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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)

4.1A: Suppliers

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.

4.1B: Grants

2021

2020

$'000

$'000

Non-profit organisations

610

414

Total grants

610

414

4.1C: Finance costs

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.

4.1D: Write-down and impairment of assets and other expenses

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.

4.1E: Income tax expense/(benefit)

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

4.2A: Revenue from contracts with customers

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

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

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).

4.2D: Revenue from Government - departmental appropriations

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.