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Notes to the Financial Statements

1. Funding

This section identifies the AEC's funding structure and the funds available to the AEC.

1.1 Revenue from Government

Accounting Policy

Revenue from Government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when the AEC 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.

Notes

2020

2019

$'000

$'000

1.1A: Revenue From Government

Appropriations

Departmental Appropriation - operating

1.1B

129,568

387,611

Departmental Special Appropriations

1.1D

14,900

14,900

Total revenue from Government

144,468

402,511

1.1B: Annual Appropriations ("recoverable GST exclusive")

Ordinary annual services

Annual appropriation

Operating

129,568

387,611

Section 74 receipts

39,189

20,553

Total operating appropriation

168,757

408 ,164

Capital Budget

10,864

13,572

Total

179,621

421,736

Appropriation applied

Operating1

(242,253)

(365,654)

Capital

Departmental Capital Budget

(6,550)

(14,619)

Total capital appropriation applied

(6,550)

(14,619)

Total appropriation applied

(248,803)

(380,273)

Variance

(69,182)

41,463

1. The variance relates to the timing of the federal election and associated receipt/payment of invoices. Expenses were incurred in 2018-19 but the associated drawdowns occurred early in the 2019-20 financial year from remaining 2018-19 appropriation.

2. An amount of $4.000m is held in quarantine from the Departmental Appropriation Act (No. 1) - Operating.

1.1C: Unspent Annual Appropriations ('Recoverable GST exclusive')

2020

2019

$'000

$'000

Departmental

Cash and cash equivalents

Appropriation Act 1 - 2019-20 - Cash

1,490

0

Appropriation Act 1 - 2018-19 - Cash

0

2,402

Total Cash and cash equivalents

1,490

2,402

Appropriation Receivable

Appropriation Act 1 -- 2019-20

2,552

0

Appropriation Act 3 -- 2019-20

1,719

0

Appropriation Act 1 -- 2019-20 - Departmental Capital Budget

6,337

0

Supply Act 1 - 2019-20

50,782

0

Supply Act 1 - 2019-20 - Departmental Capital Budget

4,527

0

Special Appropriation - 2019-20

14,900

0

Appropriation Act 1 - 2018-19

6,550

133,180

Appropriation Act 3 - 2018-19

0

1,919

Appropriation Act 1 - 2018-19 - Departmental Capital Budget

7,022

13,572

Appropriation Act 1 - 2017-18 1

4,000

4,000

Appropriation Act 3 - 2017-18 - Departmental Capital Budget

6,356

6,356

Total Appropriations Receivable

104,745

159,027

Total departmental

106,235

161,429

1. Includes $4.000m of appropriations that are quarantined and unavailable for AEC use.

1.1D: Special Appropriations ('Recoverable GST exclusive')

Appropriation applied

2020

2019

$'000

$'000

Authority

Commonwealth Electoral Act 1918 (Departmental)

0

14,900

Commonwealth Electoral Act 1918 (Administered)

15,984

55,077

Total special appropriations applied

15,984

69,977

No entities spent money from the Consolidated Revenue Fund on behalf of the AEC.

1.2 Own-Source Revenue and Gains

2020

2019

$'000

$'000

Own-Source Revenue

1.2A: Rendering of Services

Rendering of services1

10,234

9,873

Rendering of services - Other

1,793

2,418

Total rendering of services

12,027

12,291

Disaggregation of revenue from contracts with customers

Type of customer

Australian Government Entities (related parties)

1,705

2,367

State and Territory Governments

10,234

9,873

Non-government entities

89

52

12,027

12,291

1. Represents revenue received from state governments for the management and provision of the electoral roll.

Accounting Policy

AEC classifies goods and service based agreements as within the scope of AASB 15 when all the following conditions are satisfied:

  • There is an agreement that has been approved by all parties to the agreement;
  • The obligations of each party under the agreement can be identified;
  • A pattern of transfer of services can be identified;
  • The agreement has commercial substance;
  • It is highly probable that AEC will collect the payments.


AEC recognises goods and services revenue within the scope of AASB 15 either at a point in time when the performance obligation has been completed or over time with proportionate recognition over the period of the agreement. Consideration can be received in advance of the performance obligation being fufilled in which case an unearned revenue liability is raised in relation to those performance obligations (2.4A: Other Payables).

