Financial Statements 2018-2019
Contents
Auditor-General’s Report on Financial Statements
Certification of Financial Statements
Contents
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Cash Flow Statement
Notes to and forming part of the Financial Statements
Auditor-General's Report on Financial Statements
Certification of Financial Statements
Contents
OFFICE OF PARLIAMENTARY COUNSEL |
CONTENTS |
Primary Financial Statements |
Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Cash Flow Statement |
Notes to and forming part of the Financial Statements Overview |
Budget Variance Explanations |
1: Financial Performance |
1.1 Expenses |
1.2 Income |
2: Financial Position |
2.1 Financial Assets |
2.2 Non-Financial Assets |
2.3 Payables |
3: Funding |
3.1 Appropriations |
3.2 Net Cash Appropriation Arrangements |
4: People and Relationships |
4.1 Employee Provisions |
4.2 Key Management Personnel Remuneration |
4.3 Related Party Disclosures |
5: Managing Uncertainties |
5.1 Financial Instruments |
5.2 Fair Value Measurement |
6: Other Information |
6.1 Aggregate Assets and Liabilities |
Statement of Comprehensive Income
OFFICE OF PARLIAMENTARY COUNSEL |
||||
STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2019 |
||||
|
Original Budget |
|
||
Notes |
2019 |
2019 |
2018 |
|
NET COST OF SERVICES |
||||
EXPENSES |
||||
Employee benefits |
15,853 |
16,864 |
14,751 |
|
Supplier expenses |
4,759 |
4,874 |
4,765 |
|
Depreciation and amortisation |
976 |
930 |
906 |
|
Losses from asset sales |
4 |
- |
- |
|
Total expenses |
21,592 |
22,668 |
20,422 |
|
LESS: |
||||
OWN-SOURCE INCOME |
||||
Own-source revenue |
||||
Sale of goods and rendering of services |
5,952 |
5,999 |
5,875 |
|
Other revenue |
75 |
64 |
75 |
|
Total own-source revenue |
6,027 |
6,063 |
5,950 |
|
Total own-source income |
6,027 |
6,063 |
5,950 |
|
Net cost of services |
(15,565) |
(16,605) |
(14,472) |
|
Revenue from Government |
15,935 |
15,935 |
15,337 |
|
Surplus (Deficit) attributable to the Australian Government |
370 |
(670) |
865 |
|
OTHER COMPREHENSIVE INCOME |
||||
Changes in asset revaluation surplus |
187 |
- |
270 |
|
Total comprehensive income attributable to the Australian Government |
557 |
(670) |
1,135 |
The above statement should be read in conjunction with the accompanying notes.
Statement of Financial Position
OFFICE OF PARLIAMENTARY COUNSEL |
||||
STATEMENT OF FINANCIAL POSITION as at 30 June 2019 |
||||
|
Original Budget |
|
||
Notes |
2019 |
2019 |
2018 |
|
ASSETS |
||||
Financial Assets |
||||
Cash and cash equivalents |
2,348 |
368 |
423 |
|
Trade and other receivables |
17,751 |
14,589 |
17,081 |
|
Total financial assets |
20,099 |
14,957 |
17,504 |
|
Non-Financial Assets |
||||
Buildings - leasehold improvements |
3,057 |
2,585 |
3,192 |
|
Plant and equipment |
766 |
755 |
857 |
|
Intangibles |
200 |
195 |
477 |
|
Work in progress |
2,476 |
2,438 |
968 |
|
Other non-financial assets |
277 |
211 |
232 |
|
Total non-financial assets |
6,776 |
6,184 |
5,726 |
|
Total Assets |
26,875 |
21,141 |
23,230 |
|
LIABILITIES |
||||
Payables |
||||
Suppliers |
1,508 |
1,400 |
1,580 |
|
Employee benefits |
230 |
202 |
328 |
|
Other |
2,491 |
65 |
368 |
|
Total payables |
4,229 |
1,667 |
2,276 |
|
Provisions |
||||
Employee provisions |
6,869 |
5,873 |
5,934 |
|
Total provisions |
6,869 |
5,873 |
5,934 |
|
Total Liabilities |
11,098 |
7,540 |
8,210 |
|
Net Assets |
15,777 |
13,601 |
15,020 |
|
EQUITY |
||||
Parent Entity Interest |
||||
Contributed equity |
7,902 |
7,902 |
7,702 |
|
Reserves |
457 |
1,495 |
270 |
|
Retained surplus |
7,418 |
4,204 |
7,048 |
|
Total Equity |
15,777 |
13,601 |
15,020 |
The above statement should be read in conjunction with the accompanying notes.
