Go to top of page

Financial Statements 2020-2021

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

2.4 Interest Bearing Liabilities

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

Auditor-General's Report on Financial Statements

Certification of Financial Statements

Contents

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

Statement of Comprehensive Income

OFFICE OF PARLIAMENTARY COUNSEL

STATEMENT OF COMPREHENSIVE INCOME for the period ended 30 June 2021

2021

2020

Original Budget

Notes

$’000

$’000

$’000

NET COST OF SERVICES

EXPENSES

Employee benefits

1.1A

17,907

16,759

18,461

Supplier expenses

1.1B

3,069

3,866

4,210

Write-down and impairment of assets

1.1C

11

-

-

Finance Costs

1.1D

64

75

64

Depreciation and amortisation

2.2A

2,153

2,102

2,277

Total expenses

23,203

22,802

25,012

LESS:

Own-source income

Own-source revenue

Revenue from contracts with customers

1.2A

6,704

6,593

6,198

Other revenue

1.2B

68

68

64

Other gains

1.2C

4

-

-

Total own-source revenue

6,776

6,661

6,262

Total own-source income

6,776

6,661

6,262

Net cost of services

(16,427)

(16,141)

(18,750)

Revenue from Government

1.2D

17,788

17,298

17,788

Surplus / (Deficit)

1,361

1,157

(962)

OTHER COMPREHENSIVE INCOME

Changes in asset revaluation surplus

2.2A

(313)

-

-

Total comprehensive income / (loss)

1,048

1,157

(962)

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 2021

2021

2020

Original Budget

Notes

$’000

$’000

$’000

ASSETS

Financial Assets

Cash and cash equivalents

1,893

772

(10)

Trade and other receivables

2.1A

20,753

21,284

21,492

Total financial assets

22,647

22,056

21,482

Non-Financial Assets

Buildings

2.2A

7,688

9,345

7,740

Plant and equipment

2.2A

865

982

850

Computer software

2.2A

111

120

4,260

Work in progress

2.2A

5,973

3,988

337

Prepayments

2.2B

310

223

318

Total non-financial assets

14,947

14,658

13,505

Total assets

37,593

36,714

34,987

LIABILITIES

Payables

Suppliers

2.3A

146

190

191

Employee benefits

2.3B

366

337

336

Unearned income

2.3C

4,238

3,870

3,870

Total payables

4,750

4,397

4,397

Interest bearing liabilities

Leases

2.4A

5,631

6,802

5,637

Total interest bearing liabilities

5,631

6,802

5,637

Provisions

Employee provisions

4.1A

7,391

7,141

7,141

Total provisions

7,391

7,141

7,141

Total Liabilities

17,772

18,340

17,175

Net Assets

19,821

18,374

17,812

EQUITY

Parent Entity Interest

Contributed equity

8,601

8,202

8,601

Reserves

144

457

457

Retained surplus

11,076

9,715

8,753

Total Equity

19,821

18,374

17,812

The above statement should be read in conjunction with the accompanying notes.

1. Right-of-use assets are included in the following line items: Buildings

Statement of Changes in Equity

OFFICE OF PARLIAMENTARY COUNSEL

STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2021

2021

2020

Original Budget

Notes

$’000

$’000

$’000

CONTRIBUTED EQUITY

Opening balance

Balance carried forward from previous period

8,202

7,902

8,202

Transactions with owners

Contributions by owners

Departmental capital budget

399

300

399

Total transactions with owners

399

300

399

Closing balance as at 30 June

8,601

8,202

8,601

RETAINED EARNINGS

Opening balance

Balance carried forward from previous period

9,715

8,558

9,715

Comprehensive income

Surplus/(Deficit) for the period

1,361

1,157

(962)

Closing balance as at 30 June

11,076

9,715

8,753

ASSET REVALUATION RESERVE

Opening balance

Balance carried forward from previous period

457

457

457

Other comprehensive income

(313)

-

-

Closing balance as at 30 June

144

457

457

TOTAL EQUITY

Opening balance

Balance carried forward from previous period

18,374

16,917

18,374

Comprehensive income

Surplus/(Deficit) for the period

1,361

1,157

(962)

Other comprehensive income

(313)

-

-

Total comprehensive income

1,048

1,157

(962)

Transactions with owners

Contributions by owners

Departmental capital budget

399

300

399

Total transactions with owners

399

300

399

Closing balance as at 30 June

19,821

18,374

17,812

The above statement should be read in conjunction with the accompanying notes.

