission could renew a substantial number of contractors at year end.

Statement of Financial Position

Appropriations receivable are higher by $13.6 million. This is mainly due to $5 million financial assistance provided from the Department of Social Services, $3.5 million that is under administrative quarantine by the Department of Finance, the $3.5 million increase in depreciation and the remainder of the savings are from the delay in the opening of the Perth office.

Leasehold improvements were higher than original budget by $6.3 million due to the fit-outs of the state and territory offices and the national office.

Buildings were higher than original budget by $17 million which was due to the impact of AASB 16 and recognition of the right-of use assets.

Plant and Equipment was higher than original budget by $1.3 million due to the equipment required for the increased number of offices from 2 to 7.

Total payables were higher than original budget by $0.7 million due to higher number of staff which increased wages payable and superannuation payable.

Total provisions were higher than original budget by $4.8 million due to the higher number of staff increasing the employee provisions and the make good provision being higher due to the increase in offices from 2 to 7.

Leases were higher than original budget by $17.2 million due to the impact of AASB 16 and the recognition of lease liabilities.

Statement of Changes in Equity

Equity is higher than original budget by $15.2 million. This is due to a difference in the opening balance due to the prior year of $10.3 million, the adjustment to equity due to AASB 16 of $2.2 million and provision of an additional equity injection of $3.5 million, reduced by the variation to the current year loss of $0.8 million.

Cash Flow Statement

Operating cash received is $6.6 higher than original budget due to section 74 receipts of $5.9 million that included the $5 million from the Department of Social Services and GST receipts of $1.9 million offset by slightly lower appropriations of $1.2 million.

Operating cash used is higher than original budget by $4.5 million due largely to the transfer of the section 74 receipts to the OPA. This was netted off by savings in employee benefits paid due to the delay in the opening of the Perth office and the delay in recruiting staff.

Investing cash was higher due to the increased the expenditure on leasehold improvements by $3.1 million.

Financing cash used was higher due to recognition of the principal payments of $2.3 million of the Lease Liability as required by AASB 16.

Financing cash is higher due to the drawdown of additional approved equity injections of $3.1million.

Note 8.3B: Administered Major Budget Variances for 2020

Statement of Comprehensive Income

The Administered Statement of Comprehensive Income shows slightly higher expenditure on grants of $0.4 million and $0.3 million in suppliers. Additional approved funding allowed for additional strategy and engagement activities to take place and for the payment of additional grants to assist providers.

Statement of Financial Position

The budget assumed that there would be grants payable but all grants had been paid in full by the end of the year.

Administered Reconciliation Schedule

Net assets are positive due to GST receivable from the ATO.

Cash Flow Statement

Cash received is higher due to GST from ATO of $0.7 million.

Cash used is higher by $1.3 million due to the increased supplier payments and the increased number of grants.

Appropriations drawn are higher due to the increased supplier payments and the increased number of grants which was possible due to the increase in approved funding of $1.3 million.

Cash to the official public account is line with GST received from ATO of $0.7 million