Statement of Changes in Equity
OFFICE OF PARLIAMENTARY COUNSEL |
||||||||||||
STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2019 |
||||||||||||
Contributed Equity |
Retained Earnings |
Asset Revaluation Reserve |
Total Equity |
|||||||||
Actual |
Original |
Actual |
Actual |
Original |
Actual |
Actual |
Original |
Actual |
Actual |
Original |
Actual |
|
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
2019 |
2019 |
2018 |
|
CONTRIBUTED EQUITY |
||||||||||||
Opening balance |
||||||||||||
Balance carried forward from previous period |
7,702 |
7,702 |
7,572 |
7,048 |
4,874 |
4,688 |
270 |
1,495 |
1,495 |
15,020 |
14,071 |
13,755 |
Adjusted opening balance |
7,702 |
7,702 |
7,572 |
7,048 |
4,874 |
4,688 |
270 |
1,495 |
1,495 |
15,020 |
14,071 |
13,755 |
Comprehensive income |
||||||||||||
Surplus (Deficit) for the period |
- |
- |
- |
370 |
(670) |
865 |
- |
- |
- |
370 |
(670) |
865 |
Other comprehensive income |
- |
- |
- |
- |
- |
- |
187 |
- |
270 |
187 |
- |
270 |
Total comprehensive income |
- |
- |
- |
370 |
(670) |
865 |
187 |
- |
270 |
557 |
(670) |
1,135 |
Transactions with owners |
||||||||||||
Contributions by owners |
||||||||||||
Departmental capital budget |
200 |
200 |
130 |
- |
- |
- |
- |
- |
- |
200 |
200 |
130 |
Sub-total transactions with owners |
200 |
200 |
130 |
- |
- |
- |
- |
- |
- |
200 |
200 |
130 |
Transfer between equity components1 |
- |
- |
- |
- |
- |
1,495 |
- |
- |
(1,495) |
- |
- |
- |
Closing balance at 30 June |
7,902 |
7,902 |
7,702 |
7,418 |
4,204 |
7,048 |
457 |
1,495 |
270 |
15,777 |
13,601 |
15,020 |
The above statement should be read in conjunction with the accompanying notes.
1Transfer of asset revaluation reserve for office fitout relating to the vacated Barton office.
