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
153
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
RIRDC Budget Statements
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
RIRDC Budget Statements
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
available
appropriation
2014–15
$'000
Source
Opening balance/Reserves at bank
Estimate
of prior
year amounts
available in
2015–16
$'000
Proposed
at Budget
Total
estimate
2015–16
$'000
2015–16
$'000
15,578
15,518
-
15,518
9,449
9,449
-
8,628
8,628
8,628
8,628
Special appropriations2
Primary Industries Research and
Development Act 1989, s. 30(3) – Rural
Industries R&D Corporation
Total special appropriations
Total funds from Government
7,980
7,980
17,429
-
7,678
7,678
16,306
7,678
7,678
16,306
FUNDS FROM INDUSTRY SOURCES
Levies3
less amounts paid to the CRF
Total
4,419
(4,419)
-
-
4,065
(4,065)
-
4,065
(4,065)
-
600
300
2,540
293
3,733
-
600
300
1,498
293
2,691
600
300
1,498
293
2,691
REVENUE FROM GOVERNMENT
Payments from related entities1
Amounts from the portfolio department
Total
FUNDS FROM OTHER SOURCES
Interest
Royalties
Industry contributions
Other
Total
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.
157
RIRDC Budget Statements
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
RIRDC Budget Statements
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
RIRDC Budget Statements
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
furthers understanding of national rural issues through research
and development in government-industry partnership.
2014–15
Estimated
actual
expenses
$'000
2015–16
Estimated
expenses
$'000
Programme 1.1: Rural Industries Research and Development
Corporation
Revenue from Government
Ordinary annual services
Special appropriations
Revenues from industry sources
Revenues from other independent sources
Total for Programme 1.1
9,449
7,980
2,535
1,193
21,157
8,628
7,678
1,498
1,193
18,997
Outcome 1 Totals by resource type
Revenue from Government
Ordinary annual services
Special appropriations
Revenues from industry sources
Revenues from other independent sources
Total expenses for Outcome 1
9,449
7,980
2,535
1,193
21,157
8,628
7,678
1,498
1,193
18,997
2014–15
18.7
2015–16
18.7
Average staffing level (number)
160
RIRDC Budget Statements
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
Estimated
actual
$'000
Annual departmental expenses:
Rural Industries Research and
Development Corporation
Total Programme expenses
21,157
21,157
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
18,997
18,997
19,321
19,321
18,771
18,771
18,851
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
161
RIRDC Budget Statements
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
162
RIRDC Budget Statements
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
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.
Sector five year research and
development plans are meeting their
objectives.
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.
2014–15
Estimated
actual
90%
2015–16
Budget
90%
2016–17
Forward
estimate
90%
2017–18
Forward
estimate
90%
2018–19
Forward
estimate
90%
85%
85%
85%
85%
85%
3:1
3:1
3:1
3:1
3:1
95%
95%
95%
95%
95%
163
RIRDC Budget Statements
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.
164
RIRDC Budget Statements
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.
165
RIRDC Budget Statements
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
Estimated
actual
$'000
EXPENSES
Employee benefits
Supplier expenses
Grants
Depreciation and amortisation
Total expenses
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
3,251
2,875
14,851
180
21,157
3,513
2,636
12,668
180
18,997
3,614
2,647
12,880
180
19,321
3,614
2,647
12,330
180
18,771
3,614
2,647
12,410
180
18,851
2,535
600
300
293
3,728
3,728
1,498
600
300
293
2,691
2,691
1,623
600
300
293
2,816
2,816
1,485
600
300
293
2,678
2,678
1,395
600
300
293
2,588
2,588
17,429
16,306
16,505
16,093
16,263
13,010
4,419
17,429
12,241
4,065
16,306
12,440
4,065
16,505
12,616
3,477
16,093
12,774
3,489
16,263
Surplus (Deficit) attributable to the
Australian Government
-
-
-
-
-
Total comprehensive income (loss)
-
-
-
-
-
LESS:
OWN-SOURCE INCOME
Own-source revenue
Industry contributions
Interest
Royalties
Other
Total own-source revenue
Total own-source income
Net cost of (contribution by)
services
1
Revenue from Government
Commonwealth contribution
Industry contribution
Total revenue from Government
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.
