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Note 3 - People and Relationships

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

People and Relationships

2019

2018

$'000

$'000

Note 3.1: Employee Provisions

Note 3.1A: Employee provisions

Leave

3,724

3,147

Total employee provisions

3,724

3,147

Accounting policy

Employee related expenses are recognised in the period that employee services are received.

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. Changes in the measurement of the liability are recognised in the Statement of Comprehensive Income.

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 Institute’s employer 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 short hand method prescribed by Department of Finance. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.

Superannuation

The Institute'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 Institute 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 Institute accounts for the contributions as if they were contributions to defined contribution plans and are recognised as an expense in the period that related employee services are received.

The liability for superannuation recognised as at 30 June represents outstanding contributions.

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

Note 3.2: Key Management Personnel Remuneration

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Institute, directly or indirectly, including any director of the Institute. The Institute has determined the key management personnel to be Council Members, Chief Executive Officer, Deputy Chief Executive Officer, and Executive Directors. Key management personnel remuneration is reported in the table below:

2019

2018

$'000

$'000

Short-term employee benefits

1,023

983

Post-employment benefits

141

149

Other long-term employee benefits

61

31

Total key management personnel remuneration expenses1

1,225

1,163

The total number of key management personnel that are included in the above table are 13 (2018: 12).

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 Institute.

Note 3.3: Related Party Disclosures Related party relationships:

The Institute is an Australian Government controlled entity. Related parties to the Institute are Council Members, Key Management Personnel including the Portfolio Minister and Executive and other Australian Government Entities.

Transactions with related parties:

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