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. |
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: | |||
| |||
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. |
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