TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements for the period ended 30 June 2015
Note 19: Budgetary Report and Explanations of Major Variances
Note 19A: Departmental Budgetary Reports
Statement of Comprehensive Income
for the period ended 30 June 2015
Actual | Budget Estimate | ||
Original1 | Variance2 | ||
2015 $'000 |
2015 $'000 |
2015 $'000 |
|
NET COST OF SERVICES | |||
Expenses | |||
Employee benefits | 16,712 | 15,545 | 1,167 |
Supplier | 18,357 | 21,524 | (3,167) |
Grants | 29,350 | 24,989 | 4,361 |
Depreciation | 1,325 | 900 | 425 |
Finance costs | 91 | 150 | (59) |
Losses from Asset Sales | 70 | - | 70 |
Total expenses | 65,905 | 63,108 | 2,797 |
LESS: | |||
Own-Source Income | |||
Own-source revenue | |||
Sale of goods and rendering of services | 460 | 240 | 220 |
Interest | 1,742 | 1,462 | 280 |
Other revenue | 15,774 | 13,247 | 2,527 |
Total own-source revenue | 17,976 | 14,949 | 3,027 |
Gains | |||
Reversals of previous asset write-downs and impairments | 248 | - | 248 |
Total gains | 248 | - | 248 |
Total own-source income | 18,224 | 14,949 | 3,275 |
Net cost of services | 47,681 | 48,159 | (478) |
Revenue from Government | 48,159 | 48,159 | - |
Surplus attributable to the Australian Government | 478 | - | 478 |
OTHER COMPREHENSIVE INCOME | |||
Items not subject to subsequent reclassification to profit or loss | |||
Changes in asset revaluation surplus | 978 | - | 978 |
Total other comprehensive income | 978 | - | 978 |
Total comprehensive income attributable to the Australian Government | 1,456 | - | 1,456 |
The above statement should be read in conjunction with the accompanying notes.
1. The entity's original budgeted financial statement that was first presented to parliament in respest of the reporting period (i.e from the entity's 2014 - 15 Portfolio Budget Statements (PBS)).
2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided futher at Note 19B.
TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements
STATEMENT OF FINANCIAL POSITION
as at 30 June 2015
Statement of Financial Position
as at 30 June 2015
Actual | Budget Estimate | ||
Original1 | Variance2 | ||
2015 $'000 |
2015 $'000 |
2015 $'000 |
|
ASSETS | |||
Financial assets | |||
Cash and cash equivalents | 2,790 | 4,611 | (1,821) |
Trade and other receivables | 7,641 | 8,055 | (414) |
Other investments | 33,300 | 22,200 | 11,100 |
Total financial assets | 43,731 | 34,866 | 8,865 |
Non-financial assets | |||
Land and buildings | 35,524 | 43,326 | (7,802) |
Plant and equipment | 1,789 | 1,955 | (166) |
Total non-financial assets | 37,313 | 45,281 | (7,968) |
Total assets | 81,044 | 80,147 | 897 |
LIABILITIES | |||
Payables | |||
Suppliers | 3,263 | 1,314 | 1,949 |
Grants | 386 | 1,828 | (1,442) |
Other payables | 436 | 4,177 | (3,741) |
Total payables | 4,085 | 7,319 | (3,234) |
Provisions | |||
Employee provisions | 3,147 | 3,253 | (106) |
Total provisions | 3,147 | 3,253 | (106) |
Total liabilities | 7,232 | 10,572 | (3,340) |
Net assets | 73,812 | 69,575 | 4,237 |
EQUITY | |||
Contributed equity | 32 | 32 | - |
Reserves | 14,840 | 13,678 | 1,162 |
Retained surplus | 58,940 | 55,865 | 3,075 |
Total equity | 73,812 | 69,575 | 4,237 |
The above statement should be read in conjunction with the accompanying notes.
1. The entity's original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e from the entity's 2014 - 15 Portfolio Budget Statements (PBS)).
2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided futher at Note 19B.
TORRES STRAIT REGIONAL AUTHORITY
STATEMENT of CHANGES in EQUITY
for the period ended 30 June 2015
Statement of Changes in Equity
as at 30 June 2015
Retained earnings | Asset revaluation surplus | Contributed equity/capital | Total equity | |||||||||
Actual | Budget Estimate | Actual | Budget Estimate | Actual | Budget Estimate | Actual | Budget Estimate | |||||
Original1 | Variance2 | Original1 | Variance2 | Original1 | Variance2 | Original1 | Variance2 | |||||
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
2015 $'000 |
|
Opening balance | ||||||||||||
Balance carried forward from previous period | 58,462 | 55,865 | 2,597 | 13,862 | 13,678 | 184 | 32 | 32 | 72,356 | 69,575 | 2,781 | |
Adjusted opening balance | 58,462 | 55,865 | 2,597 | 13,862 | 13,678 | 184 | 32 | 32 | - | 72,356 | 69,575 | 2,781 |
Comprehensive income | ||||||||||||
Surplus for the period | 478 | - | 478 | - | - | - | - | - | - | 478 | - | 478 |
Other comprehensive income | - | - | - | 978 | - | 978 | - | - | - | 978 | - | 978 |
Total comprehensive income | 478 | - | 478 | 978 | - | 978 | - | - | - | 1,456 | - | 1,456 |
Closing Balance attributable to the Australian Government | 58,940 | 55,865 | 3,075 | 14,840 | 13,678 | 1,162 | 32 | 32 | - | 73,812 | 69,575 | 4,237 |
The above statement should be read in conjunction with the accompanying notes.
