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Financial statements

Financial statements for the financial year ended 30 June 2020.

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.

Reviewed 25 November 2020

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