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Financial Performance

This section analyses the financial performance of the Memorial as at 30 June 2020

1.1 Expenses

2020

2019

$'000

$'000

Note 1.1A: Employee Benefits

Wages and salaries

21,178

20,897

Superannuation

Defined contribution plans

2,403

2,380

Defined benefit plans

1,076

1,067

Leave and other entitlements

988

1,159

Separation and redundancies

107

140

Total employee benefits

25,752

25,643

Accounting Policy

Accounting policies for employee related expenses is contained in the People and Relationships section.

Note 1.1B: Suppliers

Goods and services supplied or rendered

Property and Support Services

5,702

5,512

Professional Services

5,799

10,090

Agency/Contract Staff Costs

2,977

4,724

Information Technology

1,097

895

Costs of Good Sold

740

1,335

Advertising and Promotions

608

1,984

Travel

264

508

Exhibitions

99

359

Financial Statement Audit Services

67

65

Other

940

2,481

Total goods and services supplied or rendered

18,293

27,953

Goods supplied

2,167

3,611

Services rendered

16,126

24,342

Total goods and services supplied or rendered

18,293

27,953

Other suppliers

Operating lease rentals4

-

210

Workers compensation expenses

162

148

Short-term leases4

194

-

Total other suppliers

356

358

Total suppliers

18,649

28,311

Accounting Policy

Short-term leases and leases of low-value assets

The Memorial 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). The Memorial recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

4 The Memorial 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.

The Memorial has short-term (12months or less) lease commitments of $2,811 and commitments for leases of low-value assets of $43,397 (2019: Operating Lease Commitments: $506,608).

The above lease disclosures should be read in conjunction with the accompanying notes 2.2 and 2.4.

2020

2019

$'000

$'000

Note 1.1C: Write-Down and Impairment of Other Assets

Impairment of receivables

(1)

2

Impairment of inventories

153

26

Total write-down and impairment of other assets

152

28

1.2 Own-sourced revenue and gains

2020

2019

$'000

$'000

Note 1.2A: Revenue from Contracts with Customers

Sales of goods

1,829

3,186

Rendering of services

1,090

1,605

Total revenue from contract with customers

2,919

4,791

Disaggregation of revenue from contracts with customers

Major product / service line:

Physical and online shop sales

1,651

3,059

Commission from café sales

153

262

Revenue from functions

123

155

Education and National Collection Loan Programs

447

615

Other commercial activities (audio and facilitated tours, certificates etc)

545

700

2,919

4,791

Types of customer:

Australian government entity

10

7

Non-government entity

2,909

4,784

2,919

4,791

Timing of transfer of services:

Point in time

2,919

4,791

2,919

4,791

Accounting Policy

Revenue from the sale of goods is recognised when control has been transferred to the buyer.

The following is a description of principal activities from which the Memorial generates its revenue: appropriation funding through the Department of Veterans’ Affairs; donations of goods/services/assets/funds from external parties or other government entities; sponsorships from external parties in exchange for promotional benefit; sales from a physical and online shop; commission from café sales; and, revenue from functions held on Memorial premises.

Donations and sponsorships while based on contracts do not contain sufficiently specific performance obligations to enable the Memorial to determine when they have been satisfied so are therefore accounted for under AASB 1058. Sales from the physical and online shop represent daily takings that are recognised at the close of business each day so are therefore accounted for under AASB 15.

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.

2020

2019

$'000

$'000

Note 1.2B: Interest

Deposits

1,813

2,293

Total accrued interest

1,813

2,293

Accounting Policy

Interest revenue is recognised using the effective interest method.

2020

2019

$'000

$'000

Note 1.2C: Donations and Sponsorships

Donations

1,300

1,721

Sponsorships

1,852

1,304

Donated Heritage and Cultural items

5,710

1,531

Total Donations and sponsorships

8,862

4,556

Accounting Policy

Sponsorship

Sponsorship funding is recorded as revenue when the Memorial obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Memorial, and the amount can be measured reliably.

Donated Heritage and Cultural items

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as income at their fair value when the asset qualifies for recognition.

2020

2019

$'000

$'000

Note 1.2D: Rental Income

Operating lease:

Investment properties5

154

153

Total rental income

154

153

5 The Memorial receives a monthly license fee for the use of its Mitchell premises by an external entity.

2020

2019

$'000

$'000

Note 1.2E: Other Revenue

Resources received free of charge

574

753

Royalties

81

172

Friends of the Memorial

89

75

Comcare reimbursements

71

29

Paid Parental leave income

36

17

Total other revenue

851

1,046

Accounting Policy

Resources Received Free of Charge

Resources received free of charge are recognised as revenue 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.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Note 1.2F: Volunteer Services

The Memorial engages volunteers in a wide variety of roles, both at the front-of-house and behind the scenes. Volunteers assist with both the management of the national collection and the delivery of the Memorial’s public programs, including but not limited to:

  • delivery of free and paid guided tours to the general public and dignitaries within the Memorial’s commemorative area and public galleries
  • assisting the public with military history research within the Memorial’s Research Centre; and
  • showing school groups and other visitors through the Memorial’s Discovery Zone.

All volunteers of the Memorial receive appropriate training relevant to the roles that they perform, unless they have been recruited because of a special skill that they possess. Recruitment processes for volunteers are conducted throughout the year as and when volunteers are required for specific areas.

The Memorial is also provided with advertising services from time for no charge for promotion of both the Memorial and its activities in general and for specific exhibitions that are on display in the Memorial’s various galleries.

Accounting Policy

On the initial recognition of volunteer services as an asset or an expense, the Memorial recognises any related amounts in accordance with the relevant standard. The Memorial recognises the excess of the fair value of the volunteer services over the recognised related amounts as income immediately in the income statement. Refer to ‘Note 1.2E: Other Revenue’ for further detail.

2020

2019

$'000

$'000

Note 1.2G: Revenue from Government

Department of Veteran's Affairs

Corporate Commonwealth entity payment item

46,371

50,904

Total revenue from Government

46,371

50,904

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 Memorial) is recognised as Revenue from Government by the Memorial unless the funding is in the nature of an equity injection or a loan.