Accounting Policy

Equity Injections

Amounts appropriated which are designated as ‘equity injections’ for a year (less any formal reductions) and

Departmental Capital Budgets (DCBs) are recognised directly in contributed equity in that year.

Cash Flow Statement

OFFICE OF PARLIAMENTARY COUNSEL

CASH FLOW STATEMEN for the period ended 30 June 2021

2021

2020

Original Budget

Notes

$’000

$’000

$’000

OPERATING ACTIVITIES

Cash received

Appropriations

26,400

23,850

24,061

Sale of goods and rendering of services

7,250

5,945

6,364

GST received

614

607

166

Other

3

3

-

Total cash received

34,267

30,405

30,591

Cash used

Employees

17,627

16,380

18,461

Suppliers

3,763

4,625

4,630

Section 74 receipts transferred to the Official Public Account

8,032

7,902

6,480

Interest payments on lease liabilities

64

75

64

GST Paid

214

151

389

Total cash used

29,700

29,133

30,024

Net cash from operating activities

4,568

1,272

567

INVESTING ACTIVITIES

Cash received

Net proceeds from sale of assets

4

-

-

Total cash received

4

-

-

Cash used

Purchase of leasehold improvements, plant and equipment

630

503

-

Purchase of computer software

2,049

1,538

1,030

Total cash used

2,679

2,041

1,030

Net cash/ (used by) investing activities

(2,675)

(2,041)

(1,030)

FINANCING ACTIVITIES

Cash received

Contributed equity

399

300

399

Total cash received

399

300

399

Cash used

Principal payments of lease liabilities

1,171

1,107

1,165

Total cash used

1,171

1,107

1,165

Net cash/ (used by) financing activities

(772)

(807)

(766)

Net increase / (decrease) in cash held

1,121

(1,576)

-

Cash and cash equivalents at the beginning of the reporting period

772

2,348

772

Cash and cash equivalents at the end of the reporting period

1,893

772

(10)

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 2021

OVERVIEW

Background

Office of Parliamentary Counsel (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.

Under the Legal Services Directions, certain drafting work is tied to OPC. Agencies must use OPC's drafting services for all Government Bills and regulations, Ordinances and regulations of external Territories and Jervis Bay Territory, and other legislative instruments made or approved by the Governor-General. OPC is budget funded for this tied work.

OPC delivers legislative publishing services to, and on behalf of, the whole of the Australian Government, through the Federal Register of Legislation (the Register).

OPC recovers the cost of core services from Government entities that publish legislation on the Register through annual fees.

OPC provides drafting services for legislative instruments that are not tied, and other publishing services, on a fee for service basis. The demand for these services is client driven and therefore difficult to budget accurately.

Basis of Preparation of the Financial Statements

The Financial Statements 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 - Reduced Disclosure Requirements, 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.

Leases

Lease for office accommodation and car parking

On adoption of AASB 16, OPC recognised a right-of-use asset and a lease liability in relation to the lease of office space, which had previously been classified as an operating lease.

The lease liability was measured at the present value of the remaining lease payments, discounted using OPC’s incremental borrowing rate as at 1 July 2019. OPC’s incremental borrowing rate is the rate at which a similar borrowing could be obtained from an independent creditor under comparable terms and conditions. The weighted-average rate applied was 1.02%.

The right-of-use asset for the office space was measured at an amount equal to the lease liability, adjusted by the amount of any prepaid lease payments.

Licence agreement for offsite parking

On adoption of AASB 16, this arrangement did not meet the definition of a lease under AASB 16, which had previously been classified as operating lease.

OPC has no low value assets or short-term leases with a lease term of 12 months or less.

New Australian Accounting Standards

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 material effect on OPC’s Financial Statements.

Contingent Liabilities and Contingent Assets

OPC has no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2021. OPC had no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2020.

Taxation

OPC is exempt from all forms of taxation except Fringe Benefits Tax (FBT) and Goods and Services Tax (GST).

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

The following is an explanation of the major variances between the original budget presented in the 2020-21 Portfolio Budget Statements and the 2020-21 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 Comprehensive Income

Suppliers

Actual suppliers expense is lower than budget, mainly due to a decrease in consultants, training and travel. Some anticipated projects were delayed, reducing anticipated expenditure in consultants. Training and travel expense is lower than budget due to online delivery of courses as a result of COVID-19.

Statement of Financial Position

Cash and cash equivalents

Actual cash is higher than budget, due to higher than expected early receipt of 2021-22 annual fees.

