03Financial Statements

CEFC ANNUAL REPORT / 2015–16

Note 4: Funding

This section identifies the Corporation’s funding structure.

4.1: Contributed Equity

Equity from CEFC Special Account

The Department of the Environment and Energy maintains the CEFC Special Account established in accordance with section 45 of the CEFC Act. In prior years, the CEFC Special Account was maintained by the Department of the Treasury, however, due to a Machinery of Government change during the 2015-16 financial year, responsibility for the Corporation was transferred from the Department of the Treasury to the Department of the Environment and Energy.

 

2016

$’000

2015

$’000

Appropriations credited to the CEFC Special Account maintained by the Department of the Environent and Energy

2,000,000

2,000,000

Funds drawn during the year as an equity contribution from the CEFC Special Account maintained by the Department of the Environment and Energy

-

-

Funds returned during the year as an equity return to the CEFC Special Account maintained by the Department of the Environment and Energy

(60,000)

(50,600)

Accounting Policy

The Corporation’s investment funds are provided for by a special appropriation under section 46 of the CEFC Act. Funds credited to the CEFC Special Account are held by the Department of the Environment and Energy (in prior years the Department of the Treasury) and are released to the Corporation in accordance with the CEFC Act when the CEFC identifies investments that it intends to make. Surplus funds are returned to the CEFC Special Account held by the Department of the Environment and Energy for reinvestment by the CEFC or payment of a dividend to ARENA in accordance with the CEFC Act.

Equity Injections

Amounts received from the Australian Government as drawings out of the CEFC Special Account held by the Department of the Environment and Energy are designated as ‘equity injections’ and recognised directly in contributed equity in that year.

Other Distributions to Owners

The CEFC Act provides that any amounts returned to the Commonwealth must be retained in the CEFC Special Account held by the Department of the Environment and Energy and may only be used to make payments to the Corporation, or to make payments to ARENA from retained earnings of the Corporation if requested by the Corporation and authorised by the nominated Minister. Amounts returned to the CEFC Special Account will be designated as either a return of equity in the case of capital being returned or a distribution of profits in the case of accumulated profits being transferred to the CEFC Special Account.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another Australian Government entity under restructuring of administrative arrangements are adjusted directly against contributed equity.

In accordance with an instruction received from the Australian Government, as part of a restructuring of administrative arrangements, another Australian Government controlled entity – Low Carbon Australia Limited - relinquished the following net assets to the CEFC for $Nil consideration and was de-registered as of 17 December 2014.

A summary of the assets acquired and liabilities assumed follows:

 

2016

$’000

2015

$’000

Financial Assets

 

 

Cash and cash equivalents

-

18,398

Net assets received

-

18,398

 A summary of the assets acquired and liabilities assumed follows:

 

2016

$’000

2015

$’000

Summary of Contributed Equity

 

 

Opening balance – 1 July

1,168,363

1,200,565

Return of equity to CEFC Special Account

(60,000)

(50,600)

Net Assets received from restructuring of administrative arrangements

-

18,398

Closing contributed equity balance – 30 June

1,108,363

1,168,363

 4.2: Cash Flow Reconciliation

 

2016

$’000

2015

$’000

Reconciliation of cash and cash equivalents as per statement of financial position to cash flow statement

 

 

Cash and cash equivalents as per:

 

 

Cash flow statement

232,778

149,577

Statement of financial position

232,778

149,577

Difference

-

 -

Reconciliation of net cost of services to net cash from operating activities

 

 

Net contribution from services

21,137

31,155

Adjustments for non-cash items

 

 

Depreciation and amortisation

534

455

Concessional loan charge

6,876

1,392

Impairment

83

2,271

Provision for irrevocable commitments

(178)

266

Capitalised interest and fees on loans

(4,707)

(3,147)

Amortisation of concessional loan discount

(2,011)

(1,508)

Interest on make good

-

6

Gain on elimination of make good

-

(139)

Distribution from equity investment

(21)

(14)

Shares received for non-cash consideration

(200)

-

Movements in assets and liabilities

 

 

Assets

 

 

(Increase) / decrease in net receivables

2,929

590

(Increase) / decrease in prepayments and other assets

(24)

75

Liabilities

 

 

Increase / (decrease) in employee provisions

321

279

Increase / (decrease) in supplier payables

108

311

Increase / (decrease) in unearned income

(994)

549

Increase / (decrease) in other payables

1,091

(296)

Net cash from operating activities

24,944

32,245