Note 1 Financial Performance
for the period ended 30 June 2020
Financial performance
This section analyses AFMA's financial performance for the year ended 30 June 2020.
Note 1.1 Expenses | ||
2020 | 2019 | |
$’000 | $’000 | |
Note 1.1A Employee benefits | ||
Wages and salaries | 15,117 | 15,992 |
Superannuation: | ||
Defined contribution plans | 1,779 | 1,892 |
Defined benefit plans | 931 | 1,027 |
Leave and other entitlements | 1,615 | 1,953 |
Total employee benefits | 19,442 | 20,864 |
Accounting Policy | ||
Accounting policies for employee related expenses is contained in the People and relationships section. | ||
Note 1.1B: Suppliers | ||
Goods and services | ||
Research | 4,051 | 3,466 |
Surveillance and compliance | 1,471 | 1,343 |
Consultants and contractors | 4,585 | 5,251 |
Travel and meetings | 1,253 | 2,213 |
Information technology and communications | 1,461 | 1,477 |
Training and development | 189 | 319 |
Building repairs and outgoings | 392 | 456 |
External audit fees provided free of charge | 40 | 43 |
General administrative | 745 | 1,482 |
Total goods and services | 14,187 | 16,050 |
Goods supplied | 154 | 224 |
Services rendered | 14,033 | 15,826 |
Total goods and services supplied or rendered | 14,187 | 16,050 |
Other suppliers | ||
Workers compensation expenses | 253 | 116 |
Operating lease rental 1 | 0 | 2,357 |
Short-term leases | 474 | 0 |
Total other suppliers | 727 | 2,473 |
Total suppliers | 14,914 | 18,523 |
AFMA does not have any short-term lease commitments as at 30 June 2020, however AFMA leases three properties on month-to-month arrangements. | ||
The above lease disclosures should be read in conjunction with the accompanying notes 1.1C, 1.2B, 2.2A and 2.4A. |
1AFMA 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
AFMA 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). AFMA recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
2020 | 2019 | |
$’000 | $’000 | |
Note 1.1C: Finance Costs | ||
Lease Liabilities 1 | 108 | 0 |
Unwinding of Discount | 2 | 21 |
Total finance costs | 110 | 21 |
The above lease disclosures should be read in conjunction with the accompanying notes 1.1B, 1.2B, 2.2A and 2.4A. |
1The 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.
Note 1.1D: Write-Down and Impairment of Assets | ||
Asset write-downs and impairments from: | ||
Impairment of property, plant and equipment | 10 | 30 |
Total write-down and impairment of assets | 10 | 30 |
Note 1.1E: Impairment Loss Allowance on Financial Assets | ||
Impairment on trade and other receivables 1 | 7,932 | 11 |
Total impairment on financial instruments | 7,932 | 11 |
1In 2019-20 impairment loss included waiver of levy amounts to support Commonwealth fishers during Covid-19. Refer to overview for further details.
Note 1.2 Own Source Revenue | ||
Note 1.2A: Sale of Goods and Rendering of Services | ||
Rendering of services | 2,990 | 3,027 |
Total sale of goods and rendering of services | 2,990 | 3,027 |
Disaggregation of revenue from contracts with customers | ||
Major product / service line: | ||
Regulatory Services | 2,235 | 2,334 |
Other revenue | 755 | 693 |
Total sale of goods and rendering of services | 2,990 | 3,027 |
Note 1.2B: Rental Income | ||
Operating lease: | ||
Sublease - Thursday Island office | 155 | 153 |
Sub-leasing right of use assets: | ||
Sublease - Canberra office | 0 | 124 |
Employee car parking | 3 | 44 |
Total rental income | 158 | 321 |
Leasing commitments receivable | ||
AFMA in its capacity as a lessor sub-leases office accommodation on Thursday Island. All commitments are GST exclusive. | ||
Commitments for minimum lease receipts in relation to non-cancellable operating leases are receivable as follows: | ||
Within 1 year | 145 | |
One to two years | 149 | |
Two to three years | 154 | |
Total sub-lease commitments receivable | 448 | |
2020 | 2019 | |
$’000 | $’000 | |
Note 1.2C: Interest | ||
Interest | 8 | 14 |
Total interest | 8 | 14 |
Note 1.2D: Levies and licence charges | ||
Levies and licensing charge 1 | 14,602 | 13,888 |
Total levies and licence charges | 14,602 | 13,888 |
1Levies and licensing charges comprise of cost recovered amounts credited to the AFMA Special Account in accordance with s94C of the Fisheries Administration Act 1991. For further information on AFMA's cost recovery arrangements refer to Note 4.3.
Note 1.3A: Revenue from Government | ||
Appropriations: | ||
Departmental appropriation | 19,890 | 19,908 |
Special Appropriation (Coronavirus Economic Response Package) 1 | 10,334 | - |
Total revenue from Government | 30,224 | 19,908 |
Reconciliation of Coronovirus Economic Response Package 2019-20 | 2020 | |
$’000 | ||
Levies and licensing charges per 2019-20 Levy Regulations | 14,602 | |
Levies and licensing charges for 2019-20 receipts collected | 6,692 | |
Difference represented by 2019-20 levy amounts waived | -7,910 | |
Act of grace payments | -2,529 | |
Total waivers and act of grace payments | -10,439 | |
Special Appropriation (Coronavirus Economic Response Package) | 10,334 | |
Net impact on AFMA cash reserves | -105 |
1 In 2019-20 special appropriations also included Assistance for Severely Affected Regions (Special Appropriation) (Coronavirus Economic Response Package) Act 2020. Refer to overview and table below for details:
Revenue from Contracts with Customers
The following is a description of principal activities from which the AFMA generates its revenue: - Regulatory services which primarily consists of fees for services for observers, logbooks and licensing, vessel monitoring services provided to both industry and State Governments and other regulatory compliance services. Fees for services and compliance services are recognised over time based on actual costs incurred.- Other revenues which primarily consist of service contracts with related Commonwealth Government entities for enforcement and research activities. Other revenue enforcement activities are recognised either over time as expenses are incurred for each project. Research services are recognised at a point in time when milestones have been met.
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.
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 AFMA 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.
Other Revenue
Resources received free of charge (RRFOC) are recognised as gains 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. RRFOC are recorded as either revenue or gains depending on their nature.
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https://www.transparency.gov.au/annual-reports/australian-fisheries-management-authority/reporting-year/2019-20-40