Computer software

Actual computer software in use is lower than budget, due to delays in the finalisation of the redevelopment of the new Register. This is consistent with actual work in progress, which is higher than budget.

Work in progress

Actual work in progress is higher than budget, due to the redevelopment of the new Register.

Other payables- Unearned income

Actual unearned income is higher than budget. The 2021-22 annual fees, invoiced during 2020-21, are included in unearned income and were higher than expected. During 2019-20, due to COVID-19, OPC decided to absorb some of the costs of the Federal Register and did not increase fees for the 2020-21 year. A management decision was made in 2020-21 to no longer absorb costs, and to pass on the full cost of the register for 2021-22.

Cash Flow Statement

Operating Activities - Appropriations

Actual appropriation is higher than budget, due to higher than expected Section 74 cash received for early payment of the Register 2021-22 annual fees.

Operating Activities - Sale of goods and rendering of services

Actual sale of goods and rendering of services is higher than budget, mainly due to an increase in, and early receipt of payment, of 2021-22 annual fees.

Operating Activities - GST received

Actual GST received is higher than budget, due to higher than expected capitalised contractor costs in work in progress for the redevelopment of the Register.

Operating Activities - Suppliers

Actual suppliers is lower than budget, due to lower than expected contractor, travel and training costs. Some anticipated projects were delayed, reducing anticipated expenditure in consultants. Training and travel expense is lower than budget due to online delivery of courses as a result of COVID-19.

Operating Activities - Section 74 receipts transferred to the Official Public Account

Actual Section 74 receipts is higher than budget, due to higher than expected cash received for the Register 2021-22 annual fees.

Investing Activities - Purchase of leasehold improvements, and plant and equipment

Actual purchase of leasehold improvements, and plant and equipment, is higher than budget, due to minor fit-out works to OPC’s office.

Investing Activities - Computer software

Actual computer software work in progress is higher than budget, due to the development of the Register.

1. FINANCIAL PERFORMANCE

1.1: Expenses

2021

2020

$’000

$’000

1.1A: Employee benefits

Wages and salaries

13,038

12,695

Superannuation:

Defined contribution plans

945

855

Defined benefit plans

1,584

1,632

Leave and other entitlements

2,229

1,577

Separation and redundancies

111

-

Total employee benefits

17,907

16,759

Accounting Policy

Accounting policies for employee related expenses are contained in the People and Relationships section.

2021

2020

$’000

$’000

1.1B: Supplier benefits

Goods and services supplied or rendered

IT & telecommunications

1,277

1,406

Printing & digitisation

612

666

Consultancies / Non-consultancies

341

711

Human resources

213

154

Other

189

313

Property

183

180

Library

116

123

Staff training & development

92

265

Total goods and services supplied or rendered1

3,023

3,818

Goods supplied

74

87

Services rendered

2,950

3,731

Total goods and services supplied or rendered

3,023

3,818

Other supplier expenses

Workers compensation expenses

46

48

Total other supplier expenses

46

48

Total supplier expenses

3,069

3,866

1 2020 comparative figures for Total goods and services supplied or rendered has been adjusted for the following: Consultancies/ non-consultancies has increased by $711k, Human resources has reduced by $407k, and Accounting/ audit services has reduced by $304k. These figures were restated to reflect that these services were related to consultancies and/or non-consultancies.

1. FINANCIAL PERFORMANCE

1.1 Expenses

1.1C: Write-Down and Impairment of Assets

Write-down of assets1

11

-

Total Write-down and impairment of other assets

11

-

1Write-down and impairment of PP&E assets.

1.1D: Finance costs

Interest on lease liabilities

64

75

Total finance costs

64

75

The above lease disclosures should be read in conjunction with Note 2.4A.

Accounting Policy

All borrowing costs are expensed as incurred.

1.2: Income

2021

2020

Own-Source Revenue

$’000

$’000

1.2A: Revenue from Contracts with Customers

Sale of goods

1

31

Rendering of services

6,703

6,562

Total sale of goods and rendering of services

6,704

6,593

Disaggregation of revenue from contracts with customers

Registration Annual Fees

3,859

3,846

Billable instrument drafting

1,508

1,401

Peak & Express Registrations

708

691

Secondment

230

246

Compilation preparation

198

216

Courses

199

163

Print on Demand

-

30

Other publications

1

-

6,704

6,593

Type of customer:

Australian Government entities (related parties)

6,704

6,593

6,704

6,593

Timing of transfer of goods and services:

Over time

5,795

5,709

Point in time

909

884

6,704

6,593

Accounting Policy

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

All contracts are in scope of AASB15, and the performance obligations are sufficiently specific to enable OPC to determine when they have been satisfied.

