RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION

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1 RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION Section 1: Entity overview and resources Strategic direction Entity resource statement Budget measures Section 2: Outcomes and planned performance Outcomes and performance information Section 3: Explanatory tables and budgeted financial statements Explanatory tables Budgeted financial statements

3 RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION Section 1: Entity overview and resources 1.1 STRATEGIC DIRECTION The Rural Industries Research and Development Corporation (RIRDC) increases the competitiveness, productivity and sustainability of Australian agriculture by investing in research, development and extension (RD&E). RIRDC addresses national rural issues that impact across rural industries and invests in productivity and technology innovation for industry levy payers and identifies new plants and animals, which have the potential to become significant agricultural industries in Australia. RIRDC is the lead RD&E Corporation for investment that addresses cross-sectoral national issues that impact on the competitiveness of all rural industries. These issues affect all rural industries and their communities including trade policy, foreign investment, skills, resource competition and the urban and rural divide. The profitability, productivity and sustainability of RIRDC s portfolio industries remains RIRDC s core business. RIRDC will continue to work closely with its industry levy stakeholders from the rice, chicken meat, honeybee and small animal industries to deliver outcomes through RD&E which advance their industries. RIRDC will also continue to support a number of small, prospective industries for Australia. RIRDC investment aims to deliver both public (i.e. whole of community) and private (i.e. industry specific) benefits. RIRDC s public good research aims to facilitate investment on issues that impact a wide range of rural industries and communities, with a focus on research where benefits can be shared. RIRDC s industry good research aims to generate direct benefits to industry constituents, as well as across industries with shared RD&E needs. This research can also generate spill-over benefits to other industries and the wider community. RIRDC has three main goals: Goal 1: Promote leadership and innovation in the rural sector. Goal 2: Increase profit and productivity in rural industries. Goal 3: Enhance sustainability across the rural sector. RIRDC will continue to participate, and lead where appropriate, in strategies under the National RD&E Framework. RIRDC hosts the secretariat for the Climate Change 155

4 Research Strategy for Primary Industries. RIRDC also manages the collaboration in Primary Industries Health and Safety. Skills, leadership and capacity remain important commitments for RIRDC. The Rural Women's Award recognises Australia s leading rural women and opens up national networks to help them build knowledge and skills. The RIRDC Horizon Scholarship programme, which assists young people to transition to university, will also continue and RIRDC will continue to support the Australian Broadcasting Corporation s (ABC s) Heywire youth programme. RIRDC also continues to support the Australian Rural Leadership Foundation Rural Leadership Programme. 156

5 1.2 ENTITY RESOURCE STATEMENT Table 1.1 shows the total resources from all sources. The table summarises how resources will be applied by outcome and by administered and departmental classification. Table 1.1: Corporate Commonwealth entity Rural Industries Research and Development Corporation resource statement Budget estimates for as at Budget May 2015 Actual Estimate Proposed Total available of prior at Budget estimate appropriation year amounts available in Source $'000 $'000 $'000 $'000 Opening balance/reserves at bank 15,578 15,518-15,518 REVENUE FROM GOVERNMENT Payments from related entities 1 Amounts from the portfolio department 9,449-8,628 8,628 Total 9,449-8,628 8,628 Special appropriations 2 Primary Industries Research and Development Act 1989, s. 30(3) Rural Industries R&D Corporation 7,980-7,678 7,678 Total special appropriations 7,980-7,678 7,678 Total funds from Government 17,429-16,306 16,306 FUNDS FROM INDUSTRY SOURCES Levies 3 4,419-4,065 4,065 less amounts paid to the CRF (4,419) - (4,065) (4,065) Total FUNDS FROM OTHER SOURCES Interest Royalties Industry contributions 2,540-1,498 1,498 Other Total 3,733-2,691 2,691 Total net resourcing for agency 36,740 15,518 18,997 34, Appropriation Bill (No. 1) RIRDC is not directly appropriated as it is a corporate Commonwealth entity. Appropriations are made to the Department of Agriculture which are then paid to RIRDC and are considered departmental for all purposes. 3. The levies are imposed by the Primary Industries (Excise) Levies Act The levies are collected by Department of Agriculture under the Primary Industries Levies and Charges Collection Act 1991 and are transferred to the CRF. An equivalent amount is paid by Department of Agriculture to RIRDC as a special appropriation under the Primary Industries Research and Development Act 1989 (PIRD Act). Reader note: All figures are GST exclusive. CRF Consolidated Revenue Fund 1.3 BUDGET MEASURES RIRDC does not have any Budget measures. 157

