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Office of the Auditing and Assurance Standards Board Annual Report 2019-20

Note 8: Related parties

The AASB and AUASB are Australian Government controlled non-corporate entities. Related parties are:

Key Management Personnel of the AASB and AUASB, their close family members, and entities controlled or jointed controlled by either: (8A)
Cabinet Ministers – key management personnel for the consolidated whole of Government accounts, and (8B)
all other Australian government entities (8B).

Key management personnel are determined as persons having authority and responsibility for planning, directing and controlling the activities of the entity. Based on a review of employee titles, analysis of the roles and job descriptions, the PGPA requirements for accountable authorities, the delegations made under the PGPA, the composition of the leadership meetings and communications to employees regarding the leadership team, the following positions have been included within key management personnel: the Chair and CEOs of each Board, the Managing Director and the Technical Directors of each Board.

Note 8A: Transactions with key management personnel

	AASB		AUASB
	2020	2019	2020	2019
	$	$	$	$
Short-term employee benefits:
Salary	770,212	890,237	424,546	443,801
Post-employment benefits:
Superannuation	58,228	60,150	39,663	38,886
Other short-term benefits
Termination benefits - Separation and redundancies	0	159,168	0	0
Other long-term benefits:
Long Service Leave¹	5,455	5,500	12,348	11,205
Total other long-term benefits	5,455	5,500	12,348	11,205
Total	833,895	1,115,055	476,557	493,892

1 A senior executive received compensation payments not considered remuneration totalling $35,919 (2019 $0) The employee had not qualified for long service leave with the AASB under the Long Service Leave (Commonwealth Employees) Act 1976 (Commonwealth LSL Act). The AASB may have promised or represented to the employee in the terms of their employment contract that they would be entitled to long service leave pursuant to the Long Service leave Act 1992 (Vic) ( Victorian LSL Act) rather than pursuant to the Commonwealth LSL Act. For the purpose of resolving any dispute in relation to any claim, belief or right asserted by the employee against the AASB for long service leave entitlements, the employee has agreed to accept the payment in return for the full and final settlement of any claim capable of being brought by the employee in respect of the loss or perceived loss suffered by the Employee and in consideration for giving this Deed of Release. FBT was also payable on the amount.

During the reporting period ended 30 June 2020, AASB had six (2019: three) executives who met the definition of key management personnel.

Name	Position	Term as KMP
Kris Peach	Chair	Until 2nd May 2020 (4 days a week)
Keith Kendall	Chair	From 3rd May 2020
Justin Williams	National Director	From September 2019 (3 days a week)
Kalaselvi Kandia	Technical Director	To the 6th March 2020
Fridrich Housa	Acting Technical Director	From 13th January 2020
Helena Simkova	Acting Technical Director	From 13th January 2020 (4 days a week)

During the reporting period ended 30 June 2020, AUASB had two (2019: two) executives who met the definition of key management personnel.

Name	Position	Term as KMP
Roger Simnett	Chair	Full year (3 days a week)
Matthew Zappulla	Technical Director	Full year

Governance Arrangements

hThe remuneration of the AASB and AUASB Chair is set by the Commonwealth Remuneration Tribunal Determination (Remuneration and Allowances for Holders of Full-time Public Office) Determination 2019. The remuneration of other KMP is set by the Chair's benchmarking against relevant published external remuneration portions. The individual's performance during the year in assisting to achieve the AASB or AUASB strategy is taken into account in determining the level of increase in base salary each year.

Other non-salary benefits provided to KMP include annual influenza immunisation, mentoring and coaching programs, confidential employee assistance program, provision of mobile phone, tablet, laptop and airline lounge membership.

AASB		Short-term benefits	Post-employment benefits	Other long-term benefits	Termination Benefits	Total remuneration
Name	Position	Base Salary	Superannuation contributions	Long service leave
Kris Peach	Chair (0.8 FTE)	279,332	17,644	0	0	296,976
Keith Kendall	Chair	69,322	3,420	980	0	73,722
Justin Williams	Managing Director (0.6 FTE)	132,575	12,146	1,956	0	146,677
Kalaselvi Kandiah	Technical Director	158,066	13,353	0	0	171,419
Fridrich Housa	Acting Technical Director	75,620	6,771	1,133	0	83,524
Helena Simkova	Acting Technical Director (0.8 FTE)	55,297	4,894	1,386	0	61,577
Total		770,212	58,228	5,455	0	833,895

AUASB		Short-term benefits	Post-employment benefits	Other long-term benefits	Termination Benefits	Total remuneration
Name	Position	Base Salary	Superannuation contributions	Long service leave
Roger Simnett	Chair (0.6 FTE)	215,306	20,195	5,405	0	240,907
Matthew Zappulla	Technical Director	209,240	19,468	6,942	0	235,650
Total		424,546	39,663	12,348	0	476,557

Other Related Parties

For both AASB and AUASB all outstanding balances with related parties other than the AASB and AUASB are priced on an arm's length basis. None of the balances are secured. No expense has been recognised in the current year or prior year for bad or doubtful debts in respect of amounts owed by related parties. For details of the arrangements between the AASB and AUASB refer Note 2.

The parent entity of both the AASB and the AUASB is the Department of Treasury and ultimate parent is the Australian Government.

The AASB and AUASB pay for the following services from other Commonwealth controlled entities: Employee Assistance Program from Treasury, Core Desktop Licenses from Department of Finance, insurance premiums from Comcover, legal advice from Australian Government Solicitors (AGS), and registration fees from Treasury for the Federal Register of Legislative instruments cost recovery.

None of these services are individually or collectively significant to the AASB or AUASB, therefore only the nature of these transactions are disclosed.

Note 8B: Other related party transactions - Transaction values

	AASB		AUASB
	2020	2019	2020	2019
	$	$	$	$
Sales of goods and services to other Commonwealth entities:
Management fee recharge received from AUASB	537,542	767,761	0	0
Total Goods and services	537,542	767,761	0	0
Purchase of goods from other Commonwealth entities:
Management fee recharge paid to AASB	0	0	537,542	767,761
Productivity Commission - IT expenses	149,000	145,000	0	0
TEQSA – lessor	327,470	308,324	0	0
Total purchase of goods	476,470	453,324	537,542	767,761

Note 8C: Other related party transactions - Balance outstanding

	AASB		AUASB
	2020	2019	2020	2019
	$	$	$	$
Sales of goods and services to other Commonwealth controlled entities:
Management fee recharge receivable from AUASB	179,685	240,771	0	0
Total sales of goods and services	179,685	240,771	0	0
Purchase of goods from other Commonwealth controlled entities:
Management fee recharge payable to AASB	0	0	179,685	240,771
Total purchase of goods	0	0	179,685	240,771

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