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Notes to and forming part of the Financial Statements

Overview

Entity Overview

The North Queensland Water Infrastructure Authority (NQWIA) was established on 12 March 2019, as an Executive Agency under Section 65 of the Public Service Act 1999, to provide strategic planning and coordination of Commonwealth resources to implement water projects in Northern Queensland.

NQWIA is an Australian Government controlled not-for-profit entity.

The continued existence of NQWIA in its present form and with its present programmes is dependent on Government policy and on continuing funding by Parliament for NOWA's administration and programmes.

In June 2020, the Authority engaged GHD Australia to undertake investigation of potential irrigation areas in north and western Queensland. Total contract value is $3.2 million (including GST). with funding to be appropriated in the 2020-21 Budget. The first milestone payment of $0.3 million is included in supplier expenses in the Financial Statements. The project is due for completion in December 2021

The Basic of Preparation of 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 (PGPA Act). The financial statements have been prepared accordance with:

a) Public Governance. Performance and Accountability (Financial Reporting) Rule 2015 (FRR) and

b) 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 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.

Financial Instruments and Fair value

NQWIA holds simple financial statements that are limited to:

  • financial assets that include cash on hand (Note 2.1A) and receivables for employee transfers refer Note 2.1B).
  • financial liabilities that include trade creditors and accruals (refer Note 2.2A).

All financial Instruments are measured at amortised cost. There were no gains or losses reported with respects to financial instruments.

NQWIA holds simple financial instruments that are limited to:

  • financial assets that include cash on hand (Note 2, 1A) and receivables for employee transfers refer Note 2.18)
  • financial liabilities that include trade creditors and accruals (refer Note 2.2A).All financial instruments are measured at amortised cost. There were no gains. or losses reported with respect to financial instruments.

NQWIA did not report any assets or liabilities measured at fair value in 2019-20 (2019: Nil)

New Australian Accounting Standards

The following new standards were issued prior to the signing of the statement by the Chief Executive Officer and Chief Financial Officer, were applicable to the current reporting period, and had no material effect on NQWIA’s financial statements.

Standard/Interpretation

Nature of change In accounting policy, transitional provisions. and adjustment to Financial statements

AASB 15 Revenue from Contracts with Customers

and

AASB 1058 Income of Not-for -Profit Entities

These standards relate to the recognition of revenue by NQWIA.

AASB 15 and AASB 1058 apply to reporting periods commencing on or after 1 January

2019 for not-for-profit entities and replaced the requirements of AASB 118 Revenue and AASB 1004 Contributions. NQWIA adopted AASB 15 and AASB 1058 from 1 July 2019.

There were no material changes to the NQWIA financial statements as a result of adoption of the new revenue standards.

AASB 16 - Leases

AASB 16 applies to reporting periods commencing on or after 1 January 2019 and requires recognition of a right-of-use asset and lease liability where a specific underlying leased asset can be identified.

An assessment was undertaken that concluded that agreements with the Department of Infrastructure, Transport, Regional Development and Communications (DITCRD) for office accommodation, computer equipment and other office equipment do not represent leases and are therefore are accounted for as supplier expenses. No material changes were made to the NQWIA financial statements as a result of adoption of the new leases standard.

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

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

Events After the Reporting Period
There are no known events occurring after the reporting period that would have a material impact on the financial statements.