6 Section 2: Outcomes and planned performance 2.1 OUTCOMES AND PERFORMANCE INFORMATION Government outcomes are the intended results, impacts or consequences of actions by the Government on the Australian community. Commonwealth programmes are the primary vehicle by which Government entities achieve the intended results of their outcome statements. Entities are required to identify the programmes which contribute to Government outcomes over the Budget and forward years. Each outcome is described below together with its related programmes, specifying the performance indicators and targets used to assess and monitor RIRDC s performance in achieving Government outcomes. Outcome 1: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership. Outcome 1 strategy RIRDC s Outcome 1 strategy is to invest in RD&E that addresses the key drivers identified by the Australian Government and industry stakeholders as follows: Promote leadership and innovation in the rural sector: Deliver analysis on issues of national importance to the rural sector and the broader community; Assess the feasibility, value and potential competitiveness of new plant and animal industry opportunities; and Encourage research that fosters science and industry creativity. Increase profit and productivity in rural industries: Manage demand driven RD&E that meets industry needs; Facilitate investments which deliver economic, social and environmental benefits for rural industries; and Adopt a life-cycle approach to the investment in new, developing and established industries. 158

7 Enhance sustainability across the rural sector: Work collaboratively on cross-sector issues which impact across industries; Increase knowledge about rural industry options which offer regional economic development opportunities; Encourage the sustainable use and management of natural resources; and Promote leadership, capacity, skills and pathways which create opportunities. 159

8 Outcome 1 expense statement Table 2.1 provides an overview of the total expenses for Outcome 1, by programme. Table 2.1: Budgeted Expenses for Outcome 1 Outcome 1: Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and Estimated Estimated furthers understanding of national rural issues through research actual expenses and development in government-industry partnership. expenses $'000 $'000 Programme 1.1: Rural Industries Research and Development Corporation Revenue from Government Ordinary annual services 9,449 8,628 Special appropriations 7,980 7,678 Revenues from industry sources 2,535 1,498 Revenues from other independent sources 1,193 1,193 Total for Programme ,157 18,997 Outcome 1 Totals by resource type Revenue from Government Ordinary annual services 9,449 8,628 Special appropriations 7,980 7,678 Revenues from industry sources 2,535 1,498 Revenues from other independent sources 1,193 1,193 Total expenses for Outcome 1 21,157 18, Average staffing level (number)

9 Contributions to outcome 1 Programme 1.1: Rural Industries Research and Development Corporation Programme objective Increased knowledge that fosters sustainable, productive and profitable new and existing rural industries and furthers understanding of national rural issues through research and development in government-industry partnership. Programme expenses Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 Annual departmental expenses: Rural Industries Research and Development Corporation 21,157 18,997 19,321 18,771 18,851 Total Programme expenses 21,157 18,997 19,321 18,771 18,851 Programme 1.1 Deliverables Under the framework of the Corporate Plan, the RIRDC will deliver outcomes through three lines of investment. Promote leadership and innovation in the rural sector by: Conducting RD&E on national issues that have the potential to impact the competitiveness of multiple industry sectors and in areas that can help inform the future positioning of Australia s rural industries (such as evidence to inform government policy, development of industry strategies and guide research and development (R&D) investment). Providing credible analysis and advice that supports Australian governments and industries in global trade negotiations. Undertaking systematic analysis that considers year horizon trends that will impact Australia s rural industry competitiveness. This analysis will help to inform RD&E that can help position industries for these trends (whether they be threats or opportunities). Conducting RD&E for new and developing plant and animal industries that contributes to the profitability, sustainability and productivity of regional Australia. Increase profit and productivity in rural industries by: Stimulating and promoting R&D that will deliver a productive and sustainable Australian chicken meat industry that provides quality wholesome food to the nation. Supporting RD&E that will secure a productive, sustainable and more profitable Australian beekeeping industry and will secure the pollination of Australia s horticultural and agricultural crops. Working with the thoroughbred horse industry to develop a programme of investment in the expectation of the introduction of an R&D levy. Creating domestic and global demand for temperate pasture seeds by investing in RD&E that maximises the opportunities and minimises the risks for a profitable and environmentally sustainable temperate pasture seed industry. Continued on following pages 161