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

1.2B: Other Revenue

Other

121

98

Resources received free of charge

Remuneration of auditors

100

88

Other

60

63

Total other revenue

281

249

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 revenue or gains depending on their nature.

1.2C: Gains

Makegood gains

40

79

Total gains

40

79

1.3 Special Accounts

2020

2019

$'000

$'000

Services for other Entities and Trust Monies (SOETM)

Balance brought forward from previous period

4,273

1,328

Increases

48

3,483

Total Increases

48

3,843

Available for payments

4,321

4,811

Decreases

Administered

1,408

538

Total Administered

1,408

538

Total decreases

1,408

538

Total balance carried to the next period

2,913

4,273

Balance represented by:

Cash held in AEC bank accounts

0

0

Cash held in the Official Public Account

2,913

4,273

1. Appropriation: Public Governance, Performance and Accountability Act 2013 section 80. Establishing Instrument: Financial Management and Accountability Act 1997 section 20. Purpose: for the expenditure of monies temporarily held in trust or otherwise for the benefit of a person other than the Commonwealth. For example, candidate deposits.

2. The entity has a services for other entities and trust monies special account. This account was established under section 78 of the Public Governance, Performance and Accountability Act 2013 (PGPA Act) Determination 2012/04 dated 30 May 2012. For the year ended 30 June 2020 the account has a balance of $2.913m.

3. The closing balance of special account services for other Entities and Trust Monies (SOETM) includes amounts held in trust: $2.913m in 2020, and $4.273m in 2019. See 5.6A Assets Held in Trust for more information.

1.4 Net Cash Appropriation Arrangements

2020

2019

$'000

$'000

Total comprehensive (loss) less depreciation/amortisation

expenses previously funded through revenue appropriations 2,3

(8,046)

(7,119)

Plus: depreciation/amortisation expenses previously funded through revenue appropriation

(12,424)

(12,367)

Plus: depreciation right-of-use assets

(12,814)

0

Less: principal repayments - operating leases

11,953

0

Total comprehensive (loss) - as per the Statement of

Comprehensive Income

(21,331)

(19,486)

1. From 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. The AEC now receives a separate capital budget provided through equity appropriations. Capital budgets are to be appropriated in the period when cash payment for capital expenditure is required.

2. The AEC's loss in 2019-20 was a result of the timing of the Federal Election in May 2019 which resulted in expenditure across two financial years, 2018-19 and 2019-20, while the AEC was only funded for the election in 2018-19. The AEC's ongoing annual funding model presumes a federal election is conducted solely within a financial year and does not consider the unpredictable nature of the timing of an event. As a result the AEC often reports an operating loss due to the timing of electoral events.

3. The inclusion of depreciation/amortisation expenses related to ROU leased assets and the principal repayments-lease assets amount reflects the cash impact as a result of the implementation of AASB 16 Leases. There is no change in appropriation arrangements as a result of the implementation of AASB 16.

Departmental Financial Position and Managing Uncertainties

This section analyses the AEC's assets used to conduct its operations and the operating liabilities incurred as a result and how the AEC manages financial risks related to these and its operating environment. Employee related information is disclosed in the People and Relationships section.

2.1 Financial Instruments

2.1A: Categories of Financial Instruments

2020

2019

$'000

$'000

Financial Assets

Financial assets at amortised cost

Cash and cash equivalents

1,490

2,402

Receivables

880

1,583

Total financial assets at amortised cost

2,370

3,985

Financial Liabilities

Financial liabilities measured at amortised cost

Supplier payables

6,371

71,254

Total financial liabilities measured at amortised cost

6,371

71,254

Total financial liabilities

6,371

71,254

Credit terms for goods and services were within 30 days (2019: 30 days). Settlement of suppliers payable is usually made within 30 days.

Impairment allowance for the period has increased to $11,303 (2019: $10,000) has been recognised in relation to loans and receivables and included in the net cost of service. $11,735 (2019: $16,892) has been written off.

