rural industries research and development …programme expenses 2014–15 2015–16 2016–17...

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RURAL INDUSTRIES RESEARCH AND DEVELOPMENT CORPORATION

Section 1: Entity overview and resources .............................................................. 155

1.1 Strategic direction ......................................................................................... 155 1.2 Entity resource statement ............................................................................. 157 1.3 Budget measures .......................................................................................... 157

Section 2: Outcomes and planned performance ................................................... 158 2.1 Outcomes and performance information ...................................................... 158

Section 3: Explanatory tables and budgeted financial statements ..................... 164

3.1 Explanatory tables ........................................................................................ 164

3.2 Budgeted financial statements...................................................................... 165

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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

RIRDC Budget Statements

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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.


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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 2015–16 as at Budget May 2015

Actual Estimate Proposed Total

available of prior at Budget estimate

appropriation year amounts

available in

2014–15 2015–16 2015–16 2015–16

Source $'000 $'000 $'000 $'000

Opening balance/Reserves at bank 15,578 15,518 - 15,518

REVENUE FROM GOVERNMENT

Payments from related entities1

Amounts from the portfolio department 9,449 - 8,628 8,628

Total 9,449 - 8,628 8,628

Special appropriations2

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

Levies3

4,419 - 4,065 4,065

less amounts paid to the CRF (4,419) - (4,065) (4,065)

Total - - - -

FUNDS FROM OTHER SOURCES

Interest 600 - 600 600

Royalties 300 - 300 300

Industry contributions 2,540 - 1,498 1,498

Other 293 - 293 293

Total 3,733 - 2,691 2,691

Total net resourcing for agency 36,740 15,518 18,997 34,515 1. Appropriation Bill (No. 1) 2015–16. 2. 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 1999. 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 2015–16 Budget measures.


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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.


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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.


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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

2014–15 2015–16

Estimated Estimated

actual expenses

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 1.1 21,157 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 18,997

2014–15 2015–16

Average staffing level (number) 18.7 18.7

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.


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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

2014–15 2015–16 2016–17 2017–18 2018–19

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 15–20 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


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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 2016.

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


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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 2014–15 2015–16 2016–17 2017–18 2018–19



Improved delivery effectiveness

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.

90% 90% 90% 90% 90%

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.

3:1 3:1 3:1 3:1 3:1

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.

95% 95% 95% 95% 95%


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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 2015–16 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

3.1.1 Movement of administered funds between years

RIRDC does not have any administered funds.

3.1.2 Special accounts

RIRDC does not have any special accounts.

3.1.3 Australian Government Indigenous expenditure

RIRDC has no Indigenous specific expenses.


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3.2 BUDGETED FINANCIAL STATEMENTS

3.2.1 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.

3.2.2 Analysis of budgeted financial statements

RIRDC is budgeting to break even in 2015–16.

RIRDC’s balance sheet remains strong with estimated total assets of $17.9 million in

2015–16 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.


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3.2.3 Budgeted financial statements tables

Table 3.2.1 Comprehensive income statement (showing net cost of services) (for the period ended 30 June)

2014–15 2015–16 2016–17 2017–18 2018–19



$'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 180 180 180 180 180

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 600 600 600 600 600

Royalties 300 300 300 300 300

Other 293 293 293 293 293

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 Government1

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 - - - - - 1. 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.


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Table 3.2.2: Budgeted departmental balance sheet (as at 30 June) 2014–15 2015–16 2016–17 2017–18 2018–19



$'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 217 197 177 157 137

Intangibles 252 252 252 252 252

Other 99 99 99 99 99

Total non-financial assets 568 548 528 508 488

Total assets 17,940 17,940 17,940 17,940 17,940

LIABILITIES

Payables

Suppliers 239 239 239 239 239

Grants 1,002 1,002 1,002 1,002 1,002

Other 38 38 38 38 38

Total payables 1,279 1,279 1,279 1,279 1,279

Provisions

Employee provisions 985 985 985 985 985

Other 63 63 63 63 63

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 474 474 474 474 474

Retained surplus 15,139 15,139 15,139 15,139 15,139

Total equity 15,613 15,613 15,613 15,613 15,613 * 'Equity' is the residual interest in assets after deduction of liabilities. Prepared on Australian Accounting Standards basis.


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Table 3.2.3: Departmental statement of changes in equity — summary of movement (budget year 2015–16)

Retained Asset Total

earnings revaluation equity

reserve

$'000 $'000 $'000

Opening balance as at 1 July 2015

Balance carried forward from

previous period 15,139 474 15,613

Adjusted opening balance 15,139 474 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 2016 15,139 474 15,613

Closing balance attributable to the

Australian Government 15,139 474 15,613 Prepared on Australian Accounting Standards basis.


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Table 3.2.4: Budgeted departmental statement of cash flows (for the period ended 30 June)

2014–15 2015–16 2016–17 2017–18 2018–19



$'000 $'000 $'000 $'000 $'000

OPERATING ACTIVITIES

Cash received

Revenue from Government 17,429 16,306 16,505 16,093 16,263

Interest 600 600 600 600 600

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 185 180 180 180 180

INVESTING ACTIVITIES

Cash used

Purchase of property, plant

and equipment 245 160 160 160 160

Total cash used 245 160 160 160 160

Net cash from (used by)

investing activities (245) (160) (160) (160) (160)

Net increase (decrease)

in cash held (60) 20 20 20 20

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.


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Table 3.2.5: Departmental capital budget statement 2014–15 2015–16 2016–17 2017–18 2018–19



$'000 $'000 $'000 $'000 $'000

PURCHASE OF NON-FINANCIAL

ASSETS

Funded internally from

departmental resources 245 160 160 160 160

TOTAL 245 160 160 160 160

RECONCILIATION OF CASH

USED TO ACQUIRE ASSETS

TO ASSET MOVEMENT TABLE

Total purchases 245 160 160 160 160

Total cash used to

acquire assets 245 160 160 160 160 1. Includes the following sources of funding:

– 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 2015–16) Other Intangibles Total

property,

plant and

equipment

$'000 $'000 $'000

As at 1 July 2015

Gross book value 702 648 1,350

Accumulated depreciation/amortisation

and impairment (485) (396) (881)

Opening net book balance 217 252 469

CAPITAL ASSET ADDITIONS

Estimated expenditure on

new or replacement assets

By purchase – Government funding 100 60 160

Total additions 100 60 160

Other movements

Depreciation/amortisation expense (120) (60) (180)

Total other movements (120) (60) (180)

As at 30 June 2016

Gross book value 802 708 1,510

Accumulated depreciation/amortisation

and impairment (605) (456) (1,061)

Closing net book balance 197 252 449 Prepared on Australian Accounting Standards basis.

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