Accounting Policy Equity Injections Departmental Capital Budgets (DCBs) are recognised directly in Contributed Equity in that year. |
Cash Flow Statement
OFFICE OF PARLIAMENTARY COUNSEL |
|||
CASH FLOW STATEMENT for the period ended 30 June 2019 |
|||
|
Original Budget |
|
|
2019 |
2019 |
2018 |
|
OPERATING ACTIVITIES |
|||
Cash received |
|||
Appropriations |
23,079 |
23,362 |
21,130 |
Sales of goods and rendering of services |
8,257 |
6,259 |
6,409 |
Net GST received |
440 |
190 |
310 |
Other |
10 |
- |
- |
Total cash received |
31,786 |
29,811 |
27,849 |
Cash used |
|||
Employees |
15,016 |
16,864 |
14,847 |
Suppliers |
5,398 |
5,250 |
5,110 |
Section 74 receipts transferred to the Official Public Account |
7,850 |
6,259 |
6,842 |
Other |
3 |
- |
- |
Total cash used |
28,267 |
28,373 |
26,799 |
Net cash from (used by) operating activities |
3,519 |
1,438 |
1,050 |
INVESTING ACTIVITIES |
|||
Cash received |
|||
Net proceeds from sale of assets |
- |
- |
- |
Total cash received |
- |
- |
- |
Cash used |
|||
Purchase of leasehold improvements, plant and equipment |
259 |
200 |
103 |
Purchase of intangibles |
1,535 |
1,438 |
1,022 |
Total cash used |
1,794 |
1,638 |
1,125 |
Net cash from (used by) investing activities |
(1,794) |
(1,638) |
(1,125) |
FINANCING ACTIVITIES |
|||
Cash received |
|||
Contributed equity |
200 |
200 |
130 |
Total cash received |
200 |
200 |
130 |
Net cash from (used by) financing activities |
200 |
200 |
130 |
Net increase (decrease) in cash held |
1,925 |
- |
55 |
Cash and cash equivalents at the beginning of the reporting period |
423 |
368 |
368 |
Cash and cash equivalents at the end of the reporting period |
2,348 |
368 |
423 |
The above statement should be read in conjunction with the accompanying notes.
Notes to and Forming Part of the Financial Statements for the year ended 30 June 2019
OVERVIEW
1 Basis of Preparation of the Financial Statements
The Financial Statements and notes are general purpose financial statements and are required by section 42 of the Public Governance, Performance and Accountability Act 2013.
The Financial Statements have been prepared in accordance with:
- Public Governance, Performance and Accountability (Financial Reporting) Rule 2015; and
- Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.
The Financial Statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.
The Financial Statements are presented in Australian dollars and values are rounded to the nearest thousand unless otherwise specified.
2 New Australian Accounting Standards
Adoption of new Australian Accounting Standard requirements
All new standards, any amendments to standards and interpretations that have been issued and are applicable to the current reporting period have been reviewed and have no effect on the entity’s financial statements.
Standard |
Applicable from |
Nature of impending change/s in accounting policy and likely impact on initial application |
AASB 9 Financial Instruments |
1 January 2018 |
Categorisation of Financial Instruments are amended to reflect the classification requirements under AASB 9. |
Future Australian Accounting Standard requirements
The following new standard has been issued and is applicable to future reporting periods and may have a material effect on the entity’s financial statements.
Standard |
Applicable from |
Nature of impending change/s in accounting policy and likely impact on initial application |
AASB 16 |
1 July 2019 |
Lessees will be required to bring all leases on the Statement of Financial Position as the distinction between operating and finance leases has been eliminated. |
3 Contingent Liabilities and Contingent Assets
OPC has no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2019.
4 Taxation
OPC is exempt from all forms of taxation except fringe benefits tax (FBT) and the goods and services tax (GST). Revenues, expenses and assets are recognised net of GST: except where the amount of GST incurred is not recoverable from the Australian Taxation Office; and except for receivables and payables.
5 Events after the Reporting Date
There is no subsequent event that had the potential to significantly affect the ongoing structure and financial activities of the entity.
BUDGET VARIANCE EXPLANATIONS
OPC delivers drafting and advisory services for Bills and subordinate legislation, prepares compilations of laws as amended and registers laws and instruments on behalf of more than 70 Commonwealth entities.
OPC’s drafting work is regulated by the Legal Services Directions. All Bill and regulation drafting is tied to OPC and budget funded. OPC delivers legislative publishing services to and on behalf of the whole of the Australian Government through the Federal Register of Legislation (the Legislation Register).
OPC recovers the cost of core services from Government entities that publish legislation on the Legislation Register through annual fees.
OPC provides drafting services for legislative instruments and other publishing services on a fee for service basis. The demand for these services is client driven and therefore difficult to budget accurately.
The following is an explanation of the major variances between the original budget presented in the 2018-19 Portfolio Budget Statements and the 2018-19 final outcome as presented in accordance with Australian Accounting Standards for OPC.
Variances are considered to be major if the variance is greater than 10% between budget and actual.
