Audited financial statements
Statement of Comprehensive Income
2020 | 2019 | Original Budget 2020 | ||
|---|---|---|---|---|
Notes | $ | $ | $ | |
NET COST OF SERVICES | ||||
Expenses | ||||
Employee benefits | 4,417,788 | 1,686,720 | 4,148,000 | |
Suppliers | 11,258,213 | 9,973,853 | 11,266,000 | |
Depreciation | 244,461 | 46,126 | - | |
Finance costs | 11,918 | - | - | |
Total expenses | 15,932,380 | 11,706,699 | 15,414,000 | |
Own-source income | ||||
Own-source revenue | ||||
Interest revenue | 50,365 | 87,911 | - | |
Total own-source revenue | 50,365 | 87,911 | - | |
Net cost of services | (15,882,015) | (11,618,788) | (15,414,000) | |
Revenue from government | 15,477,000 | 12,555,000 | 15,414,000 | |
Total comprehensive income | (405,015) | 936,212 | - |
The above statement should be read in conjunction with the accompanying notes.
Budget variance explanations are outlined in Note 5.3: Budget Variances
Statement of Financial Position
2020 | 2019 | Original Budget 2020 | ||
|---|---|---|---|---|
Notes | $ | $ | $ | |
ASSETS | ||||
Financial assets | ||||
Cash and cash equivalents | 10,488,646 | 8,465,177 | 7,261,000 | |
Trade and other receivables | 349 | 200,902 | 7,000 | |
Total financial assets | 10,488,995 | 8,666,079 | 7,268,000 | |
Non-financial assets1 | ||||
Land and buildings | 680,351 | - | - | |
Property, plant and equipment | 346,873 | 287,797 | - | |
Other non-financial assets | 70,503 | 86,071 | - | |
Total non-financial assets | 1,097,727 | 373,868 | - | |
Total assets | 11,586,722 | 9,039,947 | 7,268,000 | |
LIABILITIES | ||||
Payables | ||||
Supplier payables | 2,787,906 | 954,529 | 335,000 | |
Other payables | 220,197 | 113,636 | 50,000 | |
Total payables | 3,008,103 | 1,068,165 | 385,000 | |
Provisions | ||||
Employee provisions | 549,857 | 184,424 | 93,000 | |
Total provisions | 549,857 | 184,424 | 93,000 | |
Interest bearing liabilities | ||||
Leases | 646,419 | - | - | |
Total provisions | 646,419 | - | - | |
Total liabilities | 4,204,379 | 1,252,589 | 478,000 | |
Net assets | 7,382,343 | 7,787,358 | 6,790,000 | |
EQUITY | ||||
Retained earnings | 7,382,343 | 7,787,358 | 6,790,000 | |
Total equity | 7,382,343 | 7,787,358 | 6,790,000 |
The above statement should be read in conjunction with the accompanying notes.
1. Right-of-use assets are included in the Land and Buildings line item.
Budget variance analysis are outlined in Note 5.3: Budget Variances
Statement of Changes in Equity
2020 | 2019 | Original Budget 2020 | |
$ | $ | $ | |
RETAINED EARNINGS | |||
Opening balance | |||
Balance carried forward from previous period | 7,787,358 | 6,878,347 | 6,790,000 |
Adjustment for errors | (27,201) | - | |
Adjusted opening balance | 7,787,358 | 6,851,146 | 6,790,000 |
Comprehensive income | |||
Surplus for the period | (405,015) | 936,212 | - |
Total comprehensive income | (405,015) | 936,212 | - |
Closing balance as at 30 June | 7,382,343 | 7,787,358 | 6,790,000 |
TOTAL EQUITY | |||
Opening balance | |||
Balance carried forward from previous period | 7,787,358 | 6,878,347 | - |
Adjustment for errors | - | (27,201) | |
Adjusted opening balance | 7,787,358 | 6,851,146 | - |
Closing balance as at 30 June | 7,382,343 | 7,787,358 | - |
The above statement should be read in conjunction with the accompanying notes.
Budget variance analysis are outlined in Note 5.3: Budget Variances
Cash Flow Statement
2020 | 2019 | Original Budget 2020 | ||
Notes | $ | $ | $ | |
OPERATING ACTIVITIES | ||||
Cash received | ||||
Receipts from Government | 15,477,000 | 12,555,000 | 15,414,000 | |
Funds received from DAWE for loans | 396,000,529 | 27,568,502 | - | |
Interest on loans | 1,541,498 | 82,537 | - | |
Interest on cash held | 50,384 | 89,746 | - | |
Principal returned on loans | 2,476,312 | - | - | |
GST received from the ATO | 482,277 | 225,692 | - | |
Other | 200,902 | - | - | |
Total cash received | 416,228,902 | 40,521,477 | 15,414,000 | |
Cash used | ||||
Employees | 3,901,463 | 1,491,310 | 4,083,000 | |
Suppliers | 9,766,870 | 9,597,063 | 11,250,000 | |
Loans and advances made | 396,000,529 | 27,568,500 | - | |
Interest returned to DAWE | 1,541,498 | 82,537 | - | |
Principal returned to DAWE on loans | 2,476,312 | - | - | |
Interest payments on lease liabilities | 11,918 | - | - | |
GST paid | 168,519 | - | - | |
Other | 856 | - | - | |
Total cash used | 413,867,964 | 38,739,410 | 15,333,000 | |
Net cash flows from operating activities | 2,360,938 | 1,782,067 | 81,000 | |
INVESTING ACTIVITIES | ||||
Cash used | ||||
Purchase of property, plant and equipment | 152,349 | 333,923 | - | |
Total cash used | 152,349 | 333,923 | - | |
Net cash flows used by investing activities | (152,349) | (333,923) | - | |
FINANCING ACTIVITIES | ||||
Cash used | ||||
Principal payments of lease liabilities | 185,120 | - | - | |
Total cash used | 185,120 | - | - | |
Net cash flows from / (used by) financing activities | (185,120) | - | - | |
Net increase in cash and cash equivalents held | 2,023,469 | 1,448,144 | 81,000 | |
Cash and cash equivalents at the beginning of the reporting period | 8,465,177 | 7,017,033 | 7,180,000 | |
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD | 10,488,646 | 8,465,177 | 7,261,000 |
Accounting Policy
Loan Funding
The RIC receives cash flows from the Department of Agriculture, Water and the Environment (DAWE) to make loans and advances to farm businesses and farm related small businesses, the RIC also receives interest and principal repayments from farmers, these payments are returned to DAWE. All interest generated against funds received from the DAWE for Loans is returned to DAWE.
In adopting the principles of AASB 9 - Financial Instruments the entity that reports the loans is the entity who bears the substantive risks and rewards of the loans. According to the criteria defined in the standard it is clear that DAWE bears the risks and rewards of the loans and that the arrangement between the RIC and DAWE is considered a pass through arrangement.
The loans provided by the RIC, (including all interest and principal transactions) are accounted for in the administered accounts of DAWE.
The RIC does not share the risk of the loans with DAWE so it does not need to recognise and subsequently derecognise the loan transactions as they pass through, as they occur at approximately the same time resulting in no impact on RIC’s balance sheet or statement of comprehensive income.
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https://www.transparency.gov.au/annual-reports/regional-investment-corporation/reporting-year/2019-20-6