Accounting Policy

Financial assets
Financial Assets at Amortised Cost

Financial assets included in this category need to meet two criteria:

1. the financial asset is held in order to collect the contractual cash flows; and

2. the cash flows are solely payments of principal and interest (SPPI) on the principal outstanding amount.

Amortised cost is determined using the effective interest method.

Effective Interest Method
Income is recognised on an effective interest rate basis for financial assets that are recognised at amortised cost.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period based on Expected Credit Losses, using the general approach which measures the loss allowance based on an amount equal to lifetime expected credit losses where risk has significantly increased, or an amount equal to 12-month expected credit losses if risk has not increased.

The simplified approach for trade, contract and lease receivables is used. This approach always measures the loss allowance as the amount equal to the lifetime expected credit losses.

A write - off constitutes a derecognition event where the write-off directly reduces the gross carrying amount of the financial asset.

Financial liabilities

Financial liabilities are classified as either financial liabilities 'at fair value through profit or loss' or other financial liabilities. Financial liabilities are recognised and derecognised upon 'trade date'.

Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liablility.

Financial Liabilities at Amortised Cost

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

Accounting Judgements and Estimates

Financial assets have been assessed for impairment at the end of the reporting period based on Expected Credit Losses. No credit loss has been identified.

2.2 Other Financial Assets

2.2A: Appropriation Receivable

2020

2019

$'000

$'000

2.2A: Appropriation Receivable

Appropriation Receivables

104,745

159,027

Total Appropriation receivable

104,745

159,027

Accounting Policy

Refer to note 1.1 Revenue from Government.

2.2B: Other Receivables

2.2B: Other Receivable

Statutory receivables

1,396

8,383

Comcare Payments

12

63

Total other receivables

1,408

8,446

Other Receivables are not past due or impaired.

Accounting Policy

Statutory receivables are amounts owed to the AEC from the Australian Taxation Office in relation to the refund of GST collected.

2.3 Non-financial assets

2.3A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles

Leasehold Improvements

Plant & Equipment

Computer Software1

Intellectual Property

Total

$'000

$'000

$'000

$'000

$'000

As at 1 July 2019

Gross book value

9,401

10,594

69,604

2,430

92,059

Accumulated depreciation, amortisation and impairment

(567)

(4,919)

(51,739)

(830)

(58,055)

Total as at 1 July 2019

8,834

5,675

17,865

1,600

33,974

Recognition of right of use asset on initial application of AASB 16

75,315

97

0

0

75,412

Adjusted total as at 1 July 2019

84,149

5,772

17,865

1,600

109,386

Additions

Purchase

480

269

4,686

1,243

6,678

Right-of-use Assets

3,059

0

0

0

3,059

Revaluations and impairments recognised in other comprehensive income

543

340

0

0

883

Impairments recognised in net cost of services

0

0

0

0

0

Depreciation and amortisation

(3,622)

(4,207)

(710)

(3,853)

(12,392)

Depreciation of Right-of-use Assets

(12,814)

(32)

0

0

(12,846)

Other movements

Asset transfers

50

4,878

(7,227)

2,299

0

Disposals

(268)

0

(1,071)

0

(1,339)

Total as at 30 June 2020

71,577

7,020

13,543

1,289

93,429

Total Right-of-use Assets as at 30 June 2020 (included in Table above)

65,560

65

0

0

65,625

Total as at 30 June 2020 represented by

Gross book value

85,272

12,882

65,228

3,673

167,055

Accumulated depreciation, amortisation and impairment

(13,695)

(5,862)

(51,685)

(2,348)

(73,626)

Total as at 30 June 2020

71,577

7,020

13,543

1,289

93,429

1. The carrying amount of computer software included $11.772m of purchased software and $1.770m of internally generated software.

No indicators of impairment were found for property, plant and equipment nor intangibles (2019: nil).

No property, plant and equipment and intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated in this note. On 30 June 2020, an independent valuer conducted the revaluations.

A revaluation increment of $0.543m for leasehold improvements (2019: $2.882m increment) and $0.340m for property, plant and equipment (2019: $2.048m increment) was credited to the asset revaluation surplus by asset class and included in the equity section of the statement of financial position.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets

At 30 June 2020 there were no significant contractual commitments for the acquisition of property, plant, equipment and intangible assets.

