Statutory certification
We certify that the attached financial statements for the Portable Long Service Benefits Authority have been prepared in accordance with Direction 5.2 of the Standing Directions of the Minister for Finance under the Financial Management Act 1994, applicable Financial Reporting Directions, Australian Accounting Standards including interpretations, and other mandatory professional reporting requirements.
We further state that, in our opinions, the information set out in the Comprehensive Operating Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and the accompanying notes, presents fairly the financial transactions during the financial year ended 30 June 2020 and the financial position of the Authority as at 30 June 2020.
At the date of signing, we are not aware of any circumstance which would render any particulars included in the financial statements to be misleading or inaccurate.
We authorise the attached financial statements for issue on 18 August 2020.
_______________________________________________
Julius Roe
Chair
Portable Long Service Benefits Authority
_______________________________________________
Joseph Yeung
Chief Executive Officer and Regulator
Portable Long Service Benefits Authority
_______________________________________________
Peter Leersen
Chief Financial Officer
Portable Long Service Benefits Authority
Understanding the financial statements
Comprehensive operating statement
The comprehensive operating statement measures our performance over the year and shows if a surplus or deficit has been made in delivering our services. The statement includes all sources of income less all expenses incurred in earning that income.
For the year ending 30 June 2020, the Authority made a net profit of $9.3 million.
Balance sheet
The balance sheet sets out our net accumulated financial worth at the end of the financial year. It shows the assets we own as well as liabilities or claims against those assets.
Both assets and liabilities are expressed as current or non-current. Current assets or current liabilities are expected to be converted to cash receipts or outlays within the next twelve months. Non-current assets or liabilities are longer-term.
Equity is our reserves and accumulated profits that have been reinvested in the Authority over the year.
Statement of changes in equity
The statement of changes in equity shows the changes in equity from last year to this year.
The total overall change in equity during a financial year comprises the net result for the year.
Cash flow statement
The cash flow statement summarises our cash receipts and payments for the financial year and the net cash position at the end of the year. It differs from the comprehensive operating statement in that it excludes non-cash expenses such as the accruals taken into account in the comprehensive operating statement.
For the year ending 30 June 2020, the Authority had net cash flow from operating activities of $40.4 million.
Notes to the accounts
The notes to the accounts provide further information about how the financial statements are prepared as well as additional information and detail about specific items within them.
The notes also describe any changes to accounting standards, policy or legislation that may affect the way the statements are prepared. Information in the Notes is particularly helpful if there has been a significant change from the previous year’s comparative figures.
Statutory certificate and Independent Auditor’s Report
These provide the reader with a written undertaking that the Financial Statements fairly represent the Authority’s financial position and performance for 2019-20. The Report from the Auditor General provides an independent view and outlines any issues of concern.
Comprehensive operating statement
| For the financial year ended 30 June 2020 | Notes | 2020 ($'000) | 2019 ($'000) |
|---|---|---|---|
| Income from transactions | |||
| Government grants | 2.2.2 | 6,236 | 1,820 |
| Contributions from employers and contractors | 2.2.1 | 55,997 | - |
| Investment income | 2.2.3 | 571 | - |
| Interest | 33 | - | |
| Net loss on financial instruments | 4.2.1 | (418) | - |
| Total income from transactions | 62,419 | 1,820 | |
| Expenses from transactions | |||
| Employee benefits expense | 3.3.1 | 3,740 | 168 |
| Portable long service benefits expense | 3.4.1 | 47,684 | - |
| Administration expense | 3.2 | 1,444 | 133 |
| Interest expense | 6.2.2 | 15 | - |
| Depreciation | 4.1.2, 6.2.2 | 263 | - |
| Total expenses from transactions | 53,146 | 301 | |
| Net result from transactions (net operating balance) | 9,273 | 1,519 | |
| Net result | 9,273 | 1,519 | |
| Comprehensive result | 9,273 | 1,519 |
The accompanying notes form part of these financial statements.
