Northern Territory Auditor-General's Office, February 2023 Report to the Legislative Assembly
Tabled Paper 772
Tabled Papers for 14th Assembly 2020 -; Tabled Papers; ParliamentNT
2023-02-14
Tabled by the Speaker
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Tabled papers
Legislative Assembly of the Northern Territory
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Legislative Assembly of the Northern Territory
https://www.legislation.gov.au/Details/C2019C00042
https://hdl.handle.net/10070/898837
https://hdl.handle.net/10070/898851
Auditor-General for the Northern Territory February 2023 Report Page 13 of 131 Desert Knowledge Australia Audit findings and analysis of the financial statements for the year ended 30 June 2022 Background Desert Knowledge Australia was established under the Desert Knowledge Australia Act 2003 (the Act), which came into effect on 18 September 2003. Desert Knowledge Australia is a body corporate that has been declared by its enabling Act to be excluded from the provisions of the Commonwealth Corporations Act 2001. The objectives of Desert Knowledge Australia are centred on a range of activities intended to promote economic and social development in desert and arid land areas. Desert Knowledge Australia is managed by a Board, the members of which hold office in accordance with the provisions of the Act. Scope and objectives The objective of the audit was to complete sufficient audit procedures to enable an opinion to be expressed upon the financial statements of Desert Knowledge Australia for the year ended 30 June 2022. Audit opinion The audit of Desert Knowledge Australia for the year ended 30 June 2022 resulted in an unmodified independent audit opinion, which was issued on 10 November 2022. Audit observations The audit did not identify any material weaknesses in internal controls. Performance overview Desert Knowledge Australia (DKA) reported a surplus of $2.3 million consistent with the prior year's surplus of $2.6 million. Analysis of the significant items contributing to the surplus is presented below. Total revenue of $5.8 million (2021: $6.0 million) decreased by $0.2 million from the prior year. Key factors contributing to this decrease were: During the 2010 financial year, CSIRO funded and managed an extension to the Desert Knowledge Business and Innovation Centre (owned by DKA) valued at $3.3 million. The extension was recognised as an asset by DKA together with a corresponding liability for rent received in advance. During the 2021 financial year, an agreement to surrender the lease was signed by DKA and CSIRO resulting in the remaining rent received in advance of $2.0 million being recognised as revenue in the 2021 financial year. There was no equivalent revenue received in the 2022 financial year. Grant revenue of $5.1 million increased by $2.0 million from the prior year. The increase predominantly relates to the grant received from the Commonwealth Department of Industry, Science, Energy and Resources of $1.6 million.