1. Departmental Financial Performance
This section analyses the financial performance of the Australian Financial Security Authority for the year ended 30 June 2020.
1.1 Expenses
2020 $'000 | 2019 $'000 | |
---|---|---|
Wages and salaries | 37,257 | 37,574 |
Superannuation | ||
Defined contribution plans | 5,510 | 4,783 |
Defined benefit plans | 1,711 | 2,110 |
Leave and other entitlements | 5,027 | 4,953 |
Separation and redundancies | 292 | 954 |
Other employee expenses | 629 | 645 |
Total employee benefits | 50,426 | 51,019 |
Accounting Policy Accounting policies for employee related expenses are contained in the People and Relationships section. |
2020 $'000 | 2019 $'000 | |
---|---|---|
Goods and services supplied or rendered | ||
Consultants | 4,321 | 2,175 |
Contractors | 9,789 | 8,752 |
IT costs | 3,987 | 3,662 |
PPSR retrieval searches | 2,500 | 2,500 |
Property operating expense | 592 | 480 |
Travel | 664 | 1,443 |
Media and publications | 698 | 1,016 |
Audit fees (internal and external) | 628 | 639 |
Bank fees | 651 | 677 |
General admin expenses | 1,476 | 2,000 |
Other | 1,558 | 1,986 |
Total goods and services supplied or rendered | 26,864 | 25,330 |
Goods supplied | 374 | 638 |
Services rendered | 26,490 | 24,692 |
Total goods and services supplied or rendered | 26,864 | 25,330 |
Other suppliers | ||
Operating lease rentals1 | 10,182 | 13,255 |
Workers compensation expenses | 550 | 1,227 |
Total other suppliers | 10,732 | 14,482 |
Total suppliers | 37,596 | 39,812 |
1. AFSA 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. | ||
AFSA has short-term lease commitments of $nil as at 30 June 2020. The above lease disclosures should be read in conjunction with the accompanying notes 1.1C, 1.2B, 3.2A and 3.4A. | ||
Accounting Policy Short-term leases AFSA 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. AFSA recognises the lease payments associated with these leases as an expense on a straightline basis over the lease term. |
2020 $'000 | 2019 $'000 | |
---|---|---|
Finance leases1 | - | - |
Interest on lease liabilities | 375 | - |
Unwinding of make-good discount | 21 | 21 |
Total finance costs | 396 | 21 |
1. AFSA 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 above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 1.2B, 3.2A and 3.4A.
2020 $'000 | 2019 $'000 | |
---|---|---|
Impairment of Intangible assets | 46 | - |
Asset write-downs - property, plant and equipment | 55 | 34 |
Total write-down and impairment of other assets | 101 | 34 |
1.2 Own-Source Revenue and Gains
Own-Source Revenue | 2020 $'000 | 2019 $'000 |
---|---|---|
PPSR | 39,558 | 40,912 |
Other | 2,148 | 2,275 |
Total write-down and impairment of other assets | 41,706 | 43,187 |
Disaggregation of revenue from contracts with customers | ||
Major product / service line: | ||
PPSR registrations | 19,773 | 20,675 |
PPSR searches | 19,785 | 20,260 |
Personal Insolvency Reporting Service charges | 1,890 | 1,994 |
Special account management fee | 258 | 258 |
41,706 | 43,187 | |
Type of customer: | ||
Australian Government entities (related parties) | 1 | 3 |
State and Territory Governments | 1 | 2 |
Non-government entities | 41,704 | 43,182 |
41,706 | 43,187 | |
Timing of transfer of goods and services: | ||
Point in time | 41,706 | 43,187 |
41,706 | 43,187 | |
Accounting Policy Revenue from the sale of services is recognised when control has been transferred to the user. AFSA has assessed that the timing for transfer of its services is at a point in time for all its revenue streams. The following is a description of principal activities from which the AFSA generates its revenue: Operation of the Personal Property & Security Register (PPSR) - Revenue generated by AFSA is from the use of the PPSR such as registering a security or interest, amending an existing registration and searches of the register. A contract exists between the party applying for additions to, amendment of and searches of the register. The performance obligation is for the Registrar to action those requests by either registering the interest, amending the existing interest or providing the results of the search of the register. This performance obligation is satisfied once successful payment of the relevant fee has been made, therefore the revenue is recognised at this point in time. The transaction price is determined by the Personal Property Securities (Fees) Determination 2005. Personal Insolvency Reporting Service – Revenue generated by AFSA is from the use, by way of searches, of the National Personal Insolvency Index (NPII). The index is a publicly available and permanent electronic record of all personal insolvency proceedings in Australia. 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. |
2020 $'000 | 2019 $'000 | |
---|---|---|
Resources received free of charge - external audit fees | 309 | 306 |
Reimbursement of legal and estate management costs | 72 | 530 |
Total other revenue | 381 | 836 |
Accounting Policy 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. The 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. |
2020 $'000 | 2019 $'000 | |
---|---|---|
Appropriations | ||
Departmental appropriations | 53,583 | 52,254 |
Total revenue from Government | 53,583 | 52,254 |
Accounting Policy Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when AFSA 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. |
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https://www.transparency.gov.au/annual-reports/australian-financial-security-authority/reporting-year/2019-20-20