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Note 3 Financial Performance

Note 3A: Employee Benefits

2019

2018

$

$

Wages and salaries

8,155,487

8,433,719

Superannuation - defined contribution plans

795,330

826,427

Leave and other entitlements

507,660

671,775

Separation and redundancies

144,318

79,805

Other employee benefits

-

75

Total employee benefits

9,602,795

10,011,800

Accounting Policy

Superannuation
The staff of the Army and Air Force Canteen Service are members of self-selected superannuation funds.

The Army and Air Force Canteen Service makes employer contributions to the employees’ superannuation schemes at rates determined by legislation. The Army and Air Force Canteen Service accounts for the contributions as if they were contributions to defined contribution plans.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final month of the year. Refer to Note 7B.

Note 3B: Suppliers

2019

2018

$

$

Goods and services supplied or rendered

Cost of goods sold

17,002,540

18,619,792

Total goods and services supplied or rendered

17,002,540

18,619,792

Other suppliers

Operating lease rentals in connection with

External parties

Minimum lease payments

102,654

112,934

Workers compensation expenses

153,497

481,061

Total other suppliers

256,151

593,994

Total suppliers

17,258,692

19,213,786

Accounting Policy
Leases
A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risk and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.
The Army and Air Force Canteen Service only had operating leases in the 2018 financial year and its comparative year. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Commitments for minimum lease payments in relation to

2019

2018

non-cancellable operating leases are payable as follows:

$

$

Within 1 year

111,345

132,040

Between 1 to 5 years

100,790

198,472

More than 5 years

-

-

Total operating lease commitments

212,135

330,512

Note 3C: Licenced Facilities on Base

2109

2018

$

$

Licenced facilities on base

587,552

558,314

Total licenced facilities on base

587,552

558,314

Licensed facilities on base was the cost of the rent and utilities that were used by licenced traders on base. The AAFCANS headquarters on base was estimated on the cost of renting a similar space in the area. These facilities were provided free of charge by the Department of Defence. The revenue in relation to the provision of these facilities is disclosed in Note 4B.

Note 3D: Other Expenses

2019

2018

$

$

Computer support and expenses

537,264

306,592

Bank fees

326,919

289,832

Selling, stationery, postage and courier

194,967

199,496

Vehicle running costs

193,919

167,776

Sundry expense

161,794

159,708

Travel

156,009

188,054

Recruitment fees and agency staff

111,485

73,937

Support office facilities

93,400

121,593

Insurance

64,152

56,252

Professional services

44,775

189,814

External Audit fees

38,000

38,000

Telephone and internet communications

36,755

68,242

Legal Fees

16,229

4,619

Fringe benefits tax

472

33,588

Defence amenities expenses

-

(91)

Internal Audit Fees

-

-

Total other expenses

1,976,142

1,897,413