10 Programme 1.1 Deliverables (continued) Improving the productivity and sustainability of the Australian rice industry through the organisation, funding and management of an RD&E programme that is aligned with industry reality and stakeholder needs. Cultivating a sustainable, growing and prosperous ginger industry supplying product of the highest quality that is strongly sought-after by discerning consumers in Australia and around the world. Enhance sustainability across the rural sector by: Scanning for areas that may need knowledge sharing, co-investment and/or strategic thinking across multiple industry sectors. RIRDC will play an active role facilitating discussions and obtaining advice across different sectors to help governments, rural research and development corporations and other relevant partners determine appropriate, practical and responsive RD&E. Facilitating cross sector knowledge sharing and RD&E investment through the Climate Change Research Strategy for Primary Industries. Driving improvements to work health and safety outcome for all those working in rural industries through the Primary Industries Health and Safety Partnership. Enhancing the capacity and recognising the value of women in rural industries through delivering the Rural Women s Awards for 2015 and inviting applications for Playing an active role in addressing challenges associated with shortage of trained professionals entering rural industries through implementing the Horizon Scholarships. These Scholarships aim to attract intelligent and motivated young people to take up careers in rural industries and provide them additional opportunities during their undergraduate training. Minimising the impact of Hendra virus. Continued on following pages 162

11 Programme 1.1 Performance measures RIRDC evaluates its performance measures for R&D against the following: Sector five-year research and development plans are meeting their objectives to provide the knowledge: - for diversification in Australia s rural industries; - to increase the profitability, resilience and sustainability of RIRDC s established industries; and - to address national rural issues and to meet the needs of industry, community and Government. Demonstrating high level of support from industry, government stakeholders and partners through regular stakeholder surveys and continuing investment and co-investment. Implementation of a revised strategy for RIRDC s knowledge investments leading to: - adoption of new technologies and industries; - adoption of knowledge to increase profitability; - resilience and sustainability of RIRDC s established industries; and - adoption of knowledge to address national rural issues demonstrated by client surveys and programme elevations. Performance measures Estimated Budget Forward Forward Forward actual estimate estimate estimate Improved delivery effectiveness 90% 90% 90% 90% 90% including in access to the information provided to industry, evidenced by new delivery mechanisms and stakeholder satisfaction with access. Level of satisfaction of stakeholders surveyed. Sector five year research and development plans are meeting their objectives. 85% 85% 85% 85% 85% Evaluate projects, programs and portfolios to show a strongly positive return on investment. The RIRDC's RD&E investments address the Government's National and Rural Research Priorities, priorities of industry partners, and optimise partnerships with other research agencies. 3:1 3:1 3:1 3:1 3:1 95% 95% 95% 95% 95% 163

12 Section 3: Explanatory tables and budgeted financial statements Section 3 presents explanatory tables and budgeted financial statements which provide a comprehensive snapshot of entity finances for the budget year. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between appropriations and programme expenses, movements in administered funds, special accounts and Government Indigenous expenditure. 3.1 EXPLANATORY TABLES Movement of administered funds between years RIRDC does not have any administered funds Special accounts RIRDC does not have any special accounts Australian Government Indigenous expenditure RIRDC has no Indigenous specific expenses. 164

13 3.2 BUDGETED FINANCIAL STATEMENTS Differences in entity resourcing and financial statements The financial statements are prepared on an accrual basis where revenues and expenses are recognised as and when the resources are received and used. The entity s resourcing table recognises the cash resources available to be used during the period and includes amounts recognised as revenue in previous periods Analysis of budgeted financial statements RIRDC is budgeting to break even in RIRDC s balance sheet remains strong with estimated total assets of $17.9 million in and in the forward years. Of the total assets, approximately $15.5 million is represented by cash. Payables to R&D providers and suppliers are the main liabilities in the balance sheet representing $1.3 million of the total $2.3 million expected in the budget and forward years. Employee entitlement liabilities are estimated at $1.0 million over the same period. 165

14 3.2.3 Budgeted financial statements tables Table Comprehensive income statement (showing net cost of services) (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 EXPENSES Employee benefits 3,251 3,513 3,614 3,614 3,614 Supplier expenses 2,875 2,636 2,647 2,647 2,647 Grants 14,851 12,668 12,880 12,330 12,410 Depreciation and amortisation Total expenses 21,157 18,997 19,321 18,771 18,851 LESS: OWN-SOURCE INCOME Own-source revenue Industry contributions 2,535 1,498 1,623 1,485 1,395 Interest Royalties Other Total own-source revenue 3,728 2,691 2,816 2,678 2,588 Total own-source income 3,728 2,691 2,816 2,678 2,588 Net cost of (contribution by) services 17,429 16,306 16,505 16,093 16,263 Revenue from Government 1 Commonwealth contribution 13,010 12,241 12,440 12,616 12,774 Industry contribution 4,419 4,065 4,065 3,477 3,489 Total revenue from Government 17,429 16,306 16,505 16,093 16,263 Surplus (Deficit) attributable to the Australian Government Total comprehensive income (loss) Total comprehensive income (loss) attributable to the Australian Government Revenue from Government includes a Commonwealth contribution under the PIRD Act and levies collected from industry by the Department of Agriculture for R&D activities. Prepared on Australian Accounting Standards basis. 166

