1. Financial Performance
This section analyses the financial performance of the Corporation for the year ended 30 June 2019.
1.1 Expenses
1.1A Employee benefits
|
Notes |
2019 |
2018 |
||
|
$'000 |
$'000 |
|||
|
Wages and salaries |
110,531 |
109,089 |
||
|
Superannuation |
||||
|
Defined contribution plans |
11,275 |
11,012 |
||
|
Defined benefit plans |
3,952 |
4,142 |
||
|
Leave and other entitlements |
16,183 |
12,354 |
||
|
Total employee benefits |
141,941 |
136,597 |
Accounting Policy
Accounting policies for employee related expenses are contained under Note 3, People and relationships.
1.1B Suppliers
|
Notes |
2019 |
2018 |
||
|
$'000 |
$'000 |
|||
|
Goods and services supplied or rendered |
||||
|
Materials and minor items |
8,831 |
8,640 |
||
|
Office supplies |
1,609 |
1,778 |
||
|
Other program purchases |
34,145 |
30,343 |
||
|
Broadcasting |
72,320 |
74,253 |
||
|
Administrative expenses |
39,894 |
44,879 |
||
|
Contract staff |
25,949 |
27,057 |
||
|
Production services |
5,298 |
8,065 |
||
|
Audit fees |
150 |
131 |
||
|
Total goods and services supplied or rendered |
188,196 |
195,146 |
||
|
Goods supplied |
44,585 |
40,761 |
||
|
Services rendered |
143,611 |
154,385 |
||
|
Total goods and services supplied or rendered |
188,196 |
195,146 |
||
|
Other supplier expenses |
||||
|
Operating lease rentals |
(i) |
3,530 |
3,970 |
|
|
Workers' compensation premiums |
381 |
837 |
||
|
Total other supplier expenses |
3,911 |
4,807 |
||
|
Total suppliers |
192,107 |
199,953 |
|
(i) |
Nature of lease |
General description of leasing arrangement |
|
- Leases for office accommodation |
Lease payments are subject to annual increases in line with the Consumer Price Index or Market Value. The leases are renewable. |
|
|
- Leases of computer equipment |
The leases for computer equipment are for a period of three or four years. Options to extend leased terms are available at discounted prices. |
|
|
- Leases of motor vehicles |
No contingent rentals exist, and no renewal or purchase options are available. |
|
Commitments for minimum payments in relation to non-cancellable operating leases are payable as follows: |
|||||
|
2019 |
2018 |
||||
|
$'000 |
$'000 |
||||
|
Within 1 year |
2,092 |
2,261 |
|||
|
Between 1 to 5 years |
4,325 |
4,099 |
|||
|
More than 5 years |
- |
510 |
|||
|
Total operating lease commitments |
6,417 |
6,870 |
|||
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 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.
1.1C Finance costs
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Unwinding of discount – provision for restoration |
26 |
9 |
Accounting Policy
All borrowing costs are expensed as incurred.
1.1D Impairment loss allowance on financial instruments
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Trade and other receivables |
94 |
794 |
During the year the Corporation recognised a $0.744m write off against the prior year outstanding receivable provision.
1.1E Write-down and impairment of other assets
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Plant and equipment |
131 |
350 |
||
|
Intangible assets |
2 |
9 |
||
|
Total write-down and impairment of other assets |
133 |
359 |
1.2 Own-source and Government revenue
Own-source revenue
1.2A Sale of goods and rendering of services
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Sale of goods |
726 |
1,100 |
||
|
Rendering of services |
118,197 |
116,303 |
||
|
Total sale of goods and rendering of services |
118,923 |
117,403 |
Accounting Policy
Sale of goods and rendering of services
Revenue from the sale of goods is recognised when:
a) the risks and rewards of ownership have been transferred to the buyer; and
b) the Corporation retains no managerial involvement or effective control over the goods.
Receivables for goods and services, which have 30 or 45 day terms, are recognised at the nominal amounts due less any impairment allowance amount. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.
Term deposit interest income
Interest revenue is recognised using the effective interest method.
1.2B Rental income
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Operating lease rental income |
1,354 |
1,250 |
Lease rental income commitments
|
Commitments for lease rental income receivables are as follows: |
||||
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Within 1 year |
1,162 |
1,321 |
||
|
Between 1 to 5 years |
987 |
2,030 |
||
|
More than 5 years |
520 |
729 |
||
|
Total rental income commitments |
2,669 |
4,080 |
The Corporation in its capacity as lessor has lease terms that are typically between 1 and 5 years in duration with further renewal options for similar periods and are subject to increases in accordance with CPI or other agreed increments.
Accounting Policy
Refer to accounting policy under Note 1.2A, Sale of goods and rendering of services.
1.2C Revenue from Government
|
2019 |
2018 |
|||
|
$'000 |
$'000 |
|||
|
Department of Communications, Cyber Safety and the Arts – Corporate payment item |
281,726 |
280,058 |
||
|
Total revenue from Government |
281,726 |
280,058 |
Accounting Policy
Funding received or receivable from the Department of Communications, Cyber Safety and the Arts (appropriated to the Department of Communications and the Arts as a corporate Commonwealth entity payment item for payment to the Corporation) is recognised as Revenue from Government by the Corporation unless the funding is in the nature of an equity injection or a loan.
Visit
https://www.transparency.gov.au/annual-reports/special-broadcasting-service-corporation/reporting-year/2018-2019-80