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1. Departmental Financial Performance

This section analyses the financial performance of the Treasury for the year ended 2018.

1.1. Expenses

2018

2017

$’000

$’000

Note 1.1A: Employee benefits

Wages and salaries

97,706

92,336

Superannuation

Defined contribution plans

8,623

7,336

Defined benefit plans

8,500

8,890

Redundancies

292

924

Leave and other entitlements

11,536

11,268

Other

3,378

3,028

Total employee benefits

130,035

123,782

Accounting Policy

Accounting policies for employee related expenses are contained in Note 3: People and Relationships.

Note 1.1B: Suppliers

Goods and services supplied or rendered

Information communication technology

9,617

7,647

Conferences and training

2,027

2,108

Consultants, secondees and contractors

21,836

16,753

Fees - audit, accounting, bank and other

1,316

1,638

Insurance

791

684

Legal

4,441

1,823

Printing

980

427

Property operating expenses

14,311

13,072

Publications and subscriptions

1,779

4,221

Travel

5,689

4,955

Other

1,571

2,101

Total goods and services supplied or rendered

64,358

55,429

Goods supplied

3,803

4,856

Services rendered

51,055

42,449

Total goods and services supplied or rendered

54,858

47,305

Other suppliers

Operating lease rentals

9,034

7,726

Workers compensation premiums

466

398

Total other suppliers

9,500

8,124

Total suppliers

64,358

55,429

Leasing commitments

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

Within 1 year

9,136

8,824

Between 1 to 5 years

34,818

31,144

More than 5 years

23,298

27,600

Total operating lease commitments

67,252

67,568

Operating leases included are effectively non-cancellable and comprise of:

Nature of lease

General description of leasing arrangement

Leases for accommodation

Commercial — leases comprise of various periods, including both initial and option periods. Located in Canberra, Sydney and Melbourne.

Overseas estate — some commercial lease payments are adjusted annually and residential lease payments are escalated annually and similarly reviewed every three years to reflect market movements.

The initial periods of office accommodation leases are still current and each may be renewed with options for a further six years.

Accounting Policy

Leases

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the leased property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The Treasury does not currently hold any assets under a finance lease.

2018

2017

$’000

$’000

Note 1.1C: Grants

Private sector:

Non-profit organisations

1,592

1,245

Total grants

1,592

1,245

1.2 Own-Source Revenue and Gains

2018

2017

Own-Source Revenue

$’000

$’000

Note 1.2A: Rendering of services

Actuarial services

2,263

2,463

Shared services and cost recovery

4,015

4,147

Other rendering of services

2,579

2,809

Total rendering of services

8,857

9,419

Accounting Policy

Revenue from rendering of services

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
  • it is probable that the economic benefits associated with the transaction will flow to the entity.

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 account. Collectability of debts is reviewed at balance date. Allowances are made when collectability of the debt is no longer probable.

2018

2017

$’000

$’000

Note 1.2B: Other revenue

Legislative and Governance Forum on Consumer Affairs

contributions received

287

364

ANAO audit services received free of charge

575

575

Other

158

134

Total other revenue

1,020

1,073

Note 1.2C: Gains from sale of assets

Plant and equipment

Proceeds from sale

-

88

Net book value of assets disposed

-

(38)

Selling expense

-

(7)

Total gains from sale of assets

-

43

Note 1.2D: Other gains

Resources received free of charge

3,688

3,272

Total other gains

3,688

3,272

Accounting Policy

Resources received free of charge

Resources received free of charge are recognised and recorded as revenue depending on their nature 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.

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, unless received from another government agency or authority as a consequence of a restructuring of administrative arrangements.

Sale of assets

Gains from disposal of assets are recognised when control of the asset has passed to the buyer.

2018

2017

$’000

$’000

Note 1.2E: Revenue from Government

Appropriations

Departmental appropriations

187,844

170,496

Total revenue from Government

187,844

170,496

Accounting Policy

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 Treasury 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.