15 Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 ASSETS Financial assets Cash and cash equivalents 5,518 5,538 5,558 5,578 5,598 Trade and other receivables 1,854 1,854 1,854 1,854 1,854 Investments Deposits 10,000 10,000 10,000 10,000 10,000 Total financial assets 17,372 17,392 17,412 17,432 17,452 Non-financial assets Property, plant and equipment Intangibles Other Total non-financial assets Total assets 17,940 17,940 17,940 17,940 17,940 LIABILITIES Payables Suppliers Grants 1,002 1,002 1,002 1,002 1,002 Other Total payables 1,279 1,279 1,279 1,279 1,279 Provisions Employee provisions Other Total provisions 1,048 1,048 1,048 1,048 1,048 Total liabilities 2,327 2,327 2,327 2,327 2,327 Net assets 15,613 15,613 15,613 15,613 15,613 EQUITY* Parent entity interest Reserves Retained surplus 15,139 15,139 15,139 15,139 15,139 Total equity 15,613 15,613 15,613 15,613 * 'Equity' is the residual interest in assets after deduction of liabilities. 15,613 Prepared on Australian Accounting Standards basis. 167

16 Table 3.2.3: Departmental statement of changes in equity summary of movement (budget year ) Retained Asset Total earnings revaluation equity reserve $'000 $'000 $'000 Opening balance as at 1 July 2015 Balance carried forward from previous period 15, ,613 Adjusted opening balance 15, ,613 Comprehensive income Surplus (deficit) for the period Total comprehensive income of which: Attributable to the Australian Government Estimated closing balance as at 30 June , ,613 Closing balance attributable to the Australian Government 15, Prepared on Australian Accounting Standards basis. 15,

17 Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June) Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 OPERATING ACTIVITIES Cash received Revenue from Government 17,429 16,306 16,505 16,093 16,263 Interest Net GST received 1,773 1,530 1,553 1,498 1,506 Other 3,133 2,091 2,216 2,078 1,988 Total cash received 22,935 20,527 20,874 20,269 20,357 Cash used Employees 3,251 3,513 3,614 3,614 3,614 Suppliers 3,163 2,900 2,912 2,912 2,912 Grants 16,336 13,934 14,168 13,563 13,651 Total cash used 22,750 20,347 20,694 20,089 20,177 Net cash from (used by) operating activities INVESTING ACTIVITIES Cash used Purchase of property, plant and equipment Total cash used Net cash from (used by) investing activities (245) (160) (160) (160) (160) Net increase (decrease) in cash held (60) Cash and cash equivalents at the beginning of the reporting period 5,578 5,518 5,538 5,558 5,578 Cash and cash equivalents at the end of the reporting period 5,518 5,538 5,558 5,578 5,598 Prepared on Australian Accounting Standards basis. 169

18 Table 3.2.5: Departmental capital budget statement Estimated Budget Forward Forward Forward actual estimate estimate estimate $'000 $'000 $'000 $'000 $'000 PURCHASE OF NON-FINANCIAL ASSETS Funded internally from departmental resources TOTAL RECONCILIATION OF CASH USED TO ACQUIRE ASSETS TO ASSET MOVEMENT TABLE Total purchases Total cash used to acquire assets Includes the following sources of funding: 160 annual and prior year appropriation; and internally developed assets. Consistent with information contained in the Statement of Asset Movements and the Budgeted Departmental Statement of Cash Flows. Table 3.2.6: Statement of asset movements (Budget year ) Other Intangibles Total property, plant and equipment $'000 $'000 $'000 As at 1 July 2015 Gross book value ,350 Accumulated depreciation/amortisation and impairment (485) (396) (881) Opening net book balance CAPITAL ASSET ADDITIONS Estimated expenditure on new or replacement assets By purchase Government funding Total additions Other movements Depreciation/amortisation expense (120) (60) (180) Total other movements (120) (60) (180) As at 30 June 2016 Gross book value ,510 Accumulated depreciation/amortisation and impairment (605) (456) (1,061) Closing net book balance Prepared on Australian Accounting Standards basis

FOOD STANDARDS AUSTRALIA NEW ZEALAND

FOOD STANDARDS AUSTRALIA NEW ZEALAND Agency Resources and Planned Performance FSANZ 325 326 Food Standards Australia New Zealand Health Portfolio Agency Section 1: Agency Overview and Resources 1.1: Strategic