Statement of Financial Position
Trade and other receivables
Actual trade and other receivables was higher than budget mainly due to higher appropriations receivable due to unbudgeted surplus for the 2017-18 year ($1.512 million) and the 2018-19 year ($1.087 million).
Buildings - leasehold improvements
Actual buildings - leasehold improvements was higher than budget mainly due to the revaluation of assets.
Other payables- unearned income
Actual unearned income was higher than budget mainly due to receipts ($2.098 million) for the Legislation Register 2019-20 annual fees that were invoiced in May 2019.
Employee provisions
Actual employee provisions was higher than budget due to an increase in the provision for long service leave (LSL) as a result of the continuing fall in the long term bond rate and static salary growth rate, resulting in a higher discount factor being applied to the LSL calculation.
Cash Flow Statement
Operating Activities - Sales of goods and rendering of services
The actual sales of goods and rendering of services is higher than budget due to cash received ($2.098 million) for the Legislation Register 2019-20 annual fees.
Operating Activities - Net GST received
The actual net GST received is higher than budget due to higher than expected supplier expenses and capitalised contractor costs for the redevelopment of the Legislation Register.
Operating Activities - Employees
The actuals are lower than budget due to lower than expected employee benefits.
Operating Activities - Section 74 receipts transferred to the Official Public Account
The actuals are higher than budget due to higher than expected cash received for the Legislation Register 2019-20 annual fees.
Investing Activities - Purchase of leasehold improvements, plant and equipment
The actuals are higher than budget due to unbudgeted minor fit-out works to OPC’s premises.
1. FINANCIAL PERFORMANCE
1.1: Expenses |
|||
---|---|---|---|
2019 |
2018 |
||
$’000 |
$’000 |
||
1.1A: Employee benefits |
|||
Wages and salaries |
11,363 |
11,109 |
|
Superannuation: |
|||
Defined contribution plans |
796 |
732 |
|
Defined benefit plans |
1,508 |
1,519 |
|
Leave and other entitlements |
2,186 |
1,391 |
|
Separation and redundancies |
- |
- |
|
Total employee benefits |
15,853 |
14,751 |
Accounting Policy Accounting policies for employee related expenses are contained in the People and relationships section. |
1.1B: Supplier expenses |
|||
Goods and services supplied and rendered |
|||
IT & telecommunications |
1,217 |
1,296 |
|
Printing & digitisation |
823 |
822 |
|
Accounting/audit services |
241 |
274 |
|
Staff training & development |
233 |
265 |
|
Human resources |
333 |
227 |
|
Property |
160 |
139 |
|
Library |
126 |
132 |
|
Other |
404 |
387 |
|
Total goods and services supplied and rendered |
3,537 |
3,542 |
|
Goods supplied |
77 |
122 |
|
Services rendered |
3,460 |
3,420 |
|
Total goods and services supplied and rendered |
3,537 |
3,542 |
|
Other supplier expenses |
|||
Operating lease rentals |
1,161 |
1,155 |
|
Workers compensation expenses |
61 |
68 |
|
Total other supplier expenses |
1,222 |
1,223 |
|
Total supplier expenses |
4,759 |
4,765 |
Leasing commitments Lease for office accommodation and car parking OPC in its capacity as lessee entered into a new lease which commenced on 1 October 2015 for a term of 10 years with annual increases of 3.6%. The next increase is on 1 October 2019. There is an option to extend the lease by three years. Licence agreement for offsite parking A licence agreement was entered into for car parking from 1 August 2017 for an initial term of 1 year. There are two options to extend for two years each. If all options are taken up, the final termination date will be 31 July 2022. |
|||
2019 |
2018 |
||
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: |
|||
Within 1 year |
1,401 |
1,241 |
|
Between 1 to 5 years |
5,780 |
5,530 |
|
More than 5 years |
2,005 |
3,545 |
|
Total operating lease commitments |
9,186 |
10,316 |
Accounting Policy Leases Operating lease payments are expensed on a straight line basis which is representative of the pattern of benefits derived from the leased assets. |
