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Audited financial statements

Statement of Comprehensive Income

2020

2019

Original Budget 2020

Notes

$

$

$

NET COST OF SERVICES

Expenses

Employee benefits

1.1A

4,417,788

1,686,720

4,148,000

Suppliers

1.1B

11,258,213

9,973,853

11,266,000

Depreciation

2.2A

244,461

46,126

-

Finance costs

1.1C

11,918

-

-

Total expenses

15,932,380

11,706,699

15,414,000

Own-source income

Own-source revenue

Interest revenue

1.2A

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

1.2B

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

2.1A

10,488,646

8,465,177

7,261,000

Trade and other receivables

2.1B

349

200,902

7,000

Total financial assets

10,488,995

8,666,079

7,268,000

Non-financial assets1

Land and buildings

2.2A

680,351

-

-

Property, plant and equipment

2.2A

346,873

287,797

-

Other non-financial assets

2.2B

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

2.3A

2,787,906

954,529

335,000

Other payables

2.3B

220,197

113,636

50,000

Total payables

3,008,103

1,068,165

385,000

Provisions

Employee provisions

3.1A

549,857

184,424

93,000

Total provisions

549,857

184,424

93,000

Interest bearing liabilities

Leases

2.4A

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

2.1A

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.