Introduction
This section provides information on the sources of finance available to the Commission during its operations, along with interest expenses (the cost of lease liabilities) and other information related to financing activities of the Commission.
This section also includes disclosures on commitments for expenditure.
6.1 Borrowings
| 2023 $ |
2022 $ |
|
| Secured | ||
| Current lease liabilities | – | 19,003 |
| Total Borrowings | – | 19,003 |
End of table.
Borrowings of the Commission relate to lease liabilities on motor vehicles.
Leases are recognised as assets and liabilities of the Commission at amounts equal to the fair value of the lease asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.
Minimum lease payments are apportioned between reduction of the lease liability and periodic finance charges which are calculated using the interest rate implicit in the lease and charged directly to the comprehensive operating statement. Leases are secured borrowings as the rights to the leased assets will revert to the lessor in the event of a default.
There were no defaults and breaches of any lease condition during the current or previous year.
6.2 Reconciliation of net result for the year to cash flow from operating activities
| 2023 $ |
2022 $ |
|
| Net result for the year | 5,419,589 | (831,135) |
| Non-cash movements | ||
| Depreciation | 478,206 | 464,401 |
| Loss/(gain) on disposal of non-financial assets | – | (22,307) |
| Total non-cash movements | 478,206 | 442,094 |
| Change in operating assets and liabilities | ||
| (Increase) in receivables | (4,496,423) | (5,384,437) |
| (Increase)/decrease in prepayments | (17,368) | 19,975 |
| (Decrease)/increase in creditors and accruals | (879,053) | 1,014,841 |
| Increase in provisions | (315,914) | 956,538 |
| Increase in other liabilities | – | 1,291,976 |
| Net cash flows from/(used in) operating activities | 189,037 | (2,490,148) |
End of table.
6.3 Commitments for expenditure
Commitments for future expenditure include operating and capital commitments arising from contracts. These commitments are recorded below at their nominal value and inclusive of GST. Where it is considered appropriate, additional relevant information such as the net present values of significant individual projects are stated. These future expenditures cease to be disclosed as commitments once the related liabilities are recognised in the balance sheet.
| 2023 $ |
2022 $ |
|
| Outsourcing commitments | ||
| Commitments for outsourcing recruitment services and other contractual obligations, are payable as follows: | ||
| Within one year | 1,405,728 | 2,744,705 |
| Later than one year but not later than five years | 939,752 | 65,180 |
| Total commitments (inclusive of GST) | 2,345,480 | 2,809,885 |
| Less GST recoverable | (213,225) | (121,682) |
| Total commitments (exclusive of GST) | 2,132,255 | 2,688,203 |
| Centralised Accommodation Management (CAM) commitments (i) | ||
| Commitments for management of accommodation leases by Department of Treasury and Finance (DTF) as follows: | ||
| Within one year | 849,136 | 849,136 |
| Later than one year but not later than five years | – | – |
| Total commitments (inclusive of GST) | 849,136 | 849,136 |
| Less GST recoverable | (77,194) | (77,194) |
| Total commitments (exclusive of GST) | 771,942 | 771,942 |
End of table.
Notes:
(i) In accordance with a Government initiative, from 1 November 2019 most of the Government accommodation leases are centrally managed by DTF. These commitments represent amounts payable to DTF to meet costs associated with the Commissions use of these accommodation facilities that are included in an occupancy agreement between the Commission and DTF.