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Note 1 - Financial Performance

Australian Institute of Aboriginal and Torres Strait Islander Studies

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the period ended 30 June 2019

Financial Performance

2019

2018

$'000

$'000

Note 1.1 Expenses

Note 1.1A Employee benefits

Wages and salaries

8,663

8,861

Superannuation

Defined contribution plans

954

913

Defined benefit plans

666

613

Leave and other entitlements

1,436

845

Total employee benefits

11,719

11,232

Accounting Policy

The accounting policy for employee related expenses is contained in the People and Relationships section.

Note 1.1B Suppliers

Goods and services supplied or rendered

Consultants

1,536

1,691

Contractors

4,519

3,476

Goods and services supplied or rendered

751

718

Building Expenses

649

1,265

ICT Expenses

1,369

1,349

Other

1,806

2,752

Total goods and services supplied or rendered

10,630

11,251

Goods supplied

1,500

2,294

Services rendered

9,130

8,957

Total goods and services supplied or rendered

10,630

11,251

Other suppliers

Operating lease rentals

555

523

Workers compensation expenses

66

90

Total other suppliers

621

613

Total suppliers

11,251

11,864

Accounting Policy

The accounting policy for employee related expenses is contained in the People and Relationships section.

Leasing Commitments

In its capacity as lessee, the Institute holds a lease at 14 Childers Street, Canberra City, which expires on 30 June 2020. The lease does not contain an option for renewal on expiry.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:

Australian Institute of Aboriginal and Torres Strait Islander Studies

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the period ended 30 June 2019

2019

2018

$'000

$'000

Within 1 year

618

594

Between 1 to 5 years

0

618

Total operating lease commitments 1

618

1,212

1 Comparative has been updated to reflect the cash commitment

Accounting Policy

Operating lease payments are expensed on a monthly rent charged basis which is representative of the pattern of benefits derived from the leased assets.

Australian Institute of Aboriginal and Torres Strait Islander Studies

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

for the period ended 30 June 2019

2019

2018

$'000

$'000

Note 1.2: Own-Source Revenue and Gains

Own-Source Revenue

Note 1.2A: Sale of goods and rendering of services

Sale of goods

516

489

Rendering of services

229

59

Total sale of goods and rendering of services

745

548

Accounting Policy

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer;

b) the entity retains no managerial involvement or effective control over the goods;

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

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.

Note 1.2B: Grants

From related entities

3,089

2,183

From external parties

150

100

Total grants

3,239

2,283

Accounting Policy

Grant revenue is recognised on a systematic basis over the period in which the Institute recognises as expense the related costs for which the grants are intended, the revenue is recognised as unearned until this time. The exception to this policy is for grants received for non-reciprocal purposes which are recognised when the Institute gains control over the assets comprising the contributions.

Note 1.2C: Other Revenue

Conference fees

0

1,155

Other revenue

241

135

Total other revenue

241

1,290

Note 1.2D: Revenue from Government

Corporate Commonwealth entity payment item

Department of the Prime Minister and Cabinet

20,388

16,244

Department of Education

0

3,249

Total revenue from Government

20,388

19,493

Accounting Policy

Revenue from Government

Funding received or receivable from non-corporate Commonwealth entities (appropriated to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to the Institute) is recognised as Revenue from Government unless the funding is in the nature of an equity injection or a loan.