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Department of the House of Representatives Annual Report 2018–19

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.

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.