166
RIRDC Budget Statements
Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)
2014–15
Estimated
actual
$'000
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
ASSETS
Financial assets
Cash and cash equivalents
Trade and other receivables
Investments – Deposits
Total financial assets
5,518
1,854
10,000
17,372
5,538
1,854
10,000
17,392
5,558
1,854
10,000
17,412
5,578
1,854
10,000
17,432
5,598
1,854
10,000
17,452
Non-financial assets
Property, plant and equipment
Intangibles
Other
Total non-financial assets
Total assets
217
252
99
568
17,940
197
252
99
548
17,940
177
252
99
528
17,940
157
252
99
508
17,940
137
252
99
488
17,940
LIABILITIES
Payables
Suppliers
Grants
Other
Total payables
239
1,002
38
1,279
239
1,002
38
1,279
239
1,002
38
1,279
239
1,002
38
1,279
239
1,002
38
1,279
Provisions
Employee provisions
Other
Total provisions
Total liabilities
985
63
1,048
2,327
985
63
1,048
2,327
985
63
1,048
2,327
985
63
1,048
2,327
985
63
1,048
2,327
15,613
15,613
15,613
15,613
15,613
474
15,139
15,613
474
15,139
15,613
474
15,139
15,613
Net assets
EQUITY*
Parent entity interest
474
474
Reserves
15,139
15,139
Retained surplus
15,613
15,613
Total equity
* 'Equity' is the residual interest in assets after deduction of liabilities.
Prepared on Australian Accounting Standards basis.
167
RIRDC Budget Statements
Table 3.2.3: Departmental statement of changes in equity — summary of
movement (budget year 2015–16)
Retained
earnings
$'000
Opening balance as at 1 July 2015
Balance carried forward from
previous period
Adjusted opening balance
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
Closing balance attributable to the
Australian Government
Prepared on Australian Accounting Standards basis.
168
Asset
revaluation
reserve
$'000
Total
equity
$'000
15,139
15,139
474
474
15,613
15,613
-
-
-
-
-
-
15,139
474
15,613
15,139
474
15,613
RIRDC Budget Statements
Table 3.2.4: Budgeted departmental statement of cash flows (for the period
ended 30 June)
2014–15
Estimated
actual
$'000
OPERATING ACTIVITIES
Cash received
Revenue from Government
Interest
Net GST received
Other
Total cash received
Cash used
Employees
Suppliers
Grants
Total cash used
Net cash from (used by)
operating activities
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
17,429
600
1,773
3,133
22,935
16,306
600
1,530
2,091
20,527
16,505
600
1,553
2,216
20,874
16,093
600
1,498
2,078
20,269
16,263
600
1,506
1,988
20,357
3,251
3,163
16,336
22,750
3,513
2,900
13,934
20,347
3,614
2,912
14,168
20,694
3,614
2,912
13,563
20,089
3,614
2,912
13,651
20,177
185
180
180
180
180
160
160
160
160
160
160
160
160
(160)
(160)
(160)
(160)
20
20
20
20
5,518
5,538
5,558
5,578
5,538
5,558
5,578
5,598
INVESTING ACTIVITIES
Cash used
Purchase of property, plant
245
and equipment
Total cash used
245
Net cash from (used by)
(245)
investing activities
Net increase (decrease)
(60)
in cash held
Cash and cash equivalents at the
5,578
beginning of the reporting period
Cash and cash equivalents at the
5,518
end of the reporting period
Prepared on Australian Accounting Standards basis.
169
RIRDC Budget Statements
Table 3.2.5: Departmental capital budget statement
2014–15
Estimated
actual
$'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
1. Includes the following sources of funding:
– annual and prior year appropriation; and
– internally developed assets.
2015–16
Budget
$'000
2016–17
Forward
estimate
$'000
2017–18
Forward
estimate
$'000
2018–19
Forward
estimate
$'000
245
245
160
160
160
160
160
160
160
160
245
160
160
160
160
245
160
160
160
160
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
property,
plant and
equipment
$'000
As at 1 July 2015
Gross book value
Accumulated depreciation/amortisation
and impairment
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
Total other movements
As at 30 June 2016
Gross book value
Accumulated depreciation/amortisation
and impairment
Closing net book balance
Prepared on Australian Accounting Standards basis.
170
Intangibles
Total
$'000
$'000
702
648
1,350
(485)
217
(396)
252
(881)
469
100
100
60
60
160
160
(120)
(120)
(60)
(60)
(180)
(180)
802
708
1,510
(605)
197
(456)
252
(1,061)
449