Annual Report 2015–2016

Administered Schedule of Comprehensive Income
for the period ending 30 June 2016
NET COST OF SERVICES
Expenses
Grants - Medical Research (MREA) 1
Other expenses incurred in the provision of grants 2
Total expenses
Notes
2016
2016 2015
Original
Budget
$’000 $’000 $’000
2A 815,215 831,613 845,780
2B 13,568 18,736 44,318
828,783 850,349 890,098
PART 5 financial report
Income
Revenue
Non-taxation revenue
Rendering of Services 3
Other Revenue 4
Total non-taxation revenue
Total revenue
Total income
Net (cost of) services
12,203 8,575 5,000
6,247 6,303 3,000
18,450 14,878 8,000
18,450 14,878 8,000
18,450 14,878 8,000
(810,333) (835,471) (882,098)
This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
1. The reduction in expenses are due to (i) delays in grants awarded from previous rounds of Targeted Calls for Research; (ii) lower than
expected awards from previous rounds of Partnership Projects, Hearing Loss Prevention Program, and Program Grants; and (iii) a significant
underspend against the estimated target for Project Grants, due to the change in payment patterns caused by the shift to five-year grants.
2. Variance is largely due to an under spend relating to the Boosting Dementia budget measure, caused by delays in establishing the inaugural
NHMRC National Institute of Dementia Research and subsequent funding rounds. Of the $44.3 million originally budgeted, $32 million was
received in 2015-16 for Boosting Dementia Research, and has since been awarded as new research grants, to be paid from the Medical
Research Endowment Account over a five year period.
3. Variance includes funds received from other Government agencies (Australian Research Council, $9m for Dementia Research
Development Fellowship Scheme), overlooked from a budget perspective during the preparation of the 2015-16 Portfolio Budget Statements.
4. Variance is due to higher than anticipated receipts for medical research grant acquittals, repayments, and relinquishments from
Administering Institutions. This was caused by (i) a concerted effort to recover funds at the end of the financial year; and (ii) an abnormally
high number of grant relinquishments during the year.
Administered Schedule of Assets and Liabilities
as at 30 June 2016
2016
2016 2015
Original
Budget
Notes $’000 $’000 $’000
ASSETS
Financial assets
Cash and cash equivalents 5.4 - - -
Trade and other receivables 1 4.1A 648 919 2,516
Total financial assets 648 919 2,516
Total assets administered on behalf of Government 648 919 2,516
LIABILITIES
Payables
Suppliers - - -
Grants 2 4.2A 6,308 16,854 10,673
Other Payables 3 4.2B 70 - 256
Total payables 6,378 16,854 10,929
Total liabilities administered on behalf of Government 6,378 16,854 10,929
Net liabilities (5,730) (15,935) (8,413)
This schedule should be read in conjunction with the accompanying notes.
Budget Variances Commentary
1. Variance is due to improvements in collections processes, and budget overstated due to being based on historical data/trends.
2. In October 2015, NHMRC changed the grants funding policy relating to approvals for Human Ethics, Animal Ethics, Genetic Manipulation
and Biosafety. This resulted in a reduction in overall liabilities, as payments for new grants are no longer delayed.
3. Budget overstated due to being based on historical data/trends. Current actual relates to GST payable that is lower than budgeted due to
improvements in collection processes noted above.
130
Annual Report of the National Health and Medical Research Council 2015–2016