The following is a description of principal activities from which OPC generates its revenue.

Registration annual fees

The annual fee is for the management and registration of legislative documents on the Federal Register of Legislation. Clients are invoiced in advance. OPC recognises a liability, and allocates the revenue amount evenly over a 12 month period.

Instrument drafting, editorial services and compilation preparation

Revenue is recognised for the actual hours a drafter, editor, or complier has worked. Time spent is tracked on a per job basis. Revenue is recognised on a monthly basis, or when invoices are issued for work completed to date.

Express and peak fees

Revenue is recognised once the registration has been completed.

Secondment

Secondment revenue is invoiced in arrears and recognised over the period of the secondment.

Drafting training courses

Participants are invoiced in advance. OPC recognises revenue once the course has been delivered.

The transaction price is the total amount of consideration to which OPC expects to be entitled, in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

1. FINANCIAL PERFORMANCE

1.2: Income

2021

2020

1.2B: Other revenue

$’000

$’000

Reimbursement of expenses

3

3

Resources received free of charge

Remuneration of auditors (ANAO)

65

65

Total other revenue

68

68

1.2C: Other gains

Gain on disposal

4

-

Total other gains

4

-

Accounting Policy

Resources received free of charge

Resources received free of charge are recorded as either revenue or gains depending on their nature. 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.

2021

2020

$’000

$’000

1.2D: Revenue from Government

Appropriations:

Departmental appropriation

17,788

17,298

Total revenue from Government

17,788

17,298

Accounting Policy

Revenue from Government

Amounts appropriated to departmental appropriations for the year (adjusted for any formal additions and reductions) are recognised as Revenue from Government when OPC gains control of the appropriation.

1.2E: Unsatisfied obligations

OPC expects to recognise as income any liability for unsatisfied obligations associated with revenue from contracts with customers within the following periods: 1 July 2021 to 30 June 2022.

2. FINANCIAL POSITION

2.1: Financial Assets

2021

2020

$’000

$’000

2.1A: Trade and other receivables

Goods and services receivable

Goods and services1

2,410

2,452

Contract assets2

130

85

GST receivable from the Australian Taxation Office

158

112

Total goods and services receivable

2,698

2,649

Appropriations receivable

Appropriations receivable

18,055

18,635

Total appropriations receivable

18,055

18,635

Total trade and other receivables

20,753

21,284

1 Credit terms are 30 days.

2 Associated with instrument drafting and compilation preparation.

Accounting Policy

Goods and services receivable

Goods and services, and contract assets, are held for the purpose of collecting contractual cash flows. Receivables for goods and services are recognised at the nominal amounts due, less any impairment allowance. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

2. FINANCIAL POSITION

2.2: Non-Financial Assets

2.2A: Reconciliation of opening and closing balances of property, plant and equipment, and computer software 2021

Buildings1

Plant & Equipment

Internally developed software

Computer software purchased

Total

$’000

$’000

$’000

$’000

$’000

As at 1 July 2020

Gross book value

11,140

1,391

4,477

238

17,246

Accumulated depreciation and impairment

(1,795)

(409)

(4,418)

(177)

(6,799)

Total as at 1 July 2020

9,345

982

59

61

10,447

Additions:

By purchase

363

275

-

59

697

Revaluations and impairments recognised in other comprehensive income

(218)

(95)

-

-

(313)

Depreciation and amortisation

(523)

(282)

(34)

(34)

(873)

Depreciation on right-of-use assets

(1,279)

-

-

-

(1,279)

Disposals:

-

-

-

-

-

Other disposals

-

(15)

-

-

(15)

Total as at 30 June 2021

7,688

865

25

86

8,664

Total as at 30 June 2021 represented by:

Gross book value

10,247

866

4,477

294

15,884

Accumulated depreciation and impairment

(2,559)

(1)

(4,452)

(208)

(7,221)

Total as at 30 June 2021

7,688

865

25

86

8,664

Carrying amount of right-of-use assets as at 30 June 2021

5,438

-

-

-

5,438

Work in Progress

As at 1 July 2020

Gross book value

5

-

3,983

-

3,988

Additions:

By purchase

-

-

1,990

-

1,990

Total as at 30 June 2021

-

-

5,973

-

5,973

1 Includes leasehold improvements and a leased right of use asset.

2.2: Non-Financial Assets

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Asset Recognition Threshold

Purchases of leasehold improvements, plant and equipment, and computer software, 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).

