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