Fair Value Measurement

The following tables provide an analysis of assets and liabilities that are measured at fair value. The remaining assets and liabilities disclosed in the statement of financial position do not apply the fair value

Fair Value Measurements 1,2,3

at the end of the reporting period

2020

2019

$'000

$'000

Non-financial assets

Leasehold improvements

6,017

8,834

Plant and equipment

6,955

5,675

1. Fair value measurements occur each financial year.

2. There are no changes in valuation techniques.

3. The remaining assets and liabilities reported by the AEC are not measured at fair value in the Statement of Financial Position.

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property leases taken up by the AEC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the AEC’s leasehold improvements with a corresponding provision for 'make good' recognised.

Lease Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 the AEC has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in the AEC's financial statements.

Revaluations

Following initial recognition at cost, plant and equipment (excluding ROU assets) are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to the AEC, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2020

2019

Leasehold improvements

Lessor of lease term/useful life

Lessor of lease term/useful life

Plant and equipment

5 to 10 years

5 to 10 years

IT equipment

3 to 5 years

3 to 5 years

ROU assets

Lessor of lease term (including extension options) / useful life

n/a

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.


The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the AEC were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition
An item of plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Intangibles

The AEC's intangibles comprise internally developed software, purchased software and intellectual property for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets are amortised on a straight-line basis over its anticipated useful life. The useful lives of the AEC's software are 1 to 10 years (2019: 1 to 10 years) and the useful lives of the AEC's intellectual property are 0 to 4 years (2019: 0 to 4 years).

All intangible assets were assessed for indications of impairment as at 30 June 2020.

2.3B: Inventories

2020

2019

$'000

$'000

Inventories held for distribution

2,007

1,699

Total Inventories

2,007

1,699

Accounting Policy

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition are assigned as follows:

(a) raw materials and stores – purchase cost on a first-in-first-out basis; and

(b) finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

2.3C: Other Non-Financial Assets

2020

2019

$'000

$'000

Prepayments

2,314

3,898

Total other non-financial assets

2,314

3,898

No indicators of impairment were found for other non-financial assets (2019: nil).

2.4 Other Payables and Provisions

2.4A: Other Payables

2020

2019

$'000

$'000

2.4A: Unearned Revenue and Other Payables

Unearned revenue

4,033

0

Salaries and Wages

1,245

999

Superannuation

0

199

Lease incentives

0

1,724

Straight-line leases

0

691

Total other non-financial assets

5,278

3,533

Accounting Policy

Unearned revenue

Refer to 1.2 Own-Source Revenue and Gains

Parental Leave Payments Scheme

Amounts received under the Parental Leave Payments Scheme by the AEC not yet paid to employees were presented as cash and a liability (payable). The total amount received under this scheme was $82,651 (2019: $144,133).

Employee Benefits

Refer to Note 3.2 Employee provisions

Leases

Refer to Note 4.1A: Suppliers.

2.4B: Other Provisions

Provision for restoration

$'000

As at 1 July 2019

5,775

Revaluation of provision

(2,261

Unwinding of discount or change in discount rate

(40)

Total as at 30 June 2020

3,474

Accounting Judgements and Estimates

For the property leases where the Office has an obligation to restore the premises to their original condition, the Office assesses the value of the provision for restoration in line with the relevant clauses of the lease, based on estimated costs per square metre provided by the Australian Government property manager. The AEC revalues the provision at the end of each financial year to reflect the present value of this obligation.

2.5 Interest Bearing Liabilities

2020

2019

$'000

$'000

2.5A: Leases

Lease Liabilities

67,259

0

Total Leases

67,259

0

1. The AEC has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated.

2.6 Contingent Assets and Liabilities

Contingent Assets

Claims for

damages or costs

Total

2020

2019

2020

2019

$'000

$'000

$'000

$'000

Contingent assets

New contingent assets recognised

170

0

170

0

Total contingent assets

170

0

170

0

Net contingent assets

170

0

170

0

Quantifiable Contingencies

At 30 June 2020, the AEC had a quantifiable contingent asset of $0.170m (2019: nil) in respect of claims for legal costs. This amount represents an estimate of AEC's costs based on actual costs incurred.

