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Northern Australia Infrastructure Facility Annual Report 2019-20

Financial Performance

Note 1.1 Expenses
	2020	2019
	$'000	$'000
NOTE 1.1 EXPENSES

1.1A Employee Benefits
Wages and salaries	6,375	6,331
Superannuation defined contribution plans	572	555
Leave and other entitlements	393	316
Separation and redundancies	204	-
Total employee benefits	7,544	7,202

Accounting policies for employee related expenses is contained in the Overview section.

1.1B Suppliers
Services provided by Export Finance Australia	760	768
Professional fees	531	534
Consultants	489	206
Travel	422	412
Property costs	292	470
Computer and communication costs	224	127
Contractors	172	139
Advertising and promotional costs	83	11
Insurance	33	28
Credit information	11	4
Other	113	137
Total suppliers	3,130	2,836

1.1C Finance costs
Interest on lease liabilities	1	-
Total finance costs	1	-

NAIF has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated.

	2020	2019
	$'000	$'000
Operating lease payable
Within 1 year	-	120
Between 1 to 5 years	-	90
Total operating lease commitments	-	210

NAIF in its capacity as lessee of a property in Cairns has signed a lease agreement starting on the 25th March 2018 for a term of three years with a 3 year extension option. At this stage NAIF has not made any determination as to whether they will be extending the lease.

Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the lease.

NAIF has brought this lease onto the balance sheet under AASB 16 and has applied the modified retrospective approach and therefore the comparative information has not been restated.

Note 1.2 Revenue
1.2A Own source revenue
Interest	18	56
Sundry	-	-
Total own source revenue	18	56

1.2B Revenue from Government
Department of Industry, Science, Energy and Resources
Corporate Commonwealth entity payment	10,319	9,505
Corporate Commonwealth entity receivable	21	-
Total revenue from Government	10,340	9,505

Funding received or receivable from the Department of Industry, Science, Energy and Resources (DISER), are appropriated to NAIF as a Corporate Commonwealth Entity payment item and is recognised as Revenue from the Government when NAIF gains control of the funding. If the funding is in the nature of an equity injection, such amounts are recognised directly in contributed equity in the year received.

Note 2.1 Financial Assets
	2020	2019
	$'000	$'000
NOTE 2.1 FINANCIAL ASSETS

2.1A Cash
Cash at bank	3,635	5,275
Total cash	3,635	5,275

Cash is held on deposit and is available at call

2.1B Other Receivables
Appropriations receivable	21	-
Goods and services tax	134	33
Total other receivables	155	33

Note 2.2 Non-Financial Assets
2.2A Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment

	Plant and equipment
	$'000
As at 1 July 2019	-
Recognition of right of use asset on initial application of AASB 16	206
Adjusted total as at 1 July 2019	206

Depreciation on right-of-use assets	118
Total as at 30 June 2020	88

Total as at 30 June 2020 represented by
Gross book value	206
Accumulated depreciation	118
Total as at 30 June 2020	88

Carrying amount of right-of-use assets	88

Refer Overview section for accounting policy on property, plant, equipment and leases.

	2020	2019
	$'000	$'000
2.2B Other non-financial assets
Prepayments	12	23
Total other non-financial assets	12	23

Note 2.3 Payables
2.3A Suppliers	2020 $	2019 $
Trade creditors and accruals	1,410	2,668
Total suppliers	1,410	2,668

Supplier payables are recognised at cost to the extent that goods and services have been received irrespective of having been invoiced. Credit terms for goods and services is usually within 30 Days.

2.3B Other Payables
Salaries and wages	75	44
Superannuation	6	3
Total other payables	81	47

The liability for salaries and wages and superannuation recognised represents outstanding amounts for the final fortnight of the financial year.

Note 2.4 Interest Bearing Liabilities
2.4A Leases
Lease liabilities	92	-
Total lease	92	-

NAIF has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated
Total cash outflow for leases for the year ended 30 June 2020 was $120,000
Refer Overview section for accounting policy on leases.

Note 3.1 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. The entity has determined the key management personnel to be the Board members, the Chief Executive Officer, Chief of Staff, General Counsel, the Minister for Northern Australia, and the Portfolio Minister.
The key management personnel remuneration excludes the remuneration and other benefits of the Minister for Northern Australia and the Portfolio Minister. The Minister for Northern Australia and the Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by NAIF. NAIF key management personnel remuneration is:

	2020	2019
	$	$
Short-term employee benefits	1,365,630	1,473,144
Post-employment benefits	131,295	130,498
Other Long-term employment benefits	3,316	23,450
Termination benefits	204,386	-
Total key management personnel remuneration expenses	1,704,627	1,627,092

Total number of key management personnel that are included in the above table are:	11	10

Included in the 11 key management personnel are the former Chief Executive Officer, Chief of Staff, and General Counsel who all departed during the year. The number of key management personnel at 30 June 2020 was 8 comprising the new Chief Executive Officer and 7 Directors.

Short-term employee benefits include salary, annual leave, variable renumeration, other benefits and allowances. Post-employment benefits relates to superannuation. Other long-term benefits principally relates to long service leave.

This table has been based on the requirements stipulated in the Resource Management Guide No. 138 Commonwealth entities Executive Remuneration Reporting Guide for Annual Reports.

The Board and CEO remuneration and other benefits are set by the Remuneration Tribunal. The Board members and CEO are not paid performance awards.

Note: 3.2 RELATED PARTY RELATIONSHIPS

NAIF is an Australian Government controlled entity. Related parties to the entity are the key management personnel as defined above and other Australian Government entities.

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens.

Significant transactions with related parties can include provision of corporate and administration services to NAIF, the provision of insurance, the provision of leases and the purchases of goods and services.

Where a NAIF Board member has an actual, apparent or potential conflict of interest in relation to a potential investment decision, that member does not receive papers or participate in discussions on that transaction. A conflicts of interest register is maintained to record Board members’ disclosed interests. Minutes from Board meetings record recusals as and when they occur.

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

Note 4: Other Information
	2020	2019
	$'000	$'000
NOTE 4: OTHER INFORMATION

Note 4.1: Aggregate assets and liabilities
Assets expected to be recovered in:
No more than 12 months	3,890	5,331
More than 12 months	-	-
Total assets	3,890	5,331

Liabilities expected to be settled in:
No more than 12 months	2,471	3,519
More than 12 months	227	180
Total liabilities	2,698	3,699

Total aggregated assets and liabilities	1,192	1,632

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Northern Australia Infrastructure Facility Annual Report 2019-20

Financial Performance

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