Balance sheet
| As at 30 June 2020 | Notes | 2020 ($'000) | 2019 ($'000) |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash and deposits | 6.3 | 13,959 | - |
| Receivables | 5.1 | 19,487 | 1,731 |
| Investments and other financial assets | 4.2 | 11,225 | - |
| Prepayments | 21 | - | |
| Total current assets | 44,692 | 1,731 | |
| Non-current assets | |||
| Property, plant, equipment and vehicles | 4.1 | 529 | 620 |
| Investments and other financial assets | 4.2 | 14,519 | - |
| Total non-current assets | 15,048 | 620 | |
| TOTAL ASSETS | 59,740 | 2,351 | |
| LIABILITIES | |||
| Current liabilities | |||
| Trade and other payables | 5.2 | 272 | 160 |
| Employee benefits | 3.3.2 | 424 | 52 |
| Accrued portable long service benefits | 3.4.2 | 3,123 | - |
| Borrowings | 6.1 | 249 | 221 |
| Total current liabilities | 4,068 | 433 | |
| Non-current liabilities | |||
| Employee benefits | 3.3.2 | 109 | - |
| Accrued portable long service benefits | 3.4.2 | 44,561 | - |
| Borrowings | 6.1 | 210 | 399 |
| Total non-current liabilities | 44,880 | 399 | |
| TOTAL LIABILITIES | 48,948 | 832 | |
| NET ASSETS | 10,792 | 1,519 | |
| EQUITY | |||
| Reserves | 6.5 | 1,782 | - |
| Accumulated surplus | 9,010 | 1,519 | |
|
NET WORTH |
10,792 | 1,519 |
The accompanying notes form part of these financial statements.
Cash flow statement
| For the financial year ended 30 June 2020 | Notes | 2020 ($’000) | 2019 ($’000) |
|---|---|---|---|
| Cash flows from operating activities | |||
| Receipts | |||
| Receipts from Government | 7,379 | 100 | |
| Receipts from employers | 37,661 | - | |
| Goods and services tax received from the ATO (i) | 126 | 4 | |
| Total receipts | 45,166 | 104 | |
| Payments | |||
| Payments to suppliers and employees | (4,750) | (104) | |
| Payments to scheme employers and workers | (29) | - | |
| Total payments | (4,779) | (104) | |
| Net cash flows from / (used in) operating activities | 6.3.1 | 40,387 | - |
| Cash flows from investing activities | |||
| Payments for investments | (26,162) | - | |
| Proceeds from sale of investments | 67 | - | |
| Payments for property, plant and equipment | (100) | - | |
| Net cash flows from / (used in) investing activities | (26,195) | - | |
| Cash flows from financing activities | |||
| Repayment of finance lease liabilities | 6.2.3 | (233) | - |
| Net cash flows from / (used in) financing activities | (233) | - | |
| Net increase in cash and cash equivalents | 13,959 | - | |
| Cash and cash equivalents at the beginning of the financial year | - | - | |
| Cash and cash equivalents at end of financial year | 6.3 | 13,959 | - |
The accompanying notes form part of these financial statements.
(i) Goods and Services Tax paid to the Australian Taxation Office is presented on a net basis.
Statement of changes in equity
| For the financial year ended 30 June 2020 | Notes | Reserves ($’000) | Accumulated surplus ($’000) | Total ($’000) |
|---|---|---|---|---|
| Balance at 1 July 2018 | - | - | - | |
| Net result for the year | - | 1,519 | 1,519 | |
| Transfer to reserves | - | - | - | |
| Balance at 30 June 2019 | - | 1,519 | 1,519 | |
| Net result for the year | - | 9,273 | 9,273 | |
| Transfer to reserves | 1,782 | (1,782) | - | |
| Balance at 30 June 2020 | 1,782 | 9,010 | 10,792 |
The accompanying notes form part of these financial statements.
Updated