1.2: Income |
|||
---|---|---|---|
2019 |
2018 |
||
Own-source Revenue |
$’000 |
$’000 |
|
1.2A: Sale of goods and rendering of services |
|||
Sale of goods |
66 |
113 |
|
Rendering of services |
5,886 |
5,762 |
|
Total sale of goods and rendering of services |
5,952 |
5,875 |
Accounting Policy Sale of goods Revenue from the sale of goods is recognised when the risks and rewards of ownership have passed to the buyer and the costs incurred can be reliably measured. Risk and rewards of ownership are considered passed to the buyer at the time of delivery of the goods to the customer. Rendering of services Revenue is recognised when OPC has the right to be compensated for services performed and the stage of completion can be reliably measured. It is recorded at the amount likely to be received for the provision of that service. |
1.2B: Other revenue |
|||
Reimbursement of expenses |
10 |
11 |
|
Resources received free of charge |
|||
Remuneration of auditors (ANAO) |
65 |
64 |
|
Total other revenue |
75 |
75 |
Accounting Policy Other Revenue Resources received free of charge are recognised as revenue 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. |
Revenue from Government |
|||
1.2C: Revenue from Government |
|||
Appropriations: |
|||
Departmental appropriation |
15,935 |
15,337 |
|
Total revenue from Government |
15,935 |
15,337 |
Accounting Policy Revenue from Government Amounts appropriated for departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as revenue when OPC gains control of the appropriation. |
2. FINANCIAL POSITION
2.1: Financial Assets |
||||
---|---|---|---|---|
2019 |
2018 |
|||
$’000 |
$’000 |
|||
2.1A: Trade and other receivables |
||||
Goods and services receivable |
||||
Goods and services |
329 |
350 |
||
GST receivable from the Australian Taxation Office |
137 |
152 |
||
Total goods and services receivable |
466 |
502 |
||
Appropriations receivable |
||||
Appropriations receivable |
17,285 |
16,579 |
||
Total appropriations receivable |
17,285 |
16,579 |
||
Total trade and other receivables |
17,751 |
17,081 |
Accounting Policy Cash Cash is recognised at its nominal amount. Goods and services receivable Receivables for goods and services are recognised at the nominal amounts due less any impairment allowance account. Credit terms are 30 days. Collectability of debts is reviewed at balance date and an allowance is made when collectability of the debt is no longer probable. Appropriations receivable Appropriations receivable are appropriations controlled by OPC but held in the Official Public Account under the Government's just-in-time draw down arrangements. Appropriations receivable are recognised at their nominal amounts. |
2.2: Non-Financial Assets |
---|
2.2A: Reconciliation of opening and closing balances of property, plant and equipment, and intangibles 2019 |
|||||
Buildings - Leasehold Improvements |
Plant & Equipment |
Internally developed software |
Computer software purchased |
Total |
|
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
|
As at 1 July 2018 |
|||||
Gross book value |
3,192 |
857 |
4,477 |
182 |
8,708 |
Accumulated depreciation and impairment |
- |
- |
(4,083) |
(99) |
(4,182) |
Net book value 1 July 2018 |
3,192 |
857 |
394 |
83 |
4,526 |
Additions: |
|||||
By purchase |
132 |
127 |
- |
27 |
286 |
Revaluations and impairments recognised in other comprehensive income |
187 |
- |
- |
- |
187 |
Depreciation and amortisation |
(454) |
(218) |
(259) |
(45) |
(976) |
Disposals: |
|||||
Other disposals |
- |
- |
- |
- |
- |
Net book value 30 June 2019 |
3,057 |
766 |
135 |
65 |
4,023 |
Net book value as of 30 June 2019 represented by: |
|||||
Gross book value |
3,061 |
984 |
4,477 |
207 |
8,729 |
Accumulated depreciation and impairment |
(4) |
(218) |
(4,342) |
(142) |
(4,706) |
3,057 |
766 |
135 |
65 |
4,023 |
|
Work in progress |
- |
- |
2,476 |
- |
2,476 |
3,057 |
766 |
2,611 |
65 |
6,499 |
Accounting Policy
Asset Recognition Threshold
Purchases of leasehold improvements, plant and equipment, and intangibles are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).