Unquantifiable Contingencies

At 30 June 2020, the AEC had no unquantifiable contingencies (2019: nil).

Significant Remote Contingencies

The AEC has no significant remote contingencies (2019: nil).

Accounting Policy

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.

People and relationships

This section describes a range of employment and post employment benefits provided to our people and our relationships with other key people.

3.1 Employee Benefits

2020

2019

$'000

$'000

Wages and Salaries1

58,176

157,783

Superannuation

Defined contribution plans

7,079

6,959

Defined benefit plans

7,487

7,359

Leave and other entitlements

9,815

4,998

Separation and redundancies

513

722

Total employee benefits

83,070

177,821

1. The AEC engaged a significant number of additional staff on a temporary basis to deliver the 2019 federal election

3.2 Employee provisions

2020

2019

$'000

$'000

Leave

22,505

21,029

Total employee provisions

22,505

21,029

Accounting Policy

Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.

Other long-term employee benefits are measured as net total of the present value of the defined benefit obligation at the end of the reporting period minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the entity's superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined by reference to the shorthand method as at 30 June 2020. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

The AEC's staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian Government.

The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The AEC makes employer contributions to the employees' defined benefit superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The AEC 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.

3.3 Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the AEC, directly or indirectly, including any director (whether executive or otherwise) of the AEC. The AEC has determined the key management personnel to be the Electoral Commissioner, Deputy Electoral Commissioner and the two First Assistant Commissioners. Key management personnel remuneration is reported in the table below:

2020

2019

$'000

$'000

Short-term employee benefits

1,389

1,368

Post-employment benefits

230

216

Other long-term benefits

35

32

Termination benefits

280

0

Total key management personnel remuneration expenses1

1,934

1,616

The total number of key management personnel that are included in the above table is 5 (2019: 4).

1. The above key management personnel remuneration excludes the remuneration and other benefits of the Portfolio Minister. The Portfolio Minister's remuneration and other benefits are set by the Remuneration Tribunal and are not paid by the AEC.

3.4 Related Party Disclosures

Related party relationships:

The AEC is an Australian Government controlled entity. Related parties to the AEC are Key Management Personnel, the Portfolio Minister and Executive, and other Australian Government entities.

Transactions with related parties:

Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.

Significant transactions with related parties can include:
● the payments of grants or loans;
● purchases of goods or services;
● receipts to provide services;
● payments for superannuation; and
● asset purchases, sales transfers or leases.

Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.

Other information

This section includes additional financial information that is either required by AAS or the PGPA FRR or is relevant to assist users in understanding the financial statements.

4.1 Expenses

4.1A: Suppliers

2020

2019

$'000

$'000

4.1A: Suppliers

Goods and services supplied or rendered

Consultants

185

3,367

Contractors

24,291

81,435

Travel

1,699

6,535

It services

13,214

21,591

Employee related expenses

1,699

3,980

Inventory

201

17,949

Furniture and venue hire

1,672

14,329

Property

13,779

11,048

Mali and Freight

8,714

31,005

Office Supplies

265

2,216

Advertising

3,560

22,212

Printing

0

167

Other

1,335

1,471

Total goods and services supplied or rendered

70,614

217,305

Goods supplied

4,097

71,704

Services rendered

66,517

145,601

Total goods and services supplied or rendered

70,614

217,305

Other suppliers

Operating lease rentals1

0

26,199

Low value leases

29

0

Lease restoration

0

233

Workers compensation expenses

249

1,530

Total other suppliers

278

27,962

Total suppliers

70,892

245,267

1 AEC 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.

Accounting Policy

Short-term leases and leases of low-value assets
AEC 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 entity recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

4.1B: Impairment loss allowance on financial instruments

2020

2019

$'000

$'000

4.1B: Impairment loss allowance on financial instruments

Impairment on trade and other receivables

12

17

Total impairment on financial instruments

12

17

4.1C: Finance Costs

2020

2019

$'000

$'000

4.1C: Finance Costs

Interest on lease liabilities

740

0

Total Finance Costs

740

0

The AEC has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB117

Items Administered on Behalf of Government

This section analyses the activities that the AEC does not control but administers on behalf of the Government. Unless otherwise noted, the accounting policies adopted are consistent with those applied for departmental reporting.

