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Financial performance

​This section analyses the financial performance of the Department of the House of Representatives for the year ended 30 June 2019.

Accounting policy

Revenue from the sale of goods

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer
  • the department retains no managerial involvement nor effective control over the goods
  • the revenue and transaction costs incurred can be reliably measured
  • it is probable that the economic benefits associated with the transaction will flow to the department.

Revenue from rendering of services is recognised by reference to the stage of completion 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 department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest

Interest revenue is recognised using the effective interest method.

Resources received free of charge

Resources received free of charge are recognised as gains 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.

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

Revenue from government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from government when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Note 1: Expenses

Note 1: Expenses

2019

2018

$’000

$’000

1A: Employee benefits

Wages and salaries

14,265

14,733

Superannuation

Defined contribution plans

1,052

967

Defined benefit plans

1,733

1,898

Leave and other entitlements

2,225

1,622

Separation and redundancies

51

190

Total employee benefits

19,326

19,410

1B: Suppliers

Goods and services supplied or rendered

Staff-related services

606

373

Travel

683

1,094

Office services

3,511

3,092

Communication

90

86

Corporate expenses

259

243

Total goods and services supplied or rendered

5,149

4,888

Goods supplied

268

218

Services rendered

4,881

4,670

Total goods and services supplied or rendered

5,149

4,888

Other suppliers

Operating lease rentals

41

39

Workers' compensation expenses

53

56

Total other suppliers

94

95

Total suppliers

5,243

4,983

Leasing commitments

Operating leases 2018–19 included were effectively non-cancellable and comprise agreements for the provision of motor vehicles to senior executives and for departmental use.

Commitments for minimum lease payments in relation to non-cancellable
operating leases are payable as follows:

Within 1 year

41

27

Between 1 to 5 years

34

41

Total operating lease commitments

75

68

Note 2: Own-source revenue and gains

Note 2: Own-source revenue and gains

2019

2018

$’000

$’000

2A: Sale of goods and rendering of services

Sale of goods

16

25

Rendering of services

48

27

Total sale of goods and rendering of services

64

52

2B: Interest

Deposits

70

64

Total interest

70

64

2C: Other revenue

Royalties

12

6

Funding from external sources

111

520

Comcare refunds

-

36

Total other revenue

123

562

2D: Other gains

Resources received free of charge

Remuneration of auditors

83

83

Rent of premises

1,920

1,869

Other gain—asset first time recognition

-

34

Total other gains

2,003

1,986

Accounting policy

Revenue from the sale of goods

Revenue from the sale of goods is recognised when:

  • the risks and rewards of ownership have been transferred to the buyer
  • the department retains no managerial involvement nor effective control over the goods
  • the revenue and transaction costs incurred can be reliably measured
  • it is probable that the economic benefits associated with the transaction will flow to the department.

Revenue from rendering of services is recognised by reference to the stage of completion 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 department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30-day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed as at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest

Interest revenue is recognised using the effective interest method.

Resources received free of charge

Resources received free of charge are recognised as gains 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.

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

Revenue from government

Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue from government when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.