Derecognition
All items of leasehold improvements, plant and equipment, and intangibles are derecognised upon disposal or when no further future economic benefits are expected from their use.
Revaluations
See Accounting Policy in Note 5.2A.
Impairment
All leasehold improvements, plant and equipment, and intangibles were assessed for impairment at 30 June 2019. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.
No indicators of impairment were identified for leasehold improvements, plant and equipment, and intangibles.
Leasehold improvements, plant and equipment
Depreciation
Depreciable leasehold improvements, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives to OPC using, in all cases, the straight-line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives:
2019 |
2018 |
||
Leasehold improvements |
Lease term |
Lease term |
|
Plant and equipment |
3 to 25 years |
3 to 25 years |
Intangibles
Intangibles are carried at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Intangibles are amortised on a straight-line basis over their anticipated useful life.
The useful life of OPC’s intangibles are as follows:
2019 |
2018 |
||
Purchased software |
4 to 5 years |
4 to 5 years |
|
Internally generated software |
9 years |
9 years |
2019 |
2018 |
||
$’000 |
$’000 |
||
2.2B: Other non-financial assets |
|||
Prepayments |
277 |
232 |
|
Total other non-financial assets |
277 |
232 |
No indicators of impairment were found for other non-financial assets.
2.3 Payables |
||||
---|---|---|---|---|
2019 |
2018 |
|||
$’000 |
$’000 |
|||
2.3A: Suppliers |
||||
Trade creditors and accruals1 |
368 |
450 |
||
Rent payable2 |
1,140 |
1,130 |
||
Total suppliers |
1,508 |
1,580 |
1 Settlement is usually made in 30 days.
2 Settlement will be made progressively until the end of the office lease in 2025.
2.3B: Employee benefits |
|||
Salaries, wages and superannuation |
129 |
115 |
|
Bonuses |
67 |
157 |
|
Salary packaging |
30 |
27 |
|
FBT payable |
4 |
29 |
|
Total employee benefits |
230 |
328 |
Accounting Policy Accounting policies for employee payables are contained in the People and relationships section. |
2.3C: Other payables |
|||
Unearned income |
2,491 |
368 |
|
Total other payables |
2,491 |
368 |
3. FUNDING
3.1: Appropriations |
|||
---|---|---|---|
2019 |
2018 |
||
3.1A: Annual Departmental Appropriations ('Recoverable GST exclusive') |
|||
Ordinary annual services |
|||
Annual Appropriation1 |
15,935 |
15,337 |
|
PGPA Act - section 74 |
7,850 |
6,842 |
|
Capital Budget |
200 |
130 |
|
Total appropriation |
23,985 |
22,309 |
|
Appropriation applied |
(21,354) |
(21,205) |
|
Variance 2 |
2,631 |
1,104 |
1The 2018 annual appropriation was reduced by $46,000. A formal determination was made on 26 June 2018.
²The variance is mainly due to the surplus for the year after adding back non-cost recovered depreciation, offset by the use of prior year departmental appropriation for the Legislation Register redevelopment.
