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Note 5: Financing our operations

Notes to the financial statements for the period ended 30 June 2019.

Introduction

This note provides information on the balances related to the financing of the Authority, including financial commitments at year-end. The Authority’s recurrent operations are generally financed from cash flows from operating activities (see Cash Flow Statement).

Structure

  • 5.1 Cash and cash equivalents
    • 5.1.1 Reconciliation of net result to cash flow from operating activities
  • 5.2 Commitments for expenditure
    • 5.2.1 Operating commitments
    • 5.2.2 Other commitments
2019
($'000)

5.1 Cash and cash equivalents

5.1.1 Reconciliation of net result to cash flow from operating activities

Net result for the year 1,519
Movements in assets and liabilities
Decrease/(increase) in receivables (1,731)
(Decrease)/increase in payables 160
(Decrease)/increase in employee benefits 52
Net cash inflows from operating activities -

Cash flows arising from operating activities are disclosed inclusive of GST.

5.2 Commitments for expenditure

5.2.1 Operating commitments

Commitments for future expenditure include operating commitments arising from contracts which are disclosed at their nominal value and inclusive of the GST payable. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the Balance Sheet.

Operating commitments in nominal values including GST as at 30 June 2019 totalled $1.3 million. This amount is represented by one contract for the provision of licensed software, maintenance, support and cloud hosting managed services for a period of three years from 1 July 2019. Operating expenditure commitments under this contract are due and payable as follows:

2019
($'000)
Operating expenditure commitments
Not later than one year 479
Later than one year and not later than five years 957
Total operating expenditure commitments 1,436
Less GST recoverable 131
Total operating expenditure commitments (excluding GST) 1,305

5.2.2 Other commitments

The Authority has an operating lease in place for the Head Office building in Bendigo that expires in 2022.

Lease payments over the remaining periods of the lease including GST, are expected to be as follows:

2019
($'000)
Operating lease on head office building
Not later than one year 259
Later than one year and not later than five years 439
Total other commitments 728
Less GST recoverable 66
Total other commitments (excluding GST) 662

Reviewed 28 October 2019

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