Go to top of page

Financial performance

This section analyses the financial performance of the Australian Pesticides and Veterinary Medicines Authority for the year ended 30 June 2021.

1.1: Expenses

1.1A: Employee benefits

2021 $'000

2020 $'000

Wages and salaries

17 902

17 691

Superannuation:

Defined contribution plans

2 498

2 241

Defined benefit plans

437

606

Leave and other entitlements

2 605

2 044

Separation and redundancies

326

Other employee benefits

452

444

Total employee benefits

23 894

23 352

Accounting Policy

Accounting policies for employee related expenses is contained in the people and relationships section.

Note

There were four staff separations expensed in the 2019‐20 financial year and recorded under "Separations and redundancies".

Major expenses comprising "Other employee benefits" included costs associated with staff relocation and learning and development costs.

Comparative information

An adjustment has been made in the split of the superannuation expense in the prior year. This has no impact on the net result reported in the comparative figures and has been done to correctly align the actual cost with the budget.

1.1B: Suppliers

Goods and services supplied or rendered

2021 $'000

2020 $'000

Consultants

845

781

Contractors

4 600

8 606

Travel

88

349

IT services

2 115

2 456

Other

1 690

2 350

Total goods and services supplied or rendered

9 338

14 542

Goods supplied

90

359

Services rendered

9 248

14 183

Total goods and services supplied or rendered

9 338

14 542

Other supplier expenses

Operating lease rentals

49

(575)

Workers compensation premiums

84

108

Total other supplier expenses

133

(467)

Total supplier expenses

9 471

14 075

Note:"Other" supplier expenses included costs associated with the digitisation of paper files and general office running expenses.

Comparative information

In the current year, the APVMA has re‐classified recruitment costs from "Other employee benefits" reported under "Employee benefits" to "Other" reported under Suppliers. This has resulted in a $0.339 million transfer from employee benefits to supplier expenses in the Statement of Comprehensive Income in the prior year. This has no impact on the net result reported in the comparative figures and has been done to correctly align the actual cost with the budget.

1.1C: Finance costs

2021 $'000

2020 $'000

Interest on lease liabilities

191

202

Unwinding of discount

-

5

Total finance costs

191

207

Accounting Policy

All borrowing costs are expensed as incurred.

Leasing Commitments

The lease at 18 Wormald Street, Symonston, Canberra, was terminated early, in March 2020. The reduced occupancy from 3 June 2019 resulted in a provision for onerous property lease payments of $1.355 million being created which due to the classification as a short term lease under AASB 16 has been written back against rent expense

Commitment for minimum lease payments in relation to non‐cancellable operating leases are payable shown in Leasing commitments.

Leasing commitments

2021 $'000

2020 $'000

Within 1 year

1 191

1 202

Between 1 to 5 years

4 778

3 848

Over 5 years

9 631

11 933

Total operating lease commitments

15 600

16 983

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

1.2A: Other revenue

2021

$'000

2020

$'000

OWN‐SOURCE REVENUE

Resources received free of charge

Remuneration of auditors

54

54

Other revenue

140

163

Total other revenue

194

217

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 relating to services to the portfolio department is recognised as income under AASB 1058 when APVMA obtains controls of the cash.

Revenue from the sale of goods is recognised when control has been transferred to the buyer. Interest revenue is recognised using the effective interest method.

"Other revenue" is predominantly made up of specific services to the portfolio department throughout the 2020‐21 financial year.

1.2B: Revenue from government

2021 $'000

2020 $'000

Revenue from government

Corporate Commonwealth entity payment item1

4 400

23 430

Department of Agriculture contribution

Agricultural and Veterinary Chemicals (Administration) Act 1992

(refer below)

38 829

33 809

Total revenue from government

43 229

57 239

Department of Agriculture, Water and the Environment contribution is equal to the following fees and charges paid by industry:

Levies

20 089

18 553

Annual renewal fee

7 311

6 009

Product application fees

8 449

6 489

Good manufacturing practice (GMP) licence fees

901

1 123

Permits, actives and other fees

2 039

1 566

Penalties

40

69

Total industry contributions

38 829

33 809

Note: 1 $17.735 million of administered funds under Appropriation Bill No. 5 2019‐20 was not drawn down but brought to account as revenue and a receivable from government in June 2020.

Infringement income does not form part of the Department of Agriculture, Water and the Environment (DAWE) contribution, but is returned to the Consolidated Revenue Fund (CRF). Infringement income of $126,000 was not included above for the 2020‐21 financial year and is being returned through DAWE to the CRF.

Infringement revenue from prior years totalling $270,200 was recorded previously as Department of Agriculture, Water and the Environment (DAWE) contributions. The APVMA has agreed with DAWE to reduce the Special Appropriation account in the 2021‐22 financial year by $270,200 to return the infringements to the CRF.

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.