2021-22 Financial Year Review
Operating result
In 2021-2022, the ARBV recorded a net surplus of $38,409 which was a $29,442 decrease on the 2020-2021 net surplus of $67,851.
Revenue increased by $135,065 on the back of annual registration fee income increasing by $139,975 as a result of having a higher number of architects, companies and partnerships on the register.
Expenditure increased by $163,406 which was driven by an increase to depreciation and amortisation of $172,273 due to:
- Completion of the customer relationship management system.
- Fit out of the new leased premises, and
- Changed accounting treatment under AASB 16 – Leases, which requires depreciation of leased premises.
Other material movements in expenditure, due to changing priorities during the year, included:
- Employee expenses increased by $93,525, which reflects a redundancy payment following an organisational restructure in 2021-2022 and higher employee vacancies in 2020-2021.
- Professional services expenditure decreased $106,471 due to less consultants being engaged and completion of the project management activities to implement the customer relationship management system.
- Occupancy costs reduced $97,699 due to the changed accounting treatment for rent payments under AASB 16 - Leases and staff working from home for most of the year.
Smaller expenditure increases were seen in legal, information technology and administrative expenses and the inclusion of an interest expense of $20,307 due to the changed requirements from AASB 16 -Leases.
Financial position
Net assets increased by $38,409 to $1,387,060 as a result of the net surplus for the year.
Total assets increased by $31,632 and total liabilities decreased by $6,777 relative to 2020-2021.
Property, plant and equipment increased $171,488 for the completion of the new office fit out, whilst the Right-of-use asset reduced by $201,831 reflecting receipt of the landlord’s lease incentive and depreciation of the leased office for six months of the reporting period.
The lease liability for the Right-of-use asset reduced by $124,235 through the monthly rent payments, while the balance of rent is reflected as a finance (interest) expense. Registration and examination fees paid in advance increased by $82,222 which reflects delays to annual renewal process in June 2021 due to the implementation of the customer relationship management system. This reduced the number of transactions processed in advance for the 2020-2021 renewal period.
Cash has increased by $74,291 relative to 30th June 2021. Cash decreased by $239,812 in 2020-2021.
ARBV 5-year financial summary
| 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | |
| Total income from transactions | 2,636,197 | 2,501,132 | 2,184,555 | 2,477,596 | 2,124,263 |
| Total expenses from transactions | 2,596,687 | 2,433,281 | 2,355,266 | 2,379,098 | 2,066,187 |
| Net result for the period | 38,409 | 67,851 | (170,711) | 98,498 | 58,220 |
| Net cash flows from operations | 479,330 | (40,329) | 476,231 | 144,208 | 303,439 |
| Total assets | 3,947,100 | 3,915,468 | 3,369,736 | 2,934,365 | 2,786,808 |
| Total liabilities | 2,560,040 | 2,566,817 | 2,088,887 | 1,482,805 | 1,433,746 |
Significant changes or factors affecting performance
There were no significant changes or factors affecting ARBV’s performance during the reporting period. Remote working by staff continued throughout the year without any impact on performance.
Subsequent events
At 30 June 2022 there were no subsequent events.
Financial management compliance attestation statement
Financial statement
Updated