Financial performance
This section analyses the financial performance of the Department of the House of Representatives for the year ended 30 June 2020.
Note 1: Expenses
Note 1: Expenses | ||
|---|---|---|
2020 | 2019 | |
$’000 | $’000 | |
1A: Employee benefits | ||
Wages and salaries | 15,227 | 14,265 |
Superannuation | ||
Defined contribution plans | 1,165 | 1,052 |
Defined benefit plans | 1,670 | 1,733 |
Leave and other entitlements | 2,571 | 2,225 |
Separation and redundancies | - | 51 |
Total employee benefits | 20,633 | 19,326 |
1B: Suppliers | ||
Goods and services supplied or rendered | ||
Staff-related services | 605 | 606 |
Travel | 628 | 683 |
Office services | 3,555 | 3,511 |
Communication | 169 | 90 |
Corporate expenses | 264 | 259 |
Total goods and services supplied or rendered | 5,221 | 5,149 |
Goods supplied | 131 | 268 |
Services rendered | 5,090 | 4,881 |
Total goods and services supplied or rendered | 5,221 | 5,149 |
Other suppliers | ||
Operating lease rentals | 1 | 41 |
Workers' compensation expenses | 42 | 53 |
Total other suppliers | 43 | 94 |
Total suppliers | 5,264 | 5,243 |
Accounting policy
Short-term leases and leases of low-value assets
The department 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 department recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
Note 2: Own-source revenue and gains
Note 2: Own-source revenue and gains | ||
|---|---|---|
2020 | 2019 | |
$’000 | $’000 | |
2A: Revenue from contracts with customers | ||
Sale of goods | 11 | 16 |
Rendering of services | 79 | 48 |
Total revenue from contracts with customers | 90 | 64 |
Disaggregation of revenue from contracts with customers | ||
Major product/service line: | ||
Services – seminars/conference | 79 | 48 |
Goods – publications/gift shop | 11 | 16 |
90 | 64 | |
Type of customer: | ||
Australian Government entities (related parties) | 39 | 54 |
State and Territory Governments | 25 | 2 |
Non-government entities | 26 | 8 |
90 | 64 | |
Timing of transfer of goods and services: | ||
Over time | - | - |
Point in time | 90 | 64 |
90 | 64 | |
2B: Interest | ||
Deposits | 52 | 70 |
Total interest | 52 | 70 |
2C: Other revenue | ||
Royalties | 36 | 12 |
Funding from external sources | 126 | 111 |
Memberships | 25 | - |
Total other revenue | 187 | 123 |
2D: Other gains | ||
Resources received free of charge | ||
Remuneration of auditors | 87 | 83 |
Rent of premises | 1,953 | 1,920 |
Other gain — other financial income | 3 | - |
Total other gains | 2,043 | 2,003 |
2E: Revenue from government | ||
Appropriations | ||
Departmental appropriations | 25,014 | 24,113 |
Total revenue from government | 25,014 | 24,113 |
Accounting policy
Revenue from the sale of goods is recognised when control has been transferred to the buyer.
The department recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
The department has assessed its revenues from seminars, conferences and gift shop and considers they are within the scope of AASB 15 as the performance obligations required by an enforceable contract are sufficiently specific.
The department has assessed its funding agreements with the Department of Foreign Affairs and Trade (DFAT) and considers they are not sufficiently specific to determine when the obligation is satisfied. AASB 1058 applies.
The department has disclosed its main product/service lines, type of customers and the timing of transfer of the goods/services.
Receivables for goods and services, which generally have pay up-front payment 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.
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https://www.transparency.gov.au/annual-reports/department-house-representatives/reporting-year/2019-20-24