Note 4: Financial Performance
This section analyses the financial performance of the Attorney-General's Department for the period ended 30 June 2021.
4.1 Expenses (excluding employee benefits expenses)
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
Goods and services supplied or rendered | ||
Accommodation expenses | 6,509 | 7,314 |
Audit fees - internal | 298 | 228 |
Audit fees - Australian National Audit Office | 495 | 495 |
Consultants | 5,418 | 4,318 |
Contractors | 6,591 | 4,920 |
General office | 5,666 | 5,938 |
Information technology and communications | 12,274 | 11,713 |
Labour hire | 3,305 | 4,139 |
Legal fees 1 | 12,179 | 12,383 |
Library expenses | 1,972 | 2,129 |
Payments and contributions to external bodies | 10,360 | 7,818 |
Recruitment expenses | 1,799 | 1,504 |
Training and professional development | 2,217 | 1,834 |
Travel | 950 | 3,158 |
Total goods and services supplied or rendered | 70,033 | 67,891 |
Goods supplied | 2,426 | 3,778 |
Services rendered | 67,607 | 64,113 |
Total goods and services supplied or rendered | 70,033 | 67,891 |
Other suppliers | ||
Operating lease rentals | 678 | 2,870 |
Workers' compensation expenses | 845 | 597 |
Total other suppliers | 1,523 | 3,467 |
Total suppliers | 71,556 | 71,358 |
The department has short-term lease commitments of $28.277m at 30 June 2021 (2020: $26.022m).
The above lease disclosures should be read in conjunction with the accompanying notes 4.1C, 6.2A and 6.4A.
Accounting Policy
Short-term leases and leases of low-value assets
The department has elected not to recognise right-of-use assets and lease liabilities for short-term leases of assets that have a lease term of 12 months or less and leases of low-value assets (less than $10,000). The department recognises the lease payments associated with these leases as an expense on a straight-line basis over the life of lease.
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
Non-profit organisations | 610 | 414 |
Total grants | 610 | 414 |
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
Interest on lease liabilities | 5,098 | 5,437 |
Unwinding/(remeasurement) of discount | (2) | 2 |
Total finance costs | 5,096 | 5,439 |
Accounting Policy
All borrowing costs are expensed as incurred.
Write-down of property, plant and equipment | 43 | 6 |
Revaluation decrements | 39 | − |
Act of grace payments | 4,423 | 10,259 |
Written-down value of fitout to other agencies 1 | 586 | − |
Resources provided free of charge 2 | − | 1,137 |
Total write-down and impairment of assets and other expenses | 5,091 | 11,402 |
1. During 2020–21, the department vacated the National Operations Centre, Symonston, ACT and transferred the remaining lease obligations and fitout to another Government agency at no cost.
2. To support the Commonwealth’s whole-of-government approach in responding to the COVID-19 pandemic, the department redeployed staff to Services Australia and other departments and agencies. The amount shown as resources provided free of charge represents the total remuneration of those staff transferred.
Competitive neutrality - Australian Government Solicitor | − | (230) |
Accounting Policy
The Australian Government Solicitor provided services on a for-profit basis up to 30 June 2019 and was subject to the Australian Government’s Competitive Neutrality Policy. The income tax expense/(benefit) above reflects the accounting effect of income tax on the taxable activities of the AGS. Where applicable, amounts are recognised as payable to the Australian Government in the form of company income tax under the Income Tax Assessment Acts had they applied. These amounts have been paid or are payable by the department to the Official Public Account.
4.2 Revenue and gains
2021 | 2020 | |
$'000 | $'000 | |
OWN SOURCE REVENUE | ||
4.2A: Revenue from contracts with customers | ||
Sale of goods | 80 | 85 |
Rendering of services | 154,845 | 147,559 |
Total revenue from contracts with customers | 154,925 | 147,644 |
Major product/service line: | ||
Service delivery | 154,925 | 147,644 |
154,925 | 147,644 | |
Type of customer: | ||
Australian Government entities (related parties) | 147,241 | 143,541 |
State and Territory Governments | 4,392 | 1,485 |
Non-government entities | 3,292 | 2,618 |
154,925 | 147,644 | |
Timing of transfer of goods and services: | ||
Over time | 153,545 | 145,951 |
Point in time | 1,380 | 1,693 |
154,925 | 147,644 |
Accounting Policy
Revenue from the sale of goods is recognised when control has been transferred to the buyer.
The following is a description of principal activities from which the department generates its revenue:
- The majority of AGS revenue consists of fees for the provision of legal services. AGS also has a number of small additional streams including revenue from training programs. The bulk of AGS’ services are provided to Commonwealth entities. AGS also provides legal services to a number of other clients including universities and state and local governments. As the majority of AGS’ customers are within the Commonwealth, collection risks are minimal; and
- The department also receives revenue in the form of annual subscriptions from Commonwealth entities to access the Whole of Australian Government Legal Services Panel.
The transaction price is the total amount of consideration to which the department expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.
Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed during the financial year and at end of the reporting period. Impairment allowances are made when collectability of the debt is no longer probable.
4.2B: Other revenue | ||
Resources received free of charge - Australian National Audit Office 1 | 495 | 495 |
1. The ANAO provides audit services that are funded from Government appropriation. This amount of $0.495m (2020: $0.495m) reflects the value of these services to the department.
GAINS
4.2C: Other gains | ||
AGS impairment of financial assets | 554 | 1,134 |
554 | 1,134 |
Accounting Policy
Resources received free of charge
Resources received free of charge are recognised as revenue when, and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.
Resources received free of charge are recorded as either a revenue or a gain depending on their nature. Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another Government agency or authority as a consequence of a restructuring of administrative arrangements (Refer Note 9.2).
2021 | 2020 | |
|---|---|---|
$'000 | $'000 | |
4.2D: Revenue from Government - departmental appropriations | 227,524 | 213,111 |
Accounting Policy
Revenue from Government
Amounts appropriated for departmental outputs for the year (adjusted for any formal additions and reductions) are recognised as revenue from Government when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned.
Appropriations receivable are recognised at their nominal amounts.
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https://www.transparency.gov.au/annual-reports/attorney-generals-department/reporting-year/2020-21-52