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2. Financial performance

2.1 Expenses

2020

2019

$’000

$’000

2.1(a): Employee benefits

Wages and salaries

13,382

11,989

Superannuation – defined contribution plans

1,427

1,298

Leave and other entitlements

1,405

1,118

Separation and redundancies

-

95

Total employee benefits

16,214

14,500

2.1(b): Supplier expenses

2020

2019

$'000

$'000

Goods and services supplied or rendered

Secondments, casual staff, contractors and consultants

4,546

3,562

NAPLAN item development and testing

4,428

5,296

Website development and maintenance

203

208

Travel and accommodation

802

1,239

Staff related expenses – payroll tax and recruitment

950

1,152

Consultants – Curriculum Development

1,387

651

Office infrastructure

352

86

IT expenses

1,577

1,259

Audit fees payable to the Australian National Audit Office

43

47

Legal Expenses

175

196

Other operational expenditure

1,052

1,047

Total Goods and services supplied or rendered

15,515

14,743

Goods supplied

525

910

Services supplied

14,990

13,833

Total goods and services supplied or rendered

15,515

14,743

Other suppliers

Operating lease rentals (1)

0

959

Short term and low value leases

112

0

Workers compensation expense

167

213

Total other suppliers

279

1,171

Total Suppliers

15,794

15,914

Accounting Policy: Employee benefits:

Accounting policies for employee related expenses is contained in the People and relationships section. 1. The Entity has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117. The Entity has short-term lease commitments of $0 as at 30 June 2020.

Accounting Policy: Short-term leases and leases of low-value assets:

ACARA 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 of less and leases of low-value assets (less than $10,000). ACARA recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2.1(c): Finance costs

2020

2019

$’000

$’000

Interest on lease liability

71

0

Total finance costs

71

0

2.1(d): Write-down of assets

2020

2019

$’000

$’000

Loss on disposal

100

0

Total write-down of assets

100

0

2.2 Revenue

2020

2019

$’000

$’000

2.2(a): Revenue

Sale of goods

0

0

Rendering of services

22,251

17,274

Total revenue

22,251

17,274

Disaggregation of revenue

Major product / service line:

Operating Contributions - State and Territories

11,930

13,082

Funded Projects

10,321

4,192

22,251

17,274

Type of customer:

Australian Commonwealth entities

7,809

3,848

State and Territory Governments

14,422

13,362

Non-Government entities

20

64

22,251

17,274

Revenue from Jurisdictions and Government

Revenue from jurisdictions is recognised when the following applies.

  ACARA has obtained control of the revenue, and the revenue can be reliably measured.

  It is detailed in the contract agreement that economic benefits associated with the transaction will flow to the entity in full.

  The stage of completion of the transaction at the end of the reporting period, can be measured reliably, and is specifically referenced in the contract agreement.

  The costs incurred for the transaction and cost to complete the transaction can be measured reliably, and milestones are detailed in the contract agreement.

  When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised in full in the period.

The principal activities of ACARA are detailed in the objectives of the entity (S1.1). ACARA is funded to operate as a government entity, and also complete projects as required by the governing jurisdictions. Where a performance obligation is satisfied over time, it will be stipulated in the applicable agreement, if not recognition is determined upon funds transfer. Where no specific performance obligation is stipulated revenue is recognised on receipt in accordance with AASB 1058.

The transaction price is the total amount of consideration to which ACARA expects to be entitled in exchange for transferring services to a customer. The consideration promised in a contract with a jurisdiction may include fixed amounts, variable amounts, or both. ACARA has applied the practical expedient (AASB 15.121) to the financial statements, as all remaining performance obligations will be completed by June 2021.

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 at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

2.2(b): Interest revenue

2020

2019

$’000

$’000

Interest revenue - Term deposits and bank accounts

180

260

Total interest revenue

180

260

Interest Revenue

Interest revenue is recognised using the effective interest method.