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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 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.