Leased Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease, and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease, less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

Leased ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, General Government Sector and Whole of Government financial statements.

Derecognition

All items of leasehold improvements, plant and equipment, and computer software, 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 computer software were assessed for impairment at 30 June 2021. 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 or computer software.

No indicators of impairment were found for prepayments.

Leasehold improvements, and plant and equipment

Depreciation

Depreciable leasehold improvements, and 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:

2021 2020

Leasehold improvements Lease term Lease term

Plant and equipment 3 to 25 years 3 to 25 years

Leased ROU assets

The depreciation rates for leased ROU assets are based on the commencement date to the end of the lease term.

Computer software

Computer software are carried at cost less accumulated amortisation and accumulated impairment losses.

Amortisation

Computer software are amortised on a straight-line basis over their anticipated useful life.

The useful life of OPC’s computer software are as follows:

2021 2020

Purchased software 4 to 5 years 4 to 5 years

Internally generated software 10 years 10 years

2. FINANCIAL POSITION

2.2: Non-Financial Asset

2021

2020

$’000

$’000

2.2B: Prepayments

Prepayments

310

223

Total prepayments

310

223

2.3: Payables

2021

2020

$’000

$’000

2.3A: Suppliers

Trade creditors and accruals1

146

190

Total suppliers

146

190

1 Settlement is usually made in 20 days.

2021

2020

$’000

$’000

2.3B Employee benefits

Salaries and wages

318

293

Salary packaging

30

29

FBT payable

18

15

Total employee benefits

366

337

Accounting Policy

Accounting policies for employee payables are contained in the People and Relationships section.

2021

2020

$’000

$’000

2.3C: Unearned Income

Unearned income1

4,238

3,870

Total unearned income

4,238

3,870

1 The Parliamentary Counsel Act 1970 provides OPC with statutory authority to charge fees.

2. FINANCIAL POSITION

2.4 Interest Bearing Liabilities

2021

2020

$’000

$’000

2.4A: Leases

Lease Liabilities - Buildings

5,631

6,802

Total leases

5,631

6,802

Total cash outflow for leases for the year ended 30 June 2021 was $1.234 million.

Accounting Policy

Refer to Overview section for accounting policy on leases.

3. FUNDING

3.1: Appropriations

2021
$'000

2020
$'000

3.1A: Annual Departmental Appropriations ('Recoverable GST exclusive')

Ordinary annual services

17,788

17,298

Receipts retained under PGPA Act - Section 741

8,032

7,902

Departmental capital budget3

399

300

Total appropriation

26,219

25,500

Appropriation applied

(25,102)

(23,845)

Variance 2

1,117

1,655

1 PGPA Act - Section 74 receipts of amounts by non-corporate Commonwealth entities. This amount includes fees charges on a cost recovery basis for the Federal Register.

2 The 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 Federal Register redevelopment.

3 Departmental capital budgets are appropriated through Appropriation Acts (No. 1, 3). They form part of ordinary annual services, and are not separately identified in the Appropriation Acts.

Amounts appropriated which are designated as 'equity injections' for a year (less any formal reductions) and Departmental Capital Budgets (DCB) are recognised directly in contributed equity in that year.

2021
$'000

2020
$'000

3.1B: Unspent Annual Departmental Appropriations ('Recoverable GST exclusive')

Appropriation Act (No. 1) 2019-20

-

11,303

Appropriation Act (No. 3) 2019-20

-

300

Supply Act (No. 1) 2019-20

-

7,032

Supply Act (No. 1) 2020-21

6,129

-

Appropriation Act (No. 1) 2020-21

11,926

-

Cash at bank

1,893

772

Total

19,948

19,407

3. FUNDING

3.2: Net Cash Appropriation Arrangements

2021

2020

$’000

$’000

Total comprehensive income/(loss) - as per the Statement of Comprehensive Income

1,361

1,157

Plus: depreciation/amortisation of assets funded through appropriations (departmental capital budget funding and/or equity injections)

873

823

Less: cost recovered amortisation1

(33)

(76)

Plus: depreciation of right-of-use assets

1,279

1,279

Less: lease principal repayments

(1,171)

(1,100)

Net Cash Operating Surplus/ (Deficit)

2,309

2,083

In 2010-11, the Government introduced net cash appropriation arrangements where revenue appropriations for depreciation/amortisation expenses ceased. OPC receives a separate Departmental Capital Budget (DCB) provided through Departmental appropriation. DCBs are appropriated in the period when cash payment for capital expenditure is required.

