03 Financial Statements NOTE 12: RELATED PARTY DISCLOSURES

CEFC ANNUAL REPORT / 2014–15

Note 12: Related Party Disclosures

Transactions with Directors or Director-Related Entities

The following table provides the total amount of transactions that were entered into with director- related parties during the financial year ended 30 June 2015. The directors involved took no part in the relevant decisions of the Board.

 

Director

Related Party

Transaction

Year

Purchase from Related Party

$'000

Receipt from Related Party

$'000

Martijn Wilder AM

Baker & McKenzie

Staff secondment

2015

-

-

Martijn Wilder AM

Baker & McKenzie

Legal advice

2015

7

-

Martijn Wilder AM

Baker & McKenzie

Staff secondment

2014

301

-

Martijn Wilder AM

Baker & McKenzie

Legal advice

2014

151

-

 

Mr Wilder was also the Chairman of LCAL.

Transactions with Other Related Entities

The following transactions were entered into with other related parties under common control during the financial year ended 30 June 2015:

Department of the Treasury:

The Department of the Treasury has provided administrative funding totalling $Nil (2014: $8 million) as a corporate Commonwealth entity payment for operational expenditures (refer Note 4D).

The Department of the Treasury were instrumental in establishing the operational capability of the Corporation in 2013. In establishing the Corporation, The Department of the Treasury incurred costs on behalf of, and for the benefit of, the Corporation. The final $14,000 of these costs were reimbursed to the Department of the Treasury by the Corporation during the year ended 30 June 2014.

Low Carbon Australia Limited:

The Corporation and LCAL worked co-operatively to achieve the practical integration of the two entities as announced by both Boards, and endorsed by the Australian Government on 19 December 2012. This arrangement included LCAL incurring approximately $Nil (2014: $321,000) of costs on behalf of the Corporation and charging to the Corporation during the year ended 30 June 2014 matters such as rental of offices, third party IT infrastructure support services and web-site development. The $321,000 incurred by LCAL in 2014 was included in the appropriate categories of expenditure in the statement of comprehensive income rather than as a single line item of supplier expenses: rendering of services – related parties, and was reimbursed by the Corporation prior to 30 June 2014. $Nil remained outstanding and owing to LCAL at 30 June 2015 or 30 June 2014.

Certain staff continued to provide services to LCAL through 30 June 2014 to ensure that Corporation and its Board were able to meet their remaining contractual, portfolio management, regulatory, reporting and administrative obligations. The entities have estimated that the value of the work undertaken by the Corporation’s staff up to 30 June 2015 on behalf of LCAL was approximately $Nil (2014: $98,000). LCAL was not charged for this work in light of the significant work undertaken by LCAL to assist in the establishment of the Corporation prior to 30 June 2013.

As part of a restructuring of administrative arrangements, LCAL relinquished net assets totalling $18,398,000 (2014: $68,627,000) to the Corporation for $Nil consideration. This was recognised by CEFC as an equity contribution. The distribution of net assets from LCAL was undertaken in accordance with the wind-up provisions in the Constitution of that entity and details of the net assets transferred have been included in Note 18 – Contributed Equity.