Financial statements

For the Year Ended 30 June 2020

Declaration in the financial statements

The attached financial statements for the Essential Services Commission have been prepared in accordance with Direction 5.2 of the Standing Directions of the Assistant Treasurer 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 opinion, the information set out in the comprehensive operating statement, balance sheet, statement of changes in equity, cash flow statement and accompanying notes, presents fairly the financial transactions during the year ended 30 June 2020 and the financial position of the commission at 30 June 2020.

At the time 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 29 October 2020.

Signature of Anne Hodder – Chief Financial Officer

Melbourne, 29 October 2020

Signature of Dr John Hamill – Chief Executive Officer

Melbourne, 29 October 2020

Signature of Kate Symons – Chairperson and Commissioner

Melbourne, 29 October 2020

Click here to view the 2020 VAGO Independent Auditor's Report.

Comprehensive operating statement

For the year ended 30 June 2020

		2020	2019
	Notes	$	$
Income from transactions
Grants	2	28,434,667	24,972,374
Resources received free of charge	2	293,489	377,165
Total income from transactions		28,728,156	25,349,539

Expenses from transactions
Employee expenses	3.1.1	18,135,730	14,722,716
Depreciation and amortisation	5.1.1	316,512	35,374
Lease interest (2019: finance lease interest)		32,220	439
Capital asset charge		84,067	84,067
Supplies and services	3.2	9,971,272	8,711,830
Total expenses from transactions		28,539,801	23,554,426

Net result from transactions		188,355	1,795,113

Other economic flows included in net result
Net gain/(loss) on disposal of non-financial assets	9.1	12,558	(2,104)
Net gain/(loss) from revaluation of leave liabilities	9.1	(51,650)	(132,714)

Total other economic flows included in net result		(39,092)	(134,818)

Net result		149,263	1,660,295

Comprehensive result		149,263	1,660,295

The above comprehensive operating statement should be read in conjunction with the accompanying notes.

Balance sheet

As at 30 June 2020

		2020	2019
	Notes	$	$
Assets
Financial assets
Receivables	6.1	20,974,979	18,484,210
Total financial assets		20,974,979	18,484,210

Non-financial assets
Non-Current assets held for sale		-	27,082
Prepayments		610,112	449,882
Property, plant and equipment	5.1	333,564	250,388
Intangible assets	5.2	1,382,745	-
Total non-financial assets		2,326,421	727,352

Total assets		23,301,400	19,211,562

Liabilities
Payables	6.2	3,601,684	1,864,051
Employee related provisions	3.1.2	4,489,971	3,367,217
Make good provisions	6.3	131,061	106,470
Lease liabilities (2019: finance lease liabilities)		84,889	42,995
Unearned income	6.4	842,876	-
Total liabilities		9,150,481	5,380,733

Net assets		14,150,919	13,830,829

Equity
Contributed capital		1,044,748	873,921
Accumulated surplus(a)		13,106,171	12,956,908
Total equity		14,150,919	13,830,829
(a) The accumulated surplus can only be accessed upon approval of the Treasurer.

The above balance sheet should be read in conjunction with the accompanying notes.

Cash flow statement

For the year ended 30 June 2020

		2020	2019
	Notes	$	$
Cash flows from operating activities
Receipts from government		27,795,161	24,096,364
Receipts from other entities		2,383	36,260
Payments to suppliers and employees		(26,175,776)	(23,867,789)
Capital asset charge paid		(84,067)	(84,067)
Interest paid		(32,220)	(439)
Net cash flows from operating activities	7.1	1,505,481	180,329

Cash flows from investing activities
Payments for property, plant and equipment		(13,168)	(164,559)
Proceeds from sale of property, plant and equipment		53,182	29,545
Payments for intangible assets		(1,382,745)	-
Net cash flows from/(used in) investing activities		(1,342,731)	(135,014)

Cash flows from financing activities
Repayment of leases (2019: finance leases) (a)		(162,750)	(45,316)
Net cash flows (used in) financing activities		(162,750)	(45,316)

Net decrease in cash and cash equivalents		-	-

Cash and cash equivalents at the start of the year		-	-

Cash and cash equivalents at the end of the year		-	-

(a) The commission has recognised cash payments for the principal portion of lease payments as financing activities; cash payments for the interest portion as operating activities consistent with the presentation of interest payments and short-term lease payments for leases and low-value assets as operating activities.

The above cash flow statement should be read in conjunction with the accompanying notes.

Statement of changes in equity

For the year ended 30 June 2020

	Contributed capital	Accumulated surplus	Total
	$	$	$
Balance at 1 July 2018	873,921	11,296,613	12,170,534
Net result for the year	-	1,660,295	1,660,295

Balance at 30 June 2019	873,921	12,956,908	13,830,829

Equity transfers to other government entities	170,827	-	170,827
Net result for the year	-	149,263	149,263

Balance at 30 June 2020	1,044,748	13,106,171	14,150,919

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Notes to the financial statements

Notes to the 2019-20 financial statements (PDF)

(pdf, 335.54 KB)

Notes to the 2019-20 financial statements (Word)

(docx, 88.64 KB)

Annual Report 2019-20