40  Annual Report 20  Contingencies The Law Commission has no contingent liabilities or assets at balance date 30 June 2009. (2008: nil) 21 Capital management The Law Commission’s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented by net assets. The Law Commission is subject to the financial management and accountability provisions of the Crown Entities Act 2004, which impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the use of derivatives. The Law Commission manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities, investments and general financial dealings to ensure the Law Commission effectively achieves its objectives and purpose whilst remaining a going concern. 22  Explanation of significant variances against budget Explanations for significant variances from the Law Commission’s budgeted figures in the Statement of Intent (SOI) are as follows: Statement of financial performance The Commission received the significant reference to review the regulatory framework for the supply and sale of liquor after the SOI was published. Key stakeholder agencies were involved in the development of the project structure as original timelines anticipated full project resourcing by 2009/10 (Funding for this project allocated to the current financial year was $0.584m.) Following the election, the Commission reprioritised resources to meet the new timelines identified for the Government’s priority projects. The effect of this was the deferral of a number of projects with a consequential reduction in direct project costs across the year. In addition, the resourcing contribution of stakeholder agencies to the liquor project reduced the call on project funding in this finan Additional funding of $0.233m was applied to completing the work of the Sentencing Establishment Unit. Statement of financial position The cash position at year end exceeded budget estimates. This is the result of additional funding received for the liquor project and