3.1B: Unspent Annual Departmental Appropriations ('Recoverable GST exclusive') |
|||
Appropriation Act (No. 1) 2017-18 |
- |
16,579 |
|
Appropriation Act (No. 1) 2018-19 |
17,285 |
- |
|
Cash at bank |
2,348 |
423 |
|
Total |
19,633 |
17,002 |
3.2: Net Cash Appropriation Arrangements |
|||
---|---|---|---|
2019 |
2018 |
||
$’000 |
$’000 |
||
Total Comprehensive Income less depreciation/amortisation expenses previously funded through revenue appropriation |
1,274 |
1,782 |
|
Less: |
|||
Depreciation and amortisation for the period |
(976) |
(906) |
|
Add: |
|||
Cost recovered amortisation |
259 |
259 |
|
Depreciation and amortisation expenses previously funded through revenue appropriation |
(717) |
(647) |
|
Total comprehensive income as per the Statement of Comprehensive Income |
557 |
1,135 |
4. PEOPLE AND RELATIONSHIPS
4.1: Employee Provisions |
||||
---|---|---|---|---|
2019 |
2018 |
|||
$’000 |
$’000 |
|||
4.1A: Employee provisions |
||||
Leave |
6,869 |
5,934 |
||
Total employee provisions |
6,869 |
5,934 |
Accounting Policy
Employee provisions
Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of the reporting period are measured at their nominal amounts.
The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.
Long-term employee benefits are measured at total net present value of the defined benefit obligation at the end of the reporting period.
Leave
The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave as all sick leave is non-vesting and the average sick leave taken in future years by employees of OPC is estimated to be less than the annual entitlement for sick 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 OPC'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 paragraph 24(a) of the Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 using the shorthand method. The estimate of the present value of the liability takes into account attrition rates and pay increases through promotion and inflation.
Separation and Redundancy
Provision is made for separation and redundancy benefit payments. OPC recognises a provision for termination when it has developed a detailed formal plan for terminations and has informed those employees affected that it will carry out the terminations.
Superannuation
Staff of OPC are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS), the PSS accumulation plan (PSSap) or a complying fund chosen by the employee.
The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap and other funds are defined contribution schemes.
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. OPC makes employer contributions to the employees’ defined benefits superannuation scheme at rates determined by an actuary to be sufficient to meet the current cost to the Government. OPC accounts for the contributions as if they were contributions to defined contribution plans.
The liability for superannuation recognised as at 30 June represents outstanding contributions for the final fortnight of the year.
4.2: Key Management Personnel Remuneration |
---|
Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly. OPC has determined the Key Management Personnel to be the First Parliamentary Counsel, the two Second Parliamentary Counsel, the General Manager Corporate and Chief Information Officer, the General Manager Corporate Services, and the General Manager Publications. Key management personnel remuneration is reported in the table below:
2019 |
2018 |
||
$ |
$ |
||
Short-term employee benefits1 |
1,689,791 |
1,488,570 |
|
Post- employment benefits2 |
249,153 |
253,970 |
|
Other long-term employee benefits3 |
199,007 |
44,019 |
|
Total key management personnel remuneration expenses |
2,137,951 |
1,786,559 |
The total number of Key Management Personnel that are included in the above table are 6 full-time employees.
¹Includes salary, annual leave, performance bonuses, motor vehicle allowances and SES experience loading.
2Includes superannuation.
3Includes long service leave.
The 2018 figures have been re-calculated to be consistent with the 2019 disclosure requirements.
4.3: Related Party Disclosures |
---|
Related party relationships:
OPC is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel.
Transactions with related parties:
Given the breadth of Government activities, related parties may transact with the government sector in the same capacity as ordinary citizens. Such transactions include the payment or refund of taxes, receipt of a Medicare rebate or higher education loans. These transactions have not been separately disclosed in this note.
Giving consideration to relationships with related entities, and transactions entered into during the reporting period by the entity, it has been determined that there are no related party transactions to be separately disclosed.