5.1 Administered - Expenses

5.1A: Other Expenses

2020

2019

$'000

$'000

5.1A: Other Expenses

Refunds - electoral fines / penalties

0

9

Political Party funding

0

79,493

Total other expenses

0

79,502

5.2 Administered - Income

Revenue

Non-Taxable Revenue

5.2A: Fees and Fines

2020

2019

$'000

$'000

5.2A: Fees and Fines

Electoral fines/penalties

2,847

1,026

Total fees and fines

2,847

1,026

5.2B Other

2020

2019

$'000

$'000

5.2B: Other

Party Registration

5

27

Change in accounting estimates - trade creditors and accruals

9,017

0

Total other income

9,022

27

Change in accounting estimate [$9.017m in 2020, nil 2019] relates to revision of accounting estimates in current year as the claims of the political party payments are now finalised. The previous trade creditors and accruals balance was based on best available information as at 30 June 2019.

Accounting Policy

All administered revenues are revenues relating to ordinary activities performed by the AEC on behalf of the Australian Government. As such, administered appropriations are not revenues of the individual entity that oversees distribution or expenditure of the funds as directed.

Fines are charged for non-voters of federal elections, by-elections and referendums. Administered fee revenue is recognised when received.

Each nomination for the Senate and the House of Representatives must be accompanied by a deposit.

5.3 Administered - assets and liabiities

5.3A: Cash and Cash Equivalents

2020

2019

$'000

$'000

5.3A: Cash and Cash Equivalents

Cash and cash equivalents

0

2

Total cash and cash equivalents

0

2

The closing balance of Cash in special accounts does not include amounts held in trust: [$2,913k in 2020 and $4,273k in 2019]. See note 1.3 Special Accounts and 5.6A Assets Held in Trust for more information.

5.3B: Suppliers

2020

2019

$'000

$'000

5.3B: Suppliers

Trade creditors and accruals

0

24,706

Total Suppliers

0

24,706

Settlement of suppliers payable is usually made within 30 days.

5.4 Administered - financial instruments

2020

2019

$'000

$'000

Categories of Financial Instruments

Financial Assets under AASB 9

Financial assets at amortised cost

Cash and cash equivalents

0

2

Total financial asset at amortised cost

0

2

Total financial assets

0

2

Financial Liabilities

Financial liabilities measured at amortised cost

Trade creditors and accruals

0

24,706

Total financial liabilities measured at amortised cost

0

24,706

Total financial liabilities

0

24,706

Receivables (net) are expected to be recovered within 30 days (2019: within 30 days)

Credit terms for goods and services were within 30 days (2019: 30 days). Settlement of suppliers payable is usually made within 30 days.

5.5 Administered - contingent assets and liabilities

There are no administered contingencies, remote or quantifiable, for the AEC (2019: nil).

5.6 Administered - assets held in trust

The trust account holds the roll objections, and candidate deposits. When certain conditions are met the funds are returned.

2020

2019

$'000

$'000

Candidate Deposits

As at 1 July

4,273

1,328

Receipts

48

3,483

Payments

(1,408)

(538)

Total as at 30 June

2,913

4,273

Total monetary assets held in trust

2,913

4,273

Non-monetary assets

There are nil non-monetary assets held in trust

6. Aggregate information

6.1A: Aggregate Assets and Liabilities

2020

2019

$'000

$'000

Assets expected to be recovered in:

No more than 12 months

110,837

175,173

More than 12 months

95,436

35,856

Total assets

206,273

211,029

Liabilities expected to be settled in:

No more than 12 months

32,438

92,991

More than 12 months

72,449

8,600

Total Liabilites

104,887

101,591

6.1B: Administered - Aggregate Assets and Liabilities

2020

2019

$'000

$'000

Assets expected to be recovered in:

No more than 12 months

0

2

Total assets

0

2

Liabilities expected to be settled in:

No more than 12 months

0

24,706

Total Liabilities

0

24,706