5Financial reporting

Primary Financial Statements

Statement of comprehensive income for the period ended 30 June 2016
Notes 2016
$’000
2015
$’000
Original Budget
$’000
NET COST OF SERVICES
Expenses
Employee benefits 3.1 104 562 73 315 74 751
Suppliers 4.1A 159 515 50 506 51 753
Depreciation and amortisation 2.3A 9 326 9 459 7 995
Finance costs 2.4B 20 39 85
Write-down and impairment of assets 4.1B (4) 111
Losses from asset disposals 2.3A 23 184
Total expenses   273 442 133 614 134 584
Own-Source Income
Own-source revenue
Sale of goods and rendering of services 1.2A 15 224 19 224 10 841
Other revenue 1.2B 447 480 85
Total own-source revenue   15 671 19 704 10 926
Total own-source income   15 671 19 704 10 926
Net (cost of) services   (257 771) (113 910) (123 658)
Revenue from Government 1.1A 232 757 113 528 115 663
(Deficit) on continuing operations   (25 014) (382) (16 995)
OTHER COMPREHENSIVE INCOME
Items not subject to subsequent reclassification to net cost of services
Changes in asset revaluation surplus   1 885 2 148
Total other comprehensive income   1 885 2 148
Total comprehensive (loss)/income 1.4 (23 129) 1 766 (16 995)

This statement should be read in conjunction with the accompanying notes.

$232 million
2015-16 BUDGET

Budget Variances Commentary

Statement of Comprehensive Income

The AEC’s expenses were higher than budgeted due to costs incurred in 2015–16 in preparation for the federal election on 2 July 2016. The AEC’s budget did not include election costs as they were originally budgeted for in the 2016–17 financial year. The AEC’s revenue is higher than budgeted due to increased funding through an Advance to the Finance Minister to fund election expenditure. The AEC incurred a higher than budgeted loss due to funding some of the increased expenses through a release of appropriations that had previously been quarantined and are not reported as revenue in the period.

Statement of financial position as at 30 June 2016
  Notes 2016
$’000
2015
$’000
Original Budget
$’000
ASSETS
Financial assets
Cash and cash equivalents 2.1A 17 932 891 1 518
Receivables for goods and services 2.1A 2 116 2 312 1 518
Appropriations receivable 2.2A 74 030 55 820 47 050
Other receivables 2.2B 4 417 493 632
Total financial assets   98 495 59 509 49 200
Non-financial assets
Land and buildings 2.3A 10 359 11 524 12 375
Property, plant and equipment 2.3A 7 696 5 780 7 210
Computer software 2.3A 14 402 13 836 18 353
Intellectual property 2.3A 2 161
Inventories 2.3B 14 599 3 055 1 898
Lease incentive   38 80
Other non-financial assets 2.3C 7 077 1 988 1 689
Total non-financial assets   56 332 36 263 41 525
Total assets   154 827 95 772 90 725
LIABILITIES
Payables
Suppliers 2.1A 72 637 8 085 7 930
Other payables 2.4A 11 249 7 947 5 124
Total payables   83 886 16 032 13 054
Provisions
Employee provisions 3.2 24 611 21 257 25 478
Other provisions 2.4B 1 525 1 561 1 577
Total provisions   26 136 22 818 27 055
Total liabilities   110 022 38 850 40 109
Net assets   44 805 56 922 50 616
EQUITY
Parent Entity Interest
Contributed equity   54 202 43 190 54 202
Asset revaluation surplus   22 985 21 100 18 952
Retained earnings   (32 382) (7 368) (22 538)
Total equity   44 805 56 922 50 616

This statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Statement of Financial Position

Increased financial assets offset the increase in payables and provisions. The increase in payables and provisions relates to expenditure incurred in late 2015–16 in preparation for the federal election on 2 July 2016. The increase in inventory and other non-financial assets relates to items on hand and prepayments made in preparation for the election.

$155 million
AGENCY ASSETS
Statement of changes in equity for the period ended 30 June 2016
  2016
$’000
2015
$’000
Original Budget
$’000
CONTRIBUTED EQUITY
Opening balance
Balance carried forward from previous period 43 190 35 890 43 190
Adjusted opening balance 43 190 35 890 43 190
Transactions with owners
Contributions by owners
Departmental Capital Budget 11 012 7 300 11 012
Total transactions with owners 11 012 7 300 11 012
Closing balance as at 30 June 54 202 43 190 54 202
RETAINED EARNINGS
Opening balance
Balance carried forward from previous period (7 368) (6 986) (14 543)
Adjusted opening balance (7 368) (6 986) (14 543)
Comprehensive income
(Deficit) for the period (25 014) (382) (7 995)
Total comprehensive income (25 014) (382) (7 995)
Closing balance as at 30 June (32 382) (7 368) (22 538)
ASSET REVALUATION RESERVE
Opening balance
Balance carried forward from previous period 21 100 18 952 18 952
Adjusted opening balance 21 100 18 952 18 952
Comprehensive income
Other comprehensive income 1 885 2 148
Total comprehensive income 1 885 2 148
Closing balance as at 30 June 22 985 21 100 18 952
TOTAL EQUITY
Opening balance
Balance carried forward from previous period 56 922 47 856 47 599
Adjusted opening balance 56 922 47 856 47 599
Comprehensive income
(Deficit) for the period (25 014) (382) (7 995)
Other comprehensive income 1 885 2 148
Total comprehensive income (23 129) 1 766 (7 995)
Transactions with owners
Contributions by owners
Departmental Capital Budget 11 012 7 300 11 012
Total transactions with owners 11 012 7 300 11 012
Closing balance as at 30 June 44 805 56 922 50 616

This statement should be read in conjunction with the accompanying notes.