5. MANAGING UNCERTAINTIES
5.1: Financial Instruments |
||||
---|---|---|---|---|
Notes |
2019 |
2018 |
||
$’000 |
$’000 |
|||
5.1A: Categories of financial instruments |
||||
Financial Assets under AASB 139 |
||||
Loans and receivables |
||||
Cash and cash equivalents |
423 |
|||
Goods and services receivables |
350 |
|||
Total loans and receivables |
773 |
|||
Financial Assets under AASB 9 |
||||
Financial assets at amortised cost |
||||
Cash and cash equivalents |
2,348 |
|||
Goods and services receivables |
329 |
|||
Total financial assets at amortised cost |
2,677 |
|||
Total financial assets |
2,677 |
773 |
||
Financial Liabilities under AASB 139 |
||||
Other liabilities |
||||
Payables - suppliers |
1,580 |
|||
Total other liabilities |
1,580 |
|||
Financial Liabilities under AASB 9 |
||||
Financial liabilities measured at amortised cost |
||||
Payables - suppliers |
1,508 |
|||
Total financial liabilities measured at amortised cost |
1,508 |
|||
Total financial liabilities |
1,508 |
1,580 |
Classification of financial assets on the date of initial application of AASB 9. |
|||||
AASB 139 original classification |
AASB 9 new classification |
AASB 139 carrying amount at |
AASB 9 carrying amount at |
||
Financial assets class |
Note |
$'000 |
$'000 |
||
Cash and cash equivalents |
Held-to-maturity |
Amortised Cost |
423 |
423 |
|
Goods and services receivables |
Held-to-maturity |
Amortised Cost |
350 |
350 |
|
Total financial assets |
773 |
773 |
Accounting Policy
Financial assets
With the implementation of AASB 9 Financial Instruments for the first time in 2019, OPC reclassified financial assets from ‘Loans and receivables’ to ‘Financial assets measured at amortised cost’.
Trade receivables are recorded at face value less any impairment and are recognised when OPC becomes party to a contract and has a legal right to receive cash. Trade receivables are derecognised on payment.
Financial assets at amortised cost are assessed for impairment at the end of each reporting period. Allowances are made when collectability of the debt is no longer probable. Comparatives have not been restated on initial application.
Financial Liabilities
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Supplier and other payables are derecognised on payment.
5.2: Fair Value |
|||
---|---|---|---|
5.2A: Fair Value Measurement |
|||
Fair value measurements at the end of the reporting period |
|||
2019 |
2018 |
||
Non-financial assets1 |
|||
Plant and equipment |
|||
Recurring |
766 |
857 |
|
Non Recurring |
- |
- |
|
Leasehold improvements |
|||
Recurring |
3,057 |
3,192 |
|
Non Recurring |
- |
- |
|
Total fair value measurement of non-financial assets |
3,823 |
4,049 |
1OPC's assets are held for operational purposes and not held for the purposes of deriving a profit.
Accounting Policy
Fair Value Measurement
OPC deems transfers between levels of the fair value hierarchy to have occurred at the end of each reporting period.
Revaluations
All leasehold improvements, plant and equipment are measured at fair value in the Statement of Financial Position.
Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.
Each year, a review of the carrying amounts of assets is conducted. Where it is considered that the carrying amount of an asset at the date of reporting would materially differ from the fair value, an independent valuation is recommended. All leasehold improvements, plant and equipment is subject to a formal valuation at least once every three years.
An independent desktop valuation was undertaken in 2018-19 by AON Australia.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through operating result. Revaluation decrements for a class of assets are recognised directly through operating result except to the extent that they reverse a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.
A reconciliation of movements and impact of the valuation on leasehold improvements and plant and equipment has been included in Note 2.2A.
The net fair values of the financial assets and liabilities are at their carrying amounts. OPC derive no interest income from financial assets in either the current or prior year.
6. OTHER INFORMATION
6.1: Aggregate Assets and Liabilities |
|||
---|---|---|---|
2019 |
2018 |
||
6.1: Aggregate Assets and Liabilities |
|||
Assets expected to be recovered in: |
|||
No more than 12 months |
20,358 |
17,718 |
|
More than 12 months |
6,517 |
5,512 |
|
Total assets |
26,875 |
23,230 |
|
Liabilities expected to be recovered in: |
|||
No more than 12 months |
3,976 |
3,103 |
|
More than 12 months |
7,122 |
5,107 |
|
Total liabilities |
11,098 |
8,210 |
|
Visit
https://www.transparency.gov.au/annual-reports/office-parliamentary-counsel/reporting-year/2018-2019-51