Expenses
|
2019 |
2018 |
||
|
$’000 |
$’000 |
||
|
1.1A: Employee Benefits |
|||
|
Wages and salaries |
18,017 |
18,817 |
|
|
Superannuation: |
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|
Defined contribution plans |
2,157 |
2,143 |
|
|
Defined benefit plans |
667 |
856 |
|
|
Leave and other entitlements |
2,034 |
2,064 |
|
|
Separation and redundancies |
216 |
336 |
|
|
Payroll tax (competitive neutrality) |
954 |
960 |
|
|
Total employee benefits |
24,046 |
25,176 |
|
|
Accounting Policy |
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|
Accounting policies for employee related expenses are contained in Note 4.1 Employee Provisions. |
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|
1.1B: Suppliers |
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|
Goods and services supplied or rendered |
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|
Cost of goods sold 1 |
45,862 |
53,746 |
|
|
Contributions & sponsorship |
5 |
4,490 |
|
|
Consultancy |
2,679 |
2,114 |
|
|
Administration & management |
1,444 |
1,766 |
|
|
Interest compensation expense |
2,116 |
2,113 |
|
|
Selling & distribution |
4,224 |
3,760 |
|
|
Facilities service & maintenance |
3,065 |
2,863 |
|
|
Travel |
539 |
573 |
|
|
Other |
658 |
350 |
|
|
Recoupment 2 |
(9,620) |
(10,724) |
|
|
Total goods and services supplied or rendered |
50,972 |
61,050 |
|
|
Goods supplied |
42,534 |
46,216 |
|
|
Services rendered |
8,438 |
14,834 |
|
|
Total goods and services supplied or rendered |
50,972 |
61,050 |
|
|
Other suppliers |
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|
Operating lease rentals |
2,247 |
2,215 |
|
|
Workers compensation expenses |
314 |
111 |
|
|
Total other suppliers |
2,561 |
2,326 |
|
|
Total suppliers |
53,533 |
63,376 |
|
|
1 Cost of goods sold represents the direct and indirect production costs relating to inventory sold during the period. |
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|
2 Recoupment of $9.6m (2018: $10.7m) represents production costs capitalised into inventory produced. An amount of $5.7m (2018: $5.1m) relates to labour and $3.9m (2018: $5.6m) relates to other costs capitalised into inventory produced. |
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|
Leasing commitments |
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|
The Mint in its capacity as lessee has a Memorandum of Understanding relating to the lease of the Mint premises with the Department of Finance effective March 2009. The term of the lease is 20 years, with lease payments subject to an annual increase of 3 percent and a rental review to market every fifth anniversary. |
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|
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: |
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|
Within 1 year |
2,652 |
2,575 |
|
|
Between 1 and 5 years |
11,402 |
11,094 |
|
|
More than 5 years |
14,877 |
17,837 |
|
|
Total operating lease commitments |
28,931 |
31,506 |
|
|
Accounting Policy |
|||
|
Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense. Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets. |
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|
2019 |
2018 |
||
|
$’000 |
$’000 |
||
|
1.1C: Finance Costs |
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|
Finance leases |
18 |
31 |
|
|
Unwinding of discount - provision for restoration |
13 |
12 |
|
|
Total finance costs |
31 |
43 |
|
|
Accounting Policy |
|||
|
All borrowing costs are expensed as incurred. |
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|
1.1D: Write-Down & Impairment of Other Assets |
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|
Asset write-down and impairment |
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|
Write-down of inventory |
640 |
2,691 |
|
|
Write-down of fixed assets |
25 |
63 |
|
|
Write-down of bad debts |
- |
14 |
|
|
Total write-down and impairment of assets |
665 |
2,768 |
|
|
Accounting Policy |
|||
|
The Mint assesses its inventory level for obsolescence and impairment on a regular basis. An annual inventory stocktake has been undertaken in June 2019. |
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|
1.1E: Foreign Exchange Losses |
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|
Non-Speculative |
- |
53 |
|
|
Total foreign exchange losses |
- |
53 |
|
|
Accounting Policy |
|||
|
Transactions denominated in foreign currencies are translated at the foreign exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance date are translated to Australian dollars at the foreign exchange rate at that date. Foreign exchange differences arising on translations are recognised in the Statement of Comprehensive Income. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the start of the period, adjusted for effective interest and payments during the period, and the amortised cost in the foreign currency translated at the exchange rate at the end of the period. Foreign currency gains and losses are reported on a net basis. |
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|
1.1F: Royalties |
|||
|
Royalties - Australian Government |
3,099 |
3,458 |
|
|
Royalties - Other |
1,389 |
1,084 |
|
|
Total royalties |
4,488 |
4,542 |
|
|
Accounting Policy |
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|
The Mint pays the royalty on the use of the Queen's Effigy to the Australian Government for numismatic products with the rates agreed with the Department of the Treasury. The Mint also pays royalties to other entities on the products that are subject to royalties. The rates charged are based on each agreement of the production. |
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Visit
https://www.transparency.gov.au/annual-reports/royal-australian-mint/reporting-year/2018-2019-44