Accounting Policy

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Budget Variances Commentary

Statement of Changes in Equity

The AEC incurred a higher than anticipated deficit in 2015–16, resulting in a lower than budgeted equity position.

$110 million
AGENCY LIABILITIES
Cash flow statement for the period ended 30 June 2016
Notes 2016
$’000
2015
$’000
Cash flow statement
$’000
OPERATING ACTIVITIES
Cash received
Appropriations   201 225 106 646 115 663
Sales of goods and rendering of services   18 000 22 309 10 841
Net GST received   4 547 3 237
Total cash received   223 772 132 192 126 504
Cash used
Employees   95 600 73 701 74 301
Suppliers   125 925 59 075 51 762
Total cash used   221 525 132 776 126 063
Net cash from/(used by) operating activities 1.5 2 247 (584) 441
INVESTING ACTIVITIES
Cash used
Purchase of property, plant and equipment   4 227 1 111 11 453
Purchase of intangibles   5 313 3 136
Total cash used   9 540 4 247 11 453
Net cash (used by) investing activities   (9 540) (4 247) (11 453)
FINANCING ACTIVITIES
Cash received
Contributed equity   3 989 3 11 012
Departmental Capital Budget   20 345 4 201
Total cash received   24 334 4 204 11 012
Net cash from financing activities   24 334 4 204 11 012
Net increase/(decrease) in cash held   17 041 (627)
Cash and cash equivalents at the beginning of the reporting period   891 1 518 1 518
Cash and cash equivalents at the end of the reporting period 2.1A 17 932 891 1 518

This statement should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Cash Flow Statement

The AEC’s operating cash used was higher than budgeted due to costs incurred in 2015–16 in preparation for the federal election on 2 July 2016. The AEC’s budget did not include election costs as they were originally budgeted for in the 2016–17 financial year. The AEC’s operating cash received is higher than budgeted due to increased funding through an Advance to the Finance Minister to fund election payments. The financing cash received is higher than budgeted due to the drawing down of prior year capital appropriations. The increased cash balance reflects the increase in payables and provisions.

 

Administered schedules

Administered Schedule of Comprehensive Income for the period ended 30 June 2016
Notes 2016
$’000
2015
$’000
Original Budget
$’000
NET COST OF SERVICES 
EXPENSES 
Other expenses 5.1A 392 53
Total expenses   392 53
INCOME 
Revenue
Non-taxation revenue        
Electoral fines/penalties 5.2A 369 960 33
Candidate deposits 5.2A 25 7
Other 5.2A 10    
Total non-taxation revenue   404 967 33
Total revenue   404 967 33
Net contribution by services   12 914 33
Surplus   12 914 33

This schedule should be read in conjunction with the accompanying notes.

Budget Variances Commentary

Schedule of Comprehensive Income

The AEC’s administered expenditure was higher than budgeted due to candidate funding of by-elections not anticipated in 2015–16. The AEC’s administered revenue was higher than anticipated due to electoral fines and penalties for by-elections not anticipated in 2015–16.

Administered Schedule of Assets and Liabilities as at 30 June 2016
  Notes 2016
$’000
2015
$’000
Original Budget
$’000
ASSETS
Financial assets
Cash and cash equivalents 5.3A 14
Total financial assets   14
Total assets administered on behalf of Government   14
LIABILITIES 
Payables
Suppliers 5.3B 14
Total payables   14
Total liabilities administered on behalf of Government   14
Net assets  

This schedule should be read in conjunction with the accompanying notes.

Administered Reconciliation Schedule
  2016
$’000
2015
$’000
Net cost of/(contribution by) services: 
Income 404 967
Expenses (392) (53)
Transfers (to)/from Australian Government:
Appropriation transfers to OPA
Transfers (to) OPA (12) (914)
Closing assets less liabilities as at 30 June

This schedule should be read in conjunction with the accompanying notes.

Accounting Policy

Administered Cash Transfers to and from the Official Public Account 

Revenue collected by the entity for use by the Government rather than the AEC is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by the Department of Finance. Conversely, cash is drawn from the OPA to make payments under Parliamentary appropriation on behalf of Government. These transfers to and from the OPA are adjustments to the administered cash held by the entity on behalf of the Government and reported as such in the schedule of administered cash flows and in the administered reconciliation schedule.

Administered Cash Flow Statement for the period ended 30 June 2016
  Notes 2016
$’000
2015
$’000
OPERATING ACTIVITIES
Cash received
Electoral fines/penalties   369 960
Candidate deposits   25 7
Other   10
Total cash received   404 967
Cash used 
Political Parties/Candidates   344
Refund of Electoral fines/penalties   34 53
Total cash used   378 53
Net cash flows from operating activities 5.5 26 914
Cash from Official Public Account 
Appropriations   392 53
Total cash from Official Public Account   392 53
Cash to Official Public Account 
Appropriations   (404) (967)
Total cash to Official Public Account   (404) (967)
Cash and cash equivalents at the end of the reporting period   14

This statement should be read in conjunction with the accompanying notes.