The inclusion of amortisation expenses related to ROU leased assets, and the lease liability principal repayment amount, reflects the cash impact on implementation of AASB 16 Leases. It does not directly reflect a change in appropriation arrangements.

1Amortisation of the Federal Register is cost recovered through the Annual Fees.

4. PEOPLE AND RELATIONSHIPS

4.1: Employee Provisions

2021

2020

$’000

$’000

4.1A: Employee provisions

Leave

7,391

7,141

Total employee provisions

7,391

7,141

Accounting Policy

Employee provisions

Liabilities for ‘short-term 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 benefit 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. PEOPLE AND RELATIONSHIPS

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 Services and Chief Information Officer, the General Manager Publications, and three SES Band 2 Drafters. These SES drafters were part of the Key Management Personnel for a period of more than three months. Key Management Personnel remuneration is reported in the table below:

2021

2020

$’000

$’000

Short-term employee benefits1

2,138

2,012

Post- employment benefits2

291

336

Other long-term employee benefits3

7

75

Total key management personnel remuneration expenses

2,436

2,423

The total number of Key Management Personnel that are included in the above table are 8 full-time employees (2020: 9 full time employees).

¹Includes salary, performance bonuses, motor vehicle allowances, annual leave and SES experience loading.

2Includes superannuation.

3Includes long service leave.

4. PEOPLE AND RELATIONSHIPS

4.3 Related Party Disclosures

Related party relationships:

OPC is an Australian Government controlled entity. Related parties to this entity are Key Management Personnel, including the Portfolio Minister, and other Australian Government entities.

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

2021

2020

$’000

$’000

5.1A: Categories of financial instruments

Financial Assets

Financial Assets at amortised cost

Cash and cash equivalents

1,893

772

Goods and services receivables

2.1A

2,410

2,453

Contract assets

2.1A

130

85

Total financial asset at amortised cost

4,433

3,310

Total financial assets

4,433

3,310

Financial Liabilities

Financial Liabilities measured at amortised cost

Payables - suppliers

2.3A

146

190

Total financial liabilities measured at amortised cost

146

190

Total financial liabilities

146

190

Accounting Policy

Financial assets

Goods and services receivables, and contract assets, are held in order to collect the contractual cash flows. Goods and services receivables are recorded at face value less any impairment. They are recognised when OPC becomes party to a contract, and has a legal right to receive cash, and 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

Suppliers are recognised at amortised cost to the extent that the goods or services have been received, irrespective of having been invoiced. Suppliers are derecognised on payment.

The lease is recognised at fair value, net of transaction costs. This liability is subsequently measured at amortised cost using the effective interest rate method, with interest expense recognised on an effective interest basis.

The net fair values of the financial assets and liabilities are at their carrying amounts. OPC derived no interest income from financial assets in either the current or prior year.

5. MANAGING UNCERTAINTIES

5.2: Fair Value Measurement

5.2A: Fair Value Measurement

2021
$'000

2020
$'000

Non-financial assets1

Plant and equipment

Recurring

866

982

Leasehold improvements

Recurring

2,250

2,628

Total fair value measurement of non-financial assets

3,116

3,610

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, and plant and equipment, are measured at fair value in the Statement of Financial Position.

Following initial recognition at cost, leasehold improvements, and plant and equipment (excluding leased ROU assets), 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, and plant and equipment, are subject to a formal valuation at least once every three years.

An independent onsite valuation was undertaken in June 2021 by JLL Public Sector Valuations Pty Ltd.

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.

6. OTHER INFORMATION

6.1: Aggregate Assets and Liabilities

2021
$'000

2020
$'000

6.1: Aggregate Assets and Liabilities

Assets expected to be recovered in:

No more than 12 months

Cash and cash equivalents

1,893

772

Trade and other receivables

20,753

21,285

Prepayments

261

223

Total no more than 12 months

22,908

22,280

More than 12 months

Land and buildings

7,688

9,347

Plant and equipment

865

982

Computer software

111

61

Other intangibles

5,973

4,041

Prepayments

49

-

Total more than 12 months

14,686

14,432

Total assets

37,593

36,714

Liabilities expected to be recovered in:

No more than 12 months

Suppliers

146

190

Other payables

4,604

4,207

Leases

1,171

1,165

Employee provisions

841

961

Total no more than 12 months

6,762

6,524

No more than 12 months

Leases

4,460

5,636

Employee provisions

6,550

6,180

Total no more than 12 months

11,010

11,816

Total liabilities

17,772

18,340