Note 9: Provisions
Accounting Policy
Liabilities for short-term employee benefits and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts.
Leave
The liability for employee benefits includes provision for annual leave and long service leave.
The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates that will be applied at the time the leave is taken, including the CDPP’s employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.
The liability for long service leave has been determined by reference to the work of an actuary as at 30 June 2018. The estimate of the present value of the liability takes into account attrition rates, pay increases through promotion and inflation. Reviews are conducted with sufficient frequency to ensure the adequacy of the provision.
Separation and Redundancy
Provision is made for separation and redundancy benefit payments. There were no provisions for termination as at 30 June 2020 (2019: nil).
Superannuation
CDPP’s staff are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the PSS accumulation plan (PSSap), or other superannuation funds held outside the Australian government.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.
The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance's administered schedules and notes.
The CDPP makes employer contributions to the employees' superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. The CDPP accounts for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June 2020 represents outstanding contributions.
2020 | 2019 | |
$'000 | $'000 | |
Note 9A: Other Provisions | ||
Provisions for restoration1 | 576 | 325 |
Provisions for superannuation2 | 413 | - |
Provisions for surplus lease space3 | - | 111 |
Provisions for costs awarded against the Commonwealth | - | 375 |
Total other provisions | 989 | 811 |
Provision for Restoration | Other provisions | Total | |
$’000 | $’000 | $’000 | |
As at 1 July 2019 | 325 | 486 | 811 |
Additional provisions made | 498 | 413 | 911 |
Amounts used | - | (486) | (486) |
Amounts reversed | (255) | - | (255) |
Unwinding of discount or change in discount rate | 8 | - | 8 |
Total as at 30 June 2020 | 576 | 413 | 989 |
1 As at 30 June 2020, the CDPP had agreements for 10 leased premises (2019: 11 premises). Two of these have provisions requiring the CDPP to restore the premises to their original condition at the end of the lease. The CDPP made provisions to reflect the present value of these obligations.
2 Additional lump sum superannuation contributions are payable where a shortfall is found in the statutory payments for an employee in a Commonwealth defined benefit scheme. As at 30 June 2020, the CDPP recorded a provision for anticipated lump sum contributions resulting from known changes in employee circumstances.
3 The onerous lease contract expired in June 2020. The net lettable area has been reduced for a new lease of office space at the same premises.
Visit
https://www.transparency.gov.au/annual-reports/office-director-public-prosecutions/reporting-year/2019-20-60