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1. Financial performance

This section analyses the financial performance of the Food Standards Australia New Zealand for the period ended 30 June 2020.

1.1 Expenses

2020

$'000

2019

$'000

Note 1.1A: Employee Benefits

Wages and salaries

13,124

11,614

Superannuation

Defined contribution plans

1,211

939

Defined benefit plans

976

973

Leave and other entitlements

664

613

Separation and redundancies

51

-

Other employee expenses

47

12

Total employee benefits

16,073

14,151

Accounting Policy

Accounting policies for employee related expenses is contained in Note 3: People and relationships.

2020

$'000

2019

$'000

Note 1.1B: Suppliers

Goods and services supplied or rendered

Consultants and contractors

366

881

Technical food analysis

473

211

Travel

485

994

Computer expenses

499

494

Subscriptions

192

284

Training

251

319

Building running costs

10

117

Office running costs

298

135

Legal

90

64

Recruitment

32

18

ISFR Project Officer

85

150

External and internal audit fees

115

42

Other operating costs

152

376

Total goods and services supplied or rendered

3,048

4,085

Other suppliers

Operating lease rentals1

-

1.009

Workers compensation expenses

26

23

Total other suppliers

26

1,032

Total suppliers

3,074

5,117

  1. FSANZ has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

Accounting Policy

FSANZ 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).

2020

$'000

2019

$'000

Note 1.1C: Finance Costs

Interest on lease liabilities

99

-

Unwinding of discount

7

5

Total finance costs

106

5

FSANZ has applied AASB 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under AASB 117.

2020

$'000

2019

$'000

Note 1.1D: Foreign Exchange Losses

Non-speculative

17

-

Total foreign exchange losses

17

-

1.2 Income

2020

$'000

2019

$'000

Note 1.2A: Revenue From Contracts with Customers

New Zealand Government funding

2,008

1,967

Fee for service

558

404

Project Revenue from Government

837

3,384

Total revenue from contracts with customers

3,403

5,755

Disaggregation of revenue from contracts with customers

Major product / service line:

Regulatory services

558

404

Service delivery

2,845

5,351

3,403

5,755

Type of customer:

Australian Government entities (related parties)

837

3,384

Non-government entities

2,566

2,371

3,403

5,755

Timing of transfer of goods and services:

Over time

3,403

5,755

3,403

5,755

The prior year Project Revenue from Government was reduced by an adjustment relating to an application of AASB 15 accounting standard that affected the 2018-19 opening balance of Retained earnings.

Accounting Policy

Revenue from the sale of goods and rendering of services is recognised when control has been transferred to the buyer.

Revenues from projects undertaken on behalf of other Commonwealth agencies is recognised progressively during the term of the project when performance obligations are satisfied and can be measured. The measurement of performance obligations at a point in time is made by judgements made by Project Managers by reference to the percentage of work completed at reporting date.

Revenues from projects undertaken on behalf of other Commonwealth agencies that do not have performance obligations are recognised in the year that the revenues are received.

Revenue from fee for service is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:
a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured; and
b) the probable economic benefits associated with the transaction will flow to FSANZ.

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 end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

2020

$'000

2019

$'000

Note 1.2B: Interest

Deposits

4

12

Investments

157

212

Total interest

161

224

Accounting Policy

Interest revenue is recognised using the effective interest method. FSANZ only invests in term deposits or bank accounts with Authorised Deposit-taking Institutions (ADIs).

2020

$'000

2019

$'000

Note 1.2C: Revenue from Government

Department of Health

17,149

17,158

Total revenue from Government

17,149

17,158

Accounting Policy

Funding received from non-corporate Commonwealth entities (appropriate to the non-corporate Commonwealth entity as a corporate Commonwealth entity payment item for payment to FSANZ) is recognised as Revenue from Government by the corporate Commonwealth entity.