1. The entity's original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e from the entity's 2014 - 15 Portfolio Budget Statements (PBS)).
2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided futher at Note 19B.
TORRES STRAIT REGIONAL AUTHORITY
CASH FLOW STATEMENT
for the period ended 30 June 2015
Cash Flow Statement
as at 30 June 2015
Actual | Budget Estimate | ||
Original1 | Variance2 | ||
2015 $'000 |
2015 $'000 |
2015 $'000 |
|
OPERATING ACTIVITIES | |||
Cash received | |||
Receipts from Government | 48,159 | 48,159 | - |
Sales of goods and rendering of services | 15,850 | 13,487 | 2,363 |
Interest | 1,673 | 1,312 | 361 |
Net GST received | 2,638 | - | 2,638 |
Total cash received | 68,320 | 62,958 | 5,362 |
Cash used | |||
Employees | 16,570 | 15,545 | 1,025 |
Suppliers | 21,276 | 21,524 | (248) |
Loan payments | 65 | - | 65 |
Grants | 31,059 | 25,139 | 5,920 |
Total cash used | 68,970 | 62,208 | 6,762 |
Net cash from/(used by) operating activities | (650) | 750 | (1,400) |
INVESTING ACTIVITIES | |||
Cash received | |||
Loan receipts | 1,270 | 600 | 670 |
Investments | 4,094 | 7,600 | (3,506) |
Total cash received | 5,364 | 8,200 | (2,836) |
Cash used | |||
Loan payments | 724 | 450 | 274 |
Purchase of property, plant and equipment | 3,911 | 10,600 | (6,689) |
Total cash used | 4,635 | 11,050 | (6,415) |
Net cash from/(used by) investing activities | 729 | (2,850) | 3,579 |
Net increase/(decrease) in cash held | 79 | (2,100) | 2,179 |
Cash and cash equivalents at the beginning of the reporting period | 2,711 | 6,711 | (4,000) |
Cash and cash equivalents at the end of the reporting period | 2,790 | 4,611 | (1,821) |
The above statement should be read in conjunction with the accompanying notes.
1. The entity's original budgeted financial statement that was first presented to parliament in respect of the reporting period (i.e from the entity's 2014 - 15 Portfolio Budget Statements (PBS)).
2. Between the actual and original budgeted amounts for 2015. Explanations of major variances are provided futher at Note 19B.
TORRES STRAIT REGIONAL AUTHORITY
Notes to and forming part of the financial statements for the period ended 30 June 2015
Note 19B: Budgetary Reports and Explanations of Major Variances
Explanation of Major Variances | Affected line items (and Statement) |
An unbudgeted shortfall in superannuation obligations was identified as part of a review of the payroll system. | Employee benefits (Statement of Comprehensive Income) |
During the year, the TSRA was funded S1.3M through an Indigenous Advancement Strategy grant from the Department of Prime Minister and Cabinet in order to purchase the only non-indigenous commercial Beche-de-Mer fishing license existing in the Torres Strait region. The TSRA contributed an additional $200,000 to this initiative. Beche-de-Mer is one of many commercial fisheries in the Torres Strait region. The purchase of the Beche-de-mer license by the TSRA for the benefit of Torres Strait Islander and Aboriginal people of the Torres Strait is part of an ongoing process of securing 100% ownership of all Torres Strait commercial fisheries for the sole benefit of the Torres Strait Islander and Aboriginal people of the region. This funding was not included in the original budget position. | Suppliers and Grants (Statement of Comprehensive Income) |
The remaining variance from budget of S4.6M was transferred to grants and paid to various organisations to deliver indigenous employment and training programs in the Torres Strait and Northern Peninsula communities. | |
The budget reflects the depreciation funding received as part of the annual budget and is substantially less than actual depreciation expense. | Depreciation (Statement of Comprehensive Income) |
The budget only includes funding agreements that had been signed at the time the budget was prepared. Additional funding was raised after the budget was prepared. Because the TSRA is the leading Commonwealth representative body for Torres Strait Islander and Aboriginal people living in the Torres Strait, they are often approached by other government agencies to deliver programs in the Torres Strait on an adhoc basis throughout the year. In recent years it has become common practice for the TSRA to enter into additional funding agreements with other agencies after the date that the budget is formally finalised. | Other revenue (Statement of Comprehensive Income) |
The TSRA has undertaken a major development for the provision of staff accomodation on Thursday Island. Delays in the preliminary phases of construction, specifically in obtaining various administrative approvals, has reduced the capital outlays expected for FY 2014/15. This explains a larger balance of cash comprised of Cash at bank and Other investments, corresponding to a smaller balance of land and buildings. | Cash and cash equivalents, Other investments and Land and buildings (Statement of Financial Position) |
The variance in payables arises from timing differences due to normal business activities. | Payables (Statement of Financial Position) |
The variance in retained surplus arises as a cumulative result of actual surpluses realised, whilst budgeting for breakeven results in prior years' budgets. | Retained Surplus (Statement of Financial Position) |
Corporate Team.