Note: This is a summary report. Audited financial reports for NICNAS are included in the DoHA Annual Report 2005-06.

INCOME STATEMENT for the year ended 30 June 2006

2006 $'000

2005 $'000

INCOME

Revenue

Revenues from Government see Note 4A

349

897

Goods and services see Note 4B

7,881

6,618

Other revenues see Note 4C

94

63

Total Income

8,324

7,578

EXPENSES

Employees see Note 5A

4,384

3,282

Suppliers see Note 5B

3,493

2,341

Depreciation and amortisation see Note 5C

75

165

Write down and impairment of assets see Note 5D

2

6

Total Expenses

7,954

5,794

Operating Result

370

1,784

Operating result attributable to the Australian Government

370

1,784

Net credit (debit) to the asset revaluation reserve

-

68

Net credit (debit) to equity due to revaluation

-

(35)

Total Revenues, Expenses and Valuation Adjustments

Attributable to Members of the Parent Entity and

Recognised Directly in Equity

-

33

Net Surplus or (Deficit) Attributable to the Australian Government

370

1,817

The above statement should be read in conjunction with the accompanying notes.

BALANCE SHEET as at 30 June 2006

2006 $'000

2005 $'000

ASSETS

Financial Assets

Cash see Note 6A

78

1,462

Receivables see Note 6B

5,506

3,266

Total Financial Assets

5,584

4,728

Non-Financial Assets

Buildings - Leasehold Improvements see Notes 7A, B

51

77

Infrastructure, plant and equipment see Notes 7A, B

189

104

Intangibles see Note 7c

289

-

Other non-financial assets 7D

13

11

Total Non-Financial Assets

542

192

Total Assets

6,126

4,920

LIABILITIES

Provisions

Employees - see Note 8A

1,116

881

Total Provisions

1,116

881

Payables

Suppliers see Note 9A

586

246

Other Payables see Note 9B

1,874

1,613

Total Payables

2,460

1,859

Total Liabilities

3,576

2,740

NET ASSETS

2,550

2,180

EQUITY

Contributed equity

-

-

Reserves

68

68

Retained surpluses

2,482

2,112

Total Equity

2,550

2,180

Current Assets

5,597

4,739

Non-Current Assets

529

181

Current Liabilities

2,767

2,139

Non-Current Liabilities

809

601

The above statement should be read in conjunction with the accompanying notes.

STATEMENT OF CASH FLOWS for the year ended 30 June 2006

2006 $'000

2005 $'000

OPERATING ACTIVITIES

Cash received

Goods and services

7,695

7,036

Appropriations

349

897

Net GST received from ATO

294

230

Other

91

-

Total Cash received

8,429

8,163

Cash used

Employees

4,204

3,368

Suppliers

3,183

2,733

Cash transferred to the OPA

2,000

3,000

Total Cash used

9,387

9,101

Net Cash from (or used by) Operating Activities see Note 10

(958)

(938)

INVESTING ACTIVITIES

Cash received

Proceeds from sales of property, plant and equipment

-

-

Total Cash received

-

-

Cash used

Purchase of property, plant and equipment

135

10

Purchase of intangibles

291

-

Total Cash used

426

10

Net Cash from or (used by) Investing Activities

(426)

(10)

FINANCING ACTIVITIES

Cash received

Appropriations - contributed equity

-

-

Proceeds from loan

-

-

Total Cash received

-

-

Cash used

Repayment of debt

-

-

Total Cash used

-

-

Net Cash from or (used by) Financing Activities

-

-

Net increase / (decrease) in cash held

(1,384)

(948)

Cash at the beginning of the reporting period

1,462

2,410

Cash at the end of the reporting period see Note 6A

78

1,462

The above statement should be read in conjunction with the accompanying notes.

