Financial performance
This section analyses the financial performance of the Australian Pesticides and Veterinary Medicines Authority for the year ended 30 June 2019
1.1: Expenses |
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2019 $'000 |
2018 $'000 |
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1.1A: Employee benefits |
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Wages and salaries |
20 590 |
20 215 |
Superannuation: |
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Defined contribution plans |
2 416 |
2 050 |
Defined benefit plans |
1 380 |
1 557 |
Leave and other entitlements |
2 043 |
1 851 |
Separation and redundancies |
2 790 |
- |
Other employee benefits |
1 597 |
823 |
Total employee benefits |
30 816 |
26 496 |
Accounting Policy Accounting policies for employee related expenses is contained in the people and relationships section Note There were 35 staff separations on 1 July 2019, with all costs accrued and recorded under "Separations and redundancies". Major expenses comprising "Other employee benefits" include increased staff recruitments, costs associated with staff recruitments, and learning and development costs. |
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1.1B: Suppliers |
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Goods and services supplied or rendered |
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Consultants |
1 646 |
1 945 |
Contractors |
7 102 |
5 214 |
Travel |
625 |
481 |
IT services |
1 833 |
1 010 |
Other |
1 469 |
490 |
Total goods and services supplied or rendered |
12 675 |
9 140 |
Note "Other" supplier expenses has increased in 2018‐19 due to the digitisation of paper files as APVMA moves to a paperless office environment. |
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Goods supplied |
778 |
585 |
Services rendered |
11 897 |
8 555 |
Total goods and services supplied or rendered |
12 675 |
9 140 |
Other supplier expenses |
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Operating lease rentals ‐ external parties |
1 602 |
2 251 |
Workers compensation premiums |
135 |
155 |
Total other supplier expenses |
1 737 |
2 406 |
Total supplier expenses |
14 412 |
11 546 |
1.1C: Finance Costs |
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Unwinding of discount |
41 |
70 |
Total finance costs |
41 |
70 |
Accounting Policy All borrowing costs are expensed as incurred. |
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Leasing Commitments On 3 June 2019, the APVMA commenced operations in the purpose‐built offices located at 102 Taylor Street, Armidale, NSW. The occupancy is a fifteen year lease plus two five year extension options, and subject to annual rent increases of 3.25%. The APVMA continues to operate from the Canberra office. The current lease at 18 Wormald Street, Symonston, Canberra, is valid until October 2020, and is subject to annual rent increases of 3.75%. The reduced occupancy from 3 June 2019 resulted in a provision for onerous property lease payments of $1.355 million being created which will be amortised over the remainder of the lease period. This provision will continue to be reviewed each year for any changed circumstances. |
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Commitment for minimum lease payments in relation to non‐cancellable operating leases are payable as follows: |
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Within 1 year |
2 374 |
1 700 |
Between 1 to 5 years |
4 236 |
5 633 |
Over 5 years |
11 638 |
12 772 |
Total operating lease commitments |
18 248 |
20 105 |
Accounting Policy Where an asset is acquired under a finance lease, the asset is capitalised at either the lease property's fair value or, if lower, the present value of minimum lease payments at the inception of the contract. A liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the lease period. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are expensed on a straight‐line basis which is representative of the pattern of benefits derived from the leased assets. |
1.2: Own‐Source Revenue, Gains and Revenue from Government |
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2019 $'000 |
2018 $'000 |
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OWN-SOURCE REVENUE |
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1.2A: Other revenue |
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Resources received free of charge |
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Remuneration of auditors |
46 |
36 |
Other revenue |
328 |
177 |
Total other revenue |
374 |
213 |
Accounting Policy Resources Received Free of Charge Resources received free of charge are recognised as revenue when fair value can be reliably determined and the donated services would have been purchased. 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. Other Revenue Revenue from rendering of services is recognised by reference to the completion stage of contracts at the reporting date. The revenue is recognised when the amount of revenue, stage of completion and transaction costs incurred can be reliably measured and the probable economic benefits from the transaction will flow to the APVMA. The contracts completion stage (at the reporting date) is determined by reference to the proportion that costs incurred to date relate to the transaction's estimated costs. Interest revenue is recognised using the effective interest method. "Other revenue" is predominantly made up of specific services to the portfolio department throughout the 2018‐19 financial year. |
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REVENUE FROM GOVERNMENT |
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1.2B: Revenue from Government |
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Corporate Commonwealth entity payment item |
24 902 |
6 056 |
Department of Agriculture contribution |
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Agricultural and Veterinary Chemicals (Administration) Act 1992 |
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(refer below) |
32 092 |
32 924 |
Total revenue from Government |
56 994 |
38 980 |
Department of Agriculture contribution is equal to the following fees and charges paid by industry: |
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Levies |
18 453 |
18 802 |
Annual renewal fee |
5 222 |
5 604 |
Product application fees |
5 911 |
6 246 |
Good manufacturing practice (GMP) licence fees |
1 029 |
1 033 |
Permits, actives and other fees |
1 393 |
1 106 |
Penalties and Infringements |
84 |
133 |
Total industry contributions |
32 092 |
32 924 |
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) is recognised as revenue from Government by the corporate Commonwealth entity unless the funding is in the nature of an equity injection or a loan. Fees and Levies Fees and levies are recognised as income when they are received. |
Visit
https://www.transparency.gov.au/annual-reports/australian-pesticides-and-veterinary-medicines-authority/reporting-year/2018-2019-35