NICNAS STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2006

Accumulated Results

Asset Revaluation Reserve

Contributed Equity

Total Equity

2006

2005

2006

2005

2006

2005

2006

2005

$'000

$'000

$'000

$'000

$'000

$'000

$'000

$'000

Opening Balance

2,112

347

68

-

-

-

2,180

347

Adjustment for errors

-

-

-

-

-

-

-

-

Adjustment for changes in Accounting Policies

-

16

-

-

-

-

-

16

Adjusted Opening Balance

2,112

363

68

-

-

-

2,180

363

Income and Expense

Revaluation adjustment

-

-

-

68

-

-

-

68

Subtotal income and expenses recognised directly in equity

-

-

-

68

-

-

-

68

Net Operating Result

370

1,784

-

-

-

-

370

1,784

Total Income and Expense

370

1,784

-

-

-

-

370

1,784

Transactions with Owners

Distributions to owners

Returns on Capital

-

-

-

-

-

-

-

-

Dividends

-

-

-

-

-

-

-

-

Returns of Capital

-

-

-

-

-

-

-

-

Restructuring

-

-

-

-

-

-

-

-

Other (give details)

-

(35)

-

-

-

-

-

(35)

Contributions by Owners

-

-

-

-

-

-

-

-

Appropriation (equity injection)

-

-

-

-

-

-

-

-

Other (give details below)

-

-

-

-

-

-

-

-

Restructuring

-

-

-

-

-

-

-

-

Sub-total Transactions with Owners

-

(35)

-

-

-

-

-

(35)

Transfers between equity components

-

-

-

-

-

-

-

-

Closing balance at 30 June 2006

2,482

2,112

68

68

-

-

2,550

2,180

The above statement should be read in conjunction with the accompanying notes.

SCHEDULE OF COMMITMENTS as at 30 June 2006

2006 $'000

2005 $'000

BY TYPE

Capital Commitments

Infrastructure, plant and equipment

54

-

Intangibles

-

-

Total Capital Commitments

54

-

Other Commitments

Operating leases 1

597

939,000

Other

568

295,000

Total Other Commitments

1,165

1,234,000

Commitments Receivable

(111)

(112,000)

Net Commitments by Type

1,108

1,122,000

BY MATURITY

Capital Commitments

One year or less

54

-

From one to five years

-

-

Over five years

-

-

Total Capital Commitments

54

-

Operating Lease Commitments

One year or less

360

345,000

From one to five years

237

594,000

Over five years

-

-

Total Operating Lease Commitments

597

939,000

Other Commitments

One year or less

559

142,000

From one to five years

9

153,000

Over five years

-

-

Total Other Commitments

568

295,000

Commitments Receivable

(111)

(112,000)

Net Commitments by Maturity

1,108

1,122,000

The above schedule should be read in conjunction with the accompanying notes.

NB: Commitments are GST inclusive where relevant.

1 Operating Leases included are effectively non-cancelable and comprise:

Leases for office accommodation

Lease payments for the NICNAS lease are subject to fixed annual increases of 3.5% occurring on 21 February 2006 and 21 February 2007. The initial period of the office accommodation lease is still current with a commencement date of 21 February 2005 and a lease end date of 20 February 2008. There is an option to renew for a further two (2) years after the current lease end date.

Leases for motor vehicles

Lease payments are fixed for the term of the lease. There are no lease renewal or purchase options. Penalties exist upon the early return of a vehicle or when excessive kilometres are traveled.

IT infrastructure

IT infrastructure was refreshed based on a lease period of three years for desktop equipment and five years for mainframe and midrange equipment.

SCHEDULE OF CONTINGENCIES as at 30 June 2006

Contingent Liabilities

Claims for damages or costs

TOTAL

2006

2005

2006

2005

Balance from previous period

-

-

-

-

New

-

-

Re-measurement

-

-

-

-

Liabilities crystallised

-

-

-

-

Obligations expired

-

-

-

-

Total Contingent Liabilities

-

-

-

-

Contingent Assets

Claims for damages or costs

TOTAL

Balance from previous period

-

-

-

-

New

-

-

-

-

Re-measurement

-

-

-

-

Assets crystallised

-

-

-

-

Expired

-

-

-

-

Total Contingent Assets

-

-

-

-

Net Contingencies

-

-

-

-

The above schedule should be read in conjunction with the accompanying notes.

Details of each class of contingent liabilities and assets, including those not included above because they cannot be quantified or are considered remote, are disclosed in Note 12: Contingent Liabilities and Assets

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2006

Note

Description

1

Summary of Significant Accounting Policies

2

The impact of the transition to AEIRS from previous AGAAP

3

Events Occurring after Reporting Date

4

Operating Revenues

5

Operating Expenses

6

Financial Assets

7

Non-Financial Assets

8

Provisions

9

Payables

10

Cash Flow Reconciliation

11

Financial Instruments

12

Contingent Liabilities and Assets

13

Executive Remuneration

14

Average Staffing Levels

15

Act of Grace Payments, Waivers and Defective Administration Scheme